N-30D 1 b43792bwnv30d.txt HARTFORD HLS SEMI-ANNUAL REPORT [THE HARTFORD LOGO] [STAG GRAPHIC] SEMI-ANNUAL REPORT June 30, 2002 - Manager Discussions - Financials HARTFORD HLS MUTUAL FUNDS TABLE OF CONTENTS Manager Discussions 1 Hartford HLS Mutual Funds Financial Statements: Statement of Net Assets or Statement of Assets and Liabilities as of June 30, 2002: Hartford Global Communications HLS Fund 29 Hartford Global Financial Services HLS Fund 30 Hartford Global Health HLS Fund 31 Hartford Global Technology HLS Fund 33 Hartford International Small Company HLS Fund 34 Hartford SmallCap Growth HLS Fund (formerly Fortis Aggressive Growth Series) 37 Hartford Growth Opportunities HLS Fund (formerly Fortis Growth Stock Series) 40 Hartford Small Company HLS Fund, Inc. 42 Hartford MidCap HLS Fund, Inc. 44 Hartford International Capital Appreciation HLS Fund 46 Hartford Capital Appreciation HLS Fund, Inc. 49 Hartford Value Opportunities HLS Fund (formerly Fortis Value Series) 52 Hartford Growth HLS Fund 54 Hartford MidCap Value HLS Fund 56 Hartford Focus HLS Fund 58 Hartford Global Leaders HLS Fund 59 Hartford International Opportunities HLS Fund, Inc. 62 Hartford Stock HLS Fund, Inc. 66 Hartford Growth and Income HLS Fund 68 Hartford Index HLS Fund, Inc. 70 Hartford Value HLS Fund 76 Hartford Dividend and Growth HLS Fund, Inc. 78 Hartford Global Advisers HLS Fund, Inc. (formerly Hartford International Advisers HLS Fund, Inc.) 80 Hartford Advisers HLS Fund, Inc. 88 Hartford High Yield HLS Fund 95 Hartford Bond HLS Fund, Inc. 103 Hartford Mortgage Securities HLS Fund, Inc. 109 Hartford U.S. Government Securities HLS Fund (formerly Fortis U.S. Government Securities Series) 111 Hartford Money Market HLS Fund, Inc. 113 Statements of Operations for the Period Ended June 30, 2002 116 Statements of Changes in Net Assets for the Period Ended June 30, 2002 124 Statements of Changes in Net Assets for the Period Ended December 31, 2001 132 Notes to Financial Statements 138 Financial Highlights 168 Board of Directors and Officer Information 186 Privacy Policy 191 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 -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT TEAM DAVID NINCIC, CFA Vice President Wellington Management Company, LLP ARCHANA BASI CFA Assistant Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 12/27/2000 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
MSCI AC WORLD FREE GLOBAL TELECOMMUNICATIONS S&P 500 COMMUNICATIONS IA SERVICES INDEX INDEX ----------------- ------------- ------- $10,000 $10,000 $10,000 $ 8,023 $ 8,762 $ 8,758 $ 7,709 $ 8,131 $ 9,270 $ 6,210 $ 7,437 $ 7,910 $ 6,414 $ 7,550 $ 8,756 $ 5,200 $ 6,647 $ 8,780 $ 4,023 $ 5,343 $ 7,604
AVERAGE ANNUAL RETURNS (Inception 12/27/2000)
1 YEAR SINCE INCEPTION Global Comm. IA -47.81% -45.35% MSCI AC World Free Telecomm. Services -34.28% -34.03% S&P 500 -17.97% -16.62%
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 $4,012 on 6/30/2002. Q. How did the Fund perform? Hartford Global Communications HLS Fund returned -37.3% for the 6-months ended June 30, 2002. The Fund underperformed its benchmark, the MSCI All Country World Free Telecommunication Services Index, which returned -29.2%, over the same period. Q. Why did the Fund perform this way? The period proved to be another very difficult one for telecom investors worldwide. Equities across all industry sub-sectors were driven downwards by continued weakness in demand, excess capacity, and weak pricing. The industry's structural weakness discouraged investors from taking any chances. The wireless sector, in particular, was devastated, as investors reacted very harshly to surprisingly bad year-end demand growth and to another round of effective price reductions. Even the blue-chip defensive names have been hammered. Key holdings in the Fund during this time period were wireless companies Sprint PCS Group (communications) and Nextel Partners, Inc. (communications). Q. What is your outlook for the remainder of 2002? The industry's current malaise cannot - and will not - go on forever. In the course of the next twelve months, the structural and macroeconomic issues that the industry is struggling with should begin to resolve themselves. The tough economic times that the global economy is showing signs of emerging from have forced many of the weaker telecom companies to exit through sale or bankruptcy, which will inevitably help the survivors. We have built a larger position in the wireless sector, hoping to take advantage of the market's extreme pessimism regarding these stocks. Although the fundamentals are weak, the stock prices reflect scenarios that we consider highly unlikely. 1 HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT TEAM 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 PERFORMANCE OVERVIEW 12/27/2000 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GLOBAL MSCI FINANCE FINANCIAL EX REAL S&P 500 SERVICES IA ESTATE INDEX INDEX ----------- ------------ ------- $10,000 $10,000 $10,000 $ 9,267 $ 8,952 $ 8,758 $10,015 $ 9,198 $ 9,270 $ 8,861 $ 7,961 $ 7,910 $ 9,420 $ 8,477 $ 8,756 $ 9,443 $ 8,616 $ 8,780 $ 9,035 $ 8,249 $ 7,604
AVERAGE ANNUAL RETURNS (Inception 12/27/2000)
1 YEAR SINCE INCEPTION Global Financial Services IA -9.79% -6.51% MSCI Finance ex Real Estate -10.05% -11.82% S&P 500 -17.97% -16.62%
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 $9,009 on 6/30/2002. Q. How did the Fund perform? Hartford Global Financial Services HLS Fund returned -4.1% for the 6-months ended June 30, 2002. The Fund underperformed the MSCI Finance ex-Real Estate Index, which returned -1.6%, over the same period. Q. Why did the Fund perform this way? Financial stocks fell sharply over the latter half of the period, as hopes of a rapid recovery from the global recession were buried under a tidal wave of negative news from the telecommunications sector and the trustworthiness of American financial statements was called into question. While we had not been overly optimistic about the economy, we had assumed some stability in the capital markets and so the Fund's performance was slightly worse than the group overall. Q. What is your outlook for the remainder of 2002? Our view on the global economy is still skeptical as it is unclear where there is sufficient demand (backed by strong enough balance sheets) to support a strong economic recovery. However, current prices seem to assume that there is an infinite supply of bankrupt telecommunications companies or that a substantial minority of all major American conglomerates are going to collapse. We do not believe either to be true and while major financial institutions will take losses as a result of their exposures to troubled companies, those losses are transitory. At the same time, many businesses are improving, costs are being wrung out and both banks and insurers are charging much higher prices to take on risk. 2 HARTFORD GLOBAL HEALTH HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT TEAM 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 PERFORMANCE OVERVIEW 5/1/2000 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GLOBAL GOLDMAN SACHS S&P 500 HEALTH IA HEALTH CARE INDEX INDEX --------- ----------------- ------- $10,000 $10,000 $10,000 $11,908 $11,522 $ 9,928 $13,691 $12,043 $ 9,832 $14,818 $12,959 $ 9,063 $13,103 $10,664 $ 7,989 $14,548 $11,088 $ 8,456 $13,803 $11,014 $ 7,216 $15,120 $11,399 $ 7,987 $15,160 $11,176 $ 8,009 $12,923 $ 9,297 $ 6,937
AVERAGE ANNUAL RETURNS (Inception 5/1/2000)
1 YEAR SINCE INCEPTION Global Health IA -11.17% 12.58% Goldman Sachs Health Care -16.16% -3.31% S&P 500 -17.97% -15.55%
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 $12,872 on 6/30/2002. Q. How did the Fund perform? Hartford Global Health HLS Fund returned -14.5% for the 6-months ended June 30, 2002.The Fund outperformed the Goldman Sachs Health Care Index, which returned -18.4% over the same period. Q. Why did the Fund perform this way? Exiting this time period, the Fund had an underweight position within health care services stocks, with an emphasis on drug distributors based on three key factors: good core business fundamentals, a focus on enhanced service offerings with higher operating margins, and an increased generic pipeline, with its higher profit margins. The Fund also had a slight underweight position in medical device stocks, taking some profits as recognition increased of the favorable regulatory and reimbursement environments, strong patient census trends and today's scientific renaissance all provide favorable long-term growth prospects for the industry. Near-term, valuations have become less attractive within this sub-sector. The Fund's position in pharmaceutical stocks was increased to an overweight position relative to the Goldman Sachs Health Care Index based on more attractive valuations. Current valuations of pharmaceutical stocks do not adequately reflect the potential of new product pipelines, which have been building in recent years reflecting technological developments within the biotechnology and genomics arena. Finally, the Fund was overweight biotechnology, genomics, and life science instrumentation stocks relative to the Goldman Sachs Health Care Index weighting given the more reasonable recent valuations within these areas. The primary contributor to the Fund's strong outperformance during this time period was strong stock selection across all sub-sectors of health care. The key stock contributors within the portfolio during this time period included Anthem, Inc. (insurance), AmerisourceBergen Corp. (consumer non-durables) and HCA, Inc. (health services). Q. What is your outlook for the remainder of 2002? We continue to be very comfortable overall with the positioning of the portfolio and seek to increase positions, both within sub-sectors and within individual stocks, opportunistically. Visibility continues to remain high both near-term and long-term and we remain very confident about the growth outlook for the health care sector. Despite near-term macroeconomic factors and increased market volatility, we believe the health care industry continues to offer excellent long-term investment opportunities. 3 HARTFORD GLOBAL TECHNOLOGY HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT TEAM 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 ERIC STROMQUIST Senior Vice President and Partner Wellington Management Company, LLP ANITA M. KILLIAN Assistant Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 5/1/2000 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GOLDMAN SACHS GLOBAL TECHNOLOGY S&P 500 TECHNOLOGY IA COMPOSITE INDEX INDEX ------------- --------------- ------- $10,000 $10,000 $10,000 $10,278 $ 9,992 $ 9,928 $ 9,406 $ 9,022 $ 9,832 $ 6,263 $ 5,880 $ 9,063 $ 4,896 $ 4,260 $ 7,989 $ 5,587 $ 4,884 $ 8,456 $ 3,446 $ 3,148 $ 7,216 $ 4,834 $ 4,200 $ 7,987 $ 4,497 $ 3,894 $ 8,009 $ 3,339 $ 2,814 $ 6,937
AVERAGE ANNUAL RETURNS (Inception 5/1/2000)
1 YEAR SINCE INCEPTION Global Technology IA -40.24% -39.76% Goldman Sachs Technology -42.38% -44.34% S&P 500 -17.97% -15.55%
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 $3,328 on 6/30/2002. Q. How did the Fund perform? Hartford Global Technology HLS Fund returned -30.9% for the 6-months ended June 30, 2002. The Fund outperformed the Goldman Sachs Technology Composite Index, which returned -33.0% over the same period. Q. Why did the Fund perform this way? During the period, technology stocks extended their losses. While numerous factors contributed to this decline, a weak short-term fundamental outlook for technology goods and services remains the primary culprit. The key to a turnaround in the sector is an improving U.S. economy. Until customers gain confidence in their own businesses they will be reluctant to commit capital to new technology purchases. This problem is exacerbated by the significant amount of technology products that were purchased during 1999 and 2000 but may not be fully deployed. While the U.S. economy continues to show signs of improvement, the short-term fundamental outlook for technology companies deteriorated. Overall, with a handful of exceptions, technology vendors found that second quarter business was much more challenging to close than they had expected. Nowhere was this more evident than in software where we saw some significant earnings shortfalls. As we enter the third quarter, visibility remains poor as customers continue to spend reluctantly. As a result, we expect short-term earnings expectations will need to be reduced further. Despite the volatility in the second quarter, the Fund slightly exceeded the Goldman Sachs Technology Composite Index. The solid performance was largely attributable to our significant investments within the services sector and the conservative posture of the Fund. Key contributors to performance during the period included OmniVision Technologies, Inc. (electronics), Network Appliance, Inc. (communications) and BISYS Group, Inc. (software & services). Q. What is your outlook for the remainder of 2002? As we enter the third quarter, the fund remains defensively positioned. While we believe a fundamental recovery in the second half of 2002 remains likely, we expect short-term volatility will remain very high as earnings expectations are reduced for much of the sector. Nevertheless, we continue to think technology stocks can return to growth in 2002 and expect conviction in this view will grow as we approach the fourth quarter. 4 HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF EDWARD MAKIN] EDWARD MAKIN Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 4/30/2001 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
INTERNATIONAL SSB EURO PACIFIC SMALL COMPANY IA <$2B INDEX ---------------- ---------------- $10,000 $10,000 $ 9,781 $ 9,730 $ 8,374 $ 8,233 $ 9,402 $ 8,758 $ 9,643 $ 9,305 $10,222 $ 9,671
AVERAGE ANNUAL RETURNS (Inception 4/30/2001)
1 YEAR SINCE INCEPTION International Small Company IA 4.51% 1.90% Salomon Smith Barney Euro Pacific <$2B -0.61% -2.82%
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 $10,200 on 6/30/2002. Q. How did the Fund perform? Hartford International Small Company HLS Fund returned 8.7% for the 6-months ended June 30, 2002. The Fund's return trailed the 10.4% return for the Salomon Smith Barney Broad Market Euro-Pacific Less Than $2 billion Index, but outperformed the Lipper International VA-UF Average, which returned -1.7% over the same period. Q. Why did the Fund perform this way? Relative returns for the period benefited from good stock selection within several sectors, notably health care and industrials. Several Japanese names were among the best-performing stocks in the Fund: Towa Corp. (metals, minerals & mining), Sumida Corp. (electrical equipment),Terumo (medical instruments & supplies), and Hokuriku Seiyaku (drugs). However, this good performance was offset by the poor performance of the Fund's technology holdings. One holding in particular, German software company Ceyoniq, was a significant drag on the Fund's performance. This company is no longer held in the Fund. Q. What is your outlook for the remainder of 2002? Although we continue to see macro-economic signs of improvement in the U.S. economy, we remain cautious as to the pace of recovery. Trouble spots include the impact of high consumer debt levels combined with lack of employment growth, and the seemingly tenuous end-user demand (after one looks past the inventory re-stocking that has been happening). These challenges could eventually feed through to European and Asian economies as well, since U.S. consumers have historically been incremental drivers of the global economy. On a brighter note, we believe that the news flow has reached extremely negative levels, producing a number of attractive investment opportunities. As a result, we have recently begun to shift from a more defensive stance to one that is more aggressive, and as always, we have been seeking to rotate into relative value when opportunities emerge. 5 HARTFORD SMALLCAP GROWTH HLS FUND (Formerly Fortis Aggressive Growth Series) -------------------------------------------------------------------------------- PORTFOLIO MANAGERS [PHOTO OF DAVID J. ELLIOTT] DAVID J. ELLIOTT, CFA Vice President, Wellington Management Company, LLP [PHOTO OF JAMES RULLO] JAMES RULLO, CFA Senior Vice President, Partner, Wellington Management Company, LLP PERFORMANCE OVERVIEW 5/2/1994 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
SMALLCAP RUSSELL 2000 GROWTH IA GROWTH INDEX* RUSSELL 2000 --------- ------------- ------------ $10,000 $10,000 $10,000 $10,027 $10,156 $ 9,811 $12,881 $13,309 $12,743 $15,007 $14,808 $13,718 $18,364 $16,725 $13,913 $17,894 $16,930 $16,858 $21,698 $24,226 $35,277 $21,041 $18,792 $29,958 $21,564 $17,058 $23,913 $20,551 $14,099 $19,507
AVERAGE ANNUAL RETURNS (Inception 5/2/1994)
1 YEAR 5 YEARS SINCE INCEPTION Small Cap Growth IA -23.67% 8.52% 8.53% Russell 2000 Growth -25.00% -1.98% 4.30% Russell 2000 -8.60% 4.44% 9.22%
The chart represents a hypothetical investment in the Hartford SmallCap Growth 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. Class IB shares commenced on May 1, 2002. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 5/2/1994 would have been valued at $19,113 on 6/30/2002. * The Fund has changed its benchmark from the Russell 2000 Index to the Russell 2000 Growth Index because the Russell 2000 Growth Index is better suited for the investment strategy of the Fund. Q. How did the Fund perform? Hartford SmallCap Growth HLS Fund returned -18.4 % for the 6-months ended June 30, 2002. The fund underperformed the -18.0% return of the Lipper Small Cap Growth VA-UF Average and the -17.4% return of the Russell 2000 Growth Index over the same period. Q. Why did the Fund perform this way? The Fund started the period with strong relative performance during the first quarter of 2002. Our stock selections added value within nearly all industries, led by such strong performers as Investment Technology Group, Inc. (financial services) and PolyMedica Corp. (medical instruments & supplies). Unfortunately these results were offset by relative underperformance during the second quarter. During this quarter, investor concerns over issues of accounting transparency, corporate governance, and the pace of the economic recovery intensified and contributed to a significant market correction. We found stock selection particularly challenging in this environment as these unforeseen developments drove dramatic (and at times seemingly indiscriminate) market reactions. A number of the Fund's larger holdings, such as Cirrus Logic, Inc. (computers & office equipment) and CV Therapeutics, Inc. (research & testing facilities), performed poorly and contributed to the underperformance. Q. What is your outlook for the remainder of 2002? Despite the market decline, key economic indicators continue to point toward a solid economic recovery. We believe the broad market correction more than fully discounts a slightly increased uncertainty regarding future corporate performance. We also believe this environment offers much opportunity for stock selection to add value by identifying stocks that have been indiscriminately punished as a consequence of the currently heightened investor risk aversion. Finally, we would expect the class of small capitalization growth stocks, on which the Fund focuses, to significantly outperform the broader market if risk aversion levels revert toward historical norms. 6 HARTFORD GROWTH OPPORTUNITIES HLS FUND (Formerly Fortis Growth Stock Series) -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF MICHAEL T. CARMEN] MICHAEL T. CARMEN, CFA Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GROWTH RUSSELL 3000 S&P MIDCAP OPPORTUNITIES IA GROWTH INDEX* 400 INDEX ---------------- ------------- --------- $10,000 $10,000 $10,000 $11,507 $11,216 $11,608 $12,518 $11,630 $13,228 $12,165 $12,160 $12,755 $15,531 $16,233 $16,704 $18,080 $19,785 $19,909 $20,326 $25,472 $26,329 $24,191 $34,391 $31,137 $37,537 $46,024 $35,724 $39,033 $35,707 $41,977 $30,112 $28,699 $41,733 $24,692 $22,803 $40,395
AVERAGE ANNUAL RETURNS (Inception 3/24/1987)
1 YEAR 5 YEARS 10 YEARS Growth Opportunities IA -24.19% 4.99% 9.46% Russell 3000 Growth -26.39% -0.50% 8.59% S&P MidCap 400 Index -4.71% 12.42% 14.98%
The chart represents a hypothetical investment in the Hartford Growth Opportunities 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. Class IB shares commenced on May 1, 2002. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $24,082 on 6/30/2002. * The Fund has changed its benchmark from the S&P MidCap 400 Index to the Russell 3000 Growth Index because the Russell 3000 Growth Index is better suited for the investment strategy of the fund. Q. How did the Fund perform? Hartford Growth Opportunities HLS Fund returned -18.0% for the 6-months ended June 30, 2002. The Fund's return exceeded the -20.5% return of the Russell 3000 Growth Index and the -21.1% return of the Lipper Multi-Cap Growth VA-UF Average over the same period. Q. Why did the Fund perform this way? The Fund's outperformance versus its market benchmark resulted from a combination of strong sector allocation and stock selection. The Fund's large overweight to the consumer discretionary sector proved to be beneficial as it was one of the better performing sectors over the six-month period. Stock selection within the industrials and health care sectors was also markedly positive with strong relative performance generated by stocks such as St. Jude Medical, Inc. (medical instruments & supplies), McKesson Corp. (consumer non-durables), and Alliant Techsystems, Inc. (metals, minerals & mining). The top three contributors to the Fund's overall performance over this six-month period were Northrup Grumman Corp (transportation), Staples, Inc. (retail) and Beckman Coulter, Inc. (medical instruments & supplies), and three detractors were Enterasys Networks, Inc. (software & services), Sanmina - SCI Corp. (electronics) and Adelphia Communications Corp. (media & entertainment). Q. What is your outlook for the remainder of 2002? The US equity market is well on its way to posting its third consecutive year of decline. The last time this happened was sixty years ago (1939-1941), and stocks fell by a cumulative 31%. The trailing three-year performance through June 2002 stands at a comparable 28%. Where do we go from here? Clearly, one has to recognize the risk of further market weakness in the face of heightened geopolitical tensions and growing distrust of corporate management. However, economic fundamentals are improving and more favorable news on corporate profits should follow. History also tells us that past periods of disconnect between Main Street and Wall Street has proven to be temporary. 7 HARTFORD SMALL COMPANY HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF STEVEN C. ANGELI] STEVEN C. ANGELI, CFA Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 8/9/1996 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
SMALL RUSSELL RUSSELL 2000 COMPANY IA 2000 INDEX GROWTH INDEX* $10,000 $10,000 $10,000 $10,715 $11,148 $10,786 $12,684 $13,653 $12,183 $14,158 $13,306 $12,332 $23,479 $16,134 $17,647 $20,398 $15,647 $13,689 $17,355 $16,036 $12,425 $15,303 $15,282 $10,270
AVERAGE ANNUAL RETURNS (Inception 8/9/1996)
1 YEAR 5 YEARS SINCE INCEPTION Small Company IA -15.77% 5.27% 7.49% Russell 2000 -8.59% 4.44% 7.46% Russell 2000 Growth -25.00% -1.98% 0.45%
The chart represents a hypothetical investment in the Hartford 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 8/9/1996 would have been valued at $15,123 on 6/30/2002. * The Fund has changed its benchmark from the Russell 2000 Index to the Russell 2000 Growth Index because the Russell 2000 Growth Index is better suited for the investment strategy of the fund. Q. How did the Fund perform? Hartford Small Company HLS Fund returned -11.8% for the 6-months ended June 30, 2002, outperforming both its peer group and market benchmark. The Lipper Small Company Growth VA-UF Average returned -18.0%, and the Russell 2000 Growth Index returned -17.4% over the same period. Q. Why did the Fund perform this way? The Fund outperformed its market benchmark through a combination of strong sector allocation and positive stock selection. The Fund's largest overweight was in the consumer discretionary sector, which was one of the best performing sectors over the six-month period. In health care, the Fund benefited from a significant underweight position in biotechnology, and strong stock selection in services. During the period, the top three contributors were Swedish Match AB (consumer non-durables), Hollywood Entertainment Corp. (media & entertainment) and Triad Hospitals, Inc. (health services); and the three worst performers were Acclaim Entertainment, Inc. (software & services), Frontier Airlines (transportation) and Enterasys Networks, Inc. (software & services). Q. What is your outlook for the remainder of 2002? Although economic conditions are improving, a prolonged slide in the equity markets could derail the recovery. Consumer spending remained strong in the second quarter, however, any meaningful curtailment in this area, especially driven by a weak stock market, could tilt the economy back towards a recession. Given this risk and our current positioning, we may trim our consumer discretionary weighting during the third and fourth quarters. Furthermore, the Russell re-balancing poses additional near-term challenges for the portfolio on two fronts. First, the top end of the Russell's market cap range has declined significantly, from approximately $3 billion to $1.6 billion. Thus, we will be gradually migrating the Fund to smaller market cap stocks. Second, due to the increase in the financial sector's weighting in the recently re-balanced Russell benchmark, we will likely be selectively adding new financial services names. 8 HARTFORD MIDCAP HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF PHILLIP H. PERELMUTER] PHILLIP H. PERELMUTER Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 7/14/1997 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
S&P MIDCAP MIDCAP IA 400 INDEX --------- --------- $10,000 $10,000 $10,952 $10,982 $11,381 $10,001 $14,406 $11,826 $21,869 $13,567 $26,357 $16,367 $26,434 $17,778 $25,748 $17,224
AVERAGE ANNUAL RETURNS (Inception 7/14/1997)
1 YEAR 5 YEARS SINCE INCEPTION MidCap IA -3.54% 20.82% 20.99% S&P 400 -4.71% 11.49% 11.57%
The chart represents a hypothetical investment in the Hartford MidCap 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. Class IB shares commenced on November 9, 1999. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 7/14/1997 would have been valued at $25,474 on 6/30/2002. 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 -2.6% for the 6-months ended June 30, 2002. The Fund's return exceeded the -3.2% return for the S&P MidCap 400 Index, and the -5.1% return of Lipper Mid-Cap Core VA-UF Average over the same period. Q. Why did the Fund perform this way? The top three contributors to performance over this six-month period were Williams-Sonoma, Inc. (retail), Anthem, Inc. (insurance), and Mattel, Inc. (consumer non-durables). The Fund's relative outperformance can be attributed largely to the strength of its stock selection in the health care and financial sectors. The Fund was hurt by the poor performance of its telecommunications and technology holdings. The telecommunications stock American Tower Corp., Class A (communications) was among the largest detractors from performance. PerkinElmer, Inc. (electrical equipment) and Sanmina-SCI Corp. (electronics), were also among the worst-performing issues as they sold off in response to lower-than-expected earnings projections. Q. What is your outlook for the remainder of 2002? We continue to be positioned to benefit from an eventual upturn in the economy, which is evident in our meaningful underweight position in utilities and overweight position in the consumer discretionary and industrial sectors. While recent stock performance is disheartening, the macroeconomic data tell a more encouraging story. Productivity is beginning to accelerate and the country is experiencing the sharpest decline in unit labor costs in 20 years. Orders in some of the worst hit sectors - such as manufacturing - are starting to show sequential improvement. For example, the June manufacturing index of the Institute for Supply Management (formerly known as the National Purchasing Managers Association) rose again from May, and the production index has now reached its highest level since June of 1999. U.S. corporate profits - bolstered by the impact of a weaker dollar - should begin to turn up, and the long-awaited rebound in investment spending should occur, which will benefit many of the holdings in the Fund. 9 HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF ANDREW S. OFFIT] ANDREW S. OFFIT Senior Vice President & Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 4/30/2001 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
INTERNATIONAL CAPITAL MSCI EAFE APPRECIATION IA INDEX --------------- --------- $10,000 $10,000 $ 8,978 $ 9,264 $ 7,351 $ 7,971 $ 8,602 $ 8,528 $ 8,844 $ 8,616 $ 8,407 $ 8,411
AVERAGE ANNUAL RETURNS (Inception 4/30/2001)
1 YEAR SINCE INCEPTION International Capital Appreciation IA -6.36% -13.81% MSCI EAFE -9.21% -13.78%
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 $8,389 on 6/30/2002. Q. How did the Fund perform? Hartford International Capital Appreciation HLS Fund returned -2.3% for the 6-months ended June 30, 2002. The Fund underperformed both its benchmark and peer group. The MSCI EAFE index returned -1.4% and the Lipper International Funds VA-UF Average returned -1.7% over the same period. Q. Why did the Fund perform this way? The Fund seeks capital appreciation by investing primarily in growth companies. The slight underperformance during the period was driven primarily by stock selection within the industrials sector and an overweight allocation to the underperforming information technology sector. Two of our largest absolute contributors for the period, YUKOS, ADR (energy & services), a Russian oil company, and Hyundai Motor Co., Ltd. (transportation), the Korean car manufacturer, were identified early as improving situations and had better than expected results. Q. What is your outlook for the remainder of 2002? Looking forward, we are optimistic about the balance of 2002. While rate cuts are likely a thing of the past, we expect to see strengthening economic growth. The markets have time on their side - as we move through 2002, current business trends should improve and comparisons will become easier. As always, the market environment proves to be both interesting and challenging for global investors. As volatility can cause periods of dislocation, it is increasingly important to pay attention to fundamentals and valuation parameters. Over the long term, we will continue to seek outperformance by identifying the winning sectors and companies. 10 HARTFORD CAPITAL APPRECIATION HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF SAUL J. PANNELL] SAUL J. PANNELL, CFA Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
CAPITAL S&P 500 APPRECIATION IA INDEX --------------- ------- $10,000 $10,000 $12,085 $10,834 $14,611 $11,923 $14,977 $12,080 $19,508 $16,613 $23,545 $10,421 $28,806 $27,230 $33,265 $35,007 $45,725 $42,372 $51,772 $38,515 $48,181 $33,943 $40,943 $29,480
AVERAGE ANNUAL RETURNS (Inception 4/2/1984)
1 YEAR 5 YEARS 10 YEARS Capital Appreciation IA -22.07% 8.70% 15.14% S&P 500 Index -17.97% 3.66% 11.42%
The chart represents a hypothetical investment in the Hartford 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. Class IB shares commenced on April 1 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $40,044 on 6/30/2002. Q. How did the Fund perform? Hartford Capital Appreciation HLS Fund returned -15.0% for the 6-months ended June 30, 2002. The Fund's return trailed the -8.4% return for the Composite Index (S&P 500 40% and Russell 2500 60%), and that of the Lipper Multi-Cap Core VA-UF Average, which returned -12.0% over the same period. Q. Why did the Fund perform this way? The Fund has had a difficult year to date as the overall U.S. market finished its worst first-half period in over thirty years. The revelation of fraudulent practices at certain companies has been responsible, in part, for the market's overall heightened risk aversion. Our holdings in Adelphia Communications Corp. (media & entertainment) and WorldCom, Inc. (communications) detracted heavily from Fund performance. In each case, we had eliminated our positions before the final act unfolded in the situations, but were too late to escape the effects entirely. With respect to AOL Time Warner, Inc. (software & services), a holding that detracted from performance during the period, we believe the value of the stock is under-appreciated by the market and, along with the currently weak advertising market, will improve with the economic cycle. Q. What is your outlook for the remainder of 2002? We expect that, at some point soon, the market will reflect the strong likelihood that economic recovery will continue, interest rates will remain benign, and not all companies are fraudulent. This is the most risk-averse psychological market environment in our collective investment careers. We continue to use an opportunistic approach to portfolio construction, seeking performance in any and all segments of the equity universe. We believe superior performance will be reflected in a relative multiple upgrade among our holdings versus the broader market, regardless of the overall market direction. 11 HARTFORD VALUE OPPORTUNITIES HLS FUND (Formerly Fortis Value Series) -------------------------------------------------------------------------------- PORTFOLIO MANAGERS JAMES H. AVERILL Senior Vice President & Partner Wellington Management Company, LLP JAMES N. MORDY Senior Vice President & Partner Wellington Management Company, LLP DAVID R. FASSNACHT, CFA Senior Vice President, Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 5/1/1996 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
VALUE RUSSELL 3000 S&P BARRA OPPORTUNITIES VALUE INDEX* VALUE INDEX ------------- ------------ ----------- $10,000 $10,000 $10,000 $11,149 $11,452 $11,351 $13,962 $15,441 $14,753 $15,309 $17,526 $16,919 $16,680 $18,691 $19,070 $19,764 $20,194 $20,004 $19,261 $19,319 $17,666 $15,963 $18,566 $15,995
AVERAGE ANNUAL RETURNS (Inception 5/1/1996)
1 YEAR 5 YEARS SINCE INCEPTION Value Opportunities IA -21.87% 4.76% 7.88% Russell 3000 Value -7.75% 6.67% 10.55% S&P Barra Value -18.07% 3.88% 7.91%
The chart represents a hypothetical investment in the Hartford Value Opportunities 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. Class IB shares commenced on May 1, 2002. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 5/1/1996 would have been valued at $15,719 on 6/30/2002. * The Fund has changed its benchmark from the S&P Barra Value Index to the Russell 3000 Value Index because the Russell 3000 Value Index is better suited for the investment strategy of the fund. Q. How did the Fund perform? Hartford Value Opportunities HLS Fund returned -17.1% for the 6-months ended June 30, 2002. The Fund underperformed the Russell 3000 Value Index, which returned -3.9% and the Lipper Multi Cap Value VA-UF Average, which returned -8.4% over the same period. Q. Why did the Fund perform this way? Hartford Value Opportunities HLS Fund underperformed the benchmark in the 6-month period primarily due to stock selection in the telecommunication services and consumer discretionary sectors. However, strong stock selection in the health care sector positively contributed to the performance in the Fund during this period. Top three contributors to the performance were Oxford Health Plans, Inc. (insurance), Toll Brothers, Inc. (construction) and RenaissanceRe Holdings, Ltd. (insurance). Three greatest detractors were WorldCom, Inc. (communications), Adelphia Communications Corp. (media & entertainment) and Tyco International Ltd. (consumer non-durables). Q. What is your outlook for the remainder of 2002? Economic conditions are improving. The manufacturing sector is in an accelerating mode. Orders and production are posting solid gains. Consumer spending remains steady, and importantly supported by an improving labor market. Profits are at an inflection point. Second half earnings comparisons will show strong positive growth from a year ago. As this earnings recovery gets underway, business investment will begin to recover. With all of this good news on the economy, why is the stock market so gloomy? There has indeed been a disconnect between Main Street and Wall Street. In our judgment, it is external factors that have shaken the equity market and investor confidence, namely the cascade of corporate accounting scandals and heightened geopolitical risk. We do not believe that the poor equity market performance will derail the economic recovery, though it will delay any interest rate rise contemplated by the Federal Reserve. 12 HARTFORD GROWTH HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF ANDREW J. SHILLING] ANDREW J. SHILLING, CFA Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 4/30/2002 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
RUSSELL 1000 GROWTH IA GROWTH INDEX --------- ------------ $10,000 $10,000 $ 9,758 $ 9,774 $ 8,856 $ 8,954
CUMULATIVE RETURNS (Inception 4/30/2002)
SINCE INCEPTION Growth IA -10.46% Russell 1000 Growth -11.44%
The chart represents a hypothetical investment in the Hartford Growth 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 4/30/2002 would have been valued at $8,950 on 6/30/2002. Q. How did the Fund perform? Hartford Growth HLS Fund (inception was on 4/30/02) returned -10.5% for the 2-months ended June 30, 2002. The Fund's return exceeded the -11.4% return of the Russell 1000 Growth Index and trailed the Lipper Large Cap Growth VA-UF Average, which returned -10.0% over the same period. Q. Why did the Fund perform this way? In the Portfolio both stock selection and sector allocation were positive contributors to performance versus the market benchmark. Stock selection was particularly strong in Technology, offset somewhat by poor choices in Consumer Staples and Financials. Sector allocation was strong in Technology, given our underweight of that weak sector, and in Financials, which performed well, but was weak in Consumer Staples, which has held up well in an extremely vulnerable market. The top performers over this two-month period were Intuit, Inc. (software & services), Microsoft Corp. (software & services) and Boston Scientific Corp. (medical instruments & supplies), and the three most significant detractors were Pharmacia Corp. (drugs),Abbott Laboratories (drugs) and Intel Corp. (electronics). Q. What is your outlook for the remainder of 2002? Economic conditions continue to improve, although the performance of the stock market would lead one to believe otherwise. The manufacturing sector is accelerating, and orders and production are posting gains. Soon we should learn that GDP growth has been positive for three consecutive quarters. So why has the stock market de-coupled from an improving economic picture? The answer appears to have several facets. First, the economic recovery now appears to be more anemic than was previously discounted. Second, the sharp economic slowdown has unveiled a spectacular amount of accounting fraud, abuse, and executive dishonesty. A potential third reason for this de-linking of the stock market from economic trends arises from reduced prospective growth expectations. The coalescing of all of these factors has lead to a sharp valuation correction over the past two or so years, as the forward multiple on the S&P 500 has fallen from the mid-twenties to today's level of 16x or so. Today's interest rate environment would seem to support a higher average multiple on forward earnings. But the market cycles, from fear to greed, often overshoot at the extremes. Today, fear reigns and so, it is not surprising that we may be in a period where valuations decline to unusual levels despite low interest rates and an improving economic picture. 13 HARTFORD MIDCAP VALUE HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF JAMES N. MORDY] JAMES N. MORDY Senior Vice President & Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 4/30/2001 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
MIDCAP RUSSELL 2500 VALUE IA VALUE INDEX -------- ----------- $10,000 $10,000 $10,139 $10,408 $ 8,234 $ 9,111 $ 9,959 $10,593 $10,776 $11,493 $10,032 $11,092
AVERAGE ANNUAL RETURNS (Inception 4/30/2001)
1 YEAR SINCE INCEPTION MidCap Value IA -1.05% 0.28% Russell 2500 Value 6.59% 9.29%
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 $10,011 on 6/30/2002. Q. How did the Fund perform? Hartford MidCap Value HLS Fund returned 0.7% for the 6-months ended June 30, 2002. The Fund's return trailed the 4.7% return for the Russell 2500 Value Index, but outperformed the Lipper Mid Cap Value VA-UF Average of -0.3% over the same period. Q. Why did the Fund perform this way? The Fund was severely hurt by its position in Adelphia Communications Corp. (media & entertainment). Our investment case was based on our positive view of cable fundamentals and a conviction that Adelphia's stock market valuation was substantially below the value of its assets. Even after the initial revelation of $2.1bn in debt guarantees, we felt our case was still intact. Our failure was in judging the character of management, upon whom we ultimately depended to realize those asset values. We liquidated this position as new revelations about the extent of the fraud forced the de-listing and eventual bankruptcy filing. We can still participate in any recoveries due shareholders through the courts. Several of the Fund's technology holdings also detracted from performance, however we continue to hold many of them as we see a disconnect between mid-to-long term upside potential and near term concerns which are weighing on the stocks. On the other hand, we enjoyed relatively good performance in areas like energy, health care and basic materials. Q. What is your outlook for the remainder of 2002? We continue to be positioned to leverage an upturn, and would point to a number of economic indicators that suggest the recovery is progressing. Consequently, we remain overweight industrials, technology, energy and certain areas of finance, while remaining underweight areas like consumer discretionary and utility stocks, where we see much less upside. Investor confidence may take longer to fully recover, and we certainly have a lot less tolerance for any management that is not fully candid and forthcoming with us. 14 HARTFORD FOCUS HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF RAND L. ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President, Partner and Director of U.S. Core Equities Wellington Management Company, LLP ASSOCIATE PORTFOLIO MANAGER [PHOTO OF MAYA K. BITTAR] MAYA K. BITTAR, CFA Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 4/30/2001 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
S&P 500 FOCUS IA INDEX -------- ------- $10,000 $10,000 $ 9,822 $ 9,963 $ 8,381 $ 8,758 $ 9,278 $10,394 $ 9,303 $10,201 $ 8,058 $ 8,281
AVERAGE ANNUAL RETURNS (Inception 4/30/2001)
SINCE 1 YEAR INCEPTION Focus IA -16.89% -14.93% S&P 500 -17.97% -16.89%
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 $8,263 on 6/30/2002. Q. How did the Fund perform? Hartford Focus HLS Fund returned -20.3% for the 6-months ended June 30, 2002. The Fund underperformed both the Lipper Large Cap Core VA-UF Average, which returned -14.1% and the S&P 500 Index, which returned -13.2% over the same period. Q. Why did the Fund perform this way? The first half of 2002 proved to be tumultuous for U.S. equity investors. Continued concerns about global terrorism, constant turmoil in the Middle East, economic chaos in parts of South America, a weakening dollar, revelations of corporate malfeasance and accounting chicanery by a number of large corporations, resulted in one of the worst absolute and relative performance periods in recent history. The Fund's underperformance was due to our emphasis on large caps, our exposure to technology and health care, our underweights in consumer staples and consumer discretionary and significant declines in a number of our individual holdings. Recently, we made a number of changes to try to improve performance. We reduced our technology holdings early in the quarter and then rebuilt some positions towards the end of June, as valuations seemed to reflect the most negative possible scenario. We also eliminated a few companies like Tyco International Ltd. (consumer non-durables) and El Paso Corp. (utilities), where we lost confidence in management or are concerned about the outlook for the industry. The portfolio is diversified across a number of sectors, but the primary problem with performance has been our exposure to large capitalization companies such as GE which have undergone significant P/E compression during the period. While we view this as an opportunity to buy the best companies in the world at bargain prices, others have continued to liquidate their positions. Q. What is your outlook for the remainder of 2002? Going forward, there are some positives on the horizon. Interest rates are low and should remain low for the next three to six months at least. The economy in the U.S. is growing, although the pace has moderated from that of the first quarter. The accounting issues and corporate governance concerns should be addressed quite rapidly by most companies, hopefully helping to restore confidence in the system. The weak dollar should help U.S. multinationals grow revenues. And finally, valuations look quite reasonable unless earnings growth stalls over the next six months. So, while this has been a severely disappointing period for all investors, we see some reasons to be hopeful about the future. 15 HARTFORD GLOBAL LEADERS HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT [PHOTO OF ANDREW S. OFFIT] ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 9/30/1998 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GLOBAL MSCI WORLD LEADERS IA INDEX ---------- ---------- $10,000 $10,000 $13,188 $12,122 $19,830 $15,194 $18,429 $13,231 $15,373 $11,046 $14,111 $10,095
AVERAGE ANNUAL RETURNS (Inception 9/30/1998)
1 YEAR SINCE INCEPTION Global Leaders IA -12.97% 9.62% MSCI World -14.89% 0.25%
The chart represents a hypothetical investment in the Hartford Global Leaders 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 9/30/1998 would have been valued at $14,016 on 6/30/2002. Q. How did the Fund perform? Hartford Global Leaders HLS Fund returned -8.2% for the 6-months ended June 30, 2002. The Fund outperformed the MSCI World Index, which returned -8.6%, but underperformed the Lipper Global Funds VA-UF Average, which returned -7.0% over the same period. Q. Why did the Fund perform this way? The Fund benefited from good stock selection in the consumer discretionary area, with holdings such as Peugeot Citroen S.A. (transportation) and Staples, Inc. (retail), and in the information technology sector, with holdings such as Samsung Electronics Co., Ltd. (electronics), Sony Corp. (electronics) and VeriSign, Inc. (software & services). The consumer discretionary sector has and should continue to benefit from the anticipated global economic recovery, as consumers regain confidence and accelerate their spending on non-essential items. Successful stock picking continues to be the primary focus of the market as well as of our process, rather than sector allocation. Q. What is your outlook for the remainder of 2002? Looking forward, we are optimistic about the balance of 2002. While rate cuts are likely a thing of the past, we expect to see strengthening economic growth. The markets have time on their side - as we move through 2002, current business trends should improve and comparisons will become easier. As always, the market environment proves to be both interesting and challenging for global investors. As volatility can cause periods of dislocation, it is increasingly important to pay attention to fundamentals and valuation parameters. Over the long term, we will continue to seek outperformance by identifying the winning sectors and companies. 16 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF TROND SKRAMSTAD] TROND SKRAMSTAD Senior Vice President, and Partner Wellington Management Company, LLP ASSOCIATE PORTFOLIO MANAGER [PHOTO OF ANDREW S. OFFIT] ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
INTERNATIONAL MSCI AC FREE MSCI EAFE OPPORTUNITIES IA ex US INDEX** GDP INDEX* ---------------- ------------- ---------- $10,000 $10,000 $10,000 $ 9,448 $ 9,789 $ 9,428 $12,634 $13,206 $12,645 $12,389 $14,081 $13,683 $14,115 $15,481 $15,272 $15,941 $16,515 $16,503 $15,995 $16,852 $17,519 $18,100 $19,289 $22,269 $25,314 $25,250 $29,257 $20,984 $21,441 $24,779 $17,054 $17,261 $19,346 $16,617 $17,080 $19,417
AVERAGE ANNUAL RETURNS (Inception 7/2/1990)
1 YEAR 5 YEARS 10 YEARS Int'l. Opp. IA -7.91% -1.12% 5.21% MSCI AC Free ex US -8.17% -1.70% 5.50% MSCI EAFE GDP* -10.24% 0.96% 6.86%
The chart represents a hypothetical investment in the Hartford International Opportunities 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $16,254 on 6/30/2002. * The Morgan Stanley Europe Australia Far East GDP index. **The Fund has changed its benchmark from the MSCI EAFE GDP Index to the MSCI AC World Free ex US Index because the MSCI AC World Free ex US Index is better suited for the investment strategy of the fund. Q. How did the Fund perform? Hartford International Opportunities HLS Fund returned -2.6% for the 6-months ended June 30, 2002. The Fund's return trailed both the -1.0% return for the MSCI All-Country World Free ex US Index, and the -1.7% return for the Lipper International VA-UF Average, over the same period. Q. Why did the Fund perform this way? Underperformance of the Fund was primarily two-fold: modestly negative country allocation and poor stock selection within certain regions. With respect to country allocation, the Fund's underweight position in Japan, overweight position in Hong Kong and the allocation to Latin America hurt the Fund's performance. During the first six months of the year, Japanese equities outperformed, helped by a significantly stronger yen. We reduced our position late in the second quarter because we found the Japanese market less compelling and felt that Japanese fundamentals have been more fully reflected in equity prices. Emerging market countries struggled during the period, hurt most by weakness within Latin America. We continued to underweight developed Asia ex-Japan, but maintained exposure to emerging Asia, resulting in a modest overweight in Asia ex-Japan as a whole. Asia outperformed the major developed regions for over a year now and we expect that it will continue to do so. With respect to stock selection, the Fund's holdings in Japanese and Asian ex-Japanese equities hurt the Fund's performance offsetting positive stock selection in Europe and the Emerging Markets. The Fund is currently poised for global economic recovery investing in those areas of the market that are attractively valued. Q. What is your outlook for the remainder of 2002? The global economy and markets are currently trending in opposite directions in a disconnect that has few precedents in history. The global economy, led by the U.S. and Asia ex-Japan, appears to be recovering reasonably well, albeit unspectacularly, from the recent, synchronized global slowdown. Global markets, on the other hand, continue to deflate in the aftermath of the late-1990s bubble. The most recent leg down in the markets has resulted in valuations more attractive than they have been in some time. We are cautiously optimistic that these increasingly attractive valuations, combined with the continuing positive economic news, will eventually turn the equity markets around. However, significant risks remain that could prolong the current malaise in the markets. The risks include additional corporate fraud revelations, violence in the Middle East, the war on terrorism, and fund flows out of equities. Barring major exogenous shocks, however, we believe that the gradually improving economy will drive an improvement in equity market returns going forward. 17 HARTFORD STOCK HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF RAND L. ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President, and Partner Wellington Management Company, LLP ASSOCIATE PORTFOLIO MANAGER [PHOTO OF MAYA K. BITTAR] MAYA K. BITTAR, CFA Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
STOCK IA S&P 500 INDEX -------- ------------- $10,000 $10,000 $11,080 $10,834 $12,669 $11,923 $12,429 $12,080 $16,667 $16,613 $20,728 $20,421 $27,232 $27,230 $36,347 $35,007 $43,538 $42,372 $40,471 $38,515 $35,521 $33,943 $29,639 $29,480
AVERAGE ANNUAL RETURNS (Inception 8/31/1977)
1 YEAR 5 YEARS 10 YEARS Stock IA -20.53% 3.22% 11.48% S&P 500 Index -17.97% 3.66% 11.42%
The chart represents a hypothetical investment in the Hartford Stock 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $28,987 on 6/30/2002. Q. How did the Fund perform? Hartford Stock HLS Fund returned -16.6% for the 6-months ended June 30, 2002. The Fund underperformed both the Lipper Large Cap Core VA-UF Average, return of -14.1% and the S&P 500 Index, return of -13.2% over the same period. Q. Why did the Fund perform this way? The first half of 2002 proved to be tumultuous for U.S. equity investors. Continued concerns about global terrorism, constant turmoil in the Middle East, economic chaos in parts of South America, a weakening dollar, revelations of corporate malfeasance and accounting chicanery by a number of large corporations, resulted in one of the worst absolute and relative performance periods in recent history. The best performing sectors on a relative basis were basic materials, consumer staples, energy, and financials. Conversely, the technology, telecom, utilities and health care sectors were quite weak. Small caps continued to outperform large caps, while value outperformed growth. The Fund's underperformance was due to our emphasis on large caps, our exposure to technology and health care, our underweights in consumer staples and consumer discretionary and significant declines in a number of our individual holdings. Recently, we made a number of changes to try to improve performance. We reduced our technology holdings early in the quarter due to evidence that the fallout from the bubble of 1999 and 2000 was more severe than we had originally thought. We increased our industrial and commercial weight in anticipation of better growth in that sector of the economy. Finally, we increased our health care exposure since many of the companies within this sector should benefit from a weaker dollar. Q. What is your outlook for the remainder of 2002? Going forward, there are some positives on the horizon. Interest rates are low and should remain low for the next three to six months at least. The economy in the U.S. is growing, although the pace has moderated from that of the first quarter. The accounting issues and corporate governance concerns should be addressed quite rapidly by most companies, hopefully helping to restore confidence in the system. The weak dollar should help U.S. multinationals grow revenues. And finally, valuations look quite reasonable unless earnings growth stalls over the next six months. So, while this has been a severely disappointing period for all investors, we see some reasons to be hopeful about the future. 18 HARTFORD GROWTH AND INCOME HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF JAMES A. RULLO] JAMES A. RULLO, CFA Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 5/29/1998 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
GROWTH AND S&P 500 INCOME IA INDEX ---------- ------- $10,000 $10,000 $10,406 $10,406 $ 9,619 $ 9,371 $11,905 $11,365 $12,415 $11,931 $13,373 $12,771 $12,540 $11,974 $14,503 $13,754 $13,684 $12,503 $13,353 $11,665 $12,587 $11,021 $10,482 $ 9,572
AVERAGE ANNUAL RETURNS (Inception 5/29/1998)
1 YEAR SINCE INCEPTION Growth and Income IA -21.50% 1.16% S&P 500 Index -17.97% -1.07%
The chart represents a hypothetical investment in the Hartford Growth and Income 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 5/29/1998 would have been valued at $10,392 on 6/30/2002. Q. How did the Fund perform? Hartford Growth and Income HLS Fund returned -16.7% for the 6-months ended June 30, 2002. The Fund underperformed the S&P 500 index, which returned -13.2% and the Lipper Large Cap Core VA-UF Average, which returned -14.1% over the same period. Q. Why did the Fund perform this way? The Fund underperformed the benchmark during the period primarily due to returns in the consumer discretionary, industrials, and telecommunications services sectors. Within media, the Fund's exposure to AOL Time Warner, Inc. (software & services) and Adelphia Communications Corp. (media & entertainment) negatively impacted performance. In industrials, the overweight position in Tyco International Ltd. (consumer non-durables) accounted for over half of the Fund's relative underperformance during the period. Also in industrials, holdings in WorldCom, Inc. (communications) detracted heavily from performance. Q. What is your outlook for the remainder of 2002? We believe that a key variable to the speed and magnitude of this recovery will be consumer spending, which accounts for almost 2/3 of the economic activity in the U.S. In the last year, the consumer has benefited from the strong housing market, tax cuts, and lower energy costs. For strong consumer demand to continue, job growth must continue to improve. We believe that corporate profit growth, another important variable in this economic recovery, will be stronger later this year and into 2003, and capital spending should then follow. 19 HARTFORD INDEX HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF RODGER METZGER] RODGER METZGER Vice President Hartford Investment Management Company PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth Of a $10,000 Investment [LINE GRAPH]
HARTFORD INDEX S&P 500 HLS FUND IA INDEX -------------- ------- $10,000 $10,000 $10,796 $10,834 $11,780 $11,923 $11,891 $12,080 $16,237 $16,613 $19,824 $20,421 $26,288 $27,230 $33,665 $35,007 $40,563 $42,372 $36,709 $38,515 $32,189 $33,943 $27,890 $29,480
AVERAGE ANNUAL RETURNS (Inception 5/1/1987)
1 YEAR 5 YEARS 10 YEARS Index IA -18.38% 3.19% 10.80% S&P 500 -17.97% 3.66% 11.42%
The chart represents a hypothetical investment in the Hartford Index 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. Class IB shares commenced on November 9, 1999. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $27,246 on 6/30/2002. Q. How did the Fund perform? Hartford Index HLS Fund returned -13.4% for the 6-months ending June 30, 2002. The Fund underperformed its benchmark, the S&P 500 Index, which returned -13.2% and matched the Lipper S&P 500 Index Objective VA-UF Average, which returned -13.4% over the same period. Q. Why did the Fund perform this way? For the year, before expenses my fund was minus 5 basis points relative to the S&P 500 Index. All other underperformance would be attributed to expenses of one form or another. The slight underperformance of the Fund versus the S&P 500 Index can be attributed to factors such as investing cashflows in an up market or divesting in a declining market and the implied yield in the short term market which can be lower than the implied yield in the S&P 500 stock index futures. The index is not subject to these market and trading costs (such as commission paid for executions). Q. What is your outlook for the remainder of 2002? Obviously the question of the day is what is next for the market. My answer lies somewhere in a discussion about the economy and market valuation. If the economy can begin to recover, we will be bailed out by increasing earning estimates and growth rates. My concern is that the consumer, which has done the majority of the spending will go into a savings mode because of the weak equity market. This may delay the economic recovery which would cause analysts to reduce earnings for 2003 and temper any market rebound. Valuation remains a problem with the S&P 500 trading at a P/E multiple much higher than after a typical economic slowdown. In addition, concerns about gains (and losses) on net pension assets and the possibility of expensing stock options may push the "E" even lower than expected. 20 HARTFORD VALUE HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER JOHN R. RYAN, CFA Senior Vice President & Managing Partner Wellington Management Company, LLP INVESTMENT TEAM 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 PERFORMANCE OVERVIEW 4/30/2001 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
RUSSELL 1000 VALUE IA VALUE INDEX -------- ----------- $10,000 $10,000 $10,070 $ 9,998 $ 9,140 $ 8,903 $10,006 $ 9,559 $10,026 $ 9,950 $ 9,030 $ 9,103
AVERAGE ANNUAL RETURNS (Inception 4/30/2001)
1 YEAR SINCE INCEPTION Value IA -10.32% -8.37% Russell 1000 Value -8.95% -7.74%
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 $9,011 on 6/30/2002. Q. How did the Fund perform? Hartford Value HLS Fund returned -9.8% for the 6-months ended June 30, 2002. The Fund underperformed the Russell 1000 Value Index of -4.8% and the Lipper Large-Cap Value VA-UF Average of -8.5% over the same period. Q. Why did the Fund perform this way? Stock selection in two of ten broad industry sectors was additive to the Fund's benchmark-relative performance in the 6-month period. Holdings in information technology and utilities were the largest contributors while holdings in consumer discretionary, telecommunications and industrials detracted the most from results. Stocks that contributed the most to relative results were Washington Mutual, Inc. (banks), National City Corp. (banks), Dollar General Corp. (retail) and Family Dollar Stores, Inc. (retail). Stocks held during the 6-month period that detracted the most from benchmark-relative results were Adelphia Communications Corp. (media & entertainment), Comcast Corp., Class A (media & entertainment) and Hewlett-Packard Co. (computers & office equipment). Q. What is your outlook for the remainder of 2002? Although the stock market is exhibiting unprecedented weakness for an economic recovery, we expect that a sustainable U.S. expansion will continue during the next 12 months. The jump in the first quarter GDP aside, we expect this recovery to be more moderate than is typical largely because of the moderate nature of the recession that preceded it. We expect consumer spending to decelerate somewhat, particularly if automotive and housing markets soften, but economic growth should be sustained by a rebound in industrial activity. The two key ingredients leading to this rebound are an inventory cycle and the lower dollar. These factors should boost corporate profits, which in turn will drive a new capital spending cycle. While the NASDAQ meltdown, corporate greed, accounting miscues, and journalistic hyperbole are occupying center stage now, the most important investment factor as we enter the third quarter is the nascent economic recovery. In effect, the long ignored blemishes that accompanied the previous expansion are now the objects of obsession. Our optimistic leanings on the economy could be buttressed by a stabilization in equity markets, an orderly decline in the U.S. dollar, and an improvement in corporate profits. These economic stories could emerge and support the unfolding of a broad-based economic recovery. A better economy also will moderate the negative effect of potential or actual geopolitical turbulence on consumer and business sentiment. 21 HARTFORD DIVIDEND AND GROWTH HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF EDWARD P. BOUSA] EDWARD P. BOUSA, CFA Vice President Wellington Management Company, LLP PERFORMANCE OVERVIEW 3/9/1994 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
DIVIDEND AND S&P 500 GROWTH IA INDEX ------------ ------- $10,000 $10,000 $10,188 $10,062 $13,894 $12,371 $17,076 $17,013 $22,521 $22,687 $26,219 $29,207 $27,634 $35,352 $30,661 $32,114 $30,229 $29,962 $29,422 $28,299 $28,209 $24,556
AVERAGE ANNUAL RETURNS (Inception 3/9/1994)
1 YEAR 5 YEARS SINCE INCEPTION Dividend and Growth IA -6.68% 6.67% 13.28% S&P 500 Index -17.97% 3.66% 11.41%
The chart represents a hypothetical investment in the Hartford Dividend and Growth 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 3/9/1994 would have been valued at $27,706 on 6/30/2002. Q. How did the Fund perform? Hartford Dividend and Growth HLS Fund returned -4.1% net of fund expenses for the 6-months ended June 30, 2002. The Fund outperformed its competitive group as represented by the Lipper Equity Income VA-UF Average, which provided a return of -6.6% and the S&P 500 Index, which provided return of -13.2% over the same period. Q. Why did the Fund perform this way? In line with our dividend-oriented style, the Fund continues to be underweight in the information technology sector. This underweight position relative to the S&P 500 Index was the greatest contributor to the Fund's outperformance during the period. Furthermore, strong stock selection in industrials and utilities also helped performance. Among the stocks which contributed positively to performance in the Fund were Wachovia Corp. (banks), Weyerhaeuser Co. (forest & paper products), Procter & Gamble Co. (The) (consumer non-durables) and Franklin Resources, Inc. (financial services). The Fund also had a few disappointments during the 6-month period including International Business Machines Corp. (computers & office equipment), Citigroup, Inc. (banks), Abbott Laboratories (drugs) and AOL Time Warner, Inc. (software & services). Q. What is your outlook for the remainder of 2002? The economy is improving at a moderate pace, but is not likely to rapidly accelerate because of the already-strong consumer. The big driver of growth is likely to be in the industrial sector where the weak dollar is providing a boost. Although terrorism is a concern, it does not seem to be affecting the economy, with the exception of the airline industry. Our focus on discovering high quality companies at low valuations has served us well over the long term, and especially during the last two years. We expect to be researching many new names, as we look to take advantage of investment opportunities resulting from recent market volatility. 22 HARTFORD GLOBAL ADVISERS HLS FUND (Formerly Hartford International Advisers HLS Fund) -------------------------------------------------------------------------------- PORTFOLIO MANAGERS ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP ROBERT EVANS Senior Vice President and Partner Wellington Management Company, LLP SCOTT M. ELLIOTT, CFA Senior Vice President and Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 3/1/1995 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
LEHMAN BROTHERS GLOBAL MSCI WORLD GLOBAL AGGREGATE ADVISERS IA INDEX INDEX USD HGD ----------- ---------- ---------------- $10,000 $10,000 $10,000 $11,584 $12,135 $11,378 $12,950 $13,834 $11,842 $13,665 $16,079 $11,338 $15,489 $20,067 $13,355 $19,077 $25,152 $12,678 $17,812 $21,902 $12,344 $16,699 $18,299 $16,835 $16,089 $16,709 $14,845
AVERAGE ANNUAL RETURNS (Inception 3/1/1995)
1 YEAR 5 YEARS SINCE INCEPTION Global Advisers IA -5.10% 2.84% 6.70% MSCI World -14.89% 0.88% 7.25% LEHMAN AGGREGATE 9.38% 4.35% 5.53%
The charts represent a hypothetical investment in the Hartford Global Advisers 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. Class IB shares commenced on November 9, 1999. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares at the Fund's inception of 3/1/1995 would have been valued at $15,825 on 6/30/2002. Q. How did the Fund perform? Hartford Global Advisers HLS Fund returned -3.7% for the 6-months ended June 30, 2002. The Fund underperformed its peer group, the Lipper Global Flexible VA-UF Average, which returned -2.5%. However, Fund performance was in line with the Composite Index (Morgan Stanley Capital International World Index 55%, Lehman Brothers Global Aggregate Index 35% and 90 day Treasury Bills 10%), which also returned -3.7% over the same period. Q. Why did the Fund perform this way? Global equity markets were down for the first six months of the year, as demonstrated by the -8.6% return of the MSCI World index. The Fund's equity portfolio outperformed its benchmark, benefiting from strong stock selection in information technology and consumer discretionary. Technology holdings Samsung Electronics Co., Ltd. (electronics) and Oracle Corp. (software & services) and Consumer Discretionary holdings Peugeot Citroen S.A. (transportation) and Staples, Inc. (retail) were among the Fund's top performers for the period. However, the overweight position in technology was a slight detractor, since this sector was one of the worst performers globally. The fixed income portion also outperformed its benchmark, and this portfolio's positive return helped cushion the impact of negative performance in the global equity markets. Q. What is your outlook for the remainder of 2002? As we start the third quarter, we believe the global economic expansion will slowly unfold as companies restructure balance sheets via capital investment and debt reduction; and rebuild earnings via cost reductions. This environment will keep global growth, inflation, and government interest rates lower and credit spreads wider than normal. Accordingly, we remain careful with duration and credit risk across the fixed income portion of the Fund. As always, the market environment proves to be both interesting and challenging for global equity investors. While volatility can cause periods of dislocation, this is good news for the Fund overall. By their very nature, global leaders have superior products, market share, and management, making them desirable investments, especially in turbulent times. Over the long term, as long as we continue to identify the winning sectors and companies, the equity portion of Fund should succeed and outperform. 23 HARTFORD ADVISERS HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGERS [PHOTO OF RAND L. ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President, Partner Wellington Management Company, LLP [PHOTO OF PAUL D. KAPLAN] PAUL D. KAPLAN Senior Vice President, Partner Wellington Management Company, LLP PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
LEHMAN BROTHERS S&P 500 GOVT./CREDIT ADVISERS IA INDEX BOND INDEX ----------- ------- --------------- $10,000 $10,000 $10,000 $10,800 $10,834 $10,457 $12,123 $11,923 $11,476 $11,792 $12,080 $11,141 $15,133 $16,613 $13,200 $17,644 $20,421 $13,677 $21,967 $27,230 $15,002 $27,383 $35,007 $16,303 $30,282 $42,372 $16,167 $30,056 $38,515 $18,048 $28,661 $33,943 $19,568 $25,814 $29,480 $20,310
AVERAGE ANNUAL RETURNS (Inception 3/31/1983)
1 YEAR 5 YEAR 10 YEAR Advisers IA -10.84% 4.75% 9.95% S&P 500 Index -17.97% 3.66% 11.42% Lehman Brothers Govt./Credit 9.62% 7.57% 7.34%
The chart represents a hypothetical investment in the Hartford Advisers 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $25,240 on 6/30/2002. Q. How did the Fund perform? Hartford Advisers HLS Fund returned -9.9% for the 6-months ended June 30, 2002. The Fund underperformed both the Lipper Flexible VA-UF Average, which returned -6.4% and the Composite Index (S&P 500 55%, Lehman Brothers Government Credit Bond Index 35%, and 90 day Treasury Bills 10%), which returned -6.1% over the same period. Q. Why did the Fund perform this way? Like the stock market, the bond market has been seeing ongoing weakness resulting from the continuing disclosure of corporate accounting and earnings questions. The negative environment has permitted the yields of U.S. Treasury securities to decline once again as investors seek a safe haven. Short- and intermediate-term Treasury yields have declined most sharply with the yields of longer dated Treasuries lagging. This pattern is perfectly consistent with the "safe haven" behavior of investors. The liquidity of the corporate bond market remains poor, particularly for those bonds where some questions on management or accounting behavior have arisen. Selling these bonds is very expensive. The mortgage sector has remained very strong, largely due to the negative environment in the corporate sector. Mortgage-backed securities insured or guaranteed by an agency of the U.S. Government appeal to investors due to the attractive yield spreads and because they are perceived to be free of the possibility of accounting scandal. Although this negative sentiment will end at some point, it is difficult to know when the end will occur. We therefore have assumed a somewhat more conservative asset allocation position and will look for a better opportunity to add to stocks when it appears that the economy is once again going to be the primary determinant of equity performance. Q. What is your outlook for the remainder of 2002? Going forward, there are some positives on the horizon. Interest rates are low and should remain low for the next three to six months at least. The economy in the U.S. is growing, although the pace has moderated from that of the first quarter. The accounting issues and corporate governance concerns should be addressed quite rapidly by most companies, hopefully helping to restore confidence in the system. The weak dollar should help U.S. multinationals grow revenues. And finally, valuations look quite reasonable unless earnings growth stalls over the next six months. So, while this has been a severely disappointing period for all investors, we see some reasons to be hopeful about the future. 24 HARTFORD HIGH YIELD HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF ALISON D. GRANGER] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company PERFORMANCE OVERVIEW 9/30/1998 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
LEHMAN BROTHERS HIGH HIGH YIELD IA YIELD CORPORATE INDEX ------------- --------------------- $10,000 $10,000 $10,368 $10,213 $10,856 $10,457 $10,968 $ 9,844 $11,263 $10,363 $10,409 $ 9,862
AVERAGE ANNUAL RETURNS (Inception 9/30/1998)
1 YEAR SINCE INCEPTION High Yield IA -5.53% 1.07% Lehman Brothers High Yield Corporate -3.60% -0.37%
The chart represents a hypothetical investment in the Hartford High Yield 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 9/30/1998 would have been valued at $10,335 on 6/30/2002. Q. How did the Fund perform? Hartford High Yield HLS Fund returned -7.6% for the 6-months ended June 30, 2002. The Fund underperformed both the Lehman Brothers High Yield Corporate Bond Index, which returned -4.8% and the Lipper High Current Yield VA-UF Average, which returned -3.5% over the same period. Q. Why did the Fund perform this way? Fund performance was aided by the increased exposure to bonds issued by companies in the chemical, metals and mining, paper, and oil and gas producer industries, as the market anticipated further economic growth. The Fund also benefited from its underweight to wireless telecommunications and cable companies, as weakness dominated these industries due to investor concerns that industry indebtedness is too high. The Fund's overweight in technology-related issues at the expense of lower-yielding gaming and lodging issuers were the principal sources of underperformance. Q. What is your outlook for the remainder of 2002? We will emphasize the Fund's holdings in industries and issuers with a high likelihood of improved cashflow and an emphasis on balance sheet repair, where their bond valuations do not yet reflect this potential. While our views are admittedly controversial, we believe that the valuations of select communications-related issues possess this profile. Apart from communications, opportunities remain in a variety of basic industry cyclical issues. The Fund remains underweighted to consumer cyclical industries such as retail, gaming, lodging, and homebuilding. These issues offer low-yielding investments relative to other alternatives. Recent relative weakness in consumer confidence indicates to us that future results may not be as positive as past results have been. We do not believe that the highly-leveraged, albeit resilient, U.S. consumer will provide a source of significant growth to the U.S. economic recovery. 25 HARTFORD BOND HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF ALISON D. GRANGER] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
LEHMAN BROTHERS LEHMAN BROTHERS U.S. AGGREGATE GOVT./CREDIT BOND IA BOND INDEX* BOND INDEX ------- --------------- --------------- $10,000 $10,000 $10,000 $10,335 $10,457 $10,497 $11,392 $11,476 $11,655 $10,942 $11,141 $11,246 $12,965 $13,200 $13,410 $13,422 $13,677 $13,799 $14,946 $15,002 $15,146 $16,163 $16,303 $16,580 $15,837 $16,167 $16,224 $17,736 $18,048 $18,147 $19,275 $19,568 $19,690 $19,760 $20,310 $20,333
AVERAGE ANNUAL RETURNS (Inception 8/31/1977)
1 YEAR 5 YEARS 10 YEARS Bond IA 7.70% 7.26% 7.05% Lehman Aggregate Bond 8.62% 7.57% 7.34% Lehman Brothers Govt./Credit Bond 8.25% 7.48% 7.35%
The chart represents a hypothetical investment in the Hartford Bond 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. Class IB shares commenced on April 1, 1998. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares since 6/30/1992 would have been valued at $19,326 on 6/30/2002. * The Fund has changed its benchmark from the Lehman Brothers Government/Credit Bond Index to the Lehman Brothers U.S. Aggregate Bond Index because the Lehman Brothers U.S. Aggregate Bond Index is better suited for the investment strategy of the fund. Q. How did the Fund perform? Hartford Bond HLS Fund returned 2.5% for the 6-months ended June 30, 2002. The Fund overperformed the Lipper Corporate Debt BBB Rated VA-UF Average, which returned 2.1% and underperformed the Lehman Brothers Aggregate Bond Index, which returned 3.8% over the same period. Q. Why did the Fund perform this way? The Fund benefited from its overweight to economically-sensitive corporate bonds in the mining, paper, chemical, and oil and gas industries. The Fund's underweight to U.S. Treasuries combined with the inclusion of some Treasury Inflation Protected Securities (TIPS) also contributed positively to returns. The Fund's position in euro-denominated European government short-maturity Treasuries aided performance as these issues yield significantly more than equivalent maturity U.S. Treasury issues. The principal source that dragged on the Fund's performance, in spite of their attractive yield, was its holdings in high yield corporate bonds (including telecommunications). Q. What is your outlook for the remainder of 2002? In spite of the negative sentiment swirling around the corporate bond market, we are seeing signs that certain corporations are focusing on reducing leverage and improving their financial flexibility. Within corporates, Fund holdings particularly emphasize select telecommunications and technology issues, as well as basic industry cyclicals such as chemicals and metals and mining. We are de-emphasizing finance and consumer-sensitive securities, as we do not expect the consumer to lead the way toward higher economic growth. While the Fund is slightly underweighted to mortgages relative to its benchmark index, we have increased the Fund weighting to passthrough issues over the course of the quarter, having sold lower-yielding Treasuries to do so. 26 HARTFORD MORTGAGE SECURITIES HLS FUND -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF PETER PERROTTI] PETER PERROTTI Senior Vice President Hartford Investment Management Company PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
MORTGAGE LEHMAN MORTGAGE SECURITIES IA BACKED SECURITIES INDEX ------------- ----------------------- $10,000 $10,000 $10,153 $10,372 $10,794 $11,082 $10,620 $10,903 $12,337 $12,736 $12,962 $13,417 $14,131 $14,691 $15,080 $15,713 $15,309 $16,004 $16,883 $17,792 $18,149 $19,254 $18,860 $20,121
AVERAGE ANNUAL RETURNS (Inception 1/1/1985)
1 YEAR 5 YEARS 10 YEARS Mortgage Securities IA 8.21% 7.03% 6.55% Lehman Mortgage Backed Securities Index 8.98% 7.61% 7.24%
The chart represents a hypothetical investment in the Hartford Mortgage Securities 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. Class IB shares commenced on November 9, 1999. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares since 6/30/1992 would have been valued at $18,404 on 6/30/2002. Q. How did the Fund perform? Hartford Mortgage Securities HLS Fund returned 3.9% for the 6-months ended June 30, 2002. The Fund underperformed both the Lehman Mortgage Backed Securities Index, which returned 4.5% and the Lipper U.S. Mortgage VA-UF Average, which returned 4.1% over the same period. Q. Why did the Fund perform this way? The economy appears to be on a path to recovery with the manufacturing sector showing signs of turning up and the consumer remaining resilient. Alan Greenspan and the Federal Open Market Committee continue to voice their belief in a pickup in growth with contained inflation. However, the markets remain focused on equity valuations and corporate scandals. The concerns about corporate credibility have increased questions about the speed and sustainability of an economic recovery. Mortgages continue to perform well in this environment due to the fact they offer high yields and a safe haven from corporate credit concerns. Prepayments remain below the peaks of last fall, aiding the performance of the sector. The Mortgage market has outpaced comparable duration Treasuries by over one and a quarter percent for the year. The Fund's performance benefited from holding a majority of Agency backed Mortgage Passthrough securities and a relatively small position in Treasury Inflation Protected Securities. However, the Fund was positioned more cautiously to protect against a rise in interest rates, which led to a lower return. Also, the Fund's holdings in Non-Agency securities were unable to keep pace with their agency counterparts, which slightly dragged on the returns of the Fund. Q. What is your outlook for the remainder of 2002? The economy appears to be on much better footing, although the power and sustainability of growth remains in question. Consumer spending has remained robust as strong discounting in autos and low mortgages rates have increased spending through the economic downturn. Manufacturing has turned up, but much of it is driven by the draw down in inventory, rather than a strong pickup in final demand. However, the lack of confidence in corporate leadership and the falling stock market has driven interest rates lower, and is likely to remain the near term focus. Demand for fixed income securities, including mortgages, is likely to remain robust over the near term. Although we believe rates will move higher over the course of the year, the weak equity market is likely to keep interest rates lower over the near term. At current market level, the price upside of the mortgage sector is limited, but attractive yields and high credit quality will keep demand strong. With the steep Treasury yield curve, and a potential for a drop in implied volatility, mortgages should continue to perform well. We will continue to add to mortgages backed by 30-year collateral, which is the best place within the sector to express the above view. 27 HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND (Formerly Fortis U.S. Government Securities Series) -------------------------------------------------------------------------------- PORTFOLIO MANAGER [PHOTO OF PETER PEROTTI] PETER PEROTTI, CFA Senior Vice President Hartford Investment Management Company PERFORMANCE OVERVIEW 6/30/1992 - 6/30/2002 Growth of a $10,000 Investment [LINE GRAPH]
LEHMAN BROTHERS U.S. GOVERNMENT INTERMEDIATE GOVT. SECURITIES IA BOND INDEX --------------- ------------------ $10,000 $10,000 $10,395 $10,403 $11,377 $11,254 $10,645 $11,058 $12,644 $12,653 $12,923 $13,166 $14,097 $14,183 $15,348 $15,384 $15,051 $15,461 $16,828 $17,079 $18,091 $18,518 $18,850 $19,783
AVERAGE ANNUAL RETURNS (Inception 3/24/1987)
1 YEAR 5 YEAR 10 YEAR U.S. Government Securities IA 9.11% 7.23% 6.54% Lehman Brothers Intermediate Govt. Bond 8.60% 7.23% 6.73%
The chart represents a hypothetical investment in the Hartford U.S. Government Securities 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. Class IB shares commenced on May 1, 2002. Class IB share performance prior to that date reflects Class IA share performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB share performance. A $10,000 investment in the Class IB shares on 6/30/1992 would have been valued at $18,388 on 6/30/2002. Q. How did the Fund perform? Hartford U.S. Government Securities HLS Fund returned 4.2% for the 6-months ended June 30, 2002. The Fund overperformed the Lipper General U.S. Government VA-UF Average, which returned 4.0% and underperformed the Lehman Brothers Intermediate Government Bond Index, which returned 4.5% over the same period. Q. Why did the Fund perform this way? The economy appears to be on a path to recovery with the manufacturing sector showing signs of turning up and the consumer remaining resilient. Alan Greenspan and the Federal Open Market Committee continue to voice their belief in a pickup in growth with contained inflation. However, the markets remain focused on equity valuations and corporate scandals. The concerns about corporate credibility have increased questions about the speed and sustainability of an economic recovery. Mortgage-backed securities and agencies continue to perform well in this environment due to the fact they offer high yields and a safe haven from corporate credit concerns. Prepayments remain below the peaks of last fall, aiding the performance of the mortgage sector. The Mortgage market has outpaced comparable duration Treasuries by over one and a quarter percent for the year, with the agency market beating treasuries by half a percent. The Fund's performance benefited from having a significant holding in agency- backed mortgage pass-through securities, which have performed very well throughout the year. The Fund's position in Treasury Inflation Indexed Securities, which offer good long-term value to a high quality fund also did well. Q. What is your outlook for the remainder of 2002? The economy appears to be on much better footing, although the power and sustainability of growth remains in question. Consumer spending has remained robust as strong discounting in autos and low mortgages rates have increased spending through the economic downturn. Manufacturing has turned up, but much of it is driven by the draw down in inventory, rather than a strong pickup in final demand. However, the lack of confidence in corporate leadership and the falling stock market has driven interest rates lower, and is likely to remain the near term focus. Demand for fixed income securities is likely to remain robust over the near term. Although we believe rates will move higher over the course of the year, the weak equity market is likely to keep interest rates lower over the near term. At current market level, the price upside of the mortgage sector is limited, but attractive yields and high credit quality will keep demand strong. With the steep Treasury yield curve, and a potential for a drop in implied volatility, mortgages should continue to perform well. We will continue to add to mortgages backed by 30-year collateral, which is the best place within the sector to express the above view. We will also continue to add Treasuries to the Fund to help mitigate the refinancing risk of the mortgages, and maintain price upside if rates continue to drop in the near term. 28 HARTFORD GLOBAL COMMUNICATIONS HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 88.1% AUSTRIA -- 5.8% *55 Telekom Austria AG (Communications)......................... $ 442 ------ CANADA -- 2.6% *6 AT&T Canada, Inc., Class B. (Communications) 200 ------ FRANCE -- 4.5% *74 Orange S.A. (Communications)................................ 340 ------ ITALY -- 12.4% +219 Olivetti S.p.A. (Communications)............................ 233 +59 Telecom Italia Mobile S.p.A. (Communications).......................................... 240 89 Telecom Italia S.p.A. (Communications)...................... 470 ------ 943 ------ JAPAN -- 3.6% @@0 NTT DoCoMo, Inc. (Communications)........................... 271 ------ NETHERLANDS -- 4.5% 73 Koninklijke KPN N.V. (Communications)....................... 342 ------ SOUTH KOREA -- 2.4% *6 KT Freetel (Communications)................................. 182 ------ SPAIN -- 2.2% *7 Telefonica S.A., ADR (Communications)....................... 170 ------ UNITED KINGDOM -- 12.0% *116 BT Group PLC (Communications)............................... 442 40 Cable & Wireless PLC (Communications)....................... 101 269 Vodafone Group PLC (Communications)......................... 368 ------ 911 ------ UNITED STATES OF AMERICA -- 38.1% +5 ALLTEL Corp. (Communications)............................... 235 23 AT&T Corp. (Communications)................................. 244 *51 AT&T Wireless Services, Inc. (Communications).......................................... 296 12 BellSouth Corp. (Communications)............................ 365 *+28 Citizens Communications Co. (Utilities)..................... 237 *+83 Nextel Partners, Inc. (Communications)...................... 251 +31 Qwest Communications International, Inc. (Communications).......................................... 87 12 SBC Communications, Inc. (Communications) 354 *+41 Sprint PCS Group (Communications)........................... 185 +8 Telefonos de Mexico S.A., ADR (Communications).......................................... 241 10 Verizon Communications, Inc. (Communications).......................................... 381 *32 WorldCom, Inc. (Communications)............................. 3 ------ 2,879 ------ Total common stocks......................................... $6,680 ====== PRINCIPAL MARKET AMOUNT VALUE --------- ------ SHORT-TERM SECURITIES -- 11.6% $ 883 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02....................................... $ 883 ------ Total short-term securities................................. $ 883 ======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $9,215)................. 88.1% $ 6,680 Total short-term securities (cost $883)........... 11.6 883 ------ ------- Total investment in securities (total cost $10,099)............................ 99.7 7,563 Cash, receivables and other assets................ 0.4 27 Securities lending collateral (See Note 2(i))..... 23.4 1,774 Payable for Fund shares redeeemed................. (0.0) (1) Dividends payable................................. (0.1) (4) Securities lending collateral payable to brokers (See Note 2(i))................................. (23.4) (1,774) ------ ------- Net assets........................................ 100.0% $ 7,585 ====== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 19,000 shares outstanding..................... $ 19 Capital surplus............................................. 15,343 Accumulated undistributed net investment income............. 23 Accumulated undistributed net realized gain on investments............................................ (5,264) Unrealized depreciation of investments...................... (2,536) ------- Net assets.................................................. $ 7,585 =======
Class IA Net asset value per share ($5,889 / 14,749 shares outstanding) (600,000 shares authorized)................................... $0.40 ===== Class IB Net asset value per share ($1,696 / 4,251 shares outstanding) (200,000 shares authorized)...... $0.40 =====
DIVERSIFICATION BY INDUSTRY: Communications.............................. 85.0% $6,443 Utilities................................... 3.1 237 ---- ------ Total common stocks..................... 88.1% $6,680 ==== ======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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. 29 HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 97.0% BANKS -- 47.4% 19 Allied Irish Banks PLC...................................... $ 258 54 Australia & New Zealand Banking Group....................... 580 *+20 BNP Paribas S.A. ........................................... 1,117 6 Banco Latinoamericano de Exportaciones S.A., E Shares............................................ 79 +6 Banco Popular Espanol S.A. ................................. 265 +28 Bank of Bermuda Ltd. ....................................... 1,244 +34 Bank of Hawaii Corp. ....................................... 941 23 Citigroup, Inc. ............................................ 885 +13 Credit Agricole S.A. ....................................... 293 *29 Credit Suisse Group......................................... 910 7 Fannie Mae.................................................. 546 7 Freddie Mac................................................. 404 24 KeyCorp..................................................... 666 @@0 Mitsubishi Tokyo Financial Group, Inc. ..................... 297 35 Royal Bank of Scotland Group PLC............................ 984 49 Sumitomo Bank............................................... 239 18 Wachovia Corp. ............................................. 691 ------- 10,399 ------- FINANCIAL SERVICES -- 15.3% *5 BlackRock, Inc. ............................................ 199 7 Goldman Sachs Group, Inc. (The)............................. 477 *8 Investment Technology Group, Inc. .......................... 273 +1 Lehman Brothers Holdings, Inc. ............................. 31 19 Merrill Lynch & Co., Inc. .................................. 786 1 Morgan Stanley Dean Witter & Co. ........................... 26 9 Takefuji Corp. ............................................. 603 +211 UniCredito Italiano S.p.A. ................................. 953 ------- 3,348 ------- INSURANCE -- 34.3% 23 Ace Ltd. ................................................... 739 17 Aegon N.V................................................... 359 +10 Ambac Financial Group, Inc. ................................ 665 14 American International Group, Inc. ......................... 935 +23 Annuity & Life Re (Holdings), Ltd. ......................... 423 +20 Cincinnati Financial Corp. ................................. 949 *+29 Clark/Bardes, Inc. ......................................... 665 99 Lloyds Tsb Group PLC........................................ 987 9 MBIA, Inc. ................................................. 520 8 Marsh & McLennan Cos., Inc. ................................ 802 +15 Reinsurance Group of America, Inc. ......................... 468 ------- 7,512 ------- Total common stocks......................................... $21,259 =======
PRINCIPAL MARKET AMOUNT VALUE --------- ------- SHORT-TERM SECURITIES -- 3.7% REPURCHASE AGREEMENT -- 3.7% $ 815 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02....................................... $ 815 ------- Total short-term securities................................. $ 815 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $21,628)................ 97.0% $21,259 Total short-term securities (cost $815)........... 3.7 815 ------ ------- Total investment in securities (total cost $22,443)............................ 100.7 22,074 Cash, receivables and other assets................ 1.1 235 Securities lending collateral (See Note 2(i))..... 26.3 5,753 Payable for securities purchased.................. (1.8) (388) Dividends payable................................. (0.0) (15) Securities lending collateral payable to brokers (See Note 2(i))................................. (26.3) (5,753) ------ ------- Net assets........................................ 100.0% $21,906 ====== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 24,418 shares outstanding.......................... $ 24 Capital surplus.................................................. 23,460 Accumulated undistributed net investment income.................. 104 Accumulated undistributed net realized loss on investments................................................. (1,313) Unrealized depreciation of investments........................... (369) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@................................... (1) Unrealized appreciation of other assets and liabilities in foreign currencies............................................. 1 ------- Net assets....................................................... $21,906 ======= Class IA Net asset value per share ($16,769 / 18,685 shares outstanding) (600,000 shares authorized)....................... $ 0.90 ======= Class IB Net asset value per share ($5,137 / 5,733 shares outstanding) (200,000 shares authorized)....................... $ 0.90 =======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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.
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ --------------- ------------- -------------- Australian Dollar (Buy) $11 $11 7/3/2002 $-- British Pound (Buy) 39 39 7/3/2002 -- EURO (Buy) 40 41 7/3/2002 (1) Japanese Yen (Buy) 17 17 7/3/2002 -- Swiss Franc (Buy) 17 17 7/3/2002 -- -- $ (1) ==
The accompanying notes are an integral part of this financial statement. 30 HARTFORD GLOBAL HEALTH HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 98.6% CHEMICALS -- 4.0% 101 Aventis S.A., ADR................................. $ 7,106 78 Bayer AG.......................................... 2,473 -------- 9,579 -------- CONSUMER NON-DURABLES -- 4.2% 31 AmerisourceBergen Corp. .......................... 2,326 234 McKesson Corp. ................................... 7,655 -------- 9,981 -------- DRUGS -- 54.3% 362 Abbott Laboratories............................... 13,641 *+224 Abgenix, Inc. .................................... 2,199 41 Amersham PLC, ADR................................. 1,823 +279 AstraZeneca PLC, ADR.............................. 11,455 *18 Biogen, Inc. ..................................... 733 *+73 Connetics Corp. .................................. 948 *+364 Elan Corp. PLC.................................... 1,991 156 Eli Lilly & Co. .................................. 8,781 *39 Forest Laboratories, Inc. ........................ 2,740 @18 Fujisawa Pharmaceutical Co., Ltd. ................ 431 218 Fujisawa Pharmaceutical Co., Ltd. ................ 5,220 *478 Genaera Corp. .................................... 851 *260 Genzyme Corp. .................................... 5,004 *150 Gilead Sciences, Inc. ............................ 4,945 67 GlaxoSmithKline PLC............................... 1,443 *63 Ilex Oncology, Inc. .............................. 883 *259 Immunex Corp. .................................... 5,779 *+166 Medicines Co. (The)............................... 2,044 156 Novartis AG....................................... 6,854 388 Pharmacia Corp. .................................. 14,546 76 Roche Holdings AG................................. 5,767 *111 SangStat Medical Corp. ........................... 2,558 421 Schering-Plough Corp. ............................ 10,346 *+6 Serono S.A., Class B.............................. 4,075 268 Shionogi & Co., Ltd. ............................. 3,419 182 Tanabe Seiyaku Co., Ltd. ......................... 1,594 *101 Vertex Pharmaceuticals, Inc. ..................... 1,639 *+163 ViroPharma, Inc. ................................. 233 *91 Watson Pharmaceuticals, Inc. ..................... 2,302 104 Wyeth............................................. 5,304 -------- 129,548 -------- ELECTRICAL EQUIPMENT -- 2.4% *+181 Molecular Devices Corp. .......................... 3,218 *92 Waters Corp. ..................................... 2,448 -------- 5,666 -------- HEALTH SERVICES -- 4.7% 86 HCA, Inc. ........................................ 4,076 *56 Laboratory Corp. of American Holdings............. 2,566 *+57 Respironics, Inc. ................................ 1,931 *61 Triad Hospitals, Inc. ............................ 2,594 -------- 11,167 -------- INSURANCE -- 3.0% *106 Anthem, Inc. ..................................... 7,133 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 15.7% 74 Bard (C.R.), Inc. ................................ 4,210 *76 Baxter International, Inc. ....................... 3,378 119 Beckman Coulter, Inc. ............................ 5,943 160 Becton, Dickinson & Co............................ 5,519 +174 Chugai Pharmaceutical Co., Ltd. .................. 2,082 223 Eisai Co., Ltd. .................................. 5,731 771 Gambro AB, B Shares............................... 5,075 *41 St. Jude Medical, Inc. ........................... 2,991 *150 Viasys Healthcare, Inc. .......................... 2,623 -------- 37,552 -------- RESEARCH & TESTING FACILITIES -- 9.1% *+384 Amylin Pharmaceuticals, Inc. ..................... 4,195 *236 Applera Corp. -- Celera Genomics Group............ 2,830 *+144 CV Therapeutics, Inc. ............................ 2,674 *+76 Cephalon, Inc. ................................... 3,422 *212 Ciphergen Biosystems, Inc. ....................... 778 *+183 Exelixis, Inc. ................................... 1,376 58 Monsanto Co. ..................................... 1,038 *+352 Orchid Biosciences, Inc. ......................... 465 *+113 Regeneron Pharmeceuticals, Inc. .................. 1,635 *195 Ribapharm, Inc. .................................. 1,776 *211 Rigel Pharmaceutical, Inc. ....................... 769 *55 Telik, Inc. ...................................... 691 -------- 21,649 -------- RETAIL -- 1.0% 78 CVS Corp. ........................................ 2,387 --------
MARKET SHARES VALUE --------- -------- SOFTWARE & SERVICES -- 0.2% *87 Eclipsys Corp..................................... $ 571 -------- Total common stocks............................... $235,233 ========
PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 0.7% REPURCHASE AGREEMENT -- 0.7% $1,576 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 1,576 -------- Total short-term securities....................... $ 1,576 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $261,846)............... 98.6% $235,233 Total short-term securities (cost $1,576)......... 0.7 1,576 ------ -------- Total investment in securities (total cost $263,422)........................... 99.3 236,809 Cash, receivables and other assets................ 0.9 2,329 Securities lending collateral (See Note 2(i))..... 10.5 25,002 Payable for securities purchased.................. (0.2) (565) Payable for Fund shares redeemed.................. (0.0) (4) Securities lending collateral payable to brokers (See Note 2(i))................................. (10.5) (25,002) Other liabilities................................. (0.0) (1) ------ -------- Net Assets........................................ 100.0% $238,568 ====== ========
The accompanying notes are an integral part of this financial statement. 31 HARTFORD GLOBAL HEALTH HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 194,679 shares outstanding................................... $ 195 Capital surplus................................. 259,761 Accumulated undistributed net investment income........................................ 81 Accumulated undistributed net realized gain on investments................................... 5,139 Unrealized depreciation of investments.......... (26,613) Unrealized appreciation of other assets and liabilities in foreign currencies............. 5 -------- Net Assets...................................... $238,568 ======== Class IA Net Asset value per share ($195,348 / 159,307 shares outstanding) (600,000 shares authorized)................................. $ 1.23 ======== Class IB Net asset value per share ($43,220 / 35,372 shares outstanding) (200,000 shares authorized)................................. $ 1.22 ========
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $431 or 0.2% of net assets.
The accompanying notes are an integral part of this financial statement. 32 HARTFORD GLOBAL TECHNOLOGY HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 95.5% BUSINESS SERVICES -- 11.0% *151 Accenture Ltd. ................................... $ 2,873 *225 Cendant Corp. .................................... 3,579 *16 Hotels.com........................................ 684 *+52 Resources Connection, Inc. ....................... 1,390 ------- 8,526 ------- COMMUNICATIONS -- 3.8% 116 Motorola, Inc. ................................... 1,671 90 Nokia Corp., ADR.................................. 1,297 ------- 2,968 ------- COMPUTERS & OFFICE EQUIPMENT -- 37.1% *111 Brocade Communications Systems, Inc. ............. 1,935 *541 Cisco Systems, Inc. .............................. 7,546 *109 Dell Computer Corp. .............................. 2,841 *156 EMC Corp. ........................................ 1,180 146 Hewlett-Packard Co. .............................. 2,233 93 International Business Machines Corp. ............ 6,706 *65 Lexmark International, Inc. ...................... 3,525 *632 Maxtor Corp. ..................................... 2,856 ------- 28,822 ------- ELECTRONICS -- 7.4% *51 Fairchild Semiconductor International Corp., Class A......................................... 1,244 118 Intel Corp. ...................................... 2,163 *140 OmniVision Technologies, Inc. .................... 2,002 *17 Xilinx, Inc. ..................................... 384 ------- 5,793 ------- MEDIA & ENTERTAINMENT -- 1.4% *46 USA Networks, Inc. ............................... 1,076 ------- SOFTWARE & SERVICES -- 32.8% *113 AOL Time Warner, Inc. ............................ 1,667 *105 BISYS Group, Inc. (The)........................... 3,480 145 First Data Corp. ................................. 5,390 *178 Microsoft Corp. .................................. 9,715 *419 Oracle Corp. ..................................... 3,969 *131 Sun Microsystems, Inc. ........................... 658 *+177 Vignette Corp. ................................... 348 *179 i2 Technologies, Inc. ............................ 264 ------- 25,491 ------- TRANSPORTATION -- 6.0% *16 Expedia, Inc. .................................... 966 *106 Sabre Holdings Corp. ............................. 3,777 ------- 4,743 ------- Total common stocks............................... $77,419 =======
PRINCIPAL MARKET AMOUNT VALUE --------- ------- SHORT-TERM SECURITIES -- 3.0% REPURCHASE AGREEMENT -- 3.0% $2,330 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 2,330 ------- Total short-term securities....................... $ 2,330 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $92,455)................ 99.5% $77,419 Total short-term securities (cost $2,330)......... 3.0 2,330 ----- ------- Total investment in securities (total cost $94,785)........................................ 102.5 79,749 Cash, receivables and other assets................ 4.5 3,516 Securities lending collateral (See Note 2(i))..... 1.4 1,084 Payable for securities purchased.................. (6.7) (5,227) Payable for Fund shares redeemed.................. (0.3) (247) Securities lending collateral payable to brokers (See Note 2(i))................................. (1.4) (1,084) ----- ------- Net assets........................................ 100.0% $77,791 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 229,179 shares outstanding............. $ 229 Capital surplus............................................. 178,504 Accumulated undistributed net investment loss............... (365) Accumulated undistributed net realized loss on investments............................................... (86,467) Unrealized depreciation of investments...................... (14,110) --------- Net assets.................................................. $ 77,791 =========
Class IA Net asset value per share ($63,885 / 188,094 shares outstanding) (600,000 shares authorized)................................... $0.34 ===== Class IB Net asset value per share ($13,906 / 41,085 shares outstanding) (200,000 shares authorized)................................... $0.34 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 33 HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 91.6% AUSTRALIA -- 4.1% 136 Australian Pipeline Trust (Metals, Minerals & Mining)....................................... $ 179 252 Computershare Ltd. (Computers & Office Equipment)............................... 311 +230 David Jones Ltd. (Retail)......................... 137 39 Southern Cross Broadcasting Ltd. (Media & Entertainment)................................ 198 *+116 Village Roadshow Ltd. (Media & Entertainment)................................ 78 ------- 903 ------- BRAZIL -- 0.4% *14 Companhia de Concessoes Rodoviarias (Transportation)................................ 82 ------- CHINA -- 1.3% 1,206 Beijing Capital International Airport Co., Ltd. (Transportation)................................ 289 ------- DENMARK -- 2.8% 14 Novozymes AS, B Shares (Health Services).......... 326 *3 Radiometer AS (Medical Instruments & Supplies)..................................... 109 *5 Topdanmark AS (Insurance)......................... 170 ------- 605 ------- FINLAND -- 2.3% +28 Pohjola Group PLC (Insurance)..................... 501 ------- FRANCE -- 10.4% 3 CEGID (Business Services)......................... 171 +4 Camaieu (Apparel & Textile)....................... 150 5 Cegedim S.A. (Business Services).................. 318 *12 Devoteam S.A. (Business Services)................. 124 2 Eiffage S.A. (Construction)....................... 219 *94 Gemplus International S.A. (Software & Services)..................................... 135 *30 Generale De Sante (Medical Instruments & Supplies)..................................... 469 *+4 Remy Cointreau S.A. (Food, Beverage & Tobacco)...................................... 112 10 Societe BIC S.A. (Computers & Office Equipment)............................... 416 *1 Societe Virbac S.A. (Medical Instruments & Supplies)..................................... 141 ------- 2,255 -------
MARKET SHARES VALUE --------- ------- GERMANY -- 4.3% 7 AWD Holding AG (Financial Services)............... $ 164 16 GFK AG (Business Services)........................ 291 22 Jungheinrich AG (Machinery)....................... 226 *71 MWG-Biotech AG (Medical Instruments & Supplies)..................................... 72 8 Vossloh AG (Electrical Equipment)................. 175 ------- 928 ------- HONG KONG -- 1.9% 224 Cosco Pacific Ltd. (Consumer Services)............ $ 178 776 Tingyi Holding Co. (Food, Beverage & Tobacco)...................................... 236 ------- 414 ------- IRELAND -- 0.6% *393 Parthus Technologies PLC (Electrical Equipment).......................... 126 ------- ITALY -- 4.1% +93 Banca Poplare Di Milano (Banks)................... 377 14 Ericsson S.p.A. (Communications).................. 367 37 Esaote S.p.A. (Medical Instruments & Supplies)..................................... 154 ------- 898 ------- JAPAN -- 28.7% 18 Asia Securities Printing Co., Ltd. (Business Services)............................. 98 57 Bank of Fukuoka Ltd. (Banks)...................... 225 12 Coca-Cola West Japan Co., Ltd. (Food, Beverage & Tobacco)............................. 219 6 FANCL Corp. (Consumer Durables)................... 213 9 Fujimi, Inc. (Chemicals).......................... 178 25 Hokuetsu Paper Mills Ltd. (Forest & Paper Products)................................. 158 13 Hutech Norin Co., Ltd. (Transportation)........... 163 +20 Ines Corp. (Software & Services).................. 150 +10 KYORIN Pharmaceutical Co., Ltd (Drugs)............ 241 25 Kikkoman Corp. (Food, Beverage & Tobacco)...................................... 157 +10 Kirin Beverage Corp. (Food, Beverage & Tobacco)...................................... 165 +22 Kissei Pharmaceutical Co., Ltd. (Drugs)........... 276 98 Meiji Seika Kaisha Ltd. (Food, Beverage & Tobacco)...................................... 351 108 Mitsui-Soko Co., Ltd. (Transportation)............ 218 23 N.I.C. Corp. (Business Services).................. 319 *8 Nagaileben Co., Ltd. (Banks)...................... 208 72 Nippon Shinyaku Co., Ltd. (Drugs)................. 361 23 SRL, Inc. (Health Services)....................... 229 +16 Santen Pharmaceutical Co., Ltd. (Drugs)........... 173 62 Sekisui Chemical Co., Ltd. (Consumer Services)............................. 212 127 Shinko Securities Co., Ltd. (Financial Services)............................ 242 *@@0 Sky Perfect (Communications)...................... 112 +23 Sumitomo Bakelite Co., Ltd. (Chemicals)........... 167 7 Suzuken Co., Ltd. (Drugs)......................... 164 7 TSURUHA Co., Ltd. (Consumer Durables)............. 139 53 Takuma Co., Ltd. (Machinery)...................... 409 29 Towa Pharmaceutical Co., Ltd. (Drugs)............. 502 9 Tsutsumi Jewelry Co., Inc. (Retail)............... 198 ------- 6,247 -------
The accompanying notes are an integral part of this financial statement. 34 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- (CONTINUED) NETHERLANDS -- 6.4% +12 Arcadis N.V. (Research & Testing Facilities)...... $ 120 161 Getronics N.V. (Software & Services).............. 306 4 IHC Caland N.V. (Energy & Services)............... 246 *37 SNT Group N.V. (Business Services)................ 512 8 Volker Wessels Stevin N.V. (Construction)......... 220 ------- 1,404 ------- NEW ZEALAND -- 0.7% 67 Tower Ltd. (Financial Services)................... 149 ------- PORTUGAL -- 2.8% 92 BPI-SGPS S.A. (Banks)............................. 224 *57 Vodafone Telecel-Comunicacoes Pessoais S.A. (Communications).................. 396 ------- 620 ------- SPAIN -- 2.2% +23 Sociedad General de Aguas de Barcelona S.A. (Food, Beverage & Tobacco)................. 268 +50 Telefonica Publicidad e Informacion S.A. (Communications)................................ 203 ------- 471 ------- SWEDEN -- 3.2% @17 Alfa Laval AB (Business Services)................. 167 *21 Alfa Laval AB (Business Services)................. 212 @19 Gambro AB (Consumer Services)..................... 109 *35 Gambro AB (Consumer Services)..................... 202 ------- 690 ------- SWITZERLAND -- 1.1% 10 Vontobel Holding AG (Banks)....................... 242 ------- UNITED KINGDOM -- 14.3% 57 Abbot Group PLC (Energy & Services)............... 124 76 Charter PLC (Metals, Minerals & Mining)........... 197 10 Cobham PLC (Aerospace & Defense).................. 161 57 Croda International PLC (Chemicals)............... 237 *450 Express Dairies PLC (Food, Beverage & Tobacco)...................................... 194 7 French Connection Group (Retail).................. 103 87 Logica (Energy & Services)........................ 266 124 Low & Bonar PLC (Consumer Non- Durables)....................................... 138 *20 Oxford Glycosciences PLC (Drugs).................. 80 286 RM PLC (Software & Services)...................... 321 112 Securicor PLC (Consumer Services)................. 202 *129 Shanks Group PLC (Energy & Services).............. 334 *111 Somerfield PLC (Food, Beverage & Tobacco)...................................... 201 42 UMECO PLC (Aerospace & Defense)................... 179 23 Ultra Electronic Hldgs PLC (Electrical Equipment).......................... 153 @68 Wood Group (John) PLC (Metals, Minerals & Mining)....................................... 218 ------- 3,108 ------- Total common stocks............................... $19,932 ======= PREFERRED STOCKS -- 0.8% GERMANY -- 0.8% 3 Hornbach Holding AG (Retail)...................... $ 166 ------- Total preferred stocks............................ $ 166 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 6.1% $1,320 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 1,320 ------- Total short-term securities....................... $ 1,320 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $19,703)........ 91.6% $19,932 Total preferred stocks (cost $156)........ 0.8 166 Total short-term securities (cost $1,320)................................. 6.1 1,320 ----- ------- Total investment in securities (total cost $21,179)........................... 98.5 21,418 Cash, receivables and other assets........ 2.2 481 Securities lending collateral (See Note 2(i))................................... 10.1 2,193 Payable for securities purchased.......... (0.7) (119) Payable for Fund shares redeeemed......... (0.0) (1) Dividends payable......................... (0.0) (8) Securities lending collateral payable to brokers (See Note 2(i))................. (10.1) (2,193) ----- ------- Net assets................................ 100.0% $21,771 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares. authorized; 21,397 shares outstanding $ 21 Capital surplus.................................. 21,312 Accumulated undistributed net investment income......................................... 74 Accumulated undistributed net realized gain on investments................................. 124 Unrealized appreciation of investments........... 239 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@.......... -- Unrealized appreciation of other assets and liabilities in foreign currencies.............. 1 ------- Net assets....................................... $21,771 =======
Class IA Net asset value per share ($17,846 / 17,535 shares outstanding) (600,000 shares authorized).................................... $1.02 ===== Class IB Net asset value per share ($3,925 / 3,862 shares outstanding) (200,000 shares authorized)....... $1.02 =====
The accompanying notes are an integral part of this financial statement. 35 HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET VALUE ------- DIVERSIFICATION BY INDUSTRY: Aerospace & Defense........................ 1.6% $ 340 Apparel & Textile.......................... 0.7 150 Banks...................................... 5.9 1,276 Business Services.......................... 10.2 2,212 Chemicals.................................. 2.7 582 Communications............................. 5.0 1,078 Computers & Office Equipment............... 1.4 311 Construction............................... 2.0 439 Consumer Durables.......................... 3.5 768 Consumer Non-Durables...................... 0.6 138 Consumer Services.......................... 4.1 903 Drugs...................................... 8.3 1,797 Electrical Equipment....................... 2.1 454 Energy & Services.......................... 4.5 970 Financial Services......................... 2.5 555 Food, Beverage & Tobacco................... 8.8 1,903 Forest & Paper Products.................... 0.7 158 Health Services............................ 2.5 555 Insurance.................................. 3.1 671 Machinery.................................. 2.9 635 Media & Entertainment...................... 1.3 276 Medical Instruments & Supplies............. 4.3 945 Metals, Minerals & Mining.................. 2.7 594 Research & Testing Facilities.............. 0.6 120 Retail..................................... 2.0 438 Software & Services........................ 4.2 912 Transportation............................. 3.4 752 ---- ------- Total common stocks.................... 91.6% $19,932 ==== =======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $494 or 2.3% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero.
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- EURO (Buy) $24 $24 7/1/2002 $-- EURO (Buy) 22 22 7/3/2002 -- Japanese Yen (Sell) 16 16 7/1/2002 -- Japanese Yen (Sell) 32 32 7/2/2002 -- Japanese Yen (Sell) 7 7 7/3/2002 -- --- $-- ===
The accompanying notes are an integral part of this financial statement. 36 HARTFORD SMALLCAP GROWTH HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 98.3% APPAREL & TEXTILE -- 1.2% *44 Columbia Sportswear Co. .......................... $ 1,408 *45 Genesco, Inc. .................................... 1,105 -------- 2,513 -------- BANKS -- 5.2% 48 Citizens Banking Corp. ........................... 1,382 *@@0 Columbia Banking Systems, Inc. ................... 0 23 Downey Financial Corp. ........................... 1,064 35 FNB Corp. ........................................ 975 *4 Financial Federal Corp. .......................... 119 8 Hancock Holding Co. .............................. 532 68 Metris Cos., Inc. ................................ 563 *188 NetBank, Inc. .................................... 2,187 37 People's Bank..................................... 969 39 Staten Island Bancorp, Inc. ...................... 739 86 Sky Financial Group, Inc. ........................ 1,821 24 Whitney Holding Corp. ............................ 738 -------- 11,089 -------- BUSINESS SERVICES -- 3.1% *83 PRG-Schultz International, Inc. .................. 1,018 *55 Per-Se Technologies, Inc. ........................ 504 *77 Right Management Consultants...................... 2,015 *317 UnitedGlobalCom, Inc., Class A.................... 871 23 Viad Corp. ....................................... 606 *46 Watson Wyatt & Co. Holdings....................... 1,119 *58 eFunds Corp. ..................................... 554 -------- 6,687 -------- CHEMICALS -- 1.1% 17 Cambrex Corp. .................................... 694 126 Crompton Corp. ................................... 1,608 -------- 2,302 -------- COMMUNICATIONS -- 3.0% *35 Arris Group, Inc. ................................ 153 *279 Harmonic, Inc. ................................... 1,020 *47 IDT Corp. ........................................ 763 *58 IDT Corp.......................................... 980 *86 Powerwave Technologies, Inc. ..................... 783 *62 REMEC, Inc. ...................................... 349 *113 Tekelec........................................... 911 *209 TeleCommunication Systems, Inc. .................. 418 *178 US Unwired Inc. .................................. 500 *421 Visual Networks, Inc. ............................ 598 -------- 6,475 -------- COMPUTERS & OFFICE EQUIPMENT -- 2.7% *36 Black Box Corp. .................................. 1,462 *134 Cirrus Logic, Inc. ............................... 1,004 *300 Maxtor Corp. ..................................... 1,354 *56 SanDisk Corp. .................................... 699 *346 Western Digital Corp. ............................ 1,124 -------- 5,643 -------- CONSTRUCTION -- 1.1% 11 Granite Construction, Inc. ....................... 288 *36 Jacobs Engineering Group, Inc. ................... 1,245 *24 MAXIMUS, Inc. .................................... 773 -------- 2,306 --------
MARKET SHARES VALUE --------- -------- CONSUMER DURABLES -- 2.1% *31 Cabot Microelectronics Corp. ..................... $ 1,316 *68 Furniture Brands International, Inc. ............. 2,057 *290 Sycamore Networks, Inc. .......................... 1,119 -------- 4,492 -------- CONSUMER NON-DURABLES -- 1.3% 65 Callaway Golf Co. ................................ 1,031 *44 Hain Celestial Group, Inc. ....................... 808 *32 Nautilus Group, Inc. ............................. 988 -------- 2,827 -------- CONSUMER SERVICES -- 0.6% *63 Prepaid Legal Services, Inc. ..................... 1,250 -------- DRUGS -- 6.0% *73 Abgenix, Inc. .................................... 713 *92 Cubist Pharmaceuticals, Inc. ..................... 869 *177 Genzyme Molecular Oncology........................ 447 *109 Guilford Pharmaceuticals, Inc. ................... 821 *47 Ilex Oncology, Inc. .............................. 655 *64 NPS Pharmaceuticals, Inc. ........................ 973 *19 Neurocrine Biosciences, Inc. ..................... 556 *46 OSI Pharmaceuticals, Inc. ........................ 1,098 *110 Perrigo Co. ...................................... 1,424 *232 Praecis Pharmacueticals, Inc. .................... 808 *87 SangStat Medical Corp. ........................... 1,988 *383 Triangle Pharmaceuticals, Inc. ................... 1,037 *84 Vertex Pharmaceuticals, Inc. ..................... 1,369 *43 ViroPharma, Inc. ................................. 62 -------- 12,820 -------- EDUCATION -- 1.0% *97 ITT Educational Services, Inc. ................... 2,123 -------- ELECTRICAL EQUIPMENT -- 5.0% *282 Aclara Biosciences, Inc. ......................... 485 *69 Credence Systems Corp. ........................... 1,217 *40 FLIR Systems, Inc. ............................... 1,687 *56 Fisher Scientific International................... 1,571 *144 Molecular Devices Corp. .......................... 2,554 21 Roper Industries, Inc. ........................... 794 *55 Therma-Wave, Inc. ................................ 625 *76 Veeco Instruments, Inc. .......................... 1,766 -------- 10,699 --------
The accompanying notes are an integral part of this financial statement. 37 HARTFORD SMALLCAP GROWTH HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) ELECTRONICS -- 6.1% *29 ATMI, Inc. ....................................... $ 642 *49 Actel Corp. ...................................... 1,019 *92 Aeroflex, Inc. ................................... 638 *28 Benchmark Electronics, Inc. ...................... 815 *44 Cymer, Inc. ...................................... 1,524 *37 DuPont Photomasks, Inc. .......................... 1,215 38 Helix Technology Corp. ........................... 775 *452 MRV Communications, Inc. ......................... 692 *164 Manufacturers' Services Ltd. ..................... 793 *105 Mattson Technology, Inc. ......................... 484 *21 Moog, Inc. ....................................... 888 *24 Rayovac Corp. .................................... 435 *244 SpeedFam-IPEC, Inc. .............................. 1,276 *266 Stratos Lightwave, Inc. .......................... 426 *38 Varian Semiconductor Equipment Associates, Inc. ............................... 1,279 -------- 12,901 -------- ENERGY & SERVICES -- 4.4% 95 Cabot Oil & Gas Corp. ............................ 2,159 *156 Chesapeake Energy Corp. .......................... 1,123 75 Patina Oil & Gas Corp. ........................... 2,054 *96 Unit Corp. ....................................... 1,666 *85 Veritas DGC, Inc. ................................ 1,071 60 XTO Energy, Inc. ................................. 1,226 -------- 9,299 -------- FINANCIAL SERVICES -- 4.2% 38 Arden Realty, Inc. ............................... 1,067 35 Camden Property Trust............................. 1,292 20 Chelsea Property Group, Inc. ..................... 669 28 Cousins Properties, Inc. ......................... 696 *74 Investment Technology Group, Inc. ................ 2,412 39 Jefferies Group, Inc. ............................ 1,629 27 PS Business Parks, Inc. .......................... 954 -------- 8,719 -------- FOOD, BEVERAGE & TOBACCO -- 1.6% *40 Constellation Brands, Inc. ....................... 1,293 93 Sensient Technologies Corp. ...................... 2,124 -------- 3,417 -------- FOREST & PAPER PRODUCTS -- 0.2% 21 Schweitzer-Mauduit international, Inc. ........... 512 -------- HEALTH SERVICES -- 4.0% *66 Coventry Health Care, Inc. ....................... 1,873 *79 Edwards Lifesciences Corp. ....................... 1,837 *92 MedCath Corp. .................................... 1,566 *100 Varian, Inc. ..................................... 3,308 -------- 8,584 --------
MARKET SHARES VALUE --------- -------- INSURANCE -- 2.7% *58 Amerigroup Corp. ................................. $ 1,577 *74 Clark/Bardes, Inc. ............................... 1,690 84 Reinsurance Group of America, Inc. ............... 2,573 -------- 5,840 -------- MACHINERY -- 0.7% *63 Axcelis Technologies, Inc. ....................... 710 *43 Ultratech Stepper, Inc. .......................... 693 -------- 1,403 -------- MEDIA & ENTERTAINMENT -- 3.6% *162 Argosy Gaming Co. ................................ 4,598 *55 Beasley Broadcast Group, Inc. ADR................. 804 *49 Hollywood Entertainment Corp. .................... 1,022 *306 Hollywood Media Corp. ............................ 609 20 Lee Enterprises, Inc. ............................ 683 -------- 7,716 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 3.9% *44 Ocular Sciences, Inc. ............................ 1,174 91 Owens & Minor, Inc. .............................. 1,788 *70 PolyMedica Corp. ................................. 1,790 *74 Respironics, Inc. ................................ 2,527 *58 Viasys Healthcare, Inc. .......................... 1,008 -------- 8,287 -------- METALS, MINERALS & MINING -- 2.7% 114 General Cable Corp. .............................. 717 *135 Global Power Equipment Group, Inc. ............... 1,337 *49 Shaw Group, Inc. (The)............................ 1,489 *133 Stillwater Mining Co. ............................ 2,159 -------- 5,702 -------- REAL ESTATE -- 0.4% 41 Reckson Associates Realty Corp. (REIT)............ 1,008 -------- RESEARCH & TESTING FACILITIES -- 5.1% *127 Amylin Pharmaceuticals, Inc. ..................... 1,392 *66 CV Therapeutics, Inc. ............................ 1,221 *21 Cephalon, Inc. ................................... 954 *267 Ciphergen Biosystems, Inc. ....................... 979 *41 Gene Logic, Inc. ................................. 568 *214 Genzyme Corp.-Genzyme Biosurgery Division............................. 971 *205 Incyte Genomics, Inc. ............................ 1,487 *45 Neurogen Corp. ................................... 523 *82 Pharmacopeia, Inc. ............................... 702 *80 Regeneron Pharmeceuticals, Inc. .................. 1,162 *262 Sequenom, Inc. ................................... 925 -------- 10,884 --------
The accompanying notes are an integral part of this financial statement. 38 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) RETAIL -- 8.3% *98 AFC Enterprises, Inc. ............................ $ 3,053 *23 CEC Entertaining, Inc. ........................... 962 *46 Chico's FAS, Inc. ................................ 1,669 *66 Hot Topic, Inc. .................................. 1,755 *62 J Jill Group, Inc. (The).......................... 2,338 *26 O'Reilly Automotive, Inc. ........................ 706 *24 Pacific Sunwear of California, Inc. .............. 541 *49 RARE Hospitality International, Inc. ............. 1,327 *62 Too, Inc. ........................................ 1,922 *122 Tweeter Home Entertainment Group, Inc. ........... 1,990 *55 Ultimate Electronics, Inc. ....................... 1,433 -------- 17,696 -------- RUBBER & PLASTICS PRODUCTS -- 0.8% *28 Reebok International Ltd. ........................ 838 *103 Vans, Inc. ....................................... 840 -------- 1,678 -------- SOFTWARE & SERVICES -- 10.7% *28 Activision, Inc. ................................. 809 *163 Actuate Corp. .................................... 731 *99 Agile Software Corp. ............................. 718 *39 CSG Systems International, Inc. .................. 750 *38 Caminus Corp. .................................... 222 *33 CheckFree Corp. .................................. 508 *11 Cognizant Technology Solutions Corp. ............. 575 *87 Documentum, Inc. ................................. 1,042 *93 Electronics for Imaging, Inc. .................... 1,484 *78 Filenet Corp. .................................... 1,130 *191 Gartner Group, Inc., Class A...................... 1,932 *204 IDX Systems Corp. ................................ 2,657 *27 Intrado, Inc. .................................... 527 *36 Kronos, Inc. ..................................... 1,098 *84 Mentor Graphics Corp. ............................ 1,199 *200 Quovadx, Inc. .................................... 1,258 *163 RSA Security, Inc. ............................... 784 *87 Radiant Systems, Inc. ............................ 1,135 *66 Roxio, Inc. ...................................... 472 *554 SONICblue, Inc. .................................. 571 *195 Trizetto Group.................................... 1,670 *97 Verity, Inc. ..................................... 1,079 *223 Vignette Corp. ................................... 440 -------- 22,791 -------- TRANSPORTATION -- 4.7% *128 AirTran Holdings, Inc. ........................... 683 *135 Atlantic Coast Airlines Holdings, Inc. ........... 2,923 *11 ExpressJet Holdings, Inc. ........................ 144 *52 Kansas City Southern.............................. 884 *18 Landstar System, Inc. ............................ 1,881 23 Polaris Industries, Inc. ......................... 1,495 25 USFreightways Corp. .............................. 939 40 Werner Enterprises, Inc. ......................... 862 -------- 9,811 -------- UTILITIES -- 0.8% *49 Waste Connections, Inc. .......................... $ 1,543 -------- Total common stocks............................... $209,017 ========
PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 5.4% REPURCHASE AGREEMENT -- 5.2% $ 10,982 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02.................................... $ 10,982 --------- U.S. TREASURY BILLS -- 0.2% $ 470 1.71% due 07/11/02................................ 470 --------- Total short-term securities....................... $ 11,452 =========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $240,182)..... 98.3% $209,017 Total short-term securities (cost $11,452).............................. 5.4 11,452 ------ -------- Total investment in securities (total cost $251,634)........................ 103.7 220,469 Cash, receivables and other assets...... 2.2 4,934 Payable for securities purchased........ (2.0) (4,352) Payable for Fund shares redeeemed....... (3.9) (8,320) Other liabilities....................... 0.0 (86) ------ -------- Net assets.............................. 100.0% $212,645 ====== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.010 per share; 200,000 shares authorized; 15,86 shares outstanding................................. $ 159 Capital surplus............................... 325,726 Accumulated undistributed net investment loss........................................ (451) Accumulated undistributed net realized loss on investments.............................. (81,700) Unrealized depreciation of investments........ (31,165) Unrealized appreciation of futures contracts ++................................ 76 ---------- Net assets.................................... $ 212,645 ==========
Class IA Net asset value per share ($212,321 / 15,836 shares outstanding) (187,500 shares authorized).................................. $13.41 ====== Class IB Net asset value per share ($324 / 24 shares outstanding) (12,500 shares authorized)...... $13.46 ======
* Non-income producing during the period. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero. ++ The Fund had 7 Russell 2000 September 2002 Futures contracts open as of June 30, 2002. These contracts had a value of $1,622 as of June 30, 2002 and were collateralized by various U.S. Treasury Bills with a market value of $470.
The accompanying notes are an integral part of this financial statement. 39 HARTFORD GROWTH OPPORTUNITIES HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 97.6% BANKS -- 4.5% 164 American Express Co. ....................................... $ 5,967 149 Countrywide Credit Industries, Inc. ........................ 7,194 179 Fannie Mae.................................................. 13,172 -------- 26,333 -------- BUSINESS SERVICES -- 6.5% *197 AMN Healthcare Services, Inc. .............................. 6,897 *1,187 Cendant Corp. .............................................. 18,843 176 Manpower, Inc. ............................................. 6,475 *595 TeleTech Holdings, Inc. .................................... 5,677 -------- 37,892 -------- CHEMICALS -- 1.7% 253 Cambrex Corp. .............................................. 10,161 -------- COMMUNICATIONS -- 2.3% 477 Nokia Corp., ADR............................................ 6,908 *312 UTStarcom, Inc. ............................................ 6,295 -------- 13,203 -------- COMPUTERS & OFFICE EQUIPMENT -- 4.9% *372 Apple Computer, Inc. ....................................... 6,592 *303 Brocade Communications Systems, Inc. ....................... 5,291 *67 CDW Computer Centers, Inc. ................................. 3,150 *158 Emulex Corp. ............................................... 3,566 *470 Jabil Circuit, Inc. ........................................ 9,920 -------- 28,519 -------- CONSUMER NON-DURABLES -- 3.4% 157 AmerisourceBergen Corp. .................................... 11,909 246 McKesson Corp. ............................................. 8,057 -------- 19,966 -------- DRUGS -- 11.0% 197 Abbott Laboratories......................................... 7,432 161 AstraZeneca PLC, ADR........................................ 6,597 *89 Cubist Pharmaceuticals, Inc. ............................... 842 *200 Genentech, Inc. ............................................ 6,700 *253 Genzyme Corp. .............................................. 4,868 *348 Gilead Sciences, Inc. ...................................... 11,436 *260 Millennium Pharmaceuticals, Inc. ........................... 3,154 *91 Neurocrine Biosciences, Inc. ............................... 2,610 *69 OSI Pharmaceuticals, Inc. .................................. 1,645 164 Pharmacia Corp. ............................................ 6,138 277 Schering-Plough Corp. ...................................... 6,822 *244 Watson Pharmaceuticals, Inc. ............................... 6,166 -------- 64,410 -------- ELECTRICAL EQUIPMENT -- 2.3% *101 Teradyne, Inc. ............................................. 2,374 *356 Thermo Electron Corp. ...................................... 5,874 *151 Varian, Inc. ............................................... 4,982 -------- 13,230 --------
MARKET SHARES VALUE --------- -------- ELECTRONICS -- 10.8% *+489 Altera Corp. ............................................... $ 6,644 *230 Celestica, Inc. ............................................ 5,230 *444 Fairchild Semiconductor International Corp., Class A............................................ 10,794 *458 Flextronics International Ltd. ............................. 3,262 89 Harman International Industries, Inc. ...................... 4,364 *210 International Rectifier Corp. .............................. 6,133 *205 National Semiconductor Corp. ............................... 5,977 *100 QLogic Corp. ............................................... 3,821 *870 Sanmina-SCI Corp. .......................................... 5,490 *487 Taiwan Semiconductor Manufacturing Co., Ltd., ADR................................................. 6,329 *+681 United Microelectronics Corp., ADR.......................... 5,006 -------- 63,050 -------- FINANCIAL SERVICES -- 3.5% 169 Federated Investors, Inc., Class B.......................... 5,856 100 Goldman Sachs Group, Inc. (The)............................. 7,342 184 Merrill Lynch & Co., Inc. .................................. 7,432 -------- 20,630 -------- FOOD, BEVERAGE & TOBACCO -- 1.2% *224 Constellation Brands, Inc. ................................. 7,174 -------- HEALTH SERVICES -- 2.5% *+203 Cross Country, Inc. ........................................ 7,655 *36 DaVita, Inc. ............................................... 847 *264 Edwards Lifesciences Corp. ................................. 6,132 -------- 14,634 -------- INSURANCE -- 3.5% 114 Ambac Financial Group, Inc. ................................ 7,654 *83 Anthem, Inc. ............................................... 5,614 *220 Prudential Financial, Inc. ................................. 7,353 -------- 20,621 -------- MACHINERY -- 2.9% *243 Lam Research Corp. ......................................... 4,376 137 Pentair, Inc. .............................................. 6,587 *262 Terex Corp. ................................................ 5,895 -------- 16,858 -------- MEDIA & ENTERTAINMENT -- 2.6% *324 Cablevision Systems Corp. -- Rainbow Media Group, Class A...................................... 2,831 *205 Clear Channel Communications, Inc. ......................... 6,558 *305 Walt Disney Co. (The)....................................... 5,768 -------- 15,157 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 4.9% 272 Beckman Coulter, Inc. ...................................... 13,568 170 DENTSPLY International, Inc. ............................... 6,271 *39 St. Jude Medical, Inc. ..................................... 2,873 *332 Viasys Healthcare, Inc. .................................... 5,800 -------- 28,512 --------
The accompanying notes are an integral part of this financial statement. 40 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) RESEARCH & TESTING FACILITIES -- 2.0% *457 Applera Corp. -- Celera Genomics Group...................... $ 5,482 *138 Cephalon, Inc. ............................................. 6,229 -------- 11,711 -------- RETAIL -- 10.4% *221 Abercrombie & Fitch Co. .................................... 5,331 *352 AnnTaylor Stores Corp. ..................................... 8,935 *191 Electronics Boutique Holdings Corp. ........................ 5,585 *+420 Foot Locker, Inc. .......................................... 6,062 *234 GameStop Corp. ............................................. 4,910 *1,050 Staples, Inc. .............................................. 20,691 *146 Starbucks Corp. ............................................ 3,616 *232 Ultimate Electronics, Inc. ................................. 6,016 -------- 61,146 -------- SOFTWARE & SERVICES -- 6.8% *183 BISYS Group, Inc. (The)..................................... 6,091 *176 Certegy, Inc. .............................................. 6,531 *185 Electronic Arts, Inc. ...................................... 12,206 *186 Intuit, Inc. ............................................... 9,233 *+202 THQ, Inc. .................................................. 6,021 -------- 40,082 -------- TRANSPORTATION -- 9.9% 141 Carnival Corp., Class A..................................... 3,907 *246 Continental Airlines, Inc., Class B......................... 3,883 120 Harley-Davidson, Inc. ...................................... 6,152 *+52 JetBlue Airways Corp. ...................................... 2,383 105 Northrop Grumman Corp. ..................................... 13,135 +401 Royal Carrribean Cruises Ltd. .............................. 7,825 *156 Sabre Holdings Corp. ....................................... 5,578 395 Southwest Airlines Co. ..................................... 6,383 *263 Yellow Corp. ............................................... 8,508 -------- 57,754 -------- Total common stocks......................................... $571,043 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 0.8% REPURCHASE AGREEMENT -- 0.8% $ 4,658 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02....................................... $ 4,658 -------- Total short-term securities................................. $ 4,658 ========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $617,387)............... 97.6% $571,043 Total short-term securities (cost $4,658)......... 0.8 4,658 ----- -------- Total investment in securities (total cost $622,045)........................... 98.4 575,701 Cash, receivables and other assets................ 2.2 13,057 Securities lending collateral (See Note 2(i))..... 3.8 22,143 Payable for securities purchased.................. (0.6) (3,266) Payable for Fund shares redeemed.................. (0.0) (1) Securities lending collateral payable to brokers (See Note 2(i))................................. (3.8) (22,143) Other liabilities................................. (0.0) (165) ----- -------- Net assets........................................ 100.0% $585,326 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.010 per share; 200,000 shares authorized; 31,500 shares outstanding.... $ 315 Capital surplus................................... 746,200 Accumulated undistributed net investment loss..... (832) Accumulated undistributed net realized loss on investments.................................. (114,013) Unrealized depreciation of investments............ (46,344) --------- Net assets........................................ $ 585,326 =========
Class IA Net asset value per share ($585,093 / 31,487 shares outstanding) (187,500 shares authorized).................. $18.58 ====== Class IB Net asset value per share ($233 / 13 shares outstanding) (12,500 shares authorized)................... $18.58 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 41 HARTFORD SMALL COMPANY HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 94.5% BUSINESS SERVICES -- 4.4% *331 AMN Healthcare Services, Inc. .................... $ 11,581 *+481 FreeMarkets, Inc. ................................ 6,796 *220 Iron Mountain, Inc. .............................. 6,773 *433 RMH Teleservices, Inc. ........................... 2,976 *281 Ticketmaster Online-CitySearch, Inc. ............. 5,261 -------- 33,387 -------- CHEMICALS -- 2.6% 764 Crompton Corp. ................................... 9,743 855 PolyOne Corp. .................................... 9,621 -------- 19,364 -------- COMMUNICATIONS -- 0.8% *315 Titan Corp. (The)................................. 5,765 -------- COMPUTERS & OFFICE EQUIPMENT -- 2.1% 1,869 Game Group PLC.................................... 3,504 *154 Logitech International S.A. ...................... 7,174 *650 Scientific Games Corp., Class A................... 5,159 -------- 15,837 -------- CONSTRUCTION -- 2.8% 225 Elcor Corp. ...................................... 6,162 426 Granite Construction, Inc. ....................... 10,787 35 M/I Schottenstein Homes, Inc. .................... 1,300 *28 MTC Technologies, Inc. ........................... 524 *84 WCI Communities, Inc. ............................ 2,420 -------- 21,193 -------- CONSUMER DURABLES -- 1.5% 251 Hughes Supply, Inc. .............................. 11,254 -------- CONSUMER NON-DURABLES -- 2.7% 1,351 Swedish Match AB.................................. 11,175 *304 United Stationers, Inc. .......................... 9,255 -------- 20,430 -------- CONSUMER SERVICES -- 0.9% 204 G & K Services, Inc. ............................. 7,002 -------- DRUGS -- 6.0% *363 Abgenix, Inc. .................................... 3,558 *467 ArQule, Inc. ..................................... 3,154 *467 Array BioPharma, Inc. ............................ 4,502 *290 NPS Pharmaceuticals, Inc. ........................ 4,448 *572 OraSure Technologies, Inc. ....................... 3,715 *423 SangStat Medical Corp. ........................... 9,709 *702 Serologicals Corp. ............................... 12,846 *187 Vertex Pharmaceuticals, Inc. ..................... 3,036 -------- 44,968 -------- ELECTRICAL EQUIPMENT -- 1.1% *347 Rudolf Technologies, Inc. ........................ 8,643 --------
MARKET SHARES VALUE --------- -------- ELECTRONICS -- 7.3% *734 ASE Test Ltd. .................................... $ 7,121 *311 ATMI, Inc. ....................................... 6,962 *345 Fairchild Semiconductor International Corp., Class A......................................... 8,373 333 Harman International Industries, Inc. ............ 16,381 *741 Pericom Semiconductor Corp. ...................... 8,586 *+2,146 Siliconware Precision Industries Co., ADR......... 7,404 -------- 54,827 -------- ENERGY & SERVICES -- 5.5% *1,148 Chesapeake Energy Corp. .......................... 8,268 211 Helmerich & Payne, Inc. .......................... 7,523 358 Patina Oil & Gas Corp. ........................... 9,807 *365 Wilbros Group, Inc. .............................. 6,203 451 XTO Energy, Inc. ................................. 9,287 -------- 41,088 -------- FINANCIAL SERVICES -- 1.0% 224 Federated Investors, Inc., Class B................ 7,739 -------- FOOD, BEVERAGE & TOBACCO -- 3.0% *18 American Italian Pasta Co. ....................... 938 585 Bunge Ltd. ....................................... 12,342 *282 Constellation Brands, Inc. ....................... 9,036 -------- 22,316 -------- HEALTH SERVICES -- 6.2% *207 AmSurg Corp. ..................................... 5,430 *234 Coventry Health Care, Inc. ....................... 6,645 *250 Cross Country, Inc. .............................. 9,449 *288 Edwards Lifesciences Corp. ....................... 6,686 *595 Option Care, Inc. ................................ 8,170 *245 Triad Hospitals, Inc. ............................ 10,364 -------- 46,744 -------- HOTELS & GAMING -- 3.1% 278 Fairmont Hotels & Resorts, Inc. .................. 7,163 *+355 Multimedia Games, Inc. ........................... 7,740 *+491 Station Casinos, Inc. ............................ 8,760 -------- 23,663 -------- INSURANCE -- 3.7% *456 Amerigroup Corp. ................................. 12,436 *319 Arch Capital Group Ltd. .......................... 8,980 *1,301 HealthExtras, Inc. ............................... 6,596 -------- 28,012 -------- MACHINERY -- 1.7% *287 Flowserve Corp. .................................. 8,559 *163 Wet Seal, Inc. (The).............................. 3,953 -------- 12,512 -------- MEDIA & ENTERTAINMENT -- 3.5% *552 AMC Entertainment, Inc. .......................... 7,845 *474 Hollywood Entertainment Corp. .................... 9,799 *785 Moore Corp., Ltd. ................................ 9,007 -------- 26,651 --------
The accompanying notes are an integral part of this financial statement. 42 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 7.0% *415 Armor Holdings, Inc. ............................. $ 10,575 168 Beckman Coulter, Inc. ............................ 8,390 156 Cooper Cos., Inc. ................................ 7,338 267 DENTSPLY International, Inc. ..................... 9,843 *555 Hologic, Inc. .................................... 8,026 *451 Steris Corp. ..................................... 8,611 -------- 52,783 -------- RESEARCH & TESTING FACILITIES -- 0.5% *+202 CV Therapeutics, Inc. ............................ 3,767 -------- RETAIL -- 12.4% *246 AC Moore Arts & Crafts, Inc. ..................... 11,662 *329 AFC Enterprises, Inc. ............................ 10,283 *435 Aeropostale, Inc. ................................ 11,909 *+425 Buca, Inc. ....................................... 8,098 *435 Chicago Pizza & Brewery, Inc. .................... 4,337 *513 Goody's Family Clothing, Inc. .................... 5,909 *253 Linens 'n Things, Inc. ........................... 8,299 *292 O'Reilly Automotive, Inc. ........................ 8,045 *1,845 OfficeMax, Inc. .................................. 10,869 *207 The Yankee Candle Co., Inc. ...................... 5,610 *453 ValueVision Media, Inc. .......................... 8,220 -------- 93,241 -------- SOFTWARE & SERVICES -- 6.3% *2,057 Acclaim Entertainment, Inc. ...................... 7,261 *53 Acclaim Entertainment, Inc. ...................... 188 *1,791 Actuate Corp. .................................... 8,058 *899 Borland Software Corp. ........................... 9,259 *286 Gartner Group, Inc., Class B...................... 2,687 *526 Hyperion Solutions Corp. ......................... 9,592 *306 Perot Systems Corp. .............................. 3,337 *376 PracticeWorks, Inc. .............................. 6,945 -------- 47,327 -------- TRANSPORTATION -- 8.4% *421 Atlantic Coast Airlines Holdings, Inc. ........... 9,141 *462 Brunswick Corp. .................................. 12,945 357 CNF Transportation, Inc. ......................... 13,566 *5 JetBlue Airways Corp. ............................ 223 *201 Navistar International Corp. ..................... 6,440 371 SkyWest, Inc. .................................... 8,666 *374 Yellow Corp. ..................................... 12,101 -------- 63,082 -------- Total common stocks............................... $711,595 ======== PRINCIPAL MARKET AMOUNT VALUE --------- -------- SHORT-TERM SECURITIES -- 5.6% REPURCHASE AGREEMENT -- 5.6% $41,869 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 41,869 -------- Total short-term securities....................... $ 41,869 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $733,550)............... 94.5% $711,595 Total short-term securities (cost $41,869)........ 5.6 41,869 ------ -------- Total investment in securities (total cost $775,419)....................................... 100.1 753,464 Cash, receivables and other assets................ 2.7 20,549 Securities lending collateral (See Note 2(i))................................. 4.2 31,913 Payable for securities purchased.................. (2.6) (19,338) Payable for Fund shares redeemed.................. (0.2) (1,426) Securities lending collateral payable to brokers (See Note 2(i))......................... (4.2) (31,913) Other liabilities................................. (0.0) (88) ------ -------- Net assets........................................ 100.0% $753,161 ====== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 1,500,000 shares authorized; 641,561 shares outstanding............. $ 64,156 Capital surplus............................................. 975,111 Accumulated undistributed net investment loss............... (1,152) Accumulated undistributed net realized loss on investments............................................ (263,011) Unrealized depreciation of investments...................... (21,955) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@.............................. (1) Unrealized appreciation of other assets and liabilities in foreign currencies..................................... 13 ---------- Net assets.................................................. $ 753,161 ==========
Class IA Net asset value per share ($684,137 / 582,462 shares outstanding) (1,125,000 shares authorized)................ $1.17 ===== Class IB Net asset value per share ($69,024 / 59,099 shares outstanding) (375,000 shares authorized).................. $1.17 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Swiss Franc (Sell) $521 $520 7/1/2002 $(1) ===
The accompanying notes are an integral part of this financial statement. 43 HARTFORD MIDCAP HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE ------- ---------- COMMON STOCKS -- 99.4% APPAREL & TEXTILE -- 0.8% 27 Liz Claiborne, Inc. ........................................ $ 868 *233 Mohawk Industries, Inc. .................................... 14,343 ---------- 15,211 ---------- BANKS -- 9.9% 700 Astoria Financial Corp. .................................... 22,423 +535 Bank of Hawaii Corp. ....................................... 14,986 452 Countrywide Credit Industries, Inc. ........................ 21,799 332 Golden West Financial Corp. ................................ 22,856 693 Hibernia Corp., Class A..................................... 13,711 +335 M&T Bank Corp. ............................................. 28,704 +1,729 Sovereign Bancorp, Inc. .................................... 25,851 530 UnionBanCal Corp. .......................................... 24,849 *130 Weatherford International Ltd. ............................. 5,608 ---------- 180,787 ---------- BUSINESS SERVICES -- 4.9% *+307 Iron Mountain, Inc. ........................................ 9,484 *712 Lamar Advertising Co., Class A.............................. 26,512 +1,035 Manpower, Inc. ............................................. 38,030 *697 Robert Half International, Inc. ............................ 16,235 ---------- 90,261 ---------- CHEMICALS -- 0.5% 205 Rohm & Haas Co. ............................................ 8,295 ---------- COMMUNICATIONS -- 0.5% *+2,852 American Tower Corp., Class A............................... 9,839 ---------- COMPUTERS & OFFICE EQUIPMENT -- 0.6% 1,370 Symbol Technologies, Inc. .................................. 11,645 ---------- CONSTRUCTION -- 1.0% +312 Lennar Corp. ............................................... 19,094 ---------- CONSUMER DURABLES -- 1.0% 509 Newell Rubbermaid, Inc. .................................... 17,847 ---------- CONSUMER NON-DURABLES -- 5.8% +1,224 Callaway Golf Co. .......................................... 19,381 *2,517 Mattel, Inc. ............................................... 53,050 1,015 McKesson Corp. ............................................. 33,198 ---------- 105,629 ---------- DRUGS -- 3.3% *467 Gilead Sciences, Inc. ...................................... 15,358 *916 Millennium Pharmaceuticals, Inc. ........................... 11,132 *682 Vertex Pharmaceuticals, Inc. ............................... 11,109 *874 Watson Pharmaceuticals, Inc. ............................... 22,092 ---------- 59,691 ---------- ELECTRICAL EQUIPMENT -- 2.6% *476 Tektronix, Inc. ............................................ 8,913 *850 Teradyne, Inc. ............................................. 19,969 *667 Waters Corp. ............................................... 17,820 ---------- 46,702 ----------
MARKET SHARES VALUE ------- ---------- ELECTRONICS -- 2.6% *+539 International Rectifier Corp. .............................. $ 15,712 *3,005 Sanmina-SCI Corp. .......................................... 18,963 *+614 Vishay Intertechnology, Inc. ............................... 13,516 ---------- 48,191 ---------- ENERGY & SERVICES -- 5.1% *+403 BJ Services Co. ............................................ 13,643 585 EOG Resources, Inc. ........................................ 23,205 421 GlobalSantaFe Corp. ........................................ 11,525 *334 Nabors Industries Ltd. ..................................... 11,782 *485 Noble Corp. ................................................ 18,710 410 Sunoco, Inc. ............................................... 14,615 ---------- 93,480 ---------- FINANCIAL SERVICES -- 6.0% +163 Federated Investors, Inc., Class B.......................... 5,649 385 Franklin Resources, Inc. ................................... 16,399 *3,001 Host Marriott Corp. ........................................ 33,914 *486 Investment Technology Group, Inc. .......................... 15,891 +552 Legg Mason, Inc. ........................................... 27,240 431 Waddell & Reed Financial, Inc., Class A..................... 9,887 ---------- 108,980 ---------- FOOD, BEVERAGE & TOBACCO -- 2.9% 443 Kellogg Co. ................................................ 15,901 1,198 Pepsi Bottling Group, Inc. (The)............................ 36,896 ---------- 52,797 ---------- FOREST & PAPER PRODUCTS -- 3.3% 2,916 Abitibi-Consolidated, Inc. ................................. 26,918 625 Bowater, Inc. .............................................. 33,977 ---------- 60,895 ---------- HEALTH SERVICES -- 1.2% *1,109 Health Management Associates, Inc., Class A................................................... 22,338 ---------- INSURANCE -- 5.5% 274 Ambac Financial Group, Inc. ................................ 18,401 *493 Anthem, Inc. ............................................... 33,252 *360 Arch Capital Group Ltd. .................................... 10,126 276 MBIA, Inc. ................................................. 15,617 *763 Principal Financial Group (The)............................. 23,647 ---------- 101,043 ---------- MACHINERY -- 6.0% *339 American Standard Cos., Inc. ............................... 25,466 608 Ingersoll Rand Co. ......................................... 27,761 *+1,581 Lam Research Corp. ......................................... 28,431 583 Parker-Hannifin Corp. ...................................... 27,847 ---------- 109,505 ---------- MEDIA & ENTERTAINMENT -- 3.3% 453 Knight-Ridder, Inc. ........................................ 28,511 273 Scripps (E.W.) Co. (The), Class A........................... 21,010 *+425 USA Networks, Inc. ......................................... 9,969 ---------- 59,490 ----------
The accompanying notes are an integral part of this financial statement. 44 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------- ---------- COMMON STOCKS -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 4.0% 448 Beckman Coulter, Inc. ...................................... $ 22,348 537 Becton, Dickinson & Co. .................................... 18,504 *572 Boston Scientific Corp. .................................... 16,777 *202 St. Jude Medical, Inc. ..................................... 14,881 ---------- 72,510 ---------- RESEARCH & TESTING FACILITIES -- 2.3% *+744 Applera Corp. -- Celera Genomics Group...................... 8,934 *+419 Cephalon, Inc. ............................................. 18,938 *+90 Quest Diagnostics, Inc. .................................... 7,755 *+382 Regeneron Pharmeceuticals, Inc. ............................ 5,541 ---------- 41,168 ---------- RETAIL -- 6.4% *699 Abercrombie & Fitch Co. .................................... 16,850 *619 Aramark Corp. .............................................. 15,473 *203 BJ's Wholesale Club, Inc. .................................. 7,832 615 Dillard's, Inc., Class A.................................... 16,179 *1,194 Staples, Inc. .............................................. 23,516 *+1,183 Williams-Sonoma, Inc. ...................................... 36,273 ---------- 116,123 ---------- RUBBER & PLASTICS PRODUCTS -- 2.9% +876 Goodyear Tire & Rubber Co. (The)............................ 16,386 432 NIKE, Inc., Class B......................................... 23,194 *+311 Sealed Air Corp. ........................................... 12,516 ---------- 52,096 ---------- SOFTWARE & SERVICES -- 9.2% *540 BISYS Group, Inc. (The)..................................... 17,988 *1,768 Cadence Design Systems, Inc. ............................... 28,503 *544 Certegy, Inc. .............................................. 20,192 *223 Electronic Arts, Inc. ...................................... 14,716 *+1,684 Gartner Group, Inc., Class A................................ 17,011 *1,036 Intuit, Inc. ............................................... 51,487 *+520 Symantec Corp. ............................................. 17,069 ---------- 166,966 ---------- TRANSPORTATION -- 4.5% 310 CNF Transportation, Inc. ................................... 11,781 527 CSX Corp. .................................................. 18,464 222 Northrop Grumman Corp. ..................................... 27,798 *+686 Ryanair Holdings PLC, ADR................................... 23,938 ---------- 81,981 ---------- UTILITIES -- 3.3% 1,152 DPL, Inc. .................................................. 30,482 +816 KeySpan Corp. .............................................. 30,731 ---------- 61,213 ---------- Total common stocks......................................... $1,813,777 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,748,597)......................... 99.4% $1,813,777 ------ ---------- Total investment in securities (total cost $1,748,597).................... 99.4 1,813,777 Cash, receivables and other assets.... 2.1 38,066 Securities lending collateral (See Note 2(i))..................... 10.2 185,714 Payable for securities purchased...... (1.4) (25,418) Payable for Fund shares redeemed...... (0.0) (819) Securities lending collateral payable to brokers (See Note 2(i)).......... (10.2) (185,714) Other liabilities..................... (0.1) (1,309) ------ ---------- Net assets............................ 100.0% $1,824,297 ====== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,000,000 shares authorized; 896,082 shares outstanding............. $ 89,608 Capital surplus............................................. 1,782,618 Accumulated undistributed net investment income............. 345 Accumulated undistributed net realized loss on investments............................................... (110,334) Unrealized appreciation of investments...................... 62,060 ----------- Net assets.................................................. $ 1,824,297 ===========
Class IA Net asset value per share ($1,714,951 / 842,163 shares outstanding) (1,500,000 shares authorized).............. $2.04 ===== Class IB Net asset value per share ($109,346 / 53,919 shares outstanding) (500,000 shares authorized)................ $2.03 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 45 HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 86.8% AUSTRALIA -- 2.1% +13 News Corp. Ltd., ADR (Media & Entertainment).......................................... $ 287 40 Woolworths Ltd. (Food, Beverage & Tobacco)................................................ 295 ------- 582 ------- CANADA -- 3.0% 41 CAE, Inc. (Energy & Services)............................... 337 10 Canadian National Railway Co. (Transportation).......................................... 508 ------- 845 ------- FINLAND -- 2.5% 48 Nokia Oyj (Communications).................................. 707 ------- FRANCE -- 17.4% 20 AXA (Financial Services).................................... 375 *+10 BNP Paribas S.A. (Banks)..................................................... 575 7 Essilor International S.A. (Retail)......................... 268 +2 Hermes International (Apparel & Textile).................... 284 3 Peugeot Citroen S.A. (Transportation)....................... 156 *17 Publicis Groupe (Business Services)......................... 475 5 Rodriguez Group (Construction).............................. 325 +17 Societe Television Francaise 1 (Media & Entertainment).......................................... 447 +10 Thales S.A. (Electronics)................................... 442 *20 Thomson Multimedia (Electronics)............................ 475 +5 TotalFinaElf S.A., B Shares (Energy & Services)............................................... 763 5 Unibail (Real Estate)....................................... 333 ------- 4,918 ------- GERMANY -- 4.7% @@0 Adidas AG (Apparel & Textile)............................... 33 +14 Bayerische Vereinsbank AG (Banks)........................... 465 1 Porsche AG (Transportation)................................. 284 9 Schering AG (Drugs)......................................... 544 ------- 1,326 ------- HONG KONG -- 1.2% 246 Cnooc Ltd. (Energy & Services).............................. 330 ------- INDONESIA -- 1.1% *626 PT Ramayana Lestari Sentosa Tbk (Retail).................... 300 ------- IRELAND -- 1.3% *+11 Ryanair Holdings PLC, ADR (Transportation).......................................... 366 ------- ITALY -- 5.4% +189 Banca Monte Dei Paschi di Siena S.p.A. (Banks)..................................................... 614 +36 Benetton Group S.p.A. (Apparel & Textile)................... 419 +65 Mediaset S.p.A. (Media & Entertainment)..................... 499 ------- 1,532 ------- JAPAN -- 6.3% 10 Fast Retailing Co., Ltd. (Retail)........................... $ 210 4 ITO-YOKADO Co., Ltd. (Retail)............................... 200 24 Matsushita Electric Industrial Co., Ltd. (Electronics)............................................. 327 45 Nikko Cordial Corp. (Financial Services).................... 227 @@0 Nippon Telegraph & Telephone Corp. (Communications).......................................... 407 *@@0 Sky Perfect (Communications)................................ 69 3 Sony Corp. (Electronics).................................... 169 *7 Trend Micro, Inc. (Software & Services)..................... 182 ------- 1,791 -------
MARKET SHARES VALUE --------- ------- LUXEMBOURG -- 1.8% *35 Arcelor (Metals, Minerals & Mining)......................... 496 ------- NETHERLANDS -- 4.6% *+5 Gucci Group N.V. (Apparel & Textile)........................ 454 94 Koninklijke KPN N.V. (Communications)....................... 439 15 Koninklijke Philips Electronics N.V. (Electronics)............................................. 416 ------- 1,309 ------- NORWAY -- 1.6% *38 Tandberg ASA (Communications)............................... 453 ------- RUSSIA -- 2.6% +13 JSC Mining and Smelting Co., ADR (Metals, Minerals & Mining)............................... 271 +17 Surgutneftegaz ADR (Energy & Services)...................... 326 +1 YUKOS, ADR (Energy & Services).............................. 124 ------- 721 ------- SOUTH KOREA -- 2.8% *3 Posco (Metals, Minerals & Mining)........................... 361 @3 Samsung Electronics Co., Ltd. GDR (Electronics)............................................. 426 ------- 787 ------- SPAIN -- 0.7% 23 Promotora de Informaciones S.A. (Media & Entertainment).......................................... 198 ------- SWEDEN -- 5.1% 135 Gambro AB, A Shares (Medical Instruments & Supplies)............................................... 889 +15 SFK AB (Metals, Minerals & Mining).......................... 401 18 Swedish Match AB (Consumer Non- Durables)................................................. 146 ------- 1,436 ------- SWITZERLAND -- 4.9% *12 Credit Suisse Group (Banks)................................. 366 *6 Logitech International S.A. (Computers & Office Equipment)......................................... 299 4 Roche Holdings AG (Drugs)................................... 330 15 STMicroelectronics N.V. (Electronics)....................... 386 ------- 1,381 -------
The accompanying notes are an integral part of this financial statement. 46 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- (CONTINUED) THAILAND -- 0.9% *330 Thai Farmers Bank Public Co., Ltd. (Banks).................. $ 265 ------- UNITED KINGDOM -- 16.8% 7 AstraZeneca PLC (Drugs)..................................... 306 62 Capita Group PLC (Business Services)........................ 297 16 Capital Radio PLC (Communications).......................... 150 *281 Carphone Warehouse Grp PLC (Communications).......................................... 381 57 Imperial Tobacco Group (Food, Beverage & Tobacco)................................................ 919 *189 Invensys PLC (Electrical Equipment)......................... 257 110 P&O Princess Cruises PLC (Transportation)................... 694 17 Royal Bank of Scotland Group PLC (Banks).................... 471 77 Scottish & Newcastle PLC (Food, Beverage & Tobacco)................................................ 706 *26 Shire Pharmaceuticals Group PLC (Drugs)..................... 227 263 Vodafone Group PLC (Communications)......................... 361 ------- 4,769 ------- Total common stocks......................................... $24,512 ======= CONVERTIBLE PREFERRED STOCKS -- 1.0% CANADA -- 1.0% @@0 Nortel Networks Corp. (Communications)...................... $ 274 ------- Total convertible preferred stocks.......................... $ 274 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 11.4% $3,221 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02....................................... $ 3,221 ------- Total short-term securities................................. $ 3,221 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $24,023)........ 86.8% $24,512 Total convertible preferred stocks (cost $262)................................... 1.0 274 Total short-term securities (cost $3,221)................................. 11.4 3,221 ----- ------- Total investment in securities (total cost $27,506)................................ 99.2 28,007 Cash, receivables and other assets........ 3.9 1,103 Securities lending collateral (See Note 2(i))................................... 14.1 3,974 Payable for securities purchased.......... (3.1) (873) Dividends payable......................... (0.0) (1) Securities lending collateral payable to brokers (See Note 2(i))................. (14.1) (3,974) ----- ------- Net assets................................ 100.0% $28,236 ===== =======
MARKET VALUE ------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 33,653 shares outstanding... $ 34 Capital surplus.................................. 29,030 Accumulated undistributed net investment income......................................... 118 Accumulated undistributed net realized loss on investments.................................... (1,448) Unrealized appreciation of investments........... 501 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@.......... 4 Unrealized depreciation of other assets and liabilities in foreign currencies.............. (3) ------- Net assets....................................... $28,236 =======
Class IA Net asset value per share ($18,862 / 22,468 shares outstanding) (600,000 shares authorized).................................... $0.84 ===== Class IB Net asset value per share ($9,374 / 11,185 shares outstanding) (200,000 shares authorized)....... $0.84 =====
DIVERSIFICATION BY INDUSTRY: Apparel & Textile.......................... 4.2% $ 1,190 Banks...................................... 9.8 2,756 Business Services.......................... 2.7 772 Communications............................. 10.5 2,967 Computers & Office Equipment............... 1.1 299 Construction............................... 1.2 325 Consumer Non-Durables...................... 0.5 146 Drugs...................................... 5.0 1,407 Electrical Equipment....................... 0.9 257 Electronics................................ 9.4 2,641 Energy & Services.......................... 6.7 1,880 Financial Services......................... 2.1 602 Food, Beverage & Tobacco................... 6.8 1,920 Media & Entertainment...................... 5.1 1,431 Medical Instruments & Supplies............. 3.1 889 Metals, Minerals & Mining.................. 5.4 1,529 Real Estate................................ 1.2 333 Retail..................................... 3.5 978 Software & Services........................ 0.6 182 Transportation............................. 7.0 2,008 ---- ------- Total common stocks.................... 86.8% $24,512 ==== =======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $426 or 1.5% of net assets. @@ 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. 47 HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- EURO (Buy) $472 $470 7/1/2002 $2 EURO (Buy) 216 215 7/2/2002 1 EURO (Sell) 48 48 7/3/2002 -- Japanese Yen (Sell) 211 212 7/1/2002 1 -- $4 ==
The accompanying notes are an integral part of this financial statement. 48 HARTFORD CAPITAL APPRECIATION HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 97.9% BANKS -- 6.4% 900 Bank of America Corp. ............................ $ 63,324 +1,500 Capital One Financial Corp. ...................... 91,575 3,150 Citigroup, Inc. .................................. 122,063 *2,600 Credit Suisse Group............................... 82,552 1,000 Golden West Financial Corp. ...................... 68,780 +1,856 Washington Mutual, Inc. .......................... 68,887 ---------- 497,181 ---------- BUSINESS SERVICES -- 2.8% +2,500 Manpower, Inc. ................................... 91,875 +2,372 Omnicom Group, Inc. .............................. 108,615 *727 United Rentals (North America), Inc. ............. 15,838 ---------- 216,328 ---------- CHEMICALS -- 3.3% 2,250 Air Products & Chemicals, Inc. ................... 113,558 12,820 Imperial Chemical Industries PLC.................. 62,434 +1,955 Imperial Chemical Industries PLC, ADR............. 37,632 1,000 Rohm & Haas Co. .................................. 40,490 ---------- 254,114 ---------- COMMUNICATIONS -- 3.0% 10,148 AT&T Corp. ....................................... 108,581 14,000 Cable & Wireless PLC.............................. 35,639 659 Harris Corp. ..................................... 23,893 *+2,210 QUALCOMM, Inc. ................................... 60,764 ---------- 228,877 ---------- COMPUTERS & OFFICE EQUIPMENT -- 6.9% +1,800 3M Co............................................. 221,400 *2,378 Apple Computer, Inc. ............................. 42,145 *9,717 Cisco Systems, Inc. .............................. 135,554 *2,309 Dell Computer Corp. .............................. 60,352 *+9,814 Solectron Corp. .................................. 60,355 1,500 Symbol Technologies, Inc. ........................ 12,750 ---------- 532,556 ---------- CONSTRUCTION -- 1.3% 6,500 Halliburton Co. .................................. 103,610 ---------- CONSUMER NON-DURABLES -- 3.6% *+978 Dean Foods Co. ................................... 36,494 +5,085 McKesson Corp. ................................... 166,283 5,718 Tyco International Ltd. .......................... 77,254 ---------- 280,031 ---------- DRUGS -- 8.6% +2,219 Abbott Laboratories............................... 83,542 *+1,994 Elan Corp. PLC.................................... 10,905 1,200 Eli Lilly & Co. .................................. 67,680 *+1,618 Genentech, Inc. .................................. 54,190 4,500 Pharmacia Corp. .................................. 168,525 4,600 Schering-Plough Corp. ............................ 113,160 +1,630 Teva Pharmaceutical Industries Ltd., ADR.......... 108,842 *+2,447 Watson Pharmaceuticals, Inc. ..................... 61,831 ---------- 668,675 ---------- ELECTRICAL EQUIPMENT -- 0.8% *664 Ionics, Inc. ..................................... 16,100 *3,000 Thermo Electron Corp. ............................ 49,500 ---------- 65,600 ----------
MARKET SHARES VALUE --------- ---------- ELECTRONICS -- 6.3% *+2,045 ASM Lithography Holding N.V. ..................... $ 30,917 *+11,500 Agere Systems, Inc. .............................. 16,100 2,000 General Electric Co. ............................. 58,100 *650 Samsung Electronics Co., Ltd. .................... 177,770 *4,000 Sanmina-SCI Corp. ................................ 25,240 +1,700 Sony Corp. ....................................... 89,783 *44,000 Taiwan Semiconductor Manufacturing Co., Ltd. ...................................... 89,557 ---------- 487,467 ---------- ENERGY & SERVICES -- 8.4% +600 Amerada Hess Corp. ............................... 49,500 +2,901 Canadian Natural Resources Ltd. .................. 98,281 5,191 Petroleo Brasileiro S.A. ......................... 90,318 +629 Petroleo Brasileiro S.A., ADR..................... 11,863 +8,900 Sasol Ltd., ADR................................... 92,569 2,991 Valero Energy Corp. .............................. 111,938 3,076 XTO Energy, Inc. ................................. 63,355 +950 YUKOS, ADR........................................ 131,297 ---------- 649,121 ---------- FINANCIAL SERVICES -- 2.3% *+3,800 Converium Holding AG, ADR......................... 97,850 2,000 Merrill Lynch & Co., Inc. ........................ 81,000 ---------- 178,850 ---------- FOOD, BEVERAGE & TOBACCO -- 3.1% 2,788 Archer-Daniels-Midland Co. ....................... 35,657 3,200 Bunge Ltd. ....................................... 67,520 3,133 Philip Morris Cos., Inc. ......................... 136,828 ---------- 240,005 ---------- FOREST & PAPER PRODUCTS -- 1.4% *+6,992 Smurfit-Stone Container Corp. .................... 107,817 ---------- HEALTH SERVICES -- 0.7% *1,900 First Health Group Corp. ......................... 53,276 ---------- INSURANCE -- 5.7% 6,850 Ace Ltd. ......................................... 216,460 +642 Ambac Financial Group, Inc. ...................... 43,156 +1,201 American International Group, Inc. ............... 81,931 +1,800 MBIA, Inc. ....................................... 101,754 ---------- 443,301 ---------- MACHINERY -- 2.2% 2,600 Deere & Co. ...................................... 124,540 *+2,000 Terex Corp. ...................................... 44,980 ---------- 169,520 ----------
The accompanying notes are an integral part of this financial statement. 49 HARTFORD CAPITAL APPRECIATION HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- 2.7% *993 Clear Channel Communications, Inc. ............... $ 31,780 *3,800 Comcast Corp., Class A............................ 90,592 *6,202 Liberty Media Corp., Class A...................... 62,021 *+1,000 USA Networks, Inc. ............................... 23,450 ---------- 207,843 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 4.1% +5,000 Becton, Dickinson & Co. .......................... 172,250 *+4,926 Boston Scientific Corp. .......................... 144,416 ---------- 316,666 ---------- METALS, MINERALS & MINING -- 4.5% +3,400 Alcoa, Inc. ...................................... 112,710 2,250 Engelhard Corp. .................................. 63,720 +1,096 JSC Mining and Smelting Co. ADR................... 22,888 51 Lukoil ADR........................................ 3,296 +3,200 Newmont Mining Corp. ............................. 84,256 1,894 Precision Castparts Corp. ........................ 62,515 ---------- 349,385 ---------- RESEARCH & TESTING FACILITIES -- 0.7% *+549 Applera Corp. -- Celera Genomics Group............ 6,583 *+700 CV Therapeutics, Inc. ............................ 13,034 *+1,400 Regeneron Pharmeceuticals, Inc. .................. 20,314 *1,710 Ribapharm, Inc. .................................. 15,544 ---------- 55,475 ---------- RETAIL -- 5.0% *+1,800 Cheesecake Factory, Inc. (The).................... 63,864 4,300 Dollar General Corp. ............................. 81,829 *+1,854 Neiman Marcus Group, Inc. ........................ 64,327 961 Sears, Roebuck and Co. ........................... 52,161 *+3,470 Staples, Inc. .................................... 68,359 1,465 Target Corp. ..................................... 55,809 ---------- 386,349 ---------- SOFTWARE & SERVICES -- 2.5% *6,178 AOL Time Warner, Inc. ............................ 90,871 *+2,365 BEA Systems, Inc. ................................ 22,488 *2,556 VERITAS Software Corp. ........................... 50,575 *+2,500 VeriSign, Inc. ................................... 17,975 *8,400 i2 Technologies, Inc.............................. 12,432 ---------- 194,341 ---------- TRANSPORTATION -- 9.0% *+3,700 AMR Corp. ........................................ 62,382 3,747 Delphi Automotive Systems Corp. .................. 49,462 +4,100 Northrop Grumman Corp. ........................... 512,500 2,200 Toyota Motor Corp. ............................... 58,370 675 Werner Enterprises, Inc. ......................... 14,384 ---------- 697,098 ---------- UTILITIES -- 2.6% +4,500 CMS Energy Corp. ................................. 49,410 *+6,030 Calpine Corp. .................................... 42,392 *+4,065 Waste Management, Inc. ........................... 105,883 197,685 ---------- Total common stocks............................... $7,581,171 ========== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 0.8% REPURCHASE AGREEMENT -- 0.8% $ 60,783 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 60,783 ---------- Total short-term securities....................... $ 60,783 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost 97.9% $8,274,731).......................... $7,581,171 Total short-term securities (cost 0.8 $60,783)............................. 60,783 ------ ---------- Total investment in securities (total cost $8,335,514)..................... 98.7 7,641,954 Cash, receivables and other assets..... 2.4 185,080 Securities lending collateral (See Note 6.7 2(i))................................ 517,411 Payable for securities purchased....... (1.1) (82,095) Payable for Fund shares redeemed....... (0.0) (2,780) Securities lending collateral payable to brokers (See Note 2(i))........... (6.7) (517,411) Other liabilities...................... (0.0) (557) ------ ---------- Net assets............................. 100.0% $7,741,602 ====== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 4,000,000 shares authorized; 2,294,107 shares outstanding............... $ 229,411 Capital surplus.............................. 9,189,118 Accumulated undistributed net investment income..................................... 31,877 Accumulated undistributed net realized loss on investments............................. (1,013,804) Unrealized depreciation of investments....... (693,560) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@...... (1,729) Unrealized appreciation of other assets and liabilities in foreign currencies.......... 289 ----------- Net assets................................... $ 7,741,602 ===========
Class IA Net asset value per share ($7,282,172 / 2,157,617 shares outstanding) (3,250,000 shares authorized)............................ $3.38 ===== Class IB Net asset value per share ($459,430 / 136,490 shares outstanding) (750,000 shares authorized)................................... $3.37 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 50 -------------------------------------------------------------------------------- @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- ---------- -------------- Japanese Yen (Buy) $28,035 $26,391 12/27/2002 $ 1,644 Japanese Yen (Buy) 28,035 26,385 12/27/2002 1,650 Japanese Yen (Sell) 14,789 14,871 7/1/2002 82 Japanese Yen (Sell) 56,071 50,966 12/27/2002 (5,105) ------- $(1,729) =======
The accompanying notes are an integral part of this financial statement. 51 HARTFORD VALUE OPPORTUNITIES HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 97.0% BANKS -- 20.9% 75 Astoria Financial Corp. .......................... $ 2,417 134 Citigroup, Inc. .................................. 5,177 10 Fannie Mae........................................ 760 23 Freddie Mac....................................... 1,414 170 Hibernia Corp., Class A........................... 3,360 33 Morgan (J.P.) Chase & Co. ........................ 1,123 63 UnionBanCal Corp. ................................ 2,970 127 Washington Mutual, Inc. .......................... 4,720 -------- 21,941 -------- BUSINESS SERVICES -- 1.6% *73 KPMG Consulting, Inc. ............................ 1,077 *236 UnitedGlobalCom, Inc., Class A.................... 648 -------- 1,725 -------- CHEMICALS -- 2.5% 12 Air Products & Chemicals, Inc. ................... 606 21 Aventis S.A., ADR................................. 1,486 14 Rohm & Haas Co. .................................. 559 -------- 2,651 -------- COMMUNICATIONS -- 1.1% 94 AT&T Corp. ....................................... 1,000 *128 McLeodUSA, Inc., Class A.......................... 54 *##2,186 McLeodUSA, Inc., Class A.......................... -- *702 WorldCom, Inc. ................................... 63 -------- 1,117 -------- COMPUTERS & OFFICE EQUIPMENT -- 4.7% *75 Cirrus Logic, Inc. ............................... 562 *56 Dell Computer Corp. .............................. 1,474 29 International Business Machines Corp. ............ 2,110 *121 Solectron Corp. .................................. 746 -------- 4,892 -------- CONSTRUCTION -- 3.6% 90 Granite Construction, Inc. ....................... 2,285 *52 Toll Brothers, Inc. .............................. 1,527 -------- 3,812 -------- CONSUMER DURABLES -- 2.1% *80 Arrow Electronics, Inc. .......................... 1,654 16 Lafarge North America, Inc. ...................... 555 -------- 2,209 -------- CONSUMER NON-DURABLES -- 4.5% *63 Safeway, Inc. .................................... 1,845 211 Tyco International Ltd. .......................... 2,848 -------- 4,693 -------- DRUGS -- 3.6% 23 Abbott Laboratories............................... 866 77 Pharmacia Corp. .................................. 2,876 -------- 3,742 -------- ELECTRICAL EQUIPMENT -- 1.2% 32 Rockwell Automation, Inc. ........................ 641 *28 Teradyne, Inc. ................................... 660 -------- 1,301 --------
MARKET SHARES VALUE --------- -------- ELECTRONICS -- 1.5% *71 Vishay Intertechnology, Inc. ..................... $ 1,567 -------- ENERGY & SERVICES -- 9.3% 43 Cabot Oil & Gas Corp. ............................ 978 51 Devon Energy Corp. ............................... 2,528 79 Encana Corp. ..................................... 2,410 29 IHC Caland N.V. .................................. 1,758 111 Petroleo Brasileiro S.A., ADR..................... 2,095 -------- 9,769 -------- FOOD, BEVERAGE & TOBACCO -- 0.8% *27 Constellation Brands, Inc. ....................... 864 -------- FOREST & PAPER PRODUCTS -- 2.3% 263 Abitibi-Consolidated, Inc. ....................... 2,424 -------- INSURANCE -- 11.5% 50 Ace Ltd. ......................................... 1,564 *25 Arch Capital Group Ltd. .......................... 695 *71 Health Net, Inc. ................................. 1,911 *72 Oxford Health Plans, Inc. ........................ 3,331 124 RenaissanceRe Holdings, Ltd. ..................... 4,545 -------- 12,046 -------- MACHINERY -- 3.0% *109 Axcelis Technologies, Inc. ....................... 1,236 17 Eaton Corp. ...................................... 1,229 *22 Flowserve Corp. .................................. 668 -------- 3,133 -------- MEDIA & ENTERTAINMENT -- 3.3% *33 COX Communications, Inc. ......................... 904 *106 Comcast Corp., Class A............................ 2,518 -------- 3,422 -------- METALS, MINERALS & MINING -- 4.3% 125 Alcoa, Inc. ...................................... 4,154 12 Engelhard Corp. .................................. 334 -------- 4,488 -------- RESEARCH & TESTING FACILITIES -- 0.1% 4 Monsanto Co. ..................................... 68 -------- RETAIL -- 6.4% 48 Ross Stores, Inc. ................................ 1,940 245 TJX Cos., Inc. (The).............................. 4,802 -------- 6,742 -------- SOFTWARE & SERVICES -- 2.7% *136 AOL Time Warner, Inc. ............................ 1,993 *+287 SONICblue, Inc. .................................. 296 *50 Sybase, Inc. ..................................... 526 -------- 2,815 --------
The accompanying notes are an integral part of this financial statement. 52 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) TRANSPORTATION -- 2.2% 17 Canadian National Railway Co. .................... $ 901 *44 Continental Airlines, Inc., Class B............... 693 *66 ExpressJet Holdings, Inc. ........................ 863 -------- 2,457 -------- UTILITIES -- 3.8% 12 CMS Energy Corp. ................................. 131 50 FirstEnergy Corp. ................................ 1,652 25 PPL Corp. ........................................ 837 29 Progress Energy, Inc. ............................ 1,524 -------- 4,144 -------- Total common stocks............................... $102,022 ========
PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 1.0% REPURCHASE AGREEMENT -- 1.0% $1,065 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 1,065 -------- Total short-term securities....................... $ 1,065 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $113,627)..... 97.0% $102,022 Total short-term securities (cost $1,065)............................... 1.0 1,065 ------ -------- Total investment in securities.......... (total cost $114,692) 98.0 103,087 Cash, receivables and other assets...... 2.5 2,626 Payable for securities purchased........ (0.5) (521) Other liabilities....................... (0.0) (29) ------ -------- Net assets.............................. 100.0% $105,163 ====== ========
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.010 per share; 200,000 shares authorized; 8,768 shares outstanding...................... $ 88 Capital surplus............................................. 125,149 Accumulated undistributed net investment income............. 340 Distribution in excess of net realized gain on investments............................................ (8,810) Unrealized depreciation of investments...................... (11,605) Unrealized appreciation of other assets and liabilities in foreign currencies........................................ 1 -------- Net assets.................................................. $105,163 ========
Class IA Net asset value per share ($104,990 / 8,754 shares outstanding) (187,500 shares authorized)................ $11.99 ====== Class IB Net asset value per share ($173 / 14 shares outstanding) (12,500 shares authorized).............................. $11.99 ======
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i)) ## Illiquid Securities. (See Note 2(m))
The accompanying notes are an integral part of this financial statement. 53 HARTFORD GROWTH HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 95.8% BANKS -- 4.9% 1 Capital One Financial Corp. ...................... $ 36 3 Citigroup, Inc. .................................. 112 1 Countrywide Credit Industries, Inc. .............. 51 1 Freddie Mac....................................... 64 ------ 263 ------ BUSINESS SERVICES -- 1.4% *3 Accenture Ltd. ................................... 51 *1 Cendant Corp. .................................... 21 ------ 72 ------ COMPUTERS & OFFICE EQUIPMENT -- 5.6% *8 Cisco Systems, Inc. .............................. 106 *7 Dell Computer Corp. .............................. 191 ------ 297 ------ CONSTRUCTION -- 1.0% 1 ITT Industries, Inc. ............................. 51 ------ CONSUMER DURABLES -- 0.7% 1 Newell Rubbermaid, Inc. .......................... 39 ------ CONSUMER NON-DURABLES -- 1.5% @@0 AmerisourceBergen Corp. .......................... 32 2 McKesson Corp. ................................... 49 ------ 81 ------ DRUGS -- 19.1% 3 Abbott Laboratories............................... 103 *1 Amgen, Inc. ...................................... 27 4 AstraZeneca PLC, ADR.............................. 172 2 Eli Lilly & Co. .................................. 85 *@@0 Forest Laboratories, Inc. ........................ 25 *1 Genentech, Inc. .................................. 30 *1 Genzyme Corp. .................................... 24 *1 Gilead Sciences, Inc. ............................ 39 8 Pharmacia Corp. .................................. 282 4 Schering-Plough Corp. ............................ 100 3 Serono S.A., ADR.................................. 46 2 Wyeth............................................. 82 ------ 1,015 ------ ELECTRICAL EQUIPMENT -- 1.8% *2 Teradyne, Inc. ................................... 49 *2 Waters Corp. ..................................... 48 ------ 97 ------ ELECTRONICS -- 8.3% 7 General Electric Co. ............................. 205 9 Intel Corp. ...................................... 155 *6 Sanmina-SCI Corp. ................................ 36 *6 United Microelectronics Corp., ADR................ 45 ------ 441 ------ FINANCIAL SERVICES -- 2.6% 1 Goldman Sachs Group, Inc. (The)................... 88 1 Merrill Lynch & Co., Inc. ........................ 49 ------ 137 ------
MARKET SHARES VALUE --------- ------ FOOD, BEVERAGE & TOBACCO -- 3.5% 1 Pepsi Bottling Group, Inc. (The).................. $ 36 2 PepsiCo., Inc. ................................... 87 1 Philip Morris Cos., Inc. ......................... 65 ------ 188 ------ HEALTH SERVICES -- 2.4% 1 HCA, Inc. ........................................ 69 *1 Laboratory Corp. of American Holdings............. 57 ------ 126 ------ INSURANCE -- 5.6% 3 American International Group, Inc. ............... 198 2 St. Paul Cos., Inc. (The)......................... 64 @@0 UnitedHealth Group, Inc. ......................... 37 ------ 299 ------ MACHINERY -- 0.6% *2 Applied Materials, Inc. .......................... 34 ------ MEDIA & ENTERTAINMENT -- 6.8% *2 Clear Channel Communications, Inc. ............... 58 *3 EchoStar Communications Corp., Class A............ 47 @@0 Knight-Ridder, Inc. .............................. 24 *6 Liberty Media Corp., Class A...................... 64 1 Scripps (E.W.) Co. (The), Class A................. 54 *3 USA Networks, Inc. ............................... 64 *1 Viacom, Inc., Class B............................. 53 ------ 364 ------ MEDICAL INSTRUMENTS & SUPPLIES -- 2.6% 3 Becton, Dickinson & Co. .......................... 100 *1 Boston Scientific Corp. .......................... 38 ------ 138 ------ RETAIL -- 10.3% *1 Bed Bath & Beyond, Inc. .......................... 42 2 CVS Corp. ........................................ 61 1 Home Depot, Inc. (The)............................ 50 *1 Kohl's Corp. ..................................... 35 3 Lowe's Cos., Inc. ................................ 150 *1 McDonald's Corp. ................................. 37 2 Target Corp. ..................................... 80 1 Wal-Mart Stores, Inc. ............................ 77 *@@0 eBay, Inc. ....................................... 17 ------ 549 ------ RUBBER & PLASTICS PRODUCTS -- 0.9% 1 NIKE, Inc., Class B............................... 48 ------ SOFTWARE & SERVICES -- 11.8% *6 AOL Time Warner, Inc. ............................ 83 *@@0 Electronic Arts, Inc. ............................ 21 5 First Data Corp. ................................. 186
The accompanying notes are an integral part of this financial statement. 54 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- (CONTINUED) SOFTWARE & SERVICES -- (CONTINUED) *2 Intuit, Inc. ..................................... $ 82 *5 Microsoft Corp. .................................. 256 ------ 628 ------ TRANSPORTATION -- 4.4% 2 FedEx Corp. ...................................... 107 1 General Dynamics Corp. ........................... 53 @@0 Northrop Grumman Corp. ........................... 34 *1 Sabre Holdings Corp. ............................. 39 ------ 233 ------ Total common stocks............................... $5,100 ====== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 8.4% REPURCHASE AGREEMENT -- 8.4% $446 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 446 ------ Total short-term securities....................... $ 446 ======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $5,597)................. 95.8% $ 5,100 Total short-term securities (cost $446)........... 8.4 446 ------ -------- Total investment in securities (total cost $6,043)............................. 104.2 5,546 Cash, receivables and other assets................ 2.7 143 Payable for securities purchased.................. (6.9) (366) ------ -------- Net assets........................................ 100.0% $ 5,323 ====== ========
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 595 shares outstanding........................ $ 1 Capital surplus............................................. 5,868 Accumulated undistributed net investment income............. 1 Accumulated undistributed net realized loss on investments............................................ (49) Unrealized depreciation of investments...................... (498) -------- Net assets.................................................. $ 5,323 ========
Class IA Net asset value per share ($4,520 / 505 shares outstanding) (600,000 shares authorized)....... $8.95 ===== Class IB Net asset value per share ($803 / 90 shares outstanding) (200,000 shares authorized)....... $8.95 =====
* Non-income producing during the period. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero.
The accompanying notes are an integral part of this financial statement. 55 HARTFORD MIDCAP VALUE HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 96.8% BANKS -- 8.2% 98 Astoria Financial Corp. .......................... $ 3,147 146 Charter One Financial, Inc. ...................... 5,005 288 Hibernia Corp., Class A........................... 5,701 164 UnionBanCal Corp. ................................ 7,688 149 Webster Financial Corp. .......................... 5,694 -------- 27,235 -------- BUSINESS SERVICES -- 5.4% *+365 KPMG Consulting, Inc. ............................ 5,430 *85 Rent-A-Center, Inc. .............................. 4,954 *+279 United Rentals (North America), Inc. ............. 6,091 *466 UnitedGlobalCom, Inc., Class A.................... 1,281 -------- 17,756 -------- CHEMICALS -- 2.0% 90 Albemarle Corp. .................................. 2,764 96 Cambrex Corp. .................................... 3,834 -------- 6,598 -------- COMMUNICATIONS -- 0.0% *35 McLeodUSA, Inc., Class A.......................... 15 *+## 601 McLeodUSA, Inc., Class A.......................... -- -------- 15 -------- COMPUTERS & OFFICE EQUIPMENT -- 2.1% *386 Cirrus Logic, Inc. ............................... 2,890 *+650 Solectron Corp. .................................. 3,999 -------- 6,889 -------- CONSTRUCTION -- 2.6% 192 Granite Construction, Inc. ....................... 4,868 45 ITT Industries, Inc. ............................. 3,191 *+18 Toll Brothers, Inc. .............................. 539 -------- 8,598 -------- CONSUMER DURABLES -- 2.5% *340 Arrow Electronics, Inc. .......................... 7,045 +39 Lafarge North America, Inc. ...................... 1,378 -------- 8,423 -------- CONSUMER NON-DURABLES -- 4.7% +231 Callaway Golf Co. ................................ 3,665 *+174 Dean Foods Co. ................................... 6,501 *176 United Stationers, Inc. .......................... 5,350 -------- 15,516 -------- ELECTRICAL EQUIPMENT -- 2.0% 83 Rockwell Automation, Inc. ........................ 1,664 *+209 Teradyne, Inc. ................................... 4,902 -------- 6,566 --------
MARKET SHARES VALUE --------- -------- ELECTRONICS -- 7.3% 110 Ametek, Inc. ..................................... $ 4,083 *324 Flextronics International Ltd. ................... 2,312 191 Harman International Industries, Inc. ............ 9,422 *+382 Vishay Intertechnology, Inc. ..................... 8,402 -------- 24,219 -------- ENERGY & SERVICES -- 9.0% 44 Ashland, Inc. .................................... 1,790 75 Devon Energy Corp. ............................... 3,701 89 IHC Caland N.V. .................................. 5,307 *108 Noble Corp. ...................................... 4,153 330 Ocean Energy, Inc. ............................... 7,145 175 Petro-Canada...................................... 4,956 72 Unocal Corp. ..................................... 2,663 -------- 29,715 -------- FINANCIAL SERVICES -- 3.4% *162 Converium Holding AG, ADR......................... 4,177 +48 Legg Mason, Inc. ................................. 2,373 +130 Rouse Co. (The)................................... 4,274 -------- 10,824 -------- FOOD, BEVERAGE & TOBACCO -- 4.6% 237 Bunge Ltd. ....................................... 4,999 *+153 Constellation Brands, Inc. ....................... 4,883 +230 Sensient Technologies Corp. ...................... 5,230 -------- 15,112 -------- FOREST & PAPER PRODUCTS -- 3.5% 474 Abitibi-Consolidated, Inc. ....................... 4,371 *230 Packaging Corp. of America........................ 4,573 *117 Pactiv Corp. ..................................... 2,789 -------- 11,733 -------- INSURANCE -- 10.4% 88 Ace Ltd. ......................................... 2,768 157 Ambac Financial Group, Inc. ...................... 10,571 *114 Health Net, Inc. ................................. 3,042 *99 Oxford Health Plans, Inc. ........................ 4,590 +300 Reinsurance Group of America, Inc. ............... 9,231 +121 RenaissanceRe Holdings, Ltd. ..................... 4,425 -------- 34,627 -------- MACHINERY -- 4.4% *318 Axcelis Technologies, Inc. ....................... 3,596 114 Black & Decker Corp. (The)........................ 5,485 *183 Flowserve Corp. .................................. 5,456 -------- 14,537 -------- MEDIA & ENTERTAINMENT -- 4.3% *120 Argosy Gaming Co. ................................ 3,399 *+261 Bally Total Fitness Holding Corp. ................ 4,881 188 Readers Digest Assn. ............................. 3,514 *+161 Six Flags, Inc. .................................. 2,328 -------- 14,122 --------
The accompanying notes are an integral part of this financial statement. 56 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 2.5% 66 Bard (C.R.), Inc. ................................ $ 3,706 124 DENTSPLY International, Inc. ..................... 4,573 -------- 8,279 -------- METALS, MINERALS & MINING -- 1.8% 183 Engelhard Corp. .................................. 5,177 +64 Grupo IMSA S.A., ADR.............................. 799 -------- 5,976 -------- REAL ESTATE -- 1.7% 102 Liberty Property Trust (REIT)..................... 3,556 +99 Reckson Associates Realty Corp. (REIT)............ 2,470 -------- 6,026 -------- RUBBER & PLASTICS PRODUCTS -- 0.5% 42 Compagnie Generale des Etablissements Michelin, Class B............................... 1,700 -------- SOFTWARE & SERVICES -- 1.4% *+842 SONICblue, Inc. .................................. 867 *342 Sybase, Inc. ..................................... 3,609 -------- 4,476 -------- TRANSPORTATION -- 6.4% +92 CNF Transportation, Inc. ......................... 3,490 134 Canadian National Railway Co. .................... 6,936 *+60 Continental Airlines, Inc., Class B............... 953 *272 ExpressJet Holdings, Inc. ........................ 3,555 44 Textron, Inc. .................................... 2,073 198 Werner Enterprises, Inc. ......................... 4,226 -------- 21,233 -------- UTILITIES -- 6.1% +82 CMS Energy Corp. ................................. 904 35 FPL Group, Inc. .................................. 2,118 68 FirstEnergy Corp. ................................ 2,270 148 PPL Corp. ........................................ 4,902 81 Progress Energy, Inc. ............................ 4,218 *319 Republic Services, Inc. .......................... 6,076 20,488 -------- Total common stocks............................... $320,663 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 2.9% REPURCHASE AGREEMENT -- 2.9% $9,492 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 9,492 -------- Total short-term securities....................... $ 9,492 ========
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $319,908)......................... 96.8% $320,663 Total short-term securities (cost $9,492)................... 2.9 9,492 ------ -------- Total investment in securities (total cost $329,400)..................................... 99.7 330,155 Cash, receivables and other assets.......................... 1.1 3,833 Securities lending collateral (See Note 2(i))............... 10.4 34,349 Payable for securities purchased............................ (0.8) (2,740) Payable for Fund shares redeeemed........................... (0.0) (33) Securities lending collateral payable to brokers (See Note 2(i))........................................... (10.4) (34,349) Other liabilities........................................... (0.0) (1) ------ -------- Net assets.................................................. 100.0% $331,214 ====== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 330,652 shares outstanding.................... $ 331 Capital surplus............................................. 333,097 Accumulated undistributed net investment income............. 443 Accumulated undistributed net realized loss on investments............................................ (3,413) Unrealized appreciation of investments...................... 755 Unrealized appreciation of other assets and liabilities in foreign currencies........................................ 1 -------- Net assets.................................................. $331,214 ========
Class IA Net asset value per share ($262,943 / 262,405 shares outstanding) (600,000 shares authorized).................. $1.00 ===== Class IB Net asset value per share ($68,271 / 68,247 shares outstanding) (200,000 shares authorized).................. $1.00 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i) ## Illiquid Securities. (See Note 2(m))
The accompanying notes are an integral part of this financial statement. 57 HARTFORD FOCUS HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 93.0% BANKS -- 10.3% 51 Citigroup, Inc. .................................. $ 1,976 40 Fleet Boston Financial Corp. ..................... 1,294 35 Household International, Inc. .................... 1,740 ------- 5,010 ------- BUSINESS SERVICES -- 3.3% *85 Accenture Ltd. ................................... 1,615 ------- COMPUTERS & OFFICE EQUIPMENT -- 6.7% 95 Hewlett-Packard Co. .............................. 1,452 25 International Business Machines Corp. ............ 1,800 ------- 3,252 ------- CONSTRUCTION -- 3.0% 90 Halliburton Co. .................................. 1,435 ------- CONSUMER NON-DURABLES -- 2.1% *35 Safeway, Inc. .................................... 1,022 ------- DRUGS -- 15.3% 40 Abbott Laboratories............................... 1,506 *45 Genzyme Corp. .................................... 866 55 Pfizer, Inc. ..................................... 1,925 65 Schering-Plough Corp. ............................ 1,599 30 Wyeth............................................. 1,536 ------- 7,432 ------- ELECTRONICS -- 14.0% 77 General Electric Co. ............................. 2,235 80 Intel Corp. ...................................... 1,462 *61 Micron Technology, Inc. .......................... 1,237 *72 Taiwan Semiconductor Manufacturing Co.,. Ltd., ADR 941 39 Texas Instruments, Inc. .......................... 915 ------- 6,790 ------- FINANCIAL SERVICES -- 9.0% 30 Franklin Resources, Inc. ......................... 1,279 20 Goldman Sachs Group, Inc. (The)................... 1,467 40 Merrill Lynch & Co., Inc. ........................ 1,620 ------- 4,366 ------- FOOD, BEVERAGE & TOBACCO -- 2.2% 24 General Mills, Inc. .............................. 1,058 ------- INSURANCE -- 4.4% 31 American International Group, Inc. ............... 2,115 ------- METALS, MINERALS & MINING -- 3.1% 45 Alcoa, Inc. ...................................... 1,495 ------- RUBBER & PLASTICS PRODUCTS -- 3.3% 30 NIKE, Inc., Class B............................... 1,610 ------- SOFTWARE & SERVICES -- 11.6% *109 AOL Time Warner, Inc. ............................ 1,603 *40 Microsoft Corp. .................................. 2,188 *188 Oracle Corp. ..................................... 1,778 ------- 5,569 ------- TRANSPORTATION -- 4.7% 50 Boeing Co. (The).................................. 2,250 ------- Total common stocks............................... $45,019 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 11.7% REPURCHASE AGREEMENT -- 11.7% $5,674 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 5,674 ------- Total short-term securities....................... $ 5,674 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $54,383).......................... 93.0% $45,019 Total short-term securities (cost $5,674)................... 11.7 5,674 ------ ------- Total investment in securities (total cost $60,057)...................................... 104.7 50,693 Cash, receivables and other assets.......................... 0.5 259 Payable for securities purchased............................ (5.1) (2,491) Dividends payable........................................... (0.1) (28) Other liabilities........................................... (0.0) (9) ------ ------- Net assets.................................................. 100.0% $48,424 ====== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 59,277 shares outstanding..................... $ 59 Capital surplus............................................. 58,480 Accumulated undistributed net investment income............. 38 Distribution in excess of net realized gain on investments............................................... (789) Unrealized depreciation of investments...................... (9,364) ------- Net assets.................................................. $48,424 =======
Class IA Net asset value per share ($34,815 / 42,599 shares outstanding) (600,000 shares authorized).................. $0.82 ===== Class IB Net asset value per share ($13,609 / 16,678 shares outstanding) (200,000 shares authorized).................. $0.82 =====
* Non-income producing during the period.
The accompanying notes are an integral part of this financial statement. 58 HARTFORD GLOBAL LEADERS HLS FUND STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 96.5% AEROSPACE & DEFENSE -- 0.5% 680 British Aerospace PLC............................. $ 3,476 -------- APPAREL & TEXTILE -- 1.0% *77 Gucci Group N.V. ................................. 7,294 -------- BANKS -- 14.3% 344 American Express Co. ............................. 12,501 *+339 BNP Paribas S.A. ................................. 18,774 +3,851 Banca Monte Dei Paschi di Siena S.p.A. ........... 12,512 +85 Banco Popular Espanol S.A. ....................... 3,760 190 Bank One Corp. ................................... 7,315 104 Bank of America Corp. ............................ 7,303 +373 Bayerische Vereinsbank AG......................... 12,117 140 Citigroup, Inc. .................................. 5,413 *230 Credit Suisse Group............................... 7,292 283 Royal Bank of Scotland Group PLC.................. 8,012 242 Wachovia Corp. ................................... 9,236 -------- 104,235 -------- BUSINESS SERVICES -- 0.9% 1,074 Capita Group PLC.................................. 5,108 385 Rentokil Initial PLC.............................. 1,569 -------- 6,677 -------- CHEMICALS -- 2.6% 87 BASF AG........................................... 4,053 439 Imperial Chemical Industries PLC.................. 2,139 285 du Pont (E.I.) de Nemours & Co. .................. 12,641 -------- 18,833 -------- COMMUNICATIONS -- 7.0% 1,831 Koninklijke KPN N.V. ............................. 8,571 1 Nippon Telegraph & Telephone Corp. ............... 5,557 1,100 Nokia Oyj......................................... 16,101 *117 QUALCOMM, Inc. ................................... 3,225 *+680 Tandberg ASA...................................... 8,015 7,215 Vodafone Group PLC................................ 9,899 -------- 51,368 -------- COMPUTERS & OFFICE EQUIPMENT -- 8.3% 90 3M Co. ........................................... 11,009 *1,086 Cisco Systems, Inc. .............................. 15,150 *591 Dell Computer Corp. .............................. 15,449 1,255 Hewlett-Packard Co. .............................. 19,182 -------- 60,790 -------- CONSTRUCTION -- 1.8% 671 Halliburton Co. .................................. 10,693 35 Lennar Corp. ..................................... 2,166 -------- 12,859 -------- CONSUMER NON-DURABLES -- 1.8% 315 Gillette Co. (The)................................ 10,666 *121 Mattel, Inc. ..................................... 2,542 -------- 13,208 --------
MARKET SHARES VALUE --------- -------- DRUGS -- 8.6% *209 Amgen, Inc. ...................................... $ 8,745 255 AstraZeneca PLC................................... 10,542 126 Fujisawa Pharmaceutical Co., Ltd. ................ 3,017 *67 Gilead Sciences, Inc. ............................ 2,216 *253 IDEC Pharmaceuticals Corp. ....................... 8,972 *385 Millennium Pharmaceuticals, Inc................... 4,680 147 Pfizer, Inc. ..................................... 5,152 173 Pharmacia Corp. .................................. 6,494 105 Roche Holdings AG................................. 7,906 98 Wyeth............................................. 5,038 -------- 62,762 -------- ELECTRICAL EQUIPMENT -- 0.6% *3,208 Invensys PLC...................................... 4,364 -------- ELECTRONICS -- 6.7% 100 General Electric Co. ............................. 2,917 313 Koninklijke Philips Electronics N.V. ............. 8,736 87 Kyocera Corp. .................................... 6,359 489 Matsushita Electric Industrial Co., Ltd. ......... 6,671 165 STMicroelectronics N.V. .......................... 4,115 @67 Samsung Electronics Co., Ltd., GDR................ 9,254 66 Sony Corp. ....................................... 3,480 +177 Thales S.A. ...................................... 7,517 -------- 49,049 -------- ENERGY & SERVICES -- 4.8% +4,287 Cnooc Ltd. ....................................... 5,744 254 ExxonMobil Corp. ................................. 10,373 +103 TotalFinaElf S.A., B Shares....................... 16,720 +16 YUKOS, ADR........................................ 2,239 -------- 35,076 -------- FINANCIAL SERVICES -- 2.1% 319 AXA............................................... 5,833 29 Goldman Sachs Group, Inc. (The)................... 2,149 54 Merrill Lynch & Co., Inc. ........................ 2,187 1,033 Nikko Cordial Corp. .............................. 5,214 -------- 15,383 -------- FOOD, BEVERAGE & TOBACCO -- 5.1% 883 Imperial Tobacco Group............................ 14,294 149 PepsiCo., Inc. ................................... 7,172 71 Reynolds (R.J.) Tobacco Holdings, Inc. ........... 3,827 1,322 Scottish & Newcastle PLC.......................... 12,197 -------- 37,490 -------- FOREST & PAPER PRODUCTS -- 2.9% 285 International Paper Co. .......................... 12,412 +223 UPM-Kymmene Oyj................................... 8,763 -------- 21,175 -------- INSURANCE -- 0.6% *44 Aetna, Inc. ...................................... 2,111 37 Chubb Corp. (The)................................. 2,613 -------- 4,724 --------
The accompanying notes are an integral part of this financial statement. 59 HARTFORD GLOBAL LEADERS HLS FUND STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) MACHINERY -- 2.8% *125 American Standard Cos., Inc. ..................... $ 9,380 227 Deere & Co. ...................................... 10,869 -------- 20,249 -------- MEDIA & ENTERTAINMENT -- 4.1% +1,326 Mediaset S.p.A. .................................. 10,264 +294 News Corp. Ltd., ADR.............................. 6,730 189 Promotora de Informaciones S.A. .................. 1,596 +350 Societe Television Francaise 1.................... 9,363 *45 Viacom, Inc., Class B............................. 2,014 -------- 29,967 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.2% *61 Boston Scientific Corp. .......................... 1,786 -------- METALS, MINERALS & MINING -- 2.9% *+427 Arcelor........................................... 6,066 *+432 Freeport-McMoRan Copper & Gold, Inc., Class B......................................... 7,704 *+84 Inco Ltd.......................................... 1,911 +199 SFK AB............................................ 5,150 -------- 20,831 -------- RESEARCH & TESTING FACILITIES -- 1.0% +140 Linde AG.......................................... 7,131 -------- RETAIL -- 6.7% *53 Gucci Group....................................... 4,935 171 ITO-YOKADO Co., Ltd. ............................. 8,560 47 Lowe's Cos., Inc. ................................ 2,125 479 Marks & Spencer PLC............................... 2,720 *257 McDonald's Corp. ................................. 7,323 *509 Staples, Inc. .................................... 10,031 70 Wal-Mart Stores, Inc. ............................ 3,867 *150 eBay, Inc. ....................................... 9,249 -------- 48,810 -------- SOFTWARE & SERVICES -- 3.8% *143 Microsoft Corp. .................................. 7,822 *1,689 Oracle Corp. ..................................... 15,999 *114 Trend Micro, Inc. ................................ 3,172 -------- 26,993 -------- TRANSPORTATION -- 5.4% +138 Canadian National Railway Co. .................... 7,143 +118 DaimlerChrysler AG................................ 5,725 77 Harley-Davidson, Inc. ............................ 3,932 76 Northrop Grumman Corp. ........................... 9,488 1,401 P&O Princess Cruises PLC.......................... 8,840 +74 Peugeot Citroen S.A. ............................. 3,830 -------- 38,958 -------- Total common stocks (cost $709,431)............... $703,488 ======== MARKET SHARES VALUE --------- -------- CONVERTIBLE PREFERRED STOCKS -- 0.7% COMMUNICATIONS -- 0.7% @@ 0 Nortel Networks Corp. (Communications)............ $ 5,054 -------- Total convertible preferred stocks (cost $4,743)................................... $ 5,054 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 4.6% REPURCHASE AGREEMENT -- 4.6% $33,465 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 33,465 -------- Total short-term securities (cost $33,465)........ $ 33,465 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $747,639) -- see accompanying portfolio....... $742,007 Receivable for securities sold.............................. 52,305 Receivable for Fund shares sold............................. 137 Receivable for dividends and interest....................... 1,213 Security lending collateral................................. 104,980 Cash and other assets....................................... 79 -------- Total assets................................................ 900,721 ======== LIABILITIES Payable for securities purchased............................ 48,570 Payable for Fund shares redeemed............................ 17,830 Security lending collateral payable to brokers.............. 104,980 Other liabilities........................................... 115 -------- Total liabilities........................................... 171,495 ======== Net assets.................................................. $729,226 ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 550,990 shares outstanding.................... $ 551 Capital surplus............................................. 915,529 Accumulated undistributed net investment income............. 3,650 Accumulated undistributed net realized loss on investments............................................ (184,994) Unrealized depreciation of investments...................... (5,632) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@.............................. 33 Unrealized appreciation of other assets and liabilities in foreign currencies........................................ 89 -------- Net assets.................................................. $729,226 ========
Class IA Net asset value per share ($676,758 / 511,235 shares outstanding) (600,000 shares authorized).................................... $1.32 ===== Class IB Net asset value per share ($52,468 / 39,755 shares outstanding) (200,000 shares authorized).................................... $1.32 =====
The accompanying notes are an integral part of this financial statement. 60 -------------------------------------------------------------------------------- * Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $9,254 or 1.3% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero.
@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- British Pound (Buy) $2,160 $2,171 7/3/2002 $(11) British Pound (Sell) 988 990 7/1/2002 2 British Pound (Sell) 794 796 7/2/2002 2 EURO (Buy) 1,609 1,600 7/1/2002 9 EURO (Buy) 4,910 4,899 7/2/2002 11 EURO (Buy) 709 711 7/3/2002 (2) Japanese Yen (Sell) 4,426 4,450 7/1/2002 24 Swiss Franc (Buy) 945 947 7/3/2002 (2) ---- $ 33 ====
The accompanying notes are an integral part of this financial statement. 61 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 91.1% AUSTRALIA -- 2.2% 801 BHP Billiton Ltd. (Metals, Minerals & Mining)................................................. $ 4,631 2,660 News Corp., Ltd. (The) (Media & Entertainment).......................................... 14,452 -------- 19,083 -------- BELGIUM -- 1.0% *412 Fortis (Financial Services)................................. 8,772 -------- BRAZIL -- 0.3% 134 Unibanco GDR (Financial Services)........................... 2,218 -------- CANADA -- 2.2% 520 Abitibi-Consolidated, Inc. (Forest & Paper Products)........................................... 4,796 535 Bombardier, Inc. (Transportation)........................... 4,430 196 Canadian National Railway Co. (Transportation).......................................... 10,127 -------- 19,353 -------- FINLAND -- 2.3% 965 Nokia Oyj (Communications).................................. 14,131 +162 UPM-Kymmene Oyj (Forest & Paper Products)........................................... 6,392 -------- 20,523 -------- FRANCE -- 14.6% +487 AXA (Financial Services).................................... 8,908 +223 Aventis S.A. (Drugs)........................................ 15,770 *+401 BNP Paribas S.A. (Banks).................................... 22,200 +258 CNP Assurances (Financial Services)......................... 10,573 +99 Carrefour S.A. (Retail)..................................... 5,366 +48 L'Oreal (Consumer Non-Durables)............................. 3,747 *1,308 Orange S.A. (Communications)................................ 6,020 +172 Peugeot Citroen S.A. (Transportation)....................... 8,922 *+175 Publicis Groupe (Business Services)......................... 4,828 +59 Schneider Electric S.A. (Electrical Equipment).................................... 3,194 +339 Societe Television Francaise 1 (Media & Entertainment).......................................... 9,087 +151 TotalFinaElf S.A., B Shares (Energy & Services)............................................... 24,438 @37 Vivendi Environnement (Transportation)...................... 1,152 121 Vivendi Environnement (Transportation)...................... 3,718 -------- 127,923 --------
MARKET SHARES VALUE --------- -------- GERMANY -- 6.2% +105 Adidas AG (Apparel & Textile)............................... $ 8,573 103 BASF AG (Chemicals)......................................... 4,762 +338 Bayerische Vereinsbank AG (Banks)........................... 10,975 +190 DaimlerChrysler AG (Transportation)......................... 9,180 87 Infineon Technologies AG (Computers & Office Equipment)......................................... 1,352 +255 Metro AG (Retail)........................................... 7,819 +59 Sap AG (Software & Services)................................ 5,847 +212 ThyssenKrupp AG (Metals, Minerals. & Mining) 3,251 38 Wella AG (Consumer Durables)................................ 2,305 -------- 54,064 -------- HONG KONG -- 2.2% 645 Hang Seng Bank Ltd. (Banks)................................. 6,904 *3,226 Johnson Electric Holdings Ltd. (Machinery)............................................... 3,826 533 Sun Hung Kai Properties (Real Estate)....................... 4,049 948 Swire Pacific Ltd. (Consumer Services)...................... 4,850 -------- 19,629 -------- IRELAND -- 2.2% 711 Allied Irish Banks PLC (Banks).............................. 9,427 *1,542 Ryanair Holdings PLC (Transportation)....................... 9,424 -------- 18,851 -------- ITALY -- 4.0% +1,299 Autostrade S.p.A. (Transportation).......................... 10,763 +2,954 Banca Monte Dei Paschi di Siena S.p.A. (Banks)................................................... 9,599 +395 ENI S.p.A. (Energy & Services).............................. 6,282 +1,116 Mediaset S.p.A. (Media & Entertainment)..................... 8,641 -------- 35,285 -------- JAPAN -- 14.6% 205 Aeon Co., Ltd. (Retail)..................................... 5,473 +276 Eisai Co., Ltd. (Medical Instruments & Supplies)............................................... 7,103 @46 Fujisawa Pharmaceutical Co., Ltd. (Drugs)................... 1,092 202 Fujisawa Pharmaceutical Co., Ltd. (Drugs)................... 4,845 813 Fujitsu Ltd. (Electronics).................................. 5,671 48 Hoya Corp. (Medical Instruments & Supplies)............................................... 3,474 271 Kao Corp. (Consumer Non-Durables)........................... 6,240 1,614 Komatsu Ltd. (Machinery).................................... 5,777 60 Kyocera Corp. (Electronics)................................. 4,380 +710 Matsushita Electric Industrial Co., Ltd. (Electronics)............................................. 9,685 +640 Mitsubishi Estate Co., Ltd. (Real Estate)................... 5,233 +871 Nikko Cordial Corp. (Financial Services).................... 4,398 2,961 Nippon Steel Corp. (Metals, Minerals & Mining)................................................. 4,620 @@0 Nippon Unipac Holding (Forest & Paper Products)........................................... 941 +342 Pioneer Corp. (Electronics)................................. 6,121 +149 Promise Co., Ltd. (Financial Services)...................... 7,502 465 Shionogi & Co., Ltd. (Drugs)................................ 5,932 *6 Sky Perfect (Communications)................................ 6,335 190 Sony Corp. (Electronics).................................... 10,031 1,197 Sumitomo Bank (Banks)....................................... 5,844 52 Takefuji Corp. (Financial Services)......................... 3,635 *192 Trend Micro, Inc. (Software & Services)..................... 5,366
The accompanying notes are an integral part of this financial statement. 62 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) JAPAN -- (CONTINUED) 284 Ushio, Inc. (Business Services)............................. $ 3,374 +271 Yamato Transport Co., Ltd. (Transportation).......................................... 4,940 -------- 128,012 -------- LUXEMBOURG -- 1.5% *+904 Arcelor (Metals, Minerals & Mining)......................... 12,836 -------- MALAYSIA -- 0.5% *1,590 Resorts World Berhad (Hotels & Gaming)...................... 4,435 -------- NETHERLANDS -- 2.8% 110 Aegon N.V. (Insurance)...................................... 2,293 362 ING Groep N.V. (Insurance).................................. 9,295 @592 Koninklijke KPN N.V. (Communications)....................... 2,773 2,090 Koninklijke KPN N.V. (Communications)....................... 9,783 -------- 24,144 -------- RUSSIA -- 0.9% **225 OAO Gazprom ADR (Energy & Services)......................... 3,656 +31 YUKOS, ADR (Energy & Services).............................. 4,257 -------- 7,913 -------- SINGAPORE -- 0.7% 242 DBS Group Holdings Ltd. (Banks)............................. 1,701 @592 DBS Group Holdings Ltd. (Banks)............................. 4,157 -------- 5,858 --------
MARKET SHARES VALUE --------- -------- SOUTH AFRICA -- 0.2% 32 Anglogold Ltd. (Metals, Minerals & Mining)................................................. $ 1,706 -------- SOUTH KOREA -- 1.2% *45 Kookmin Bank (Banks)........................................ 2,165 *64 Kookmin Bank ADR (Banks).................................... 3,151 *18 Samsung Electronics Co., Ltd. (Electronics)............................................. 4,803 -------- 10,119 -------- SPAIN -- 2.9% +71 Banco Popular Espanol S.A. (Banks).......................... 3,155 +385 Endesa S.A. (Utilities)..................................... 5,587 +582 Iberdrola S.A. (Utilities).................................. 8,478 *375 Industria de Diseno Textil S.A. (Apparel & Textile)................................................ 7,912 -------- 25,132 -------- SWEDEN -- 2.6% 876 Gambro AB, A Shares (Medical Instruments & Supplies)................................... 5,765 355 Sparbanken Sverige AB, A Shares (Banks)..................... 4,503 1,014 Swedish Match AB (Consumer Non- Durables)................................................. 8,386 +208 Volvo AB (Transportation)................................... 4,302 -------- 22,956 -------- SWITZERLAND -- 6.3% *138 Converium Holding AG, ADR (Financial Services)...................................... 3,546 *495 Credit Suisse Group (Banks)................................. 15,730 46 Nestle S.A. (Food, Beverage & Tobacco)...................... 10,767 109 Novartis AG (Drugs)......................................... 4,785 73 Roche Holdings AG (Drugs)................................... 5,534 433 STMicroelectronics N.V. (Electronics)....................... 10,798 +6 Serono S.A., Class B (Drugs)................................ 3,697 -------- 54,857 -------- TAIWAN -- 2.5% *4,661 China Steel Corp. (Metals, Minerals & Mining)................................................. 2,400 *5,354 Chinatrust Financial Holding Co., Ltd. (Banks)................................................... 4,728 3,029 Formosa Chemicals & Fiber Corp. (Chemicals)............................................... 2,756 *796 Quanta Computer, Inc. (Computers & Office Equipment)......................................... 2,240 *284 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Electronics)................................... 3,689 *4,837 United Microelectronics Corp. (Electronics)................. 5,806 *+50 United Microelectronics Corp., ADR (Electronics)............................................. 365 -------- 21,984 -------- THAILAND -- 0.8% *4,639 Siam Commercial Bank Public Co., Ltd. (Banks)................................................... 3,267 *4,646 Thai Farmers Bank Public Co., Ltd. (Banks)................................................... 3,720 -------- 6,987 -------- UNITED KINGDOM -- 15.7% 429 AstraZeneca PLC (Drugs)..................................... 17,729 2,037 BP PLC (Energy & Services).................................. 17,092 2,519 British Aerospace PLC (Aerospace & Defense)................................................ 12,881 2,712 British Airways PLC (Transportation)........................ 7,720 @234 British Sky Broadcasting (Media & Entertainment).......................................... 2,291 *249 British Sky Broadcasting (Media & Entertainment).......................................... 2,348 383 CGNU PLC (Financial Services)............................... 3,079 511 Imperial Tobacco Group (Food, Beverage & Tobacco)................................................ 8,274 *5,763 Invensys PLC (Electrical Equipment)......................... 7,841 735 Lloyds Tsb Group PLC (Insurance)............................ 7,308 678 Marks & Spencer PLC (Retail)................................ 3,851 408 P&O Princess Cruises PLC (Transportation).......................................... 2,576 246 Rio Tinto PLC (Metals, Minerals & Mining)................................................. 4,496 484 Royal Bank of Scotland Group PLC (Banks)................................................... 13,722 1,175 Scottish & Newcastle PLC (Food, Beverage & Tobacco)....................................... 10,843
The accompanying notes are an integral part of this financial statement. 63 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 10,955 Vodafone Group PLC (Communications)......................... $ 15,030 -------- 137,081 -------- UNITED STATES OF AMERICA -- 0.7% *287 Accenture Ltd. (Business Services).......................... 5,457 42 Schlumberger Ltd. (Energy & Services)....................... 1,951 -------- 7,408 -------- Total common stocks......................................... $797,129 ======== CONVERTIBLE PREFERRED STOCKS -- 0.7% CANADA -- 0.7% @@0 Nortel Networks Corp. (Communications)...................... 6,028 -------- Total convertible preferred stocks.......................... $ 6,028 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 13.7% REPURCHASE AGREEMENT -- 13.7% $120,331 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02....................................... $120,331 -------- Total short-term securities................................. $120,331 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $802,828)......................... 91.1% $797,129 Total convertible preferred stocks (cost $5,657)............................................. 0.7 6,028 Total short-term securities (cost $120,331)................. 13.7 120,331 ----- -------- Total investment in securities (total cost $928,816)..................................... 105.5 923,488 Cash, receivables and other assets.......................... 3.9 35,184 Securities lending collateral (See Note 2(i))............... 21.7 190,147 Payable for securities purchased............................ (2.0) (17,832) Payable for Fund shares redeemed............................ (7.4) (65,114) Securities lending collateral payable to brokers (See Note 2(i))........................................... (21.7) (190,147) Other liabilities........................................... (0.0) (361) ----- -------- Net assets.................................................. 100.0% $875,365 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,500,000 shares authorized; 951,605 shares outstanding............. $ 95,161 Capital surplus............................................. 1,070,613 Accumulated undistributed net investment loss............... 7,092 Accumulated undistributed net realized loss on investments............................................ (292,518) Unrealized depreciation of investments...................... (5,328) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))@@@.............................. 65 Unrealized appreciation of other assets and liabilities in foreign currencies..................................... 280 ----------- Net assets.................................................. $ 875,365 ===========
MARKET VALUE ------ Class IA Net asset value per share ($851,069 / 925,166 shares outstanding) (1,875,000 shares authorized)................................... $0.92 ===== Class IB Net asset value per share ($24,296 / 26,439 shares outstanding) (625,000 shares authorized)................................... $0.92 =====
DIVERSIFICATION BY INDUSTRY: Aerospace & Defense....................... 1.5% $ 12,881 Apparel & Textile......................... 1.9 16,485 Banks..................................... 14.3 124,948 Business Services......................... 1.6 13,659 Chemicals................................. 0.9 7,518 Communications............................ 6.2 54,072 Computers & Office Equipment.............. 0.4 3,592 Consumer Durables......................... 0.3 2,305 Consumer Non-Durables..................... 2.1 18,373 Consumer Services......................... 0.6 4,850 Drugs..................................... 6.8 59,384 Electrical Equipment...................... 1.3 11,035 Electronics............................... 7.0 61,349 Energy & Services......................... 6.6 57,676 Financial Services........................ 6.0 52,631 Food, Beverage & Tobacco.................. 3.4 29,884 Forest & Paper Products................... 1.4 12,129 Hotels & Gaming........................... 0.5 4,435 Insurance................................. 2.2 18,896 Machinery................................. 1.1 9,603 Media & Entertainment..................... 4.2 36,819 Medical Instruments & Supplies............ 1.9 16,342 Metals, Minerals & Mining................. 3.9 33,940 Real Estate............................... 1.1 9,282 Retail.................................... 2.5 22,509 Software & Services....................... 1.2 11,213 Transportation............................ 8.7 77,254 Utilities................................. 1.5 14,065 ---- -------- Total common stocks.................... 91.1% $797,129 ==== ========
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $11,465 or 1.3% of net assets. ** Securities contain some restriction as to public resale. At June 30, 2002, the market value of these securities amounted to $3,656 or 0.4% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares round to zero.
The accompanying notes are an integral part of this financial statement. 64 -------------------------------------------------------------------------------- @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- British Pound (Buy) $ 799 $ 803 7/3/2002 $ (4) British Pound (Sell) 2,644 2,651 7/2/2002 7 Canadian Dollar (Buy) 1,910 1,921 7/3/2002 (11) EURO (Buy) 1,708 1,698 7/1/2002 10 EURO (Buy) 4,499 4,490 7/2/2002 9 EURO (Sell) 28 29 7/3/2002 1 Japanese Yen (Buy) 683 684 7/2/2002 (1) Japanese Yen (Sell) 8,996 9,045 7/1/2002 49 Japanese Yen (Sell) 720 725 7/3/2002 5 Sinapore Dollar (Sell) 2,804 2,811 7/1/2002 7 Sinapore Dollar (Sell) 805 804 7/2/2002 (1) Sinapore Dollar (Sell) 28 29 7/3/2002 1 South African Rand (Sell) 1,370 1,355 7/5/2002 (15) Swiss Franc (Buy) 17 16 7/2/2002 1 Swiss Franc (Sell) 2,292 2,299 7/3/2002 7 ---- $ 65 ====
The accompanying notes are an integral part of this financial statement. 65 HARTFORD STOCK HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------- ----------- COMMON STOCKS -- 96.7% AEROSPACE & DEFENSE -- 0.4% *2,378 General Motors Corp., Class H..................... $ 24,734 ----------- BANKS -- 10.3% 997 American Express Co. ............................. 36,222 2,400 Bank One Corp. ................................... 92,352 5,117 Citigroup, Inc. .................................. 198,303 2,796 Fleet Boston Financial Corp. ..................... 90,457 1,279 Household International, Inc. .................... 63,586 3,118 State Street Corp. ............................... 139,383 2,330 U.S. Bancorp...................................... 54,406 ----------- 674,709 ----------- BUSINESS SERVICES -- 0.8% *2,847 Accenture Ltd. ................................... 54,087 ----------- CHEMICALS -- 1.6% 3,000 Dow Chemical Co. (The)............................ 103,140 ----------- COMMUNICATIONS -- 1.0% 2,115 SBC Communications, Inc. ......................... 64,502 ----------- COMPUTERS & OFFICE EQUIPMENT -- 5.0% 301 3M Co. ........................................... 37,060 *5,476 Cisco Systems, Inc. .............................. 76,385 5,658 Hewlett-Packard Co. .............................. 86,451 1,752 International Business Machines Corp. .......................................... 126,122 ----------- 326,018 ----------- CONSTRUCTION -- 0.9% 3,500 Halliburton Co. .................................. 55,790 ----------- CONSUMER NON-DURABLES -- 2.8% 1,300 Estee Lauder Cos., Inc. (The), Class A......................................... 45,760 600 Gillette Co. (The)................................ 20,322 *3,936 Safeway, Inc. .................................... 114,883 ----------- 180,965 ----------- DRUGS -- 11.3% 2,700 Abbott Laboratories............................... 101,655 *1,200 Amgen, Inc. ...................................... 50,256 1,450 Eli Lilly & Co. .................................. 81,780 *2,300 Genzyme Corp...................................... 44,252 4,688 Pfizer, Inc. ..................................... 164,077 2,403 Pharmacia Corp. .................................. 89,995 4,292 Schering-Plough Corp. ............................ 105,581 1,983 Wyeth............................................. 101,540 ----------- 739,136 ----------- ELECTRICAL EQUIPMENT -- 0.2% *550 Waters Corp. ..................................... 14,685 ----------- ELECTRONICS -- 7.6% 1,268 Emerson Electric Co. ............................. 67,856 9,524 General Electric Co. ............................. 276,675 6,336 Intel Corp. ...................................... 115,753 *1,560 Micron Technology, Inc. .......................... 31,543 200 Texas Instruments, Inc. .......................... 4,740 ----------- 496,567 ----------- ENERGY & SERVICES -- 7.6% 1,428 Anadarko Petroleum Corp. ......................... 70,386 1,258 ChevronTexaco Corp. .............................. 111,352 5,484 ExxonMobil Corp. ................................. 224,393 1,889 Schlumberger Ltd. ................................ 87,852 ----------- 493,983 -----------
MARKET SHARES VALUE ----------- ----------- FINANCIAL SERVICES -- 4.7% 3,112 Franklin Resources, Inc. ......................... $ 132,696 917 Goldman Sachs Group, Inc. (The)................... 67,247 2,668 Merrill Lynch & Co., Inc. ........................ 108,058 ----------- 308,001 ----------- FOOD, BEVERAGE & TOBACCO -- 1.3% 1,703 PepsiCo., Inc. ................................... 82,094 ----------- FOREST & PAPER PRODUCTS -- 2.6% 900 International Paper Co. .......................... 39,222 1,617 Kimberly-Clark Corp. ............................. 100,223 500 Weyerhaeuser Co. ................................. 31,925 ----------- 171,370 ----------- HEALTH SERVICES -- 1.7% 2,315 HCA, Inc. ........................................ 109,963 ----------- INSURANCE -- 5.1% 2,720 American International Group, Inc. ............... 185,586 1,542 Marsh & McLennan Cos., Inc. ...................... 148,996 ----------- 334,582 ----------- MACHINERY -- 1.4% 460 Caterpillar, Inc. ................................ 22,497 1,000 United Technologies Corp. ........................ 67,900 ----------- 90,397 ----------- MEDIA & ENTERTAINMENT -- 3.9% 2,650 Gannett Co., Inc. ................................ 201,135 *5,454 Liberty Media Corp., Class A...................... 54,544 ----------- 255,679 ----------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.6% 757 Johnson & Johnson................................. 39,545 ----------- METALS, MINERALS & MINING -- 2.9% 3,009 Alcoa, Inc. ...................................... 99,745 1,200 Illinois Tool Works, Inc. ........................ 81,960 192 Masco Corp. ...................................... 5,192 ----------- 186,897 ----------- RETAIL -- 4.6% 3,300 CVS Corp. ........................................ 100,980
The accompanying notes are an integral part of this financial statement. 66 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------- ----------- COMMON STOCKS -- (CONTINUED) RETAIL -- (CONTINUED) *2,028 Costco Wholesale Corp. ........................... $ 78,306 1,847 Home Depot, Inc. (The)............................ 67,829 1,003 Wal-Mart Stores, Inc. ............................ 55,164 ----------- 302,279 ----------- RUBBER & PLASTICS PRODUCTS -- 1.3% +1,550 NIKE, Inc., Class B............................... 83,163 ----------- SOFTWARE & SERVICES -- 10.4% *9,499 AOL Time Warner, Inc. ............................ 139,732 2,100 Automatic Data Processing, Inc. .................. 91,455 *1,039 Computer Sciences Corp. .......................... 49,655 *5,759 Microsoft Corp. .................................. 315,028 *9,092 Oracle Corp. ..................................... 86,101 ----------- 681,971 ----------- TRANSPORTATION -- 4.0% 2,703 Boeing Co. (The).................................. 121,626 1,447 FedEx Corp. ...................................... 77,286 517 Northrop Grumman Corp. ........................... 64,613 ----------- 263,525 ----------- UTILITIES -- 2.7% 326 Duke Energy Corp. ................................ 10,129 1,815 Exelon Corp. ..................................... 94,930 900 FPL Group, Inc. .................................. 53,991 *686 Waste Management, Inc. ........................... 17,878 176,928 ----------- Total common stocks............................... $ 6,314,710 =========== PRINCIPAL AMOUNT ----------- SHORT-TERM SECURITIES -- 3.4% REPURCHASE AGREEMENT -- 3.4% $ 223,626 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 223,626 ----------- Total short-term securities....................... $ 223,626 ===========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $6,923,232)............. 96.7% $6,314,710 Total short-term securities (cost $223,626)....... 3.4 223,626 ------ ---------- Total investment in securities (total cost $7,146,858)......................... 100.1 6,538,336 Cash, receivables and other assets................ 0.2 9,466 Securities lending collateral (See Note 2(i))..... 0.8 49,290 Payable for securities purchased.................. (0.2) (10,241) Payable for Fund shares redeeemed................. (0.1) (4,943) Securities lending collateral payable to brokers (See Note 2(i))...................... (0.8) (49,290) Other liabilities................................. (0.0) (358) ------ ---------- Net assets........................................ 100.0% $6,532,260 ====== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 3,000,000 shares authorized; 1,654,162 shares outstanding.............................. $ 165,416 Capital surplus................................... 7,478,814 Accumulated undistributed net investment income... 31,395 Accumulated undistributed net realized loss on investments.................................. (534,843) Unrealized depreciation of investments............ (608,522) ----------- Net assets........................................ $ 6,532,260 ===========
Class IA Net asset value per share ($6,255,698 / 1,584,008 shares outstanding) (2,250,000 shares authorized)................. $3.95 ===== Class IB Net asset value per share ($276,562 / 70,154 shares outstanding) (750,000 shares authorized)................................... $3.94 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 67 HARTFORD GROWTH AND INCOME HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE -------- --------- COMMON STOCKS -- 98.5% BANKS -- 13.6% 118 Bank of America Corp. ............................ $ 8,331 589 Citigroup, Inc. .................................. 22,806 173 Fannie Mae........................................ 12,759 88 Golden West Financial Corp. ...................... 6,046 356 KeyCorp. ......................................... 9,716 162 UnionBanCal Corp. ................................ 7,580 303 Wachovia Corp. ................................... 11,554 --------- 78,792 --------- CHEMICALS -- 2.1% 109 Cambrex Corp. .................................... 4,383 182 du Pont (E.I.) de Nemours & Co. .................. 8,067 --------- 12,450 --------- COMMUNICATIONS -- 2.9% 688 AT&T Corp. ....................................... 7,362 *344 AT&T Wireless Services, Inc. ..................... 2,015 180 Verizon Communications, Inc. ..................... 7,239 --------- 16,616 --------- COMPUTERS & OFFICE EQUIPMENT -- 6.8% *879 Cisco Systems, Inc. .............................. 12,262 *136 Dell Computer Corp. .............................. 3,560 497 Hewlett-Packard Co. .............................. 7,589 96 International Business Machines Corp. ............ 6,876 *47 International Game Technology..................... 2,676 *122 Lexmark International, Inc. ...................... 6,620 --------- 39,583 --------- CONSTRUCTION -- 0.9% 336 Halliburton Co. .................................. 5,351 --------- CONSUMER NON-DURABLES -- 3.8% 121 Gillette Co. (The)................................ 4,112 192 McKesson Corp. ................................... 6,278 35 Procter & Gamble Co. (The)........................ 3,090 *288 Safeway, Inc. .................................... 8,392 --------- 21,872 --------- DRUGS -- 10.8% 330 Abbott Laboratories............................... 12,421 108 Eli Lilly & Co. .................................. 6,074 *198 Genzyme Corp. .................................... 3,800 *31 Immunex Corp. .................................... 684 58 Merck & Co., Inc. ................................ 2,947 117 Pfizer, Inc. ..................................... 4,081 340 Pharmacia Corp. .................................. 12,745 404 Schering-Plough Corp. ............................ 9,926 *203 Watson Pharmaceuticals, Inc. ..................... 5,132 96 Wyeth............................................. 4,931 --------- 62,741 --------- ELECTRICAL EQUIPMENT -- 0.4% *55 KLA-Tencor Corp. ................................. 2,424 --------- ELECTRONICS -- 4.6% 513 General Electric Co. ............................. 14,908 402 Intel Corp. ...................................... 7,341 *119 Micron Technology, Inc. .......................... 2,396 *85 Xilinx, Inc. ..................................... 1,898 --------- 26,543 ---------
MARKET SHARES VALUE -------- --------- ENERGY & SERVICES -- 6.4% 53 Amerada Hess Corp. ............................... $ 4,340 158 Burlington Resources, Inc. ....................... 6,008 129 ChevronTexaco Corp. .............................. 11,420 315 ExxonMobil Corp. ................................. 12,873 75 Sunoco, Inc. ..................................... 2,672 --------- 37,313 --------- FINANCIAL SERVICES -- 2.9% 51 Goldman Sachs Group, Inc. (The)................... 3,741 71 Lehman Brothers Holdings, Inc. ................... 4,451 210 Merrill Lynch & Co., Inc. ........................ 8,521 --------- 16,713 --------- FOOD, BEVERAGE & TOBACCO -- 4.0% 247 Pepsi Bottling Group, Inc. (The).................. 7,601 139 PepsiCo., Inc. ................................... 6,709 200 Philip Morris Cos., Inc. ......................... 8,745 --------- 23,055 --------- FOREST & PAPER PRODUCTS -- 1.8% 170 Kimberly-Clark Corp. ............................. 10,515 --------- HEALTH SERVICES -- 0.6% 69 HCA, Inc. ........................................ 3,292 --------- INSURANCE -- 5.5% 174 Ambac Financial Group, Inc. ...................... 11,696 117 American International Group, Inc. ............... 7,979 *58 Anthem, Inc. ..................................... 3,887 87 Marsh & McLennan Cos., Inc. ...................... 8,424 --------- 31,986 --------- MACHINERY -- 1.7% *149 Applied Materials, Inc. .......................... 2,834 *25 SPX Corp.......................................... 2,949 62 United Technologies Corp. ........................ 4,176 --------- 9,959 --------- MEDIA & ENTERTAINMENT -- 1.0% 16 McClatchy Co. (The)............................... 1,054 *213 USA Networks, Inc. ............................... 4,993 --------- 6,047 --------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.1% 194 Becton, Dickinson & Co. .......................... 6,676 --------- METALS, MINERALS & MINING -- 3.5% 127 Engelhard Corp. .................................. 3,608
The accompanying notes are an integral part of this financial statement. 68 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------- --------- COMMON STOCKS -- (CONTINUED) METALS, MINERALS & MINING -- (CONTINUED) *164 Freeport-McMoRan Copper & Gold, Inc., Class B......................................... $ 2,918 86 Lockheed Martin Corp. ............................ 6,005 144 Masco Corp. ...................................... 3,898 116 Precision Castparts Corp. ........................ 3,815 --------- 20,244 --------- RESEARCH & TESTING FACILITIES -- 0.5% *64 Cephalon, Inc. ................................... 2,906 --------- RETAIL -- 9.8% *101 Bed Bath & Beyond, Inc. .......................... 3,816 120 CVS Corp. ........................................ 3,663 168 Dillard's, Inc., Class A.......................... 4,419 214 Home Depot, Inc. (The)............................ 7,869 *130 Kroger Co. (The).................................. 2,585 146 Lowe's Cos., Inc. ................................ 6,628 *153 McDonald's Corp. ................................. 4,361 *192 Staples, Inc. .................................... 3,778 169 Target Corp. ..................................... 6,424 239 Wal-Mart Stores, Inc. ............................ 13,136 --------- 56,679 --------- RUBBER & PLASTICS PRODUCTS -- 1.7% 93 NIKE, Inc., Class B............................... 5,000 *121 Sealed Air Corp. ................................. 4,869 --------- 9,869 --------- SOFTWARE & SERVICES -- 6.5% *404 AOL Time Warner, Inc. ............................ 5,946 272 First Data Corp. ................................. 10,107 *364 Microsoft Corp. .................................. 19,922 *217 Oracle Corp. ..................................... 2,053 --------- 38,028 --------- TRANSPORTATION -- 2.5% 102 CSX Corp. ........................................ 3,568 *79 Continental Airlines, Inc., Class B............... 1,248 103 FedEx Corp. ...................................... 5,511 116 USFreightways Corp. .............................. 4,374 --------- 14,701 --------- UTILITIES -- 3.1% 77 Dominion Resources, Inc. ......................... 5,111 *204 Edison International.............................. 3,463 185 Exelon Corp. ..................................... 9,662 --------- 18,236 --------- Total common stocks............................... $ 572,591 =========
PRINCIPAL MARKET AMOUNT VALUE --------- --------- SHORT-TERM SECURITIES -- 1.0% REPURCHASE AGREEMENT -- 1.0% $ 5,905 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 5,905 --------- U.S. TREASURY BILLS -- 0.0% 100 1.846% due 08/08/02............................... 100 --------- Total short-term securities....................... $ 6,005 =========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $630,208)............... 98.5% $572,591 Total short-term securities (cost $6,005)......... 1.0 6,005 ------ -------- Total investment in securities (total cost $636,213)........................... 99.5 578,596 Cash, receivables and other assets................ 0.8 4,153 Payable for securities purchased.................. (0.3) (1,516) Other liabilities................................. (0.0) (53) ------ -------- Net assets........................................ 100.0% $581,180 ====== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 597,942 shares outstanding... $ 598 Capital surplus................................... 741,535 Accumulated undistributed net investment income... 1,296 Accumulated undistributed net realized loss on investments..................................... (104,279) Unrealized depreciation of investments............ (57,617) Unrealized depreciation of futures contracts ++... (353) --------- Net assets........................................ $ 581,180 =========
Class IA Net asset value per share ($531,169 / 546,271 shares outstanding) (600,000 shares authorized)................................... $0.97 ===== Class IB Net asset value per share ($50,011 / 51,671 shares outstanding) (200,000 shares authorized)................................... $0.97 =====
* Non-income producing during the period. ++ The Fund had 30 Standard & Poor's 500 September 2002 Futures contracts open as of June 30, 2002. These contracts had a value of $7,426 as of June 30, 2002 and were collateralized by $473 of cash.
The accompanying notes are an integral part of this financial statement. 69 HARTFORD INDEX HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 99.2% AEROSPACE & DEFENSE -- 0.2% 86 Raytheon Co. ..................................... $ 3,485 ---------- APPAREL & TEXTILE -- 0.1% 23 Liz Claiborne, Inc. .............................. 728 24 V. F. Corp. ...................................... 933 ---------- 1,661 ---------- BANKS -- 13.1% 78 AmSouth Bancorp................................... 1,739 286 American Express Co. ............................. 10,376 103 BB&T Corp. ....................................... 3,974 252 Bank One Corp. ................................... 9,705 331 Bank of America Corp. ............................ 23,273 156 Bank of New York Co., Inc. (The).................. 5,278 47 Capital One Financial Corp. ...................... 2,884 48 Charter One Financial, Inc. ...................... 1,663 1,106 Citigroup, Inc. .................................. 42,849 38 Comerica, Inc. ................................... 2,328 27 Countrywide Credit Industries, Inc. .............. 1,282 214 Fannie Mae........................................ 15,800 127 Fifth Third Bancorp............................... 8,435 27 First Tennessee National Corp. ................... 1,046 225 Fleet Boston Financial Corp. ..................... 7,278 149 Freddie Mac....................................... 9,141 33 Golden West Financial Corp. ...................... 2,286 98 Household International, Inc. .................... 4,877 +53 Huntington Bancshares, Inc. ...................... 1,032 92 KeyCorp. ......................................... 2,502 183 MBNA Corp. ....................................... 6,051 46 Marshall & Ilsley Corp. .......................... 1,410 95 Mellon Financial Corp. ........................... 2,979 428 Morgan (J.P.) Chase & Co. ........................ 14,510 131 National City Corp. .............................. 4,350 48 Northern Trust Corp. ............................. 2,098 61 PNC Financial Services Group...................... 3,189 *62 Providian Financial Corp.......................... 366 49 Regions Financial Corp. .......................... 1,730 33 SLM Corp. ........................................ 3,229 75 SouthTrust Corp. ................................. 1,948 70 State Street Corp. ............................... 3,122 61 SunTrust Banks, Inc. ............................. 4,161 64 Synovus Financial Corp. .......................... 1,750 411 U.S. Bancorp...................................... 9,592 44 Union Planters Corp. ............................. 1,411 294 Wachovia Corp. ................................... 11,226 209 Washington Mutual, Inc. .......................... 7,766 368 Wells Fargo Co. .................................. 18,401 20 Zions Bancorp..................................... 1,026 ---------- 258,063 ---------- BUSINESS SERVICES -- 0.9% *224 Cendant Corp. .................................... 3,559 *110 Concord EFS, Inc. ................................ 3,306 *37 Convergys Corp. .................................. 727 31 Equifax, Inc. .................................... 839 17 Fluor Corp. ...................................... 672 82 Interpublic Group of Cos., Inc. (The)............. 2,036 40 Omnicom Group, Inc. .............................. 1,840 81 Paychex, Inc. .................................... 2,523 *38 Robert Half International, Inc. .................. 881 *24 TMP Worldwide, Inc. .............................. 516 ---------- 16,899 ----------
MARKET SHARES VALUE --------- ---------- CHEMICALS -- 1.4% 49 Air Products & Chemicals, Inc. ................... $ 2,465 24 Avery Dennison Corp. ............................. 1,479 195 Dow Chemical Co. (The)............................ 6,705 17 Eastman Chemical Co. ............................. 781 11 Great Lakes Chemical Corp. ....................... 286 20 International Flavors & Fragrances, Inc. ......... 658 36 PPG Industries, Inc. ............................. 2,245 35 Praxair, Inc. .................................... 2,001 48 Rohm & Haas Co. .................................. 1,926 213 du Pont (E.I.) de Nemours & Co. .................. 9,474 ---------- 28,020 ---------- COMMUNICATIONS -- 5.0% *171 ADC Telecommunications, Inc. ..................... 392 67 ALLTEL Corp. ..................................... 3,139 816 AT&T Corp. ....................................... 8,732 *581 AT&T Wireless Services, Inc. ..................... 3,401 *21 Andrew Corp. ..................................... 303 *78 Avaya, Inc. ...................................... 385 403 BellSouth Corp. .................................. 12,686 *93 CIENA Corp. ...................................... 389 30 CenturyTel, Inc. ................................. 897 *40 Comverse Technology, Inc. ........................ 373 *738 Lucent Technologies, Inc. ........................ 1,225 488 Motorola, Inc. ................................... 7,036 *72 Network Appliance, Inc. .......................... 895 *175 Nextel Communications, Inc., Class A.............. 563 *826 Nortel Networks Corp. ............................ 1,198 *165 QUALCOMM, Inc. ................................... 4,547 361 Qwest Communications International, Inc. ......... 1,011 39 Rockwell International Corp. ..................... 1,078 718 SBC Communications, Inc. ......................... 21,888 34 Scientific-Atlanta, Inc. ......................... 556 191 Sprint Corp. ..................................... 2,031 *214 Sprint PCS Group.................................. 956 *89 Tellabs, Inc. .................................... 549 585 Verizon Communications, Inc. ..................... 23,490 ---------- 97,720 ---------- COMPUTERS & OFFICE EQUIPMENT -- 4.9% 84 3M Co. ........................................... 10,284 *77 Apple Computer, Inc. ............................. 1,358 *1,573 Cisco Systems, Inc. .............................. 21,943 *558 Dell Computer Corp. .............................. 14,578 *478 EMC Corp. ........................................ 3,607 *70 Gateway, Inc. .................................... 310 649 Hewlett-Packard Co. .............................. 9,911 368 International Business Machines Corp. ............ 26,481 *19 International Game Technology..................... 1,094 *43 Jabil Circuit, Inc. .............................. 899
The accompanying notes are an integral part of this financial statement. 70 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED) *28 Lexmark International, Inc. ...................... $ 1,519 *125 Palm, Inc. ....................................... 220 52 Pitney Bowes, Inc. ............................... 2,052 *177 Solectron Corp. .................................. 1,090 49 Symbol Technologies, Inc. ........................ 419 ---------- 95,765 ---------- CONSTRUCTION -- 0.3% 13 Centex Corp. ..................................... 762 94 Halliburton Co. .................................. 1,494 19 ITT Industries, Inc. ............................. 1,376 11 Kaufman and Broad Home Corp. ..................... 569 *14 McDermott International, Inc. .................... 110 13 Pulte Corp. ...................................... 750 ---------- 5,061 ---------- CONSUMER DURABLES -- 0.3% *205 Corning, Inc. .................................... 727 20 Grainger (W.W.), Inc. ............................ 1,007 19 Johnson Controls, Inc. ........................... 1,557 42 Leggett & Platt, Inc. ............................ 988 57 Newell Rubbermaid, Inc. .......................... 2,016 28 Visteon Corp. .................................... 401 ---------- 6,696 ----------
MARKET SHARES VALUE --------- ---------- CONSUMER NON-DURABLES -- 4.2% 12 Alberto-Culver Co., Class B....................... $ 592 23 AmerisourceBergen Corp. .......................... 1,710 51 Avon Products, Inc. .............................. 2,651 15 Brown-Forman Corp., Class B....................... 1,009 97 Cardinal Health, Inc. ............................ 5,960 49 Clorox Co. (The).................................. 2,046 117 Colgate-Palmolive Co. ............................ 5,881 63 Eastman Kodak Co. ................................ 1,827 28 Ecolab, Inc. ..................................... 1,282 227 Gillette Co. (The)................................ 7,690 37 Hasbro, Inc. ..................................... 506 *94 Mattel, Inc. ..................................... 1,981 62 McKesson Corp. ................................... 2,019 279 Procter & Gamble Co. (The)........................ 24,935 143 SYSCO Corp. ...................................... 3,880 *104 Safeway, Inc. .................................... 3,032 29 Supervalu, Inc. .................................. 705 31 Tiffany & Co. .................................... 1,102 429 Tyco International Ltd. .......................... 5,796 123 Unilever N.V., NY Shares.......................... 7,954 *155 Xerox Corp. ...................................... 1,081 ---------- 83,639 ---------- CONSUMER SERVICES -- 0.2% +37 Cintas Corp. ..................................... 1,804 39 H&R Block, Inc. .................................. 1,820 13 Ryder System, Inc. ............................... 363 ---------- 3,987 ---------- DRUGS -- 8.3% 335 Abbott Laboratories............................... 12,622 *223 Amgen, Inc. ...................................... 9,349 *32 Biogen, Inc. ..................................... 1,326 416 Bristol-Myers Squibb Co. ......................... 10,703 *41 Chiron Corp. ..................................... 1,442 242 Eli Lilly & Co. .................................. 13,624 *38 Forest Laboratories, Inc. ........................ 2,715 *46 Genzyme Corp. .................................... 885 *119 Immunex Corp. .................................... 2,650 *53 King Pharmaceuticals, Inc. ....................... 1,187 *54 MedImmune, Inc. .................................. 1,420 487 Merck & Co., Inc. ................................ 24,644 1,342 Pfizer, Inc. ..................................... 46,957 278 Pharmacia Corp. .................................. 10,405 315 Schering-Plough Corp. ............................ 7,749 16 Sigma-Aldrich Corp. .............................. 789 *23 Watson Pharmaceuticals, Inc. ..................... 579 285 Wyeth............................................. 14,590 ---------- 163,636 ---------- EDUCATION -- 0.1% *37 Apollo Group, Inc. ............................... 1,466 ---------- ELECTRICAL EQUIPMENT -- 0.7% *100 Agilent Technologies, Inc. ....................... 2,358 28 Allergan, Inc. ................................... 1,851 46 Applera Corp. -- Applied. Biosytems Group 892 32 Danaher Corp. .................................... 2,154 *41 KLA-Tencor Corp. ................................. 1,789 10 Millipore Corp. .................................. 334 27 PerkinElmer, Inc. ................................ 299 40 Rockwell Automation, Inc. ........................ 798 *20 Tektronix, Inc. .................................. 369 *39 Teradyne, Inc .................................... 923 *37 Thermo Electron Corp. ............................ 612 *28 Waters Corp. ..................................... 756 ---------- 13,135 ---------- ELECTRONICS -- 6.5% *73 Advanced Micro Devices, Inc. ..................... 714 *83 Altera Corp ...................................... 1,125 *42 American Power Conversion Corp. .................. 534 *78 Analog Devices, Inc. ............................. 2,329 *65 Applied Micro Circuits Corp. ..................... 305 *58 Broadcom Corp., Class A........................... 1,014 20 Cooper Industries Ltd. ........................... 786 90 Emerson Electric Co. ............................. 4,838 2,135 General Electric Co. ............................. 62,023 1,436 Intel Corp. ...................................... 26,244 *293 JDS Uniphase Corp. ............................... 783 *80 LSI Logic Corp. .................................. 697 68 Linear Technology Corp. .......................... 2,144 *69 Maxim Integrated Products, Inc. .................. 2,660 17 Maytag Corp. ..................................... 716 *129 Micron Technology, Inc. .......................... 2,613 +42 Molex, Inc. ...................................... 1,397 *32 NVIDIA Corp. ..................................... 555
The accompanying notes are an integral part of this financial statement. 71 HARTFORD INDEX HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) ELECTRONICS -- (CONTINUED) *39 National Semiconductor Corp. ..................... $ 1,124 *31 Novellus Systems, Inc. ........................... 1,064 *36 PMC-Sierra, Inc. ................................. 332 *17 Power-One, Inc. .................................. 106 *20 QLogic Corp ...................................... 762 *113 Sanmina-SCI Corp. ................................ 712 373 Texas Instruments, Inc. .......................... 8,831 *+12 Thomas & Betts Corp. ............................. 232 *43 Vitesse Semiconductor Corp. ...................... 135 15 Whirlpool Corp. .................................. 951 *72 Xilinx, Inc....................................... 1,618 ---------- 127,344 ---------- ENERGY & SERVICES -- 7.3% 19 Amerada Hess Corp. ............................... 1,575 53 Anadarko Petroleum Corp. ......................... 2,629 31 Apache Corp. ..................................... 1,773 15 Ashland, Inc. .................................... 605 *34 BJ Services Co. .................................. 1,145 43 Burlington Resources, Inc. ....................... 1,647 229 ChevronTexaco Corp. .............................. 20,299 135 Conoco, Inc. ..................................... 3,743 34 Devon Energy Corp. ............................... 1,656 25 EOG Resources, Inc. .............................. 993 1,457 ExxonMobil Corp. ................................. 59,626 22 Kerr-McGee Corp. ................................. 1,153 67 Marathon Oil Corp. ............................... 1,804 *31 Nabors Industries Ltd. ........................... 1,092 *29 Noble Corp. ...................................... 1,119 81 Occidental Petroleum Corp. ....................... 2,415 82 Phillips Petroleum Co. ........................... 4,844 20 Rowan Cos., Inc. ................................. 433 456 Royal Dutch Petroleum Co., NY Shares.............. 25,219 124 Schlumberger Ltd. ................................ 5,765 16 Sunoco, Inc. ..................................... 581 69 Transocean, Inc. ................................. 2,135 53 Unocal Corp. ..................................... 1,946 ---------- 144,197 ---------- FINANCIAL SERVICES -- 1.7% 21 Bear Stearns Cos., Inc. (The)..................... 1,309 295 Charles Schwab Corp. (The)........................ 3,300 90 Equity Office Properties Trust (Financial Services)............................ 2,697 56 Franklin Resources, Inc. ......................... 2,402 52 Lehman Brothers Holdings, Inc. ................... 3,281 185 Merrill Lynch & Co., Inc. ........................ 7,505 237 Morgan Stanley Dean Witter & Co. ................. 10,197 40 Plum Creek Timber Co., Inc. ...................... 1,222 48 Stilwell Financial, Inc. ......................... 870 27 T Rowe Price Group, Inc. ......................... 878 ---------- 33,661 ----------
MARKET SHARES VALUE --------- ---------- FOOD, BEVERAGE & TOBACCO -- 5.5% 8 Adolph Coors Co., Class B......................... $ 481 188 Anheuser-Busch Cos., Inc. ........................ 9,417 140 Archer-Daniels-Midland Co. ....................... 1,790 88 Campbell Soup Co. ................................ 2,437 534 Coca-Cola Co. (The)............................... 29,884 96 Coca-Cola Enterprises, Inc. ...................... 2,119 115 ConAgra Foods, Inc. .............................. 3,191 79 General Mills, Inc. .............................. 3,469 75 Heinz (H.J.) Co. ................................. 3,094 *23 Hercules, Inc. ................................... 272 29 Hershey Foods Corp. .............................. 1,835 88 Kellogg Co. ...................................... 3,156 61 Pepsi Bottling Group, Inc. (The).................. 1,870 380 PepsiCo., Inc. ................................... 18,310 460 Philip Morris Cos., Inc. ......................... 20,079 169 Sara Lee Corp. ................................... 3,479 36 UST, Inc. ........................................ 1,236 48 Wrigley, (Wm.) Jr. Co. ........................... 2,682 ---------- 108,801 ---------- FOREST & PAPER PRODUCTS -- 1.0% 11 Bemis Co., Inc. .................................. 540 12 Boise Cascade Corp. .............................. 431 49 Georgia-Pacific Corp. ............................ 1,215 104 International Paper Co. .......................... 4,521 111 Kimberly-Clark Corp. ............................. 6,909 *22 Louisiana-Pacific Corp. .......................... 238 *34 Pactiv Corp. ..................................... 808 11 Temple-Inland, Inc. .............................. 659 43 Westvaco Corp. ................................... 1,445 47 Weyerhaeuser Co. ................................. 2,999 ---------- 19,765 ---------- HEALTH SERVICES -- 0.7% 110 HCA, Inc. ........................................ 5,243 *85 HEALTH SOUTH Corp. ............................... 1,083 *52 Health Management Associates, Inc., Class A......................................... 1,048 *22 Manor Care, Inc. ................................. 496 *70 Tenet Healthcare Corp. ........................... 5,009 ---------- 12,879 ---------- HOTELS & GAMING -- 0.2% 80 Hilton Hotels Corp. .............................. 1,109 52 Marriott International, Inc., Class A............. 1,990 *43 Starwood Hotels & Resorts Worldwide, Inc. ................................ 1,411 ---------- 4,510 ---------- INSURANCE -- 5.3% 116 AFLAC, Inc. ...................................... 3,710 59 Ace Ltd. ......................................... 1,849 *33 Aetna, Inc. ...................................... 1,565 158 Allstate Corp. (The).............................. 5,850 24 Ambac Financial Group, Inc. ...................... 1,586 583 American International Group, Inc. ............... 39,760 59 Aon Corp. ........................................ 1,726 32 CIGNA Corp. ...................................... 3,069 38 Chubb Corp. (The)................................. 2,710
The accompanying notes are an integral part of this financial statement. 72 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) INSURANCE -- (CONTINUED) 36 Cincinnati Financial Corp. ....................... $ 1,686 *+75 Conseco, Inc. .................................... 149 *36 Humana, Inc. ..................................... 570 33 Jefferson-Pilot Corp. ............................ 1,574 *63 John Hancock Financial Services, Inc. ............ 2,228 42 Lincoln National Corp. ........................... 1,758 42 Loews Corp. ...................................... 2,236 33 MBIA, Inc. ....................................... 1,862 24 MGIC Investment Corp. ............................ 1,597 59 Marsh & McLennan Cos., Inc. ...................... 5,686 *158 MetLife, Inc. .................................... 4,545 49 Progressive Corp. (The)........................... 2,835 29 SAFECO CORP....................................... 881 46 St. Paul Cos., Inc. (The)......................... 1,809 27 Torchmark Corp. .................................. 1,036 66 UnitedHealth Group, Inc. ......................... 6,054 54 UnumProvident Corp. .............................. 1,384 *31 Wellpoint Health Networks, Inc. .................. 2,422 30 XL Capital Ltd., Class A.......................... 2,558 ---------- 104,695 ---------- MACHINERY -- 1.6% *16 American Standard Cos., Inc. ..................... 1,172 *352 Applied Materials, Inc. .......................... 6,693 72 Baker Hughes, Inc. ............................... 2,413 17 Black & Decker Corp. (The)........................ 833 74 Caterpillar, Inc. ................................ 3,615 9 Cummins, Inc. .................................... 296 51 Deere & Co. ...................................... 2,446 44 Dover Corp. ...................................... 1,525 15 Eaton Corp. ...................................... 1,094 36 Ingersoll Rand Co. ............................... 1,659 26 Pall Corp. ....................................... 548 25 Parker-Hannifin Corp. ............................ 1,209 18 Stanley Works (The)............................... 750 102 United Technologies Corp. ........................ 6,897 ---------- 31,150 ---------- MEDIA & ENTERTAINMENT -- 2.6% *14 American Greetings Corp. ......................... 234 *132 Clear Channel Communications, Inc. ............... 4,214 *203 Comcast Corp., Class A............................ 4,844 24 Donnelly (R.R.) & Sons Co. ....................... 670 18 Dow Jones & Co., Inc. ............................ 877 57 Gannett Co., Inc. ................................ 4,350 *25 Harrah's Entertainment, Inc. ..................... 1,092 18 Knight-Ridder, Inc. .............................. 1,125 42 McGraw-Hill Cos., Inc. (The)...................... 2,486 11 Meredith Corp. ................................... 409 33 New York Times Co. (The), Class A................. 1,677 65 Tribune Co. ...................................... 2,813 *49 Univision Communications, Inc. ................... 1,548 *380 Viacom, Inc., Class B............................. 16,850 *438 Walt Disney Co. (The)............................. 8,286 ---------- 51,475 ----------
MARKET SHARES VALUE --------- ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 3.3% 11 Bard (C.R.), Inc. ................................ $ 637 12 Bausch & Lomb, Inc. .............................. 396 *129 Baxter International, Inc. ....................... 5,738 56 Becton, Dickinson & Co. .......................... 1,916 *58 Biomet, Inc. ..................................... 1,561 *87 Boston Scientific Corp. .......................... 2,561 *66 Guidant Corp. .................................... 1,989 647 Johnson & Johnson................................. 33,808 261 Medtronic, Inc. .................................. 11,176 *19 St. Jude Medical, Inc. ........................... 1,394 *42 Stryker Corp. .................................... 2,269 *42 Zimmer Holdings, Inc. ............................ 1,492 ---------- 64,937 ---------- METALS, MINERALS & MINING -- 1.9% 69 Alcan, Inc. ...................................... 2,590 182 Alcoa, Inc. ...................................... 6,031 17 Allegheny Technologies, Inc. ..................... 273 12 Ball Corp. ....................................... 510 116 Barrick Gold Corp. ............................... 2,207 13 Crane Co. ........................................ 327 28 Engelhard Corp. .................................. 790 32 Fortune Brands, Inc. ............................. 1,806 *31 Freeport-McMoRan Copper & Gold, Inc., Class B......................................... 556 66 Illinois Tool Works, Inc. ........................ 4,490 *39 Inco Ltd. ........................................ 888 97 Lockheed Martin Corp. ............................ 6,727 104 Masco Corp. ...................................... 2,818 84 Newmont Mining Corp. ............................. 2,215 17 Nucor Corp. ...................................... 1,092 *19 Phelps Dodge Corp. ............................... 784 71 Placer Dome, Inc. ................................ 797 13 Snap-On, Inc. .................................... 375 22 United States Steel Corp. ........................ 431 22 Vulcan Materials Co. ............................. 956 18 Worthington Industries, Inc. ..................... 331 ---------- 36,994 ---------- REAL ESTATE -- 0.2% 59 Equity Residential Properties Trust (REIT)........ 1,699 38 Simon Property Group, Inc. ....................... 1,393 ---------- 3,092 ---------- RESEARCH & TESTING FACILITIES -- 0.1% 33 Moody's Corp. .................................... 1,648 *26 Quintiles Transnational Corp. .................... 319 ---------- 1,967 ---------- RETAIL -- 8.2% 87 Albertson's, Inc. ................................ 2,662 *23 AutoZone, Inc. ................................... 1,754 *63 Bed Bath & Beyond, Inc. .......................... 2,367 *69 Best Buy Co., Inc. ............................... 2,499 *25 Big Lots, Inc. ................................... 491 84 CVS Corp. ........................................ 2,576 45 Circuit City Stores Group......................... 847
The accompanying notes are an integral part of this financial statement. 73 HARTFORD INDEX HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) RETAIL -- (CONTINUED) *98 Costco Wholesale Corp. ........................... $ 3,767 37 Darden Restaurants, Inc. ......................... 921 18 Dillard's, Inc., Class A.......................... 474 72 Dollar General Corp. ............................. 1,366 37 Family Dollar Stores, Inc. ....................... 1,311 *43 Federated Department Stores, Inc. ................ 1,718 +186 Gap, Inc. (The)................................... 2,645 506 Home Depot, Inc. (The)............................ 18,582 *28 Jones Apparel Group, Inc. ........................ 1,039 *72 Kohl's Corp. ..................................... 5,064 *171 Kroger Co. (The).................................. 3,395 111 Limited Brands, Inc. ............................. 2,375 167 Lowe's Cos., Inc. ................................ 7,577 62 May Department Stores Co. (The)................... 2,026 *273 McDonald's Corp. ................................. 7,776 29 Nordstrom, Inc. .................................. 656 *66 Office Depot, Inc. ............................... 1,116 57 Penney (J.C.) Co., Inc. .......................... 1,265 *37 RadioShack Corp. ................................. 1,125 68 Sears, Roebuck and Co. ........................... 3,678 33 Sherwin-Williams Co. (The)........................ 980 *101 Staples, Inc. .................................... 1,982 *83 Starbucks Corp. .................................. 2,060 116 TJX Cos., Inc. (The).............................. 2,274 195 Target Corp. ..................................... 7,421 *45 Toys R Us, Inc. .................................. 790 956 Wal-Mart Stores, Inc. ............................ 52,573 220 Walgreen Co. ..................................... 8,494 25 Wendy's International, Inc. ...................... 980 30 Winn-Dixie Stores, Inc. .......................... 472 *64 Yum! Brands, Inc. ................................ 1,865 ---------- 160,963 ---------- RUBBER & PLASTICS PRODUCTS -- 0.3% 16 Cooper Tire & Rubber Co. ......................... 322 35 Goodyear Tire & Rubber Co. (The).................. 657 58 NIKE, Inc., Class B............................... 3,096 *13 Reebok International Ltd. ........................ 377 *18 Sealed Air Corp. ................................. 722 12 Tupperware Corp. ................................. 260 ---------- 5,434 ----------
MARKET SHARES VALUE --------- ---------- SOFTWARE & SERVICES -- 6.5% *957 AOL Time Warner, Inc. ............................ $ 14,073 51 Adobe Systems, Inc. .............................. 1,468 25 Autodesk, Inc. ................................... 327 133 Automatic Data Processing, Inc. .................. 5,802 *52 BMC Software, Inc. ............................... 868 *39 Citrix Systems, Inc. ............................. 237 124 Computer Associates International, Inc. .......... 1,975 *37 Computer Sciences Corp. .......................... 1,755 *80 Compuware Corp. .................................. 488 14 Deluxe Corp. ..................................... 535 103 Electronic Data Systems Corp. .................... 3,823 164 First Data Corp. ................................. 6,112 *41 Fiserv, Inc. ..................................... 1,511 62 IMS Health, Inc. ................................. 1,117 *46 Intuit, Inc. ..................................... 2,262 *18 Mercury Interactive Corp. ........................ 413 *1,164 Microsoft Corp. .................................. 63,643 *21 NCR Corp. ........................................ 734 *78 Novell, Inc. ..................................... 251 *1,180 Oracle Corp. ..................................... 11,172 *56 Parametric Technology Corp. ...................... 193 *67 PeopleSoft, Inc. ................................. 995 *42 Rational Software Corp. .......................... 344 *102 Siebel Systems, Inc. ............................. 1,450 *697 Sun Microsystems, Inc. ........................... 3,494 *69 Unisys Corp. ..................................... 624 *88 VERITAS Software Corp. ........................... 1,739 *128 Yahoo!, Inc. ..................................... 1,895 ---------- 129,300 ---------- TRANSPORTATION -- 3.4% *33 AMR Corp. ........................................ 565 180 Boeing Co. (The).................................. 8,110 *19 Brunswick Corp. .................................. 543 82 Burlington Northern Santa Fe Corp. ............... 2,472 46 CSX Corp. ........................................ 1,602 126 Carnival Corp., Class A........................... 3,489 32 Dana Corp. ....................................... 595 121 Delphi Automotive Systems Corp. .................. 1,594 27 Delta Air Lines, Inc. ............................ 531 64 FedEx Corp. ...................................... 3,426 389 Ford Motor Co. ................................... 6,231 43 General Dynamics Corp. ........................... 4,610 121 General Motors Corp. ............................. 6,441 38 Genuine Parts Co. ................................ 1,311 22 Goodrich Corp. ................................... 600 65 Harley-Davidson, Inc. ............................ 3,333 176 Honeywell International, Inc. .................... 6,188 *13 Navistar International Corp. ..................... 417 83 Norfolk Southern Corp. ........................... 1,948 24 Northrop Grumman Corp. ........................... 3,028 25 PACCAR, Inc. ..................................... 1,107 *31 Sabre Holdings Corp. ............................. 1,115 166 Southwest Airlines Co. ........................... 2,679 27 TRW, Inc. ........................................ 1,561 30 Textron, Inc. .................................... 1,411 54 Union Pacific Corp. .............................. 3,424 ---------- 68,331 ---------- UTILITIES -- 3.2% *+115 AES Corp. (The)................................... 624 27 Allegheny Energy, Inc. ........................... 695 *43 Allied Waste Industries, Inc. .................... 408 31 Ameren Corp. ..................................... 1,335 73 American Electric Power Co., Inc. ................ 2,919 29 CMS Energy Corp. ................................. 319 *+80 Calpine Corp. .................................... 566 36 Cinergy Corp. .................................... 1,296 *61 Citizens Communications Co. ...................... 507 46 Consolidated Edison, Inc. ........................ 1,913
The accompanying notes are an integral part of this financial statement. 74 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) UTILITIES -- (CONTINUED) 35 Constellation Energy Group, Inc. ................. $ 1,038 35 DTE Energy Co. ................................... 1,548 59 Dominion Resources, Inc. ......................... 3,935 178 Duke Energy Corp. ................................ 5,545 78 Dynegy Inc., Class A.............................. 560 *70 Edison International.............................. 1,194 123 El Paso Corp. .................................... 2,527 48 Entergy Corp. .................................... 2,050 69 Exelon Corp. ..................................... 3,618 38 FPL Group, Inc. .................................. 2,267 64 FirstEnergy Corp. ................................ 2,133 30 KeySpan Corp. .................................... 1,141 26 Kinder Morgan, Inc. .............................. 1,000 *87 Mirant Corp. ..................................... 632 10 NICOR, Inc. ...................................... 437 45 NiSource, Inc. ................................... 976 *84 PG&E Corp. ....................................... 1,500 32 PPL Corp. ........................................ 1,049 8 Peoples Energy Corp. ............................. 278 18 Pinnacle West Capital Corp. ...................... 718 47 Progress Energy, Inc. ............................ 2,470 *24 Progress Energy, Inc. ............................ 7 44 Public Service Enterprise Group, Inc. ............ 1,923 65 Reliant Energy, Inc. ............................. 1,104 44 Sempra Energy..................................... 977 151 Southern Co. (The)................................ 4,146 33 TECO Energy Inc. ................................. 819 57 TXU Corp. ........................................ 2,950 *133 Waste Management, Inc. ........................... 3,460 111 Williams Cos., Inc. (The)......................... 666 85 Xcel Energy, Inc. ................................ 1,421 64,671 ---------- Total common stocks............................... $1,953,399 ========== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 0.1% REPURCHASE AGREEMENT -- 0.1% $ 1,214 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02............................. $ 1,214 ---------- U.S. TREASURY BILLS -- 0.0% 300 1.68% due 09/19/02................................ 299 275 1.68% due 09/19/02................................ 274 25 1.68% due 09/19/02................................ 25 675 1.69% due 09/19/02................................ 672 ---------- 1,270 ---------- Total short-term securities....................... $ 2,484 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,968,213)............. 99.2% $1,953,399 Total short-term securities (cost $2,484)......... 0.1 2,484 ----- ---------- Total investment in securities (total cost $1,970,697)......................... 99.3 1,955,883 Cash, receivables and other assets................ 1.0 17,871 Securities lending collateral (See Note 2(i))................................. 0.4 7,392 Payable for Fund shares redeemed.................. (0.3) (5,167) Securities lending collateral payable to brokers (See Note 2(i))......................... (0.4) (7,392) Other liabilities................................. (0.0) (177) ----- ---------- Net assets........................................ 100.0% $1,968,410 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,000,000 shares authorized; 742,257 shares outstanding... $ 74,226 Capital surplus................................... 1,905,432 Accumulated undistributed net investment income... 10,459 Accumulated undistributed net realized loss on investments.................................. (7,070) Unrealized depreciation of investments............ (14,814) Unrealized appreciation of futures contracts++.... 177 ---------- Net assets........................................ $1,968,410 ==========
Class IA Net asset value per share ($1,914,534 / 721,881 shares outstanding) (1,500,000 shares authorized).................................... $2.65 ===== Class IB Net asset value per share ($53,876 / 20,376 shares outstanding) (500,000 shares authorized).................................... $2.64 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i)) ++ The Fund had 81 Standard & Poor's 500 September 2002 Futures contracts open as of June 30, 2002. These contracts had a value of $20,050 as of June 30, 2002 and were collateralized by various U.S. Treasury Bills with a market value of $1,270.
The accompanying notes are an integral part of this financial statement. 75 HARTFORD VALUE HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 98.1% BANKS -- 18.3% 29 Bank of America Corp. ............................ $ 2,019 92 Citigroup, Inc. .................................. 3,581 20 Fannie Mae........................................ 1,482 18 Morgan (J.P.) Chase & Co. ........................ 607 79 National City Corp. .............................. 2,627 15 PNC Financial Services Group...................... 800 100 Washington Mutual, Inc. .......................... 3,707 47 Wells Fargo Co. .................................. 2,353 ------- 17,176 ------- BUSINESS SERVICES -- 0.3% *21 KPMG Consulting, Inc. ............................ 317 ------- CHEMICALS -- 4.0% 43 Dow Chemical Co. (The)............................ 1,461 51 du Pont (E.I.) de Nemours & Co. .................. 2,264 ------- 3,725 ------- COMMUNICATIONS -- 5.7% 83 AT&T Corp. ....................................... 891 *4 AT&T Wireless Services, Inc. ..................... 26 75 BellSouth Corp. .................................. 2,372 70 Motorola, Inc. ................................... 1,012 26 Verizon Communications, Inc. ..................... 1,040 ------- 5,341 ------- COMPUTERS & OFFICE EQUIPMENT -- 2.5% *16 Dell Computer Corp. .............................. 418 129 Hewlett-Packard Co. .............................. 1,967 ------- 2,385 ------- DRUGS -- 3.2% 26 Abbott Laboratories............................... 968 40 Pharmacia Corp. .................................. 1,491 22 Schering-Plough Corp. ............................ 546 ------- 3,005 ------- ELECTRICAL EQUIPMENT -- 1.2% *50 Teradyne, Inc. ................................... 1,163 ------- ELECTRONICS -- 2.6% *57 Agere Systems, Inc. .............................. 80 28 Emerson Electric Co. ............................. 1,482 *43 Micron Technology, Inc. .......................... 869 ------- 2,431 ------- ENERGY & SERVICES -- 10.0% 11 Ashland, Inc. .................................... 454 21 ChevronTexaco Corp. .............................. 1,850 113 ExxonMobil Corp. ................................. 4,624 28 GlobalSantaFe Corp. .............................. 758 24 Petroleo Brasileiro S.A........................... 412 28 Shell Transport & Trading Co., PLC, ADR........... 1,251 ------- 9,349 ------- FINANCIAL SERVICES -- 1.3% 17 Goldman Sachs Group, Inc. (The)................... 1,262 ------- FOOD, BEVERAGE & TOBACCO -- 3.2% 32 Kellogg Co. ...................................... 1,158 38 PepsiCo., Inc. ................................... 1,851 ------- 3,009 -------
MARKET SHARES VALUE --------- ------- FOREST & PAPER PRODUCTS -- 6.0% 65 Kimberly-Clark Corp. ............................. $ 4,051 25 Weyerhaeuser Co. ................................. 1,583 ------- 5,634 ------- INSURANCE -- 8.8% 57 Ace Ltd. ......................................... 1,811 13 CIGNA Corp. ...................................... 1,296 21 Chubb Corp. (The)................................. 1,458 14 Marsh & McLennan Cos., Inc. ...................... 1,391 34 St. Paul Cos., Inc. (The)......................... 1,331 *18 StanCorp. Financial Group, Inc. .................. 977 ------- 8,264 ------- MACHINERY -- 3.7% 31 Caterpillar, Inc. ................................ 1,522 48 Stanley Works (The)............................... 1,977 ------- 3,499 ------- MEDIA & ENTERTAINMENT -- 1.1% *44 Comcast Corp., Class A............................ 1,039 1 Gannett Co., Inc. ................................ 38 ------- 1,077 ------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.3% 19 Bard (C.R.), Inc. ................................ 1,052 22 Beckman Coulter, Inc. ............................ 1,098 ------- 2,150 ------- METALS, MINERALS & MINING -- 5.6% 109 Alcoa, Inc. ...................................... 3,600 7 Illinois Tool Works, Inc. ........................ 505 17 Nucor Corp. ...................................... 1,119 ------- 5,224 ------- REAL ESTATE -- 0.6% 23 Archstone-Smith Trust (REIT)...................... 601 ------- RETAIL -- 6.5% *59 Autonation, Inc. ................................. 851 34 CVS Corp. ........................................ 1,025 70 Dollar General Corp. ............................. 1,326 36 Family Dollar Stores, Inc. ....................... 1,265 23 May Department Stores Co. (The)................... 751 *33 McDonald's Corp. ................................. 930 ------- 6,148 ------- RUBBER & PLASTICS PRODUCTS -- 3.8% 60 Goodyear Tire & Rubber Co. (The).................. 1,124 46 NIKE, Inc., Class B............................... 2,463 ------- 3,587 ------- SOFTWARE & SERVICES -- 1.1% *70 AOL Time Warner, Inc. ............................ 1,028 -------
The accompanying notes are an integral part of this financial statement. 76 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- (CONTINUED) TRANSPORTATION -- 1.7% 17 Canadian National Railway Co. .................... $ 870 46 Southwest Airlines Co. ........................... 742 ------- 1,612 ------- UTILITIES -- 4.6% 18 Exelon Corp. ..................................... 931 13 FirstEnergy Corp. ................................ 424 40 National Fuel Gas Co. ............................ 894 15 Progress Energy, Inc. ............................ 785 *36 Republic Services, Inc. .......................... 690 16 Scana Corp. ...................................... 482 ------- 4,206 ------- Total common stocks............................... $92,193 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 3.3% REPURCHASE AGREEMENT -- 3.3% $3,142 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 3,142 ------- Total short-term securities....................... $ 3,142 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $96,298)................ 98.1% $92,193 Total short-term securities (cost $3,142)......... 3.3 3,142 ------ ------- Total investment in securities (total cost $99,440)........................................ 101.4 95,335 Cash, receivables and other assets................ 0.7 615 Payable for securities purchased.................. (2.1) (2,001) ------ ------- Net assets........................................ 100.0% $93,949 ====== =======
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 104,763 shares outstanding................................... $ 105 Capital surplus................................. 101,486 Accumulated undistributed net investment income........................................ 416 Accumulated undistributed net realized loss on investments................................... (3,953) Unrealized depreciation of investments.......... (4,105) -------- Net assets...................................... $ 93,949 ========
Class IA Net asset value per share ($71,374 / 79,556 shares outstanding) (600,000 shares authorized).................................... $0.90 ===== Class IB Net asset value per share ($22,575 / 25,207 shares outstanding) (200,000 shares authorized).................................... $0.90 =====
* Non-income producing during the period.
The accompanying notes are an integral part of this financial statement. 77 HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 95.9% BANKS -- 11.1% 614 BB&T Corp. ....................................... $ 23,685 306 Bank of Hawaii Corp. ............................. 8,568 1,942 Citigroup, Inc. .................................. 75,258 335 Comerica, Inc. ................................... 20,569 858 Fleet Boston Financial Corp. ..................... 27,747 585 Freddie Mac....................................... 35,778 353 Household International, Inc. .................... 17,534 676 Morgan (J.P.) Chase & Co. ........................ 22,943 575 PNC Financial Services Group...................... 30,035 279 People's Bank..................................... 7,293 1,035 Synovus Financial Corp. .......................... 28,469 1,244 U.S. Bancorp...................................... 29,045 1,470 Wachovia Corp. ................................... 56,140 ---------- 383,064 ---------- CHEMICALS -- 5.6% 527 Avery Dennison Corp. ............................. 33,057 845 Dow Chemical Co. (The)............................ 29,051 1,079 Imperial Chemical Industries PLC, ADR............. 20,773 717 Rohm & Haas Co. .................................. 29,011 1,858 du Pont (E.I.) de Nemours & Co. .................. 82,479 ---------- 194,371 ---------- COMMUNICATIONS -- 6.0% 1,845 AT&T Corp. ....................................... 19,743 *+3,863 AT&T Wireless Services, Inc. ..................... 22,597 1,613 BellSouth Corp. .................................. 50,813 2,496 Motorola, Inc. ................................... 35,998 1,936 Verizon Communications, Inc. ..................... 77,724 ---------- 206,875 ---------- COMPUTERS & OFFICE EQUIPMENT -- 4.6% 2,968 Hewlett-Packard Co. .............................. 45,356 914 International Business Machines Corp. ............ 65,779 872 Pitney Bowes, Inc. ............................... 34,628 *2,236 Solectron Corp. .................................. 13,750 ---------- 159,513 ---------- CONSTRUCTION -- 0.6% 1,198 Halliburton Co. .................................. 19,099 ---------- CONSUMER DURABLES -- 0.4% 414 Newell Rubbermaid, Inc. .......................... 14,518 ---------- CONSUMER NON-DURABLES -- 4.2% 856 Gillette Co. (The)................................ 28,989 596 McKesson Corp. ................................... 19,492 651 Procter & Gamble Co. (The)........................ 58,152 *1,163 Safeway, Inc. .................................... 33,945 453 Tyco International Ltd. .......................... 6,117 ---------- 146,695 ---------- DRUGS -- 6.1% 1,365 Abbott Laboratories............................... 51,381 593 AstraZeneca PLC, ADR.............................. 24,305 398 Merck & Co., Inc. ................................ 20,145 1,670 Pharmacia Corp. .................................. 62,529 2,079 Schering-Plough Corp. ............................ 51,141 ---------- 209,501 ---------- ELECTRONICS -- 1.4% 545 Emerson Electric Co. ............................. 29,174 663 General Electric Co. ............................. 19,257 ---------- 48,431 ----------
MARKET SHARES VALUE --------- ---------- ENERGY & SERVICES -- 10.4% 814 ChevronTexaco Corp. .............................. $ 72,021 1,394 Encana Corp. ..................................... 42,645 3,020 ExxonMobil Corp. ................................. 123,561 881 Petroleo Brasileiro S.A., ADR..................... 16,610 673 Royal Dutch Petroleum Co., NY Shares.............. 37,202 623 Schlumberger Ltd. ................................ 28,946 477 TotalFinaElf S.A., ADR............................ 38,565 ---------- 359,550 ---------- FINANCIAL SERVICES -- 2.2% 905 Franklin Resources, Inc. ......................... 38,602 923 Merrill Lynch & Co., Inc. ........................ 37,386 ---------- 75,988 ---------- FOOD, BEVERAGE & TOBACCO -- 2.4% 647 General Mills, Inc. .............................. 28,507 1,270 Philip Morris Cos., Inc. ......................... 55,474 ---------- 83,981 ---------- FOREST & PAPER PRODUCTS -- 4.3% 816 Abitibi-Consolidated, Inc. ....................... 7,533 271 Bowater, Inc. .................................... 14,713 810 Kimberly-Clark Corp. ............................. 50,232 377 Temple-Inland, Inc. .............................. 21,796 872 Weyerhaeuser Co. ................................. 55,684 ---------- 149,958 ---------- HEALTH SERVICES -- 0.7% 476 HCA, Inc. ........................................ 22,624 ---------- INSURANCE -- 5.5% 640 AFLAC, Inc. ...................................... 20,483 418 Ace Ltd. ......................................... 13,206 646 American International Group, Inc. ............... 44,070 262 CIGNA Corp. ...................................... 25,505 585 MBIA, Inc. ....................................... 33,053 146 Marsh & McLennan Cos., Inc. ...................... 14,128 +479 XL Capital Ltd., Class A.......................... 40,546 ---------- 190,991 ---------- MACHINERY -- 3.4% 945 Caterpillar, Inc. ................................ 46,253 701 Ingersoll Rand Co. ............................... 31,985 846 Parker-Hannifin Corp. ............................ 40,411 ---------- 118,649 ----------
The accompanying notes are an integral part of this financial statement. 78 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- 2.5% *614 Comcast Corp., Class A............................ $ 14,640 680 Gannett Co., Inc. ................................ 51,612 347 Knight-Ridder, Inc. .............................. 21,844 ---------- 88,096 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.7% 684 Becton, Dickinson & Co. .......................... 23,571 ---------- METALS, MINERALS & MINING -- 2.7% 487 Alcan, Inc. ...................................... 18,287 2,243 Alcoa, Inc. ...................................... 74,359 ---------- 92,646 ---------- REAL ESTATE -- 0.5% 470 Kimco Realty Corp. (REIT)......................... 15,737 ---------- RETAIL -- 3.8% 973 CVS Corp. ........................................ 29,777 811 Family Dollar Stores, Inc. ....................... 28,577 *1,928 McDonald's Corp................................... 54,854 356 Wal-Mart Stores, Inc. ............................ 19,562 ---------- 132,770 ---------- RUBBER & PLASTICS PRODUCTS -- 0.4% +794 Goodyear Tire & Rubber Co. (The).................. 14,846 ---------- SOFTWARE & SERVICES -- 1.2% *1,233 AOL Time Warner, Inc. ............................ 18,143 *417 Microsoft Corp. .................................. 22,788 ---------- 40,931 ---------- TRANSPORTATION -- 7.0% 893 Boeing Co. (The).................................. 40,172 870 CP Railway Ltd. .................................. 21,336 575 CSX Corp. ........................................ 20,147 1,637 Delphi Automotive Systems Corp. .................. 21,612 1,109 Delta Air Lines, Inc. ............................ 22,186 496 FedEx Corp. ...................................... 26,460 1,779 Ford Motor Co. ................................... 28,469 317 USFreightways Corp. .............................. 12,012 797 Union Pacific Corp. .............................. 50,434 ---------- 242,828 ---------- UTILITIES -- 8.2% 557 American Electric Power Co., Inc. ................ 22,275 603 Constellation Energy Group, Inc. ................. 17,704 289 Dominion Resources, Inc. ......................... 19,138 1,133 Exelon Corp. ..................................... 59,272 851 FPL Group, Inc. .................................. 51,075 1,082 FirstEnergy Corp. ................................ 36,104 907 Pinnacle West Capital Corp. ...................... 35,819 *1,563 Waste Management, Inc. ........................... 40,724 282,111 ---------- Total common stocks............................... $3,317,344 ========== CONVERTIBLE PREFERRED STOCKS -- 0.5% TRANSPORTATION -- 0.1% 71 Ford Motor Co. Capital Trust ll................... 3,994 ---------- UTILITIES -- 0.4% 226 KeySpan Corp. .................................... 11,797 ---------- Total convertible preferred stocks................ $ 15,791 ========== PRINCIPAL AMOUNT --------- EQUITY LINKED NOTES -- 0.3% MEDIA & ENTERTAINMENT -- 0.3% $ 160 Tribune Co. 2 due 01/15/29.................................. $ 10,440 ---------- Total equity linked notes......................... $ 10,440 ==========
PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 3.4% REPURCHASE AGREEMENT -- 3.4% $ 116,345 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 116,345 ---------- Total short-term securities....................... $ 116,345 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $3,416,314)............. 95.9% $3,317,344 Total convertible preferred stocks (cost $14,850).................................. 0.5 15,791 Total equity linked notes (cost $30,709).......... 0.3 10,440 Total short-term securities (cost $116,345)................................. 3.4 116,345 ------ ---------- Total investment in securities (total cost $3,578,218)......................... 100.1 3,459,920 Cash, receivables and other assets................ 0.2 7,324 Securities lending collateral (See Note 2(i))..... 1.1 36,913 Payable for Fund shares redeemed.................. (0.3) (8,901) Securities lending collateral payable to brokers (See Note 2(i))......................... (1.1) (36,913) Other liabilities................................. (0.0) (266) ------ ---------- Net assets........................................ 100.0% $3,458,077 ====== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 4,000,000 shares authorized; 2,018,987 shares outstanding...... $ 201,899 Capital surplus........................................ 3,299,615 Accumulated undistributed net investment income........ 23,734 Accumulated undistributed net realized gain on investments....................................... 51,126 Unrealized depreciation of investments................. (118,298) Unrealized appreciation of other assets and liabilities in foreign currencies................................ 1 ---------- Net assets............................................. $3,458,077 ==========
Class IA Net asset value per share ($3,223,505 / 1,881,819 shares outstanding) (3,500,000 shares authorized)........................................ $1.71 ===== Class IB Net asset value per share ($234,572 / 137,168 shares outstanding) (500,000 shares authorized)........... $1.71 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (See Note 2(i))
The accompanying notes are an integral part of this financial statement. 79 HARTFORD GLOBAL ADVISERS HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.8% $ @667 AESOP Funding II LLC, Series 1997-1A, Class A2 (Aaa Moody's) 6.40% due 10/20/03.............................. $ 671 450 Bear Stearns Commercial Mortgage Securities, Inc., Series 2001-TOP4, Class A3 (Aaa Moody's) 5.61% due 11/15/33.............................. 449 1,000 CS First Boston Mortgage Securities Corp., Series 1997-C1, Class A1B (Aaa Moody's) 7.15% due 08/20/06.............................. 1,071 @660 GS Mortgage Securities Corp. II, Series 2000-GSFL, Class A (Aaa Moody's) 6.80% due 08/15/04.............................. 657 55 Harley-Davidson Eaglemark Motorcycle Trust, Series 2000-2, Class A1 (Aaa Moody's) 7.07% due 11/15/04.............................. 55 705 Holmes Financial PLC, Series 4, Class 1A (Aaa Moody's) 2.017% due 07/15/15............................. 705 167 Honda Auto Lease Trust, Series 1999-A, Class A5 (Aaa Moody's) 6.65% due 07/15/05.............................. 168 600 Morgan Stanley Dean Witter Capital I, Series 2001-TOP3, Class A3 (Aaa Moody's) 6.20% due 07/15/33.............................. 630 500 Nomura Asset Securities Corp., Series 1998-D6, Class A1B (Aaa Moody's) 6.59% due 03/17/28.............................. 537 499 Peoplefirst.com Auto Receivables Owner Trust, Series 2000-2, Class A3 (Aaa Moody's) 6.34% due 09/15/04.............................. 508 182 Toyota Auto Receivables Owner Trust, Series 2001-B, Class A2 (Aaa Moody's) 1.90% due 12/15/03.............................. 182 128 USAA Auto Loan Grantor Trust, Series 1999-1, Class A (Aaa Moody's) 6.10% due 02/15/06.............................. 130 -------- Total collateralized mortgage obligations (cost $5,668)....................... $ 5,763 ======== SHARES ----------- COMMON STOCKS -- 58.1% AEROSPACE & DEFENSE -- 0.3% 179 British Aerospace PLC............................. $ 916 -------- APPAREL & TEXTILE -- 0.6% *21 Gucci Group N.V. ................................. 1,958 -------- BANKS -- 8.5% 89 American Express Co. ............................. 3,214 *+87 BNP Paribas S.A. (Banks).......................... 4,828 +1,008 Banca Monte Dei Paschi di Siena S.p.A. ................................... 3,274 +23 Banco Popular Espanol S.A. ....................... 1,010 51 Bank One Corp. ................................... 1,970 28 Bank of America Corp. ............................ 1,970 +97 Bayerische Vereinsbank AG......................... 3,165 37 Citigroup, Inc. .................................. 1,414 *61 Credit Suisse Group............................... 1,952 76 Royal Bank of Scotland Group PLC.................. 2,152 63 Wachovia Corp. ................................... 2,386 -------- 27,335 -------- BUSINESS SERVICES -- 0.5% 281 Capita Group PLC.................................. 1,339 103 Rentokil Initial PLC.............................. 418 -------- 1,757 --------
MARKET SHARES VALUE ----------- -------- CHEMICALS -- 1.6% 23 BASF AG........................................... $ 1,085 118 Imperial Chemical Industries PLC.................. 573 77 du Pont (E.I.) de Nemours & Co. .................. 3,401 -------- 5,059 -------- COMMUNICATIONS -- 4.5% 493 Koninklijke KPN N.V. ............................. 2,307 1 Nippon Telegraph & Telephone Corp. ............... 2,192 296 Nokia Oyj......................................... 4,335 *31 QUALCOMM, Inc..................................... 841 *173 Tandberg ASA...................................... 2,036 1,923 Vodafone Group PLC................................ 2,638 -------- 14,349 -------- COMPUTERS & OFFICE EQUIPMENT -- 5.1% 24 3M Co. ........................................... 2,964 *292 Cisco Systems, Inc. .............................. 4,078 *159 Dell Computer Corp. .............................. 4,159 336 Hewlett-Packard Co. .............................. 5,134 -------- 16,335 -------- CONSTRUCTION -- 1.0% 174 Halliburton Co. .................................. 2,766 9 Lennar Corp. ..................................... 575 -------- 3,341 -------- CONSUMER NON-DURABLES -- 1.1% 85 Gillette Co. (The)................................ 2,872 *31 Mattel, Inc. ..................................... 649 -------- 3,521 -------- DRUGS -- 5.1% *56 Amgen, Inc. ...................................... 2,345 67 AstraZeneca PLC................................... 2,777 34 Fujisawa Pharmaceutical Co., Ltd. ................ 814
The accompanying notes are an integral part of this financial statement. 80 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------- -------- COMMON STOCKS -- (CONTINUED) DRUGS -- (CONTINUED) *18 Gilead Sciences, Inc. ............................ $ 582 *68 IDEC Pharmaceuticals Corp. ....................... 2,407 *104 Millennium Pharmaceuticals, Inc. ................. 1,260 39 Pfizer, Inc. ..................................... 1,379 40 Pharmacia Corp. .................................. 1,502 27 Roche Holdings AG................................. 2,017 26 Wyeth............................................. 1,316 -------- 16,399 -------- ELECTRICAL EQUIPMENT -- 0.3% *823 Invensys PLC...................................... 1,119 -------- ELECTRONICS -- 4.0% 27 General Electric Co. ............................. 779 80 Koninklijke Philips Electronics N.V. ............. 2,245 23 Kyocera Corp. .................................... 1,657 125 Matsushita Electric Industrial Co., Ltd. ........................................... 1,705 44 STMicroelectronics N.V. .......................... 1,107 *9 Samsung Electronics Co., Ltd. .................... 2,389 18 Sony Corp. ....................................... 935 +46 Thales S.A. ...................................... 1,932 -------- 12,749 -------- ENERGY & SERVICES -- 2.8% +1,094 Cnooc Ltd. ....................................... 1,465 65 ExxonMobil Corp. ................................. 2,639 +27 TotalFinaElf S.A., B Shares....................... 4,400 +4 YUKOS, ADR........................................ 608 -------- 9,112 -------- FINANCIAL SERVICES -- 1.3% 85 AXA............................................... 1,561 8 Goldman Sachs Group, Inc. (The)................... 572 14 Merrill Lynch & Co., Inc. ........................ 583 275 Nikko Cordial Corp. .............................. 1,388 -------- 4,104 -------- FOOD, BEVERAGE & TOBACCO -- 3.0% 227 Imperial Tobacco Group............................ 3,668 40 PepsiCo., Inc. ................................... 1,933 19 Reynolds (R.J.) Tobacco Holdings, Inc. ........................................... 1,032 333 Scottish & Newcastle PLC.......................... 3,075 -------- 9,708 -------- FOREST & PAPER PRODUCTS -- 1.8% 77 International Paper Co. .......................... 3,343 59 UPM-Kymmene Oyj................................... 2,334 -------- 5,677 -------- INSURANCE -- 0.4% *12 Aetna, Inc. ...................................... 561 10 Chubb Corp. (The)................................. 687 -------- 1,248 --------
MARKET SHARES VALUE ----------- -------- MACHINERY -- 1.6% *32 American Standard Cos., Inc. ..................... $ 2,411 59 Deere & Co. ...................................... 2,836 -------- 5,247 -------- MEDIA & ENTERTAINMENT -- 2.5% +349 Mediaset S.p.A. .................................. 2,704 79 News Corp. Ltd., ADR.............................. 1,811 47 Promotora de Informaciones S.A. .................. 396 +93 Societe Television Francaise 1.................... 2,485 *12 Viacom, Inc., Class B............................. 524 -------- 7,920 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.1% *16 Boston Scientific Corp. .......................... 466 -------- METALS, MINERALS & MINING -- 1.7% *+114 Arcelor........................................... 1,617 *+109 Freeport-McMoRan Copper & Gold, Inc., Class B................................... 1,947 *22 Inco Ltd. ........................................ 489 +51 SFK AB............................................ 1,321 -------- 5,374 -------- RESEARCH & TESTING FACILITIES -- 0.6% 37 Linde AG.......................................... 1,872 -------- RETAIL -- 4.1% *13 Gucci Group....................................... 1,257 46 ITO-YOKADO Co., Ltd. ............................. 2,303 13 Lowe's Cos., Inc. ................................ 568 128 Marks & Spencer PLC............................... 725 *69 McDonald's Corp. ................................. 1,972 *130 Staples, Inc. .................................... 2,561 18 Wal-Mart Stores, Inc. ............................ 1,001 *40 eBay, Inc. ....................................... 2,452 -------- 12,839 -------- SOFTWARE & SERVICES -- 2.3% *36 Microsoft Corp. .................................. 1,975 *452 Oracle Corp. ..................................... 4,281 *29 Trend Micro, Inc. ................................ 811 -------- 7,067 -------- TRANSPORTATION -- 3.3% 37 Canadian National Railway Co. .................... 1,917 31 DaimlerChrysler AG................................ 1,510 20 Harley-Davidson, Inc. ............................ 1,036 21 Northrop Grumman Corp. ........................... 2,563 356 P&O Princess Cruises PLC.......................... 2,246 +19 Peugeot Citroen S.A. ............................. 996 -------- 10,268 -------- Total common stocks (cost $184,645)............... $185,740 ========
The accompanying notes are an integral part of this financial statement. 81 HARTFORD GLOBAL ADVISERS HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------- -------- CONVERTIBLE PREFERRED STOCKS -- 0.4% COMMUNICATIONS -- 0.4% @@0 Nortel Networks Corp. (Communications)................................ $ 1,370 -------- Total convertible preferred stocks (cost $1,286)................................... $ 1,370 ======== PRINCIPAL AMOUNT (I) ----------- CORPORATE NOTES -- 7.2% BANKS -- 1.0% $ 500 Commonwealth Bank of Australia (A1 Moody's) 8.50% due 06/01/10.............................. $ 591 1,200 Federal Home Loan Bank (Aaa Moody's) 5.75% due 05/15/12.............................. 1,232 200 Federal National Mortgage Association (Aaa Moody's) 6.25% due 05/15/29.............................. 200 EUR 808 National Westminster Bank PLC (Aa2 Moody's) 6.00% due 01/21/10.............................. 819 510 PNC Funding Corp. (A2 Moody's) 2.133% due 08/01/03............................. 511 -------- 3,353 -------- CHEMICALS -- 0.1% EUR 300 Rohm & Haas Co. (A3 Moody's) 6.00% due 03/09/07.............................. 305 --------
PRINCIPAL MARKET AMOUNT (I) VALUE ----------- -------- COMMUNICATIONS -- 0.6% EUR **400 AT&T Corp. (BBB+ S&P) 6.00% due 11/21/06.............................. $ 335 EUR 375 British Telecom Co. PLC (A Fitch) 6.375% due 02/15/06............................. 378 @155 Singapore Telecomm (A1 Moody's) 7.375% due 12/01/31............................. 153 500 Telefonica Europe BV (A2 Moody's) 7.75% due 09/15/10.............................. 518 650 Verizon Communications, Inc. (Aa2 Moody's) 6.50% due 09/15/11.............................. 636 -------- 2,020 -------- CONSTRUCTION -- 0.2% 200 Centex Corp. (BBB+ Fitch) 7.875% due 02/01/11............................. 218 @250 Roadway Corp. (BBB S&P) 8.25% due 12/01/08.............................. 264 -------- 482 -------- ENERGY & SERVICES -- 0.5% 450 Amerada Hess Corp. (Baa2 Moody's) 7.30% due 08/15/31.............................. 457 225 Burlington Resources Finance Co. (Baa1 Moody's) 6.68% due 02/15/11.............................. 233 275 Devon Energy Corp. (Baa2 Moody's) 7.95% due 04/15/32.............................. 296 EUR 255 El Paso Corp. (Baa2 Moody's) 5.75% due 03/14/06.............................. 237 195 Virginia Electric & Power Co. (A3 Moody's) 5.375% due 02/01/07............................. 198 -------- 1,421 -------- FINANCIAL SERVICES -- 1.1% 230 CIT Group, Inc. (The) (A2 Moody's) 7.375% due 04/02/07............................. 230 @515 ERAC USA Finance Co. (Baa1 Moody's) 7.35% due 06/15/08.............................. 554 350 FPL Group Capital, Inc. (A2 Moody's) 6.125% due 05/15/07............................. 363 JPY 65,000 General Electric Capital (Aaa Moody's) 1.60% due 06/20/11.............................. 535 225 John Deere Capital Corp. (A3 Moody's) 7.00% due 03/15/12.............................. 241 250 KFW International Finance, Inc. (Aaa Moody's) 4.75% due 01/24/07.............................. 253 EUR 475 Morgan Stanley Dean Witter & Co. (Aa3 Moody's) 5.75% due 04/01/09.............................. 464 EUR 400 NGG Finance PLC (A2 Moody's) 5.25% due 08/23/06.............................. 395 210 Pemex Project Funding Master Trust Co. (Baa1 Moody's) 9.125% due 10/13/10............................. 221 @215 Southern Capital Corp. (AAA Moody's) 5.70% due 06/30/23.............................. 215 -------- 3,471 -------- FOOD, BEVERAGE & TOBACCO -- 0.4% 525 ConAgra Foods, Inc. (Baa2 Moody's) 7.40% due 09/15/04.............................. 563 300 Conagra Foods, Inc. (Baa1 Moody's) 6.00% due 09/15/06.............................. 312 @350 Tyson Foods, Inc. (BBB S&P) 7.25% due 10/01/06.............................. 370 -------- 1,245 --------
The accompanying notes are an integral part of this financial statement. 82 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (I) VALUE ----------- -------- CORPORATE NOTES -- (CONTINUED) FOREST & PAPER PRODUCTS -- 0.4% EUR $425 International Paper (Baa2 Moody's) 5.375% due 08/11/06............................. $ 415 300 Stora Enso Oyj (Baa1 Moody's) 7.375% due 05/15/11............................. 324 225 Westvaco Corp. (Baa2 Moody's) 6.85% due 04/01/12.............................. 236 @400 Weyerhaeuser Co. (A Fitch) 6.125% due 03/15/07............................. 412 -------- 1,387 -------- HEALTH SERVICES -- 0.1% 340 UnitedHealth Group, Inc. (A S&P) 5.20% due 01/17/07.............................. 345 -------- INSURANCE -- 1.4% 500 Ace Capital Trust II (A3 Moody's) 9.70% due 04/01/30.............................. 602 300 CIGNA Corp. (A+ S&P) 7.875% due 05/15/27............................. 335 500 Everest Reinsurance Group Ltd. (A3 Moody's) 8.50% due 03/15/05.............................. 547 @390 Florida Windstorm Underwriting Association (Aaa Moody's) 6.85% due 08/25/07.............................. 423 325 Health Net, Inc. (Baa3 Moody's) 8.375% due 04/15/11............................. 361 @330 Jackson National Life Insurance Co. (AAA S&P) 5.25% due 03/15/07.............................. 336 400 NAC RE Corp. (A2 Moody's) 7.15% due 11/15/05.............................. 434 250 St. Paul Cos., Inc. (The) (A2 Moody's) 5.75% due 03/15/07.............................. 252 500 UnumProvident Corp. (A- S&P) 7.625% due 03/01/11............................. 543 500 Wellpoint Health Networks, Inc. (A- S&P) 6.375% due 01/15/12............................. 518 -------- 4,351 -------- MEDIA & ENTERTAINMENT -- 0.5% 175 COX Communications, Inc. (BBB+ Fitch) 7.75% due 11/01/10.............................. 166 EUR 500 Clear Channel Communications, Inc. (Baa3 Moody's) 6.50% due 07/07/05.............................. 487 200 News America Holdings, Inc. (BBB Fitch) 8.875% due 04/26/23............................. 212 600 Viacom, Inc. (A3 Moody's) 6.625% due 05/15/11............................. 616 -------- 1,481 -------- METALS, MINERALS & MINING -- 0.2% 200 Alcan, Inc. (A2 Moody's) 7.25% due 03/15/31.............................. 216 @300 Burlington Resources Finance, Inc. (Baa1 Moody's) 7.40% due 12/01/31.............................. 314 -------- 530 --------
PRINCIPAL MARKET AMOUNT (I) VALUE ----------- -------- REAL ESTATE -- 0.1% $ 325 EOP Operating LP (Baa1 Moody's) 7.00% due 07/15/11.............................. $ 341 -------- SOFTWARE & SERVICES -- 0.1% 350 AOL Time Warner, Inc. (Baa1 Moody's) 6.875% due 05/01/12............................. 323 -------- TRANSPORTATION -- 0.4% GBP 300 DaimlerChrysler North America Holding Corp. (A3 Moody's) 7.50% due 12/07/06.............................. 472 500 Delta Air Lines, Inc. (AA S&P) 7.57% due 11/18/10.............................. 536 725 Ford Motor Co. (Baa1 Moody's) 6.375% due 02/01/29............................. 591 -------- 1,599 -------- UTILITIES -- 0.1% @95 Commonwealth Edison Co. (A3 Moody's) 6.15% due 03/15/12.............................. 98 300 NSTAR (A2 Moody's) 8.00% due 02/15/10.............................. 332 70 South Carolina Electric & Gas Co. (A1 Moody's) 6.625% due 02/01/32............................. 71 -------- 501 -------- Total corporate notes (cost $22,310).............. $ 23,155 ======== FOREIGN/YANKEE BONDS & NOTES -- 17.6% FOREIGN CORPORATIONS -- 1.7% EUR $200 Eaton Corp. (A2 Moody's) 6.00% due 03/30/07.............................. 197 180 Falconbridge Ltd. (Baa3 Moody's) 7.35% due 06/05/12.............................. 185 EUR 800 Lloyds TSB Bank PLC (Aa1 Moody's) 5.25% due 07/14/08.............................. 790 300 National Australia Bank (AA- S&P) 8.60% due 05/19/10.............................. 357 @175 Norske Skogindustrier ASA (BBB S&P) 7.625% due 10/15/11............................. 186 EUR **425 Oversea-Chinese Banking Corp., Ltd. (A1 Moody's) 7.25% due 09/06/11.............................. 438 175 Potash Corp. Saskatchewan (BBB+ S&P) 7.75% due 05/31/11.............................. 195
The accompanying notes are an integral part of this financial statement. 83 HARTFORD GLOBAL ADVISERS HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT (I) VALUE ----------- -------- FOREIGN/YANKEE BONDS & NOTES -- (CONTINUED) FOREIGN CORPORATIONS -- (CONTINUED) EUR 500 Reed Elsevier Capital (A3 Moody's) 5.75% due 07/31/08.............................. $ 501 @115 Sappi Papier Holding AG (Baa2 Moody's) 6.75% due 06/15/12.............................. 116 EUR 150 Sealed Air Finance ll BV (BBB S&P) 5.625% due 07/19/06............................. 136 EUR 818 Toyota Motor Credit (Aaa Moody's) 4.75% due 06/17/05.............................. 807 EUR 700 Unicredito Italiano S.p.A. (Aaa Moody's) 6.00% due 03/16/11.............................. 700 EUR 800 Unilever N.V. (A1 Moody's) 4.75% due 06/07/04.............................. 798 -------- 5,406 -------- FOREIGN GOVERNMENTS -- 15.9% AUD 7,240 Australian Government (AAA S&P) 7.50% due 09/15/09.............................. 4,430 EUR 2,440 Austria Republic (Aaa Moody's) 5.00% due 07/15/12.............................. 2,384 EUR 1,000 Bundesobligation (Aaa Moody's) 3.75% due 08/26/03.............................. 988 CAD 2,035 Canada Government (AAA S&P) 5.50% due 06/01/10.............................. 1,351 EUR 4,035 Denmark Kingdom (AAA S&P) 4.875% due 04/18/07............................. 4,027 DKK 3,676 Denmark Kingdom (AAA S&P) 6.00% due 11/15/09.............................. 516 EUR 1,200 Deutschland Republic (Aaa Moody's) 6.50% due 07/04/27.............................. 1,375 EUR 2,000 Deutsche Bundesrepublik (AAA Moody's) 5.25% due 01/04/11.............................. 2,020 EUR 9,295 Deutsche Bundesrepublik (AAA Moody's) 6.00% due 07/04/07.............................. 9,762 EUR 1,070 Finnish Government (Aaa Moody's) 5.375% due 07/04/13............................. 1,074 EUR 2,515 France O.A.T (Aaa Moody's) 5.25% due 04/25/08.............................. 2,557 EUR 2,819 France O.A.T (Aaa Moody's) 5.50% due 04/25/07.............................. 2,895 EUR 250 France O.A.T (Aaa Moody's) 5.50% due 10/25/07.............................. 257 JPY 156,000 Japan Series 195 (AA- S&P) 2.40% due 06/20/07.............................. 1,429 JPY 304,000 Japan Series 208 (AA S&P) 1.10% due 12/22/08.............................. 2,562 JPY 118,000 Japan Series 213 (AA- S&P) 1.40% due 06/22/09.............................. 1,023 NOK 57,475 Norwegian Government (Aaa Moody's) 6.00% due 05/16/11.............................. 7,345 $ 1,050 Republic of Finland (Aaa Moody's) 4.75% due 03/06/07.............................. $ 1,070 SGD 1,430 Singapore Government (Aaa Moody's) 4.00% due 03/01/07.............................. 852 SEK 4,000 Sweden Kingdom (Aaa Moody's) 5.00% due 01/28/09.............................. 428 GBP 1,460 U.K. Treasury Gilt (Aaa Moody's) 6.25% due 11/25/10.............................. 2,404 +250 United Mexican States (Baa2 Moody's) 7.50% due 01/14/12.............................. 247 -------- 50,996 -------- Total foreign/yankee bonds & notes (cost $51,981).................................. $ 56,402 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 10.0% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 1.2% $ 1,413 5.757% due 03/01/30............................... $ 1,463 2,280 6.00% due 12/01/31 -- 01/01/32.................... 2,278 -------- 3,741 --------
PRINCIPAL MARKET AMOUNT I VALUE ----------- -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.1% $ 3,500 6.00% due 07/01/32................................ $ 3,489 1,286 6.113% due 05/01/11............................... 1,351 1,005 6.295% due 06/01/09............................... 1,064 122 7.00% due 02/01/29................................ 126 526 7.50% due 01/01/30 -- 12/01/30.................... 552 -------- 6,582 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 4.4% 837 6.00% due 08/15/31 -- 11/15/31.................... 837 5,708 7.00% due 07/15/31 -- 03/15/32.................... 5,933 4,940 7.50% due 11/15/27 -- 07/15/29.................... 5,228 1,823 8.00% due 05/15/29 -- 12/15/30.................... 1,942 -------- 13,940 -------- U.S. TREASURY BONDS -- 1.7% 5,150 5.75% due 11/15/05................................ 5,496 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 0.6% 2,071 3.375% due 01/15/12............................... 2,122 -------- Total U.S. treasuries & federal agencies (cost $31,368).................................. $ 31,881 ======== SHORT-TERM SECURITIES -- 6.6% REPURCHASE AGREEMENT -- 6.3% $ 20,002 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 20,002 --------
The accompanying notes are an integral part of this financial statement. 84 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- -------- SHORT-TERM SECURITIES -- (CONTINUED) U.S. TREASURY BILLS -- 0.3% $ 300 1.70% due 07/25/02................................ $ 300 800 1.73% due 08/01/02................................ 799 -------- 1,099 -------- Total short-term securities (cost $21,101).................................. $ 21,101 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $318,359) -- see accompanying portfolio....... $325,423 Receivable for securities sold.............................. 16,597 Receivable for Fund shares sold............................. 73 Receivable for dividends and interest....................... 2,273 Receivable for options (premium $187)....................... 215 Cash and other assets....................................... 122 -------- Total assets................................................ 344,703 ======== LIABILITIES Payable for securities purchased............................ 23,765 Payable for Fund shares redeemed............................ 914 Other liabilities........................................... 60 -------- Total liabilities........................................... 24,739 ======== Net assets.................................................. $319,964 ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 750,000 shares authorized; 330,269 shares outstanding............. $ 33,027 Capital surplus............................................. 340,393 Accumulated undistributed net investment income............. 3,040 Distribution in excess of net realized gain on investments............................................... (60,119) Unrealized appreciation of investments...................... 7,064 Unrealized depreciation of futures contracts***............. (896) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@..................... (2,691) Unrealized appreciation of other assets and liabilities in foreign currencies......................... 118 Unrealized appreciation of option contracts written (See Note 2(f))@@@@....................................... 28 ------------ Net assets.................................................. $ 319,964 ============
Class IA Net asset value per share ($306,492 / 316,332 shares outstanding) (562,500 shares authorized)................................... $0.97 ===== Class IB Net asset value per share ($13,472 / 13,937 shares outstanding) (187,500 shares authorized)................................... $0.97 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $4,769 or 1.5% of net assets. ** Securities contain some restriction as to public resale. At June 30, 2002, the market value of these securities amounted to $773 or 0.2% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero. (I) All principal amounts are in U.S. dollars unless otherwise indicated. *** The fund had 65 Short September 2002 10 Year U.S. Treasury Note futures contracts, 32 Long September 2002 U.S. Treasury Note futures contracts, 20 Long September 2002 30 Year U.S. Treasury Bond futures contracts, 72 Short September 2002 U.S. Treasury Note futures contracts, 2 Short September 2002 S&P 500 Index futures contracts, 5 Short September 2002 FTSE 100 Index futures contracts, 6 Short September 2002 SFE SPI 200 Index futures contracts, 7 Short September 2002 TSE TOPIX Index futures contracts, 7 Short September 2002 OMX Index futures contracts, 1 Long September 2002 MIB 30 Index futures contract, 39 Long September 2002 Eurex BOBL Euro Index futures contracts, 68 Short September 2002 Eurex Bund Euro Index futures contracts, 4 Short September 2002 Eurex DAX Index futures contracts, 129 Short September 2002 Eurex Deutschland Euro Schatz Index futures contracts and 6 Short July 2002 CAC 40 Index futures contracts open as of June 30, 2002. These contracts had a market value of ($6,537) as of June 30, 2002, and were collateralized by various U.S. Treasury obligations with a market value of $1,098.
@@@@ OPTION CONTRACTS OUTSTANDING AT JUNE 30, 2002
NUMBER OF EXCISE EXPIRATION MARKET DESCRIPTION CONTRACTS PRICE DATE VALUE ----------- --------- ------- ------------- ----------- Norwegian Krone Call/Canadian Dollar Put (Purchased Call) 5,518 $ 5.02 December 2002 $ 87 EURO Call/Japanese Yen Put (Purchased Call) 1,840 112.53 June 2003 82 Swiss Franc/Japanese Yen Put (Purchased Put) 1,860 83.00 February 2003 18 Swiss Franc/Japanese Yen Put (Purchased Put) 1,885 81.75 February 2003 19 Japanese Yen Swaption (Purchased Put) 797,350 0.60 January 2004 9 ------- ---- Total Option contracts (total net premium $187) 808,453 $215 ======= ====
The accompanying notes are an integral part of this financial statement. 85 HARTFORD GLOBAL ADVISERS HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- @@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- --------- -------------- Australian Dollar (Sell) $ 3,072 $ 3,039 7/19/2002 $ (33) Australian Dollar (Sell) 1,348 1,333 7/19/2002 (15) Australian Dollar (Sell) 190 192 9/30/2002 2 Australian Dollar (Sell) 102 103 9/30/2002 1 British Pound (Buy) 578 581 7/3/2002 (3) British Pound (Buy) 1,769 1,738 7/29/2002 31 British Pound (Sell) 239 240 7/1/2002 1 British Pound (Sell) 193 194 7/2/2002 1 British Pound (Sell) 1,881 1,784 7/29/2002 (97) British Pound (Sell) 2,730 2,599 7/29/2002 (131) British Pound (Sell) 29 29 7/29/2002 -- British Pound (Sell) 457 446 9/20/2002 (11) Canadian Dollar (Buy) 477 475 7/30/2002 2 Canadian Dollar (Sell) 1,907 1,900 7/30/2002 (7) Danish Krone (Sell) 436 421 7/24/2002 (15) EURO (Buy) 470 467 7/1/2002 3 EURO (Buy) 1,357 1,354 7/2/2002 3 EURO (Buy) 190 191 7/3/2002 (1) EURO (Buy) 1,990 1,890 7/22/2002 100 EURO (Buy) 336 321 7/22/2002 15 EURO (Buy) 8,572 8,229 7/22/2002 343 EURO (Buy) 41 39 7/22/2002 2 EURO (Buy) 4,130 4,014 7/22/2002 116 EURO (Buy) 914 896 7/22/2002 18 EURO (Buy) 2,989 2,949 7/22/2002 40 EURO (Buy) 154 153 7/31/2002 1 EURO (Sell) 1,900 1,806 7/16/2002 (94) EURO (Sell) 2,564 2,437 7/22/2002 (127) EURO (Sell) 143 137 7/22/2002 (6) EURO (Sell) 8,687 8,275 7/22/2002 (412) EURO (Sell) 3,428 3,263 7/22/2002 (165) EURO (Sell) 3,135 2,984 7/22/2002 (151) EURO (Sell) 36,507 34,714 7/22/2002 (1,793) EURO (Sell) 297 293 7/22/2002 (4) EURO (Sell) 435 436 7/22/2002 1 EURO (Sell) 479 477 7/31/2002 (2) EURO (Sell) 387 376 9/20/2002 (11) Japanese Yen (Buy) 463 464 7/5/2002 (1) Japanese Yen (Buy) 987 943 7/17/2002 44 Japanese Yen (Buy) 780 769 7/17/2002 11 Japanese Yen (Buy) 361 348 9/12/2002 13 Japanese Yen (Sell) 779 768 7/1/2002 (11) Japanese Yen (Sell) 801 805 7/1/2002 4 Japanese Yen (Sell) 6,895 6,581 7/17/2002 (314) Japanese Yen (Sell) 84 82 7/17/2002 (2) Japanese Yen (Sell) 464 464 7/17/2002 -- Japanese Yen (Sell) 1,248 1,170 8/6/2002 (78) Japanese Yen (Sell) 612 588 8/6/2002 (24) Japanese Yen (Sell) 310 298 8/6/2002 (12) Japanese Yen (Sell) 199 190 9/12/2002 (9) Japanese Yen (Sell) 655 625 9/12/2002 (30) Norwegian Krone (Sell) 7,695 7,756 8/2/2002 61 Polish Zloty (Buy) 1,754 1,757 7/16/2002 (3) Singapore Dollar (Buy) 594 587 7/8/2002 7 Singapore Dollar (Buy) 300 297 7/8/2002 3
The accompanying notes are an integral part of this financial statement. 86 --------------------------------------------------------------------------------
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- --------- -------------- Singapore Dollar (Sell) $ 797 $ 780 7/8/2002 $ (17) Singapore Dollar (Sell) 968 966 7/8/2002 (2) South Korean Won (Buy) 1,248 1,158 8/6/2002 90 South Korean Won (Buy) 975 962 8/6/2002 13 Swedish Krona (Buy) 276 259 7/15/2002 17 Swedish Krona (Buy) 2,361 2,226 7/15/2002 135 Swedish Krona (Buy) 135 133 7/26/2002 2 Swedish Krona (Sell) 3,027 2,841 7/15/2002 (186) Swedish Krona (Sell) 212 209 7/26/2002 (3) Swiss Franc (Buy) 260 261 7/3/2002 (1) ------- $(2,691) =======
The accompanying notes are an integral part of this financial statement. 87 HARTFORD ADVISERS HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.2% $ @43,000 AESOP Funding II LLC, Series 1998-1, Class A (Aaa Moody's) 6.14% due 05/20/06.............................. $ 45,239 18,000 Asset Securitization Corp., Series 1997-D4, Class A1D (Aaa Moody's) 7.49% due 04/14/29.............................. 19,862 17,200 Asset Securitization Corp., Series 1997-D5, Class A1E (AAA Fitch) 6.93% due 02/14/41.............................. 18,195 24,383 Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2 (Aaa Moody's) 7.37% due 02/19/07.............................. 26,425 3,400 Citibank Credit Card Issuance Trust, Series 2000-B1, Class B1 (A2 Moody's) 7.05% due 09/17/07.............................. 3,671 4,000 Citibank Credit Card Master Trust l, Series 1999-7, Class B (A2 Moody's) 6.90% due 11/15/06.............................. 4,275 17,225 First Union -- Lehman Brothers Commercial Mortgage Trust, Series 1997-C1, Class A3 (Aaa Moody's) 7.38% due 04/18/07.............................. 18,950 268 Money Store Home Improvement Trust (The), Series 1997-1, Class M1 (AAA Fitch) 7.41% due 05/15/17.............................. 274 3,000 Standard Credit Card Master Trust, Series 1995-1, Class B (A1 Moody's) 8.45% due 01/07/07.............................. 3,295 ---------- 140,186 ---------- Total collateralized mortgage obligations............................ $ 140,186 ========== SHARES ---------- COMMON STOCKS -- 61.5% AEROSPACE & DEFENSE -- 0.3% *3,700 General Motors Corp., Class H..................... $ 38,480 ---------- BANKS -- 6.3% 1,068 American Express Co. ............................. 38,801 2,564 Bank One Corp. ................................... 98,670 5,606 Citigroup, Inc. .................................. 217,239 3,086 Fleet Boston Financial Corp. ..................... 99,842 1,400 Household International, Inc. .................... 69,580 3,022 State Street Corp. ............................... 135,089 +2,500 U.S. Bancorp...................................... 58,375 ---------- 717,596 ---------- BUSINESS SERVICES -- 0.6% *+3,306 Accenture Ltd..................................... 62,818 ---------- CHEMICALS -- 1.0% 3,275 Dow Chemical Co. (The)............................ 112,605 ---------- COMMUNICATIONS -- 0.6% 2,337 SBC Communications, Inc. ......................... 71,269 ----------
MARKET SHARES VALUE ---------- ---------- COMPUTERS & OFFICE EQUIPMENT -- 3.2% 387 3M Co. ........................................... $ 47,626 *5,893 Cisco Systems, Inc. .............................. 82,206 +6,189 Hewlett-Packard Co. .............................. 94,566 +1,946 International Business Machines Corp. .......................................... 140,134 ---------- 364,532 ---------- CONSTRUCTION -- 0.5% 3,837 Halliburton Co. .................................. 61,162 ---------- CONSUMER NON-DURABLES -- 2.0% +1,535 Estee Lauder Cos., Inc. (The), Class A......................................... 54,032 1,600 Gillette Co. (The)................................ 54,192 *4,191 Safeway, Inc. .................................... 122,329 ---------- 230,553 ---------- DRUGS -- 7.0% 2,898 Abbott Laboratories............................... 109,102 *1,515 Amgen, Inc. ...................................... 63,448 1,700 Eli Lilly & Co. .................................. 95,880 *2,410 Genzyme Corp. .................................... 46,368 5,133 Pfizer, Inc. ..................................... 179,670 2,428 Pharmacia Corp. .................................. 90,929 4,554 Schering-Plough Corp. ............................ 112,028 1,997 Wyeth............................................. 102,221 ---------- 799,646 ---------- ELECTRICAL EQUIPMENT -- 0.2% *+828 Waters Corp. ..................................... 22,094 ---------- ELECTRONICS -- 4.7% 1,376 Emerson Electric Co. ............................. 73,651 10,177 General Electric Co. ............................. 295,630 6,896 Intel Corp. ...................................... 125,984 *+1,783 Micron Technology, Inc. .......................... 36,058 200 Texas Instruments, Inc. .......................... 4,740 ---------- 536,063 ---------- ENERGY & SERVICES -- 4.6% 1,497 Anadarko Petroleum Corp. ......................... 73,802 1,300 ChevronTexaco Corp. .............................. 115,050 5,930 ExxonMobil Corp. ................................. 242,660 1,954 Schlumberger Ltd. ................................ 90,875 ---------- 522,387 ----------
The accompanying notes are an integral part of this financial statement. 88 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------- ---------- COMMON STOCKS -- (CONTINUED) FINANCIAL SERVICES -- 2.9% 3,182 Franklin Resources, Inc. ......................... $ 135,668 1,007 Goldman Sachs Group, Inc. (The)................... 73,863 2,892 Merrill Lynch & Co., Inc. ........................ 117,134 ---------- 326,665 ---------- FOOD, BEVERAGE & TOBACCO -- 0.7% 1,690 PepsiCo., Inc. ................................... 81,472 ---------- FOREST & PAPER PRODUCTS -- 2.1% 1,411 International Paper Co. .......................... 61,470 2,124 Kimberly-Clark Corp. ............................. 131,657 +800 Weyerhaeuser Co. ................................. 51,080 ---------- 244,207 ---------- HEALTH SERVICES -- 1.2% +2,851 HCA, Inc.......................................... 135,427 ---------- INSURANCE -- 3.2% 2,881 American International Group, Inc. ............... 196,550 1,689 Marsh & McLennan Cos., Inc. ...................... 163,167 ---------- 359,717 ---------- MACHINERY -- 1.1% 717 Caterpillar, Inc. ................................ 35,112 1,377 United Technologies Corp. ........................ 93,525 ---------- 128,637 ---------- MEDIA & ENTERTAINMENT -- 2.3% 2,742 Gannett Co., Inc. ................................ 208,141 *+5,739 Liberty Media Corp., Class A...................... 57,388 ---------- 265,529 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.4% 926 Johnson & Johnson................................. 48,408 ---------- METALS, MINERALS & MINING -- 1.8% 3,651 Alcoa, Inc. ...................................... 121,014 1,150 Illinois Tool Works, Inc. ........................ 78,545 192 Masco Corp. ...................................... 5,192 ---------- 204,751 ----------
MARKET SHARES VALUE ---------- ---------- RETAIL -- 3.0% 3,994 CVS Corp. ........................................ $ 122,210 *2,175 Costco Wholesale Corp. ........................... 83,987 2,003 Home Depot, Inc. (The)............................ 73,555 1,071 Wal-Mart Stores, Inc. ............................ 58,938 ---------- 338,690 ---------- RUBBER & PLASTICS PRODUCTS -- 0.9% 1,903 NIKE, Inc., Class B............................... 102,074 ---------- SOFTWARE & SERVICES -- 6.2% *10,311 AOL Time Warner, Inc. ............................ 151,676 2,075 Automatic Data Processing, Inc. .................. 90,366 *+1,177 Computer Sciences Corp. .......................... 56,275 *5,746 Microsoft Corp. .................................. 314,306 *9,860 Oracle Corp. ..................................... 93,376 ---------- 705,999 ---------- TRANSPORTATION -- 2.7% 2,969 Boeing Co. (The).................................. 133,596 1,633 FedEx Corp. ...................................... 87,197 557 Northrop Grumman Corp. ........................... 69,638 ---------- 290,431 ---------- UTILITIES -- 2.0% 415 Duke Energy Corp. ................................ 12,894 +2,165 Exelon Corp. ..................................... 113,203 1,260 FPL Group, Inc. .................................. 75,563 *750 Waste Management, Inc. ........................... 19,524 ---------- 221,184 ---------- Total common stocks............................... $6,992,396 ========== PRINCIPAL AMOUNT ---------- CORPORATE NOTES -- 18.6% BANKS -- 2.0% $ 12,035 American Express Co. (AA- Fitch) 6.875% due 11/01/05............................. $ 13,021 25,000 Associates Corp. of North America (Aa1 Moody's) 6.00% due 07/15/05.............................. 26,642 40,000 Bank One Corp. (Aa3 Moody's) 6.875% due 08/01/06............................. 43,228 20,000 Bank of America Corp. (Aa2 Moody's) 5.875% due 02/15/09............................. 20,165 1,000 Bank of America Corp. (Aa3 Moody's) 6.20% due 02/15/06.............................. 1,058 10,000 Bank of Boston Corp. (A2 Moody's) 6.625% due 02/01/04............................. 10,421 25,000 Bayerische Landesbank Girozentrale (NY) (Aaa Moody's) 5.65% due 02/01/09.............................. 25,179 500 Capital One Bank (A- Fitch) 6.875% due 02/01/06............................. 494 +10,000 Citigroup, Inc. (Aa1 Moody's) 6.25% due 12/01/05.............................. 10,593 1,500 First Chicago NBD Corp. (A1 Moody's) 7.125% due 05/15/07............................. 1,638 13,685 First Union National Bank (A1 Moody's) 5.80% due 12/01/08.............................. 13,897 1,000 Household Finance Corp. (A2 Moody's) 6.00% due 05/01/04.............................. 1,034 1,500 International Bank for Reconstruction & Development (AAA S&P) 7.00% due 01/27/05.............................. 1,633 36,745 Key Bank N.A. (A1 Moody's) 5.80% due 04/01/04.............................. 38,189 750 KeyCorp. Capital II (A3 Moody's) 6.875% due 03/17/29............................. 688
The accompanying notes are an integral part of this financial statement. 89 HARTFORD ADVISERS HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- CORPORATE NOTES -- (CONTINUED) BANKS -- (CONTINUED) $ 1,000 Morgan (J.P.) Chase & Co. (A1 Moody's) 6.75% due 02/01/11.............................. $ 1,037 750 National City Corp. (A+ Fitch) 6.875% due 05/15/19............................. 768 14,825 Popular, Inc. (Baa1 Moody's) 6.75% due 12/15/05.............................. 15,532 500 Republic New York Capital 1 (A+ Fitch) 7.75% due 11/15/26.............................. 505 1,500 Salomon Smith Barney Holdings, Inc. (Aa1 Moody's) 5.875% due 03/15/06............................. 1,568 1,500 St Paul Bancorp, Inc. (A3 Moody's) 7.125% due 02/15/04............................. 1,580 1,000 Washington Mutual Financial Corp. (A Fitch) 7.25% due 06/15/06.............................. 1,076 ---------- 229,946 ---------- CHEMICALS -- 0.6% 20,000 ICI Wilmington, Inc. (Baa2 Moody's) 6.95% due 09/15/04.............................. 20,653 +40,000 Rohm & Haas Co. (A3 Moody's) 7.40% due 07/15/09.............................. 44,052 ---------- 64,705 ---------- COMMUNICATIONS -- 0.8% 1,500 ALLTEL Corp. (A2 Moody's) 6.80% due 05/01/29.............................. 1,301 @1,750 AT&T Corp. (BBB+ S&P) 7.30% due 11/15/11.............................. 1,453 @33,845 AT&T Corp. (BBB+ S&P) 8.00% due 11/15/31.............................. 26,568 500 AT&T Wireless Services, Inc. (A- Fitch) 8.75% due 03/01/31.............................. 386 10,000 BellSouth Telecommunications, Inc. (Aa2 Moody's) 6.375% due 06/01/28............................. 9,347 1,000 Comcast Cable Communications (BBB+ Fitch) 8.50% due 05/01/27.............................. 1,048 30,000 Comcast Cable Communications (Baa2 Moody's) 6.875% due 06/15/09............................. 27,919 500 GTE Corp. (A+ S&P) 7.51% due 04/01/09.............................. 514 16,580 Motorola, Inc. (Baa2 Moody's) 7.60% due 01/01/07.............................. 16,354 1,500 Qwest Corp. (AA- Fitch) 7.20% due 11/01/04.............................. 1,335 500 Sprint Capital Corp. (BBB Fitch) 6.875% due 11/15/28............................. 313 500 Sprint Capital Corp. (BBB+ S&P) 7.625% due 01/30/11............................. 398 1,250 Telefonica Europe BV (A2 Moody's) 7.35% due 09/15/05.............................. 1,321 1,250 Vodafone Americas Asia, Inc. (A2 Moody's) 6.65% due 05/01/08.............................. 1,314 ---------- 89,571 ----------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- COMPUTERS & OFFICE EQUIPMENT -- 0.9% $ 50,000 Hewlett-Packard Co. (A3 Moody's) 7.15% due 06/15/05.............................. $ 53,122 30,000 International Business Machines Corp. (AA- Fitch) 6.50% due 01/15/28.............................. 29,378 +18,000 Pitney Bowes, Inc. (AA S&P) 5.50% due 04/15/04.............................. 18,715 ---------- 101,215 ---------- CONSUMER NON-DURABLES -- 0.9% +25,000 Alberto-Culver Co. (Baa1 Moody's) 8.25% due 11/01/05.............................. 27,536 25,000 Boise Cascade Office Products Corp. (Baa3 Moody's) 7.05% due 05/15/05.............................. 25,472 350 Cardinal Health, Inc. (A2 Moody's) 6.75% due 02/15/11.............................. 374 18,000 Colgate-Palmolive Co. (Aa3 Moody's) 5.58% due 11/06/08.............................. 18,502 750 Procter & Gamble Co. (The) (Aa3 Moody's) 6.875% due 09/15/09............................. 829 21,100 Procter & Gamble Co. (The) (Aa3 Moody's) 9.36% due 01/01/21.............................. 26,917 750 SYSCO Corp. (AA- S&P) 6.50% due 08/01/28.............................. 749 500 Safeway, Inc. (Baa2 Moody's) 7.25% due 01/01/31.............................. 518 ---------- 100,897 ---------- CONSUMER SERVICES -- 0.4% 38,982 Postal Square LP (AAA S&P) 8.95% due 06/15/22.............................. 47,979 ---------- DRUGS -- 0.6% 26,000 American Home Products Corp. (A S&P) 7.25% due 03/01/23.............................. 27,255 750 Bristol-Myers Squibb Co. (AAA S&P) 6.80% due 11/15/26.............................. 769 29,000 Pharmacia Corp. (AA- S&P) 6.60% due 12/01/28.............................. 29,435 10,000 Zeneca Wilmington, Inc. (AA+ S&P) 6.30% due 06/15/03.............................. 10,343 ---------- 67,802 ----------
The accompanying notes are an integral part of this financial statement. 90 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- CORPORATE NOTES -- (CONTINUED) EDUCATION -- 0.1% $ 10,900 Harvard University (AAA S&P) 8.125% due 04/15/07............................. $ 12,515 ---------- ELECTRICAL EQUIPMENT -- 0.5% 30,000 Danaher Corp. (A+ S&P) 6.00% due 10/15/08.............................. 30,487 30,000 Rockwell International Corp. (A S&P) 6.70% due 01/15/28.............................. 27,863 ---------- 58,350 ---------- ENERGY & SERVICES -- 0.1% 12,250 Amoco Co. (Aa1 Moody's) 6.50% due 08/01/07.............................. 13,227 1,000 Conoco, Inc. (Baa1 Moody's) 6.95% due 04/15/29.............................. 1,022 @500 Dominion Fiber Ventures LLC (Baa2 Moody's) 7.05% due 03/15/05.............................. 486 750 Tennessee Gas Pipeline Co. (Baa1 Moody's) 7.50% due 04/01/17.............................. 745 1,000 Texaco Capital, Inc. (AA S&P) 8.625% due 06/30/10............................. 1,193 500 Valero Energy Corp. (Baa2 Moody's) 8.375% due 06/15/05............................. 550 ---------- 17,223 ----------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- FINANCIAL SERVICES -- 1.9% $ 40,000 ACE INA Holdings (A2 Moody's) 8.30% due 08/15/06.............................. $ 44,343 @@0 AXA Financial, Inc. (A+ S&P) 7.00% due 04/01/28.............................. 30,464 500 Boeing Capital Corp. (A+ S&P) 6.10% due 03/01/11.............................. 510 1,500 CIT Group, Inc. (The) (AA- Fitch) 7.375% due 03/15/03............................. 1,489 1,000 Citigroup, Inc. (Aa1 Moody's) 6.50% due 01/18/11.............................. 1,040 @16,355 ERAC USA Finance Co. (Baa1 Moody's) 7.35% due 06/15/08.............................. 17,609 1,250 General Motors Acceptance Corp. (A2 Moody's) 6.15% due 04/05/07.............................. 1,261 35,000 General Motors Acceptance Corp. (A2 Moody's) 8.00% due 11/01/31.............................. 35,796 1,000 Goldman Sachs Group, Inc. (The) (AA- Fitch) 6.65% due 05/15/09.............................. 1,027 500 Heller Financial, Inc. (Aaa Moody's) 6.375% due 03/15/06............................. 534 1,500 Inter-American Development Bank (AAA S&P) 7.375% due 01/15/10............................. 1,718 1,000 Lehman Brothers Holdings, Inc. (A+ Fitch) 7.875% due 11/01/09............................. 1,098 1,500 Mellon Funding Corp. (A+ Fitch) 6.375% due 02/15/10............................. 1,578 750 Morgan Stanley Dean Witter & Co. (Aa3 Moody's) 7.75% due 06/15/05.............................. 823 1,250 Santandar Central Hispano Issuances Ltd. (A1 Moody's) 7.625% due 11/03/09............................. 1,376 +500 State Street Corp. (A1 Moody's) 7.65% due 06/15/10.............................. 564 43,000 TXU Eastern Funding Co. (Baa1 Moody's) 6.45% due 05/15/05.............................. 44,094 750 Telecommunications de Puerto Rico (Baa1 Moody's) 6.65% due 05/15/06.............................. 752 1,000 Textron Financial Corp. (A Fitch) 7.125% due 12/09/04............................. 1,053 30,000 Toyota Motor Credit Corp. (AAA S&P) 5.50% due 12/15/08.............................. 30,566 500 Verizon Global Funding Corp. (A1 Moody's) 7.25% due 12/01/10.............................. 505 500 Verizon Global Funding Corp. (A1 Moody's) 7.75% due 12/01/30.............................. 482 1,000 Wells Fargo Bank NA (Aa2 Moody's) 6.45% due 02/01/11.............................. 1,045 ---------- 219,727 ---------- FOOD, BEVERAGE & TOBACCO -- 0.8% 750 Anheuser Busch Cos., Inc. (A1 Moody's) 7.55% due 10/01/30.............................. 862 750 Coca-Cola Bottling Co. (Baa2 Moody's) 6.375% due 05/01/09............................. 764 30,000 Coca-Cola Enterprises, Inc. (A+ Fitch) 6.75% due 09/15/28.............................. 30,291 500 Coca-Cola Enterprises, Inc. (A+ Fitch) 8.50% due 02/01/22.............................. 602 19,555 ConAgra Foods, Inc. (Baa1 Moody's) 7.875% due 09/15/10............................. 21,954 1,500 Pepsi Bottling Group, Inc. (The) (A3 Moody's) 7.00% due 03/01/29.............................. 1,596 35,000 PepsiAmericas, Inc. (A- S&P) 6.375% due 05/01/09............................. 35,187 ---------- 91,256 ----------
The accompanying notes are an integral part of this financial statement. 91 HARTFORD ADVISERS HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- CORPORATE NOTES -- (CONTINUED) INSURANCE -- 2.7% $ 30,000 Allmerica Financial Corp. (A3 Moody's) 7.625% due 10/15/25............................. $ 29,403 24,000 Allstate Corp. (The) (A1 Moody's) 6.75% due 06/15/03.............................. 25,006 26,485 AmerUs Group Co. (BBB+ Fitch) 6.95% due 06/15/05.............................. 27,465 500 American General Corp. (Aaa Moody's) 6.625% due 02/15/29............................. 498 15,740 CIGNA Corp. (A+ S&P) 7.40% due 05/15/07.............................. 17,493 30,000 Cincinnati Financial Corp. (A+ S&P) 6.90% due 05/15/28.............................. 29,256 10,000 Fairfax Financial Holdings (BB+ S&P) 7.75% due 12/15/03.............................. 9,515 @27,000 Jackson National Life Insurance Co. (AA S&P) 8.15% due 03/15/27.............................. 29,212 @30,000 Liberty Mutual Insurance (A- S&P) 8.20% due 05/04/07.............................. 32,263 @10,000 Lumbermens Mutual Casualty (BBB+ S&P) 9.15% due 07/01/26.............................. 8,888 @30,000 New England Mutual Life Insurance Co. (AA- Fitch) 7.875% due 02/15/24............................. 31,455 @1,250 Prudential Insurance Co. of America (A+ S&P) 6.375% due 07/26/06............................. 1,305 1,000 Reliastar Financial Corp. (Aa3 Moody's) 8.00% due 10/30/06.............................. 1,104 27,600 Torchmark Corp. (A S&P) 8.25% due 08/15/09.............................. 30,521 29,000 UnitedHealth Group, Inc. (A S&P) 6.60% due 12/01/03.............................. 30,320 ---------- 303,704 ---------- MACHINERY -- 0.7% 50,000 Eaton Corp. (A2 Moody's) 6.95% due 11/15/04.............................. 53,231 25,000 Parker Hannifin Corp. (A2 Moody's) 5.65% due 09/15/03.............................. 25,860 ---------- 79,091 ---------- MEDIA & ENTERTAINMENT -- 0.5% 1,000 COX Communications, Inc. (BBB+ Fitch) 6.40% due 08/01/08.............................. 925 $ +750 Liberty Media Corp. (Baa3 Moody's) 8.25% due 02/01/30.............................. 699 10,400 Times Mirror Co. (The), Class A (A2 Moody's) 7.50% due 07/01/23.............................. 10,689 9,260 Viacom, Inc. (A3 Moody's) 6.40% due 01/30/06.............................. 9,775 1,500 Viacom, Inc. (A3 Moody's) 7.625% due 01/15/16............................. 1,663 1,250 Vodafone Group PLC (A2 Moody's) 7.875% due 02/15/30............................. 1,301 35,000 Walt Disney Co. (A3 Moody's) 6.375% due 03/01/12............................. 35,648 ---------- 60,700 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.2% +22,000 Becton, Dickinson & Co. (A+ S&P) 6.70% due 08/01/28.............................. 22,107 ----------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- METALS, MINERALS & MINING -- 0.3% $ 30,000 Alcan, Inc. (A2 Moody's) 7.25% due 11/01/28.............................. $ 32,495 1,500 Lockheed Martin Corp. (BBB+ Fitch) 7.65% due 05/01/16.............................. 1,706 ---------- 34,201 ---------- REAL ESTATE -- 0.2% 20,000 Liberty Property Trust (REIT) (Baa2 Moody's) 7.25% due 08/15/07.............................. 21,228 ---------- RETAIL -- 1.5% 40,000 Albertson's, Inc. (Baa1 Moody's) 6.55% due 08/01/04.............................. 42,051 750 Federated Department Stores, Inc. (Baa1 Moody's) 6.30% due 04/01/09.............................. 762 50,000 Home Depot, Inc. (The) (AA S&P) 6.50% due 09/15/04.............................. 53,363 20,200 Target Corp. (A+ S&P) 5.875% due 11/01/08............................. 21,118 50,000 Wal-Mart Stores, Inc. (Aa2 Moody's) 6.875% due 08/10/09............................. 54,924 ---------- 172,218 ---------- SOFTWARE & SERVICES -- 0.2% 25,000 Computer Associates International, Inc. (BBB+ S&P) 6.50% due 04/15/08.............................. 21,499 1,000 Time Warner, Inc. (Baa1 Moody's) 6.875% due 06/15/18............................. 860 ---------- 22,359 ----------
The accompanying notes are an integral part of this financial statement. 92 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- CORPORATE NOTES -- (CONTINUED) TRANSPORTATION -- 0.9% $ 1,500 CSX Corp. (Baa2 Moody's) 7.90% due 05/01/17.............................. $ 1,729 20,839 Continental Airlines, Inc. (AA- S&P) 6.90% due 01/02/18.............................. 20,601 1,000 DaimlerChrysler North America Holding Corp. (A3 Moody's) 7.40% due 01/20/05.............................. 1,057 30,000 DaimlerChrysler North America Holding Corp. (A3 Moody's) 7.75% due 05/27/03.............................. 31,111 750 DaimlerChrysler North America Holding Corp. (A3 Moody's) 7.75% due 01/18/11.............................. 806 +20,000 Dana Corp. (BB S&P) 6.25% due 03/01/04.............................. 18,900 1,500 Ford Motor Co. (Baa1 Moody's) 6.375% due 02/01/29............................. 1,222 35,000 Ford Motor Co. (Baa1 Moody's) 6.625% due 10/01/28............................. 29,513 +500 Norfolk Southern Corp. (Baa1 Moody's) 6.75% due 02/15/11.............................. 530 ---------- 105,469 ---------- UTILITIES -- 1.8% 45,000 Alabama Power Co. (A2 Moody's) 7.125% due 08/15/04............................. 47,973 1,000 Alabama Power Co. (AAA Fitch) 7.125% due 10/01/07............................. 1,087 22,350 Duke Energy Corp. (A1 Moody's) 6.00% due 12/01/28.............................. 19,993 500 El Paso Corp. (Baa2 Moody's) 8.05% due 10/15/30.............................. 473 40,000 Great Plains Energy, Inc. (A2 Moody's) 7.125% due 12/15/05............................. 42,588 1,500 Madison Gas & Electric Co. (Aa3 Moody's) 6.02% due 09/15/08.............................. 1,494 567 Niagara Mohawk Power Co. (A- S&P) 7.625% due 10/01/05............................. 616 17,285 Northern Border Pipeline Co. (A3 Moody's) 7.75% due 09/01/09.............................. 17,986 10,000 Southern California Gas Co. (A+ S&P) 5.75% due 11/15/03.............................. 10,330 750 TransCanada PipeLines Ltd. (A2 Moody's) 6.49% due 01/21/09.............................. 765 700 Williams Cos., Inc. (The) (BBB Fitch) 7.50% due 01/15/31.............................. 503 ---------- 143,808 ---------- Total corporate notes............................. $2,066,071 ========== FOREIGN/YANKEE BONDS & NOTES -- 0.9% FOREIGN CORPORATIONS -- 0.8% $ 30,000 Apache Finance Property Ltd. (A3 Moody's) 7.00% due 03/15/09.............................. $ 32,294 500 Corporacion Andina de Fomento (A2 Moody's) 7.10% due 02/01/03.............................. 508 24,000 Credit National (A1 Moody's) 7.00% due 11/14/05.............................. 25,549 750 France Telecom S.A. (BBB+ Fitch) 8.25% due 03/01/11.............................. 685 15,000 Husky Oil Ltd. (Baa2 Moody's) 6.875% due 11/15/03............................. 15,621 500 Korea Development Bank (A3 Moody's) 7.125% due 04/22/04............................. 530 @19,110 SCL Terminal Aereo Santiago S.A. (Aaa Moody's) 6.95% due 07/01/12.............................. 19,388 ---------- 94,575 ---------- FOREIGN GOVERNMENTS -- 0.1% 9,000 City of Naples Italy (Aa3 Moody's) 7.52% due 07/15/06.............................. 9,481 1,000 Province of British Columbia/Canada (Aa2 Moody's) 6.50% due 01/15/26.............................. 1,019 1,500 Province of Quebec (A1 Moody's) 7.50% due 09/15/29.............................. 1,718 ---------- 12,218 ---------- Total foreign/yankee bonds & notes................ $ 106,793 ==========
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- MUNICIPAL BONDS -- 0.0% EDUCATION -- 0.0% $ 5,285 Mount Sinai School of Medicine (NY) (Aaa Moody's) 6.00% due 07/01/03.............................. $ 5,453 ---------- Total municipal bonds............................. $ 5,453 ========== U.S. TREASURIES & FEDERAL AGENCIES -- 16.1% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.0% $ 697 6.30% due 04/01/08................................ $ 736 8 9.00% due 03/01/21................................ 9 ---------- 745 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.6% 66,818 6.00% due 06/15/24 -- 11/15/31.................... 67,160 37,231 6.50% due 03/15/26 -- 06/15/28.................... 38,181 253,649 7.00% due 12/15/26 -- 05/15/32.................... 263,920 948 7.50% due 09/15/23 -- 09/15/30.................... 1,009 33,097 8.00% due 09/15/26 -- 02/15/31.................... 35,260 843 9.00% due 06/20/16 -- 01/15/23.................... 927 32 9.50% due 05/15/20................................ 35 ---------- 406,492 ----------
The accompanying notes are an integral part of this financial statement. 93 HARTFORD ADVISERS HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- ---------- U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) U.S. GOVERNMENT AGENCIES -- 0.0% $ +50,000 Tennessee Valley Authority 6.00% due 03/15/13.............................. $ 51,935 ---------- U.S. TREASURY BONDS -- 4.5% +1,000 6.00% due 08/15/09................................ 1,086 +480,000 6.25% due 08/15/23................................ 514,285 +2,750 10.375 due 11/15/12............................... 3,535 ---------- 518,906 ---------- U.S. TREASURY NOTES -- 8.0% +200,000 3.25% due 12/31/03................................ 202,269 +500,000 3.375% due 04/30/04............................... 505,275 +8,000 4.625% due 05/16/06............................... 8,240 +5,000 5.00% due 02/15/11................................ 5,085 +10,000 5.625% due 02/15/06............................... 10,652 +100,000 6.50% due 08/15/05................................ 108,906 +10,000 6.625% due 05/15/07............................... 11,120 +50,000 7.25% due 08/15/04................................ 54,383 ---------- 905,930 ---------- Total U.S. treasuries & federal agencies........................................ $1,884,008 ========== SHARES ---------- WARRANTS -- 0.0% 59 Dime Bancorp, Inc. ............................... $ 6 *@@0 @ Track Communications, Inc. ..................... 0 ---------- Total warrants.................................... $ 6 ========== PRINCIPAL AMOUNT ---------- SHORT-TERM SECURITIES -- 1.0% REPURCHASE AGREEMENT -- 1.0% 111,341 Joint Repurchase Agreement (See Note 2(d)) 1.884% due 07/01/02............................. $ 111,341 ---------- Total short-term securities....................... $ 111,341 ==========
MARKET VALUE ----------- DIVERSIFICATION OF NET ASSETS: Total collateralized mortgage obligations (cost $130,932)................................. 1.2% $ 140,186 Total common stocks (cost $7,307,752)............. 61.5 6,992,396 Total corporate notes (cost $2,023,371)........... 18.6 2,066,071 Total foreign/yankee bonds & notes (cost $100,737)................................. 0.9 106,793 Total municipal bonds (cost $5,265)............... 0.0 5,453 Total U.S. treasuries & federal agencies (cost $1,829,663)............................... 16.1 1,884,009 Total warrants (cost $5).......................... 0.0 6 Total short-term securities (cost $111,341)................................. 1.0 111,341 ------ ----------- Total investment in securities (total cost $11,509,066)........................ 99.3 11,306,254 Cash, receivables and other assets................ 0.9 76,375 Securities lending collateral (See Note 2(i))................................. 13.8 1,566,564 Payable for securities purchased.................. (0.1) (11,123) Payable for Fund shares redeemed.................. (0.1) (8,980) Securities lending collateral payable to brokers (See Note 2(i))......................... (13.8) (1,566,564) Other liabilities................................. (0.0) (709) ------ ----------- Net assets........................................ 100.0% $11,361,817 ====== ===========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 7,000,000 shares authorized; 5,486,507 shares outstanding................................. $ 548,651 Capital surplus............................... 11,344,292 Accumulated undistributed net investment income...................................... 135,034 Accumulated undistributed net realized loss on investments.............................. (463,348) Unrealized depreciation of investments........ (202,812) ----------- Net assets.................................... $11,361,817 ===========
Class IA Net asset value per share ($10,767,495 / 5,201,343 shares outstanding) (6,500,000 shares authorized)...................................... $2.07 ===== Class IB Net asset value per share ($594,322 / 285,164 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 June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $213,866 or 1.9% of net assets. @@ 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. 94 HARTFORD HIGH YIELD HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CONVERTIBLE BONDS -- 0.3% UTILITIES -- 0.3% $ @735 Calpine Corp. (Ba1 Moody's) 4.00% due 12/26/06.............................. $ 547 -------- Total convertible bonds........................... $ 547 ======== SHARES --------- CONVERTIBLE PREFERRED STOCKS -- 0.0% COMMUNICATIONS -- 0.0% 21 Adelphia Communications, Inc. .................... $ 3 15 McLeodUSA, Inc. .................................. 53 -------- 56 -------- Total convertible preferred stocks................ $ 56 ======== PRINCIPAL AMOUNT --------- CORPORATE NOTES -- 81.5% AEROSPACE & DEFENSE -- 0.1% $ 125 Sequa Corp. (Ba3 Moody's) 8.875% due 04/01/08............................. $ 125 -------- AGRICULTURE & FISHING -- 0.5% @950 Dole Food Co., Inc. (Ba1 Moody's) 7.25% due 05/01/09.............................. 971 -------- APPAREL & TEXTILE -- 0.1% @260 Collins & Aikman Floor Cover (B2 Moody's) 9.75% due 02/15/10.............................. 265 -------- BANKS -- 0.5% 780 Sovereign Bancorp, Inc. (Ba2 Moody's) 8.625% due 03/15/04............................. 814 225 Western Financial Bank (B1 Moody's) 9.625% due 05/15/12............................. 225 -------- 1,039 -------- BUSINESS SERVICES -- 0.7% +1,620 Encompass Services Corp. (Caa2 Moody's) 10.50% due 05/01/09............................. 923 150 Interpool, Inc. (Ba3 Moody's) 7.35% due 08/01/07.............................. 145 380 United Rentals (North America), Inc. (B1 Moody's) 10.75% due 04/15/08............................. 407 -------- 1,475 -------- CHEMICALS -- 6.6% 650 ARCO Chemical Co. (Ba3 Moody's) 9.80% due 02/01/20.............................. 553 3,190 Equistar Chemicals LP (B1 Moody's) 7.55% due 02/15/26.............................. 2,305 +500 Equister Chemicals LP (B1 Moody's) 8.75% due 02/15/09.............................. 447 1,050 Ferro Corp. (Baa3 Moody's) 9.125% due 01/01/09............................. 1,128 $ +895 General Chemical Industrial Products, Inc. (Caa2 Moody's) 10.625% due 05/01/09............................ 716 +815 Georgia Gulf Corp. (B2 Moody's) 10.375% due 11/01/07............................ 872 +210 Huntsman ICI Chemicals LLC (Caa1 Moody's) 10.125% due 07/01/09............................ 188 675 IMC Global, Inc. (B+ S&P) 7.625% due 11/01/05............................. 637 750 IMC Global, Inc. (BB S&P) 11.25% due 06/01/11............................. 810 +795 Lyondell Chemical Co. (Ba3 Moody's) 9.625% due 05/01/07............................. 759 750 Lyondell Chemical Co. (Ba3 Moody's) 9.875% due 05/01/07............................. 718 +350 Millennium America, Inc. (Ba1 Moody's) 7.00% due 11/15/06.............................. 332 1,800 Millennium America, Inc. (Ba1 Moody's) 7.625% due 11/15/26............................. 1,476 1,200 Olin Corp. (Baa3 Moody's) 9.125% due 12/15/11............................. 1,300 @1,000 PolyOne Corp. (Baa3 Moody's) 8.875% due 05/01/12............................. 1,032 +1,470 Solutia, Inc. (CCC+ Fitch) 7.375% due 10/15/27............................. 972 -------- 14,245 -------- COMMUNICATIONS -- 12.7% @1,350 AT&T Corp. (Baa2 Moody's) 8.00% due 11/15/31.............................. 1,060 +660 Avaya, Inc. (BB- S&P) 11.125% due 04/01/09............................ 604 +300 Centennial Communications Corp. (B3 Moody's) 10.75% due 12/15/08............................. 144 +400 Century Communications Corp. (D S&P) 8.875% due 01/15/07............................. 122 500 Crown Castle International Corp. (B3 Moody's) 10.75% due 08/01/11............................. 330 +525 Deutsche Telekom International Finance BV (Baa1 Moody's) 9.25% due 06/01/32.............................. 529 1,925 EchoStar DBS Corp. (B1 Moody's) 9.375% due 02/01/09............................. 1,781 5,466 Global Crossing Holdings Ltd. (D S&P) 9.50% due 11/15/09.............................. 55 4,535 Global Crossing Holdings Ltd. (D S&P) 9.625% due 05/15/08............................. 45 200 Level 3 Communications, Inc. (Caa3 Moody's) 0.00% due 03/15/10.............................. 34 2,775 Level 3 Communications, Inc. (Caa3 Moody's) 9.125% due 05/01/08............................. 944
The accompanying notes are an integral part of this financial statement. 95 HARTFORD HIGH YIELD HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) COMMUNICATIONS -- (CONTINUED) $ 865 Level 3 Communications, Inc. (Caa3 Moody's) 11.00% due 03/15/08............................. $ 298 5,000 Level 3 Communications, Inc. (Caa3 Moody's) 11.25% due 03/15/10............................. 1,725 225 Loral Space & Communications Ltd. (Ca Moody's) 9.50% due 01/15/06.............................. 146 6,332 Lucent Technologies, Inc. (B2 Moody's) 6.45% due 03/15/29.............................. 3,261 3,150 Metromedia Fiber Network, Inc. (D S&P) 10.00% due 11/15/08............................. 32 365 Metromedia Fiber Network, Inc. (D S&P) 10.00% due 12/15/09............................. 4 1,050 NTL Communications Corp. (Ca Moody's) 0.00% due 10/01/08.............................. 210 1,430 NTL Communications Corp. (Ca Moody's) 11.875% due 10/01/10............................ 379 EUR1,280 NTL Communications Corp. (Ca Moody's) 12.375% due 02/01/08............................ 392 +400 NTL, Inc. (Ca Moody's) 0.00% due 02/01/06.............................. 106 745 Nextel Communications, Inc. (B3 Moody's) 9.375% due 11/15/09............................. 378 3,275 Nortel Networks Corp. (Ba3 Moody's) 6.125% due 02/15/06............................. 1,867 835 Nortel Networks Corp. (Ba3 Moody's) 6.875% due 09/01/23............................. 418 570 PanAmSat Corp. (Ba2 Moody's) 6.375% due 01/15/08............................. 516 2,570 PanAmSat Corp. (Ba2 Moody's) 6.875% due 01/15/28............................. 2,033 @665 PanAmSat Corp. (B S&P) 8.50% due 02/01/12.............................. 612 550 Psinet, Inc. (D S&P) 11.00% due 08/01/09............................. 54 +2,520 Qwest Capital Funding, Inc. (Ba2 Moody's) 5.875% due 08/03/04............................. 1,638 +1,100 Qwest Corp. (BB S&P) 7.625% due 06/09/03............................. 1,012 880 Rcn Corp. (Ca Moody's) 0.00% due 02/15/08.............................. 167 +600 Rogers Cantel, Inc. (BB+ S&P) 9.375% due 06/01/08............................. 414 +575 Rogers Cantel, Inc. (BB+ S&P) 9.75% due 06/01/16.............................. 403 2,200 Sprint Capital Corp. (Baa3 Moody's) 7.90% due 03/15/05.............................. 1,895 +150 United Pan-Europe Communications N.V. (Ca Moody's) 10.875% due 08/01/09............................ 20 @@0 Voicestream Wireless Corp. (Baa2 Moody's) 10.375% due 11/15/09............................ 0 @@17 Voicestream Wireless Corp. (Baa2 Moody's) 10.375% due 11/15/09............................ 0 2,275 Williams Communications Group, Inc. (Ca Moody's) 10.875% due 10/01/09............................ 188 4,580 Williams Communications Group, Inc. (Ca Moody's) 11.70% due 08/01/08............................. 355 1,000 Williams Communications Group, Inc. (Ca Moody's) 11.875% due 08/01/10............................ 78 525 Williams Cos., Inc. (The) (Baa3 Moody's) 6.50% due 08/01/06.............................. 427 @800 Williams Cos., Inc. (The) (Baa3 Moody's) 8.75% due 03/15/32652........................... 652 +1,925 WorldCom, Inc. (Ca Moody's) 7.50% due 05/15/11.............................. 289 +9,590 WorldCom, Inc. (Ca Moody's) 8.25% due 05/15/31.............................. 1,439 600 XO Communications, Inc. (Ca Moody's) 0.00% due 12/01/09.............................. 9 750 XO Communications, Inc. (Ca Moody's) 10.50% due 12/01/09............................. 19 445 XO Communications, Inc. (Ca Moody's) 10.75% due 11/15/08............................. 11 1,990 XO Communications, Inc. (Ca Moody's) 12.50% due 04/15/06............................. 50 -------- 27,145 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CONSTRUCTION -- 1.0% $ @1,100 Champion Home Builders Co. (B2 Moody's) 11.25% due 04/15/07............................. $ 935 150 Del Webb Corp. (Ba1 Moody's) 9.375% due 05/01/09............................. 159 +395 Integrated Electrical Services, Inc. (B2 Moody's) 9.375% due 02/01/09............................. 379 350 Kaufman and Broad Home Corp. (Ba2 Moody's) 7.75% due 10/15/04.............................. 354 100 MDC Holdings, Inc. (Ba1 Moody's) 8.375% due 02/01/08............................. 101 125 Toll Corp. (Ba2 Moody's) 7.75% due 09/15/07.............................. 122 +100 Toll Corp. (Ba2 Moody's) 8.75% due 11/15/06.............................. 102 -------- 2,152 -------- CONSUMER DURABLES -- 1.0% @2,120 Owens-Brockway Glass Container, Inc. (B2 Moody's) 8.875% due 02/15/09............................. 2,120 -------- CONSUMER NON-DURABLES -- 2.3% 597 Armkel LLC (B- S&P) 9.50% due 08/15/09.............................. 621 @825 Fleming Cos., Inc. (B2 Moody's) 9.875% due 05/01/12............................. 780
The accompanying notes are an integral part of this financial statement. 96 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) CONSUMER NON-DURABLES -- (CONTINUED) $ @750 Johnsondiversey, Inc. (B2 Moody's) 9.625% due 05/15/12............................. $ 784 275 Methanex Corp. (Ba1 Moody's) 8.75% due 08/15/12.............................. 281 @1,525 Xerox Corp. (B1 Moody's) 9.75% due 01/15/09.............................. 1,251 1,550 Xerox Credit Corp. (B1 Moody's) 6.10% due 12/16/03.............................. 1,318 -------- 5,035 -------- CONSUMER SERVICES -- 2.0% +3,080 Service Corp. International (B1 Moody's) 6.50% due 03/15/08.............................. 2,737 +830 Service Corp. International (B1 Moody's) 6.875% due 10/01/07............................. 753 400 Service Corp. International (B1 Moody's) 7.875% due 02/01/13............................. 363 450 Service Corp. International/US (B1 Moody's) 6.30% due 03/15/03.............................. 446 -------- 4,299 -------- DRUGS -- 0.6% 485 Alaris Medical Systems, Inc. (B2 Moody's) 11.625% due 12/01/06............................ 546 800 Watson Pharmaceuticals, Inc. (Ba1 Moody's) 7.125% due 05/15/08............................. 786 -------- 1,332 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- ENERGY & SERVICES -- 6.7% $ 200 Belco Oil & Gas Corp. (Ba3 Moody's) 8.875% due 09/15/07............................. $ 206 +125 Clark Refining & Marketing, Inc. (Ba3 Moody's) 8.625% due 08/15/08............................. 121 +75 Cross Timbers Oil Co. (Ba3 Moody's) 8.75% due 11/01/09.............................. 79 200 Key Energy Services, Inc. (Ba3 Moody's) 8.375% due 03/01/08............................. 205 1,300 Newpark Resources, Inc. (B2 Moody's) 8.625% due 12/15/07............................. 1,255 375 Nuevo Energy Co. (B2 Moody's) 9.375% due 10/01/10............................. 375 +553 Nuevo Energy Co. (B2 Moody's) 9.50% due 06/01/08.............................. 557 +242 Peabody Energy Corp. (B1 Moody's) 9.625% due 05/15/08............................. 256 1,750 Pioneer Natural Resources Co. (BB Fitch) 6.50% due 01/15/08.............................. 1,666 1,300 Pioneer Natural Resources Co. (BB Fitch) 7.20% due 01/15/28.............................. 1,163 500 Pioneer Natural Resources Co. (BB Fitch) 9.625% due 04/01/10............................. 550 @800 Plains E&P Co. (B2 Moody's) 8.75% due 07/01/12.............................. 787 550 Plains Resources, Inc. (B2 Moody's) 10.25% due 03/15/06............................. 568 260 Pogo Producing Co. (B1 Moody's) 8.25% due 04/15/11.............................. 260 850 Pogo Producing Co. (B1 Moody's) 10.375% due 02/15/09............................ 914 +1,685 Swift Energy Co. (B3 Moody's) 10.25% due 08/01/09............................. 1,643 635 Tesoro PeToleum Corp. (B2 Moody's) 9.00% due 07/01/08.............................. 578 +500 Tesoro Petroleum Corp. (B2 Moody's) 9.625% due 11/01/08............................. 463 @580 Tesoro Petroleum Corp. (B2 Moody's) 9.625% due 04/01/12............................. 531 400 Varco International, Inc. (Baa2 Moody's) 7.50% due 02/15/08.............................. 419 @2,000 Vintage Petroleum, Inc. (Ba3 Moody's) 8.25% due 05/01/12.............................. 1,965 +60 Vintage Petroleum, Inc. (B S&P) 9.00% due 12/15/05.............................. 59 125 Vintage Petroleum, Inc. (B S&P) 9.75% due 06/30/09.............................. 122 -------- 14,742 -------- FINANCIAL SERVICES -- 1.1% +2,410 Calpine Canada Energy Finance ULC (B1 Moody's) 8.50% due 05/01/08.............................. 1,651 1,470 Enron Corp. (Ca Moody's) 6.95% due 07/15/28.............................. 191 575 Transcontinental Gas Pipe LN (Baa2 Moody's) 6.125% due 01/15/05............................. 548 -------- 2,390 -------- FOOD, BEVERAGE & TOBACCO -- 2.4% @170 B&G Foods, Inc. (B3 Moody's) 9.625% due 08/01/07............................. 174 @1,050 Burns Philp Capital Property Ltd. (B2 Moody's) 9.75% due 07/15/12.............................. 1,040 390 Hercules, Inc. (BB- Fitch) 6.60% due 08/01/27.............................. 383 +1,400 Hercules, Inc. (BB- S&P) 11.125% due 11/15/07............................ 1,568 +917 Ingles Markets, Inc. (B+ S&P) 8.875% due 12/01/11............................. 912 @1,120 Land O' Lakes, Inc. (Ba3 Moody's) 8.75% due 11/15/11.............................. 1,053 -------- 5,130 -------- FOREST & PAPER PRODUCTS -- 6.9% 500 Boise Cascade Corp. (BB+ S&P) 7.35% due 02/01/16.............................. 471 1,460 Boise Cascade Corp. (BB+ S&P) 7.50% due 02/01/08.............................. 1,481
The accompanying notes are an integral part of this financial statement. 97 HARTFORD HIGH YIELD HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) FOREST & PAPER PRODUCTS -- (CONTINUED) $ +1,525 Georgia-Pacific Corp. (Ba1 Moody's) 7.50% due 05/15/06.............................. $ 1,469 320 Georgia-Pacific Corp. (Ba1 Moody's) 8.875% due 05/15/31............................. 301 825 Georgia-Pacific Corp. (Ba1 Moody's) 9.875% due 11/01/21............................. 809 @780 Longview Fibre Co. (B2 Moody's) 10.00% due 01/15/09............................. 809 +945 Louisiana-Pacific Corp. (BB- S&P) 8.50% due 08/15/05.............................. 997 880 Pactiv Corp. (Baa3 Moody's) 8.125% due 06/15/17............................. 1,002 +1,110 Potlatch Corp. (Ba1 Moody's) 10.00% due 07/15/11............................. 1,215 1,350 Potlatch Corp. (Baa3 Moody's) 9.425% due 12/01/09............................. 1,528 2,550 Stone Container Corp. (B2 Moody's) 9.75% due 02/01/11.............................. 2,725 620 Tembec Industries, Inc. (Ba1 Moody's) 7.75% due 03/15/12.............................. 615 +875 Tembec Industries, Inc. (Ba1 Moody's) 8.50% due 02/01/11.............................. 901 550 Tembec Industries, Inc. (Ba1 Moody's) 8.625% due 06/30/09............................. 567 -------- 14,890 -------- HEALTH SERVICES -- 3.8% 530 Columbia/HCA Healthcare Corp. (Ba1 Moody's) 7.50% due 11/15/95.............................. 502 530 HEALTH SOUTH Corp. (Ba1 Moody's) 6.875% due 06/15/05............................. 528 +190 HEALTH SOUTH Corp. (Ba2 Moody's) 10.75% due 10/01/08............................. 210 305 Hanger Orthopedic Group, Inc. (B- S&P) 10.375% due 02/15/09............................ 317 1,595 IASIS Healthcare Corp. (CCC+ S&P) 13.00% due 10/15/09............................. 1,675 @390 Magellan Health Services, Inc. (B3 Moody's) 9.375% due 11/15/07............................. 293 +1,655 Magellan Health Services, Inc. (Caa1 Moody's) 9.00% due 02/15/08.............................. 596 1,400 Manor Care, Inc. (Ba1 Moody's) 7.50% due 06/15/06.............................. 1,447 500 Manor Care, Inc. (Ba1 Moody's) 8.00% due 03/01/08.............................. 516 +980 Select Medical Corp. (B3 Moody's) 9.50% due 06/15/09.............................. 1,000 @170 Silgan Holdings, Inc. (B S&P) 9.00% due 06/01/09.............................. 175 240 Vanguard Health Systems, Inc. (B3 Moody's) 9.75% due 08/01/11.............................. 250 @570 Ventas Realty LP/Ventas Capital Corp. (Ba3 Moody's) 8.75% due 05/01/09.............................. 576 -------- 8,085 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- HOTELS & GAMING -- 4.5% $ @600 Hammons (John Q) Hotels LP/Hammons (John Q) Hotels Finance Corp. III (Ba2 Moody's) 8.875% due 05/15/12............................. $ 588 2,100 Hilton Hotels Corp. (Ba1 Moody's) 7.625% due 05/15/08............................. 2,143 +840 Hilton Hotels Corp. (Ba1 Moody's) 8.25% due 02/15/11.............................. 872 200 MGM Mirage, Inc. (Ba1 Moody's) 6.875% due 02/06/08............................. 195 1,940 Mirage Resorts, Inc. (Ba1 Moody's) 7.25% due 10/15/06.............................. 1,988 +750 Penn National Gaming, Inc. (B3 Moody's) 8.875% due 03/15/10............................. 741 500 Penn National Gaming, Inc. (B3 Moody's) 11.125% due 03/01/08............................ 539 @60 RFS Partnership LP (B1 Moody's) 9.75% due 03/01/12.............................. 61 @315 Russell Corp. (B1 Moody's) 9.25% due 05/01/10.............................. 324 @1,650 Starwood Hotels & Resorts Worldwide, Inc. (Ba1 Moody's) 7.375% due 05/01/07............................. 1,623 +50 Starwood Hotels & Resorts, Inc. (Ba1 Moody's) 6.75% due 11/15/05.............................. 49 @515 Venetian Casino Resort LLC (Caal Moody's) 11.00% due 06/15/10............................. 518 -------- 9,641 -------- INSURANCE -- 0.1% 250 AdvancePCS (Ba2 Moody's) 8.50% due 04/01/08.............................. 258 -------- MACHINERY -- 0.8% +315 Briggs & Stratton Corp. (Ba1 Moody's) 8.875% due 03/15/11............................. 331 200 Joy Global, Inc. (B2 Moody's) 8.75% due 03/15/12.............................. 205 +1,050 Terex Corp. (B2 Moody's) 10.375% due 04/01/11............................ 1,129 -------- 1,665 -------- MEDIA & ENTERTAINMENT -- 7.2% 2,525 Allegiance Telecom, Inc. (Caa2 Moody's) 0.00% due 02/15/08.............................. 278 2,150 British Sky Broadcasting Group PLC (Ba1 Moody's) 8.20% due 07/15/09.............................. 2,113
The accompanying notes are an integral part of this financial statement. 98 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) MEDIA & ENTERTAINMENT -- (CONTINUED) $ +1,275 CSC Holdings, Inc. (Ba2 Moody's) 7.625% due 04/01/11............................. $ 1,026 125 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 0.00% due 01/15/11.............................. 47 +940 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 8.625% due 04/01/09............................. 630 @990 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 9.625% due 11/15/09............................. 658 570 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 10.00% due 04/01/09............................. 393 +1,270 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 10.00% due 05/15/11............................. 857 2,225 Charter Communications Holdings LLC/ Charter Communications Holdings Capital Corp. (B2 Moody's) 10.75% due 10/01/09............................. 1,563 980 Fox Sports Networks LLC (Ba1 Moody's) 0.00% due 08/15/07.............................. 1,000 745 Fox Sports Networks LLC (Ba1 Moody's) 8.875% due 08/15/07............................. 767 +1,200 Hollinger International Publishing, Inc. (B+ S&P) 9.25% due 02/01/06.............................. 1,236 8,134 Marconi Corp., PLC (C S&P) 8.375% due 09/15/30............................. 2,440 +250 PRIMEDIA, Inc. (B3 Moody's) 10.25% due 06/01/04............................. 213 350 PRIMEDIA, Inc. (B3 Moody's) 7.625% due 04/01/08............................. 252 700 PRIMEDIA, Inc. (B3 Moody's) 8.50% due 02/01/06.............................. 539 350 Park Place Entertainment Corp. (Ba2 Moody's) 9.375% due 02/15/07............................. 366 +435 Quebecor Media, Inc. (B2 Moody's) 11.125% due 07/15/11............................ 428 1,080 Time Warner Telecom, Inc. (B3 Moody's) 9.75% due 07/15/08.............................. 518 225 World Color Press, Inc. (BB Fitch) 7.75% due 02/15/09.............................. 231 -------- 15,555 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.8% 390 Apogent Technologies, Inc. (Baa3 Moody's) 8.00% due 04/01/11.............................. 431 250 Owens & Minor, Inc. (B Fitch) 8.50% due 07/15/11.............................. 257 +1,020 United Surgical Partners International, Inc. (B3 Moody's) 10.00% due 12/15/11............................. 1,056 -------- 1,744 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- METALS, MINERALS & MINING -- 5.2% $ +2,455 AK Steel Holding Corp. (B1 Moody's) 7.875% due 02/15/09............................. $ 2,455 325 Compass Minerals Groups, Inc. (B3 Moody's) 10.00% due 08/15/11............................. 343 510 Crown Cork & Seal Co., Inc. (Ca Moody's) 6.75% due 04/15/03.............................. 462 495 Crown Cork & Seal Co., Inc. (Ca Moody's) 8.00% due 04/15/23.............................. 307 290 Cyprus Amax Minerals Co. (Baa3 Moody's) 8.375% due 02/01/23............................. 244 @375 Jorgensen (Earle M.) Co. (B- S&P) 9.75% due 06/01/12.............................. 369 300 Lukens, Inc. (Ca Moody's) 7.625% due 08/01/04............................. 12 270 Newmont Mining Corp. (BB+ Fitch) 8.625% due 05/15/11............................. 304 990 Phelps Dodge Corp. (Baa3 Moody's) 8.75% due 06/01/11.............................. 1,021 2,650 Phelps Dodge Corp. (Baa3 Moody's) 9.50% due 06/01/31.............................. 2,720 100 Placer Dome, Inc. (Baa2 Moody's) 7.125% due 06/15/07............................. 105 560 Santa Fe Pacific Gold Corp. (Baa3 Moody's) 8.375% due 07/01/05............................. 590 @2,125 United States Steel LLC (Ba3 Moody's) 10.75% due 08/01/08............................. 2,210 -------- 11,142 -------- REAL ESTATE -- 0.8% +325 HMH Properties, Inc. (Ba3 Moody's) 8.45% due 12/01/08.............................. $ 319 1,330 Stewart Enterprises, Inc. (B2 Moody's) 10.75% due 07/01/08............................. 1,470 -------- 1,789 -------- RETAIL -- 1.4% 348 Dillard's, Inc. (Ba3 Moody's) 6.625% due 01/15/18............................. 291 255 Dillard's, Inc. (Ba3 Moody's) 7.13% due 08/01/18.............................. 212 +1,175 Gap, Inc. (The) (Ba3 Moody's) 9.90% due 12/15/05.............................. 1,202 1,450 Penney (J.C.) Co., Inc. (Ba3 Moody's) 8.25% due 08/15/22.............................. 1,272 -------- 2,977 --------
The accompanying notes are an integral part of this financial statement. 99 HARTFORD HIGH YIELD HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) RUBBER & PLASTICS PRODUCTS -- 0.6% $ @295 Foamex LP (B3 Moody's) 10.75% due 04/01/09............................. $ 301 +855 Plastipak Holdings, Inc. (B3 Moody's) 10.75% due 09/01/11............................. 938 -------- 1,239 -------- TRANSPORTATION -- 3.1% +860 AMR Corp. (B1 Moody's) 9.00% due 08/01/12.............................. 792 @900 CP Ships Ltd. (Ba3 Moody's) 10.375% due 07/15/12............................ 887 +1,805 Delta Air Lines, Inc. (Ba3 Moody's) 8.30% due 12/15/29.............................. 1,439 633 Delta Air Lines, Inc. (Ba3 Moody's) 9.00% due 05/15/16.............................. 603 1,140 Sequa Corp. (Ba3 Moody's) 9.00% due 08/01/09.............................. 1,146 +100 United Air Lines, Inc. (Caa1 Moody's) 9.125% due 01/15/12............................. 50 1,945 United Air Lines, Inc. (Caa1 Moody's) 9.75% due 08/15/21.............................. 973 800 United Air Lines, Inc. (Caa1 Moody's) 10.67% due 05/01/04............................. 600 -------- 6,490 --------
PRINCIPAL MARKET AMOUNT I VALUE --------- -------- UTILITIES -- 8.0% $ 345 AES Corp. (The) (Ba3 Moody's) 8.875% due 02/15/11............................. $ 214 +375 AES Corp. (The) (Ba3 Moody's) 9.50% due 06/01/09.............................. 248 405 Allied Waste North America, Inc. (Ba3 Moody's) 7.625% due 01/01/06............................. 391 450 Browning-Ferris Industries, Inc. (Ba3 Moody's) 6.375% due 01/15/08............................. $ 390 1,505 Browning-Ferris Industries, Inc. (Ba3 Moody's) 7.40% due 09/15/35.............................. 1,185 500 Browning-Ferris Industries, Inc. (Ba3 Moody's) 7.875% due 03/15/05............................. 491 +120 CMS Energy Corp. (B3 Moody's) 8.50% due 04/15/1............................... 85 815 CMS Energy Corp. (B3 Moody's) 8.90% due 07/15/08.............................. 587 155 Calpine Corp. (B1 Moody's) 8.50% due 02/15/11.............................. 104 200 Calpine Corp. (B1 Moody's) 8.625% due 08/15/10............................. 130 500 Cogentrix Energy, Inc. (BB+ S&P) 8.75% due 10/15/08.............................. 496 125 El Paso Electric Co. (Baa3 Moody's) 9.40% due 05/01/11.............................. 137 @2,000 IPC Acquisition Corp. (B3 Moody's) 11.50% due 12/15/09............................. 1,920 560 Kansas Gas & Electric Co. (Ba1 Moody's) 6.50% due 08/01/05.............................. 553 585 Kansas Gas & Electric Co. (Ba1 Moody's) 7.60% due 12/15/03.............................. 587 +4,290 Mission Energy Holding (BB- S&P) 13.50% due 07/15/08............................. 4,311 1,130 Sierra Pacific Power Co. (Ba2 Moody's) 8.00% due 06/01/08.............................. 1,068 @1,100 Transcontinental Gas Pipe LN (Baa2 Moody's) 8.875% due 07/15/12............................. 1,073 1,150 Waste Management, Inc. (Ba1 Moody's) 6.50% due 11/15/08.............................. 1,163 1,000 Westar Energy, Inc. (B1 Moody's) 7.65% due 04/15/23.............................. 856 @1,000 Westar Energy, Inc. (B1 Moody's) 7.875% due 05/01/07............................. 993 -------- 16,982 -------- Total corporate notes............................. $174,922 ======== FOREIGN/YANKEE BONDS & NOTES -- 9.9% FOREIGN CORPORATIONS -- 7.6% $ 1,863 AT&T Canada, Inc. (Ca Moody's) 7.625% due 03/15/05............................. $ 224 765 Acetex Corp. (B2 Moody's) 10.875% due 08/01/09............................ 799 1,175 Asia Global Crossing Ltd. (Ca Moody's) 13.375% due 10/15/10............................ 232 @@3,033 Australia Media Ltd. (D S&P) 15.75% due 05/15/03............................. 0 1,150 Callahan Nordhein-Westfalen GmbH (Ca Moody's) 14.00% due 07/15/10............................. 46 EUR 381 Flowserve Finance B.V. (B S&P) 12.25% due 08/15/10............................. $ 429 810 Focal Communications Corp. (CC S&P) 11.875% due 01/15/10............................ 130 450 Focal Communications Corp. (CC S&P) 0.00% due 02/15/08.............................. 32 840 France Telecom S.A. (Baa3 Moody's) 9.00% due 03/01/31.............................. 743 900 Inco Ltd. (Baa3 Moody's) 9.60% due 06/15/22.............................. 952 EUR 780 KPNQwest N.V. (Ca Moody's) 7.125% due 06/01/09............................. 7 2,665 KPNQwest N.V. (Ca Moody's) 8.125% due 06/01/09............................. 13 EUR 585 Kappa Beheer B.V. (B S&P) 10.625% due 07/15/09............................ 624 EUR1,175 Level 3 Communications, Inc. (Caa3 Moody's) 11.25% due 03/15/10............................. 522 @785 Magnum Hunter Resources, Inc. (B2 Moody's) 9.60% due 03/15/12.............................. 809
The accompanying notes are an integral part of this financial statement. 100 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT I VALUE --------- -------- FOREIGN/YANKEE BONDS & NOTES -- (CONTINUED) FOREIGN CORPORATIONS -- (CONTINUED) EUR1,250 Messer Griesheim Holdings AG (B2 Moody's) 10.375% due 06/01/11............................ $ 1,321 EUR 450 Metromedia Fiber Network, Inc. (D S&P) 10.00% due 12/15/09............................. 27 EUR1,025 NTL Communications Corp. (Ca Moody's) 9.875% due 11/15/09............................. 314 +1,095 Nova Chemicals Ltd. (Baa3 Moody's) 7.00% due 05/15/06.............................. 1,093 700 ONO Finance PLC (Caa2 Moody's) 13.00% due 05/01/09............................. 252 2,850 Petroleum Geo-Services ASA (Ba1 Moody's) 7.125% due 03/30/28............................. 1,910 1,085 Petroleum Geo-Services ASA (Ba1 Moody's) 8.15% due 07/15/29.............................. 760 1,010 Quebecor Media, Inc. (B2 Moody's) 11.125% due 07/15/11............................ 995 950 Teekay Shipping Corp. (Ba1 Moody's) 8.32% due 02/01/08.............................. 993 1,905 Telewest Communication PLC (CCC- S&P) 11.00% due 10/01/07............................. 762 1,040 Telewest Communications PLC (Caa3 Moody's) 9.625% due 10/01/06............................. 406 EUR 670 United Pan-Europe Communications N.V. (Ca Moody's) 10.875% due 11/01/07............................ 79 +1,155 XTO Energy, Inc. (Ba2 Moody's) 7.50% due 04/15/12.............................. 1,178 +600 Xerox Capital (Europe) PLC (B1 Moody's) 5.875% due 05/15/04............................. 492 1,150 eKabel Holdings GmbH (Ca Moody's) 14.50% due 09/01/10............................. 282 -------- 16,426 -------- FOREIGN GOVERNMENTS -- 2.3% EUR1,135 France BTAN (AAA S&P) 4.50% due 07/12/03.............................. 1,130 250 Republic of Brazil (B1 Moody's) 12.75% due 01/15/20............................. 149 250 Republic of Colombia (Ba2 Moody's) 8.375% due 02/15/27............................. 179 $ @17 Republic of Ecuador (Caa2 Moody's) 12.00% due 11/15/12............................. 12 @290 Republic of Ecuador (Caa2 Moody's) 5.00% due 08/15/30.............................. 146 EUR @600 Russian Federation (Ba3 Moody's) 11.00% due 07/24/18............................. 645 GBP 1,620 UK Treasury Gilt (Aaa1 Moody's) 8.00% due 06/10/03.............................. 2,549 -------- 4,810 -------- Total foreign/yankee bonds & notes................ $ 21,236 ======== SHARES --------- PREFERRED STOCKS -- 0.4% COMMUNICATIONS -- 0.0% 8 NEXTLINK Communications, Inc. .................... $ 8 -------- ELECTRONICS -- 0.1% @4 Xerox Corp........................................ 211 -------- METALS, MINERALS & MINING -- 0.3% 29 Rio Algom Ltd. ................................... 717 -------- Total preferred stocks............................ $ 936 ========
SHARES --------- PRINCIPAL AMOUNT --------- U.S. TREASURIES & FEDERAL AGENCIES -- 1.1% U.S. TREASURY NOTES -- 1.1% $ 2,250 4.375% due 05/15/07............................... $ 2,281 -------- Total U.S. treasuries & federal agencies.......... $ 2,281 ======== SHARES --------- WARRANTS -- 0.0% $ * @@0 @Track Communications, Inc. ...................... $ 0 *@@0 Hosiery Corp. .................................... 0 @@4 Marvel Enterprises, Inc. ......................... 0 *@@33 McLeodUSA, Inc. .................................. 0 3 Powertel, Inc. ................................... 22 1 Splitrock Services, Inc. ......................... 4 5 TELUS Corp. ...................................... 5 -------- Total warrants.................................... $ 31 ========
The accompanying notes are an integral part of this financial statement. 101 HARTFORD HIGH YIELD HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- SHORT-TERM SECURITIES -- 4.7% REPURCHASE AGREEMENT -- 4.7% $ 10,079 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02............................. $ 10,079 -------- Total short-term securities....................... $ 10,079 ========
DIVERSIFICATION OF NET ASSETS: Total convertible bonds (cost $735)...... 0.3% $ 547 Total convertible preferred stocks (cost $2,441).......................... 0.0 56 Total corporate notes (cost $194,728).... 81.5 174,922 Total foreign/yankee bonds & notes (cost $31,815)......................... 9.9 21,236 Total preferred stocks (cost $1,023)..... 0.4 936 Total U.S. treasuries & federal agencies (cost $2,258).......................... 1.1 2,281 Total warrants (cost $590)............... 0.0 31 Total short-term securities (cost $10,079)............................... 4.7 10,079 ----- -------- Total investment in securities (total cost $243,669).................. 97.9 210,088 Cash, receivables and other assets....... 4.0 8,746 Securities lending collateral (See Note 2(i)).................................. 15.4 33,158 Payable for securities purchased......... (1.8) (3,902) Payable for Fund shares redeemed......... (0.0) (64) Securities lending collateral payable to brokers (See Note 2(i))........................ (15.4) (33,158) Other liabilities........................ (0.1) (132) ----- -------- Net assets............................... 100.0% $214,736 ===== ========
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares. authorized; 255,057 shares outstanding $ 255 Capital surplus................................. 247,476 Accumulated undistributed net investment income........................................ 9,007 Accumulated undistributed net realized loss. on investments (8,472) Unrealized depreciation of investments.......... (33,581) Unrealized appreciation of other assets and liabilities in foreign currencies............................ 51 -------- Net assets...................................... $214,736 ========
Class IA Net asset value per share ($183,311 / 217,595 shares outstanding) (600,000 shares authorized)................................... $0.84 ===== Class IB Net asset value per share ($31,425 / 37,462 shares outstanding) (200,000 shares authorized)................................... $0.84 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $31,760 or 14.8% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero. I All principal amounts are in U.S. dollars unless otherwise indicated.
The accompanying notes are an integral part of this financial statement. 102 HARTFORD BOND HLS FUND, INC. STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.7% $ 4,000 California Infrastructure & Economic Development Bank Pacific Gas and Electric Co., Series 1997 (Aaa Moody's) 6.48% due 12/26/09.......................... $ 4,285 1,100 Citibank Credit Card Master Trust l, Series 1999-7, Class B (A2 Moody's) 6.90% due 11/15/06........................................ 1,176 7,600 Comed Transitional Funding Trust, Series 1998-1, Class A5 (Aaa Moody's) 5.44% due 03/25/07............................... 7,913 825 PP&L Transition Bond Co., LLC, Series 1999-1, Class A5 (Aaa Moody's) 6.83% due 03/25/07............................... 879 -------- Total collateralized mortgage obligations................... $ 14,253 ======== CORPORATE NOTES -- 38.5% BANKS -- 0.1% $ 2,350 Federal Home Loan Bank (Aaa Moody's) 2.297% due 02/20/07....................................... $ 2,363 500 St. Paul Bancorp, Inc. (A3 Moody's) 7.125% due 02/15/04....................................... 527 -------- 2,890 -------- BUSINESS SERVICES -- 0.0% 500 Interpool, Inc. (BBB- Fitch) 7.20% due 08/01/07........................................ 485 -------- CHEMICALS -- 2.3% 3,255 Equistar Chemicals LP (BB+ S&P) 7.55% due 02/15/26........................................ 2,352 17,000 ICI Wilmington, Inc. (Baa2 Moody's) 6.75% due 09/15/02........................................ 17,080 500 Lyondell Chemical Co. (Ba3 Moody's) 9.875% due 05/01/07....................................... 479 6,920 Millennium America, Inc. (BBB- S&P) 7.625% due 11/15/26....................................... 5,674 5,370 Olin Corp. (Baa3 Moody's) 9.125% due 12/15/11....................................... 5,817 13,125 Praxair, Inc. (AAA Fitch) 4.75% due 07/15/07........................................ 13,065 2,000 du Pont (E.I.) de Nemours & Co. (Aa3 Moody's) 6.75% due 09/01/07........................................ 2,176 -------- 46,643 -------- COMMUNICATIONS -- 5.2% @8,000 AT&T Corp. (Baa2 Moody's) 8.00% due 11/15/31........................................ 6,280 8,600 AT&T Wireless Services, Inc. (Baa2 Moody's) 7.50% due 05/01/07........................................ 7,396 1,700 British Telecommunications PLC (A- S&P) 8.875% due 12/15/30....................................... 1,852 3,150 Columbia/HCA Healthcare Corp. (BBB- S&P) 7.50% due 11/15/95........................................ 2,983 500 Comcast Cable Communications (BBB+ Fitch) 8.50% due 05/01/27........................................ 524 1,000 Continental Cablevision, Inc. (BBB+ S&P) 9.50% due 08/01/13........................................ 1,054
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COMMUNICATIONS -- (CONTINUED) $ 11,725 Deutsche Telekom International Finance BV (Baa1 Moody's) 9.25% due 06/01/32........................................ $ 11,819 3,160 Global Crossing Holdings Ltd. (C Other) 8.70% due 08/01/07........................................ 32 20,891 Global Crossing Holdings Ltd. (C Other) 9.50% due 11/15/09........................................ 209 2,700 Global Crossing Holdings Ltd. (C Other) 9.625% due 05/15/08....................................... 27 4,400 HCA, Inc. (BBB- S&P) 6.95% due 05/01/12........................................ 4,484 10,045 HCA, Inc. (BBB- S&P) 7.125% due 06/01/06....................................... 10,536 24,296 Lucent Technologies, Inc. (B2 Moody's) 6.45% due 03/15/29........................................ 12,512 2,510 Lucent Technologies, Inc. (B+ S&P) 6.50% due 01/15/28........................................ 1,293 750 NTL Communications Corp. (D S&P) 0.00% due 10/01/08........................................ 150 300 NTL, Inc. (Ca Moody's) 0.00% due 02/01/06........................................ 80 9,930 Nortel Networks Corp. (Ba3 Moody's) 6.125% due 02/15/06....................................... 5,660 5,935 Nortel Networks Corp. (Ba3 Moody's) 6.875% due 09/01/23....................................... 2,968 985 PanAmSat Corp. (Ba2 Moody's) 6.875% due 01/15/28....................................... 779 400 Psinet, Inc. (D S&P) 11.00% due 08/01/09....................................... 39 17,385 Qwest Capital Funding, Inc. (Ba2 Moody's) 5.875% due 08/03/04....................................... 11,300 18,925 Sprint Capital Corp. (BBB+ S&P) 7.90% due 03/15/05........................................ 16,305 @@0 Voicestream Wireless Corp. (A- S&P) 10.375% due 11/15/09...................................... 0 @@17 Voicestream Wireless Corp. (A- S&P) 10.375% due 11/15/09...................................... 0 2,200 Williams Communications Group, Inc. (Ca Moody's) 10.875% due 10/01/09...................................... 182 35,656 WorldCom, Inc. (CC Fitch) 8.25% due 05/15/31........................................ 5,348 600 XO Communications, Inc. (Ca Moody's) 0.00% due 12/01/09........................................ 9 300 XO Communications, Inc. (Ca Moody's) 10.50% due 12/01/09....................................... 8 -------- 103,829 -------- COMPUTERS & OFFICE EQUIPMENT -- 0.5% 9,075 Hewlett-Packard Co. (A3 Moody's) 5.75% due 12/15/06........................................ 9,167 --------
The accompanying notes are an integral part of this financial statement. 103 HARTFORD BOND HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) CONSTRUCTION -- 0.1% $ 1,500 Bell Atlantic Maryland, Inc. (Aa2 Moody's) 8.30% due 08/01/31........................................ $ 1,628 -------- CONSUMER NON-DURABLES -- 0.6% 3,300 Methanex Corp. (Ba1 Moody's) 7.75% due 08/15/05........................................ 3,267 @9,490 Xerox Corp. (BB- Fitch) 9.75% due 01/15/09........................................ 7,782 -------- 11,049 -------- ELECTRICAL EQUIPMENT -- 0.6% 8,230 Rockwell International Corp. (A S&P) 5.20% due 01/15/98........................................ 5,481 6,000 Rockwell International Corp. (A S&P) 6.70% due 01/15/28........................................ 5,573 -------- 11,054 -------- ENERGY & SERVICES -- 4.6% 4,725 Appalachian Power (Baa1 Moody's) 2.61% due 08/20/03........................................ 4,731 12,910 Conoco, Inc. (Baa1 Moody's) 6.35% due 10/15/11........................................ 13,385 10,925 Kerr-McGee Corp. (Baa2 Moody's) 6.875% due 09/15/11....................................... 11,482 5,000 Lasmo (USA), Inc. (AA S&P) 7.50% due 06/30/06........................................ 5,512 6,800 Occidental Petroleum Corp. (Baa2 Moody's) 7.375% due 11/15/08....................................... 7,459 6,740 Ocean Energy, Inc. (Baa3 Moody's) 7.25% due 10/01/11........................................ 7,072 1,000 Pioneer Natural Resources Co. (BB Fitch) 6.50% due 01/15/08........................................ 952 14,375 Pioneer Natural Resources Co. (BB Fitch) 7.20% due 01/15/28........................................ 12,861 250 Pioneer Natural Resources Co. (BB Fitch) 9.625% due 04/01/10....................................... 275 +400 Swift Energy Co. (BS&P) 10.25% due 08/01/09....................................... 390 500 Tennessee Gas Pipeline Co. (Baa1 Moody's) 7.50% due 04/01/17........................................ 496 1,000 Tesoro Petroleum Corp. (B+ S&P) 9.00% due 07/01/08........................................ 910 1,000 Tosco Corp. (A3 Moody's) 8.125% due 02/15/30....................................... 1,177 2,500 Union Oil Co. of California (Baa1 Moody's) 9.375% due 02/15/11....................................... 2,977 +6,500 Valero Energy Corp. (Baa2 Moody's) 6.125% due 04/15/07....................................... 6,713 1,750 Valero Energy Corp. (Baa2 Moody's) 8.375% due 06/15/05....................................... 1,925 2,850 Varco International, Inc. (BBB+ S&P) 7.50% due 02/15/08........................................ 2,988 250 Williams Communications Group, Inc. (Ca Moody's) 11.875% due 08/01/10...................................... 19 @2,200 Williams Cos., Inc. (The) (BBB Fitch) 8.75% due 03/15/32........................................ 1,792 9,050 XTO Energy, Inc. (Ba2 Moody's) 7.50% due 04/15/12........................................ 9,231 -------- 92,347 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- FINANCIAL SERVICES -- 2.7% +$ 4,425 Bank of Tokyo-Mitsubishi Ltd. (The) (A3 Moody's) 8.40% due 04/15/10........................................ $ 4,840 250 Boeing Capital Corp. (A+ S&P) 6.10% due 03/01/11........................................ 255 @18,000 Bombardier Capital, Inc. (A3 Moody's) 4.028% due 11/21/02....................................... 18,086 @2,885 ERAC USA Finance Co. (Baa1 Moody's) 8.25% due 05/01/05........................................ 3,134 21,750 Ford Motor Credit Co. (A3 Moody's) 7.375% due 02/01/11....................................... 22,030 5,900 NiSource Finance Corp. (BBB+ Fitch) 7.875% due 11/15/10....................................... 6,098 -------- 54,443 -------- FOOD, BEVERAGE & TOBACCO -- 1.2% 8,120 Archer-Daniels-Midland Co. (A1 Moody's) 6.95% due 12/15/97........................................ 8,085 10,110 ConAgra Foods, Inc. (Baa1 Moody's) 7.50% due 09/15/05........................................ 10,951 3,750 ConAgra Foods, Inc. (Baa1 Moody's) 7.00% due 10/01/28........................................ 3,831 250 Hercules, Inc. (Ba2 Moody's) 11.125% due 11/15/07...................................... 280 -------- 23,147 -------- FOREST & PAPER PRODUCTS -- 4.0% 2,750 Abitibi Consolidated, Inc. (Baa3 Moody's) 8.30% due 08/01/05........................................ 2,866 250 Abitibi-Consolidated, Inc. (Baa3 Moody's) 8.85% due 08/01/30........................................ 244 11,400 Boise Cascade Corp. (Baa3 Moody's) 7.50% due 02/01/08........................................ 11,562 2,765 Champion International Corp. (Baa2 Moody's) 7.20% due 11/01/26........................................ 2,953 8,330 Domtar, Inc. (Baa3 Moody's) 7.875% due 10/15/11....................................... 9,039 115 Georgia-Pacific Corp. (BBB- Fitch) 8.875% due 05/15/31....................................... 108 3,020 International Paper Co. (BBB+ Fitch) 6.75% due 09/01/11........................................ 3,145 5,600 International Paper Co. (Baa2 Moody's) 6.875% due 04/15/29....................................... 5,482 4,500 Mead Corp. (The) (Baa2 Moody's) 7.55% due 03/01/47........................................ 4,306 12,100 Potlatch Corp. (Baa3 Moody's) 9.425% due 12/01/09....................................... 13,693
The accompanying notes are an integral part of this financial statement. 104 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) FOREST & PAPER PRODUCTS -- (CONTINUED) $ @12,075 Weyerhaeuser Co. (A Fitch) 5.50% due 03/15/05........................................ $ 12,406 7,900 Weyerhaeuser Co. (A Fitch) 5.95% due 11/01/08........................................ 7,983 6,300 Weyerhaeuser Co. (A Fitch) 7.25% due 07/01/13........................................ 6,816 -------- 80,603 -------- HEALTH SERVICES -- 1.8% 3,520 HEALTH SOUTH Corp. (BBB- S&P) 6.875% due 06/15/05....................................... 3,510 +555 HEALTH SOUTH Corp. (BB+ S&P) 10.75% due 10/01/08....................................... 613 6,540 Manor Care, Inc. (Ba1 Moody's) 7.50% due 06/15/06........................................ 6,761 1,120 Manor Care, Inc. (Ba1 Moody's) 8.00% due 03/01/08........................................ 1,155 23,800 Tenet Healthcare Corp. (BBB S&P) 5.375% due 11/15/06....................................... 24,049 -------- 36,088 -------- HOTELS & GAMING -- 0.9% @18,150 Starwood Hotels & Resorts Worldwide, Inc. (BBB- S&P) 7.375% due 05/01/07....................................... 17,855 -------- INSURANCE -- 1.2% 700 Aetna, Inc. (BBB+ Fitch) 7.375% due 03/01/06....................................... 734 7,800 Aetna, Inc. (BBB+ Fitch) 7.875% due 03/01/11....................................... 8,216 5,400 Humana, Inc. (BBB S&P) 7.25% due 08/01/06........................................ 5,639 4,300 Trenwick Group, Inc. (BBB- S&P) 6.70% due 04/01/03........................................ 3,987 5,815 Wellpoint Health Networks, Inc. (A- S&P) 6.375% due 06/15/06....................................... 6,122 -------- 24,698 -------- MEDIA & ENTERTAINMENT -- 2.2% 800 British Sky Broadcasting Group PLC (Ba1 Moody's) 8.20% due 07/15/09........................................ 786 +8,700 Marconi Corp., PLC (Ca Moody's) 7.75% due 09/15/10........................................ 2,610 30,992 Marconi Corp., PLC (C S&P) 8.375% due 09/15/30....................................... 9,298 14,850 News America Holdings, Inc. (BBB Fitch) 7.75% due 12/01/45........................................ 13,860 1,000 News America Holdings, Inc. (BBB Fitch) 8.875% due 04/26/23....................................... 1,059
PRINCIPAL MARKET AMOUNT VALUE --------- -------- MEDIA & ENTERTAINMENT -- (CONTINUED) $ 3,660 Shaw Communications, Inc. (BBB S&P) 8.25% due 04/11/10........................................ $ 3,727 12,935 USA Networks, Inc. (BBB S&P) 6.75% due 11/15/05........................................ 13,380 -------- 44,720 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.2% 3,600 Apogent Technologies, Inc. (BBB S&P) 8.00% due 04/01/11........................................ 3,978 -------- METALS, MINERALS & MINING -- 3.3% 11,750 Alcan, Inc. (A2 Moody's) 7.25% due 03/15/31........................................ 12,694 8,400 Barrick Gold Finance, Inc. (A S&P) 7.50% due 05/01/07........................................ 9,099 2,765 Newmont Mining Corp. (BBB S&P) 8.625% due 05/15/11....................................... 3,110 +3,440 Noranda, Inc. (Baa3 Moody's) 7.00% due 07/15/05........................................ 3,547 2,790 Phelps Dodge Corp. (BBB+ Fitch) 8.75% due 06/01/11........................................ 2,878 17,950 Phelps Dodge Corp. (BBB+ Fitch) 9.50% due 06/01/31........................................ 18,452 3,600 Placer Dome, Inc. (BBB+ S&P) 7.125% due 05/15/03....................................... 3,701 7,300 Placer Dome, Inc. (Baa2 Moody's) 7.125% due 06/15/07....................................... 7,691 5,540 Santa Fe Pacific Gold Corp. (BBB S&P) 8.375% due 07/01/05....................................... 5,839 -------- 67,011 -------- RESEARCH & TESTING FACILITIES -- 0.2% 4,285 Quest Diagnostics, Inc. (Baa3 Moody's) 6.75% due 07/12/06........................................ 4,489 -------- SOFTWARE & SERVICES -- 1.9% 20,200 AOL Time Warner, Inc. (Baa1 Moody's) 6.15% due 05/01/07........................................ 19,296 7,800 CRH America, Inc. (A- Fitch) 6.95% due 03/15/12........................................ 8,203 10,000 Computer Sciences Corp. (A2 Moody's) 6.75% due 06/15/06........................................ 10,585 -------- 38,084 -------- TRANSPORTATION -- 1.4% @1,550 American Airlines, Inc. (AA S&P) 7.858% due 10/01/11....................................... 1,682 1,300 Delta Air Lines, Inc. (Baa2 Moody's) 10.50% due 04/30/16....................................... 1,265 4,500 FedEx Corp. (Baa2 Moody's) 6.625% due 02/12/04....................................... 4,688 2,750 Sequa Corp. (BB+ Fitch) 8.875% due 04/01/08....................................... 2,750 1,720 Teekay Shipping Corp. (BB+ S&P) 8.32% due 02/01/08........................................ 1,797
The accompanying notes are an integral part of this financial statement. 105 HARTFORD BOND HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES -- (CONTINUED) TRANSPORTATION -- (CONTINUED) $ 4,348 US Airways Group, Inc. (A+ S&P) 6.76% due 04/15/08........................................ $ 4,228 8,500 Union Pacific Corp. (BBB+ Fitch) 6.625% due 02/01/08....................................... 8,962 3,885 United Air Lines, Inc. (B- S&P) 9.75% due 08/15/21........................................ 1,943 -------- 27,315 -------- UTILITIES -- 3.5% 1,750 Cleveland Electric Illuminating Co. (Aaa Moody's) 7.13% due 07/01/07........................................ 1,904 8,225 Consolidated Natural Gas Co. (A3 Moody's) 5.375% due 11/01/06....................................... 8,254 3,875 Detroit Edison Co. (The) (A3 Moody's) 6.125% due 10/01/10....................................... 3,862 12,000 El Paso Electric Co. (Baa2 Moody's) 7.625% due 09/01/08....................................... 12,034 @10,000 Entergy Gulf States, Inc. (Baa3 Moody's) 3.098% due 06/02/03....................................... 10,013 2,850 Mission Energy Holding (BB- S&P) 13.50% due 07/15/08....................................... 2,864 3,100 PacifiCorp. (A S&P) 6.12% due 01/15/06........................................ 3,239 4,000 Public Service Electric & Gas Co. (Aaa Moody's) 7.00% due 09/01/24........................................ 3,997 500 Reliastar Financial Corp. (Aa3 Moody's) 8.00% due 10/30/06........................................ 552 850 Tennessee Gas Pipeline Co. (Baa1 Moody's) 7.00% due 10/15/28........................................ 764 3,325 Transcontinental Gas Pipe LN (BBB+ Fitch) 6.125% due 01/15/05....................................... 3,170 4,500 Transcontinental Gas Pipe LN (BBB+ Fitch) 7.25% due 12/01/26........................................ 3,486 @11,000 Transcontinental Gas Pipe LN (BBB+ Fitch) 8.875% due 07/15/12....................................... 10,733 6,435 Westar Energy, Inc. (B1 Moody's) 7.25% due 08/15/02........................................ 6,434 71,306 -------- Total corporate notes....................................... $772,829 ======== FOREIGN/YANKEE BONDS & NOTES -- 8.2% FOREIGN CORPORATIONS -- 4.2% $ 10,510 AT&T Canada, Inc. (Ca Moody's) 7.625% due 03/15/05....................................... $ 1,261 125 Asia Global Crossing Ltd. (Ca Moody's) 13.375% due 10/15/10...................................... 25
PRINCIPAL MARKET AMOUNT (I) VALUE ---------- -------- FOREIGN CORPORATIONS -- (CONTINUED) $ @@1,008 Australia Media Ltd. (D S&P) 15.75% due 05/15/03....................................... -- 10,215 France Telecom S.A. (BBB+ S&P) 9.00% due 03/01/31........................................ $ 9,035 7,200 Inco Ltd. (Baa3 Moody's) 7.75% due 05/15/12........................................ 7,434 3,295 KPNQwest N.V. (D S&P) 8.125% due 06/01/09....................................... 16 @1,925 Nortel Networks Corp. (Ba3 Moody's) 4.25% due 09/01/08........................................ 931 +8,170 Nova Chemicals Ltd. (Baa3 Moody's) 7.00% due 05/15/06........................................ 8,153 4,250 Nova Chemicals Ltd. (Baa3 Moody's) 7.875% due 09/15/25....................................... 3,600 8,500 PanCanadian Energy Corp. (A- S&P) 7.20% due 11/01/31........................................ 8,582 +500 PanCanadian Energy Corp. (A- S&P) 7.20% due 11/01/31........................................ 505 25,500 PanCanadian Petroleum (A- S&P) 6.30% due 11/01/11........................................ 25,631 5,630 Petroleum Geo-Services ASA (Baa3 Moody's) 7.125% due 03/30/28....................................... 3,772 4,515 Petroleum Geo-Services ASA (Baa3 Moody's) 8.15% due 07/15/29........................................ 3,161 4,235 Potash Corp. Saskatchewan (BBB+ S&P) 7.125% due 06/15/07....................................... 4,569 7,515 Potash Corp. Saskatchewan (BBB+ S&P) 7.75% due 05/31/11........................................ 8,368 +500 eKabel Holdings GmbH (Ca Moody's) 14.50% due 09/01/10....................................... 123 -------- 85,166 -------- FOREIGN GOVERNMENTS -- 4.0% EUR34,850 Deutsche Bundesrepublik (Aaa Moody's) 6.00% due 09/15/03........................................ 35,307 EUR24,907 France BTAN (AAA S&P) 4.50% due 07/12/03........................................ 24,791 EUR 8,900 Republic of Italy (Aa2 Moody's) 4.75% due 04/15/03........................................ 8,868 GBP 6,170 UK Treasury Gilt (Aaa Moody's) 8.00% due 06/10/03........................................ 9,722 78,688 -------- Total foreign/yankee bonds & notes.......................... $163,854 ======== SHARES ---------- PREFERRED STOCKS -- 0.1% ELECTRONICS -- 0.1% @53 Xerox Corp. (B3 Moody's).................................... $ 2,884 -------- Total preferred stocks...................................... $ 2,884 ========
The accompanying notes are an integral part of this financial statement. 106 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ---------- -------- U.S. TREASURIES & FEDERAL AGENCIES -- 45.1% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 9.1% $ 143,987 6.00% due 07/01/12 -- 07/01/16.............................. $147,603 260 6.30% due 04/01/08.......................................... 275 2,775 6.48% due 12/01/05.......................................... 2,947 1,777 6.50% due 11/01/14.......................................... 1,849 26,891 7.50% due 06/01/27 -- 09/01/31.............................. 28,253 729 7.50% due 10/01/22 -- 02/01/31.............................. 768 -------- 181,695 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 21.7% 44,661 6.00% due 01/15/32 -- 07/15/32.............................. 44,673 299,056 6.50% due 04/15/31 -- 06/15/32.............................. 305,735 82,061 7.00% due 07/15/28 -- 01/15/32.............................. 85,377 13 9.50% due 10/15/19.......................................... 14 -------- 435,799 -------- U.S. TREASURY BONDS -- 4.8% +19,100 5.375% due 02/15/31......................................... 18,703 +51,900 6.00% due 08/15/09.......................................... 56,378 +20,220 6.25% due 05/15/30.......................................... 21,903 -------- 96,984 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 3.1% +56,811 4.25% due 01/15/10.......................................... 61,649 -------- U.S. TREASURY NOTES -- 6.4% +4,600 3.50% due 11/15/06.......................................... 4,518 +15,000 4.375% due 05/15/07......................................... 15,206 +45,900 4.875% due 02/15/12......................................... 46,072 +24,300 5.00% due 02/15/11 -- 08/15/11.............................. 24,701 +2,150 5.50% due 05/15/09.......................................... 2,275 +20,390 5.75% due 11/15/05 -- 08/15/10.............................. 21,776 +11,300 6.50% due 10/15/06 -- 02/15/10.............................. 12,470 +1,300 6.625% due 05/15/07......................................... 1,446 128,464 -------- Total U.S. treasuries & federal agencies.................... $904,591 ======== SHARES ---------- WARRANTS -- 0.0% *@@1 Iridium World Communications, Inc........................... $ 0 -------- Total warrants.............................................. $ 0 ======== PRINCIPAL AMOUNTS ---------- SHORT-TERM SECURITIES -- 4.9% REPURCHASE AGREEMENT -- 4.9% $ 99,004 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02................................. $ 99,004 -------- Total short-term securities................................. $ 99,004 ========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total collateralized mortgage obligations (cost $13,624)............................................ 0.7% $ 14,253 Total corporate notes (cost $807,105)....................... 38.5 772,829 Total foreign/yankee bonds & notes (cost $163,535)........................................... 8.2 163,854 Total preferred stocks (cost $2,670)........................ 0.1 2,884 Total U.S. treasuries & federal agencies (cost $890,340)........................................... 45.1 904,591 Total warrants (cost $97)................................... 0.0 0 Total short-term securities (cost $99,004).................. 4.9 99,004 ----- ---------- Total investment in securities (total cost $1,976,375)............................................... 97.5 1,957,415 Cash, receivables and other assets.......................... 4.1 80,448 Securities lending collateral (See Note 2(i))..................................................... 15.3 307,139 Payable for securities purchased............................ (1.5) (29,897) Payable for Fund shares redeemed............................ (0.0) (57) Securities lending collateral payable to brokers (See Note 2(i))................................... (15.3) (307,139) Other liabilities........................................... (0.1) (1,815) ----- ---------- Net assets.................................................. 100.0% $2,006,094 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 3,000,000 shares authorized; 1,802,916 shares outstanding........... $ 180,292 Capital surplus............................................. 1,782,870 Accumulated undistributed net investment income............. 51,273 Accumulated undistributed net realized gain on investments............................................ 10,255 Unrealized depreciation of investments...................... (18,960) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))@@@@............................. (103) Unrealized appreciation of other assets and liabilities in foreign currencies..................................... 467 ---------- Net assets.................................................. $2,006,094 ==========
Class IA Net asset value per share ($1,777,800 / 1,597,194 shares outstanding) (2,400,000 shares authorized).............. $1.11 ===== Class IB Net asset value per share ($228,294 / 205,722 shares outstanding) (600,000 shares authorized)................ $1.11 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2002. (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 June 30, 2002, the market value of these securities amounted to $93,578 or 4.7% of net assets. @@ Due to the presentation of the financial statements in thousands, the number of shares and/or market value round to zero. (I) All principal amounts are in U.S. dollars unless otherwise indicated.
The accompanying notes are an integral part of this financial statement. 107 HARTFORD BOND HLS FUND, INC. STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- @@@@FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2002
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- EURO (Sell) $20,125 $20,000 7/1/2002 $(125) EURO (Sell) 9,978 10,000 7/2/2002 22 ----- $(103) =====
The accompanying notes are an integral part of this financial statement. 108 HARTFORD MORTGAGE SECURITIES HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 21.5% $11,185 Chase Mortgage Finance Corp. Series 1998-S7, Class 1A1 (Aaa Moody's) 6.25% due 12/25/28.............................. $ 11,413
PRINCIPAL MARKET AMOUNT VALUE --------- -------- $23,526 Chase Mortgage Finance Corp., Series 2002-S3, Class A14 (Aaa Moody's) 6.50% due 02/25/32.............................. $ 24,061 4,955 Citicorp Mortgage Securities, Inc., Series 1998-8, Class A3 (AAA S&P) 6.75% due 09/25/28.............................. 5,128 18,957 Countrywide Home Loans, Series 1998-6, Class A (AAA S&P) 6.50% due 06/25/13.............................. 19,448 @331 DLJ Mortgage Acceptance Corp., Series 1996-1, Class B1 (A S&P) 7.25% due 09/25/11.............................. 341 @110 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B2 (BBB S&P) 7.25% due 09/25/11.............................. 113 2,413 GE Capital Mortgage Services, Inc., Series 1993-10, Class A3 (Aaa Moody's) 6.50% due 09/25/23.............................. 2,504 1,996 GE Capital Mortgage Services, Inc., Series 1994-26, Class A (Aaa Moody's) 6.818% due 07/25/09............................. 2,049 350 GE Capital Mortgage Services, Inc., Series 1996-1, Class B2 (AAA S&P) 6.75% due 02/25/11.............................. 353 1,048 GE Capital Mortgage Services, Inc., Series 1996-1, Class M (AAA S&P) 6.75% due 02/25/11.............................. 1,061 386 GE Capital Mortgage Services, Inc., Series 1996-10, Class B1 (AAA S&P) 6.75% due 06/25/11.............................. 398 386 GE Capital Mortgage Services, Inc., Series 1996-10, Class B2 (AA+ S&P) 6.75% due 06/25/11.............................. 394 7,252 GE Capital Mortgage Services, Inc., Series 1996-2, Class A8 (AAA S&P) 7.00% due 02/25/26.............................. 7,459 1,442 GE Capital Mortgage Services, Inc., Series 1998-7, Class A (Aaa Moody's) 6.50% due 04/25/13.............................. 1,487 3,662 GE Capital Mortgage Services, Inc., Series 1999-16, Class A (Aaa Moody's) 6.50% due 07/25/14.............................. 3,754 889 Housing Securities, Inc., Series 1993-E, Class E15 (Aaa Moody's) 10.00% due 09/25/08............................. 942 3,101 Norwest Asset Securities Corp., Series 1999-22, Class A1 (Aaa Moody's) 6.50% due 09/25/14.............................. 3,199 358 PNC Mortgage Securities Corp., Series 1996-2, Class B1 (AAA Fitch) 6.60% due 02/25/11.............................. 369 119 PNC Mortgage Securities Corp., Series 1996-2, Class B2 (AAA Fitch) 6.60% due 02/25/11.............................. 123 191 PNC Mortgage Securities Corp., Series 1996-2, Class B3 (AA Fitch) 6.60% due 02/25/11.............................. 194 4,200 Prudential Home Mortgage Securities Co., Series 1994-8, Class A3 (Aaa Moody's) 6.75% due 03/25/24.............................. 4,350 758 Prudential Home Mortgage Securities Co., Series 96-3, Class B1 (AAA S&P) 6.75% due 03/25/11.............................. 772 379 Prudential Home Mortgage Securities Co., Series 96-3, Class B2 (AAA Fitch) 6.75% due 03/25/11.............................. 386 503 Residential Funding Mortgage Securities I, Inc., Series 1995-S18, Class M3 (AAA Fitch) 7.00% due 11/25/10.............................. 514 177 Residential Funding Mortgage Securities I, Inc., Series 1996-S11, Class M3 (AAA S&P) 7.00% due 04/25/11.............................. 185 349 Residential Funding Mortgage Securities I, Inc., Series 1996-S19, Class M3 (AAA Fitch) 7.50% due 09/25/11.............................. 360 409 Residential Funding Mortgage Securities I, Inc., Series 1996-S5, Class M3 (AAA S&P) 6.75% due 02/25/11.............................. 424 1,147 Residential Funding Mortgage Securities I, Inc., Series 1998-S22, Class A1 (AAA S&P) 6.50% due 09/25/13.............................. 1,184 4,376 Residential Funding Mortgage Securities I, Inc., Series 1999-S15, Class A2 (AAA S&P) 6.50% due 06/25/14.............................. 4,515 1,428 Residential Funding Mortgage Securities I, Inc., Series 1999-S22, Class A2 (AAA S&P) 7.00% due 10/25/14.............................. 1,489 2,094 Residential Funding Mortgage Securities I, Inc., Series 2001-33, Class A1 (AAA S&P) 7.50% due 01/25/31.............................. 2,156 15,248 Residential Funding Mortgage Securities I, Inc., Series 2001-S25, Class A1 (AAA S&P) 6.25% due 10/25/16.............................. 15,507
The accompanying notes are an integral part of this financial statement. 109 HARTFORD MORTGAGE SECURITIES HLS FUND, INC. STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- (CONTINUED) $ 2,594 Wells Fargo Mortgage Backed Securities Trust, Series 2000-13, Class A7 (Aaa Moody's) 7.50% due 12/25/30.............................. $ 2,594 119,226 -------- Total collateralized mortgage obligations. (cost $116,944) $119,226 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 76.9% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 14.8% $ 454 10.00 due 09/01/05-11/01/20....................... $ 510 8,000 6.00% due 07/01/32................................ 7,978 32,344 6.50% due 04/01/31-09/01/31....................... 32,881 37,034 7.00% due 10/01/26-07/01/32....................... 38,380 512 7.50% due 05/01/24-06/01/25....................... 542 968 8.00% due 02/01/13-11/01/24....................... 1,036 391 8.50% due 06/01/03-05/01/25....................... 419 194 9.00% due 10/01/06................................ 196 406 9.50% due 11/01/08................................ 419 -------- 82,361 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 26.2% 242 11.00 due 04/01/09................................ 267 23,000 6.00% due 07/01/32................................ 22,928 57,587 6.50% due 04/01/28-07/01/32....................... 58,864 45,684 7.00% due 11/01/13-02/01/32....................... 47,668 9,233 7.50% due 08/01/29-04/01/31....................... 9,695 5,507 8.00% due 10/01/29-02/01/31....................... 5,850 249 9.00% due 05/01/21-09/01/21....................... 275 -------- 145,547 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 33.5% 50 10.00% due 05/15/13............................... 57 9 12.50% due 03/15/15............................... 10 8,000 6.00% due 07/15/32................................ 7,988 108,562 6.50% due 12/15/28-01/15/32....................... 110,998 49,176 7.00% due 07/15/31-03/15/32....................... 51,144 10,277 7.50% due 04/15/22-04/20/30....................... 10,877 3,613 8.50% due 06/15/17-04/15/30....................... 3,880 1,000 9.50% due 10/15/09-11/15/09....................... 1,109 -------- 186,063 -------- U.S. TREASURY NOTES -- 2.4% 13,000 4.875% due 02/15/12............................... 13,049 -------- Total U.S. treasuries & federal agencies (cost $422,860)................................. $427,020 ======== SHORT-TERM SECURITIES -- 16.5% REPURCHASE AGREEMENT -- 10.2% $56,514 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02............................... $ 56,514 -------- U.S. TREASURY BILLS -- 6.3% 14,410 1.68% due 07/11/02................................ 14,403 20,590 1.70% due 07/11/02................................ 20,580 34,983 -------- Total short-term securities (cost $91,497)........ $ 91,497 ========
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $631,325) -- see accompanying portfolio....... $637,743 Receivable for securities sold.................. 51,102 Receivable for Fund shares sold................. 2,259 Receivable for dividends and interest........... 3,586 Cash and other assets........................... -- -------- Total assets.................................... 694,690 ======== LIABILITIES Payable for securities purchased................ 134,329 Other liabilities............................... 4,722 -------- Total liabilities............................... 139,051 ======== Net assets...................................... $555,639 ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 800,000 shares authorized; 481,725 shares outstanding............. $ 48,173 Capital surplus............................................. 493,063 Accumulated undistributed net investment income............. 12,677 Accumulated undistributed net realized loss on investments............................................ (4,629) Unrealized appreciation of investments...................... 6,355 ----------- Net assets.................................................. $ 555,639 ===========
Class IA Net asset value per share ($502,814 / 435,728 shares outstanding) (600,000 shares authorized).................................... $1.15 ===== Class IB Net asset value per share ($52,825 / 45,997 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 June 30, 2002, the market value of these securities amounted to $454 or 0.1% of net assets.
The accompanying notes are an integral part of this financial statement. 110 HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.4% $ 5,040 Freddie Mac, Series 2344, Class QE (Aaa Moody's) 6.00% due 11/15/14.............................. $ 5,171 -------- Total collateralized mortgage obligations......... $ 5,171 ======== CORPORATE NOTES -- 3.9% BANKS -- 3.9% $ 7,895 Federal Home Loan Bank (Aaa Moody's) 5.375% due 02/15/06............................. $ 8,260 -------- Total corporate notes............................. $ 8,260 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 90.3% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 10.7% $ 17,000 6.50% due 07/01/32................................ $ 17,335 5,225 7.00% due 05/01/16 -- 02/01/31.................... 5,484 -------- 22,819 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 16.2% 1,997 5.50% due 08/01/15................................ 2,029 1,633 5.89% due 12/01/08................................ 1,698 6,720 5.95% due 01/01/09................................ 6,996 10,451 6.00% due 09/01/13 -- 06/01/31.................... 10,565 962 6.01% due 02/01/09................................ 1,004 1,845 6.20% due 01/01/06................................ 1,947 745 6.36% due 04/01/08................................ 789 4,173 6.50% due 05/01/13 -- 04/01/24.................... 4,344 2,462 6.52% due 01/01/08................................ 2,625 1,250 6.63% due 10/01/05................................ 1,331 @@0 7.00% due 07/01/11................................ 0 916 7.50% due 06/01/23................................ 969 54 8.50% due 04/01/17................................ 58 32 9.00% due 08/01/20 -- 09/01/21.................... 35 208 9.75% due 07/01/20................................ 231 -------- 34,621 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 18.8% 17,971 6.50% due 03/15/31 -- 05/15/32.................... 18,373 18,484 7.00% due 05/15/28 -- 12/15/31.................... 19,225 2,272 7.50% due 07/15/27................................ 2,408 99 9.50% due 12/15/18 -- 12/15/20.................... 111 -------- 40,117 -------- U.S. GOVERNMENT AGENCIES -- 8.6% 2,200 Tennessee Valley Authority (Aa1 Moody's) 5.375% due 11/13/08............................. 2,261 15,000 Tennessee Valley Authority (Aaa Moody's) 6.375% due 06/15/05............................. 16,117 -------- 18,378 -------- U.S. TREASURY BONDS -- 2.1% 2,000 10.375 due 11/15/12............................... 2,571 1,750 6.00% due 08/15/09................................ 1,901 -------- 4,472 --------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 3.0% $ 5,878 4.25% due 01/15/10................................ $ 6,378 -------- U.S. TREASURY NOTES -- 30.9% +7,000 3.25% due 05/31/04................................ 7,054 +21,700 4.375% due 05/15/07............................... 21,998 +10,000 4.875% due 02/15/12............................... 10,038 3,300 5.75% due 11/15/05................................ 3,522 +19,000 5.875% due 11/15/04............................... 20,193 2,750 6.00% due 08/15/04................................ 2,922 -------- 65,727 -------- Total U.S. treasuries & federal agencies.......... $192,512 ======== SHORT-TERM SECURITIES -- 10.6% REPURCHASE AGREEMENT -- 3.6% $ 7,657 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02............................. $ 7,657 -------- U.S. TREASURY BILLS -- 7.0% 6,180 1.68% due 07/11/02................................ 6,177 8,820 1.70% due 07/11/02................................ 8,816 -------- 14,993 -------- Total short-term securities....................... $ 22,650 ========
DIVERSIFICATION OF NET ASSETS: Total collaterized mortgage obligations (cost $5,158)................................... 2.4% $ 5,171 Total corporate notes (cost $8,093)............... 3.9 8,260 Total U.S. treasuries & federal agencies (cost $187,169)................................. 90.3 192,512 Total short-term securities (cost $22,650)........ 10.6 22,650 ------ -------- Total investment in securities (total cost $223,070).................................. 107.2 228,593 Cash, receivables and other assets................ 1.0 1,926 Securities lending collateral (See Note 2(i))..... 15.4 32,909 Payable for securities purchased.................. (8.1) (17,218) Payable for Fund shares redeemed.................. (0.1) (111) Securities lending collateral payable to brokers (See Note 2(i))................................. (15.4) (32,909) Other liabilities................................. 0.0 (35) ------ -------- Net assets........................................ 100.0% $213,155 ====== ========
The accompanying notes are an integral part of this financial statement. 111 HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.010 per share; 200,000 shares authorized; 19,944 shares outstanding..................... $ 199 Capital surplus............................................. 220,004 Accumulated undistributed net investment income............. 4,458 Accumulated undistributed net realized loss on investments............................................ (17,029) Unrealized appreciation of investments...................... 5,523 -------- Net assets.................................................. $213,155 ========
Class IA Net asset value per share ($208,091 / 19,470 shares outstanding) (187,500 shares authorized)................................... $10.69 ====== Class IB Net asset value per share ($5,064 / 474 shares outstanding) (12,500 shares authorized)....... $10.69 ======
+ All or a portion of this security was on loan as of June 30, 2002. (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. 112 HARTFORD MONEY MARKET HLS FUND STATEMENT OF NET ASSETS JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- COMMERCIAL PAPER -- 27.9% $ 20,000 Abbey National North America 2.09% due 11/04/02.............................. $ 19,854 15,000 Bradford & Bingley Building PLC 1.96% due 08/02/02.............................. 14,974 21,000 Cargill, Inc. 1.92% due 08/12/02.............................. 20,953 10,000 Caterpillar Financial Services, Inc. 1.91% due 07/11/02.............................. 9,995 3,000 Caterpillar Financial Services, Inc. 1.94% due 08/06/02.............................. 2,994 21,000 Diageo Capital PLC 2.86% due 03/18/03.............................. 20,566 50,000 Federal Home Loan Bank 1.76% due 07/31/02.............................. 49,927 30,000 Federal National Mortgage Association 1.76% due 07/17/02.............................. 29,977 21,500 Federal National Mortgage Association 1.88% due 08/07/02.............................. 21,458 17,100 Freddie Mac 1.715% due 08/09/02............................. 17,068 20,900 Freddie Mac 1.715% due 08/15/02............................. 20,855 22,000 Freddie Mac 1.87% due 08/02/02.............................. 21,963 31,500 Gannett Co., Inc. 1.77% due 07/08/02.............................. 31,489 15,000 Goldman Sachs Group, Inc. (The) 1.92% due 08/13/02.............................. 14,966 15,500 Goldman Sachs Group, Inc. (The) 1.94% due 08/05/02.............................. 15,471 34,000 Halifax PLC 1.84% due 07/25/02.............................. 33,958 43,000 Johnson & Johnson 1.77% due 07/18/02.............................. 42,964 22,000 Lehman Brothers Holdings, Inc. 1.91% due 07/12/02.............................. 21,987 32,000 Lehman Brothers Holdings, Inc. 2.01% due 08/21/02.............................. 31,909 23,000 Nationwide Building Soceity 1.94% due 08/09/02.............................. 22,952 25,000 Nestle Capital Corp. 1.93% due 08/07/02.............................. 24,950 22,000 Nordea North America, Inc. 2.53% due 12/11/02.............................. 21,748 21,000 Svenska Handelsbanken, Inc. 2.23% due 09/25/02.............................. 20,888 15,000 Swedbank 2.04% due 09/30/02.............................. 14,923 28,000 Swedbank 2.53% due 12/13/02.............................. 27,675 20,000 UBS Finance (Deleware), Inc. 2.07% due 09/04/02.............................. 19,925 32,000 Washington Post Co. 1.92% due 08/06/02.............................. 31,939 ---------- 628,328 ---------- Total commercial paper............................ $ 628,328 ==========
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- CORPORATE NOTES -- 59.1% $ 30,000 Abbey National North America 1.78% due 08/19/02.............................. $ 29,927 9,000 Abbott Laboratories 1.75% due 08/02/02.............................. 8,986 44,750 Abbott Laboratories 1.76% due 07/10/02.............................. 44,730 50,000 American Express Credit Corp. 1.75% due 08/27/02.............................. 49,861 40,000 Bradford & Bingley Building PLC 1.93% due 10/17/02.............................. 39,768 36,000 Bristol-Myers Squibb Co. 1.75% due 07/29/02.............................. 35,951 10,000 Caterpillar Financial Services, Inc. 1.75% due 08/19/02.............................. 9,976 27,000 Caterpillar Financial Services, Inc. 1.78% due 07/22/02.............................. 26,972 7,000 Coca-Cola Co. (The) 1.75% due 07/08/02.............................. 6,998 25,000 Emerson Electric Co. 1.76% due 08/23/02.............................. 24,935 22,000 Gannett Co., Inc. 1.77% due 08/20/02.............................. 21,946 21,500 General Electric Capital Corp. 5.375% due 01/15/03............................. 21,838 32,000 General Electric Capital Corp. 7.00% due 02/03/03.............................. 32,781 15,000 Gillette Co. (The) 1.75% due 09/06/02.............................. 14,951 20,000 Goldman Sachs Group, Inc. (The) 2.053% due 11/21/02............................. 20,012 3,000 Goldman Sachs Group, Inc. (The) 2.083% due 08/21/02............................. 3,001 11,500 Halifax PLC 1.79% due 07/03/02.............................. 11,499 @27,000 Honda Motor Corp. 2.015% due 01/13/03............................. 27,005 @23,000 Honda Motor Corp. 2.04% due 10/09/02.............................. 23,000 40,000 International Lease Finance 1.81% due 08/14/02.............................. 39,912 10,000 Johnson & Johnson 1.77% due 08/14/02.............................. 9,978 41,500 Key Bank N.A. 2.00% due 02/07/03.............................. 41,533 29,000 Merrill Lynch & Co., Inc. 2.079% due 10/21/02............................. 29,020 32,000 Morgan (J.P.) Chase & Co. 2.006% due 03/06/03............................. 32,032 17,000 Morgan (J.P.) Chase & Co. 2.02% due 02/20/03.............................. 17,019
The accompanying notes are an integral part of this financial statement. 113 HARTFORD MONEY MARKET HLS FUND STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- CORPORATE NOTES -- (CONTINUED) $ 10,000 Morgan (J.P.) Chase & Co., Inc. 2.046% due 01/30/03............................. $ 10,010 13,000 Morgan Stanley Dean Witter & Co. 2.06% due 10/15/02.............................. 13,005 40,000 Morgan Stanley Dean Witter & Co................... 2.103% due 02/21/03 40,069 @20,000 Nationwide Building Society 1.84% due 02/14/03.............................. 20,000 28,000 Nordea North America, Inc. 1.78% due 07/08/02.............................. 27,990 25,000 Old Line Funding Corp. 1.78% due 07/02/02.............................. 24,999 21,000 Old Line Funding Corp. 1.79% due 08/15/02.............................. 20,953 10,000 Pfizer, Inc. 1.75% due 07/24/02.............................. 9,989 42,000 Province of Quebec 1.92% due 11/01/02.............................. 41,724 @32,000 SBC Communications, Inc. 1.857% due 03/14/03............................. 32,000 6,000 Salomon Smith Barney Holdings 2.08% due 07/24/02.............................. 6,001 54,000 Salomon Smith Barney Holdings 1.78% due 09/16/02.............................. 53,795 9,000 Sara Lee Corp. 1.82% due 07/25/02.............................. 8,989 10,000 Sara Lee Corp. 1.83% due 07/24/02.............................. 9,988 14,000 Sara Lee Corp. 1.83% due 07/29/02.............................. 13,980 60,000 State Street Corp. 1.76% due 09/03/02.............................. 59,812 20,000 Svenska Handelsbanken, Inc. 1.77% due 08/29/02.............................. 19,942 30,000 Toronto-Dominion Holdings Corp. 1.82% due 10/07/02.............................. 29,851 43,000 Toyota Motor Credit Corp. 1.92% due 10/11/02................................ 42,998 21,000 US Bancorp 2.113% due 11/01/02............................. 21,018 43,000 Unilever 2.06% due 10/24/02.............................. 43,019 49,000 Wal-Mart Stores 1.75% due 07/23/02.............................. 48,948 17,000 Washington Post Co. 1.78% due 09/09/02.............................. 16,941 12,000 Wells Fargo & Co. 1.77% due 07/22/02.............................. 11,988 42,000 Wells Fargo & Co. 1.77% due 08/26/02.............................. 41,884 15,500 Wyeth 1.88% due 07/16/02.............................. 15,488 21,000 Wyeth 1.90% due 07/15/02.............................. 20,984 ---------- 1,329,996 ---------- Total corporate notes............................. $1,329,996 ========== REPURCHASE AGREEMENT -- 7.8% $ 175,923 Joint Repurchase Agreement (See Note 2(d)) 1.905% due 07/01/02............................. $ 175,923 ---------- Total repurchase agreement........................ $ 175,923 ==========
DIVERSIFICATION OF NET ASSETS: Total commercial paper (cost $628,328)............................ 27.9% $ 628,328 Total corporate notes (cost $1,329,996).......................... 59.1 1,329,996 Total short-term securities (cost $175,923)............................ 7.8 175,923 ------ ---------- Total investment in securities (total cost $2,134,247).............. 94.8 2,134,247 Cash, receivables and other assets..... 5.3 119,298 Payable for fund shares redeemed....... 0.0 (428) Dividends payable...................... (0.1) (2,399) Other liabilities...................... 0.0 (24) ------ ---------- Net assets............................. 100.0% $2,250,694 ====== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 4,000,000 shares authorized; 2,250,694 shares outstanding.................................. $ 225,068 Capital surplus................................ 2,025,626 ---------- Net assets..................................... $2,250,694 ==========
Class IA Shares of beneficial interest outstanding, $0.10 par value 3,000,000 shares authorized (Net assets $2,053,113)................... 2,053,113 ========= Net asset value............................... $1.00 ========= Class IB Shares of beneficial interest outstanding, $0.10 par value 1,000,000 shares authorized (Net assets $197,581)..................... 197,581 ========= $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 June 30, 2002, the market value of these securities amounted to $102,005 or 4.5% of net assets.
The accompanying notes are an integral part of this financial statement. 114 (This page intentionally left blank) 115 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL GLOBAL COMMUNICATIONS FINANCIAL SERVICES HLS FUND HLS FUND -------------- ------------------ INVESTMENT INCOME: Dividends................................................. $ 64 $ 216 Interest.................................................. 6 8 Securities lending........................................ 4 8 Less: Foreign tax withheld................................ (4) (12) ------- ----- Total investment income, net............................ 70 220 ------- ----- EXPENSES: Investment advisory fees.................................. 27 66 Administrative services fees.............................. 8 20 Accounting services....................................... 1 2 Custodian fees, gross..................................... 3 16 Board of Directors fees................................... -- -- Distribution Fees -- Class IB............................. 2 5 Other expenses............................................ -- -- ------- ----- Total expenses, (before waivers and offsets)............ 41 109 Custodian fees offset..................................... -- -- Distribution Fees -- Class IB waived...................... 1 1 ------- ----- Total expenses net...................................... 40 108 ------- ----- Net investment income (loss).............................. 30 112 ------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... (1,939) (388) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... 9 14 Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ (5) -- Net unrealized appreciation (depreciation) of investments............................................. (2,068) (548) 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... (2) 2 Net unrealized appreciation (depreciation) of option contracts............................................... -- -- ------- ----- Net realized and unrealized gain (loss) on investments.... (4,006) (922) ------- ----- Net increase (decrease) in net assets resulting from operations.............................................. $(3,976) $(810) ======= =====
(a) Formerly Fortis Aggressive Growth Series. (b) Formerly Fortis Growth Stock Series. The accompanying notes are an integral part of these financial statements. 116 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL HEALTH GLOBAL TECHNOLOGY SMALL COMPANY SMALLCAP GROWTH GROWTH OPPORTUNITIES SMALL COMPANY MIDCAP HLS FUND HLS FUND HLS FUND HLS FUND(A) HLS FUND(B) HLS FUND, INC. HLS FUND, INC. ------------- ----------------- ------------- --------------- -------------------- -------------- -------------- $ 1,199 $ 58 $138 $ 351 $ 1,333 $ 1,334 $ 6,563 74 22 9 62 111 516 385 67 11 3 -- 15 218 292 (81) -- (15) -- -- (89) (56) -------- -------- ---- -------- --------- --------- -------- 1,259 91 135 413 1,459 1,979 7,184 -------- -------- ---- -------- --------- --------- -------- 828 323 31 797 2,116 2,116 4,506 256 99 10 -- -- 812 1,916 26 10 1 -- -- 81 192 8 3 16 16 22 18 4 1 -- -- 9 27 2 5 52 20 2 -- -- 82 145 16 5 -- 42 126 38 98 -------- -------- ---- -------- --------- --------- -------- 1,187 460 60 864 2,291 3,149 6,866 -- -- -- -- -- 3 -- 9 4 -- -- -- 15 27 -------- -------- ---- -------- --------- --------- -------- 1,178 456 60 864 2,291 3,131 6,839 -------- -------- ---- -------- --------- --------- -------- 81 (365) 75 (451) (832) (1,152) 345 -------- -------- ---- -------- --------- --------- -------- 5,926 (18,975) 259 (2,348) (23,197) (5,286) 28,286 -- -- -- (32) -- -- -- 41 -- 52 -- -- (106) -- -- -- -- -- -- -- -- (19) -- (67) -- -- 234 (1) (46,608) (16,584) 397 (45,801) (107,088) (96,135) (77,543) -- -- -- 76 -- -- -- -- -- -- -- -- (1) -- 5 -- 1 -- -- 13 -- -- -- -- -- -- -- -- -------- -------- ---- -------- --------- --------- -------- (40,655) (35,559) 642 (48,105) (130,285) (101,281) (49,258) -------- -------- ---- -------- --------- --------- -------- $(40,574) $(35,924) $717 $(48,556) $(131,117) $(102,433) $(48,913) ======== ======== ==== ======== ========= ========= ========
117 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD INTERNATIONAL CAPITAL CAPITAL APPRECIATION APPRECIATION HLS FUND HLS FUND, INC. --------------------- -------------- INVESTMENT INCOME: Dividends................................................. $ 236 $ 53,886 Interest.................................................. 13 8,365 Securities lending........................................ 8 1,016 Less: Foreign tax withheld................................ (23) (1,419) ----- ----------- Total investment income, net............................ 234 61,848 ----- ----------- EXPENSES: Investment advisory fees.................................. 65 18,942 Administrative services fees.............................. 20 8,710 Accounting services....................................... 2 871 Custodian fees, gross..................................... 23 570 Board of Directors fees................................... -- 19 Distribution Fees -- Class IB............................. 8 552 Other expenses............................................ -- 404 ----- ----------- Total expenses, (before waivers and offsets)............ 118 30,068 Custodian fees offset..................................... -- 12 Distribution Fees -- Class IB waived...................... 1 99 ----- ----------- Total expenses net...................................... 117 29,957 ----- ----------- Net investment income (loss).............................. 117 31,891 ----- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... (484) (706,610) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... 50 (672) Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ (63) (250) Net unrealized appreciation (depreciation) of investments............................................. (347) (710,788) Net unrealized appreciation (depreciation) of futures contracts............................................... -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.............................. 5 (1,744) Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... 1 345 Net unrealized appreciation (depreciation) of option contracts............................................... -- -- ----- ----------- Net realized and unrealized gain (loss) on investments.... (838) (1,419,719) ----- ----------- Net increase (decrease) in net assets resulting from operations.............................................. $(721) $(1,387,828) ===== ===========
(a) Formerly Fortis Value Series. (b) From inception, April 30, 2002, through June 30, 2002. The accompanying notes are an integral part of these financial statements. 118 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL INTERNATIONAL HARTFORD VALUE OPPORTUNITIES GROWTH MIDCAP VALUE FOCUS LEADERS OPPORTUNITIES STOCK HLS FUND(A) HLS FUND(B) HLS FUND HLS FUND HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------- ------------ ------------ -------- -------- -------------- -------------- $ 798 $ 6 $ 1,353 $ 221 $ 6,280 $ 10,774 $ 48,768 20 2 103 47 (125) 910 1,244 5 -- 51 -- 399 546 91 (34) -- (34) -- (432) (1,223) -- -------- ----- ------- -------- -------- -------- ----------- 789 8 1,473 268 6,122 11,007 50,103 -------- ----- ------- -------- -------- -------- ----------- 414 5 701 160 1,625 2,406 9,642 -- 2 226 49 606 935 7,540 -- -- 23 5 61 94 754 8 -- 24 2 78 326 6 4 -- -- -- 2 4 21 -- -- 57 15 64 30 355 23 -- 7 2 37 87 458 -------- ----- ------- -------- -------- -------- ----------- 449 7 1,038 233 2,473 3,882 18,776 -- -- -- -- -- 1 2 -- -- 9 3 12 5 66 -------- ----- ------- -------- -------- -------- ----------- 449 7 1,029 230 2,461 3,876 18,708 -------- ----- ------- -------- -------- -------- ----------- 340 1 444 38 3,661 7,131 31,395 -------- ----- ------- -------- -------- -------- ----------- (8,550) (49) (2,761) (781) (19,100) (30,853) (247,473) -- -- -- -- -- -- -- -- -- 1 -- 64 (92) -- -- -- -- -- -- -- -- 5 -- (8) -- (15) (1,429) -- (13,771) (498) (7,147) (10,835) (39,325) 8,954 (1,107,576) -- -- -- -- -- -- -- -- -- (1) -- 22 27 -- 1 -- 1 -- 113 1,164 -- -- -- -- -- -- -- -- -------- ----- ------- -------- -------- -------- ----------- (22,315) (547) (9,915) (11,616) (58,241) (22,229) (1,355,049) -------- ----- ------- -------- -------- -------- ----------- $(21,975) $(546) $(9,471) $(11,578) $(54,580) $(15,098) $(1,323,654) ======== ===== ======= ======== ======== ======== ===========
119 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD GROWTH AND HARTFORD INCOME INDEX HLS FUND HLS FUND, INC. ---------- -------------- INVESTMENT INCOME: Dividends................................................. $ 3,216 $ 14,725 Interest.................................................. 118 196 Securities lending........................................ 12 53 Less: Foreign tax withheld................................ 1 (85) --------- --------- Total investment income, net............................ 3,347 14,889 --------- --------- EXPENSES: Investment advisory fees.................................. 1,401 2,019 Administrative services fees.............................. 514 2,019 Accounting services....................................... 51 202 Custodian fees, gross..................................... 4 13 Board of Directors fees................................... 1 6 Distribution Fees -- Class IB............................. 63 65 Other expenses............................................ 28 118 --------- --------- Total expenses, (before waivers and offsets)............ 2,062 4,442 Custodian fees offset..................................... -- -- Distribution Fees -- Class IB waived...................... 11 12 --------- --------- Total expenses net...................................... 2,051 4,430 --------- --------- Net investment income (loss).............................. 1,296 10,459 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... (61,148) 938 Net realized gain (loss) on futures contracts............. (1,445) (2,601) Net realized gain (loss) on forward foreign currency contracts............................................... -- -- Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ -- 5 Net unrealized appreciation (depreciation) of investments............................................. (38,329) (300,958) Net unrealized appreciation (depreciation) of futures contracts............................................... (293) 101 Net unrealized appreciation (depreciation) of forward foreign currency contracts.............................. -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies... -- -- Net unrealized appreciation (depreciation) of option contracts............................................... -- -- --------- --------- Net realized and unrealized gain (loss) on investments.... (101,215) (302,515) --------- --------- Net increase (decrease) in net assets resulting from operations.............................................. $ (99,919) $(292,056) ========= =========
(a) Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 120 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD DIVIDEND AND GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE VALUE GROWTH ADVISERS HLS ADVISERS HIGH YIELD BOND SECURITIES HLS FUND HLS FUND, INC. FUND, INC.(A) HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. -------- -------------- --------------- -------------- ---------- -------------- -------------- $ 751 $ 34,280 $ 2,009 $ 52,095 $ 38 $ 202 $ -- 19 1,805 3,267 121,614 9,715 55,620 13,885 -- 141 124 1,825 47 366 -- (3) (390) (146) -- (5) (118) -- ------- --------- -------- ----------- -------- -------- ------- 767 35,836 5,254 175,534 9,795 56,070 13,885 ------- --------- -------- ----------- -------- -------- ------- 238 7,860 932 25,985 529 2,448 601 76 3,495 332 12,024 184 1,785 481 8 349 33 1,202 18 178 48 8 6 71 4 3 15 4 -- 8 1 32 -- 4 1 22 246 16 713 37 228 60 3 182 28 663 7 89 22 ------- --------- -------- ----------- -------- -------- ------- 355 12,146 1,413 40,623 778 4,747 1,217 -- 2 -- (6) 1 6 1 4 42 3 129 7 39 8 ------- --------- -------- ----------- -------- -------- ------- 351 12,102 1,410 40,500 770 4,702 1,208 ------- --------- -------- ----------- -------- -------- ------- 416 23,734 3,844 135,034 9,025 51,368 12,677 ------- --------- -------- ----------- -------- -------- ------- (3,860) 65,001 (3,679) (157,686) (3,689) 10,862 3,650 -- -- 1,638 -- -- -- -- -- -- (5,327) -- 43 203 -- -- -- 294 -- -- -- -- (1) 28 1,560 -- 81 (64) -- (5,361) (242,370) (6,835) (1,226,129) (21,466) (18,737) 2,281 -- -- (902) -- -- -- -- -- -- (3,361) -- -- (103) -- (1) -- 412 -- 48 402 -- -- -- 17 -- -- -- -- ------- --------- -------- ----------- -------- -------- ------- (9,223) (177,341) (16,183) (1,383,815) (24,983) (7,437) 5,931 ------- --------- -------- ----------- -------- -------- ------- $(8,807) $(153,607) $(12,339) $(1,248,781) $(15,958) $ 43,931 $18,608 ======= ========= ======== =========== ======== ======== =======
121 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD Hartford U.S. GOVERNMENT Money Market SECURITIES HLS Fund, HLS FUND (a) Inc. --------------- -------------- INVESTMENT INCOME: Dividends................................................. $ -- $ -- Interest.................................................. 4,904 21,221 Securities lending........................................ 2 -- Less: Foreign tax withheld................................ -- -- ------ ------- Total investment income (loss), net..................... 4,906 21,221 ------ ------- EXPENSES: Investment advisory fees.................................. 411 2,513 Administrative services fees.............................. -- 2,010 Accounting services....................................... -- 201 Custodian fees, gross..................................... 4 1 Board of Directors fees................................... 6 4 Distribution Fees -- Class IB............................. -- 186 Other expenses............................................ 27 106 ------ ------- Total expenses, (before waivers and offsets)............ 448 5,021 Custodian fees offset..................................... -- -- Distribution Fees -- Class IB waived...................... -- 37 ------ ------- Total expenses net...................................... 448 4,984 ------ ------- Net investment income (loss).............................. 4,458 16,237 ------ ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions......... 1,970 80 Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............................................... -- -- Net realized gain (loss) on option contracts.............. -- -- Net realized gain (loss) on foreign currency transactions............................................ -- -- Net unrealized appreciation (depreciation) of investments............................................. 877 -- 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... -- -- Net unrealized appreciation (depreciation) of option contracts............................................... -- -- ------ ------- Net realized and unrealized gain (loss) on investments.... 2,847 80 ------ ------- Net increase (decrease) in net assets resulting from operations.............................................. $7,305 $16,317 ====== =======
(a) Formerly Fortis U.S. Government Securities Series. The accompanying notes are an integral part of these financial statements. 122 (This page intentionally left blank) 123 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL GLOBAL COMMUNICATIONS FINANCIAL SERVICES HLS FUND HLS FUND -------------- ------------------ OPERATIONS: Net investment income (loss).............................. $ 30 $ 112 Net realized gain (loss) on investments................... (1,935) (374) Net unrealized appreciation (depreciation) of investments............................................. (2,071) (548) ------- ------- Net increase (decrease) in net assets resulting from operations.............................................. (3,976) (810) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (13) (34) Class IB................................................ (2) (9) From net realized gain on investments Class IA................................................ -- -- Class IB................................................ -- -- ------- ------- Total distributions..................................... (15) (43) ------- ------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 1,434 3,213 Class IB................................................ 879 1,938 ------- ------- Net increase (decrease) from capital share transactions... 2,313 5,151 ------- ------- Net increase (decrease) in net assets..................... (1,678) 4,298 NET ASSETS: Beginning of period....................................... 9,263 17,608 ------- ------- End of period............................................. $ 7,585 $21,906 ======= ======= Accumulated undistributed net investment income (loss).... $ 23 $ 104 ======= =======
(a) Formerly Fortis Aggressive Growth Series. (b) Formerly Fortis Growth Stock Series. The accompanying notes are an integral part of these financial statements. 124 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD GROWTH HARTFORD GLOBAL GLOBAL INTERNATIONAL HARTFORD OPPORTUNITIES SMALL HARTFORD HEALTH TECHNOLOGY SMALL COMPANY SMALLCAP GROWTH HLS COMPANY MIDCAP HLS FUND HLS FUND HLS FUND HLS FUND(A) FUND(B) HLS FUND, INC. HLS FUND, INC. -------- ---------- ------------- --------------- ------------- -------------- -------------- $ 81 $ (365) $ 75 $ (451) $ (832) $ (1,152) $ 345 5,948 (18,975) 244 (2,380) (23,197) (5,158) 28,285 (46,603) (16,584) 398 (45,725) (107,088) (96,123) (77,543) -------- -------- ------- -------- -------- ---------- ---------- (40,574) (35,924) 717 (48,556) (131,117) (102,433) (48,913) -------- -------- ------- -------- -------- ---------- ---------- (26) -- -- -- -- -- (1,990) -- -- -- -- -- -- -- (4,892) -- (44) -- -- -- -- (1,082) -- (10) -- -- -- -- -------- -------- ------- -------- -------- ---------- ---------- (6,000) -- (54) -- -- -- (1,990) -------- -------- ------- -------- -------- ---------- ---------- 31,770 7,768 12,928 (11,430) (38,881) 32,526 (2,454) 15,460 3,161 3,039 359 256 18,444 (5,057) -------- -------- ------- -------- -------- ---------- ---------- 47,230 10,929 15,967 (11,071) (38,625) 50,970 (7,511) -------- -------- ------- -------- -------- ---------- ---------- 656 (24,995) 16,630 (59,627) (169,742) (51,463) (58,414) 237,912 102,786 5,141 272,272 755,068 804,624 1,882,711 -------- -------- ------- -------- -------- ---------- ---------- $238,568 $ 77,791 $21,771 $212,645 $585,326 $ 753,161 $1,824,297 ======== ======== ======= ======== ======== ========== ========== $ 81 $ (365) $ 756 $ (451) $ (832) $ (1,152) $ 345 ======== ======== ======= ======== ======== ========== ==========
125 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD INTERNATIONAL CAPITAL CAPITAL APPRECIATION APPRECIATION HLS FUND HLS FUND, INC. -------------------- -------------- OPERATIONS: Net investment income (loss).............................. $ 117 $ 31,891 Net realized gain (loss) on investments................... (497) (707,532) Net unrealized appreciation (depreciation) of investments............................................. (341) (712,187) ------- ----------- Net increase (decrease) in net assets resulting from operations.............................................. (721) (1,387,828) ------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (6) (5,543) Class IB................................................ (3) (303) From net realized gain on investments Class IA................................................ -- -- Class IB................................................ -- -- ------- ----------- Total distributions..................................... (9) (5,846) ------- ----------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 9,391 (134,975) Class IB................................................ 4,531 142,410 ------- ----------- Net increase (decrease) from capital share transactions... 13,922 7,435 ------- ----------- Net increase (decrease) in net assets..................... 13,192 (1,386,239) NET ASSETS: Beginning of period....................................... 15,044 9,127,841 ------- ----------- End of period............................................. $28,236 $ 7,741,602 ======= =========== Accumulated undistributed net investment income (loss).... $ 118 $ 31,877 ======= ===========
(a) Formerly Fortis Value Series. (b) From inception, April 30, 2002, through June 30, 2002. The accompanying notes are an integral part of these financial statements. 126 --------------------------------------------------------------------------------
Hartford HARTFORD International Hartford VALUE Hartford Hartford Hartford Hartford Opportunties Stock OPPORTUNITIES Growth MidCap Value Focus Global Leaders HLS Fund, HLS Fund, HLS FUND(a) HLS Fund(b) HLS Fund HLS Fund HLS Fund Inc. Inc. ------------- ------------- ------------ -------- -------------- -------------- -------------- $ 340 $ 1 $ 444 $ 38 $ 3,661 $ 7,131 $ 31,395 (8,545) (49) (2,768) (781) (19,051) (32,374) (247,473) (13,770) (498) (7,147) (10,835) (39,190) 10,145 (1,107,576) -------- ------ -------- ------- --------- ----------- ----------- (21,975) (546) (9,471) (11,578) (54,580) (15,098) (1,323,654) -------- ------ -------- ------- --------- ----------- ----------- (821) -- -- -- (379) (8,285) (3,289) -- -- -- -- (20) (182) (123) (2,397) -- -- (394) -- -- -- -- -- -- (154) -- -- -- -------- ------ -------- ------- --------- ----------- ----------- (3,218) -- -- (548) (399) (8,467) (3,412) -------- ------ -------- ------- --------- ----------- ----------- (400) 4,998 175,542 10,837 242,519 (67,977) (304,667) 189 871 44,650 7,942 7,669 2,696 57,875 -------- ------ -------- ------- --------- ----------- ----------- (211) 5,869 220,192 18,779 250,188 (65,281) (246,792) -------- ------ -------- ------- --------- ----------- ----------- (25,404) 5,323 210,721 6,653 195,209 (88,846) (1,573,858) 130,567 -- 120,493 41,771 534,017 964,211 8,106,118 -------- ------ -------- ------- --------- ----------- ----------- $105,163 $5,323 $331,214 $48,424 $ 729,226 $ 875,365 $ 6,532,260 ======== ====== ======== ======= ========= =========== =========== $ 340 $ 1 $ 443 $ 38 $ 364,800 $ 4,887,242 $ 1,614,592 ======== ====== ======== ======= ========= =========== ===========
127 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD GROWTH AND INDEX INCOME HLS FUND HLS FUND, INC. --------------- -------------- OPERATIONS: Net investment income (loss).............................. $ 1,296 $ 10,459 Net realized gain (loss) on investments................... (62,593) (1,658) Net unrealized appreciation (depreciation) of investments............................................. (38,622) (300,857) --------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. (99,919) (292,056) --------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (2,112) (1,256) Class IB................................................ (143) (31) From net realized gain on investments Class IA................................................ -- (71,573) Class IB................................................ -- (2,010) --------- ---------- Total distributions..................................... (2,255) (74,870) --------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 207,729 295,125 Class IB................................................ 13,013 17,794 --------- ---------- Net increase (decrease) from capital share transactions... 220,742 312,919 --------- ---------- Net increase (decrease) in net assets..................... 118,568 (54,007) NET ASSETS: Beginning of period....................................... 462,612 2,022,417 --------- ---------- End of period............................................. $ 581,180 $1,968,410 ========= ========== Accumulated undistributed net investment income (loss).... $ (31,293) $ 10,912 ========= ==========
(a) Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 128 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD VALUE DIVIDEND AND GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE HLS GROWTH ADVISERS ADVISERS HIGH YIELD BOND SECURITIES FUND HLS FUND, INC. HLS FUND, INC.(A) HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. --------- -------------- ------------------- -------------- ---------- -------------- -------------- $ 416 $ 23,734 $ 3,844 $ 135,034 $ 9,025 $ 51,368 $ 12,677 (3,861) 65,029 (5,514) (157,686) (3,565) 11,001 3,650 (5,362) (242,370) (10,669) (1,226,129) (21,418) (18,438) 2,281 ------- ----------- ----------- ----------- -------- ----------- ----------- (8,807) (153,607) (12,339) (1,248,781) (15,958) 43,931 18,608 ------- ----------- ----------- ----------- -------- ----------- ----------- -- (1,905) (146) (207,678) (9,980) (71,918) (18,984) -- (126) -- (10,878) (1,721) (9,028) (1,967) -- (156,583) (198) -- -- (21,013) -- -- (11,349) (9) -- -- (2,682) -- ------- ----------- ----------- ----------- -------- ----------- ----------- -- (169,963) (353) (218,556) (11,701) (104,641) (20,951) ------- ----------- ----------- ----------- -------- ----------- ----------- 37,344 333,455 (13,101) 324,621 79,910 281,587 79,984 12,700 103,571 2,008 146,764 9,540 83,265 27,274 ------- ----------- ----------- ----------- -------- ----------- ----------- 50,044 437,026 (11,093) 471,385 89,450 364,852 107,258 ------- ----------- ----------- ----------- -------- ----------- ----------- 41,237 113,456 (23,785) (995,952) 61,791 304,142 104,915 52,712 3,344,621 343,749 12,357,769 152,945 1,701,952 450,724 ------- ----------- ----------- ----------- -------- ----------- ----------- $93,949 $ 3,458,077 $ 319,964 $11,361,817 $214,736 $ 2,006,094 $ 555,639 ======= =========== =========== =========== ======== =========== =========== $ 416 $ 23,734 $ 3,040 $ 135,034 $ 9,007 $ 51,273 $ 1,500,533 ======= =========== =========== =========== ======== =========== ===========
129 HARTFORD HLS MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD Hartford U.S. GOVERNMENT Money Market SECURITIES HLS Fund, HLS FUND(a) Inc. --------------- -------------- OPERATIONS: Net investment income (loss).............................. $ 4,458 $ 16,237 Net realized gain (loss) on investments................... 1,970 80 Net unrealized appreciation (depreciation) of investments............................................. 877 -- -------- ---------- Net increase (decrease) in net assets resulting from operations.............................................. 7,305 16,317 -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (8,732) (15,112) Class IB................................................ -- (1,205) From net realized gain on investments Class IA................................................ -- -- Class IB................................................ -- -- -------- ---------- Total distributions..................................... (8,732) (16,317) -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 35,197 185,592 Class IB................................................ 5,052 45,453 -------- ---------- Net increase (decrease) from capital share transactions... 40,249 231,045 -------- ---------- Net increase (decrease) in net assets..................... 38,822 231,045 NET ASSETS: Beginning of period....................................... 174,333 2,019,649 -------- ---------- End of period............................................. $213,155 $2,250,694 ======== ========== Accumulated undistributed net investment income (loss).... $ 4,458 $ -- ======== ==========
(a) Formerly Fortis U.S. Government Securities Series The accompanying notes are an integral part of these financial statements. 130 (This page intentionally left blank) 131 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. 132 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL HARTFORD GLOBAL INTERNATIONAL SMALL HARTFORD CAPITAL GLOBAL HEALTH TECHNOLOGY SMALL COMPANY COMPANY MIDCAP APPRECIATION HLS FUND HLS FUND HLS FUND* HLS FUND HLS FUND, INC. HLS FUND* ------------- ------------ ------------- ------------ -------------- ------------- $ 66 $ (469) $ 25 $ 129 $ 2,009 $ 18 5,424 (54,777) (84) (175,575) (89,252) (943) 3,141 28,022 (158) 27,855 3,427 843 -------- -------- ------- -------- ---------- -------- 8,631 (27,224) (217) (147,591) (83,816) (82) -------- -------- ------- -------- ---------- -------- -- -- (8) -- -- (11) -- -- (1) -- -- (4) -- -- -- (55,117) (218,450) -- -- -- -- (3,553) (13,029) -- -------- -------- ------- -------- ---------- -------- -- -- (9) (58,670) (231,479) (15) -------- -------- ------- -------- ---------- -------- 71,873 38,694 4,583 32,931 291,842 10,166 24,528 12,700 784 28,101 81,370 4,975 -------- -------- ------- -------- ---------- -------- 96,401 51,394 5,367 61,032 373,212 15,141 -------- -------- ------- -------- ---------- -------- 105,032 24,170 5,141 (145,229) 57,917 15,044 132,880 78,616 -- 949,853 1,824,794 -- -------- -------- ------- -------- ---------- -------- $237,912 $102,786 $ 5,141 $804,624 $1,882,711 $ 15,044 ======== ======== ======= ======== ========== ======== $ 26 $ -- $ (1) $ -- $ 1,990 $ 10 ======== ======== ======= ======== ========== ========
133 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. 134 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD GLOBAL INTERNATIONAL HARTFORD GROWTH AND HARTFORD FOCUS LEADERS OPPORTUNITIES STOCK INCOME INDEX HLS FUND* HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. --------- -------------- -------------- -------------- ---------- -------------- $ 65 $ 3,839 $ 12,269 $ 68,757 $ 2,257 $ 19,333 540 (124,086) (213,046) (285,529) (33,876) 70,275 1,471 15,458 (21,944) (985,086) (4,751) (391,557) ------- --------- --------- ----------- -------- ---------- 2,076 (104,789) (222,721) (1,201,858) (36,370) (301,949) ------- --------- --------- ----------- -------- ---------- (55) (2,848) (1,384) (63,165) -- (17,644) (11) (225) (67) (1,835) -- (356) -- (5,702) (154,454) (641,294) (15,880) (37,072) -- (469) (3,867) (15,953) (1,363) (573) ------- --------- --------- ----------- -------- ---------- (66) (9,244) (159,772) (722,247) (17,243) (55,645) ------- --------- --------- ----------- -------- ---------- 31,457 19,281 (9,160) 126,867 85,938 (57,388) 8,304 30,383 10,573 177,261 35,484 34,127 ------- --------- --------- ----------- -------- ---------- 39,761 49,664 1,413 304,128 121,422 (23,261) ------- --------- --------- ----------- -------- ---------- 41,771 (64,369) (381,080) (1,619,977) 67,809 (380,855) -- 598,386 1,345,291 9,726,095 394,803 2,403,272 ------- --------- --------- ----------- -------- ---------- $41,771 $ 534,017 $ 964,211 $ 8,106,118 $462,612 $2,022,417 ======= ========= ========= =========== ======== ========== $ -- $ 388 $ 8,428 $ 3,412 $ 2,255 $ 1,287 ======= ========= ========= =========== ======== ==========
135 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. 136 --------------------------------------------------------------------------------
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 $ -- ======== =========== ======== ========== ======== ==========
137 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2002 (UNAUDITED) (000'S 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. The Funds are stated below. Hartford Small Company HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford Capital Appreciation 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., Hartford Series Fund, Inc. (comprised of thirteen portfolios; they are Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford International Small Company HLS Fund, Hartford International Capital Appreciation HLS Fund, Hartford Growth HLS Fund, Hartford MidCap Value HLS Fund, Hartford Focus HLS Fund, Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund, Hartford Value HLS Fund and Hartford High Yield HLS Fund.) and Hartford HLS Series Fund II, Inc. (comprised of sixteen portfolios, four are included in these financial statements; they are Hartford SmallCap Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford Value Opportunities HLS Fund and Hartford U.S. Government Securities HLS Fund). 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 Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund and Hartford Focus 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 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 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 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 assets in the equity securities of technology companies worldwide. Hartford International Small Company HLS Fund Seeks capital appreciation by investing at least 80% of its assets in equity securities of foreign issuers, including non-dollar securities, with market capitalizations of under $8 billion. Hartford SmallCap Growth HLS Fund Seeks to maximize short and long-term capital (formerly Fortis Aggressive Growth Series) appreciation by investing at least 80% of its assets in equity securities of companies with market capitalizations within the range of the Russell 2000 Index. Hartford Growth Opportunities HLS Fund Seeks short and long-term capital appreciation by (formerly Fortis Growth Stock Series) investing primarily in a diversified portfolio of common stocks covering a broad range of industries, companies and market capitalizations that the fund's sub-adviser, Wellington Management Company, LLP ("Wellington"), believes have superior growth potential.
138 --------------------------------------------------------------------------------
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 80% of its assets in common stocks of companies with market capitalizations within the range represented by the Russell 2000 Index. 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 80% of its assets in common stocks of companies with market capitalizations within the range represented by the Standard & Poor's MidCap 400 Index. Hartford International Capital Appreciation HLS Fund Seeks capital appreciation by investing at least 80% of its 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 assets in common stocks of small, medium and large companies. Hartford Value Opportunities HLS Fund Seeks short and long-term capital appreciation by investing pri- (formerly Fortis Value Series) marily in equity securities of companies covering a broad range of industries and market capitalizations, focusing on securities that the fund sub-adviser, Wellington, believes are undervalued and have the potential for appreciation. Hartford Growth HLS Fund Seeks long-term capital appreciation by investing at least 65% of its assets in equity securities of growth companies. Hartford MidCap Value HLS Fund Seeks long-term capital appreciation by investing at least 80% of its assets in companies with market capitalization equaling or exceeding $500 million but not exceeding the largest market capitalization of the Russell Mid-Cap Index. 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 Global Leaders HLS Fund Seeks growth of capital by investing at least 65% of its assets in common stocks of high-quality growth companies worldwide. Hartford International Opportunities HLS Fund, Inc. Seeks growth of capital by investing at least 65% of its assets in stocks issued by non-U.S. companies which trade in foreign markets. Hartford Stock HLS Fund, Inc. Seeks long-term growth of capital, with income as a secondary consideration, by investing at least 80% of its assets in the common stocks of high-quality companies. 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 Index HLS Fund, Inc. Seeks to provide investment results which approximate the price and yield performance of publicly traded common stocks in the Standard & Poor's 500 Composite Stock Price Index. Hartford Value HLS Fund Seeks long-term total return by investing at least 80% of its assets in equity securities of companies with market capitalization above $3 billion.
139 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
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. Seeks maximum long-term total rate of return through a (formerly Hartford International Advisers HLS Fund, diversified portfolio of securities covering a broad range of Inc.) 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 at least 80% and up to 100% of its assets in non-investment grade debt securities. Growth of capital is a secondary objective. 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 mort- gage-related securities, including securities issued by U.S. Government agencies. Hartford U.S. Government Securities HLS Fund Seeks to maximize total return by investing at least 80% of (formerly Fortis U.S. Government Securities Series) its assets in securities issued by the U.S. Government or its agencies or instrumentalities. 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 140 -------------------------------------------------------------------------------- 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 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. 141 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- Certain Funds, together with other investment management companies having investment advisory agreements with Wellington have an interest in a $1,203,555 joint repurchase agreement dated 06/28/02 with State Street Bank, 1.884% due 07/01/02. This joint repurchase agreement is collateralized by $1,227,842 U.S. Treasury Bonds 5.25% - 12.00% due 08/15/2013 - 08/15/2029. The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Hartford Global Communications HLS Fund..................... $ 883 Hartford Global Financial Services HLS Fund................. 815 Hartford Global Health HLS Fund............................. 1,576 Hartford Global Technology HLS Fund......................... 2,330 Hartford International Small Company HLS Fund............... 1,320 Hartford SmallCap Growth HLS Fund........................... 10,984 Hartford Growth Opportunities HLS Fund...................... 4,659 Hartford Small Company HLS Fund, Inc. ...................... 41,876 Hartford International Capital Appreciation HLS Fund........ 3,222 Hartford Capital Appreciation HLS Fund, Inc. ............... 60,793 Hartford Value Opportunities HLS Fund....................... 1,065 Hartford Growth HLS Fund.................................... 446 Hartford MidCap Value HLS Fund.............................. 9,493 Hartford Focus HLS Fund..................................... 5,675 Hartford Global Leaders HLS Fund............................ 33,470 Hartford International Opportunities HLS Fund, Inc. ........ 120,350 Hartford Stock HLS Fund, Inc. .............................. 223,661 Hartford Growth and Income HLS Fund......................... 5,906 Hartford Value HLS Fund..................................... 3,142 Hartford Dividend and Growth HLS Fund, Inc. ................ 116,363 Hartford Global Advisers HLS Fund, Inc. .................... 20,005 Hartford Advisers HLS Fund, Inc. ........................... 111,358
Certain Funds, together with other investment management companies having investment advisory agreements with The Hartford Investment Management Company (HIMCO) have an interest in a $405,658 joint repurchase agreement dated 06/28/02 with State Street Bank, 1.905% due 07/01/02. This joint repurchase agreement is collateralized by $305,706 U.S. Treasury Bonds 6.25% - 13.25% due 05/15/14 - 08/15/23, $50,008 U.S. Treasury Notes 5.75% due 11/15/05 and $50,008 U.S. Treasury Bills 0.00% due 11/29/02. The maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Hartford Index HLS Fund, Inc. .............................. $ 1,214 Hartford High Yield HLS Fund................................ 10,081 Hartford Bond HLS Fund, Inc. ............................... 99,020 Hartford Mortgage Securities HLS Fund, Inc. ................ 56,523 Hartford U.S. Government Securities HLS Fund................ 7,658 Hartford Money Market HLS Fund, Inc. ....................... 175,951
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. As of June 30, 2002, there are no joint trading accounts. 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 142 -------------------------------------------------------------------------------- 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 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 143 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- 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 six months ended June 30, 2002:
OPTION CONTRACTS ACTIVITY DURING THE PERIOD ----------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------- NUMBER OF PREMIUM REALIZED CALLS WRITTEN CONTRACTS AMOUNTS GAIN/(LOSS) ------------- ----------- --------- ------------- Beginning of the period..................................... 1,200 $ 20 $-- Written during the period................................... 71 24 -- Expired during the period................................... -- -- -- Closed during the period.................................... (1,271) (44) 20 Exercised during the period................................. -- -- -- ------ ---- --- Balance at the end of the period............................ -- $ -- $20 ====== ==== ===
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------- NUMBER OF PREMIUM REALIZED CALLS PURCHASED CONTRACTS AMOUNTS GAIN/(LOSS) --------------- ----------- --------- ------------- Beginning of the period..................................... -- $ -- $ -- Written during the period................................... 17,426 270 -- Expired during the period................................... -- -- -- Closed during the period.................................... 10,068 (145) 200 Exercised during the period................................. -- -- -- ------ ----- ---- Balance at the end of the period............................ 7,358 $ 125 $200 ====== ===== ====
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------- NUMBER OF PREMIUM REALIZED PUTS WRITTEN CONTRACTS AMOUNTS GAIN/(LOSS) ------------ ----------- --------- ------------- Beginning of the period..................................... 7,080 $ 38 $-- Written during the period................................... -- -- -- Expired during the period................................... -- -- -- Closed during the period.................................... (7,080) (38) 31 Exercised during the period................................. -- -- -- ------ ---- --- Balance at the end of the period............................ -- $ -- $31 ====== ==== ===
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------- NUMBER OF PREMIUM REALIZED PUTS PURCHASED CONTRACTS AMOUNTS GAIN/(LOSS) -------------- ----------- --------- ------------- Beginning of the period..................................... 1,200 $ 20 $-- Written during the period................................... 807,171 125 -- Expired during the period................................... -- -- -- Closed during the period.................................... (7,276) (83) 43 Exercised during the period................................. -- -- -- ------- ---- --- Balance at the end of the period............................ 801,095 $ 62 $43 ======= ==== ===
g) Forward Foreign Currency Contracts -- As of June 30, 2002, Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford International Small Company HLS Fund, Hartford International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Global Advisers HLS 144 -------------------------------------------------------------------------------- Fund, Inc. had entered into forward foreign currency 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 market 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 June 30, 2002, the market value of the securities loaned and the market value of the collateral were as follows:
MARKET VALUE MARKET VALUE FUND OF SECURITIES LOANED OF COLLATERAL ---- -------------------- ------------- Hartford Global Communications HLS Fund..................... $ 1,606 $ 1,774 Hartford Global Financial Services HLS Fund................. 5,520 5,753 Hartford Global Health HLS Fund............................. 23,492 25,002 Hartford Global Technology HLS Fund......................... 874 1,084 Hartford International Small Company HLS Fund............... 2,077 2,193 Hartford Growth Opportunities HLS Fund...................... 21,073 22,143 Hartford Small Company HLS Fund, Inc. ...................... 28,935 31,913 Hartford MidCap HLS Fund, Inc. ............................. 177,437 185,714 Hartford International Capital Appreciation HLS Fund........ 3,804 3,974 Hartford Capital Appreciation HLS Fund, Inc. ............... 479,357 517,411 Hartford MidCap Value HLS Fund.............................. 31,599 34,349 Hartford Global Leaders HLS Fund............................ 99,859 104,980 Hartford International Opportunities HLS Fund, Inc. ........ 180,939 190,147 Hartford Stock HLS Fund, Inc. .............................. 47,821 49,290 Hartford Index HLS Fund, Inc. .............................. 6,973 7,392 Hartford Dividend and Growth HLS Fund, Inc. ................ 31,255 36,913 Hartford Global Advisers HLS Fund, Inc. .................... 25,553 26,893 Hartford Advisers HLS Fund, Inc. ........................... 1,533,090 1,566,564 Hartford High Yield HLS Fund................................ 32,323 33,158 Hartford Bond HLS Fund, Inc. ............................... 300,919 307,139 Hartford U.S. Gov't Securities HLS Fund..................... 32,126 32,909
j) Federal Income Taxes -- For federal income tax purposes, the Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code by distributing substantially all of their taxable net investment income and net realized capital gains to their shareholders or otherwise complying with the 145 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- 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 date 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 June 30, 2002, the Funds held the following illiquid securities:
PERCENTAGE ACQUISITION ACQUISITION MARKET OF FUND'S FUND SECURITY DATE COST VALUE NET ASSETS ---- ------------------------ ----------- ----------- ------ ---------- Hartford MidCap Value HLS Fund....................... McLeodUSA, Inc., Class A Various $ 832 $0 0.0% Hartford Value Opportunities HLS Fund................... McLeodUSA, Inc., Class A Various $6,600 $0 0.0%
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. 146 -------------------------------------------------------------------------------- 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 U.S. GOVERNMENT SECURITIES HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $50 million............................................... 0.500% Over $50 million................................................... 0.450
HARTFORD SMALL COMPANY HLS FUND, INC., HARTFORD MIDCAP HLS FUND, INC., HARTFORD CAPITAL APPRECIATION HLS FUND, INC., HARTFORD GLOBAL LEADERS HLS FUND, HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC., 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 GLOBAL COMMUNICATIONS HLS FUND, HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND, HARTFORD GLOBAL HEALTH HLS FUND, HARTFORD GLOBAL TECHNOLOGY HLS FUND, HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND, HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND AND HARTFORD FOCUS 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
HARTFORD GROWTH HLS FUND, 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 SMALLCAP GROWTH HLS FUND, HARTFORD GROWTH OPPORTUNITIES HLS FUND AND HARTFORD VALUE OPPORTUNITIES HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $100 million.............................................. 0.700% Over $100 million.................................................. 0.600
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 International Small Company HLS Fund, Hartford SmallCap Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford Value Opportunities 147 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- HLS Fund, Hartford Growth HLS Fund, Hartford MidCap Value HLS Fund, Hartford Focus HLS Fund, Hartford Global Leaders HLS Fund, Hartford International Opportunities HLS Fund, Inc., 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. 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., Hartford U.S. Government Securities HLS Fund 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 following Funds; Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford International Small Company HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford Growth HLS Fund, Hartford MidCap Value HLS Fund, Hartford Focus HLS Fund, Hartford Global Leaders HLS Fund, Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Growth and Income HLS Fund., Hartford Index HLS Fund, Inc., Hartford Value HLS Fund, Hartford Dividend and Growth HLS Fund, Inc., Hartford Global Advisers HLS Fund, Inc., Hartford Advisers 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., 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 Board of Directors waived 0.07% of this fee until April 30, 2002. Beginning May 1, 2002 the full 0.25% was charged. 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. 148 -------------------------------------------------------------------------------- 4. AFFILIATE HOLDINGS: As of June 30, 2002, HL Advisors, LLC held direct interests in shares as follows:
PERCENT OF PERCENT OF FUND CLASS IA TOTAL SHARES CLASS IB TOTAL SHARES ---- -------- ------------ -------- ------------ Hartford Global Communications HLS Fund................ 9,000 61.02% 1,000 23.53% Hartford Global Financial Services HLS Fund............ 9,000 48.17% 1,000 17.44% Hartford Global Health HLS Fund........................ @@-- -- @@-- -- Hartford International Small Company HLS Fund.......... 2,700 15.40% 300 7.77% Hartford Small Cap Growth HLS Fund..................... -- -- 1 2.61% Hartford Growth Opportunities HLS Fund................. -- -- @@-- 3.77% Hartford International Capital Appreciation HLS Fund... 2,700 12.02% 300 2.68% Hartford Value Opportunities HLS Fund.................. -- -- 1 5.14% Hartford Growth HLS Fund............................... 400 79.23% 50 55.73% Hartford MidCap Value HLS Fund......................... 2,700 1.03% 300 0.44% Hartford Focus HLS Fund................................ 2,700 6.34% 300 1.80% Hartford Value HLS Fund................................ 2,700 3.39% 300 1.19% Hartford U.S. Gov't Securities HLS Fund................ -- -- 1 0.20%
@@ Due to the presentation of the financial statements in thousands, the number of shares round to zero. 149 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS: For the six months ended June 30, 2002, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows:
COST OF SALES FUND PURCHASES PROCEEDS ---- ---------- ---------- Hartford Global Communications HLS Fund..................... $ 5,992 $ 4,114 Hartford Global Financial Services HLS Fund................. 11,025 5,911 Hartford Global Health HLS Fund............................. 104,695 56,953 Hartford Global Technology HLS Fund......................... 82,875 71,185 Hartford International Small Company HLS Fund............... 22,651 7,939 Hartford SmallCap Growth HLS Fund........................... 126,774 132,104 Hartford Growth Opportunities HLS Fund...................... 587,015 605,408 Hartford Small Company HLS Fund, Inc. ...................... 859,593 833,629 Hartford MidCap HLS Fund, Inc. ............................. 782,638 736,555 Hartford International Capital Appreciation HLS Fund........ 38,303 26,784 Hartford Capital Appreciation HLS Fund, Inc. ............... 3,821,966 3,435,755 Hartford Value Opportunities HLS Fund....................... 39,567 42,200 Hartford Growth HLS Fund.................................... 6,372 724 Hartford MidCap Value HLS Fund.............................. 262,997 48,652 Hartford Focus HLS Fund..................................... 67,322 49,320 Hartford Global Leaders HLS Fund............................ 1,125,009 884,759 Hartford International Opportunities HLS Fund, Inc. ........ 796,130 866,201 Hartford Stock HLS Fund, Inc. .............................. 1,533,024 1,884,623 Hartford Growth and Income HLS Fund......................... 461,444 235,295 Hartford Index HLS Fund, Inc. .............................. 353,053 83,173 Hartford Value HLS Fund..................................... 60,548 10,639 Hartford Dividend and Growth HLS Fund, Inc. ................ 906,224 655,095 Hartford Global Advisers HLS Fund, Inc. .................... 460,635 453,365 Hartford Advisers HLS Fund, Inc. ........................... 3,461,631 3,018,978 Hartford High Yield HLS Fund................................ 152,076 60,079 Hartford Bond HLS Fund, Inc. ............................... 1,525,650 1,186,740 Hartford Mortgage Securities HLS Fund, Inc. ................ 705,165 540,535 Hartford U.S. Government Securities HLS Fund................ 158,604 109,914
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 150 -------------------------------------------------------------------------------- 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 FUND INCOME (LOSS) INVESTMENTS SURPLUS ---- -------------- -------------- ------- 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 International Small Company HLS Fund............... (17) 18 (1) Hartford Small Company HLS Fund, Inc........................ (129) 434 (305) Hartford MidCap Fund HLS Fund, Inc. ........................ (20) 18 2 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 Focus HLS Fund..................................... 1 -- (1) Hartford Global Leaders HLS Fund............................ (182) 179 3 Hartford International Opportunities HLS Fund, Inc. ........ (3,170) 3,176 (6) Hartford Stock HLS Fund, Inc. .............................. (346) 346 -- Hartford Growth and Income HLS Fund, Inc. .................. (2) -- 2 Hartford Index HLS Fund, Inc. .............................. (42) 9 33 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 --
151 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- 7. CAPITAL LOSS CARRY FORWARD: For federal income tax purposes, the following funds had capital loss carryovers at, December 31, 2001, which, if not offset by subsequent capital gains, will expire in 2002 through 2009.
FUND AMOUNT ---- ------------- Hartford Global Communications HLS Fund..................... $ 2,525 Hartford Global Financial Services HLS Fund................. 608 Hartford Global Technology HLS Fund......................... 42,772 Hartford Small Company HLS Fund, Inc. ...................... 249,531 Hartford MidCap HLS Fund, Inc. ............................. 103,468 Hartford International Capital Appreciation HLS Fund........ 821 Hartford Capital Appreciation HLS Fund...................... 256,284 Hartford MidCap Value HLS Fund.............................. 248 Hartford Global Leaders HLS Fund............................ 158,795 Hartford International Opportunities HLS Fund, Inc. ........ 211,155 Hartford Stock HLS Fund, Inc. .............................. 287,370 Hartford Growth and Income HLS Fund......................... 39,950 Hartford Global Advisers HLS Fund, Inc. .................... 50,979 Hartford Advisers HLS Fund, Inc. ........................... 280,994 Hartford High Yield HLS Fund................................ 4,102 Hartford Mortgage Securities HLS Fund, Inc. ................ 8,186
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 FUND LOSS DEFERRED LOSS DEFERRED ---- ------------- ------------- 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 --
@@ Due to the presentation of the financial statement in thousands, the currency loss deferred rounds to zero. Such deferred losses will be treated as arising on the first day of the fiscal year ending December 31, 2002. 152 -------------------------------------------------------------------------------- 8. DISTRIBUTIONS TO SHAREHOLDERS: The tax character of distributions paid during 2001 was as follows:
ORDINARY LONG-TERM RETURN FUND INCOME CAPITAL GAIN OF CAPITAL ---- -------- ------------ ---------- Hartford Global Communications HLS Fund..................... $ 50 $ -- $-- Hartford Global Financial Services HLS Fund................. 73 -- -- Hartford International Small Company HLS Fund............... 9 -- -- Hartford Small Company HLS Fund, Inc........................ 9,067 49,603 -- Hartford MidCap Fund HLS Fund, Inc. ........................ 192,583 38,896 -- 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 Focus HLS Fund..................................... 66 -- -- Hartford Global Leaders HLS Fund............................ 6,484 2,760 -- Hartford International Opportunities HLS Fund, Inc. ........ 38,342 121,430 -- Hartford Stock HLS Fund, Inc. .............................. 224,556 497,691 -- Hartford Growth and Income HLS Fund......................... 12,840 4,403 -- Hartford Index HLS Fund, Inc. .............................. 18,000 37,645 -- 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 -- --
153 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- As of December 31, 2001, the components of distributable earnings on tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED UNREALIZED ORDINARY LONG-TERM APPRECIATION FUND INCOME CAPITAL GAIN (DEPRECIATION) ---- ------------- ------------- -------------- 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 International Small Company HLS Fund............. 53 -- (277) Hartford Small Company HLS Fund, Inc. .................... -- -- 65,858 Hartford MidCap HLS Fund, Inc. ........................... 1,990 -- 116,501 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 Focus HLS Fund................................... 548 -- 1,463 Hartford Global Leaders HLS Fund.......................... 399 -- 26,521 Hartford International Opportunities HLS Fund, Inc. ...... 8,467 -- (39,912) Hartford Stock HLS Fund, Inc. ............................ 3,412 -- 499,054 Hartford Growth and Income HLS Fund....................... 2,255 -- (21,084) Hartford Index HLS Fund, Inc. ............................ 1,349 73,521 280,808 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. 9. CAPITAL SHARE TRANSACTIONS: The following information is for the six months ended June 30, 2002:
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.................... 4,419 $ 2,274 6,720 $ 6,164 36,476 $ 52,815 Shares issued on reinvestment of distributions............. 7 3 17 15 4,018 4,918 Shares redeemed................ (1,729) (843) (3,218) (2,966) (18,537) (25,963) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 2,697 $ 1,434 3,519 $ 3,213 21,957 $ 31,770 ========== =========== ========== =========== ========== ===========
154 --------------------------------------------------------------------------------
HARTFORD GLOBAL HARTFORD INTERNATIONAL HARTFORD SMALLCAP GROWTH TECHNOLOGY HLS FUND SMALL COMPANY HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 159,275 $ 70,640 15,493 $ 15,496 987 $ 13,409 Shares issued on reinvestment of distributions............. -- -- 37 37 -- -- Shares redeemed................ (146,222) (62,872) (2,655) (2,605) (1,716) (24,839) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 13,053 $ 7,768 12,875 $ 12,928 (729) $ (11,430) ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH OPPORTUNITIES HARTFORD SMALL COMPANY HARTFORD MIDCAP HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 369 $ 7,724 192,613 $ 253,338 136,223 $ 287,150 Shares issued on reinvestment of distributions............. -- -- -- -- 984 1,990 Shares redeemed................ (2,202) (46,605) (169,625) (220,812) (138,424) (291,594) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ (1,833) $ (38,881) $ 22,988 $ 32,526 (1,217) $ (2,454) ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD CAPITAL HARTFORD VALUE CAPITAL APPRECIATION APPRECIATION OPPORTUNITIES HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 12,783 $ 11,006 101,950 $ 391,122 552 $ 7,618 Shares issued on reinvestment of distributions............. 7 6 1,657 5,543 218 3,217 Shares redeemed................ (1,923) (1,621) (143,483) (531,640) (819) (11,235) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 10,867 $ 9,391 (39,876) $ (134,975) (49) $ (400) ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH HARTFORD MIDCAP VALUE HARTFORD FOCUS HLS FUND HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 506 $ 5,007 240,776 $ 254,583 14,757 $ 14,553 Shares issued on reinvestment of distributions............. -- -- -- -- 451 369 Shares redeemed................ (1) (9) (74,180) (79,041) (4,381) (4,085) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 505 $ 4,998 166,596 $ 175,542 10,827 $ 10,837 ========== =========== ========== =========== ========== ===========
155 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD INTERNATIONAL HARTFORD GLOBAL LEADERS OPPORTUNITIES HARTFORD STOCK HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 361,742 $ 503,663 1,488,834 $ 1,386,110 48,707 $ 219,246 Shares issued on reinvestment of distributions............. 291 379 9,256 8,285 833 3,289 Shares redeemed................ (186,675) (261,523) (1,561,108) (1,462,372) (119,979) (527,202) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 175,358 $ 242,519 (63,018) $ (67,977) (70,439) $ (304,667) ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD INDEX HARTFORD VALUE INCOME HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 254,995 $ 278,021 134,445 $ 405,807 41,712 $ 40,336 Shares issued on reinvestment of distributions............. 2,171 2,112 27,436 72,829 -- -- Shares redeemed................ (65,755) (72,404) (61,223) (183,511) (3,153) (2,992) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 191,411 $ 207,729 100,658 $ 295,125 38,553 $ 37,344 ========== =========== ========== =========== ========== ===========
HARTFORD DIVIDEND AND HARTFORD GLOBAL HARTFORD ADVISERS GROWTH HLS FUND, INC. ADVISERS HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 218,415 $ 414,881 30,426 $ 30,254 333,094 $ 748,948 Shares issued on reinvestment of distributions............. 93,163 158,488 358 344 100,364 207,678 Shares redeemed................ (127,186) (239,914) (44,023) (43,699) (282,639) (632,005) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 184,392 $ 333,455 (13,239) $ (13,101) 150,819 $ 324,621 ========== =========== ========== =========== ========== ===========
HARTFORD HIGH YIELD HARTFORD BOND HARTFORD MORTGAGE HLS FUND HLS FUND, INC. SECURITIES HLS FUND, INC. ------------------------ ------------------------ -------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ----------- ------------ CLASS IA Shares sold.................... 176,159 $ 166,556 371,058 $ 430,239 129,937 $ 152,910 Shares issued on reinvestment of distributions............. 11,823 9,980 83,422 92,931 16,459 18,984 Shares redeemed................ (102,171) (96,626) (209,607) (241,583) (78,501) (91,910) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 85,811 $ 79,910 244,873 $ 281,587 67,895 $ 79,984 ========== =========== ========== =========== ========== ===========
156 --------------------------------------------------------------------------------
HARTFORD U.S. GOVERNMENT HARTFORD MONEY MARKET SECURITIES HLS FUND HLS FUND, INC. ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 4,743 $ 50,587 3,321,959 $ 3,321,959 Shares issued on reinvestment of distributions............. 840 8,732 15,044 15,044 Shares redeemed................ (2,269) (24,122) (3,151,411) (3,151,411) ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 3,314 $ 35,197 185,592 $ 185,592 ========== =========== ========== ===========
HARTFORD GLOBAL HARTFORD GLOBAL COMMUNICATIONS FINANCIAL SERVICES HARTFORD GLOBAL HEALTH HLS FUND HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 2,128 $ 1,067 2,492 $ 2,288 11,526 $ 16,311 Shares issued on reinvestment of distributions............. 3 1 8 7 887 1,082 Shares redeemed................ (367) (189) (389) (357) (1,418) (1,933) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 1,764 $ 879 2,111 $ 1,938 10,995 $ 15,460 ========== =========== ========== =========== ========== ===========
HARTFORD GLOBAL HARTFORD INTERNATIONAL HARTFORD SMALLCAP GROWTH TECHNOLOGY HLS FUND SMALL COMPANY HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 10,594 $ 4,609 3,648 $ 3,640 33 $ 488 Shares issued on reinvestment of distributions............. -- -- 9 9 -- -- Shares redeemed................ (3,596) (1,448) (614) (610) (9) (129) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 6,998 $ 3,161 3,043 $ 3,039 24 $ 359 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH OPPORTUNITIES HARTFORD SMALL COMPANY HARTFORD MIDCAP HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 13 $ 256 17,487 $ 22,358 508 $ 1,057 Shares issued on reinvestment of distributions............. -- -- -- -- -- -- Shares redeemed................ -- -- (3,161) (3,914) (2,914) (6,114) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 13 $ 256 14,326 $ 18,444 (2,406) $ (5,057) ========== =========== ========== =========== ========== ===========
157 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD INTERNATIONAL HARTFORD CAPITAL HARTFORD VALUE CAPITAL APPRECIATION APPRECIATION OPPORTUNITIES HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 6,427 $ 5,518 44,406 $ 167,923 15 $ 207 Shares issued on reinvestment of distributions............. 4 3 91 303 -- -- Shares redeemed................ (1,157) (990) (7,116) (25,816) (1) (18) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 5,274 $ 4,531 37,381 $ 142,410 14 $ 189 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH HARTFORD MIDCAP VALUE HARTFORD FOCUS HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 90 $ 871 44,367 $ 46,146 9,134 $ 8,835 Shares issued on reinvestment of distributions............. -- -- -- -- 185 151 Shares redeemed................ -- -- (1,455) (1,496) (1,129) (1,044) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 90 $ 871 42,912 $ 44,650 8,190 $ 7,942 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD GLOBAL LEADERS OPPORTUNITIES HARTFORD STOCK HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 7,635 $ 10,634 74,419 $ 68,775 15,434 $ 69,387 Shares issued on reinvestment of distributions............. 15 20 204 182 31 123 Shares redeemed................ (2,170) (2,985) (71,600) (66,261) (2,688) (11,635) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 5,480 $ 7,669 3,023 $ 2,696 12,777 $ 57,875 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD INDEX INCOME HLS FUND HLS FUND, INC. HARTFORD VALUE HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 13,977 $ 15,422 6,221 $ 19,029 14,342 $ 13,803 Shares issued on reinvestment of distributions............. 148 143 771 2,040 -- -- Shares redeemed................ (2,379) (2,552) (1,120) (3,275) (1,168) (1,103) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 11,746 $ 13,013 5,872 $ 17,794 13,174 $ 12,700 ========== =========== ========== =========== ========== ===========
158 --------------------------------------------------------------------------------
HARTFORD DIVIDEND AND HARTFORD GLOBAL ADVISERS HARTFORD ADVISERS GROWTH HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 51,128 $ 96,963 3,494 $ 3,467 67,560 $ 154,776 Shares issued on reinvestment of distributions............. 6,757 11,475 9 9 5,221 10,878 Shares redeemed................ (2,613) (4,867) (1,472) (1,468) (8,470) (18,890) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 55,272 $ 103,571 2,031 $ 2,008 64,311 $ 146,764 ========== =========== ========== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD HIGH YIELD HARTFORD BOND SECURITIES HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 23,623 $ 22,094 70,537 $ 81,396 23,674 $ 27,775 Shares issued on reinvestment of distributions............. 2,038 1,713 10,543 11,710 1,714 1,967 Shares redeemed................ (15,150) (14,267) (8,553) (9,841) (2,104) (2,468) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 10,511 $ 9,540 72,527 $ 83,265 23,284 $ 27,274 ========== =========== ========== =========== ========== ===========
HARTFORD U.S. GOVERNMENT HARTFORD MONEY MARKET SECURITIES HLS FUND HLS FUND, INC. ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 477 $ 5,084 153,775 $ 153,775 Shares issued on reinvestment of distributions............. -- -- 1,207 1,207 Shares redeemed................ (3) (32) (109,529) (109,529) ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 474 $ 5,052 45,453 $ 45,453 ========== =========== ========== ===========
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 ========== =========== ========== =========== ========== ===========
159 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD GLOBAL HARTFORD INTERNATIONAL HARTFORD SMALLCAP GROWTH TECHNOLOGY HLS FUND SMALL COMPANY HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 231,789 $ 125,210 6,762 $ 6,661 1,868 $ 34,172 Shares issued on reinvestment of distributions............. -- -- 3 3 2,218 34,647 Shares redeemed................ (168,634) (86,516) (2,105) (2,081) (2,382) (42,543) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 63,155 $ 38,694 4,660 $ 4,583 1,704 $ 26,276 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH OPPORTUNITIES HARTFORD SMALL COMPANY HARTFORD MIDCAP HLS FUND HLS FUND, INC. HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 781 $ 22,152 526,268 $ 736,068 341,294 $ 758,061 Shares issued on reinvestment of distributions............. 9,535 218,095 41,341 55,117 106,035 218,450 Shares redeemed................ (3,139) (88,292) (546,865) (758,254) (323,058) (684,669) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 7,177 $ 151,955 20,744 $ 32,931 124,271 $ 291,842 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD CAPITAL HARTFORD VALUE CAPITAL APPRECIATION APPRECIATION OPPORTUNITIES HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 23,710 $ 20,261 215,404 $ 1,054,902 2,114 $ 35,196 Shares issued on reinvestment of distributions............. 10 8 623,445 2,648,265 1,079 16,361 Shares redeemed................ (12,119) (10,103) (258,283) (1,211,245) (811) (12,469) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 11,601 $ 10,166 580,566 $ 2,491,922 2,382 $ 39,088 ========== =========== ========== =========== ========== ===========
HARTFORD MIDCAP VALUE HARTFORD FOCUS HARTFORD GLOBAL LEADERS HLS FUND HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 105,060 $ 98,613 33,553 $ 33,160 296,824 $ 433,293 Shares issued on reinvestment of distributions............. 108 108 48 51 5,746 8,550 Shares redeemed................ (9,359) (9,131) (1,829) (1,754) (292,111) (422,562) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 95,809 $ 89,590 31,772 $ 31,457 10,459 $ 19,281 ========== =========== ========== =========== ========== ===========
160 --------------------------------------------------------------------------------
HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD STOCK HARTFORD GROWTH AND HLS FUND, INC. HLS FUND, INC. INCOME HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 4,445,906 $ 4,865,092 90,735 $ 467,794 239,372 $ 263,472 Shares issued on reinvestment of distributions............. 156,280 155,838 141,837 704,459 12,954 15,880 Shares redeemed................ (4,586,859) (5,030,090) (209,043) (1,045,386) (183,929) (218,305) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 15,327 $ (9,160) 23,529 $ 126,867 68,937 $ 85,938 ========== =========== ========== =========== ========== ===========
HARTFORD INDEX HARTFORD VALUE HARTFORD DIVIDEND AND HLS FUND, INC. HLS FUND GROWTH HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.................... 78,117 $ 263,472 41,384 $ 40,212 379,363 $ 756,321 Shares issued on reinvestment of distributions............. 16,484 54,716 243 243 129,503 250,697 Shares redeemed................ (114,232) (375,576) (624) (602) (313,532) (622,096) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ (19,631) $ (57,388) 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 U.S. HARTFORD BOND HARTFORD MORTGAGE GOVERNMENT SECURITIES HLS FUND, INC. SECURITIES HLS FUND, INC. HLS FUND ------------------------ -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ----------- ------------ ---------- ----------- CLASS IA Shares sold.................... 595,757 $ 676,049 180,325 $ 207,351 3,912 $ 42,315 Shares issued on reinvestment of distributions............. 53,709 59,005 17,510 19,519 782 8,249 Shares redeemed................ (229,577) (261,120) (103,076) (118,408) (1,891) (20,342) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 419,889 $ 473,934 94,759 $ 108,462 2,803 $ 30,222 ========== =========== ========== =========== ========== ===========
161 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD MONEY MARKET HLS FUND, INC ------------------------ SHARES AMOUNT ---------- ----------- CLASS IA Shares sold.................... 10,370,478 $10,370,478 Shares issued on reinvestment of distributions............. 57,052 57,052 Shares redeemed................ (9,802,285) (9,802,285) ---------- ----------- Net Increase (Decrease)........ 625,245 $ 625,245 ========== ===========
HARTFORD GLOBAL HARTFORD GLOBAL COMMUNICATIONS FINANCIAL SERVICES HARTFORD GLOBAL HEALTH HLS FUND 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 INTERNATIONAL HARTFORD SMALL COMPANY TECHNOLOGY HLS FUND SMALL COMPANY HLS FUND HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 28,450 $ 15,683 1,259 $ 1,211 39,777 $ 53,789 Shares issued on reinvestment of distributions............. -- -- 1 -- 2,675 3,553 Shares redeemed................ (5,899) (2,983) (441) (427) (22,022) (29,241) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 22,551 $ 12,700 819 $ 784 20,430 $ 28,101 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD CAPITAL HARTFORD MIDCAP CAPITAL APPRECIATION APPRECIATION HLS FUND, INC. HLS FUND HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 35,352 $ 80,519 7,306 $ 6,141 61,778 $ 291,591 Shares issued on reinvestment of distributions............. 6,345 13,029 4 3 17,726 75,119 Shares redeemed................ (5,984) (12,178) (1,399) (1,169) (3,367) (14,507) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 35,713 $ 81,370 5,911 $ 4,975 76,137 $ 352,203 ========== =========== ========== =========== ========== ===========
162 --------------------------------------------------------------------------------
HARTFORD MIDCAP VALUE HARTFORD FOCUS HARTFORD GLOBAL LEADERS HLS FUND HLS FUND HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 26,244 $ 24,497 8,730 $ 8,528 23,053 $ 35,468 Shares issued on reinvestment of distributions............. 18 18 10 10 468 694 Shares redeemed................ (927) (847) (252) (234) (3,971) (5,779) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 25,335 $ 23,668 8,488 $ 8,304 19,550 $ 30,383 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL OPPORTUNITIES HARTFORD STOCK HARTFORD GROWTH AND HLS FUND, INC. HLS FUND INCOME HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 367,347 $ 415,835 33,247 $ 171,851 31,664 $ 38,911 Shares issued on reinvestment of distributions............. 3,948 3,934 3,588 17,788 1,116 1,363 Shares redeemed................ (361,563) (409,196) (2,605) (12,378) (4,117) (4,790) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 9,732 $ 10,573 34,230 $ 177,261 28,663 $ 35,484 ========== =========== ========== =========== ========== ===========
HARTFORD INDEX HARTFORD DIVIDEND AND HLS FUND, INC. HARTFORD VALUE HLS FUND GROWTH HLS FUND, INC. ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.................... 11,138 $ 37,412 12,264 $ 11,914 63,729 $ 125,383 Shares issued on reinvestment of distributions............. 281 929 70 70 4,004 7,729 Shares redeemed................ (1,289) (4,214) (301) (290) (2,510) (4,739) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)........ 10,130 $ 34,127 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 ========== =========== ========== =========== ========== ===========
163 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD BOND HARTFORD MORTGAGE HARTFORD MONEY MARKET HLS FUND, INC. SECURITIES 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 ========== =========== ========== =========== ========== ===========
10. LINE OF CREDIT: The Funds, except for the Hartford Money Market HLS Fund, Inc., participate in a $550,000,000 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 six months ended June 30, 2002, 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 FUND PERCENTAGE ---- ------------- Hartford Small Company HLS Fund, Inc. ...................... 74.61% Hartford Capital Appreciation HLS Fund, Inc. ............... 15.42 Hartford International Opportunities HLS Fund, Inc. ........ 71.63 Hartford Stock HLS Fund, Inc. .............................. 9.27 Hartford Dividend and Growth HLS Fund, Inc. ................ 44.38 Hartford Advisers HLS Fund, Inc. ........................... 29.67 Hartford Bond HLS Fund, Inc. ............................... 93.07
12. HARTFORD LIFE ACQUISITION: On April 2, 2001, Hartford Life and Accident Insurance Company ("Hartford Life") acquired Fortis Advisers, Inc. ("Fortis Advisers") and its subsidiaries, including Fortis Investors, Inc. ("Fortis Investors"). Hartford Life is a subsidiary of The Hartford Financial Services Group ("The Hartford"), a publicly held company. Maryland Redomestication: On April 29, 2002, Hartford SmallCap Growth HLS Fund, Hartford Growth Opportunities HLS Fund, Hartford Value Opportunities HLS Fund, Hartford U.S. Government Securities HLS Fund were redomesticated as a series of a New Maryland Corporation, Hartford HLS Series Fund II, Inc. 13. FUND MERGERS REORGANIZATION OF CERTAIN SERIES OF HARTFORD HLS SERIES FUND II, INC. At a special meeting of shareholders, held on April 29, 2002, shareholders of Fortis Asset Allocation Series, Fortis Global Growth Series, Fortis Growth & Income Series, Fortis HighYield Series, Fortis Diversified Income Series, Fortis S&P 500 Index Series and Fortis Money Market Series (each a "Fortis Fund") approved a proposed Agreement and Plan of Reorganization between Hartford HLS Series Fund II, Inc. and the Hartford HLS Mutual Funds (the "Plan"). Fortis Asset Allocation Series merged into Hartford Advisers HLS Fund, Inc. 164 -------------------------------------------------------------------------------- Fortis Global Growth Series merged into Hartford Global Leaders HLS Fund Fortis Growth & Income Series merged into Hartford Growth & Income HLS Fund Fortis High Yield Series merged into Hartford High Yield HLS Fund Fortis Diversified Income Series merged into Hartford Bond HLS Fund, Inc. Fortis S&P 500 Index Series merged into Hartford Index HLS Fund, Inc. Fortis Money Market Series merged into Hartford Money Market HLS Fund, Inc. The final shareholder voting results were as follows:
SHARES VOTED SHARES VOTED SHARES FOR AGAINST ABSTAINED ------------ ------------ --------- Fortis Asset Allocation Series.............................. 29,912 935 2,805 Fortis Global Growth Series................................. 13,220 553 950 Fortis Growth and Income Series............................. 12,409 261 981 Fortis High Yield Series.................................... 6,752 153 391 Fortis Diversified Income Series............................ 7,617 215 606 Fortis S&P 500 Index Series................................. 16,736 571 1,177 Fortis Money Market Series.................................. 10,149 304 1,114
Under the terms of the Plan, and pursuant to the approval by shareholders of each Fortis Fund, the assets of each Fortis Fund were acquired by a corresponding series of the Hartford HLS Mutual Funds (the "Hartford Fund") on April 30, 2002. The Hartford Fund acquired the Fortis Fund's assets in exchange for the Hartford Fund's shares, which were distributed pro rata by each Fortis Fund to the holders of its shares on April 30, 2002, in complete liquidation of the Fortis Fund. 165 HARTFORD HLS MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2002 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- The mergers were accomplished by tax free exchanges as detailed below:
HARTFORD ADVISERS HLS FUND, INC. CLASS IA CLASS IB -------------------------------- ---------- -------- Net assets of Fortis Asset Allocation on April 30, 2002..... 488,111 -- Fortis Asset Alocation shares exchanged..................... 34,477 -- Hartford Advisers shares issued............................. 220,049 -- Net assets of Hartford Advisers immediately before the merger.................................................... 11,086,683 588,603 Net assets of Hartford Advisers immediately after the merger.................................................... 11,574,794 588,603
HARTFORD GLOBAL LEADERS HLS FUND CLASS IA CLASS IB -------------------------------- ---------- -------- Net assets of Fortis Global Growth on April 30, 2002........ 253,327 -- Fortis Global Growth shares exchanged....................... 17,918 -- Hartford Global Leaders shares issued....................... 183,080 -- Net assets of Hartford Global Leaders immediately before the merger.................................................... 469,286 52,090 Net assets of Hartford Global Leaders immediately after the merger.................................................... 722,613 52,090
HARTFORD GROWTH & INCOME HLS FUND CLASS IA CLASS IB --------------------------------- -------- -------- Net assets of Fortis Growth & Income on April 30, 2002...... 200,110 -- Fortis Growth & Income shares exchanged..................... 15,260 -- Hartford Growth & Income shares issued...................... 186,135 -- Net assets of Hartford Growth and Income immediately before the merger................................................ 395,598 51,483 Net assets of Hartford Growth and Income immediately after the merger................................................ 595,708 51,483
HARTFORD HIGH YIELD HLS FUND CLASS IA CLASS IB ---------------------------- -------- -------- Net assets of Fortis High Yield on April 30, 2002........... 48,048 -- Fortis High Yield shares exchanged.......................... 8,528 -- Hartford High Yield shares issued........................... 50,750 -- Net assets of Hartford High Yield immediately before the merger.................................................... 142,974 34,629 Net assets of Hartford High Yield immediately after the merger.................................................... 191,022 34,629
HARTFORD BOND HLS FUND, INC. CLASS IA CLASS IB ---------------------------- --------- -------- Net assets of Fortis Diversified Income on April 30, 2002... 90,378 -- Fortis Diversified Income shares exchanged.................. 9,225 -- Hartford Bond shares issued................................. 77,738 -- Net assets of Hartford Bond immediately before the merger... 1,582,247 194,002 Net assets of Hartford Bond immediately after the merger.... 1,672,625 194,002
HARTFORD INDEX HLS FUND, INC. CLASS IA CLASS IB ----------------------------- --------- -------- Net assets of Fortis S&P 500 on April 30, 2002.............. 293,220 -- Fortis S&P 500 shares exchanged............................. 19,110 -- Hartford Index shares issued................................ 97,998 -- Net assets of Hartford Index immediately before the merger.................................................... 1,846,941 54,976 Net assets of Hartford Index immediately after the merger... 2,140,161 54,976
HARTFORD MONEY MARKET HLS FUND, INC. CLASS IA CLASS IB ------------------------------------ --------- -------- Net assets of Fortis Money Market on April 30, 2002......... 122,443 -- Fortis Money Market shares exchanged........................ 11,346 -- Hartford Money Market shares issued......................... 122,443 -- Net assets of Hartford Money Market immediately before the merger.................................................... 1,794,364 166,561 Net assets of Hartford Money Market immediately after the merger.................................................... 1,916,807 166,561
166 -------------------------------------------------------------------------------- The Fortis Asset Allocation Series, Fortis Global Growth Series, Fortis Growth & Income Series, Fortis High Yield Series, Fortis Diversified Income Series, Fortis S&P 500 Index Series and Fortis Money Market Series had unrealized appreciation (depreciation), accumulated net realized gains (losses) and capital stock as follows:
UNREALIZED ACCUMULATED APPRECIATION NET REALIZED FUND (DEPRECIATION) (LOSSES) CAPITAL STOCK ---- -------------- ------------ ------------- Fortis Asset Allocation Series............................ $(28,666) $(12,278) $529,055 Fortis Global Growth Series............................... 9,623 (3,966) 247,671 Fortis Growth and Income Series........................... (10,883) (792) 211,785 Fortis High Yield Series.................................. (11,371) (20,858) 80,277 Fortis Diversified Income Series.......................... (3,540) (8,690) 102,608 Fortis S&P 500 Index Series............................... (20,814) -- 293,220 Fortis Money Market Series................................ -- -- 122,443
14. CHANGE IN INDEPENDENT AUDITORS: On April 30, 2002, Ernst & Young LLP replaced Arthur Andersen LLP as independent auditors of the Hartford Small Company HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford Capital Appreciation 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. The reports of Arthur Andersen LLP on the financial statements of the Funds for the past two fiscal years contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle. In connection with its audits for the two most recent fiscal years and through April 30, 2002, there have been no disagreements with Arthur Andersen LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Arthur Andersen LLP, would have caused them to make reference thereto in their report on the financial statements for such years. 167 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $0.640 $ 0.001 $(0.241) $(0.240) $ -- Class IB........................ 0.640 0.002 (0.243) (0.241) -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.940 0.004 (0.045) (0.041) (0.002) Class IB........................ 0.940 0.003 (0.046) (0.043) (0.001) 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.442 0.001 (0.185) (0.184) (0.001) Class IB........................ 1.441 -- (0.188) (0.188) -- For the Year Ended December 31, 2001 Class IA........................ 1.442 -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.637 (0.001) (0.296) (0.297) -- Class IB........................ 0.636 (0.001) (0.297) (0.298) -- 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 INTERNATIONAL SMALL COMPANY HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.940 0.001 0.079 0.080 -- Class IB........................ 0.940 0.001 0.078 0.079 -- 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) -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $-- $ -- $-- Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD GLOBAL HEALTH HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.031) -- Class IB........................ -- (0.031) -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- 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 INTERNATIONAL SMALL COMPANY HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.003) -- Class IB........................ -- (0.003) -- From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 168 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------- NET RATIO OF INCREASE RATIO OF RATIO OF NET (DECREASE) NET ASSETS EXPENSES EXPENSES INVESTMENT 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 ------------- ---------- ------------- --------- --------------- ------------- -------------- ---------- $ -- $(0.241) $0.399 (37.27)% $ 5,889 0.95%(1) 0.95%(1) 0.72%(1) -- (0.241) 0.399 (37.31) 1,696 1.16(1) 1.20(1) 0.51(1) (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 (0.002) (0.043) 0.897 (4.09) 16,769 1.03(1) 1.03(1) 1.13(1) (0.001) (0.044) 0.896 (4.17) 5,137 1.24(1) 1.28(1) 0.92(1) (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 (0.032) (0.216) 1.226 (14.53) 195,348 0.89(1) 0.89(1) 0.10(1) (0.031) (0.219) 1.222 (14.62) 43,220 1.09(1) 1.14(1) (0.11)(1) -- 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 -- (0.297) 0.340 (30.93) 63,885 0.89(1) 0.89(1) (0.71)(1) -- (0.298) 0.338 (30.96) 13,906 1.09(1) 1.14(1) (0.91)(1) -- (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 (37.45)(2) 71,276 0.92 0.92 (0.44) -- (0.364) 0.636 (37.10)(2) 7,340 1.10 1.17 (0.62) (0.003) 0.078 1.018 8.72 17,846 1.21(1) 1.21(1) 1.58(1) (0.003) 0.076 1.016 8.61 3,925 1.43(1) 1.46(1) 1.36(1) (0.002) (0.002) 0.940 (5.98)(2) 4,373 1.00 1.00 1.01 (0.001) (0.001) 0.940 (6.09)(2) 768 1.18 1.25 0.83 --- --------- PORTFOLIO TURNOVER RATE (7) --------- 53% 53 95 95 30 30 119 119 23 23 62 62 46 46 73 73 240 240 150 150 84 84 168 168
169 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 SMALLCAP GROWTH HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $16.440 $ (0.028) $ (3.004) $ (3.032) $ -- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ 15.894 (0.006) (2.432) (2.438) -- For the Year Ended December 31, 2001 Class IA........................ 23.730 -- (4.910) (4.910) -- For the Year Ended December 31, 2000 Class IA........................ 33.790 -- (3.060) (3.060) -- For the Year Ended December 31, 1999 Class IA........................ 16.700 (0.040) 17.860 17.820 (0.010) For the Year Ended December 31, 1998 Class IA........................ 13.810 0.010 2.910 2.920 (0.030) For the Year Ended December 31, 1997 Class IA........................ 13.620 0.030 0.160 0.190 -- HARTFORD GROWTH OPPORTUNITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 22.660 (0.026) (4.052) (4.078) -- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ 21.362 (0.010) (2.777) (2.787) -- For the Year Ended December 31, 2001 Class IA........................ 40.660 -- (9.210) (9.210) -- For the Year Ended December 31, 2000 Class IA........................ 45.140 (0.030) 2.990 2.960 -- For the Year Ended December 31, 1999 Class IA........................ 41.090 (0.050) 17.420 17.370 (0.090) For the Year Ended December 31, 1998 Class IA........................ 36.640 0.090 6.400 6.490 (0.130) For the Year Ended December 31, 1997 Class IA........................ 32.590 0.120 3.930 4.050 -- HARTFORD SMALL COMPANY HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.330 (0.002) (0.153) (0.155) -- Class IB........................ 1.330 (0.002) (0.160) (0.162) -- 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD SMALLCAP GROWTH HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $ -- $ -- $-- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- (2.380) -- For the Year Ended December 31, 2000 Class IA........................ -- (7.000) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.720) -- For the Year Ended December 31, 1998 Class IA........................ -- -- -- For the Year Ended December 31, 1997 Class IA........................ -- -- -- HARTFORD GROWTH OPPORTUNITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- (8.790) -- For the Year Ended December 31, 2000 Class IA........................ -- (7.440) -- For the Year Ended December 31, 1999 Class IA........................ -- (13.320) -- For the Year Ended December 31, 1998 Class IA........................ -- (2.040) -- For the Year Ended December 31, 1997 Class IA........................ -- -- -- HARTFORD SMALL COMPANY HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- 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) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 170 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- -------- --------------- ---------- ---------- ---------- --------- $ -- $ (3.032) $13.408 (18.43)% $ 212,321 0.69%(1) 0.69%(1) (0.36)%(1) 53% -- (2.438) 13.456 (18.53) 324 0.94(1) 0.94(1) (0.61)(1) 53 (2.380) (7.290) 16.440 (20.18) 272,272 0.68 0.68 (0.02) 164 (7.000) (10.060) 23.730 (15.08) 352,615 0.66 0.66 0.01 160 (0.730) 17.090 33.790 109.25 333,158 0.72 0.72 (0.22) 264 (0.030) 2.890 16.700 21.17 149,860 0.72 0.72 0.06 135 -- 0.190 13.810 1.43 122,455 0.76 0.76 0.24 25 -- (4.078) 18.582 (18.00) 585.093 0.67(1) 0.67(1) (0.24)(1) 87 -- (2.787) 18.575 (18.10) 233 0.92(1) 0.92(1) (0.49)(1) 87 (8.790) (18.000) 22.660 (22.85) 755,068 0.65 0.65 (0.01) 228 (7.440) (4.480) 40.660 3.99 1,063,005 0.64 0.64 (0.08) 120 (13.230) 4.050 45.140 55.17 1,044,728 0.66 0.66 (0.18) 175 (1.910) 4.450 41.090 19.01 762,354 0.65 0.65 0.21 106 -- 4.050 36.640 12.42 707,155 0.66 0.66 0.33 19 -- (0.155) 1.175 (11.82) 684,137 0.76(1) 0.76(1) (0.27)(1) 107 -- (0.162) 1.168 (11.92) 69,024 0.96(1) 1.01(1) (0.47)(1) 107 (0.103) (0.357) 1.330 (14.92) 745,253 0.76 0.76 0.03 227 (0.103) (0.353) 1.330 (15.07) 59,371 0.94 1.01 (0.15) 227 (0.250) (0.501) 1.687 (13.12) 908,886 0.74 0.74 -- 195 (0.250) (0.504) 1.683 (13.28) 40,967 0.92 0.99 (0.18) 195 (0.003) 0.867 2.188 65.83 757,302 0.78 0.78 (0.45) 181 (0.003)(6) 0.864(6) 2.187(6) 65.54 10,200 0.96 1.03 (0.63) 181 (0.020) 0.119 1.321 11.62 350,734 0.77 0.77 (0.24) 236 --(6) (0.017)(6) 1.323(6) (1.30)(2) 696 0.95(1) 0.95 (0.46)(1) 236 (0.063) 0.133 1.202 18.38 210,769 0.77 0.77 0.08 222
171 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 HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... $2.090 $ 0.001 $(0.052) $(0.051) $(0.002) Class IB....................................... 2.080 (0.002) (0.050) (0.052) -- For the Year Ended December 31, 2001 Class IA....................................... 2.467 0.003 (0.010) (0.097) -- Class IB....................................... 2.462 -- (0.010) (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 CAPITAL APPRECIATION HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... 0.860 0.004 (0.024) (0.020) -- Class IB....................................... 0.860 0.003 (0.025) (0.022) -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... 3.970 0.014 (0.606) (0.592) (0.003) Class IB....................................... 3.970 0.011 (0.613) (0.602) (0.002) 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD MIDCAP HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... $-- $ -- $-- Class IB....................................... -- -- -- 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 CAPITAL APPRECIATION HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... -- -- -- Class IB....................................... -- -- -- From inception April 30, 2001 through December 31, 2001 Class IA....................................... -- -- -- Class IB....................................... -- -- -- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA....................................... -- -- -- Class IB....................................... -- -- -- 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) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 172 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- --------- --------------- ---------- ---------- ---------- --------- $(0.002) $(0.054) $2.036 (2.60)% $1,714,951 0.70%(1) 0.70%(1) 0.05%(1) 39% -- (0.052) 2.028 (2.70) 109,346 0.91(1) 0.95(1) (0.16)(1) 39 (0.280) (0.377) 2.090 (3.62) 1,765,315 0.70 0.70 0.12 117 (0.280) (0.382) 2.080 (3.79) 117,396 0.88 0.95 (0.06) 117 (0.103) 0.414 2.467 25.42 1,774,047 0.70 0.72 (0.08) 138 (0.103) 0.409 2.462 25.20 50,747 0.88 0.97 (0.26) 138 (0.111) 0.614 2.053 51.81 672,678 0.79 0.79 (0.15) 121 (0.078) 0.295 2.053 21.39(2) 36 0.97(1) 1.04(1) (0.32)(1) 121 -- 0.302 1.439 26.57 143,494 0.79 0.79 (0.15) 134 (0.001) 0.137 1.137 13.81(2) 27,589 0.46(1) 0.86(1) 0.45(1)(3) 46 -- (0.020) 0.840 (2.27) 18,862 1.10(1) 1.10(1) 1.23(1) 143 -- (0.022) 0.838 (2.36) 9,374 1.31(1) 1.35(1) 1.02(1) 143 (0.001) (0.140) 0.860 (13.98)(2) 9,969 1.00 1.00 0.42 191 (0.001) (0.140) 0.860 (14.08)(2) 5,075 1.18 1.25 0.24 191 (0.003) (0.595) 3.375 (15.02) 7,282,172 0.68(1) 0.68(1) 0.74(1) 42 (0.002) (0.604) 3.366 (15.11) 459,430 0.88(1) 0.93(1) 0.54(1) 42 (1.636) (1.956) 3.970 (6.94) 8,734,600 0.68 0.68 0.57 92 (1.632) (1.953) 3.970 (7.10) 393,241 0.86 0.93 0.39 92 (0.967) (0.169) 5.926 13.22 9,581,897 0.66 0.66 0.64 108 (0.962) (0.175) 5.923 13.02 136,058 0.84 0.91 0.46 108 (0.330) 1.336 6.095 37.46 7,963,003 0.66 0.66 0.46 66 (1.992)(6) (0.339)(6) 6.098(6) 37.21 22,993 0.84 0.91 0.28 66 (0.201) 0.349 4.759 15.48 5,807,480 0.64 0.64 0.59 51 (0.156)(6) (0.049)(6) 6.437(6) 1.65(2) 5,942 0.82(1) 0.82 0.30(1) 51 (0.318) 0.496 4.410 22.34 4,802,992 0.64 0.64 0.44 58
173 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 VALUE OPPORTUNITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $14.830 $ 0.040 $(2.508) $(2.468) $(0.094) From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ 13.562 0.003 (1.576) (1.573) -- For the Year Ended December 31, 2001 Class IA........................ 17.380 0.080 (0.480) (0.400) (0.110) For the Year Ended December 31, 2000 Class IA........................ 15.650 0.140 2.680 2.820 (0.130) For the Year Ended December 31, 1999 Class IA........................ 14.380 0.130 1.150 1.280 -- For the Year Ended December 31, 1998 Class IA........................ 13.420 0.160 1.130 1.290 (0.160) For the Year Ended December 31, 1997 Class IA........................ 11.380 0.120 2.750 2.870 (0.130) HARTFORD GROWTH HLS FUND From inception April 30, 2002 through June 30, 2002 (Unaudited) Class IA........................ 10.000 0.002 (1.048) (1.046) -- Class IB........................ 10.000 (0.001) (1.049) (1.050) -- HARTFORD MIDCAP VALUE HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.990 0.001 0.011 0.012 -- Class IB........................ 0.990 0.001 0.009 0.010 -- 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 FOCUS HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.940 0.001 (0.114) (0.113) -- Class IB........................ 0.940 -- (0.115) (0.115) -- 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 GLOBAL LEADERS HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.440 0.006 (0.121) (0.115) (0.001) Class IB........................ 1.440 0.007 (0.127) (0.120) -- 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD VALUE OPPORTUNITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $-- $(0.275) $-- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- (2.040) -- For the Year Ended December 31, 2000 Class IA........................ -- (0.960) -- For the Year Ended December 31, 1999 Class IA........................ -- (0.010) -- For the Year Ended December 31, 1998 Class IA........................ -- (0.170) -- For the Year Ended December 31, 1997 Class IA........................ -- (0.700) -- HARTFORD GROWTH HLS FUND From inception April 30, 2002 through June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD MIDCAP VALUE HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD FOCUS HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.009) -- Class IB........................ -- (0.009) -- From inception April 30, 2001 through December 31, 2001 Class IA........................ -- -- -- Class IB........................ -- -- -- HARTFORD GLOBAL LEADERS HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- 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) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 174 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ----------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- ------- --------------- ---------- ---------- ---------- --------- $(0.369) $(2.837) $11.993 (17.12)% $104,990 0.74%(1) 0.74%(1) 0.56%(1) 33% -- (1.573) 11.989 (17.22) 173 0.99(1) 0.99(1) 0.31(1) 33 (2.150) (2.550) 14.830 (2.55) 130,567 0.73 0.73 0.68 147 (1.090) 1.730 17.380 18.49 111,590 0.76 0.76 0.87 171 (0.010) 1.270 15.650 8.96 94,583 0.78 0.78 0.85 211 (0.330) 0.960 14.380 9.64 87,604 0.76 0.76 1.26 332 (0.830) 2.040 13.420 25.24 55,058 0.83 0.83 1.41 121 -- (1.046) 8.954 (10.46)(2) 4,520 0.90(1) 0.90(1) 0.11(1) 15 -- (1.050) 8.950 (10.50)(2) 803 1.15(1) 1.15(1) (0.14)(1) 15 -- 0.012 1.002 0.73 262,943 0.87(1) 0.87(1) 0.43(1) 22 -- 0.010 1.000 0.63 68,271 1.08(1) 1.12(1) 0.22(1) 22 (0.001) (0.010) 0.990 (0.41)(2) 95,308 0.90 0.90 0.47 32 (0.001) (0.010) 0.990 (0.52)(2) 25,185 1.08 1.15 0.29 32 (0.009) (0.123) 0.817 (20.33) 34,815 0.89(1) 0.89(1) 0.20(1) 110 (0.009) (0.124) 0.816 (20.41) 13,609 1.10(1) 1.14(1) (0.01)(1) 110 (0.002) 0.040 1.040 3.94(2) 32,968 0.95 0.95 0.47 113 (0.001) 0.040 1.040 3.83(2) 8,803 1.13 1.20 0.29 113 (0.001) (0.116) 1.324 (8.21) 676,758 0.80(1) 0.80(1) 1.22(1) 154 -- (0.120) 1.320 (8.32) 52,468 1.00(1) 1.05(1) 1.02(1) 154 (0.025) (0.319) 1.440 (16.58) 484,661 0.81 0.81 0.71 363 (0.023) (0.317) 1.440 (16.73) 49,356 0.99 1.06 0.53 363 (0.020) (0.154) 1.759 (7.06) 572,517 0.81 0.81 0.63 367 (0.019) (0.155) 1.757 (7.22) 25,869 0.99 1.06 0.45 367 (0.017) 0.628 1.913 50.37 179,675 0.86 0.91 0.54(3) 207 (0.014) 0.627 1.912 50.11 69 1.04 1.16 0.36(3) 207 (0.034) 0.285 1.285 31.88(2) 5,761 0.89(1) 1.46(1) 0.63(1)(3) 48 (0.033) 0.285 1.285 31.82(2) 39 0.98(1) 1.55(1) 0.59(1)(3) 48
175 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 INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $ 0.950 $0.008 $(0.029) $(0.021) $(0.009) Class IB........................ 0.950 0.006 (0.030) (0.024) (0.007) 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) HARTFORD STOCK HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 4.740 0.019 (0.808) (0.789) (0.002) Class IB........................ 4.730 0.018 (0.804) (0.786) (0.002) 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) (0.472) (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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $-- $ -- $-- Class IB........................ -- -- -- 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) -- HARTFORD STOCK HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- 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........................ -- (0.766) -- 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) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 176 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- ------ --------------- ---------- ---------- ---------- --------- $(0.009) $(0.030) $ 0.920 (2.56)% $ 851,069 0.82%(1) 0.82%(1) 1.53%(1) 82% (0.007) (0.031) 0.919 (2.66) 24,296 1.03(1) 1.07(1) 1.33(1) 82 (0.162) (0.414) 0.950 (18.73) 941,934 0.81 0.81 1.10 144 (0.163) (0.415) 0.950 (18.88) 22,277 0.99 1.06 0.92 144 (0.216) (0.512) 1.364 (17.10) 1,326,609 0.78 0.78 1.16 159 (0.212) (0.511) 1.365 (17.25) 18,682 0.96 1.03 0.98 159 (0.018) 0.521 1.876 39.86 1,574,836 0.78 0.78 1.20 133 (0.017)(6) 0.519(6) 1.876(6) 39.61 3,203 0.96 1.03 1.02 133 (0.107) 0.061 1.355 13.16 1,196,694 0.77 0.77 1.51 157 (0.022)(6) (0.039)(6) 1.357(6) (1.13)(2) 663 0.94(1) 0.94 0.71(1) 157 (0.116) (0.113) 1.294 0.34 1,092,946 0.77 0.77 1.48 73 (0.002) (0.791) 3.949 (16.56) 6,255,698 0.49(1) 0.49(1) 0.84(1) 21 (0.002) (0.788) 3.942 (16.64) 276,562 0.69(1) 0.74(1) 0.64(1) 21 (0.443) (1.140) 4.740 (12.23) 7,834,643 0.49 0.49 0.80 39 (0.437) (1.149) 4.730 (12.39) 271,475 0.67 0.74 0.62 39 (0.806) (1.267) 5.880 (7.04) 9,590,018 0.48 0.48 0.64 40 (0.799) (1.272) 5.879 (7.21) 136,077 0.66 0.73 0.46 40 (0.608) 0.585 7.147 19.78 9,400,385 0.48 0.48 0.80 39 (5.954)(6) (4.733)(6) 7.151(6) 19.57 47,439 0.66 0.73 0.62 39 (0.234) 1.439 6.562 33.47 7,183,046 0.46 0.46 0.95 27 (0.517)(6) 1.091(6) 11.884(6) 14.91(2) 10,167 0.65(1) 0.65(1) 0.73(1) 27 (0.266) 0.980 5.123 31.38 4,713,322 0.45 0.45 1.11 32
177 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 GROWTH AND INCOME HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $1.170 $ -- $(0.194) $(0.194) $(0.004) Class IB........................ 1.170 0.001 (0.200) (0.199) (0.003) 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 INDEX HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 3.180 0.015 (0.438) (0.423) (0.002) Class IB........................ 3.180 0.016 (0.447) (0.431) (0.002) 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) HARTFORD VALUE HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.990 0.004 (0.097) (0.093) -- Class IB........................ 0.990 0.003 (0.097) (0.094) -- 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD GROWTH AND INCOME HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $-- $ -- $-- Class IB........................ -- -- -- 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 INDEX HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.103) -- Class IB........................ -- (0.103) -- 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) -- HARTFORD VALUE HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- From inception April 30, 2001 through December 31, 2001 Class IA........................ -- (0.004) -- Class IB........................ -- (0.004) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 178 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ----------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- -------- --------------- ---------- ---------- ---------- --------- $(0.004) $(0.198) $0.972 (16.73)% $ 531,169 0.78%(1) 0.78%(1) 0.52%(1) 48% (0.003) (0.202) 0.968 (16.84) 50,011 0.98(1) 1.03(1) 0.32(1) 48 (0.050) (0.156) 1.170 (8.02) 416,013 0.79 0.79 0.54 85 (0.050) (0.153) 1.170 (8.18) 46,599 0.97 1.04 0.36 85 (0.026) (0.106) 1.326 (5.64) 379,905 0.79 0.79 0.41 73 (0.025) (0.107) 1.323 (5.81) 14,898 0.97 1.04 0.23 73 (0.013) 0.246 1.432 21.82 201,857 0.82 0.82 0.63 54 (0.011) 0.245 1.430 21.61 14 1.00 1.07 0.45 54 (0.004) 0.186 1.186 19.05(2) 25,312 0.28(1) 0.84(1) 1.42(1)(3) 30 (0.003) 0.185 1.185 18.82(2) 11 0.44(1) 1.00(1) 1.34(1)(3) 30 (0.105) (0.528) 2.652 (13.36) 1,914,534 0.43(1) 0.43(1) 1.04(1) 4 (0.105) (0.536) 2.644 (13.45) 53,876 0.64(1) 0.68(1) 0.84(1) 4 (0.088) (0.545) 3.180 (12.31) 1,976,361 0.43 0.43 0.91 5 (0.084) (0.540) 3.180 (12.47) 46,056 0.61 0.68 0.73 5 (0.070) (0.464) 3.725 (9.50) 2,387,000 0.43 0.43 0.75 7 (0.067) (0.469) 3.720 (9.66) 16,272 0.61 0.68 0.57 7 (0.100) 0.619 4.189 20.49 2,581,436 0.43 0.43 0.95 3 (0.035) 0.267 4.189 7.73(2) 11 0.61(1) 0.68(1) 0.77(1) 3 (0.099) 0.692 3.570 28.06 1,846,117 0.40 0.40 1.21 5 (0.231) 0.496 2.878 32.61 1,123,455 0.39 0.39 1.52 6 -- (0.093) 0.897 (9.75) 71,374 0.88(1) 0.88(1) 1.14(1) 14 -- (0.094) 0.896 (9.84) 22,575 1.09(1) 1.13(1) 0.93(1) 14 (0.007) (0.010) 0.990 0.06(2) 40,759 0.90 0.90 1.02 16 (0.006) (0.010) 0.990 (0.06)(2) 11,952 1.08 1.15 0.84 16
179 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 DIVIDEND AND GROWTH HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $1.880 $ 0.012 $(0.090) $(0.078) $(0.001) Class IB........................ 1.880 0.016 (0.097) (0.081) (0.001) 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) HARTFORD GLOBAL ADVISERS HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.010 (0.039) (0.001) (0.040) -- Class IB........................ 1.000 0.007 (0.040) (0.033) -- 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $ -- $(0.088) $ -- Class IB........................ -- (0.088) -- 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) -- HARTFORD GLOBAL ADVISERS HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.001) -- Class IB........................ -- (0.001) -- 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) --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 180 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- ------ --------------- ---------- ---------- ---------- --------- $(0.089) $(0.167) $1.713 (4.13)% $3,223,505 0.68%(1) 0.68%(1) 1.37%(1) 19% (0.089) (0.170) 1.710 (4.22) 234,572 0.89(1) 0.93(1) 1.16(1) 19 (0.161) (0.244) 1.880 (4.04) 3,190,773 0.68 0.68 1.66 61 (0.159) (0.244) 1.880 (4.21) 153,848 0.86 0.93 1.48 61 (0.238) (0.025) 2.124 10.95 3,189,857 0.68 0.68 1.70 59 (0.236) (0.027) 2.124 10.75 35,415 0.86 0.93 1.52 59 (0.120) (0.011) 2.149 5.31 3,207,733 0.68 0.68 1.60 56 (0.217)(6) (0.116)(6) 2.151(6) 5.12 16,087 0.86 0.93 1.42 56 (0.105) 0.208 2.160 16.42(2) 3,031,293 0.66 0.66 1.81 48 (0.070)(6) 0.014(6) 2.267(6) 3.67(2) 8,600 0.85(1) 0.85(1) 1.57(1) 48 (0.075) 0.405 1.952 31.89 1,994,653 0.68 0.68 2.21 34 (0.001) (0.041) 0.969 (3.65) 306,492 0.84(1) 0.84(1) 2.33(1) 145 (0.001) (0.033) 0.967 (3.74) 13,472 1.05(1) 1.09(1) 2.12(1) 145 (0.071) (0.139) 1.010 (6.25) 331,784 0.86 0.86 2.21 346 (0.070) (0.147) 1.000 (6.42) 11,965 1.04 1.11 2.03 346 (0.160) (0.248) 1.149 (6.63) 384,648 0.85 0.85 2.72 184 (0.160) (0.250) 1.147 (6.80) 4,800 1.03 1.10 2.54 184 (0.025) 0.242 1.397 23.16 396,147 0.85 0.85 2.59 142 (0.025) 0.097 1.397 9.35(2) 11 1.03(1) 1.10(1) 2.42(1) 142 (0.166) (0.020) 1.155 13.35 285,853 0.86 0.86 2.77 161 (0.054) 0.008 1.175 5.52 207,582 0.87 0.87 3.08 163
181 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $2.340 $0.024 $(0.253) $(0.229) $(0.041) Class IB........................ 2.360 0.021 (0.258) (0.237) (0.039) 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) HARTFORD HIGH YIELD HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 0.960 0.006 (0.075) (0.069) (0.049) Class IB........................ 0.960 0.028 (0.101) (0.073) (0.048) 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.150 0.022 0.003 0.025 (0.048) Class IB........................ 1.140 0.023 0.008 0.031 (0.047) 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) 0.061(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) 0.023(6) 0.040(6) 0.063(6) (0.055)(6) For the Year Ended December 31 1997.......................... 1.000 0.063 0.047 0.110 (0.060) -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $-- $ -- $-- Class IB........................ -- -- -- 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) -- HARTFORD HIGH YIELD HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- Class IB........................ -- -- -- 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 Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.014) -- Class IB........................ -- (0.014) -- 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.......................... -- -- --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 182 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- -------- --------------- ---------- ---------- ---------- --------- $(0.041) $(0.270) $2.070 (9.93)% $10,767,495 0.66%(1) 0.66%(1) 2.26%(1) 25% (0.039) (0.276) 2.084 (10.04) 594,322 0.87(1) 0.91(1) 2.05(1) 25 (0.200) (0.325) 2.340 (4.64) 11,836,564 0.66 0.66 2.51 34 (0.176) (0.303) 2.360 (4.81) 521,205 0.84 0.91 2.33 34 (0.280) (0.300) 2.665 (0.75) 13,430,507 0.66 0.66 2.47 40 (0.279) (0.303) 2.663 (0.92) 252,247 0.84 0.91 2.29 40 (0.309) (0.020) 2.965 10.59 14,082,895 0.65 0.66 2.46 38 (0.893)(6) (0.611)(6) 2.966(6) 10.39 137,318 0.83 0.91 2.28 38 (0.149) 0.458 2.985 24.66 11,805,411 0.63 0.63 2.40 37 (0.195)(6) 0.206(6) 3.577(6) 11.96(2) 34,714 0.83(1) 0.83(1) 2.22(1) 37 (0.153) 0.358 2.527 24.51 8,283,912 0.63 0.63 2.44 36 (0.049) (0.118) 0.842 (7.58) 183,311 0.81(1) 0.81(1) 9.84(1) 15 (0.048) (0.121) 0.839 (7.71) 31,425 1.01(1) 1.06(1) 9.63(1) 15 (0.001) 0.021 0.960 2.69 127,044 0.81 0.81 9.70 63 (0.001) 0.022 0.960 2.54 25,901 0.99 1.06 9.52 63 (0.076) (0.066) 0.939 1.03 66,104 0.81 0.81 9.15 69 (0.075) (0.067) 0.938 0.85 2,497 0.99 1.06 8.97 69 (0.059) (0.012) 1.005 4.70 52,731 0.72 0.84 8.36(3) 47 (0.058) (0.012) 1.005 4.49 102 0.90 1.09 8.18(3) 47 (0.019) 0.017 1.017 3.59(2) 14,482 0.35(1) 0.92(1) 8.04(1)(3) 15 (0.019) 0.017 1.017 3.53(2) 102 0.53(1) 1.10(1) 7.77(1)(3) 15 (0.062) (0.037) 1.113 2.51 1,777,800 0.51(1) 0.51(1) 5.78(1) 70 (0.061) (0.030) 1.110 2.41 228,294 0.71(1) 0.76(1) 5.57(1) 70 (0.056) 0.042 1.150 8.68 1,549,698 0.51 0.51 5.87 185 (0.055) 0.033 1.140 8.49 152,254 0.69 0.76 5.69 185 (0.005) 0.114 1.108 11.99 1,033,043 0.52 0.52 6.54 169 (0.005) 0.112 1.107 11.79 31,551 0.70 0.77 6.36 169 (0.065) (0.087) 0.994 (2.02) 978,861 0.52 0.52 6.09 111 (0.065)(6) (0.088)(6) 0.995(6) (2.19) 15,818 0.70 0.77 5.91 111 (0.054) 0.031 1.081 8.15 902,480 0.50 0.50 5.86 122 (0.055)(6) 0.008(6) 1.083(6) 5.89(2) 5,285 0.69(1) 0.69(1) 5.54(1) 122 (0.060) 0.050 1.050 11.35 552,870 0.51 0.51 6.58 113(5)
183 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 MORTGAGE SECURITIES HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $ 1.150 $0.019 $ 0.031 $ 0.050 $(0.046) Class IB........................ 1.150 0.022 0.022 0.044 (0.045) 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) HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 10.790 0.228 0.210 0.438 (0.540) From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ 10.518 0.017 0.153 0.170 -- For the Year Ended December 31, 2001 Class IA........................ 10.590 0.500 0.280 0.780 (0.580) For the Year Ended December 31, 2000 Class IA........................ 10.130 0.700 0.460 1.160 (0.700) For the Year Ended December 31, 1999 Class IA........................ 10.930 0.630 (0.840) (0.210) (0.590) For the Year Ended December 31, 1998 Class IA........................ 10.680 0.600 0.340 0.940 (0.690) For the Year Ended December 31, 1997 Class IA........................ 10.570 0.800 0.120 0.920 (0.810) HARTFORD MONEY MARKET HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ 1.000 0.008 -- 0.008 (0.008) Class IB........................ 1.000 0.007 -- 0.007 (0.007) 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) -- SELECTED PER-SHARE DATA (4) -- ---------------------------------------------- DISTRIBUTIONS DIVIDENDS FROM IN EXCESS OF NET REALIZED DISTRIBUTIONS NET INVESTMENT GAINS ON FROM INCOME INVESTMENTS CAPITAL -------------- ------------- ------------- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ $ -- $ -- $ -- Class IB........................ -- -- -- 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............................ -- -- -- HARTFORD U.S. GOVERNMENT SECURITIES HLS FUND For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- -- -- From inception May 1, 2002 through June 30, 2002 (Unaudited) Class IB........................ -- -- -- For the Year Ended December 31, 2001 Class IA........................ -- -- -- For the Year Ended December 31, 2000 Class IA........................ -- -- -- For the Year Ended December 31, 1999 Class IA........................ -- -- -- For the Year Ended December 31, 1998 Class IA........................ -- -- -- For the Year Ended December 31, 1997 Class IA........................ -- -- -- HARTFORD MONEY MARKET HLS FUND, INC. For the Six Months Ended June 30, 2002 (Unaudited) Class IA........................ -- (0.000) -- Class IB........................ -- (0.000) -- 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.......................... -- -- --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Life Insurance Companies) 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. 184 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES EXPENSES NET NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT NET INCREASE VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL (DECREASE) IN END TOTAL PERIOD AFTER BEFORE TO AVERAGE TURNOVER DISTRIBUTIONS NET ASSETS VALUE OF PERIOD RETURN (000'S OMITTED) WAIVERS WAIVERS NET ASSETS RATE (7) ------------- ---------------- --------- ------ --------------- ---------- ---------- ---------- --------- $(0.046) $ 0.004 $ 1.154 3.92% $ 502,814 0.48%(1) 0.48%(1) 5.29%(1) 113% (0.045) (0.002) 1.148 3.78 52,825 0.70(1) 0.73(1) 5.08(1) 113 (0.067) 0.012 1.150 7.50 424,603 0.48 0.48 5.64 233 (0.067) 0.014 1.150 7.30 26,121 0.66 0.73 5.46 233 (0.008) 0.099 1.138 10.28 310,825 0.48 0.48 6.43 534 (0.008) 0.097 1.136 10.08 1,148 0.66 0.73 6.25 534 (0.062) (0.046) 1.039 1.52 339,767 0.48 0.48 5.98 472 (0.061) (0.068) 1.039 0.60(2) 9 0.66(1) 0.73(1) 5.80(1) 472 (0.072) 0.001 1.085 6.72 356,834 0.46 0.46 6.18 208 (0.065) 0.028 1.084 9.01 325,702 0.45 0.45 6.60 47(5) (0.540) (0.102) 10.688 4.20 208,091 0.51(1) 0.51(1) 5.03(1) 63 -- 0.170 10.688 4.09 5,064 0.76(1) 0.76(1) 4.78(1) 63 (0.580) 0.200 10.790 7.50 174,333 0.51 0.51 5.55 155 (0.700) 0.460 10.590 11.81 141,415 0.52 0.52 6.28 128 (0.590) (0.800) 10.130 (1.94) 138,658 0.52 0.52 5.64 97 (0.690) 0.250 10.930 8.87 152,672 0.51 0.51 5.53 114 (0.810) 0.110 10.680 9.08 142,070 0.54 0.54 6.03 148 (0.008) -- 1.000 0.79 2,053,113 0.48(1) 0.48(1) 1.63(1) -- (0.007) -- 1.000 0.70 197,581 0.68(1) 0.73(1) 1.43(1) -- (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 --
185 THE HARTFORD MUTUAL FUNDS, INC. BOARD OF DIRECTORS AND OFFICER INFORMATION -------------------------------------------------------------------------------- The Board of Directors ("Board") is responsible for overall management of the Funds. The Board may exercise all powers of the Funds, except those powers which are conferred solely upon or reserved to the shareholders. The Fund's Statement of Additional Information (SAI) includes additional information about the Board and is available without charge, upon request, by calling 1-800-862-6668. The following table provides information about the members of the Board, as well as, officers of the Funds.
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 of 48 Ms. Coleman is a (age 69) Saint Joseph College since 1991 and Director of LeMoyne c/o Hartford Mutual Funds 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 Group, c/o Hartford Mutual Funds a private equity investment firm that P.O. Box 2999 serves as sponsor and lead investor in Hartford, CT 06104-2999 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). ------------------------------------------------------------------------------------------------------------------------------------ *Term of Office: Each director may serve until his or her successor is elected and qualifies.
See Notes to Financial Statements. 186 THE HARTFORD MUTUAL FUNDS, INC. 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 ------------------------------------------------------------------------------------------------------------------------------------ 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. 187 THE HARTFORD MUTUAL FUNDS, INC. 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 71 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"). ----------------------------------------------------------------------------------------------------------------------------------- BRUCE FERRIS Vice President Since 2002 Mr. Ferris serves as Vice President N/A N/A (age 46) and a director of sales and P.O. Box 2999 marketing in the Investment Products Hartford, CT 06104-2999 Division of Hartford Life Insurance Company. ----------------------------------------------------------------------------------------------------------------------------------- RYAN JOHNSON Vice President Since 2002 Mr. Johnson has served as Vice N/A N/A (age 41) President and a director of sales P.O. Box 2999 and marketing in the Investment Hartford, CT 06104-2999 Products Division of Hartford Life Insurance Company since 1999. Previously he was with Guardian Insurance Company in New York, New York. ----------------------------------------------------------------------------------------------------------------------------------- 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. -----------------------------------------------------------------------------------------------------------------------------------
188 THE HARTFORD MUTUAL FUNDS, INC. 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. ----------------------------------------------------------------------------------------------------------------------------------- TAMARA L. FAGELY Vice Since 2002 Ms. Fagely has been Vice President N/A N/A (age 43) President, of Hartford Administrative Services 500 Bielenberg Drive Assistant Company ("HASCO") since 1998. Prior Woodbury, MN 55125 Controller and to 1998, she was Second Vice Assistant President of HASCO. She also has Treasurer served as Assistant Vice President of Hartford Life Insurance Company since December 2001. ----------------------------------------------------------------------------------------------------------------------------------- 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 -----------------------------------------------------------------------------------------------------------------------------------
189 THE HARTFORD MUTUAL FUNDS, INC. 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 ----------------------------------------------------------------------------------------------------------------------------------- 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. -----------------------------------------------------------------------------------------------------------------------------------
*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. 190 [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 exists between us. 191 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. 192