-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U1m5dXY9P1PskpSfCAXvF0FQ1kDi0FIFC6QWnXknZIt6Ri+H+8W0YiC5ULc70c95 cJP1RnME04/TjLZjVKS2ww== 0000912057-01-006621.txt : 20010228 0000912057-01-006621.hdr.sgml : 20010228 ACCESSION NUMBER: 0000912057-01-006621 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD STOCK HLS FUND INC CENTRAL INDEX KEY: 0000045941 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 060941188 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02630 FILM NUMBER: 1553906 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2036838214 MAIL ADDRESS: STREET 1: 200 SIMSBURY CITY: HARTFORD STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HVA STOCK FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD FUND INC DATE OF NAME CHANGE: 19830202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD ADVISORS HLS FUND INC CENTRAL INDEX KEY: 0000714499 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 061078749 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03659 FILM NUMBER: 1553907 BUSINESS ADDRESS: STREET 1: P O B0X 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD ADVISORS FUND INC /CT/ DATE OF NAME CHANGE: 19940603 FORMER COMPANY: FORMER CONFORMED NAME: HVA ADVISERS FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MONEY MARKET HLS FUND INC CENTRAL INDEX KEY: 0000714500 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 061078658 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03662 FILM NUMBER: 1553908 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD BOND HLS FUND INC CENTRAL INDEX KEY: 0000714502 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 061078748 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03660 FILM NUMBER: 1553909 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD BOND DEBT SECURITIES FUND INC DATE OF NAME CHANGE: 19931102 FORMER COMPANY: FORMER CONFORMED NAME: HVA FIXED INCOME FUND INC DATE OF NAME CHANGE: 19881120 FORMER COMPANY: FORMER CONFORMED NAME: HVA BOND FUND INC DATE OF NAME CHANGE: 19830419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD CAPITAL APPRECIATION HLS FUND INC CENTRAL INDEX KEY: 0000741565 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 222481744 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04005 FILM NUMBER: 1553910 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD CAPITAL APPRECIATION FUND INC DATE OF NAME CHANGE: 19960423 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD AGGRESSIVE GROWTH FUND INC /CT/ DATE OF NAME CHANGE: 19940428 FORMER COMPANY: FORMER CONFORMED NAME: HVA AGGRESSIVE GROWTH FUND INC/MA/ DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MORTGAGE SECURITIES HLS FUND INC CENTRAL INDEX KEY: 0000756930 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04201 FILM NUMBER: 1553911 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFIRD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD GNMA MORTGAGE SECURITIES FUND INC DATE OF NAME CHANGE: 19931102 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD GNMA MORTGAGE FUND INC DATE OF NAME CHANGE: 19931013 FORMER COMPANY: FORMER CONFORMED NAME: HVA GNMA FUND INC DATE OF NAME CHANGE: 19870304 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INDEX HLS FUND INC CENTRAL INDEX KEY: 0000811086 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05045 FILM NUMBER: 1553912 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 0606089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INDEX FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND INC CENTRAL INDEX KEY: 0000861503 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06059 FILM NUMBER: 1553913 BUSINESS ADDRESS: STREET 1: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INTERNATIONAL OPPORTUNITIES FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD DIVIDEND & GROWTH HLS FUND INC CENTRAL INDEX KEY: 0000915770 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08186 FILM NUMBER: 1553914 BUSINESS ADDRESS: STREET 1: P.O. BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104 BUSINESS PHONE: 2038438984 MAIL ADDRESS: STREET 1: 200 HOPMEADOW ST CITY: SIMSBURY STATE: CT ZIP: 06089 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD DIVIDEND & GROWTH FUND INC DATE OF NAME CHANGE: 19931206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD INTERNATIONAL ADVISERS HLS FUND INC CENTRAL INDEX KEY: 0000931417 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 060974148 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08804 FILM NUMBER: 1553915 BUSINESS ADDRESS: STREET 1: C/O HARTFORD INSURANCE CO. STREET 2: 200 HOPMEADOW STREET CITY: SIMSBURY STATE: CT ZIP: 06104 BUSINESS PHONE: 2038438214 MAIL ADDRESS: STREET 1: C/O HARTFORD INSURANCE CO. STREET 2: 200 HOPMEADOW STREET CITY: SIMSBURY STATE: CT ZIP: 06104 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD INTERNATIONAL ADVISERS FUND INC DATE OF NAME CHANGE: 19950522 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD SMALL CO HLS FUND INC CENTRAL INDEX KEY: 0001006414 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07557 FILM NUMBER: 1553916 BUSINESS ADDRESS: STREET 1: ITT HARTFORD GROUP INC STREET 2: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06115 BUSINESS PHONE: 8008626668 MAIL ADDRESS: STREET 1: P O BOX 2999 STREET 2: ITT HARTFORD GROU INC CITY: HARTFORD STATE: CT ZIP: 06104-2999 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD MIDCAP HLS FUND INC CENTRAL INDEX KEY: 0001037716 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08185 FILM NUMBER: 1553917 BUSINESS ADDRESS: STREET 1: HARTFORD PLZ STREET 2: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 8605472883 MAIL ADDRESS: STREET 1: HARTFORD PLZ STREET 2: PO BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 FORMER COMPANY: FORMER CONFORMED NAME: HARTFORD MIDCAP FUND INC DATE OF NAME CHANGE: 19970414 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD SERIES FUND INC CENTRAL INDEX KEY: 0001053425 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08629 FILM NUMBER: 1553918 BUSINESS ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 BUSINESS PHONE: 8602976443 MAIL ADDRESS: STREET 1: P O BOX 2999 CITY: HARTFORD STATE: CT ZIP: 06104-2999 N-30D 1 a2036199zn-30d.txt N-30D [STAG ICON] HARTFORD LIFE ANNUAL REPORT DECEMBER 31, 2000 - - MANAGER DISCUSSIONS - - FINANCIALS HARTFORD GLOBAL HEALTH HLS FUND PORTFOLIO MANAGER JOSEPH H. SCHWARTZ, CFA Senior Vice President and Partner Wellington Management Company, LLP ANNE C. GALLO Vice President Wellington Management Company, LLP JEAN H. HYNES, CFA Senior Vice President and Partner Wellington Management Company, LLP KIRK J. MAYER Assistant Vice President Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Global Health HLS Fund returned 48.18% since inception for the period ending December 31, 2000. The Fund significantly outperformed its benchmark, Goldman Sachs Health Care Index, which returned 28.87% and also outperformed the Lipper Health & Biotechnology Average, which returned 30.1%, for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? During the year, strength was exhibited throughout all sub-sectors within health care and was one of the three best performing sectors in 2000. Good stock selection and positioning within the various sub-sectors of the industry were the primary contributors of performance. We maintained our overweight position with the medical device sub-sector due to significant benefits from a technological renaissance and favorable growth prospects. We also remained underweight within the pharmaceutical and biotechnology sub-sector based on continued valuation concerns. At the end of the year, we had increased our exposure within the global markets, reflecting our view that health care is a global growth sector, and that many strong investment opportunities exist worldwide. The top contributors to performance included IMMUNEX, LABORATORY CORPORATION OF AMERICA and AVENTIS. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? We remain optimistic about the future growth prospects for the global health care sector. Although health care stock valuations have meaningfully expanded during the past year, it is our belief that they are not excessive. Importantly, the imminent recovery of the Euro relative to the U.S. Dollar will likely reinforce near-term growth prospects and subsequently increase the probabilities of positive earnings surprise for U.S.-based health care companies. PERFORMANCE OVERVIEW 5/1/2000 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Global Health Fund IA $14,818 Goldman Sachs Health Care Index $12,887
RETURNS (Inception 5/1/00)
Cumulative Returns as of December 31, 2000 SINCE INCEPTION Global Health IA 48.18% Goldman Sachs Health Care Index 28.87%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD GLOBAL HEALTH HLS FUND. (THE CUMULATIVE 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 $14,800 ON 12/31/2000. 2 HARTFORD GLOBAL TECHNOLOGY HLS FUND PORTFOLIO MANAGER SCOTT E. SIMPSON Senior Vice President and Partner Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President and Partner Wellington Management Company, LLP BRUCE L. GLAZER Assistant Vice President Wellington Management Company, LLP PAUL D. JACKSON Assistant Vice President Wellington Management Company, LLP ERIC STROMQUIST Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Global Technology HLS Fund returned -37.37% since inception for the period ending December 31, 2000. The Fund outperformed its benchmark, the Goldman Sachs Technology Composite Index, which returned -41.98%. Q. WHY DID THE FUND PERFORM THIS WAY? The fundamental outlook weakened faster than expected resulting in technology stocks under-performing the broader market indices. Specifically, we continued to see signs that the ongoing economic slowdown combined with the demise of the dot.com's take a toll on demand for technology products and services. Sub-sector issues in areas such as wireless communications where compelling new data applications have yet to emerge have also exacerbated this general weakness. The combination of volatile technology markets and the launch of the Fund led to considerable trading activity during the year. Throughout the period, the team began to build positions in stocks that we believed were trading at attractive valuations. In particular, the team focused on finding over-sold stocks in high-growth sub-sectors such as communications and software. As a result, we ended the year with overweight positions in both the communications and software sub-sectors. We also built an overweight position in the service sub-sector, which is attractive due to its combination of value and predictability during such volatile times. The team has also opportunistically built positions in other sub-sectors including computer hardware and semiconductors, although both are underweight relative to the benchmark. Our largest contributors to performance for the year were 3COM, HANDSPRING and SABRE HOLDINGS. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? While we believe many stocks already reflect the current environment, earnings estimates remain too high for the sector. As a result, we remain concerned about the near-term despite improved valuations. Given this environment, we are very focused on constructing the portfolio on stock-by-stock basis. In particular, we continue to find attractively priced stocks in high-growth sub-sectors such as communications and software where slower growth appears to be more fully discounted. Our favorable long-term outlook is unwavering. However, we believe the days of simply buying a basket of technology stocks and earning strong absolute returns are behind us. As a result, stock selection is becoming increasingly important. As we are all analysts at heart, a shift from speculation towards a renewed focus on fundamental investment analysis plays to our strengths. We remain prepared and well positioned to take advantage of changes within the equity markets over the near- and the long-term. PERFORMANCE OVERVIEW 5/1/2000 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Global Tech Fund IA $6,263 Goldman Sachs Tech Index $5,802
Returns (Inception 5/1/2000) Cumulative Returns as of December 31, 2000
SINCE INCEPTION Global Tech IA (37.37%) Goldman Sachs Tech Index (41.98%)
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD GLOBAL TECHNOLOGY HLS FUND. (THE CUMULATIVE 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 $6,255 ON 12/31/2000. 3 HARTFORD SMALL COMPANY HLS FUND PORTFOLIO MANAGER [PICTURE OF STEVE ANGELI] STEVE ANGELI, CFA Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Small Company HLS Fund returned -13.12% for the year ended December 31, 2000, under-performing the Lipper Small Cap VA-UF Average, which provided a return of 0.24% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? It was an extremely volatile year for small company stocks, with the Russell 2000 Index in negative territory for the 12-month period (-3.02%). While we reduced the Fund's exposure to the technology sector during the early part of the year, we could not escape the market turmoil that ensued in the latter part of the second quarter. During the correction, we took advantage of cheaper valuations to increase or establish positions in fundamentally sound companies, and the Fund benefited from an overweight position in the energy sector resulting from a sustainable rise in oil and natural gas prices. Our underweight position in retail, relative to the Russell 2000, also was a benefit, as the Fed's rate increases had a damaging effect on consumer spending and retail stocks. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? We have prepared the portfolio for an economic slowdown of considerable size. A period of Fed easing will mitigate the economic downturn, but it may not be fast enough to stem the falling tide of consumer confidence in the small company arena. The portfolio is positioned to benefit from a period of declining interest rates with increased positions in retail and industrial companies that should benefit in this environment. Many of these stocks have already discounted an economic slowdown, and therefore should perform well when the rate cuts stimulate the economy. PERFORMANCE OVERVIEW 8/9/1996 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Small Company Fund IA $20,398 Russell 2000 $15,632
Returns Average Annual Returns as of December 31, 2000
1 YEAR SINCE INCEPTION Small Co. IA (13.12%) 17.60% Russell 2000 (3.02%) 10.69%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD SMALL COMPANY HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 8/9/1996 WOULD HAVE BEEN VALUED AT $20,237 ON 12/31/2000. 4 HARTFORD CAPITAL APPRECIATION HLS FUND PORTFOLIO MANAGER [PICTURE OF SAUL J. PANNELL] SAUL J. PANNELL, CFA Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? The Hartford Capital Appreciation HLS Fund returned 13.22% for the year ended December 31, 2000 significantly outperforming the -8.1% return for the Lipper Cap App VA- UF Average and exceeding the Composite Index, which returned -0.8% for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's outperformance resulted from strong stock selection though a diverse group of companies within several macroeconomic sectors: MAY DEPT STORES (Retail), WASTE MANAGEMENT (Utilities), PHILIP MORRIS (Food, Beverage & Tobacco), DOW CHEMICAL (Chemicals), CROSS TIMBERS OIL CO. (Energy). The Fund's worst performers were primarily in the technology sector and included VERISIGN, VEECO INSTRUMENTS, and EXODUS COMMUNICATIONS. Although we reduced our exposure to information technology as the year progressed, we took advantage of the good technology stocks that investors had thrown out during the sentiment change that engulfed technology. This sector continues to represent the largest absolute weight in the Fund. Energy, industrial and commercial, and consumer staples were increased during this period and we used the overall volatility in the market to upgrade the Fund's upside price potential. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? There are clear signs that the economy is slowing, which is likely to result in decreases in earnings expectations. However, the good news for the markets is that the combination of slower growth and lower inflation will allow the Federal Reserve to adopt a more accommodating monetary policy in the year ahead; we have already seen the beginning of the Federal Reserve's rate reductions. At this time, the Fund's strategy of "performance is where you find it" remains ever true. We hope to accomplish this through the Fund's dual faceted approach, which emphasizes smaller companies with dynamic earnings growth prospects and large-cap stocks where we typically see a catalyst for outperformance. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Capital Appreciation Fund IA $77,159 S&P 500 $49,978
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Cap App IA 13.22% 21.56% 22.67% S&P 500 (9.10%) 18.33% 17.46%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD CAPITAL APPRECIATION HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $75,783 ON 12/31/2000. 5 HARTFORD MIDCAP HLS FUND PORTFOLIO MANAGER [PICTURE OF PHILLIP H. PERELMUTER] PHILLIP H. PERELMUTER Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford MidCap HLS Fund returned 25.42% for the year ended December 31, 2000. The Fund's return far exceeded that of the Lipper MidCap VA-UF Average, which provided a return of 5.2%, and the S&P Midcap 400 Index, which returned 17.50%, over the same period. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's strong performance in 2000 can be attributed in part to our focus on growth companies with lower economic sensitivity or lower technology risk. The stock market increasingly put a premium on such names as the year progressed. In the latter half of the year, as the economy slowed, healthcare was our strongest sector. The Fund owned companies representing many different areas within the healthcare sector including hospital management, lab testing and medical equipment. For much of the year, the Fund maintained a lower overall exposure to technology than many of our competitors in the Lipper peer group. We received continued confirming evidence that several segments of the industry were seeing slower growth, including: Internet infrastructure, personal computers and wireless technology. This positioning was a significant factor in the Fund's outperformance. As of year-end, we do not have many significant bets versus the S&P Midcap 400 Index, because we do not see any areas of the market that appear significantly undervalued across the board. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? Going forward, we look for U.S. equity markets to stabilize early in the year. The Fed rate cycle has turned positive for stocks, and we expect the economy to undergo a soft landing in 2001. The growth areas of the market in which we invest should benefit as this scenario develops over the course of the year. PERFORMANCE OVERVIEW 7/15/1997 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] MidCap Fund IA $27,427 S&P 400 $15,941
Returns Average Annual Returns as of December 31, 2000
1 YEAR SINCE INCEPTION MidCap IA 25.42% 33.76% S&P 400 17.50% 14.39%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD MIDCAP HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 7/15/1997 WOULD HAVE BEEN VALUED AT $27,257 ON 12/31/2000. 6 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND PORTFOLIO MANAGER [PICTURE OF TROND SKRAMSTAD] TROND SKRAMSTAD Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford International Opportunities HLS Fund returned -17.10% for the year ended December 31, 2000. The Fund trailed its benchmark, the MSCI EAFE GDP Net Index, which returned -15.53% as well as the Lipper International VA-UF Average, which returned -14.7% over the period. Q. WHY DID THE FUND PERFORM THIS WAY? The global economy has clearly slowed over the last 12 months. The effect of higher energy prices, coordinated central bank interest rate increases over the last 18 months, a slowdown in technology investment and the end of the "TMT" (technology, media, telecommunications) bubble has filtered through the global economy. The result has been a slowdown in GDP growth, lower consumer confidence and sharply lower industrial production. During 2000, we steadily increased our positions within the U.K.. We expect the U.K. to do well near-term as a result of a combination of modest inflation, expected interest rate cuts by the Bank of England and a likely fiscal policy stimulus. The Fund's largest overweight sector was the information and entertainment sector, which includes media and entertainment products. We are focused on broadcasters and more traditional publishing companies that are less heavily dependent on cyclical advertising revenue. The Fund's largest sector underweight was Finance, where we are wary of potential dual impacts that a slowing economy could have on tighter credit issues and the falling equity markets could have on capital market activities. Top contributors to performance for the year included AVENTIS, MANNESMANN, and CHINADOTCOM. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? Our base case is that growth will bottom out during the second half of 2001 and then rebound late in the year as U.S. and global interest rate cuts begin to stimulate the global economy. One of the risks to this forecast lies in estimating the extent and impact of slower technology spending, continued high energy prices, the effect of increased consumer saving to offset equity market losses and looming financial problems within the equity markets. While we maintained a relatively defensive position within the Fund into year-end, we have started to build our exposure in sectors and markets that stand to particularly benefit from the eventual growth recovery that should follow as central banks cut interest rates to combat the slowdown. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] International Opportunities IA $23,986 MSCI EAFE GDP* $25,556
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Int'l. Opp. IA (17.10%) 8.25% 9.14% MSCI EAFE GDP* (15.53%) 9.80% 9.84%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $23,558 ON 12/31/2000. * THE MORGAN STANLEY EUROPE AUSTRALIA FAR EAST GDP-NET INDEX. 7 HARTFORD GLOBAL LEADERS HLS FUND PORTFOLIO MANAGERS [PICTURE OF RAND L. ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP [PICTURE OF ANDREW S. OFFIT] ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Global Leaders HLS Fund returned -7.06% for the year ended December 31, 2000 outperforming the -9.9% return of the Lipper Global VA - UF Average over the same time period. Since inception, the Fund has returned 31.15% versus a return of 20.4% for its Lipper peer group. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's overall performance for 2000 was well above average, outperforming the Lipper Global Average by 280 basis points and the MSCI World Index by over 580 basis points. Throughout this period, the Fund's outperformance resulted from its continued focus on its themes and sector strategies, and its emphasis on growth in both sectors and individual companies. The health care sector was the greatest contributor to outperformance and was enhanced further due to strong selection within the sector. Technology as represented by the information & entertainment and information technology sectors, continues to represent the largest absolute weight in the Fund. Although these sectors have extreme volatility and higher valuations, they also represent some of the best growth prospects in the world. Strong stock selection within the industrial and commercial sectors also helped performance. The Fund's best performers included WASTE MANAGEMENT, PHILIP MORRIS, BRITISH AIRWAYS, ALCOA, and BURLINGTON RESOURCES; the worst performers were mainly in the technology sector and included SOFTBANK CORP, PSION PLC and ARIBA CORP. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? The market environment continues to be both interesting and challenging for global investors. While volatility can cause periods of dislocation, overall this is good news for the Hartford Global Leaders portfolio. By their very nature, global leaders have superior products, market share and management, making them desirable investments, especially in turbulent times. We continue to remain committed to our research and sector strategy by investing in what we believe to be the best companies, regardless of where they are located. PERFORMANCE OVERVIEW 10/1/1998 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Global Leaders IA $18,429 MSCI World $13,141
Returns Average Annual Returns as of December 31, 2000
1 YEAR SINCE INCEPTION Global Leaders IA (7.06%) 31.15% MSCI World (13.18%) 12.89%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD GLOBAL LEADERS HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 10/1/1998 WOULD HAVE BEEN VALUED AT $18,355 ON 12/31/2000. 8 HARTFORD STOCK HLS FUND PORTFOLIO MANAGER [PICTURE OF RAND L ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? The Hartford Stock HLS Fund returned -7.04% for the 1-Year period ending December 31, 2000. The Fund outperformed its benchmark, the S&P 500 Index, which returned -9.10%, and the Lipper Growth VA - UF Average, which returned -9.2% for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? The fund's overweight position in the healthcare sector combined with strong stock selection contributed most significantly to the Fund's performance. Two of the strongest performers were BRISTOL MYERS SQUIBB and MERCK. Strong stock selection within consumer discretionary sector also helped performance as SAFEWAY and CVS CORPORATION were strong performers. Performance was also enhanced through our increased exposure to financials, consumer staples, and electric utilities which we began adding to as we reduced technology during the first half of the year. Relative to the S&P 500 Index, the Fund continues to be overweight in health care and consumer staples and underweight in information technology and utilities. We paid a steep price for building and maintaining positions in a number of telecommunications and media companies like AOL and WORLDCOM, but we believe that their valuations are attractive at current levels. The Fund's best performing holdings also included DOW CHEMICAL and ALCOA, the worst performers included JDS UNIPHASE, LUCENT TECHNOLOGIES and GLOBAL CROSSING. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? Looking forward, in spite of poor results or large-cap equity investors, we remain cautiously optimistic. Although recession worries are likely to become more pronounced in early 2001, it is expected that the combination of lower oil prices, falling interest rates and more stable financial markets will be sufficient to keep the economy moving ahead, albeit at a slower pace. We will continue to invest somewhat defensively by maintaining overweight positions in health care, consumer staples, and energy while looking for opportunities in telecommunications, technology, and media. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Stock Fund IA $50,096 S&P 500 $49,978
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Stock IA (7.04%) 19.41% 17.48% S&P 500 (9.10%) 18.33% 17.46%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD STOCK HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $49,204 ON 12/31/2000. 9 HARTFORD GROWTH AND INCOME HLS FUND PORTFOLIO MANAGER [PICTURE OF JAMES A. RULLO] JAMES A. RULLO, CFA Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Growth and Income HLS Fund returned -5.64% for the year ended December 31, 2000. The return of the Lipper Growth & Income VA-UF Average over the same time period was 1.3%. Q. WHY DID THE FUND PERFORM THIS WAY? Strong performance from many of Fund's pharmaceutical and health service holdings was a benefit in 2000, particularly toward the end of the year. The Fund's holdings in the technology sector contributed strongly to performance in the first half of the year, but became a source of under-performance toward year-end. While the Fund underperformed the Lipper Growth & Income VA-UF average, it outperformed the S&P 500 Index by a wide margin, (the S&P 500 provided a total return of -9.10% for the year 2000). This outperformance resulted largely from active stock selection versus the index. The Fund's sector weights are kept largely in line with those of the index as part of the Fund's disciplined approach. We believe that outperforming the S&P 500 will support favorable performance comparisons versus the Fund's Lipper peer group over longer time periods, and we continue to pursue this objective. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? A combination of slower economic growth and low inflation will allow the Fed to continue with its accommodating stance and provide additional short-term rate cuts. This bolsters our belief that a soft landing is likely for the U.S. economy, with a pickup in growth toward the end of the year. We expect continued growth of profits for the companies that make up the S&P 500, though this growth will occur at a slower pace than in recent years. PERFORMANCE OVERVIEW 5/29/1998 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Growth and Income Fund IA $13,684 S&P 500 $12,503
Returns Average Annual Returns as of December 31, 2000
1 YEAR SINCE INCEPTION Growth and Income IA (5.64%) 12.85% S&P 500 (9.10%) 8.99%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD GROWTH AND INCOME HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 5/29/1998 WOULD HAVE BEEN VALUED AT $13,621 ON 12/31/2000. 10 HARTFORD DIVIDEND AND GROWTH HLS FUND PORTFOLIO MANAGER [PICTURE OF LAURIE A. GABRIEL] LAURIE A. GABRIEL, CFA Senior Vice President and Managing Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Dividend and Growth HLS Fund returned 10.95% for the year ended December 31, 2000. The Fund significantly outperformed its benchmark, the S&P 500 Index, which returned -9.10%, as well as the Lipper Equity Income VA-UF Average, which returned 6.7% over this period. Q. WHY DID THE FUND PERFORM THIS WAY? In keeping with our dividend-oriented investment style, we remained underweight in the information technology sector, which was hit hard last year due to a slowing U.S. economy, corporate earnings pressures and a succession of interest rate increases by the Federal Reserve. Our information technology underweight combined with good stock selection, was our greatest contributor to performance over the year. Throughout the year, finance and utilities were the largest two sectors within the Fund, as these sectors are typically considered defensive sectors and perform well during these economic conditions. Tobacco stocks were strong across the board throughout the year as this industry benefited from increased investor focus on companies with accelerating earnings, attractive dividends, and President Bush's election is thought to increase the probability of more favorable litigation. Top contributors to performance over the year included CORNING, WASHINGTON MUTUAL and MERRILL LYNCH. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? We will continue to remain defensive and maintain our investment strategy given the current economic environment. With a likely decline in U.S. interest rates in 2001, suggesting future strength within the U.S. economy, we will invest according to our style and seek opportunities throughout the sectors of the market. The utilities sector, specifically, will likely remain a large overweight relative to our benchmark as we continue to see good long-term investment opportunities within the sector. Overall, we continue to remain positive about the U.S. equity market and the economy over the long-term. PERFORMANCE OVERVIEW 3/9/1994 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Dividend and Growth Fund IA $30,661 S&P 500 $32,114
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR SINCE INCEPTION Div. and Grow. IA 10.95% 17.13% 17.86% S&P 500 (9.10%) 18.33% 18.66%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD DIVIDEND AND GROWTH HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 3/9/1994 WOULD HAVE BEEN VALUED AT $30,288 ON 12/31/2000. 11 HARTFORD INTERNATIONAL ADVISERS HLS FUND PORTFOLIO MANAGERS [PICTURE OF ROBERT EVANS] ROBERT EVANS Senior Vice President and Partner Wellington Management Company, LLP [PICTURE OF TROND SKRAMSTAD] TROND SKRAMSTAD Senior Vice President and Partner Wellington Management Company, LLP Q. HOW DID THE FUND PERFORM? Hartford International Advisers HLS Fund returned -6.63% for the year ended December 31, 2000 versus a return of -5.1% for the Fund's Composite Index (55% MSCI EAFE, 35% SB Non-U.S. World Gov't Bond - hedged, and 10% T-Bill) over the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? Global equity markets experienced a volatile year, with the MSCI World Index (in U.S. dollars) providing a total return of -12.9%. The relative outperformance of the Fund versus this all-equity index year can be attributed to the significant position in fixed income securities maintained by the Fund throughout the year. As of year-end, the Fund held 38% of its assets in bonds, 56% in stocks and 6% in cash. Within the fixed income portion of the Fund, the majority of the securities consisted of high quality sovereign debt, hedged to the U.S. dollar. These securities generally performed well during the year, with the SB World Gov't Bond (non-U.S. dollars) Index providing a return of 2.63%. The equities in the Fund consist of primarily large capitalization names operating in established markets, also a benefit during the year, as emerging markets provided a negative total return of -30.6%. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? The world economy will likely slow in 2001, led by the slowdown already underway in the U.S. Despite our confidence that no major economy will fall into recession, the overall slowdown in growth will be a source of anxiety for global financial markets. That being said, the combined effects of easing monetary policy, lower oil prices, less inflation and the structural health of Europe will likely enable a soft landings in many major economies, while the pressures associated with central bank short-term interest rate hikes are now behind us. PERFORMANCE OVERVIEW 3/1/1995 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] International Advisers Fund IA $17,812 EAFE GDP $18,233 Salomon World Government Bond ex-U.S. Index $12,344
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR SINCE INCEPTION Int'l Advisers IA (6.63%) 8.99% 10.39% MSCI EAFE GDP (15.53%) 9.80% 10.83% Salomon World Govt. Bond (2.63%) 1.64% 3.67%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD INTERNATIONAL ADVISERS HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 3/1/1995 WOULD HAVE BEEN VALUED AT $17,626 ON 12/31/2000. 12 HARTFORD ADVISERS HLS FUND PORTFOLIO MANAGERS [PICTURE OF RAND L. ALEXANDER] RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP [PICTURE OF PAUL D. KAPLAN] PAUL D. KAPLAN Senior Vice President and Partner Wellington Managment Company, LLP Q. HOW DID THE FUND PERFORM? Hartford Advisers HLS Fund returned -0.75% for the year ended December 31, 2000. The Fund's return slightly underperformed the -0.4% return for the Composite Index and the 0.7% return for the Lipper Flexible VA - UF Average for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? Within the equity portion of the fund, the fund's overweight position in the healthcare sector combined with strong stock selection contributed most significantly to the Fund's performance. Two of the strongest performers were BRISTOL MYERS SQUIBB and MERCK. Strong stock selection within consumer discretionary sector also helped performance as SAFEWAY and CVS CORPORATION were strong. Performance was also enhanced through our increased exposure to financials, consumer staples, and electric utilities which we began adding to the portfolio as we reduced technology during the first half of the year. The Fund's best performing holdings also included DOW CHEMICAL and ALCOA, the worst performers included JDS UNIPHASE, LUCENT TECHNOLOGIES and GLOBAL CROSSING. In a year when the S&P 500 was down -9.1%, the Fund's allocation to bonds (36% as of December 31, 2000) offered some downside protection, in light of the extreme short-term volatility experienced by the equity market. The performance of the fixed income portion of the Fund benefited from a slightly longer duration than the benchmark. Mortgage backed securities offered better performance than corporate bonds, though by late in the year, the general decline in interest rates had again produced the specter of a period of mortgage refinancing, the bane of the mortgage sector. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? Looking forward, in spite of poor results for large-cap equity investors, we remain cautiously optimistic. Although recession worries are likely to become more pronounced in early 2001, it is expected that the combination of lower oil prices, falling interest rates and more stable financial markets will be sufficient to keep the economy moving ahead, albeit at a slower pace. We will continue to invest somewhat defensively by maintaining overweight positions in healthcare, consumer staples, and energy while looking for opportunities in telecommunications, technology, and media. Bond market conditions remain unique in the context of the past thirty years. Low inflation, a Treasury budget surplus, shrinking Treasury security supply, and poor liquidity in the corporate bond market all combine to produce an environment which investors have never seen before. Given the slowing in the U.S. economy and the Federal Reserve lowering short rates, we expect the interest rate environment to be benign, with stable to lower yields. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Advisers Fund IA $36,282 S&P 500 $49,978 Lehman Govt./Corp. $21,598
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Advisers IA (0.75%) 14.71% 13.75% S&P 500 (9.10%) 18.33% 17.46% Lehman Govt./Corp. 11.85% 6.24% 8.00%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD ADVISERS HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $35,635 ON 12/31/2000. 13 HARTFORD HIGH YIELD HLS FUND PORTFOLIO MANAGER [PICTURE OF ALISON D. GRANGER] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company Q. HOW DID THE FUND PERFORM? Hartford High Yield HLS Fund placed in the 8th percentile of its Lipper peer group for the year ended December, 2000, producing a total return of 1.03% versus the -7.03% return of the Lipper Variable Annuity High Yield Fixed Income Fund average. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's significant overweight in BB-rated securities was a significant contributor to the Fund's performance. Given the environment of rising defaults and decreasing liquidity, higher quality BB securities returned 4.05% while their single B counterparts returned -9.18%. Secondly, the Fund's overweight in both the energy and healthcare sectors also positively impacted returns. These two sectors provided some of the markets highest returns, as the fundamentals improved dramatically in both. Regarding the energy sector, the above-average price of oil has led to ratings increases for many of the smaller oil credits in the Fund. With respect to the healthcare sector, rising admissions trends and some Congressional relief has led to solid improvements in cash flows and revenues. A final positive has been the Fund's underweight to the telecom sector throughout the year. This sector posted a dismal return, battered by liquidity concerns and poor financial results. As prices dropped dramatically, we began to selectively increase our exposure to those issuers that we feel have the proven business plans and are well funded. The Fund's underweight in the gaming sector was a negative for the performance during the year as these issuers proved resilient to the rate tightening environment and related fears of slowing economic growth. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? The high yield market remains disjointed. Those issuers with unproven business plans and imminent financing needs continue to suffer, while more solid credits are beginning to rebound, aided by the Fed's most recent 50 basis point rate cut. While the Fed may cut rates further, we don't believe such action will benefit those more troubled credits as bank and public lending standards continue to tighten. Therefore, we remain very selective with respect to adding lower quality securities (mainly in the telecom, technology and media sectors) but will do so cautiously upon analysts' recommendations. Also, we believe that the treasury market has already significantly discounted future potential Fed eases and is at risk of trading lower. Therefore, we intend to reduce exposure to treasury sensitive securities in the Fund. For the near term, we intend to maintain our overweight positions in healthcare and energy as the credit trends remain stable to positive in both, and we expect these sectors to outperform in an economic downturn. Finally, we will add opportunistically to issuers that stand to benefit from any weakness in the dollar and those that benefit from strength in the Euro. We began to selectively add European issuers last year in efforts to diversify away from the U.S. market, and continue to believe that this will benefit the Fund for the foreseeable future. PERFORMANCE OVERVIEW 10/1/1998 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] High Yield Fund IA $10,968 Lehman High Yield $9,844
Returns Average Annual Returns as of December 31, 2000
1 YEAR SINCE INCEPTION High Yield IA 1.03% 4.18% Lehman High Yield (5.86%) (0.70%)
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD HIGH YIELD HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES AT THE FUND'S INCEPTION OF 10/1/1998 WOULD HAVE BEEN VALUED AT $10,924 ON 12/31/2000. 14 HARTFORD BOND HLS FUND PORTFOLIO MANAGER [PICTURE OF ALISON D. GRANGER] ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company Q. HOW DID THE FUND PERFORM? The Hartford Bond HLS Fund placed in the 10th percentile of its Lipper peer group for the year ended December 31, 2000, producing a total return of 11.99% versus the 9.36% return of the Lipper Corporate Debt "BBB" rated Universe. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's relatively high allocation throughout the year to U.S. Treasury issues contributed to its out-performance as Treasury yields fell in anticipation of a weakening economy and in response to the reduction in outstanding supply due to Treasury buyback activity. The Fund's increased allocation to mortgage passthroughs and coincident reduction in corporate bond holdings also contributed positively to performance. Mortgage securities were viewed as a safe haven as the impact of widespread credit deterioration was reflected in corporate bond prices. The Fund's establishment in May of a position in Euro-denominated securities proved premature and dampened its out-performance, as dollar strength relative to many major foreign currencies continued until November. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? For the first year since 1980, the broad fixed income market outperformed the major equity indices in 2000. As we enter 2001, there is much discussion about the slowing U.S. economy and how quickly the Federal Reserve will respond by lowering interest rates. Already forecasters are lowering first quarter GDP expectations to 2%, and the markets have anticipated three occurrences of Fed easing at 25 basis points each by midyear. Mounting evidence suggests the current decline appears to be mainly the result of excess capacity in markets ranging from technology to retail, and it is our view that until these excesses are corrected it is likely that growth could be less than the consensus expects. Under these conditions, Fed easing (even early in the year) will probably have little stimulative effect in the short run. The Fed's job is further complicated by a strong, but recently weakening dollar coupled with a historically-high current account deficit relative to GDP. The Fund's positioning as we enter 2001 includes a shorter duration than our benchmark index, as we believe that Treasury market pricing has fully anticipated the Fed's potential to ease. We have reduced our exposure to the mortgage market to an underweight due to the potential for prepayment activity to increase soon. We are gradually increasing the Fund's weighting to investment grade corporate issues, as we believe that valuations for select issues already reflect a hard-landing economic scenario. We are emphasizing the energy, healthcare, defense, and food industries. And finally, we have invested a small portion of Fund assets in non-dollar-denominated issues which provide for diversification and appreciation potential should the dollar weaken further. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Bond IA $21,097 Lehman Govt./Corp. $21,598
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Bond IA 11.99% 6.47% 7.75% Lehman Govt./Corp. 11.85% 6.24% 8.00%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD BOND HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $20,721 ON 12/31/2000. 15 HARTFORD MORTGAGE SECURITIES HLS FUND PORTFOLIO MANAGER [PICTURE OF PETER PERROTTI] PETER PERROTTI Vice President Hartford Investment Management Company (HIMCO) Q. HOW DID THE FUND PERFORM? Hartford Mortgage Securities HLS Fund posted a 10.28% return for the year ended December 31, 2000, versus the 10.74% return for the Lipper U.S. Mortgage Variable Annuity Underlying Fund Universe. Q. WHY DID THE FUND PERFORM THIS WAY? There were many forces at play in the fixed income market during 2000, like the Treasury buyback and the Federal Reserve raising short-term rates by 100 basis points. However, the predominant factor impacting the mortgage market was the presence of a significant number of crossover buyers. With the widespread concern of credit risk, many fixed income managers sold other asset classes and invested in mortgage backed securities. These buyers tend to buy the less prepayment sensitive securities, and therefore, created a strong bid for the discount securities. Even adjusting for duration differences, the discount securities significantly outperformed the premium securities. The Fund's performance was hindered by the overweight in the higher coupon mortgages. Another event that drew the attention of mortgage investors throughout the year was the increased congressional scrutiny of Fannie Mae and Freddie Mac. The Agencies are government sponsored entities created by an act of Congress. The year saw much discussion about the extent the private shareholders were profiting from the implicit guarantee by the U.S. Government, and opinions from Congress, the administration, and even Federal Reserve Chairman Greenspan were news throughout the year. In comparable coupons, Ginnie Mae securities, which carry the full faith and credit of the Government, outperformed the Fannie Mae and Freddie Mac Securities. Q. WHAT IS YOUR OUTLOOK FOR THE YEAR 2001? The fixed income market enters the new year debating not if the economy will slow, but rather how far and fast it will slow. The term "hard landing" has become common place in economic outlooks, with forecasts of 2% and lower GDP. The market is anticipating the Federal Reserve to be aggressive at easing short-term rates. Mortgages are starting off the new year at a much riskier position than they did in 2000. The mortgage rate is almost a full percentage point lower than it began the previous year, and refinancing activity has begun to pick up. With much of the market slightly in the money, any further rally would cause a significant pickup in refinancing. This will provide a ceiling on how much further mortgage prices can appreciate. Although the refinancing risk is significantly higher, the more callable securities continue to provide the better risk-adjusted return. The Fund's positioning as we enter 2001 includes an overweight in the higher securities. We have created a prepayment barbell, but are increasing our exposure to non-callable securities, like Fannie Mae debentures and U.S. Treasury debt, including Inflation Indexed Securities. PERFORMANCE OVERVIEW 12/31/1990 - 12/31/2000 GROWTH OF A $10,000 INVESTMENT. [CHART] Mortgage Securities Fund IA $19,967 Lehman Mortgage Backed Securities $21,228
Returns Average Annual Returns as of December 31, 2000
1 YEAR 5 YEAR 10 YEAR Mort. Sec. IA 10.28% 6.48% 7.16% Lehman Mort. 11.16% 6.91% 7.82%
THE CHART REPRESENTS A HYPOTHETICAL INVESTMENT IN THE HARTFORD MORTGAGE SECURITIES HLS FUND. (THE ANNUALIZED RETURNS INCLUDE THE FUND LEVEL EXPENSES, BUT EXCLUDE THE INSURANCE CHARGES). PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE VALUE OF THE CONTRACT WILL FLUCTUATE SO THAT WHEN REDEEMED, IT MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. A $10,000 INVESTMENT IN THE CLASS IB SHARES SINCE 12/31/1990 WOULD HAVE BEEN VALUED AT $19,611 ON 12/31/2000. 16 Table of Contents - --------------------------------------------------------------------------------
PAGE ----- Manager Discussions............................... 2 Hartford HLS Mutual Funds Financial Statements: Statement of Net Assets or Statement of Assets and Liabilities as of December 31, 2000: Hartford Global Health HLS Fund............... 17 Hartford Global Technology HLS Fund........... 19 Hartford Small Company HLS Fund, Inc.......... 20 Hartford Capital Appreciation HLS Fund, Inc.................................... 22 Hartford MidCap HLS Fund, Inc................. 24 Hartford International Opportunities HLS Fund, Inc.................................... 26 Hartford Global Leaders HLS Fund.............. 30 Hartford Stock HLS Fund, Inc.................. 32 Hartford Growth and Income HLS Fund........... 34 Hartford Dividend and Growth HLS Fund, Inc.................................... 36 Hartford Index HLS Fund, Inc.................. 38 Hartford International Advisers HLS Fund, Inc.................................... 44 Hartford Advisers HLS Fund, Inc............... 51 Hartford High Yield HLS Fund.................. 56 Hartford Bond HLS Fund, Inc................... 60 Hartford Mortgage Securities HLS Fund, Inc.................................... 63 Hartford Money Market HLS Fund, Inc........... 65 Statements of Operations for Period Ended December 31, 2000.............................. 68 Statements of Changes in Net Assets for Period Ended December 31, 2000........................ 72 Statements of Changes in Net Assets for the Year Ended December 31, 1999........................ 76 Notes to Financial Statements..................... 80 Financial Highlights.............................. 98 Report of Independent Public Accountants.......... 104 Tax Information Notice............................ 105 Privacy Policy.................................... 106
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 Account. 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 HEALTH HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- --------- COMMON STOCKS -- 96.2% CHEMICALS -- 11.7% +67 Aventis S.A., ADR....................... $ 5,611 162 Pharmacia Corp.......................... 9,888 -------- 15,499 -------- CONSUMER NON-DURABLES -- 5.2% 28 Cardinal Health, Inc.................... 2,809 115 McKesson HBOC, Inc...................... 4,117 -------- 6,926 -------- DRUGS -- 49.5% 122 Abbott Laboratories..................... 5,885 *+24 Alkermes, Inc........................... 753 129 American Home Products Corp............. 8,179 +137 AstraZeneca Group PLC, ADR.............. 7,050 45 Banyu Pharmaseutical Co., Ltd........... 1,019 *+91 BioChem Pharma, Inc..................... 2,922 38 Eisai Co., Ltd.......................... 1,331 58 Eli Lilly & Co.......................... 5,370 *18 Forest Laboratories, Inc................ 2,352 27 Fujisawa Pharmaceutical Co., Ltd........ 894 *+30 Genzyme Corp............................ 2,698 *+13 Gilead Sciences, Inc.................... 1,078 111 GlaxoSmithKline PLC, ADR................ 6,193 *83 Immunex Corp............................ 3,352 *+14 Medicines Co. (The)..................... 289 48 Mylan Laboritories...................... 1,196 +57 Nycomed Amersham PLC, ADR............... 2,356 *+67 Regeneron Pharmacy, Inc................. 2,366 *+31 SangStat Medical Corp................... 363 87 Schering-Plough Corp.................... 4,915 2 Serono S.A., Class B.................... 1,644 *+18 Syngenta AG, ADR........................ 202 24 Takeda Chemical Industries Ltd.......... 1,421 71 Tanabe Seiyaku Co., Ltd................. 597 *61 Triangle Pharmaceuticals, Inc........... 303 *+73 Versicor, Inc........................... 625 *+33 ViroPharma, Inc......................... 478 -------- 65,831 -------- ELECTRICAL EQUIPMENT -- 1.3% *58 Thermo Electron Corp.................... 1,737 -------- FINANCIAL SERVICES -- 0.5% 5 CIGNA Corp.............................. 609 -------- HEALTH SERVICES -- 6.7% *+13 Advance Paradigm, Inc................... 601 *40 Beverly Enterprises, Inc................ 324 *+25 Caremark Rx, Inc........................ 336 *+54 Connectics Corp......................... 245 *+79 Exelixis, Inc........................... 1,155 37 HCA - The Healthcare Co................. 1,633 *+42 Health Net, Inc......................... 1,100 MARKET SHARES VALUE - --------- ---------
HEALTH SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- --------- *21 Immunomedics, Inc....................... $ 458 21 King Pharmaceuticals, Inc............... 1,060 *44 Tenet Healthcare Corp................... 1,969 -------- 8,881 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 15.1% 52 Bard (C.R.), Inc........................ 2,431 39 Bausch & Lomb, Inc...................... 1,561 37 Baxter International, Inc............... 3,303 77 Beckman Coulter, Inc.................... 3,221 83 Becton, Dickinson & Co.................. 2,884 31 Biomet, Inc............................. 1,212 322 Gambro AB, Class B...................... 2,303 213 Smith & Nephew PLC...................... 999 *+35 St. Jude Medical, Inc................... 2,132 -------- 20,046 -------- RESEARCH & TESTING FACILITIES -- 4.1% *75 Argonaut Technologies, Inc.............. 638 *+13 CV Therapeutics, Inc.................... 891 *+70 Discovery Partners International........ 851 *+88 Gene Logic, Inc......................... 1,617 +55 Monsanto Co............................. 1,478 -------- 5,475 -------- SOFTWARE & SERVICES -- 2.1% +104 IMS Health, Inc......................... 2,808 -------- Total common stocks..................... $127,812 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.8% REPURCHASE AGREEMENT $5,026 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01.......... $ 5,026 -------- Total short-term securities............. $ 5,026 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $110,958)..... 96.2% $127,812 Total short-term securities (cost $5,026).......................... 3.8 5,026 ----- -------- Total investment in securities (total cost $115,984)......................... 100.0 132,838 Cash, receivables and other assets...... 1.5 1,969 Securities lending collateral (See Note 2(i))........................ 20.6 27,379 Payable for securities purchased........ (1.5) (1,926) Securities lending collateral payable to brokers (See Note 2(i))................ (20.6) (27,379) Other liabilities....................... (0.0) (1) ----- -------- Net assets.............................. 100.0% $132,880 ===== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 17 ______________________________________ HARTFORD GLOBAL HEALTH HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 92,143 shares outstanding......... $ 92
MARKET VALUE -------- Capital surplus........................................ 116,231 Distribution in excess of net investment income........ (2) Distribution in excess of net realized gain on investments.......................................... (295) Unrealized appreciation of investments................. 16,854 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))w........................... 1 Unrealized depreciation of other assets and liabilities in foreign currencies................................ (1) -------- Net assets............................................. $132,880 ========
Class IA Net asset value per share ($123,533 DIVIDED BY 85,656 shares outstanding) (600,000 shares authorized)....... $1.44 ===== Class IB Net asset value per share ($9,347 DIVIDED BY 6,487 shares outstanding) (200,000 shares authorized)....... $1.44 ===== * Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)).
WFORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2000 CONTRACT DELIVERY UNREALIZED DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION - --------------------- --- --- -------- -- Swedish Krona (Buy) $65 $64 01/02/01 $1 ==
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 18 ______________________________________ HARTFORD GLOBAL TECHNOLOGY HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 97.6% COMMUNICATIONS -- 19.8% *+29 CIENA Corp.............................. $ 2,356 *+94 Exodus Communications, Inc.............. 1,882 *66 Finisar Corp............................ 1,900 *+17 Juniper Networks, Inc................... 2,093 *40 Research in Motion Ltd.................. 3,200 *+8 SDL, Inc................................ 1,126 *+120 Sonus Networks, Inc..................... 3,035 ------- 15,592 ------- COMPUTERS & OFFICE EQUIPMENT -- 21.0% *168 Cisco Systems, Inc...................... 6,414 *120 Dell Computer Corp...................... 2,086 *19 Handspring, Inc......................... 724 51 Hewlett-Packard Co...................... 1,619 56 International Business Machines Corp.... 4,735 *22 Redback Networks, Inc................... 906 ------- 16,484 ------- CONSUMER DURABLES -- 2.1% 32 Corning, Inc............................ 1,674 ------- ELECTRICAL EQUIPMENT -- 2.5% *41 Credence Systems Corp................... 932 *28 Teradyne, Inc........................... 1,058 ------- 1,990 ------- ELECTRONICS -- 7.2% 76 Intel Corp.............................. 2,285 *63 Micron Technology, Inc.................. 2,237 *+109 OmniVision Technologies, Inc............ 353 *94 United Microelectronics Corp., ADR...... 779 ------- 5,654 ------- MACHINERY -- 1.6% *+49 Ultratech Stepper, Inc.................. 1,263 ------- SOFTWARE & SERVICES -- 40.7% *35 Agile Software Corp..................... 1,713 *20 America Online, Inc..................... 699 *115 Ceridan Corp............................ 2,287 *16 E.piphany, Inc.......................... 863 7 Electronic Data Systems Corp............ 416 39 First Data Corp......................... 2,034 *27 i2 Technologies, Inc.................... 1,463 *47 Macromedia, Inc......................... 2,849 *134 Microsoft Corp.......................... 5,791 *35 Oracle Corp............................. 1,023 *+173 Quantum Hard Disk Drive Corp............ 1,381 *94 Rational Software Corp.................. 3,641 *41 SunGard Data Systems, Inc............... 1,937 *36 VeriSign, Inc........................... 2,642 *64 Verity, Inc............................. 1,538 MARKET SHARES VALUE - --------- --------
SOFTWARE & SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- -------- *90 Vignette Corp........................... $ 1,620 ------- 31,897 ------- TRANSPORTATION -- 2.7% *+50 Sabre Group Corp........................ 2,152 ------- Total common stocks..................... $76,706 ======= PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 3.9% REPURCHASE AGREEMENT $3,079 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 3,079 ------- Total short-term securities............. $ 3,079 =======
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $102,254)..... 97.6% $76,706 Total short-term securities (cost $3,079).......................... 3.9 3,079 ----- ------- Total investment in securities (total cost $105,333)......................... 101.5 79,785 Cash, receivables and other assets...... 1.0 803 Securities lending collateral (See Note 2(i))............................. 9.8 7,740 Payable for securities purchased........ (2.4) (1,880) Payable for Fund shares redeemed........ (0.1) (87) Securities lending collateral payable to brokers (See Note 2(i))................ (9.8) (7,740) Other liabilities....................... (0.0) (5) ----- ------- Net assets.............................. 100.0% $78,616 ===== =======
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 123,422 shares outstanding.... $ 123 Capital surplus................................... 116,744 Distribution in excess of net realized gain on investments...................................... (12,703) Unrealized depreciation of investments............ (25,548) ------- Net assets........................................ $78,616 =======
Class IA Net asset value per share ($71,276 DIVIDED BY 111,886 shares outstanding) (600,000 shares authorized)...................................... $0.64 ===== Class IB Net asset value per share ($7,340 DIVIDED BY 11,536 shares outstanding) (200,000 shares authorized)...................................... $0.64 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 19 ______________________________________ HARTFORD SMALL COMPANY HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 92.1% BUSINESS SERVICES -- 7.3% *+268 Critical Path, Inc...................... $ 8,235 *+78 I-many, Inc............................. 971 *+935 Iron Mountain, Inc...................... 34,704 +672 Manpower, Inc........................... 25,536 *+13 StorageNetworks, Inc.................... 325 -------- 69,771 -------- COMMUNICATIONS -- 3.3% *+21 CacheFlow, Inc.......................... 362 *305 DMC Stratex Networks.................... 4,568 *+297 Natural MicroSystems Corp............... 2,932 *186 SBA Communications, Inc................. 7,642 *230 SeaChange International, Inc............ 4,670 *+383 Spectrasite Holdings, Inc............... 5,068 *+157 Tekelec................................. 4,701 *285 US Unwired, Inc., Class A............... 1,318 -------- 31,261 -------- COMPUTERS & OFFICE EQUIPMENT -- 0.2% *339 Concurrent Computer Corp................ 1,821 -------- CONSTRUCTION -- 0.7% 234 Granite Construction, Inc............... 6,777 -------- CONSUMER NON-DURABLES -- 2.2% 258 Bindley Western Industries, Inc......... 10,715 *+118 Kenneth Cole Productions, Inc., Class A................................. 4,750 *132 Priority Healthcare Corp., Class B...... 5,387 -------- 20,852 -------- DRUGS -- 3.2% *+108 Albany Molecular Research, Inc.......... 6,649 *+211 ArQule, Inc............................. 6,746 *+93 Gilead Sciences, Inc.................... 7,672 *+98 ImmunoGen, Inc.......................... 2,090 *464 Serologicals Corp....................... 6,995 -------- 30,152 -------- ELECTRICAL EQUIPMENT -- 0.0% *+14 Bruker Daltonics, Inc................... 339 -------- ELECTRONICS -- 7.9% *299 Aeroflex, Inc........................... 8,617 *+416 AXT, Inc................................ 13,752 *+365 Emcore Corp............................. 17,160 *271 Oak Technology, Inc..................... 2,356 *+256 Plexus Corp............................. 7,780 *680 REMEC, Inc.............................. 6,545 *241 SBS Technologies, Inc................... 7,215 *+206 Stratos Lightwave, Inc.................. 3,517 *391 Supertex, Inc........................... 7,730 -------- 74,672 -------- ENERGY & SERVICES -- 6.5% +715 Cross Timbers Oil Co.................... 19,844 *+375 Evergreen Resources, Inc................ 14,465 *+609 Hanover Compressor Co................... 27,125 -------- 61,434 -------- MARKET SHARES VALUE - --------- --------
MARKET SHARES VALUE - --------- -------- FINANCIAL SERVICES -- 5.6% 424 Legg Mason, Inc......................... $ 23,108 +511 Liberty Property Trust (REIT)........... 14,607 +363 People's Bank........................... 9,400 *74 Trigon Healthcare, Inc.................. 5,735 -------- 52,850 -------- HEALTH SERVICES -- 13.0% *+2,617 Caremark Rx, Inc........................ 35,486 *+148 Express Scripts, Inc., Class A.......... 15,164 *1,308 Health Net, Inc......................... 34,261 *76 NPS Pharmaceuticals, Inc................ 3,667 *+185 Orthodontic Centers of America,......... 5,788 *548 Quorum Health Group, Inc................ 8,625 *303 Varian Medical Systems, Inc............. 20,571 -------- 123,562 -------- MACHINERY -- 0.6% *275 Grant Prideco, Inc...................... 6,022 -------- MEDIA & ENTERTAINMENT -- 0.8% *+273 Harrah's Entertainment, Inc............. 7,211 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.5% 340 Beckman Coulter, Inc.................... 14,242 *+228 I-STAT Corp............................. 6,033 *+222 North American Scientific, Inc.......... 3,213 -------- 23,488 -------- METALS, MINERALS & MINING -- 2.3% *+547 Stillwater Mining Co.................... 21,521 -------- REAL ESTATE -- 1.6% +617 Reckson Associates Realty Corp. (REIT).................................. 15,474 -------- RESEARCH & TESTING FACILITIES -- 2.0% *+695 Core Laboratories N.V................... 18,971 -------- RETAIL -- 6.8% *+225 Ann Taylor Store........................ 5,603 *+344 Cheesecake Factory, Inc. (The).......... 13,211 *676 Gymboree Corp........................... 9,384 608 Pier 1 Imports, Inc..................... 6,269 *809 Venator Group, Inc...................... 12,546 *+295 Whole Foods Market, Inc................. 18,044 -------- 65,057 -------- SOFTWARE & SERVICES -- 14.9% *385 Actuate Software Corp................... 7,355 *+613 Affiliated Computer Services, Inc., Class A................................. 37,201 *81 Agile Software Corp..................... 3,994 *+861 Broadbase Software, Inc................. 5,378 *440 Cognos, Inc............................. 8,283 *+285 DigitalThink, Inc....................... 4,858 *+156 E.piphany, Inc.......................... 8,430 *+395 HomeStore.com, Inc...................... 7,953 *+171 Inktomi Corp............................ 3,060 *118 Interwoven, Inc......................... 7,774 *+199 Intranet Solutions, Inc................. 10,124 *+114 Manugistics Group, Inc.................. 6,470 *298 Mentor Graphics......................... 8,163
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 20 ______________________________________
MARKET SHARES VALUE - --------- --------
COMMON STOCKS -- (CONTINUED) SOFTWARE & SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- -------- *681 Verity, Inc............................. $ 16,387 *357 Vignette Corp........................... 6,422 -------- 141,852 -------- TRANSPORTATION -- 10.0% *+433 Atlas Air, Inc.......................... 14,110 *239 Doncasters PLC, ADR..................... 4,782 *705 easyJet PLC............................. 4,127 *S241 easyJet PLC, ADR........................ 1,418 *+539 Ryanair Holdings PLC, ADR............... 30,014 661 Skywest, Inc............................ 19,010 *+1,079 Swift Transportation Co., Inc........... 21,374 -------- 94,835 -------- UTILITIES -- 0.7% *523 Apac Teleservices, Inc.................. 1,930 *142 Waste Connections, Inc.................. 4,678 -------- 6,608 -------- Total common stocks..................... $874,530 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 13.2% REPURCHASE AGREEMENT $124,959 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $124,959 -------- Total short-term securities............. $124,959 ========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $828,204)..... 92.1% $874,530 Total short-term securities (cost $124,959).............................. 13.2 124,959 ----- -------- Total investment in securities (total cost $953,163 )........................ 105.3 999,489 Cash, receivables and other assets...... 4.4 41,405 Securities lending collateral (See Note 2(i))............................. 23.1 219,331 Payable for securities purchased........ (5.2) (49,269) Payable for Fund shares redeemed........ (4.5) (41,744) Securities lending collateral payable to brokers (See Note 2(i))................ (23.1) (219,331) Other liabilities....................... (0.0) (28) ----- -------- Net assets.............................. 100.0% $949,853 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 1,500,000 shares authorized; 563,073 shares outstanding...................................... $ 56,307 Capital surplus................................... 871,263 Distribution in excess of net realized gain on investments...................................... (24,042) Unrealized appreciation of investments............ 46,326 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))w.............. -- Unrealized depreciation of other assets and liabilities in foreign currencies................ (1) -------- Net assets........................................ $949,853 ========
Class IA Net asset value per share ($908,886 DIVIDED BY 538,730 shares outstanding) (1,125,000 shares authorized)...................................... $1.69 ==== Class IB Net asset value per share ($40,967 DIVIDED BY 24,343 shares outstanding) (375,000 shares authorized)...................................... $1.68 ====
* Non-income producing during the period. S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $1,418 or 0.1% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). wFORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2000
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ ---------- -------- -------------- British Pounds (Buy) $243 $243 01/05/01 $ -- ==========
______________________________________ 21 ______________________________________ HARTFORD CAPITAL APPRECIATION HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - ---------- ---------- COMMON STOCKS -- 89.1% BUSINESS SERVICES -- 1.7% *+800 Critical Path, Inc...................... $ 24,600 3,082 Manpower, Inc........................... 117,108 *+1,500 United Rentals (North America).......... 20,156 ---------- 161,864 ---------- CHEMICALS -- 1.8% +1,400 Dow Chemical Co. (The).................. 51,275 2,000 Pharmacia Corp.......................... 122,000 p0 Syngenta AG............................. p0 ---------- 173,275 ---------- COMMUNICATIONS -- 5.5% *2,300 Advanced Fibre Communications, Inc...... 41,544 +6,300 AT&T Corp............................... 109,069 2,226 Broadwing, Inc.......................... 50,772 *+5,000 Exodus Communications, Inc.............. 100,000 *+6,412 Global Crossing Ltd..................... 91,765 *9,900 WorldCom, Inc........................... 139,213 ---------- 532,363 ---------- COMPUTERS & OFFICE EQUIPMENT -- 2.2% *800 Cisco Systems, Inc...................... 30,600 *+1,060 i2 Technologies, Inc.................... 57,638 *+595 Maxtor Corp............................. 3,328 *1,820 Palm, Inc............................... 51,529 *+2,000 Solectron Corp.......................... 67,800 120 Symbol Technologies, Inc................ 4,320 ---------- 215,215 ---------- CONSUMER DURABLES -- 0.9% 2,300 Grainger (W.W.), Inc.................... 83,950 ---------- CONSUMER NON-DURABLES -- 2.4% 4,100 McKesson HBOC, Inc...................... 147,149 *+6,000 Smurfit-Stone Container Corp............ 89,625 ---------- 236,774 ---------- DRUGS -- 3.3% 1,000 American Home Products Corp............. 63,550 *1,300 Gilead Sciences, Inc.................... 107,802 *3,799 Immunex Corp............................ 154,347 ---------- 325,699 ---------- ELECTRICAL EQUIPMENT -- 2.5% *1,600 Credence Systems Corp................... 36,800 *935 Ionics, Inc............................. 26,528 550 Samsung Electronics..................... 68,696 *2,482 Thermo Electron Corp.................... 73,851 *+925 Veeco Instruments, Inc.................. 37,116 ---------- 242,991 ---------- ELECTRONICS -- 4.3% *1,193 Altera Corp............................. 31,396 +2,400 Koninklijke (Royal) Philips Electronics N.V., ADR.............................. 87,000 *2,100 Micron Technology, Inc.................. 74,550 *3,000 National Semiconductor Corp............. 60,375 *+2,300 Novellus Systems, Inc................... 82,656 *1,800 UCAR International, Inc................. 17,550 MARKET SHARES VALUE - ---------- ----------
ELECTRONICS -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- *5,250 United Microelectronics Corp., ADR...... $ 43,313 *1,150 Vishay Intertechnology, Inc............. 17,394 ---------- 414,234 ---------- ENERGY & SERVICES -- 7.8% p0 Anadarko Petroleum Corp................. p0 2,594 Burlington Resources, Inc............... 131,012 *+4,598 China Petroleum and Chemical Corp., H Shares, ADR.......................... 70,121 +2,996 Cross Timbers Oil Co.................... 83,133 1,300 ExxonMobil Corp......................... 113,019 *3,000 R&B Falcon Corp......................... 68,813 *1,444 Rowan Companies, Inc.................... 38,993 6,700 Suncor Energy, Inc...................... 172,106 +1,692 Transocean Sedco Forex, Inc............. 77,812 ---------- 755,009 ---------- FINANCIAL SERVICES -- 5.8% 3,000 Ace Ltd................................. 127,313 1,500 Citigroup, Inc.......................... 76,594 +2,850 Heller Financial, Inc., Class A......... 87,459 1,000 Legg Mason, Inc......................... 54,500 2,300 MBIA, Inc............................... 170,488 476 Orix Corp............................... 47,737 ---------- 564,091 ---------- FOOD, BEVERAGE & TOBACCO -- 3.1% 3,100 Philip Morris Cos., Inc................. 136,400 5,585 Sara Lee Corp........................... 137,177 869 UST, Inc................................ 24,375 ---------- 297,952 ---------- HEALTH SERVICES -- 1.6% 1,900 HCA - The Healthcare Co................. 83,619 *1,220 Lincare Holdings, Inc................... 69,605 ---------- 153,224 ---------- HOTELS & GAMING -- 0.6% 1,628 Starwood Hotels & Resorts Worldwide, Inc.......................... 57,391 ---------- MACHINERY -- 0.3% *2,000 Terex Corp.............................. 32,375 ---------- MEDIA & ENTERTAINMENT -- 5.9% *4,000 AT&T - Liberty Media Group, Class A..... 54,250 *+1,500 Charter Communications, Inc., Class A................................. 34,031 *2,200 Clear Channel Communications, Inc....... 106,561 *3,528 Comcast Corp., Class A.................. 147,311 +1,490 Pegasus Communications Corp., Class A................................. 38,360 +2,665 Rogers Communications, Inc., Class B.... 45,297 *+3,000 Six Flags, Inc.......................... 51,563 *2,457 USA Networks, Inc....................... 47,756 +720 Vivendi Universal S.A., ADR............. 47,025 ---------- 572,154 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.3% +1,000 Bausch & Lomb, Inc...................... 40,438 5,306 Becton, Dickinson & Co.................. 183,713 ---------- 224,151 ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 22 ______________________________________
MARKET SHARES VALUE - ---------- ----------
COMMON STOCKS -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- METALS, MINERALS & MINING -- 4.7% 4,000 Alcoa, Inc.............................. $ 134,000 +2,000 AngloGold Ltd., ADR..................... 29,875 1,711 Engelhard Corp.......................... 34,868 *+4,600 Freeport-McMoRan Copper & Gold, Inc., Class B................................ 39,388 2,239 General Cable Corp...................... 9,935 +3,200 Petroleo Brasileiro S.A., ADR........... 80,800 3,110 Precision Castparts Corp................ 130,798 ---------- 459,664 ---------- REAL ESTATE -- 1.2% 1,000 Boston Properties, Inc. (REIT).......... 43,500 *1,400 Pinnacle Holdings, Inc. (REIT).......... 12,688 *+3,150 Security Capital Group, Inc., Class B................................. 63,193 ---------- 119,381 ---------- RETAIL -- 6.8% *650 Best Buy Co., Inc....................... 19,216 *+1,250 Cheesecake Factory, Inc. (The).......... 47,969 6,063 Dollar General Corp..................... 114,437 2,288 Hennes & Mauritz AB, Class B............ 35,409 4,910 Limited, Inc. (The)..................... 83,768 1,400 May Department Stores Co................ 45,850 *9,000 Staples, Inc............................ 106,313 3,900 Target Corp............................. 125,775 *5,221 Toys R Us, Inc.......................... 87,120 ---------- 665,857 ---------- RUBBER & PLASTICS PRODUCTS -- 0.6% 1,000 NIKE, Inc., Class B..................... 55,813 ---------- SOFTWARE & SERVICES -- 7.6% *2,000 America Online, Inc..................... 69,600 *+1,476 Avant! Corp............................. 27,037 *3,150 China Unicom Ltd., ADR.................. 46,463 *1,660 Cognex Corp............................. 36,728 1,424 Comdisco, Inc........................... 16,284 2,300 First Data Corp......................... 121,181 *900 Intuit, Inc............................. 35,494 *2,000 Microsoft Corp.......................... 86,750 *837 Quest Software, Inc..................... 23,494 *3,000 Rational Software Corp.................. 116,813 *1,100 VeriSign, Inc........................... 81,606 *+4,480 Vignette Corp........................... 80,627 ---------- 742,077 ---------- TRANSPORTATION -- 9.9% *3,000 AMR Corp................................ 117,563 3,200 Boeing Co. (The)........................ 211,200 3,200 Canadian Pacific Ltd.................... 91,400 +4,494 CSX Corp................................ 116,563 3,451 Delphi Automotive Systems Corp.......... 38,820 2,406 Northrop Grumman Corp................... 199,723 *2,847 NorthWest Airlines Corp., Class A....... 85,763 +1,002 PetroChina Co., Ltd., Class H, ADR...... 16,594 +1,200 USFreightways Corp...................... 36,094 2,717 Werner Enterprises, Inc................. 46,189 ---------- 959,909 ---------- MARKET SHARES VALUE - ---------- ----------
MARKET SHARES VALUE - ---------- ---------- UTILITIES -- 6.3% *+7,800 Calpine Corp............................ $ 351,488 +3,800 CMS Energy Corp......................... 120,413 5,000 Waste Management, Inc................... 138,750 ---------- 610,651 ---------- Total common stocks..................... $8,656,064 ========== PRINCIPAL AMOUNT - ---------- SHORT-TERM SECURITIES -- 10.8% REPURCHASE AGREEMENT $1,051,470 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $1,051,470 ---------- Total short-term securities............. $1,051,470 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $8,163,488)... 89.1% $8,656,064 Total short-term securities (cost $1,051,470)............................ 10.8 1,051,470 ----- ---------- Total investment in securities (total cost $9,214,958)....................... 99.9 9,707,534 Cash, receivables and other assets...... 1.5 149,135 Securities lending collateral (See Note 2(i))............................. 4.1 402,094 Payable for securities purchased........ (1.3) (128,885) Payable for Fund shares redeemed........ (0.1) (9,463) Securities lending collateral payable to brokers (See Note 2(i))................ (4.1) (402,094) Other liabilities....................... (0.0) (365) ----- ---------- Net assets.............................. 100.0% $9,717,956 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 3,000,000 shares authorized; 1,639,899 shares outstanding...................................... $ 163,990 Capital surplus................................... 6,402,984 Accumulated undistributed net investment income... 265 Accumulated undistributed net realized gain on investments...................................... 2,658,283 Unrealized appreciation of investments............ 492,576 Unrealized depreciation of other assets and liabilities in foreign currencies................ (142) --------- Net assets........................................ $9,717,956 =========
Class IA Net asset value per share ($9,581,898 DIVIDED BY 1,616,927 shares outstanding) (2,250,000 shares authorized)...................................... $5.93 ===== Class IB Net asset value per share ($136,058 DIVIDED BY 22,972 shares outstanding) (750,000 shares authorized)...................................... $5.92 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). p Due to the presentation of the financial statements in thousands, the number of shares and market value round to zero. ______________________________________ 23 ______________________________________ HARTFORD MIDCAP HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 98.7% APPAREL & TEXTILE -- 1.0% +417 Liz Claiborne, Inc...................... $ 17,341 ---------- BUSINESS SERVICES -- 6.4% +600 Cintas Corp............................. 31,886 *403 Concord EFS, Inc........................ 17,707 *+626 Iron Mountain, Inc...................... 23,257 *+234 Lamar Advertising Co., Class A.......... 9,012 934 Manpower, Inc........................... 35,488 ---------- 117,350 ---------- COMMUNICATIONS -- 5.1% *+565 American Tower Corp., Class A........... 21,415 231 Broadwing, Inc.......................... 5,277 *+2,793 McLeodUSA, Inc., Class A................ 39,453 *+459 Nextel Partners, Inc.................... 7,714 *494 Western Wireless Corp., Class A......... 19,363 ---------- 93,222 ---------- COMPUTERS & OFFICE EQUIPMENT -- 1.7% *+184 Handspring, Inc......................... 7,165 *+454 Jabil Circuit, Inc...................... 11,508 *461 Palm, Inc............................... 13,041 ---------- 31,714 ---------- CONSUMER DURABLES -- 0.9% 552 Herman Miller, Inc...................... 15,856 ---------- CONSUMER NON-DURABLES -- 1.2% 598 McKesson HBOC, Inc...................... 21,466 ---------- DRUGS -- 4.6% *198 Forest Laboratories, Inc................ 26,269 *+297 Gilead Sciences, Inc.................... 24,616 *+54 IDEC Pharmaceuticals Corp............... 10,274 *574 Immunex Corp............................ 23,327 ---------- 84,486 ---------- EDUCATION -- 0.3% *+134 DeVry, Inc.............................. 5,051 ---------- ELECTRICAL EQUIPMENT -- 3.9% 457 Danaher Corp............................ 31,234 422 Tektronix, Inc.......................... 14,206 *476 Teradyne, Inc........................... 17,727 *213 Veeco Instruments, Inc.................. 8,527 ---------- 71,694 ---------- ELECTRONICS -- 3.6% *+565 Flextronics International Ltd........... 16,094 *+147 FuelCell Energy, Inc.................... 10,065 *287 Integrated Device Technology, Inc....... 9,500 *+542 Novellus Systems, Inc................... 19,475 *+128 Sanmina Corp............................ 9,808 ---------- 64,942 ---------- ENERGY & SERVICES -- 8.1% 392 Anadarko Petroleum Corp................. 27,835 *567 Nabors Industries, Inc.................. 33,508 *375 Noble Drilling Corp..................... 16,302 *1,313 R&B Falcon Corp......................... 30,105 MARKET SHARES VALUE - --------- ----------
ENERGY & SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- +738 Suncor Energy, Inc...................... $ 18,968 441 Transocean Sedco Forex, Inc............. 20,295 ---------- 147,013 ---------- FINANCIAL SERVICES -- 9.7% 813 Ace Ltd................................. 34,502 443 AMBAC Financial Group, Inc.............. 25,809 364 Bear Stearns Cos., Inc. (The)........... 18,428 +338 Legg Mason, Inc......................... 18,421 343 MBIA, Inc............................... 25,410 212 State Street Corp....................... 26,270 1,192 UnionBanCal Corp........................ 28,687 ---------- 177,527 ---------- FOOD, BEVERAGE & TOBACCO -- 2.6% 698 Pepsi Bottling Group, Inc............... 27,864 727 Ralston Purina Co....................... 18,985 ---------- 46,849 ---------- FOREST & PAPER PRODUCTS -- 2.3% 1,727 Abitibi-Consolidated, Inc............... 15,869 467 Bowater, Inc............................ 26,321 ---------- 42,190 ---------- HEALTH SERVICES -- 3.9% *+1,597 Health Management Associates, Inc., Class A................................. 33,134 *+206 Human Genome Sciences, Inc.............. 14,271 *515 Tenet Healthcare Corp................... 22,894 ---------- 70,299 ---------- HOTELS & GAMING -- 0.5% 282 Starwood Hotels & Resorts Worldwide, Inc.......................... 9,948 ---------- MACHINERY -- 3.3% *1,029 Grant Prideco, Inc...................... 22,578 574 Harris Corp............................. 17,576 *932 Varco International, Inc................ 20,271 ---------- 60,425 ---------- MEDIA & ENTERTAINMENT -- 5.1% *+312 Adelphia Communications Corp., Class A................................. 16,128 *657 Allegiance Telecom., Inc................ 14,620 +975 Pegasus Communications Corp., Class A................................. 25,106 351 Scripps (E.W.) Co. (The), Class A....... 22,094 *+356 Univision Communications, Inc., Class A................................. 14,574 ---------- 92,522 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 5.6% 1,291 Becton, Dickinson & Co.................. 44,701 722 Biomet, Inc............................. 28,640 *467 St. Jude Medical, Inc................... 28,716 ---------- 102,057 ---------- METALS, MINERALS & MINING -- 3.1% 984 Lockheed Martin Corp.................... 33,397 469 Vulcan Materials Co..................... 22,444 ---------- 55,841 ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 24 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- RESEARCH & TESTING FACILITIES -- 1.8% *+238 Quest Diagnostics, Inc.................. $ 33,725 ---------- RETAIL -- 5.3% *354 Bed Bath & Beyond, Inc.................. 7,925 +1,737 Dollar General Corp..................... 32,783 *636 Dollar Tree Stores, Inc................. 15,584 1,628 Family Dollar Stores, Inc............... 34,909 *140 Starbucks Corp.......................... 6,173 ---------- 97,374 ---------- RUBBER & PLASTICS PRODUCTS -- 2.4% *+799 Sealed Air Corp......................... 24,360 *406 Weatherford International, Inc.......... 19,165 ---------- 43,525 ---------- SOFTWARE & SERVICES -- 10.5% *532 Affiliated Computer Services, Inc., Class A................................. 32,280 *1,500 Cabletron Systems, Inc.................. 22,589 *536 Cadence Design Systems, Inc............. 14,751 *1,183 Ceridan Corp............................ 23,578 *253 Fiserv, Inc............................. 11,987 *+1,787 Gartner Group, Inc., Class A............ 12,329 *+487 HomeStore.com, Inc...................... 9,799 647 IMS Health, Inc......................... 17,480 *222 Intuit, Inc............................. 8,767 *+126 Macromedia, Inc......................... 7,655 *+524 Rational Software Corp.................. 20,392 *588 Vignette Corp........................... 10,580 ---------- 192,187 ---------- TRANSPORTATION -- 2.7% *+408 Ryanair Holdings PLC, ADR............... 22,721 791 Southwest Airlines Co................... 26,520 ---------- 49,241 ---------- UTILITIES -- 3.1% *506 Calpine Corp............................ 22,815 +450 DPL, Inc................................ 14,921 458 KeySpan Corp............................ 19,416 ---------- 57,152 ---------- Total common stocks..................... $1,800,997 ==========
PRINCIPAL MARKET AMOUNT VALUE - --------- ---------- SHORT-TERM SECURITIES -- 3.7% REPURCHASE AGREEMENT $68,222 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 68,222 ---------- Total short-term securities............. $ 68,222 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,664,821)... 98.7% $1,800,997 Total short-term securities (cost $68,222)............................... 3.7 68,222 ----- ---------- Total investment in securities (total cost $1,733,043)....................... 102.4 1,869,219 Cash, receivables and other assets...... 0.5 8,948 Securities lending collateral (See Note 2(i))............................. 14.7 268,467 Payable for securities purchased........ (0.8) (15,341) Payable for Fund shares redeemed........ (2.1) (37,987) Securities lending collateral payable to brokers (See Note 2(i))................ (14.7) (268,467) Other liabilities....................... (0.0) (45) ----- ---------- Net assets.............................. 100.0% $1,824,794 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 739,721 shares outstanding...................................... $ 73,972 Capital surplus................................... 1,432,551 Accumulated undistributed net investment income... 1 Accumulated undistributed net realized gain on investments...................................... 182,094 Unrealized appreciation of investments............ 136,176 ---------- Net assets........................................ $1,824,794 ==========
Class IA Net asset value per share ($1,774,047 DIVIDED BY 719,109 shares outstanding) (1,500,000 shares authorized)...................................... $2.47 ==== Class IB Net asset value per share ($50,747 DIVIDED BY 20,612 shares outstanding) (500,000 shares authorized)...................................... $2.46 ====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). ______________________________________ 25 ______________________________________ HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - ---------- ---------- COMMON STOCKS -- 98.0% AUSTRALIA -- 0.9% +357 News Corp., Ltd., ADR (Media & Entertainment)......................... $ 11,510 ---------- BELGIUM -- 1.7% 27 Credit Communal Holding (Financial Services).............................. 4,932 *S314 Interbrew (Food, Beverage & Tobacco).... 10,933 147 KBC Bancassurance Holdings (Financial Services).............................. 6,361 ---------- 22,226 ---------- BRAZIL -- 1.2% 229 Telecomunicacoes Brasileiras S.A., ADR (Utilities)............................ 16,652 ---------- CANADA -- 2.0% 470 Abitibi-Consolidated, Inc. (Forest & Paper Products)........................ 4,321 525 Alcan Aluminum Ltd. (Metals, Minerals & Mining)................................ 17,931 118 Nortel Networks Holdings Corp. (Communications)....................... 3,771 ---------- 26,023 ---------- CHINA -- 0.4% *+367 China Unicom Ltd., ADR (Software & Services).............................. 5,418 ---------- FINLAND -- 3.1% 487 Nokia Oyj (Communications).............. 21,717 530 Sonera Group Oyj (Communications)....... 9,603 310 UPM-Kymmene Group (Forest & Paper Products).............................. 10,654 ---------- 41,974 ---------- FRANCE -- 12.4% +138 Air Liquids S.A. (Chemicals)............ 20,623 88 Alcatel, Class A (Communications)....... 4,987 227 Aventis S.A. (Chemicals)................ 19,943 +55 AXA (Financial Services)................ 7,967 8 BNP Paribas (Financial Services)........ 697 279 Carrefour S.A. (Retail)................. 17,511 +65 France Telecom S.A. (Communications).... 5,568 101 L'Oreal (Consumer Non-Durables)......... 8,657 179 Pechiney S.A., A Shares (Metals, Minerals & Mining)..................... 8,169 +43 Pinault-Printemps-Redoute S.A. (Retail)............................... 9,262 110 Schneider Electric S.A. (Electrical Equipment)............................. 7,988 42 Suez Lyonnaise des Eaux S.A. (Utilities)............................ 7,706 *+223 Thomson Multimedia (Media & Entertainment)......................... 10,457 204 Total Fina S.A., B Shares (Energy & Services)............................... 30,331 *+101 Vivendi S.A. (Media & Entertainment).... 6,673 ---------- 166,539 ---------- GERMANY -- 4.5% 184 BASF AG (Chemicals)..................... 8,355 MARKET SHARES VALUE - ---------- ----------
GERMANY -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- 108 Bayerische Motoren Werke (BMW) AG (Transportation)....................... $ 3,530 *S369 Deutsche Post (Transportation).......... 7,931 +622 Deutsche Telekom AG (Communications).... 18,979 +433 RWE AG (Utilities)...................... 19,233 *+222 T-Online International (Software & Services).............................. 2,791 ---------- 60,819 ---------- HONG KONG -- 3.0% 1,099 Cheung Kong (Holdings) Ltd. (Real Estate)................................ 14,055 2,429 New World Development (Real Estate)..... 2,943 *+15,133 Pacific Century Cyberwor (Communications)....................... 9,798 1,422 Sun Hung Kai Properties (Real Estate)... 14,175 ---------- 40,971 ---------- IRELAND -- 0.5% 594 Allied Irish Banks PLC (Financial Services).............................. 6,903 ---------- ITALY -- 5.0% +376 Allenza Assicurazioni (Financial Services).............................. 5,995 +139 Assicurazioni Generali S.p.A. (Financial Services).............................. 5,512 +1,998 ENI S.p.A. (Energy & Services).......... 12,756 +305 Mediaset S.p.A. (Media & Entertainment)......................... 3,634 +5,181 Pirelli S.p.A. (Transportation)......... 18,435 +p0 Seat-Pagine Gialle S.p.A. (Media & Entertainment)......................... p0 *+1,596 Telecom Italia Mobile S.p.A. (Communications)....................... 12,738 +571 Telecom Italia S.p.A. (Communications)....................... 6,312 ---------- 65,382 ---------- JAPAN -- 13.8% 43 Advantest Corp. (Electronics)........... 3,982 450 Bank of Toyko-Mitsubishi Ltd. (Financial Services).............................. 4,480 1 DDI Corp. (Communications).............. 5,052 1 East Japan Railway...................... 3,960 12 Fast Retailing Co. (Retail)............. 2,293 282 Fuji Photo Film Co., Ltd. (Media & Entertainment)......................... 11,803 35 Fuji Soft ABC, Inc. (Computers & Office Equipment)............................. 2,239 +427 Fujisawa Pharmaceutical Co. (Drugs)..... 14,134 107 Hoya Corp. (Medical Instruments & Supplies).............................. 7,870 203 KAO Corp. (Consumer Non-Durables)....... 5,902 82 Kyocera Corp. (Electronics)............. 8,910 +171 Matsumotokiyoshi Co., Ltd. (Retail)..... 4,688 54 Matsushita Communication Industrial Co., Ltd. (Retail).......................... 6,773 654 Matsushita Electric Industrial Co. (Electronics).......................... 15,634 593 NEC Corp. (Electronics)................. 10,853 1,707 Nikko Securities Co., Ltd. (Financial Services).............................. 13,228 58 Nintendo Co., Ltd (Consumer Non-Durables).......................... 9,121 1 Nippon Telegraph & Telephone Corp. (Communications)....................... 7,920 p0 NTT DoCoMo, Inc. (Media & Entertainment)......................... 5,313
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 26 ______________________________________
MARKET SHARES VALUE - ---------- ----------
COMMON STOCKS -- (CONTINUED) JAPAN -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- 487 Omron Corp. (Electrical Equipment)...... $ 10,128 109 Pioneer Corp. (Media & Entertainment)... 2,911 210 Promise Co., Ltd. (Financial Services).............................. 14,909 *+392 Ricoh Co., Ltd. (Media & Entertainment)......................... 7,243 701 Tokyo Style Co., Ltd. (Apparel & Textile)............................... 6,433 ---------- 185,779 ---------- NETHERLANDS -- 8.0% 502 Aegon N.V. (Financial Services)......... 20,749 129 Heineken N.V. (Food, Beverage & Tobacco)............................... 7,806 259 ING Groep N.V. (Financial Services)..... 20,661 88 Phillips Electronics N.V. (Electronics).......................... 3,213 463 Royal Dutch Petroleum Co. (Energy & Services).............................. 28,343 228 Royal Dutch Petroleum Co., NY Shares, ADR (Energy & Services)................ 13,778 102 ST Microelectronics (Electronic Equipment)............................. 4,449 147 Unilever N.V., NY Shares (Consumer Non- Durables).............................. 9,227 ---------- 108,226 ---------- PORTUGAL -- 0.4% 1,711 Electridade de Portuga (Energy & Services).............................. 5,654 ---------- SOUTH AFRICA -- 0.6% 2,830 Firstrand Ltd. (Financial Services)..... 3,140 139 Nedcor Ltd. (Financial Services)........ 3,144 1,933 Sanlam Ltd. (Financial Services)........ 2,441 ---------- 8,725 ---------- SOUTH KOREA -- 2.1% 53 Korea Telecom Corp. (Communications).... 2,816 92 Korea Telecom Corp., ADR (Communications)....................... 2,853 150 Samsung Electronics (Electronics)....... 18,693 13 SK Telecom Co., Ltd. (Media & Entertainment)......................... 2,684 +77 SK Telecom Co., Ltd., ADR (Media & Entertainment)......................... 1,807 ---------- 28,853 ---------- SPAIN -- 4.3% +561 Banco Popular Espanol S.A. (Financial Services).............................. 19,533 1,233 Banco Santander Central Hispano S.A. (Financial Services)................... 13,197 615 Endesa S.A. (Utilities)................. 10,485 151 Endesa S.A., ADR (Utilities)............ 2,518 +240 Telefonica S.A., ADR (Communications)... 12,002 ---------- 57,735 ---------- SWEDEN -- 3.7% 960 ForeningsSparbanken AB (Swedbank) (Financial Services)................... 14,698 229 Gambro AB, Class A (Medical Instruments & Supplies)................ 1,661 2,294 Skandinaviska Enskilda, A Shares (Financial Services)................... 25,290 MARKET SHARES VALUE - ---------- ----------
SWEDEN -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- 226 Telefonaktiebolaget LM Ericcson AB, B Shares, ADR (Communications)........... $ 2,531 506 Telefonaktiebolaget LM Ericsson AB, B Shares (Communications)................ 5,769 ---------- 49,949 ---------- SWITZERLAND -- 4.6% 13 Nestle S.A. (Food, Beverage & Tobacco)............................... 29,878 12 Novartis AG (Drugs)..................... 21,021 1 Roche Holdings, Inc. (Drugs)............ 10,698 p0 Syngenta AG (Chemicals)................. p0 ---------- 61,597 ---------- TAIWAN -- 1.2% *1,398 Taiwan Semiconductor Manufacturing Co., Ltd.................................... 3,360 *542 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Electronics)................ 9,346 *354 United Microelectronics Corp., ADR (Electronics).......................... 2,921 ---------- 15,627 ---------- UNITED KINGDOM -- 24.6% 531 Astrazeneca Group PLC (Drugs)........... 26,712 1,070 BAA PLC (Transportation)................ 9,876 694 Barclays PLC (Financial Services)....... 21,422 1,796 Billiton PLC (Metals, Minerals & Mining)................................ 6,968 2,501 BP Amoco PLC (Energy & Services)........ 20,060 287 BP Amoco PLC, ADR (Energy & Services)... 13,759 2,264 British Airways PLC..................... 13,178 898 British Sky Broadcasting (Media & Entertainment)......................... 15,073 725 Cable & Wireless PLC (Utilities)........ 9,762 *342 COLT Telecom Group PLC (Communications)....................... 7,339 *207 GlaxoSmithKline PLC (Drugs)............. 5,850 151 GlaxoSmithKline PLC, ADR (Drugs)........ 8,457 1,050 Imperial Chemical Industries PLC (Chemicals)............................ 8,651 5,827 Invensys PLC (Electrical Equipment)..... 13,622 *2,166 Lattice Group PLC (Utilities)........... 4,868 206 Liberty International PLC (Business Services).............................. 1,498 1,666 Lloyds TSB Group PLC (Financial Services).............................. 17,543 601 Marconi PLC (Communications)............ 6,428 1,092 Prudential Corp., PLC (Financial Services).............................. 17,535 825 Psion PLC, GBP (Software & Services).... 3,479 722 Reckitt & Colman PLC (Consumer Non- Durables).............................. 9,966 2,820 Reed International PLC (Media & Entertainment)......................... 29,424 3,252 Rentokil Initial PLC (Business Services).............................. 11,245 509 Royal Bank of Scotland Group (Financial Services).............................. 12,003 760 Safeway PLC (Retail).................... 3,376 1,979 Smith & Nephew PLC (Medical Instruments & Supplies)................ 9,298
______________________________________ 27 ______________________________________ HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - ---------- ----------
COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- (CONTINUED)
MARKET SHARES VALUE - ---------- ---------- 393 South African Breweries PLC (Food, Beverage & Tobacco).................... $ 2,763 5,816 Vodafone AirTouch PLC (Communications)....................... 21,327 ---------- 331,482 ---------- Total common stocks..................... $1,318,044 ========== PRINCIPAL AMOUNT - ---------- SHORT-TERM SECURITIES -- 11.8% REPURCHASE AGREEMENT $ 158,524 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 158,524 ---------- Total short-term securities............. $ 158,524 ==========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,310,704)... 98.0% $1,318,044 Total short-term securities (cost $158,524).............................. 11.8 158,524 ----- ---------- Total investment in securities (total cost $1,469,228)....................... 109.8 1,476,568 Cash, receivables and other assets...... 1.7 23,837 Securities lending collateral (See Note 2(i))............................. 12.0 161,272 Payable for securities purchased........ (6.6) (89,089) Payable for Fund shares redeemed........ (4.9) (65,782) Securities lending collateral payable to brokers (See Note 2(i))................ (12.0) (161,272) Other liabilities....................... 0.0 (243) ----- ---------- Net assets.............................. 100.0% $1,345,291 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,500,000 shares authorized; 986,541 shares outstanding...................................... $ 98,654 Capital surplus................................... 1,130,993 Accumulated undistributed net investment income... 781 Accumulated undistributed net realized gain on investments...................................... 108,047 Unrealized appreciation of investments............ 7,340 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))w.............. 381 Unrealized depreciation of other assets and liabilities in foreign currencies................ (905) ---------- Net assets........................................ $1,345,291 ==========
Class IA Net asset value per share ($1,326,609 DIVIDED BY 972,857 shares outstanding) (1,875,000 shares authorized)....... $1.36 ===== Class IB Net asset value per share ($18,682 DIVIDED BY 13,684 shares outstanding) (625,000 shares authorized)...................... $1.37 =====
MARKET VALUE ------
DIVERSIFICATION BY INDUSTRY: Apparel & Textile............................ 0.5% $ 6,433 Business Services............................ 0.9 12,743 Chemicals.................................... 4.3 57,572 Communications............................... 12.6 169,317 Computers & Office Equipment................. 0.2 2,239 Consumer Non-Durables........................ 3.2 42,873 Drugs........................................ 6.5 86,872 Electrical Equipment......................... 2.7 36,187 Electronics.................................. 5.7 76,912 Energy & Services............................ 9.3 124,681 Financial Services........................... 19.4 262,340 Food, Beverage & Tobacco..................... 3.8 51,380 Forest & Paper Products...................... 1.1 14,975 Media & Entertainment........................ 7.9 106,725 Medical Instruments & Supplies............... 1.4 18,829 Metals, Minerals & Mining.................... 2.5 33,068 Real Estate.................................. 2.3 31,173 Retail....................................... 3.3 43,903 Software & Services.......................... 0.9 11,688 Transportation............................... 4.2 56,910 Utilities.................................... 5.3 71,224 ------ ---------- Total common stocks............................ 98.0% $1,318,044 ====== ==========
* Non-income producing during the period. S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to 18,864 or 1.4% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). p Due to the presentation of the financial statements in thousands, the number of shares and market value round to zero. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 28 ______________________________________ wFORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2000
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ ---------- -------- -------------- British Pounds (Buy) $ 2,018 $1,988 01/02/01 $ 30 British Pounds (Buy) 3,558 3,522 01/03/01 36 British Pounds (Buy) 2,557 2,563 01/04/01 (6) British Pounds (Buy) 1,857 1,856 01/05/01 1 British Pounds (Buy) 66 66 01/08/01 -- British Pounds (Sell) 679 674 01/03/01 (5) Canadian Dollars (Buy) 5,512 5,480 01/02/01 32 Canadian Dollars (Buy) 1,660 1,662 01/03/01 (2) Euro (Buy) 18,033 17,877 01/02/01 156 Euro (Buy) 5,077 5,019 01/03/01 58 Hong Kong Dollars (Buy) 685 685 01/02/01 -- South African Rand (Buy) 1,788 1,797 01/02/01 (9) South African Rand (Buy) 773 773 01/02/01 -- Swedish Krona (Buy) 2,303 2,275 01/02/01 28 Swedish Krona (Buy) 809 801 01/03/01 8 Swedish Krona (Buy) 18 18 01/04/01 -- Swiss Franc (Buy) 4,995 4,941 01/04/01 54 ---- $381 ====
______________________________________ 29 ______________________________________ HARTFORD GLOBAL LEADERS HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- -------- COMMON STOCKS -- 95.3% AUSTRALIA -- 0.3% +58 News Corp., Ltd., ADR (Media & Entertainment)......................... $ 1,861 -------- BELGIUM -- 2.0% 40 Dexia FF (Financial Services)........... 7,321 *S136 Interbrew (Food, Beverage & Tobacco).... 4,755 -------- 12,076 -------- BRAZIL -- 1.2% +97 Telecomunicacoes Brasileiras S.A., ADR (Communications)....................... 7,069 -------- FINLAND -- 2.4% 148 Nokia Oyj (Communications).............. 6,605 219 UPM-Kymmene Group (Forest & Paper Products).............................. 7,522 -------- 14,127 -------- FRANCE -- 8.5% 53 Air Liquide S.A. (Chemicals)............ 7,893 72 Aventis S.A. (Chemicals)................ 6,304 +26 AXA (Financial Services)................ 3,791 91 Carrefour S.A. (Retail)................. 5,709 +29 Pinault-Printemps-Redoute S.A. (Retail)............................... 6,125 200 Thales S.A. (Electronics)............... 9,566 *+150 Thomson Multimedia (Media & Entertainment)......................... 7,004 29 Total Fina S.A., B Shares (Energy & Services).............................. 4,288 -------- 50,680 -------- GERMANY -- 2.6% 119 Bayerische Motoren Werke (BMW) AG (Transportation)....................... 3,882 *S156 Deutsche Post AG (Transportation)....... 3,357 +273 Deutsche Telekom AG (Communications).... 8,330 -------- 15,569 -------- ITALY -- 3.0% +2,366 Pirelli S.p.A (Transportation).......... 8,420 *+1,156 Telecom Italia Mobile S.p.A. (Communications)....................... 9,228 -------- 17,648 -------- JAPAN -- 0.7% 117 Matsushita Electric Industrial Co. (Electrical Equipment)................. 2,797 47 Softbank Corp. (Financial Services)..... 1,627 -------- 4,424 -------- NETHERLANDS -- 4.0% 83 ING Groep N.V. (Financial Services)..... 6,628 146 Royal Dutch Petroleum Co. (Energy & Services).............................. 8,915 136 Unilever N.V., NY Shares (Consumer Non- Durables).............................. 8,541 -------- 24,084 -------- SOUTH KOREA -- 1.6% S136 Samsung Electronics, GDR (Electronics).......................... 9,704 -------- SPAIN -- 1.8% 306 Banco Popular Espanol S.A. (Financial Services).............................. 10,669 -------- MARKET SHARES VALUE - --------- --------
MARKET SHARES VALUE - --------- -------- SWEDEN -- 1.2% 645 Skandinaviska Enskilda, Class A (Financial Services)................... $ 7,106 -------- SWITZERLAND -- 2.0% 5 Nestle S.A. (Food, Beverage & Tobacco)............................... 12,078 -------- UNITED KINGDOM -- 13.1% 217 AstraZeneca Group PLC (Drugs)........... 10,920 315 Barclays PLC (Financial Services)....... 9,739 899 British Airways PLC..................... 5,237 601 British Sky Broadcasting Group PLC (Media & Entertainment)................ 10,086 297 Cable & Wireless PLC (Utilities)........ 3,999 3,378 Invensys PLC (Electrical................ 7,897 900 Lloyds TSB Group PLC (Financial Services).............................. 9,476 898 Psion PLC, GBP (Software & Services).... 3,786 1,449 Reed International PLC (Media & Entertainment)......................... 15,116 656 Vodafone AirTouch PLC (Communications)....................... 2,407 -------- 78,663 -------- UNITED STATES OF AMERICA -- 50.9% 182 Ace Ltd. (Financial Services)........... 7,702 218 Alcoa, Inc. (Metals, Minerals & Mining)................................ 7,300 *65 America Online, Inc. (Software & Services).............................. 2,269 169 American Home Products Corp. (Drugs).... 10,708 92 American International Group, Inc. (Financial Services)................... 9,028 *285 AMR Corp. (Transportation).............. 11,168 191 Anheuser-Busch Cos., Inc. (Food, Beverage & Tobacco).................... 8,672 158 Automatic Data Processing, Inc. (Software & Services).................. 9,984 75 Baxter International, Inc. (Medical Instruments & Supplies)................ 6,606 *+4 Berkshire Hathaway, Inc., Class B (Financial Services)................... 8,710 249 Burlington Resources, Inc. (Energy & Services).............................. 12,569 69 Cardinal Health, Inc. (Consumer Non-Durables).......................... 6,874 *189 Cisco Systems, Inc. (Computers & Office Equipment)............................. 7,213 182 Citigroup, Inc. (Financial Services).... 9,282 326 du Pont (E.I.) de Nemours & Co. (Chemicals)............................ 15,755 75 Emerson Electric Co. (Electronics)...... 5,935 160 ExxonMobil Corp. (Energy & Services).... 13,901 82 General Electric Co. (Electronics)...... 3,935 84 Goldman Sachs Group, Inc. (The) (Financial Services)................... 9,026 *178 Immunex Corp. (Drugs)................... 7,248 336 Intel Corp. (Electronics)............... 10,101 *424 Micron Technology, Inc. (Electronics)... 15,041 *303 Microsoft Corp. (Software & Services)... 13,134 140 PepsiCo, Inc. (Food, Beverage & Tobacco)............................... 6,919 258 Pharmacia Corp. (Chemicals)............. 15,731 108 Philip Morris Cos., Inc. (Food, Beverage & Tobacco).................... 4,761 116 Sprint Corp. (Communications)........... 2,364 *66 Starbucks Corp. (Retail)................ 2,934
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 30 ______________________________________
MARKET SHARES VALUE - --------- --------
COMMON STOCKS -- (CONTINUED) UNITED STATES OF AMERICA -- (CONTINUED)
MARKET SHARES VALUE - --------- -------- *305 Sun Microsystems, Inc. (Software & Services).............................. $ 8,496 137 Texas Instruments, Inc. (Electronics)... 6,509 220 United Technologies Corp. (Aerospace & Defense)............................... 17,313 315 Unocal Corp. (Energy & Services)........ 12,194 49 Wal-Mart Stores, Inc. (Retail).......... 2,624 442 Waste Management, Inc. (Utilities)...... 12,260 -------- 304,266 -------- Total common stocks..................... $570,024 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 7.7% REPURCHASE AGREEMENT $45,951 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 45,951 -------- Total short-term securities............. $ 45,951 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $551,786)..... 95.3% $570,024 Total short-term securities (cost $45,951)............................... 7.7 45,951 ----- -------- Total investment in securities (total cost $597,737)......................... 103.0 615,975 Cash, receivables and other assets...... 0.9 5,291 Securities lending collateral (See Note 2(i))............................. 7.0 41,777 Payable for securities purchased........ (3.1) (18,744) Payable for Fund shares redeemed........ (0.8) (4,103) Securities lending collateral payable to brokers (See Note 2(i))................ (7.0) (41,777) Other liabilities....................... 0.0 (33) ----- -------- Net assets.............................. 100.0% $598,386 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 340,143 shares outstanding.... $ 340 Capital surplus................................... 615,885 Distribution in excess of net investment income... (196) Distribution in excess of net realized gain on investments...................................... (35,865) Unrealized appreciation of investments............ 18,238 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))w.............. 1 Unrealized depreciation of other assets and liabilities in foreign currencies................ (17) -------- Net assets........................................ $598,386 ========
MARKET VALUE ------ Class IA Net asset value per share ($572,517 DIVIDED BY 325,418 shares outstanding) (600,000 shares authorized)...................................... $1.76 ===== Class IB Net asset value per share ($25,869 DIVIDED BY 14,725 shares outstanding) (200,000 shares authorized)...................................... $1.76 =====
DIVERSIFICATION BY INDUSTRY: Aerospace & Defense................... 2.9% $ 17,313 Chemicals............................. 7.6 45,683 Communications........................ 6.0 36,003 Computers & Office Equipment.......... 1.2 7,213 Consumer Non-Durables................. 2.6 15,415 Drugs................................. 4.8 28,876 Electrical Equipment.................. 1.8 10,694 Electronics........................... 10.2 60,791 Energy & Services..................... 8.7 51,867 Financial Services.................... 16.7 100,105 Food, Beverage & Tobacco.............. 6.2 37,185 Forest & Paper Products............... 1.3 7,522 Media & Entertainment................. 5.7 34,067 Medical Instruments & Supplies........ 1.1 6,606 Metals, Minerals & Mining............. 1.2 7,300 Retail................................ 2.9 17,392 Software & Services................... 6.3 37,669 Transportation........................ 5.4 32,064 Utilities............................. 2.7 16,259 ----- -------- Total common stocks..................... 95.3% $570,024 ===== ========
* Non-income producing during the period. S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $17,816 or 3.0% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). wFORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2000
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ ---------- -------- -------------- British Pounds (Buy) $ 812 $ 814 01/04/01 $ (2) Euro (Buy) 539 535 01/02/01 4 Euro (Buy) 1,064 1,065 01/04/01 (1) ----- $ 1 =====
______________________________________ 31 ______________________________________ HARTFORD STOCK HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 95.9% AEROSPACE & DEFENSE -- 2.5% *2,378 General Motors, Class H................. $ 54,701 2,349 United Technologies Corp................ 184,706 ---------- 239,407 ---------- BUSINESS SERVICES -- 0.3% +106 Interpublic Group Cos., Inc. (The)...... 4,490 79 Omnicom Group, Inc...................... 6,555 1,374 ServiceMaster Co. (The)................. 15,799 ---------- 26,844 ---------- CHEMICALS -- 2.8% 2,876 Dow Chemical Co. (The).................. 105,315 2,703 Pharmacia Corp.......................... 164,887 ---------- 270,202 ---------- COMMUNICATIONS -- 6.6% *219 Avaya, Inc.............................. 2,257 *50 COLT Telecom Group PLC.................. 1,073 *+2,864 Global Crossing, Ltd.................... 40,985 1,663 Lucent Technologies, Inc................ 22,453 +2,493 Nortel Networks Holdings Corp........... 79,938 3,472 SBC Communications, Inc................. 165,807 *1,967 Tellabs, Inc............................ 111,141 2,440 Verizon Communications, Inc............. 122,312 *6,737 WorldCom, Inc........................... 94,734 ---------- 640,700 ---------- COMPUTERS & OFFICE EQUIPMENT -- 7.4% *5,816 Cisco Systems, Inc...................... 222,462 *3,194 Dell Computer Corp...................... 55,702 *1,285 EMC Corp................................ 85,466 1,812 Hewlett-Packard Co...................... 57,182 1,652 International Business Machines Corp.... 140,395 580 Minnesota Mining & Manufacturing Co..... 69,914 *2,565 Solectron Corp.......................... 86,947 ---------- 718,068 ---------- CONSUMER NON-DURABLES -- 6.3% 649 Cardinal Health, Inc.................... 64,617 808 Gillette Co. (The)...................... 29,189 1,689 Procter & Gamble Co. (The).............. 132,465 *4,246 Safeway, Inc............................ 265,400 2,135 Tyco International Ltd.................. 118,481 ---------- 610,152 ---------- DRUGS -- 9.9% 2,782 Abbott Laboratories..................... 134,768 3,253 American Home Products Corp............. 206,728 2,182 Bristol-Myers Squibb Co................. 161,332 218 Eli Lilly & Co.......................... 20,297 *752 Immunex Corp............................ 30,534 2,134 Merck & Co., Inc........................ 199,758 4,048 Pfizer, Inc............................. 186,205 447 Schering-Plough Corp.................... 25,367 ---------- 964,989 ---------- ELECTRICAL EQUIPMENT -- 0.8% *2,122 Teradyne, Inc........................... 79,041 ---------- MARKET SHARES VALUE - --------- ----------
MARKET SHARES VALUE - --------- ---------- ELECTRONICS -- 5.8% *50 Broadcom Corp., Class A................. $ 4,200 1,167 Emerson Electric Co..................... 92,006 3,370 General Electric Co..................... 161,535 5,764 Intel Corp.............................. 173,283 *733 JDS Uniphase Corp....................... 30,540 *1,946 Micron Technology, Inc.................. 69,087 *573 Vitesse Semiconductor Corp.............. 31,677 ---------- 562,328 ---------- ENERGY & SERVICES -- 6.9% 1,093 Conoco, Inc., Class B................... 31,617 3,782 ExxonMobil Corp......................... 328,754 317 Royal Dutch Petroleum Co., NY Shares, ADR.................................... 19,168 1,339 Schlumberger Ltd........................ 107,060 2,445 Texaco, Inc............................. 151,889 +325 Transocean Sedco Forex, Inc............. 14,950 495 Unocal Corp............................. 19,150 ---------- 672,588 ---------- FINANCIAL SERVICES -- 15.4% 2,209 American International Group, Inc....... 217,771 278 Chase Manhattan Corp. (The)............. 12,641 7,467 Citigroup, Inc.......................... 381,309 2,026 Fleet Boston Financial Corp............. 76,087 3,112 Franklin Resources, Inc................. 118,567 560 Goldman Sachs Group, Inc. (The)......... 59,874 1,952 Marsh & McLennan Cos., Inc.............. 228,431 2,349 Merrill Lynch & Co., Inc................ 160,152 211 Morgan Stanley Dean Witter & Co......... 16,722 1,809 State Street Corp....................... 224,708 ---------- 1,496,262 ---------- FOOD, BEVERAGE & TOBACCO -- 4.4% 1,108 Anheuser-Busch Cos., Inc................ 50,400 2,299 Coca-Cola Co. (The)..................... 140,101 1,002 General Mills, Inc...................... 44,661 3,836 PepsiCo, Inc............................ 190,097 ---------- 425,259 ---------- FOREST & PAPER PRODUCTS -- 3.0% 2,712 Kimberly-Clark Corp..................... 191,718 2,057 Weyerhaeuser Co......................... 104,398 ---------- 296,116 ---------- HEALTH SERVICES -- 0.3% 745 HCA - The Healthcare Co................. 32,787 ---------- MEDIA & ENTERTAINMENT -- 3.3% *6,914 AT&T - Liberty Media Group, Class A..... 93,777 3,232 Gannett Co., Inc........................ 203,824 738 Walt Disney Co. (The)................... 21,367 ---------- 318,968 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.0% 435 Baxter International, Inc............... 38,416 1,546 Johnson & Johnson Co.................... 162,395 ---------- 200,811 ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 32 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- METALS, MINERALS & MINING -- 1.5% 1,899 Alcoa, Inc.............................. $ 63,613 1,440 Illinois Tool Works, Inc................ 85,770 ---------- 149,383 ---------- REAL ESTATE -- 0.1% *6 Security Capital Group, Inc., Class A................................ 6,386 ---------- RETAIL -- 7.0% 2,232 CVS Corp................................ 133,769 2,994 Home Depot, Inc. (The).................. 136,807 6,055 McDonald's Corp......................... 205,884 +4,002 Wal-Mart Stores, Inc.................... 212,590 ---------- 689,050 ---------- SOFTWARE & SERVICES -- 6.3% *3,774 America Online, Inc..................... 131,321 2,408 Automatic Data Processing, Inc.......... 152,450 *1,438 China Unicom Ltd., ADR.................. 21,216 *+862 Computer Sciences Corp.................. 51,852 *5,749 Microsoft Corp.......................... 249,372 *56 VERITAS Software Corp................... 4,865 ---------- 611,076 ---------- TRANSPORTATION -- 0.6% 897 Boeing Co. (The)........................ 59,182 ---------- UTILITIES -- 2.7% 738 Duke Energy Corp........................ 62,949 +600 El Paso Energy Corp..................... 42,975 633 Exelon Corp............................. 44,443 1,223 FPL Group, Inc.......................... 87,743 854 Waste Management, Inc................... 23,685 ---------- 261,795... ---------- Total common stocks (cost $7,847,254)... $9,331,394 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 2.2% REPURCHASE AGREEMENT $218,369 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 218,369 ---------- Total short-term securities (cost $218,369)......................... $ 218,369 ==========
MARKET VALUE ----------
STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, net of securities loaned........................................... $9,470,402 Investment in securities loaned (See Note 2(i))... 79,361 ---------- Total investment in securities, at value (total cost $8,065,623) - see accompanying portfolio.... $9,549,763 Receivable for Fund shares sold................... 668,913 Receivable for dividends and interest............. 6,899 Security lending collateral (See Note 2(i))....... 82,483 Cash and other assets............................. 25 ---------- Total assets...................................... 10,308,083 ---------- LIABILITIES Payable for securities purchased.................. 483,481 Payable for Fund shares redeemed.................. 15,736 Security lending collateral payable to brokers (See Note 2(i)).................................. 82,483 Other liabilities................................. 288 ---------- Total liabilities................................. 581,988 ---------- Net assets........................................ $9,726,095 ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 3,000,000 shares authorized; 1,654,065 shares outstanding...................................... $ 165,407 Capital surplus................................... 7,421,487 Accumulated undistributed net investment income... 1 Accumulated undistributed net realized gain on investments...................................... 655,060 Unrealized appreciation of investments............ 1,484,140 ---------- Net assets........................................ $9,726,095 ==========
Class IA Net asset value per share ($9,590,018 DIVIDED BY 1,630,918 shares outstanding) (2,250,000 shares authorized)...................................... $5.88 ===== Class IB Net asset value per share ($136,077 DIVIDED BY 23,147 shares outstanding) (750,000 shares authorized)...................................... $5.88 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). ______________________________________ 33 ______________________________________ HARTFORD GROWTH AND INCOME HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- --------- COMMON STOCKS -- 98.2% AEROSPACE & DEFENSE -- 2.2% *49 General Motors, Class H................. $ 1,137 94 United Technologies Corp................ 7,375 -------- 8,512 -------- CHEMICALS -- 2.5% 36 du Pont (E.I.) de Nemours & Co.......... 1,739 131 Pharmacia Corp.......................... 7,998 -------- 9,737 -------- COMMUNICATIONS -- 6.8% *v33 Echostar Communications, Class A........ 748 *71 Exodus Communications, Inc.............. 1,426 *72 Global Crossing Ltd..................... 1,033 61 Lucent Technologies, Inc................ 825 80 Nortel Netwoks Holdings Corp............ 2,549 *101 Qwest Communications International...... 4,141 64 SBC Communications, Inc................. 3,055 *90 Sonus Networks, Inc..................... 2,267 *52 Tekelec................................. 1,563 133 Verizon Communications, Inc............. 6,672 *188 Worldcom, Inc........................... 2,639 -------- 26,918 -------- COMPUTERS & OFFICE EQUIPMENT -- 7.4% *275 Cisco Systems, Inc...................... 10,511 *236 Dell Computer Corp...................... 4,120 *55 EMC Corp................................ 3,684 45 Hewlett-Packard Co...................... 1,420 90 International Business Machines Corp.... 7,676 *58 Solectron Corp.......................... 1,980 -------- 29,391 -------- CONSUMER DURABLES -- 0.3% 22 Corning, Inc............................ 1,157 -------- CONSUMER NON-DURABLES -- 4.1% 42 Eastman Kodak Co........................ 1,646 58 Procter & Gamble Co. (The).............. 4,549 *53 Safeway, Inc............................ 3,331 122 Tyco International Ltd.................. 6,743 -------- 16,269 -------- DRUGS -- 9.5% 111 Abbott Laboratories..................... 5,377 56 American Home Products Corp............. 3,552 55 Eli Lilly & Co.......................... 5,072 *20 Forest Laboratories, Inc................ 2,697 *50 Genzyme Corp............................ 4,452 *60 Immunex Corp............................ 2,421 90 Merck & Co., Inc........................ 8,464 61 Mylan Laboratories...................... 1,526 81 Pfizer, Inc............................. 3,735 -------- 37,296 -------- ELECTRICAL EQUIPMENT -- 0.3% *33 Teradyne, Inc........................... 1,211 -------- ELECTRONICS -- 6.3% *36 Advanced Micro Devices, Inc............. 496 MARKET SHARES VALUE - --------- ---------
ELECTRONICS -- (CONTINUED)
MARKET SHARES VALUE - --------- --------- 24 Eaton Corp.............................. $ 1,812 278 General Electric Co..................... 13,346 175 Intel Corp.............................. 5,261 *32 JDS Uniphase Corp....................... 1,321 *79 Micron Technology, Inc.................. 2,812 -------- 25,048 -------- ENERGY & SERVICES -- 7.6% 45 Anadarko Petroleum Corp................. 3,222 30 Chevron Corp............................ 2,567 120 Conoco, Inc., Class B................... 3,473 128 ExxonMobil Corp......................... 11,102 58 Helmerich & Payne, Inc.................. 2,545 *72 Rowan Companies, Inc.................... 1,936 23 Schlumberger Ltd........................ 1,807 23 Texaco, Inc............................. 1,416 54 Unocal Corp............................. 2,085 -------- 30,153 -------- FINANCIAL SERVICES -- 17.7% 51 AMBAC Financial Group, Inc.............. 2,965 24 American General Corp................... 1,972 66 American International Group, Inc....... 6,525 37 CIGNA Corp.............................. 4,935 196 Citigroup, Inc.......................... 9,984 52 Fannie Mae.............................. 4,502 35 Freddie Mac............................. 2,424 30 Goldman Sachs Group, Inc., (The)........ 3,240 157 KeyCorp................................. 4,390 51 Lehman Brothers Holdings, Inc........... 3,442 34 Marsh & Mclennan Cos., Inc.............. 4,001 71 Merrill Lynch & Co., Inc................ 4,828 38 Morgan Stanley Dean Witter & Co......... 3,019 214 Pacific Century Financial Corp.......... 3,776 117 UnionBanCal Corp........................ 2,815 62 Wachovia Corp........................... 3,598 64 Washington Mutual, Inc.................. 3,369 -------- 69,785 -------- FOOD, BEVERAGE & TOBACCO -- 4.9% 21 Coca-Cola Co. (The)..................... 1,249 39 Pepsi Bottling Group, Inc............... 1,542 163 PepsiCo, Inc............................ 8,074 141 Philip Morris Cos., Inc................. 6,191 49 R.J. Reynolds Tobacco Holdings, Inc..... 2,403 -------- 19,459 -------- FOREST & PAPER PRODUCTS -- 1.9% 83 Kimberly-Clark Corp..................... 5,888 33 Temple-Inland, Inc...................... 1,743 -------- 7,631 -------- HEALTH SERVICES -- 0.7% *58 Tenet Healthcare Corp................... 2,564 -------- MACHINERY -- 1.2% *38 Applied Materials, Inc.................. 1,432 30 Black & Decker Corp..................... 1,174
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 34 ______________________________________
MARKET SHARES VALUE - --------- ---------
COMMON STOCKS -- (CONTINUED) MACHINERY -- (CONTINUED)
MARKET SHARES VALUE - --------- --------- 101 Pall Corp............................... $ 2,146 -------- 4,752 -------- MEDIA & ENTERTAINMENT -- 2.2% *238 AT&T - Liberty Media Group, Class A..... 3,231 *42 Comcast Corp., Class A.................. 1,762 58 Gannett Co., Inc........................ 3,626 -------- 8,619 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.6% 91 Becton, Dickinson & Co.................. 3,140 31 Johnson & Johnson Co.................... 3,257 -------- 6,397 -------- METALS, MINERALS & MINING -- 1.3% 36 Alcoa, Inc.............................. 1,193 108 Engelhard Corp.......................... 2,198 205 Freeport-McMoRan Copper & Gold, Inc., Class A................................. 1,692 -------- 5,083 -------- RETAIL -- 4.3% *93 Bed Bath & Beyond, Inc.................. 2,088 34 Home Depot, Inc. (The).................. 1,556 *88 Kroger Co. (The)........................ 2,371 106 Target Corp............................. 3,428 138 Wal-Mart Stores, Inc.................... 7,337 -------- 16,780 -------- SOFTWARE & SERVICES -- 8.3% *114 America Online, Inc..................... 3,978 51 First Data Corp......................... 2,661 118 IMS Health, Inc......................... 3,181 *249 Microsoft Corp.......................... 10,786 *133 Oracle Corp............................. 3,854 *90 Rational Software Corp.................. 3,512 *101 Sun Microsystems, Inc................... 2,810 *26 VeriSign, Inc........................... 1,955 -------- 32,737 -------- TRANSPORTATION -- 2.8% 68 Boeing Co. (The)........................ 4,468 v102 Ford Motor Co........................... 2,393 45 Honeywell International, Inc............ 2,148 69 USFreightways Corp...................... 2,066 -------- 11,075 -------- UTILITIES -- 4.3% *80 Calpine Corp............................ 3,614 51 El Paso Energy Corp..................... 3,624 99 Exelon Corp............................. 6,953 MARKET SHARES VALUE - --------- ---------
UTILITIES -- (CONTINUED)
MARKET SHARES VALUE - --------- --------- 59 Pinnacle West Capital Corp.............. $ 2,819 -------- 17,010 -------- Total common stocks..................... $387,584 ======== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 1.6% REPURCHASE AGREEMENT $6,199 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01............... $ 6,199 -------- Total short-term securities............. $ 6,199 ========
DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $402,192)..... 98.2% $387,584 Total short-term securities (cost $6,199)................................ 1.6 6,199 ----- -------- Total investment in securities (total cost $408,391)......................... 99.8 393,783 Cash, receivables and other assets...... 0.2 1,153 Payable for Fund shares redeemed........ (0.0) (71) Other liabilities....................... (0.0) (62) ----- -------- Net assets.............................. 100.0% $394,803 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 297,725 shares outstanding.... $ 298 Capital surplus................................... 399,669 Accumulated undistributed net realized gain on investments...................................... 9,433 Unrealized depreciation of investments............ (14,608) Unrealized depreciation of futures contracts ++... (135) Unrealized appreciation of option contracts written (See Note 2(f)) V........................ 146 -------- Net assets........................................ $394,803 ========
Class IA Net asset value per share ($379,905 DIVIDED BY 286,463 shares outstanding) (600,000 shares authorized)...................................... $1.33 ===== Class IB Net asset value per share ($14,898 DIVIDED BY 11,262 shares outstanding) (200,000 shares authorized)...................................... $1.32 =====
* Non-income producing during the period. v Underlying security for an option contract. ++ The Fund had 14 Standard & Poor's 500 March 2001 Futures contracts open as of December 31, 2000. These contracts had a value of $4,673 as of December 31, 2000 and were collateralized by $263 of cash. (Number of contracts not in $000's) V OPTION CONTRACTS AT DECEMBER 31, 2000
NUMBER OF EXERCISE EXPIRATION MARKET DESCRIPTION CONTRACTS PRICE DATE VALUE - ----------- ---------- -------- ------------ -------- Echostar Communications Corp. Class A (Written Call) p-- $30.0 January 2001 $(21) Ford Motor Co. (Written Call) 1 25.0 January 2001 (38) ----- ---- Total option contracts written (total net premium received $205) 1 $(59) ===== ====
The securities underlying these option contracts are included in the Fund's Statement of Net Assets. p Due to the presentation of the financial statements in thousands, the number of contracts rounds to zero. ______________________________________ 35 ______________________________________ HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 97.2% AEROSPACE & DEFENSE -- 1.7% 680 United Technologies Corp................ $ 53,426 ---------- CHEMICALS -- 4.0% +165 Akzo Nobel N.V., ADR.................... 8,808 91 Avery Dennison Corp..................... 4,999 451 du Pont (E.I.) de Nemours & Co.......... 21,785 106 Eastman Chemical Co..................... 5,153 1,270 Pharmacia Corp.......................... 77,498 304 Rohm & Haas Co.......................... 11,054 ---------- 129,297 ---------- COMMUNICATIONS -- 7.0% 1,176 AT&T Corp............................... 20,363 p0 Avaya, Inc.............................. p0 +576 Broadwing, Inc.......................... 13,131 v336 Lucent Technologies, Inc................ 4,529 230 Nortel Networks Holdings Corp........... 7,379 *1,001 Qwest Communications International...... 41,048 707 SBC Communications, Inc................. 33,746 2,192 Verizon Communications, Inc............. 109,849 ---------- 230,045 ---------- COMPUTERS & OFFICE EQUIPMENT -- 1.9% 318 Compaq Computer Corp.................... 4,792 v358 Hewlett-Packard Co...................... 11,306 302 International Business Machines Corp.... 25,696 173 Minnesota Mining & Manufacturing Co..... 20,847 ---------- 62,641 ---------- CONSUMER DURABLES -- 0.3% 189 Corning, Inc............................ 9,982 ---------- CONSUMER NON-DURABLES -- 3.5% 209 Eastman Kodak Co........................ 8,237 596 McKesson HBOC, Inc...................... 21,394 1,047 Procter & Gamble Co. (The).............. 82,148 ---------- 111,779 ---------- DRUGS -- 6.9% 525 Abbott Laboratories..................... 25,430 672 American Home Products Corp............. 42,718 +867 AstraZeneca Group PLC, ADR.............. 44,666 323 Bristol-Myers Squibb Co................. 23,852 374 Eli Lilly & Co.......................... 34,759 525 Merck & Co., Inc........................ 49,144 *+108 Syngenta AG, ADR........................ 1,179 ---------- 221,748 ---------- ELECTRONICS -- 4.1% 274 Eaton Corp.............................. 20,579 2,095 General Electric Co..................... 100,423 383 Intel Corp.............................. 11,520 ---------- 132,522 ---------- ENERGY & SERVICES -- 10.3% 920 Ashland, Inc............................ 33,008 384 Chevron Corp............................ 32,449 1,817 Conoco, Inc., Class B................... 52,589 354 Enron Corp.............................. 29,435 776 ExxonMobil Corp......................... 67,479 2,604 Suncor Energy, Inc...................... 66,877 1,263 Unocal Corp............................. 48,851 ---------- 330,688 ---------- FINANCIAL SERVICES -- 20.8% 355 CIGNA Corp.............................. 46,967 MARKET SHARES VALUE - --------- ----------
FINANCIAL SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 1,869 Citigroup, Inc.......................... $ 95,449 645 Fannie Mae.............................. 55,954 218 Goldman Sachs Group, Inc. (The)......... 23,302 579 Marsh & Mclennan Cos., Inc.............. 67,702 375 MBIA, Inc............................... 27,797 410 Merrill Lynch & Co., Inc................ 27,977 380 Morgan Stanley Dean Witter & Co......... 30,075 1,376 Pacific Century Financial Corp.......... 24,333 +1,541 People's Bank........................... 39,871 2,398 U.S. Bancorp............................ 69,986 522 UnionBanCal Corp........................ 12,565 953 Wachovia Corp........................... 55,399 1,174 Washington Mutual, Inc.................. 62,301 347 XL Capital Ltd., Class A................ 30,337 ---------- 670,015 ---------- FOOD, BEVERAGE & TOBACCO -- 7.9% 985 McCormick & Co., Inc.................... 35,536 984 PepsiCo, Inc............................ 48,745 1,332 Philip Morris Cos., Inc................. 58,621 +597 Reynolds (R.J.) Tobacco Holdings, Inc.................................... 29,118 3,140 Sara Lee Corp........................... 77,129 154 UST, Inc................................ 4,316 ---------- 253,465 ---------- FOREST & PAPER PRODUCTS -- 3.2% 853 Abitibi-Consolidated, Inc............... 7,833 155 Bowater, Inc............................ 8,721 694 Kimberly-Clark Corp..................... 49,031 339 Temple-Inland, Inc...................... 18,195 367 Weyerhaeuser Co......................... 18,625 ---------- 102,405 ---------- MACHINERY -- 0.5% 338 Caterpillar, Inc........................ 15,992 ---------- MEDIA & ENTERTAINMENT -- 1.7% 609 Gannett Co., Inc........................ 38,392 +285 Knight-Ridder, Inc...................... 16,215 ---------- 54,607 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.0% 748 Baxter International, Inc............... 66,058 ---------- METALS, MINERALS & MINING -- 2.3% 827 Alcoa, Inc.............................. 27,701 431 Lockheed Martin Corp.................... 14,639 571 Phelps Dodge Corp....................... 31,847 ---------- 74,187 ---------- REAL ESTATE -- 2.6% 601 Archstone Communities Trust (REIT)...... 15,478 992 Equity Office Properties Trust (REIT)... 32,377 376 Kimco Realty Corp. (REIT)............... 16,601 662 Liberty Property Trust (REIT)........... 18,917 10 Spieker Properties, Inc. (REIT)......... 501 ---------- 83,874 ---------- RETAIL -- 2.2% 1,358 Family Dollar Stores, Inc............... 29,106 1,295 Target Corp............................. 41,748 ---------- 70,854 ---------- SOFTWARE & SERVICES -- 3.0% 569 Electronic Data Systems Corp............ 32,866 694 First Data Corp......................... 36,576
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 36 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED) SOFTWARE & SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- *627 Microsoft Corp.......................... $ 27,179 ---------- 96,621 ---------- TRANSPORTATION -- 3.7% 631 Boeing Co. (The)........................ 41,646 996 Ford Motor Co........................... 23,334 612 Genuine Parts Co........................ 16,027 372 Honeywell International, Inc............ 17,577 186 TRW, Inc................................ 7,211 +497 USFreightways Corp...................... 14,961 ---------- 120,756 ---------- UTILITIES -- 7.6% 257 Dominion Resources, Inc................. 17,239 +265 DQE, Inc................................ 8,679 243 Duke Energy Corp........................ 20,724 +694 El Paso Energy Corp..................... 49,715 1,055 Exelon Corp............................. 74,037 349 FPL Group, Inc.......................... 25,069 327 Montana Power Co. (The)................. 6,791 735 Pinnacle West Capital Corp.............. 35,004 +243 UtiliCorp United, Inc................... 7,528 ---------- 244,786 ---------- Total common stocks..................... $3,135,748 ========== CONVERTIBLE PREFERRED STOCKS -- 0.4% MEDIA & ENTERTAINMENT S5,334 American Tower Corp. 6.25% due 10/15/09.................... $ 9,008 ---------- UTILITIES 65 Texas Utilities Co. 9.25% due 08/16/02.................... 3,286 ---------- Total convertible preferred stocks...... $ 12,294 ========== PRINCIPAL AMOUNT - --------- EQUITY LINKED NOTES -- 0.4% MEDIA & ENTERTAINMENT $ 160 Tribune Co. 2.00% due 05/15/29.................... $ 13,880 ---------- Total equity linked notes............... $ 13,880 ========== SHORT-TERM SECURITIES -- 2.2% REPURCHASE AGREEMENT 72,159 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01................... $ 72,159 ---------- Total short-term securities............. $ 72,159 ==========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $2,645,146)... 97.2% $3,135,748 Total convertible preferred stocks (cost $8,641)................................ 0.4 12,294 Total equity linked notes (cost $27,921)............................... 0.4 13,880 Total short-term securities (cost $72,159)............................... 2.2 72,159 ----- ---------- Total investment in securities (total cost $2,753,867)....................... 100.2 3,234,081 Cash, receivables and other assets...... 2.1 67,721 Securities lending collateral (See Note 2(i))............................. 4.0 130,458 Payable for securities purchased........ (1.7) (56,725) Payable for Fund shares redeemed........ (0.6) (19,656) Securities lending collateral payable to brokers (See Note 2(i))................ (4.0) (130,458) Other liabilities....................... (0.0) (149) ----- ---------- Net assets.............................. 100.0% $3,225,272 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 4,000,000 shares authorized; 1,518,766 shares outstanding...................................... $ 151,877 Capital surplus................................... 2,399,327 Accumulated undistributed net investment income... 1,732 Accumulated undistributed net realized gain on investments...................................... 192,018 Unrealized appreciation of investments............ 480,214 Unrealized depreciation of other assets and liabilities in foreign currencies................ (1) Unrealized appreciation of option contracts written (See Note 2(f)) V........................ 105 ---------- Net assets........................................ $3,225,272 ==========
Class IA Net asset value per share ($3,189,857 DIVIDED BY 1,502,093 shares outstanding) (3,500,000 shares authorized)...................................... $2.12 ===== Class IB Net asset value per share ($35,415 DIVIDED BY 16,673 shares outstanding) (500,000 shares authorized)...................................... $2.12 =====
* Non-income producing during the period. S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $9,008 or 0.3% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). v Underlying security for an option contract. V OPTION CONTRACTS AT DECEMBER 31, 2000
NUMBER OF EXERCISE EXPIRATION MARKET DESCRIPTION CONTRACTS PRICE DATE VALUE - ----------- ---------- -------- ------------- -------- Hewlett-Packard Co. (Written Call) p-- $37.5 February 2001 $(61) Lucent Technologies, Inc. (Written Call) 1 20.0 January 2001 (10) ----- ---- Total option contracts written (total net premium received $176) 1 $(71) ===== ====
The securities underlying these option contracts are included in the Fund's Statement of Net Assets. p Due to the presentation of the financial statements in thousands, the shares, market value and number of contracts rounds to zero. ______________________________________ 37 ______________________________________ HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ---------- COMMON STOCKS -- 99.7% AEROSPACE & DEFENSE -- 0.3% 96 United Technologies Corp................ $ 7,514 ---------- APPAREL & TEXTILE -- 0.1% +11 Liz Claiborne, Inc...................... 441 23 V. F. Corp.............................. 840 ---------- 1,281 ---------- BUSINESS SERVICES -- 0.7% *149 Cendant Corp............................ 1,432 *34 Computer Sciences Corp.................. 2,070 *32 Convergys Corp.......................... 1,427 29 Equifax, Inc............................ 828 *+15 Fluor Corp.............................. 511 63 Interpublic Group of Cos., Inc. (The)... 2,674 36 Omnicom Group, Inc...................... 2,998 76 Paychex, Inc............................ 3,696 +10 PerkinElmer, Inc........................ 1,066 *36 Robert Half International, Inc.......... 962 ---------- 17,664 ---------- CHEMICALS -- 2.1% 47 Air Products & Chemicals, Inc........... 1,921 22 Avery Dennison Corp..................... 1,233 139 Dow Chemical Co. (The).................. 5,074 213 du Pont (E.I.) de Nemours & Co.......... 10,286 16 Eastman Chemical Co..................... 768 *6 FMC Corp................................ 445 215 Gillette Co. (The)...................... 7,772 +10 Great Lakes Chemical Corp............... 383 20 International Flavors & Fragrances, Inc..................................... 403 263 Pharmacia Corp.......................... 16,062 34 PPG Industries, Inc..................... 1,596 32 Praxair, Inc............................ 1,434 45 Rohm & Haas Co.......................... 1,627 28 Union Carbide Corp...................... 1,487 ---------- 50,491 ---------- COMMUNICATIONS -- 7.9% *158 ADC Telecommunications, Inc............. 2,857 64 ALLTEL Corp............................. 3,989 *17 Andrew Corp............................. 359 766 AT&T Corp............................... 13,267 *57 Avaya, Inc.............................. 584 381 BellSouth Corp.......................... 15,615 29 CenturyTel, Inc......................... 1,030 *34 Comverse Technology, Inc................ 3,656 *+181 Global Crossing Ltd..................... 2,589 682 Lucent Technologies, Inc................ 9,204 *65 Network Appliance, Inc.................. 4,144 *+156 NEXTEL Communications, Inc., Class A.... 3,850 632 Nortel Netwoks Holdings Corp............ 20,261 *153 QUALCOMM, Inc........................... 12,541 *338 Qwest Communicaiotns International...... 13,867 691 SBC Communications, Inc................. 33,005 33 Scientific-Atlanta, Inc................. 1,071 +181 Sprint Corp............................. 3,669 *190 Sprint PCS Group........................ 3,889 *84 Tellabs, Inc............................ 4,733 MARKET SHARES VALUE - --------- ----------
COMMUNICATIONS -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 551 Verizon Communications, Inc............. $ 27,625 *588 Worldcom, Inc........................... 8,267 ---------- 190,072 ---------- COMPUTERS & OFFICE EQUIPMENT -- 7.1% *66 Apple Computer, Inc..................... 987 *39 Chiron Corp............................. 1,739 *1,469 Cisco Systems, Inc...................... 56,185 347 Compaq Computer Corp.................... 5,224 *528 Dell Computer Corp...................... 9,210 *447 EMC Corp................................ 29,706 *66 Gateway, Inc............................ 1,188 404 Hewlett-Packard Co...................... 12,745 358 International Business Machines Corp.... 30,446 *+26 Lexmark International, Inc.............. 1,153 81 Minnesota Mining & Manufacturing Co..... 9,714 *116 Palm, Inc............................... 3,270 52 Pitney Bowes, Inc....................... 1,708 *19 Qlogic Corp............................. 1,440 *130 Solectron Corp.......................... 4,404 30 Symbol Technologies, Inc................ 1,076 ---------- 170,195 ---------- CONSTRUCTION -- 0.2% 12 Centex Corp............................. 451 90 Halliburton Co.......................... 3,275 9 Kaufman & Broad Home Corp............... 295 12 McDermott International, Inc............ 132 8 Pulte Corp.............................. 348 ---------- 4,501 ---------- CONSUMER DURABLES -- 0.6% 188 Corning, Inc............................ 9,907 19 Grainger (W.W.), Inc.................... 701 18 Johnson Controls, Inc................... 914 40 Leggett & Platt, Inc.................... 758 54 Newell Rubbermaid, Inc.................. 1,238 ---------- 13,518 ---------- CONSUMER NON-DURABLES -- 3.6% +11 Alberto-Culver Co., Class B............. 487 49 Avon Products, Inc...................... 2,324 14 Brown-Forman Corp., Class B............. 933 57 Cardinal Health, Inc.................... 5,673 48 Clorox Co. (The)........................ 1,710 117 Colgate-Palmolive Co.................... 7,539 61 Eastman Kodak Co........................ 2,415 26 Ecolab, Inc............................. 1,120 35 Hasbro, Inc............................. 372 87 Mattel, Inc............................. 1,259 58 McKesson HBOC, Inc...................... 2,083 266 Procter & Gamble Co. (The).............. 20,874 *102 Safeway, Inc............................ 6,391 27 SuperValu, Inc.......................... 373 137 SYSCO Corp.............................. 4,097 30 Tiffany & Co............................ 942 357 Tyco International Ltd.................. 19,801
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 38 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED) CONSUMER NON-DURABLES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- +117 Unilever N.V............................ $ 7,348 136 Xerox Corp.............................. 628 ---------- 86,369 ---------- CONSUMER SERVICES -- 0.0% 19 H&R Block, Inc.......................... 774 12 Ryder System, Inc....................... 201 ---------- 975 ---------- DRUGS -- 9.4% 316 Abbott Laboratories..................... 15,294 *48 ALZA Corp............................... 2,051 268 American Home Products Corp............. 17,003 *211 Amgen, Inc.............................. 13,479 399 Bristol-Myers Squibb Co................. 29,521 230 Eli Lilly & Co.......................... 21,419 *18 Forest Laboratories, Inc................ 2,368 *43 MedImmune, Inc.......................... 2,051 471 Merck & Co., Inc........................ 44,082 1,288 Pfizer, Inc............................. 59,254 298 Schering-Plough Corp.................... 16,939 +16 Sigma-Aldrich Corp...................... 622 *21 Watson Pharmaceuticals, Inc............. 1,076 ---------- 225,159 ---------- ELECTRICAL EQUIPMENT -- 0.8% *93 Agilent Technologies, Inc............... 5,065 27 Allergan, Inc........................... 2,597 *43 Applera Corp-Applied Biosystem.......... 4,041 29 Danaher Corp............................ 1,980 *38 KLA-Tencor Corp......................... 1,279 9 Millipore Corp.......................... 595 19 Tektronix, Inc.......................... 650 *36 Teradyne, Inc........................... 1,325 *37 Thermo Electron Corp.................... 1,092 ---------- 18,624 ---------- ELECTRONICS -- 9.3% *20 Adaptec, Inc............................ 206 *64 Advanced Micro Devices, Inc............. 885 *81 Altera Corp............................. 2,129 *40 American Power Conversion............... 491 *73 Analog Devices, Inc..................... 3,738 *61 Applied Micro Circuits Corp............. 4,563 *+48 Broadcom Corp., Class A................. 4,024 *46 Conexant Systems, Inc................... 713 14 Eaton Corp.............................. 1,078 87 Emerson Electric Co..................... 6,874 2,023 General Electric Co..................... 96,980 1,374 Intel Corp.............................. 41,304 *196 JDS Uniphase Corp....................... 8,179 65 Linear Technology Corp.................. 2,988 *65 LSI Logic Corp.......................... 1,114 *58 Maxim Integrated Products, Inc.......... 2,773 16 Maytag Corp............................. 507 *116 Micron Technology, Inc.................. 4,112 +40 Molex, Inc.............................. 1,418 MARKET SHARES VALUE - --------- ----------
ELECTRONICS -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 446 Motorola, Inc........................... $ 9,030 *36 National Semiconductor Corp............. 731 8 National Service Industries, Inc........ 214 *27 Novellus Systems, Inc................... 963 *+16 Power-One, Inc.......................... 629 +69 Raytheon Co., Class B................... 2,153 *31 Sanmina Corp............................ 2,368 353 Texas Instruments, Inc.................. 16,734 12 Thomas & Betts Corp..................... 191 *37 Vitesse Semiconductor Corp.............. 2,024 14 Whirlpool Corp.......................... 646 *67 Xilinx, Inc............................. 3,106 ---------- 222,865 ---------- ENERGY & SERVICES -- 6.8% 18 Amerada Hess Corp....................... 1,322 51 Anadarko Petroleum Corp................. 3,608 25 Apache Corp............................. 1,764 14 Ashland, Inc............................ 514 44 Burlington Resources, Inc............... 2,223 131 Chevron Corp............................ 11,073 44 Coastal Corp. (The)..................... 3,885 127 Conoco, Inc., Class B................... 3,682 26 Devon Energy Corp....................... 1,598 152 Enron Corp.............................. 12,662 24 EOG Resources, Inc...................... 1,307 710 ExxonMobil Corp......................... 61,701 19 Kerr-McGee Corp......................... 1,292 *30 Nabors Industries, Inc.................. 1,770 75 Occidental Petroleum Corp............... 1,827 52 Phillips Petroleum Co................... 2,965 *19 Rowan Companies, Inc.................... 518 438 Royal Dutch Petroleum Co................ 26,513 117 Schlumberger Ltd........................ 9,343 17 Sunoco, Inc............................. 583 112 Texaco, Inc............................. 6,977 30 Tosco Corp.............................. 1,004 43 Transocean Sedco Forex, Inc............. 1,975 50 Unocal Corp............................. 1,919 63 USX-Marathon Group...................... 1,757 ---------- 163,782 ---------- FINANCIAL SERVICES -- 17.8% *30 Aetna, Inc.............................. 1,231 56 AFLAC, Inc.............................. 4,062 155 Allstate Corp. (The).................... 6,735 22 AMBAC Financial Group, Inc.............. 1,297 272 American Express Co..................... 14,921 53 American General Corp................... 4,345 492 American International Group, Inc....... 48,463 77 AmSouth Bancorporation.................. 1,169 52 Aon Corp................................ 1,792 332 Bank of America Corp.................... 15,247 151 Bank of New York Co., Inc. (The)........ 8,339 236 Bank One Corp........................... 8,650 81 BB&T Corp............................... 3,024 22 Bear Stearns Cos., Inc. (The)........... 1,107
______________________________________ 39 ______________________________________ HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED) FINANCIAL SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 40 Capital One Financial Corp.............. $ 2,648 282 Charles Schwab Corp. (The).............. 8,015 42 Charter One Financial................... 1,223 268 Chase Manhattan Corp. (The)............. 12,155 37 Chubb Corp. (The)....................... 3,190 33 CIGNA Corp.............................. 4,314 34 Cincinnati Financial Corp............... 1,343 +54 CIT Group, Inc., Class A................ 1,077 1,026 Citigroup, Inc.......................... 52,407 32 Comerica, Inc........................... 1,904 +69 Conseco, Inc............................ 910 23 Countrywide Credit Industries, Inc...... 1,174 206 Fannie Mae.............................. 17,848 +94 Fifth Third Bancorp..................... 5,637 200 First Union Corp........................ 5,561 194 Firstar Corp............................ 4,512 185 Fleet Boston Financial Corp............. 6,944 50 Franklin Resources, Inc................. 1,894 142 Freddie Mac............................. 9,771 32 Golden West Financial Corp.............. 2,183 96 Household International, Inc............ 5,289 *34 Humana, Inc............................. 525 51 Huntington Bancshares, Inc.............. 829 22 Jefferson-Pilot Corp.................... 1,633 87 KeyCorp................................. 2,435 49 Lehman Brothers Holdings, Inc........... 3,292 41 Lincoln National Corp................... 1,923 21 Loews Corp.............................. 2,159 56 Marsh & Mclennan Cos., Inc.............. 6,565 21 MBIA, Inc............................... 1,544 174 MBNA Corp............................... 6,423 100 Mellon Financial Corp................... 4,903 165 Merrill Lynch & Co., Inc................ 11,272 *+161 MetLife, Inc............................ 5,639 23 MGIC Investment Corp.................... 1,521 33 Morgan (J.P.) & Co., Inc................ 5,407 229 Morgan Stanley Dean Witter & Co......... 18,138 124 National City Corp...................... 3,571 42 NI Source Finance Corp.................. 1,276 45 Northern Trust Corp..................... 3,697 28 Old Kent Financial Corp................. 1,236 59 PNC Financial Services Group............ 4,310 16 Progressive Corp. (The)................. 1,610 58 Providian Financial Corp................ 3,354 45 Regions Financial Corp.................. 1,233 27 Safeco Corp............................. 885 34 SouthTrust Corp......................... 1,397 46 St. Paul Companies, Inc. (The).......... 2,505 33 State Street Corp....................... 4,102 45 Stilwell Financial, Inc................. 1,791 36 Summit Bancorp.......................... 1,359 60 SunTrust Banks, Inc..................... 3,808 58 Synovus Financial Corp.................. 1,563 25 T. Rowe Price Group, Inc................ 1,044 27 Torchmark Corp.......................... 1,031 154 U.S. Bancorp............................ 4,489 +27 Union Planters Corp..................... 982 MARKET SHARES VALUE - --------- ----------
FINANCIAL SERVICES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 68 UnitedHealth Group, Inc................. $ 4,157 +51 UNUMProvident Corp...................... 1,371 33 USA Education, Inc...................... 2,273 42 Wachovia Corp........................... 2,416 110 Washington Mutual, Inc.................. 5,844 *13 Wellpoint Health Networks, Inc.......... 1,465 349 Wells Fargo & Co........................ 19,417 ---------- 426,775 ---------- FOOD, BEVERAGE & TOBACCO -- 4.4% 8 Adolph Coors Co., Class B............... 604 184 Anheuser-Busch Cos., Inc................ 8,383 129 Archer-Daniels-Midland Co............... 1,939 86 Campbell Soup Co........................ 2,975 506 Coca-Cola Co. (The)..................... 30,849 85 Coca-Cola Enterprises, Inc.............. 1,620 109 ConAgra Foods, Inc...................... 2,831 58 General Mills, Inc...................... 2,571 71 Heinz (HJ) Co........................... 3,357 +22 Hercules, Inc........................... 418 28 Hershey Foods Corp...................... 1,787 83 Kellogg Co.............................. 2,174 295 PepsiCo, Inc............................ 14,609 454 Philip Morris Co., Inc.................. 19,984 27 Quaker Oats Co. (The)................... 2,603 63 Ralston Purina Co....................... 1,638 170 Sara Lee Corp........................... 4,187 33 UST, Inc................................ 928 23 Wrigley, (Wm.) Jr. Co................... 2,211 ---------- 105,668 ---------- FOREST & PAPER PRODUCTS -- 0.8% 11 Bemis Co., Inc.......................... 365 +12 Boise Cascade Corp...................... 393 46 Georgia-Pacific Corp.................... 1,424 98 International Paper Co.................. 4,012 109 Kimberly-Clark Corp..................... 7,708 21 Louisiana-Pacific Corp.................. 215 21 Mead Corp. (The)........................ 647 *32 Pactiv Corp............................. 399 6 Potlatch Corp........................... 194 10 Temple-Inland, Inc...................... 535 21 Westvaco Corp........................... 599 45 Weyerhaeuser Co......................... 2,272 22 Willamette Industries, Inc.............. 1,050 ---------- 19,813 ---------- HEALTH SERVICES -- 0.6% 113 HCA - The Healthcare Co................. 4,962 *79 HEALTH SOUTH Corp....................... 1,283 34 King Pharmaceuticals, Inc............... 1,778 *21 Manor Care, Inc......................... 430 40 Stryker Corp............................ 2,024 *65 Tenet Healthcare Corp................... 2,876 ---------- 13,353 ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 40 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- HOTELS & GAMING -- 0.2% 75 Hilton Hotels Corp...................... $ 786 49 Marriott International, Inc., Class A................................. 2,071 40 Starwood Hotels & Resorts Worldwide..... 1,392 ---------- 4,249 ---------- MACHINERY -- 0.9% *166 Applied Materials, Inc.................. 6,326 68 Baker Hughes, Inc....................... 2,817 17 Black & Decker Corp..................... 655 4 Briggs & Stratton Corp.................. 194 70 Caterpillar, Inc........................ 3,324 +9 Cummins Engine Co., Inc................. 324 48 Deere & Co.............................. 2,193 41 Dover Corp.............................. 1,682 33 Ingersoll-Rand Co....................... 1,373 25 Pall Corp............................... 535 24 Parker-Hannifin Corp.................... 1,050 17 Stanley Works (The)..................... 545 12 Timken Co. (The)........................ 186 ---------- 21,204 ---------- MEDIA & ENTERTAINMENT -- 2.8% 13 American Greetings Corp................. 122 *119 Clear Channel Communications, Inc....... 5,783 *184 Comcast Corp., Class A.................. 7,695 25 Donnelly (R.R.) & Sons Co............... 670 18 Dow Jones & Company, Inc................ 1,013 54 Gannett Co., Inc........................ 3,393 15 Harcourt General, Inc................... 854 *24 Harrah's Entertainment, Inc............. 628 +15 Knight-Ridder, Inc...................... 851 40 McGraw-Hill Cos., Inc. (The)............ 2,342 +10 Meredith Corp........................... 331 33 New York Times Co. (The), Class A....... 1,333 271 Time Warner, Inc........................ 14,158 62 Tribune Co.............................. 2,610 *309 Viacom, Inc., Class B................... 14,440 426 Walt Disney Co. (The)................... 12,316 ---------- 68,539 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.5% 10 Bard (C.R.), Inc........................ 483 11 Bausch & Lomb, Inc...................... 440 60 Baxter International, Inc............... 5,303 52 Becton, Dickinson & Co.................. 1,791 *30 Biogen, Inc............................. 1,814 36 Biomet, Inc............................. 1,447 *83 Boston Scientific Corp.................. 1,133 63 Guidant Corp............................ 3,386 284 Johnson & Johnson Co.................... 29,825 245 Medtronic, Inc.......................... 14,811 *17 St. Jude Medical, Inc................... 1,061 ---------- 61,494 ---------- METALS, MINERALS & MINING -- 1.1% 66 Alcan Aluminum Ltd...................... 2,258 177 Alcoa, Inc.............................. 5,915 MARKET SHARES VALUE - --------- ----------
METALS, MINERALS & MINING -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 16 Allegheny Technologies, Inc............. $ 260 +6 Ball Corp............................... 267 81 Barrick Gold Corp....................... 1,325 19 Cooper Industries, Inc.................. 878 12 Crane Co................................ 350 26 Engelhard Corp.......................... 530 32 Fortune Brands, Inc..................... 949 *30 Freeport-McMoRan Copper & Gold, Inc., Class B................................. 259 54 Homestake Mining Co..................... 224 62 Illinois Tool Works, Inc................ 3,672 37 Inco Ltd................................ 619 88 Lockheed Martin Corp.................... 2,984 91 Masco Corp.............................. 2,341 34 Newmont Mining Corp..................... 584 16 Nucor Corp.............................. 630 16 Phelps Dodge Corp....................... 897 +67 Placer Dome, Inc........................ 642 12 Snap-On, Inc............................ 332 18 USX Corp................................ 326 21 Vulcan Materials Co..................... 987 17 Worthington Industries, Inc............. 141 ---------- 27,370 ---------- RESEARCH & TESTING FACILITIES -- 0.1% +33 Moody's Corp............................ 848 *+23 Quintiles Transnational Corp............ 491 ---------- 1,339 ---------- RETAIL -- 6.1% 86 Albertson's, Inc........................ 2,278 *+26 AutoZone, Inc........................... 738 *58 Bed Bath & Beyond, Inc.................. 1,293 *42 Best Buy Co., Inc....................... 1,249 42 Circuit City Stores Group............... 480 *23 Consolidated Stores Corp................ 241 *91 Costco Wholesale Corp................... 3,648 80 CVS Corp................................ 4,794 24 Darden Restaurants, Inc................. 557 19 Dillard's, Inc., Class A................ 220 67 Dollar General Corp..................... 1,269 *41 Federated Department Stores, Inc........ 1,445 174 Gap, Inc. (The)......................... 4,424 473 Home Depot, Inc. (The).................. 21,603 *98 Kmart Corp.............................. 523 *68 Kohl's Corp............................. 4,133 *168 Kroger Co. (The)........................ 4,549 87 Limited, Inc. (The)..................... 1,483 8 Longs Drug Store Corp................... 184 78 Lowe's Cos., Inc........................ 3,477 61 May Department Stores Co................ 1,989 268 McDonald's Corp......................... 9,106 +26 Nordstrom, Inc.......................... 478 *61 Office Depot, Inc....................... 432 53 Penney (J.C.) Co., Inc.................. 580 38 RadioShack Corp......................... 1,628 68 Sears Roebuck & Co...................... 2,371
______________________________________ 41 ______________________________________ HARTFORD INDEX HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED) RETAIL -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 33 Sherwin-Williams Co. (The).............. $ 859 *93 Staples, Inc............................ 1,095 *38 Starbucks Corp.......................... 1,690 183 Target Corp............................. 5,901 57 TJX Cos., Inc. (The).................... 1,594 *42 Toys R Us, Inc.......................... 693 *30 Tricon Global Restaurants, Inc.......... 984 912 Wal-Mart Stores, Inc.................... 48,445 207 Walgreen Co............................. 8,650 23 Wendy's International, Inc.............. 606 +28 Winn-Dixie Stores, Inc.................. 550 ---------- 146,239 ---------- RUBBER & PLASTICS PRODUCTS -- 0.2% 15 Cooper Tire & Rubber Co................. 157 32 Goodyear Tire & Rubber Co. (The)........ 738 55 NIKE, Inc., Class B..................... 3,082 *+12 Reebok International Ltd................ 317 *+17 Sealed Air Corp......................... 518 12 Tupperware Corp......................... 241 ---------- 5,053 ---------- SOFTWARE & SERVICES -- 7.0% 49 Adobe Systems, Inc...................... 2,857 *477 America Online, Inc..................... 16,590 +12 Autodesk, Inc........................... 318 129 Automatic Data Processing, Inc.......... 8,156 *50 BMC Software, Inc....................... 701 *55 BroadVision, Inc........................ 650 *37 Cabletron Systems, Inc.................. 564 *30 Ceridan Corp............................ 590 *+38 Citrix Systems, Inc..................... 848 119 Computer Associates International, Inc..................................... 2,313 *74 Compuware Corp.......................... 464 15 Deluxe Corp............................. 373 95 Electronic Data Systems Corp............ 5,510 81 First Data Corp......................... 4,252 60 IMS Health, Inc......................... 1,621 *42 Intuit, Inc............................. 1,660 *+17 Mercury Interactive Corp................ 1,489 *1,088 Microsoft Corp.......................... 47,209 *20 NCR Corp................................ 963 *67 Novell, Inc............................. 348 *1,143 Oracle Corp............................. 33,217 *55 Parametric Technology Corp.............. 744 *58 PeopleSoft, Inc......................... 2,164 *+25 Sapient Corp............................ 295 *88 Siebel Systems, Inc..................... 5,924 *657 Sun Microsystems, Inc................... 18,319 *64 Unisys Corp............................. 934 *+80 VERITAS Software Corp................... 6,965 *+114 Yahoo!, Inc............................. 3,428 ---------- 169,466 ---------- TRANSPORTATION -- 3.0% *31 AMR Corp................................ 1,207 181 Boeing Co. (The)........................ 11,974 MARKET SHARES VALUE - --------- ----------
TRANSPORTATION -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 18 Brunswick Corp.......................... $ 293 81 Burlington Northern Santa Fe Corp....... 2,282 119 Carnival Corp., Class A................. 3,679 44 CSX Corp................................ 1,147 +30 Dana Corp............................... 462 114 Delphi Automotive Systems Corp.......... 1,286 25 Delta Air Lines, Inc.................... 1,258 *58 FedEx Corp.............................. 2,325 383 Ford Motor Co........................... 8,971 41 General Dynamics Corp................... 3,178 115 General Motors Corp..................... 5,873 35 Genuine Parts Co........................ 928 21 Goodrich (B.F.) Co. (The)............... 755 62 Harley-Davidson, Inc.................... 2,461 163 Honeywell International, Inc............ 7,707 18 ITT Industries, Inc..................... 697 *12 Navistar International Corp............. 317 78 Norfolk Southern Corp................... 1,043 15 Northrop Grumman Corp................... 1,214 16 PACCAR, Inc............................. 771 37 Rockwell International Corp............. 1,782 *26 Sabre Group Corp........................ 1,139 102 Southwest Airlines Co................... 3,435 29 Textron, Inc............................ 1,353 25 TRW, Inc................................ 984 51 Union Pacific Corp...................... 2,568 *14 US Airways Group, Inc................... 557 27 Visteon Corp............................ 306 ---------- 71,952 ---------- UTILITIES -- 3.3% *94 AES Corp. (The)......................... 5,185 23 Allegheny Energy, Inc................... 1,089 *40 Allied Waste Industries, Inc............ 583 +28 Ameren Corp............................. 1,294 66 American Electric Power Co., Inc........ 3,057 *57 Calpine Corp............................ 2,591 32 CINergy Corp............................ 1,139 25 CMS Energy Corp......................... 779 +43 Consolidated Edison, Inc................ 1,664 31 Constellation Energy Group, Inc......... 1,383 49 Dominion Resources, Inc................. 3,266 +29 DTE Energy Co........................... 1,132 75 Duke Energy Corp........................ 6,423 66 Dynegy, Inc., Class A................... 3,695 67 Edison International.................... 1,040 47 El Paso Energy Corp..................... 3,398 +46 Entergy Corp............................ 1,925 65 Exelon Corp............................. 4,564 46 FirstEnergy Corp........................ 1,454 36 FPL Group, Inc.......................... 2,596 25 GPU, Inc................................ 913 28 KeySpan Corp............................ 1,165 +23 Kinder Morgan, Inc...................... 1,221 *33 Niagra Mohawk Holdings, Inc............. 544 9 NICOR, Inc.............................. 400 6 ONEOK, Inc.............................. 289
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 42 ______________________________________
MARKET SHARES VALUE - --------- ----------
COMMON STOCKS -- (CONTINUED) UTILITIES -- (CONTINUED)
MARKET SHARES VALUE - --------- ---------- 7 Peoples Energy Corp..................... $ 323 79 PG&E Corp............................... 1,581 17 Pinnacle West Capital Corp.............. 828 30 PPL Corp................................ 1,338 42 Progress Energy, Inc.................... 2,062 +44 Public Service Enterprise Group, Inc.... 2,130 60 Reliant Energy, Inc..................... 2,606 42 Sempra Energy........................... 972 138 Southern Co............................. 4,586 +53 Texas Utilities Co...................... 2,336 127 Waste Management, Inc................... 3,521 90 Williams Cos., Inc. (The)............... 3,591 +69 Xcel Energy, Inc........................ 2,019 ---------- 80,682 ---------- Total common stocks..................... $2,396,206 ========== PRINCIPAL AMOUNT - --------- SHORT-TERM SECURITIES -- 0.6% REPURCHASE AGREEMENT -- 0.5% $13,063 Joint Repurchase Agreement (See Note 2(d)) 6.00% due 01/02/01................ $ 13,063 ---------- U.S. TREASURY BILLS -- 0.1% 50 5.16% due 03/15/01...................... 49 400 5.50% due 03/15/01...................... 396 100 5.51% due 03/15/01...................... 99 400 5.84% due 03/15/01...................... 395 50 6.05% due 03/15/01...................... 49 ---------- 988 ---------- Total short-term securities............. $ 14,051 ==========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,718,123)... 99.7% $2,396,206 Total short-term securities (cost $14,051)............................... 0.6 14,051 ----- ---------- Total investment in securities (total cost $1,732,174)....................... 100.3 2,410,257 Cash, receivables and other assets...... 0.1 3,190 Securities lending collateral (See Note 2(i))............................. 2.5 59,876 Payable for securities purchased........ (0.2) (4,563) Payable for Fund shares redeemed........ (0.2) (4,457) Securities lending collateral payable to brokers (See Note 2(i))................ (2.5) (59,876) Other liabilities....................... (0.0) (1,155) ----- ---------- Net assets.............................. 100.0% $2,403,272 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 645,228 shares outstanding...................................... $ 64,523 Capital surplus................................... 1,625,444 Distribution in excess of net investment income... (4) Accumulated undistributed net realized gain on investments...................................... 35,532 Unrealized appreciation of investments............ 678,083 Unrealized depreciation of futures contracts ++..................................... (306) ---------- Net assets........................................ $2,403,272 ==========
Class IA Net asset value per share ($2,387,000 DIVIDED BY 640,854 shares outstanding) (1,500,000 shares authorized)...................................... $3.72 ==== Class IB Net asset value per share ($16,272 DIVIDED BY 4,374 shares outstanding) (500,000 shares authorized)...................................... $3.72 ====
* Non-income producing during the period. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). ++ The Fund had 48 Standard & Poor's 500 March 2001 Futures contracts open as of December 31, 2000. These contracts had a value of $16,020 as of December 31, 2000 and were collateralized by various U.S. Treasury Bills with a market value of $988. (Number of contracts not in $000's) ______________________________________ 43 ______________________________________ HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------ ASSET-BACKED SECURITIES -- 3.5% S$ 1,000 AESOP Funding II LLC, Series 1997-1A, Class A2 6.40% due 10/20/03.................... $ 1,005 778 Capital Auto Receivables Asset Trust, Series 1999-1, Class A2 5.58% due 06/15/02.................... 777 500 Capital Auto Receivables Asset Trust, Series 1999-2, Class A3 6.25% due 03/15/03.................... 500 200 Chase Manhattan Auto Owner Trust, Series 1997-B, Class A5 6.60% due 03/15/02.................... 200 1,500 Chase Manhattan Credit Card Master Trust, Series 1996-3, Class A 7.04% due 02/15/05.................... 1,504 1,360 Citibank Credit Card Master Trust I, Series 1997-2, Class A 6.55% due 02/15/04.................... 1,368 800 Citibank Credit Card Master Trust I, Series 1998-6, Class A 5.85% due 04/10/03.................... 799 750 Discover Credit Card Master Trust I, Series 1998-2, Class A 5.80% due 09/16/03.................... 749 850 Discover Credit Card Master Trust I, Series 1999-2, Class A 5.90% due 10/15/04.................... 849 700 First Security Auto Owner Trust, Series 2000-2, Class A2 6.80% due 08/15/03.................... 704 2 Ford Credit Auto Owner Trust, Series 1999-B, Class A3 5.47% due 09/15/01.................... 2 565 Ford Credit Auto Owner Trust, Series 1999-D, Class A3 6.20% due 04/15/02.................... 565 526 Harley-Davidson Eaglemark Motorcycle Trust, Series 1998-1, Class A2 5.94% due 02/15/04.................... 526 547 Harley-Davidson Eaglemark Motorcycle Trust, Series 2000-2, Class A1 7.07% due 11/15/04.................... 552 660 Honda Auto Lease Trust, Series 1999-A, Class A5 6.65% due 07/15/05.................... 664 600 Honda Auto Receivables Owner Trust, Series 2000-1, Class A2 6.65% due 12/16/02.................... 603 700 PP&L Transition Bond Co., LLC, Series 1999-1, Class A2 6.41% due 12/26/03.................... 699 309 Premier Auto Trust, Series 1998-3, Class A3 5.88% due 12/08/01.................... 309 892 SLM Student Loan Trust, Series 2000-2, Class A1L 6.84% due 07/25/08.................... 893 PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------
PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------ $ 407 USAA Auto Loan Grantor Trust, Series 1999-1, Class A 6.10% due 02/15/06.................... $ 407 ------------ Total asset-backed securities........... $ 13,675 ============ COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2% S660 GS Mortgage Securities Corp. II, Series 2000-GSFL, Class A 6.80% due 08/15/04.................... $ 660 S301 SASCO Floating Rate Commercial Mortgage, Series 1999-C3, Class A 7.008% due 11/20/01................... 302 ------------ Total collateralized mortgage obligations............................. $ 962 ============ SHARES - ------------------- COMMON STOCKS -- 52.5% AUSTRALIA -- 0.5% +59 News Corp., Ltd., ADR (Media & Entertainment)......................... $ 1,916 ------------ BELGIUM -- 0.9% 4 Dexia Belgium (Financial Services)...... 755 *S45 Interbrew N.V. (Food, Beverage & Tobacco)............................... 1,563 23 KBC Bancassurance Holding N.V. (Financial Services)................... 1,008 ------------ 3,326 ------------ BRAZIL -- 0.6% +33 Telecomunicacoes Brasileiras S.A., ADR (Communications)....................... 2,390 ------------ CANADA -- 1.0% 75 Abitibi-Consolidated, Inc. (Forest & Paper Products)........................ 693 76 Alcan Aluminum Ltd. (Metals, Minerals & Mining)................................ 2,585 20 Nortel Networks Holdings Corp. (Communications)....................... 625 ------------ 3,903 ------------ CHINA -- 0.2% *53 China Unicom Ltd., ADR (Software & Services).............................. 779 ------------ FINLAND -- 1.7% 75 Nokia Oyj (Communications).............. 3,352 85 Sonera Oyj (Communications)............. 1,540 51 UPM-Kymmene Group (Forest & Paper Products).............................. 1,735 ------------ 6,627 ------------ FRANCE -- 6.6% 19 Air Liquids S.A. (Chemicals)............ 2,826 13 Alcatel S.A., ADR (Communications)...... 716 34 Aventis S.A. (Chemicals)................ 2,990 +9 AXA (Financial Services)................ 1,307 1 BNP Paribas S.A. (Financial Services)... 115 43 Carrefour S.A. (Retail)................. 2,720
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 44 ______________________________________
MARKET SHARES VALUE - ------------------- ------------
COMMON STOCKS -- (CONTINUED) FRANCE -- (CONTINUED)
MARKET SHARES VALUE - ------------------- ------------ 10 France Telecom S.A. (Communications).... $ 898 14 L'Oreal (Consumer Non-Durables)......... 1,200 26 Pechiney S.A., A Shares (Metals, Minerals & Mining)..................... 1,175 7 Pinault-Printemps-Redoute S.A. (Retail)............................... 1,440 18 Scheider Electric S.A. (Electrical Equipment)............................. 1,328 6 Suez Lyonnaise des Eaux S.A. (Energy & Services).............................. 1,077 *+37 Thomas Multimedia (Media & Entertainment)......................... 1,720 33 Total Fina S.A., B Shares (Energy & Services).............................. 4,858 *+17 Vivendi Universal S.A., ADR (Media & Entertainment)......................... 1,092 ------------ 25,462 ------------ GERMANY -- 2.4% 26 BASF AG (Chemicals)..................... 1,189 17 Bayerische Motoren Werke (BMW) AG (Transportation)....................... 564 *S52 Deutsche Post AG (Transportation)....... 1,117 +97 Deutsche Telekom AG (Communications).... 2,948 73 RWE AG (Utilities)...................... 3,228 *+35 T-Online International AG (Software & Services).............................. 438 ------------ 9,484 ------------ HONG KONG -- 2.0% 271 Cheung Kong (Holdings) Ltd. (Real Estate)................................ 3,466 390 New World Development Ltd. (Real Estate)................................ 473 *+2,509 Pacific Century CyberWorks Ltd. (Communications)....................... 1,625 234 Sun Hung Kai Properties (Real Estate)... 2,333 ------------ 7,897 ------------ IRELAND -- 0.3% 87 Allied Irish Banks PLC (Financial Services).............................. 1,011 ------------ ITALY -- 2.6% 52 Alleanza Assicurazioni (Financial Services).............................. 833 21 Assicurazioni Generali S.p.A. (Financial Services).............................. 842 +320 ENI S.p.A. (Energy & Services).......... 2,045 +44 Mediaset S.p.A. (Media & Entertainment)......................... 522 788 Pirelli S.p.A. (Transportation)......... 2,803 p0 Seat Pagine Gialle S.p.A (Media & Entertainment)......................... p0 *+244 Telecom Italia Mobile S.p.A. (Communications)....................... 1,949 MARKET SHARES VALUE - ------------------- ------------
ITALY -- (CONTINUED)
MARKET SHARES VALUE - ------------------- ------------ +105 Telecom Italia S.p.A. (Communications).. $ 1,166 ------------ 10,160 ------------ JAPAN -- 7.9% 7 Advantest Corp. (Electronics)........... 656 74 Bank of Toyko-Mitsubishi Ltd. (The) (Financial Services)................... 737 p0 DDI Corp. (Communications).............. 791 p0 East Japan Railway Co. (Transportation)....................... 634 2 Fast Retailing Co. (Retail)............. 372 41 Fuji Photo Film Co., Ltd. (Consumer Non-Durables).......................... 1,716 6 Fuji Soft ABC, Inc. (Computers & Office Equipment)............................. 368 +64 Fujisawa Pharmaceutical Co. (Drugs)..... 2,118 15 Hoya Corp. (Medical Instruments & Supplies).............................. 1,103 32 KAO Corp. (Consumer Non-Durables)....... 930 14 Kyocera Corp. (Electronics)............. 1,474 33 Matsumotokiyoshi Co., Ltd. (Retail)..... 918 8 Matsushita Communication Industrial Co., Ltd. (Retail).......................... 1,043 180 Matsushita Electric Industrial Co., Ltd. (Electronics).......................... 4,303 95 NEC Corp. (Electronics)................. 1,739 262 Nikko Securities Co., Ltd. (Financial Services).............................. 2,030 9 Nintendo Co., Ltd. (Consumer Non- Durables).............................. 1,465 p0 Nippon Telegraph & Telephone Corp. (Communications)....................... 1,211 p0 NTT DoCoMo, Inc. (Media & Entertainment)......................... 880 75 Omron Corp. (Electrical Equipment)...... 1,560 18 Pioneer Corp. (Media & Entertainment)... 481 30 Promise Co., Ltd. (Financial Services).............................. 2,142 *+56 Ricoh Co., Ltd. (Media & Entertainment)......................... 1,035 95 Tokyo Style Co., Ltd. (Apparel & Textile)............................... 872 ------------ 30,578 ------------ NETHERLANDS -- 3.9% 84 Aegon N.V. (Financial Services)......... 3,471 18 Heineken N.V. (Food, Beverage & Tobacco)............................... 1,101 42 ING Groep N.V. (Financial Services)..... 3,370 14 Koninklijke (Royal) Philips Electronics N.V. (Electronics)..................... 528 71 Royal Dutch Petroleum Co. (Energy & Services).............................. 4,319 9 Royal Dutch Petroleum Co., NY Shares, ADR (Energy & Services)................ 521 16 STMicroelectronics (Electronics)........ 716 +21 Unilever N.V., NY Shares (Consumer Non-Durables).......................... 1,328 ------------ 15,354 ------------
______________________________________ 45 ______________________________________ HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - ------------------- ------------
COMMON STOCKS -- (CONTINUED)
MARKET SHARES VALUE - ------------------- ------------ PORTUGAL -- 0.2% 274 Electricidade de Portugal S.A. (Electronics).......................... $ 906 ------------ SOUTH AFRICA -- 0.3% 395 FirstRand Ltd. (Financial Services)..... 438 20 Nedcor Ltd. (Financial Services)........ 440 282 Sanlam Ltd. (Financial Services)........ 356 ------------ 1,234 ------------ SOUTH KOREA -- 1.3% 7 Korea Telecom Corp. (Communications).... 368 20 Korea Telecom Corp., ADR (Communications)....................... 619 24 Samsung Electronics (Electronics)....... 3,026 2 SK Telecom Co., Ltd. (Communications)... 434 +23 SK Telecom Co., Ltd., ADR (Communications)....................... 547 ------------ 4,994 ------------ SPAIN -- 2.2% 90 Banco Popular Espanol S.A. (Financial Services).............................. 3,131 169 Banco Santander Central Hispano S.A. (Financial Services)................... 1,805 89 Endesa S.A. (Utilities)................. 1,510 +20 Endesa S.A., ADR (Utilities)............ 337 +34 Telefonica S.A., ADR (Communications)... 1,723 ------------ 8,506 ------------ SWEDEN -- 2.1% 159 ForeningsSparbanken AB (Swedbank) (Financial Services)................... 2,437 37 Gambro AB, Class A (Medical Instruments & Supplies)................ 266 380 Skandinaviska Enskilda, A Shares (Financial Services)................... 4,193 77 Telefonaktiebolaget LM Ericsson AB (Communications)....................... 875 38 Telefonaktiebolaget LM Ericsson AB, ADR (Communications)....................... 420 ------------ 8,191 ------------ SWITZERLAND -- 2.5% 2 Nestle S.A. (Food, Beverage & Tobacco).. 4,817 2 Novartis AG (Drugs)..................... 3,395 p0 Roche Holdings AG (Drugs)............... 1,426 ------------ 9,638 ------------ TAIWAN -- 0.6% *228 Taiwan Semiconductor Manufacturing Co., Ltd.................................... 548 *+85 Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Electronics)................ 1,466 *+56 United Microelectronics Corp., ADR (Electronics).......................... 459 ------------ 2,473 ------------ MARKET SHARES VALUE - ------------------- ------------
MARKET SHARES VALUE - ------------------- ------------ UNITED KINGDOM -- 12.7% 85 AstraZeneca Group PLC (Drugs)........... $ 4,280 161 BAA PLC (Transportation)................ 1,485 116 Barclays PLC (Financial Services)....... 3,582 260 Billiton PLC (Metals, Minerals & Mining)................................ 1,011 408 BP Amoco PLC (Energy & Services)........ 3,271 375 British Airways PLC (Transportation).... 2,181 141 British Sky Broadcasting Group PLC (Media & Entertainment)................ 2,366 98 Cable & Wireless PLC (Utilities)........ 1,316 *56 COLT Telecom Group PLC (Communications)....................... 1,208 *29 GlaxoSmithKline PLC (Drugs)............. 827 22 GlaxoSmithKline PLC, ADR (Drugs)........ 1,217 170 Imperial Chemical Industries PLC (Chemicals)............................ 1,399 961 Invensys PLC (Electrical Equipment)..... 2,246 *312 Lattice Group PLC (Transportation)...... 702 34 Liberty International PLC (Business Services).............................. 247 263 Lloyds TSB Group PLC (Financial Services).............................. 2,766 85 Marconi PLC (Communications)............ 909 174 Prudential Corp. PLC (Financial Services).............................. 2,798 129 Psion PLC, GBP (Software & Services).... 544 115 Reckitt Benckiser PLC (Consumer Non- Durables).............................. 1,594 402 Reed International PLC (Media & Entertainment)......................... 4,191 514 Rentokil Initial PLC (Business Services).............................. 1,779 75 Royal Bank of Scotland Group PLC (Financial Services)................... 1,769 125 Safeway PLC (Retail).................... 553 296 Smith & Nephew PLC (Medical Instruments & Supplies)................ 1,392 63 South African Breweries PLC (Food, Beverage & Tobacco).................... 443 964 Vodafone AirTouch PLC (Communications)....................... 3,536 ------------ 49,612 ------------ Total common stocks..................... $ 204,441 ============
PRINCIPAL AMOUNT - ------------------ CORPORATE NOTES -- 5.0% AUSTRALIA -- 0.3% $ 1,000 National Australia Bank (Financial $ 999 Services) 5.00% due 02/12/02.................... ----------- FRANCE -- 0.4% EUR 1,500 France Telecom S.A. (Communications) 1,407 3.911% due 10/12/01................... -----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 46 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------ CORPORATE NOTES -- (CONTINUED) GERMANY -- 0.2% DEM 1,900 Toyota Motor Credit Corp. (Financial Services) 5.375% due 12/28/01................... $ 916 JAPAN -- 1.0% JPY 460,000 KFW International Finance, Inc. (Financial Services) 1.00% due 12/20/04.................... 4,057 ------------ NETHERLANDS -- 0.2% 750 Bank Nederlandse Gemeenten N.V. (Financial Services) 3.25% due 07/16/01.................... 737 ------------ SOUTH KOREA -- 0.2% EUR 700 Korea Development Bank (Financial Services) 6.00% due 04/13/05.................... 648 ------------ UNITED KINGDOM -- 0.6% GBP 525 British Gas PLC (Energy & Services) 5.375% due 12/07/09................... 738 GBP 705 General Electric Capital Corp. (Financial Services) 5.125% due 01/12/04................... 1,028 EUR 808 National Westminster Bank (Financial Services) 6.00% due 01/21/10.................... 751 ------------ 2,517 ------------ UNITED STATES OF AMERICA -- 2.1% 1,500 American General Finance Corp. (Financial Services) 6.875% due 12/14/01................... 1,511 EUR 4,150 Federal Home Loan Mortgage Association (Financial Services) 5.75% due 09/15/10.................... 3,996 EUR 875 International Paper Co. (Forest & Paper Products) 5.375% due 08/11/06................... 787 800 Wells Fargo & Co. (Financial Services) 6.86% due 09/15/01.................... 802 1,230 WorldCom, Inc. (Communications) 6.125% due 08/15/01................... 1,226 ------------ 8,322 ------------ Total corporate notes................... $ 19,603 ============ ENHANCED EQUIPMENT TRUST CERTIFICATES -- 0.2% 629 Daimler Chrysler Auto Trust, Series 2000-2, Class A2 6.76% due 01/06/03.................... $ 631 ------------ Total enhanced equipment trust $ 631 certificates............................ ============ FOREIGN GOVERNMENT BONDS -- 25.9% CAD 1,600 Canada Government 5.50% due 06/01/10.................... $ 1,073 CAD 1,300 Canada Government 5.75% due 06/01/29.................... $ 886 PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------ DKK 17,800 Denmark Kingdom 7.00% due 12/15/04.................... 2,404 EUR 4,410 Deutschland Republic 6.875% due 05/12/05................... 4,498 EUR 7,700 Deutschland Republic 6.00% due 02/16/06.................... 7,671 EUR 1,400 Deutschland Republic 6.25% due 01/04/24.................... 1,451 EUR 3,200 Finland Republic 5.75% due 02/23/11.................... 3,153 EUR 5,000 France BTAN 5.50% due 10/12/01.................... 4,720 EUR 300 France O.A.T. 6.00% due 10/25/25.................... 302 GRD1,070,000 Hellenic Republic 6.50% due 01/11/14.................... 3,101 GBP 381 Iceland Republic 8.75% due 05/12/03.................... 604 EUR 568 Italy BTPS 6.50% due 11/01/27.................... 585 EUR 9,000 Italy BTPS 6.00% due 11/01/07.................... 8,958 EUR 9,700 Italy BTPS 4.75% due 07/01/05.................... 9,116 EUR 9,000 Italy BTPS 4.00% due 07/15/04.................... 8,278 JPY 880,000 JAPAN #184 2.90% due 12/20/05.................... 8,446 JPY 552,000 JAPAN #213 1.40% due 06/22/09.................... 4,805 JPY 310,000 JAPAN #215 1.90% due 09/21/09.................... 2,811 JPY 345,000 JAPAN #42 2.60% due 03/20/19.................... 3,189 EUR 5,100 Netherlands Government 7.75% due 03/01/05.................... 5,339 EUR 1,750 Netherlands Government 7.50% due 01/15/23.................... 2,071 NOK 48,000 Norway Kingdom 5.50% due 05/15/09.................... 5,267 SEK 10,500 Sweden Kingdom #1034 9.00% due 04/20/09.................... 1,431 GBP 5,100 U.K. Treasury Gilt 7.75% due 09/08/06.................... 8,578 GBP 1,300 U.K. Treasury Gilt 8.50% due 12/07/05.................... 2,223 ------------ Total foreign government bonds.......... $ 100,960 ============ U.S. TREASURIES & FEDERAL AGENCIES -- 0.7% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.7% $ 2,492 7.958% due 03/01/30................... $ 2,554 ------------ Total U.S. treasuries & federal agencies................................ $ 2,554 ============
______________________________________ 47 ______________________________________ HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ------------------- ------------ SHORT-TERM SECURITIES -- 18.7% COMMERCIAL PAPER -- 4.7% $ 1,500 Bayerische Hypo Verinsbank AG 7.25% due 05/14/01.................... $ 1,499 2,090 Canada Government 6.249% due 03/14/01................... 2,064 1,500 Den Danske Corp. 6.47% due 03/16/01.................... 1,480 1,250 Lloyds Bank PLC 6.45% due 03/21/01.................... 1,233 600 National Rural Utility 6.03% due 06/07/01.................... 584 4,500 New Zealand Government 6.419% due 03/28/01................... 4,432 2,400 Rabobank Nederland N.V. 7.33% due 05/17/01.................... 2,404 600 Svenska Handelsbanken AB 6.44% due 03/07/01.................... 600 1,500 Svenska Handelsbanken AB, NY Shares 6.62% due 03/07/01.................... 1,498 2,500 Union Bank of Switzerland, NY Shares 6.975% due 07/18/01................... 2,503 ------------ 18,297 ------------ CORPORATE BONDS -- 1.0% 341 General Electric Capital Corp. 7.375% due 05/09/01................... 342 1,000 General Electric Capital Corp. 7.38% due 05/23/01.................... 1,005 1,550 International Bank for Reconstruction & Development 5.625% due 04/23/01................... 1,546 816 Morgan Guaranty Trust 6.375% due 03/26/01................... 816 ------------ 3,709 ------------ U.S. TREASURY BILLS -- 0.5% 1,800 6.16% due 01/25/01.................... 1,793 ------------ REPURCHASE AGREEMENT -- 12.5% 48,842 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01................... 48,842 ------------ Total short-term securities............. $ 72,641 ============
MARKET VALUE ----------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securitities (cost $13,606).............................. 3.5% $ 13,675 Total collateralized mortgage obligations (cost $961)................................. 0.2 962 Total common stocks (cost $202,939).......... 52.5 204,441 Total corporate notes (cost $19,511)......... 5.0 19,603 Total enhanced equipment trust certificates (cost $627)................................. 0.2 631 Total foreign government bonds (cost $99,200).............................. 25.9 100,960 Total U.S. treasuries & federal agencies (cost $2,554)............................... 0.7 2,554 Total short-term securities (cost $72,634).............................. 18.7 72,641 ----- ----------- Total investment in securities (total cost $412,032)....................... 106.7 415,467 Cash, receivables and other assets........... 2.7 10,810 Securities lending collateral (See Note 2(i)).................................. 6.2 24,236 Payable for securities purchased............. (9.3) (36,163) Payable for Fund shares redeemed............. -- (50) Securities lending collateral payable to brokers (See Note 2(i))..................... (6.2) (24,236) Other liabilities............................ (0.1) (616) ----- ----------- Net assets................................... 100.0% $ 389,448 ===== ===========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 750,000 shares authorized; 338,991 shares outstanding...... $ 33,899 Capital surplus..................................... 348,048 Distribution in excess of net investment income..... (2,890) Accumulated undistributed net realized gain on investments........................................ 12,763 Unrealized appreciation of investments.............. 3,262 Unrealized depreciation of futures contracts f...... (22) Unrealized depreciation of forward foreign currencies contracts (See Note 2(g))w.............. (6,110) Unrealized appreciation of other assets and liabilities in foreign currencies.................. 325 Unrealized appreciation of option contracts written (See Note 2(f)) V.................................. 173 ----------- Net assets.......................................... $ 389,448 ===========
Class IA Net asset value per share ($384,648 DIVIDED BY 334,807 shares outstanding) (562,500 shares authorized)........................................ $1.15 ==== Class IB Net asset value per share ($4,800 DIVIDED BY 4,184 shares outstanding) (187,500 shares authorized).... $1.15 ====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 48 ______________________________________ DIVERSIFICATION BY INDUSTRY: Apparel & Textile............................ 0.2% $ 872 Business Services............................ 0.5 2,026 Chemicals.................................... 2.2 8,404 Communications............................... 7.7 29,850 Computers & Office Equipment................. 0.1 368 Consumer Non-Durables........................ 2.1 8,233 Drugs........................................ 3.4 13,263 Electrical Equipment......................... 1.3 5,134 Electronics.................................. 4.1 15,821 Energy & Services............................ 4.1 16,091 Financial Services........................... 10.6 41,336 Food, Beverage & Tobacco..................... 2.0 7,924 Forest & Paper Products...................... 0.6 2,428 Media & Entertainment........................ 3.7 14,203 Medical Instruments & Supplies............... 0.7 2,761 Metals, Minerals & Mining.................... 1.2 4,771 Real Estate.................................. 1.6 6,272 Retail....................................... 1.8 7,046 Software & Services.......................... 0.5 1,761 Transportation............................... 2.4 9,486 Utilities.................................... 1.7 6,391 ----- ----------- Total common stocks.......................... 52.5% $ 204,441 ===== =========== Communications............................... 0.7% $ 2,633 Energy & Services............................ 0.2 738 Financial Services........................... 3.9 15,445 Forest & Paper Products...................... 0.2 787 ----- ----------- Total corporate notes........................ 5.0% $ 19,603 ===== ===========
* Non-income producing during the period. S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $4,647 or 1.2% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). f The Fund had 28 March 2001 NEW FTSE 100 Index futures contracts, 1 March 2001 S&P/Toronto Stock Exchange 60 Index futures contract, 3 March 2001 Sydney Futures Exchange SPI 200 Index futures contracts, 13 March 2001 TSE 10 Year JGB Index futures contracts, 23 March 2001 TSE Tokyo Price Index futures contracts, 68 January 2001 OMX Index futures contracts, 93 March 2001 Eurex Deutschland Euro Bobl futures contracts, 125 March 2001 Dow Jones Euro STOXX and 50 Index futures contracts open as of December 31, 2000. These contracts had a market value of $36,408 as of December 31, 2000, and were collateralized by various U.S. Treasury obligations with a market value of $1,710. (Number of contracts not in $000's) V OPTION CONTRACTS AT DECEMBER 31, 2000
NUMBER OF EXERCISE EXPIRATION MARKET DESCRIPTION CONTRACTS PRICE DATE VALUE - ----------- ---------- -------- ---------- -------- Euro (Written Call) / U.S. Dollars 1,740 $ 0.9 May 2001 $(101) Euro (Purchased Call) / Japanese Yen 3,480 98.5 May 2001 262 Euro (Written Put) / U.S. Dollars 1,740 0.8 May 2001 (2) ----- ----- Total option contracts (total net premium received $14) 6,960 $ 159 ----- -----
The securities underlying these option contracts are included in the Fund's Statement of Net Assets. wFORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT DECEMBER 31, 2000
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- -------- -------------- Australian Dollars (Buy) $ 1,804 $ 1,775 01/29/01 $ 29 Australian Dollars (Buy) 554 546 01/29/01 8 Australian Dollars (Buy) 135 133 03/30/01 2 British Pounds (Buy) 5,462 5,266 01/30/01 196 British Pounds (Buy) 2,644 2,556 03/16/01 88 British Pounds (Buy) 299 289 01/30/01 10 British Pounds (Buy) 372 366 01/02/01 6 British Pounds (Buy) 531 526 01/03/01 5 British Pounds (Buy) 355 356 01/04/01 (1) British Pounds (Buy) 274 274 01/05/01 -- British Pounds (Sell) 18,600 17,650 01/30/01 (950) British Pounds (Sell) 672 639 01/30/01 (33) British Pounds (Sell) 12,699 12,192 03/05/01 (507) British Pounds (Sell) 106 105 01/03/01 (1)
______________________________________ 49 ______________________________________ HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) - ----------- ------------ -------- -------- -------------- Canadian Dollars (Buy) $ 75 $ 73 03/15/01 $ 2 Canadian Dollars (Buy) 641 638 01/02/01 3 Canadian Dollars (Buy) 266 266 01/03/01 -- Canadian Dollars (Sell) 1,983 1,951 01/30/01 (32) Danish Krone (Sell) 2,393 2,238 01/16/01 (155) Euro (Buy) 3,301 3,064 01/10/01 237 Euro (Buy) 70 65 01/10/01 5 Euro (Buy) 8,945 8,324 03/05/01 621 Euro (Buy) 1,156 1,086 01/10/01 70 Euro (Buy) 605 574 01/10/01 31 Euro (Buy) 1,880 1,753 01/10/01 127 Euro (Buy) 32 30 01/10/01 2 Euro (Buy) 1,702 1,594 01/19/01 108 Euro (Buy) 1,699 1,610 01/10/01 89 Euro (Buy) 2,718 2,695 01/02/01 23 Euro (Buy) 734 725 01/03/01 9 Euro (Buy) 1,305 1,293 01/10/01 12 Euro (Sell) 13,835 12,862 01/10/01 (973) Euro (Sell) 3,524 3,290 01/10/01 (234) Euro (Sell) 46,994 43,675 01/11/01 (3,319) Euro (Sell) 11,299 10,649 03/05/01 (650) Euro (Sell) 303 287 01/10/01 (16) Euro (Sell) 2,350 2,226 01/10/01 (124) Euro (Sell) 7,212 6,829 01/10/01 (383) Euro (Sell) 2,105 2,004 01/10/01 (101) Euro (Sell) 1,128 1,070 01/10/01 (58) Euro (Sell) 1,304 1,292 01/05/01 (12) Hong Kong Dollars (Buy) 110 110 01/02/01 -- Japanese Yen (Buy) 580 603 02/05/01 (23) Japanese Yen (Buy) 879 913 02/05/01 (34) Japanese Yen (Buy) 6,656 6,904 03/05/01 (248) Japanese Yen (Buy) 2,798 2,908 03/08/01 (110) Japanese Yen (Buy) 2,218 2,264 02/06/01 (46) Japanese Yen (Buy) 222 228 02/07/01 (6) Japanese Yen (Sell) 5,738 5,952 02/05/01 214 Japanese Yen (Sell) 1,676 1,736 02/06/01 60 Japanese Yen (Sell) 1,235 1,285 02/06/01 50 Japanese Yen (Sell) 641 666 02/05/01 25 Japanese Yen (Sell) 294 307 02/07/01 13 Japanese Yen (Sell) 1,468 1,516 02/06/01 48 Japanese Yen (Sell) 132 134 02/05/01 2 Norwegian Krone (Sell) 5,340 5,114 01/19/01 (226) Singapore Dollars (Buy) 1,738 1,729 02/06/01 9 Singapore Dollars (Buy) 1,284 1,281 02/06/01 3 Singapore Dollars (Buy) 1,509 1,511 02/06/01 (2) Singapore Dollars (Sell) 2,255 2,257 02/06/01 2 South African Rand (Buy) 156 157 01/02/01 (1) South African Rand (Buy) 80 80 01/02/01 -- South Korean Won (Sell) 719 754 06/20/01 35 Swedish Krona (Buy) 764 752 01/26/01 12 Swedish Krona (Buy) 518 511 01/02/01 7 Swedish Krona (Buy) 168 166 01/03/01 2 Swedish Krona (Buy) 3 3 01/04/01 -- Swedish Krona (Sell) 1,451 1,415 01/16/01 (36) Swiss Franc (Buy) 611 605 01/04/01 6 -------- $ (6,110) ========
pDue to the presentation of the financial statements in thousands, the number of shares, principal amount and market value rounds to zero. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 50 ______________________________________ HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- ASSET-BACKED SECURITIES -- 0.3% S$ 43,000 AESOP Funding II LLC, Series 1998-1, Class A1 6.14% due 05/20/06......................... $ 42,695 --------------- Total asset-backed securities................ $ 42,695 =============== COMMERCIAL MORTGAGE-BACKED SECURITIES -- 0.5% 10,000 Asset Securitization Corp., Series 1997-D5, Class A1E 6.93% due 02/14/41......................... $ 10,164 18,000 Asset Securitization Corp., Series 1997-D4, Class A1D 7.49% due 04/14/29......................... 19,007 25,000 Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2 7.37% due 02/19/07......................... 26,276 17,225 First Union - Lehman Brothers Commercial Mortgage Trust, Series 1997-C1, Class A3 7.38% due 04/18/07......................... 18,153 --------------- Total commercial mortgage-backed securities................................... $ 73,600 =============== SHARES - -------------------- COMMON STOCKS -- 59.6% AEROSPACE & DEFENSE -- 1.5% *2,200 General Motors, Class H...................... $ 50,600 1,962 United Technologies Corp..................... 154,286 --------------- 204,886 --------------- BUSINESS SERVICES -- 0.2% 100 Interpublic Group of Cos., Inc. (The)........ 4,256 75 Omnicom Group, Inc........................... 6,216 1,256 ServiceMaster Co. (The)...................... 14,445 --------------- 24,917 --------------- CHEMICALS -- 1.7% +2,550 Dow Chemical Co. (The)....................... 93,394 2,204 Pharmacia Corp............................... 134,444 --------------- 227,838 --------------- COMMUNICATIONS -- 3.9% *+200 Avaya, Inc................................... 2,062 *50 COLT Telecom Group PLC....................... 1,073 *+2,386 Global Crossing Ltd.......................... 34,148 1,350 Lucent Technologies, Inc..................... 18,225 +2,140 Nortel Netwoks Holdings Corp................. 68,614 2,975 SBC Communications, Inc...................... 142,056 *1,670 Tellabs, Inc................................. 94,355 1,800 Verizon Communications, Inc.................. 90,225 *5,600 Worldcom, Inc................................ 78,750 --------------- 529,508 --------------- COMPUTERS & OFFICE EQUIPMENT -- 4.7% *5,001 Cisco Systems, Inc........................... 191,300 *2,700 Dell Computer Corp........................... 47,081 MARKET SHARES VALUE - -------------------- ---------------
COMMON STOCKS -- (CONTINUED) COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED)
MARKET SHARES VALUE - -------------------- --------------- *1,100 EMC Corp..................................... $ 73,150 1,500 Hewlett-Packard Co........................... 47,344 1,590 International Business Machines Corp......... 135,150 550 Minnesota Mining & Manufacturing Co............................. 66,275 *2,200 Solectron Corp............................... 74,580 --------------- 634,880 --------------- CONSUMER NON-DURABLES -- 3.9% 525 Cardinal Health, Inc......................... 52,303 700 Gillette Co. (The)........................... 25,288 1,525 Procter & Gamble Co. (The)................... 119,617 *3,614 Safeway, Inc................................. 225,875 2,000 Tyco International Ltd....................... 111,000 --------------- 534,083 --------------- DRUGS -- 6.1% 2,410 Abbott Laboratories.......................... 116,734 3,100 American Home Products Corp.................. 197,005 1,850 Bristol-Myers Squibb Co...................... 136,784 200 Eli Lilly & Co............................... 18,613 *677 Immunex Corp................................. 27,499 1,820 Merck & Co., Inc............................. 170,398 3,025 Pfizer, Inc.................................. 139,147 400 Schering-Plough Corp......................... 22,700 --------------- 828,880 --------------- ELECTRICAL EQUIPMENT -- 0.5% *1,844 Teradyne, Inc................................ 68,693 --------------- ELECTRONICS -- 3.6% *50 Broadcom Corp., Class A...................... 4,200 1,100 Emerson Electric Co.......................... 86,694 2,821 General Electric Co.......................... 135,217 4,868 Intel Corp................................... 146,338 *686 JDS Uniphase Corp............................ 28,585 *1,600 Micron Technology, Inc....................... 56,800 *506 Vitesse Semiconductor Corp................... 27,977 --------------- 485,811 --------------- ENERGY & SERVICES -- 4.2% 1,000 Conoco, Inc., Class B........................ 28,938 3,200 ExxonMobil Corp.............................. 278,200 300 Royal Dutch Petroleum Co., NY Shares, ADR.... 18,169 1,134 Schlumberger Ltd............................. 90,657 2,150 Texaco, Inc.................................. 133,569 +300 Transocean Sedco Forex, Inc.................. 13,800 450 Unocal Corp.................................. 17,409 --------------- 580,742 --------------- FINANCIAL SERVICES -- 9.9% 2,063 American International Group, Inc............ 203,285 250 Chase Manhattan Corp. (The).................. 11,359 6,304 Citigroup, Inc............................... 321,911 1,900 Fleet Boston Financial Corp.................. 71,369
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 51 ______________________________________ HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
MARKET SHARES VALUE - -------------------- ---------------
COMMON STOCKS -- (CONTINUED) FINANCIAL SERVICES -- (CONTINUED)
MARKET SHARES VALUE - -------------------- --------------- 3,050 Franklin Resources, Inc...................... $ 116,205 500 Goldman Sachs Group, Inc. (The).............. 53,469 1,825 Marsh & McLennan Cos., Inc................... 213,525 2,200 Merrill Lynch & Co., Inc..................... 150,013 200 Morgan Stanley Dean Witter & Co.............. 15,850 1,600 State Street Corp............................ 198,736 --------------- 1,355,722 --------------- FOOD, BEVERAGE & TOBACCO -- 2.7% 1,050 Anheuser-Busch Cos., Inc..................... 47,775 1,960 Coca-Cola Co. (The).......................... 119,438 950 General Mills, Inc........................... 42,334 3,100 PepsiCo, Inc................................. 153,644 --------------- 363,191 --------------- FOREST & PAPER PRODUCTS -- 1.9% 2,400 Kimberly-Clark Corp.......................... 169,656 1,750 Weyerhaeuser Co.............................. 88,813 --------------- 258,469 --------------- HEALTH SERVICES -- 0.2% 700 HCA -- The Healthcare Co..................... 30,807 --------------- MEDIA & ENTERTAINMENT -- 2.0% *6,246 AT&T -- Liberty Media Group, Class A......... 84,711 2,780 Gannett Co., Inc............................. 175,314 700 Walt Disney Co. (The)........................ 20,256 --------------- 280,281 --------------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.5% 400 Baxter International, Inc.................... 35,325 1,670 Johnson & Johnson Co......................... 175,454 --------------- 210,779 --------------- METALS, MINERALS & MINING -- 0.8% 1,500 Alcoa, Inc................................... 50,250 1,050 Illinois Tool Works, Inc..................... 62,541 --------------- 112,791 --------------- REAL ESTATE -- 0.0% *6 Security Capital Group, Inc., Class A........ 6,089 --------------- RETAIL -- 4.4% 2,220 CVS Corp..................................... 133,037 2,400 Home Depot, Inc. (The)....................... 109,650 5,400 McDonald's Corp.............................. 183,600 3,350 Wal-Mart Stores, Inc......................... 177,969 --------------- 604,256 --------------- SOFTWARE & SERVICES -- 3.8% *3,250 America Online, Inc.......................... 113,100 2,000 Automatic Data Processing, Inc............... 126,625 *+1,276 China Unicom Ltd., ADR....................... 18,822 *714 Computer Sciences Corp....................... 42,935 *4,900 Microsoft Corp............................... 212,538 MARKET SHARES VALUE - -------------------- ---------------
SOFTWARE & SERVICES -- (CONTINUED)
MARKET SHARES VALUE - -------------------- --------------- *50 VERITAS Software, Corp....................... $ 4,375 --------------- 518,395 --------------- TRANSPORTATION -- 0.3% 850 Boeing Co. (The)............................. 56,100 --------------- UTILITIES -- 1.8% 650 Duke Energy Corp............................. 55,413 +550 El Paso Energy Corp.......................... 39,394 600 Exelon Corp.................................. 42,126 1,150 FPL Group, Inc............................... 82,513 800 Waste Management, Inc........................ 22,200 --------------- 241,646 --------------- Total common stocks.......................... $ 8,158,764 =============== PRINCIPAL AMOUNT - -------------------- CORPORATE NOTES -- 16.5% CHEMICALS -- 0.8% $ 20,000 ICI Wilmington 6.95% due 09/15/04......................... $ 19,964 29,000 Pharmacia Corp. 6.60% due 12/01/28......................... 27,536 25,000 Praxair, Inc. 6.15% due 04/15/03......................... 24,561 40,000 Rohm & Haas Co. 7.40% due 07/15/09......................... 41,140 --------------- 113,201 --------------- COMMUNICATIONS -- 0.5% 40,000 AT&T Corp. 6.50% due 03/15/29......................... 31,994 10,000 Bellsouth Telecommunications 6.375% due 06/01/28........................ 8,737 30,000 Worldcom, Inc. 6.40% due 08/15/05......................... 28,875 --------------- 69,606 --------------- COMPUTERS & OFFICE EQUIPMENT -- 0.7% 50,000 Hewlett-Packard Co. 7.15% due 06/15/05......................... 51,652 30,000 International Business Machines Corp. 6.50% due 01/15/28......................... 27,682 18,000 Pitney Bowes, Inc. 5.50% due 04/15/04......................... 17,715 --------------- 97,049 --------------- CONSUMER NON-DURABLES -- 0.5% 25,000 Alberto-Culver Co. 8.25% due 11/01/05......................... 26,441 18,000 Colgate-Palmolive Co. 5.58% due 11/06/08......................... 17,093 30,000 Tyco International Group S.A. 6.875% due 09/05/02........................ 30,130 --------------- 73,664 ---------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 52 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - -------------------- ---------------
CORPORATE NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- DRUGS -- 0.3% $ 26,000 American Home Products Corp. 7.25% due 03/01/23......................... $ 26,049 10,000 Zeneca Group 6.30% due 06/15/03......................... 10,101 --------------- 36,150 --------------- EDUCATION -- 0.1% 10,900 Harvard University 8.125% due 04/15/2007...................... 11,955 --------------- ELECTRICAL EQUIPMENT -- 0.2% 30,000 Danaher Corp. 6.00% due 10/15/08......................... 28,549 --------------- ELECTRONICS -- 0.5% 50,000 Eaton Corp. 6.95% due 11/15/04......................... 50,238 21,000 Motorola, Inc. 7.60% due 01/01/07......................... 22,048 --------------- 72,286 --------------- ENERGY & SERVICES -- 0.3% 12,250 BP Amoco PLC 6.50% due 08/01/07......................... 12,386 15,000 Husky Oil Ltd. 6.875% due 11/15/03........................ 14,976 17,285 Northern Border Pipeline 7.75% due 09/01/09......................... 17,461 --------------- 44,823 --------------- FINANCIAL SERVICES -- 6.9% 40,000 ACE INA Holdings 8.30% due 08/15/06......................... 42,590 30,000 Allmerica Financial Corp. 7.625% due 10/15/25........................ 27,488 24,000 Allstate Corp. (The) 6.75% due 06/15/03......................... 24,266 12,035 American Express Co. 6.875% due 11/01/05........................ 12,342 26,485 Amerus Life Holdings 6.95% due 06/15/05......................... 25,601 21,670 Amvescap PLC 6.60% due 05/15/05......................... 21,477 30,000 Apache Finance Property Ltd. 7.00% due 03/15/09......................... 30,677 25,000 Associates Corp. of North America 6.00% due 07/15/05......................... 24,553 15,000 Associates Corp. of North America 6.50% due 10/15/02......................... 15,104 10,000 Bank of Boston Corp. 6.625% due 02/01/04........................ 10,026 40,000 Bank One Corp. 6.875% due 08/01/06........................ 39,957 20,000 BankAmerica Corp. 5.875% due 02/15/09........................ 18,502 14,825 Banponce Corp. 6.75% due 12/15/05......................... 14,527 PRINCIPAL MARKET AMOUNT VALUE - -------------------- ---------------
FINANCIAL SERVICES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- $ 15,000 Bayerische Landesbank Girozentrale (NY) 5.625% due 02/26/09........................ $ 14,980 25,000 Bayerische Landesbank Girozentrale (NY) 5.65% due 02/01/09......................... 23,329 10,000 Chase Manhattan Corp. (The) 8.50% due 02/15/02......................... 10,227 15,740 CIGNA Corp. 7.40% due 05/15/07......................... 15,907 30,000 Cincinnati Financial Corp. 6.90% due 05/15/28......................... 26,634 20,000 CIT Group Holdings 6.75% due 05/14/01......................... 20,032 20,000 Citicorp 5.625% due 02/15/01........................ 19,979 10,000 Citigroup, Inc. 6.25% due 12/01/05......................... 10,010 24,000 Credit National 7.00% due 12/30/99......................... 24,231 30,000 Equitable Life Cos., Inc. 7.00% due 04/01/28......................... 28,237 10,000 Fairfax Financial Holdings 7.75% due 12/15/03......................... 9,372 13,685 First Union National Bank 5.80% due 12/01/08......................... 12,492 S27,000 Jackson National Life Insurance 8.15% due 03/15/27......................... 26,841 36,745 Key Bank N.A. 5.80% due 04/01/04......................... 35,844 11,400 Liberty Financial Co. 6.75% due 11/15/08......................... 10,812 S30,000 Liberty Mutual Insurance 8.20% due 05/04/07......................... 31,022 S10,000 Lumbermens Mutual Casualty 9.15% due 07/01/26......................... 8,689 S30,000 New England Mutual Life Insurance 7.875% due 02/15/24........................ 30,322 39,989 Postal Square L.P. 8.95% due 06/15/22......................... 48,738 27,600 Torchmark Corp. 8.25% due 08/15/09......................... 29,231 30,000 Toyota Motor Credit Corp. 5.50% due 12/15/08......................... 28,208 25,000 Transamerica Financial 6.125% due 11/01/01........................ 24,962 10,000 Travelers Property & Casualty 6.75% due 04/15/01......................... 10,004 43,000 TXU Eastern Funding Co. 6.45% due 05/15/05......................... 41,879 S40,000 USAA Capital Corp. 6.90% due 11/01/02......................... 40,528 50,000 Wells Fargo & Co. 6.50% due 09/03/02......................... 50,332 --------------- 939,952 ---------------
______________________________________ 53 ______________________________________ HARTFORD ADVISERS HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- ---------------
CORPORATE NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- FOOD, BEVERAGE & TOBACCO -- 0.4% $ 30,000 Coca-Cola Enterprises, Inc. 6.75% due 09/15/28......................... $ 28,564 35,000 Whitman Corp. 6.375% due 05/01/09........................ 32,650 --------------- 61,214 --------------- FOREST & PAPER PRODUCTS -- 0.2% 25,000 Boise Cascade Office 7.05% due 05/15/05......................... 23,705 --------------- HEALTH SERVICES -- 0.2% 29,000 United Healthcare Corp. 6.60% due 12/01/03......................... 28,820 --------------- MACHINERY -- 0.2% 25,000 Parker Hannifin Corp. 5.65% due 09/15/03......................... 24,636 --------------- MEDIA & ENTERTAINMENT -- 0.4% 30,000 Rockwell International Corp. 6.70% due 01/15/28......................... 26,235 19,420 Scripps (E.W) Co. (The) 6.375% due 10/15/02........................ 19,545 10,400 Times Mirror Co. 7.50% due 07/01/23......................... 10,350 --------------- 56,130 --------------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.1% 22,000 Becton, Dickinson & Co. 6.70% due 08/01/28......................... 19,995 --------------- METALS, MINERALS & MINING -- 0.2% 30,000 Alcan Aluminum Ltd. 7.25% due 11/01/28......................... 28,278 --------------- REAL ESTATE -- 0.1% 20,000 Liberty Property Trust (REIT) 7.25% due 08/15/07......................... 19,684 --------------- RETAIL -- 1.2% 40,000 Albertson's, Inc. 6.55% due 08/01/04......................... 39,222 20,200 Dayton Hudson Corp. 5.875% due 11/01/08........................ 18,996 50,000 Home Depot, Inc. (The) 6.50% due 09/15/04......................... 50,744 50,000 Wal-Mart Stores, Inc. 6.875% due 08/10/09........................ 52,245 --------------- 161,207 --------------- SOFTWARE & SERVICES -- 0.2% 25,000 Computer Associates International, Inc. 6.50% due 04/15/08......................... 21,908 --------------- TRANSPORTATION -- 1.3% 22,380 Continental Airlines 6.90% due 01/02/18......................... 22,292 PRINCIPAL MARKET AMOUNT VALUE - -------------------- ---------------
TRANSPORTATION -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- $ 30,000 DaimlerChrysler North America Holding Corp. 7.125% due 04/10/03........................ $ 30,066 30,000 DaimlerChrysler North America Holding Corp. 7.75% due 05/27/03......................... 30,377 +20,000 Dana Corp. 6.25% due 03/01/04......................... 15,694 35,000 Ford Motor Co. 6.625% due 10/01/28........................ 29,626 35,000 General Motors Corp. 6.75% due 05/01/28......................... 30,673 13,135 Honeywell International, Inc. 6.60% due 04/15/01......................... 13,128 --------------- 171,856 --------------- UTILITIES -- 1.2% 45,000 Alabama Power Co. 7.125% due 08/15/04........................ 45,921 21,350 Duke Energy Corp. 6.00% due 12/01/28......................... 17,820 15,000 Hydro-Quebec 7.375% due 02/01/03........................ 15,397 40,000 Kansas City Power & Light Co. 7.125% due 12/15/05........................ 40,375 11,000 Pacific Gas & Electric 7.875% due 03/01/02........................ 10,121 10,000 Southern California Gas Co. 5.75% due 11/15/03......................... 9,921 20,000 Williams Cos., Inc. (The) 6.50% due 11/15/02......................... 19,984 --------------- 159,539 --------------- Total corporate notes........................ $ 2,264,207 =============== FOREIGN GOVERNMENT AGENCIES -- 0.1% S20,000 Santiago Air 6.95% due 07/01/12......................... $ 19,071 --------------- Total foreign government agencies............ $ 19,071 =============== FOREIGN GOVERNMENT BONDS -- 0.1% 12,000 City of Naples Italy 7.52% due 07/15/06......................... $ 12,315 --------------- Total foreign government bonds............... $ 12,315 =============== MUNICIPAL BONDS -- 0.1% 7,000 Miami Beach, Florida 8.80% due 12/01/15......................... $ 7,473 9,290 Mount Sinai School of Medicine NY 6.00% due 07/01/03......................... 9,290 --------------- Total municipal bonds........................ $ 16,763 =============== U.S. TREASURIES & FEDERAL AGENCIES -- 17.4% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.4% 49,947 7.144% due 10/01/10.......................... $ 52,382 ---------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 54 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - -------------------- ---------------
U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - -------------------- --------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 4.0% $ 234,526 6.00% due 06/15/24 - 08/15/29................ $ 227,726 162,373 6.50% due 03/15/26 - 08/15/29................ 160,643 66,463 7.00% due 11/15/23 - 11/15/24................ 66,983 96,984 8.00% due 09/15/26 - 08/15/30................ 99,427 700 9.00% due 06/20/16 - 07/20/16................ 730 --------------- 555,509 --------------- U.S. GOVERNMENT AGENCIES -- 0.4% 50,000 Tennessee Valley Authority 6.00% due 03/15/13......................... 49,509 --------------- U.S. TREASURY BONDS -- 11.9% +350,000 5.75% due 10/31/02 - 04/30/03................ 354,121 +100,000 5.875% due 11/15/05.......................... 103,392 +200,000 6.00% due 08/15/09........................... 211,097 +500,000 6.25% due 08/15/23........................... 540,732 +200,000 6.375% due 08/15/02.......................... 203,440 +100,000 6.50% due 08/15/05........................... 105,737 +100,000 7.25% due 08/15/04........................... 106,889 --------------- 1,625,408 --------------- U.S. TREASURY NOTES -- 0.7% +100,000 5.50% due 05/15/09........................... 102,085 --------------- Total U.S. treasuries & federal agencies..... $ 2,384,893 =============== SHORT-TERM SECURITIES -- 2.0% REPURCHASE AGREEMENT 276,607 Joint Repurchase Agreement (See Note 2(d)) 6.002% due 01/02/01........................ $ 276,607 --------------- Total short-term securities.................. $ 276,607 ===============
MARKET VALUE -------------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $42,834)............................... 0.3% $ 42,695 Total commercial mortgage-backed securities (cost $71,045).............. 0.5 73,600 Total common stocks (cost $6,486,852)... 59.6 8,158,764 Total corporate notes (cost $2,329,832)............................ 16.5 2,264,207 Total foreign government agencies (cost $19,989)......................... 0.1 19,071 Total foreign government bonds (cost $12,000)............................... 0.1 12,315 Total municipal bonds (cost $16,533).... 0.1 16,763 Total U.S. treasuries & federal agencies (cost $2,311,930)...................... 17.4 2,384,893 Total short-term securities (cost $276,607).............................. 2.0 276,607 ----- -------------- Total investment in securities (total cost $11,567,622)............... 96.6 13,248,915 Cash, receivables and other assets...... 3.4 441,209 Securities lending collateral (See Note 2(i))............................. 12.3 1,686,995 Payable for Fund shares redeemed........ (0.0) (6,988) Securities lending collateral payable to brokers (See Note 2(i))................ (12.3) (1,686,995) Other liabilities....................... (0.0) (382) ----- -------------- Net assets.............................. 100.0% $ 13,682,754 ===== ==============
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 7,000,000 shares authorized; 5,134,223 shares outstanding...................................... $ 513,422 Capital surplus................................... 10,589,796 Accumulated undistributed net investment income... 261,292 Accumulated undistributed net realized gain on investments...................................... 636,951 Unrealized appreciation of investments............ 1,681,293 -------------- Net assets........................................ $ 13,682,754 ==============
Class IA Net asset value per share ($13,430,507 DIVIDED BY 5,039,485 shares outstanding) (6,500,000 shares authorized)....... $2.67 ===== Class IB Net asset value per share ($252,247 DIVIDED BY 94,738 shares outstanding) (500,000 shares authorized)...................................... $2.66 =====
* Non-income producing during the period S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $199,168 or 1.5% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). ______________________________________ 55 ______________________________________ HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- CORPORATE NOTES -- 71.2% APPAREL & TEXTILE -- 0.3% $ 266 Levi Strauss & Co. 7.00% due 11/01/06.................... $ 209 ----------- CHEMICALS -- 3.0% 225 ARCO Chemical Co. 9.80% due 02/01/20.................... 213 EUR S450 CP Kelko APS Capital Corp. 11.875% due 09/15/10.................. 389 450 Equistar Chemcals L.P. 8.50% due 02/15/04.................... 417 150 General Chemical Industrial Products, Inc. 10.625% due 05/01/09.................. 50 +60 Georgia Gulf Corp. 10.375% due 11/01/07.................. 56 S500 Huntsman Corp. 9.50% due 07/01/07.................... 300 210 Huntsman ICI Chemicals LLC 10.125% due 07/01/09.................. 204 425 Lyondell Chemical Co. 9.625% due 05/01/07................... 412 ----------- 2,041 ----------- COMMUNICATIONS -- 13.7% 300 Asia Global Crossing Ltd. 13.375% due 10/15/10.................. 259 +300 Centennial Communications 10.75% due 12/15/08................... 282 300 Focal Communications CP 11.875% due 01/15/10.................. 204 108 Global Crossing Holdings Ltd. 9.50% due 11/15/09.................... 102 +800 Global Crossing Holdings Ltd. 9.625% due 05/15/08................... 752 600 ICG Services, Inc. 0.00% due 05/01/08.................... 48 600 Level 3 Communications 0.00% due 03/15/10.................... 279 EUR 1,175 Level 3 Communications 11.25% due 03/15/10................... 938 +100 McLeodUSA, Inc. 8.125% due 02/15/09................... 86 +100 McLeodUSA, Inc. 9.25% due 07/15/07.................... 92 100 McLeodUSA, Inc. 9.50% due 11/01/08.................... 364 +450 Metromedia Fiber Network, Inc. 10.00% due 11/15/08................... 374 1,200 NEXTEL Communications, Inc. 9.375% due 11/15/09................... 1,119 +1,050 NEXTLINK Communications, Inc. 10.75% due 11/15/08................... 866 +150 NEXTLINK Communications, Inc. 12.50% due 04/15/06................... 135 S300 NTL Communications Corp. 11.875% due 10/01/10.................. 267 850 Primus Telecommunications Group, Inc. 11.25% due 01/15/09................... 230 PRINCIPAL MARKET AMOUNT VALUE - ------------ -----------
COMMUNICATIONS -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- $ 650 RCN Corp. 10.125% due 01/15/10.................. $ 332 250 Rhythms Netconnections, Inc. 14.00% due 02/15/10................... 58 +300 Spectrasite Holdings, Inc. 10.75% due 03/15/10................... 278 150 Telecorp PCS, Inc. 10.625% due 07/15/10.................. 152 590 Time Warner Telecom, Inc. 9.75% due 07/15/08.................... 543 1,795 Williams Communications Group, Inc. 10.875% due 10/01/09.................. 1,323 450 Winstar Communications, Inc. 12.75% due 04/15/10................... 297 ----------- 9,380 ----------- CONSTRUCTION -- 2.1% +150 Del Webb Corp. 9.375% due 05/01/09................... 126 350 Kaufman & Broad Home Corp. 7.750% due 10/15/04................... 327 250 Kaufman & Broad Home Corp. 9.625% due 11/15/06................... 242 100 MDC Holdings, Inc. 8.375% due 02/01/08................... 91 150 Newport News Shipbuilding, Inc. 8.625% due 12/01/06................... 151 300 Newport News Shipbuilding, Inc. 9.25% due 12/01/06.................... 305 125 Toll Corp. 7.75% due 09/15/07.................... 117 100 Toll Corp. 8.75% due 11/15/06.................... 98 ----------- 1,457 ----------- CONSUMER DURABLES -- 0.8% 325 HMH Properties, Inc. 8.45% due 12/01/08.................... 315 550 Owens-Illinois, Inc. 7.80% due 05/15/18.................... 253 ----------- 568 ----------- CONSUMER NON-DURABLES -- 1.5% 700 American Standard Co., Inc. 7.375% due 02/01/08................... 658 +710 Polaroid Corp. 11.50% due 02/15/06................... 391 ----------- 1,049 ----------- CONSUMER SERVICES -- 1.3% +800 Service Corp. International 6.50% due 03/15/08.................... 416 400 Service Corp. International 7.875% due 02/01/13................... 210 250 Six Flags Entertainment Corp. 8.875% due 04/01/06................... 235 ----------- 861 -----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 56 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - ------------ -----------
CORPORATE NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- DRUGS -- 1.1% $ 800 Watson Pharmaseuticals, Inc. 7.125% due 05/15/08................... $ 749 ----------- ELECTRONICS -- 0.5% 550 Condor Systems, Inc. 11.875% due 05/01/09.................. 362 ----------- ENERGY & SERVICES -- 8.6% 200 Belco Oil & Gas Corp. 8.875% due 09/15/07................... 187 125 Clark Refining & Marketing, Inc. 8.625% due 08/15/08................... 94 200 CODA Energy, Inc. 10.50% due 04/01/06................... 201 75 Cross Timbers Oil Co. 8.75% due 11/01/09.................... 76 100 Newpark Resources, Inc. 8.625% due 12/15/07................... 93 103 Nuevo Energy Co. 9.50% due 06/01/08.................... 104 300 P&L Coal Holdings Corp. 9.625% due 05/15/08................... 299 550 Pioneer Natural Resources Co. 6.50% due 01/15/08.................... 494 S550 Plains Resources, Inc. 10.25% due 03/15/06................... 550 850 Pogo Producing Co. 10.375% due 02/15/09.................. 884 150 R&B Falcon Corp. 6.50% due 04/15/03.................... 143 100 R&B Falcon Corp. 7.375% due 04/15/18................... 91 550 R&B Falcon Corp. 11.375% due 03/15/09.................. 635 525 Seagull Energy Corp. 7.50% due 09/15/27.................... 461 300 Snyder Oli Corp. 8.75% due 06/15/07.................... 311 675 Tesoro Petroleum Corp. 9.00% due 07/01/08.................... 648 400 Tuboscope, Inc. 7.50% due 02/15/08.................... 370 100 Vintage Petroleum, Inc. 9.00% due 12/15/05.................... 102 125 Vintage Petroleum, Inc. 9.75% due 06/30/09.................... 133 ----------- 5,876 ----------- FINANCIAL SERVICES -- 2.1% 1,180 Conseco, Inc. 6.80% due 06/15/05.................... 743 250 Golden State Holdings, Inc. 6.75% due 08/01/01.................... 248 150 Golden State Holdings, Inc. 7.125% due 08/01/05................... 141 150 Interpool, Inc. 7.350% due 08/01/07................... 113 PRINCIPAL MARKET AMOUNT VALUE - ------------ -----------
FINANCIAL SERVICES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- $ 150 Rogers Cantel, Inc. 9.375% due 06/01/08................... $ 155 50 Rogers Cantel, Inc. 9.75% due 06/01/08.................... 53 ----------- 1,453 ----------- FOOD, BEVERAGE & TOBACCO -- 1.9% 600 Canandaigua Brands, Inc. 8.50% due 03/01/09.................... 587 575 ConAgra, Inc. 9.75% due 03/01/21.................... 702 ----------- 1,289 ----------- FOREST & PAPER PRODUCTS -- 2.0% 500 Boise Cascade Corp. 7.35% due 02/01/16.................... 407 175 Container Corp. of America 11.25% due 05/01/04................... 175 600 Georgia-Pacific Corp. 7.75% due 11/15/29.................... 478 150 Stone Container Corp. 10.75% due 10/01/02................... 152 125 Stone Container Corp. 12.58% due 08/01/16................... 128 ----------- 1,340 ----------- HEALTH SERVICES -- 11.3% 200 Columbia/HCA Healthcare Corp. 6.91% due 06/15/05.................... 193 400 Columbia/HCA Healthcare Corp. 7.05% due 12/01/27.................... 322 530 Columbia/HCA Healthcare Corp. 7.50% due 11/15/95.................... 439 150 Columbia/HCA Healthcare Corp. 9.00% due 12/15/14.................... 156 345 HEALTH SOUTH Corp. 3.25% due 04/01/03.................... 309 530 HEALTH SOUTH Corp. 6.875% due 06/15/05................... 500 460 HEALTH SOUTH Corp. 7.00% due 06/15/08.................... 421 1,000 IASIS Helathcare Corp. 13.00% due 10/15/09................... 910 700 Manor Care, Inc. 7.50% due 06/15/06.................... 619 550 Owens & Minor, Inc. 10.875% due 06/01/06.................. 572 960 Quorum Health Group, Inc. 8.75% due 11/01/05.................... 967 200 Tenet Healthcare Corp. 7.625% due 06/01/08................... 197 855 Tenet Healthcare Corp. 8.00% due 01/15/05.................... 866 100 Tenet Healthcare Corp. 8.625% due 12/01/03................... 102 600 Triad Hospitals Holdings, Inc. 11.00% due 05/15/09................... 634
______________________________________ 57 ______________________________________ HARTFORD HIGH YIELD HLS FUND - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ -----------
CORPORATE NOTES -- (CONTINUED) HEALTH SERVICES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- $ 500 Universal Health Services, Inc. 8.75% due 08/15/05.................... $ 505 ----------- 7,712 ----------- HOTELS & GAMING -- 0.9% 200 MGM Grand, Inc. 6.875% due 02/06/08................... 187 400 Park Place Entertainment 9.375% due 02/15/07................... 412 50 Starwood Hotels & Resorts Worldwide, Inc. 6.75% due 11/15/05.................... 49 ----------- 648 ----------- MACHINERY -- 0.0% 955 Grove Holdings LLC 0.00% due 05/01/09.................... 10 ----------- MEDIA & ENTERTAINMENT -- 8.2% 325 Adelphia Business Solutions, Inc. 12.00% due 11/01/07................... 124 400 Adelphia Communications Corp. 8.875% due 01/15/07................... 349 200 Cablevision Systems Corp. 8.125% due 08/15/09................... 204 800 Charter Communications Holdings LLC 8.625% due 04/01/09................... 726 300 Comcast Corp. 10.250% due 10/15/01.................. 307 350 CSC Holdings, Inc. 7.625% due 07/15/18................... 319 400 CSC Holdings, Inc. 8.125% due 07/15/09................... 408 25 CSC Holdings, Inc. 9.25% due 11/01/05.................... 26 500 Echostar DBS Corp. 9.375% due 02/01/09................... 485 500 Fox Kids Worldwide, Inc. 9.25% due 11/01/07.................... 493 600 Hollinger International Publishing, Inc. 9.25% due 02/01/06.................... 600 850 Liberty Media Group 8.25% due 02/01/30.................... 775 350 PRIMEDIA, Inc. 7.625% due 04/01/08................... 322 250 PRIMEDIA, Inc. 10.25% due 06/01/04................... 250 225 World Color Press, Inc. 7.75% due 02/15/09.................... 220 ----------- 5,608 ----------- METALS, MINERALS & MINING -- 0.7% 50 AK Steel Corp. 7.875% due 02/15/09................... 44 300 Bethlehem Steel Corp. 7.625% due 08/01/04................... 233 475 Crown Cork & Seal Co. 7.375% due 12/15/26................... 200 PRINCIPAL MARKET AMOUNT VALUE - ------------ -----------
METALS, MINERALS & MINING -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- $ 420 LTV Corp. 11.75% due 11/15/09................... $ 8 ----------- 485 ----------- REAL ESTATE -- 0.1% 100 Trizec Finance Ltd. 10.875% due 10/15/05.................. 100 ----------- RESEARCH & TESTING FACILITIES -- 1.4% 975 Sequa Corp. 9.00% due 08/01/09.................... 968 ----------- RUBBER & PLASTICS PRODUCTS -- 0.5% 600 Goodyear Tire & Rubber Co. (The) 7.00% due 03/15/28.................... 356 ----------- SOFTWARE & SERVICES -- 0.2% 450 PSINet, Inc. 10.00% due 02/15/05................... 117 ----------- TRANSPORTATION -- 1.2% 750 Teekay Shipping Corp. 8.32% due 02/01/08.................... 720 100 United Air Lines, Inc. 9.125% due 01/15/12................... 101 ----------- 821 ----------- UTILITIES -- 7.8% 660 AES Corp. (The) 9.50% due 06/01/09.................... 683 100 AES Corp. (The) 10.25% due 07/15/06................... 103 600 Allied Waste North American, Inc. 7.875% due 01/01/09................... 557 +300 Allied Waste North American, Inc. 10.00% due 08/01/09................... 283 375 Browning-Ferris Industries, Inc. 7.40% due 09/15/35.................... 285 100 CMS Energy Corp. 7.50% due 01/15/09.................... 92 250 CMS Energy Corp. 7.625% due 11/15/04................... 240 330 CMS Energy Corp. 6.75% due 01/15/04.................... 312 170 CMS Energy Corp. 9.875% due 10/15/07................... 177 500 Cogentrix Energy, Inc. 8.75% due 10/15/08.................... 510 125 El Paso Electric Co. 9.40% due 05/01/11.................... 137 145 Kansas Gas & Electric Co. 7.60% due 12/15/03.................... 143 850 Pacific Gas & Electric Co. 6.75% due 10/01/23.................... 680 250 Waste Management, Inc. 6.875% due 05/15/09................... 235 1,000 Western Resources, Inc. 7.65% due 04/15/23.................... 902 ----------- 5,339 ----------- Total corporate notes................... $ 48,798 ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 58 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- FOREIGN/YANKEE BONDS & NOTES -- 13.3% FOREIGN CORPORATIONS -- 11.3% $ 600 British Sky Broadcasting Group 8.20% due 07/15/09.................... $ 568 1,050 British Telecommunications PLC 8.625% due 12/15/30................... 1,051 300 Domtar, Inc. 8.75% due 08/01/06.................... 322 EUR 600 Flowerserve Finance BV 12.25% due 08/15/10................... 569 100 Gulf Canada Resources Ltd. 9.625% due 07/01/05................... 103 50 Gulf Canada Resources Ltd. 8.375% due 11/15/05................... 51 +900 Inco Ltd. 9.60% due 06/15/22.................... 893 EUR 585 Kappa Beheer BV 10.625% due 07/15/09.................. 561 675 Petroleos Mexicanos 9.50% due 09/15/27.................... 695 100 Placer Dome, Inc. 7.125% due 06/15/07................... 95 550 Rogers Cablesystems, Inc. 10.00% due 12/01/07................... 578 243 Rogers Cablesystems, Inc. 10.125% due 09/01/12.................. 255 360 Telewest Communications PLC 11.00% due 10/01/07................... 313 950 Telewest Communications PLC 11.25% due 11/01/08................... 848 250 Tembec Industries, Inc. 8.625% due 06/30/09................... 248 550 United Mexican States 9.875% due 02/01/10................... 590 ----------- 7,740 ----------- FOREIGN GOVERNMENTS -- 2.0% AUD 1,000 Australian Government 12.00% due 11/15/01................... 587 500 Republic of Brazil 12.75% due 01/15/20................... 489 250 Republic of Colombia 8.375% due 02/15/27................... 164 S290 Republic of Ecuador 4.00% 08/15/30........................ 110 SD S17 Republic of Ecuador 12.00% due 11/15/12................... 11 ----------- 1,361 ----------- Total foreign/yankee bonds & notes...... $ 9,101 =========== SHARES - ------------ PREFERRED STOCKS -- 2.0% ENERGY & SERVICES -- 1.1% 32 Coastal Finance Corp.................... $ 780 ----------- METALS, MINERALS & MINING -- 0.9% 29 Rio Algom, Ltd.......................... 602 ----------- Total preferred stocks.................. $ 1,382 =========== PRINCIPAL MARKET AMOUNT VALUE - ------------ ----------- U.S. TREASURIES & FEDERAL AGENCIES -- 3.2% $ 2,157 U.S. TREASURY INFLATION-INDEXED SECURITIES -- 3.2% 3.625% due 07/15/02................... $ 2,176 ----------- Total U.S. treasuries & federal agenices................................ $ 2,176 =========== SHORT-TERM SECURITIES -- 10.3% REPURCHASE AGREEMENT 7,043 Joint Repurchase Agreement (See Note 2(d)) 6.00% due 01/02/01.................... $ 7,043 ----------- Total short-term securities............. $ 7,043 ===========
DIVERSIFICATION OF NET ASSETS: Total corporate notes (cost $52,129)........ 71.2% $ 48,798 Total foreign/yankee bonds & notes (cost $9,323).............................. 13.3 9,101 Total preferred stocks (cost $1,264)........ 2.0 1,382 Total U.S. treasuries & federal agencies (cost $2,170).............................. 3.2 2,176 Total short-term securities (cost $7,043).............................. 10.3 7,043 ----- ---------- Total investment in securities (total cost $71,929)....................... 100.0 68,500 Cash, receivables and other assets.......... 3.0 2,099 Securities lending collateral (See Note 2(i))................................. 5.4 3,721 Payable for securities purchased............ (3.0) (1,989) Payable for dividends....................... (0.0) (8) Securities lending collateral payable to brokers (See Note 2(i)).................... (5.4) (3,721) Other liabilities........................... (0.0) (1) ----- ---------- Net assets.................................. 100.0% $ 68,601 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.001 per share; 800,000 shares authorized; 73,030 shares outstanding....... $ 73 Capital surplus..................................... 74,391 Accumulated undistributed net investment income..... 79 Distribution in excess of net realized gain on investments........................................ (2,521) Unrealized depreciation of investments.............. (3,429) Unrealized depreciation of other assets and liabilities in foreign currencies.................. 8 ---------- Net assets.......................................... $ 68,601 ==========
Class IA Net asset value per share ($66,104 DIVIDED BY 70,368 shares outstanding) (600,000 shares authorized).......... $0.94 ===== Class IB Net asset value per share ($2,497 DIVIDED BY 2,662 shares outstanding) (200,000 shares authorized)................. $0.94 =====
S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $1,627 or 2.4% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). ______________________________________ 59 ______________________________________ HARTFORD BOND HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- ASSET-BACKED SECURITIES -- 0.1% $ 819 California Infrastructure Southern California Co., Series 1997-1, Class A3 6.17% due 03/25/03.................... $ 818 ---------- Total asset-backed securities........... $ 818 ========== COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.0% 11,400 Chemical Master Credit Card Trust, Series 1996-1, Class A 5.55% due 09/15/03.................... $ 11,395 7,600 Comed Transitional Funding Trust, Series 1998-1, Class A5 5.44% due 03/25/07.................... 7,452 2,184 NorthWest Airlines Trust, Series C 11.30% due 06/21/14................... 2,535 ---------- Total collateralized mortgage obligations............................. $ 21,382 ========== CORPORATE NOTES -- 25.2% CHEMICALS -- 0.6% 5,700 du Pont (E.I.) de Nemours & Co. 6.75% due 09/01/07.................... $ 5,838 ---------- COMMUNICATIONS -- 0.6% 1,000 Lucent Technologies, Inc. 5.50% due 11/15/08.................... 795 2,510 Lucent Technologies, Inc. 6.50% due 01/15/28.................... 1,727 5,000 William Communications Group, Inc. 10.875% due 10/01/09.................. 3,725 ---------- 6,247 ---------- CONSUMER NON-DURABLES -- 0.1% 1,000 Tosco Corp. 8.125% due 02/15/30................... 1,077 ---------- EDUCATION -- 0.6% 3,200 Massachusetts Institute of Technology 7.25% due 11/02/2096.................. 3,204 3,500 Yale University 7.375% due 04/15/2096................. 3,519 ---------- 6,723 ---------- ENERGY & SERVICES -- 6.2% 8,250 Amoco Co. 6.00% due 06/09/08.................... 8,103 1,500 Chesapeake & Potomac Telephone Co. 8.30% due 08/01/31.................... 1,605 3,600 CMS Panhandle Holding Co. 6.125% due 03/15/04................... 3,465 5,000 Lasmo (USA), Inc. 7.125% due 06/01/03................... 5,076 6,500 Noble Drilling Corp. 7.50% due 03/15/19.................... 6,389 6,800 Occidental Petroleum Corp. 7.375% due 11/15/08................... 6,985 3,500 Ocean Energy, Inc. 7.625% due 07/01/05................... 3,408 1,000 Pioneer Natural Resources Co. 6.50% due 01/15/08.................... 898 PRINCIPAL MARKET AMOUNT VALUE - ---------- ----------
CORPORATE NOTES -- (CONTINUED) ENERGY & SERVICES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- $ 5,650 Pioneer Natural Resources Co. 7.20% due 01/15/28.................... $ 4,503 1,975 R&B Falcon Corp. 6.75% due 04/15/05.................... 1,857 2,000 R&B Falcon Corp. 7.375% due 04/15/18................... 1,820 2,500 R&B Falcon Corp. 11.375% due 03/15/09.................. 2,888 9,511 Seagull Energy Corp. 7.50% due 09/15/27.................... 8,345 1,000 Tesoro Petroleum Corp. 9.00% due 07/01/08.................... 960 2,850 Tuboscope, Inc. 7.50% due 02/15/08.................... 2,633 2,500 Union Oil Co. of California 9.375% due 02/15/11................... 2,956 4,500 Vaster Resources, Inc. 6.50% due 04/01/09.................... 4,521 ---------- 66,412 ---------- FINANCIAL SERVICES -- 4.0% 2,350 Federal Home Loan Bank 7.668% due 02/20/07................... 2,216 5,000 Ford Motor Credit Co. 7.375% due 10/28/09................... 4,995 2,500 Ford Motor Credit Co. 7.875% due 06/15/10................... 2,576 3,800 General Motors Acceptance Corp. 6.858% due 08/18/03................... 3,790 4,850 Golden State Holdings, Inc. 6.75% due 08/01/01.................... 4,815 7,900 Inter-American Development Bank 8.875% due 06/01/09................... 9,371 500 Interpool, Inc. 7.20% due 08/01/07.................... 375 S9,900 NI Source Finance Corp. 7.875% due 11/15/10................... 10,400 4,300 Trenwick Group, Inc. 6.70% due 04/01/03.................... 4,168 ---------- 42,706 ---------- FOOD, BEVERAGE & TOBACCO -- 1.9% 12,120 Archer-Daniels-Midland Co. 6.95% due 12/15/97.................... 10,619 5,000 ConAgra Foods, Inc. 8.25% due 09/15/30.................... 5,440 3,738 ConAgra Foods, Inc. 9.75% due 03/01/21.................... 4,561 ---------- 20,620 ---------- FOREST & PAPER PRODUCTS -- 1.2% 3,600 International Paper Co. 6.875% due 04/15/29................... 3,143 4,500 Mead Corp. (The) 7.55% due 03/01/47.................... 3,857 +6,300 Weyerhaeuser Co. 7.25% due 07/01/13.................... 6,224 ---------- 13,224 ----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 60 ______________________________________
PRINCIPAL MARKET AMOUNT VALUE - ---------- ----------
CORPORATE NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- HEALTH SERVICES -- 2.1% $ 2,250 Columbia/HCA Healthcare Corp. 7.05% due 12/01/27.................... $ 1,811 1,675 Columbia/HCA Healthcare Corp. 7.50% due 12/15/23.................... 1,440 3,150 Columbia/HCA Healthcare Corp. 7.50% due 11/15/95.................... 2,612 3,520 HEALTH SOUTH Corp. 6.875% due 06/15/05................... 3,317 570 HEALTH SOUTH Corp. 7.00% due 06/15/08.................... 521 S+1,000 HEALTH SOUTH Corp. 10.75% due 10/01/08................... 1,050 +5,640 Manor Care, Inc. 7.50% due 06/15/06.................... 4,987 6,000 Tenet Healthcare Corp. 8.00% due 01/15/05.................... 6,075 ---------- 21,813 ---------- HOTELS & GAMING -- 0.0% 62 Harrah's Operating Co., Inc. 7.875% due 12/15/05................... 62 ---------- MEDIA & ENTERTAINMENT -- 1.1% 1,000 Continental Cablevision, Inc. 9.50% due 08/01/13.................... 1,094 1,750 CSC Holdings, Inc. 7.25% due 07/15/08.................... 1,701 10,000 Liberty Media Group 8.25% due 02/01/30.................... 9,123 ---------- 11,918 ---------- METALS, MINERALS & MINING -- 1.6% 15,000 Lockheed Martin Corp. 8.50% due 12/02/29.................... 17,022 ---------- RETAIL -- 1.1% 4,410 Kmart Corp. 8.96% due 12/10/19.................... 2,835 8,585 Stop & Shop Cos., Inc. (The) 9.75% due 02/01/02.................... 8,785 ---------- 11,620 ---------- RUBBER & PLASTICS PRODUCTS -- 0.2% 4,130 Goodyear Tire & Rubber Co. (The) 7.00% due 03/15/28.................... 2,452 ---------- TRANSPORTATION -- 0.7% 1,500 Norfolk Southern Corp. 6.875% due 05/01/01................... 1,500 2,000 Rockwell International Corp. 5.20% due 01/15/98.................... 1,277 4,512 US Air, Inc. 6.76% due 04/15/08.................... 4,296 ---------- 7,073 ---------- UTILITIES -- 3.2% 2,875 Browning-Ferris Industries, Inc. 7.40% due 09/15/35.................... 2,183 1,750 Cleveland Electric Illuminating Co. 7.13% due 07/01/07.................... 1,775 3,225 CMS Energy Corp. 6.75% due 01/15/04.................... 3,046 PRINCIPAL MARKET AMOUNT VALUE - ---------- ----------
UTILITIES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- $ 800 CMS Energy Corp. 7.50% due 01/15/09.................... $ 734 1,800 CMS Energy Corp. 9.875% due 10/15/07................... 1,875 1,341 El Paso Electric Co. 9.40% due 05/01/11.................... 1,471 S10,000 Entergy Gulf States, Inc. 7.936% due 06/02/03................... 10,011 2,000 Pacific Gas & Electric Co. 6.75% due 10/01/23.................... 1,600 5,400 Pacific Gas & Electric Co. 7.05% due 03/01/24.................... 4,065 3,100 PacifiCorp 6.12% due 01/15/06.................... 3,037 4,000 Public Service Electric & Gas Co. 7.00% due 09/01/24.................... 3,718 475 Waste Management, Inc. 6.875% due 05/15/09................... 446 ---------- 33,961 ---------- Total corporate notes................... $ 268,768 ========== FOREIGN/YANKEE BONDS & NOTES -- 17.0% FOREIGN CORPORATIONS -- 8.4% 7,000 Bayerische Landesbank Girozentrale (NY) 6.20% due 02/09/06.................... $ 6,920 8,500 British Sky Broadcasting Group 8.20% due 07/15/09.................... 8,040 10,000 British Telecommunications PLC 8.625% due 12/15/30................... 10,013 17,000 Deutsche Telekom International Finance AG 8.25% due 06/15/30.................... 16,794 6,500 Enterprise Oil PLC 6.50% due 05/01/05.................... 6,422 8,000 Enterprise Oil PLC 6.70% due 09/15/07.................... 7,868 1,000 Gulf Canada Resources Ltd. 8.25% due 12/30/99.................... 1,010 1,200 Gulf Canada Resources Ltd. 8.375% due 03/15/17................... 1,212 S3,500 Koninklijkke KPN N.V. 8.00% due 10/01/10.................... 3,273 12,650 Marconi PLC 8.375% due 09/15/30................... 11,884 3,600 Placer Dome, Inc. 7.125% due 05/15/03................... 3,564 7,300 Placer Dome, Inc. 7.125% due 06/15/07................... 6,939 1,230 Rogers Cablesystems, Inc. 10.125% due 09/01/12.................. 1,293 3,660 Shaw Communications, Inc. 8.25% due 04/11/10.................... 3,850 ---------- 89,082 ---------- FOREIGN GOVERNMENTS -- 8.6% EUR 25,650 Deutschland Republic 8.375% due 05/21/01................... 24,387 EUR 58,160 France BTAN 3.00% due 07/12/01.................... 54,096
______________________________________ 61 ______________________________________ HARTFORD BOND HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ----------
FOREIGN/YANKEE BONDS & NOTES -- (CONTINUED) FOREIGN GOVERNMENTS -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- $ 1,800 Hydro-Quebec 8.40% due 01/15/22.................... $ 2,064 8,850 Province of Quebec 5.75% due 02/15/09.................... 8,543 2,200 Province of Quebec 7.50% due 09/15/29.................... 2,369 ---------- 91,459 ---------- Total foreign/yankee bonds & notes...... $ 180,541 ========== SHARES - ---------------------------------------------------------------- PREFERRED STOCKS -- 0.2% ENERGY & SERVICES 99 Coastal Finance Corp.................... $ 2,412 ---------- Total preferred stocks.................. $ 2,412 ========== PRINCIPAL AMOUNT - ---------------------------------------------------------------- U.S. TREASURIES & FEDERAL AGENCIES -- 49.3% FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 10.3% $ 103,692 6.00% due 07/01/12 - 01/25/31........... $ 101,484 4,764 6.50% due 10/01/12 - 09/01/28........... 4,748 1,250 7.00% due 01/01/31...................... 1,251 2,837 FNMA Multifamily DUS 6.48% due 12/01/05.................... 2,882 ---------- 110,365 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 10.7% 115,575 6.00% due 10/15/28 - 06/15/29........... 112,155 1,250 7.00% due 06/15/29...................... 1,256 ---------- 113,411 ---------- U.S. TREASURY BONDS -- 11.2% +11,200 5.625% due 05/15/08..................... 11,504 +10,000 5.75% due 10/31/02...................... 10,090 +4,500 6.125% due 08/15/07 - 08/15/29.......... 4,780 +2,400 6.25% due 05/15/30...................... 2,679 +18,600 6.75% due 08/15/26...................... 21,492 +2,150 7.625% due 02/15/25..................... 2,721 6,370 8.75% due 05/15/20 - 08/15/20........... 8,746 +16,595 8.875% due 08/15/17..................... 22,539 +7,300 10.375% due 11/15/09.................... 8,553 +6,600 10.625% due 08/15/15.................... 9,974 +5,830 11.875% due 11/15/03.................... 6,849 +6,460 13.875% due 05/15/11.................... 9,008 ---------- 118,935 ---------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 6.7% +6,644 3.375% due 01/15/07..................... 6,521 +22,294 3.625% due 01/15/08..................... 22,135 +5,292 3.875% due 04/15/29..................... 5,426 +36,197 4.25% due 01/15/10...................... 37,617 ---------- 71,699 ---------- U.S. TREASURY NOTES -- 10.4% +5,400 5.25% due 05/15/04...................... 5,418 +7,800 5.50% due 05/15/09...................... 7,963 +10,180 5.875% due 11/15/04..................... 10,445 PRINCIPAL MARKET AMOUNT VALUE - ---------- ----------
U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) U.S. TREASURY NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ---------- ---------- $ +18,600 6.00% due 09/30/02...................... $ 18,844 +23,700 6.125% due 12/31/01..................... 23,843 7,600 6.50% due 10/15/06...................... 8,111 +34,200 6.75% due 05/15/05...................... 36,403 ---------- 111,027 ---------- Total U.S. treasuries & federal agencies................................ $ 525,437 ========== SHORT-TERM SECURITIES -- 10.7% REPURCHASE AGREEMENT 114,017 Joint Repurchase Agreement (See Note 2(d)) 6.00% due 01/02/01................ $ 114,017 ---------- Total short-term securities............. $ 114,017 ==========
DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $819).................................. 0.1% $ 818 Total collateralized mortgage obligations (cost $21,109)............. 2.0 21,382 Total corporate notes (cost $268,771)... 25.2 268,768 Total foreign/yankee bonds & notes (cost $174,217).............................. 17.0 180,541 Total preferred stocks (cost $2,214).... 0.2 2,412 Total U.S. treasuries & federal agencies (cost $508,846)........................ 49.3 525,437 Total short-term securities (cost $114,017).............................. 10.7 114,017 ----- --------- Total investment in securities (total cost $1,089,993)....................... 104.5 1,113,375 Cash, receivables and other assets...... 1.9 20,144 Securities lending collateral (See Note 2(i))............................. 24.3 259,107 Payable for securities purchased........ (6.3) (67,322) Payable for Fund shares redeemed........ (0.1) (1,488) Securities lending collateral payable to brokers (See Note 2(i))................ (24.3) (259,107) Other liabilities....................... (0.0) (115) ----- --------- Net assets.............................. 100.0% $1,064,594 ===== =========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 960,943 shares outstanding...................................... $ 96,094 Capital surplus................................... 909,957 Accumulated undistributed net investment income... 62,016 Distribution in excess of net realized gain on investments...................................... (26,923) Unrealized appreciation of investments............ 23,382 Unrealized appreciation of other assets and liabilities in foreign currencies................ 68 ---------- Net assets........................................ $1,064,594 ==========
Class IA Net asset value per share ($1,033,043 DIVIDED BY 932,432 shares outstanding) (1,600,000 shares authorized)...................................... $1.11 ===== Class IB Net asset value per share ($31,551 DIVIDED BY 28,511 shares outstanding) (400,000 shares authorized)...................................... $1.11 =====
S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $24,734 or 2.3% of net assets. + All or a portion of this security was on loan as of December 31, 2000 (See Note 2(i)). THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 62 ______________________________________ HARTFORD MORTGAGE SECURITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- ASSET-BACKED SECURITIES -- 0.4% $ 1,178 Corestates Home Equity Trust, Series 1994-1, Class A 6.65% due 05/15/09.................... $ 1,186 -------- Total asset-backed securities........... $ 1,186 ======== COLLATERALIZED MORTGAGE OBLIGATIONS -- 17.2% 7,277 Citicorp Mortgage Securities, Inc., Series 1994-8, Class A6 6.25% due 05/25/24.................... $ 7,132 5,058 Citicorp Mortgage Securities, Inc., Series 1998-8, Class A3 6.75% due 09/25/28.................... 4,940 3,168 Countrywide Home Loans, Series 1998-6, Class A 6.50% due 06/25/13.................... 3,133 S413 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B1 7.25% due 09/25/11.................... 410 S138 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B2 7.25% due 09/25/11.................... 135 2,413 GE Capital Mortgage Services, Inc., Series 1993-10, Class A3 6.50% due 09/25/23.................... 2,407 1,618 GE Capital Mortgage Services, Inc., Series 1994-19, Class A6 7.50% due 06/25/24.................... 1,616 3,349 GE Capital Mortgage Services, Inc., Series 1994-26, Class A 6.894% due 07/25/09................... 3,359 483 GE Capital Mortgage Services, Inc., Series 1996-1, Class B2 6.75% due 02/25/11.................... 473 1,447 GE Capital Mortgage Services, Inc., Series 1996-1, Class M 6.75% due 02/25/11.................... 1,443 492 GE Capital Mortgage Services, Inc., Series 1996-10, Class B1 6.75% due 06/25/11.................... 489 492 GE Capital Mortgage Services, Inc., Series 1996-10, Class B2 6.75% due 06/25/11.................... 481 2,950 GE Capital Mortgage Services, Inc., Series 1998-7, Class A 6.50% due 04/25/13.................... 2,948 5,725 GE Capital Mortgage Services, Inc., Series 1999-16, Class A 6.50% due 07/25/14.................... 5,716 1,669 Housing Securities, Inc., Series 1993-E, Class EI5 10.00% due 09/25/08................... 1,756 4,457 Norwest Asset Securities Corp., Series 1999-22, Class A1 6.50% due 09/25/14.................... 4,465 462 PNC Mortgage Securities Corp., Series 1996-2, Class B1 6.60% due 02/25/11.................... 457 PRINCIPAL MARKET AMOUNT VALUE - --------- --------
COLLATERALIZED MORTGAGE OBLIGATIONS -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- $ 155 PNC Mortgage Securities Corp., Series 1996-2, Class B2 6.60% due 02/25/11.................... $ 154 246 PNC Mortgage Securities Corp., Series 1996-2, Class B3 6.60% due 02/25/11.................... 241 965 Prudential Home Mortgage Securities Co., Series 1996-3, Class B1 6.75% due 03/25/11.................... 943 482 Prudential Home Mortgage Securities Co., Series 1996-3, Class B2 6.75% due 03/25/11.................... 471 4,200 Prudential Home Mortgage Securities Co., Series 1994-8, Class A3 6.75% due 03/25/24.................... 4,219 584 Residential Funding Mortgage Securities I, Inc., Series 1995-S18, Class M3 7.00% due 11/25/10.................... 575 226 Residential Funding Mortgage Securities I, Inc., Series 1996-S11, Class M3 7.00% due 04/25/11.................... 227 427 Residential Funding Mortgage Securities I, Inc., Series 1996-S19, Class M3 7.50% due 09/25/11.................... 427 463 Residential Funding Mortgage Securities I, Inc., Series 1996-S5, Class M3 6.75% due 02/25/11.................... 461 1,911 Residential Funding Mortgage Securities I, Inc., Series 1998-S22, Class A1 6.50% due 09/25/13.................... 1,909 2,736 Residential Funding Mortgage Securities I, Inc., Series 1999-S22, Class A2 7.00% due 10/25/14.................... 2,769 -------- Total collateralized mortgage obligations............................. $ 53,756 ======== CORPORATE NOTES -- 3.4% FINANCIAL SERVICES 10,000 Fannie Mae 6.625% due 11/15/10................... $ 10,484 -------- Total corporate notes................... $ 10,484 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 77.0% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 21.5% 3,550 7.00% due 10/01/26 - 07/01/29......... $ 3,563 56,978 7.50% due 01/01/24 - 10/01/30......... 57,799 1,775 8.00% due 02/01/13 - 11/01/24......... 1,827 1,008 8.50% due 07/01/01 - 05/01/25......... 1,037 805 9.00% due 07/01/02 - 10/01/06......... 814 1,189 9.50% due 11/01/08.................... 1,237 851 10.00% due 09/01/05 - 11/01/20........ 927 -------- 67,204 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 33.4% 14,459 6.50% due 09/01/25 - 12/01/30......... 14,258 26,832 7.00% due 02/01/30 - 11/01/30......... 26,860
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 63 ______________________________________ HARTFORD MORTGAGE SECURITIES HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - --------- --------
U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - --------- -------- $55,594 7.50% due 12/01/14 - 01/01/31......... $ 56,516 3,000 Fannie Mae, Series 1997-28, Class PD 7.50% due 07/18/23.................... 3,022 1,475 9.00% due 05/01/21 - 09/01/21......... 1,558 1,574 Fannie Mae, Series 1998-12 Class AM 9.00% due 03/18/28.................... 1,597 380 Fannie Mae Strip, Series D, Class 2 11.00% due 04/01/09................... 405 -------- 104,216 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 12.0% 22,935 7.50% due 04/15/22 - 04/20/30......... 23,306 11,394 8.50% due 06/15/07 - 04/15/30......... 11,741 459 9.00% due 01/15/25 - 12/15/25......... 478 1,564 9.50% due 10/15/09 - 11/15/09......... 1,664 54 10.00% due 05/15/13................... 58 50 12.00 % due 05/15/15.................. 56 24 12.50% due 03/15/15 - 08/15/15........ 27 -------- 37,330 -------- U.S. TREASURY BONDS -- 7.3% 21,000 6.50% due 02/15/10.................... 22,983 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 2.8% 8,274 4.25% due 01/15/10.................. 8,598 -------- Total U.S. treasuries & federal agencies................................ $240,331 ======== SHORT-TERM SECURITIES -- 1.6% REPURCHASE AGREEMENTS 5,112 Joint Repurchase Agreement (See Note 2(d)) 6.00% due 01/02/01................ $ 5,112 -------- Total short-term securities............. $ 5,112 ========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $1,163)................................ 0.4% $ 1,186 Total collateralized mortgage obligations (cost $52,873)............. 17.2 53,756 Total corporate notes (cost $10,515).... 3.4 10,484 Total U.S. treasuries & federal agencies (cost $234,571)........................ 77.0 240,331 Total short-term securities (cost $5,112)................................ 1.6 5,112 ----- -------- Total investment in securities (total cost $304,234)......................... 99.6 310,869 Cash, receivables and other assets...... 0.9 2,664 Payable for Fund shares redeemed........ (0.3) (966) Other liabilities....................... (0.2) (594) ----- -------- Net assets.............................. 100.0% $311,973 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 800,000 shares authorized; 274,085 shares outstanding.... $ 27,409 Capital surplus................................... 273,192 Accumulated undistributed net investment income... 20,105 Distribution in excess of net realized gain on investments...................................... (15,368) Unrealized appreciation of investments............ 6,635 ------------ Net assets........................................ $ 311,973 ============
Class IA Net asset value per share ($310,825 DIVIDED BY 273,074 shares outstanding) (600,000 shares authorized)...................................... $1.14 ===== Class IB Net asset value per share ($1,148 DIVIDED BY 1,011 shares outstanding) (200,000 shares authorized)...................................... $1.14 =====
S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $545 or 0.2% of net assets. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 64 ______________________________________ HARTFORD MONEY MARKET HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ----------- -------------- COMMERCIAL PAPER -- 63.6% $ 10,000 7-Eleven 6.51% due 02/26/01.................... $ 9,901 30,000 Anheuser-Busch Cos., Inc. 6.38% due 05/22/01.................... 29,256 S20,000 AT&T Corp. 6.55% due 06/14/01.................... 20,000 20,000 BankAmerica Corp. 6.65% due 01/11/01.................... 19,967 20,000 Bemis Co., Inc. 6.62% due 01/03/01.................... 19,996 10,000 Bradford & Bingley Building Society 6.50% due 02/05/01.................... 9,939 20,000 Bradford & Bingley Building Society 6.60% due 01/08/01.................... 19,978 20,000 CAFCO Holding Corp. 6.55% due 01/17/01.................... 19,945 10,000 Campbell Soup Co. 6.01% due 06/13/01.................... 9,730 20,000 Campbell Soup Co. 6.285% due 06/11/01................... 19,441 10,000 Christiania Capital Corp. 6.605% due 01/18/01................... 9,971 20,000 Christiania Capital Corp. 6.62% due 03/19/01.................... 19,720 10,000 CIESCO L.P. 6.52% due 01/29/01.................... 9,951 20,000 Coca-Cola Co. (The) 6.47% due 02/20/01.................... 19,824 20,000 DaimlerChrysler North America Holding Corp. 6.50% due 03/19/01.................... 19,726 25,500 Dow Chemical Co. (The) 6.45% due 01/02/01.................... 25,500 20,000 du Pont (E.I.) de Nemours & Co. 6.45% due 02/12/01.................... 19,853 10,000 Gannet Co., Inc. 6.50% due 02/20/01.................... 9,912 20,000 Gannet Co., Inc. 6.50% due 02/26/01.................... 19,801 10,000 General Electric Capital Corp. 6.44% due 03/19/01.................... 9,863 20,000 General Electric Capital Corp. 6.61% due 01/26/01.................... 19,912 20,000 General Motors Acceptance Corp. 6.48% due 02/05/01.................... 19,878 10,000 General Motors Acceptance Corp. 6.51% due 02/26/01.................... 9,901 30,000 Gillette Co. (The) 6.33% due 03/12/01.................... 29,636 10,000 Goldman Sachs Group, Inc. (The) 6.50% due 02/14/01.................... 9,922 10,000 Halifax PLC 6.46% due 03/01/01.................... 9,896 20,000 Halifax PLC 6.48% due 02/26/01.................... 19,802 10,000 Heinz (HJ) Co. 6.65% due 01/03/01.................... 9,998 PRINCIPAL MARKET AMOUNT VALUE - ----------- --------------
PRINCIPAL MARKET AMOUNT VALUE - ----------- -------------- $ 20,000 Honeywell International, Inc. 6.45% due 03/05/01.................... $ 19,778 20,000 International Lease Finance Corp. 6.41% due 04/17/01.................... 19,626 10,000 International Lease Finance Corp. 6.43% due 03/16/01.................... 9,870 20,000 Merck & Co., Inc. 6.54% due 01/22/01.................... 19,927 10,000 Merita Bank North America, Inc. 6.50% due 02/12/01.................... 9,926 20,000 Merrill Lynch & Co., Inc. 6.45% due 03/27/01.................... 19,699 10,000 Merrill Lynch & Co., Inc. 6.49% due 01/18/01.................... 9,971 10,000 Morgan (J.P.) & Co., Inc. 6.28% due 03/20/01.................... 9,866 20,000 Morgan (J.P.) & Co., Inc. 6.46% due 03/26/01.................... 19,702 12,000 Morgan Stanley Dean Witter & Co. 6.58% due 01/23/01.................... 11,954 10,000 Mototola, Inc. 6.43% due 03/28/01.................... 9,848 20,000 Mototola, Inc. 6.45% due 04/17/01.................... 19,624 10,000 Nationwide Building Society 6.45% due 04/04/01.................... 9,835 20,000 Nationwide Building Society 6.51% due 02/20/01.................... 19,823 10,000 Salomon Smith Barney, Inc. 6.49% due 03/05/01.................... 9,888 10,000 Salomon Smith Barney, Inc. 6.52% due 01/23/01.................... 9,962 14,000 Spintab AB 6.47% due 03/06/01.................... 13,841 20,000 Toronto-Dominion Holdings 6.52% due 01/22/01.................... 19,925 20,000 Verizon Global Funding Corp. 6.51% due 02/05/01.................... 19,877 20,000 Wal-Mart Stores, Inc. 6.51% due 01/30/01.................... 19,899 20,000 Walt Disney Co. (The) 6.02% due 05/30/01.................... 19,505 20,000 Washington Post Co. (The) 6.391% due 04/16/01................... 19,631 -------------- Total commercial paper (cost $813,196).. $ 813,196 ============== CORPORATE NOTES -- 15.7% 10,000 Citicorp 5.625% due 02/15/01................... 9,987 10,000 First Union National Bank 6.80% due 02/22/01.................... 10,000 10,000 First Union National Bank 7.00% due 04/30/01.................... 10,005 20,000 Fleet Financial Group, Inc. 6.478% due 03/13/01................... 19,997 10,000 Fleet Financial Group, Inc. 6.604% due 03/27/01................... 10,003
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 65 ______________________________________ HARTFORD MONEY MARKET HLS FUND, INC. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2000 (000'S OMITTED)
PRINCIPAL MARKET AMOUNT VALUE - ----------- --------------
CORPORATE NOTES -- (CONTINUED)
PRINCIPAL MARKET AMOUNT VALUE - ----------- -------------- $ 5,000 Ford Motor Credit Co. 5.125% due 10/15/01................... $ 4,951 10,000 General Mills, Inc. 6.68% due 02/09/01.................... 10,000 6,000 General Motors Acceptance Corp. 6.70% due 04/30/01.................... 5,998 10,000 Goldman Sachs Group, Inc. (The) 6.684% due 12/27/01................... 10,020 S18,000 Goldman Sachs Group, Inc. (The) 7.228% due 01/16/01................... 18,003 20,000 Key Bank N.A. 6.69% due 05/25/01.................... 19,997 10,000 Key Bank N.A. 7.11% due 10/26/01.................... 10,030 18,000 Morgan Stanley Dean Witter & Co. 6.728% due 12/17/01................... 18,034 13,000 NationsBank Corp. 5.75% due 03/15/01.................... 12,975 30,000 Toyota Motor Credit Corp. 6.712% due 01/09/01................... 30,000 -------------- Total corporate notes (cost $200,000)... $ 200,000 ============== REPURCHASE AGREEMENT -- 6.7% 85,675 Joint Repurchase Agreement (See Note 2(d)) 6.00% due 01/02/01................ $ 85,675 -------------- Total repurchase agreement (cost $85,675)................................ $ 85,675 ==============
MARKET VALUE ---------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $1,098,871) - see accompanying portfolio......... $1,098,871 Receivable for Fund shares sold................... 182,583 Receivable for dividends and interest............. 3,509 Cash and other assets............................. 10 ---------- Total assets...................................... 1,284,973 ---------- LIABILITIES Dividends payable................................. 6,406 Other liabilities................................. 22 ---------- Total liabilities................................. 6,428 ---------- Net assets........................................ $1,278,545 ========== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 3,000,000 shares authorized; 1,278,545 shares outstanding...................................... $ 127,855 Capital surplus................................... 1,150,690 ---------- Net assets........................................ $1,278,545 ========== Class IA Shares of beneficial interest outstanding, $0.10 par value 2,475,000 shares authorized (Net assets $1,242,275)...................................... 1,242,275 ==========
Net asset value................................... $1.00 =====
Class IB Shares of beneficial interest outstanding, $0.10 par value 525,000 shares authorized (Net assets $36,270)......................................... 36,270 ======
Net aset value.................................... $1.00 =====
S Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2000, the market value of these securities amounted to $38,003 or 3.0% of net assets. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEMENT. ______________________________________ 66 ______________________________________ [This page intentionally left blank] HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED)
HARTFORD HARTFORD GLOBAL GLOBAL HEALTH TECHNOLOGY HLS FUND* HLS FUND* ------------- --------------- INVESTMENT INCOME: Dividends.............. $ 412 $ 26 Interest............... 183 130 Securities lending..... 29 20 Less: Foreign tax withheld.............. (21) -- ------- -------- Total investment income (loss), net................. 603 176 ------- -------- EXPENSES: Investment advisory fees.................. 265 247 Administrative services fees.................. 82 76 Accounting services.... 6 6 Custodian fees, gross................. 10 17 Custodian fees expense offset................ (3) (7) Board of Directors fees.................. -- -- Distribution Fees -- Class IB.............. 6 7 Other expenses......... 3 3 ------- -------- Total expenses, (before waivers).... 369 349 Distribution Fees -- Class IB waived....... (2) (2) ------- -------- Total expenses, net................. 367 347 ------- -------- Net investment income (loss)................ 236 (171) ------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.......... 2,838 (12,703) Net realized gain (loss) on futures contracts............. -- -- Net realized gain (loss) on forward foreign currency contracts............. (6) -- Net realized gain (loss) on option contracts............. -- -- Net realized gain (loss) on foreign currency transactions.......... (1) -- Net unrealized appreciation (depreciation) of investments........... 16,854 (25,548) Net unrealized appreciation (depreciation) of futures contracts..... -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.... 1 -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies............ (1) -- Net unrealized appreciation (depreciation) of option contracts...... -- -- ------- -------- Net realized and unrealized gain (loss) on investments........ 19,685 (38,251) ------- -------- Net increase (decrease) in net assets resulting from operations............ $19,921 $(38,422) ======= ========
* From inception, May 1, 2000, to December 31, 2000. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 68 ______________________________________
HARTFORD HARTFORD HARTFORD CAPITAL HARTFORD INTERNATIONAL HARTFORD SMALL COMPANY APPRECIATION MIDCAP OPPORTUNITIES GLOBAL LEADERS HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND --------------- ---------------- ----------------- ----------------- -------------- INVESTMENT INCOME: Dividends.............. $ 2,198 $ 77,590 $ 5,034 $ 24,663 $ 4,496 Interest............... 4,982 45,152 3,142 7,526 2,121 Securities lending..... 216 828 385 598 234 Less: Foreign tax withheld.............. -- (1,543) (77) (3,038) (352) --------- ---------- -------- --------- -------- Total investment income (loss), net................. 7,396 122,027 8,484 29,749 6,499 --------- ---------- -------- --------- -------- EXPENSES: Investment advisory fees.................. 5,105 40,699 6,536 7,393 2,499 Administrative services fees.................. 1,999 18,740 2,672 3,066 910 Accounting services.... 150 1,406 200 230 68 Custodian fees, gross................. 34 435 36 1,105 136 Custodian fees expense offset................ (23) (128) (11) (38) (20) Board of Directors fees.................. 3 33 5 5 2 Distribution Fees -- Class IB.............. 65 167 39 28 22 Other expenses......... 90 886 114 141 47 --------- ---------- -------- --------- -------- Total expenses, (before waivers).... 7,423 62,238 9,591 11,930 3,664 Distribution Fees -- Class IB waived....... (18) (47) (11) (8) (6) --------- ---------- -------- --------- -------- Total expenses, net................. 7,405 62,191 9,580 11,922 3,658 --------- ---------- -------- --------- -------- Net investment income (loss)................ (9) 59,836 (1,096) 17,827 2,841 --------- ---------- -------- --------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.......... (22,751) 2,667,309 190,564 115,542 (35,410) Net realized gain (loss) on futures contracts............. -- -- -- 110 -- Net realized gain (loss) on forward foreign currency contracts............. 28 5,656 -- (1,715) (917) Net realized gain (loss) on option contracts............. -- -- -- -- -- Net realized gain (loss) on foreign currency transactions.......... (74) (5,528) (2) (415) 809 Net unrealized appreciation (depreciation) of investments........... (134,857) (1,659,102) 29,809 (386,241) (16,394) Net unrealized appreciation (depreciation) of futures contracts..... -- -- -- (104) -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.... -- 947 -- 376 13 Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies............ (1) (122) -- (634) (22) Net unrealized appreciation (depreciation) of option contracts...... -- -- -- -- -- --------- ---------- -------- --------- -------- Net realized and unrealized gain (loss) on investments........ (157,655) 1,009,160 220,371 (273,081) (51,921) --------- ---------- -------- --------- -------- Net increase (decrease) in net assets resulting from operations............ $(157,664) $1,068,996 $219,275 $(255,254) $(49,080) ========= ========== ======== ========= ======== HARTFORD HARTFORD STOCK GROWTH AND HLS FUND, INC. INCOME HLS FUND ----------------- --------------- INVESTMENT INCOME: Dividends.............. $ 86,495 $ 3,349 Interest............... 18,598 664 Securities lending..... 174 1 Less: Foreign tax withheld.............. (347) -- ----------- -------- Total investment income (loss), net................. 104,920 4,014 ----------- -------- EXPENSES: Investment advisory fees.................. 23,920 1,876 Administrative services fees.................. 18,785 668 Accounting services.... 1,409 50 Custodian fees, gross................. 43 11 Custodian fees expense offset................ (6) (3) Board of Directors fees.................. 33 1 Distribution Fees -- Class IB.............. 209 12 Other expenses......... 941 28 ----------- -------- Total expenses, (before waivers).... 45,334 2,643 Distribution Fees -- Class IB waived....... (59) (3) ----------- -------- Total expenses, net................. 45,275 2,640 ----------- -------- Net investment income (loss)................ 59,645 1,374 ----------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.......... 681,104 12,539 Net realized gain (loss) on futures contracts............. -- (814) Net realized gain (loss) on forward foreign currency contracts............. 1 -- Net realized gain (loss) on option contracts............. -- (9) Net realized gain (loss) on foreign currency transactions.......... 9 -- Net unrealized appreciation (depreciation) of investments........... (1,415,711) (35,219) Net unrealized appreciation (depreciation) of futures contracts..... -- (194) 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...... -- 146 ----------- -------- Net realized and unrealized gain (loss) on investments........ (734,597) (23,551) ----------- -------- Net increase (decrease) in net assets resulting from operations............ $ (674,952) $(22,177) =========== ========
* From inception, May 1, 2000, to December 31, 2000. ______________________________________ 69 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED)
HARTFORD DIVIDEND AND HARTFORD GROWTH INDEX HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- INVESTMENT INCOME: Dividends.............. $ 65,849 $ 29,205 Interest............... 6,806 1,138 Securities lending..... 115 62 Less: Foreign tax withheld.............. (463) (136) -------- --------- Total investment income (loss), net................. 72,307 30,269 -------- --------- EXPENSES: Investment advisory fees.................. 13,783 5,149 Administrative services fees.................. 6,073 5,149 Accounting services.... 456 386 Custodian fees, gross................. 27 33 Custodian fees expense offset................ (5) (11) Board of Directors fees.................. 11 9 Distribution Fees -- Class IB.............. 53 15 Other expenses......... 260 237 -------- --------- Total expenses, (before waivers).... 20,658 10,967 Distribution Fees -- Class IB waived....... (15) (4) -------- --------- Total expenses, net................. 20,643 10,963 -------- --------- Net investment income (loss)................ 51,664 19,306 -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.......... 208,361 38,303 Net realized gain (loss) on futures contracts............. -- (847) Net realized gain (loss) on forward foreign currency contracts............. 137 -- Net realized gain (loss) on option contracts............. 187 -- Net realized gain (loss) on foreign currency transactions.......... (212) (5) Net unrealized appreciation (depreciation) of investments........... 51,317 (306,485) Net unrealized appreciation (depreciation) of futures contracts..... -- (538) Net unrealized appreciation (depreciation) of forward foreign currency contracts.... -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies............ (10) -- Net unrealized appreciation (depreciation) of option contracts...... 105 -- -------- --------- Net realized and unrealized gain (loss) on investments........ 259,885 (269,572) -------- --------- Net increase (decrease) in net assets resulting from operations............ $311,549 $(250,266) ======== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 70 ______________________________________
HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- ---------- ----------------- ----------------- ----------------- INVESTMENT INCOME: Dividends.............. $ 3,645 $ 80,948 $ 101 $ 207 $-- $ 55 Interest............... 11,133 351,024 5,470 70,123 21,596 73,233 Securities lending..... 79 727 10 150 -- -- Less: Foreign tax withheld.............. (442) (323) (1) -- -- -- -------- ----------- ------- -------- ------- ------- Total investment income (loss), net................. 14,415 432,376 5,580 70,480 21,596 73,288 -------- ----------- ------- -------- ------- ------- EXPENSES: Investment advisory fees.................. 2,249 59,648 322 2,930 781 2,870 Administrative services fees.................. 809 27,657 112 1,995 625 2,296 Accounting services.... 61 2,074 8 150 47 172 Custodian fees, gross................. 280 103 8 47 19 12 Custodian fees expense offset................ (11) (54) (3) (18) (10) (4) Board of Directors fees.................. 1 48 -- 3 1 4 Distribution Fees -- Class IB.............. 4 464 2 54 1 42 Other expenses......... 36 1,268 2 90 27 108 -------- ----------- ------- -------- ------- ------- Total expenses, (before waivers).... 3,429 91,208 451 5,251 1,491 5,500 Distribution Fees -- Class IB waived....... (1) (130) (1) (15) -- (12) -------- ----------- ------- -------- ------- ------- Total expenses, net................. 3,428 91,078 450 5,236 1,491 5,488 -------- ----------- ------- -------- ------- ------- Net investment income (loss)................ 10,987 341,298 5,130 65,244 20,105 67,800 -------- ----------- ------- -------- ------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.......... 6,220 636,923 (2,310) (11,998) (1,678) (33) Net realized gain (loss) on futures contracts............. (655) -- -- 1,154 -- -- Net realized gain (loss) on forward foreign currency contracts............. 13,093 1 (14) 1,912 -- -- Net realized gain (loss) on option contracts............. -- -- -- -- -- -- Net realized gain (loss) on foreign currency transactions.......... 618 9 6 (1,725) -- -- Net unrealized appreciation (depreciation) of investments........... (50,326) (1,081,161) (2,081) 58,602 11,569 -- Net unrealized appreciation (depreciation) of futures contracts..... (1,165) -- -- 231 -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.... (7,040) -- -- -- -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies............ 529 -- 8 68 -- -- Net unrealized appreciation (depreciation) of option contracts...... 173 -- -- -- -- -- -------- ----------- ------- -------- ------- ------- Net realized and unrealized gain (loss) on investments........ (38,553) (444,228) (4,391) 48,244 9,891 (33) -------- ----------- ------- -------- ------- ------- Net increase (decrease) in net assets resulting from operations............ $(27,566) $ (102,930) $ 739 $113,488 $29,996 $67,767 ======== =========== ======= ======== ======= =======
______________________________________ 71 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED)
HARTFORD HARTFORD GLOBAL GLOBAL HEALTH TECHNOLOGY HLS FUND* HLS FUND* ------------- --------------- OPERATIONS: Net investment income (loss)................ $ 236 $ (171) Net realized gain (loss) on investments........... 2,831 (12,703) Net unrealized appreciation (depreciation) of investments........... 16,854 (25,548) -------- -------- Net increase (decrease) in net assets resulting from operations............ 19,921 (38,422) -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (256) -- Class IB............. (15) -- From net realized gain on investments Class IA............. (2,914) -- Class IB............. (220) -- -------- -------- Total distributions....... (3,405) -- -------- -------- CAPITAL SHARE TRANSACTIONS: Class IA............. 107,970 106,858 Class IB............. 8,394 10,180 -------- -------- Net increase (decrease) from capital share transactions....... 116,364 117,038 -------- -------- Net increase (decrease) in net assets............. 132,880 78,616 NET ASSETS: Beginning of period.... -- -- -------- -------- End of period.......... $132,880 $ 78,616 ======== ======== Accumulated undistributed (distribution in excess of) net investment income..... $ (2) $-- ======== ========
* From inception, May 1, 2000, to December 31, 2000. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 72 ______________________________________
HARTFORD HARTFORD HARTFORD CAPITAL HARTFORD INTERNATIONAL HARTFORD SMALL COMPANY APPRECIATION MIDCAP OPPORTUNITIES GLOBAL LEADERS HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND --------------- ---------------- ----------------- ----------------- -------------- OPERATIONS: Net investment income (loss)................ $ (9) $ 59,836 $ (1,096) $ 17,827 $ 2,841 Net realized gain (loss) on investments........... (22,797) 2,667,437 190,562 113,522 (35,518) Net unrealized appreciation (depreciation) of investments........... (134,858) (1,658,277) 29,809 (386,603) (16,403) -------- ---------- ---------- ---------- -------- Net increase (decrease) in net assets resulting from operations............ (157,664) 1,068,996 219,275 (255,254) (49,080) -------- ---------- ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. -- (62,140) -- (21,816) (2,812) Class IB............. -- (727) -- (198) (109) From net realized gain on investments Class IA............. (117,755) (1,266,215) (56,118) (171,516) (2,622) Class IB............. (3,080) (7,838) (520) (1,224) (38) -------- ---------- ---------- ---------- -------- Total distributions....... (120,835) (1,336,920) (56,638) (194,754) (5,581) -------- ---------- ---------- ---------- -------- CAPITAL SHARE TRANSACTIONS: Class IA............. 421,643 1,881,017 938,959 198,402 445,754 Class IB............. 39,207 118,867 50,484 18,858 27,549 -------- ---------- ---------- ---------- -------- Net increase (decrease) from capital share transactions....... 460,850 1,999,884 989,443 217,260 473,303 -------- ---------- ---------- ---------- -------- Net increase (decrease) in net assets............. 182,351 1,731,960 1,152,080 (232,748) 418,642 NET ASSETS: Beginning of period.... 767,502 7,985,996 672,714 1,578,039 179,744 -------- ---------- ---------- ---------- -------- End of period.......... $949,853 $9,717,956 $1,824,794 $1,345,291 $598,386 ======== ========== ========== ========== ======== Accumulated undistributed (distribution in excess of) net investment income..... $-- $ 265 $ 1 $ 781 $ (196) ======== ========== ========== ========== ======== HARTFORD HARTFORD GROWTH AND STOCK INCOME HLS FUND, INC. HLS FUND ----------------- ---------- OPERATIONS: Net investment income (loss)................ $ 59,645 $ 1,374 Net realized gain (loss) on investments........... 681,114 11,716 Net unrealized appreciation (depreciation) of investments........... (1,415,711) (35,267) ----------- -------- Net increase (decrease) in net assets resulting from operations............ (674,952) (22,177) ----------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (61,375) (1,380) Class IB............. (761) (45) From net realized gain on investments Class IA............. (1,024,729) (5,261) Class IB............. (8,655) (104) ----------- -------- Total distributions....... (1,095,520) (6,790) ----------- -------- CAPITAL SHARE TRANSACTIONS: Class IA............. 1,943,031 205,939 Class IB............. 105,713 15,959 ----------- -------- Net increase (decrease) from capital share transactions....... 2,048,744 221,898 ----------- -------- Net increase (decrease) in net assets............. 278,272 192,931 NET ASSETS: Beginning of period.... 9,447,823 201,872 ----------- -------- End of period.......... $ 9,726,095 $394,803 =========== ======== Accumulated undistributed (distribution in excess of) net investment income..... $ 1 $ -- =========== ========
* From inception, May 1, 2000, to December 31, 2000. ______________________________________ 73 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED)
HARTFORD DIVIDEND AND HARTFORD GROWTH INDEX HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- OPERATIONS: Net investment income (loss)................ $ 51,664 $ 19,306 Net realized gain (loss) on investments........... 208,473 37,451 Net unrealized appreciation (depreciation) of investments........... 51,412 (307,023) ---------- ---------- Net increase (decrease) in net assets resulting from operations............ 311,549 (250,266) ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (50,034) (19,512) Class IB............. (498) (119) From net realized gain on investments Class IA............. (282,315) (24,784) Class IB............. (1,888) (37) ---------- ---------- Total distributions....... (334,735) (44,452) ---------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA............. 5,708 98,949 Class IB............. 18,931 17,594 ---------- ---------- Net increase (decrease) from capital share transactions....... 24,639 116,543 ---------- ---------- Net increase (decrease) in net assets............. 1,453 (178,175) NET ASSETS: Beginning of period.... 3,223,819 2,581,447 ---------- ---------- End of period.......... $3,225,272 $2,403,272 ========== ========== Accumulated undistributed (distribution in excess of) net investment income..... $ 1,732 $ (4) ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 74 ______________________________________
HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD MORTGAGE ADVISERS ADVISERS HIGH YIELD BOND SECURITIES HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- ------------ ----------------- ----------------- OPERATIONS: Net investment income (loss)................ $ 10,987 $ 341,298 $ 5,130 $ 65,244 $ 20,105 Net realized gain (loss) on investments........... 19,276 636,933 (2,318) (10,657) (1,678) Net unrealized appreciation (depreciation) of investments........... (57,829) (1,081,161) (2,073) 58,901 11,569 -------- ----------- ---------- ---------- -------- Net increase (decrease) in net assets resulting from operations............ (27,566) (102,930) 739 113,488 29,996 -------- ----------- ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (22,528) (108,406) (4,909) (4,427) (2,172) Class IB............. (231) (1,821) (181) (94) (2) From net realized gain on investments Class IA............. (26,883) (1,188,034) -- -- -- Class IB............. (97) (15,623) -- -- -- -------- ----------- ---------- ---------- -------- Total distributions....... (49,739) (1,313,884) (5,090) (4,521) (2,174) -------- ----------- ---------- ---------- -------- CAPITAL SHARE TRANSACTIONS: Class IA............. 65,319 745,076 17,561 (52,284) (56,720) Class IB............. 5,276 134,279 2,558 13,233 1,094 -------- ----------- ---------- ---------- -------- Net increase (decrease) from capital share transactions....... 70,595 879,355 20,119 (39,051) (55,626) -------- ----------- ---------- ---------- -------- Net increase (decrease) in net assets............. (6,710) (537,459) 15,768 69,916 (27,804) NET ASSETS: Beginning of period.... 396,158 14,220,213 52,833 994,678 339,777 -------- ----------- ---------- ---------- -------- End of period.......... $389,448 $13,682,754 $ 68,601 $1,064,594 $311,973 ======== =========== ========== ========== ======== Accumulated undistributed (distribution in excess of) net investment income..... $ (2,890) $ 261,292 $ 79 $ 62,016 $ 20,105 ======== =========== ========== ========== ======== HARTFORD MONEY MARKET HLS FUND, INC. ----------------- OPERATIONS: Net investment income (loss)................ $ 67,800 Net realized gain (loss) on investments........... (33) Net unrealized appreciation (depreciation) of investments........... -- ---------- Net increase (decrease) in net assets resulting from operations............ 67,767 ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (66,782) Class IB............. (985) From net realized gain on investments Class IA............. -- Class IB............. -- ---------- Total distributions....... (67,767) ---------- CAPITAL SHARE TRANSACTIONS: Class IA............. (15,161) Class IB............. 27,466 ---------- Net increase (decrease) from capital share transactions....... 12,305 ---------- Net increase (decrease) in net assets............. 12,305 NET ASSETS: Beginning of period.... 1,266,240 ---------- End of period.......... $1,278,545 ========== Accumulated undistributed (distribution in excess of) net investment income..... $ -- ==========
______________________________________ 75 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 1999 (000'S OMITTED)
HARTFORD HARTFORD SMALL CAPITAL COMPANY APPRECIATION HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- OPERATIONS: Net investment income (loss)................ $ (1,976) $ 29,591 Net realized gain (loss)................ 147,233 1,275,672 Net unrealized appreciation (depreciation) of investments........... 121,502 843,016 -------- ---------- Net increase (decrease) in net assets resulting from operations............ 266,759 2,148,279 -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. -- (24,014) Class IB............. -- (48) From net realized gain on investments Class IA............. (986) (373,170) Class IB............. (14) (2,166) -------- ---------- Total distributions....... (1,000) (399,398) -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA............. 143,679 409,059 Class IB............. 6,634 14,635 -------- ---------- Net increase (decrease) from capital share transactions....... 150,313 423,694 -------- ---------- Net increase (decrease) in net assets............. 416,072 2,172,575 NET ASSETS: Beginning of year...... 351,430 5,813,421 -------- ---------- End of year............ $767,502 $7,985,996 ======== ========== Accumulated undistributed (distribution in excess of) net investment income..... $-- $ 4,106 ======== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 76 ______________________________________
HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD GROWTH AND DIVIDEND AND MIDCAP OPPORTUNITIES GLOBAL LEADERS STOCK INCOME GROWTH HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND HLS FUND, INC. ----------------- ----------------- -------------- ----------------- ---------- ----------------- OPERATIONS: Net investment income (loss)................ $ (454) $ 15,472 $ 294 $ 65,458 $ 556 $ 50,807 Net realized gain (loss)................ 74,257 200,446 2,921 1,025,417 4,442 275,966 Net unrealized appreciation (depreciation) of investments........... 87,292 249,333 33,754 408,912 17,369 (162,878) -------- ---------- -------- ---------- -------- ---------- Net increase (decrease) in net assets resulting from operations............ 161,095 465,251 36,969 1,499,787 22,367 163,895 -------- ---------- -------- ---------- -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. -- (15,254) (230) (64,230) (540) (51,585) Class IB............. -- (27) -- (286) -- (241) From net realized gain on investments Class IA............. (27,866) -- (836) (619,032) (1,244) (120,723) Class IB............. -- -- -- (6,821) -- (820) -------- ---------- -------- ---------- -------- ---------- Total distributions....... (27,866) (15,281) (1,066) (690,369) (1,784) (173,369) -------- ---------- -------- ---------- -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA............. 395,957 (71,217) 138,031 1,405,977 155,966 185,464 Class IB............. 34 1,929 11 39,215 -- 7,935 -------- ---------- -------- ---------- -------- ---------- Net increase (decrease) from capital share transactions....... 395,991 (69,288) 138,042 1,445,192 155,966 193,399 -------- ---------- -------- ---------- -------- ---------- Net increase (decrease) in net assets............. 529,220 380,682 173,945 2,254,610 176,549 183,925 NET ASSETS: Beginning of year...... 143,494 1,197,357 5,799 7,193,213 25,323 3,039,894 -------- ---------- -------- ---------- -------- ---------- End of year............ $672,714 $1,578,039 $179,744 $9,447,823 $201,872 $3,223,819 ======== ========== ======== ========== ======== ========== Accumulated undistributed (distribution in excess of) net investment income..... $-- $ 6,910 $ (8) $ 2,443 $ 16 $ 1,000 ======== ========== ======== ========== ======== ==========
______________________________________ 77 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 1999 (000'S OMITTED)
HARTFORD HARTFORD INTERNATIONAL INDEX ADVISERS HLS FUND, INC. HLS FUND, INC. ----------------- ----------------- OPERATIONS: Net investment income (loss)................ $ 20,580 $ 8,380 Net realized gain (loss)................ 26,366 28,197 Net unrealized appreciation (depreciation) of investments........... 369,300 34,812 ---------- -------- Net increase (decrease) in net assets resulting from operations............ 416,246 71,389 ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (23,998) (7,000) Class IB............. -- -- From net realized gain on investments Class IA............. (32,134) -- Class IB............. -- -- ---------- -------- Total distributions....... (56,132) (7,000) ---------- -------- CAPITAL SHARE TRANSACTIONS: Class IA............. 375,206 45,907 Class IB............. 10 10 ---------- -------- Net increase (decrease) from capital share transactions....... 375,216 45,917 ---------- -------- Net increase (decrease) in net assets............. 735,330 110,306 NET ASSETS: Beginning of year...... 1,846,117 285,852 ---------- -------- End of year............ $2,581,447 $396,158 ========== ======== Accumulated undistributed (distribution in excess of) net investment income..... $ 279 $ 3,453 ========== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ______________________________________ 78 ______________________________________
HARTFORD HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ----------------- ---------- ----------------- ----------------- ----------------- OPERATIONS: Net investment income (loss)................ $ 320,122 $ 3,011 $ 58,520 $ 21,174 $ 51,798 Net realized gain (loss)................ 1,204,133 (207) (18,937) (6,344) 22 Net unrealized appreciation (depreciation) of investments........... (201,834) (1,513) (58,549) (9,624) -- ----------- ------- -------- -------- ---------- Net increase (decrease) in net assets resulting from operations............ 1,322,421 1,291 (18,966) 5,206 51,820 ----------- ------- -------- -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA............. (294,115) (2,961) (53,765) (18,999) (51,532) Class IB............. (2,712) (6) (836) (1) (266) From net realized gain on investments Class IA............. (985,224) (6) (6,265) -- (22) Class IB............. (10,510) -- (48) -- -- ----------- ------- -------- -------- ---------- Total distributions....... (1,292,561) (2,973) (60,914) (19,000) (51,820) ----------- ------- -------- -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA............. 2,243,273 39,929 155,219 (3,273) 384,950 Class IB............. 106,955 2 11,574 10 6,625 ----------- ------- -------- -------- ---------- Net increase (decrease) from capital share transactions....... 2,350,228 39,931 166,793 (3,263) 391,575 ----------- ------- -------- -------- ---------- Net increase (decrease) in net assets............. 2,380,088 38,249 86,913 (17,057) 391,575 NET ASSETS: Beginning of year...... 11,840,125 14,584 907,765 356,834 874,665 ----------- ------- -------- -------- ---------- End of year............ $14,220,213 $52,833 $994,678 $339,777 $1,266,240 =========== ======= ======== ======== ========== Accumulated undistributed (distribution in excess of) net investment income..... $ 30,239 $ 48 $ 4,520 $ 2,174 $ -- =========== ======= ======== ======== ==========
______________________________________ 79 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 ($000 OMITTED) 1. ORGANIZATION: Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc., Hartford Advisers Fund HLS Fund, Inc., Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Money Market HLS Fund, Inc. and Hartford Series Fund, Inc. (comprised of eight portfolios, of which the following are included in these financial statements: Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund and Hartford High Yield HLS Fund) (each a "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 Health HLS Fund and Hartford Global Technology HLS Fund which are non-diversified. The 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, which have different investment goals and policies, are described below. Hartford Global Health HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of health care companies worldwide. Hartford Global Technology HLS Fund Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of technology companies worldwide. Hartford Small Company HLS Fund, Inc. Seeks maximum capital appreciation by investing at least 65% of its total assets in common stocks of companies with a market capitalization within the range represented by the Russell 2000 Index. Hartford Capital Appreciation HLS Fund, Inc. Seeks growth of capital through investment in equity securities of companies with high growth potential, including small, medium and large companies. Hartford MidCap HLS Fund, Inc. Seeks long-term capital growth through capital appreciation by investing primarily in equity securities with market capitalizations within the range represented by the S&P's MidCap 400 Index. Hartford International Opportunities HLS Seeks growth of capital through investing Fund, Inc. primarily in foreign equity securities issues. Hartford Global Leaders HLS Fund Seeks growth of capital by investing primarily in equity securities issued by U.S. and non-U.S. companies. Hartford Stock HLS Fund, Inc. Seeks long-term capital growth through investment in a diversified portfolio of equity securities. Hartford Growth and Income HLS Fund Seeks growth of capital and current income by investing primarily in equity securities with earnings growth potential and steady or rising dividends. Hartford Dividend and Growth HLS Fund, Inc. Seeks a high level of current income consistent with growth of capital and moderate investment risk. Primary investments are equity securities and securities convertible into equity securities that typically have above average yield. Hartford Index HLS Fund, Inc. Seeks to approximate the price and yield performance represented by the Standard & Poor's 500 Composite Stock Price Index through investments in common stocks. Hartford International Advisers HLS Fund, Inc. Seeks a long-term total rate of return consistent with moderate risk. Investments include a mix of debt, equity and money market instruments primarily with foreign issuers.
______________________________________ 80 ______________________________________ Hartford Advisers HLS Fund, Inc. Seeks maximum long-term total rate of return (capital growth and current income) through investment in a varying mix of stocks, bonds and money market instruments. Hartford High Yield HLS Fund Seeks high current income by investing in high yield, below investment grade securities. Growth of capital is a secondary objective. Hartford Bond HLS Fund, Inc. Seeks maximum current income consistent with preservation of capital through investing primarily in debt securities. Hartford Mortgage Securities HLS Fund, Inc. Seeks a high level of current income by investing primarily in mortgage-related securities, including securities issued by The Government National Mortgage Association. Hartford Money Market HLS Fund, Inc. Seeks a high level of current income consistent with liquidity and preservation of capital through investment in money-market securities.
Each Fund is divided into Class IA and IB shares. Each class is offered at net asset value without a sales charge and is subject to the same expenses except that the Class IB shares are subject to distribution fees charged pursuant to a Rule 12b-1 plan. Distribution and Service Plans have been adopted in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Funds, which are in accordance with generally accepted accounting principles in the investment company industry: a) SECURITY TRANSACTIONS--Security transactions are recorded on the trade date (the day the order to buy or sell is executed). Security gains and losses are determined on the basis of identified cost. b) SECURITY VALUATION--Equity securities are valued at the last sales price reported on principal securities exchanges on which such securities are traded (domestic or foreign) or on the principal over-the-counter market on which such securities are traded as of the close of business on the day the securities are being valued. If no sale occurred on a particular day and in the case of certain equity securities traded over-the-counter, then such securities are valued at the mean between the bid and asked prices. Securities quoted in foreign currencies are translated into U.S. dollars at the prevailing exchange rates at the end of each business day. Options are valued at the last sales price; if no sale took place on such day, then options are valued at the mean between the bid and asked prices. Securities for which market quotations are not readily available and all other assets are valued in good faith at their fair values under the direction of the Funds' Board of Directors. Debt securities (other than short-term obligations) are valued on the basis of valuations furnished by an unaffiliated pricing service which determines valuations for normal institutional size trading units of debt securities. Mortgage securities are valued at the bid price. Short-term securities held in Hartford Money Market HLS Fund, Inc., are valued at amortized cost or original cost plus accrued interest receivable, both of which approximate market value. In the remaining Funds, short-term investments purchased with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Short-term investments purchased with a maturity of more than 60 days are valued based on market quotations until the remaining days to maturity become less than 61 days. From such time until maturity, the investments are valued at amortized cost c) FOREIGN CURRENCY TRANSACTIONS--The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at the prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements. ______________________________________ 81 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED) 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. Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Stock HLS Fund, Inc., Hartford Growth and Income HLS Fund, Hartford Dividend and Growth HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc. and Hartford Advisers HLS Fund, Inc., together with other investment management companies having investment advisory agreements with Wellington Management Company, LLP (Wellington), have an interest in a $2,231,903 joint repurchase agreement dated 12/29/00 with State Street Bank, 6.002% due 01/02/01. This joint repurchase agreement is collateralized by $2,051,338 U.S. Treasury Bonds 6.875% - 12.00% due 11/15/12--08/15/25 and $224,345 U.S. Treasury Strips 0.00% due 02/15/07--08/15/20. The maturity amounts are as follows:
FUND MATURITY AMOUNT -------------------------------------------------- --------------- Hartford Global Health HLS Fund................... $ 5,029 Hartford Global Technology HLS Fund............... 3,081 Hartford Small Company HLS Fund, Inc.............. 125,042 Hartford Capital Appreciation HLS Fund, Inc....... 1,052,171 Hartford MidCap HLS Fund, Inc..................... 68,267 Hartford International Opportunities HLS Fund, Inc........................................ 158,630 Hartford Global Leaders HLS Fund.................. 45,982 Hartford Stock HLS Fund, Inc...................... 218,515 Hartford Growth and Income HLS Fund............... 6,203 Hartford Dividend and Growth HLS Fund, Inc........ 72,207 Hartford International Advisers HLS Fund, Inc..... 48,875 Hartford Advisers HLS Fund, Inc................... 276,791
Hartford Index HLS Fund, Inc., Hartford High Yield HLS Fund, Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc. and Hartford Money Market HLS Fund, Inc. together with other investment management companies having investment advisory agreements with The Hartford Investment Management Company (HIMCO) have an interest in a $252,107 joint repurchase agreement dated 12/29/00 with State Street Bank, 6.00% due 01/02/01. This joint repurchase agreement is collateralized by $252,275 U.S. Treasury Bonds 5.625% - 10.00% due 05/15/08--08/15/27. The maturity amounts are as follows:
FUND MATURITY AMOUNT -------------------------------------------------- --------------- Hartford Index HLS Fund, Inc...................... $ 13,072 Hartford High Yield HLS Fund...................... 7,048 Hartford Bond HLS Fund, Inc....................... 114,093 Hartford Mortgage Securities HLS Fund, Inc........ 5,115 Hartford Money Market HLS Fund, Inc............... 85,732
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. ______________________________________ 82 ______________________________________ f) FUTURES, OPTIONS ON FUTURES AND OPTIONS TRANSACTIONS--The Funds enter into futures contracts to retain their cash balance and yet be exposed to the market, thereby providing the liquidity necessary to accommodate redemptions while at the same time providing shareholders with the investment return of a fully invested portfolio. A futures contract is an agreement between two parties to buy and sell a security at a set price on a future date. When the Funds enter into such contracts, they are required to deposit with their custodian an amount of "initial margin" of cash or U.S. Treasury bills. Subsequent payments, called maintenance margin, to and from the broker-dealer, are made on a daily basis as the price of the underlying debt security fluctuates, making the long and short positions in the futures contract more or less valuable (i.e., mark-to-market), which results in an unrealized gain or loss to the Funds. The market value of a traded futures contract is the last sale price. In the absence of a last sale price, the last offering price is used. In the absence of either of these prices, fair value is determined according to procedures established by the Funds' Board of Directors. The variation margin on futures contracts is included in cash, receivables and other assets as applicable, in the Fund's Statement of Net Assets. At any time prior to the expiration of the futures contract, the Funds may close the position by taking an opposite position which would operate to terminate the position in the futures contract. A final determination of maintenance margin is then made, additional cash is required to be paid by or released to the Funds and the Funds realize a gain or loss. The use of futures contracts involves elements of market and counter party risk, which may exceed the amounts recognized in the Statements of Net Assets. Change in the value of the futures contracts may decrease the effectiveness of the Fund's strategies and potentially result in loss. The premium paid by a Fund for the purchase of a call or put option is included in the Fund's Statement of Net Assets as cash, receivables and other assets and subsequently "marked-to-market" to reflect the current market value of the option purchased as of the end of the reporting period. If an option, which the Fund has purchased, expires on its stipulated expiration date, the Fund realizes a loss in the amount of the cost of the option. If the Fund enters into a closing transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the option. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security which the Fund purchases upon exercise will be increased by the premium originally paid to buy the call. ______________________________________ 83 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED) 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 increases the Fund's return if the option expires unexercised or is closed out at a net profit. The Funds' option activity was as follows for the year ended December 31, 2000: OPTION CONTRACTS ACTIVITY DURING THE YEAR
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD INTERNATIONAL INCOME HLS GROWTH HLS ADVISERS HLS FUND, INC. FUND, INC. FUND, INC. -------------------- --------------------- ----------------------- NUMBER OF PREMIUM NUMBER OF PREMIUM NUMBER OF PREMIUM CONTRACTS AMOUNTS CONTRACTS AMOUNTS CONTRACTS AMOUNTS --------- -------- --------- --------- ---------- ---------- CALLS WRITTEN Beginning of the year....................... -- $ -- -- $ -- -- $ -- Written during the year..................... 1 242 3 450 1,740 27 Expired during the year..................... -- -- (1) (158) -- -- Closed during the year...................... p-- (37) (1) (116) -- -- Exercised during the year................... -- -- -- -- -- -- ---- ---- ---- ----- ------ ---- Balance at the end of the year.............. 1 $205 1 $ 176 1,740 $ 27 ---- ---- ---- ----- ------ ----
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. ----------------------- NUMBER OF PREMIUM CONTRACTS AMOUNTS ---------- ---------- CALLS PURCHASED Beginning of the year.................................................................. -- $ -- Purchased during the year.............................................................. 3,480 33 Expired during the year................................................................ -- -- Closed during the year................................................................. -- -- Exercised during the year.............................................................. -- -- ------ ---- Balance at the end of the year......................................................... 3,480 $ 33 ------ ----
HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. ----------------------- NUMBER OF PREMIUM CONTRACTS AMOUNTS ---------- ---------- PUTS WRITTEN Beginning of the year.................................................................. -- $ -- Written during the year................................................................ 1,740 20 Expired during the year................................................................ -- -- Closed during the year................................................................. -- -- Exercised during the year.............................................................. -- -- ------ ---- Balance at the end of the year......................................................... 1,740 $ 20 ------ ----
p Due to the presentation of the financial statements in thousands, the number of contracts round to zero. g) FORWARD FOREIGN CURRENCY CONTRACTS--As of December 31, 2000, Hartford Global Health HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund ______________________________________ 84 ______________________________________ and Hartford International Advisers HLS Fund, Inc., had entered into forward foreign currency exchange contracts that obligate the funds to repurchase/replace or sell currencies at specified future dates. The Funds enter into forward foreign currency contracts to hedge against adverse fluctuations in exchange rates between currencies. The forward foreign currency contracts' costs are included in cash, receivables and other assets 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 their 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--Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Stock HLS Fund, Inc., Hartford Growth and Income HLS Fund, Hartford Dividend and Growth HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford High Yield HLS Fund and Hartford Bond HLS Fund, Inc., may lend their securities to certain qualified brokers who pay these Funds negotiated lender fees. The loans are collateralized at all times with cash or securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, these Funds may bear the risk of delay in recovery of the loaned securities or even loss of rights in the collateral should the borrower of the securities fail financially. As of December 31, 2000, the market value of the securities loaned and the market value of the collateral were as follows:
MARKET VALUE MARKET VALUE OF OF FUND SECURITIES LOANED COLLATERAL ---------------------------------------- ----------------- ------------ Hartford Global Health HLS Fund......... $ 26,548 $ 27,379 Hartford Global Technology HLS Fund..... 7,385 7,740 Hartford Small Company HLS Fund, Inc.............................. 211,494 219,331 Hartford Capital Appreciation HLS Fund, Inc.............................. 389,063 402,094 Hartford MidCap HLS Fund, Inc........... 258,023 268,467 Hartford International Opportunities HLS Fund, Inc.............................. 153,381 161,272 Hartford Global Leaders HLS Fund........ 40,008 41,777 Hartford Stock HLS Fund, Inc............ 79,361 82,483 Hartford Dividend and Growth HLS Fund, Inc.............................. 126,105 130,458 Hartford Index HLS Fund, Inc............ 57,882 59,876 Hartford International Advisers HLS Fund, Inc.............................. 23,163 24,236 Hartford Advisers HLS Fund, Inc......... 1,651,896 1,686,995 Hartford High Yield HLS Fund............ 3,628 3,721 Hartford Bond HLS Fund, Inc............. 253,952 259,107
j) FEDERAL INCOME TAXES--For federal income tax purposes, the Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code by distributing substantially all of their taxable net investment income and net realized capital gains to their shareholders or otherwise complying with the requirements of regulated investment companies. 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 ______________________________________ 85 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED) certain dividends for foreign securities where the ex-dividend date may have passed, are recorded as soon as the fund is informed of the ex-dividend data in the exercise of due diligence. Interest income and expenses are accrued on a daily basis. The net asset value of each Fund's shares is determined as of the close of each business day of the New York Stock Exchange (the Exchange). Orders for the purchase of a Fund's shares received prior to the close of the Exchange on any day on which the Fund is open for business are priced at the per-share net asset value determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Fund is not open for business, are priced at the next determined per-share net asset value. Dividends are declared by the Funds' Board of Directors based upon the investment performance of the respective Funds. The policy of all funds except the Hartford Money Market HLS Fund, Inc. is to pay dividends from net investment income and distribute realized capital gains, if any, at least once a year. Hartford Money Market HLS Fund, Inc. seeks to maintain a stable net asset value per share of $1.00 by declaring a daily dividend from net investment income, including net short-term capital gains and losses, and by valuing its investments using the amortized cost method. Dividends are distributed monthly. Distributions from net investment income, realized capital gains and capital are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gains and losses, partnerships, losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions result in reclassifications to capital accounts (see Note 7). l) USE OF ESTIMATES--The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the period. Operating results in the future could vary from the amounts derived from management's estimates. m) RESTRICTED SECURITIES--Each Fund is permitted to invest up to 15% of its net assets in illiquid securities, except for 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, commonly known as Rule 144A securities, that can be resold to institutions and which may be determined to be liquid pursuant to policies and guidelines established by the Funds' Board of Directors. At December 31, 2000, the Funds did not hold any restricted securities (excluding 144A issues). 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. ______________________________________ 86 ______________________________________ The schedule below reflects the rates of compensation paid to HL Advisors for investment advisory 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 BOND HLS FUND, INC. AND HARTFORD STOCK HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE - ------------------------ ----------- On first $250 million 0.325% On next $250 million 0.300 On next $500 million 0.275 Over $1 billion 0.250
HARTFORD SMALL COMPANY HLS FUND, INC., HARTFORD CAPITAL APPRECIATION HLS FUND, INC., HARTFORD MIDCAP HLS FUND, INC., HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC., HARTFORD GLOBAL LEADERS HLS FUND, HARTFORD GROWTH AND INCOME HLS FUND, HARTFORD DIVIDEND AND GROWTH HLS FUND, INC., HARTFORD INTERNATIONAL 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 HEALTH HLS FUND AND HARTFORD GLOBAL TECHNOLOGY HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE - ------------------------ ----------- On first $250 million 0.650% On next $250 million 0.600 Over $500 million 0.550
Pursuant to sub-advisory agreements between HL Advisors and Wellington, Wellington provides the day-to-day investment management services to the Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Stock HLS Fund, Inc., Hartford Growth and Income HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford International 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 ______________________________________ 87 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED) Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., and Hartford Money Market HLS Fund, Inc. HIMCO is a wholly-owned subsidiary of The Hartford. Wellington and HIMCO determine the purchase and sale of portfolio securities and place such orders for execution in the name of the respective Fund. In conjunction with their investment activity, Wellington and HIMCO regularly furnish reports to the Funds' Board of Directors concerning economic forecasts, investment strategy, portfolio activity and performance of the Funds. b) ADMINISTRATIVE SERVICES AGREEMENT--Under the Administrative Services Agreement between Hartford Life Insurance Company (HL) and each of the Funds, HL provides administrative services to the Funds and receives monthly compensation at the annual rate of 0.20% of each Fund's average daily net assets. The Funds assume and pay certain other expenses (including, but not limited to, accounting, custodian, state taxes and directors' fees). Directors' fees represent remuneration paid or accrued to directors not affiliated with HL or any other related company. c) OPERATING EXPENSES--Allocable expenses of the Funds are charged to each Fund based on the ratio of the net assets of each fund to the combined net assets of the Funds. Non-allocable expenses are charged to each fund based on specific identification. d) EXPENSE OFFSET--The Funds have entered into certain expense offset arrangements with the Custodian Bank. The amount of the Funds' expense reductions is shown on the accompanying Statements of Operations as Custodian fees expense offset. e) DISTRIBUTION PLAN FOR CLASS IB SHARES--Each Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act for the Class IB shares. Pursuant to the Distribution Plan, each Fund compensates the Distributor from assets attributable to the Class IB shares for services rendered and expenses borne in connection with activities primarily intended to result in the sale of the Class IB shares. Although the Distribution Plan provides that each Fund may pay annually up to 0.25% of the average daily net assets of a Fund attributable to its Class IB shares for activities primarily intended to result in the sale of Class IB shares, the Distributor has voluntarily agreed to waive 0.07% of the fee. This waiver may be withdrawn at any time after notice to shareholders. Under the terms of the Distribution Plan and the principal underwriting agreement, each Fund is authorized to make payments monthly to the Distributor which may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class IB shares for such entities' fees or expenses incurred or paid in that regard. ______________________________________ 88 ______________________________________ 4. TAX COST AND UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS: As of December 31, 2000, the aggregate gross unrealized appreciation and depreciation of all investments, based on cost for federal income tax purposes, was as follows:
AGGREGATE GROSS AGGREGATE GROSS NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION/ FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION) ---- ----------- --------------- --------------- -------------- Hartford Global Health HLS Fund........ 116,123 19,173 (2,459) 16,714 Hartford Global Technology HLS Fund.... 107,703 2,035 (29,953) (27,918) Hartford Small Company HLS Fund, Inc.............................. 987,676 157,823 (128,754) 29,069 Hartford Capital Appreciation HLS Fund, Inc.............................. 9,219,522 1,806,821 (1,318,808) 488,013 Hartford MidCap HLS Fund, Inc.......... 1,782,445 271,341 (184,567) 86,774 Hartford International Opportunities HLS Fund, Inc.......................... 1,480,803 106,520 (110,755) (4,235) Hartford Global Leaders HLS Fund....... 606,319 42,386 (32,729) 9,657 Hartford Stock HLS Fund, Inc........... 8,067,811 2,523,314 (1,041,362) 1,481,952 Hartford Growth and Income HLS Fund.... 409,400 49,608 (65,225) (15,617) Hartford Dividend and Growth HLS Fund, Inc.............................. 2,764,123 695,056 (225,098) 469,958 Hartford Index HLS Fund, Inc........... 1,734,513 916,274 (240,529) 675,745 Hartford International Advisers HLS Fund, Inc.............................. 415,466 20,919 (20,917) 2 Hartford Advisers HLS Fund, Inc........ 11,567,622 2,696,607 (1,015,314) 1,681,293 Hartford High Yield HLS Fund........... 71,983 1,265 (4,748) (3,483) Hartford Bond HLS Fund, Inc............ 1,090,445 32,314 (9,382) 22,932 Hartford Mortgage Securities HLS Fund, Inc.............................. 304,235 6,965 (331) 6,634
5. AFFILIATE HOLDINGS: a) As of December 31, 2000, HL Advisors held direct interests in shares as follows:
PERCENT OF PERCENT OF FUND CLASS IA TOTAL SHARES CLASS IB TOTAL SHARES ---- --------- ------------ --------- ------------ Hartford Global Health HLS Fund........................ p -- 0.00% p -- 0.00% Hartford Global Technology HLS Fund.................... 9,000 8.04 1,000 8.67 Hartford Growth and Income HLS Fund.................... - - 10 0.09 Hartford High Yield HLS Fund........................... - - 102 3.83 Hartford Mortgage Securities HLS Fund, Inc............. - - 9 0.89
p Due to the presentation of the financial statements in thousands, the number of shares round to zero. ______________________________________ 89 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED) b) As of December 31, 2000, certain HL group pension contracts held direct interests in shares as follows:
PERCENT OF FUND SHARES TOTAL SHARES ---------------------------------------- ------- ------------ Hartford Global Health HLS Fund......... 126 0.14% Hartford Global Technology HLS Fund..... 67 0.05 Hartford Small Company HLS Fund, Inc.............................. 15,524 2.76 Hartford Capital Appreciation HLS Fund, Inc.............................. 64,375 3.93 Hartford MidCap Fund HLS Fund, Inc...... 6,209 0.84 Hartford International Opportunities HLS Fund, Inc.............................. 17,643 1.79 Hartford Global Leaders HLS Fund........ 20,119 5.91 Hartford Stock HLS Fund, Inc............ 70,001 4.23 Hartford Growth and Income HLS Fund..... 1,365 0.46 Hartford Dividend and Growth HLS Fund, Inc.............................. 13,760 0.91 Hartford Index HLS Fund, Inc............ 45,905 7.11 Hartford International Advisers HLS Fund, Inc.............................. 3,553 1.05 Hartford Advisers HLS Fund, Inc......... 101,349 1.97 Hartford High Yield HLS Fund............ 179 0.25 Hartford Bond HLS Fund, Inc............. 44,318 4.61 Hartford Mortgage Securities HLS Fund, Inc.............................. 13,851 5.05 Hartford Money Market HLS Fund, Inc..... 115,157 9.01
6. INVESTMENT TRANSACTIONS: For the year ended December 31, 2000, aggregate purchases and sales of investment securities (excludes short-term investments) were as follows:
FUND COST OF PURCHASES SALES PROCEEDS ---------------------------------------- ----------------- -------------- Hartford Global Health HLS Fund......... $ 138,638 $ 30,518 Hartford Global Technology HLS Fund..... 203,238 88,282 Hartford Small Company HLS Fund, Inc.............................. 2,099,522 1,762,892 Hartford Capital Appreciation HLS Fund, Inc.............................. 9,707,476 9,273,722 Hartford MidCap Fund HLS Fund, Inc...... 2,718,765 1,778,860 Hartford International Opportunities HLS Fund, Inc.............................. 2,313,355 2,244,694 Hartford Global Leaders HLS Fund........ 1,994,788 1,538,751 Hartford Stock HLS Fund, Inc............ 4,720,686 3,643,673 Hartford Growth and Income HLS Fund..... 446,401 233,844 Hartford Dividend and Growth HLS Fund, Inc.............................. 1,770,683 2,005,361 Hartford Index HLS Fund, Inc............ 267,104 169,412 Hartford International Advisers HLS Fund, Inc.............................. 711,575 630,173 Hartford Advisers HLS Fund, Inc......... 5,420,804 5,408,766 Hartford High Yield HLS Fund............ 51,176 36,498 Hartford Bond HLS Fund, Inc............. 1,555,908 1,528,741 Hartford Mortgage Securities HLS Fund, Inc.............................. 1,648,069 1,674,927
7. 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 ______________________________________ 90 ______________________________________ basis which is considered to be more informative to the shareholder. As of December 31, 2000 the Funds recorded the following reclassifications to increase (decrease) the accounts listed below.
ACCUMULATED ACCUMULATED UNDISTRIBUTED UNDISTRIBUTED (DISTRIBUTION (DISTRIBUTION IN EXCESS OF) IN EXCESS OF) NET INVESTMENT NET REALIZED FUND INCOME GAIN ON INVESTMENTS CAPITAL SURPLUS ----------------------------------- -------------- ------------------- --------------- Hartford Global Health HLS Fund.... 33 8 (41) Hartford Global Technology HLS Fund.............................. 171 -- (171) Hartford Small Company HLS Fund, Inc......................... 9 (9) -- Hartford Capital Appreciation HLS Fund, Inc......................... (810) 810 -- Hartford MidCap HLS Fund, Inc...... 1,097 (1,097) -- Hartford International Opportunities HLS Fund, Inc....... (1,942) 1,942 -- Hartford Global Leaders HLS Fund... (108) 108 -- Hartford Stock HLS Fund, Inc....... 49 (49) -- Hartford Growth and Income HLS Fund.............................. 35 (35) -- Hartford Dividend and Growth HLS Fund, Inc......................... (400) 400 -- Hartford Index HLS Fund, Inc....... 42 (42) -- Hartford International Advisers HLS Fund, Inc......................... 5,429 (5,429) -- Hartford Advisers HLS Fund, Inc......................... (18) 18 -- Hartford High Yield HLS Fund....... (8) 8 -- Hartford Bond HLS Fund, Inc........ (3,227) 3,227 --
8. CAPITAL LOSS CARRY FORWARD: At December 31, 2000, (tax year-end) the following Funds had capital loss carry forwards for U.S. Federal Tax purposes of approximately:
FUND AMOUNT YEAR OF EXPIRATION ---------------------------------------- ------- ------------------ Hartford Global Technology HLS Fund..... $ 64 2008 Hartford High Yield HLS Fund............ 146 2007 Hartford High Yield HLS Fund............ 2,132 2008 Hartford Bond HLS Fund, Inc............. 12,948 2007 Hartford Bond HLS Fund, Inc............. 12,693 2008 Hartford Mortgage Securities HLS Fund, Inc.............................. 7,251 2002 Hartford Mortgage Securities HLS Fund, Inc.................................... 6,081 2007 Hartford Mortgage Securities HLS Fund, Inc.............................. 2,016 2008
9. CAPITAL SHARE TRANSACTIONS: The following information is for the year ended December 31, 2000:
HARTFORD GLOBAL HEALTH HARTFORD GLOBAL HARTFORD SMALL COMPANY HLS FUND TECHNOLOGY HLS FUND HLS FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 95,116 $ 120,225 124,916 $ 118,442 630,883 $ 1,320,723 Shares issued on reinvestment of distributions........... 2,193 3,170 -- -- 59,606 117,755 Shares redeemed.......... (11,653) (15,425) (13,030) (11,584) (497,910) (1,016,835) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 85,656 $ 107,970 111,886 $ 106,858 192,579 $ 421,643 ========== =========== ========== =========== ========== ===========
______________________________________ 91 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED)
HARTFORD CAPITAL HARTFORD INTERNATIONAL APPRECIATION HLS HARTFORD MIDCAP HLS OPPORTUNITIES HLS FUND, INC. FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 231,719 $ 1,481,026 585,015 $ 1,403,743 2,911,648 $ 4,663,819 Shares issued on reinvestment of distributions........... 224,607 1,328,355 23,769 56,118 124,985 193,332 Shares redeemed.......... (145,797) (928,364) (217,251) (520,902) (2,903,270) (4,658,749) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 310,529 $ 1,881,017 391,533 $ 938,959 133,363 $ 198,402 ========== =========== ========== =========== ========== ===========
HARTFORD GLOBAL LEADERS HARTFORD STOCK HLS HARTFORD GROWTH AND HLS FUND FUND, INC. INCOME HLS FUND ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 287,140 $ 551,098 251,624 $ 1,571,846 200,076 $ 284,231 Shares issued on reinvestment of distributions........... 2,940 5,434 173,507 1,086,104 4,786 6,641 Shares redeemed.......... (58,590) (110,778) (109,433) (714,919) (59,396) (84.933) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 231,490 $ 445,754 315,698 $ 1,943,031 145,466 $ 205,939 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD DIVIDEND AND HARTFORD INDEX HLS ADVISERS HLS GROWTH HLS FUND, INC. FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 211,030 $ 440,545 100,765 $ 410,119 87,994 $ 116,771 Shares issued on reinvestment of distributions........... 168,458 332,349 11,190 44,296 40,505 49,411 Shares redeemed.......... (370,178) (767,186) (87,375) (355,466) (77,325) (100,863) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 9,310 $ 5,708 24,580 $ 98,949 51,174 $ 65,319 ========== =========== ========== =========== ========== ===========
HARTFORD ADVISERS HLS HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 345,772 $ 957,673 36,855 $ 36,850 166,759 $ 172,712 Shares issued on reinvestment of distributions........... 480,213 1,296,440 5,226 4,909 4,294 4,427 Shares redeemed.......... (536,574) (1,509,037) (24,188) (24,198) (223,527) (229,423) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 289,411 $ 745,076 17,893 $ 17,561 (52,474) $ (52,284) ========== =========== ========== =========== ========== ===========
______________________________________ 92 ______________________________________
HARTFORD MORTGAGE SECURITIES HARTFORD MONEY MARKET HLS HLS FUND, INC. FUND, INC. ----------------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT ------------- -------------- ----------- ------------ CLASS IA Shares sold................... 54,308 $ 57,862 8,049,574 $ 8,049,574 Shares issued on reinvestment of distributions............. 2,046 2,172 66,782 66,782 Shares redeemed............... (110,139) (116,754) (8,131,517) (8,131,517) ---------- ----------- ---------- ----------- Net Increase (Decrease)....... (53,785) $ (56,720) (15,161) $ (15,161) ========== =========== ========== ===========
HARTFORD GLOBAL HARTFORD GLOBAL HEALTH TECHNOLOGY HARTFORD SMALL COMPANY HLS FUND HLS FUND HLS FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 7,397 $ 9,591 11,608 $ 10,237 27,819 $ 53,619 Shares issued on reinvestment of distributions........... 163 235 -- -- 1,561 3,080 Shares redeemed.......... (1,073) (1,432) (72) (57) (9,702) (17,492) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 6,487 $ 8,394 11,536 $ 10,180 19,678 $ 39,207 ========== =========== ========== =========== ========== ===========
HARTFORD CAPITAL HARTFORD INTERNATIONAL APPRECIATION HLS HARTFORD MIDCAP HLS OPPORTUNITIES HLS FUND, INC. FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 18,255 $ 113,399 21,275 $ 52,108 34,548 $ 50,609 Shares issued on reinvestment of distributions........... 1,448 8,565 219 520 923 1,422 Shares redeemed.......... (501) (3,097) (900) (2,144) (23,494) (33,173) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 19,202 $ 118,867 20,594 $ 50,484 11,977 $ 18,858 ========== =========== ========== =========== ========== ===========
HARTFORD GLOBAL LEADERS HARTFORD STOCK HLS HARTFORD GROWTH AND HLS FUND FUND, INC. INCOME HLS FUND ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 15,113 $ 28,344 15,461 $ 99,239 11,806 $ 16,746 Shares issued on reinvestment of distributions........... 82 147 1,509 9,416 109 149 Shares redeemed.......... (506) (942) (457) (2,942) (663) (936) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 14,689 $ 27,549 16,513 $ 105,713 11,252 15,959 ========== =========== ========== =========== ========== ===========
______________________________________ 93 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED)
HARTFORD DIVIDEND AND HARTFORD INDEX HLS HARTFORD INTERNATIONAL GROWTH HLS FUND, INC. FUND, INC. ADVISERS HLS FUND, INC. ----------------------- ----------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ----------- ------------ CLASS IB Shares sold.............. 9,211 $ 19,050 4,513 $ 18,190 4,675 $ 5,956 Shares issued on reinvestment of distributions........... 1,200 2,386 41 156 278 328 Shares redeemed.......... (1,217) (2,505) (183) (752) (777) (1,008) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 9,194 $ 18,931 4,371 $ 17,594 4,176 $ 5,276 ========== =========== ========== =========== ========== ===========
HARTFORD ADVISERS HLS HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 44,879 $ 124,887 2,447 $ 2,457 14,461 $ 15,148 Shares issued on reinvestment of distributions........... 6,465 17,444 184 181 91 94 Shares redeemed.......... (2,896) (8,052) (71) (80) (1,946) (2,009) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 48,448 $ 134,279 2,560 $ 2,558 12,606 $ 13,233 ========== =========== ========== =========== ========== ===========
HARTFORD MORTGAGE SECURITIES HLS HARTFORD MONEY MARKET FUND, INC. HLS FUND, INC. ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- CLASS IB Shares sold................... 1,223 $ 1,339 92,669 $ 92,669 Shares issued on reinvestment of distributions............. 1 2 985 985 Shares redeemed............... (222) (247) (66,188) (66,188) ---------- ----------- ---------- ----------- Net Increase (Decrease)....... 1,002 $ 1,094 27,466 $ 27,466 ========== =========== ========== ===========
The following information is for the year ended December 31, 1999:
HARTFORD CAPITAL HARTFORD SMALL COMPANY APPRECIATION HLS HARTFORD MIDCAP HLS HLS FUND, INC. FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 449,381 $ 730,074 217,405 $ 1,126,020 332,614 $ 574,935 Shares issued on reinvestment of distributions........... 466 986 87,389 397,183 14,799 27,768 Shares redeemed.......... (369,178) (587,381) (218,690) (1,114,145) (119,536) (206,746) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 80,669 $ 143,679 86,104 $ 409,058 227,877 $ 395,957 ========== =========== ========== =========== ========== ===========
______________________________________ 94 ______________________________________
HARTFORD INTERNATIONAL OPPORTUNITIES HLS HARTFORD GLOBAL LEADERS HARTFORD STOCK HLS FUND, INC. HLS FUND FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 1,187,527 $ 1,833,048 93,679 $ 143,929 235,051 $ 1,558,715 Shares issued on reinvestment of distributions........... 8,503 15,254 553 1,016 110,769 683,262 Shares redeemed.......... (1,239,799) (1,919,519) (4,786) (6,915) (125,298) (836,000) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. (43,769) $ (71,217) 89,446 $ 138,030 220,522 $ 1,405,977 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD INDEX HLS INCOME HLS FUND GROWTH HLS FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 124,786 $ 162,232 180,203 $ 388,544 168,042 $ 636,888 Shares issued on reinvestment of distributions........... 1,262 1,784 83,477 172,308 14,933 56,131 Shares redeemed.......... (6,394) (8,050) (173,958) (375,388) (83,756) (317,814) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 119,654 $ 155,966 89,722 $ 185,464 99,219 $ 375,205 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL ADVISERS HLS HARTFORD ADVISERS HLS HARTFORD HIGH YIELD FUND, INC. FUND, INC. HLS FUND ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 76,211 $ 96,821 614,914 $ 1,778,190 44,460 $ 46,499 Shares issued on reinvestment of distributions........... 5,070 7,000 460,621 1,279,339 2,366 2,376 Shares redeemed.......... (45,207) (57,914) (280,037) (814,256) (8,594) (8,946) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 36,074 $ 45,907 795,498 $ 2,243,273 38,232 $ 39,929 ========== =========== ========== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD BOND HLS SECURITIES HLS HARTFORD MONEY MARKET FUND, INC. FUND, INC. HLS FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold.............. 277,050 $ 292,698 57,420 $ 62,723 3,906,483 $ 3,906,483 Shares issued on reinvestment of distributions........... 60,010 60,030 18,282 18,999 51,556 51,556 Shares redeemed.......... (187,270) (197,509) (77,858) (84,996) (3,573,089) (3,573,089) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 149,790 $ 155,219 (2,156) $ (3,274) 384,950 $ 384,950 ========== =========== ========== =========== ========== ===========
______________________________________ 95 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) DECEMBER 31, 2000 ($000 OMITTED)
HARTFORD SMALL COMPANY HARTFORD CAPITAL HARTFORD MIDCAP HLS HLS FUND, INC. APPRECIATION HLS FUND, INC. FUND, INC. ----------------------- ----------------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ------------- -------------- ---------- ----------- CLASS IB Shares sold.............. 4,417 $ 7,086 2,435 $ 12,892 18 $ 34 Shares issued on reinvestment of distributions........... 6 14 493 2,214 -- -- Shares redeemed.......... (285) (465) (80) (470) p-- p-- ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 4,138 $ 6,635 2,848 $ 14,636 18 $ 34 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL OPPORTUNITIES HLS HARTFORD GLOBAL LEADERS HARTFORD STOCK HLS FUND, INC. HLS FUND FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 1,365 $ 2,144 5 $ 10 4,730 $ 33,043 Shares issued on reinvestment of distributions........... 15 27 1 1 1,162 7,106 Shares redeemed.......... (161) (242) p-- p-- (114) (935) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 1,219 $ 1,929 6 $ 11 5,778 $ 39,214 ========== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD INDEX HLS INCOME HLS FUND GROWTH HLS FUND, INC. FUND, INC. ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. -- $ -- 3,660 $ 7,937 3 $ 10 Shares issued on reinvestment of distributions........... p-- p-- 516 1,061 -- -- Shares redeemed.......... -- -- (492) (1,063) -- -- ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. p-- $ p-- 3,684 $ 7,935 3 $ 10 ========== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL ADVISERS HLS HARTFORD ADVISERS HLS HARTFORD HIGH YIELD HLS FUND, INC. FUND, INC. FUND ----------------------- ----------------------- ----------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold.............. 8 $ 10 31,942 $ 94,086 -- $ -- Shares issued on reinvestment of distributions........... -- -- 4,765 13,222 2 2 Shares redeemed.......... -- -- (121) (353) -- -- ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 8 $ 10 36,586 $ 106,955 2 $ 2 ========== =========== ========== =========== ========== ===========
______________________________________ 96 ______________________________________
HARTFORD BOND HLS HARTFORD MORTGAGE SECURITIES HARTFORD MONEY MARKET HLS FUND, INC. HLS FUND, INC. FUND, INC. ----------------------- ----------------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ----------- ------------- -------------- ----------- ------------ CLASS IB Shares sold.............. 12,086 $ 12,743 9 $ 10 13,572 $ 13,572 Shares issued on reinvestment of distributions........... 886 884 -- -- 266 266 Shares redeemed.......... (1,948) (2,053) -- -- (7,213) (7,213) ---------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease).............. 11,024 $ 11,574 9 $ 10 6,625 $ 6,625 ========== =========== ========== =========== ========== ===========
pDue to the presentation of the financial statements in thousands, the number of shares and amounts round to zero. 10. LINE OF CREDIT: The Funds, except for Hartford Money Market HLS Fund, Inc., participate in a $500,000 committed revolving line of credit facility. The facility is to be used for temporary or emergency purposes. Under the arrangement, the funds are required to own securities having a market value in excess of 300% of the total bank borrowings. The interest rate on borrowings varies depending on the nature of the loan. The facility also requires a fee to be paid based on the amount of the commitment, which has not been utilized. During the year ended December 31, 2000, 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.............. 74.613827% Hartford Capital Appreciation HLS Fund, Inc....... 15.418052 Hartford International Opportunities HLS Fund, Inc........................................ 71.625006 Hartford Stock HLS Fund, Inc...................... 9.265642 Hartford Dividend and Growth HLS Fund, Inc........ 44.378756 Hartford Advisers HLS Fund, Inc................... 29.667722 Hartford Bond HLS Fund, Inc....................... 93.065183
______________________________________ 97 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
-- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED DIVIDENDS DIVIDENDS VALUE AT INVESTMENT GAIN TOTAL FROM FROM NET IN EXCESS OF BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME ---------- ---------- ------------ ---------- ---------- -------------- HARTFORD GLOBAL HEALTH HLS FUND 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 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 SMALL COMPANY HLS FUND, INC. 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) -- (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) -- (6) For the Year Ended December 31 1997................... 1.069 0.001 0.195 0.196 (0.001) -- From inception, August 9, 1996, through December 31, 1996.................. 1.000 0.002 0.069 0.071 (0.002) -- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. 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) -- (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) -- (6) For the Year Ended December 31 1997................... 3.914 0.020 0.794 0.814 (0.022) -- 1996................... 3.490 0.022 0.655 0.677 (0.025) -- HARTFORD MIDCAP HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 2.053 (0.001) 0.518 0.517 -- -- Class IB............... 2.053 (0.001) 0.513 0.512 -- -- For the Year Ended December 31, 1999 Class IA............... 1.439 -- 0.725 0.725 -- -- From inception, November 9, 1999, through December 31, 1999 Class IB............... 1.758 -- 0.373 0.373 -- -- For the Year Ended December 31 1998................... 1.137 (0.001) 0.303 0.302 -- -- From inception, July 15, 1997, through December 31, 1997..... 1.000 0.001 0.137 0.138 (0.001) -- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Year Ended December 31, 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) -- (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) -- (6) For the Year Ended December 31 1997................... 1.407 0.022 (0.019) 0.003 (0.012) -- 1996................... 1.306 0.023 0.140 0.163 (0.025) --
(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 IB 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. ______________________________________ 98 ______________________________________
-- SELECTED PER-SHARE DATA -- -------------------------------------------------------------------------- DISTRIBUTIONS FROM NET NET ASSET REALIZED NET INCREASE VALUE AT GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD -------------- ------------- ------------- ----------------- --------- HARTFORD GLOBAL HEALTH HLS FUND From inception, May 1, 2000, through December 31, 2000 Class IA............... $(0.035) $-- $(0.038) $ 0.442 $1.442 Class IB............... (0.035) -- (0.037) 0.441 1.441 HARTFORD GLOBAL TECHNOLOGY HLS FUND From inception, May 1, 2000, through December 31, 2000 Class IA............... -- -- -- (0.363) 0.637 Class IB............... -- -- -- (0.364) 0.636 HARTFORD SMALL COMPANY HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.250) -- (0.250) (0.501) 1.687 Class IB............... (0.250) -- (0.250) (0.504) 1.683 For the Year Ended December 31, 1999 Class IA............... (0.003) -- (0.003) 0.867 2.188 Class IB............... (0.003)(6) -- (6) (0.003)(6) 0.864(6) 2.187(6) For the Year Ended December 31, 1998 Class IA............... (0.020) -- (0.020) 0.119 1.321 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) -- (6) (0.017)(6) 1.323(6) For the Year Ended December 31 1997................... (0.062) -- (0.063) 0.133 1.202 From inception, August 9, 1996, through December 31, 1996.................. -- -- (0.002) 0.069 1.069 HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.928) -- (0.967) (0.169) 5.926 Class IB............... (0.928) -- (0.962) (0.175) 5.923 For the Year Ended December 31, 1999 Class IA............... (0.312) -- (0.330) 1.336 6.095 Class IB............... (1.979)(6) -- (6) (1.992)(6) (0.339)(6) 6.098(6) For the Year Ended December 31, 1998 Class IA............... (0.175) -- (0.201) 0.349 4.759 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.156)(6) (0.049)(6) 6.437(6) For the Year Ended December 31 1997................... (0.296) -- (0.318) 0.496 4.410 1996................... (0.228) -- (0.253) 0.424 3.914 HARTFORD MIDCAP HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.103) -- (0.103) 0.414 2.467 Class IB............... (0.103) -- (0.103) 0.409 2.462 For the Year Ended December 31, 1999 Class IA............... (0.111) -- (0.111) 0.614 2.053 From inception, November 9, 1999, through December 31, 1999 Class IB............... (0.078) -- (0.078) 0.295 2.053 For the Year Ended December 31 1998................... -- -- -- 0.302 1.439 From inception, July 15, 1997, through December 31, 1997..... -- -- (0.001) 0.137 1.137 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.193) -- (0.216) (0.512) 1.364 Class IB............... (0.193) -- (0.212) (0.511) 1.365 For the Year Ended December 31, 1999 Class IA............... -- -- (0.018) 0.521 1.876 Class IB............... -- (6) -- (6) (0.017)(6) 0.519(6) 1.876(6) For the Year Ended December 31, 1998 Class IA............... (0.088) -- (0.107) 0.061 1.355 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.022)(6) (0.039)(6) 1.357(6) For the Year Ended December 31 1997................... (0.104) -- (0.116) (0.113) 1.294 1996................... (0.037) -- (0.062) 0.101 1.407 -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET ASSETS EXPENSES EXPENSES NET AT END OF TO AVERAGE TO AVERAGE INVESTMENT PERIOD NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL ($000'S AFTER BEFORE TO AVERAGE TURNOVER RETURN OMITTED) WAIVERS WAIVERS NET ASSETS RATE(7) --------- -------------- ---------- ----------- ---------- --------- HARTFORD GLOBAL HEALTH HLS FUND From inception, May 1, 2000, through December 31, 2000 Class IA............... 48.18%(2) $ 123,533 0.90%(1) 0.90%(1) 0.59%(1) 46.1% Class IB............... 48.00(2) 9,347 1.08(1) 1.15(1) 0.41(1) 46.1 HARTFORD GLOBAL TECHNOLOGY HLS FUND From inception, May 1, 2000, through December 31, 2000 Class IA............... (37.37)(2) 71,276 0.92(1) 0.92(1) (0.44)(1) 149.9 Class IB............... (37.45) 7,340 1.10(1) 1.17(1) (0.62)(1) 149.9 HARTFORD SMALL COMPANY HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (13.12) 908,886 0.74 0.74 -- 194.5 Class IB............... (13.28) 40,967 0.92 0.99 (0.18) 194.5 For the Year Ended December 31, 1999 Class IA............... 65.83 757,302 0.78 0.78 (0.45) 181.3 Class IB............... 65.54 10,200 0.96 1.03 (0.63) 181.3 For the Year Ended December 31, 1998 Class IA............... 11.62 350,734 0.77 0.77 (0.24) 235.7 From inception, April 1, 1998, through December 31, 1998 Class IB............... (1.30)(2) 696 0.95(1) 0.95(1) (0.46)(1) 235.7 For the Year Ended December 31 1997................... 18.38 210,769 0.77 0.77 0.08 222.2 From inception, August 9, 1996, through December 31, 1996.................. 7.15(2) 42,812 0.72(1) 0.88(1) 0.31(1)(3) 31.8 HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 13.22 9,581,898 0.66 0.66 0.64 108.2 Class IB............... 13.02 136,058 0.84 0.91 0.46 108.2 For the Year Ended December 31, 1999 Class IA............... 37.46 7,963,003 0.66 0.66 0.46 66.4 Class IB............... 37.21 22,993 0.84 0.91 0.28 66.4 For the Year Ended December 31, 1998 Class IA............... 15.48 5,807,480 0.64 0.64 0.59 51.2 From inception, April 1, 1998, through December 31, 1998 Class IB............... 1.65(2) 5,942 0.82(1) 0.82(1) 0.30(1) 51.2 For the Year Ended December 31 1997................... 22.34 4,802,992 0.64 0.64 0.44 57.6 1996................... 20.70 3,386,670 0.65 0.65 0.60 85.4 HARTFORD MIDCAP HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 25.42 1,774,047 0.72 0.72 (0.08) 137.6 Class IB............... 25.20 50,747 0.90 0.97 (0.26) 137.6 For the Year Ended December 31, 1999 Class IA............... 51.81 672,678 0.79 0.79 (0.15) 120.7 From inception, November 9, 1999, through December 31, 1999 Class IB............... 21.39(2) 36 0.97(1) 1.04(1) (0.32)(1) 120.7 For the Year Ended December 31 1998................... 26.57 143,494 0.79 0.79 (0.15) 134.1 From inception, July 15, 1997, through December 31, 1997..... 13.81(2) 27,589 0.46(1) 0.86(1) 0.45(1)(3) 46.1 HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (17.10) 1,326,609 0.78 0.78 1.16 158.8 Class IB............... (17.25) 18,682 0.96 1.03 0.98 158.8 For the Year Ended December 31, 1999 Class IA............... 39.86 1,574,836 0.78 0.78 1.20 133.2 Class IB............... 39.61 3,203 0.96 1.03 1.02 133.2 For the Year Ended December 31, 1998 Class IA............... 13.16 1,196,694 0.77 0.77 1.51 157.4 From inception, April 1, 1998, through December 31, 1998 Class IB............... (1.13)(2) 663 0.94(1) 0.94(1) 0.71(1) 157.4 For the Year Ended December 31 1997................... 0.34 1,092,946 0.77 0.77 1.48 72.7 1996................... 12.93 996,543 0.79 0.79 1.74 70.0
(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 IB 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. ______________________________________ 99 ______________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED)
-- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED DIVIDENDS DIVIDENDS VALUE AT INVESTMENT GAIN TOTAL FROM FROM NET IN EXCESS OF BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME ---------- ---------- ------------ ---------- ---------- -------------- HARTFORD GLOBAL LEADERS HLS FUND For the Year Ended December 31, 2000 Class IA............... $ 1.913 $ 0.008 $(0.142) $(0.134) $(0.009) $-- Class IB............... 1.912 (0.006) (0.130) (0.136) (0.008) -- For the Year Ended December 31, 1999 Class IA............... 1.285 0.003 0.642 0.645 (0.003) -- Class IB............... 1.285 0.007 0.634 0.641 -- -- From inception, September 30, 1998, through December 31, 1998 Class IA............... 1.000 0.001 0.318 0.319 (0.002) -- Class IB............... 1.000 0.002 0.316 0.318 (0.001) -- HARTFORD STOCK HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 7.147 0.039 (0.500) (0.461) (0.041) -- Class IB............... 7.151 0.074 (0.547) (0.473) (0.034) -- For the Year Ended December 31, 1999 Class IA............... 6.562 0.050 1.143 1.193 (0.049) -- Class IB............... 11.884(6) 0.021(6) 1.200(6) 1.221(6) (0.056)(6) -- (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) -- (6) For the Year Ended December 31 1997................... 4.143 0.050 1.196 1.246 (0.049) -- 1996................... 3.527 0.060 0.763 0.823 (0.059) -- HARTFORD GROWTH AND INCOME HLS FUND 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 DIVIDEND AND GROWTH HLS FUND, INC. 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) -- (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) -- (6) For the Year Ended December 31 1997................... 1.547 0.035 0.445 0.480 (0.031) -- 1996................... 1.317 0.034 0.258 0.292 (0.034) -- HARTFORD INDEX HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 4.189 0.030 (0.424) (0.394) (0.031) -- Class IB............... 4.189 0.037 (0.439) (0.402) (0.028) -- For the Year Ended December 31, 1999 Class IA............... 3.570 0.034 0.685 0.719 (0.040) -- From inception, November 9, 1999, through December 31, 1999 Class IB............... 3.922 0.004 0.298 0.302 (0.032) -- For the Year Ended December 31 1998................... 2.878 0.032 0.759 0.791 (0.027) -- 1997................... 2.382 0.035 0.692 0.727 (0.035) -- 1996................... 2.028 0.044 0.393 0.437 (0.044) -- HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. 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) (0.006) 1997................... 1.167 0.056 0.006 0.062 (0.050) -- 1996................... 1.109 0.040 0.093 0.133 (0.051) --
(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 IB 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. ______________________________________ 100 _____________________________________
-- SELECTED PER-SHARE DATA -- -------------------------------------------------------------------------- DISTRIBUTIONS FROM NET NET ASSET REALIZED NET INCREASE VALUE AT GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD -------------- ------------- ------------- ----------------- --------- HARTFORD GLOBAL LEADERS HLS FUND For the Year Ended December 31, 2000 Class IA............... $(0.011) $-- $(0.020) $(0.154) $1.759 Class IB............... (0.011) -- (0.019) (0.155) 1.757 For the Year Ended December 31, 1999 Class IA............... (0.014) -- (0.017) 0.628 1.913 Class IB............... (0.014) -- (0.014) 0.627 1.912 From inception, September 30, 1998, through December 31, 1998 Class IA............... (0.032) -- (0.034) 0.285 1.285 Class IB............... (0.032) -- (0.033) 0.285 1.285 HARTFORD STOCK HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.765) -- (0.806) (1.267) 5.880 Class IB............... (0.765) -- (0.799) (1.272) 5.879 For the Year Ended December 31, 1999 Class IA............... (0.559) -- (0.608) 0.585 7.147 Class IB............... (5.898)(6) -- (6) (5.954)(6) (4.733)(6) 7.151(6) For the Year Ended December 31, 1998 Class IA............... (0.184) -- (0.234) 1.439 6.562 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.517)(6) 1.091(6) 11.884(6) For the Year Ended December 31 1997................... (0.217) -- (0.266) 0.980 5.123 1996................... (0.148) -- (0.207) 0.616 4.143 HARTFORD GROWTH AND INCOME HLS FUND For the Year Ended December 31, 2000 Class IA............... (0.021) -- (0.026) (0.106) 1.326 Class IB............... (0.021) -- (0.025) (0.107) 1.323 For the Year Ended December 31, 1999 Class IA............... (0.009) -- (0.013) 0.246 1.432 Class IB............... (0.009) -- (0.011) 0.245 1.430 From inception, May 31, 1998, through December 31, 1998 Class IA............... -- -- (0.004) 0.186 1.186 Class IB............... -- -- (0.003) 0.185 1.185 HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.204) -- (0.238) (0.025) 2.124 Class IB............... (0.204) -- (0.236) (0.027) 2.124 For the Year Ended December 31, 1999 Class IA............... (0.085) -- (0.120) (0.011) 2.149 Class IB............... (0.183)(6) -- (6) (0.217)(6) (0.116)(6) 2.151(6) For the Year Ended December 31, 1998 Class IA............... (0.070) -- (0.105) 0.208 2.160 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.070)(6) 0.014(6) 2.267(6) For the Year Ended December 31 1997................... (0.044) -- (0.075) 0.405 1.952 1996................... (0.028) -- (0.062) 0.230 1.547 HARTFORD INDEX HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.039) -- (0.070) (0.464) 3.725 Class IB............... (0.039) -- (0.067) (0.469) 3.720 For the Year Ended December 31, 1999 Class IA............... (0.060) -- (0.100) 0.619 4.189 From inception, November 9, 1999, through December 31, 1999 Class IB............... (0.003) -- (0.035) 0.267 4.189 For the Year Ended December 31 1998................... (0.072) -- (0.099) 0.692 3.570 1997................... (0.196) -- (0.231) 0.496 2.878 1996................... (0.039) -- (0.083) 0.354 2.382 HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.089) -- (0.160) (0.248) 1.149 Class IB............... (0.089) -- (0.160) (0.250) 1.147 For the Year Ended December 31, 1999 Class IA............... -- -- (0.025) 0.242 1.397 From inception, November 9, 1999, through December 31, 1999 Class IB............... -- -- (0.025) 0.097 1.397 For the Year Ended December 31 1998................... (0.032) (0.089) (0.166) (0.020) 1.155 1997................... (0.004) -- (0.054) 0.008 1.175 1996................... (0.024) -- (0.075) 0.058 1.167 -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF NET ASSETS EXPENSES EXPENSES NET AT END OF TO AVERAGE TO AVERAGE INVESTMENT PERIOD NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL ($000'S AFTER BEFORE TO AVERAGE TURNOVER RETURN OMITTED) WAIVERS WAIVERS NET ASSETS RATE(7) -------- -------------- ---------- ----------- ---------- --------- HARTFORD GLOBAL LEADERS HLS FUND For the Year Ended December 31, 2000 Class IA............... (7.06)% $ 572,517 0.81% 0.81% 0.63% 366.6% Class IB............... (7.22) 25,869 0.99 1.06 0.45 366.6 For the Year Ended December 31, 1999 Class IA............... 50.37 179,675 0.86 0.91 0.54(3) 207.4 Class IB............... 50.11 69 1.04 1.16 0.36(3) 207.4 From inception, September 30, 1998, through December 31, 1998 Class IA............... 31.88(2) 5,761 0.89(1) 1.46(1) 0.63(1)(3) 47.9 Class IB............... 31.82(2) 39 0.98(1) 1.55(1) 0.59(1)(3) 47.9 HARTFORD STOCK HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (7.04) 9,590,018 0.48 0.48 0.64 40.2 Class IB............... (7.21) 136,077 0.66 0.73 0.46 40.2 For the Year Ended December 31, 1999 Class IA............... 19.78 9,400,385 0.48 0.48 0.80 38.5 Class IB............... 19.57 47,439 0.66 0.73 0.62 38.5 For the Year Ended December 31, 1998 Class IA............... 33.47 7,183,046 0.46 0.46 0.95 27.1 From inception, April 1, 1998, through December 31, 1998 Class IB............... 14.91(2) 10,167 0.65(1) 0.65(1) 0.73(1) 27.1 For the Year Ended December 31 1997................... 31.38 4,713,322 0.45 0.45 1.11 31.6 1996................... 24.37 2,994,209 0.46 0.46 1.59 42.3 HARTFORD GROWTH AND INCOME HLS FUND For the Year Ended December 31, 2000 Class IA............... (5.64) 379,905 0.79 0.79 0.41 72.8 Class IB............... (5.81) 14,898 0.97 1.04 0.23 72.8 For the Year Ended December 31, 1999 Class IA............... 21.82 201,857 0.82 0.82 0.63 53.8 Class IB............... 21.61 14 1.00 1.07 0.45 53.8 From inception, May 31, 1998, through December 31, 1998 Class IA............... 19.05(2) 25,312 0.28(1) 0.84(1) 1.42(1)(3) 29.6 Class IB............... 18.82(2) 11 0.44(1) 1.00(1) 1.34(1)(3) 29.6 HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 10.95 3,189,857 0.68 0.68 1.70 59.4 Class IB............... 10.75 35,415 0.86 0.93 1.52 59.4 For the Year Ended December 31, 1999 Class IA............... 5.31 3,207,733 0.68 0.68 1.60 55.9 Class IB............... 5.12 16,087 0.86 0.93 1.42 55.9 For the Year Ended December 31, 1998 Class IA............... 16.42(2) 3,031,293 0.66 0.66 1.81 48.2 From inception, April 1, 1998, through December 31, 1998 Class IB............... 3.67(2) 8,600 0.85(1) 0.85(1) 1.57(1) 48.2 For the Year Ended December 31 1997................... 31.89 1,994,653 0.68 0.68 2.21 34.2 1996................... 22.91 879,980 0.73 0.73 2.52 56.9 HARTFORD INDEX HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (9.50) 2,387,000 0.43 0.43 0.75 6.7 Class IB............... (9.66) 16,272 0.61 0.68 0.57 6.7 For the Year Ended December 31, 1999 Class IA............... 20.49 2,581,436 0.43 0.43 0.95 2.8 From inception, November 9, 1999, through December 31, 1999 Class IB............... 7.73(2) 11 0.61(1) 0.68(1) 0.77(1) 2.8 For the Year Ended December 31 1998................... 28.06 1,846,117 0.40 0.40 1.21 4.5 1997................... 32.61 1,123,455 0.39 0.39 1.52 5.7 1996................... 22.09 621,065 0.39 0.39 2.07 19.3 HARTFORD INTERNATIONAL ADVISERS HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (6.63) 384,648 0.85 0.85 2.72 184.0 Class IB............... (6.80) 4,800 1.03 1.10 2.54 184.0 For the Year Ended December 31, 1999 Class IA............... 23.16 396,147 0.85 0.85 2.59 141.5 From inception, November 9, 1999, through December 31, 1999 Class IB............... 9.35(2) 11 1.03(1) 1.10(1) 2.42(1) 141.5 For the Year Ended December 31 1998................... 13.35 285,853 0.86 0.86 2.77 161.1 1997................... 5.52 207,582 0.87 0.87 3.08 162.5 1996................... 12.25 104,486 0.96 0.96 3.24 95.2
(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 IB 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. ______________________________________ 101 _____________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED)
-- SELECTED PER-SHARE DATA(4) -- ---------------------------------------------------------------------------- NET REALIZED AND NET ASSET NET UNREALIZED DIVIDENDS DIVIDENDS VALUE AT INVESTMENT GAIN TOTAL FROM FROM NET IN EXCESS OF BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME ---------- ---------- ------------ ---------- ---------- -------------- HARTFORD ADVISERS HLS FUND, INC. 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) -- (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) -- (6) For the Year Ended December 31 1997................... 2.169 0.056 0.455 0.511 (0.055) -- 1996................... 1.958 0.059 0.255 0.314 (0.059) -- HARTFORD HIGH YIELD HLS FUND For the Year Ended December 31, 2000 Class IA............... 1.005 0.078 (0.068) 0.010 (0.076) -- Class IB............... 1.005 0.004 0.004 0.008 (0.075) -- For the Year Ended December 31, 1999 Class IA............... 1.017 0.060 (0.013) 0.047 (0.059) -- Class IB............... 1.017 0.085 (0.039) 0.046 (0.058) -- From inception, September 21, 1998, through December 31, 1998 Class IA............... 1.000 0.019 0.017 0.036 (0.019) -- Class IB............... 1.000 0.022 0.014 0.036 (0.019) -- HARTFORD BOND HLS FUND, INC. For the Year Ended December 31, 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) -- (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) -- (6) For the Year Ended December 31 1997................... 1.000 0.063 0.047 0.110 (0.060) -- 1996................... 1.028 0.064 (0.029) 0.035 (0.063) -- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Year Ended December 31, 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) (0.003) 1997................... 1.056 0.071 0.022 0.093 (0.065) -- 1996................... 1.071 0.069 (0.018) 0.051 (0.066) -- HARTFORD MONEY MARKET HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 1.000 0.059 -- 0.059 (0.059) -- Class IB............... 1.000 0.058 -- 0.058 (0.058) -- For the Year Ended December 31, 1999 Class IA............... 1.000 0.070 -- 0.070 (0.070) -- Class IB............... 1.000 0.068 -- 0.068 (0.068) -- For the Year Ended December 31, 1998 Class IA............... 1.000 0.051 -- 0.051 (0.051) -- From inception, April 1, 1998, through December 31, 1998 Class IB............... 1.000 0.037 -- 0.037 (0.037) -- For the Year Ended December 31 1997................... 1.000 0.049 -- 0.049 (0.049) -- 1996................... 1.000 0.050 -- 0.050 (0.050) --
(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 IB 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. ______________________________________ 102 _____________________________________
-- SELECTED PER-SHARE DATA -- -------------------------------------------------------------------------- DISTRIBUTIONS FROM NET NET ASSET REALIZED NET INCREASE VALUE AT GAINS ON DISTRIBUTIONS TOTAL (DECREASE) IN END INVESTMENTS FROM CAPITAL DISTRIBUTIONS NET ASSET VALUE OF PERIOD -------------- ------------- ------------- ----------------- --------- HARTFORD ADVISERS HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... $(0.257) $-- $(0.280) $(0.300) $2.665 Class IB............... (0.257) -- (0.279) (0.303) 2.663 For the Year Ended December 31, 1999 Class IA............... (0.246) -- (0.309) (0.020) 2.965 Class IB............... (0.829)(6) -- (6) (0.893)(6) (0.611)(6) 2.966(6) For the Year Ended December 31, 1998 Class IA............... (0.089) -- (0.149) 0.458 2.985 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.195)(6) 0.206(6) 3.577(6) For the Year Ended December 31 1997................... (0.098) -- (0.153) 0.358 2.527 1996................... (0.044) -- (0.103) 0.211 2.169 HARTFORD HIGH YIELD HLS FUND For the Year Ended December 31, 2000 Class IA............... -- -- (0.076) (0.066) 0.939 Class IB............... -- -- (0.075) (0.067) 0.938 For the Year Ended December 31, 1999 Class IA............... -- -- (0.059) (0.012) 1.005 Class IB............... -- -- (0.058) (0.012) 1.005 From inception, September 21, 1998, through December 31, 1998 Class IA............... -- -- (0.019) 0.017 1.017 Class IB............... -- -- (0.019) 0.017 1.017 HARTFORD BOND HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... -- -- (0.005) 0.114 1.108 Class IB............... -- -- (0.005) 0.112 1.107 For the Year Ended December 31, 1999 Class IA............... (0.007) -- (0.065) (0.087) 0.994 Class IB............... (0.008)(6) -- (6) (0.065)(6) (0.088)(6) 0.995(6) For the Year Ended December 31, 1998 Class IA............... -- -- (0.054) 0.031 1.081 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- (6) -- (6) (0.055)(6) 0.008(6) 1.083(6) For the Year Ended December 31 1997................... -- -- (0.060) 0.050 1.050 1996................... -- -- (0.063) (0.028) 1.000 HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... -- -- (0.008) 0.099 1.138 Class IB............... -- -- (0.008) 0.097 1.136 For the Year Ended December 31, 1999 Class IA............... -- -- (0.062) (0.046) 1.039 From inception, November 9, 1999, through December 31, 1999 Class IB............... -- -- (0.061) (0.068) 1.039 For the Year Ended December 31 1998................... -- (0.002) (0.072) 0.001 1.085 1997................... -- -- (0.065) 0.028 1.084 1996................... -- -- (0.066) (0.015) 1.056 HARTFORD MONEY MARKET HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... -- -- (0.059) -- 1.000 Class IB............... -- -- (0.058) -- 1.000 For the Year Ended December 31, 1999 Class IA............... -- -- (0.070) -- 1.000 Class IB............... -- -- (0.068) -- 1.000 For the Year Ended December 31, 1998 Class IA............... -- -- (0.051) -- 1.000 From inception, April 1, 1998, through December 31, 1998 Class IB............... -- -- (0.037) -- 1.000 For the Year Ended December 31 1997................... -- -- (0.049) -- 1.000 1996................... -- -- (0.050) -- 1.000 -- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF NET ASSETS EXPENSES EXPENSES NET AT END OF TO AVERAGE TO AVERAGE INVESTMENT PERIOD NET ASSETS NET ASSETS INCOME PORTFOLIO TOTAL ($000'S AFTER BEFORE TO AVERAGE TURNOVER RETURN OMITTED) WAIVERS WAIVERS NET ASSETS RATE(7) -------- -------------- ---------- ----------- ---------- --------- HARTFORD ADVISERS HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... (0.75)% $13,430,507 0.66% 0.66% 2.47% 40.4% Class IB............... (0.92) 252,247 0.84 0.91 2.29 40.4 For the Year Ended December 31, 1999 Class IA............... 10.59 14,082,895 0.65 0.66 2.46 38.4 Class IB............... 10.39 137,318 0.83 0.91 2.28 38.4 For the Year Ended December 31, 1998 Class IA............... 24.66 11,805,411 0.63 0.63 2.40 36.7 From inception, April 1, 1998, through December 31, 1998 Class IB............... 11.96(2) 34,714 0.83(1) 0.83(1) 2.22(1) 36.7 For the Year Ended December 31 1997................... 24.51 8,283,912 0.63 0.63 2.44 36.1 1996................... 16.59 5,879,529 0.63 0.63 2.92 53.8 HARTFORD HIGH YIELD HLS FUND For the Year Ended December 31, 2000 Class IA............... 1.03 66,104 0.81 0.81 9.15 69.4 Class IB............... 0.85 2,497 0.99 1.06 8.97 69.4 For the Year Ended December 31, 1999 Class IA............... 4.70 52,731 0.72 0.84 8.36(3) 46.9 Class IB............... 4.49 102 0.90 1.09 8.18(3) 46.9 From inception, September 21, 1998, through December 31, 1998 Class IA............... 3.59(2) 14,482 0.35(1) 0.92(1) 8.04(1)(3) 15.4 Class IB............... 3.53(2) 102 0.53(1) 1.10(1) 7.77(1)(3) 15.4 HARTFORD BOND HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 11.99 1,033,043 0.52 0.52 6.54 168.5 Class IB............... 11.79 31,551 0.70 0.77 6.36 168.5 For the Year Ended December 31, 1999 Class IA............... (2.02) 978,861 0.52 0.52 6.09 110.7 Class IB............... (2.19) 15,818 0.70 0.77 5.91 110.7 For the Year Ended December 31, 1998 Class IA............... 8.15 902,480 0.50 0.50 5.86 122.3 From inception, April 1, 1998, through December 31, 1998 Class IB............... 5.89(2) 5,285 0.69(1) 0.69(1) 5.54(1) 122.3 For the Year Ended December 31 1997................... 11.35 552,870 0.51 0.51 6.58 112.9(5) 1996................... 3.52 402,548 0.52 0.52 6.37 212.0 HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 10.28 310,825 0.48 0.48 6.43 534.3 Class IB............... 10.08 1,148 0.66 0.73 6.25 534.3 For the Year Ended December 31, 1999 Class IA............... 1.52 339,767 0.48 0.48 5.98 472.0 From inception, November 9, 1999, through December 31, 1999 Class IB............... 0.60(2) 9 0.66(1) 0.73(1) 5.80(1) 472.0 For the Year Ended December 31 1998................... 6.72 356,834 0.46 0.46 6.18 207.8 1997................... 9.01 325,702 0.45 0.45 6.60 46.5(5) 1996................... 5.07 325,495 0.45 0.45 6.67 201.0 HARTFORD MONEY MARKET HLS FUND, INC. For the Year Ended December 31, 2000 Class IA............... 6.10 1,242,275 0.48 0.48 5.91 -- Class IB............... 5.91 36,270 0.66 0.73 5.73 -- For the Year Ended December 31, 1999 Class IA............... 4.89 1,257,436 0.47 0.47 4.81 -- Class IB............... 4.71 8,804 0.65 0.72 4.63 -- For the Year Ended December 31, 1998 Class IA............... 5.25 872,486 0.45 0.45 5.12 -- From inception, April 1, 1998, through December 31, 1998 Class IB............... 3.76(2) 2,179 0.64(1) 0.64(1) 4.81(1) -- For the Year Ended December 31 1997................... 5.31 612,480 0.44 0.44 5.21 -- 1996................... 5.18 542,586 0.44 0.44 5.04 --
(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 IB 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. ______________________________________ 103 _____________________________________ REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Shareholders and Board of Directors of Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Money Market HLS Fund, Inc. and Hartford Series Fund, Inc.: We have audited the accompanying statements of net assets, including the statements of assets and liabilities, where presented, of Hartford Small Company HLS Fund, Inc., Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Stock HLS Fund, Inc., Hartford Dividend and Growth HLS Fund, Inc., Hartford Index HLS Fund, Inc., Hartford International Advisers HLS Fund, Inc., Hartford Advisers HLS Fund, Inc., Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc., Hartford Money Market HLS Fund, Inc. and Hartford Series Fund, Inc. (consisting of Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Global Leaders HLS Fund, Hartford Growth and Income HLS Fund and Hartford High Yield HLS Fund) (all Maryland corporations) (the Funds) as of December 31, 2000, and the related statements of operations for the periods presented in the year then ended, the statements of changes in net assets for the periods presented in the two years then ended and the financial highlights for the periods presented in the five years then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2000, by correspondence with the custodian bank. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of December 31, 2000, the results of their operations for the periods presented in the year then ended, the changes in their net assets for the periods presented in the two years then ended and the financial highlights for the periods presented in the five years then ended, in conformity with accounting principles generally accepted in the United States. Hartford, Connecticut ARTHUR ANDERSEN LLP February 7, 2001 ______________________________________ 104 _____________________________________ HARTFORD HLS MUTUAL FUNDS - -------------------------------------------------------------------------------- DECEMBER 31, 2000 ($000 OMITTED) TAX INFORMATION NOTICE: (UNAUDITED) For the year ended December 31, 2000, the following Funds distributed long-term capital gains dividends as follows: Hartford Small Company HLS Fund, Inc.............. $ 14,444 Hartford Capital Appreciation HLS Fund, Inc....... 761,363 Hartford MidCap HLS Fund, Inc..................... 11,741 Hartford International Opportunities HLS Fund, Inc........................................ 96,247 Hartford Stock HLS Fund, Inc...................... 914,802 Hartford Growth and Income HLS Fund............... 1,373 Hartford Dividend and Growth HLS Fund, Inc........ 261,157 Hartford Index HLS Fund, Inc...................... 24,255 Hartford International Advisers HLS Fund, Inc..... 12,250 Hartford Advisers HLS Fund, Inc................... 1,102,031
______________________________________ 105 _____________________________________ [LOGO] PRIVACY POLICY AND PRACTICES OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. AND ITS AFFILIATES (THE HARTFORD) APPLICABLE TO THE HARTFORD'S UNITED STATES CUSTOMERS WE AT THE HARTFORD value our customers' trust and are committed to the responsible management, use and protection of personal information. All insurance companies must collect a certain amount of personal information to service customers and administer business. This notice describes our policy regarding the collection and disclosure of personal information. 1) Personal information, as used in this notice, means information that identifies an individual personally and is not otherwise available to the public. It includes personal financial information such as credit history, income, financial benefits, policy or claim information. It also includes personal health information such as individual medical records or information about an illness, disability or injury. 2) We collect personal information to support our normal business operations. We may obtain personal information directly from the customer, from customer-related transactions and from third parties, such as a consumer reporting agency. Personal information such as name, address, income, payment history or credit history are gathered from sources such as applications, transactions and consumer reports. 3) The Hartford's employees have access to personal information in the course of doing their jobs, which includes underwriting policies, paying claims, developing new products or advising customers of our products and services. 4) We may share personal financial information with our affiliates, such as insurance companies, banks, agents, brokerage firms and administrators. 5) To service our customers and administer our business, we may also share information with unaffiliated third parties, including agents, brokerage firms, insurance companies, administrators and service providers and as otherwise permitted or required by law. In addition, we may share personal financial information with other unaffiliated third parties who are assisting us by performing services or functions, such as conducting surveys, marketing our products or services, or offering financial products or services under a joint agreement between us and one or more financial institutions. PRIOR TO SHARING PERSONAL FINANCIAL INFORMATION WITH UNAFFILIATED THIRD PARTIES, EXCEPT AS DESCRIBED IN THIS POLICY, WE WILL GIVE AFFECTED CUSTOMERS AN OPPORTUNITY TO DIRECT THAT SUCH INFORMATION NOT BE DISCLOSED. 6) We may disclose personal health information with proper written authorization or as otherwise permitted or required by law. 7) We use manual and electronic security procedures to maintain the confidentiality and integrity of personal information in our possession and guard against its unauthorized access. Some techniques we employ to protect information include locked files, user authentication, encryption, firewall technology and the use of detection software. We are responsible for identifying information that must be protected, providing an adequate level of protection for that data and granting access to protected data only to individuals who must use it in the performance of their job-related duties. Employees who violate our Privacy Policy will be subject to disciplinary action, which may include termination. 8) We will continue to follow this policy regarding personal information even when a customer relationship no longer exists. The Hartford will notify customers of our Privacy Policy at the inception of our business relationship and annually thereafter. The Privacy Policy is subject to change at any time. We will notify customers of any modifications at least annually. ______________________________________ 106 _____________________________________ -----END PRIVACY-ENHANCED MESSAGE-----