N-30D 1 b40022hln-30d.txt HARTFORD LIFE 1 HARTFORD HLS MUTUAL FUNDS [HARTFORD LIFE LOGO] SEMI-ANNUAL REPORT JUNE 30, 2001 2 -------------------------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND -------------------------------------------------------------------------------- Portfolio Management Team MICHAEL A. TYLER, CFA Senior Vice President & Partner Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President & Partner Wellington Management Company, LLP SCOTT E. SIMPSON Senior Vice President & Partner Wellington Management Company, LLP DAVID NINCIC, CFA Assistant Vice President Wellington Management Company, LLP KRISTINA G. STAFF, CFA Assistant Vice President Wellington Management Company, LLP Performance Overview 12/27/2000 - 6/30/2001 Growth of a $10,000 Investment [CHART] Global Communications IA MSCI Broad Telecommunications 10000 10000 7709 8181 ============================================================= Returns (Inception 12/27/2000) Cumulative Returns as of June 30, 2001 SINCE INCEPTION Global Communications IA -22.91% MSCI Broad Telecommunications -18.19% ============================================================= The chart represents a hypothetical investment in the Hartford Global Communications HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 12/27/2001 would have been valued at $7,700 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Communications HLS Fund returned -22.9% for the six-month period ending June 30, 2001. The Fund underperformed its benchmark, the MSCI Broad Telecommunications Index, which returned -18.2% but outperformed the Lipper Telecommunications Average, which returned -23.7% over the period. Q. WHY DID THE FUND PERFORM THIS WAY? Telecom investors continued to suffer through yet another difficult period during the first half of 2001. Investors focused on weakening balance sheets, deteriorating earnings, and a large pending supply of new equity in the market. Because the Fund has been concentrated, in recent periods, on more defensive companies within the Telecom sector, its investment performance was satisfactory given the challenging context. Six months ago, many investors believed that the global economy would begin to regain momentum in the second half of 2001; we are now at that juncture, and it is clear that no such pickup is underway. Instead, we have entered a new round of profit warnings across many sectors of the economy, including the Communications sector. Investors are also aware of a large potential supply of new equity that may flood the public bourses. As companies unwind unsuccessful investments, they are unloading shares of their affiliates as quickly as they can; further government flotations and the IPOs of several wireless subsidiaries may exacerbate this problem. Top contributors to performance during this time period were China Unicom (Wireless), EchoStar Communications (Broadcasting) and Verizon (Regional Telephone). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We see countervailing forces at work on equity valuations. A trend toward lower interest rates is favorable, of course, but the Telecom industry excess capital investment still needs to be absorbed by growing demand. The industry may not return to investor grace quickly; for this reason, we are maintaining our large positions in some of the better defensive companies, but we are also beginning to buy some high-quality growth companies at exceptionally cheap valuations. We believe that the Communications industry's demand for growth remains healthy, that pricing is declining more slowly than unit cost, and that competition is vigorous but not punitive. Therefore, we maintain a positive outlook on the growth of the sector and continue to believe that this area will remain one of the most dynamic sectors of the global economy. 2 3 -------------------------------------------------------------------------------- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND -------------------------------------------------------------------------------- Portfolio Management Team MARK T. LYNCH, CFA Senior Vice President & Partner Wellington Management Company, LLP THEODORE SHASTA, CFA Senior Vice President & Partner Wellington Management Company, LLP MARK D. MANDEL, CFA Vice President Wellington Management Company, LLP ERIC HALET Vice President Wellington Management Company, LLP Performance Overview 12/27/2000 - 6/30/2001 Growth of a $10,000 Investment [CHART] Global Financial Services IA MSCI Finance 10000 10000 10015 9060 ========================================================================== Returns (Inception 12/27/2000) Cumulative Returns as of June 30, 2001 SINCE INCEPTION Global Financial Services IA 0.15% MSCI Finance ex Real Estate -9.40% ========================================================================== The chart represents a hypothetical investment in the Hartford Global Financial Services HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 12/27/2001 would have been valued at $10,005 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Financial Services HLS Fund returned 0.15% for the six-month period ending June 30, 2001. The Fund outperformed its benchmark, the MSCI Finance Ex-Real Estate Index, which returned -9.4%, but slightly under-performed its peer group, Lipper Financial Services Average, which returned 0.5% over the period. Q. WHY DID THE FUND PERFORM THIS WAY? The shift from rapidly rising interest rates to rapidly falling interest rates helped financial stocks rebound. Our bank investments have been focused on local, retail banks and specialty institutions rather than the capital markets banks due to our concern over loan quality and trading results of the global banks. Our insurance investments are comprised of companies that have excellent growth potential by virtue of their market position. Finally, the Fund's insurance investments are primarily in niche players who control their own distribution rather than the traditional insurance companies reliant on the agency system. Our preference for U.S., rather than European insurers, paid off due to a combination of a strong dollar and excellent stock selection. And yet again, our avoidance of the Japanese banks was justified. The slight under-performance of the Fund relative to its Lipper peer group is attributable to the global nature of the Fund's investment mandate as well as the strong dollar during this time period. Top contributors to performance during this time period were Clark/Bardes (Insurance), Bank of Bermuda (Bank) and Pacific Century (Bank). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We think that current prices do not adequately reflect the risk of a sustained downturn in both the global economy and capital markets. Such a downturn may not occur, but current prices assume that it cannot occur. Investments tend to be in mid-sized companies with strong ties to their clients rather than sprawling global enterprises. While lower rates and a steeper yield curve reduce the chance of a prolonged slowdown, they don't eliminate it entirely - as current stock prices suggest. As a result, we remain cautious and defensive in our stock selection for the Fund. 3 4 -------------------------------------------------------------------------------- HARTFORD GLOBAL HEALTH HLS FUND -------------------------------------------------------------------------------- Portfolio Management Team JOSEPH H. SCHWARTZ, CFA Senior Vice President and Partner Wellington Management Company, LLP ANN C. GALLO Vice President Wellington Management Company, LLP JEAN H. HYNES, CFA Senior Vice President and Partner Wellington Management Company, LLP KIRK J. MAYER, CFA Vice President Wellington Management Company, LLP Performance Overview 5/1/2000-6/30/2001 Growth of a $10,000 Investment [CHART] Global Health IA Goldman Sachs Health Care 10000 10000 10245 10332 11908 11456 14818 12887 14548 11026 ================================================================================ Returns (Inception 5/1/00) Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION Global Health IA 22.16% 37.98% Goldman Sachs Health Care -3.76% 8.74% ================================================================================ The chart represents a hypothetical investment in the Hartford Global Health HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 5/1/2000 would have been valued at $14,517 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Health HLS Fund returned -1.8% for the six-month period ending June 30, 2001. The Fund outperformed both its benchmarks, the Goldman Sachs Health Index, which returned -14.4% and the Lipper Health and Biotechnology Average, which returned -11.6% over the period. Q. WHY DID THE FUND PERFORM THIS WAY? A favorable regulatory and reimbursement environment in the U.S., resulting in strong procedure-driven volume and profit margin trends has been a driver of performance within the Health Care industry. The Fund's above benchmark weighting in medical devices, health care services, and genomics/life science instruments stocks were based on their strong underlying fundamentals and comparatively attractive valuations. Conversely, the Fund's below benchmark weighting in pharmaceutical and biotechnology stocks was a result of their relatively unattractive valuations, combined with our lingering concerns pertaining to the issue of Medicare coverage of prescription drugs in the U.S. Top contributors to performance during this time period were Genzyme (Biotechnology), Health Management (Health Care Services) and CV Therapeutics (Biotechnology). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Health Care is a natural, global growth sector, reflecting the clearly defined factors of aging demographics, technological innovation and geographic expansion. Short-term distortions due to foreign exchange movements are still the key challenge, but not sufficient to create any significant earnings disappointments in our opinion. Therefore, the Health Care sector's growth outlook, both near and long-term remains above average. Given attractive valuations for many individual stocks, we are still optimistic about investing here. 4 5 -------------------------------------------------------------------------------- HARTFORD GLOBAL TECHNOLOGY HLS FUND -------------------------------------------------------------------------------- Portfolio Management Team SCOTT E. SIMPSON Senior Vice President and Partner Wellington Management Company, LLP JOHN F. AVERILL, CFA Senior Vice President and Partner Wellington Management Company, LLP BRUCE L. GLAZER Assistant Vice President Wellington Management Company, LLP PAUL D. JACKSON Assistant Vice President Wellington Management Company, LLP ERIC STROMQUIST Senior Vice President and Partner Wellington Management Company, LLP ANITA M. KILLIAN Assistant Vice President Wellington Management Company, LLP Performance Overview 5/1/2000 - 6/30/2001 Growth of a $10,000 Investment [CHART] Global Technology IA Goldman Sachs Technology Index 10000 10000 10278 9860 6263 5802 5587 4815 ================================================================================ Returns (Inception 5/1/2000) Average Annual Returns as of June 30, 2001 1 Year SINCE INCEPTION Global Technology IA -45.64% -39.34% Goldman Sachs Technology -51.19% -46.57% ================================================================================ The chart represents a hypothetical investment in the Hartford Global Technology HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 5/1/2000 would have been valued at $5,576 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Technology HLS Fund returned -10.8% for the six-month period ending June 30, 2001. The Fund outperformed both its benchmark, the Goldman Sachs Technology Index, which returned -17.0% and the Lipper Science and Technology Average, which returned -25.9%, over the period. Q. WHY DID THE FUND PERFORM THIS WAY? Despite an aggressive U.S. Federal Reserve's efforts to jumpstart the U.S. economy through an easing monetary policy, company fundamentals continued to deteriorate and investor confidence declined. During the second quarter, software stocks helped fuel the slight rebound in Technology. Given our concerns about valuations, expectations and fundamentals, we managed the Fund in a conservative manner throughout the period. While our conservative position in the Fund continues to help us on a relative basis, the environment remains very challenging for Technology stocks. Top contributors to performance during this time period were Microsoft (Software), Dell (Hardware) and Lexmark (Hardware). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? During the seasonally weak summer quarter, we expect Technology fundamentals to settle into a pattern of "bumping along the bottom" with few signs of recovery. It appears to us that Technology stocks as a whole will remain in a trading range, reflecting the as-of-yet unresolvable tension between the market's desire to anticipate a cyclical bottom on one hand, and a dearth of good news on the other. The semiconductor industry is one area where the probable news-flow this summer will be significantly better than it was during the last quarter. As a result, we plan to eliminate the underweight in that industry as entry points rise for individual stocks. Looking forward, we remain positive on the long-term prospects of Technology companies and stocks, but believe it will take time to work off the cyclical excesses of the recent bubble. Given the degree to which the market has tried to anticipate a recovery, we believe that objective signs of fundamental improvement must appear before Technology as a whole can move significantly higher. 5 6 -------------------------------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND -------------------------------------------------------------------------------- Portfolio Manager [Edward Makin photo] EDWARD MAKIN Vice President Wellington Management Company, LLP Performance Overview 5/01/2001 - 6/30/2001 Growth of a $10,000 Investment [CHART] International Small Company IA SSB LESS THAN $2B EuroPacific 10000 10000 10356 10047 9781 9727 ================================================================================ Returns (Inception 5/1/00) Cumulative Returns as of June 30, 2001 SINCE INCEPTION International Small Company IA -2.19% Salomon Smith Barney less than $2B Euro Pacific -2.73% ================================================================================ The chart represents a hypothetical investment in the Hartford International Small Company HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 5/01/2001 would have been valued at $9,778 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford International Small Company HLS Fund returned -2.2% for the two-month period since inception ending June 30, 2001. The Fund outperformed its benchmark and its peer group for the period. The Salomon Smith Barney less than $2B Euro Pacific Index returned -2.7%, while the Lipper International Variable Annuity Average returned -6.3% and the Lipper International Small Cap Mutual Fund Average returned -4.7% for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? During this initial period, the Fund has established overweight positions relative to its benchmark in Health Care, Consumer Staples, and Technology and underweight positions in Financials and Materials. The Fund's performance thus far has been driven by the overweight positions in Health Care and Technology, as well as excellent stock selection within these sectors. Stocks in these sectors that have helped performance include OpenTV (British Virgin Islands), Kissei Pharmaceutical (Japan), and Towa Pharmaceutical (Japan). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? The last twelve months have seen the most synchronized global slowdown since 1974. Excess capacity and inventory were built up in many areas of Technology Software and Hardware, Telecommunications, and Media. Much of this excess has gone into relatively short-duration areas such as research and development, inventory and marketing. This means that given the right economic environment, these problems can be dealt with relatively quickly through inventory write-downs, reduced capital expenditure, and job losses in order to get corporations back to their equilibrium level. At the macro level, lower interest rates and taxes in the West, and reform and re-flation in the East will help to reflate companies and consumers and avoid a deep recession. The depressed valuations of many companies in the Technology, Media, Telecommunications, Financial Services and Materials sectors would argue that now is a good investment entry point from a long-term perspective in many of these industries. We shall be looking closely for opportunities to take advantage of these low prices where prospects show signs of improving. 6 7 -------------------------------------------------------------------------------- HARTFORD SMALL COMPANY HLS FUND -------------------------------------------------------------------------------- Portfolio Manager [Steven C. Angeli photo] STEVEN C. ANGELI, CFA Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 8/9/1996 - 6/30/2001 Growth of a $10,000 Investment [CHART] Small Company IA Russell 2000 10000 10000 10715 11148 12685 13641 14158 13293 23479 16119 20398 15632 18168 16717 ================================================================================ Returns Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION Small Company IA -25.33% 12.98% Russell 2000 0.66% 11.07% ================================================================================ 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 $18,010 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Small Company HLS Fund returned -10.9% for the six-month period ending June 30, 2001, under-performing the Lipper Small Cap VA-UF Average which provided a return of 1.3%, and the Russell 2000 Index which provided a return of 6.9% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? Although the Fund was underweight in Technology relative to its investment benchmark, we did not escape the general correction in tech stocks that occurred during the period. The Technology sector, as measured by the Goldman Sachs Technology Index, was down -16.9% through the first six months of the year. Under-performance by the Fund, particularly in the first few months of the period, was driven primarily by tech holdings, such as Aeroflex (optical components), Actuate (business reporting software) and Manugistics (supply chain software). Holdings in other sectors were disappointing during the latter half of the period. Examples of these holdings include Atlas Air (industrials), Capstone Turbine (industrials) and Callaway Golf (consumer discretionary). Further, the Fund was underweight in the Health Care sector, which provided positive returns in the second half of the period. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We believe cyclical stocks will benefit from a rebound in the economy in 2002, and as a result we will continue to emphasize Industrial holdings. In addition, we believe a tech rebound will take longer than some investors anticipate, and perhaps another 2 to 3 quarters will pass before we see improvement. We therefore continue to be highly selective among holdings in the Technology sector. 7 8 -------------------------------------------------------------------------------- Hartford International Capital Appreciation HLS Fund -------------------------------------------------------------------------------- Portfolio Manager ANDREW S. OFFIT Senior Vice President & Partner Wellington Management Company, LLP Performance Overview 5/01/2001 - 6/30/2001 Growth of a $10,000 Investment [CHART] International Capital Appreciation IA MSCI EAFE $10,000 $10,000 8,978 9,264 ========================================================== Returns (Inception 5/012/2001) Cumulative Returns As of June 30, 2001 SINCE INCEPTION international Capital Appreciation IA -10.22% MSCI EAFE -7.36% ========================================================== The chart represents a hypothetical investment in the Hartford International Capital Appreciation HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 5/01/2001 would have been valued at $8,975 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford International Capital Appreciation HLS Fund returned -10.22% for the two-month period ended June 30, 2001. The Fund trailed the MSCI EAFE Index which returned -7.36%, and the Lipper International VA-UF Average which returned -6.27% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? During the 2-month period since its inception, the Fund focused on theme and sector strategies, and continues to emphasize growth both in sectors and in individual companies. The Fund's performance trailed that of the benchmark primarily due to the large overweight in the weak Information Technology sector. Strong stock selection, especially in the Materials and Industrials sectors, helped to counteract some of the negative performance in the overweight sectors and contributed meaningfully to the performance of the Fund. We continue to believe that a successful strategy in 2001 is centered on stock picking and our sector strategy. Q. What is your outlook for the remainder of 2001? Economic weakness is now prevalent throughout the world's major economies. However, the signposts that a better environment will unfold later this year are accumulating. Aggressive monetary stimulus, easing liquidity conditions and imminent tax rebates in the U.S. should produce a stronger economy in the second half of 2001. Outside the U.S., we expect the marginal news flow on many economies to get worse in the near term. Industrial weakness is spreading in Europe and Japan, and technology demand is slowing sharply. European customers have been squeezed by high energy costs and accelerating food prices. We expect those negative pressures to gradually diminish, giving way to improve economic conditions later this year. The Fund should succeed and outperform over the long term, so long as we continue to identify the winning sectors and companies. 8 9 -------------------------------------------------------------------------------- Hartford Capital Appreciation HLS Fund -------------------------------------------------------------------------------- Portfolio Manager SAUL J. PANNELL, CFA Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] Capital Appreciation IA S&P 500 10000 10000 13721 12634 16050 13596 19389 14964 19873 15160 25885 20849 31243 25634 38150 34184 44113 44008 60714 53268 77159 49978 78309 46629 ======================================================== Returns Average Annual Returns as of June 30, 2001 1 Year 5 Year 10 Year Capital Appreciation IA 1.93% 19.33% 20.11% S&P 500 -14.83% 14.47% 15.10% ======================================================== 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 $76,844 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Capital Appreciation HLS Fund returned 1.5% for the six-month period ending June 30, 2001. The Fund's return exceeded the -6.70% return for the S&P 500 Index, and that of the Lipper VA-UF Capital Appreciation Average, which returned -10.7% 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: AOL Time Warner (Media), Microsoft (Software and Services), CSX (Transportation), Staples (Retail), Gilead Sciences (Health Care) and AT&T (Telecommunications Services). The Fund continues to be underweight in Finance securities relative to the index. The Fund remains significantly overweight in the Industrial sector, where names include Northrop Grumman, Waste Management, Foster Wheeler and Precision Castparts. Detractors from Fund's performance for the first half of the year included Immunex (Biotechnology), Exodus Communications (Software and Services), and NTL Incorporated (Telecommunication Services). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Our overall strategy for the Fund remains dual faceted: an emphasis on smaller companies with dynamic earnings growth prospects, and an opportunistic trading approach to larger-cap stocks where we typically see a catalyst for outperformance. We will continue to roam off the beaten path where we believe the most upside potential resides. This approach, if executed well, should provide positive absolute and relative results over a reasonable time frame. We cannot predict the course of the overall market from here but believe that the valuation parameters of the Fund itself are compelling. 9 10 -------------------------------------------------------------------------------- Hartford MidCap HLS Fund -------------------------------------------------------------------------------- Portfolio Manager PHILLIP H. PERELMUTER Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 7/15/1997 - 6/30/2001 Growth of a $10,000 Investment [CHART] MidCap IA S&P 400 10000 10000 10952 10982 11381 10001 14406 11826 21869 13567 26357 16367 ============================================ Returns Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION MidCap IA 1.29% 28.10% S&P 400 8.87% 16.08% ============================================ 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 $26,502 on 6/30/2001. Hartford MidCap HLS Fund was closed to new and subsequent premium payments along with transfers of contract value as of the close of the New York Stock Exchange on June 29, 2001. Q. HOW DID THE FUND PERFORM? Hartford MidCap HLS Fund returned -2.7% for the six-month period ending June 30, 2001. The Fund outperformed its competitive group as represented by the Lipper Mid Cap VA-UF Average, which provided a return of -6.8%. The Fund's investment benchmark, the S&P Midcap 400 Index, returned just 1.0% over the same period. Q. WHY DID THE FUND PERFORM THIS WAY? Midcap stocks, along with many other equity investments, were buffeted during the period by investor concerns over a slowing economy resulting in volatility in the Technology and other sectors. Although the Fund was underweight in technology relative to the S&P Midcap 400 Index early in the period, the six technology holdings owned in the Fund were down significantly. As the period progressed, we increased our weighting in technology and were rewarded when holdings such as Flextronics and Rational Software bounced back strongly after performing poorly in the first quarter. In addition, we moved to an underweight position in the energy sector, as we became increasingly concerned about fundamentals in the sector (such as falling oil and natural gas prices), while valuations remained high. Some of our top contributors to performance during the latter part of the period were concentrated in the health care holdings, such as Gilead Sciences, which benefited from good news on their fundamentals. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We have few large sector bets in the Portfolio, currently. Our largest overweights are in the Industrial and Commercial sectors. Aggressive monetary stimulus, easing liquidity conditions, and imminent tax rebates should produce a stronger U.S. economy in the second half of 2001. This environment should favor our holdings in the Industrial and Commercial sectors, which include several machinery, temporary help, and airline companies. 10 11 -------------------------------------------------------------------------------- Hartford MidCap Value HLS Fund -------------------------------------------------------------------------------- Portfolio Manager JAMES N. MORDY Senior Vice President & Partner Wellington Management Company, LLP Performance Overview 5/01/2001 - 6/30/01 Growth of a $10,000 Investment [CHART] MidCap Value IA Russell 2500 Value 10000 10000 10139 10408 ======================================== Returns (Inception 5/01/2001) Cumulative Returns as of June 30, 2001 SINCE INCEPTION MidCap Value IA 1.39% Russell 2500 Value 4.08% ======================================== The chart represents a hypothetical investment in the Hartford MidCap Value HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 5/01/2001 would have been valued at $10,136 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford MidCap Value HLS Fund returned 1.39% for the 2-month period since inception, ending June 30, 2001. The Fund's return trailed the Russell 2500 Value Index return of 4.08%, but exceed the Lipper Mid Cap VA-UF Average of 0.06% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? We are overweight in the more cyclical sectors of the market (Materials, Industrials and Consumer Discretionary sectors account for 49% of the Fund's equities), and underweight in defensive areas like Electric Utilities, REITs, Consumer Staples and Health Care. We reduced our Energy weighting to only 4% due to a weaker outlook for oil and gas prices and erosion in refining margins. We are somewhat overweight relative to the Midcap Value indices in Technology, as we were able to find some compelling values in names like Arrow Electronics, Axcelis Technologies and General Semiconductors. The performance of the Fund trailed that of the benchmark primarily due to the Fund's positioning. This was partly due to the timing of the Fund's inception, but more importantly due to a lack of any clear signs of an anticipated economic recovery (which would benefit both Cyclical and Technology sectors) and, in fact, evidence that the weakness was spreading overseas. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Monetary stimulus, easing liquidity conditions and imminent tax rebates will produce a stronger U.S. economy later this summer. Consumer spending remains resilient. The pace of decline in the manufacturing sector has started to ease. The major weak spot in the economy continues to be technology, where demand is falling and inventories are building. Declining corporate earnings will delay any recovery in business investment until next year. Inflation pressures are diminishing, helped by receding energy prices. However, we expect that the Federal Reserve may ease once or twice more to assure that the upcoming rebound in economic activity is a lasting one. The Fund should benefit from an anticipated economic recovery, which we believe should begin to appear more clearly later this year. 11 12 -------------------------------------------------------------------------------- Hartford International Opportunities HLS Fund -------------------------------------------------------------------------------- Portfolio Manager TROND SKRAMSTAD Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] International Opportunities IA MSCI EAFE GDP* 10000 10000 8824 8470 9971 9379 9529 8474 12744 11318 12496 12201 14237 13563 16075 14598 16130 15440 25530 25633 23986 25556 20239 22170 =============================================== Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR 10 YEAR. Int'l. Opp. IA -24.45% 3.46% 7.31% MSCI EAFE GDP* -24.13% 5.61% 8.28% =============================================== 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 $20,239 on 6/30/2001. * The Morgan Stanley Europe Australia Far East GDP-Net index. Q. HOW DID THE FUND PERFORM? Hartford International Opportunities HLS Fund returned -14.0% for the six-month period ended June 30, 2001. The Fund underperformed the MSCI EAFE GDP Net benchmark, but outperformed its peer group for the period. The MSCI EAFE GDP Net Index returned -13.25%, and the Lipper Variable Annuity International Average returned -14.3% over the past six months. Q. WHY DID THE FUND PERFORM THIS WAY? On balance, country allocation was roughly neutral for the period. Although the Fund's European and developed-Asia emphasis detracted from performance, its overweight in emerging markets, particularly Korea and Mexico, produced positive gains that served to help neutralize the negative results from the aforementioned allocations. The Fund's performance trailed that of the benchmark due primarily to its sector bets in the two worst performing sectors--Telecommunications and Technology. However, the Fund's strong stock selection helped to counteract the negative effect of overweights in these deteriorating sectors as stock picks in the Financials, Industrials and Materials, Technology and Telecommunications sectors all contributed meaningfully to the Fund's performance. In fact, the Consumer Discretionary sector was the only major area where the stock selection detracted meaningfully from Fund performance. The Fund's extensive success in picking stocks was likely a major contributor to its outperformance relative to the competitive peer groups. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Markets have been trading in a volatile pattern, and "visibility" regarding future business activity remains poor across the globe. Although we have seen some signs that the U.S. economy may be approaching a bottom for this cycle, non-U.S. economies appear to be lagging the U.S. by several months. Currently, in Europe, we are concerned that the economy is decelerating amidst sharply curtailed industrial production and slowing employment growth. However, in the near-term, we believe that cheap currencies and recent, relative underperformance make the European region attractive, most notably the U.K. The Japanese economy is likely heading into a period of substantial economic uncertainty, and looks unlikely to grow significantly while undergoing much needed restructuring. Continental Europe, with a competitive currency and a limited overhang from the recent bubble, remains attractive as it should recover quickly once the cycle comes back. In Asia Ex-Japan, we favor the emerging markets, especially Korea and Taiwan. 12 13 -------------------------------------------------------------------------------- Hartford Global Leaders HLS Fund -------------------------------------------------------------------------------- Portfolio Management RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP ANDREW S. OFFIT Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 10/1/1998 - 6/30/2001 Growth of a $10,000 Investment [CHART] Global Leaders IA MSCI World 10000 10000 11346 10967 12213 11587 13188 12115 14140 12547 14974 13146 14931 12951 19830 15136 20429 14751 16216 11741 =============================================== Returns Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION Global Leaders IA -20.63% 19.21% MSCI World -20.40% 6.01% =============================================== 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 $16,135 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Leaders HLS Fund returned -12.0% for the six-month period ending June 30, 2001. The Fund's return underperformed that of the Lipper VA-UF Global Average, which returned -10.2% and the MSCI World Benchmark, which returned -10.7% for the same time period. While the Fund underperformed in the first half of the year, longer-term performance remains favorable. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund clearly seeks returns above the MSCI World Benchmark on a consistent basis. But during this time period the Fund underperformed for two reasons. First, given the Fund's bias toward growth rather than value, we will tend to outperform by large amounts in up markets and, hopefully, underperform by lesser amounts in down markets. The volatility in the last six months, mostly on the downside, has taken its toll on relative performance. Second, the Fund's allocation to Telecommunications coupled with poor stock selection within this sector detracted from performance. Stock selection in Energy also hurt performance. As we pride ourselves on our stock selection ability, we were challenged by several underperforming stocks. The worst performers in the Fund included Pharmacia (Health Care), Nokia (Telecommunications Hardware), Deutshe Telekom (Telecommunications Services), Burlington Resources (Energy) and Reed Intl (Media). Strong stock selection within the Materials sector combined with the Fund's overweight helped performance; Alcoa and Alcan were top performers. Further, strong stock selection within Financials also helped performance. Although Technology was weak for much of the first half of the year, strong stock selection with holdings such as Microsoft, Micron Technology, Sema and Samsung contributed positively to performance. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Economic weakness is now prevalent throughout the world's major economies. However, the signposts that a better environment will unfold later this year are accumulating. The successful strategy in 2001 is centered on stock picking. As always, 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 HLS Fund. 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. 13 14 -------------------------------------------------------------------------------- Hartford Focus HLS Fund -------------------------------------------------------------------------------- Portfolio Manager Rand L. Alexander, CFA Senior Vice President & Partner Wellington Management Company, LLP Performance Overview 5/1/2001 - 6/30/2001 Growth of a $10,000 Investment [CHART] Focus IA S&P 500 10000 10000 9963 9822 ==================================== Returns (Inception 5/01/2001) Cumulative Returns as of June 30, 2001 SINCE INCEPTION Focus IA -0.37% S&P 500 -1.78% ==================================== The chart represents a hypothetical investment in the Hartford Focus HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 5/01/2001 would have been valued at $9,960 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Focus HLS Fund launched on May 1, 2001. The Fund returned -0.37% for the two-month period since its inception, ending June 30, 2001. The Fund outperformed its benchmark and its peer group for the period. The S&P 500 Index returned -1.78%; the Lipper Growth Variable Annuity Average returned -2.3% for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? This year's tug of war between falling earnings estimates and falling interest rates continued through May and June with falling estimates gaining enough momentum to pull the S&P 500 into negative territory. The Fund's return was also slightly negative, but exceeded the Index and peer group average. The Fund managed to outperform its peers and the Index during this period due in part to our ability to focus on our very best ideas. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? While May and June were difficult months to begin operations with the market showing continued volatility, we are optimistic that the Fund's holdings will perform well in an environment of declining interest rates and an eventual resurgence in economic growth. 14 15 -------------------------------------------------------------------------------- Hartford Stock HLS Fund -------------------------------------------------------------------------------- Portfolio Manager RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] Stock IA S&P 500 10000 10000 12000 12634 13206 13596 15098 14964 14813 15160 19864 20849 24705 25634 32458 34184 43322 44008 51810 53268 49978 50096 46168 46629 ============================================ Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR 10 YEAR Stock IA -13.50% 14.88% 14.97% S&P 500 -14.83% 14.47% 15.10% ============================================ 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 $45,303 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Stock HLS Fund returned -7.8% for the six-month period ending June 30, 2001. The Fund outperformed the Lipper VA-UF Gross Average, which returned -10.5%, but underperformed the S&P 500 Index, which returned -6.7% for the same time period. Q. WHY DID THE FUND PERFORM THIS WAY? The first six months of the year were challenging for the equity market as it experienced a tug of war between falling earnings estimates and falling interest rates. While equities managed to rally in the second quarter, they did not make up for the ground lost in the first quarter. Many of the Fund's top contributors for the first half of the year were found in the Information Technology sector, Microsoft, IBM, Dell and Oracle all contributed positively to overall performance. Media companies also performed well, with AOL Time Warner and AT&T Liberty Media both posting positive returns. Other top contributors for the period included Franklin Resources and Citigroup in the Financials sector. The most significant detractors from performance were found in the Information Technology sector, as Cisco, EMC Corporation, and Tellabs all fell significantly during the period. The Fund suffered in part due to overweight positions in the Health Care and Financials sectors, as well as the Fund's underweight towards the end of the period in Consumer Cyclicals. The Fund's large cap bias also hurt performance as investors favored smaller companies, which could feel the impact of an anticipated resurgence in economic growth more quickly. During the second quarter, we continued to move away from Consumer Staples towards more cyclical sectors of the market in anticipation of further Fed rate cuts and an eventual recovery in economic activity. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? While the last six months have been challenging, we continue to feel that the Portfolio is well positioned to respond to the environment that we envision over the next 6-12 months. By the end of the year there should be signs of better economic conditions due to aggressive Fed easing, a tax cut and falling energy prices. This should lead to improved equity market performance overall, and better relative performance by a Portfolio which has an overweight position in Technology, Industrials, Financials and Energy. 15 16 -------------------------------------------------------------------------------- Hartford Dividend and Growth HLS Fund -------------------------------------------------------------------------------- Portfolio Manager LAURIE A. GABRIEL, CFA Senior Vice President and Managing Partner Wellington Management Company, LLP Performance Overview 3/9/1994 - 6/30/2001 Growth of a $10,000 Investment [CHART] Dividend and Growth IA S&P 500 10000 10000 10188 10062 13894 12371 17076 17013 22521 22687 26219 29207 27634 35352 30661 32114 30229 29962 ============================================================ Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR SINCE INCEPTION Dividend and Growth IA 11.06% 14.45% 16.33% S&P 500 -14.83% 14.47% 16.18% ============================================================ The chart represents a hypothetical investment in the Hartford Dividend and Growth HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 3/9/1994 would have been valued at $29,834 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Dividend and Growth HLS Fund returned -1.4% for the six months ending June 30, 2001. During this period the Fund outperformed both its investment benchmark, the S&P 500 Index, and its competitive peer group, the Lipper Equity Income VA-UF Average, which returned -6.7% and -1.8%, respectively. Q. WHY DID THE FUND PERFORM THIS WAY? In line with our dividend-oriented value style, the Fund was underweight in the information technology sector throughout the period. This was a benefit early in the period given the volatility within this sector, although in the second quarter this positioning was a source of relative underperformance versus the overall market as many Information Technology names rebounded. The Financials sector, which was the largest sector in the Fund during much of the period, was a strong contributor to performance. Within this sector, Washington Mutual was among the best performers, in the latter half of the period. The company completed several acquisitions and announced plans to acquire Fleet Mortgage, making Washington Mutual the second largest residential mortgage loan servicer. We believe that these acquisitions will increase profits, scale and diversification for the large savings & loan company. Another positive contributor was Citigroup, which posted strong returns as the banking sector benefited from continued Federal Reserve rate cuts and a steepening yield curve. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Going forward, we expect the slowdown in the U.S. economy to reverse course later this year or early next year as lower short-term interest rates, declining inflation and impending tax rebates have a positive effect. In this environment the Fund should benefit given its value orientation, as value tends to do well in periods of economic re-acceleration. The Fund will continue to remain well diversified across major industry sectors, with a growing emphasis on more cyclically sensitive sectors such as Industrials and Materials, in the near term. 16 17 -------------------------------------------------------------------------------- Hartford Growth and Income HLS Fund -------------------------------------------------------------------------------- Portfolio Manager JAMES A. RULLO, CFA Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 5/29/1998 - 6/30/2001 Growth of a $10,000 Investment Growth and Income IA S&P 500 10000 10000 10406 10406 9619 9371 11905 11365 12415 11931 13373 12771 12540 11974 14503 13754 13684 12503 13353 11665 ====================================================== Returns Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION Growth and Income IA -9.46% 9.81% S&P 500 -14.83% 5.11% ====================================================== 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 $13,279 on 6/30/2001. Q. HOW DID THE FUND PERFORM? For the 6-month period ended June 30, 2001, the Hartford Growth and Income HLS Fund returned -2.42%. Despite negative absolute returns, the Fund exceeded the performance of the S&P 500 Index, -6.70% and the Lipper Growth and Income VA-UF average, -3.78% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? This was a strong 6-month period for the Hartford Growth and Income HLS Fund, driven by stock selection in Information Technology and Health Care. Only the Fund's utility holdings detract significantly from performance. The Fund's stock selection in the biotechnology industry contributed to the outperformance in the Health Care sector. A large, overweight position in Genzyme benefited the Fund as the company reported an impressive first quarter driven by strong sales of the end-stage renal disease drug, Renagel. The outlook for Renagel, and other successful drugs and pipeline products, continues to look impressive. Strong performers in the Information Technology sector included Microsoft, IBM and Dell. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We are confident that the outlook for the U.S. economy has improved considerably since the end of the first quarter. Due to aggressive monetary and fiscal stimulus, as well as benign inflation, we believe that the real Gross Domestic Product (GDP) growth will be 1.3% in 2001, and a stronger than consensus rebound of 4.0% in 2002. Since the beginning of the quarter, consensus 2001 operating profit estimates for the S&P 500 have declined closer to our estimate of -6% annual profit growth. Consensus 2001 profit estimates, despite the aggressive Fed action, have declined -11% year-to-date. Outside of the Technology sector, we anticipate improving conditions going into the second half of this year, setting the stage for a stronger economy in 2002 and 2003. This recovery will begin as a result of positive fiscal and monetary stimulus and will be fueled by: lower than expected inflation, a strong consumer, and rising corporate profits. Therefore, with an improving economic picture and more attractive valuations in many sectors, we have a positive outlook for the U.S. equity market. 17 18 -------------------------------------------------------------------------------- Hartford Value HLS Fund -------------------------------------------------------------------------------- Portfolio Manager JOHN R. RYAN, CFA Senior Vice President & Managing Partner Wellington Management Company, LLP Investment Team KAREN H. GRIMES, CFA Vice President Wellington Management Company, LLP STEVEN T. IRONS, CFA Vice President Wellington Management Company, LLP W. MICHAEL RECKMEYER, CFA Vice President Wellington Management Company, LLP Performance Overview 5/01/2001 - 6/30/2001 Growth of a $10,000 Investment [CHART] Value IA Russell 1000 Value 10000 10000 10070 9905 ======================================== Returns (Inception 5/01/2001) Cumulative Returns as of June 30, 2001 SINCE INCEPTION Value IA 0.70% Russell 1000 Value -0.95% ======================================== The chart represents a hypothetical investment in the Hartford Value HLS Fund. (Returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in Class IB shares at the Fund's inception of 5/01/2001 would have been valued at $10,067 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Value HLS Fund launched on May 1, 2001. In the two months the Fund has been in operation it has provided a total return of 0.7%, outperforming its investment benchmark, the Russell 1000 Value Index, which provided a return of -0.95% for the same period. Q. WHY DID THE FUND PERFORM THIS WAY? We have experienced a broadening of the upturn in equity markets, led by small and mid-cap stocks. While the equity markets are not cheap, they have become more reasonably priced, and we continue to find good investment ideas. Our strategy for the Fund is to concentrate on undervalued companies whose price-to-earnings ratios have room to expand. As a whole, the Portfolio will have a price-earnings ratio that is at a discount to the market. Our strategy results in a Portfolio yield that is usually above the market. We identify financially strong companies that tend to be overlooked and frequently are underanalyzed by other investors. We pursue capital growth as a by-product of our value/yield strategy and generally strive to have a fully invested portfolio. Our largest contributors to performance in the two-month period included Dollar General (Consumer Discretionary), Citigroup (Financials), and McLeodU.S.A (Telecommunications). Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? At the end of the second quarter, the U.S. economic environment is at a crossroads. On the one hand, we face several negative factors, including a slowing industrial sector, a recession in corporate profits, and a bursting of the technology bubble. On the other hand, several positives, including an accommodative Fed, lower tax rates, and cheaper energy costs should bolster the consumer and should contribute to an improving economic picture in 2002. Because of these positives, we consider the probability of a prolonged recession to be low. While current conditions remain bleak, recent data suggest that the economic slowdown may be bottoming, and there is a strong likelihood that by the third quarter the U.S. economy can begin to reaccelerate. 18 19 -------------------------------------------------------------------------------- Hartford Global Advisers HLS Fund (formerly Hartford International Advisers HLS Fund) -------------------------------------------------------------------------------- Portfolio Managers ROBERT EVANS Senior Vice President and Partner Wellington Management Company, LLP TROND SKRAMSTAD Senior Vice President and Partner Wellington Management Company, LLP ========================================================== Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR SINCE INCEPTION Global Advisers IA -9.73% 6.71% 8.69% MSCI EAFE-GDP -24.13% 5.61% 7.50% MSCI World -20.00% 8.55% 11.23% Salomon World Govt. Bond 8.69% 9.25% 10.27% Lehman Brothers Aggregate Bond USD Hgd 11.23% 7.48% 7.78% ========================================================== Performance Overview Hartford Global Advisers HLS Fund and Former Benchmarks 3/1/1995 - 6/30/2001 Growth of a $10,000 Investment [CHART] Salomon World Government Global Advisers IA MSCI EAFE-GDP Bond ex U.S. Index 10000 10000 10000 11584 11421 11378 12950 12292 11842 13665 13002 11338 15489 16475 13355 19077 21585 12678 17812 18233 12344 16953 15817 18588 Performance Overview Hartford Global Advisers HLS Fund and New Benchmarks 3/1/1995 - 6/30/2001 Growth of a $10,000 Investment [CHART] Lehman Brothers Aggregate Global Advisers IA MSCI World Bond USD Hgd 10000 10000 10000 11584 11421 11378 12950 12292 11842 13665 13002 11338 15489 16475 13355 19077 21585 12678 17812 18233 12344 16953 19631 16077 The charts represent a hypothetical investment in the Hartford Global Advisers HLS Fund. (The annualized returns include the Fund level expenses, but exclude the insurance charges). Past performance does not guarantee future results. The value of the contract will fluctuate so that when redeemed, it may be worth more or less than the original investment. A $10,000 investment in the Class IB shares at the Fund's inception of 3/1/1995 would have been valued at $16,761 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Global Advisers HLS Fund's investment strategy began its global focus effective May 1, 2001. At that time, the Fund's strategy changed from non-U.S. to global, thereby allowing the Fund's fixed income and equity portfolios more flexibility to include U.S. investments. For the six-month period ended June 30, 2001, the Fund's net return was -4.8%, which compares favorably to the -6.0% return of the Lipper Global Flexible Variable Annuity Average, but is slightly lower than the -4.3% return of the Composite Index. The Composite Index is comprised of non-U.S. fixed income and equity indices for the first four months of the period, and global indices for the last two months in order to replicate the Fund's investment focus for the corresponding time periods. It is also worth noting that the Fund's returns compare very favorably to the -10.4% return of the all-equity MSCI World Index (in U.S. dollars). Q. WHY DID THE FUND PERFORM THIS WAY? The global equity markets have been declining for most of the past year as a result of concerns regarding disappearing U.S. corporate profits and deteriorating economic growth globally. After four consecutive quarters of falling returns, the global equity markets advanced during the second quarter of 2001, but this advance only modestly muted the sharply negative returns realized in the first quarter. The Fund's equity portfolio declined 11.0% over the first six months of 2001, and slightly underperformed the MSCI World Index due in large part to unfavorable stock selection in the consumer discretionary sector. The Fund's fixed income portfolio performed very well during the period, benefiting from favorable interest rate positioning and strong security selection within the U.S. The fixed income portfolio gained 3.6% during the period thereby exceeding the return of its benchmark and exceeding the return of the MSCI World Index. The fixed income portfolio significantly muted the negative return of the Fund and allowed the Fund to outperform the vast majority of all-equity global funds. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? We are expecting the global economy to improve. Accordingly, in the equity portfolio we are emphasizing areas that are well-poised to benefit from this resurgence--notably the Materials, Industrials and Technology sectors. We are also positioning the fixed income portfolio to benefit from renewed economic growth that is expected to follow the stimulative monetary and fiscal policies that are being implemented in North America, Europe, and Asia. 19 20 -------------------------------------------------------------------------------- Hartford Advisers HLS Fund -------------------------------------------------------------------------------- Portfolio Managers RAND L. ALEXANDER, CFA Senior Vice President and Partner Wellington Management Company, LLP PAUL D. KAPLAN Senior Vice President and Partner Wellington Management Company, LLP Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] Advisers IA S&P 500 Lehman Govt./Corp. Bond 10000 10000 10000 12185 12634 12575 13196 13596 13528 14812 14964 15020 14407 15160 14493 18489 20849 17281 21562 25634 17782 26820 34184 19520 33460 44008 21369 37015 53268 20909 36282 49978 21598 34950 46629 22356 ===================================================== Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR 10 YEAR Advisers IA -4.88% 12.39% 12.29% S&P 500 -14.83% 14.47% 15.10% Lehman Govt./Corp. Bond 11.13% 7.38% 7.93% ===================================================== 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 $34,295 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Advisers Fund returned -3.7% for the six-month period ending June 30, 2001. For this period, the Fund underperformed its benchmark and peer group. The Composite Index returned -2.1%, and the Lipper Flexible Variable Annuity Average returned -2.9%. Q. WHY DID THE FUND PERFORM THIS WAY? The tug of war between falling earnings estimates and falling interest rates during the past six months was also accompanied by falling stock prices. The equity portion of the Fund suffered modestly from its overweight in Health Care. Its large cap bias also hurt performance during the period as investors favored smaller companies that could feel the impact of an anticipated resurgence in economic growth more quickly. The Fund's underweight in Technology as well as its strong stock selection in this sector were positive contributors to performance. Additionally, a shift in allocation from the Consumer Staples sector into more cyclical sectors benefited the Fund and helped to position it for an eventual recovery in economic activity. The fixed income component of the Fund was significantly overweight in Corporate and Mortgage Securities, and these sector bets were instrumental in producing a fixed income return that exceeded that of its benchmark index. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Although this period was a difficult one in terms of performance, we believe that the equity portfolio is well positioned for the next 6-12 months. It is likely that the Federal Reserve's easing cycle is nearing an end. The Fed has lowered the Fed Funds Rate by 275 basis points this year and that, combined with a tax cut and lower energy prices, should be nearly sufficient to get the U.S. economy on a growth path again. An economic recovery should lead to better equity performance overall and better relative performance by a portfolio which is overweight in Technology, Industrial and Commercial, Financials and Energy. Better economic times will ultimately mean that equities should be favored over bonds and that shorter duration bonds should be favored over longer duration bonds. 20 21 -------------------------------------------------------------------------------- Hartford High Yield HLS Fund -------------------------------------------------------------------------------- Portfolio Manager ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company Performance Overview 10/1/1998 - 6/30/2001 Growth of a $10,000 Investment [CHART] High Yield IA Lehman High Yield Corporate 10000 10000 9982 9795 10329 10201 10358 10212 10684 10401 10692 10436 10588 10288 10845 10456 10968 9844 11017 10231 ================================================ Returns Average Annual Returns as of June 30, 2001 1 YEAR SINCE INCEPTION High Yield IA 1.64% 3.59% Lehman High Yield Corporate -0.96% 0.83% ================================================ 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 $10,964 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford High Yield HLS Fund returned 0.45% for the six-month period ending June 30, 2001. For this period, the Fund underperformed its benchmark and peer group. The Lehman High Yield Corporate Bond Index returned 3.93%, while the Lipper High Current Yield Variable Annuity Underlying Fund Universe returned 1.10%. This performance positioned the Fund in the 68th percentile of its Lipper peer group. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's overweight to the higher quality segments of the high yield marketplace continues to benefit its performance as the technology and telecommunications-laden B and CCC rating categories produced losses of 4.65% and 7.78%, respectively, while the BB portion of the market returned 2.31%. However, the Fund's increased exposure to the wireline sector proved premature as prices remain under pressure. Many issuers within this sector are currently yielding in excess of 25% as the market struggles to determine which companies will survive. Finally, the fund's underweight to retailers and gaming issuers was a negative as the consumer continues to spend despite the weakening employment picture and economic slowdown Q. What is your outlook for the remainder of 2001? While the default rate remains historically high, the more forward looking Distress Ratio appears to be signaling that we may be experiencing the worst of the default activity currently. Consequently, we believe that yields offered in the telecommunications sector compensate the investor for the increased risk of default now evident. Therefore we will continue to carefully navigate our way through these difficult waters, adding to those issuers with solid business plans and strong equity sponsors. Secondly, we remain cautious on consumer-sensitive sectors including retailers, consumer products and financial institutions given the weakening employment picture and the reduced household wealth effect. Such issuers can be expected to perform poorly as a slowdown in consumer spending appears highly likely. Finally, security prices in commodity related sectors such as chemicals, metals and paper are beginning to look attractive. The marketplace is punishing such issuers for weakening financial profiles as the global slowdown takes effect. We are attempting to identify those companies able to survive should such global weakness persist. 21 22 -------------------------------------------------------------------------------- Hartford Bond HLS Fund -------------------------------------------------------------------------------- Portfolio Manager ALISON D. GRANGER, CFA Senior Vice President Hartford Investment Management Company Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] Bond IA Lehman Aggregate Bond 10000 10000 12620 12575 13318 13528 14681 15020 14102 14493 16709 17281 17304 17782 19269 19520 20851 21369 20424 20909 21097 21598 21825 22281 ============================================= Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR 10 YEAR Bond IA 10.53% 7.58% 7.71% Lehman Aggregate Bond 11.23% 7.48% 7.87% ============================================= 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 $21,416 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Bond HLS Fund returned 3.45% for the six-month period ending June 30, 2001. For this period, the Fund underperformed its benchmark and peer group. The Lehman Aggregate Bond Index returned 3.62%, while the Lipper Corporate Debt "BBB" Variable Annuity Underlying Fund Universe returned 3.66%. This performance positioned the Fund in the 55th percentile of its Lipper peer group. Q. WHY DID THE FUND PERFORM THIS WAY? The Fund's overweighted position to long-maturity investment-grade corporate bonds performed well during the quarter. Financials, European telecommunications, and some technology issuers' long maturities produced particularly good returns. Many of these securities had lagged other fixed income instruments over the past twelve months. Second, profits were taken fully in the Fund's Treasury-Inflation-Protected Securities. These issues produced outperformance relative to the Lehman Aggregate both year-to-date and for the past twelve months. The Fund's small positions held in foreign-denominated securities produced a drag on portfolio performance, as the dollar strengthened. Also, the Fund's holdings in Treasuries and agencies generally underperformed corporates and mortgages during the quarter. These issues performed well during most of the year 2000. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? Looking ahead, we believe that the relative performance of mortgages is likely to be more positive over the upcoming months. Because of this view, we increased the mortgage passthrough position of the portfolio during the quarter. This sector of the fixed income market significantly underperformed corporate bond issues during the first two quarters. Treasuries and agencies represent approximately 24% of the Fund. Holdings are concentrated around five year maturities, due to our expectation that the yield curve will continue to steepen. Corporate issues represent approximately 45% of the Fund's assets. We have reduced the average maturity of these holdings from long- to intermediate term, as we took profits in long issues. 22 23 -------------------------------------------------------------------------------- Hartford Mortgage Securities HLS Fund -------------------------------------------------------------------------------- Portfolio Manager PETER PERROTTI Vice President Hartford Investment Management Company Performance Overview 12/31/1990 - 6/30/2001 Growth of a $10,000 Investment [CHART] Mortgage Lehman Mortgage Securities IA Backed Securities 10000 10000 12584 12813 13168 13704 13998 14642 13773 14406 16000 16826 16799 17726 18307 19409 19549 20764 19864 21150 19967 21228 20612 22031 ============================================= Returns Average Annual Returns as of June 30, 2001 1 YEAR 5 YEAR 10 YEAR Mortgage Securities IA 10.15% 7.15% 7.04% Lehman Mortgage Backed Securities 11.28% 7.64% 7.69% ============================================= 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 $20,225 on 6/30/2001. Q. HOW DID THE FUND PERFORM? Hartford Mortgage Securities HLS Fund returned 3.23% for the six-month period ending June 30, 2001. The Fund underperformed its benchmark and peer group for this period. The Lehman Mortgage Backed Securities Index returned 3.78%, and the Lipper U.S. Mortgage Variable Annuity Underlying Fund Universe returned 3.46%. This performance positioned the fund in the 43rd percentile of its Lipper peer group for the first half of the year. Q. WHY DID THE FUND PERFORM THIS WAY? The focus of the market the year has been the economic slowdown and the aggressive Fed easing. The economic downturn has been led by a decrease in capital expenditures by corporations, with the manufacturing sector being hit the hardest. The consumer, however, has been surprisingly robust with the sales of homes and autos remaining relatively high. The Federal Reserve has reacted by lowering short-term rates by 275 basis points this year. The Fed move has lead to a dramatic steepening of the yield curve. The two-year treasury yield has dropped by almost 100 basis points to 4.24%, while the ten-year treasury yield has actually risen by 30 basis points to 5.40%. The steeper curve has helped premium coupons outperform the discounts as the drop in short-term rates more than offset the rise in prepayments. Q. WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 2001? The environment has been good for fixed income assets in general. Mortgages securities have slightly outperformed comparable duration treasuries, and provide a balance return profile for the balance of 2001. Although prepayments remain high, mortgage rates are off their lows. The steep curve has brought increased demand from banks. Inflation appears to be under control, therefore, it is unlikely that rates will move significantly higher in the near future. The market is pricing in an economic upturn, as evidenced by the shape of the yield curve. Mortgages offer a good yield pick up versus treasuries, and should perform well for the remainder of the year. However, within the mortgage market, the value dynamics have changed. Higher coupon mortgages have been the best performers year to date and will continue to do well in the current yield curve environment. However, in either a recovery or another downturn, premiums are likely to underperform discounts. We are reducing the exposure to premiums in favor of discount coupons. We are leaving the duration slightly long as it helps increase the funds overall yield. 23 24 -------------------------------------------------------------------------------- TABLE OF CONTENTS -------------------------------------------------------------------------------- Manager Discussions 2 Hartford HLS Mutual Funds Financial Statements: Statement of Net Assets or Statement of Assets and Liabilities as of June 30, 2001: Hartford Global Communications HLS Fund 24 Hartford Global Financial Services HLS Fund 25 Hartford Global Health HLS Fund 26 Hartford Global Technology HLS Fund 28 Hartford International Small Company HLS Fund 30 Hartford Small Company HLS Fund, Inc. 33 Hartford International Capital Appreciation HLS Fund 36 Hartford Capital Appreciation HLS Fund, Inc. 38 Hartford MidCap HLS Fund, Inc. 41 Hartford MidCap Value HLS Fund 43 Hartford International Opportunities HLS Fund, Inc. 45 Hartford Global Leaders HLS Fund 49 Hartford Focus HLS Fund 52 Hartford Stock HLS Fund, Inc. 53 Hartford Value HLS Fund 55 Hartford Growth and Income HLS Fund 57 Hartford Dividend and Growth HLS Fund, Inc. 59 Hartford Index HLS Fund, Inc. 61 Hartford Global Advisers HLS Fund, Inc. (formerly Hartford International Advisers HLS Fund,Inc.) 67 Hartford Advisers HLS Fund, Inc. 74 Hartford High Yield HLS Fund 80 Hartford Bond HLS Fund, Inc. 86 Hartford Mortgage Securities HLS Fund, Inc. 90 Hartford Money Market HLS Fund, Inc. 92 Statements of Operations for the Period Ended June 30, 2001 94 Statements of Changes in Net Assets for the Period Ended June 30, 2001 98 Statements of Changes in Net Assets for the Year Period December 31, 2000 102 Notes to Financial Statements 106 Financial Highlights 126 Privacy Policy 136 Contract owners should refer to the prospectus provided to them at the time of purchase of their contract for a description of investment alternatives available in the Separate Accounts. This prospectus, along with the financial information contained in this report, provides them with complete and up-to-date financial information regarding the Separate Account. This report is prepared for the general information of contract owners and is not an offer of contracts. It should not be used in connection with any offer, except in conjunction with the appropriate prospectus which contains all pertinent information including the applicable sales, administrative and other charges. 25 -------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND -------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 94.3% COMMUNICATIONS -- 84.7% 3 ALLTEL Corp. ........................... $ 184 *6 AT&T Canada, Inc., Class B.............. 181 19 AT&T Corp. ............................. 418 *10 AT&T Wireless Group..................... 164 9 BCE, Inc. .............................. 224 6 BellSouth Corp. ........................ 242 54 British Telecommunications PLC.......... 338 5 Broadwing, Inc. ........................ 122 *20 COLT Telecom Group PLC.................. 135 18 Deutsche Telekom AG..................... 408 4 France Telecom S.A. .................... 191 *26 Global Crossing Ltd. ................... 220 14 Korea Telecom Corp., ADR................ 299 15 Motorola, Inc. ......................... 248 *26 NEXTEL Communications, Inc., Class A................................ 446 *14 Nextel Partners, Inc. .................. 217 *25 Orange S.A. ............................ 203 13 Qwest Communications International...... 408 10 SBC Communications, Inc. ............... 401 *9 Sonus Networks, Inc. ................... 210 65 Telecom Corp. of New Zealand............ 147 40 Telecom Italia S.p.A.................... 359 *3 TeleCommunication Systems, Inc. ........ 10 7 Telefonica S.A., ADR.................... 252 6 Telus Corp. ............................ 130 9 Verizon Communications, Inc. ........... 480 *21 WorldCom, Inc. ......................... 301 ------- 6,938 ------- MEDIA & ENTERTAINMENT -- 4.3% *6 Comcast Corp., Class A.................. 269 #0 NTT DoCoMo, Inc. ....................... 87 ------- 356 ------- SOFTWARE & SERVICES -- 5.3% *11 China Unicom Ltd., ADR.................. 195 16 Magyar Tavkozlesi Rt., ADR.............. 239 ------- 434 ------- Total common stocks (cost $8,638)....... $ 7,728 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 9.0% REPURCHASE AGREEMENT -- 9.0% $739 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.............. $ 739 ------- Total short-term securities (cost $739)................................. $ 739 ======= MARKET VALUE ------ STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $9,377) -- see accompanying portfolio............. $ 8,467 Receivable for securities sold...................... 999 Receivable for Fund shares sold..................... 12 Receivable for dividends and interest............... 19 Cash and other assets............................... 3 ------- Total assets........................................ 9,500 ------- LIABILITIES Payable for securities purchased.................... 1,301 Dividends payable................................... 7 ------- Total liabilities................................... 1,308 ------- Net assets.......................................... $ 8,192 ======= SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 10,637 shares outstanding....................................... $ 11 Capital surplus..................................... 10,517 Accumulated undistributed net investment income............................................ 18 Accumulated net realized loss on investments........ (1,444) Unrealized depreciation of investments.............. (910) ------- Net assets.......................................... $ 8,192 ======= Class IA Net asset value per share ($7,272 (divided by) 9,442 shares outstanding) (600,000 shares authorized)....................................... $0.77 ===== Class IB Net asset value per share ($920 (divided by) 1,195 shares outstanding) (200,000 shares authorized)... $0.77 =====
* Non-income producing during the period. # Due to the presentation of the financial statements in thousands, the number of shares round to zero. The accompanying notes are an integral part of this financial statement. 24 26 ------------------------------------------------------------ HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 96.6% BANKS -- 35.9% 26 Allied Irish Banks PLC................ $ 288 40 Australia & New Zealand Banking Group................................ 342 54 Banca Monte Dei Paschi................ 168 50 Banca Nazional Del Lavor.............. 157 9 Banco Latinoamericano de Exportaciones S.A., E Shares....................... 331 9 Banco Popular Espanol S.A. ........... 311 *17 Bank of Bermuda Ltd. ................. 870 2 Fannie Mae............................ 179 3 Freddie Mac........................... 196 7 KBC Bancassurance Holding N.V......... 256 12 Morgan (J.P.) Chase & Co., Inc. ...... 526 19 Pacific Century Financial Corp. ...... 482 ------- 4,106 ------- FINANCIAL SERVICES -- 30.4% 22 Abbey National PLC.................... 385 16 Barclays PLC.......................... 478 15 CGNU PLC.............................. 203 9 Citigroup, Inc. ...................... 470 19 Dexia................................. 299 *3 Investment Technology Group, ......... 161 13 Manulife Financial Corp., ADR......... 366 3 Merrill Lynch & Co., Inc. ............ 154 #0 Mitsubishi Tokyo Financial Group, Inc. ................................ 183 22 Nikko Securities Co., Ltd. (The)...... 176 2 Promise Co., Ltd. .................... 124 39 Skandinaviska Enskilda, A Shares...... 368 1 Takefuji Corp. ....................... 109 ------- 3,476 ------- INSURANCE -- 30.3% 8 Ace Ltd. ............................. 324 7 Aegon N.V. ........................... 194 7 AMBAC Financial Group, Inc. .......... 413 4 American International Group, Inc. ... 378 13 Annuity & Life Re (Holdings), Ltd. ... 472 8 Cincinnati Financial Corp. ........... 328 *13 Clark/Bardes, Inc. ................... 287 58 Lloyds TSB Group PLC.................. 580 3 Marsh & McLennan Cos., Inc. .......... 343 4 Reinsurance Group of America, ........ 144 ------- 3,463 ------- Total common stocks................... $11,045 ======= PRINCIPAL MARKET AMOUNT VALUE --------- ------ SHORT-TERM SECURITIES -- 3.3% REPURCHASE AGREEMENT -- 3.3% $375 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............ $ 375 ------- Total short-term securities........... $ 375 ======= DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $10,897)........ 96.6% $11,045 Total short-term securities (cost $375)................................... 3.3 375 ----- ------- Total investment in securities (total cost $11,272)........................... 99.9 11,420 Cash, receivables and other assets........ 1.5 169 Payable for securities purchased.......... (1.3) (143) Dividends payable......................... (0.1) (7) ----- ------- Net assets................................ 100.0% $11,439 ===== ======= SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 11,430 shares outstanding................................... $ 11 Capital surplus................................. 11,413 Accumulated undistributed net investment income........................................ 60 Accumulated net realized loss on investments.... (194) Unrealized appreciation of investments.......... 148 Unrealized appreciation of other assets and liabilities in foreign currencies............. 1 ------- Net assets...................................... $11,439 ======= Class IA Net asset value per share ($10,005 (divided by) 9,996 shares outstanding) (600,000 shares authorized)..................................... $1.00 ===== Class IB Net asset value per share ($1,434 (divided by) 1,434 shares outstanding) (200,000 shares authorized)..................................... $1.00 =====
* Non-income producing during the period. # Due to the presentation of the financial statements in thousands, the number of shares round to zero. The accompanying notes are an integral part of this financial statement. 25 27 ------------------------------------------------------------ HARTFORD GLOBAL HEALTH HLS FUND ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 97.4% CHEMICALS -- 3.3% ++74 Aventis S.A., ADR.................... $ 5,912 *++18 Syngenta AG, ADR..................... 199 -------- 6,111 -------- CONSUMER NON-DURABLES -- 4.8% 61 Cardinal Health, Inc. ............... 4,202 125 McKesson HBOC, Inc. ................. 4,621 -------- 8,823 -------- DRUGS -- 50.8% 211 Abbott Laboratories.................. 10,111 *++32 Alkermes, Inc. ...................... 1,123 88 American Home Products Corp. ........ 5,149 177 AstraZeneca Group PLC, ADR........... 8,265 *++142 Axys Pharmaceuticals, Inc. .......... 597 90 Banyu Pharmaceutical Co. ............ 1,649 110 Bristol-Myers Squibb Co. ............ 5,758 *54 Connetics Corp. ..................... 408 78 Eli Lilly & Co. ..................... 5,757 *41 Forest Laboratories, Inc. ........... 2,939 167 Fujisawa Pharmaceutical.............. 3,776 *38 Genaera Corp. ....................... 183 *++69 Genzyme Corp. ....................... 4,233 *44 Gilead Sciences, Inc. ............... 2,560 73 GlaxoSmithKline PLC, ADR............. 4,107 *357 Immunex Corp. ....................... 6,330 *++69 Medicines Co. (The).................. 1,422 ++61 Nycomed Amersham PLC, ADR............ 2,234 *55 Oxford Glycosciences PLC............. 851 264 Pharmacia Corp. ..................... 12,122 43 Roche Holdings AG.................... 3,098 *++46 SangStat Medical Corp. .............. 747 121 Schering-Plough Corp. ............... 4,381 *++61 Triangle Pharmaceuticals, Inc. ...... 287 *104 Versicor, Inc. ...................... 1,305 *++33 Vertex Pharmaceuticals, Inc. ........ 1,648 *++45 ViroPharma, Inc. .................... 1,540 -------- 92,580 -------- ELECTRICAL EQUIPMENT -- 1.7% *++63 Molecular Devices Corp. ............. 1,267 *86 Thermo Electron Corp. ............... 1,883 -------- 3,150 -------- HEALTH SERVICES -- 7.9% *201 Aclara Biosciences, Inc. ............ 1,558 82 HCA -- The Healthcare Co. ........... 3,688 *191 Health Management Associates, Inc., Class A............................. 4,010 3 Serono S.A., Class B................. 2,880 *44 Tenet Healthcare Corp. .............. 2,285 -------- 14,421 -------- MARKET SHARES VALUE --------- -------- INSURANCE -- 1.0% 9 CIGNA Corp. ......................... $ 843 *++62 Health Net, Inc. .................... 1,070 -------- 1,913 -------- MACHINERY -- 1.4% 109 Pall Corp. .......................... 2,567 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 14.3% 39 Bausch & Lomb, Inc. ................. 1,399 85 Baxter International, Inc. .......... 4,155 98 Beckman Coulter, Inc. ............... 4,007 114 Becton, Dickinson & Co. ............. 4,087 164 Eisai Co., Ltd. ..................... 3,675 619 Gambro AB, B Shares.................. 3,753 213 Smith & Nephew PLC................... 1,101 *64 St. Jude Medical, Inc. .............. 3,858 -------- 26,035 -------- RESEARCH & TESTING FACILITIES -- 9.0% *212 Argonaut Technologies, Inc. ......... 1,103 *++4 Cephalon, Inc. ...................... 289 *++181 Ciphergen Biosystems, Inc. .......... 1,223 *++54 CV Therapeutics, Inc. ............... 3,067 *++128 Exelixis, Inc. ...................... 2,428 *67 Gene Logic, Inc. .................... 1,452 36 Monsanto Co. ........................ 1,332 *++210 Orchid Biosciences, Inc. ............ 1,610 *++113 Regeneron Pharmeceuticals, Inc. ..... 3,922 -------- 16,426 -------- RETAIL -- 1.0% 48 CVS Corp. ........................... 1,868 -------- SOFTWARE & SERVICES -- 2.2% *++200 Genomica Corp. ...................... 861 96 IMS Health, Inc. .................... 2,725 *52 WebMD Corp. ......................... 365 -------- 3,951 -------- Total common stocks.................. $177,845 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 3.5% REPURCHASE AGREEMENT -- 3.5% $6,374 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01........... $ 6,374 -------- Total short-term securities.......... $ 6,374 ========
The accompanying notes are an integral part of this financial statement. 26 28 -----------------------------------------------------------
MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $166,562)..... 97.4% $177,845 Total short-term securities (cost $6,374)............................... 3.5 6,374 ----- -------- Total investment in securities (total cost $172,936)........................ 100.9 184,219 Cash, receivables and other assets...... 0.6 1,123 Securities lending collateral (See Note 2(i))................................. 11.0 20,093 Payable for securities purchased........ (1.5) (2,637) Payable for Fund shares redeemed........ (0.0) (77) Securities lending collateral payable to brokers (See Note 2(i))............... (11.0) (20,093) ----- -------- Net assets.............................. 100.0% $182,628 ===== ======== MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 129,012 shares outstanding.................................. $ 129 Capital surplus................................ 166,396 Accumulated undistributed net investment income....................................... 133 Accumulated undistributed net realized gain on investments.................................. 4,687 Unrealized appreciation of investments......... 11,283 Unrealized depreciation of forward foreign currency contracts (See Note 2(g))!.......... (1) Unrealized appreciation of other assets and liabilities in foreign currencies............ 1 -------- Net assets..................................... $182,628 ======== Class IA Net asset value per share ($159,585 (divided by) 112,710 shares outstanding) (600,000 shares authorized)..................................... $1.42 ===== Class IB Net asset value per share ($23,043 (divided by) 16,302 shares outstanding) (200,000 shares authorized)..................................... $1.41 =====
* Non-income producing during the period. ++ All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). !FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Swedish Krona (Buy) $431 $432 07/03/01 $(1) ===
27 29 ------------------------------------------------------------ HARTFORD GLOBAL TECHNOLOGY HLS FUND ------------------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 97.4% COMMUNICATIONS -- 8.3% *44 CIENA Corp. ......................... $ 1,664 *+144 Exodus Communications, Inc. ......... 297 149 Motorola, Inc. ...................... 2,469 *41 Network Appliance, Inc. ............. 567 32 Nokia Corp., ADR..................... 703 *32 QUALCOMM, Inc. ...................... 1,866 *+43 Sonus Networks, Inc. ................ 995 -------- 8,561 -------- COMPUTERS & OFFICE EQUIPMENT -- 31.3% *23 Cirrus Logic, Inc. .................. 527 *319 Cisco Systems, Inc. ................. 5,809 *182 Dell Computer Corp. ................. 4,759 110 Hewlett-Packard Co. ................. 3,146 41 International Business Machines Corp. .............................. 4,656 *90 Lexmark International, Inc. ......... 6,039 *+634 Maxtor Corp. ........................ 3,331 *158 Palm, Inc. .......................... 958 *77 SanDisk Corp. ....................... 2,150 *49 Solectron Corp. ..................... 888 -------- 32,263 -------- ELECTRICAL EQUIPMENT -- 0.5% *15 Teradyne, Inc. ...................... 506 -------- ELECTRONICS -- 11.1% *34 Broadcom Corp., Class A.............. 1,450 *71 Cypress Semiconductor Corp. ......... 1,691 106 Intel Corp. ......................... 3,112 *+168 OmniVision Technologies, Inc. ....... 947 34 Sony Corp. .......................... 2,242 *69 Taiwan Semiconductor Manufacturing Co., Ltd., ADR...................... 1,049 *+104 United Microelectronics Corp. ....... 926 -------- 11,417 -------- MACHINERY -- 1.9% *76 Ultratech Stepper, Inc. ............. 1,960 -------- MARKET SHARES VALUE --------- -------- SOFTWARE & SERVICES -- 41.0% *58 Agile Software Corp. ................ $ 984 *93 AOL Time Warner, Inc. ............... 4,950 *35 CSG Systems International, Inc. ..... 2,012 49 First Data Corp. .................... 3,151 *85 i2 Technologies, Inc. ............... 1,681 *55 Intuit, Inc. ........................ 2,215 *82 Macromedia, Inc. .................... 1,467 *140 Microsoft Corp. ..................... 10,223 +47 Peregrine Systems, Inc. ............. 1,351 163 Rational Software Corp. ............. 4,578 *34 SunGard Data Systems, Inc. .......... 1,029 *+62 VeriSign, Inc. ...................... 3,721 *19 VERITAS Software Corp. .............. 1,257 *126 Verity, Inc. ........................ 2,506 *128 Vignette Corp. ...................... 1,133 -------- 42,258 -------- TRANSPORTATION -- 3.3% 56 Sabre Group Corp. ................... 2,780 *19 Travelocity.com, Inc. ............... 574 -------- 3,354 -------- Total common stocks (cost $107,920).......................... $100,319 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 6.8% REPURCHASE AGREEMENT -- 6.8% $7,033 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01........... $ 7,033 -------- Total short-term securities (cost $7,033)............................ $ 7,033 ========
The accompanying notes are an integral part of this financial statement. 28 30 -----------------------------------------------------------
MARKET VALUE -------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, net of securities loaned....................................... $100,015 Investment in securities loaned (See Note 2(i))........................................ 7,337 -------- Total investment in securities, at value (total cost $114,953) -- see accompanying portfolio.................................... 107,352 Receivable for securities sold................. 5,900 Receivable for Fund shares sold................ 1,541 Receivable for dividends and interest.......... 10 Security lending collateral (See Note 2(i)).... 7,940 Cash and other assets.......................... 3 -------- Total assets................................... 122,746 -------- LIABILITIES Payable for securities purchased............... 11,320 Payable for Fund shares sold................... 443 Security lending collateral payable to brokers (See Note 2(i)).............................. 7,940 Other liabilities.............................. 2 -------- Total liabilities.............................. 19,705 -------- Net assets..................................... $103,041 ======== MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 181,362 shares outstanding.................................. $ 181 Capital surplus................................ 155,058 Accumulated net investment loss................ (158) Accumulated net realized loss on investments... (44,439) Unrealized depreciation of investments......... (7,601) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))!.......... -- -------- Net assets..................................... $103,041 ======== Class IA Net asset value per share ($88,030 (divided by) 154,893 shares outstanding) (600,000 shares authorized)..................................... $0.57 ===== Class IB Net asset value per share ($15,011 (divided by) 26,469 shares outstanding) (200,000 shares authorized)..................................... $0.57 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). !FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Japanese Yen (Buy) $ 39 $ 39 07/03/01 $ -- ======
29 31 ----------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND ----------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 93.0% AUSTRALIA -- 9.0% 10 Australian Gas Light Co. (Utilities).......................... $ 42 *82 Australian Pipeline Trust (Metals, Minerals & Mining)................... 105 85 Goodman Fielder Ltd. (Food, Beverage & Tobacco)............................. 51 *42 Infomedia Ltd. (Metals, Minerals & Mining).............................. 38 16 Nufarm Ltd. (Chemicals)............... 23 *61 Transfield Services Ltd. (Business Services)............................ 62 ------ 321 ------ BELGIUM -- 2.5% 3 Colruyt S.A. (Retail)................. 88 ------ DENMARK -- 2.4% 1 Bang & Olufsen A/S, B Shares (Electronics)........................ 18 3 Radiometer A/S, B Shares (Medical Instruments & Supplies).............. 69 ------ 87 ------ FINLAND -- 0.7% *5 Okmetic Oyj (Electronics)............. 26 ------ FRANCE -- 5.5% 2 Cegedim S.A. (Business Services)...... 59 *5 Dalet S.A. (Software & Services)...... 13 *@2 General De Sante (Business Services)............................ 32 *@1 Nexans S.A. (Electrical Equipment).... 24 *#0 Nexans S.A. (Electrical Equipment).... 10 *3 Risc Technology (Communications)...... 24 *1 Wavecom S.A. (Communications)......... 33 ------ 195 ------ GERMANY -- 8.3% *11 Ceyoniq AG (Software & Services)...... 70 8 FAG Kugelfischer Georg Schaeffer AG (Machinery).......................... 48 *@1 Fraport AG (Transportation)........... 32 *11 MWG Biotech AG (Medical Instruments & Supplies)............................ 36 *4 PSI AG (Software & Services).......... 59 *2 Telegate AG (Consumer Services)....... 19 *2 UMS United Medical Systems, Inc. (Health Services).................... 33 ------ 297 ------ HONG KONG -- 3.3% *260 Excel Technology International Holdings Ltd. (Financial Services)... 24 450 Sa Sa International Holding Ltd. (Retail)............................. 48 36 VTech Holdings Ltd. (Electronics)..... 17 15 Yue Yuen Industrial Holdings (Consumer Non-Durables)........................ 30 ------ 119 ------ MARKET SHARES VALUE --------- ------ IRELAND -- 3.0% 78 Glanbia PLC (Food, Beverage & Tobacco)............................. $ 62 23 Independent News & Media (Media & Entertainment)....................... 45 ------ 107 ------ ITALY -- 5.0% 16 Banca Poplare Di Milano (Banks)....... 64 10 Esaote S.p.A. (Medical Instruments & Supplies)............................ 27 20 La Rinascente S.p.A. (Food, Beverage & Tobacco)............................. 86 ------ 177 ------ JAPAN -- 30.5% 4 Alpine Electronics, Inc. (Communications)..................... 41 1 Asahi Broadcasting Corp. (Communications)..................... 73 3 Asatsu-DK, Inc. (Communications)...... 67 1 Belluna Co., Ltd. (Retail)............ 18 5 Chugoku Bank Ltd. (Banks)............. 33 #0 Citizen Electronics Co. (Electronics)........................ 17 3 Densei-Lamda K.K. (Electrical Equipment)........................... 35 4 Fujitsu Systems Construction Ltd. (Software & Services)................ 31 2 Fukuda Denshi Co., Ltd. (Medical Instruments & Supplies).............. 46 5 Getz Brothers & Co., Inc. (Medical Instruments & Supplies).............. 22 32 Higo Bank Ltd. (Banks)................ 113 1 Hutech Norin Co., Ltd. (Transportation)..................... 14 *14 Kinki Nippon Tourist Co. (Transportation)..................... 36 3 Kissei Pharmaceutical Co., Ltd. (Drugs).............................. 71 4 Medca Japan Co., Ltd. (Research & Testing Facilities).................. 22 2 Meiwa Estate Co., Ltd. (Real.......... 28 10 Mizuno Corp. (Retail)................. 37 #0 Moshi Moshi Hotline, Inc. (Business Services)............................ 27 5 N.I.C. Corp. (Business Services)...... 51 2 Nagaileben Co., Ltd. (Consumer Non- Durables)............................ 46 13 Nihon Kohden Corp. (Machinery)........ 45 13 Shinko Securities Co., Ltd. (Financial Services)............................ 41 2 Takuma Co., Ltd. (Utilities).......... 20 5 Towa Pharmaceutical Co. (Drugs)....... 56 1 USS Co., Ltd. (Retail)................ 33 10 Yamaguchi Bank Ltd. (Banks)........... 63 ------ 1,086 ------ NETHERLANDS -- 6.4% 2 Ballast Nedim N.V. (Construction)..... 38 3 Grolsch N.V. (Food, Beverage & Tobacco)............................. 46
The accompanying notes are an integral part of this financial statement. 30 32 -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- (CONTINUED) NETHERLANDS -- (CONTINUED) 1 IHC Caland N.V. (Energy & Services)... $ 34 1 International-Muller N.V. (Energy & Services)............................ 30 *1 SNT Group N.V. (Business Services).... 18 *6 Tele Atlas N.V. (Transportation)...... 29 2 Volker Wessels Stevin N.V. (Construction)....................... 33 ------ 228 ------ NEW ZEALAND -- 0.6% 11 Tower Ltd. (Financial Services)....... 23 ------ NORWAY -- 0.4% 2 Leif Hoegh & Co., ASA (Transportation)..................... 15 ------ SWEDEN -- 1.2% 3 Esselte AB, A Shares (Computers & Office Equipment).................... 15 5 Esselte AB, B Shares (Computers & Office Equipment).................... 29 ------ 44 ------ UNITED KINGDOM -- 14.2% 13 Abbot Group PLC (Energy & Services)... 34 10 Ashtead Group PLC (Financial Services)............................ 15 27 Dawson Holdings PLC (Business Services)............................ 26 *42 Eurotunnel PLC (Transportation)....... 43 89 Express Dairies PLC (Food, Beverage & Tobacco)............................. 44 *@15 Isoft Group PLC (Medical Instruments & Supplies)............................ 52 9 Kelda Group PLC (Utilities)........... 50 *34 NMT Group PLC (Medical Instruments & Supplies)............................ 13 263 Premier Oil PLC (Energy & Services)... 85 2 RM PLC (Software & Services).......... 18 23 Smith (David S.) Holdings PLC (Forest & Paper Products).................... 45 15 Somerfield PLC (Food, Beverage & Tobacco)............................. 27 3 UMECO PLC (Aerospace & Defense)....... 22 11 Whatman PLC (Software & Services)..... 33 ------ 507 ------ Total common stocks................... $3,320 ====== PRINCIPAL MARKET AMOUNT VALUE --------- ------ SHORT-TERM SECURITIES -- 3.2% REPURCHASE AGREEMENT -- 3.2% $115 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.................. $ 115 ------ Total short-term securities........... $ 115 ====== DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $3,499)........ 93.0% $3,320 Total short-term securities (cost $115).................................. 3.2 115 ----- ------ Total investment in securities (total cost $3,614)........................... 96.2 3,435 Cash, receivables and other assets....... 4.5 160 Payable for securities purchased......... (0.7) (25) ----- ------ Net assets............................... 100.0% $3,570 ===== ====== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 3,650 shares outstanding.... $ 4 Capital surplus.................................. 3,665 Accumulated undistributed net investment income......................................... 8 Accumulated undistributed net realized gain on investments.................................... 73 Unrealized depreciation of investments........... (179) Unrealized depreciation of forward foreign currency contracts (See Note 2(g))!............ (1) ------ Net assets....................................... $3,570 ====== Class IA Net asset value per share ($3,223 (divided by) 3,295 shares outstanding) (600,000 shares authorized)..................................... $0.98 ===== Class IB Net asset value per share ($347 (divided by) 355 shares outstanding) (200,000 shares authorized)..................................... $0.98 =====
31 33 ---------------------------------------------------------- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND ---------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ----------------------------------------------------------
MARKET VALUE ------ DIVERSIFICATION BY INDUSTRY: Aerospace & Defense...................... 0.6% $ 22 Banks.................................... 7.6 273 Business Services........................ 7.7 275 Chemicals................................ 0.6 23 Communications........................... 6.7 238 Computers & Office Equipment............. 1.2 44 Construction............................. 2.0 71 Consumer Non-Durables.................... 2.1 76 Consumer Services........................ 0.5 19 Drugs.................................... 3.6 127 Electrical Equipment..................... 1.9 69 Electronics.............................. 2.2 78 Energy & Services........................ 5.1 183 Financial Services....................... 2.9 103 Food, Beverage & Tobacco................. 8.8 316 Forest & Paper Products.................. 1.3 45 Health Services.......................... 0.9 33 Machinery................................ 2.7 93 Media & Entertainment.................... 1.3 45 Medical Instruments & Supplies........... 7.4 265 Metals, Minerals & Mining................ 4.0 143 Real Estate.............................. 0.8 28 Research & Testing Facilities............ 0.6 22 Retail................................... 6.3 224 Software & Services...................... 6.3 224 Transportation........................... 4.8 169 Utilities................................ 3.1 112 ----- ------ Total common stocks............. 93.0% $3,320 ===== ======
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $140 or 3.9% of net assets. # Due to the presentation of the financial statements in thousands, the number of shares round to zero. !FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Australian Dollar (Buy) $ 14 $ 15 07/02/01 $(1) Euro (Buy) 12 12 07/02/01 -- Euro (Buy) 1 1 07/03/01 -- Hong Kong Dollar (Buy) 2 2 07/03/01 -- Hong Kong Dollar (Buy) 2 2 07/03/01 -- Japanese Yen (Sell) 33 33 07/02/01 -- --- $(1) ===
The accompanying notes are an integral part of this financial statement. 32 34 ------------------------------------------------------------ HARTFORD SMALL COMPANY HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- --------- COMMON STOCKS -- 92.0% APPAREL & TEXTILE -- 0.9% *+234 Genesco, Inc. ...................... $ 7,872 --------- BANKS -- 1.2% 436 People's Bank....................... 10,161 --------- BUSINESS SERVICES -- 4.5% *+345 Getty Images, Inc. ................. 9,059 *501 I-Many, Inc. ....................... 6,757 *329 Iron Mountain, Inc. ................ 14,765 *1,009 US Oncology, Inc. .................. 8,969 --------- 39,550 --------- CHEMICALS -- 0.9% 437 Wellman, Inc. ...................... 7,819 --------- COMMUNICATIONS -- 1.8% *352 Lightbridge, Inc. .................. 6,833 *+992 McLeodUSA, Inc., Class A............ 4,555 *612 NMS Communications Corp. ........... 4,287 --------- 15,675 --------- COMPUTERS & OFFICE EQUIPMENT -- 2.5% *468 Cirrus Logic, Inc. ................. 10,780 *188 Planar Systems, Inc. ............... 4,877 *1,442 Western Digital Corp. .............. 5,769 --------- 21,426 --------- CONSTRUCTION -- 1.3% 439 Granite Construction, Inc. ......... 11,166 --------- CONSUMER DURABLES -- 2.8% *411 Furniture Brands International, Inc. .............................. 11,519 268 Martin Marietta Materials, Inc. .... 13,248 --------- 24,767 --------- CONSUMER NON-DURABLES -- 2.9% *1,032 Airgas, Inc. ....................... 12,284 373 Callaway Golf Co. .................. 5,893 138 D & K Healthcare Resources, Inc. ... 5,067 *82 Priority Healthcare Corp., Class B.................................. 2,308 --------- 25,552 --------- CONSUMER SERVICES -- 2.1% *+568 WMS Industries, Inc. ............... 18,276 --------- DRUGS -- 4.7% +224 Alpharma, Inc., Class A............. 6,107 *213 ArQule, Inc. ....................... 4,620 *130 Gilead Sciences, Inc. .............. 7,583 *+260 ImmunoGen, Inc. .................... 5,192 *+130 NPS Pharmaceuticals, Inc. .......... 5,243 *338 Serologicals Corp. ................. 7,204 *+98 Vertex Pharmaceuticals, Inc. ....... 4,856 --------- 40,805 --------- EDUCATION -- 0.6% *+245 Edison Schools, Inc. ............... 5,596 --------- MARKET SHARES VALUE --------- --------- ELECTRICAL EQUIPMENT -- 1.3% *245 Molecular Devices Corp. ............ $ 4,913 *+138 Rudolf Technologies, Inc. .......... 6,495 --------- 11,408 --------- ELECTRONICS -- 7.7% *998 Aeroflex, Inc. ..................... 10,475 *+368 Emcore Corp. ....................... 11,305 *292 Intersil Holding Corp. ............. 10,643 *+362 Mattson Technology, Inc. ........... 6,320 *+445 Oak Technology, Inc. ............... 4,714 *333 Pericom Semiconductor Corp. ........ 5,232 *237 SBS Technologies, Inc. ............. 4,478 *564 Stratos Lightwave, Inc. ............ 7,337 *41 Supertex, Inc. ..................... 508 *166 Vicor Corp. ........................ 2,704 *286 Virata Corp. ....................... 3,391 --------- 67,107 --------- ENERGY & SERVICES -- 2.2% 227 Ashland, Inc. ...................... 9,083 *+192 Hanover Compressor Co. ............. 6,347 141 Questar Corp. ...................... 3,489 --------- 18,919 --------- EXCHANGE TRADED FUNDS -- 1.4% 198 iShares Russell 2000 Growth Index Fund............................... 12,606 --------- FINANCIAL SERVICES -- 3.4% 304 Federated Investors, Inc., Class B.................................. 9,792 *130 Investment Technology Group......... 6,538 257 Legg Mason, Inc. ................... 12,798 --------- 29,128 --------- FOOD, BEVERAGE & TOBACCO -- 0.9% *200 Smithfield Foods, Inc. ............. 8,056 --------- HEALTH SERVICES -- 6.6% *272 Aclara Biosciences, Inc. ........... 2,110 *+612 Caremark Rx, Inc. .................. 10,059 *637 Covance, Inc. ...................... 14,428 *449 Magellan Health Services, Inc. ..... 5,750 *+147 Orthodontic Centers of America...... 4,457 *6 Pharmacyclics, Inc. ................ 214 *325 Renal Care Group, Inc. ............. 10,699 *315 Triad Hospitals, Inc. .............. 9,283 --------- 57,000 --------- INSURANCE -- 0.8% *+398 Health Net, Inc. ................... 6,918 --------- MACHINERY -- 1.9% *265 Ultratech Stepper, Inc. ............ 6,794 *137 Varian Medical Systems, Inc. ....... 9,773 --------- 16,567 ---------
33 35 ------------------------------------------------------------ HARTFORD SMALL COMPANY HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- --------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- 2.7% *320 Cox Radio Inc., Class A............. $ 8,906 *+272 Emmis Broadcast Corp. .............. 8,364 *511 Entravision Communications Corp. ... 6,279 --------- 23,549 --------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.3% *+149 Arthrocare Corp. ................... 3,886 112 Beckman Coulter, Inc. .............. 4,561 *290 Edwards Life Sciences Corp. ........ 7,653 *254 I-STAT Corp. ....................... 3,740 --------- 19,840 --------- METALS, MINERALS & MINING -- 2.4% 426 AK Steel Holding Corp. ............. 5,346 *519 Stillwater Mining Co. .............. 15,181 --------- 20,527 --------- REAL ESTATE -- 2.1% 317 Liberty Property Trust (REIT)....... 9,377 +391 Reckson Associates Realty Corp. (REIT)............................. 8,988 --------- 18,365 --------- RESEARCH & TESTING FACILITIES --0.4% *180 Core Laboratories N.V. ............. 3,368 --------- RETAIL -- 8.8% *850 Barnes & Noble, Inc. ............... 33,436 *+115 Chang's (P.F.) China Bistro, Inc. .............................. 4,366 *239 Cheesecake Factory, Inc. (The)...... 6,764 *1,042 Hollywood Entertainment Corp. ...... 8,813 16 Pier 1 Imports, Inc. ............... 183 *374 RARE Hospitality International...... 8,446 *+522 Whole Foods Market, Inc. ........... 14,157 --------- 76,165 --------- RUBBER & PLASTICS PRODUCTS -- 2.0% *+261 Reebok International Ltd. .......... 8,329 *373 Vans, Inc........................... 8,758 --------- 17,087 --------- SOFTWARE & SERVICES -- 7.0% *+112 Affiliated Computer Services, Inc., Class A............................ 8,044 *185 Cognex Corp. ....................... 6,259 *+472 E*TRADE Group, Inc. ................ 3,042 *350 GTECH Holdings Corp. ............... 12,412 *121 Intranet Solutions, Inc. ........... 4,612 *77 Manhattan Associates, Inc. ......... 3,053 *137 NetIQ Corp. ........................ 4,291 *+140 Optimal Robotics Corp. ............. 5,328 *+518 SeeBeyond Technology Corp. ......... 6,212 *+218 Serena Software..................... 7,908 --------- 61,161 --------- MARKET SHARES VALUE --------- --------- TRANSPORTATION -- 10.4% *205 Arkansas Best Corp. ................ $ 4,716 *308 Atlantic Coast Airlines Holdings.... 9,222 *373 Atlas Air, Inc. .................... 5,277 *376 BE Aerospace, Inc. ................. 7,163 *247 Doncasters PLC, ADR................. 6,772 *914 easyJet PLC......................... 5,564 *@241 easyJet PLC......................... 1,475 *473 Frontier Airlines, Inc. ............ 5,796 *259 Raynair Holdings PLC, ADR........... 13,460 456 Skywest, Inc. ...................... 12,756 *+934 Swift Transportation Co., Inc. ..... 17,993 --------- 90,194 --------- UTILITIES -- 1.5% 34 National Fuel Gas Co. .............. 1,757 *+190 Waste Connections, Inc. ............ 6,840 163 WGL Holdings, Inc. ................. 4,424 --------- 13,021 --------- Total common stocks................. 799,651 ========= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 7.0% REPURCHASE AGREEMENT -- 6.8% $58,946 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01................ 58,946 U.S. TREASURY BILLS -- 0.2% 2,000 3.499% due 09/13/01................. $ 1,986 --------- Total short-term securities......... $ 60,932 ========= DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $755,461).... 92.0% $ 799,651 Total short-term securities (cost $60,932)............................. 7.0 60,932 ----- --------- Total investment in securities (total cost $816,393)....................... 99.0 860,583 Cash, receivables and other assets..... 4.0 34,467 Securities lending collateral (See Note 2(i))................................ 16.4 142,822 Payable for securities purchased....... (3.0) (25,848) Payable for Fund shares redeemed....... (0.0) (248) Securities lending collateral payable to brokers (See Note 2(i))........... (16.4) (142,822) Other liabilities...................... (0.0) (47) ----- --------- Net assets............................. 100.0% $ 868,907 ===== =========
The accompanying notes are an integral part of this financial statement. 34 36 ----------------------------------------------------------
MARKET VALUE --------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 1,500,000 shares authorized; 623,265 shares outstanding................................. $ 62,327 Capital surplus............................... 950,411 Accumulated undistributed net investment income...................................... 367 Distribution in excess of net realized gain on investments................................. (188,634) Unrealized appreciation of investments........ 44,190 Unrealized appreciation of futures contracts ++.......................................... 246 --------- Net assets.................................... $ 868,907 ========= Class IA Net asset value per share ( $816,668 (divided by) 585,666 shares outstanding) (1,125,000 shares authorized).................................... $1.39 ====== Class IB Net asset value per share ($52,239 (divided by) 37,599 shares outstanding) (375,000 shares authorized).................................... $1.39 ======
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $1,475 or 0.2% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). ++ The Fund had 70 Russell 2000 September 2001 futures contracts open as of June 30, 2001. These contracts had a value of $18,046 as of June 30, 2001 and were collateralized by U.S. Treasury Bills with a market value of $1,986. (Number of contracts not in $000's) 35 37 ----------------------------------------------------------- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND ----------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 87.6% AUSTRALIA -- 1.3% 1 News Corp. Ltd., ADR (Media & Entertainment)....................... $ 52 ------ BRAZIL -- 0.4% #0 Telemig Celular participacoes S.A., ADR (Communications)................. 17 ------ CANADA -- 1.0% 1 Alcan, Inc. (Metals, Minerals & Mining).............................. 42 ------ CHINA -- 1.4% *11 China Mobile (Hong Kong) Ltd. (Communications)..................... 58 ------ DENMARK -- 0.6% 1 NEG Micon A/S (Machinery)............. 26 ------ FINLAND -- 2.1% 4 Nokia Oyj (Communications)............ 86 ------ FRANCE -- 15.5% 2 Altran Technologies S.A. (Business Services)............................ 79 3 AXA (Financial Services).............. 71 1 Banque National de Paris (BNP) (Banks).............................. 70 1 Coflexip S.A., ADR (Energy & Services)............................ 45 1 Dassault Systemes S.A. (Computers & Office Equipment).................... 46 #0 Essilor International S.A. (Medical Instruments & Supplies).............. 29 1 Societe Television Francaise 1 (Media & Entertainment)..................... 32 #0 Total Fina S.A., B Shares (Energy & Services)............................ 42 2 Vivendi Environnement (Transportation)..................... 88 2 Vivendi Universal S.A. (Media & Entertainment)....................... 139 ------ 641 ------ GERMANY -- 9.6% 1 Adidas AG (Apparel & Textile)......... 79 1 Bayerische Motoren Werke (BMW) AG (Transportation)..................... 43 4 Deutsche Telekom AG (Communications).. 79 #0 Porsche AG (Consumer Durables)........ 34 1 SAP AG (Software & Services).......... 83 1 Software AG (Software & Services)..... 77 ------ 395 ------ HONG KONG -- 1.8% 24 Li & Fung Ltd. (Consumer Non-Durables)........................ 39 4 Sun Hung Kai Properties (Real Estate).............................. 36 ------ 75 ------ MARKET SHARES VALUE --------- ------ IRELAND -- 4.1% 4 CRH PLC (Metals, Minerals & Mining)... $ 68 #0 Elan Corp., PLC, ADR (Health Services)............................ 24 2 Raynair Holdings PLC, ADR (Transportation)..................... 78 ------ 170 ------ ITALY -- 0.8% 4 Mediaset S.p.A. (Media & Entertainment)....................... 34 ------ JAPAN -- 1.7% #0 Kyocera Corp. (Electronics)........... 35 1 Tokyo Electron Ltd. (Electronics)..... 36 ------ 71 ------ NETHERLANDS -- 4.6% *1 Royal Dutch Petroleum Co. (Energy & Services)............................ 29 3 Unilever N.V., NY Shares (Consumer Non-Durables)........................ 161 ------ 190 ------ SINGAPORE -- 0.5% 2 Creative Labs, Inc. (Computers & Office Equipment).................... 19 ------ SOUTH KOREA -- 4.6% 5 PoHang Iron & Steel Co., Ltd., ADR (Metals, Minerals & Mining).......... 95 @1 Samsung Electronics, GDR (Electronics)........................ 94 ------ 189 ------ SPAIN -- 1.4% *@#0 Industria de Diseno Textil (Apparel & Textile)............................. 1 *4 Industria de Diseno Textil (Apparel & Textile)............................. 56 ------ 57 ------ SWEDEN -- 1.9% 13 Gambro AB, A Shares (Medical Instruments & Supplies).............. 80 ------ SWITZERLAND -- 2.3% #0 Nestle S.A. (Food, Beverage & Tobacco)............................. 94 ------ TAIWAN -- 0.8% *2 Taiwan Semiconductor Manufacturing Co., Ltd. ADR (Electronics).......... 32 ------ UNITED KINGDOM -- 31.2% *15 ARM Holdings PLC (Electronics)........ 55 3 AstraZeneca Group PLC (Drugs)......... 144 5 BP Amoco PLC (Energy & Services)...... 38 17 British Airways PLC (Transportation)..................... 81 17 Capita Group PLC (Business Services)............................ 109 *16 COLT Telecom Group PLC (Communications)..................... 107
The accompanying notes are an integral part of this financial statement. 36 38 -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) 7 Compass Group PLC (Food, Beverage & Tobacco)............................. $ 58 3 GlaxoSmithKline PLC (Drugs)........... 81 8 Lloyds TSB Group PLC (Insurance)...... 77 5 Logica PLC (Software & Services)...... 66 31 Marks & Spencer PLC (Retail).......... 111 9 Reed International PLC (Media & Entertainment)....................... 83 36 Rentokil Initial PLC (Business Services)............................ 124 14 Smith & Nephew PLC (Medical Instruments & Supplies).............. 71 1 Tyco International Ltd. (Consumer Non-Durables)........................ 60 12 Vodafone AirTouch PLC (Communications)..................... 27 ------ 1,292 ------ Total common stocks (cost $3,877)..... $3,620 ====== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 10.2% REPURCHASE AGREEMENT -- 10.2% $422 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............ $ 422 ------ Total short-term securities (cost $422)............................... $ 422 ====== STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $4,299) -- see accompanying portfolio.......... $4,042 Receivable for securities sold................... 73 Receivable for Fund shares sold.................. 166 Receivable for dividends and interest............ 6 Cash and other assets............................ 1 ------ Total assets..................................... 4,288 ------ LIABILITIES Payable for securities purchased................. 153 Other liabilities................................ 2 ------ Total liabilities................................ 155 ------ Net assets....................................... $4,133 ====== MARKET VALUE ------ SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 4,603 shares outstanding.... $ 5 Capital surplus.................................. 4,504 Accumulated undistributed net investment income......................................... 11 Accumulated net realized loss on investments..... (130) Unrealized depreciation of investments........... (257) ------ Net assets....................................... $4,133 ====== Class IA Net asset value per share ($3,516 (divided by) 3,916 shares outstanding) (600,000 shares authorized)..................................... $0.90 ===== Class IB Net asset value per share ($617 (divided by) 687 shares outstanding) (200,000 shares authorized)..................................... $0.90 ===== DIVERSIFICATION BY INDUSTRY: Apparel & Textile.......................... 3.3% $ 136 Banks...................................... 1.7 70 Business Services.......................... 7.5 312 Communications............................. 9.0 374 Computers & Office Equipment............... 1.6 65 Consumer Durables.......................... 0.8 34 Consumer Non-Durables...................... 6.3 260 Drugs...................................... 5.4 225 Electronics................................ 6.1 252 Energy & Services.......................... 3.7 154 Financial Services......................... 1.7 71 Food, Beverage & Tobacco................... 3.7 152 Health Services............................ 0.6 24 Insurance.................................. 1.9 77 Machinery.................................. 0.6 26 Media & Entertainment...................... 8.2 340 Medical Instruments & Supplies............. 4.4 180 Metals, Minerals & Mining.................. 5.0 205 Real Estate................................ 0.9 36 Retail..................................... 2.7 111 Software & Services........................ 5.5 226 Transportation............................. 7.0 290 ---- ------ Total common stocks............... 87.6% $3,620 ==== ======
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $95 or 2.3% of net assets. # Due to the presentation of the financial statements in thousands, the number of shares round to zero. 37 39 ------------------------------------------------------------ HARTFORD CAPITAL APPRECIATION HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 88.6% BANKS -- 2.8% 1,600 Bank of America Corp. ............. $ 96,048 2,099 Morgan (J.P.) Chase & Co., Inc. ... 93,620 2,471 Washington Mutual, Inc. ........... 92,767 ---------- 282,435 ---------- BUSINESS SERVICES -- 2.3% *3,000 KPMG Consulting, Inc. ............. 46,050 +700 Lamar Advertising Co., Class A..... 30,800 3,212 Manpower, Inc. .................... 96,033 *+2,100 United Rentals (North America),.... 54,495 ---------- 227,378 ---------- COMMUNICATIONS -- 7.9% 9,267 AT&T Corp. ........................ 203,881 1,440 Broadwing, Inc. ................... 35,208 *+824 Echostar Communications Corp., A Shares............................ 26,701 *+2,400 Exodus Communications, Inc. ....... 4,944 3,201 Motorola, Inc. .................... 53,010 *+5,787 NTL, Inc. ......................... 69,727 *1,260 Openwave Systems, Inc. ............ 43,729 *2,200 QUALCOMM, Inc. .................... 128,656 *+1,481 Sonus Networks, Inc. .............. 34,589 *12,309 WorldCom, Inc. .................... 174,792 +492 WorldCom, Inc. -- MCI Group........ 7,927 ---------- 783,164 ---------- COMPUTERS & OFFICE EQUIPMENT --3.1% *3,800 Cisco Systems, Inc. ............... 69,160 *+595 Maxtor Corp. ...................... 3,124 1,400 Minnesota Mining & Manufacturing Co. .............................. 159,740 *+2,500 Solectron Corp. ................... 45,750 +1,517 Symbol Technologies, Inc. ......... 33,682 ---------- 311,456 ---------- CONSUMER DURABLES -- 0.9% +2,212 Grainger (W.W.), Inc. ............. 91,054 ---------- CONSUMER NON-DURABLES -- 2.4% 2,848 McKesson HBOC, Inc. ............... 105,729 *+6,000 Smurfit-Stone Container Corp. ..... 97,200 692 Tyco International Ltd. ........... 37,687 ---------- 240,616 ---------- DRUGS -- 3.9% *+2,000 Gilead Sciences, Inc. ............. 116,380 *4,221 Immunex Corp. ..................... 74,919 2,609 Pharmacia Corp. ................... 119,870 1,300 Teva Pharmaceutical Industries Ltd., ADR......................... 80,990 ---------- 392,159 ---------- ELECTRICAL EQUIPMENT -- 1.4% *+1,500 Credence Systems Corp. ............ 36,360 *935 Ionics, Inc. ...................... 29,449 MARKET SHARES VALUE --------- ---------- ELECTRICAL EQUIPMENT -- (CONTINUED) 133 Millipore Corp. ................... $ 8,268 *2,800 Thermo Electron Corp. ............. 61,656 ---------- 135,733 ---------- ELECTRONICS -- 5.0% *11,000 Agere Systems, Inc. ............... 82,500 *+3,886 Flextronics International Ltd. .... 101,461 824 Samsung Electronics................ 121,644 2,150 Sony Corp. ........................ 141,348 *2,087 UCAR International, Inc. .......... 24,935 *1,150 Vishay Intertechnology, Inc. ...... 26,450 ---------- 498,338 ---------- ENERGY & SERVICES -- 4.1% *2,901 Canadian Natural Resources Ltd. ... 85,745 *3,000 Rowan Cos., Inc. .................. 66,300 +7,606 Sasol Ltd., ADR.................... 68,986 193 Suncor Energy, Inc. ............... 4,960 417 Transocean Sedco Forex, Inc. ...... 17,196 +3,300 Valero Energy Corp. ............... 121,374 *3,076 XTO Energy, Inc. .................. 44,133 ---------- 408,694 ---------- FINANCIAL SERVICES -- 3.0% 2,120 American General Finance Corp. .... 98,493 1,500 Citigroup, Inc. ................... 79,260 1,000 Legg Mason, Inc. .................. 49,760 631 Orix Corp. ........................ 61,352 *1,400 Pinnacle Holdings, Inc. ........... 8,414 ---------- 297,279 ---------- FOOD, BEVERAGE & TOBACCO -- 2.6% 3,364 Archer-Daniels-Midland Co. ........ 43,728 *1,500 Coach, Inc. ....................... 57,075 2,756 Philip Morris Cos., Inc. .......... 139,872 810 Sara Lee Corp. .................... 15,334 ---------- 256,009 ---------- HEALTH SERVICES -- 1.4% 1,000 HCA -- The Healthcare Co. ......... 45,190 *2,976 Lincare Holdings, Inc. ............ 89,310 ---------- 134,500 ---------- INSURANCE -- 3.3% 6,000 Ace Ltd. .......................... 234,540 1,650 MBIA, Inc. ........................ 91,872 ---------- 326,412 ---------- MACHINERY -- 1.3% 2,145 Ingersoll-Rand Co. ................ 88,366 *+2,000 Terex Corp. ....................... 42,400 ---------- 130,766 ---------- MEDIA & ENTERTAINMENT -- 6.6% *12,045 AT&T -- Liberty Media Group, Class A................................. 210,665 *2,000 Clear Channel Communications....... 125,400 *3,700 Comcast Corp., Class A............. 160,580
The accompanying notes are an integral part of this financial statement. 38 40 ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- (CONTINUED) +539 Knight-Ridder, Inc. ............... $ 31,986 *+3,000 Six Flags, Inc. ................... 63,120 *2,457 USA Networks, Inc. ................ 69,260 ---------- 661,011 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.8% 5,000 Becton, Dickinson & Co. ........... 178,950 ---------- METALS, MINERALS & MINING -- 5.7% 3,800 Alcoa, Inc. ....................... 149,720 2,250 Engelhard Corp. ................... 58,028 1,923 Lockheed Martin Corp. ............. 71,229 1,153 OAO LUKoil Holdings ADR............ 58,494 +3,800 Petroleo Brasileiro S.A., ADR...... 98,800 3,602 Precision Castparts Corp. ......... 134,783 ---------- 571,054 ---------- REAL ESTATE -- 1.1% 1,000 Boston Properties, Inc. (REIT)..... 40,900 *3,439 Security Capital Group, Inc., Class............................. 73,589 ---------- 114,489 ---------- RESEARCH & TESTING FACILITIES -- 0.5% *1,400 Regeneron Pharmeceuticals, Inc. ... 48,510 ---------- RETAIL -- 3.6% *1,875 Cheesecake Factory, Inc. (The)..... 53,063 3,300 Dollar General Corp. .............. 64,350 5,110 Limited, Inc. (The)................ 84,409 *9,500 Staples, Inc. ..................... 151,905 ---------- 353,727 ---------- RUBBER & PLASTICS PRODUCTS -- 0.6% 1,364 NIKE, Inc., Class B................ 57,279 ---------- SOFTWARE & SERVICES -- 9.8% *5,000 AOL Time Warner, Inc. ............. 265,000 *1,476 Avant! Corp. ...................... 19,636 *1,660 Cognex Corp. ...................... 56,191 *433 Computer Sciences Corp. ........... 14,989 856 First Data Corp. .................. 54,979 *4,900 i2 Technologies, Inc. ............. 97,020 *2,435 Intuit, Inc. ...................... 97,376 *1,000 Microsoft Corp. ................... 73,000 *+3,000 Peregrine Systems, Inc. ........... 87,000 *+3,000 Rational Software Corp. ........... 84,150 *+1,500 VeriSign, Inc. .................... 90,015 *+4,000 Vignette Corp. .................... 35,480 ---------- 974,836 ---------- TRANSPORTATION -- 8.6% *4,632 AMR Corp. ......................... 167,358 4,000 CSX Corp. ......................... 144,960 3,451 Delphi Automotive Systems Corp. ... 54,970 4,400 Northrop Grumman Corp. ............ 352,439 +1,661 Royal Carrribean Cruises Ltd. ..... 36,718 1,200 USFreightways Corp. ............... $ 35,400 2,717 Werner Enterprises, Inc. .......... 65,887 ---------- 857,732 ---------- UTILITIES -- 4.9% *6,000 Calpine Corp. ..................... 226,800 +3,800 CMS Energy Corp. .................. 105,830 5,000 Waste Management, Inc. ............ 154,100 ---------- 486,730 ---------- Total common stocks................ $8,820,311 ========== CONVERTIBLE PREFERRED STOCKS -- 0.5% AEROSPACE & DEFENSE -- 0.5% 1,010 Raytheon Co. ...................... $ 49,606 ---------- Total convertible preferred stocks............................ $ 49,606 ========== PRINCIPAL AMOUNT --------- CORPORATE NOTES + -- 0.0% UTILITIES -- 0.0% $ 5,000 Winstar Communications, Inc. (Ca) 12.75% due 04/15/10............... $ 50 ---------- Total corporate notes.............. $ 50 ========== SHORT-TERM SECURITIES -- 9.8% REPURCHASE AGREEMENT -- 9.8% $973,704 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01................ $ 973,704 ---------- Total short-term securities........ $ 973,704 ========== DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $8,285,660)......................... 88.6% $8,820,311 Total convertible preferred stocks (cost $51,311)...................... 0.5 49,606 Total corporate notes (cost $1,201)... 0.0 50 Total short-term securities (cost $973,704)........................... 9.8 973,704 ----- ---------- Total investment in securities (total cost $9,311,876).................... 98.9 9,843,671 Cash, receivables and other assets.... 1.7 175,698 Securities lending collateral (See Note 2(i))..................... 4.4 439,674 Payable for securities purchased...... (0.6) (55,654) Payable for Fund shares redeemed...... (0.0) (2,638) Securities lending collateral payable to brokers (See Note 2(i)).......... (4.4) (439,674) Other liabilities..................... (0.0) (403) ----- ---------- Net assets............................ 100.0% $9,960,674 ===== ==========
39 41 ----------------------------------------------------------- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 3,000,000 shares authorized; 2,282,976 shares outstanding.......................... $ 228,298 Capital surplus............................... 9,111,335 Accumulated undistributed net investment income...................................... 28,477 Accumulated undistributed net realized gain on investments................................. 60,863 Unrealized appreciation of investments........ 531,795 Unrealized appreciation of forward foreign currency contracts (See Note 2(g))!......... 20 Unrealized depreciation of other assets and liabilities in foreign currencies........... (114) ---------- Net assets.................................... $9,960,674 ========== MARKET VALUE ------ Class IA Net asset value per share ($9,685,066 / 2,219,689 shares outstanding) (2,250,000 shares authorized).................................... $4.36 ===== Class IB Net asset value per share ($275,608 / 63,287 shares outstanding) (750,000 shares authorized).................................... $4.35 =====
* Non-income producing during the period. ++ All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). + The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. !FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Japanese Yen (Sell) $ 6,864 6,896 07/02/01 $ 32 Japanese Yen (Sell) 11,366 11,354 07/03/01 (12) ---- $ 20 ====
The accompanying notes are an integral part of this financial statement. 40 42 ------------------------------------------------------------ HARTFORD MIDCAP HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 94.4% APPAREL & TEXTILE -- 0.7% 267 Liz Claiborne, Inc. ............... $ 13,490 ---------- BANKS -- 4.3% 297 M&T Bank Corp. .................... 22,454 451 State Street Corp. ................ 22,300 1,217 UnionBanCal Corp. ................. 41,020 ---------- 85,774 ---------- BUSINESS SERVICES -- 4.8% *+208 Concord EFS, Inc. ................. 10,802 *679 Iron Mountain, Inc. ............... 30,440 *496 Lamar Advertising Co., Class A..... 21,824 680 Manpower, Inc. .................... 20,344 *551 Robert Half International, Inc. ... 13,712 ---------- 97,122 ---------- COMMUNICATIONS -- 2.7% *+1,202 American Tower Corp., Class A...... 24,847 *1,721 NEXTEL Communications, Inc., Class A................................. 30,111 ---------- 54,958 ---------- COMPUTERS & OFFICE EQUIPMENT --1.4% *+1,014 Handspring, Inc. .................. 7,811 *+629 Jabil Circuit, Inc. ............... 19,411 *+174 Redback Networks, Inc. ............ 1,550 ---------- 28,772 ---------- CONSUMER DURABLES -- 1.1% 910 Herman Miller, Inc. ............... 22,012 ---------- CONSUMER NON-DURABLES -- 3.8% 2,447 Mattel, Inc. ...................... 46,305 815 McKesson HBOC, Inc. ............... 30,245 ---------- 76,550 ---------- CONSUMER SERVICES -- 0.9% +377 Cintas Corp. ...................... 17,450 ---------- DRUGS -- 5.1% *238 Forest Laboratories, Inc. ......... 16,905 *353 Genzyme Corp. ..................... 21,539 *573 Gilead Sciences, Inc. ............. 33,325 *1,735 Immunex Corp. ..................... 30,794 ---------- 102,563 ---------- EDUCATION -- 0.7% *392 DeVry, Inc. ....................... 14,166 ---------- ELECTRICAL EQUIPMENT -- 2.5% 146 Danaher Corp. ..................... 8,148 752 PerkinElmer, Inc. ................. 20,692 358 Tektronix, Inc. ................... 9,712 *351 Teradyne, Inc. .................... 11,618 ---------- 50,170 ---------- ELECTRONICS -- 4.1% *+602 Cypress Semiconductor Corp. ....... $ 14,348 *+386 Flextronics International Ltd. .... 10,071 *1,310 Lattice Semiconductor Corp. ....... 31,964 *+301 Sanmina Corp. ..................... 7,044 *828 Vishay Intertechnology, Inc. ...... 19,039 ---------- 82,466 ---------- ENERGY & SERVICES -- 4.3% *656 Noble Drilling Corp. .............. 21,497 674 Transocean Sedco Forex, Inc. ...... 27,794 *971 Varo International, Inc. .......... 18,067 *+385 Weatherford International, Inc. ... 18,480 ---------- 85,838 ---------- FINANCIAL SERVICES -- 5.0% 540 Bear Stearns Cos., Inc. (The)...... 31,835 *241 Investment Technology Group, Inc. ............................. 12,100 +708 Legg Mason, Inc. .................. 35,220 681 Waddell & Reed Financial, Inc., Class A........................... 21,612 ---------- 100,767 ---------- FOOD, BEVERAGE & TOBACCO -- 3.1% 594 Kellogg Co. ....................... 17,212 579 Pepsi Bottling Group, Inc. ........ 23,218 751 Ralston Purina Co. ................ 22,539 ---------- 62,969 ---------- FOREST & PAPER PRODUCTS -- 1.8% 1,785 Abitibi-Consolidated, Inc. ........ 13,651 521 Bowater, Inc. ..................... 23,323 ---------- 36,974 ---------- HEALTH SERVICES -- 2.9% *2,068 Health Management Associates, Inc., Class A........................... 43,515 *307 Tenet Healthcare Corp. ............ 15,843 ---------- 59,358 ---------- INSURANCE -- 4.5% 1,075 Ace Ltd. .......................... 42,022 417 AMBAC Financial Group, Inc. ....... 24,246 434 MBIA, Inc. ........................ 24,173 ---------- 90,441 ---------- MACHINERY -- 3.5% *1,054 Grant Prideco, Inc. ............... 18,440 512 Ingersoll-Rand Co. ................ 21,090 *+303 Lam Research Corp. ................ 8,996 510 Parker-Hannifin Corp. ............. 21,644 ---------- 70,170 ----------
The accompanying notes are an integral part of this financial statement. 41 43 ------------------------------------------------------------ HARTFORD MIDCAP HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) MEDIA & ENTERTAINMENT -- 3.1% *+270 Adelphia Communications Corp., Class A........................... $ 11,054 351 Scripps (E.W.) Co. (The), Class A................................. 24,247 *944 USA Networks, Inc. ................ 26,611 ---------- 61,912 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 4.6% 67 Beckman Coulter, Inc. ............. 2,730 1,163 Becton, Dickinson & Co. ........... 41,635 500 Biomet, Inc. ...................... 24,047 *409 St. Jude Medical, Inc. ............ 24,510 ---------- 92,922 ---------- METALS, MINERALS & MINING -- 0.8% 450 Lockheed Martin Corp. ............. 16,673 ---------- RESEARCH & TESTING FACILITIES -- 1.7% *451 Quest Diagnostics, Inc. ........... 33,727 ---------- RETAIL -- 6.4% *366 Bed Bath & Beyond, Inc. ........... 10,980 1,512 Dollar General Corp. .............. 29,476 *1,130 Dollar Tree Stores, Inc. .......... 31,445 1,123 Family Dollar Stores, Inc. ........ 28,790 *1,368 Staples, Inc. ..................... 21,879 *300 Starbucks Corp. ................... 6,905 ---------- 129,475 ---------- RUBBER & PLASTICS PRODUCTS -- 1.4% *+730 Sealed Air Corp. .................. 27,204 ---------- SOFTWARE & SERVICES -- 11.9% *155 Affiliated Computer Services, Inc., Class A........................... 11,132 *727 Cabletron Systems, Inc. ........... 16,610 *1,338 Cadence Design Systems, Inc. ...... 24,925 *477 Ceridian Corp. .................... 9,137 *+1,305 E*TRADE Group, Inc. ............... 8,419 *236 Fiserv, Inc. ...................... 15,118 *+1,896 Gartner Group, Inc., Class A....... 20,857 787 IMS Health, Inc. .................. 22,415 *939 Intuit, Inc. ...................... 37,547 *220 Peregrine Systems, Inc. ........... 6,383 *1,258 Rational Software Corp. ........... 35,295 *+320 VeriSign, Inc. .................... 19,227 *1,698 WebMD Corp. ....................... 11,886 ---------- 238,951 ---------- TRANSPORTATION -- 4.7% 1,191 Delphi Automotive Systems Corp. ... 18,973 603 Delta Air Lines, Inc. ............. 26,562 314 Empresa Brasileira de Aeronautica S.A., ADR......................... 12,270 *+300 Raynair Holdings PLC, ADR.......... 15,595 1,166 Southwest Airlines Co. ............ 21,568 ---------- 94,968 UTILITIES -- 2.6% 917 DPL, Inc. ......................... $ 26,565 731 KeySpan Corp. ..................... 26,652 ---------- 53,217 ---------- Total common stocks................ $1,901,059 ========== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 4.3% REPURCHASE AGREEMENT -- 4.3% $86,380 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............... $ 86,380 ---------- Total short-term securities........ $ 86,380 ========== DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,762,062)......................... 94.4% $1,901,059 Total short-term securities (cost $86,380)............................ 4.3 86,380 ----- ---------- Total investment in securities (total cost $1,848,442).................... 98.7 1,987,439 Cash, receivables and other assets.... 2.0 40,447 Securities lending collateral (See Note 2(i)).......................... 6.0 120,261 Payable for securities purchased...... (0.7) (14,312) Payable for Fund shares redeemed...... (0.0) (1) Securities lending collateral payable to brokers (See Note 2(i)).......... (6.0) (120,261) Other liabilities..................... (0.0) (81) ----- ---------- Net assets............................ 100.0% $2,013,492 ===== ========== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,000,000 shares authorized; 952,806 shares outstanding................................. $ 95,281 Capital surplus............................... 1,882,413 Accumulated undistributed net investment income...................................... 672 Distribution in excess of net realized gain on investments................................. (103,871) Unrealized appreciation of investments........ 138,997 ---------- Net assets.................................... $2,013,492 ========== Class IA Net asset value per share ($1,900,237 / 899,043 shares outstanding) (1,500,000 shares authorized)..................................... $2.11 ===== Class IB Net asset value per share ($113,255 / 53,763 shares outstanding) (500,000 shares authorized)..................................... $2.11 =====
* Non-income producing during the period. ++ All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 42 44 ------------------------------------------------------------ HARTFORD MIDCAP VALUE HLS FUND ------------------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 90.5% APPAREL & TEXTILE -- 1.6% *6 Jones Apparel Group, Inc.............. $ 259 ------- BANKS -- 8.4% 7 Charter One Financial................. 214 4 Golden West Financial Corp............ 244 15 Pacific Century Financial Corp........ 395 13 UnionBanCal Corp...................... 441 3 Webster Financial Corp................ 92 ------- 1,386 ------- BUSINESS SERVICES -- 5.9% *12 Arrow Electronics, Inc................ 296 *13 KPMG Consulting, Inc.................. 195 *10 United Rentals (North America)........ 252 *27 UnitedGlobalCom, Inc., Class A........ 237 ------- 980 ------- CHEMICALS -- 0.7% 2 Air Products & Chemicals, Inc......... 78 1 Cambrex Corp.......................... 40 ------- 118 ------- COMMUNICATIONS -- 1.6% *57 McLeodUSA, Inc., Class A.............. 261 ------- COMPUTERS & OFFICE EQUIPMENT -- 2.5% *6 Cirrus Logic, Inc..................... 143 *15 Quantum Corp. -- DLT & Storage Systems.............................. 154 *27 Western Digital Corp.................. 109 ------- 406 ------- CONSTRUCTION -- 3.2% 7 Granite Construction, Inc............. 170 3 Kaufman and Broad Home Corp........... 87 *7 Toll Brothers, Inc.................... 263 ------- 520 ------- CONSUMER DURABLES -- 3.6% 3 BorgWarner Automotive, Inc............ 154 *13 Dal-Tile International, Inc........... 236 6 Lafarge Corp.......................... 201 ------- 591 ------- CONSUMER NON-DURABLES -- 2.6% 9 Callaway Golf Co...................... 136 *6 Suiza Foods........................... 292 ------- 428 ------- CONSUMER SERVICES -- 1.3% 6 Harman International Industries, Inc.................................. 213 ------- ELECTRICAL EQUIPMENT -- 0.4% 1 Eaton Corp............................ 63 ------- ELECTRONICS -- 1.6% *24 General Semiconductor................. 255 ------- ENERGY & SERVICES -- 4.9% 1 Ashland, Inc.......................... $ 48 5 Devon Energy Corp..................... 252 3 IHC Caland N.V........................ 155 9 Lyondell Petrochemical Co............. 131 *7 Rowan Cos., Inc....................... 152 2 Unocal Corp........................... 61 ------- 799 ------- FINANCIAL SERVICES -- 3.4% 6 Golden State Bancorp, Inc............. 179 4 Legg Mason, Inc....................... 199 6 Metris Cos., Inc...................... 189 ------- 567 ------- FOOD, BEVERAGE & TOBACCO -- 1.4% *6 Constellation Brands, Inc............. 230 ------- FOREST & PAPER PRODUCTS -- 4.0% 20 Abitibi-Consolidated, Inc............. 154 *20 Packaging Corp. of America............ 304 *15 Pactiv Corp........................... 201 ------- 659 ------- INSURANCE -- 7.0% 6 Ace Ltd............................... 223 5 AMBAC Financial Group, Inc............ 297 *4 Health Net, Inc....................... 66 *9 Oxford Health Plans, Inc.............. 266 8 Reinsurance Group of America.......... 306 ------- 1,158 ------- MACHINERY -- 3.6% *15 Axcelis Technologies, Inc............. 216 14 CNH Global N.V........................ 81 *2 Grant Prideco, Inc.................... 35 8 Pall Corp............................. 191 2 Stanley Works (The)................... 63 ------- 586 ------- MEDIA & ENTERTAINMENT -- 5.8% *13 Adelphia Communications Corp., Class A ............................. 521 *10 Bally Total Fitness Holding Corp...... 284 *7 Six Flags, Inc........................ 156 ------- 961 ------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.5% 6 DENTSPLY International, Inc........... 244 ------- METALS, MINERALS & MINING -- 3.9% 5 AK Steel Holding Corp................. 58 *5 Anderson Exploration Ltd.............. 107 13 Engelhard Corp........................ 330 *17 Grupo IMSA S.A., ADR.................. 150 ------- 645 ------- REAL ESTATE -- 3.9% 9 Archstone Communities Trust (REIT).... 219 7 Liberty Property Trust (REIT)......... 201 4 Spieker Properties, Inc. (REIT)....... 222 ------- 642 -------
The accompanying notes are an integral part of this financial statement. 43 45 ------------------------------------------------------------ HARTFORD MIDCAP VALUE HLS FUND ------------------------------------------------------------ STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- (CONTINUED) RETAIL -- 5.1% *3 Ann Taylor Store...................... $ 90 11 Dollar General Corp................... 211 *17 Staples, Inc.......................... 265 9 TJX Cos., Inc. (The).................. 274 ------- 840 ------- RUBBER & PLASTICS PRODUCTS -- 0.3% 2 Compagnie Generale des Etablissements Michelin, Class B.................... 55 ------- SOFTWARE & SERVICES -- 3.5% *15 Parametric Technology Corp............ 208 *48 SONICblue, Inc........................ 160 *14 Unisys Corp........................... 209 ------- 577 ------- TRANSPORTATION -- 4.9% *20 America West Airlines, Inc............ 199 *7 Atlas Air, Inc........................ 95 6 Canadian National Railway Co.......... 223 *6 Continental Airlines, Inc., Class B... 291 ------- 808 ------- UTILITIES -- 3.9% 2 CMS Energy Corp....................... 64 1 Kansas City Power & Light Co.......... 34 *10 Orion Power Holdings, Inc............. 226 *16 Republic Services, Inc................ 316 ------- 640 ------- Total common stocks (cost $14,705).... $14,891 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 12.7% REPURCHASE AGREEMENT -- 12.7% $2,086 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............ $ 2,086 ------- Total short-term securities (cost $2,086)............................. $ 2,086 ======= MARKET VALUE ------- STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, at value (total cost $16,791) -- see accompanying portfolio........ $16,977 Receivable for securities sold.................. 330 Receivable for Fund shares sold................. 845 Receivable for dividends and interest........... 11 Cash and other assets........................... 2 ------- Total assets.................................... 18,165 ------- LIABILITIES Payable for securities purchased................ 1,718 ------- Total liabilities............................... 1,718 ------- Net assets...................................... $16,447 ======= SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 16,223 shares outstanding................................... $ 16 Capital surplus................................. 16,196 Accumulated undistributed net investment income........................................ 15 Accumulated undistributed net realized gain on investments................................... 34 Unrealized appreciation of investments.......... 186 ------- Net assets.................................... $16,447 ======= Class IA Net asset value per share ($13,852/13,663 shares outstanding) (600,000 shares authorized)................................. $ 1.01 ======= Class IB Net asset value per share ($2,595/2,560 shares outstanding) (200,000 shares authorized).... $ 1.01 =======
* Non-income producing during the period. The accompanying notes are an integral part of this financial statement. 44 46 ----------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 93.5% AUSTRALIA -- 0.8% 1,043 Australia & New Zealand Banking Group (Banks).................... $ 8,956 ---------- BELGIUM -- 0.5% 156 KBC Bancassurance Holding N.V. (Banks).......................... 5,543 ---------- BRAZIL -- 0.2% 53 Embraer -- Empresa Brasileira de Aeronautica S.A., ADR (Aerospace & Defense)....................... 2,054 ---------- CANADA -- 1.0% 497 Abitibi-Consolidated, Inc. (Forest & Paper Products)................ 3,795 172 Alcan, Inc. (Metals, Minerals & Mining).......................... 7,222 ---------- 11,017 ---------- CHINA -- 0.6% *1,349 China Mobile (Hong Kong) Ltd. (Communications)................. 7,123 ---------- FINLAND -- 3.4% 317 Nokia Corp., ADR (Communications)................. 6,976 525 Nokia Oyj (Communications)........ 11,898 1,594 Sonera Oyj (Communications)....... 12,431 252 UPM-Kymmene Group (Forest & Paper Products)........................ 7,133 ---------- 38,438 ---------- FRANCE -- 14.1% *+74 Atos Origin S.A. (Software & Services)........................ 5,354 +456 AXA (Financial Services).......... 12,990 +179 Banque National de Paris (BNP) (Banks).......................... 15,587 +289 Carrefour S.A. (Retail)........... 15,296 222 CNP Assurances (Insurance)........ 7,483 +59 France Telecom S.A. (Communications)................. 2,812 +111 France Telecom S.A., ADR (Communications)................. 5,342 +101 L'Oreal (Consumer Non-Durables)... 6,520 *39 Orange S.A. (Communications)...... 315 *@+1,009 Orange S.A. (Communications)...... 8,204 257 Pechiney S.A., A Shares (Metals, Minerals & Mining)............... 13,029 132 Rhone-Poulenc, A Shares (Chemicals)...................... 10,577 +211 Suez Lyonnaise des Eaux S.A. (Energy & Services).............. 6,788 +148 Total Fina S.A., B Shares (Energy & Services)...................... 20,700 +119 Vivendi Environnement (Transportation)................. $ 5,025 426 Vivendi Universal S.A. (Media & Entertainment)................... 24,847 ---------- 160,869 ---------- GERMANY -- 4.4% +216 Adidas AG (Apparel & Textile)..... 13,119 +312 Deutsche Telekom AG (Communications)................. 7,051 +285 Deutsche Telekom AG, ADR (Communications)................. 6,389 +380 RWE AG (Utilities)................ 15,067 +252 SAP AG (Software & Services)...... 8,829 ---------- 50,455 ---------- HONG KONG -- 1.9% 592 Cheung Kong (Holdings) Ltd. (Real Estate).......................... 6,452 +4,687 New World Development Ltd. (Real Estate).......................... 5,709 580 Sino Land Co., Ltd. (Real Estate).......................... 242 959 Sun Hung Kai Properties (Real Estate).......................... 8,638 ---------- 21,041 ---------- IRELAND -- 2.2% 995 Allied Irish Banks PLC (Banks).... 11,242 298 CRH PLC (Construction)............ 5,047 *500 Rynair Holdings PLC (Transportation)................. 5,175 2,130 Smurfit (Jefferson) Group PLC (Consumer Durables).............. 3,931 ---------- 25,395 ---------- ITALY -- 2.9% +669 Alleanza Assicurazioni (Insurance)...................... 7,059 +3,028 Banca Monte Dei Paschi (Banks).... 9,434 +3,533 Olivetti S.p.A. (Communications)................. 6,250 +1,646 Pirelli S.p.A. (Transportation)... 4,584 +1,210 Telecom Italia Mobile S.p.A. (Communications)................. 6,167 ---------- 33,494 ---------- JAPAN -- 14.3% 476 Banyu Pharmaceutical Co. (Drugs).......................... 8,721 +150 Canon, Inc. (Computers & Office Equipment)....................... 6,062 226 Fuji Photo Film Co., Ltd. (Consumer Non-Durables).......... 9,749 192 Hoya Corp. (Medical Instruments & Supplies)........................ 12,162 +47 Itochu Techno-Science Corp. (Software & Services)............ 5,363 1 Japan Tobacco, Inc. (Food, Beverage & Tobacco).............. 8,758 128 Kyocera Corp. (Electronics)....... 11,307 737 NEC Corp. (Electronics)........... 9,957 1,443 Nikko Securities Co., Ltd. (The) (Financial Services)............. 11,559
The accompanying notes are an integral part of this financial statement. 45 47 ----------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) JAPAN -- (CONTINUED) 1 Nippon Telegraph & Telephone Corp. (Communications)................. $ 6,906 #0 NTT DoCoMo, Inc. (Media & Entertainment)................... 6,751 +200 Promise Co., Ltd. (Financial Services)........................ 16,461 933 Sapporo Breweries Ltd. (Food, Beverage & Tobacco).............. 2,992 457 Sharp Corp. (Electronics)......... 6,229 216 Sony Corp. (Electronics).......... 14,189 776 Tokyo Style Co., Ltd. (Apparel & Textile)......................... 8,649 306 Toyota Motor Corp. (Transportation)................. 10,771 +279 Yamato Transport Co., Ltd. (Transportation)................. 5,850 ---------- 162,436 ---------- MEXICO -- 0.5% 135 Grupo Televisa S.A. (Media & Entertainment)................... 5,401 ---------- NETHERLANDS -- 8.5% 526 Aegon N.V. (Insurance)............ 14,792 283 Akzo Nobel N.V. (Chemicals)....... 11,975 244 Fortis Netherlands N.V. (Financial Services)........................ 5,944 161 Heineken N.V. (Food, Beverage & Tobacco)......................... 6,502 430 Philips Electronics N.V. (Communications)................. 11,392 +264 Royal Dutch Petroleum Co. (Energy & Services)...................... 15,170 82 Royal Dutch Petroleum Co., NY Shares (Energy & Services)....... 4,772 79 Schlumberger Ltd. (Energy & Services)........................ 4,159 418 TNT Post Group N.V. (Consumer Services)........................ 8,712 32 Unilever N.V., CVA (Consumer Non- Durables)........................ 1,912 183 Unilever N.V., NY Shares (Consumer Non-Durables).................... 10,877 ---------- 96,207 ---------- RUSSIA -- 0.1% 26 LUKoil Holdings ADR (Energy & Services)........................ 1,309 ---------- SOUTH KOREA -- 2.7% *@263 Hynix Semiconductor, Inc., GDR (Electronics).................... 2,831 412 Korea Telecom Corp., ADR (Communications)................. 9,047 73 PoHang Iron & Steel Co., Ltd. (Metals, Minerals & Mining)...... 5,849 91 Samsung Electronics (Electronics).................... 13,441 ---------- 31,168 ---------- SPAIN -- 2.8% +376 Banco Popular Espanol S.A. (Banks).......................... $ 13,159 +668 Iberdrola S.A. (Utilities)........ 8,567 *@37 Industria de Diseno Textil S.A. (Apparel & Textile).............. 588 *+356 Industria de Diseno Textil S.A. (Apparel & Textile).............. 5,676 +93 Telefonica S.A., ADR (Communications)................. 3,480 ---------- 31,470 ---------- SWEDEN -- 3.9% 391 Electrolux AB, B Shares (Consumer Durables)........................ 5,405 864 Gambro AB, A Shares (Medical Instruments & Supplies).......... 5,280 +531 Gambro AB, B Shares (Medical Instruments & Supplies).......... 3,218 +460 Hennes & Mauritz AB, B Shares (Retail)......................... 7,878 1,153 Skandinaviska Enskilda, A Shares (Financial Services)............. 10,967 *715 Sparbanken Sverige AB, A Shares (Banks).......................... 8,275 +589 Telefonaktiebolaget LM Ericcson AB, B Shares, ADR (Communications)................. 3,222 ---------- 44,245 ---------- SWITZERLAND -- 4.1% 111 Nestle S.A. (Food, Beverage & Tobacco)......................... 23,547 234 Novartis AG (Drugs)............... 8,469 105 Roche Holdings AG (Drugs)......... 7,565 8 Serono S.A., Class B (Health Services)........................ 7,582 ---------- 47,163 ---------- TAIWAN -- 1.9% 51 Chinatrust Commercian Bank (Banks).......................... 36 2,708 Compal Electronics, Inc. (Computers & Office Equipment)... 2,910 *4,117 Tawain Semiconductor Manufacturing Co., Ltd. (Electronics) ......... 7,654 *5,503 United Microelectronics Corp. (Electronics).................... 7,305 *+404 United Microelectronics Corp., ADR (Electronics).................... 3,591 ---------- 21,496 ----------
The accompanying notes are an integral part of this financial statement. 46 48 -----------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) UNITED KINGDOM -- 22.7% 634 AstraZeneca Group PLC (Drugs)..... $ 29,470 510 BAA PLC (Transportation).......... 4,734 820 BAE Systems PLC (Aerospace & Defense)......................... 3,924 530 Barclays PLC (Financial Services)........................ 16,229 646 Billiton PLC (Metals, Minerals & Mining).......................... 3,192 248 BP Amoco PLC (Energy &............ 2,037 220 BP Amoco PLC, ADR (Energy & Services)........................ 10,957 1,984 British Airways PLC (Transportation)................. 9,570 564 British Sky Broadcasting (Media & Entertainment)................... 5,437 *1,113 British Telecommunications PLC (Communications)................. 6,990 *1,861 COLT Telecom Group PLC (Communications)................. 12,876 61 GlaxoSmithKline PLC (Drugs)....... 1,697 +151 GlaxoSmithKline PLC, ADR.......... 8,487 1,966 Granada PLC (Media & Entertainment)................... 4,099 1,663 Imperial Chemical Industries PLC (Chemicals)...................... 9,769 2,495 Lattice Group PLC (Transportation)................. 5,544 2,151 Lloyds TSB Group PLC (Insurance)...................... 21,461 2,785 Marks & Spencer PLC (Retail)...... 10,124 506 Prudential Corp. PLC (Insurance)...................... 6,109 791 Reckitt & Benckiser PLC (Consumer Non-Durables).................... 11,389 2,104 Reed International PLC (Media & Entertainment)................... 18,641 4,172 Rentokil Initial PLC (Business Services)........................ 14,169 180 Rio Tinto PLC (Metals, Minerals & Mining).......................... 3,192 509 Royal Bank of Scotland Group PLC (Banks).......................... 11,223 1,345 Smith & Nephew PLC (Medical Instruments & Supplies).......... 6,960 535 Standard Chartered PLC (Financial Services)........................ 6,896 5,954 Vodafone AirTouch PLC (Communications)................. 13,147 ---------- 258,323 ---------- Total common stocks (cost $1,149,570)..................... $1,063,603 ========== PRINCIPAL MARKET AMOUNT VALUE --------- ---------- SHORT-TERM SECURITIES -- 3.0% REPURCHASE AGREEMENT -- 3.0% $ 34,655 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01... $ 34,655 ---------- Total short-term securities (cost $34,655)........................ $ 34,655 ========== STATEMENT OF ASSETS AND LIABILITIES: ASSETS Investment in securities, net of securities loaned...................................... $ 960,416 Investment in securities loaned (See Note 2(i))....................................... 137,842 ---------- Total investment in securities, at value (total cost $1,184,225) -- see accompanying portfolio................................... 1,098,258 Receivable for securities sold................ 13,127 Receivable for Fund shares sold............... 70,283 Receivable for dividends and interest......... 11,987 Security lending collateral (See Note 2(i))... 144,885 Cash and other assets......................... 26,602 ---------- Total assets.................................. 1,365,142 ---------- LIABILITIES Payable for securities purchased.............. 40,807 Payable for Fund shares sold.................. 40,437 Security lending collateral payable to brokers (See Note 2(i))............................. 144,885 Other liabilities............................. 1,967 ---------- Total liabilities............................. 228,096 ---------- Net assets.................................... $1,137,046 ==========
47 49 ----------------------------------------------------------- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET VALUE ---------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,500,000 shares authorized; 1,127,445 shares outstanding.......................... $ 112,745 Capital surplus............................... 1,241,953 Accumulated undistributed net investment income...................................... 10,527 Distribution in excess of net realized gain on Unrealized depreciation of investments........ (85,967) Unrealized appreciation of forward foreign currency contracts (See Note 2(g))!......... 538 Unrealized depreciation of other assets and liabilities in foreign currencies........... (1,602) ---------- Net assets.................................... $1,137,046 ========== Class IA Net asset value per share ($1,108,756 / 1,099,366 shares outstanding) (1,875,000 shares authorized)............................... $1.01 ----- ----- Class IB Net asset value per share ($28,290 / 28,079 shares outstanding) (625,000 shares authorized)............................... $1.01 ----- DIVERSIFICATION BY INDUSTRY: Aerospace & Defense.................... 0.5% $ 5,978 Apparel & Textile...................... 2.5 28,032 Banks.................................. 7.3 83,455 Business Services...................... 1.2 14,169 Chemicals.............................. 2.8 32,321 Communications......................... 13.0 148,018 Computers & Office Equipment........... 0.8 8,972 Construction........................... 0.4 5,047 Consumer Durables...................... 0.8 9,336 Consumer Non-Durables.................. 3.6 40,447 Consumer Services...................... 0.8 8,712 Drugs.................................. 5.7 64,409 Electronics............................ 6.7 76,504 Energy & Services...................... 5.8 65,892 Financial Services..................... 6.0 68,056 Food, Beverage & Tobacco............... 3.7 41,799 Forest & Paper Products................ 1.0 10,928 Health Services........................ 0.7 7,582 Insurance.............................. 6.1 69,894 Media & Entertainment.................. 5.7 65,176 Medical Instruments & Supplies......... 2.4 27,620 Metals, Minerals & Mining.............. 2.9 32,484 Real Estate............................ 1.9 21,041 Retail................................. 2.9 33,298 Software & Services.................... 1.7 19,546 Transportation......................... 4.5 51,253 Utilities.............................. 2.1 23,634 ---- ---------- Total common stocks........... 93.5% $1,063,603 ==== ==========
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $11,623 or 1.0% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). # Due to the presentation of the financial statements in thousands, the number of shares round to zero. !FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ ---------- ------------- -------------- Euro (Buy) $ 634 $ 645 07/02/01 $(11) Euro (Buy) 1,178 1,181 07/03/01 (3) Euro (Sell) 4,136 4,123 07/03/01 (13) Hong Kong Dollar (Sell) 501 501 07/03/01 -- Hong Kong Dollar (Sell) 882 882 07/05/01 -- Japanese Yen (Buy) 3,196 3,210 07/02/01 (14) Japanese Yen (Buy) 1,865 1,870 07/03/01 (5) Japanese Yen (Sell) 815 814 07/03/01 (1) Japanese Yen (Sell) 5,721 5,838 07/19/01 117 Japanese Yen (Sell) 5,721 5,886 07/19/01 165 Japanese Yen (Sell) 7,629 7,932 07/19/01 303 ---- $538 ====
The accompanying notes are an integral part of this financial statement. 48 50 ------------------------------------------------------------ HARTFORD GLOBAL LEADERS HLS FUND ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 94.5% APPAREL & TEXTILE -- 1.7% +123 Adidas AG............................ $ 7,425 *@+17 Industria de Diseno Textil........... 272 *125 Industria de Diseno Textil........... 1,988 -------- 9,685 -------- BANKS -- 8.9% 230 Banco Popular Espanol S.A. .......... 8,050 214 Bank of America Corp. ............... 12,851 233 Bank One Corp. ...................... 8,331 +65 Banque National de Paris (BNP)....... 5,690 128 Fannie Mae........................... 10,874 129 Fleet Boston Financial Corp. ........ 5,097 -------- 50,893 -------- BUSINESS SERVICES -- 3.7% 807 Capita Group PLC..................... 5,191 *+116 eBay, Inc. .......................... 7,959 2,335 Rentokil Initial PLC................. 7,930 -------- 21,080 -------- CHEMICALS -- 2.1% 250 du Pont (E.I.) de Nemours & Co. ..... 12,070 -------- COMMUNICATIONS -- 9.7% *1,493 China Telecom (Hong Kong) Ltd. ...... 7,886 *197 CIENA Corp. ......................... 7,497 *1,565 COLT Telecom Group PLC............... 10,826 +185 Deutsche Telekom AG.................. 4,182 *+84 Echostar Communications Corp., A Shares.............................. 2,727 319 Nokia Oyj............................ 7,237 *139 QUALCOMM, Inc. ...................... 8,099 104 Verizon Communications, Inc. ........ 5,548 353 Vodafone AirTouch PLC................ 780 -------- 54,782 -------- COMPUTERS & OFFICE EQUIPMENT -- 3.8% *357 Cisco Systems, Inc. ................. 6,490 75 International Business Machines Corp. .............................. 8,464 58 Minnesota Mining & Manufacturing Co. ................................ 6,663 -------- 21,617 -------- CONSUMER NON-DURABLES -- 3.7% 78 Cardinal Health, Inc. ............... 5,406 102 Tyco International Ltd. ............. 5,575 175 Unilever N.V., NY Shares............. 10,395 -------- 21,376 -------- DRUGS -- 4.3% 159 American Home Products Corp. ........ 9,286 171 AstraZeneca Group PLC................ 7,934 259 GlaxoSmithKline PLC.................. 7,257 -------- 24,477 -------- ELECTRONICS -- 6.9% 8 Advantest Corp. ..................... 686 *37 Broadcom Corp., Class A.............. 1,591 148 General Electric Co. ................ $ 7,204 230 Intel Corp. ......................... 6,719 61 Kyocera Corp. ....................... 5,389 @124 Samsung Electronics, GDR............. 9,720 183 Texas Instruments, Inc. ............. 5,761 36 Tokyo Electron Ltd. ................. 2,191 -------- 39,261 -------- ENERGY & SERVICES -- 4.4% 640 BP Amoco PLC......................... 5,258 65 Burlington Resources, Inc. .......... 2,589 126 ExxonMobil Corp. .................... 11,015 +108 Royal Dutch Petroleum Co. ........... 6,233 -------- 25,095 -------- FINANCIAL SERVICES -- 2.8% 127 Barclays PLC......................... 3,890 223 Citigroup, Inc. ..................... 11,809 -------- 15,699 -------- FOOD, BEVERAGE & TOBACCO -- 4.3% 900 Compass Group PLC.................... 7,173 252 Kellogg Co. ......................... 7,320 21 Nestle S.A. ......................... 4,499 113 Philip Morris Cos., Inc. ............ 5,709 -------- 24,701 -------- HEALTH SERVICES -- 1.2% *+113 Elan Corp. .......................... 6,917 -------- INSURANCE -- 4.5% 103 American International Group, Inc. ............................... 8,841 1,067 Lloyds TSB Group PLC................. 10,643 107 MBIA, Inc. .......................... 5,947 -------- 25,431 -------- MACHINERY -- 1.1% 89 United Technologies Corp. ........... 6,491 -------- MEDIA & ENTERTAINMENT -- 6.2% *139 AT&T -- Liberty Media Group, Class A................................... 2,431 1,327 Reed International PLC............... 11,754 *397 USA Networks, Inc. .................. 11,183 171 Vivendi Universal S.A. .............. 9,979 -------- 35,347 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 3.0% 116 Baxter International, Inc. .......... 5,674 998 Gambro AB, A Shares.................. 6,094 106 Johnson & Johnson Co. ............... 5,310 -------- 17,078 -------- METALS, MINERALS & MINING -- 3.5% 111 Alcan, Inc. ......................... 4,643 170 Alcoa, Inc. ......................... 6,710
The accompanying notes are an integral part of this financial statement. 49 51 ------------------------------------------------------------ HARTFORD GLOBAL LEADERS HLS FUND ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) METALS, MINERALS & MINING -- (CONTINUED) 123 CRH PLC.............................. $ 2,084 341 PoHang Iron & Steel Co., Ltd.,....... 6,717 -------- 20,154 -------- RETAIL -- 5.6% 107 Home Depot, Inc. (The)............... 4,962 2,149 Marks & Spencer PLC.................. 7,814 *848 Staples, Inc. ....................... 13,564 117 Wal-Mart Stores, Inc. ............... 5,729 -------- 32,069 -------- SOFTWARE & SERVICES -- 8.4% *118 AOL Time Warner, Inc. ............... 6,249 *215 Microsoft Corp. ..................... 15,666 61 SAP AG............................... 8,454 *+193 VeriSign, Inc. ...................... 11,570 *90 VERITAS Software Corp. .............. 5,968 -------- 47,907 -------- TRANSPORTATION -- 3.0% 73 Bayerische Motoren Werke (BMW) AG.... 2,411 789 British Airways PLC.................. 3,806 109 General Motors Corp. ................ 7,027 +95 Vivendi Environment.................. 4,011 -------- 17,255 -------- UTILITIES -- 1.7% 320 Waste Management, Inc. .............. 9,853 -------- Total common stocks.................. $539,238 ======== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 4.5% REPURCHASE AGREEMENT -- 4.5% $25,628 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01................. $ 25,628 -------- Total short-term securities.......... $ 25,628 ======== MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $532,284)..... 94.5% $539,238 Total short-term securities (cost $25,628).............................. 4.5 25,628 ----- -------- Total investment in securities (total cost $557,912)........................ 99.0 564,866 Cash, receivables and other assets...... 4.7 26,864 Securities lending collateral (See Note 2(i))................................. 6.9 39,225 Payable for securities purchased........ (3.2) (18,522) Payable for Fund shares redeemed........ (0.4) (2,052) Securities lending collateral payable to brokers (See Note 2(i))............... (6.9) (39,225) Other liabilities....................... (0.1) (301) ----- -------- Net assets.............................. 100.0% $570,855 ===== ======== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 373,300 shares outstanding.................................. $ 373 Capital surplus................................ 669,785 Accumulated undistributed net investment income....................................... 2,983 Distribution in excess of net realized gain on investments.................................. (109,183) Unrealized appreciation of investments......... 6,954 Unrealized depreciation of forward foreign currency contracts (See Note 2(g))!.......... (37) Unrealized depreciation of other assets and liabilities in foreign currencies............ (20) -------- Net assets..................................... $570,855 ======== Class IA Net asset value per share ($527,444 / 344,573 shares outstanding) (600,000 shares authorized).................................... $1.53 ====== Class IB Net asset value per share ($43,411 / 28,427 shares outstanding) (200,000 shares authorized).................................... $1.53 ======
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $9,992 or 1.8% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 50 52 -------------------------------------------------------------------------------- (!) FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- British Pounds (Buy) $1,838 $1,852 07/02/01 $(14) British Pounds (Buy) 749 750 07/03/01 (1) British Pounds (Buy) 2,337 2,351 07/03/01 (14) Euro (Buy) 20 20 07/02/01 -- Euro (Buy) 1,661 1,658 07/03/01 3 Euro (Buy) 2,028 2,032 07/03/01 (4) Euro (Sell) 1,850 1,843 07/03/01 (7) ---- $(37) ====
51 53 ------------------------------------------------------------ HARTFORD FOCUS HLS FUND ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ------- COMMON STOCKS -- 91.3% BANKS -- 7.2% 14 Morgan (J.P.) Chase & Co., Inc. ...... $ 624 29 U.S. Bankcorp......................... 659 ------- 1,283 ------- CHEMICALS -- 2.6% 14 Dow Chemical Co. (The)................ 466 ------- COMPUTERS & OFFICE EQUIPMENT -- 2.5% *15 EMC Corp. ............................ 439 ------- CONSUMER NON-DURABLES -- 9.9% 13 McKesson HBOC, Inc. .................. 464 *10 Safeway, Inc. ........................ 480 15 Tyco International Ltd. .............. 818 ------- 1,762 ------- DRUGS -- 8.5% 10 Bristol-Myers Squibb Co. ............. 523 *20 Immunex Corp. ........................ 355 18 Schering-Plough Corp. ................ 634 ------- 1,512 ------- ENERGY & SERVICES -- 10.1% 13 Ashland, Inc. ........................ 521 8 ExxonMobil Corp. ..................... 699 11 Schlumberger Ltd. .................... 579 ------- 1,799 ------- FINANCIAL SERVICES -- 8.7% 13 Citigroup, Inc. ...................... 692 6 Franklin Resources, Inc. ............. 265 10 Merrill Lynch & Co., Inc. ............ 593 ------- 1,550 ------- HEALTH SERVICES -- 3.1% 12 HCA -- The Healthcare Co. ............ 542 ------- MACHINERY -- 6.4% 11 Caterpillar, Inc. .................... 551 8 United Technologies Corp. ............ 586 ------- 1,137 ------- MEDIA & ENTERTAINMENT -- 4.8% *8 Adelphia Communications Corp., Class A.................................... 328 *30 AT&T -- Liberty Media Group, Class A.................................... 519 ------- 847 ------- METALS, MINERALS & MINING -- 4.8% 12 Alcoa, Inc. .......................... 473 7 Vulcan Materials Co. ................. 376 ------- 849 ------- SOFTWARE & SERVICES -- 13.0% *11 AOL Time Warner, Inc. ................ 599 *7 Intuit, Inc. ......................... 292 *15 Microsoft Corp. ...................... 1,065 *17 Oracle Corp. ......................... 323 ------- 2,279 TRANSPORTATION -- 3.4% *15 Fedex Corp. .......................... $ 603 ------- UTILITIES -- 6.3% 11 El Paso Energy Corp. ................. 578 9 FPL Group, Inc. ...................... 542 ------- 1,120 ------- Total common stocks................... $16,188 ======= PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 13.7% REPURCHASE AGREEMENT -- 13.7% $2,432 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.................. $ 2,432 ------- Total short-term securities........... $ 2,432 ======= DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $16,410)....... 91.3% $16,188 Total short-term securities (cost $2,432)................................ 13.7 2,432 ----- ------- Total investment in securities (total cost $18,842).......................... 105.0 18,620 Cash, receivables and other assets....... 2.3 416 Payable for securities purchased......... (7.3) (1,301) Other liabilities........................ (0.0) (2) ----- ------- Net assets............................... 100.0% $17,733 ===== ======= SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 17,800 shares outstanding................................... $ 18 Capital surplus................................. 17,949 Accumulated undistributed net investment income........................................ 25 Accumulated net realized loss on investments.... (37) Unrealized depreciation of investments.......... (222) ------- Net assets...................................... $17,733 ======= Class IA Net asset value per share ($15,223 / 15,280 shares outstanding) (600,000 shares authorized)........ $1.00 ===== Class IB Net asset value per share ($2,510 / 2,520 shares outstanding) (200,000 shares authorized)........ $1.00 =====
* Non-income producing during the period. The accompanying notes are an integral part of this financial statement. 52 54 ------------------------------------------------------------ HARTFORD STOCK HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 99.4% AEROSPACE & DEFENSE -- 0.5% *2,378 General Motors, Class H............ $ 48,161 ---------- BANKS -- 6.7% 2,000 Bank One Corp. .................... 71,600 2,196 Fleet Boston Financial Corp. ...... 86,640 3,923 Morgan (J.P.) Chase & Co., Inc. ... 174,975 3,618 State Street Corp. ................ 179,065 3,430 U.S. Bankcorp...................... 78,170 ---------- 590,450 ---------- CHEMICALS -- 1.4% 3,656 Dow Chemical Co. (The)............. 121,545 ---------- COMMUNICATIONS -- 5.5% *890 CIENA Corp. ....................... 33,820 900 Motorola, Inc. .................... 14,904 450 Qwest Communications International..................... 14,342 3,653 SBC Communications, Inc. .......... 146,324 *2,417 Tellabs, Inc. ..................... 46,602 2,400 Verizon Communications, Inc. ...... 128,405 *6,817 WorldCom, Inc. .................... 96,796 ---------- 481,193 ---------- COMPUTERS & OFFICE EQUIPMENT --6.8% *7,206 Cisco Systems, Inc. ............... 131,149 4,619 Dell Computer Corp. ............... 120,779 *2,565 EMC Corp. ......................... 74,519 1,652 International Business Machines Corp. ............................ 186,642 *800 Palm, Inc. ........................ 4,856 +4,555 Solectron Corp. ................... 83,353 ---------- 601,298 ---------- CONSUMER NON-DURABLES -- 3.7% 3,936 Safeway, Inc. ..................... 188,914 2,455 Tyco International Ltd. ........... 133,787 ---------- 322,701 ---------- DRUGS -- 10.9% 2,912 Abbott Laboratories................ 139,820 2,316 American Home Products Corp. ...... 135,341 2,512 Bristol-Myers Squibb Co. .......... 131,351 *+1,352 Immunex Corp. ..................... 23,991 2,224 Merck & Co., Inc. ................. 142,110 3,788 Pfizer, Inc. ...................... 151,706 2,403 Pharmacia Corp. ................... 110,421 3,516 Schering-Plough Corp. ............. 127,413 ---------- 962,153 ---------- ELECTRONICS -- 8.5% 1,651 Emerson Electric Co. .............. 99,855 6,901 General Electric Co. .............. 336,409 6,674 Intel Corp. ....................... 195,217 *+1,583 JDS Uniphase Corp. ................ 20,178 2,294 Texas Instruments, Inc. ........... 72,255 *+1,043 Vitesse Semiconductor Corp. ....... 21,938 ---------- 745,852 ---------- ENERGY & SERVICES -- 7.2% 1,128 Anadarko Petroleum Corp. .......... $ 60,930 1,193 Conoco, Inc., Class B.............. 34,466 3,782 ExxonMobil Corp. .................. 330,314 1,689 Schlumberger Ltd. ................. 88,942 1,730 Texaco, Inc. ...................... 115,185 ---------- 629,837 ---------- FINANCIAL SERVICES -- 7.9% 5,317 Citigroup, Inc. ................... 280,976 3,112 Franklin Resources, Inc. .......... 142,436 641 Goldman Sachs Group, Inc. (The).... 54,972 2,349 Merrill Lynch & Co., Inc. ......... 139,160 1,171 Morgan Stanley Dean Witter & Co. .............................. 75,213 ---------- 692,757 ---------- FOOD, BEVERAGE & TOBACCO -- 1.9% 3,706 PepsiCo., Inc. .................... 163,783 ---------- FOREST & PAPER PRODUCTS -- 1.0% 1,517 Kimberly-Clark Corp. .............. 84,772 ---------- HEALTH SERVICES -- 0.8% 1,565 HCA -- The Healthcare Co. ......... 70,722 ---------- INSURANCE -- 5.0% 2,765 American International Group, Inc. ............................. 237,813 1,962 Marsh & McLennan Cos., Inc. ....... 198,202 ---------- 436,015 ---------- MACHINERY -- 2.5% 1,429 Caterpillar, Inc. ................. 71,526 1,999 United Technologies Corp. ......... 146,461 ---------- 217,987 ---------- MEDIA & ENTERTAINMENT -- 3.8% *6,954 AT&T -- Liberty Media Group, Class A................................. 121,632 3,232 Gannett Co., Inc. ................. 212,995 ---------- 334,627 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.1% 1,260 Baxter International, Inc. ........ 61,740 2,511 Johnson & Johnson Co. ............. 125,570 ---------- 187,310 ---------- METALS, MINERALS & MINING -- 2.4% 2,909 Alcoa, Inc. ....................... 114,611 1,460 Illinois Tool Works, Inc. ......... 92,418 ---------- 207,029 ---------- REAL ESTATE -- 0.0% 6 Security Capital Group, Inc., Class............................. 6,902 ---------- RETAIL -- 4.1% 3,209 Home Depot, Inc. (The)............. 149,398 4,352 Wal-Mart Stores, Inc. ............. 212,363 ---------- 361,761 ----------
The accompanying notes are an integral part of this financial statement. 53 55 ------------------------------------------------------------ HARTFORD STOCK HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) SOFTWARE & SERVICES -- 11.7% *4,974 AOL Time Warner, Inc. ............. $ 263,601 *+2,400 Ariba, Inc. ....................... 13,200 2,308 Automatic Data Processing, Inc. ... 114,703 *1,089 Computer Sciences Corp. ........... 37,672 *+1,550 i2 Technologies, Inc. ............. 30,690 *5,759 Microsoft Corp. ................... 420,423 *5,325 Oracle Corp. ...................... 101,175 *730 VERITAS Software Corp. ............ 48,567 ---------- 1,030,031 ---------- TRANSPORTATION -- 1.2% 1,785 Boeing Co. (The)................... 99,229 *248 Fedex Corp. ....................... 9,950 ---------- 109,179 ---------- UTILITIES -- 3.8% 2,117 Duke Energy Corp. ................. 82,600 1,750 El Paso Energy Corp. .............. 91,945 1,053 Exelon Corp. ...................... 67,518 1,523 FPL Group, Inc. ................... 91,694 ---------- 333,757 ---------- Total common stocks................ $8,739,822 ========== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 1.2% REPURCHASE AGREEMENT -- 1.2% $104,426 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............... $ 104,426 ---------- Total short-term securities........ $ 104,426 ========== MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $7,995,186)......................... 99.4% $8,739,822 Total short-term securities (cost $104,426)........................... 1.2 104,426 ----- ---------- Total investment in securities (total cost $8,099,612).................... 100.6 8,844,248 Cash, receivables and other assets.... 0.1 13,799 Securities lending collateral (See Note 2(i)).......................... 0.3 30,758 Payable for securities purchased...... (0.6) (55,338) Payable for Fund shares redeemed...... (0.1) (6,954) Securities lending collateral payable to brokers (See Note 2(i)).......... (0.3) (30,758) Other liabilities..................... (0.0) (365) ----- ---------- Net assets............................ 100.0% $8,795,390 ===== ========== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 3,000,000 shares authorized; 1,754,865 shares outstanding.......................... $ 175,487 Capital surplus............................... 7,902,213 Accumulated undistributed net investment income...................................... 32,346 Distribution in excess of net realized gain on investments................................. (59,292) Unrealized appreciation of investments........ 744,636 ---------- Net assets.................................... $8,795,390 ========== Class IA Net asset value per share ($8,579,871 / 1,711,814 shares outstanding) (2,250,000 shares authorized)..................................... $5.01 ===== Class IB Net asset value per share ($215,519 / 43,051 shares outstanding) (750,000 shares authorized)..................................... $5.01 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 54 56 ----------------------------------------------------------- HARTFORD VALUE HLS FUND ----------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- 96.7% BANKS -- 11.2% 1 Bank of America Corp. ................ $ 72 5 Morgan (J.P.) Chase & Co., Inc. ...... 223 8 National City Corp. .................. 237 #0 Wachovia Corp. ....................... 21 9 Washington Mutual, Inc. .............. 323 4 Wells Fargo & Co. .................... 181 ------ 1,057 ------ BUSINESS SERVICES -- 0.8% *5 KPMG Consulting, Inc. ................ 75 ------ CHEMICALS -- 2.0% 4 du Pont (E.I.) de Nemours & Co. ...... 188 ------ COMMUNICATIONS -- 10.2% 8 AT&T Corp. ........................... 178 3 BellSouth Corp. ...................... 133 *15 McLeodUSA, Inc., Class A.............. 67 13 Motorola, Inc. ....................... 210 6 Sprint Corp. ......................... 117 #0 Verizon Communications, Inc. ......... 16 *16 WorldCom, Inc. ....................... 233 #0 WorldCom, Inc. -- MCI Group........... 5 ------ 959 ------ COMPUTERS & OFFICE EQUIPMENT -- 5.6% *11 Dell Computer Corp. .................. 277 8 Hewlett-Packard Co. .................. 235 #0 Minnesota Mining & Manufacturing Co. ................................. 23 ------ 535 ------ CONSUMER NON-DURABLES -- 1.2% 3 Eastman Kodak Co. .................... 117 ------ DRUGS -- 2.6% 1 Abbott Laboratories................... 24 4 Pharmacia Corp. ...................... 202 1 Schering-Plough Corp. ................ 25 ------ 251 ------ ELECTRICAL EQUIPMENT -- 0.8% 1 Eaton Corp. .......................... 35 *1 Teradyne, Inc. ....................... 43 ------ 78 ------ ELECTRONICS -- 1.0% *7 Agere Systems, Inc. .................. 56 1 Emerson Electric Co. ................. 42 ------ 98 ------ ENERGY & SERVICES -- 6.3% 3 Ashland, Inc. ........................ 132 5 ExxonMobil Corp. ..................... 393 2 Unocal Corp. ......................... 72 ------ 597 ------ FINANCIAL SERVICES -- 5.7% 8 Citigroup, Inc. ...................... $ 433 1 Goldman Sachs Group, Inc. (The)....... 103 ------ 536 ------ FOOD, BEVERAGE & TOBACCO -- 2.4% 4 Kellogg Co. .......................... 128 2 PepsiCo, Inc. ........................ 97 ------ 225 ------ FOREST & PAPER PRODUCTS -- 4.5% 8 Kimberly-Clark Corp. ................. 423 ------ HEALTH SERVICES -- 2.3% *4 Tenet Healthcare Corp. ............... 217 ------ INSURANCE -- 4.3% 5 Ace Ltd. ............................. 184 1 Chubb Corp. (The)..................... 54 1 CIGNA Corp. .......................... 48 #0 Marsh & McLennan Cos., Inc. .......... 30 2 Stancorp Financial Group.............. 95 ------ 411 ------ MACHINERY -- 3.5% 5 Caterpillar, Inc. .................... 235 2 Stanley Works (The)................... 101 ------ 336 ------ MEDIA & ENTERTAINMENT -- 5.2% *4 Adelphia Communications Corp., Class A.................................... 176 *7 AT&T -- Liberty Media Group, Class A.................................... 129 *4 Comcast Corp., Class A................ 156 1 Gannett Co., Inc. .................... 33 ------ 494 ------ MEDICAL INSTRUMENTS & SUPPLIES -- 1.7% 3 Baxter International, Inc. ........... 142 1 Beckman Coulter, Inc. ................ 20 ------ 162 ------ METALS, MINERALS & MINING -- 8.7% 10 Alcoa, Inc. .......................... 374 3 Cooper Industries, Inc. .............. 135 2 Illinois Tool Works, Inc. ............ 95 2 Shell Transport & Trading Co., PLC, ADR.................................. 101 6 USX Corp. ............................ 121 ------ 826 ------ REAL ESTATE -- 1.2% 5 Archstone Communities Trust (REIT).... 116 ------ RETAIL -- 5.1% 10 Dollar General Corp. ................. 199 7 Family Dollar Stores, Inc. ........... 187 3 May Department Stores Co. ............ 99 ------ 485 ------ RUBBER & PLASTICS PRODUCTS -- 1.5% 3 NIKE, Inc., Class B................... 143 ------
The accompanying notes are an integral part of this financial statement. 55 57 ----------------------------------------------------------- HARTFORD VALUE HLS FUND ----------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- ------ COMMON STOCKS -- (CONTINUED) TRANSPORTATION -- 1.7% 3 Canadian National Railway Co. ........ $ 138 #0 PACCAR, Inc. ......................... 10 *1 Rockwell International Corp. ......... 17 ------ 165 ------ UTILITIES -- 7.2% #0 Exelon Corp. ......................... 19 1 FPL Group, Inc. ...................... 84 3 National Fuel Gas Co. ................ 177 2 Pinnacle West Capital Corp. .......... 71 *7 Republic Services, Inc. .............. 131 4 Scana Corp. .......................... 102 4 Southern Co. ......................... 88 ------ 672 ------ Total common stocks................... $9,166 ====== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 8.0% REPURCHASE AGREEMENT -- 8.0% $756 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01............ $ 756 ------ Total short-term securities........... $ 756 ====== DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $9,132)........ 96.7% $9,166 Total short-term securities (cost $756).................................. 8.0 756 ----- ------ Total investment in securities (total cost $9,888)........................... 104.7 9,922 Cash, receivables and other assets....... 3.7 354 Payable for securities purchased......... (8.4) (796) Other liabilities........................ (0.0) (1) ----- ------ Net assets............................... 100.0% $9,479 ===== ====== MARKET VALUE ------ SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 9,415 shares outstanding.... $ 9 Capital surplus.................................. 9,422 Accumulated undistributed net investment income......................................... 12 Accumulated undistributed net realized gain on investments.................................... 2 Unrealized appreciation of investments........... 34 ------ Net assets....................................... $9,479 ====== Class IA Net asset value per share ($7,875 / 7,821 shares outstanding) (600,000 shares authorized)........ $1.01 ===== Class IB Net asset value per share ($1,604 / 1,594 shares outstanding) (200,000 shares authorized)........ $1.01 =====
* Non-income producing during the period. # Due to the presentation of the financial statements in thousands, the number of shares round to zero. The accompanying notes are an integral part of this financial statement. 56 58 ----------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND ----------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- 95.5% BANKS -- 7.5% 236 Morgan (J.P.) Chase & Co., Inc. .... $ 10,543 257 Pacific Century Financial Corp. .... 6,620 237 U.S. Bankcorp....................... 5,397 +141 UnionBanCal Corp. .................. 4,762 180 Washington Mutual, Inc. ............ 6,744 -------- 34,066 -------- CHEMICALS -- 1.1% 106 du Pont (E.I.) de Nemours & Co. .... 5,094 -------- COMMUNICATIONS -- 6.5% *6 CIENA Corp. ........................ 593 *+13 Exodus Communications, Inc. ........ 233 85 Motorola, Inc. ..................... 1,403 *8 Network Appliance, Inc. ............ 926 *31 QUALCOMM, Inc. ..................... 1,789 176 Qwest Communications International...................... 5,603 *+95 Sonus Networks, Inc. ............... 2,224 *+54 Tekelec............................. 1,466 203 Verizon Communications, Inc. ....... 10,866 *332 WorldCom, Inc. ..................... 4,719 -------- 29,822 -------- COMPUTERS & OFFICE EQUIPMENT -- 5.4% *339 Cisco Systems, Inc. ............... 6,161 *108 Dell Computer Corp. ................ 2,814 82 Hewlett-Packard Co. ................ 2,354 59 International Business Machines Corp. ............................. 6,667 *64 Lexmark International, Inc. ........ 4,304 *142 Solectron Corp. .................... 2,589 -------- 24,889 -------- CONSUMER NON-DURABLES -- 5.2% 84 McKesson HBOC, Inc. ................ 3,107 70 Procter & Gamble Co. (The).......... 4,440 *118 Safeway, Inc. ...................... 5,640 196 Tyco International Ltd. ............ 10,677 -------- 23,864 -------- DRUGS -- 9.5% 134 Abbott Laboratories................. 6,448 78 American Home Products Corp. ....... 4,547 26 Eli Lilly & Co. .................... 1,909 *30 Forest Laboratories, Inc. .......... 2,137 *+88 Genzyme Corp. ...................... 5,392 *201 Immunex Corp. ...................... 3,566 96 Merck & Co., Inc. .................. 6,110 94 Pfizer, Inc. ....................... 3,765 157 Pharmacia Corp. .................... 7,205 60 Schering-Plough Corp. .............. 2,189 -------- 43,268 -------- ELECTRICAL EQUIPMENT -- 0.8% *57 Teradyne, Inc. ..................... 1,870 *84 Thermo Electron Corp. .............. 1,856 -------- 3,726 -------- ELECTRONICS -- 4.7% 304 General Electric Co. ............... 14,820 192 Intel Corp. ....................... 5,616 32 Texas Instruments, Inc. ............ 1,014 -------- 21,450 -------- ENERGY & SERVICES -- 6.7% 48 Chevron Corp. ...................... 4,326 76 Conoco, Inc., Class B............... 2,202 185 ExxonMobil Corp. ................... 16,195 71 Helmerich & Payne, Inc. ............ 2,182 *75 Rowan Cos., Inc. ................... 1,666 39 Royal Dutch Petroleum Co., NY Shares............................. 2,284 24 Texaco, Inc. ....................... 1,592 -------- 30,447 -------- FINANCIAL SERVICES -- 6.9% 79 American General Finance Corp. ..... 3,665 330 Citigroup, Inc. .................... 17,426 59 Fannie Mae.......................... 5,024 90 Merrill Lynch & Co., Inc. .......... 5,350 -------- 31,465 -------- FOOD, BEVERAGE & TOBACCO -- 4.8% 52 Pepsi Bottling Group, Inc. ......... 2,101 184 PepsiCo., Inc. ..................... 8,111 171 Philip Morris Cos., Inc. ........... 8,693 58 Reynolds (R.J.) Tobacco Holdings, Inc. .............................. 3,150 -------- 22,055 -------- FOREST & PAPER PRODUCTS -- 1.0% 42 Bowater, Inc. ...................... 1,897 51 Kimberly-Clark Corp. ............... 2,868 -------- 4,765 -------- HEALTH SERVICES -- 1.1% *100 Tenet Healthcare Corp. ............. 5,138 -------- INSURANCE -- 3.7% 110 AMBAC Financial Group, Inc. ........ 6,382 93 American International Group, Inc. .............................. 8,015 27 CIGNA Corp. ........................ 2,606 -------- 17,003 -------- MACHINERY -- 1.9% 117 United Technologies Corp. .......... 8,535 -------- MEDIA & ENTERTAINMENT -- 3.1% *+57 Adelphia Communications Corp., Class A ................................. 2,333 *293 AT&T -- Liberty Media Group, Class A.................................. 5,132 62 Gannett Co., Inc. .................. 4,053 +47 Knight-Ridder, Inc. ................ 2,757 -------- 14,275 --------
The accompanying notes are an integral part of this financial statement. 57 59 ----------------------------------------------------------- HARTFORD GROWTH AND INCOME HLS FUND ----------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE --------- -------- COMMON STOCKS -- (CONTINUED) MEDICAL INSTRUMENTS & SUPPLIES -- 2.1% 114 Becton, Dickinson & Co. ............ $ 4,076 107 Johnson & Johnson Co. .............. 5,325 -------- 9,401 -------- METALS, MINERALS & MINING -- 1.2% 38 Alcoa, Inc. ........................ 1,478 78 Engelhard Corp. .................... 2,001 +189 Freeport-McMoRan Copper & Gold, Inc., Class A...................... 1,899 -------- 5,378 -------- RETAIL -- 6.3% *140 Bed Bath & Beyond, Inc. ............ 4,203 214 Dollar General Corp. ............... 4,163 96 Home Depot, Inc. (The).............. 4,471 *88 Kroger Co. (The).................... 2,190 48 Lowe's Cos., Inc. .................. 3,504 *306 Staples, Inc. ...................... 4,890 109 Wal-Mart Stores, Inc. .............. 5,300 -------- 28,721 -------- RUBBER & PLASTICS PRODUCTS -- 0.5% 54 NIKE, Inc., Class B................. 2,280 -------- SOFTWARE & SERVICES -- 10.4% *149 AOL Time Warner, Inc. .............. 7,881 84 First Data Corp. ................... 5,384 *133 i2 Technologies, Inc. .............. 2,629 *68 Intuit, Inc. ....................... 2,699 *290 Microsoft Corp. .................... 21,163 *133 Oracle Corp. ....................... 2,519 *87 Rational Software Corp. ............ 2,443 *+40 VeriSign, Inc. ..................... 2,392 -------- 47,110 -------- TRANSPORTATION -- 1.3% 91 Delta Air Lines, Inc. .............. 4,002 72 USFreightways Corp. ................ 2,133 -------- 6,135 -------- UTILITIES -- 3.8% *98 Calpine Corp. ...................... 3,704 64 El Paso Energy Corp. ............... 3,352 113 Exelon Corp. ....................... 7,254 64 Pinnacle West Capital Corp. ........ 3,053 -------- 17,363 -------- Total common stocks................. $436,250 ======== PRINCIPAL MARKET AMOUNT VALUE --------- -------- SHORT-TERM SECURITIES -- 2.6% REPURCHASE AGREEMENT -- 2.6% $ 11,942 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01................ $ 11,942 -------- Total short-term securities......... $ 11,942 ======== MARKET VALUE -------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $448,544)..... 95.5% $436,250 Total short-term securities (cost $11,942).............................. 2.6 11,942 ----- -------- Total investment in securities (total cost $460,486)........................ 98.1 448,192 Cash, receivables and other assets...... 2.9 13,101 Securities lending collateral (See Note 2(i))................................. 3.0 13,884 Payable for securities purchased........ (1.0) (4,398) Payable for Fund shares redeemed........ (0.0) (35) Securities lending collateral payable to brokers (See Note 2(i))............... (3.0) (13,884) Other liabilities....................... (0.0) (6) ----- -------- Net assets.............................. 100.0% $456,854 ===== ======== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 367,461 shares outstanding.................................. $ 367 Capital surplus................................ 489,433 Accumulated undistributed net investment income....................................... 1,029 Distribution in excess of net realized gain on investments.................................. (21,390) Unrealized depreciation of investments......... (12,294) Unrealized depreciation of futures contracts ++................................. (291) -------- Net assets..................................... $456,854 ======== Class IA Net assets value per share ($421,097 / 338,607 shares outstanding) (600,000 shares authorized)..................................... $1.24 ===== Class IB Net assets value per share ($35,757 / 28,854 shares outstanding) (200,000 shares authorized)..................................... $1.24 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). ++ The Fund had 33 Standard & Poor's 500 September 2001 futures contracts open as of June 30, 2001. These contracts had a value of $10,162 as of June 30, 2001 and were collateralized by $569 of cash. (Number of contracts not in $000's) The accompanying notes are an integral part of this financial statement. 58 60 ------------------------------------------------------------ HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 96.8% BANKS -- 9.3% 196 Freddie Mac........................ $ 13,741 1,335 Morgan (J.P.) Chase & Co., Inc. ... 59,550 ++1,376 Pacific Century Financial Corp. ... 35,479 ++1,574 People's Bank...................... 36,685 1,555 U.S. Bankcorp...................... 35,438 522 UnionBanCal Corp. ................. 17,598 641 Wachovia Corp. .................... 45,636 1,671 Washington Mutual, Inc. ........... 62,740 ---------- 306,867 ---------- CHEMICALS -- 3.5% 215 Avery Dennison Corp. .............. 10,971 1,333 du Pont (E.I.) de Nemours & Co. ... 64,320 997 International Flavors & Fragrances, Inc. ............................. 25,055 381 Rohm & Haas Co. ................... 12,528 *++128 Syngenta AG, ADR................... 1,379 ---------- 114,253 ---------- COMMUNICATIONS -- 6.8% 1,661 AT&T Corp. ........................ 36,538 668 Motorola, Inc. .................... 11,057 1,218 Qwest Communications International..................... 38,826 573 SBC Communications, Inc. .......... 22,943 2,177 Verizon Communications, Inc. ...... 116,488 ---------- 225,852 ---------- COMPUTERS & OFFICE EQUIPMENT --2.9% 318 Compaq Computer Corp. ............. 4,932 603 Hewlett-Packard Co. ............... 17,254 302 International Business Machines Corp. ............................ 34,160 215 Minnesota Mining & Manufacturing Co. .............................. 24,474 348 Pitney Bowes, Inc. ................ 14,645 ---------- 95,465 ---------- CONSUMER NON-DURABLES -- 3.0% 596 McKesson HBOC, Inc. ............... 22,127 1,192 Procter & Gamble Co. (The)......... 76,030 ---------- 98,157 ---------- DRUGS -- 8.1% 1,050 Abbott Laboratories................ 50,396 672 American Home Products Corp. ...... 39,283 ++867 AstraZeneca Group PLC, ADR......... 40,546 323 Bristol-Myers Squibb Co. .......... 16,872 374 Eli Lilly & Co. ................... 27,639 525 Merck & Co., Inc. ................. 33,546 1,270 Pharmacia Corp. ................... 58,378 ---------- 266,660 ---------- ELECTRICAL EQUIPMENT -- 0.6% 274 Eaton Corp. ....................... 19,186 ---------- ELECTRONICS -- 3.1% 1,887 General Electric Co. .............. 91,985 383 Intel Corp. ....................... 11,209 ---------- 103,194 ---------- ENERGY & SERVICES -- 11.6% 859 Chevron Corp. ..................... 77,730 1,362 Conoco, Inc., Class B.............. 39,368 1,602 ExxonMobil Corp. .................. 139,933 1,045 Royal Dutch Petroleum Co., NY Shares............................ 60,886 531 Schlumberger Ltd. ................. 27,973 156 Suncor Energy, Inc. ............... 3,996 ++487 Total Fina S.A., ADR............... 34,152 ---------- 384,038 ---------- FINANCIAL SERVICES -- 5.4% 2,774 Citigroup, Inc. ................... 146,599 520 Merrill Lynch & Co., Inc. ......... 30,816 ---------- 177,415 ---------- FOOD, BEVERAGE & TOBACCO -- 7.3% 2,834 ConAgra Foods, Inc. ............... 56,142 697 McCormick & Co., Inc. ............. 29,292 728 PepsiCo., Inc. .................... 32,169 1,858 Philip Morris Cos., Inc. .......... 94,283 ++520 Reynolds (R.J.) Tobacco Holdings, Inc. ............................. 28,403 ---------- 240,289 ---------- FOREST & PAPER PRODUCTS -- 2.7% 853 Abitibi-Consolidated, Inc. ........ 6,522 155 Bowater, Inc. ..................... 6,921 694 Kimberly-Clark Corp. .............. 38,772 339 Temple-Inland, Inc. ............... 18,081 367 Weyerhaeuser Co. .................. 20,174 ---------- 90,470 ---------- INSURANCE -- 4.3% 355 CIGNA Corp. ....................... 34,016 477 Marsh & McLennan Cos., Inc. ....... 48,172 563 MBIA, Inc. ........................ 31,320 ++347 XL Capital Ltd., Class A........... 28,505 ---------- 142,013 ---------- MACHINERY -- 2.6% *++14 Axcelis Technologies, Inc. ........ 207 899 Caterpillar, Inc. ................. 44,985 547 United Technologies Corp. ......... 40,066 ---------- 85,258 ---------- MEDIA & ENTERTAINMENT -- 2.6% 811 Gannett Co., Inc. ................. 53,425 ++527 Knight-Ridder, Inc. ............... 31,221 ---------- 84,646 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.4% 947 Baxter International, Inc. ........ 46,393 ----------
The accompanying notes are an integral part of this financial statement. 59 61 ------------------------------------------------------------ HARTFORD DIVIDEND AND GROWTH HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) METALS, MINERALS & MINING -- 1.7% 827 Alcoa, Inc. ....................... $ 32,580 634 Lockheed Martin Corp. ............. 23,486 ---------- 56,066 ---------- REAL ESTATE -- 2.9% 686 Archstone Communities Trust (REIT)............................ 17,680 1,646 Equity Office Properties Trust..... 52,060 329 Kimco Realty Corp. (REIT).......... 15,597 296 Liberty Property Trust (REIT)...... 8,759 ---------- 94,096 ---------- RETAIL -- 2.4% 1,358 Family Dollar Stores, Inc. ........ 34,798 604 McDonald's Corp. .................. 16,352 227 Target Corp. ...................... 7,854 436 Wal-Mart Stores, Inc. ............. 21,257 ---------- 80,261 ---------- SOFTWARE & SERVICES -- 3.7% 422 Electronic Data Systems Corp. ..... 26,369 800 First Data Corp. .................. 51,387 *627 Microsoft Corp. ................... 45,742 ---------- 123,498 ---------- TRANSPORTATION -- 4.4% 578 Boeing Co. (The)................... 32,142 635 Canadian Pacific Ltd. ............. 24,618 536 Delta Air Lines, Inc. ............. 23,640 *273 Fedex Corp. ....................... 10,987 1,560 Ford Motor Co. .................... 38,310 497 USFreightways Corp. ............... 14,673 ---------- 144,370 ---------- UTILITIES -- 6.5% 486 Duke Energy Corp. ................. 18,967 694 El Paso Energy Corp. .............. 36,468 1,055 Exelon Corp. ...................... 67,615 675 FPL Group, Inc. ................... 40,654 361 Montana Power Co. (The)............ 4,185 735 Pinnacle West Capital Corp. ....... 34,839 82 PPL Corp. ......................... 4,510 ++243 UtiliCorp. United, Inc. ........... 7,419 ---------- 214,657 ---------- Total common stocks................ $3,193,104 ========== PRINCIPAL MARKET AMOUNT VALUE --------- ---------- EQUITY LINKED NOTES -- 0.6% MEDIA & ENTERTAINMENT -- 0.6% $ 160 Tribune Co. 2.00% due 01/15/29..... $ 19,019 ---------- Total equity linked notes.......... $ 19,019 ========== SHORT-TERM SECURITIES -- 2.7% REPURCHASE AGREEMENT -- 2.7% $89,454 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.... $ 89,454 ---------- Total short-term securities........ $ 89,454 ========== DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $2,828,734)......................... 96.8% $3,193,104 Total equity linked securities (cost $25,120)............................ 0.6 19,019 Total short-term securities (cost $89,454)............................ 2.7 89,454 ----- ---------- Total investment in securities (total cost $2,943,308).................... 100.1 3,301,577 Cash, receivables and other assets.... 0.3 9,151 Securities lending collateral (See Note 2(i)).......................... 3.8 124,589 Payable for securities purchased...... (0.4) (10,635) Securities lending collateral payable to brokers (See Note 2(i)).......... (3.8) (124,589) Other liabilities..................... (0.0) (110) ----- ---------- Net assets............................ 100.0% $3,299,983 ===== ========== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 4,000,000 shares authorized; 1,683,446 shares outstanding.......................... $ 168,345 Capital surplus............................... 2,711,938 Accumulated undistributed net investment income...................................... 24,274 Accumulated undistributed net realized gain on investments................................. 37,156 Unrealized appreciation of investments........ 358,269 Unrealized appreciation of other assets and liabilities in foreign currencies........... 1 ---------- Net assets.................................... $3,299,983 ========== Class IA Net asset value per share ($3,210,164 / 1,637,596 shares outstanding) (3,500,000 shares authorized)..................................... $1.96 ===== Class IB Net asset value per share ($89,819 / 45,850 shares outstanding) (500,000 shares authorized)........ $1.96 =====
* Non-income producing during the period ++ All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). The accompanying notes are an integral part of this financial statement. 60 62 ------------------------------------------------------------ HARTFORD INDEX HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- 99.8% AEROSPACE & DEFENSE -- 0.1% *71 Raytheon Co. ...................... $ 1,883 ---------- APPAREL & TEXTILE -- 0.1% 10 Liz Claiborne, Inc. ............... 525 22 V. F. Corp. ....................... 814 ---------- 1,339 ---------- BANK -- 9.4% 264 American Express Co. .............. 10,239 74 AmSouth Bancorporation............. 1,366 320 Bank of America Corp. ............. 19,190 147 Bank of New York Co., Inc. (The)... 7,041 232 Bank One Corp. .................... 8,323 81 BB&T Corp. ........................ 2,982 42 Capital One Financial Corp. ....... 2,493 41 Charter One Financial.............. 1,316 36 Comerica, Inc. .................... 2,054 24 Countrywide Credit Industries, Inc. ............................. 1,081 200 Fannie Mae......................... 16,991 115 Fifth Third Bancorp................ 6,891 196 First Union Corp. ................. 6,839 216 Fleet Boston Financial Corp. ...... 8,523 138 Freddie Mac........................ 9,672 32 Golden West Financial Corp. ....... 2,032 93 Household International, Inc. ..... 6,174 50 Huntington Bancshares, Inc. ....... 820 85 KeyCorp. .......................... 2,205 170 MBNA Corp. ........................ 5,601 95 Mellon Financial Corp. ............ 4,378 396 Morgan (J.P.) Chase & Co., Inc. ... 17,662 120 National City Corp. ............... 3,688 44 Northern Trust Corp. .............. 2,770 58 PNC Financial Services Group....... 3,789 +57 Providian Financial Corp. ......... 3,376 +45 Regions Financial Corp. ........... 1,451 68 SouthTrust Corp. .................. 1,760 65 State Street Corp. ................ 3,214 58 SunTrust Banks, Inc. .............. 3,773 58 Synovus Financial Corp. ........... 1,815 380 U.S. Bankcorp...................... 8,663 27 Union Planters Corp. .............. 1,189 33 USA Education, Inc. ............... 2,374 42 Wachovia Corp. .................... 2,978 175 Washington Mutual, Inc. ........... 6,574 342 Wells Fargo & Co. ................. 15,896 19 Zions Bancorporation............... 1,092 ---------- 208,275 ---------- BUSINESS SERVICES -- 0.8% *170 Cendant Corp. ..................... 3,313 *+48 Concord EFS, Inc. ................. 2,502 *34 Convergys Corp. ................... 1,032 +29 Equifax, Inc. ..................... 1,048 16 Fluor Corp. ....................... 711 75 Interpublic Group of Cos., Inc. ... 2,193 37 Omnicom Group, Inc................. 3,172 75 Paychex, Inc. ..................... 2,984 *35 Robert Half International, Inc..... 869 ---------- 17,824 ---------- CHEMICALS -- 1.2% 46 Air Products & Chemicals, Inc...... 2,084 22 Avery Dennison Corp................ 1,127 179 Dow Chemical Co. (The)............. 5,954 208 du Pont (E.I.) de Nemours & Co..... 10,034 15 Eastman Chemical Co................ 731 +10 Great Lakes Chemical Corp.......... 309 19 International Flavors & Fragrances, Inc. ............................. 481 34 PPG Industries, Inc................ 1,770 32 Praxair, Inc....................... 1,505 44 Rohm & Haas Co..................... 1,444 ---------- 25,439 ---------- COMMUNICATIONS -- 7.0% *156 ADC Telecommunications, Inc. ...... 1,029 62 ALLTEL Corp. ...................... 3,822 *16 Andrew Corp. ...................... 297 688 AT&T Corp. ........................ 15,143 *57 Avaya, Inc. ....................... 774 374 BellSouth Corp. ................... 15,059 28 CenturyTel, Inc. .................. 852 *+34 Comverse Technology, Inc. ......... 1,962 *+177 Global Crossing Ltd. .............. 1,528 679 Lucent Technologies, Inc. ......... 4,212 438 Motorola, Inc. .................... 7,254 *65 Network Appliance, Inc. ........... 890 *153 NEXTEL Communications, Inc., Class A................................. 2,670 636 Nortel Network Holdings Corp. ..... 5,778 *151 QUALCOMM, Inc. .................... 8,836 331 Qwest Communications International..................... 10,562 672 SBC Communications, Inc. .......... 26,912 32 Scientific-Atlanta, Inc. .......... 1,319 +177 Sprint Corp. ...................... 3,777 *187 Sprint PCS Group................... 4,513 *82 Tellabs, Inc. ..................... 1,573 540 Verizon Communications, Inc. ...... 28,864 576 WorldCom, Inc. .................... 8,181 ---------- 155,807 ---------- COMPUTERS & OFFICE EQUIPMENT --5.9% *70 Apple Computer, Inc. .............. 1,619 *1,460 Cisco Systems, Inc. ............... 26,572 337 Compaq Computer Corp. ............. 5,219 *519 Dell Computer Corp. ............... 13,569 *440 EMC Corp. ......................... 12,788 *64 Gateway, Inc. ..................... 1,060 388 Hewlett-Packard Co. ............... 11,083 347 International Business Machines Corp. ............................ 39,165 *38 Jabil Circuit, Inc. ............... 1,179 *26 Lexmark International, Inc. ....... 1,723 79 Minnesota Mining & Manufacturing Co. .............................. 9,004
The accompanying notes are an integral part of this financial statement. 61 63 ------------------------------------------------------------ HARTFORD INDEX HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED) *113 Palm, Inc. ........................ $ 687 49 Pitney Bowes, Inc. ................ 2,075 *130 Solectron Corp. ................... 2,385 45 Symbol Technologies, Inc. ......... 1,003 ---------- 129,131 ---------- CONSTRUCTION -- 0.2% 12 Centex Corp. ...................... 481 86 Halliburton Co. ................... 3,045 9 Kaufman and Broad Home Corp. ...... 261 12 McDermott International, Inc. ..... 142 8 Pulte Corp. ....................... 356 ---------- 4,285 ---------- CONSUMER DURABLES -- 0.4% 185 Corning, Inc. ..................... 3,100 19 Grainger (W.W.), Inc. ............. 782 17 Johnson Controls, Inc. ............ 1,245 39 Leggett & Platt, Inc. ............. 864 53 Newell Rubbermaid, Inc. ........... 1,338 *21 TMP Worldwide Inc. ................ 1,259 26 Visteon Corp. ..................... 482 ---------- 9,070 ---------- CONSUMER NON-DURABLES -- 4.0% +11 Alberto-Culver Co., Class B........ 470 47 Avon Products, Inc. ............... 2,187 14 Brown-Forman Corp., Class B........ 877 89 Cardinal Health, Inc. ............. 6,138 47 Clorox Co. (The)................... 1,600 112 Colgate-Palmolive Co. ............. 6,607 58 Eastman Kodak Co. ................. 2,700 25 Ecolab, Inc. ...................... 1,042 210 Gillette Co. (The)................. 6,098 34 Hasbro, Inc. ...................... 494 86 Mattel, Inc. ...................... 1,627 57 McKesson HBOC, Inc. ............... 2,106 258 Procter & Gamble Co. (The)......... 16,488 *101 Safeway, Inc. ..................... 4,841 26 SuperValu, Inc. ................... 461 134 SYSCO Corp. ....................... 3,642 29 Tiffany & Co. ..................... 1,058 386 Tyco International Ltd. ........... 21,058 114 Unilever N.V., NY Shares........... 6,794 138 Xerox Corp. ....................... 1,325 ---------- 87,613 ---------- CONSUMER SERVICES -- 0.1% +34 Cintas Corp. ...................... 1,563 18 H&R Block, Inc. ................... 1,176 12 Ryder System, Inc. ................ 233 ---------- 2,972 ---------- DRUGS -- 8.8% 309 Abbott Laboratories................ 14,833 262 American Home Products Corp. ...... 15,320 *208 Amgen, Inc. ....................... 12,629 *30 Biogen, Inc. ...................... 1,609 388 Bristol-Myers Squibb Co. .......... 20,275 *38 Chiron Corp. ...................... 1,932 224 Eli Lilly & Co. ................... 16,588 *35 Forest Laboratories, Inc. ......... 2,503 34 King Pharmaceuticals, Inc. ........ 1,838 *42 MedImmune, Inc. ................... 2,001 457 Merck & Co., Inc. ................. 29,235 1,259 Pfizer, Inc. ...................... 50,427 260 Pharmacia Corp. ................... 11,924 292 Schering-Plough Corp. ............. 10,574 15 Sigma-Aldrich Corp. ............... 580 21 Watson Pharmaceuticals, Inc. ...... 1,301 ---------- 193,569 ---------- ELECTRICAL EQUIPMENT -- 0.7% *91 Agilent Technologies, Inc. ........ 2,961 26 Allergan, Inc. .................... 2,251 42 Applera Corp -- Applied Biosystems Group............................. 1,128 28 Danaher Corp. ..................... 1,588 14 Eaton Corp. ....................... 963 *37 KLA-Tencor Corp. .................. 2,156 9 Millipore Corp. ................... 573 20 PerkinElmer, Inc. ................. 553 19 Tektronix, Inc. ................... 505 *35 Teradyne, Inc. .................... 1,154 *36 Thermo Electron Corp. ............. 797 ---------- 14,629 ---------- ELECTRONICS -- 8.7% *69 Advanced Micro Devices, Inc. ...... 1,980 *77 Altera Corp. ...................... 2,239 *39 American Power Conversion.......... 614 *72 Analog Devices, Inc. .............. 3,102 *60 Applied Micro Circuits Corp. ...... 1,030 *52 Broadcom Corp., Class A............ 2,219 *49 Conexant Systems, Inc. ............ 438 86 Emerson Electric Co. .............. 5,174 1,982 General Electric Co. .............. 96,601 1,342 Intel Corp. ....................... 39,240 *263 JDS Uniphase Corp. ................ 3,347 63 Linear Technology Corp. ........... 2,799 *72 LSI Logic Corp. ................... 1,355 *66 Maxim Integrated Products, Inc. ... 2,896 15 Maytag Corp. ...................... 441 *119 Micron Technology, Inc. ........... 4,888 +39 Molex, Inc. ....................... 1,426 *35 National Semiconductor Corp. ...... 1,006 8 National Service Industries, Inc. ............................. 186 *28 Novellus Systems, Inc. ............ 1,613 *+16 Power-One, Inc. ................... 260 *+18 Qlogic Corp. ...................... 1,186 *64 Sanmina Corp. ..................... 1,494 346 Texas Instruments, Inc. ........... 10,906 11 Thomas & Betts Corp. .............. 253
The accompanying notes are an integral part of this financial statement. 62 64 ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) ELECTRONICS -- (CONTINUED) 37 Vitesse Semiconductor Corp. ....... $ 770 13 Whirlpool Corp. ................... 834 66 Xilinx, Inc. ...................... 2,735 ---------- 191,032 ---------- ENERGY & SERVICES -- 6.7% 18 Amerada Hess Corp. ................ 1,430 50 Anadarko Petroleum Corp. .......... 2,700 25 Apache Corp. ...................... 1,267 14 Ashland, Inc. ..................... 555 42 Burlington Resources, Inc. ........ 1,687 128 Chevron Corp. ..................... 11,578 125 Conoco, Inc., Class B.............. 3,602 26 Devon Energy Corp. ................ 1,350 149 Enron Corp. ....................... 7,292 23 EOG Resources, Inc. ............... 825 688 ExxonMobil Corp. .................. 60,107 19 Kerr-McGee Corp. .................. 1,253 *29 Nabors Industries, Inc. ........... 1,095 *27 Noble Drilling Corp. .............. 881 74 Occidental Petroleum Corp. ........ 1,963 +51 Phillips Petroleum Co. ............ 2,908 *19 Rowan Cos., Inc. .................. 418 428 Royal Dutch Petroleum Co., NY Shares......................... 24,927 114 Schlumberger Ltd. ................. 6,017 17 Sunoco, Inc. ...................... 615 110 Texaco, Inc. ...................... 7,326 31 Tosco Corp. ....................... 1,357 63 Transocean Sedco Forex, Inc. ...... 2,613 49 Unocal Corp. ...................... 1,659 62 USX-Marathon Group................. 1,818 ---------- 147,243 ---------- FINANCIAL SERVICES -- 4.5% 104 American General Finance Corp. .... 4,809 21 Bear Stearns Cos., Inc. (The)...... 1,235 277 Charles Schwab Corp. (The)......... 4,232 1,003 Citigroup, Inc. ................... 53,005 53 Franklin Resources, Inc. .......... 2,418 61 John Hancock Financial Services, Inc. ............................. 2,468 49 Lehman Brothers Holdings, Inc. .... 3,824 167 Merrill Lynch & Co., Inc. ......... 9,919 222 Morgan Stanley Dean Witter & Co. .............................. 14,257 44 Stilwell Financial, Inc. .......... 1,471 25 T Rowe Price Group, Inc. .......... 920 ---------- 98,558 ---------- FOOD, BEVERAGE & TOBACCO -- 4.2% 7 Adolph Coors Co., Class B.......... 372 179 Anheuser-Busch Cos., Inc. ......... 7,377 126 Archer-Daniels-Midland Co. ........ 1,639 81 Campbell Soup Co. ................. 2,096 496 Coca-Cola Co. (The)................ 22,331 84 Coca-Cola Enterprises, Inc. ....... 1,372 107 ConAgra Foods, Inc. ............... 2,123 57 General Mills, Inc. ............... 2,487 70 Heinz (H.J.) Co. .................. 2,845 21 Hercules, Inc. .................... 241 27 Hershey Foods Corp. ............... 1,682 81 Kellogg Co. ....................... 2,347 29 Pepsi Bottling Group, Inc. ........ 1,151 292 PepsiCo., Inc. .................... 12,909 439 Philip Morris Cos., Inc. .......... 22,268 26 Quaker Oats Co. (The).............. 2,412 62 Ralston Purina Co. ................ 1,858 157 Sara Lee Corp. .................... 2,973 33 UST, Inc. ......................... 940 45 Wrigley, (Wm.) Jr. Co. ............ 2,116 ---------- 93,539 ---------- FOREST & PAPER PRODUCTS -- 0.8% 11 Bemis Co., Inc. ................... 425 11 Boise Cascade Corp. ............... 400 45 Georgia-Pacific Corp. ............. 1,528 96 International Paper Co. ........... 3,438 106 Kimberly-Clark Corp. .............. 5,939 21 Louisiana-Pacific Corp. ........... 242 20 Mead Corp. (The)................... 538 *31 Pactiv Corp. ...................... 420 6 Potlatch Corp. .................... 192 10 Temple-Inland, Inc. ............... 527 20 Westvaco Corp. .................... 489 43 Weyerhaeuser Co. .................. 2,362 22 Willamette Industries, Inc. ....... 1,082 ---------- 17,582 ---------- HEALTH SERVICES -- 0.5% 107 HCA -- The Healthcare Co. ......... 4,846 *78 HEALTH SOUTH Corp. ................ 1,242 *21 Manor Care, Inc. .................. 652 *65 Tenet Healthcare Corp. ............ 3,338 ---------- 10,078 ---------- HOTELS & GAMING -- 0.2% 74 Hilton Hotels Corp................. 853 49 Marriott International, Inc., Class A................................. 2,301 40 Starwood Hotels & Resorts Worldwide, Inc.................... 1,476 ---------- 4,630 ---------- INSURANCE -- 4.4% *30 Aetna, Inc......................... 765 109 AFLAC, Inc......................... 3,433 150 Allstate Corp. (The)............... 6,599 22 AMBAC Financial Group, Inc......... 1,272 483 American International Group, Inc............................... 41,504 52 Aon Corp........................... 1,827 36 Chubb Corp. (The).................. 2,809 31 CIGNA Corp......................... 2,981 33 Cincinnati Financial Corp.......... 1,321 +70 Conseco, Inc....................... 955 *34 Humana, Inc........................ 330
63 65 ------------------------------------------------------------ HARTFORD INDEX HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) INSURANCE -- (CONTINUED) 32 Jefferson-Pilot Corp. ............. $ 1,523 39 Lincoln National Corp. ............ 2,016 41 Loews Corp. ....................... 2,635 55 Marsh & McLennan Cos., Inc. ....... 5,556 31 MBIA, Inc. ........................ 1,706 *+156 MetLife, Inc. ..................... 4,817 22 MGIC Investment Corp. ............. 1,609 15 Progressive Corp. (The)............ 2,060 27 Safeco Corp. ...................... 783 44 St. Paul Cos., Inc. (The).......... 2,252 26 Torchmark Corp. ................... 1,047 63 UnitedHealth Group, Inc. .......... 3,904 50 UNUMProvident Corp. ............... 1,609 13 Wellpoint Health Networks, Inc. ... 1,179 ---------- 96,492 ---------- MACHINERY -- 1.3% *162 Applied Materials, Inc. ........... 7,966 67 Baker Hughes, Inc. ................ 2,244 16 Black & Decker Corp. .............. 639 68 Caterpillar, Inc. ................. 3,426 8 Cummings Inc. ..................... 319 47 Deere & Co. ....................... 1,777 41 Dover Corp. ....................... 1,528 *6 FMC Corp. ......................... 418 32 Ingersoll-Rand Co. ................ 1,314 25 Pall Corp. ........................ 577 23 Parker-Hannifin Corp. ............. 989 17 Stanley Works (The)................ 707 12 Timken Co. (The)................... 202 94 United Technologies Corp. ......... 6,884 ---------- 28,990 ---------- MEDIA & ENTERTAINMENT -- 2.8% +13 American Greetings Corp. .......... 141 *117 Clear Channel Communications....... 7,348 *189 Comcast Corp., Class A............. 8,185 23 Donnelly (R.R.) & Sons Co. ........ 695 17 Dow Jones & Co., Inc. ............. 1,027 53 Gannett Co., Inc. ................. 3,474 15 Harcourt General, Inc. ............ 851 *23 Harrah's Entertainment, Inc. ...... 823 +15 Knight-Ridder, Inc. ............... 870 39 McGraw-Hill Cos., Inc. (The)....... 2,583 10 Meredith Corp. .................... 353 32 New York Times Co. (The), Class.... 1,334 60 Tribune Co. ....................... 2,383 +42 Univision Communications, Inc. .... 1,780 355 Viacom, Inc., Class B.............. 18,375 417 Walt Disney Co. (The).............. 12,045 ---------- 62,267 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 2.6% 10 Bard (C.R.), Inc. ................. 579 11 Bausch & Lomb, Inc. ............... 384 118 Baxter International, Inc. ........ 5,792 51 Becton, Dickinson & Co. ........... 1,837 36 Biomet, Inc. ...................... 1,718 *80 Boston Scientific Corp. ........... 1,361 61 Guidant Corp. ..................... 2,206 604 Johnson & Johnson Co. ............. 30,203 241 Medtronic, Inc. ................... 11,094 *17 St. Jude Medical, Inc. ............ 1,019 39 Stryker Corp. ..................... 2,145 ---------- 58,338 ---------- METALS, MINERALS & MINING -- 1.3% 64 Alcan, Inc. ....................... 2,674 172 Alcoa, Inc. ....................... 6,784 16 Allegheny Technologies, Inc. ...... 289 5 Ball Corp. ........................ 262 79 Barrick Gold Corp. ................ 1,196 19 Cooper Industries, Inc. ........... 741 12 Crane Co. ......................... 366 26 Engelhard Corp. ................... 671 31 Fortune Brands, Inc. .............. 1,172 *28 Freeport-McMoRan Copper & Gold, Inc., Class B..................... 314 52 Homestake Mining Co. .............. 405 61 Illinois Tool Works, Inc. ......... 3,839 36 Inco Ltd. ......................... 627 87 Lockheed Martin Corp. ............. 3,212 92 Masco Corp. ....................... 2,290 39 Newmont Mining Corp. .............. 725 16 Nucor Corp. ....................... 762 16 Phelps Dodge Corp. ................ 654 65 Placer Dome, Inc. ................. 642 12 Snap-On, Inc. ..................... 278 18 USX Corp. ......................... 354 +20 Vulcan Materials Co. .............. 1,087 17 Worthington Industries, Inc. ...... 230 ---------- 29,574 ---------- RESEARCH & TESTING FACILITIES -- 0.1% 31 Moody's Corp. ..................... 1,053 *23 Quintiles Transnational Corp. ..... 583 ---------- 1,636 ---------- RETAIL -- 6.5% 81 Albertson's, Inc. ................. 2,422 *22 AutoZone, Inc. .................... 839 *58 Bed Bath & Beyond, Inc. ........... 1,725 *42 Best Buy Co., Inc. ................ 2,653 *22 Big Lots Inc. ..................... 307 41 Circuit City Stores Group.......... 746 *90 Costco Wholesale Corp. ............ 3,682 78 CVS Corp. ......................... 3,025 24 Darden Restaurants, Inc. .......... 656 17 Dillard's, Inc., Class A........... 257 66 Dollar General Corp. .............. 1,285 *39 Federated Department Stores, Inc. ............................. 1,678 171 Gap, Inc. (The).................... 4,971 465 Home Depot, Inc. (The)............. 21,667
The accompanying notes are an integral part of this financial statement. 64 66 ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) RETAIL -- (CONTINUED) *98 Kmart Corp. ....................... $ 1,122 *66 Kohl's Corp. ...................... 4,163 *162 Kroger Co. (The)................... 4,043 85 Limited, Inc. (The)................ 1,406 77 Lowe's Cos., Inc. ................. 5,553 60 May Department Stores Co. ......... 2,040 258 McDonald's Corp. .................. 6,982 27 Nordstrom, Inc. ................... 493 *59 Office Depot, Inc. ................ 612 52 Penney (J.C.) Co., Inc. ........... 1,383 37 RadioShack Corp. .................. 1,126 66 Sears Roebuck & Co. ............... 2,773 31 Sherman-Williams Co. (The)......... 694 *91 Staples, Inc. ..................... 1,455 *76 Starbucks Corp. ................... 1,743 179 Target Corp. ...................... 6,207 56 TJX Cos., Inc. (The)............... 1,783 *40 Toys R Us, Inc. ................... 978 *29 Tricon Global Restaurants, Inc. ... 1,283 892 Wal-Mart Stores, Inc. ............. 43,525 203 Walgreen Co. ...................... 6,938 23 Wendy's International, Inc. ....... 582 28 Winn-Dixie Stores, Inc. ........... 734 ---------- 143,531 ---------- RUBBER & PLASTICS PRODUCTS -- 0.2% 14 Cooper Tire & Rubber Co. .......... 204 +32 Goodyear Tire & Rubber Co. (The)... 888 54 NIKE, Inc., Class B................ 2,272 *+12 Reebok International Ltd. ......... 370 +17 Sealed Air Corp. .................. 618 11 Tupperware Corp. .................. 267 ---------- 4,619 ---------- SOFTWARE & SERVICES -- 9.5% 48 Adobe Systems, Inc. ............... 2,242 *884 AOL Time Warner, Inc. ............. 46,844 +11 Autodesk, Inc. .................... 399 125 Automatic Data Processing, Inc. ... 6,193 *49 BMC Software, Inc. ................ 1,097 *+54 BroadVision, Inc. ................. 271 *38 Cabletron Systems, Inc. ........... 861 *37 Citrix Systems, Inc. .............. 1,287 115 Computer Associates International, Inc. ............................. 4,140 *34 Computer Sciences Corp. ........... 1,167 *73 Compuware Corp. ................... 1,026 14 Deluxe Corp. ...................... 409 93 Electronic Data Systems Corp. ..... 5,832 78 First Data Corp. .................. 5,018 *25 Fiserv, Inc. ...................... 1,587 59 IMS Health, Inc. .................. 1,673 *42 Intuit, Inc. ...................... 1,664 *17 Mercury Interactive Corp. ......... 988 *1,074 Microsoft Corp. ................... 78,373 *19 NCR Corp. ......................... 902 *63 Novell, Inc. ...................... 357 *1,120 Oracle Corp. ...................... 21,277 *53 Parametric Technology Corp. ....... 737 *59 PeopleSoft, Inc. .................. 2,889 *24 Sapient Corp. ..................... 238 *90 Siebel Systems, Inc. .............. 4,240 *650 Sun Microsystems, Inc. ............ 10,213 63 Unisys Corp. ...................... 928 79 VERITAS Software Corp. ............ 5,269 113 Yahoo!, Inc. ...................... 2,261 ---------- 210,382 ---------- TRANSPORTATION -- 3.2% *31 AMR Corp. ......................... 1,105 174 Boeing Co. (The)................... 9,676 18 Brunswick Corp. ................... 421 78 Burlington Northern Santa Fe Corp. ............................ 2,360 117 Carnival Corp., Class A............ 3,580 43 CSX Corp. ......................... 1,544 29 Dana Corp. ........................ 686 112 Delphi Automotive Systems Corp. ... 1,779 25 Delta Air Lines, Inc. ............. 1,082 *61 Fedex Corp. ....................... 2,464 365 Ford Motor Co. .................... 8,960 40 General Dynamics Corp. ............ 3,116 110 General Motors Corp. .............. 7,046 34 Genuine Parts Co. ................. 1,081 21 Goodrich Corp. .................... 781 60 Harley-Davidson, Inc. ............. 2,839 161 Honeywell International, Inc. ..... 5,647 17 ITT Industries, Inc. .............. 774 12 Navistar International Corp. ...... 330 77 Norfolk Southern Corp. ............ 1,586 17 Northrop Grumman Corp. ............ 1,364 15 PACCAR, Inc. ...................... 784 36 Rockwell International Corp. ...... 1,388 *27 Sabre Group Corp. ................. 1,326 152 Southwest Airlines Co. ............ 2,808 28 Textron, Inc. ..................... 1,552 25 TRW, Inc. ......................... 1,021 50 Union Pacific Corp. ............... 2,724 * 13 US Airways Group, Inc. ............ 324 ---------- 70,148 ---------- UTILITIES -- 3.6% *106 AES Corp. (The).................... 4,574 25 Allegheny Energy, Inc. ............ 1,201 *39 Allied Waste Industries, Inc. ..... 734 27 Ameren Corp. ...................... 1,172 64 American Electric Power Co., Inc. ............................. 2,975 *60 Calpine Corp. ..................... 2,256 32 CINergy Corp. ..................... 1,112 *53 Citizens Communications Co. ....... 632 26 CMS Energy Corp. .................. 735 +42 Consolidated Edison, Inc. ......... 1,688 33 Constellation Energy Group, Inc. ............................. 1,392 49 Dominion Resources, Inc. .......... 2,968 33 DTE Energy Co. .................... 1,527
65 67 ------------------------------------------------------------ HARTFORD INDEX HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
MARKET SHARES VALUE --------- ---------- COMMON STOCKS -- (CONTINUED) UTILITIES -- (CONTINUED) 154 Duke Energy Corp. ................. $ 6,007 65 Dynegy Inc., Class A............... 3,023 *65 Edison International............... 724 102 El Paso Energy Corp. .............. 5,341 44 Entergy Corp. ..................... 1,689 64 Exelon Corp. ...................... 4,104 45 FirstEnergy Corp. ................. 1,436 35 FPL Group, Inc. ................... 2,112 24 GPU, Inc. ......................... 840 27 KeySpan Corp. ..................... 1,000 23 Kinder Morgan, Inc. ............... 1,151 *68 Mirant Corp. ...................... 2,332 *32 Niagara Mohawk Holdings, Inc. ..... 563 9 NICOR, Inc. ....................... 353 41 NiSource, Inc. .................... 1,126 12 ONEOK, Inc. ....................... 233 7 Peoples Energy Corp. .............. 282 77 PG&E Corp. ........................ 865 17 Pinnacle West Capital Corp. ....... 805 29 PPL Corp. ......................... 1,596 41 Progress Energy, Inc. ............. 1,847 20 Progress Energy, Inc. -- CVO....... 10 42 Public Service Enterprise Group, Inc. ............................. 2,030 59 Reliant Energy, Inc. .............. 1,912 41 Sempra Energy...................... 1,124 137 Southern Co. ...................... 3,179 51 Texas Utilities Co. ............... 2,468 125 Waste Management, Inc. ............ 3,843 97 Williams Cos., Inc. (The).......... 3,183 68 Xcel Energy, Inc. ................. 1,948 ---------- 80,092 ---------- Total common stocks................ $2,200,567 ========== PRINCIPAL AMOUNT --------- SHORT-TERM SECURITIES -- 0.3% REPURCHASE AGREEMENT -- 0.3% $5,771 Joint Repurchase Agreement (See Note 2(d)) 3.95% due 07/02/01................ $ 5,771 ---------- U.S. TREASURY BILLS -- 0.0% 500 3.415% due 09/20/01................ 496 250 3.445% due 09/20/01................ 248 ---------- 744 ---------- Total short-term securities........ $ 6,515 ========== MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total common stocks (cost $1,742,798)......................... 99.8% $2,200,567 Total short-term securities (cost $6,515)............................. 0.3 6,515 ----- ---------- Total investment in securities (total cost $1,749,313)............. 100.1 2,207,082 Cash, receivables and other assets.... 0.1 2,050 Securities lending collateral (See Note 2(i)).......................... 1.3 28,925 Payable for securities purchased...... (0.1) (2,455) Payable for Fund shares redeemed...... (0.1) (1,760) Securities lending collateral payable to brokers (See Note 2(i)).......... (1.3) (28,925) Other liabilities..................... (0.0) (100) ----- ---------- Net assets............................ 100.0% $2,204,817 ===== ========== SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 2,000,000 shares authorized; 647,119 shares outstanding................................. $ 64,712 Capital surplus............................... 1,634,051 Accumulated undistributed net investment income...................................... 9,158 Accumulated undistributed net realized gain on investments................................. 39,247 Unrealized appreciation of investments........ 457,769 Unrealized depreciation of futures contracts ++................................ (120) ---------- Net assets.................................... $2,204,817 ========== Class IA Net asset value per share ($2,171,150 / 637,217 shares outstanding) (1,500,000 shares authorized)..................................... $3.41 ===== Class IB Net asset value per share ($33,667 / 9,902 shares outstanding) (500,000 shares authorized)........ $3.40 =====
* Non-income producing during the period. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). ++ The Fund had 23 Standard & Poor's 500 September 2001 futures contracts open as of June 30, 2001. These contracts had a value of $7,083 as of June 30, 2001 and were collateralized by U.S. Treasury Bills with a market value of $744. (Number of contracts not in $000's). The accompanying notes are an integral part of this financial statement. 66 68 ----------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- -------- ASSET-BACKED SECURITIES # -- 2.8% $ @1,000 AESOP Funding II LLC, Series 1997-1A, Class A2 (Aaa) 6.40% due 10/20/03............... $ 1,020 880 BMW Vehicle Owner Trust, Series 2001-A, Class A3 (Aaa) 4.70% due 03/25/05............... 879 89 Capital Auto Receivables Asset Trust, Series 1999-1, Class A2 (Aaa) 5.58% due 06/15/02............... 89 550 Carco Auto Loan Master Trust, Series 1999-1, Class A2 (Aaa) 5.78% due 03/15/04............... 558 87 Chase Manhattan Auto Owner Trust, Series 1997-B, Class A5 (Aaa) 6.60% due 03/15/02............... 88 1,360 Citibank Credit Card Master Trust I, Series 1997-2, Class A (Aaa) 6.55% due 02/15/04............... 1,382 850 Discover Card Master Trust I, Series 1999-2, Class A (Aaa) 5.90% due 10/15/04............... 862 452 First Security Auto Owner Trust, Series 2000-2, Class A2 (Aaa) 6.80% due 08/15/03............... 458 50 Ford Credit Auto Owner Trust, Series 1999-D, Class A3 (Aaa) 6.20% due 04/15/02............... 50 347 Harley-Davidson Eaglemark Motorcycle Trust, Series 1998-1, Class A2 (Aaa) 5.94% due 02/15/04............... 351 367 Harley-Davidson Eaglemark Motorcycle Trust, Series 2000-2, Class A1 (Aaa) 7.07% due 11/15/04............... 373 306 Honda Auto Lease Trust, Series 1999-A, Class A4 (Aaa) 6.45% due 09/16/02............... 308 660 Honda Auto Lease Trust, Series 1999-A, Class A5 (Aaa) 6.65% due 07/15/05............... 671 600 Honda Auto Receivables Owner Trust, Series 2000-1, Class A2 (Aaa) 6.65% due 12/16/02............... 606 336 PP&L Transition Bond Co., LLC, Series 1999-1, Class A2 (Aaa) 6.41% due 12/26/03............... 338 803 SLM Student Loan Trust, Series 2000-2, Class A1L (Aaa) 4.463% due 07/25/08.............. 804 500 Toyota Auto Receivables Owner Trust, Series 2001-B, Class A2 (Aaa) 4.182% due 12/15/03.............. 500 298 USAA Auto Loan Grantor Trust, Series 1999-1, Class A (Aaa) 6.10% due 02/15/06............... 303 $ 370 Wells Fargo Auto Trust, Series 2001-A, Class A3 (Aaa) 4.68% due 02/15/05............... $ 369 -------- Total asset-backed securities..... $ 10,009 ======== COLLATERALIZED MORTGAGE OBLIGATIONS # -- 1.0% 1,000 CS First Boston Mortgage Securities Corp., Series 1997-C1, Class A1B (Aaa) 7.150% due 08/20/06.............. 1,038 @660 GS Mortgage Securities, Series 2000-GSFL, Class A (Aaa) 4.04% due 08/15/12............... 660 705 Holmes Financing PLC, Series 4, Class 1A (Aaa) 4.013% due 07/15/15.............. 705 1,200 Nomura Asset Securities Corp., Series 1998-D6, Class A1B (Aaa) 6.59% due 03/15/30............... 1,212 @124 SASCO Floating Rate Commercial Mortgage, Series 1999-C3, Series A (AAA S&P) 5.407% due 11/20/01.............. 124 -------- Total collateralized mortgage obligations...................... $ 3,739 ======== SHARES ----------- COMMON STOCKS -- 52.0% APPAREL & TEXTILE -- 1.0% +44 Adidas AG......................... $ 2,682 @8 Industria de Diseno Textil S.A. ............................ 129 +45 Industria de Diseno Textil S.A. ............................ 723 -------- 3,534 -------- BANKS -- 4.8% 77 Banco Popular Espanol S.A. ....... 2,694 72 Bank of America Corp. ............ 4,316 78 Bank One Corp. ................... 2,796 +22 Banque National de Paris (BNP).... 1,910 47 Fannie Mae........................ 3,977 43 FleetBoston Financial Corp. ...... 1,712 -------- 17,405 -------- BUSINESS SERVICES -- 2.2% 293 Capita Group PLC.................. 1,887 *+49 eBay, Inc. ....................... 3,370 850 Rentokil Initial PLC.............. 2,888 -------- 8,145 -------- CHEMICALS -- 1.1% 84 du Pont (E.I.) de Nemours & Co. ............................. 4,052 -------- COMMUNICATIONS -- 5.3% *546 China Mobile (Hong Kong) Ltd. .... 2,884 *72 CIENA Corp. ...................... 2,732 *503 COLT Telecom Group PLC............ 3,482
The accompanying notes are an integral part of this financial statement. 67 69 ----------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
MARKET SHARES VALUE ----------- -------- COMMON STOCKS -- (CONTINUED) COMMUNICATIONS -- (CONTINUED) 68 Deutsche Telekom AG............... $ 1,523 *31 Echostar Communications Corp., A Shares........................... 992 107 Nokia Oyj......................... 2,428 *50 QUALCOMM, Inc. ................... 2,947 38 Verizon Communications, Inc. ..... 2,022 119 Vodafone AirTouch PLC............. 262 -------- 19,272 -------- COMPUTERS & OFFICE EQUIPMENT -- 2.2% *130 Cisco Systems, Inc. .............. 2,366 27 International Business Machines Corp. ........................... 3,085 21 Minnesota Mining & Manufacturing Co. ............................. 2,373 -------- 7,824 -------- CONSUMER NON-DURABLES -- 2.1% 29 Cardinal Health, Inc. ............ 1,967 37 Tyco International Ltd. .......... 2,011 63 Unilever N.V., NY Shares.......... 3,777 -------- 7,755 -------- DRUGS -- 2.4% 58 American Home Products Corp. ..... 3,384 60 AstraZeneca Group PLC............. 2,789 95 GlaxoSmithKline PLC............... 2,649 -------- 8,822 -------- ELECTRONICS -- 3.8% 3 Advantest Corp. .................. 249 *14 Broadcom Corp., Class A........... 577 54 General Electric Co. ............. 2,633 84 Intel Corp. ...................... 2,454 22 Kyocera Corp. .................... 1,967 20 Samsung Electronics............... 2,944 66 Texas Instruments, Inc. .......... 2,088 13 Tokyo Electron Ltd. .............. 775 -------- 13,687 -------- ENERGY & SERVICES -- 2.4% 214 BP Amoco PLC...................... 1,759 24 Burlington Resources, Inc. ....... 943 42 ExxonMobil Corp. ................. 3,686 +39 Royal Dutch Petroleum Co. ........ 2,267 -------- 8,655 -------- FINANCIAL SERVICES -- 1.5% 43 Barclays PLC...................... 1,302 79 Citigroup, Inc. .................. 4,159 -------- 5,461 -------- FOOD, BEVERAGE & TOBACCO -- 2.4% 328 Compass Group PLC................. 2,612 85 Kellogg Co. ...................... 2,451 8 Nestle S.A. ...................... 1,630 41 Philip Morris Cos., Inc. ......... 2,081 -------- 8,774 -------- HEALTH SERVICES -- 0.7% *+41 Elan Corp. ....................... 2,519 -------- INSURANCE -- 2.4% 38 American International Group, Inc. ............................ 3,234 357 Lloyds TSB Group PLC.............. 3,562 36 MBIA, Inc. ....................... 1,993 -------- 8,789 -------- MACHINERY -- 0.6% 30 United Technologies Corp. ........ 2,176 -------- MEDIA & ENTERTAINMENT -- 3.1% *51 AT&T -- Liberty Media Group, Class A................................ 888 464 Reed International PLC............ 4,111 *133 USA Networks, Inc. ............... 3,744 44 Vivendi Universal S.A. ........... 2,565 -------- 11,308 -------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.7% 42 Baxter International, Inc. ....... 2,068 334 Gambro AB, A Shares............... 2,039 42 Johnson & Johnson Co. ............ 2,115 -------- 6,222 -------- METALS, MINERALS & MINING -- 1.9% 37 Alcan, Inc. ...................... 1,559 57 Alcoa, Inc. ...................... 2,254 41 CRH PLC........................... 699 31 PoHang Iron & Steel Co., Ltd. .... 2,448 -------- 6,960 -------- RETAIL -- 3.0% 36 Home Depot, Inc. (The)............ 1,662 779 Marks & Spencer PLC............... 2,831 *284 Staples, Inc. .................... 4,540 39 Wal-Mart Stores, Inc. ............ 1,923 -------- 10,956 -------- SOFTWARE & SERVICES -- 4.8% *43 AOL Time Warner, Inc. ............ 2,279 *77 Microsoft Corp. .................. 5,628 22 SAP AG............................ 3,075 *+70 VeriSign, Inc. ................... 4,195 *33 VERITAS Software Corp. ........... 2,176 -------- 17,353 -------- TRANSPORTATION -- 1.6% 25 Bayerische Motoren Werke (BMW) AG............................... 807 264 British Airways PLC............... 1,274 37 General Motors Corp. ............. 2,355 +35 Vivendi Environnement............. 1,456 -------- 5,892 --------
The accompanying notes are an integral part of this financial statement. 68 70 -----------------------------------------------------------
MARKET SHARES VALUE ----------- -------- COMMON STOCKS -- (CONTINUED) UTILITIES -- 1.0% 115 Waste Management, Inc. ........... $ 3,544 -------- Total common stocks............... $189,105 ======== PRINCIPAL AMOUNT ----------- CORPORATE NOTES # -- 9.7% BANKS -- 3.6% $ 750 Bank Nederlandse Gemeenten N.V. (Aaa) 3.25% due 07/16/01............... 750 GBP 500 Bank of America Corp. (Aa2) 6.125% due 12/16/10.............. 661 500 Commonwealth Bank Australia (A1) 8.50% due 06/01/10............... 555 600 Ford Motor Credit Co. (A2) 6.875% due 02/01/06.............. 608 JPY 200,000 Ford Motor Credit Co. (A2) 1.50% due 09/25/01............... 1,608 EUR 1,700 Freddie Mac (Aaa) 5.75% due 09/15/10............... 1,476 EUR 1,700 Kredit Fuer Wiederaufbau (Aaa) 5.00% due 07/04/11............... 1,409 500 National Australia Bank (A1) 8.60% due 05/19/10............... 557 1,000 National Australia Bank (Aaa) 4.06% due 02/12/02............... 999 EUR 808 National Westminster Bank (Aaa) 6.00% due 01/21/10............... 680 500 Royal Bank of Scotland Group PLC (A1) 6.375% due 02/01/11.............. 488 DEM 1,600 Toyota Motor Credit Corp. (Aaa) 4.75% due 06/17/05............... 686 DEM 1,900 Toyota Motor Credit Corp. (Aaa) 5.375% due 12/28/01.............. 825 EUR 700 Unicredito Italiano S.p.A. (Aaa) 6.00% due 03/16/11............... 583 800 Wells Fargo & Co. (Aa2) 4.09% due 09/15/01............... 801 -------- 12,686 -------- CHEMICALS -- 0.0% 175 Potash Corp. Saskatchewan (Baa2) 7.75% due 05/31/11............... 179 -------- COMMUNICATIONS -- 1.2% GBP @500 France Telecom S.A. (Aaa) 7.50% due 03/14/11............... 722 EUR 1,500 France Telecom S.A. (Aaa) 4.604% due 10/12/01.............. 1,269 500 Telefonica Europe BV (A2) 7.75% due 09/15/10............... 514 GBP 490 Worldcom, Inc. (A3) 7.25% due 05/15/08............... 674 PRINCIPAL MARKET AMOUNT VALUE ----------- -------- COMMUNICATIONS -- (CONTINUED) $ 1,230 WorldCom, Inc. (A3) 6.125% due 08/15/01.............. $ 1,231 -------- 4,410 -------- CONSTRUCTION -- 0.1% 300 Centex Corp. (Baa2) 7.875% due 02/01/11.............. 298 -------- DRUGS -- 0.5% JPY 220,000 Pfizer, Inc. (Aaa) 0.80% due 03/18/08............... 1,786 -------- ELECTRONICS -- 0.2% EUR 800 Eaton Corp. (Baa1) 6.00% due 03/30/07............... 664 -------- ENERGY & SERVICES -- 0.3% GBP 525 British Gas PLC (Aaa) 5.375% due 12/07/09.............. 681 500 NRG Energy, Inc. (Baa3) 8.25% due 09/15/10............... 522 -------- 1,203 -------- FINANCIAL SERVICES -- 1.5% 1,500 American General Finance Corp. (A2) 6.875% due 12/14/01.............. 1,520 DEM 1,200 BA Credit Card Corp. (A2) 6.00% due 10/15/03............... 532 925 FPL Group Capital, Inc. (A2) 6.125% due 05/15/07.............. 913 JPY 110,000 General Electric Financial Assurance (Aaa) 1.60% due 06/20/11............... 890 EUR 850 General Motors Acceptance Corp. (A2) 5.75% due 02/14/06............... 725 @500 Osprey Trust (Baa2) 8.31% due 01/15/03............... 514 500 Wells Fargo Financial (Aa2) 5.45% due 05/03/04............... 501 -------- 5,595 -------- FOOD, BEVERAGE & TOBACCO -- 0.1% @500 Kellogg Co. (Baa2) 6.60% due 04/01/11............... 489 -------- FOREST & PAPER PRODUCTS -- 0.6% 500 Abitibi-Consolidated, Inc. (Baa3) 8.85% due 08/01/30............... 515 EUR 1,575 International Paper Co. (Baa1) 5.375% due 08/11/06.............. 1,300 300 Stora Enso Oyj (Baa1) 7.375% due 05/15/11.............. 304 -------- 2,119 --------
69 71 ----------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. ----------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- -------- CORPORATE NOTES -- (CONTINUED) INSURANCE -- 0.3% $ 500 Ace Capital Trust II (A2) 9.70% due 04/01/30............... $ 574 500 Everest Reinsurance Group Ltd. (A3) 8.50% due 03/15/05............... 532 -------- 1,106 -------- MEDIA & ENTERTAINMENT -- 0.3% EUR 700 Clear Channel Communications, Inc. (Baa1) 6.50% due 07/07/05............... 601 @600 Viacom, Inc. (A3) 6.625% due 05/15/11.............. 587 -------- 1,188 -------- METALS, MINERALS & MINING -- 0.3% 500 Alcan, Inc. (A2) 7.25% due 03/15/31............... 493 EUR 750 Alcan, Inc. (Aaa) 5.25% due 05/02/06............... 638 -------- 1,131 -------- RETAIL -- 0.3% @515 ERAC USA Finance Co. (Baa1) 7.35% due 06/15/08............... 510 500 Kroger Co. (Baa3) 7.50% due 04/01/31............... 493 -------- 1,003 -------- SOFTWARE & SERVICES -- 0.1% 500 AOL Time Warner, Inc. (Baa1) 7.625% due 04/15/31.............. 502 -------- TRANSPORTATION -- 0.3% 500 Delta Air Lines, Inc. (Aa2) 7.57% due 11/18/10............... 527 500 US Airways, Inc. (Aaa) 7.076% due 03/20/21.............. 493 -------- 1,020 -------- Total corporate notes............. $ 35,379 ======== ENHANCED EQUIPMENT TRUST CERTIFICATES # -- 0.1% $ 296 Daimler Chrysler Auto Trust, Series 2000-A, Class A2 (Aaa) 6.76% due 01/06/03............... $ 298 -------- Total enhanced equipment trust certificates..................... $ 298 ======== FOREIGN GOVERNMENT BONDS # -- 12.6% AUD 400 Australian Government (Aaa) 7.50% due 09/15/09............... $ 231 AUD 4,810 Australian Government (Aaa) 6.75% due 11/15/06............... 2,551 CAD 1,260 Canada Government (Aa1) 5.50% due 06/01/10............... 807 CAD 3,845 Canada Government (Aa1) 5.75% due 06/01/29............... 2,442 DKK 17,800 Denmark Kingdom (Aaa) 7.00% due 12/15/04............... $ 2,154 EUR 2,500 Deutschland Republic (Aaa) 6.25% due 01/04/24............... 2,266 EUR 3,350 France O.A.T. (Aaa) 5.50% due 04/25/07............... 2,938 EUR 1,600 France O.A.T. (Aaa) 5.50% due 04/25/10............... 1,384 EUR 6,000 French Treasury Note (Aaa) 5.50% due 10/12/01............... 5,093 GBP 381 Iceland Republic (Aaa) 8.75% due 05/12/03............... 561 EUR 1,000 Italy BTPS (Aa3) 6.50% due 11/01/27............... 906 EUR 3,400 Italy BTPS (Aa3) 4.00% due 07/15/04............... 2,835 EUR 10,000 Italy BTPS (Aa3) 4.50% due 07/01/01............... 8,464 JPY 290,000 Japan, Series 213 (Aa2) 1.40% due 06/22/09............... 2,419 JPY 175,000 Japan, Series 227 (Aa2) 1.60% due 03/21/11............... 1,463 JPY 195,000 Japan, Series 42 (Aa2) 2.60% due 03/20/19............... 1,771 EUR 3,100 Netherlands Government (Aaa) 7.75% due 03/01/05............... 2,896 NOK 28,000 Norway Kingdom (Aa1) 5.50% due 05/15/09............... 2,783 SEK 10,500 Sweden Kingdom, Series 1034 (Aa1) 9.00% due 04/20/09............... 1,182 GBP 500 U.K. Treasury Gilt (Aaa) 6.25% due 11/25/10............... 751 -------- Total foreign government bonds.... $ 45,897 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 8.9% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.6% $ 2,110 8.242% due 03/01/30............... $ 2,176 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 3.1% 1,798 6.113% due 05/01/11............... 1,777 1,021 6.295% due 06/01/09............... 1,026 5,000 7.00% due 07/01/31................ 5,020 3,500 7.50% due 12/01/30 - 05/01/31..... 3,572 -------- 11,395 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.1% 8,424 7.50% due 01/15/28 - 12/15/29..... 8,659 2,365 8.00% due 05/15/29 - 09/15/30..... 2,452 -------- 11,111 -------- U.S. TREASURY BONDS -- 0.9% 3,370 5.50% due 08/15/28................ 3,195 -------- U.S. TREASURY NOTES -- 0.7% 2,650 5.625% due 05/15/08............... 2,704 --------
The accompanying notes are an integral part of this financial statement. 70 72 -----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- -------- U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) U.S. TREASURY STRIPS -- 0.5% $ 6,000 0.00% due 11/15/21................ $ 1,747 -------- Total U.S. treasuries & federal agencies......................... $ 32,328 ======== SHORT-TERM SECURITIES -- 14.1% REPURCHASE AGREEMENT -- 13.6% 49,467 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.............. $ 49,467 -------- U.S. TREASURY BILLS -- 0.5% 1,800 3.74% due 07/26/01................ $ 1,796 -------- Total short-term securities....... $ 51,263 ======== DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $9,888)............................... 2.8% $ 10,009 Total collateralized mortgage obligations (cost $3,762)............. 1.0 3,739 Total common stocks (cost $191,456)..... 52.0 189,105 Total corporate notes (cost $36,437).... 9.7 35,379 Total enhanced equipment trust certificates (cost $295).............. 0.1 298 Total foreign government bonds (cost $49,700).............................. 12.6 45,897 Total U.S. treasuries & federal agencies (cost $32,371)........................ 8.9 32,328 Total short-term securities (cost $51,263).............................. 14.1 51,263 ----- -------- Total investment in securities (total cost $375,172)........................ 101.2 368,018 Cash, receivables and other assets...... 4.6 16,573 Securities lending collateral (See Note 2 (i))................................ 3.9 14,017 Payable for securities purchased........ (5.5) (20,194) Payable for Fund shares redeemed........ (0.1) (245) Securities lending collateral payable to brokers (See Note 2 (i)).............. (3.9) (14,017) Other liabilities....................... (0.2) (824) ----- -------- Net assets.............................. 100.0% $363,328 ===== ======== MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 750,000 shares authorized; 352,906 shares outstanding.................................. $ 35,291 Capital surplus................................ 360,437 Accumulated undistributed net investment income....................................... 2,031 Distribution in excess of net realized gain on investments.................................. (29,584) Unrealized depreciation of investments......... (7,154) Unrealized appreciation of futures contracts ++................................. 68 Unrealized appreciation of forward foreign currency contracts (See Note 2(g)) !......... 2,343 Unrealized depreciation of other assets and liabilities in foreign currencies............ (277) Unrealized appreciation of option contracts written (See Note 2(f))...................... 173 -------- Net assets..................................... $363,328 ======== Class IA Net asset value per share ($353,830 / 343,661 shares outstanding) (562,500 shares authorized).................................... $1.03 ===== Class IB Net asset value per share ($9,498 / 9,245 shares outstanding) (187,500 shares authorized)....... $1.03 =====
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $4,755 or 1.3% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). # The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. ++ The fund had 3 Long September 2001 TSE 10 Year JGB Index futures contracts, 10 Long September 2001 Eurex Deutschland Euro Bund futures contracts, 68 Long September 2001 OMX Index futures contracts, 68 Short September 2001 OMX Index futures contracts, 65 Short September 2001 5 Year U.S. Treasury Note future contracts open as of June 30, 2001. These contracts had a market value of $4,960 as of June 30, 2001, and were collateralized by U.S. Treasury Bills with a market value of $1,796. (Number of contracts not in $000's) 71 73 -------------------------------------------------------------------------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) -------------------------------------------------------------------------------- ! FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AT JUNE 30, 2001
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Australian Dollar (Buy) $2,318 $2,255 07/11/01.. $ 63 Australian Dollar (Buy) 508 495 07/11/01 13 Australian Dollar (Buy) 445 439 07/11/01 6 Australian Dollar (Buy) 153 152 07/11/01 1 Australian Dollar (Sell) 542 528 07/11/01 (14) Australian Dollar (Sell) 301 292 07/11/01 (9) Australian Dollar (Sell) 685 680 07/11/01 (5) Australian Dollar (Sell) 664 675 07/11/01 11 Australian Dollar (Sell) 623 629 07/11/01 6 Australian Dollar (Sell) 228 232 07/11/01 4 Australian Dollar (Sell) 2,594 2,675 07/11/01 81 Australian Dollar (Sell) 169 174 07/11/01 5 Australian Dollar (Sell) 455 468 07/11/01 13 British Pounds (Buy) 657 662 07/02/01 (5) British Pounds (Buy) 268 268 07/03/01 -- British Pounds (Buy) 692 696 07/03/01 (4) British Pounds (Buy) 612 612 07/25/01 -- British Pounds (Sell) 580 591 05/14/01 11 British Pounds (Sell) 609 602 07/25/01 (7) British Pounds (Sell) 3,972 3,928 07/25/01 (44) Canadian Dollar (Buy) 859 859 07/03/01 -- Canadian Dollar (Buy) 63 63 09/14/01 -- Canadian Dollar (Sell) 1,550 1,539 07/19/01 (11) Canadian Dollar (Sell) 910 909 07/19/01 (1) Canadian Dollar (Sell) 860 858 07/19/01 (2) Canadian Dollar (Sell) 63 63 09/14/01 -- Danish Krone (Sell) 2,165 2,163 07/16/01 (2) Euro (Buy) 7 7 07/02/01 -- Euro (Buy) 605 604 07/03/01 1 Euro (Buy) 737 739 07/03/01 (2) Euro (Buy) 25 25 07/05/01 -- Euro (Buy) 941 984 07/11/01 (43) Euro (Buy) 305 322 07/11/01 (17) Euro (Buy) 7,192 7,578 07/11/01 (386) Euro (Buy) 129 134 07/11/01 (5) Euro (Buy) 5,910 6,137 07/11/01 (227) Euro (Buy) 2,778 2,872 07/11/01 (94) Euro (Buy) 6,504 6,699 07/11/01 (195) Euro (Buy) 903 919 07/11/01 (16) Euro (Buy) 1,927 1,950 07/11/01 (23) Euro (Buy) 57 57 07/11/01 -- Euro (Buy) 553 558 07/11/01 (5) Euro (Buy) 636 641 07/11/01 (5) Euro (Buy) 2,609 2,635 07/11/01 (26) Euro (Buy) 474 $ 482 07/11/01 (8) Euro (Buy) 8,475 8,443 07/11/01 32 Euro (Buy) 214 214 08/03/01 -- Euro (Sell) 8,466 8,444 07/02/01 (22) Euro (Sell) 439 437 07/03/01 (2) Euro (Sell) 42,375 44,710 07/11/01 2,335 Euro (Sell) 2,848 3,003 07/11/01 155 Euro (Sell) 7,777 8,199 07/11/01 422 Euro (Sell) 814 855 07/11/01 41 Euro (Sell) 678 713 07/11/01 35 Euro (Sell) 1,034 1,078 07/11/01 44
The accompanying notes are an integral part of this financial statement. 72 74 --------------------------------------------------------------------------------
UNREALIZED CONTRACT DELIVERY APPRECIATION DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION) ----------- ------------ -------- -------- -------------- Euro (Sell) $ 59 $ 62 07/11/01 $ 3 Euro (Sell) 415 434 07/11/01 19 Euro (Sell) 750 754 07/11/01 4 Euro (Sell) 2,577 2,582 07/11/01 5 Euro (Sell) 898 912 07/11/01 14 Euro (Sell) 9,691 9,860 07/11/01 169 Euro (Sell) 763 775 07/11/01 12 Euro (Sell) 1,127 1,143 07/11/01 16 Euro (Sell) 25 25 07/11/01 -- Japanese Yen (Buy) 8,833 9,097 07/19/01 (264) Japanese Yen (Buy) 595 604 08/07/01 (9) Japanese Yen (Buy) 3,815 3,902 08/07/01 (87) Japanese Yen (Buy) 1,207 1,230 08/07/01 (23) Japanese Yen (Buy) 170 175 08/07/01 (5) Japanese Yen (Buy) 527 542 08/07/01 (15) Japanese Yen (Buy) 457 471 08/07/01 (14) Japanese Yen (Buy) 1,255 1,261 08/07/01 (6) Japanese Yen (Buy) 1,247 1,247 08/07/01 -- Japanese Yen (Sell) 943 962 07/19/01 19 Japanese Yen (Sell) 943 970 07/19/01 27 Japanese Yen (Sell) 1,258 1,308 07/19/01 50 Japanese Yen (Sell) 5,688 5,733 07/19/01 45 Japanese Yen (Sell) 6,590 6,668 08/07/01 78 Japanese Yen (Sell) 2,048 2,079 08/07/01 31 Japanese Yen (Sell) 1,765 1,808 08/07/01 43 Japanese Yen (Sell) 420 442 08/07/01 22 Japanese Yen (Sell) 146 153 08/07/01 7 Japanese Yen (Sell) 563 589 08/07/01 26 Japanese Yen (Sell) 593 602 08/07/01 9 Japanese Yen (Sell) 883 897 08/07/01 14 Norwegian Krone (Sell) 1,899 1,915 07/23/01 16 Norwegian Krone (Sell) 214 214 08/03/01 -- Singapore Dollar (Buy) 603 606 08/03/01 (3) Singapore Dollar (Sell) 603 606 08/03/01 3 South Korean Won (Buy) 615 603 08/03/01 12 South Korean Won (Buy) 600 596 09/21/01 4 South Korean Won (Sell) 615 619 08/03/01 4 Swedish Krona (Buy) 762 778 07/12/01 (16) Swedish Krona (Sell) 1,259 1,265 07/12/01 6 Swiss Franc (Sell) 715 734 07/18/01 19 Swiss Franc (Sell) 473 482 07/18/01 9 ------ $2,343 ======
73 75 ------------------------------------------------------------ HARTFORD ADVISERS HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ----------- ASSET-BACKED SECURITIES # -- 0.3% $ @43,000 AESOP Funding II LLC, Series 1998-1, Class A (Aaa) 6.14% due 05/20/06............... $ 43,589 ----------- Total asset-backed securities..... $ 43,589 =========== COLLATERALIZED MORTGAGE OBLIGATIONS + -- 0.6% 18,000 Asset Securitization Corp., Series 1997-D4, Class A1D (Aaa) 7.49% due 04/14/29............... 18,896 17,200 Asset Securitization Corp., Series 1997-D5, Class A1E (Aa1) 6.93% due 02/14/43............... 17,274 25,000 Chase Commercial Mortgage Securities Corp., Series 1997-1, Class A2 (AAA S&P) 7.37% due 02/19/07............... 26,148 17,225 First Union -- Lehman Brothers Commercial Mortgage Trust, Series 1997-C1, Class A3 (Aaa) 7.38% due 04/18/07............... 18,039 ----------- Total collateralized mortgage obligations...................... $ 80,357 =========== SHARES --------- COMMON STOCKS -- 61.9% AEROSPACE & DEFENSE -- 0.5% *3,400 General Motors, Class H........... $ 68,850 ----------- BANKS -- 4.3% 2,200 Bank One Corp. ................... 78,760 2,000 Fleet Boston Financial Corp. ..... 78,900 3,650 Morgan (J.P.) Chase & Co., Inc. ............................ 162,790 3,200 State Street Corp. ............... 158,368 3,000 U.S. Bankcorp..................... 68,370 ----------- 547,188 ----------- CHEMICALS -- 0.9% 3,300 Dow Chemical Co. (The)............ 109,725 ----------- COMMUNICATIONS -- 3.1% *970 CIENA Corp. ...................... 36,860 *90 McDATA Corp., Class A............. 1,588 1,400 Motorola, Inc. ................... 23,184 40 Qwest Communications International.................... 1,275 2,975 SBC Communications, Inc. ......... 119,179 *+2,320 Tellabs, Inc. .................... 44,730 1,700 Verizon Communications, Inc. ..... 90,950 *5,600 WorldCom, Inc. ................... 79,520 ----------- 397,286 ----------- COMPUTERS & OFFICE EQUIPMENT -- 4.3% *6,276 Cisco Systems, Inc. .............. 114,229 *4,046 Dell Computer Corp. .............. 105,808 *2,515 EMC Corp. ........................ 73,061 1,640 International Business Machines Corp. ........................... 185,320 MARKET SHARES VALUE --------- ----------- COMPUTERS & OFFICE EQUIPMENT -- (CONTINUED) *580 Palm, Inc. ....................... $ 3,521 *+4,030 Solectron Corp. .................. 73,749 ----------- 555,688 ----------- CONSUMER NON-DURABLES -- 2.2% *3,335 Safeway, Inc. .................... 160,094 2,150 Tyco International Ltd. .......... 117,175 ----------- 277,269 ----------- DRUGS -- 6.7% 2,485 Abbott Laboratories............... 119,305 2,200 American Home Products Corp. ..... 128,568 2,208 Bristol-Myers Squibb Co. ......... 115,478 *+1,577 Immunex Corp. .................... 27,990 2,020 Merck & Co., Inc. ................ 129,098 3,025 Pfizer, Inc. ..................... 121,148 2,204 Pharmacia Corp. .................. 101,274 3,179 Schering-Plough Corp. ............ 115,189 ----------- 858,050 ----------- ELECTRONICS -- 5.3% 1,416 Emerson Electric Co. ............. 85,674 6,306 General Electric Co. ............. 307,418 6,058 Intel Corp. ...................... 177,191 *1,361 JDS Uniphase Corp. ............... 17,349 2,216 Texas Instruments, Inc. .......... 69,810 *+771 Vitesse Semiconductor Corp. ...... 16,218 ----------- 673,660 ----------- ENERGY & SERVICES -- 4.3% 1,097 Anadarko Petroleum Corp. ......... 59,271 1,100 Conoco, Inc., Class B............. 31,790 3,200 ExxonMobil Corp. ................. 279,520 1,559 Schlumberger Ltd. ................ 82,087 1,580 Texaco, Inc. ..................... 105,228 ----------- 557,896 ----------- FINANCIAL SERVICES -- 5.1% 4,654 Citigroup, Inc. .................. 245,931 3,050 Franklin Resources, Inc. ......... 139,599 600 Goldman Sachs Group, Inc. (The)... 51,480 2,200 Merrill Lynch & Co., Inc. ........ 130,350 1,350 Morgan Stanley Dean Witter & Co. ............................. 86,711 ----------- 654,071 ----------- FOOD, BEVERAGE & TOBACCO -- 1.1% 3,300 PepsiCo., Inc. ................... 145,860 ----------- FOREST & PAPER PRODUCTS -- 0.7% 1,538 Kimberly-Clark Corp. ............. 85,985 ----------- HEALTH SERVICES -- 0.7% 1,900 HCA -- The Healthcare Co. ........ 85,861 ----------- INSURANCE -- 3.0% 2,376 American International Group, Inc. ............................ 204,327 1,825 Marsh & McLennan Cos., Inc. ...... 184,325 ----------- 388,652 -----------
The accompanying notes are an integral part of this financial statement. 74 76 ------------------------------------------------------------
MARKET SHARES VALUE --------- ----------- COMMON STOCKS -- (CONTINUED) MACHINERY -- 1.6% 1,489 Caterpillar, Inc. ................ $ 74,514 1,712 United Technologies Corp. ........ 125,443 ----------- 199,957 ----------- MEDIA & ENTERTAINMENT -- 2.3% *6,446 AT&T -- Liberty Media Group, Class A................................ 112,741 2,780 Gannett Co., Inc. ................ 183,202 ----------- 295,943 ----------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.3% 970 Baxter International, Inc. ....... 47,530 2,455 Johnson & Johnson Co. ............ 122,740 ----------- 170,270 ----------- METALS, MINERALS & MINING -- 1.3% 2,550 Alcoa, Inc. ...................... 100,470 1,050 Illinois Tool Works, Inc. ........ 66,465 ----------- 166,935 ----------- REAL ESTATE -- 0.1% *6 Security Capital Group, Inc., Class............................ 6,581 ----------- RETAIL -- 2.5% 2,820 Home Depot, Inc. (The)............ 131,271 3,810 Wal-Mart Stores, Inc. ............ 185,928 ----------- 317,199 ----------- SOFTWARE & SERVICES -- 7.2% *4,550 AOL Time Warner, Inc. ............ 241,150 *+1,220 Ariba, Inc. ...................... 6,710 2,000 Automatic Data Processing, Inc. ............................ 99,400 *1,127 Computer Sciences Corp. .......... 39,005 *+1,420 i2 Technologies, Inc. ............ 28,116 *4,950 Microsoft Corp. .................. 361,350 *5,430 Oracle Corp. ..................... 103,170 *835 VERITAS Software Corp. ........... 55,553 ----------- 934,454 ----------- TRANSPORTATION -- 0.7% 1,486 Boeing Co. (The).................. 82,627 *248 Fedex Corp. ...................... 9,950 ----------- 92,577 ----------- UTILITIES -- 2.7% 2,291 Duke Energy Corp. ................ 89,376 1,546 El Paso Energy Corp. ............. 81,201 1,385 Exelon Corp. ..................... 88,774 1,432 FPL Group, Inc. .................. 86,233 ----------- 345,584 ----------- Total common stocks............... $ 7,935,541 =========== PRINCIPAL MARKET AMOUNT VALUE --------- ----------- CORPORATE NOTES # -- 16.2% BANKS -- 1.6% $ 12,035 American Express Co. (A1) 6.875% due 11/01/05.............. $ 12,518 20,000 Bank of America Corp. (Aa2) 5.875% due 02/15/09.............. 19,023 40,000 Bank One Corp. (Aa3) 6.875% due 08/01/06.............. 41,161 10,000 BankBoston Corp. (A3) 6.625% due 02/01/04.............. 10,264 13,685 First Union National Bank (A1) 5.80% due 12/01/08............... 12,977 36,745 Key Bank N.A. (Aa3) 5.80% due 04/01/04............... 36,907 10,000 Morgan (J.P.) Chase & Co., Inc. (A1) 8.50% due 02/15/02............... 10,248 14,825 Popular, Inc. (Baa1) 6.75% due 12/15/05............... 14,634 50,000 Wells Fargo & Co. (Aa2) 6.50% due 09/03/02............... 51,116 ----------- 208,848 ----------- CHEMICALS -- 0.7% 20,000 ICI Wilmington, Inc. (Baa2) 6.95% due 09/15/04............... 20,431 25,000 Praxair, Inc. (A3) 6.15% due 04/15/03............... 25,307 +40,000 Rohm & Haas Co. (A3) 7.40% due 07/15/09............... 41,533 ----------- 87,271 ----------- COMMUNICATIONS -- 0.9% 40,000 AT&T Corp. (A2) 6.50% due 03/15/29............... 34,154 10,000 BellSouth Telecommunications, Inc. (Aa2) 6.375% due 06/01/28.............. 9,023 30,000 Comcast Cable Communications (Baa2) 6.875% due 06/15/09.............. 29,877 16,580 Motorola, Inc. (A3) 7.60% due 01/01/07............... 15,891 30,000 WorldCom, Inc. (A3) 6.40% due 08/15/05............... 29,429 ----------- 118,374 ----------- COMPUTERS & OFFICE EQUIPMENT -- 0.8% 50,000 Hewlett-Packard Co. (Aa3) 7.15% due 06/15/05............... 51,721 30,000 International Business Machines Corp. (A1) 6.50% due 01/15/28............... 28,187 18,000 Pitney Bowes, Inc. (Aa3) 5.50% due 04/15/04............... 18,056 ----------- 97,964 -----------
75 77 ------------------------------------------------------------ HARTFORD ADVISERS HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ----------- CORPORATE NOTES -- (CONTINUED) CONSUMER DURABLES -- 0.1% $ +20,000 Dana Corp. (Ba1) 6.25% due 03/01/04............... $ 18,850 ----------- CONSUMER NON-DURABLES -- 0.7% 25,000 Alberto-Culver Co. (Baa1) 8.25% due 11/01/05............... 26,443 25,000 Boise Cascade Office Products Corp. (Baa3) 7.05% due 05/15/05............... 24,095 18,000 Colgate-Palmolive Co. (Aa3) 5.58% due 11/06/08............... 17,471 21,100 Proctor & Gamble Co. (The) (Aa2) 9.36% due 01/01/21............... 26,117 ----------- 94,126 ----------- CONSUMER SERVICES -- 0.4% 39,668 Postal Square LP (Aaa) 8.95% due 06/15/22............... 47,050 ----------- DRUGS -- 0.5% 26,000 American Home Products Corp. (A3) 7.25% due 03/01/23............... 25,147 29,000 Pharmacia Corp. (A1) 6.60% due 12/01/28............... 27,830 10,000 Zeneca Wilmington, Inc. (Aa2) 6.30% due 06/15/03............... 10,281 ----------- 63,258 ----------- EDUCATION -- 0.1% 10,900 Harvard University (Aaa) 8.125% due 04/15/07.............. 11,988 ----------- ELECTRICAL EQUIPMENT -- 0.2% 30,000 Danaher Corp. (A2) 6.00% due 10/15/08............... 28,614 ----------- ENERGY & SERVICES -- 0.1% 12,250 Amoco Co. (Aa1) 6.50% due 08/01/07............... 12,495 ----------- FINANCIAL SERVICES -- 1.4% 15,000 Associates Corp. of North America (Aa3) 6.50% due 10/15/02............... 15,340 25,000 Associates Corp. of North America (Aa3) 6.00% due 07/15/05............... 24,813 10,000 Citigroup Inc. (Aa2) 6.25% due 12/01/05............... 10,142 30,000 Equitable Cos. (The) (A2) 7.00% due 04/01/28............... 28,704 @16,355 ERAC USA Finance Co. (Baa1) 7.35% due 06/15/08............... 16,207 20,000 Liberty Property Ltd. (Baa2) 7.25% due 08/15/07............... 19,978 $ 30,000 Toyota Motor Credit Corp. (Aa1) 5.50% due 12/15/08............... 28,379 @40,000 USAA Capital Corp. (Aa1) 6.900% due 11/01/02.............. 41,073 ----------- 184,636 ----------- FOOD, BEVERAGE & TOBACCO -- 0.6% 30,000 Coca-Cola Enterprises, Inc. (A2) 6.75% due 09/15/28............... 28,657 15,270 ConAgra Foods, Inc. (Baa1) 7.875% due 09/15/10.............. 16,047 35,000 PepsiAmericas, Inc. (Baa1) 6.375% due 05/01/09.............. 34,042 ----------- 78,746 ----------- INSURANCE -- 2.6% 40,000 ACE INA Holdings (A2) 8.30% due 08/15/06............... 43,089 30,000 Allmerica Financial Corp. (A2) 7.625% due 10/15/25.............. 29,886 24,000 Allstate Corp. (The) (A1) 6.75% due 06/15/03............... 24,740 26,485 AmerUs Group Co. (Baa3) 6.95% due 06/15/05............... 25,832 15,740 CIGNA Corp. (A3) 7.40% due 05/15/07............... 16,446 30,000 Cincinnati Financial Corp. (A2) 6.90% due 05/15/28............... 27,906 @27,000 Jackson National Life Insurance Co. (A2) 8.15% due 03/15/27............... 28,145 11,400 Liberty Financial Cos, Inc. (A3) 6.75% due 11/15/08............... 11,186 @30,000 Liberty Mutual Insurance (A2) 8.20% due 05/04/07............... 30,761 @10,000 Lumbermens Mutual Casualty (Baa1) 9.15% due 07/01/26............... 9,211 @30,000 New England Mutual Life Insurance (A1) 7.875% due 02/15/24.............. 29,746 27,600 Torchmark Corp. (Baa1) 8.25% due 08/15/09............... 28,754 29,000 UnitedHealth Group, Inc. (A3) 6.60% due 12/01/03............... 29,611 ----------- 335,313 ----------- MACHINERY -- 0.6% 50,000 Eaton Corp. (A2) 6.95% due 11/15/04............... 51,753 25,000 Parker-Hannifin Corp. (A2) 5.65% due 09/15/03............... 25,241 ----------- 76,994 -----------
The accompanying notes are an integral part of this financial statement. 76 78 ------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ----------- CORPORATE NOTES -- (CONTINUED) MEDIA & ENTERTAINMENT -- 0.3% $ 19,420 Scripps (E.W.) Co. (The) (A2) 6.375% due 10/15/02.............. $ 19,736 10,400 Times Mirror Co. (The), Class A (A2) 7.50% due 07/01/23............... 10,186 +9,260 Viacom, Inc. (A3) 6.40% due 01/30/06............... 9,395 ----------- 39,317 ----------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.2% 22,000 Becton, Dickinson & Co. (A2) 6.70% due 08/01/28............... 20,254 ----------- RETAIL -- 1.3% 40,000 Albertson's, Inc. (Baa1) 6.55% due 08/01/04............... 40,166 20,200 Dayton Hudson Corp. (A2) 5.875% due 11/01/08.............. 19,705 50,000 Home Depot, Inc. (The) (Aa3) 6.50% due 09/15/04............... 51,775 50,000 Wal-Mart Stores, Inc. (Aa2) 6.875% due 08/10/09.............. 51,878 ----------- 163,524 ----------- SOFTWARE & SERVICES -- 0.2% 25,000 Computer Associates International, Inc. (Baa1) 6.50% due 04/15/08............... 22,348 ----------- TRANSPORTATION -- 1.3% 21,744 Continental Airlines, Inc. (Aa3) 6.90% due 01/02/18............... 21,478 30,000 DaimlerChrysler North America Holding Corp. (A3) 7.125% due 04/10/03.............. 30,923 30,000 DaimlerChrysler North America Holding Corp. (A3) 7.75% due 05/27/03............... 31,306 35,000 Ford Motor Co. (A2) 6.625% due 10/01/28.............. 30,189 35,000 General Motors Corp. (A2) 6.75% due 05/01/28............... 31,697 30,000 Rockwell International Corp. (A1) 6.70% due 01/15/28............... 26,632 ----------- 172,225 ----------- UTILITIES -- 1.6% 45,000 Alabama Power Co. (A2) 7.125% due 08/15/04.............. 46,665 21,350 Duke Energy Corp. (A1) 6.00% due 12/01/28............... 18,172 40,000 Kansas City Power & Light Co. (A2) 7.125% due 12/15/05.............. 40,866 17,285 Northern Border Pipeline Co. (A3) 7.75% due 09/01/09............... 17,296 10,000 Southern California Gas Co. (A2) 5.75% due 11/15/03............... 10,039 50,000 Tenn Valley Authority (Aa1) 6.00% due 03/15/13............... 48,769 20,000 Williams Cos., Inc. (The) (Baa2) 6.50% due 11/15/02............... 20,300 ----------- 202,107 ----------- Total corporate notes............. $ 2,084,302 =========== FOREIGN GOVERNMENT AGENCIES + -- 0.2% @20,000 Santiago Air (Aaa) 6.95% due 07/01/12............... 19,431 ----------- Total foreign government agencies......................... $ 19,431 =========== FOREIGN/YANKEE BONDS & NOTES + -- 1.8% FOREIGN CORPORATIONS -- 1.7% 30,000 Alcan, Inc. (A2) 7.25% due 11/01/28............... $ 29,574 30,000 Apache Finance Property Ltd. (A3) 7.00% due 03/15/09............... 30,564 25,000 Bayerische Landesbank Girozentrale (NY) (Aaa) 5.65% due 02/01/09............... 23,441 10,000 Fairfax Financial Holdings Ltd. (Baa3) 7.75% due 12/15/03............... 9,694 15,000 Husky Oil Ltd. (Baa2) 6.875% due 11/15/03.............. 15,363 15,000 Hydro-Quebec (A2) 7.375% due 02/01/03.............. 15,563 24,000 Natexis Banques Populaires (A3) 0.00% due 11/14/05............... 24,425 43,000 TXU Eastern Funding Co. (Baa1) 6.45% due 05/15/05............... 42,396 30,000 Tyco International Group S.A. (Baa1) 6.875% due 09/05/02.............. 30,527 ----------- 221,547 ----------- FOREIGN GOVERNMENT -- 0.1% 11,000 City of Naples Italy (Aa3) 7.52% due 07/15/06............... 11,436 ----------- Total foreign/yankee bonds & notes............................ $ 232,983 =========== MUNICIPAL BONDS + -- 0.1% 7,000 Miami Beach, Florida (Baa1) 8.80% due 12/01/15............... $ 7,464 9,290 Mount Sinai School of Medicine NY (Aaa) 6.00% due 07/01/03............... 9,471 ----------- Total municipal bonds............. $ 16,935 =========== U.S. TREASURIES & FEDERAL AGENCIES -- 16.3% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.4% 49,773 6.978% due 10/01/10............... $ 51,453 -----------
77 79 ------------------------------------------------------------ HARTFORD ADVISERS HLS FUND, INC. ------------------------------------------------------------ STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ----------- U.S. TREASURIES & FEDERAL AGENCIES -- (CONTINUED) GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 3.9% $ 222,185 6.00% due 06/15/24 -- 03/15/29.... $ 215,297 152,370 6.50% due 03/15/26 -- 08/15/29.... 150,891 60,857 7.00% due 11/15/23 -- 11/15/24.... 61,862 70,201 8.00% due 09/15/26 -- 02/15/31.... 72,794 552 9.00% due 06/20/16 -- 07/20/16.... 596 ----------- 501,440 ----------- U.S. TREASURY BONDS -- 10.8% +350,000 5.75% due 10/31/02 -- 04/30/03.... 358,631 +125,000 5.875% due 11/15/05............... 129,464 +200,000 6.00% due 08/15/09................ 207,986 +380,000 6.25% due 08/15/23................ 395,501 +75,000 6.375% due 08/15/02............... 76,961 +100,000 6.50% due 08/15/05................ 105,878 +100,000 7.25% due 08/15/04................ 107,382 ----------- 1,381,803 ----------- U.S. TREASURY NOTES -- 1.2% 150,000 5.75% due 08/15/10................ 153,493 ----------- Total U.S. treasuries & federal agencies......................... 2,088,189 =========== SHORT-TERM SECURITIES -- 2.3% REPURCHASE AGREEMENT -- 2.3% 290,258 Joint Repurchase Agreement (See Note 2(d)) 3.942% due 07/02/01.............. $ 290,258 ----------- Total short-term securities....... $ 290,258 =========== MARKET VALUE ----------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $42,834)........................... 0.3% $ 43,589 Total collateralized mortgage obligations (cost $78,176)......... 0.6 80,357 Total common stocks (cost $6,933,405)........................ 61.9 7,935,541 Total corporate notes (cost $2,116,831)........................ 16.2 2,084,302 Total foreign government agencies (cost $19,989)..................... 0.2 19,431 Total foreign/yankee bonds & notes (cost $232,095).................... 1.8 232,983 Total municipal bonds (cost $16,543)........................... 0.1 16,935 Total U.S. treasuries & federal agencies (cost $2,038,776)......... 16.3 2,088,189 Total short-term securities (cost $290,258).......................... 2.3 290,258 ----- ----------- Total investment in securities (total cost $11,768,907).................. 99.7 12,791,585 Cash, receivables and other assets... 0.8 95,055 Securities lending collateral (See Note 2(i))......................... 12.0 1,535,183 Payable for securities purchased..... (0.4) (50,296) Payable for Fund shares redeemed..... (0.1) (7,407) Securities lending collateral payable to brokers (See Note 2(i))......... (12.0) (1,535,183) Other liabilities.................... (0.0) (569) ----- ----------- Net assets........................... 100.0% $12,828,368 ===== ===========
The accompanying notes are an integral part of this financial statement. 78 80 -----------------------------------------------------------
MARKET VALUE ----------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 7,000,000 shares authorized; 5,373,743 shares outstanding......................... $ 537,374 Capital surplus.............................. 11,109,304 Accumulated undistributed net investment income..................................... 165,075 Distribution in excess of net realized gain on investments............................. (6,063) Unrealized appreciation of investments....... 1,022,678 ----------- Net assets................................... $12,828,368 =========== Class IA Net asset value per share ($12,430,043 / 5,208,075 shares outstanding) (6,500,000 shares authorized)..................................... $2.39 ===== Class IB Net asset value per share ($398,325 / 165,668 shares outstanding) (500,000 shares authorized)..................................... $2.40 =====
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $218,163 or 1.7% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). # The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. 79 81 ---------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND ---------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- CORPORATE NOTES # -- 76.1% AEROSPACE & DEFENSE -- 0.2% $ 550 Condor Systems, Inc. (B3) 11.875% due 05/01/09............. $ 275 ------- APPAREL & TEXTILE -- 0.2% 266 Levi Strauss & Co. (Ba3) 7.00% due 11/01/06............... 202 ------- BANKS -- 1.0% 250 Golden State Holdings, Inc. (Ba1) 6.75% due 08/01/01............... 250 150 Golden State Holdings, Inc. (Ba1) 7.125% due 08/01/05.............. 147 780 Sovereign Bankcorp, Inc. (Ba3) 8.625% due 03/15/04.............. 797 ------- 1,194 ------- BUSINESS SERVICES -- 1.5% 1,120 Encompass Services Corp. (B2) 10.50% due 05/01/09.............. 1,065 @265 Integrated Electrical Services, Inc. (B2) 9.375% due 02/01/09.............. 260 @530 United Rentals (North America), Inc. (B1) 10.75% due 04/15/08.............. 549 ------- 1,874 ------- CHEMICALS -- 3.4% 650 ARCO Chemical Co. (Ba3) 9.80% due 02/01/20............... 663 400 Equistar Chemicals L.P. (Ba1) 7.55% due 02/15/26............... 286 450 Equistar Chemicals L.P. (Baa3) 8.50% due 02/15/04............... 435 500 Equister Chemicals L.P. (Baa3) 8.75% due 02/15/09............... 459 +60 Georgia Gulf Corp. (B1) 10.375% due 11/01/07............. 61 @500 Huntsman Corp. (Caa1) 9.50% due 07/01/07............... 275 210 Huntsman ICI Chemicals LLC(B2) 10.125% due 07/01/09............. 207 425 Lyondell Chemical Co. (Ba3) 9.625% due 05/01/07.............. 423 1,800 Millennium America, Inc. (Ba1) 7.625% due 11/15/26.............. 1,351 ------- 4,160 ------- COMMUNICATIONS -- 15.8% 1,200 Adelphia Communications Corp. (B2) 10.25% due 06/15/11.............. 1,182 800 Asia Global Crossing Ltd. (B2) 13.375% due 10/15/10............. 640 +300 Centennial Communications (B3) 10.75% due 12/15/08.............. 278 400 Century Communications Corp. (B2) 8.875% due 01/15/07.............. 378 @810 Crown Castle International Corp. (B3) 9.375% due 08/01/11.............. 731 500 Crown Castle International Corp. (B3) 10.75% due 08/01/11.............. 484 1,300 Echostar DBS Corp. (B1) 9.375% due 02/01/09.............. 1,274 +510 Focal Communications Corp. (B3) 11.875% due 01/15/10............. 164 803 Global Crossing Holdings Ltd.(Ba2) 9.50% due 11/15/09............... 628 800 Global Crossing Holdings Ltd.(Ba2) 9.625% due 05/15/08.............. 632 +3,105 Level 3 Communications, Inc.(B3) 9.125% due 05/01/08.............. 1,289 +225 Loral Space & Communications Ltd. (B3) 9.50% due 01/15/06............... 169 1,530 Lucent Technologies, Inc. (Ba1) 6.45% due 03/15/29............... 883 +100 McLeodUSA, Inc. (B1) 8.125% due 02/15/09.............. 53 +100 McLeodUSA, Inc. (B1) 9.25% due 07/15/07............... 58 400 McLeodUSA, Inc. (B1) 9.50% due 11/01/08............... 224 +505 McLeodUSA, Inc. (B1) 11.375% due 01/01/09............. 318 300 McLeodUSA, Inc. (B1) 11.50% due 05/01/09.............. 183 160 Metromedia Fiber Network, Inc. (B2) 10.00% due 12/15/09.............. 61 2,240 Metromedia Fiber Network, Inc. (B2) 10.00% due 11/15/08.............. 851 780 Motorola, Inc. (A3) 5.22% due 10/01/97............... 437 +3,720 NEXTEL Communications, Inc.(B1) 9.375% due 11/15/09.............. 2,948 +890 NEXTLINK Communications, Inc. (B2) 10.75% due 11/15/08.............. 276 +1,990 NEXTLINK Communications, Inc. (B3) 12.50% due 04/15/06.............. 677 790 PanAmSat Corp. (Baa2) 6.875% due 01/15/28.............. 591 475 RCN Corp. (Caa2) 9.80% due 02/15/08............... 133 +275 Rogers Cantel, Inc. (Baa3) 9.75% due 06/01/16............... 270 +980 Spectrasite Holdings, Inc. (B3) 11.25% due 04/15/09.............. 451 150 Telecorp PCS, Inc. (B3) 10.625% due 07/15/10............. 141 590 Time Warner Telecom, Inc. (B2) 9.75% due 07/15/08............... 530 600 Tritel PCS, Inc. (B3) 10.375% due 01/15/11............. 549
The accompanying notes are an integral part of this financial statement. 80 82 ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- CORPORATE NOTES -- (CONTINUED) COMMUNICATIONS -- (CONTINUED) $ +1,865 Williams Communications Group, Inc. (B2) 10.875% due 10/01/09............. $ 755 3,020 Williams Communications Group, Inc. (B2) 11.70% due 08/01/08.............. 1,253 ------- 19,491 ------- CONSTRUCTION -- 1.4% 900 Centex Corp. (Baa2) 7.875% due 02/01/11.............. 895 +150 Del Webb Corp. (B2) 9.375% due 05/01/09.............. 152 350 Kaufman and Broad Home Corp. (Ba2) 7.75% due 10/15/04............... 350 100 MDC Holdings, Inc. (Ba2) 8.375% due 02/01/08.............. 100 125 Toll Corp. (Ba2) 7.75% due 09/15/07............... 120 100 Toll Corp. (Ba2) 8.75% due 11/15/06............... 100 ------- 1,717 ------- CONSUMER NON-DURABLES -- 1.2% @1,000 Fleming Cos., Inc. (Ba3) 10.125% due 04/01/08............. 1,025 600 Xerox Corp. (Ba1) 5.25% due 12/15/03............... 468 ------- 1,493 ------- CONSUMER SERVICES -- 1.7% +1,980 Service Corp. International (B1) 6.50% due 03/15/08............... 1,594 400 Service Corp. International (B1) 7.875% due 02/01/13.............. 314 @175 Stewart Enterprises, Inc. (B2) 10.75% due 07/01/08.............. 180 ------- 2,088 ------- DRUGS -- 0.6% 800 Watson Pharmaceuticals, Inc. (Ba1) 7.125% due 05/15/08.............. 761 ------- ENERGY & SERVICES -- 5.0% 200 Belco Oil & Gas Corp. (B1) 8.875% due 09/15/07.............. 204 125 Clark Refining & Marketing, Inc. (Ba3) 8.625% due 08/15/08.............. 106 200 CODA Energy, Inc. (B1) 10.50% due 04/01/06.............. 207 75 Cross Timbers Oil Co. (B1) 8.75% due 11/01/09............... 77 100 Newpark Resources, Inc. (B2) 8.625% due 12/15/07.............. 100 +553 Nuevo Energy Co. (B1) 9.50% due 06/01/08............... 556 242 P&L Coal Holdings Corp. (B2) 9.625% due 05/15/08.............. 255 550 Pioneer Natural Resources Co. (Ba1) 6.50% due 01/15/08............... 515 550 Plains Resources, Inc. (B2) 10.25% due 03/15/06.............. 561 520 Pogo Producing Co. (B1) 8.25% due 04/15/11............... 520 850 Pogo Producing Co. (B2) 10.375% due 02/15/09............. 910 150 R&B Falcon Corp. (Baa3) 6.50% due 04/15/03............... 152 100 R&B Falcon Corp. (Baa3) 7.375% due 04/15/18.............. 99 300 Snyder Oil Corp. (Baa3) 8.75% due 06/15/07............... 318 925 Tesoro Petroleum Corp. (B1) 9.00% due 07/01/08............... 944 400 Tuboscope, Inc. (Baa2) 7.50% due 02/15/08............... 360 100 Vintage Petroleum, Inc. (Ba3) 9.00% due 12/15/05............... 103 125 Vintage Petroleum, Inc. (Ba3) 9.75% due 06/30/09............... 136 ------- 6,123 ------- FINANCIAL SERVICES -- 0.3% 325 HMH Properties, Inc. (Ba2) 8.45% due 12/01/08............... 316 ------- FOOD, BEVERAGE & TOBACCO -- 0.7% +600 Canadaigua Brands, Inc. (B1) 8.50% due 03/01/09............... 604 390 Hercules, Inc. (Ba1) 6.60% due 08/01/27............... 278 ------- 882 ------- FOREST & PAPER PRODUCTS -- 4.9% 500 Boise Cascade Corp. (Baa3) 7.35% due 02/01/16............... 461 400 Georgia-Pacific Corp. (Baa2) 7.50% due 05/15/06............... 402 825 Georgia-Pacific Group (Baa3) 9.875% due 11/01/21.............. 847 150 Interpool, Inc. (B1) 7.35% due 08/01/07............... 131 635 Louisiana-Pacific Corp. (Baa3) 8.50% due 08/15/05............... 612 650 Potlatch Corp. (Baa3) 9.125% due 12/01/09.............. 634 @765 Potlatch Corp. (Ba1) 10.00% due 07/15/11.............. 769 @600 Stone Container Corp. (B2) 9.75% due 02/01/11............... 612 125 Stone Container Corp. (B2) 12.58% due 08/01/16.............. 131
81 83 ---------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND ---------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- CORPORATE NOTES -- (CONTINUED) FOREST & PAPER PRODUCTS -- (CONTINUED) $ 255 Tembec Industries, Inc. (Ba1) 8.50% due 02/01/11............... $ 260 @300 Tembec Industries, Inc. (Ba1) 8.50% due 02/01/11............... 306 880 Tenneco Packaging, Inc. (Baa3) 8.125% due 06/15/17.............. 850 ------- 6,015 ------- HEALTH SERVICES -- 9.9% 1,275 Columbia/HCA Healthcare Corp. (Ba1) 6.91% due 06/15/05............... 1,255 530 Columbia/HCA Healthcare Corp. (Ba1) 7.50% due 11/15/95............... 445 150 Columbia/HCA Healthcare Corp. (Ba1) 9.00% due 12/15/14............... 162 430 HCA -- The Healthcare Co. (Ba1) 7.125% due 06/01/06.............. 424 345 HEALTH SOUTH Corp. (Ba3) 3.25% due 04/01/03............... 326 530 HEALTH SOUTH Corp. (Ba1) 6.875% due 06/15/05.............. 510 460 HEALTH SOUTH Corp. (Ba1) 7.00% due 06/15/08............... 429 +250 HEALTH SOUTH Corp. (Ba3) 10.75% due 10/01/08.............. 270 1,325 IASIS Healthcare Corp. (B3) 13.00% due 10/15/09.............. 1,405 1,400 Manor Care, Inc. (Ba1) 7.50% due 06/15/06............... 1,374 500 Manor Care, Inc. (Ba1) 8.00% due 03/01/08............... 503 @660 Select Medical Corp. (B3) 9.50% due 06/15/09............... 640 200 Tenet Healthcare Corp. (Ba1) 7.625% due 06/01/08.............. 203 2,405 Tenet Healthcare Corp. (Ba1) 8.00% due 01/15/05............... 2,468 100 Tenet Healthcare Corp. (Ba1) 8.625% due 12/01/03.............. 103 @500 Triad Hospitals, Inc. (B1) 8.75% due 05/01/09............... 509 600 Triad Hospitals, Inc. (B2) 11.00% due 05/15/09.............. 647 500 Universal Health Services, Inc. (Ba2) 8.75% due 08/15/05............... 507 ------- 12,180 ------- HOTELS & GAMING -- 1.2% 1,175 Argosy Gaming Co. (B2) 10.75% due 06/01/09.............. 1,263 200 MGM Grand, Inc. (Baa3) 6.875% due 02/06/08.............. 192 50 Starwood Hotels & Resorts Worldwide, Inc. (Ba1) 6.75% due 11/15/05............... 49 ------- 1,504 ------- INSURANCE -- 2.5% 1,800 Aetna, Inc. (Baa2) 7.875% due 03/01/11.............. 1,750 1,180 Conseco, Inc. (B1) 6.80% due 06/15/05............... 1,027 @260 Magellan Health Services, Inc. (B2) 9.375% due 11/15/07.............. 264 ------- 3,041 ------- MACHINERY -- 1.1% +700 American Standard Co., Inc. (Ba2) 7.375% due 02/01/08.............. 691 @215 Briggs & Stratton Corp. (Ba1) 8.875% due 03/15/11.............. 217 *955 Grove Holdings LLC (C) 0.00% due 05/01/09............... 4 @385 Terex Corp. (B2) 10.375% due 04/01/11............. 397 ------- 1,309 ------- MEDIA & ENTERTAINMENT -- 8.0% 330 Allegiance Telecom, Inc. (B3) 11.75% due 02/15/08.............. 188 +355 Allegiance Telecom, Inc. (B3) 12.875% due 05/15/08............. 312 @620 American Greetings Corp. (Ba3) 11.75% due 07/15/08.............. 601 800 Charter Communications Holdings LLC (B2) 8.625% due 04/01/09.............. 760 @500 Charter Communications Holdings LLC (B2) 10.00% due 05/15/11.............. 508 900 Charter Communications Holdings LLC (B2) 11.125% due 01/15/11............. 950 300 Comcast Corp. (Ba2) 10.25% due 10/15/01.............. 304 25 CSC Holdings, Inc. (Ba3) 9.25% due 11/01/05............... 26 @835 Fox Family Worldwide, Inc. (B1) 10.25% due 11/01/07.............. 739 500 Fox Kids Worldwide, Inc. (B1) 9.25% due 11/01/07............... 505 +500 Fox Sports Network LLC (Ba1) 9.75% due 08/15/07............... 475
The accompanying notes are an integral part of this financial statement. 82 84 ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- CORPORATE NOTES -- (CONTINUED) MEDIA & ENTERTAINMENT -- (CONTINUED) $ 1,200 Hollinger International Publishing (Ba3) 9.25% due 02/01/06............... $ 1,206 670 Liberty Media Corp. (Baa3) 8.25% due 02/01/30............... 576 600 Park Place Entertainment Corp. (Ba2) 7.875% due 12/15/05.............. 602 400 Park Place Entertainment Corp. (Ba2) 9.375% due 02/15/07.............. 421 350 PRIMEDIA, Inc. (Ba3) 7.625% due 04/01/08.............. 315 300 PRIMEDIA, Inc. (Ba3) 8.50% due 02/01/06............... 286 250 PRIMEDIA, Inc. (Ba3) 10.25% due 06/01/04.............. 259 250 Six Flags Entertainment Corp.(B2) 8.875% due 04/01/06.............. 249 @300 Six Flags Entertainment Corp.(B3) 9.50% due 02/01/09............... 300 225 World Color Press, Inc. (Baa3) 7.75% due 02/15/09............... 220 ------- 9,802 ------- MEDICAL INSTRUMENTS & SUPPLIES -- 1.5% @390 Apogent Technologies, Inc. (Baa3) 8.00% due 04/01/11............... 400 @350 Omnicare, Inc. (Ba2) 8.125% due 03/15/11.............. 354 @500 Owens & Minor, Inc. (B1) 8.50% due 07/15/11............... 504 550 Owens & Minor, Inc. (B1) 10.875% due 06/01/06............. 580 ------- 1,838 ------- METALS, MINERALS & MINING -- 0.8% 350 AK Steel Holding Corp. (Ba2) 7.875% due 02/15/09.............. 341 300 Bethlehem Steel Corp. (Caa1) 7.625% due 08/01/04.............. 75 180 Newmont Mining Corp. (Baa3) 8.625% due 05/15/11.............. 178 375 Santa Fe Pacific Gold Corp. (Baa3) 8.375% due 07/01/05.............. 378 ------- 972 ------- REAL ESTATE -- 0.1% 100 Trizec Finance Ltd. (Baa3) 10.875% due 10/15/05............. 102 ------- TRANSPORTATION -- 2.6% 350 Newport News Shipbuilding, Inc. (Ba1) 8.625% due 12/01/06.............. 371 300 Newport News Shipbuilding, Inc. (Ba3) 9.25% due 12/01/06............... 319 1,525 Sequa Corp. (Ba2) 9.00% due 08/01/09............... 1,517 100 United Air Lines, Inc. (Ba1) 9.125% due 01/15/12.............. 95 800 United Air Lines, Inc. (Ba1) 10.67% due 05/01/04.............. 844 ------- 3,146 ------- UTILITIES -- 10.5% 475 AES Corp. (The) (Ba1) 9.375% due 09/15/10.............. 480 1,160 AES Corp. (The) (Ba1) 9.50% due 06/01/09............... 1,183 100 AES Corp. (The) (Ba3) 10.25% due 07/15/06.............. 103 1,100 Allied Waste North American, Inc. (Ba3) 7.875% due 01/01/09.............. 1,075 300 Allied Waste North American, Inc. (B2) 10.00% due 08/01/09.............. 308 450 Browning-Ferris Industries, Inc. (Ba3) 6.375% due 01/15/08.............. 404 650 Browning-Ferris Industries, Inc. (Ba3) 7.40% due 09/15/35............... 531 500 Calpine Corp. (Ba1) 8.50% due 02/15/11............... 482 330 CMS Energy Corp. (Ba3) 6.75% due 01/15/04............... 321 100 CMS Energy Corp. (Ba3) 7.50% due 01/15/09............... 93 250 CMS Energy Corp. (Ba3) 7.625% due 11/15/04.............. 248 120 CMS Energy Corp. (Ba3) 8.50% due 04/15/11............... 117 170 CMS Energy Corp. (Ba3) 9.875% due 10/15/07.............. 177 500 Cogentrix Energy, Inc. (Baa3) 8.75% due 10/15/08............... 518 125 El Paso Electric Co. (Ba3) 9.40% due 05/01/11............... 135 150 General Chemical Industrial Products, Inc. (B3) 10.625% due 05/01/09............. 87 145 Kansas Gas & Electric Co. (Aaa) 7.60% due 12/15/03............... 147 @1,860 Mission Energy Holding Co.(Baa3) 13.50% due 07/15/08.............. 1,832 1,300 Pacific Gas & Electric Co. (A2) 6.75% due 10/01/23............... 1,053 580 Pacific Gas & Electric Co. (A2) 7.05% due 03/01/24............... 470 @1,140 Sierra Pacific Power Co. (Aaa) 8.00% due 06/01/08............... 1,152 250 Waste Management, Inc. (Ba1) 6.875% due 05/15/09.............. 244
83 85 ---------------------------------------------------------- HARTFORD HIGH YIELD HLS FUND --------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- CORPORATE NOTES -- (CONTINUED) UTILITIES -- (CONTINUED) $ 960 Waste Management, Inc. (Ba1) 7.375% due 08/01/10.............. $ 964 1,000 Western Resources, Inc. (Ba1) 7.65% due 04/15/23............... 871 ------- 12,995 ------- Total corporate notes (cost $98,422)......................... $93,480 ======= FOREIGN/YANKEE BONDS & NOTES # -- 13.1% FOREIGN CORPORATIONS -- 11.9% 600 British Sky Broadcasting Group PLC (Ba1) 8.20% due 07/15/09............... $ 593 585 British Telecommunications PLC (Baa1) 8.625% due 12/15/30.............. 638 @650 Callahan Nordhein-Westfalen GmbH (B3) 14.00% due 07/15/10.............. 533 @650 E-Kabel Hessen GMBH & Co. (B3) 14.50% due 09/01/10.............. 501 EUR 600 Flowserve Finance B.V. (B3) 12.25% due 08/15/10.............. 554 450 Focal Communications (B3) 12.125% due 02/15/08............. 95 50 Gulf Canada Resources Ltd. 8.375% due 11/15/05.............. 54 100 Gulf Canada Resources Ltd. (Ba1) 9.625% due 07/01/05.............. 103 900 Inco Ltd. (Baa3) 9.60% due 06/15/22............... 926 EUR 585 Kappa Beheer BV (B2) 10.625% due 07/15/09............. 532 600 Koninkliijke (Royal) KPN N.V. (Baa2) 8.375% due 10/01/30.............. 552 EUR 780 KPNQuest N.V. (Ba1) 7.125% due 06/01/09.............. 360 EUR 1,175 Level 3 Communications, Inc. 11.25% due 03/15/10.............. 418 1,060 Marconi PLC (A3) 8.375% due 09/15/30.............. 888 EUR @600 Messer Griesheim Holdings AG (B2) 10.375% due 06/01/11............. 523 EUR 450 Metromedia Fiber Network, Inc. (B2) 10.00% due 12/15/09.............. 145 EUR 1,025 NTL Communications Corp. (B2) 9.875% due 11/15/09.............. 529 EUR @750 NTL Communications Corp. (B2) 12.375% due 02/01/08............. 457 700 Ono Finance PLC (Caa1) 13.00% due 05/01/09.............. 511 675 Petroleos Mexicanos (Baa3) 9.50% due 09/15/27............... 737 100 Placer Dome, Inc. (Baa2) 7.125% due 06/15/07.............. 98 @1,010 Quebecor Media, Inc. (B2) 11.125% due 07/15/11............. 1,007 1,350 Rogers Cablesystems, Inc. (Baa3) 10.00% due 12/01/07.............. 1,451 243 Rogers Cablesystems, Inc. (Baa3) 10.125% due 09/01/12............. 258 750 Teekay Shipping Corp. (Ba1) 8.32% due 02/01/08............... 761 1,010 Telewest Communications PLC (Aa1) 11.00% due 10/01/07.............. 846 250 Tembec Industries, Inc. (Ba1) 8.625% due 06/30/09.............. 255 EUR 670 United Pan-Europe Communications N.V. (Caa1) 10.875% due 11/01/07............. 210 65 Xerox Credit Corp. (Ba1) 6.10% due 12/16/03............... 54 ------- 14,589 ------- FOREIGN GOVERNMENT -- 1.2% EUR 420 France BTAN (Aaa) 3.00% due 07/12/01............... 355 EUR 150 France Government (Aaa) 7.50% due 07/25/01............... 127 250 Republic of Brazil (B1) 12.75% due 01/15/20.............. 221 250 Republic of Colombia (Ba2) 8.375% due 02/15/27.............. 174 @290 Republic of Ecuador (Caa2) 4.00% due 08/15/30............... 125 @17 Republic of Ecuador (Caa2) 12.00% due 11/15/12.............. 12 @600 Russian Federation (B3) 11.00% due 07/24/18.............. 519 ------- 1,533 ------- Total foreign/yankee bonds & notes (cost $18,782)................... $16,122 ======= SHARES ----------- PREFERRED STOCKS -- 0.6% COMMUNICATIONS -- 0.0% 8 NEXTLINK Communications, Inc. .... $ 34 ------- METALS, MINERALS & MINING -- 0.6% 29 Rio Algom Ltd. ................... 707 ------- Total preferred stocks (cost $828)............................ $ 741 =======
The accompanying notes are an integral part of this financial statement. 84 86 ----------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ------- SHORT-TERM SECURITIES -- 11.1% REPURCHASE AGREEMENT -- 11.1% $ 13,573 Joint Repurchase Agreement (See Note 2(d)) 3.95% due 07/02/01............... $13,573 ------- Total short-term securities (cost $13,573)......................... $13,573 ======= STATEMENT OF ASSETS AND LIABILITIES ASSETS Investment in securities, net of securities loaned....................................... $113,317 Investment in securities loaned (See Note 2(i))........................................ 10,599 -------- Total investment in securities, at value (total cost $131,605) -- see accompanying portfolio.................................... 123,916 Receivable for securities sold................. 175 Receivable for Fund shares sold................ 6,497 Receivable for dividends and interest.......... 2,828 Security lending collateral (See Note 2(i)).... 10,874 Cash and other assets.......................... 167 -------- Total assets................................... $144,457 ======== LIABILITIES Payable for securities purchased............... $ 4,999 Payable for Fund shares sold................... 5,752 Dividends payable.............................. 8 Security lending collateral payable to brokers (See Note 2(i)).............................. 10,874 -------- Total liabilities.............................. 21,633 ======== Net assets..................................... $122,824 ======== MARKET VALUE -------- SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.001 per share; 800,000 shares authorized; 130,276 shares outstanding.................................. $ 130 Capital surplus................................ 131,086 Accumulated undistributed net investment income....................................... 4,827 Accumulated net realized loss on investments... (5,503) Unrealized depreciation of investments......... (7,689) Unrealized depreciation of other assets and liabilities in foreign currencies............ (27) -------- Net assets..................................... $122,824 ======== Class IA Net asset value per share ($110,285 / 116,946 shares outstanding) (600,000 shares authorized)..................................... $0.94 ===== Class IB Net asset value per share ($12,539 / 13,330 shares outstanding) (200,000 shares authorized)........ $0.94 =====
* Non-income producing during the period. @ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $16,801 or 13.7% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). # The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. 85 87 -------------------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- ASSET-BACKED SECURITIES # -- 1.2% $ 4,000 California Infrastructure & Economic Development Bank Pacific Gas and Electric Co., Series 1997-1, Class A8 (Aaa) 6.48% due 12/26/09............ $ 4,057 7,600 Comed Transitional Funding Trust, Series 1998-1, Class A5 (Aaa) 5.44% due 03/25/07............ 7,611 2,136 Norwest Airlines Corp. Trust, Class C (Baa2) 11.30% due 06/21/14........... 2,449 825 PP&L Transition Bond Co., LLC, Series 1999-1, Class A5 (Aaa) 6.83% due 03/25/07............ 860 ---------- Total asset-backed securities.................... $ 14,977 ========== CORPORATE NOTES # -- 38.3% AGRICULTURE & FISHING -- 0.1% @1,650 Cargill, Inc. (Aa3) 7.25% due 11/01/36............ $ 1,567 ---------- BANKS -- 9.5% 7,000 Bayerische Landesbank Girozentrale (NY) (Aaa) 6.20% due 02/09/06............ 6,967 34,700 Fannie Mae (Aaa) 6.625% due 09/15/09........... 35,945 2,350 Federal Home Loan Bank (Aaa) 5.84% due 02/20/07............ 2,298 35,850 Federal Home Loan Mortgage Corp. (Aaa) 6.625% due 09/15/09........... 37,131 22,600 Ford Motor Credit Co. (A2) 6.875% due 02/01/06........... 22,896 5,000 Ford Motor Credit Co. (A2) 7.375% due 10/28/09........... 5,069 +5,000 Ford Motor Credit Co. (A2) 7.375% due 02/01/11........... 5,048 2,500 Ford Motor Credit Co. (A2) 7.875% due 06/15/10........... 2,607 4,850 Golden State Holdings, Inc. (Ba1) 6.75% due 08/01/01............ 4,847 ---------- 122,808 ---------- CHEMICALS -- 0.5% 5,700 du Pont (E.I.) de Nemours & Co. (Aa3) 6.75% due 09/01/07............ 5,890 ---------- COMMUNICATIONS -- 1.5% 1,500 Chesapeake & Potomac Telephone Co. (Aa2) 8.30% due 08/01/31............ 1,644 7,400 Global Crossing Holdings Ltd.(Ba2) 9.50% due 11/15/09............ 5,791
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- COMMUNICATIONS -- (CONTINUED) $ 2,700 Global Crossing Holdings Ltd.(Ba2) 9.625% due 05/15/08........... $ 2,133 7,881 Lucent Technologies, Inc. (Ba1) 6.45% due 03/15/29............ 4,548 2,510 Lucent Technologies, Inc. (Ba1) 6.50% due 01/15/28............ 1,428 4,300 Motorola, Inc. (A3) 5.22% due 10/01/97............ 2,410 2,200 Williams Communications Group, Inc. (B2) 10.875% due 10/01/09.......... 891 ---------- 18,845 ---------- DRUGS -- 1.3% +16,000 American Home Products Corp. (A3) 5.875% due 03/15/04........... 16,157 ---------- ENERGY & SERVICES -- 3.8% 5,000 Lasmo (USA), Inc. (A1) 7.50% due 06/30/06............ 5,342 6,500 Noble Drilling Corp. (Baa1) 7.50% due 03/15/19............ 6,497 6,800 Occidental Petroleum Corp. (Baa3) 7.375% due 11/15/08........... 7,040 3,500 Ocean Energy, Inc. (Baa3) 7.625% due 07/01/05........... 3,605 1,000 Pioneer Natural Resources Co. (Ba1) 6.50% due 01/15/08...... 937 5,650 Pioneer Natural Resources Co. (Ba1) 7.20% due 01/15/28............ 4,750 1,975 R&B Falcon Corp. (Baa3) 6.75% due 04/15/05............ 2,005 2,000 R&B Falcon Corp. (Baa3) 7.375% due 04/15/18........... 1,980 1,000 Tesoro Petroleum Corp. (B1) 9.00% due 07/01/08............ 1,020 1,000 Tosco Corp. (Baa2) 8.125% due 02/15/30........... 1,090 3,150 Transocean Sedco Forex, Inc. (Baa2) 7.50% due 04/15/31............ 3,155 2,850 Tuboscope, Inc. (Baa2) 7.50% due 02/15/08............ 2,565 2,500 Union Oil Co. of California (Baa1) 9.375% due 02/15/11........... 2,925 1,500 Valero Energy Corp. (Baa3) 8.375% due 06/15/05........... 1,607 4,500 Vaster Resources, Inc. (Aa2) 6.50% due 04/01/09............ 4,536 ---------- 49,054 ----------
The accompanying notes are an integral part of this financial statement. 86 88 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- CORPORATE NOTES # -- (CONTINUED) FINANCIAL SERVICES -- 1.6% $ 6,395 ERAC USA Finance Co. (Baa1) 8.00% due 01/15/11............ 6,538 +3,800 General Motors Acceptance Corp. (A2) 4.13% due 08/18/03............ 3,775 +9,900 NiSource Finance Corp. (Baa2) 7.875% due 11/15/10........... 10,489 ---------- 20,802 ---------- FOOD, BEVERAGE & TOBACCO --2.6% 12,120 Archer-Daniels-Midland Co. (A1) 6.95% due 12/15/97............ 10,993 6,750 ConAgra Foods, Inc. (Baa1) 7.00% due 10/01/28............ 6,236 12,200 ConAgra Foods, Inc. (Baa1) 7.50% due 09/15/05............ 12,662 @3,700 Kellogg Co. (Baa2) 7.45% due 04/01/31............ 3,698 ---------- 33,589 ---------- FOREST & PAPER PRODUCTS -- 1.5% 4,100 Georgia-Pacific Corp. (Baa2) 7.50% due 05/15/06............ 4,121 5,600 International Paper Co. (Baa1) 6.875% due 04/15/29........... 5,038 500 Interpool, Inc. (B1) 7.20% due 08/01/07............ 435 4,500 Mead Corp. (The) (A3) 7.55% due 03/01/47............ 4,009 6,300 Weyerhaeuser Co. (A3) 7.25% due 07/01/13............ 6,332 ---------- 19,935 ---------- HEALTH SERVICES -- 3.1% 2,250 Columbia/HCA Healthcare Corp. (Ba1) 7.05% due 12/01/27............ 1,899 1,675 Columbia/HCA Healthcare Corp. (Ba1) 7.50% due 12/15/23............ 1,491 3,150 Columbia/HCA Healthcare Corp. (Ba1) 7.50% due 11/15/95............ 2,646 9,035 HCA -- The Healthcare Co. (Ba1) 7.125% due 06/01/06........... 8,915 3,520 HEALTH SOUTH Corp. (Ba1) 6.875% due 06/15/05........... 3,386 570 HEALTH SOUTH Corp. (Ba1) 7.00% due 06/15/08............ 532 4,225 HEALTH SOUTH Corp. (Ba1) 8.50% due 02/01/08............ 4,276 +1,000 HEALTH SOUTH Corp. (Ba3) 10.75% due 10/01/08........... 1,080 6,540 Manor Care, Inc. (Ba1) 7.50% due 06/15/06............ 6,419
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- HEALTH SERVICES -- (CONTINUED) $ 1,120 Manor Care, Inc. (Ba1) 8.00% due 03/01/08............ $ 1,126 7,640 Tenet Healthcare Corp. (Ba1) 8.00% due 01/15/05............ 7,841 ---------- 39,611 ---------- INSURANCE -- 1.6% +11,150 Aetna, Inc. (Baa2) 7.875% due 03/01/11........... 10,843 4,300 Trenwick Group, Inc. (Baa2) 6.70% due 04/01/03............ 4,277 5,400 Wellpoint Health Networks, Inc. (Baa1) 6.375% due 06/15/06........... 5,357 ---------- 20,477 ---------- MEDIA & ENTERTAINMENT -- 2.5% 1,000 Continental Cablevision, Inc. (A3) 9.50% due 08/01/13............ 1,111 17,400 Liberty Media Corp. (Baa3) 8.25% due 02/01/30............ 14,961 4,700 News America Holdings, Inc. (Baa3) 7.75% due 12/01/45............ 4,266 12,000 USA Networks, Inc. (Baa3) 6.75% due 11/15/05............ 12,107 ---------- 32,445 ---------- MEDICAL INSTRUMENTS & SUPPLIES -- 0.5% @3,600 Apogent Technologies, Inc. (Baa3) 8.00% due 04/01/11............ 3,688 @2,800 Omnicare, Inc. (Ba2) 8.125% due 03/15/11........... 2,828 ---------- 6,516 ---------- METALS, MINERALS & MINING -- 1.6% 13,750 Alcan, Inc. (A2) 7.25% due 03/15/31............ 13,551 2,570 Newmont Mining Corp. (Baa3) 8.625% due 05/15/11........... 2,538 5,140 Santa Fe Pacific Gold Corp.(Baa3) 8.375% due 07/01/05........... 5,178 ---------- 21,267 ---------- RESEARCH & TESTING FACILITIES -- 0.3% 4,000 Quest Diagnostics, Inc. (Ba1) 6.75% due 07/12/06............ 3,964 ---------- RETAIL -- 0.7% +8,585 Stop & Shop Cos., Inc. (The) (Baa2 Other) 9.75% due 02/01/02............ 8,794 ---------- SOFTWARE & SERVICES -- 0.8% 10,000 Computer Sciences Corp. (A2) 6.75% due 06/15/06............ 9,906 ----------
87 89 -------------------------------------------------------------------------------- HARTFORD BOND HLS FUND, INC. -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- CORPORATE NOTES # -- (CONTINUED) TRANSPORTATION -- 1.7% $ 4,500 Fedex Corp. (Baa2) 6.625% due 02/12/04........... $ 4,588 8,230 Rockwell International Corp. (A1) 5.20% due 01/15/98............ 5,425 6,000 Rockwell International Corp. (A1) 6.70% due 01/15/28............ 5,326 @2,500 Sequa Corp. (Ba2) 8.875% due 04/01/08........... 2,475 4,447 US Airways, Inc. (A2) 6.76% due 04/15/08............ 4,324 ---------- 22,138 ---------- UTILITIES -- 3.1% 1,750 Cleveland Electric Illuminating Co. (Aaa) 7.13% due 07/01/07............ 1,805 3,600 CMS Panhandle Holding Co. (Baa 3) 6.125% due 03/15/04........... 3,540 3,225 CMS Energy Corp. (Ba3) 6.75% due 01/15/04............ 3,138 800 CMS Energy Corp. (Ba3) 7.50% due 01/15/09............ 740 1,800 CMS Energy Corp. (Ba3) 9.875% due 10/15/07........... 1,876 1,341 El Paso Electric Co. (Ba3) 9.40% due 05/01/11............ 1,449 @9,225 Mission Energy Holding Co. (Baa 3) 13.50% due 07/15/08........... 9,087 3,100 PacifiCorp. (A2) 6.12% due 01/15/06............ 3,054 4,000 Public Service Electric & Gas Co. (Aaa) 7.00% due 09/01/24............ 3,862 @12,300 Sierra Pacific Power Co. (Aaa) 8.00% due 06/01/08............ 12,432 ---------- 40,983 ---------- Total corporate notes.......... $ 494,748 ========== FOREIGN/YANKEE BONDS & NOTES # -- 14.7% FOREIGN CORPORATIONS -- 8.3% 8,250 Amoco Co. (Aa1) 6.00% due 06/09/08............ $ 8,097 +15,000 Bank of Tokyo-Mitsubishi Ltd. (A3) 8.40% due 04/15/10............ 15,903 8,500 British Sky Broadcasting Group PLC (Ba1) 8.20% due 07/15/09............ 8,402 10,300 British Telecommunications PLC (Baa1) 8.625% due 12/15/30........... 11,233 6,500 Enterprise Oil PLC (Baa1) 6.50% due 05/01/05............ 6,498
PRINCIPAL MARKET AMOUNT VALUE ----------- ---------- FOREIGN CORPORATIONS -- (CONTINUED) $ 8,000 Enterprise Oil PLC (Baa1) 6.70% due 09/15/07............ $ 8,027 1,000 Gulf Canada Resources Ltd. (Aa1) 8.25% due 03/15/17............ 1,078 7,900 Inter-American Development Bank (Aaa) 8.875% due 06/01/09........... 9,280 +2,000 Koninkliijke (Royal) Phillips Electronic N.V. (A3) 7.75% due 05/15/25............ 2,039 3,500 Koninkliijke (Royal) KPN N.V. (Baa2) 8.00% due 10/01/10............ 3,357 +5,115 Koninkliijke (Royal) KPN N.V. (Baa2) 8.375% due 10/01/30........... 4,705 7,070 Marconi PLC (A3) 8.375% due 09/15/30........... 5,921 3,600 Placer Dome, Inc. (Baa2) 7.125% due 05/15/03........... 3,647 7,300 Placer Dome, Inc. (Baa2) 7.125% due 06/15/07........... 7,157 3,340 Potash Corp. Saskatchewan (Baa 2) 7.75% due 05/31/11............ 3,410 1,230 Rogers Cablesystems, Inc. (Baa 3) 10.125% due 09/01/12.......... 1,307 3,660 Shaw Communications, Inc. (Baa 2) 8.25% due 04/11/10............ 3,846 3,340 Stora Enso Oyj (Baa1) 7.375% due 05/15/11........... 3,383 ---------- 107,290 ---------- FOREIGN GOVERNMENT -- 6.4% EUR 27,500 Bundesschatzanweisungen (Aaa) 4.50% due 03/15/02............ 23,288 EUR 5,200 France BTAN (Aaa) 3.00% due 07/12/01............ 4,400 EUR 14,800 France BTAN (AAA S&P) 4.75% due 03/12/02............ 12,567 EUR 2,850 France O.A.T. (Aaa) 7.50% due 07/25/01............ 2,416 EUR 5,250 Italy BTPS (Aa3) 4.50% due 07/01/01............ 4,444 +15,900 Province of Quebec (A2) 5.50% due 04/11/06............ 15,660 8,850 Province of Quebec (A2) 5.75% due 02/15/09............ 8,518 EUR 13,800 Republic of Italy (Aa3) 3.00% due 06/15/02............ 11,536 ---------- 82,829 ---------- Total foreign/yankee bonds & notes......................... $ 190,119 ==========
The accompanying notes are an integral part of this financial statement. 88 90 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------- ---------- PREFERRED STOCKS -- 0.2% ENERGY & SERVICES -- 0.2% 99 Coastal Finance Corp. ......... $ 2,479 ---------- Total preferred stocks......... $ 2,479 ========== PRINCIPAL AMOUNT ----------- U.S. TREASURIES & FEDERAL AGENCIES -- 39.2% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 0.4% $ 5,000 6.00% due 04/01/31-05/01/31.... $ 4,807 ---------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 21.3% 202,749 6.00% due 07/01/12-07/01/31.... 199,756 2,817 6.48% due 12/01/05............. 2,884 73,050 6.50% due 05/01/31-07/01/31.... 71,919 ---------- 274,559 ---------- U.S. TREASURY BONDS -- 6.6% +56,900 6.00% due 08/15/09............. 59,172 +8,200 6.50% due 08/15/05............. 8,682 +7,950 8.75% due 08/15/20............. 10,522 +5,830 11.875% due 11/15/03........... 6,786 ---------- 85,162 ---------- U.S. TREASURY NOTES -- 10.9% +12,200 4.75% due 02/15/04............. 12,266 +24,000 5.25% due 05/15/04............. 24,422 +39,700 5.50% due 05/15/09............. 40,049 +6,200 5.75% due 11/15/05............. 6,385 +21,980 5.875% due 11/15/04............ 22,735 +14,600 6.50% due 10/15/06............. 15,528 2,300 6.75% due 05/15/05............. 2,449 +16,350 7.875% due 11/15/04............ 17,904 ---------- 141,738 ---------- Total U.S. treasuries & federal agencies...................... $ 506,266 ========== SHORT-TERM SECURITIES -- 5.8% CORPORATE NOTES # -- 0.8% $ @10,000 Entergy Gulf States, Inc. (Baa1) 8.04% due 06/02/03............ $ 10,015 ---------- REPURCHASE AGREEMENT -- 5.0% 65,470 Joint Repurchase Agreement (See Note 2(d)) 3.95% due 07/02/01............ 65,470 ---------- Total short-term securities.... $ 75,485 ==========
MARKET VALUE ---------- DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $15,182)............................ 1.2% $ 14,977 Total corporate notes (cost $498,993)........................... 38.3 494,748 Total foreign/yankee bonds & notes (cost $192,540)..................... 14.7 190,119 Total preferred stocks (cost $2,214)............................. 0.2 2,479 Total U.S. treasuries & federal agencies (cost $508,066)............ 39.2 506,266 Total short-term securities (cost $75,470)............................ 5.8 75,485 ----- ---------- Total investment in securities (total cost $1,292,465).................... 99.4 1,284,074 Cash, receivables and other assets.... 4.1 52,866 Securities lending collateral (See Note 2)(i))......................... 20.1 260,017 Payable for securities purchased...... (3.5) (44,927) Payable for Fund shares redeemed...... (0.0) (26) Securities lending collateral payable to brokers (See Note 2(i)).......... (20.1) (260,017) Other liabilities..................... (0.0) (180) ----- ---------- Net assets............................ 100.0% $1,291,807 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value $0.10 per share; 2,000,000 shares authorized; 1,184,373 shares outstanding.......................... $ 118,437 Capital surplus............................... 1,140,210 Accumulated undistributed net investment income...................................... 34,239 Accumulated net realized gain on investments................................. 7,385 Unrealized depreciation of investments........ (8,391) Unrealized depreciation of other assets and liabilities in foreign currencies........... (73) ---------- Net assets.................................... $1,291,807 ==========
Class IA Net asset value per share ($1,213,999 / 1,112,929 shares outstanding) (1,600,000 shares authorized)..................................... $1.09 ===== Class IB Net asset value per share ($77,808 / 71,444 shares outstanding) (400,000 shares authorized)........ $1.09 =====
@ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $45,790 or 3.5% of net assets. + All or a portion of this security was on loan as of June 30, 2001 (See Note 2(i)). # The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. 89 91 -------------------------------------------------------------------------------- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- ASSET-BACKED SECURITIES + -- 0.3% $ 1,001 Corestates Home Equity Trust, Series 1994-1, Class A (Aaa) 6.65% due 05/15/09.................. $ 1,015 -------- Total asset-backed securities........ $ 1,015 ======== COLLATERALIZED MORTGAGE OBLIGATIONS + -- 17.0% 5,020 Citicorp Mortgage Securities, Inc., Series 1998-8, Class A3 (AAA S&P) 6.75% due 09/25/28.................. $ 4,992 2,830 Countrywide Home Loans, Series 1998-6, Class A (AAA S&P) 6.50% due 06/25/13.................. 2,841 @394 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B1 (A S&P) 7.25% due 09/25/11.................. 397 @131 DLJ Mortgage Acceptance Corp., Series 1996-I, Class B2 (Bbb) 7.25% due 09/25/11.................. 131 3,000 Fannie Mae, Series 1997-28, Class PD (Aaa Other) 7.50% due 07/18/23.................. 3,089 703 Fannie Mae, Series 1998-12, Class AM (Aaa Other) 9.00% due 03/18/28.................. 703 2,413 GE Capital Mortgage Services, Inc., Series 1993-10, Class A8 (Aaa) 6.50% due 09/25/23.................. 2,440 539 GE Capital Mortgage Services, Inc., Series 1994-19, Class A6 (Aaa) 7.50% due 06/25/24.................. 542 2,873 GE Capital Mortgage Services, Inc., Series 1994-26, Class A (Aaa) 6.894% due 07/25/09................. 2,919 458 GE Capital Mortgage Services, Inc., Series 1996-1, Class B2 (AA S&P) 6.75% due 02/25/11.................. 454 1,371 GE Capital Mortgage Services, Inc., Series 1996-1, Class M (AAA S&P) 6.75% due 02/25/11.................. 1,391 467 GE Capital Mortgage Services, Inc., Series 1996-10, Class B1 (AA- S&P) 6.75% due 06/25/11.................. 470 467 GE Capital Mortgage Services, Inc., Series 1996-10, Class B2 (BBB+ S&P) 6.75% due 06/25/11.................. 462 2,626 GE Capital Mortgage Services, Inc., Series 1998-7, Class A (AAA S&P) 6.50% due 04/25/13.................. 2,666 5,265 GE Capital Mortgage Services, Inc., Series 1999-16, Class A (AAA S&P) 6.50% due 07/25/14.................. 5,333 1,397 Housing Securities, Inc., Series 1993-E, Class EI5 (Aaa) 10.00% due 09/25/08................. 1,481
PRINCIPAL MARKET AMOUNT VALUE --------- -------- COLLATERALIZED MORTGAGE OBLIGATIONS -- (CONTINUED) $ 4,142 Norwest Asset Securities Corp. Series 1999-22, Class A1 (AAA S&P) 6.50% due 09/25/14.................. $ 4,204 436 PNC Mortgage Securities Corp., Series 1996-2, Class B1 (AA) 6.60% due 02/25/11.................. 439 145 PNC Mortgage Securities Corp., Series 1996-2, Class B2 (A Fitch) 6.60% due 02/25/11.................. 146 233 PNC Mortgage Securities Corp., Series 1996-2, Class B3 (BBB Fitch) 6.60% due 02/25/11.................. 230 4,200 Prudential Home Mortgage Securities Co., Series 1994-8, Class A3 (Aaa) 6.75% due 03/25/24.................. 4,244 922 Prudential Home Mortgage Securities Co., Series 1996-3, Class B1 (A S&P) 6.75% due 03/25/11.................. 914 461 Prudential Home Mortgage Securities Co., Series 1996-3, Class B2 (BBB S&P) 6.75% due 03/25/11.................. 457 559 Residential Funding Mortgage Securities I, Inc., Series 1995-S18, Class M3 (A3) 7.00% due 11/25/10.................. 558 215 Residential Funding Mortgage Securities I, Inc., Series 1996-S11, Class M3 (AA+ S&P) 7.00% due 04/25/11.................. 220 412 Residential Funding Mortgage Securities I, Inc., Series 1996-S19, Class M3 (AA Fitch) 7.50% due 09/25/11.................. 418 445 Residential Funding Mortgage Securities I, Inc., Series 1996-S5, Class M3 (AAA S&P) 6.75% due 02/25/11.................. 450 1,737 Residential Funding Mortgage Securities I, Inc., Series 1998-S22, Class A1 (AAA S&P) 6.50% due 09/25/13.................. 1,761 5,777 Residential Funding Mortgage Securities I, Inc., Series 1999-S15, Class A2 (AAA S&P) 6.50% due 06/25/14.................. 5,792 2,406 Residential Funding Mortgage Securities I, Inc., Series 1999-S22, Class A2 (AAA S&P) 7.00% due 10/25/14.................. 2,477 7,236 Residential Funding Mortgage Securities I, Inc., Series 2001-S3, Class A1 (AAA S&P) 7.50% due 01/25/31.................. 7,354 -------- Total collateralized mortgage obligations......................... $ 59,975 ========
The accompanying notes are an integral part of this financial statement. 90 92 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- -------- CORPORATE NOTES + -- 12.6% BANKS -- 12.6% $ 5,500 Fannie Mae (Aaa) 6.625% due 11/15/10................. $ 5,691 10,000 Federal Home Loan Bank (Aaa) 5.80% due 09/02/08.................. 9,922 30,000 Freddie Mac (Aaa) 5.625% due 03/15/11................. 28,800 -------- Total corporate notes................ $ 44,413 ======== U.S. TREASURIES & FEDERAL AGENCIES -- 76.7% FEDERAL HOME LOAN MORTGAGE ASSOCIATION -- 38.7% 74,250 6.00% due 05/01/16 - 06/01/31........ $ 71,753 56,750 6.50% due 05/01/32 - 06/01/31........ 55,904 3,212 7.00% due 10/01/26 - 07/01/29........ 3,239 906 7.50% due 01/01/24 - 06/01/25........ 932 1,499 8.00% due 02/01/13 - 11/01/24........ 1,570 861 8.50% due 06/01/03 - 05/01/25........ 902 516 9.00% due 07/01/02 - 10/01/06........ 524 830 9.50% due 11/01/08................... 865 713 10.00% due 09/01/05 - 11/01/20....... 776 -------- 136,465 -------- FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 26.4% 10,001 6.00% due 05/01/16 - 06/01/31........ 9,726 5,057 6.10% due 04/01/11................... 5,017 7,473 7.00% due 11/01/13................... 7,640 56,188 7.50% due 12/01/14 - 04/01/31........ 57,517 11,517 8.00% due 10/01/29 - 02/01/31........ 11,910 1,037 9.00% due 05/01/21 - 09/01/21........ 1,115 328 11.00% due 04/01/09.................. 346 -------- 93,271 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 8.5% 18,696 7.50% due 04/15/22 - 04/20/30........ 19,201 8,436 8.50% due 06/15/17 - 04/15/30........ 8,829 399 9.00% due 01/15/25 - 12/15/25........ 427 1,378 9.50% due 10/15/09 - 11/15/09........ 1,504 53 10.00% due 05/15/13.................. 59 23 12.50% due 03/15/15 - 08/15/15....... 27 -------- 30,047 -------- U.S. TREASURY INFLATION-INDEXED SECURITIES -- 1.2% 4,050 3.50% due 01/15/11................... 4,081 -------- U.S. TREASURY NOTES -- 1.9% 6,500 5.75% due 11/15/05................... $ 6,694 -------- Total U.S. treasuries & federal agencies............................ $270,558 ========
PRINCIPAL MARKET AMOUNT VALUE --------- -------- SHORT-TERM SECURITIES -- 15.8% REPURCHASE AGREEMENT -- 15.8% $55,853 Joint Repurchase Agreement (See Note 2(d)) 3.95% due 07/02/01.................. $ 55,853 -------- Total short-term securities.......... $ 55,853 ========
DIVERSIFICATION OF NET ASSETS: Total asset-backed securities (cost $989)................................. 0.3% $ 1,015 Total collateralized mortgage obligations (cost $58,687)............ 17.0 59,975 Total corporate notes (cost $45,112).... 12.6 44,413 Total U.S. treasuries & federal agencies (cost $268,805)....................... 76.7 270,558 Total short-term securities (cost $55,853).............................. 15.8 55,853 ----- -------- Total investment in securities (total cost $429,446)................. 122.4 431,814 Cash, receivables and other assets...... 0.7 2,755 Payable for securities purchased........ (23.0) (81,243) Payable for Fund shares redeemed........ (0.1) (454) Other liabilities....................... (0.0) (11) ----- -------- Net assets.............................. 100.0% $352,861 ===== ========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 800,000 shares authorized; 318,350 shares outstanding................................... $ 31,835 Capital surplus................................. 319,510 Accumulated undistributed net investment income........................................ 10,126 Accumulated net realized loss on investments.... (10,978) Unrealized appreciation of investments.......... 2,368 -------- Net assets...................................... $352,861 ======== Class IA Net asset value per share ($342,412 / 308,898 shares outstanding) (600,000 shares authorized)................................... $1.11 ----- ----- Class IB Net asset value per share ($10,449 / 9,452 shares outstanding) (200,000 shares authorized)................................... $1.11 ----- -----
@ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $528 or 0.1% of net assets. + The ratings associated with the corresponding bond holdings were obtained from Moody's as of June 30, 2001, unless another source is noted for a particular security. 91 93 -------------------------------------------------------------------------------- HARTFORD MONEY MARKET HLS FUND, INC. -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- COMMERCIAL PAPER -- 62.9% $ 10,000 7-Eleven 3.95% due 07/31/01................ $ 9,968 10,000 American Express Co. 3.56% due 09/10/01................ 9,931 25,000 American Express Co. 3.91% due 07/30/01................ 24,924 5,000 American Honda Finance Corp. 4.64% due 07/09/01................ 4,995 31,425 Anheuser-Busch Cos., Inc. 3.85% due 08/28/01................ 31,233 5,000 Anheuser-Busch Cos., Inc. 3.90% due 08/20/01................ 4,973 20,000 BankAmerica Corp. 4.49% due 08/07/01................ 19,910 15,000 Bradford & Bingley Building 3.57% due 09/24/01................ 14,875 20,000 Bradford & Bingley Building 4.22% due 07/23/01................ 19,951 20,000 Campbell Soup Co. 3.76% due 08/30/01................ 19,877 5,000 Campbell Soup Co. 3.86% due 08/27/01................ 4,970 15,000 Coca-Cola Co. (The) 4.17% due 07/23/01................ 14,964 25,500 Dow Chemical Co. (The) 3.79% due 08/13/01................ 25,387 23,000 du Pont (E.I.) de Nemours & Co. 3.83% due 08/10/01................ 22,905 35,000 Eksportfinans 3.59% due 09/18/01................ 34,728 10,000 Electronic Data Systems Corp. 3.93% due 07/20/01................ 9,980 31,000 Federal Home Loan Mortgage 3.67% due 03/15/02................ 30,191 9,000 Federal Home Loan Mortgage 3.68% due 03/28/02................ 8,753 10,000 Federal Home Loan Mortgage 3.75% due 03/27/02................ 9,721 15,000 Federal National Mortgage Association 3.74% due 03/22/02................ 14,590 35,000 Federal National Mortgage Association 4.86% due 08/09/01................ 34,836 20,000 Ford Motor Credit Corp. 3.86% due 08/01/01................ 19,936 35,000 Gannett Co., Inc. 3.90% due 07/05/01................ 34,989 10,000 General Electric Capital Corp. 3.88% due 08/20/01................ 9,947 20,000 General Electric Capital Corp. 4.63% due 07/10/01................ 19,979 5,000 General Motors Acceptance Corp. 3.86% due 07/31/01................ 4,984 5,000 Gillette Co. (The) 4.63% due 07/16/01................ 4,991
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- $ 20,000 Gillette Co. (The) 4.63% due 07/09/01................ $ 19,982 30,000 Halifax PLC 3.60% due 09/18/01................ 29,766 15,000 Hewlett-Packard Co. 3.89% due 08/13/01................ 14,932 20,000 Hewlett-Packard Co. 4.18% due 07/31/01................ 19,933 30,500 Honeywell International, Inc. 3.65% due 09/21/01................ 30,250 35,000 International Business Machines Corp. 4.19% due 07/18/01................ 34,935 35,000 International Lease Finance Corp. 4.19% due 07/23/01................ 34,914 10,000 KFW International Finance, Inc. 3.71% due 09/14/01................ 9,924 10,000 KFW International Finance, Inc. 4.18% due 07/24/01................ 9,974 11,900 Nationwide Building Society 4.53% due 09/19/01................ 11,782 20,000 Nationwide Building Society 4.57% due 07/09/01................ 19,982 20,000 Pfizer, Inc. 3.80% due 07/24/01................ 19,954 6,000 Pfizer, Inc. 3.90% due 07/02/01................ 6,000 35,000 State Street Corp. 3.86% due 08/20/01................ 34,816 13,000 Svenska Handelsbanken, Inc. 4.60% due 09/17/01................ 12,872 24,500 Swedbank 4.55% due 08/06/01................ 24,392 35,000 Textron, Inc. 4.13% due 07/02/01................ 35,000 25,000 Toronto-Dominion Holdings 4.54% due 07/10/01................ 24,975 10,000 Toronto-Dominion Holdings 5.30% due 07/17/01................ 9,978 19,000 Toyota Motor Credit Corp. 3.83% due 07/23/01................ 18,958 30,000 UBS Finance (Delaware), Inc. 3.56% due 09/04/01................ 29,810 5,000 UBS Finance (Delaware), Inc. 4.65% due 07/16/01................ 4,991 15,000 Verizon Global Funding Corp. 3.65% due 08/10/01................ 14,941 14,300 Verizon Global Funding Corp. 3.78% due 08/17/01................ 14,231 10,000 Washington Post Co. (The) 4.54% due 07/09/01................ 9,991 20,000 Washington Post Co. (The) 4.62% due 07/16/01................ 19,964 ---------- Total commercial paper............. $ 983,735 ==========
The accompanying notes are an integral part of this financial statement. 92 94 --------------------------------------------------------------------------------
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- CORPORATE NOTES -- $30.3% $ 30,000 Australia & New Zealand Banking Group 3.91% due 12/13/01................ $ 30,015 28,500 Bank One Corp. 3.947% due 12/20/01............... 28,527 5,500 Bank One Corp. 4.904% due 01/07/02............... 5,504 13,000 BankAmerica Corp. 4.235% due 02/11/02............... 13,009 @5,000 Cargill, Inc. 4.51% due 01/22/02................ 5,003 @11,000 Cargill, Inc. 4.90% due 01/14/02................ 11,011 30,000 Caterpillar Financial Services 4.176% due 02/28/02............... 30,036 10,000 Chase Manhattan Corp. 4.51% due 01/29/02................ 10,015 14,200 Chase Manhattan Corp. 4.53% due 04/23/02................ 14,220 19,000 Citicorp 4.39% due 02/21/02................ 19,046 20,000 Deere (John) Capital Corp. 4.71% due 01/14/02................ 19,992 20,000 First Union National Bank 4.05% due 11/21/01................ 20,000 13,500 Fleet National Bank 4.03% due 03/06/02................ 13,511 11,000 Fleet National Bank 4.439% due 02/01/02............... 11,013 14,500 Ford Motor Credit Corp. 5.125% due 10/15/01............... 14,482 9,500 General Motors Acceptance Corp. 4.018% due 12/10/01............... 9,497 16,000 General Motors Acceptance Corp. 4.86% due 01/15/02................ 16,006 15,000 Goldman Sachs Group, Inc. (The) 3.798% due 03/21/02............... 15,000 20,000 Goldman Sachs Group, Inc. (The) 3.925% due 12/27/01............... 20,028 @30,000 Honda Motor Corp. 4.279% due 02/08/02............... 30,000 14,000 Key Bank N.A. 4.71% due 10/26/01................ 14,017 11,500 Merrill Lynch & Co., Inc. 4.39% due 01/28/02................ 11,507 9,000 Morgan (J.P.) Chase & Co., Inc. 4.54% due 01/28/02................ 9,014 32,500 Morgan Stanley Dean Witter & Co. 4.058% due 12/17/01............... 32,532 30,000 PNC Bank N.A. 4.48% due 01/24/02................ 30,021 @32,500 Unilever Capital Corp. 6.649% due 09/07/01............... 32,508 9,000 Wells Fargo & Co. 4.46% due 04/26/02................ 9,012 ---------- Total corporate notes.............. $ 474,526 ==========
PRINCIPAL MARKET AMOUNT VALUE --------- ---------- REPURCHASE AGREEMENT -- 4.4% $ 69,067 Joint Repurchase Agreement (See Note 2(d)) 9.95% due 07/02/01................ $ 69,067 ---------- Total repurchase agreement......... $ 69,067 ==========
DIVERSIFICATION OF NET ASSETS: Total commercial paper (cost $983,735)........................... 62.9% $ 983,735 Total corporate notes (cost $474,528)........................... 30.3 474,526 Total repurchase agreements (cost $69,067)............................ 4.4 69,067 ----- ---------- Total investment in securities (total cost $1,527,330).................... 97.6 1,527,328 Cash, receivables and other assets.... 2.7 41,954 Dividends payable..................... (0.3) (5,144) Other liabilities..................... (0.0) (17) ----- ---------- Net assets............................ 100.0% $1,564,121 ===== ==========
SUMMARY OF SHAREHOLDERS' EQUITY: Capital stock, par value 0.10 per share; 3,000,000 shares authorized; 1,564,121 shares outstanding.......................... $ 156,412 Capital surplus............................... 1,407,709 ---------- Net assets.................................... $1,564,121 ========== Class IA Shares of benefical interest outstanding, $0.10 par value 2,475,000 shares authorized (Net assets $1,468,458)........ 1,468,458 ========= Net asset value............................. $1.00 ===== Class IB Shares of benefical interest outstanding, $0.10 par value 525,000 shares authorized (Net assets $95,663)...................... 95,663 ====== Net asset value............................. $1.00 =====
@ Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2001, the market value of these securities amounted to $78,522 or 5.0% of net assets. 93 95 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL HARTFORD HARTFORD INTERNATIONAL GLOBAL FINANCIAL GLOBAL GLOBAL SMALL COMMUNICATIONS SERVICES HEALTH TECHNOLOGY COMPANY HLS FUND HLS FUND HLS FUND HLS FUND HLS FUND* -------------- --------- -------- ---------- ------------- INVESTMENT INCOME: Dividends.......................................... $ 49 $ 103 $ 605 $ 29 $ 13 Interest........................................... 12 10 162 173 3 Securities lending................................. 4 2 58 67 -- Less: Foreign tax withheld......................... (5) (10) (31) -- (2) ------- ----- ------- -------- ----- Total investment income (loss), net............. 60 105 794 269 14 ------- ----- ------- -------- ----- EXPENSES: Investment advisory fees........................... 30 32 476 307 4 Administrative services fees....................... 9 10 146 94 1 Accounting services................................ 1 1 15 9 -- Custodian fees, gross.............................. 1 4 2 10 1 Custodian fees expense offset...................... -- (3) -- (6) -- Board of Directors fees............................ -- -- -- -- -- Distribution Fees -- Class IB...................... 1 1 19 14 -- Other expenses..................................... -- -- 6 3 -- ------- ----- ------- -------- ----- Total expenses, (before waivers)................ 42 45 664 431 6 Distribution Fees -- Class IB waived............... -- -- (5) (4) -- ------- ----- ------- -------- ----- Total expenses, net................................ 42 45 659 427 6 ------- ----- ------- -------- ----- Net investment income (loss)....................... 18 60 135 (158) 8 ------- ----- ------- -------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions.................................... (1,465) (145) 5,001 (31,749) 88 Net realized gain (loss) on futures contracts...... -- -- -- -- -- Net realized gain (loss) on forward foreign currency contracts.............................. 3 (8) (22) 20 11 Net realized gain (loss) on option contracts....... -- -- -- -- -- Net realized gain (loss) on foreign currency transactions.................................... 18 (41) 3 (7) (26) Net unrealized appreciation (depreciation) of investments..................................... (892) 126 (5,571) 17,947 (179) Net unrealized appreciation (depreciation) of futures contracts............................... -- -- -- -- -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.............. -- 1 (2) -- (1) Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies.............................. 7 36 2 -- -- Net unrealized appreciation (depreciation) of option contracts................................ -- -- -- -- -- ------- ----- ------- -------- ----- Net realized and unrealized gain (loss) on investments..................................... (2,329) (31) (589) (13,789) (107) ------- ----- ------- -------- ----- Net increase (decrease) in net assets resulting from operations................................. $(2,311) $ 29 $ (454) $(13,947) $ (99) ======= ===== ======= ======== =====
* From inception April 30, 2001, to June 30, 2001. The accompanying notes are an integral part of these financial statements. 94 96 --------------------------------------------------------------------------------
HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD HARTFORD SMALL CAPITAL CAPITAL HARTFORD MIDCAP INTERNATIONAL GLOBAL COMPANY APPRECIATION APPRECIATION MIDCAP VALUE OPPORTUNTIES LEADERS HLS FUND, INC. HLS FUND* HLS FUND, INC. HLS FUND, INC. HLS FUND* HLS FUND, INC. HLS FUND -------------- ------------- -------------- -------------- --------- -------------- -------- $ 1,464 $ 14 $ 39,960 $ 4,800 $ 18 $ 15,428 $ 5,086 1,799 5 21,253 1,938 9 1,766 626 286 -- 1,094 470 -- 960 200 -- (2) (478) (43) -- (1,945) (376) --------- ----- -------- -------- ---- --------- -------- 3,549 17 61,829 7,165 27 16,209 5,536 --------- ----- -------- -------- ---- --------- -------- 2,171 4 21,274 4,319 8 3,053 1,536 836 1 9,807 1,828 3 1,232 568 84 -- 982 183 -- 123 57 15 1 367 8 1 524 66 (4) -- (26) (5) -- (4) (4) 2 -- 21 4 -- 3 1 54 -- 247 96 -- 31 43 39 -- 480 88 -- 59 29 --------- ----- -------- -------- ---- --------- -------- 3,197 6 33,152 6,521 12 5,021 2,296 (15) -- (69) (27) -- (9) (12) --------- ----- -------- -------- ---- --------- -------- 3,182 6 33,083 6,494 12 5,012 2,284 --------- ----- -------- -------- ---- --------- -------- 367 11 28,746 671 15 11,197 3,252 --------- ----- -------- -------- ---- --------- -------- (107,389) (125) 48,833 (54,474) 34 (88,992) (66,938) 1,471 -- -- -- -- -- -- 4 (5) 17,294 -- -- (150) (14) -- -- -- -- -- -- -- (8) -- (697) (12) -- (1,732) (195) (2,136) (257) 39,219 2,821 186 (93,307) (11,284) 246 -- -- -- -- -- -- -- -- 20 -- -- 157 (38) 1 -- 28 -- -- (697) (3) -- -- -- -- -- -- -- --------- ----- -------- -------- ---- --------- -------- (107,811) (387) 104,697 (51,665) 220 (184,721) (78,472) --------- ----- -------- -------- ---- --------- -------- $(107,444) $(376) $133,443 $(50,994) $235 $(173,524) $(75,220) ========= ===== ======== ======== ==== ========= ========
95 97 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD GROWTH AND DIVIDEND AND FOCUS STOCK VALUE INCOME GROWTH HLS FUND* HLS FUND, INC. HLS FUND* HLS FUND HLS FUND, INC. --------- -------------- --------- ---------- -------------- INVESTMENT INCOME: Dividends...................................... $ 20 $ 49,972 $16 $ 2,343 $ 33,170 Interest....................................... 23..... 4,639 4 275 2004 Securities lending............................. -- 149 -- 66 252 Less: Foreign tax withheld..................... -- -- -- 1 (224) ----- --------- --- -------- --------- Total investment income (loss), net......... 43 54,760 20 2,685 35,202 ----- --------- --- -------- --------- EXPENSES: Investment advisory fees....................... 13 11,621 6 1,154 7,201 Administrative services fees................... 4 9,123 2 416 3,184 Accounting services............................ -- 914 -- 42 319 Custodian fees, gross.......................... 1 23 -- 6 10 Custodian fees expense offset.................. -- (2) -- -- (4) Board of Directors fees........................ -- 20 -- 1 7 Distribution Fees -- Class IB.................. -- 215 -- 31 72 Other expenses................................. -- 561 -- 15 152 ----- --------- --- -------- --------- Total expenses, (before waivers)............ 18 22,475 8 1,665 10,941 Distribution Fees -- Class IB waived........... -- (60) -- (9) (20) ----- --------- --- -------- --------- Total expenses, net............................ 18 22,415 8 1,656 10,921 ----- --------- --- -------- --------- Net investment income (loss)................... 25 32,345 12 1,029 24,281 ----- --------- --- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on security transactions................................ (37) (57,104) 2 (13,257) 51,681 Net realized gain (loss) on futures contracts................................... -- -- -- (480) -- Net realized gain (loss) on forward foreign currency contracts.......................... -- (2) -- -- -- Net realized gain (loss) on option contracts... -- -- -- 157 146 Net realized gain (loss) on foreign currency transactions................................ -- 1 -- -- (2) Net unrealized appreciation (depreciation) of investments................................. (222) (739,504) 34 2,314 (121,945) Net unrealized appreciation (depreciation) of futures contracts........................... -- -- -- (156) -- Net unrealized appreciation (depreciation) of forward foreign currency contracts.......... -- -- -- -- -- Net unrealized appreciation (depreciation) on translation of other assets and liabilities in foreign currencies....................... -- -- -- -- 2 Net unrealized appreciation (depreciation) of option contracts............................ -- -- -- (146) (105) ----- --------- --- -------- --------- Net realized and unrealized gain (loss) on investments................................. (259) (796,609) 36 (11,568) (70,223) ----- --------- --- -------- --------- Net increase (decrease) in net assets resulting from operations............................. $(234) $(764,264) $48 $(10,539) $ (45,942) ===== ========= === ======== =========
* From inception April 30, 2001, to June 30, 2001. ** Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 96 98 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD INDEX ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC. HLS FUND, INC.** HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------- ---------------- -------------- ---------- -------------- -------------- -------------- $ 13,682 $ 2,157 $ 44,681 $ 34 $ 104 $ -- $ -- 361 4,491 161,543 5,210 37,519 10,928 38,394 85 103 2,652 19 421 -- -- (75) (235) -- (3) (3) -- -- --------- -------- --------- ------- -------- ------- ------- 14,053 6,516 208,876 5,260 38,041 10,928 38,394 --------- -------- --------- ------- -------- ------- ------- 2,254 1,033 28,329 304 1,698 414 1,815 2,254 370 13,125 106 1,185 331 1,452 226 37 1,314 11 119 33 145 20 137 44 5 22 4 8 (1) (6) (12) (4) (4) (4) (7) 5 1 28 -- 3 1 3 31 8 396 10 64 6 86 111 17 688 4 46 20 58 --------- -------- --------- ------- -------- ------- ------- 4,900 1,597 43,912 436 3,133 805 3,560 (9) (2) (111) (3) (18) (2) (24) --------- -------- --------- ------- -------- ------- ------- 4,891 1,595 43,801 433 3,115 803 3,536 --------- -------- --------- ------- -------- ------- ------- 9,162 4,921 165,075 4,827 34,926 10,125 34,858 --------- -------- --------- ------- -------- ------- ------- 43,951 (20,646) (6,062) (2,994) 35,127 4,390 9 (2,582) (682) -- -- -- -- -- -- (1,526) (2) (13) (390) -- -- -- (70) -- -- -- -- -- (9) 1,760 1 25 (429) -- -- (220,314) (10,416) (658,615) (4,260) (31,773) (4,267) -- 186 90 -- -- -- -- -- -- 8,453 -- -- -- -- -- -- (602) -- (35) (141) -- -- -- -- -- -- -- -- -- --------- -------- --------- ------- -------- ------- ------- (178,768) (23,639) (664,678) (7,277) 2,394 123 9 --------- -------- --------- ------- -------- ------- ------- $(169,606) $(18,718) $(499,603) $(2,450) $ 37,320 $10,248 $34,867 ========= ======== ========= ======= ======== ======= =======
97 99 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD INTERNATIONAL GLOBAL GLOBAL GLOBAL GLOBAL SMALL COMMUNICATIONS FINANCIAL SERVICES HEALTH TECHNOLOGY COMPANY HLS FUND HLS FUND HLS FUND HLS FUND HLS FUND* -------------- ------------------ -------- ---------- ------------- OPERATIONS: Net investment income (loss).................. $ 18 $ 60 $ 135 $ (158) $ 8 Net realized gain (loss) on investments....... (1,444) (194) 4,982 (31,736) 73 Net unrealized appreciation (depreciation) of investments................................. (885) 163 (5,571) 17,947 (180) ------- ------- -------- -------- ------ Net increase (decrease) in net assets resulting from operations................... (2,311) 29 (454) (13,947) (99) ------- ------- -------- -------- ------ DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA.................................... (6) (6) -- -- -- Class IB.................................... (1) (1) -- -- -- From net realized gain on investments Class IA.................................... -- -- -- -- -- Class IB.................................... -- -- -- -- -- ------- ------- -------- -------- ------ Total distributions......................... (7) (7) -- -- -- ------- ------- -------- -------- ------ CAPITAL SHARE TRANSACTIONS: Class IA.................................... 372 992 36,970 29,281 3,314 Class IB.................................... 156 432 13,232 9,091 355 ------- ------- -------- -------- ------ Net increase (decrease) from capital share transactions................................ 528 1,424 50,202 38,372 3,669 ------- ------- -------- -------- ------ Net increase (decrease) in net assets......... (1,790) 1,446 49,748 24,425 3,570 NET ASSETS: Beginning of period........................... 9,982** 9,993** 132,880 78,616 -- ------- ------- -------- -------- ------ End of period................................. $ 8,192 $11,439 $182,628 $103,041 $3,570 ======= ======= ======== ======== ====== Accumulated undistributed (distribution in excess of) net investment income.............. $ 18 $ 60 $ 133 $ (158) $ 8 ======= ======= ======== ======== ======
* From inception April 30, 2001, to June 30, 2001. ** These amounts represents seed money deposited in Hartford Global Communications HLS Fund and Hartford Global Financial Services HLS Fund on December 27, 2000. The accompanying notes are an integral part of these financial statements. 98 100 --------------------------------------------------------------------------------
HARTFORD HARTFORD INTERNATIONAL HARTFORD HARTFORD HARTFORD HARTFORD SMALL CAPITAL CAPITAL HARTFORD MIDCAP INTERNATIONAL GLOBAL COMPANY APPRECIATION APPRECIATION MIDCAP VALUE OPPORTUNITIES LEADERS HLS FUND, INC. HLS FUND* HLS FUND, INC. HLS FUND, INC. HLS FUND* HLS FUND, INC. HLS FUND -------------- ------------- -------------- -------------- --------- -------------- -------- $ 367 $ 11 $ 28,746 $ 671 $ 15 $ 11,197 $ 3,252 (105,922) (130) 65,430 (54,486) 34 (90,874) (67,147) (1,889) (257) 39,267 2,821 186 (93,847) (11,325) --------- ------ ----------- ---------- ------- ---------- -------- (107,444) (376) 133,443 (50,994) 235 (173,524) (75,220) --------- ------ ----------- ---------- ------- ---------- -------- -- -- (523) -- -- (1,384) (68) -- -- (11) -- -- (67) (5) (55,117) -- (2,589,918) (218,450) -- (154,454) (5,702) (3,553) -- (72,932) (13,029) -- (3,867) (469) --------- ------ ----------- ---------- ------- ---------- -------- (58,670) -- (2,663,384) (231,479) -- (159,772) (6,244) --------- ------ ----------- ---------- ------- ---------- -------- 65,969 3,853 2,561,699 395,457 13,630 109,291 31,935 19,199 656 210,960 75,714 2,582 15,760 21,998 --------- ------ ----------- ---------- ------- ---------- -------- 85,168 4,509 2,772,659 471,171 16,212 125,051 53,933 --------- ------ ----------- ---------- ------- ---------- -------- (80,946) 4,133 242,718 188,698 16,447 (208,245) (27,531) 949,853 -- 9,717,956 1,824,794 -- 1,345,291 598,386 --------- ------ ----------- ---------- ------- ---------- -------- $ 868,907 $4,133 $ 9,960,674 $2,013,492 $16,447 $1,137,046 $570,855 ========= ====== =========== ========== ======= ========== ======== $ 367 $ 11 $ 28,477 $ 672 $ 15 $ 10,527 $ 2,983 ========= ====== =========== ========== ======= ========== ========
99 101 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED JUNE 30, 2001 (UNAUDITED) (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD HARTFORD HARTFORD GROWTH AND DIVIDEND AND FOCUS STOCK VALUE INCOME GROWTH HLS FUND* HLS FUND, INC. HLS FUND* HLS FUND HLS FUND, INC. --------- -------------- --------- ------------ -------------- OPERATIONS: Net investment income (loss)....................... $ 25 $ 32,345 $ 12 $ 1,029 $ 24,281 Net realized gain (loss) on investments............ (37) (57,105) 2 (13,580) 51,825 Net unrealized appreciation (depreciation) of investments...................................... (222) (739,504) 34 2,012 (122,048) ------- ---------- ------ -------- ---------- Net increase (decrease) in net assets resulting from operations.................................. (234) (764,264) 48 (10,539) (45,942) ------- ---------- ------ -------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA......................................... -- -- -- -- (1,693) Class IB......................................... -- -- -- -- (46) From net realized gain on investments Class IA......................................... -- (641,294) -- (15,880) (201,137) Class IB......................................... -- (15,953) -- (1,363) (5,550) ------- ---------- ------ -------- ---------- Total distributions.............................. -- (657,247) -- (17,243) (208,426) ------- ---------- ------ -------- ---------- CAPITAL SHARE TRANSACTIONS: Class IA......................................... 15,431 381,242 7,831 67,125 268,758 Class IB......................................... 2,536 109,564 1,600 22,708 60,321 ------- ---------- ------ -------- ---------- Net increase (decrease) from capital share transactions..................................... 17,967 490,806 9,431 89,833 329,079 ------- ---------- ------ -------- ---------- Net increase (decrease) in net assets.............. 17,733 (930,705) 9,479 62,051 74,711 NET ASSETS: Beginning of period................................ -- 9,726,095 -- 394,803 3,225,272 ------- ---------- ------ -------- ---------- End of period...................................... $17,733 $8,795,390 $9,479 $456,854 $3,299,983 ======= ========== ====== ======== ========== Accumulated undistributed (distribution in excess of) net investment income.............................. $ 25 $ 32,346 $ 12 $ 1,029 $ 24,274 ======= ========== ====== ======== ==========
* From inception April 30, 2001, to June 30, 2001. ** Formerly Hartford International Advisers HLS Fund, Inc. The accompanying notes are an integral part of these financial statements. 100 102 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD GLOBAL HARTFORD HARTFORD HARTFORD MORTGAGE HARTFORD INDEX ADVISERS ADVISERS HIGH YIELD BOND SECURITIES MONEY MARKET HLS FUND, INC. HLS FUND, INC.** HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------- ---------------- -------------- ---------- -------------- -------------- -------------- $ 9,162 $ 4,921 $ 165,075 $ 4,827 $ 34,926 $ 10,125 $ 34,858 41,360 (21,164) (6,063) (2,982) 34,308 4,390 9 (220,128) (2,475) (658,615) (4,295) (31,914) (4,267) -- ---------- -------- ----------- -------- ---------- -------- ---------- (169,606) (18,718) (499,603) (2,450) 37,320 10,248 34,867 ---------- -------- ----------- -------- ---------- -------- ---------- -- -- (256,576) (71) (59,005) (19,519) (33,327) -- -- (4,716) (8) (3,698) (585) (1,540) (37,072) (20,636) (617,329) -- -- -- -- (573) (547) (19,622) -- -- -- -- ---------- -------- ----------- -------- ---------- -------- ---------- (37,645) (21,183) (898,243) (79) (62,703) (20,104) (34,867) ---------- -------- ----------- -------- ---------- -------- ---------- (10,703) 8,226 360,459 46,312 203,844 40,944 226,183 19,499 5,555 183,001 10,440 48,752 9,800 59,393 ---------- -------- ----------- -------- ---------- -------- ---------- 8,796 13,781 543,460 56,752 252,596 50,744 285,576 ---------- -------- ----------- -------- ---------- -------- ---------- (198,455) (26,120) (854,386) 54,223 227,213 40,888 285,576 2,403,272 389,448 13,682,754 68,601 1,064,594 311,973 1,278,545 ---------- -------- ----------- -------- ---------- -------- ---------- $2,204,817 $363,328 $12,828,368 $122,824 $1,291,807 $352,861 $1,564,121 ========== ======== =========== ======== ========== ======== ========== $ 9,158 $ 2,031 $ 165,075 $ 4,827 $ 34,239 $ 10,126 $ -- ========== ======== =========== ======== ========== ======== ==========
101 103 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD GLOBAL HARTFORD GLOBAL HEALTH TECHNOLOGY SMALL COMPANY HLS FUND* HLS FUND* HLS FUND, INC. ------------- ---------- -------------- OPERATIONS: Net investment income (loss).............................. $ 236 $ (171) $ (9) Net realized gain (loss) on investments................... 2,831 (12,703) (22,797) Net unrealized appreciation (depreciation) of investments............................................. 16,854 (25,548) (134,858) -------- -------- --------- Net increase (decrease) in net assets resulting from operations.............................................. 19,921 (38,422) (157,664) -------- -------- --------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (256) -- -- Class IB................................................ (15) -- -- From net realized gain on investments Class IA................................................ (2,914) -- (117,755) Class IB................................................ (220) -- (3,080) -------- -------- --------- Total distributions..................................... (3,405) -- (120,835) -------- -------- --------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 107,970 106,858 421,643 Class IB................................................ 8,394 10,180 39,207 -------- -------- --------- Net increase (decrease) from capital share transactions... 116,364 117,038 460,850 -------- -------- --------- Net increase (decrease) in net assets..................... 132,880 78,616 182,351 NET ASSETS: Beginning of period....................................... -- -- 767,502 -------- -------- --------- End of period............................................. $132,880 $ 78,616 $ 949,853 ======== ======== ========= 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. 102 104 --------------------------------------------------------------------------------
HARTFORD HARTFORD HARTFORD CAPITAL HARTFORD INTERNATIONAL HARTFORD HARTFORD GROWTH AND APPRECIATION MIDCAP OPPORTUNITIES GLOBAL LEADERS STOCK INCOME HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. HLS FUND HLS FUND, INC. HLS FUND -------------- -------------- -------------- -------------- -------------- ---------- $ 59,836 $ (1,096) $ 17,827 $ 2,841 $ 59,645 $ 1,374 2,667,437 190,562 113,522 (35,518) 681,114 11,716 (1,658,277) 29,809 (386,603) (16,403) (1,415,711) (35,267) ----------- ---------- ---------- -------- ----------- -------- 1,068,996 219,275 (255,254) (49,080) (674,952) (22,177) ----------- ---------- ---------- -------- ----------- -------- (62,140) -- (21,816) (2,812) (61,375) (1,380) (727) -- (198) (109) (761) (45) (1,266,215) (56,118) (171,516) (2,622) (1,024,729) (5,261) (7,838) (520) (1,224) (38) (8,655) (104) ----------- ---------- ---------- -------- ----------- -------- (1,336,920) (56,638) (194,754) (5,581) (1,095,520) (6,790) ----------- ---------- ---------- -------- ----------- -------- 1,881,017 938,959 198,402 445,754 1,943,031 205,939 118,867 50,484 18,858 27,549 105,713 15,959 ----------- ---------- ---------- -------- ----------- -------- 1,999,884 989,443 217,260 473,303 2,048,744 221,898 ----------- ---------- ---------- -------- ----------- -------- 1,731,960 1,152,080 (232,748) 418,642 278,272 192,931 7,985,996 672,714 1,578,039 179,744 9,447,823 201,872 ----------- ---------- ---------- -------- ----------- -------- $ 9,717,956 $1,824,794 $1,345,291 $598,386 $ 9,726,095 $394,803 =========== ========== ========== ======== =========== ======== $ 265 $ 1 $ 781 $ (196) $ 1 $ -- =========== ========== ========== ======== =========== ========
103 105 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE PERIOD ENDED DECEMBER 31, 2000 (000'S OMITTED) --------------------------------------------------------------------------------
HARTFORD HARTFORD DIVIDEND AND HARTFORD INTERNATIONAL GROWTH INDEX ADVISERS HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. -------------- -------------- -------------- OPERATIONS: Net investment income (loss).............................. $ 51,664 $ 19,306 $ 10,987 Net realized gain (loss) on investments................... 208,473 37,451 19,276 Net unrealized appreciation (depreciation) of investments............................................. 51,412 (307,023) (57,829) ---------- ---------- -------- Net increase (decrease) in net assets resulting from operations.............................................. 311,549 (250,266) (27,566) ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income Class IA................................................ (50,034) (19,512) (22,528) Class IB................................................ (498) (119) (231) From net realized gain on investments Class IA................................................ (282,315) (24,784) (26,883) Class IB................................................ (1,888) (37) (97) ---------- ---------- -------- Total distributions..................................... (334,735) (44,452) (49,739) ---------- ---------- -------- CAPITAL SHARE TRANSACTIONS: Class IA................................................ 5,708 98,949 65,319 Class IB................................................ 18,931 17,594 5,276 ---------- ---------- -------- Net increase (decrease) from capital share transactions... 24,639 116,543 70,595 ---------- ---------- -------- Net increase (decrease) in net assets..................... 1,453 (178,175) (6,710) NET ASSETS: Beginning of period....................................... 3,223,819 2,581,447 396,158 ---------- ---------- -------- End of period............................................. $3,225,272 $2,403,272 $389,448 ========== ========== ======== Accumulated undistributed (distribution in excess of) net investment income....................................... $ 1,732 $ (4) $ (2,890) ========== ========== ========
The accompanying notes are an integral part of these financial statements. 104 106 --------------------------------------------------------------------------------
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. -------------- ---------- -------------- -------------- -------------- $ 341,298 $ 5,130 $ 65,244 $ 20,105 $ 67,800 636,933 (2,318) (10,657) (1,678) (33) (1,081,161) (2,073) 58,901 11,569 -- ----------- ------- ---------- -------- ---------- (102,930) 739 113,488 29,996 67,767 ----------- ------- ---------- -------- ---------- (108,406) (4,909) (4,427) (2,172) (66,782) (1,821) (181) (94) (2) (985) (1,188,034) -- -- -- -- (15,623) -- -- -- -- ----------- ------- ---------- -------- ---------- (1,313,884) (5,090) (4,521) (2,174) (67,767) ----------- ------- ---------- -------- ---------- 745,076 17,561 (52,284) (56,720) (15,161) 134,279 2,558 13,233 1,094 27,466 ----------- ------- ---------- -------- ---------- 879,355 20,119 (39,051) (55,626) 12,305 ----------- ------- ---------- -------- ---------- (537,459) 15,768 69,916 (27,804) 12,305 14,220,213 52,833 994,678 339,777 1,266,240 ----------- ------- ---------- -------- ---------- $13,682,754 $68,601 $1,064,594 $311,973 $1,278,545 =========== ======= ========== ======== ========== $ 261,292 $ 79 $ 62,016 $ 20,105 $ -- =========== ======= ========== ======== ==========
105 107 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 (UNAUDITED) ($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 Global 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 thirteen portfolios, of which the following are included in these financial statements:, Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford International Small Company HLS Fund, Hartford International Capital Appreciation HLS Fund, Hartford MidCap Value HLS Fund, Hartford Global Leaders HLS Fund, Hartford Focus HLS Fund, Hartford Value HLS Fund, Hartford Growth and Income HLS Fund, 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 Communications HLS Fund, Hartford Financial Services HLS Fund, Hartford Global Health HLS Fund and Hartford Global Technology HLS Fund which are non-diversified. The Funds 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 Communications HLS Fund -- Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of communications companies worldwide. Hartford Global Financial Services HLS Fund -- Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of financial services companies worldwide. Hartford Global Health HLS Fund -- Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of health care companies worldwide. Hartford Global Technology HLS Fund -- Seeks long-term capital appreciation by investing at least 80% of its total assets in the equity securities of technology companies worldwide. Hartford International Small Company HLS Fund -- Seeks capital appreciation by investing at least 80% of its total assets in the equity securities of foreign issuers with market capitalizations under $8 billion. Hartford Small Company HLS Fund, Inc. -- Seeks growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation and that are within the range represented by the Russell 2000 Index. Hartford International Capital Appreciation HLS -- Seeks capital appreciation by investing at least Fund 80% of total assets in equity securities of foreign issuers. Hartford Capital Appreciation HLS Fund, Inc. -- Seeks growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation.
106 108 -------------------------------------------------------------------------------- Hartford MidCap HLS Fund, Inc -- Seeks to achieve 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 MidCap Value HLS Fund -- Seeks to achieve long-term capital growth through capital appreciation by investing primarily in undervalued equity securities. Hartford International Opportunities HLS Fund, -- Seeks growth of capital by investing primarily in Inc. stocks issued by non-U.S. companies. Hartford Global Leaders HLS Fund -- Seeks growth of capital by investing primarily in stocks issued by companies worldwide. Hartford Focus HLS Fund -- Seeks growth of capital by investing primarily in stocks selected on the basis of potential for capital appreciation and that are within the range represented by the Standard & Poor's 500 Index. Hartford Stock HLS Fund, Inc. -- Seeks long-term growth of capital, with income as a secondary consideration, by investing primarily in stock. Hartford Value HLS Fund -- Seeks maximum long-term total rate of return by investing in equity securities that are estimated to be under-valued. 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 that are within the range of Standard & Poor's Composite Stock Price Index (the Index). Hartford Global Advisers HLS Fund, Inc. -- Seeks maximum long-term total rate of return (formerly Hartford International Advisers HLS through a diversified portfolio of securities Fund, Inc.) covering a broad range of countries, industries and companies. 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 U.S. Government agencies. 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.
107 109 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- Each Fund is divided into Class IA and IB shares. Each class is offered at net asset value without a sales charge and is subject to the same expenses except that the Class IB shares are subject to distribution fees charged pursuant to a Rule 12b-1 plan. Distribution and Service Plans have been adopted in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies of the Funds, which are in accordance with generally accepted accounting principles in the investment company industry: a) Security Transactions--Security transactions are recorded on the trade date (the day the order to buy or sell is executed). Security gains and losses are determined on the basis of identified cost. b) Security Valuation--Equity securities are valued at the last sales price reported on principal securities exchanges on which such securities are traded (domestic or foreign) or on the principal over-the-counter market on which such securities are traded as of the close of business on the day the securities are being valued. If no sale occurred on a particular day and in the case of certain equity securities traded over-the-counter, then such securities are valued at the mean between the bid and asked prices. Securities quoted in foreign currencies are translated into U.S. dollars at the prevailing exchange rates at the end of each business day. Options are valued at the last sales price; if no sale took place on such day, then options are valued at the mean between the bid and asked prices. Securities for which market quotations are not readily available and all other assets are valued in good faith at their fair values under the direction of the Funds' Board of Directors. Debt securities (other than short-term obligations) are valued on the basis of valuations furnished by an unaffiliated pricing service which determines valuations for normal institutional size trading units of debt securities. Mortgage securities are valued at the bid price. Short-term securities held in Hartford Money Market HLS Fund, Inc. are valued at amortized cost or original cost plus accrued interest receivable, both of which approximate market value. In the remaining Funds, short-term investments purchased with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Short-term investments purchased with a maturity of more than 60 days are valued based on market quotations until the remaining days to maturity become less than 61 days. From such time until maturity, the investments are valued at amortized cost c) Foreign Currency Transactions--The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at the prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments in the accompanying financial statements. Net realized foreign exchange gains or losses arise from sales of foreign currencies and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually 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. 108 110 -------------------------------------------------------------------------------- Certain Funds, together with other investment management companies having investment advisory agreements with Wellington Management Company, LLP (Wellington), have an interest in a $2,316,086 joint repurchase agreement dated 06/29/01 with State Street Bank, 3.94% due 07/02/01. This joint repurchase agreement is collateralized by $1,481,061 U.S. Treasury Bonds 3.65% - 14.25% due 11/23/01 - 08/15/28, $817,399 U.S. Treasury Notes 4.25% - 7.00% due 08/31/01 - 08/15/07 and $64,471 U.S. Treasury Bills 3.65% due 11/23/01. The participating Funds and their respective maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Hartford Global Communications HLS Fund..................... $ 739 Hartford Global Financial Services HLS Fund................. 375 Hartford Global Health HLS Fund............................. 6,376 Hartford Global Technology HLS Fund......................... 7,035 Hartford International Small Company HLS Fund............... 115 Hartford Small Company HLS Fund, Inc. ...................... 58,965 Hartford International Capital Appreciation HLS Fund........ 422 Hartford Capital Appreciation HLS Fund, Inc. ............... 974,024 Hartford MidCap HLS Fund, Inc. ............................. 86,408 Hartford MidCap Value HLS Fund.............................. 2,087 Hartford International Opportunities HLS Fund, Inc. ........ 34,666 Hartford Global Leaders HLS Fund............................ 25,636 Hartford Focus HLS Fund..................................... 2,433 Hartford Stock HLS Fund, Inc. .............................. 104,460 Hartford Value HLS Fund..................................... 756 Hartford Growth and Income HLS Fund......................... 11,946 Hartford Dividend and Growth HLS Fund, Inc. ................ 89,483 Hartford Global Advisers HLS Fund, Inc. .................... 49,483 Hartford Advisers HLS Fund, Inc. ........................... 290,353
Certain Funds, together with other investment management companies having investment advisory agreements with The Hartford Investment Management Company (HIMCO) have an interest in a $234,765 joint repurchase agreement dated 06/29/01 with State Street Bank, 3.95% due 07/02/01. This joint repurchase agreement is collateralized by $234,842 U.S. Treasury Bonds 3.875% - 6.875% due 08/15/25 - 04/15/29. The participating Funds and their respective maturity amounts are as follows:
MATURITY FUND AMOUNT ---- -------- Hartford Index HLS Fund, Inc. .............................. $ 5,773 Hartford High Yield HLS Fund................................ 13,577 Hartford Bond HLS Fund, Inc. ............................... 65,492 Hartford Mortgage Securities HLS Fund, Inc. ................ 55,871 Hartford Money Market HLS Fund, Inc. ....................... 69,090
e) Joint Trading Account--Pursuant to an exemptive order issued by the SEC, the Funds may transfer uninvested cash balances into a joint trading account managed by HIMCO or Wellington. These balances may be invested in one or more repurchase agreements and/or short-term money market instruments. f) Futures, Options on Futures and Options Transactions--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- 109 111 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- dealer, are made on a daily basis as the price of the underlying debt security fluctuates, making the long and short positions in the futures contract more or less valuable (i.e., mark-to-market), which results in an unrealized gain or loss to the Funds. The market value of a traded futures contract is the last sale price. In the absence of a last sale price, the last offering price is used. In the absence of either of these prices, fair value is determined according to procedures established by the Funds' Board of Directors. The variation margin on futures contracts is included in cash, receivables and other assets as applicable, in the Fund's Statement of Net Assets. At any time prior to the expiration of the futures contract, the Funds may close the position by taking an opposite position which would operate to terminate the position in the futures contract. A final determination of maintenance margin is then made, additional cash is required to be paid by or released to the Funds and the Funds realize a gain or loss. The use of futures contracts involve elements of market and counter party risk, which may exceed the amounts recognized in the Statements of Net Assets. Change in the value of the futures contracts may decrease the effectiveness of the Fund's strategies and potentially result in loss. The premium paid by a Fund for the purchase of a call or put option is included in the Fund's Statement of Net Assets as cash, receivables and other assets and subsequently "marked-to-market" to reflect the current market value of the option purchased as of the end of the reporting period. If an option, which the Fund has purchased, expires on its stipulated expiration date, the Fund realizes a loss in the amount of the cost of the option. If the Fund enters into a closing transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the option. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security, which the Fund purchases upon exercise, will be increased by the premium originally paid to buy the call. The Funds may write covered options. "Covered" means that so long as the Fund is obligated as the writer of an option, it will own either the underlying securities or currency or an option to purchase or sell the same underlying securities or currency having an expiration date of the covered option at an exercise price equal to or less than the exercise price of the covered option, or will establish or maintain with its custodian for the term of the option a "segregated account" consisting of cash or other liquid securities having a value equal to the fluctuating market value of the option securities or currencies. The Fund receives a premium from writing a call or put option, which increases the Fund's return if the option expires unexercised or is closed out at a net profit. The Funds' option activity was as follows for the six months ended June 30, 2001: OPTION CONTRACTS ACTIVITY DURING THE PERIOD
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD GLOBAL ADVISERS INCOME HLS FUND, INC. GROWTH HLS FUND, INC. HLS FUND, INC. ---------------------- ---------------------- ------------------------ NUMBER OF PREMIUM NUMBER OF PREMIUM NUMBER OF PREMIUM CALLS WRITTEN CONTRACTS AMOUNTS CONTRACTS AMOUNTS CONTRACTS AMOUNTS ------------- ---------- -------- ---------- -------- ----------- --------- Beginning of the period.............. 1 $ 205 1 $176 1,740 $ 27 Written during the period............ -- -- -- -- 2,900 20 Expired during the period............ (1) (97) (1) (81) -- -- Closed during the period............. #-- (108) #-- (95) (4,640) (47) Exercised during the period.......... -- -- -- -- -- -- ---- ----- ---- ---- ------ ---- Balance at the end of the period..... -- $ -- -- $ -- -- $ -- ==== ===== ==== ==== ====== ====
110 112 --------------------------------------------------------------------------------
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ------------------------ NUMBER OF DOLLAR CALLS PURCHASED CONTRACTS AMOUNTS --------------- ----------- --------- Beginning of the period..................................... 3,480 $ 33 Purchased during the period................................. 12,800 292 Expired during the period................................... -- -- Closed during the period.................................... (16,280) (325) Exercised during the period................................. -- -- ------- ----- Balance at the end of the period............................ -- $ -- ======= =====
HARTFORD GLOBAL ADVISERS HLS FUND, INC. ------------------------ NUMBER OF DOLLAR PUTS WRITTEN CONTRACTS AMOUNTS ------------ ----------- --------- Beginning of the period..................................... 1,740 $ 20 Written during the period................................... 2,900 23 Expired during the period................................... -- -- Closed during the period.................................... (4,640) (43) Exercised during the period................................. -- -- ------ ---- Balance at the end of the period............................ -- $ -- ====== ====
# Due to the presentation of the financial statements in thousands, the number of contracts round to zero. g) Forward Foreign Currency Contracts--As of June 30, 2001, Hartford International Small Company HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund and Hartford Global Advisers HLS Fund, Inc. had entered into forward foreign currency exchange contracts that obligate the funds to repurchase/replace or sell currencies at specified future dates. The Funds enter into forward foreign currency contracts to hedge against adverse fluctuations in exchange rates between currencies. The forward foreign currency contracts' costs are included in excess of cash, receivables and other assets over liabilities or excess of liabilities over cash, receivables and other assets, as applicable, in the Funds' Statement of Net Assets. Forward foreign currency contracts involve elements of markets risk in excess of the amount reflected in the Statement of Net Assets. In addition, risk may arise upon entering into these contracts from the potential inability of the counter-parties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. h) Indexed Securities--The Funds may invest in indexed securities whose values are linked to changes in interest rates, indices, or other underlying instruments. The Funds use these securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets that might be difficult to invest in through conventional securities. Indexed securities are shown at market value in the Statement of Net Assets, if applicable. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment and there is a limit to the potential appreciation of the investment. i) Securities Lending--The Funds, except for the Hartford Money Market HLS Fund, Inc., may lend their securities to certain qualified brokers who pay these Funds negotiated lender fees. The loans are collateralized at all times with cash or securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, these Funds may bear the risk of delay in recovery of the loaned securities or even 111 113 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- loss of rights in the collateral should the borrower of the securities fail financially. As of June 30, 2001, the market value of the securities loaned and the market value of the collateral were as follows:
MARKET VALUE OF SECURITIES MARKET VALUE OF FUND LOANED COLLATERAL ---- --------------- --------------- Hartford Global Health HLS Fund............................. $ 19,321 $ 20,093 Hartford Global Technology HLS Fund......................... 7,337 7,940 Hartford Small Company HLS Fund, Inc. ...................... 137,705 142,822 Hartford Capital Appreciation HLS Fund, Inc. ............... 421,016 439,674 Hartford MidCap HLS Fund, Inc. ............................. 115,940 120,261 Hartford International Opportunities HLS Fund, Inc. ........ 137,842 144,885 Hartford Global Leaders HLS Fund............................ 37,755 39,225 Hartford Stock HLS Fund, Inc. .............................. 28,786 30,758 Hartford Growth and Income HLS Fund......................... 13,322 13,884 Hartford Index HLS Fund, Inc. .............................. 28,008 28,925 Hartford Dividend and Growth HLS Fund, Inc. ................ 121,058 124,589 Hartford Global Advisers HLS Fund, Inc. .................... 13,501 14,017 Hartford Advisers HLS Fund, Inc. ........................... 1,503,909 1,535,183 Hartford High Yield HLS Fund................................ 10,599 10,874 Hartford Bond HLS Fund, Inc. ............................... 254,691 260,017
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 certain dividends for foreign securities where the ex-dividend date may have passed, are recorded as soon as the fund is informed of the ex-dividend data in the exercise of due diligence. Interest income and expenses are accrued on a daily basis. The net asset value of each Fund's shares is determined as of the close of each business day of the New York Stock Exchange (the Exchange). Orders for the purchase of a Fund's shares received prior to the close of the Exchange on any day on which the Fund is open for business are priced at the per-share net asset value determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Fund is not open for business, are priced at the next determined per-share net asset value. Dividends are declared by the Funds' Board of Directors based upon the investment performance of the respective Funds. The policy of all funds except the Hartford Money Market HLS Fund, Inc. is to pay dividends from net investment income and distribute realized capital gains, if any, at least once a year. Hartford Money Market HLS Fund, Inc. seeks to maintain a stable net asset value per share of $1.00 by declaring a daily dividend from net investment income, including net short-term capital gains and losses, and by valuing its investments using the amortized cost method. Dividends are distributed monthly. Distributions from net investment income, realized capital gains and capital are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gains and losses, partnerships, losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions result in reclassifications to capital accounts (see Note 6). 112 114 -------------------------------------------------------------------------------- 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 Hartford 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. As of June 30, 2001, 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. The schedule below reflects the rates of compensation paid to HL Advisors for services rendered, a portion of which is used to compensate Wellington or HIMCO: HARTFORD INDEX HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- All Assets 0.200%
HARTFORD MORTGAGE SECURITIES HLS FUND, INC. AND HARTFORD MONEY MARKET HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- All Assets 0.250%
HARTFORD STOCK HLS FUND, INC. AND HARTFORD BOND HLS FUND, INC.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million 0.325% On next $250 million 0.300 On next $500 million 0.275 Over $1 billion 0.250
HARTFORD SMALL COMPANY HLS FUND, INC., HARTFORD CAPITAL APPRECIATION HLS FUND, INC., HARTFORD MIDCAP HLS FUND, INC., HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. HARTFORD GLOBAL LEADERS HLS FUND, HARTFORD GROWTH AND INCOME HLS FUND, HARTFORD DIVIDEND AND GROWTH HLS FUND, INC., HARTFORD GLOBAL ADVISERS HLS FUND, INC., HARTFORD ADVISERS HLS FUND, INC. AND HARTFORD HIGH YIELD HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million 0.575% On next $250 million 0.525 On next $500 million 0.475 Over $1 billion 0.425
HARTFORD MIDCAP VALUE HLS FUND AND HARTFORD VALUE HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million 0.625% On next $250 million 0.575 On next $500 million 0.525 Over $1 Billion 0.475
113 115 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND, HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND, HARTFORD GLOBAL HEALTH HLS FUND, HARTFORD TECHNOLOGY HLS FUND, HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND, HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND AND HARTFORD FOCUS HLS FUND
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- On first $250 million 0.650% On next $250 million 0.600 Over $500 million 0.550
Pursuant to sub-advisory agreements between HL Advisors and Wellington, Wellington provides the day-to-day investment management services to the Hartford Global Communications HLS Fund, Hartford Global Financial Services HLS Fund, Hartford Global Health HLS Fund, Hartford Global Technology HLS Fund, Hartford International Small Company HLS Fund, Hartford Small Company HLS Fund, Inc., Hartford International Capital Appreciation HLS Fund, Hartford Capital Appreciation HLS Fund, Inc., Hartford MidCap HLS Fund, Inc., Hartford MidCap Value HLS Fund, Hartford International Opportunities HLS Fund, Inc., Hartford Global Leaders HLS Fund, Hartford Focus HLS Fund, Hartford Stock HLS Fund, Inc., Hartford Value HLS Fund, Hartford Growth and Income HLS Fund, Hartford Dividend and Growth HLS Fund, Inc., Hartford Global Advisers HLS Fund, Inc. and Hartford Advisers HLS Fund, Inc. Pursuant to investment services agreements between HL Advisors and HIMCO, HIMCO provides the day-to-day investment management services to the Hartford Index HLS Fund, Inc., Hartford High Yield HLS Fund, Hartford Bond HLS Fund, Inc., Hartford Mortgage Securities HLS Fund, Inc. 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 Statement 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 114 116 -------------------------------------------------------------------------------- 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. 4. AFFILIATE HOLDINGS: a) As of June 30, 2001, HL Advisors, LLC held direct interests in shares as follows:
PERCENT OF PERCENT OF FUND CLASS IA TOTAL IA SHARES CLASS IB TOTAL IB SHARES ------------------------------------------------- -------- --------------- -------- --------------- Hartford Global Communications HLS Fund.......... 9,000 95.35% 1,000 84.19% Hartford Global Financial Services HLS Fund...... 9,000 90.35 1,000 69.74 Hartford Global Health HLS Fund.................. @-- -- @-- -- Hartford International Small Company HLS Fund.... 2,700 84.02 300 87.97 Hartford International Capital Appreciation HLS Fund........................................... 2,700 69.11 300 48.68 Hartford MidCap Value HLS Fund................... 2,700 20.19 300 12.14 Hartford Focus HLS Fund.......................... 2,700 17.69 300 12.04 Hartford Value HLS Fund.......................... 2,700 34.66 300 19.88
@ Due to the presentation of the financial statements in thousands, the number of shares round to zero. b) As of June 30, 2001, certain HL group pension contracts held direct interests in shares as follows:
PERCENT OF FUND SHARES TOTAL SHARES ------------------------------------------------------------ ------- ------------ Hartford Global Health HLS Fund............................. 2,690 2.08% Hartford Global Technology HLS Fund......................... 3,647 2.01 Hartford Small Company HLS Fund, Inc. ...................... 17,810 2.86 Hartford Capital Appreciation HLS Fund, Inc. ............... 91,161 3.99 Hartford MidCap HLS Fund, Inc. ............................. 14,535 1.53 Hartford International Opportunities HLS Fund, Inc. ........ 18,700 1.66 Hartford Global Leaders HLS Fund............................ 23,125 6.20 Hartford Stock HLS Fund, Inc. .............................. 74,932 4.27 Hartford Growth and Income HLS Fund......................... 3,100 0.84 Hartford Index HLS Fund, Inc. .............................. 48,825 7.55 Hartford Dividend and Growth HLS Fund, Inc. ................ 17,734 1.05 Hartford Global Advisers HLS Fund, Inc. .................... 4,131 1.17 Hartford Advisers HLS Fund, Inc. ........................... 101,302 1.89 Hartford High Yield HLS Fund................................ 999 0.77 Hartford Bond HLS Fund, Inc. ............................... 67,369 5.69 Hartford Mortgage Securities HLS Fund, Inc. ................ 16,180 5.08 Hartford Money Market HLS Fund, Inc. ....................... 132,101 8.45
115 117 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS: For the six months ended June 30, 2001, aggregate purchases and sales of investment securities (excludes short-term investments) were as follows:
SALES FUND COST OF PURCHASES PROCEEDS ---- ----------------- ---------- Hartford Global Communications HLS Fund..................... $ 5,484 $ 4,879 Hartford Global Financial Services HLS Fund................. 7,255 4,917 Hartford Global Health HLS Fund............................. 92,056 41,454 Hartford Global Technology HLS Fund......................... 150,709 113,293 Hartford International Small Company HLS Fund............... 4,804 1,393 Hartford Small Company HLS Fund, Inc........................ 893,104 858,458 Hartford International Capital Appreciation HLS Fund........ 5,268 1,267 Hartford Capital Appreciation HLS Fund, Inc................. 5,125,886 5,000,036 Hartford MidCap HLS Fund, Inc............................... 1,092,646 940,930 Hartford MidCap Value HLS Fund.............................. 15,179 508 Hartford International Opportunities HLS Fund, Inc.......... 952,824 1,024,966 Hartford Global Leaders HLS Fund............................ 1,052,603 1,005,167 Hartford Focus HLS Fund..................................... 18,444 1,997 Hartford Stock HLS Fund, Inc................................ 2,340,296 2,135,260 Hartford Value HLS Fund..................................... 9,332 202 Hartford Growth and Income HLS Fund......................... 225,192 165,584 Hartford Index HLS Fund, Inc................................ 73,036 92,312 Hartford Dividend and Growth HLS Fund, Inc.................. 1,076,711 956,324 Hartford Global Advisers HLS Fund, Inc...................... 561,320 558,726 Hartford Advisers HLS Fund, Inc............................. 2,779,773 2,537,320 Hartford High Yield HLS Fund................................ 95,426 40,497 Hartford Bond HLS Fund, Inc................................. 1,654,008 1,446,467 Hartford Mortgage Securities HLS Fund, Inc.................. 465,297 351,735
116 118 -------------------------------------------------------------------------------- 6. RECLASSIFICATION OF CAPITAL ACCOUNTS: In accordance with AICPA Statement of Position 93-2, Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies, the Funds have recorded several reclassifications in their capital accounts. These reclassifications had no impact on the net asset value per share of the Funds and are designed generally to present undistributed income and realized gains on a tax basis which is considered to be more informative to the shareholder. As of December 31, 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 REALIZED NET INVESTMENT GAIN ON CAPITAL FUND INCOME INVESTMENTS 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 Fund 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 --
7. 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:
YEAR OF FUND AMOUNT 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
117 119 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- 8. CAPITAL SHARE TRANSACTIONS: The following information is for the six-months ended June 30, 2001:
HARTFORD GLOBAL COMMUNICATIONS HARTFORD GLOBAL FINANCIAL HARTFORD GLOBAL HEALTH HLS FUND HLS FUND HLS FUND ---------------------- -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ----------- ------------ ---------- ----------- CLASS IA Shares sold................. 716 $ 600 1,131 $ 1,126 39,367 $ 53,265 Shares issued on reinvestment of distributions............. 8 6 6 6 -- -- Shares redeemed............. (282) (234) (141) (140) (12,313) (16,295) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 442 $ 372 996 $ 992 27,054 $ 36,970 ======== =========== ========== =========== ========== ===========
HARTFORD GLOBAL HARTFORD INTERNATIONAL HARTFORD SMALL COMPANY TECHNOLOGY HLS FUND SMALL COMPANY HLS FUND HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 113,325 $ 70,684 4,412 $ 4,466 322,548 $ 481,392 Shares issued on reinvestment of distributions............. -- -- -- -- 41,342 55,117 Shares redeemed............. (70,318) (41,403) (1,117) (1,152) (316,954) (470,540) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 43,007 $ 29,281 3,295 $ 3,314 46,936 $ 65,969 ======== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL CAPITAL APPRECIATION HARTFORD CAPITAL HARTFORD MIDCAP HLS FUND APPRECIATION FUND, INC. HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 4,233 $ 4,151 99,299 $ 600,070 222,500 $ 524,098 Shares issued on reinvestment of distributions............. -- -- 608,951 2,590,441 106,034 218,450 Shares redeemed............. (317) (298) (105,488) (628,812) (148,600) (347,091) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 3,916 $ 3,853 602,762 $ 2,561,699 179,934 $ 395,457 ======== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD MIDCAP OPPORTUNITIES HARTFORD GLOBAL LEADERS VALUE HLS FUND HLS FUND, INC. HLS FUND ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 14,122 $ 14,101 2,314,639 $ 2,883,934 86,962 $ 139,273 Shares issued on reinvestment of distributions............. -- -- 156,279 155,838 3,826 5,770 Shares redeemed............. (459) (471) (2,344,409) (2,930,481) (71,633) (113,108) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 13,663 $ 13,630 126,509 $ 109,291 19,155 $ 31,935 ======== =========== ========== =========== ========== ===========
118 120 --------------------------------------------------------------------------------
HARTFORD STOCK HARTFORD FOCUS HLS FUND HLS FUND, INC. HARTFORD VALUE HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 16,180 $ 16,328 44,757 $ 253,040 7,971 $ 7,980 Shares issued on reinvestment of distributions............. -- -- 128,647 641,294 -- -- Shares redeemed............. (900) (897) (92,508) (513,092) (150) (149) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 15,280 $ 15,431 80,896 $ 381,242 7,821 $ 7,831 ======== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD INDEX INCOME HLS FUND GROWTH HLS FUND, INC. HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 98,924 $ 128,106 194,902 $ 407,370 40,285 $ 143,375 Shares issued on reinvestment of distributions............. 12,954 15,880 104,227 202,830 10,998 37,072 Shares redeemed............. (59,734) (76,861) (163,626) (341,442) (54,920) (191,150) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 52,144 $ 67,125 135,503 $ 268,758 (3,637) $ (10,703) ======== =========== ========== =========== ========== ===========
HARTFORD GLOBAL ADVISERS HARTFORD ADVISERS HARTFORD HIGH YIELD HLS FUND, INC. HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 73,858 $ 81,979 102,392 $ 268,645 98,741 $ 97,469 Shares issued on reinvestment of distributions............. 20,171 20,636 366,469 873,905 74 71 Shares redeemed............. (85,175) (94,389) (300,271) (782,091) (52,237) (51,228) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 8,854 $ 8,226 168,590 $ 360,459 46,578 $ 46,312 ======== =========== ========== =========== ========== ===========
HARTFORD BOND HARTFORD MORTGAGE HARTFORD MONEY MARKET HLS FUND, INC. SECURITIES HLS FUND, INC. HLS FUND, INC. ---------------------- -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ----------- ------------ ---------- ----------- CLASS IA Shares sold................. 251,955 $ 287,355 49,417 $ 57,623 5,770,026 $ 5,770,026 Shares issued on reinvestment of distributions............. 53,709 59,005 17,509 19,519 33,327 33,327 Shares redeemed............. (125,167) (142,516) (31,102) (36,198) (5,577,170) (5,577,170) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 180,497 $ 203,844 35,824 $ 40,944 226,183 $ 226,183 ======== =========== ========== =========== ========== ===========
119 121 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) --------------------------------------------------------------------------------
HARTFORD GLOBAL COMMUNICATIONS HARTFORD GLOBAL FINANCIAL HARTFORD GLOBAL HLS FUND SERVICES HLS FUND HEALTH HLS FUND ---------------------- -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ----------- ------------ ---------- ----------- CLASS IB Shares sold................. 194 $ 155 439 $ 437 10,602 $ 14,278 Shares issued on reinvestment of distributions............. 1 1 1 1 -- -- Shares redeemed............. -- -- (6) (6) (787) (1,046) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 195 $ 156 434 $ 432 9,815 $ 13,232 ======== =========== ========== =========== ========== ===========
HARTFORD GLOBAL HARTFORD INTERNATIONAL SMALL HARTFORD SMALL COMPANY TECHNOLOGY HLS FUND COMPANY FUND FUND, INC. ---------------------- ---------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ------------ ------------- ---------- ----------- CLASS IB Shares sold................. 18,477 $ 11,021 355 $ 355 22,253 $ 32,335 Shares issued on reinvestment of distributions............. -- -- -- -- 2,676 3,553 Shares redeemed............. (3,544) (1,930) -- -- (11,713) (16,689) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 14,933 $ 9,091 355 $ 355 13,216 $ 19,199 ======== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD CAPITAL HARTFORD MIDCAP CAPITAL APPRECIATION FUND APPRECIATION FUND, INC. HLS FUND, INC. -------------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 690 $ 659 24,120 $ 143,768 29,151 $ 68,164 Shares issued on reinvestment of distributions............. -- -- 17,180 72,943 6,345 13,029 Shares redeemed............. (3) (3) (985) (5,751) (2,345) (5,479) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 687 $ 656 40,315 $ 210,960 33,151 $ 75,714 ======== =========== ========== =========== ========== ===========
HARTFORD INTERNATIONAL HARTFORD MIDCAP VALUE OPPORTUNITIES HARTFORD GLOBAL HLS FUND HLS FUND, INC. LEADERS HLS FUND ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 2,582 $ 2,604 249,395 $ 307,333 14,836 $ 23,804 Shares issued on reinvestment of distributions............. -- -- 3,948 3,934 315 474 Shares redeemed............. (22) (22) (238,948) (295,507) (1,449) (2,280) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 2,560 $ 2,582 14,395 $ 15,760 13,702 $ 21,998 ======== =========== ========== =========== ========== ===========
120 122 --------------------------------------------------------------------------------
HARTFORD STOCK HARTFORD FOCUS HLS FUND HLS FUND, INC. HARTFORD VALUE HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 2,524 $ 2,540 17,469 $ 97,806 1,614 $ 1,620 Shares issued on reinvestment of distributions............. -- -- 3,204 15,953 -- -- Shares redeemed............. (4) (4) (769) (4,195) (20) (20) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 2,520 $ 2,536 19,904 $ 109,564 1,594 $ 1,600 ======== =========== ========== =========== ========== ===========
HARTFORD GROWTH AND HARTFORD DIVIDEND AND HARTFORD INDEX INCOME HLS FUND GROWTH HLS FUND, INC. HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 18,137 $ 23,418 26,940 $ 56,046 5,947 $ 21,009 Shares issued on reinvestment of distributions............. 1,115 1,363 2,877 5,596 170 573 Shares redeemed............. (1,660) (2,073) (640) (1,321) (589) (2,083) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 17,592 $ 22,708 29,177 $ 60,321 5,528 $ 19,499 ======== =========== ========== =========== ========== ===========
HARTFORD GLOBAL ADVISERS HARTFORD ADVISERS HARTFORD HIGH YIELD HLS FUND, INC. HLS FUND, INC. HLS FUND ------------------------ ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 8,005 $ 8,861 62,791 $ 163,759 20,056 $ 19,610 Shares issued on reinvestment of distributions............. 535 547 10,130 24,338 8 8 Shares redeemed............. (3,479) (3,853) (1,991) (5,096) (9,396) (9,178) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 5,061 $ 5,555 70,930 $ 183,001 10,668 $ 10,440 ======== =========== ========== =========== ========== ===========
HARTFORD BOND HARTFORD MORTGAGE SECURITIES HARTFORD MONEY MARKET HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------------- ---------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ------------ ------------- ---------- ----------- CLASS IB Shares sold................. 42,949 $ 48,896 8,336 $ 9,702 395,789 $ 395,777 Shares issued on reinvestment of distributions............. 3,371 3,698 526 585 1,540 1,540 Shares redeemed............. (3,387) (3,842) (421) (487) (337,936) (337,936) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 42,933 $ 48,752 8,441 $ 9,800 59,393 $ 59,393 ======== =========== ========== =========== ========== ===========
121 123 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) -------------------------------------------------------------------------------- The following information is for the year ended December 31, 2000:
HARTFORD GLOBAL HEALTH HARTFORD GLOBAL TECHNOLOGY HARTFORD SMALL COMPANY HLS FUND 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 ======== =========== ========== =========== ========== ===========
HARTFORD CAPITAL HARTFORD INTERNATIONAL APPRECIATION HARTFORD MIDCAP OPPORTUNITIES HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 231,719 $ 1,481,026 585,015 $ 1,403,743 2,911,648 $ 4,663,819 Shares issued on reinvestment of distributions............. 224,607 1,328,355 23,769 56,118 124,985 193,332 Shares redeemed............. (145,797) (928,364) (217,251) (520,902) (2,903,270) (4,658,749) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 310,529 $ 1,881,017 391,533 $ 938,959 133,363 $ 198,402 ======== =========== ========== =========== ========== ===========
HARTFORD GLOBAL LEADERS HARTFORD STOCK HARTFORD GROWTH AND INCOME HLS FUND HLS FUND, INC. HLS FUND ------------------------ ------------------------ -------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ------------ ---------- ----------- ----------- ------------ CLASS IA Shares sold................. 287,140 $ 551,098 251,624 $ 1,571,846 200,076 $ 284,231 Shares issued on reinvestment of distributions............. 2,940 5,434 173,507 1,086,104 4,786 6,641 Shares redeemed............. (58,590) (110,778) (109,433) (714,919) (59,396) (84,933) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 231,490 $ 445,754 315,698 $ 1,943,031 145,466 $ 205,939 ======== =========== ========== =========== ========== ===========
HARTFORD DIVIDEND AND HARTFORD INDEX HARTFORD INTERNATIONAL GROWTH HLS FUND, INC. HLS FUND, INC. ADVISERS HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 211,030 $ 440,545 100,765 $ 410,119 87,994 $ 116,771 Shares issued on reinvestment of distributions............. 168,458 332,349 11,190 44,296 40,505 49,411 Shares redeemed............. (370,178) (767,186) (87,375) (355,466) (77,325) (100,863) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 9,310 $ 5,708 24,580 $ 98,949 51,174 $ 65,319 ======== =========== ========== =========== ========== ===========
122 124 --------------------------------------------------------------------------------
HARTFORD ADVISERS HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IA Shares sold................. 345,772 $ 957,673 36,855 $ 36,850 166,759 $ 172,712 Shares issued on reinvestment of distributions............. 480,213 1,296,440 5,226 4,909 4,294 4,427 Shares redeemed............. (536,574) (1,509,037) (24,188) (24,198) (223,527) (229,423) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 289,411 $ 745,076 17,893 $ 17,561 (52,474) $ (52,284) ======== =========== ========== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD MONEY MARKET SECURITIES HLS FUND, INC. HLS FUND, INC. -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ----------- CLASS IA Shares sold................. 54,308 $ 57,862 8,049,574 $ 8,049,574 Shares issued on reinvestment of distributions............. 2,046 2,172 66,782 66,782 Shares redeemed............. (110,139) (116,754) (8,131,517) (8,131,517) -------- ----------- ---------- ----------- Net Increase (Decrease)..... (53,785) $ (56,720) (15,161) $ (15,161) ======== =========== ========== ===========
HARTFORD GLOBAL HEALTH HARTFORD GLOBAL 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 HARTFORD MIDCAP OPPORTUNITIES HLS FUND, INC. HLS FUND, INC. HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 18,255 $ 113,399 21,275 $ 52,108 34,548 $ 50,609 Shares issued on reinvestment of distributions............. 1,448 8,565 219 520 923 1,422 Shares redeemed............. (501) (3,097) (900) (2,144) (23,494) (33,173) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 19,202 $ 118,867 20,594 $ 50,484 11,977 $ 18,858 ======== =========== ========== =========== ========== ===========
123 125 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) JUNE 30, 2001 (UNAUDITED) ($000 OMITTED) --------------------------------------------------------------------------------
HARTFORD GLOBAL LEADERS HARTFORD STOCK HARTFORD GROWTH AND INCOME HLS FUND HLS FUND, INC. 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 ======== =========== ========== =========== ========== ===========
HARTFORD DIVIDEND AND HARTFORD INDEX HARTFORD INTERNATIONAL GROWTH HLS FUND, INC. HLS 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 HARTFORD HIGH YIELD HARTFORD BOND HLS FUND, INC. HLS FUND HLS FUND, INC. ---------------------- ------------------------ ------------------------ SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT -------- ----------- ---------- ----------- ---------- ----------- CLASS IB Shares sold................. 44,879 $ 124,887 2,447 $ 2,457 14,461 $ 15,148 Shares issued on reinvestment of distributions............. 6,465 17,444 184 181 91 94 Shares redeemed............. (2,896) (8,052) (71) (80) (1,946) (2,009) -------- ----------- ---------- ----------- ---------- ----------- Net Increase (Decrease)..... 48,448 $ 134,279 2,560 $ 2,558 12,606 $ 13,233 ======== =========== ========== =========== ========== ===========
HARTFORD MORTGAGE HARTFORD MONEY MARKET SECURITIES HLS FUND, INC. HLS FUND, INC. -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ------------- ---------- ----------- CLASS IB Shares sold................. 1,223 $ 1,339 92,669 $ 92,669 Shares issued on reinvestment of distributions............. 1 2 985 985 Shares redeemed............. (222) (247) (66,188) (66,188) -------- ----------- ---------- ----------- Net Increase (Decrease)..... 1,002 $ 1,094 27,466 $ 27,466 ======== =========== ========== ===========
9. LINE OF CREDIT: The funds 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 six months ended June 30, 2001, the Funds did not have any borrowings under this facility. 124 126 -------------------------------------------------------------------------------- 10. 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 PERCENTAGES ---- ------------- Hartford Bond HLS Fund, Inc.............................. 93.065183% Hartford Stock HLS Fund, Inc............................. 9.265642 Hartford Advisers HLS Fund, Inc.......................... 29.667722 Hartford Capital Appreciation HLS Fund, Inc.............. 15.418052 Hartford International Opportunities HLS Fund, Inc....... 71.625006 Hartford Small Company HLS Fund, Inc..................... 74.613827 Hartford Dividend and Growth HLS Fund, Inc............... 44.378756
125 127 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- -------------------------------------------------------------------------------------------------- NET NET REALIZED DIVIDENDS ASSET AND IN DISTRIBUTIONS VALUE UNREALIZED DIVIDENDS EXCESS FROM AT NET GAIN TOTAL FROM OF NET BEGINNING INVESTMENT (LOSS) FROM NET NET REALIZED OF INCOME ON INVESTMENT INVESTMENT INVESTMENT GAINS ON PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS --------- ---------- ------------ ---------- ---------- ---------- ------------- HARTFORD GLOBAL COMMUNICATIONS HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. $1.000 $ 0.003 $(0.232) $(0.229) $(0.001) $-- $ -- Class IB.................. 1.000 0.002 (0.232) (0.230) (0.001) -- -- HARTFORD GLOBAL FINANCIAL SERVICES HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.000 0.007 (0.005) 0.002 (0.001) -- -- Class IB.................. 1.000 0.004 (0.003) 0.001 (0.001) -- -- HARTFORD GLOBAL HEALTH HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.442 0.001 (0.027) (0.026) -- -- -- Class IB.................. 1.441 0.001 (0.028) (0.027) -- -- -- From inception May 1, 2000 through December 31, 2000 Class IA.................. 1.000 0.003 0.477 0.480 (0.003) -- (0.035) Class IB.................. 1.000 0.003 0.475 0.478 (0.002) -- (0.035) HARTFORD GLOBAL TECHNOLOGY HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 0.637 -- (0.069) (0.069) -- -- -- Class IB.................. 0.636 -- (0.069) (0.069) -- -- -- From inception May 1, 2000 through December 31, 2000 Class IA.................. 1.000 (0.001) (0.362) (0.363) -- -- -- Class IB.................. 1.000 (0.001) (0.363) (0.364) -- -- -- HARTFORD INTERNATIONAL SMALL COMPANY HLS FUND From inception April 30, 2001 through June 30, 2001 (Unaudited) Class IA.................. 1.000 0.002 (0.024) (0.022) -- -- -- Class IB.................. 1.000 0.002 (0.024) (0.022) -- -- -- HARTFORD SMALL COMPANY HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.687 0.001 (0.191) (0.190) -- -- (0.103) Class IB.................. 1.683 -- (0.191) (0.191) -- -- (0.103) For the Year Ended December 31, 2000 Class IA.................. 2.188 0.003 (0.254) (0.251) -- -- (0.250) Class IB.................. 2.187 0.003 (0.257) (0.254) -- -- (0.250) For the Year Ended December 31, 1999 Class IA.................. 1.321 (0.005) 0.875 0.870 -- -- (0.003) Class IB.................. 1.323(6) (0.004)(6) 0.871(6) 0.867(6) --(6) --(6) (0.003)(6) For the Year Ended December 31, 1998 Class IA.................. 1.202 (0.002) 0.141 0.139 -- -- (0.020) 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) --(6) For the Year Ended December 31 1997...................... 1.069 0.001 0.195 0.196 (0.001) -- (0.062) From inception August 9, 1996 through December 31, 1996................ 1.000 0.002 0.069 0.071 (0.002) -- -- HARTFORD INTERNATIONAL CAPITAL APPRECIATION HLS FUND From inception April 30, 2001 through June 30, 2001 (Unaudited) Class IA.................. 1.000 0.003 (0.105) (0.102) -- -- -- Class IB.................. 1.000 0.002 (0.104) (0.102) -- -- -- HARTFORD CAPITAL APPRECIATION HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 5.926 0.010 0.036 0.046 -- -- (1.609) Class IB.................. 5.923 0.002 0.039 0.041 -- -- (1.609) For the Year Ended December 31, 2000 Class IA.................. 6.095 0.041 0.757 0.798 (0.039) -- (0.928) Class IB.................. 6.098 (0.077) 0.864 0.787 (0.034) -- (0.928) For the Year Ended December 31, 1999 Class IA.................. 4.759 0.023 1.643 1.666 (0.018) -- (0.312) Class IB.................. 6.437(6) 0.150(6) 1.503(6) 1.653(6) (0.013)(6) --(6) (1.979)(6) For the Year Ended December 31, 1998 Class IA.................. 4.410 0.025 0.525 0.550 (0.026) -- (0.175) 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) --(6) For the Year Ended December 31 1997...................... 3.914 0.020 0.794 0.814 (0.022) -- (0.296) 1996...................... 3.490 0.022 0.655 0.677 (0.025) -- (0.228)
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (see note 12). (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. 126 128 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ------------------------------------------------------------------------------------------------------------- RATIO OF NET NET EXPENSES INCREASE ASSET NET TO (DECREASE) VALUE ASSETS AVERAGE IN AT AT END OF NET DISTRIBUTIONS NET END PERIOD ASSETS FROM TOTAL ASSETS OF TOTAL (IN AFTER CAPITAL DISTRIBUTIONS VALUE PERIOD RETURN THOUSANDS) WAIVERS ------------- ------------- ------------- --------- --------- -------------- ---------- $-- $(0.001) $(0.230) $0.770 (22.77)% $ 7,272 0.91%(1) -- (0.001) (0.231) 0.769 (22.84) 920 1.09(1) -- (0.001) 0.001 1.001 0.23 10,005 0.96(1) -- (0.001) -- 1.000 0.14 1,434 1.14(1) -- -- (0.026) 1.416 (1.82) 159,585 0.88(1) -- -- (0.027) 1.414 (1.91) 23,043 1.06(1) -- (0.038) 0.442 1.442 48.18(2) 123,533 0.90(1) -- (0.037) 0.441 1.441 48.00(2) 9,347 1.08(1) -- -- (0.069) 0.568 (45.64) 88,030 0.90(1) -- -- (0.069) 0.567 (45.73) 15,011 1.08(1) -- -- (0.363) 0.637 (37.37)(2) 71,276 0.92(1) -- -- (0.364) 0.636 (37.45)(2) 7,340 1.10(1) -- -- (0.022) 0.978 (2.19)(2) 3,223 1.02(1) -- -- (0.022) 0.978 (2.22)(2) 347 1.20(1) -- (0.103) (0.293) 1.394 (10.93) 816,668 0.75(1) (0.103) (0.294) 1.389 (11.01) 52,239 0.93(1) -- (0.250) (0.501) 1.687 (13.12) 908,886 0.74 (0.250) (0.504) 1.683 (13.28) 40,967 0.92 -- (0.003) 0.867 2.188 65.83 757,302 0.78 --(6) (0.003)(6) 0.864(6) 2.187(6) 65.54 10,200 0.96 -- (0.020) 0.119 1.321 11.62 350,734 0.77 --(6) --(6) (0.017)(6) 1.323(6) (1.30)(2) 696 0.95(1) -- (0.063) 0.133 1.202 18.38 210,769 0.77 -- (0.002) 0.069 1.069 7.15(2) 42,812 0.72(1) -- -- (0.102) 0.898 (10.22)(2) 3,516 1.02(1) -- -- (0.102) 0.898 (10.25)(2) 617 1.20(1) -- (1.609) (1.563) 4.363 1.49 9,685,066 0.67(1) -- (1.609) (1.568) 4.355 1.74 275,608 0.85(1) -- (0.967) (0.169) 5.926 13.22 9,581,898 0.66 -- (0.962) (0.175) 5.923 13.02 136,058 0.84 -- (0.330) 1.336 6.095 37.46 7,963,003 0.66 --(6) (1.992)(6) (0.339)(6) 6.098(6) 37.21 22,993 0.84 -- (0.201) 0.349 4.759 15.48 5,807,480 0.64 --(6) (0.156)(6) (0.049)(6) 6.437(6) 1.65(2) 5,942 0.82(1) -- (0.318) 0.496 4.410 22.34 4,802,992 0.64 -- (0.253) 0.424 3.914 20.70 3,386,670 0.65 -- RATIOS AND SUPPLEMENTAL DATA -- --------- ----------------------------------- RATIO RATIO OF OF EXPENSES NET TO INVESTMENT AVERAGE INCOME NET TO ASSETS AVERAGE PORTFOLIO BEFORE NET TURNOVER WAIVERS ASSETS RATE ---------- ---------- --------- 0.91%(1) 0.40%(1) 55.1% 1.16(1) 0.22(1) 55.1 0.96(1) 1.23(1) 50.6 1.21(1) 1.05(1) 50.6 0.88(1) 0.20(1) 28.6 1.13(1) 0.02(1) 28.6 0.90(1) 0.59(1) 46.1 1.15(1) 0.41(1) 46.1 0.90(1) (0.32)(1) 118.7 1.15(1) (0.50)(1) 118.7 0.92(1) (0.44)(1) 149.9 1.17(1) (0.62)(1) 149.9 1.02(1) 1.46(1) 41.0 1.27(1) 1.28(1) 41.0 0.75(1) 0.10(1) 108.5 1.00(1) (0.08)(1) 108.5 0.74 -- 194.5 0.99 (0.18) 194.5 0.78 (0.45) 181.3 1.03 (0.63) 181.3 0.77 (0.24) 235.7 0.95(1) (0.46)(1) 235.7 0.77 0.08 222.2 0.88(1) 0.31(1)(3) 31.8 1.02(1) 1.94(1) 39.3 1.27(1) 1.76(1) 39.3 0.67(1) 0.59(1) 54.8 0.92(1) 0.41(1) 54.8 0.66 0.64 108.2 0.91 0.46 108.2 0.66 0.46 66.4 0.91 0.28 66.4 0.64 0.59 51.2 0.82(1) 0.30(1) 51.2 0.64 0.44 57.6 0.65 0.60 85.4
127 129 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- -------------------------------------------------------------------------------------------------- NET NET REALIZED DIVIDENDS ASSET AND IN DISTRIBUTIONS VALUE UNREALIZED DIVIDENDS EXCESS FROM AT NET GAIN TOTAL FROM OF NET BEGINNING INVESTMENT (LOSS) FROM NET NET REALIZED OF INCOME ON INVESTMENT INVESTMENT INVESTMENT GAINS ON PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS --------- ---------- ------------ ---------- ---------- ---------- ------------- HARTFORD MIDCAP HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. $2.467 $ 0.001 $(0.074) $(0.073) $ -- $-- $(0.280) Class IB.................. 2.462 -- (0.075) (0.075) -- -- (0.280) For the Year Ended December 31, 2000 Class IA.................. 2.053 (0.001) 0.518 0.517 -- -- (0.103) Class IB.................. 2.053 (0.001) 0.513 0.512 -- -- (0.103) For the Year Ended December 31, 1999 Class IA.................. 1.439 -- 0.725 0.725 -- -- (0.111) From inception, November 9, 1999 through December 31, 1999 Class IB.................. 1.758 -- 0.373 0.373 (0.078) 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 MIDCAP VALUE HLS FUND From inception April 30, 2001 through June 30, 2001 (Unaudited) Class IA.................. 1.000 0.001 0.013 0.014 -- -- -- Class IB.................. 1.000 0.001 0.013 0.014 -- -- -- HARTFORD INTERNATIONAL OPPORTUNITIES HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.364 0.009 (0.202) (0.193) (0.001) -- (0.161) Class IB.................. 1.365 0.013 (0.206) (0.193) (0.003) -- (0.161) For the Year Ended December 31, 2000 Class IA.................. 1.876 0.018 (0.314) (0.296) (0.023) -- (0.193) Class IB.................. 1.876 0.025 (0.324) (0.299) (0.019) -- (0.193) 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) --(6) For the Year Ended December 31, 1998 Class IA.................. 1.294 0.021 0.147 0.168 (0.019) -- (0.088) 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) --(6) For the Year Ended December 31 1997...................... 1.407 0.022 (0.019) 0.003 (0.012) -- (0.104) 1996...................... 1.306 0.023 0.140 0.163 (0.025) -- (0.037) HARTFORD GLOBAL LEADERS HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.759 0.009 (0.220) (0.211) -- -- (0.017) Class IB.................. 1.757 0.009 (0.222) (0.213) -- -- (0.017) For the Year Ended December 31, 2000 Class IA.................. 1.913 0.008 (0.142) (0.134) (0.009) -- (0.011) Class IB.................. 1.912 (0.006) (0.130) (0.136) (0.008) -- (0.011) For the Year Ended December 31, 1999 Class IA.................. 1.285 0.003 0.642 0.645 (0.003) -- (0.014) Class IB.................. 1.285 0.007 0.634 0.641 -- -- (0.014) From inception September 30, 1998 through December 31, 1998 Class IA.................. 1.000 0.001 0.318 0.319 (0.002) -- (0.032) Class IB.................. 1.000 0.002 0.316 0.318 (0.001) -- (0.032) HARTFORD FOCUS HLS FUND From inception April 30, 2001 through June 30, 2001 (Unaudited) Class IA.................. 1.000 0.001 (0.005) (0.004) -- -- -- Class IB.................. 1.000 0.001 (0.005) (0.004) -- -- --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (see note 12). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 128 130 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ----------------------------------------------------------------------------------------------------------------------- RATIO OF EXPENSES NET ASSETS TO AVERAGE DISTRIBUTIONS NET INCREASE NET ASSET AT END OF NET ASSETS FROM TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND CAPITAL DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN (IN THOUSANDS) REIMBURSEMENTS ------------- ------------- ------------- ------------- ------- -------------- ------------------ $-- $(0.280) $(0.353) $2.114 (2.68)% $1,900,237 0.70%(1) -- (0.280) (0.355) 2.107 (2.76) 113,255 0.88(1) -- (0.103) 0.414 2.467 25.42 1,774,047 0.72 -- (0.103) 0.409 2.462 25.20 50,747 0.90 -- (0.111) 0.614 2.053 51.81 672,678 0.79 -- (0.078) 0.295 2.053 21.39(2) 36 0.97(1) -- -- 0.302 1.439 26.57 143,494 0.79 -- (0.001) 0.137 1.137 13.81(2) 27,589 0.46(1) -- -- 0.014 1.014 1.39(2) 13,852 0.92(1) -- -- 0.014 1.014 1.36(2) 2,595 1.10(1) -- (0.162) (0.355) 1.009 (14.01) 1,108,756 0.81(1) -- (0.164) (0.357) 1.008 (14.09) 28,290 0.99(1) -- (0.216) (0.512) 1.364 (17.10) 1,326,609 0.78 -- (0.212) (0.511) 1.365 (17.25) 18,682 0.96 -- (0.018) 0.521 1.876 39.86 1,574,836 0.78 --(6) (0.017)(6) 0.519(6) 1.876(6) 39.61 3,203 0.96 -- (0.107) 0.061 1.355 13.16 1,196,694 0.77 --(6) (0.022)(6) (0.039)(6) 1.357(6) (1.13)(2) 663 0.94(1) -- (0.116) (0.113) 1.294 0.34 1,092,946 0.77 -- (0.062) 0.101 1.407 12.93 996,543 0.79 -- (0.017) (0.228) 1.531 (12.01) 527,444 0.80(1) -- (0.017) (0.230) 1.527 (12.09) 43,411 0.98(1) -- (0.020) (0.154) 1.759 (7.06) 572,517 0.81 -- (0.019) (0.155) 1.757 (7.22) 25,869 0.99 -- (0.017) 0.628 1.913 50.37 179,675 0.86 -- (0.014) 0.627 1.912 50.11 69 1.04 -- (0.034) 0.285 1.285 31.88(2) 5,761 0.89(1) -- (0.033) 0.285 1.285 31.82(2) 39 0.98(1) -- -- (0.004) 0.996 (0.37)(2) 15,223 0.97(1) -- -- (0.004) 0.996 (0.40)(2) 2,510 1.15(1) -- RATIOS AND SUPPLEMENTAL DATA -- --------- ------------------------------------------ RATIO OF RATIO OF EXPENSES NET TO AVERAGE INVESTMENT NET ASSETS INCOME PORTFOLIO AFTER WAIVERS AND TO AVERAGE TURNOVER REIMBURSEMENTS NET ASSETS RATE ----------------- ---------- --------- 0.70%(1) 0.08%(1) 52.4% 0.95(1) (0.10)(1) 52.4 0.72 (0.08) 137.6 0.97 (0.26) 137.6 0.79 (0.15) 120.7 1.04(1) (0.32)(1) 120.7 0.79 (0.15) 134.1 0.86(1) 0.45(1)(3) 46.1 0.92(1) 1.22(1) 4.8 1.17(1) 1.04(1) 4.8 0.81(1) 1.82(1) 81.3 1.06(1) 1.64(1) 81.3 0.78 1.16 158.8 1.03 0.98 158.8 0.78 1.20 133.2 1.03 1.02 133.2 0.77 1.51 157.4 0.94(1) 0.71(1) 157.4 0.77 1.48 72.7 0.79 1.74 70.0 0.80(1) 1.16(1) 184.4 1.05(1) 0.98(1) 184.4 0.81 0.63 366.6 1.06 0.45 366.6 0.91 0.54(3) 207.4 1.16 0.36(3) 207.4 1.46(1) 0.63(1)(3) 47.9 1.55(1) 0.59(1)(3) 47.9 0.97(1) 1.26(1) 14.7 1.22(1) 1.08(1) 14.7
129 131 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- -------------------------------------------------------------------------------------------------- NET NET REALIZED DIVIDENDS ASSET AND IN DISTRIBUTIONS VALUE UNREALIZED DIVIDENDS EXCESS FROM AT NET GAIN TOTAL FROM OF NET BEGINNING INVESTMENT (LOSS) FROM NET NET REALIZED OF INCOME ON INVESTMENT INVESTMENT INVESTMENT GAINS ON PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS --------- ---------- ------------ ---------- ---------- ---------- ------------- HARTFORD STOCK HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. $5.880 $ 0.019 $(0.482) $(0.463) $ -- $-- $(0.405) Class IB.................. 5.879 0.029 (0.497) (0.468) -- -- (0.405) For the Year Ended December 31, 2000 Class IA.................. 7.147 0.039 (0.500) (0.461) (0.041) -- (0.765) Class IB.................. 7.151 0.074 (0.547) (0.473) (0.034) -- (0.765) For the Year Ended December 31, 1999 Class IA.................. 6.562 0.050 1.143 1.193 (0.049) -- (0.559) Class IB.................. 11.884(6) 0.021(6) 1.200(6) 1.221(6) (0.056)(6) --(6) (5.898)(6) For the Year Ended December 31, 1998 Class IA.................. 5.123 0.051 1.622 1.673 (0.050) -- (0.184) 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) --(6) For the Year Ended December 31 1997...................... 4.143 0.050 1.196 1.246 (0.049) -- (0.217) 1996...................... 3.527 0.060 0.763 0.823 (0.059) -- (0.148) HARTFORD VALUE HLS FUND From inception April 30, 2001 through June 30, 2001 (Unaudited) Class IA.................. 1.000 0.001 0.006 0.007 -- -- -- Class IB.................. 1.000 0.001 0.006 0.007 -- -- -- HARTFORD GROWTH AND INCOME HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.326 0.003 (0.035) (0.032) -- -- (0.050) Class IB.................. 1.323 0.003 (0.037) (0.034) -- -- (0.050) For the Year Ended December 31, 2000 Class IA.................. 1.432 0.005 (0.085) (0.080) (0.005) -- (0.021) Class IB.................. 1.430 (0.008) (0.074) (0.082) (0.004) -- (0.021) For the Year Ended December 31, 1999 Class IA.................. 1.186 0.004 0.255 0.259 (0.004) -- (0.009) Class IB.................. 1.185 0.006 0.250 0.256 (0.002) -- (0.009) From inception May 29, 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 Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 2.124 0.014 (0.046) (0.032) (0.001) -- (0.131) Class IB.................. 2.124 0.026 (0.059) (0.033) (0.001) -- (0.131) For the Year Ended December 31, 2000 Class IA.................. 2.149 0.035 0.178 0.213 (0.034) -- (0.204) Class IB.................. 2.151 0.040 0.169 0.209 (0.032) -- (0.204) For the Year Ended December 31, 1999 Class IA.................. 2.160 0.034 0.075 0.109 (0.035) -- (0.085) Class IB.................. 2.267(6) 0.024(6) 0.077(6) 0.101(6) (0.034)(6) --(6) (0.183)(6) For the Year Ended December 31, 1998 Class IA.................. 1.952 0.033 0.280 0.313 (0.035) -- (0.070) 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) --(6) For the Year Ended December 31 1997...................... 1.547 0.035 0.445 0.480 (0.031) -- (0.044) 1996...................... 1.317 0.034 0.258 0.292 (0.034) -- (0.028) HARTFORD INDEX HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 3.725 0.014 (0.273) (0.259) -- -- (0.059) Class IB.................. 3.720 0.019 (0.280) (0.261) -- -- (0.059) For the Year Ended December 31, 2000 Class IA.................. 4.189 0.030 (0.424) (0.394) (0.031) -- (0.039) Class IB.................. 4.189 0.037 (0.439) (0.402) (0.028) -- (0.039) For the Year Ended December 31, 1999 Class IA.................. 3.570 0.034 0.685 0.719 (0.040) -- (0.060) From inception November 9, 1999 through December 31, 1999 Class IB.................. 3.922 0.004 0.298 0.302 (0.032) -- (0.003) For the Year Ended December 31 1998...................... 2.878 0.032 0.759 0.791 (0.027) -- (0.072) 1997...................... 2.382 0.035 0.692 0.727 (0.035) -- (0.196) 1996...................... 2.028 0.044 0.393 0.437 (0.044) -- (0.039)
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (see note 12). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 130 132 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------------------------------------------- RATIO OF EXPENSES NET ASSETS TO AVERAGE DISTRIBUTIONS NET INCREASE NET ASSET AT END OF NET ASSETS FROM TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND CAPITAL DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN (IN THOUSANDS) REIMBURSEMENTS ------------- ------------- ------------- ------------- ------ -------------- ------------------ $-- $(0.405) $(0.868) $5.012 (7.84)% $8,579,871 0.49%(1) -- (0.405) (0.873) 5.006 (7.93) 215,519 0.67(1) -- (0.806) (1.267) 5.880 (7.04) 9,590,018 0.48 -- (0.799) (1.272) 5.879 (7.21) 136,077 0.66 -- (0.608) 0.585 7.147 19.78 9,400,385 0.48 --(6) 5.954(6) (4.733)(6) 7.151(6) 19.57 47,439 0.66 -- (0.234) 1.439 6.562 33.47 7,183,046 0.46 --(6) (0.517)(6) 1.091(6) 11.884(6) 14.91(2) 10,167 0.65(1) -- (0.266) 0.980 5.123 31.38 4,713,322 0.45 -- (0.207) 0.616 4.143 24.37 2,994,209 0.46 -- -- 0.007 1.007 0.70(2) 7,875 0.92(1) -- -- 0.007 1.007 0.67(2) 1,604 1.10(1) -- (0.050) (0.082) 1.244 (2.42) 421,097 0.79(1) -- (0.050) (0.084) 1.239 (2.51) 35,757 0.97(1) -- (0.026) (0.106) 1.326 (5.64) 379,905 0.79 -- (0.025) (0.107) 1.323 (5.81) 14,898 0.97 -- (0.013) 0.246 1.432 21.82 201,857 0.82 -- (0.011) 0.245 1.430 21.61 14 1.00 -- (0.004) 0.186 1.186 19.05(2) 25,312 0.28(1) -- (0.003) 0.185 1.185 18.82(2) 11 0.44(1) -- (0.132) (0.164) 1.960 (1.41) 3,210,164 0.68(1) -- (0.132) (0.165) 1.959 (1.50) 89,819 0.86(1) -- (0.238) (0.025) 2.124 10.95 3,189,857 0.68 -- (0.236) (0.027) 2.124 10.75 35,415 0.86 -- (0.120) (0.011) 2.149 5.31 3,207,733 0.68 --(6) (0.217)(6) (0.116)(6) 2.151(6) 5.12 16,087 0.86 -- (0.105) 0.208 2.160 16.42(2) 3,031,293 0.66 --(6) (0.070)(6) 0.014(6) 2.267(6) 3.67(2) 8,600 0.85(1) -- (0.075) 0.405 1.952 31.89 1,994,653 0.68 -- (0.062) 0.230 1.547 22.91 879,980 0.73 -- (0.059) (0.318) 3.407 (6.92) 2,171,150 0.43(1) -- (0.059) (0.320) 3.400 (7.00) 33,667 0.61(1) -- (0.070) (0.464) 3.725 (9.50) 2,387,000 0.43 -- (0.067) (0.469) 3.720 (9.66) 16,272 0.61 -- (0.100) 0.619 4.189 20.49 2,581,436 0.43 -- (0.035) 0.267 4.189 7.73(2) 11 0.61(1) -- (0.099) 0.692 3.570 28.06 1,846,117 0.40 -- (0.231) 0.496 2.878 32.61 1,123,455 0.39 -- (0.083) 0.354 2.382 22.09 621,065 0.39 --------- ------------------------------ RATIO OF RATIO OF EXPENSES NET TO AVERAGE INVESTMENT NET ASSETS INCOME PORTFOLIO AFTER WAIVERS AND TO AVERAGE TURNOVER REIMBURSEMENTS NET ASSETS RATE ----------------- ---------- --------- 0.49%(1) 0.71%(1) 23.7% 0.74(1) 0.53(1) 23.7 0.48 0.64 40.2 0.73 0.46 40.2 0.48 0.80 38.5 0.73 0.62 38.5 0.46 0.95 27.1 0.65(1) 0.73(1) 27.1 0.45 1.11 31.6 0.46 1.59 42.3 0.92(1) 1.25(1) 2.8 1.17(1) 1.07(1) 2.8 0.79(1) 0.50(1) 40.4 1.04(1) 0.32(1) 40.4 0.79 0.41 72.8 1.04 0.23 72.8 0.82 0.63 53.8 1.07 0.45 53.8 0.84(1) 1.42(1)(3) 29.6 1.00(1) 1.34(1)(3) 29.6 0.68(1) 1.53(1) 30.4 0.93(1) 1.35(1) 30.4 0.68 1.70 59.4 0.93 1.52 59.4 0.68 1.60 55.9 0.93 1.42 55.9 0.66 1.81 48.2 0.85(1) 1.57(1) 48.2 0.68 2.21 34.2 0.73 2.52 56.9 0.43(1) 0.82(1) 3.2 0.68(1) 0.64(1) 3.2 0.43 0.75 6.7 0.68 0.57 6.7 0.43 0.95 2.8 0.68(1) 0.77(1) 2.8 0.40 1.21 4.5 0.39 1.52 5.7 0.39 2.07 19.3
131 133 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- -------------------------------------------------------------------------------------------------- NET NET REALIZED DIVIDENDS ASSET AND IN DISTRIBUTIONS VALUE UNREALIZED DIVIDENDS EXCESS FROM AT NET GAIN TOTAL FROM OF NET BEGINNING INVESTMENT (LOSS) FROM NET NET REALIZED OF INCOME ON INVESTMENT INVESTMENT INVESTMENT GAINS ON PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS --------- ---------- ------------ ---------- ---------- ---------- ------------- HARTFORD GLOBAL ADVISERS HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. $1.149 $ 0.016 $(0.072) $(0.056) $ -- $ -- $(0.063) Class IB.................. 1.147 0.033 (0.090) (0.057) -- -- (0.063) For the Year Ended December 31, 2000 Class IA.................. 1.397 0.046 (0.134) (0.088) (0.071) -- (0.089) Class IB.................. 1.397 0.048 (0.138) (0.090) (0.071) -- (0.089) 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) (0.032) 1997...................... 1.167 0.056 0.006 0.062 (0.050) -- (0.004) 1996...................... 1.109 0.040 0.093 0.133 (0.051) -- (0.024) HARTFORD ADVISERS HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 2.665 0.078 (0.176) (0.098) (0.053) -- (0.127) Class IB.................. 2.663 0.040 (0.141) (0.101) (0.031) -- (0.127) For the Year Ended December 31, 2000 Class IA.................. 2.965 0.068 (0.088) (0.020) (0.023) -- (0.257) Class IB.................. 2.966 0.074 (0.098) (0.024) (0.022) -- (0.257) For the Year Ended December 31, 1999 Class IA.................. 2.985 0.068 0.221 0.289 (0.063) -- (0.246) Class IB.................. 3.577(6) 0.061(6) 0.221(6) 0.282(6) (0.064)(6) --(6) (0.829)(6) For the Year Ended December 31, 1998 Class IA.................. 2.527 0.061 0.546 0.607 (0.060) -- (0.089) 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) --(6) For the Year Ended December 31 1997...................... 2.169 0.056 0.455 0.511 (0.055) -- (0.098) 1996...................... 1.958 0.059 0.255 0.314 (0.059) -- (0.044) HARTFORD HIGH YIELD HLS FUND For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 0.939 0.039 (0.034) 0.005 (0.001) -- -- Class IB.................. 0.938 0.019 (0.015) 0.004 (0.001) -- -- For the Year Ended December 31, 2000 Class IA.................. 1.005 0.078 (0.068) 0.010 (0.076) -- -- Class IB.................. 1.005 0.004 0.004 0.008 (0.075) -- -- For the Year Ended December 31, 1999 Class IA.................. 1.017 0.060 (0.013) 0.047 (0.059) -- -- Class IB.................. 1.017 0.085 (0.039) 0.046 (0.058) -- -- From inception, September 30, 1998 through December 31, 1998 Class IA.................. 1.000 0.019 0.017 0.036 (0.019) -- -- Class IB.................. 1.000 0.022 0.014 0.036 (0.019) -- -- HARTFORD BOND HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.108 0.086 (0.047) 0.039 (0.056) -- -- Class IB.................. 1.107 0.034 0.003 0.037 (0.055) -- -- For the Year Ended December 31, 2000 Class IA.................. 0.994 0.069 0.050 0.119 (0.005) -- -- Class IB.................. 0.995 0.061 0.056 0.117 (0.005) -- -- For the Year Ended December 31, 1999 Class IA.................. 1.081 0.062 (0.084) (0.022) (0.058) -- (0.007) Class IB.................. 1.083(6) 0.061(6) (0.084)(6) (0.023)(6) (0.057)(6) (6) (0.008)(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) --(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) -- --
--------------- (1) Annualized. (2) Not annualized. (3) Management fees were waived until assets (excluding assets contributed by companies affiliated with The Hartford Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (see note 12). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 132 134 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------------------------------------------- RATIO OF EXPENSES NET ASSETS TO AVERAGE DISTRIBUTIONS NET INCREASE NET ASSET AT END OF NET ASSETS FROM TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND CAPITAL DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN (IN THOUSANDS) REIMBURSEMENTS ------------- ------------- ------------- ------------- ------ -------------- ------------------ $ -- $(0.063) $(0.119) $1.030 (4.82)% $ 353,830 0.86%(1) -- (0.063) (0.120) 1.027 (4.91) 9,498 1.04(1) -- (0.160) (0.248) 1.149 (6.63) 384,648 0.85 -- (0.160) (0.250) 1.147 (6.80) 4,800 1.03 -- (0.025) 0.242 1.397 23.16 396,147 0.85 -- (0.025) 0.097 1.397 9.35(2) 11 1.03(1) (0.089) (0.166) (0.020) 1.155 13.35 285,853 0.86 -- (0.054) 0.008 1.175 5.52 207,582 0.87 -- (0.075) 0.058 1.167 12.25 104,486 0.96 -- (0.180) (0.278) 2.387 (3.67) 12,430,043 0.66(1) -- (0.158) (0.259) 2.404 (3.76) 398,325 0.84(1) -- (0.280) (0.300) 2.665 (0.75) 13,430,507 0.66 -- (0.279) (0.303) 2.663 (0.92) 252,247 0.84 -- (0.309) (0.020) 2.965 10.59 14,082,895 0.65 --(6) (0.893)(6) (0.611)(6) 2.966(6) 10.39 137,318 0.83 -- (0.149) 0.458 2.985 24.66 11,805,411 0.63 --(6) (0.195)(6) 0.206(6) 3.577(6) 11.96(2) 34,714 0.83(1) -- (0.153) 0.358 2.527 24.51 8,283,912 0.63 -- (0.103) 0.211 2.169 16.59 5,879,529 0.63 -- (0.001) 0.004 0.943 0.45 110,285 0.81(1) -- (0.001) 0.003 0.941 0.36 12,539 0.99(1) -- (0.076) (0.066) 0.939 1.03 66,104 0.81 -- (0.075) (0.067) 0.938 0.85 2,497 0.99 -- (0.059) (0.012) 1.005 4.70 52,731 0.72 -- (0.058) (0.012) 1.005 4.49 102 0.90 -- (0.019) 0.017 1.017 3.68(2) 14,482 0.35(1) -- (0.019) 0.017 1.017 3.63(2) 102 0.53(1) -- (0.056) (0.017) 1.091 3.45 1,213,999 0.52(1) -- (0.055) (0.018) 1.089 3.36 77,808 0.70(1) -- (0.005) 0.114 1.108 11.99 1,033,043 0.52 -- (0.005) 0.112 1.107 11.79 31,551 0.70 -- (0.065) (0.087) 0.994 (2.02) 978,861 0.52 --(6) (0.065)(6) (0.088)(6) 0.995(6) (2.19) 15,818 0.70 -- (0.054) 0.031 1.081 8.15 902,480 0.50 --(6) (0.055)(6) 0.008(6) 1.083(6) 5.89(2) 5,285 0.69(1) -- (0.060) 0.050 1.050 11.35 552,870 0.51 -- (0.063) (0.028) 1.000 3.52 402,548 0.52 --------- ------------------------------------------ RATIO OF RATIO OF EXPENSES NET TO AVERAGE INVESTMENT NET ASSETS INCOME PORTFOLIO AFTER WAIVERS AND TO AVERAGE TURNOVER REIMBURSEMENTS NET ASSETS RATE ----------------- ---------- --------- 0.86%(1) 2.66%(1) 171.3% 1.11(1) 2.48(1) 171.3 0.85 2.72 184.0 1.10 2.54 184.0 0.85 2.59 141.5 1.10(1) 2.42(1) 141.5 0.86 2.77 161.1 0.87 3.08 162.5 0.96 3.24 95.2 0.66(1) 2.52(1) 19.7 0.91(1) 2.34(1) 19.7 0.66 2.47 40.4 0.91 2.29 40.4 0.66 2.46 38.4 0.91 2.28 38.4 0.63 2.40 36.7 0.83(1) 2.22(1) 36.7 0.63 2.44 36.1 0.63 2.92 53.8 0.81(1) 9.14(1) 42.3 1.06(1) 8.96(1) 42.3 0.81 9.15 69.4 1.06 8.97 69.4 0.84 8.36(3) 46.9 1.09 8.18(3) 46.9 0.92(1) 8.04(1)(3) 15.4 1.10(1) 7.77(1)(3) 15.4 0.52(1) 5.90(1) 129.6 0.77(1) 5.72(1) 129.6 0.52 6.54 168.5 0.77 6.36 168.5 0.52 6.09 110.7 0.77 5.91 110.7 0.50 5.86 122.3 0.69(1) 5.54(1) 122.3 0.51 6.58 112.9(5) 0.52 6.37 212.0
133 135 -------------------------------------------------------------------------------- HARTFORD HLS MUTUAL FUNDS -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- (CONTINUED) --------------------------------------------------------------------------------
-- SELECTED PER-SHARE DATA(4) -- -------------------------------------------------------------------------------------------------- NET NET REALIZED DIVIDENDS ASSET AND IN DISTRIBUTIONS VALUE UNREALIZED DIVIDENDS EXCESS FROM AT NET GAIN TOTAL FROM OF NET BEGINNING INVESTMENT (LOSS) FROM NET NET REALIZED OF INCOME ON INVESTMENT INVESTMENT INVESTMENT GAINS ON PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME INVESTMENTS --------- ---------- ------------ ---------- ---------- ---------- ------------- HARTFORD MORTGAGE SECURITIES HLS FUND, INC. For the Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.138 0.106 (0.068) 0.038 (0.067) -- -- Class IB.................. 1.136 0.020 0.016 0.036 (0.067) -- -- For the Year Ended December 31, 2000 Class IA.................. 1.039 0.075 0.032 0.107 (0.008) -- -- Class IB.................. 1.039 0.078 0.027 0.105 (0.008) -- -- For the Year Ended December 31, 1999 Class IA.................. 1.085 0.068 (0.052) 0.016 (0.062) -- -- From inception November 9, 1999 through December 31, 1999 Class IB.................. 1.107 0.009 (0.016) (0.007) (0.061) -- -- For the Year Ended December 31 1998...................... 1.084 0.067 0.006 0.073 (0.067) (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 Six Months Ended June 30, 2001 (Unaudited) Class IA.................. 1.000 0.024 -- 0.024 (0.024) -- -- Class IB.................. 1.000 0.024 -- 0.024 (0.024) -- -- 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 Investment Management Company) reached $20 million. The ratio of expenses to average net assets would have been higher if management fees were not waived. The ratio of net investment income to average net assets would have been lower if management fees were not waived. (4) Information presented relates to a share of capital stock outstanding for the indicated period. (5) Excluding mortgage dollar rolls. (6) Per share amounts have been restated to reflect a reverse stock split for Class B shares effective September 17, 1999 (see note 12). (7) Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. See Notes to Financial Statements. 134 136 --------------------------------------------------------------------------------
-- RATIOS AND SUPPLEMENTAL DATA -- ---------------------------------------------------------------------------------------------------------------------- RATIO OF EXPENSES NET ASSETS TO AVERAGE DISTRIBUTIONS NET INCREASE NET ASSET AT END OF NET ASSETS FROM TOTAL (DECREASE) IN VALUE AT TOTAL PERIOD BEFORE WAIVERS AND CAPITAL DISTRIBUTIONS NET ASSETS END OF PERIOD RETURN (IN THOUSANDS) REIMBURSEMENTS ------------- ------------- ------------- ------------- ------ -------------- ------------------ -- (0.067) $(0.029) $1.109 3.23% $ 342,412 0.49%(1) -- (0.067) (0.031) 1.105 3.14 10,449 0.67(1) -- (0.008) 0.099 1.138 10.28 310,825 0.48 -- (0.008) 0.097 1.136 10.08 1,148 0.66 -- (0.062) (0.046) 1.039 1.52 339,767 0.48 -- (0.061) (0.068) 1.039 0.60(2) 9 0.66(1) (0.002) (0.072) 0.001 1.085 6.72 356,834 0.46 -- (0.065) 0.028 1.084 9.01 325,702 0.45 -- (0.066) (0.015) 1.056 5.07 325,495 0.45 -- (0.024) -- 1.000 2.46 1,468,458 0.48(1) -- (0.024) -- 1.000 2.36 95,663 0.66(1) -- (0.059) -- 1.000 6.10 1,242,275 0.48 -- (0.058) -- 1.000 5.91 36,270 0.66 -- (0.070) -- 1.000 4.89 1,257,436 0.47 -- (0.068) -- 1.000 4.71 8,804 0.65 -- (0.051) -- 1.000 5.25 872,486 0.45 -- (0.037) -- 1.000 3.76(2) 2,179 0.64(1) -- (0.049) -- 1.000 5.31 612,480 0.44 -- (0.050) -- 1.000 5.18 542,586 0.44 --------- ------------------------------------------ RATIO OF RATIO OF EXPENSES NET TO AVERAGE INVESTMENT NET ASSETS INCOME PORTFOLIO AFTER WAIVERS AND TO AVERAGE TURNOVER REIMBURSEMENTS NET ASSETS RATE ----------------- ---------- --------- 0.49%(1) 6.11%(1) 106.6% 0.74(1) 5.93(1) 106.6 0.48 6.43 534.3 0.73 6.25 534.3 0.48 5.98 472.0 0.73(1) 5.80(1) 472.0 0.46 6.18 207.8 0.45 6.60 46.5(5) 0.45 6.67 201.0 0.48(1) 4.81(1) -- 0.73(1) 4.63(1) -- 0.48 5.91 -- 0.73 5.73 -- 0.47 4.81 -- 0.72 4.63 -- 0.45 5.12 -- 0.64(1) 4.81(1) -- 0.44 5.21 -- 0.44 5.04 --
135 137 [HARTFORD LOGO] PRIVACY POLICY AND PRACTICES OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. AND ITS AFFILIATES (THE HARTFORD) APPLICABLE TO THE HARTFORD'S UNITED STATES CUSTOMERS WE AT THE HARTFORD value our customers' trust and are committed to the responsible management, use and protection of personal information. All insurance companies must collect a certain amount of personal information to service customers and administer business. This notice describes our policy regarding the collection and disclosure of personal information. 1) Personal information, as used in this notice, means information that identifies an individual personally and is not otherwise available to the public. It includes personal financial information such as credit history, income, financial benefits, policy or claim information. It also includes personal health information such as individual medical records or information about an illness, disability or injury. 2) We collect personal information to support our normal business operations. We may obtain personal information directly from the customer, from customer-related transactions and from third parties, such as a consumer reporting agency. Personal information such as name, address, income, payment history or credit history are gathered from sources such as applications, transactions and consumer reports. 3) The Hartford's employees have access to personal information in the course of doing their jobs, which includes underwriting policies, paying claims, developing new products or advising customers of our products and services. 4) We may share personal financial information with our affiliates, such as insurance companies, banks, agents, brokerage firms and administrators. 5) To service our customers and administer our business, we may also share information with unaffiliated third parties, including agents, brokerage firms, insurance companies, administrators and service providers and as otherwise permitted or required by law. In addition, we may share personal financial information with other unaffiliated third parties who are assisting us by performing services or functions, such as conducting surveys, marketing our products or services, or offering financial products or services under a joint agreement between us and one or more financial institutions. PRIOR TO SHARING PERSONAL 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. 136 138 ================================================================================ -------------- Hartford Life Insurance Companies PRSRT STD P.O. Box 2999 U.S. POSTAGE Hartford, CT 06104-2999 PAID RANDOLPH, MA PERMIT NO. 100 -------------- HV-2233-6 Printed in U.S.A.(R)2001 The Hartford, Hartford, CT 06115