UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-04615
HARTFORD HLS SERIES FUND II, INC.
(Exact name of registrant as specified in charter)
5 Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087
(Address of Principal Executive Offices) (Zip Code)
Alice A. Pellegrino
Hartford Funds Management Company, LLC
5 Radnor Corporate Center, Suite 300
100 Matsonford Road
Radnor, Pennsylvania 19087
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: 610-386-1844
Date of fiscal year end: December 31
Date of reporting period: June 30, 2016
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F. Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
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| | A MESSAGE FROM THE PRESIDENT Dear Fellow Shareholders: Thank you for investing in Hartford HLS Funds. Market Review Equities struggled to find direction during the six months ended June 30, 2016, the period covered by this report. Stocks fell into correction territory (a drop of 10% or more) to start the year, returned to a positive trajectory in mid-February, dropped yet again following the so-called “Brexit” referendum in the United Kingdom (U.K.), then regained that lost ground in a |
matter of days to close the first half of the year solidly positive. Despite these fluctuations, the bull market that began in 2009 continued into its seventh year. Year to date, the S&P 500 Index1 had gained 3.84% as of June 30, 2016.
Low oil prices and weakness in the Chinese economy contributed to market insecurity the first few months of the year, alongside worries that the U.S. Federal Reserve (Fed) would continue to raise rates in the midst of the uncertain global economic conditions. Now, oil prices and China’s economy seem to have stabilized, but questions remain over how the “Brexit” could impact the global economy and markets as the unprecedented move is executed.
On a positive note, the June employment report exceeded estimates, and the global uncertainty may further slow the pace of Fed rate hikes. In March 2016, Fed commentary implied that there would only be two additional rate increases in 2016, which is an even slower pace than the four hikes originally expected for the year. The gradual pace should be a positive, particularly for fixed-income investors, who are most likely to be impacted by changing interest rates.
In addition to continuing global macroeconomic developments such as Brexit, the U.S. presidential election could contribute to market volatility as we approach Election Day in the fall. Volatility isn’t unusual surrounding elections, and this year’s particularly contentious race could prove no exception to that rule.
With that in mind, I encourage you to schedule time with your financial advisor to review your portfolio’s progress and your asset allocation to make certain it’s still in line with your risk tolerance and unique investment goals. Whether you’re seeking growth, income, or a way to mitigate volatility with your investments, your financial advisor can help you find a fit within our family of mutual funds that were designed with you, and your investment goals, in mind.
Thank you again for investing with Hartford HLS Funds.
James Davey
President
Hartford HLS Funds
1The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Hartford HLS Funds
Table of Contents
The views expressed in each Fund’s Manager Discussion under “Why did the Fund perform this way?” and “What is the outlook?” are views of that Fund’s sub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.
Hartford Balanced HLS Fund inception 03/31/1983
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term total return. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Balanced IA | | | 3.64% | | | | 2.58% | | | | 8.73% | | | | 6.38% | |
Balanced IB | | | 3.52% | | | | 2.33% | | | | 8.46% | | | | 6.11% | |
S&P 500 Index | | | 3.84% | | | | 3.99% | | | | 12.10% | | | | 7.42% | |
Barclays Government/Credit Bond Index | | | 6.23% | | | | 6.70% | | | | 4.11% | | | | 5.22% | |
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index | | | 0.15% | | | | 0.19% | | | | 0.09% | | | | 1.04% | |
Balanced HLS Fund Blended Index | | | 4.58% | | | | 4.98% | | | | 8.84% | | | | 6.64% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Barclays Government/Credit Bond Index is an unmanaged, market-value-weighted index of all debt obligations of the U.S. Treasury and U.S. Government agencies (excluding mortgaged-backed securities) and of all publicly-issued fixed-rate, nonconvertible, investment grade domestic corporate debt.
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury bills publicly issued in the U.S. domestic markets with maturities of 90 days or less that assumes reinvestment of all income.
Balanced HLS Fund Blended Index is calculated by Hartford Funds Management Company, LLC and represents the weighted return of 60% S&P 500 Index, 35% Barclays Government/Credit Bond Index and 5% Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.65% and 0.90%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Balanced HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Karen H. Grimes, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Michael E. Stack, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Balanced HLS Fund returned 3.64% for the six-month period ended June 30, 2016, underperforming the Fund’s blended benchmark, 60% S&P 500 Index, 35% Barclays Government/Credit Bond Index, and 5% Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index, which returned 4.58% for the same period. The S&P 500, Barclays Government/Credit Bond, and Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Indices returned 3.84%, 6.23% and 0.15%, respectively. The Fund outperformed the 2.33%% average return of the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a group of funds that hold between 60%-80% in equity securities, with the remainder invested in bonds, cash, and cash equivalents.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union
(E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index. During the six-month period, six of the ten sectors within the S&P 500 Index posted positive returns, led by Telecommunication Services (+25%), Utilities (+23%), and Energy (+16%). Financials (-3%), Information Technology (0%) and Consumer Discretionary (0%) lagged the broader index.
Over the first half of 2016, global fixed income markets were influenced by global economic growth concerns, central bank monetary policies, oil prices, and the U.K.’s vote to leave the E.U. During the first quarter of 2016, falling oil prices, concerns over slowing growth in China, and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their safe-haven status. Following the lead of European central banks, the Bank of Japan (BOJ) introduced negative interest rates for the first time as the volatility and instability in financial markets threatened to tip Japan back into deflation. Markets reversed course in mid-February as the major central banks adopted an overall cautious stance to further rate increases in an effort to ease market risk. A rebound in crude oil prices and signs of near-term stabilization in China further supported global financial markets during the start of the second quarter. However, investors turned more cautious in June as the outcome of the referendum on U.K.’s E.U. membership moved into sharper focus. The FOMC held rates steady during the period, while upholding its baseline view for a gradual tightening in monetary policy. Markets started to come around to the idea of a possible rate increase in June or July after a flurry of statements suggesting plans to further raise rates during 2016 in May. However, a weak U.S. payrolls report in early June and growing uncertainty over Brexit started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting
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| Hartford Balanced HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
amid lingering uncertainty about the strength of the global economy as well as a reluctance to increase rates ahead of the E.U. referendum vote in the U.K. The U.K.’s momentous vote to leave to the E.U. led to a spike in global financial market volatility and a flight to safety at the end of the period, with U.K. and European equity and credit markets bearing the brunt of the sell-off. Credit spreads initially widened in the wake of the U.K.’s vote to leave the E.U. but then rallied strongly into the end of the period on the prospect of further monetary policy easing globally.
Developed markets’ government bond prices gained over the six-month period as global uncertainties kept central banks in easing mode, Japan joined the growing list of countries with negative yields, and Brexit caused a significant decline in interest rates. In the U.S., the yield curve dropped and flattened; intermediate- and long-term yields declined more sharply than front-end yields. The U.S. dollar ended the first half of the year with mixed performance against its major counterparts. The Japanese yen was the major gainer among G10 currencies, as market participants questioned the efficacy of the BOJ’s negative rates policy and the Brexit vote. The British pound and the Euro depreciated against the U.S. dollar.
Absolute returns in the major fixed income credit risk sectors were positive, aided by the decline in government bond yields. On an excess return basis, most credit risk sectors posted positive returns over the full six-month period, including U.S. high yield, emerging market debt, and investment grade corporates, as spreads tightened over the period. However, this masked considerable volatility in credit risk sector within the period, including a drawdown in many credit risk sectors in the first part of 2016 and in the aftermath of Brexit.
During the period, the equity portion of the Fund underperformed the S&P 500 Index and the fixed income portion of the Fund outperformed the Barclays Government/Credit Bond Index. Asset allocation detracted from benchmark-relative performance during the period. The Fund was generally overweight equities and fixed income and underweight cash relative to the blended benchmark.
Equity underperformance versus the S&P 500 Index was driven primarily by sector allocation, which is a residual of our bottom-up security selection process. The Fund’s underweight to Telecommunication Services and Utilities were the main detractors, which was slightly offset by positive performance from an underweight to Information Technology. Security selection modestly detracted during the period. Security selection in Financials, Healthcare, and Consumer Staples detracted the most from relative performance; this was partially offset by stronger selection in Industrials and Energy.
Stocks that detracted the most from relative returns in the equity portion of the Fund during the period were Norwegian Cruise Line (Consumer Discretionary), Vertex (Healthcare), and AT&T
(Telecommunication Services). Shares of Norwegian Cruise Lines, a U.S.-based international cruise operator, fell due to uncertainty regarding how Brexit will affect the travel and leisure industry, in addition to a first quarter 2016 earnings report that cited recent terror attacks in Paris, Brussels, and Istanbul as a drag on European cruise revenue. Vertex, a U.S.-based pharmaceutical company, saw its shares drop after the company received notice from the FDA that it could not approve the company’s label expansion claim for Kalydeco, a cystic fibrosis drug, based on the current application. The company also reported a higher-than-expected discontinuation rate for Orkambi, another cystic fibrosis drug. Shares of U.S.-based telecommunication services provider AT&T rose over the period due to solid earnings results and guidance attributed to synergies from its DIRECTV acquisition. Not holding this benchmark constituent detracted from relative returns. Wells Fargo (Financials) and Citigroup (Financials) detracted on an absolute basis.
Top contributors to relative performance in the equity portion of the Fund during the period were NextEra Energy (Utilities), Marsh & McLennan (Financials), and Bank of America (Financials). Shares of NextEra Energy, a U.S.-based electric power company, rose during the period as regulators approved a proposal from the company to construct and operate a natural gas pipeline to southern Florida. The stock price of Marsh & McLennan, a U.S.-based professional services firm, rose over the period as it reported revenue growth in February that topped expectations, which provided a tailwind for the rest of the period. Bank of America, a U.S.-based financial services firm, saw its shares fall over the period due to fears of a “lower-for-longer” interest rate environment and worries about deterioration in asset quality in the Energy sector. Not holding this benchmark constituent contributed positively to relative performance over the period. The Fund’s holdings in 3M (Industrials) contributed positively on an absolute basis.
Outperformance of the fixed income portion of the Fund relative to the Barclays Government/Credit Bond Index during the period was driven by security selection in investment grade (IG) corporate credit, particularly within Industrials, and an allocation to taxable municipals. An out-of-benchmark allocation to asset-backed securities (ABS) and agency mortgage-backed securities (MBS) also modestly contributed positively to relative returns during the period. The Fund’s allocation to high yield detracted from relative returns during this period. The Fund’s duration and yield curve positioning detracted from results relative to the Barclays Government/Credit Bond Index as rates fell across the yield curve; the fixed income portion of the Fund was shorter duration than its benchmark for most of the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
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| Hartford Balanced HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
What is the outlook?
We continue to seek what we consider to be balance in the portfolio to allow for upside potential while avoiding excess exposure to a specific economic scenario. Despite slowing global growth and uncertainty, there are bright spots. We expect positive gross domestic product (GDP) growth in the U.S., where consumption has held up and low interest rates and a strong dollar have helped the U.S. consumer. Additionally, we believe low and negative yields in other major economic zones are still driving capital flows toward the relatively higher yields and safety of the U.S. markets. There has been increased interest in fiscal policy as a tool for promoting economic growth across regions globally, which we believe should benefit the industrial sector through increased infrastructure projects. Relative to these trends, we believe the portfolio is well positioned, and we are optimistic on fundamentals as we look forward in 2016 and into next year.
Healthcare and Telecommunication Services represented the Fund’s largest sector overweight and underweight, respectively, in the equity portion of the Fund at the end of the period. On the fixed income side we ended the period with a moderately pro-cyclical risk posture, continuing to favor financial issuers within IG credit. We continued to be underweight U.S. Treasuries and continued to hold out-of-benchmark allocations to agency mortgage-backed securities, commercial mortgage-backed securities, and ABS.
At the end of the period, the Fund’s equity exposure was at 62% compared to 60% in its benchmark.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the Fund’s strategy for allocating assets
among different asset classes does not work as intended, the Fund may not achieve its objective or may underperform other funds with similar investment strategies. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. Fixed income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened due to the historically low interest rate environment. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government.
Diversification by Security Type
as of June 30, 2016
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 61.6 | % |
| | | | |
Total | | | 61.6 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 2.8 | % |
Corporate Bonds | | | 19.2 | |
Foreign Government Obligations | | | 0.5 | |
Municipal Bonds | | | 1.3 | |
U.S. Government Agencies | | | 1.1 | |
U.S. Government Securities | | | 13.5 | |
| | | | |
Total | | | 38.4 | % |
| | | | |
Short-Term Investments | | | 0.0 | % |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Capital Appreciation HLS Fund inception 04/02/1984
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Capital Appreciation IA | | | -1.35% | | | | -4.30% | | | | 8.81% | | | | 6.58% | |
Capital Appreciation IB | | | -1.50% | | | | -4.55% | | | | 8.53% | | | | 6.31% | |
Capital Appreciation IC | | | -1.63% | | | | -4.79% | | | | 8.26% | | | | 6.05% | |
Russell 3000 Index | | | 3.62% | | | | 2.14% | | | | 11.60% | | | | 7.40% | |
S&P 500 Index | | | 3.84% | | | | 3.99% | | | | 12.10% | | | | 7.42% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Class IC shares commenced operations on April 30, 2014. Class IC shares performance prior to that date reflects Class IA shares performance adjusted to reflect the 12b-1 fee of 0.25% and the administrative services fee of 0.25% applicable to Class IC shares. The performance after such date reflects actual Class IC shares performance.
Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.67%, 0.92% and 1.17%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
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| Hartford Capital Appreciation HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Saul J. Pannell, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Gregg R. Thomas, CFA
Senior Managing Director and Associate Director of Investment Strategy & Risk
Wellington Management Company LLP
Kent M. Stahl, CFA
Senior Managing Director and Director of Investment Strategy & Risk
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Capital Appreciation HLS Fund returned -1.35% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Russell 3000 Index, which returned 3.62% for the same period, and the Fund’s other benchmark, the S&P 500 Index, which returned 3.84% for the same period. The Fund also underperformed the 1.68% average return of the Lipper Multi-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,”
the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. Seven of the ten sectors in the Russell 3000 Index had positive returns during the period. Utilities (+24%), Telecommunication Services (+23%), and Energy (+15%) performed best, while Healthcare (-1%), Financials (-1%), and Information Technology (-0.3%) lagged the broader index.
Security selection was the primary detractor from performance relative to the Russell 3000 Index during the period. Selection was weakest within the Consumer Discretionary, Financials, Information Technology, and Industrials sectors. Sector allocation, a result of our bottom-up security selection process, also detracted from performance relative to the Russell 3000 Index during the period. Underweights to the Utilities and Telecommunication Services sectors and an overweight to the Healthcare sector detracted most from returns relative to the Russell 3000 Index. This was partially offset by an overweight to Materials and underweights to Financials and Consumer Discretionary, which contributed positively to relative performance during the period.
The largest absolute and relative detractors over the period were SunPower (Information Technology), Regeneron Pharmaceuticals
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| Hartford Capital Appreciation HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
(Healthcare), and OneMain Holdings (Financials). Shares of SunPower, a U.S.-based energy company that designs and manufactures crystalline silicon photovoltaic cells, roof tiles, and solar panels, fell during the period on concerns that 2017 earnings will decline as the renewal of investment tax credits late last year has elongated project demand into future years. Shares of Regeneron Pharmaceuticals, a U.S.-based biotech company, fell during the period. In February, the company announced poor fourth quarter earnings and conservative guidance for the upcoming year which adversely affected the stock price. Additionally, a verdict was reached during the period that Regeneron violated Amgen’s patent on an injectable cholesterol drug. This headline news also weighed on the stock price. OneMain Holdings, a U.S.-based consumer lending company, saw its share price decline during the period after reporting slightly higher loan loss trends and higher costs of funding from the high yield market.
The top contributors to performance relative to the Russell 3000 Index during the period included Apple (Information Technology), Sberbank (Financials), and Merck (Healthcare). Shares of Apple, a U.S.-based multinational technology company, declined during the period following a lackluster quarterly earnings report, in which the company reported a year-over-year decline in quarterly sales for the first time since 2003, as well as a drop in iPhone sales. In addition, regulatory conditions have weighed on sales in China. Not owning this benchmark constituent contributed positively to relative performance during the period. Shares of Sberbank, a Russian banking and financial services company, rose during the period. In May, the company reported a record profit for the first quarter of 2016, largely driven by lower borrowing costs and a decline in loan-loss provisions. Shares of Merck, a U.S.-based pharmaceutical company that produces vaccines and treatments across a number of conditions, outperformed during the period as investors reacted favorably to the company’s continued push into immuno-oncology therapies. Bristol-Myers Squibb (Healthcare) and Chubb (Financials) were among the top absolute contributors during the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
Despite the increased risks to the global economic outlook, we continue to believe that the U.S. will show improving but uninspiring sequential growth for the second half of the year. The U.S. consumer remains healthy to date and the drag from the stronger U.S. dollar may become less of a constraint on a year over year basis. Risks to this outlook could come from increased uncertainty around the
November U.S. elections and broader concerns about the strength of global growth and the future of the E.U. in a post Brexit world. At the end of the period, the Fund’s largest overweights were to the Healthcare and Information Technology sectors, while the Fund’s largest underweights were to the Consumer Staples and Telecommunication Services sectors, relative to the Russell 3000 Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the Fund’s strategy for allocating assets among different asset classes and/or portfolio management teams does not work as intended, the Fund may not achieve its objective or may underperform other funds with similar investment strategies. Small- and mid-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 12.3 | % |
Consumer Staples | | | 7.3 | |
Energy | | | 5.3 | |
Financials | | | 15.9 | |
Health Care | | | 17.6 | |
Industrials | | | 10.5 | |
Information Technology | | | 20.9 | |
Materials | | | 3.9 | |
Telecommunication Services | | | 1.3 | |
Utilities | | | 2.8 | |
| | | | |
Total | | | 97.8 | % |
| | | | |
Short-Term Investments | | | 1.4 | % |
Other Assets & Liabilities | | | 0.8 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Disciplined Equity HLS Fund inception 05/29/1998
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Disciplined Equity IA | | | 2.37% | | | | 4.49% | | | | 13.76% | | | | 8.25% | |
Disciplined Equity IB | | | 2.26% | | | | 4.21% | | | | 13.48% | | | | 7.98% | |
S&P 500 Index | | | 3.84% | | | | 3.99% | | | | 12.10% | | | | 7.42% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.76% and 1.01%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Disciplined Equity HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
Mammen Chally, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of the Hartford Disciplined Equity HLS Fund returned 2.37% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the S&P 500 Index, which returned 3.84% for the same period. The Fund outperformed the 2.21% average return of the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision.
After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000, respectively, though all three groups posted positive returns during the six-month period. During the six-month period, six of the ten sectors within the S&P 500 Index posted positive returns, led by Telecommunication Services (+25%), Utilities (+23%), and Energy (+16%).
The Fund underperformed the S&P 500 Index during the period primarily due to weak security selection, primarily within Consumer Staples, Financials, and Information Technology, which more than offset stronger selection within the Consumer Discretionary and Utilities sectors. Sector allocation, which is a residual of the Fund’s bottom-up security selection process, also detracted from benchmark-relative returns during the period. Underweight allocations to the Energy and Telecommunication Services sectors more than offset the positive impact from overweights to the Consumer Staples and Utilities sectors.
The largest detractors from performance relative to the S&P 500 Index over the period were Signet Jewelers (Consumer Discretionary), Allergan (Healthcare), and Exxon Mobil (Energy). Shares of Signet Jewelers, a U.S.-based retailer of jewelry, fell over the period after the company’s reported revenue missed market estimates. Also, there continues to be fears of credit deterioration and perceived high levels of bad debt with respect to that company. Shares of Allergan, a U.S.-based specialty pharmaceutical company, fell during the period as Pfizer walked away from a proposed merger due to changes in the U.S. Treasury Department’s tax inversion rules. Shares of U.S.-based energy company Exxon Mobil rose over the period as oil prices stabilized and moved higher. Not holding the benchmark constituent detracted from relative performance. Shares of Bank of America (Financials), a U.S.-based financial services company, also detracted on an absolute basis.
The largest contributors to performance relative to the S&P 500 Index over the period were NextEra Energy (Utilities), American Electric Power (Utilities), and Pinnacle West Capital (Utilities). Shares of NextEra Energy, a U.S.-based electric power company, rose during the period as regulators approved a proposal from the company to construct and operate a natural gas pipeline to southern Florida.
|
| Hartford Disciplined Equity HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Shares of U.S.-based public utility holding company American Electric Power rose over the period as the company increased its earnings guidance for 2016 and then later reaffirmed its earlier estimates. Shares of Pinnacle West Capital, a U.S.-based electric power company, rose after the company announced earnings that beat market expectations during the first quarter of 2016. Shares of Altria Group (Consumer Discretionary) also contributed positively to absolute performance over the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
A new level of uncertainty has been introduced by approval of the U.K.’s referendum to leave the E.U. We believe this could potentially slow capital expenditures, not only in Europe but also here in the U.S., which moderates our forward looking growth expectations for the U.S. economy. While we believe that Brexit is a net negative, we also believe it is manageable; therefore, the concern shifts to the potential for other E.U. member countries to react similarly if the U.K. is successful. The large U.S. financial services firms that have operations in London face a lot of uncertainty. We will have to wait and see how the negotiations evolve to determine the full impact on these firms.
We believe the U.S. economy remains on a reasonable footing with continued moderate economic growth. However, Brexit has the potential to unleash further strengthening of the U.S. dollar, which could act as a previously unforeseen tightening. In terms of monetary policy, this may mean that the Fed remains on hold for longer, which could be a headwind for many financial firms, particularly the banks. We will continue to monitor the situation and attempt to understand the implications for the financials that we own through conversations with the management teams. Other capital expenditure exposed sectors (e.g., Information Technology, Industrials) may also face modestly difficult conditions due to the uncertainty.
While our outlook for the U.S. economy has moderated following the unexpected Brexit vote, we continue to find what we consider to be
attractively valued stocks with the characteristics we seek. We remain consistent in adhering to our disciplined portfolio construction process that allows us to assess risk, weight individual positions accordingly, and in the process build a portfolio that relies largely on stock selection in seeking to generate benchmark relative outperformance.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 13.5 | % |
Consumer Staples | | | 15.0 | |
Energy | | | 3.0 | |
Financials | | | 13.9 | |
Health Care | | | 15.9 | |
Industrials | | | 10.5 | |
Information Technology | | | 16.8 | |
Materials | | | 3.8 | |
Utilities | | | 5.3 | |
| | | | |
Total | | | 97.7 | % |
| | | | |
Short-Term Investments | | | 1.9 | % |
Other Assets & Liabilities | | | 0.4 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Dividend and Growth HLS Fund inception 03/09/1994
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks a high level of current income consistent with growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Month1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Dividend and Growth IA | | | 4.07% | | | | 2.91% | | | | 10.80% | | | | 7.60% | |
Dividend and Growth IB | | | 3.95% | | | | 2.64% | | | | 10.52% | | | | 7.33% | |
S&P 500 Index | | | 3.84% | | | | 3.99% | | | | 12.10% | | | | 7.42% | |
Russell 1000 Value Index | | | 6.30% | | | | 2.86% | | | | 11.35% | | | | 6.13% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.67% and 0.92%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Edward P. Bousa, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Donald J. Kilbride
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Matthew G. Baker
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Dividend and Growth HLS Fund returned 4.07% for the six-month period ended June 30, 2016, outperforming the Fund’s benchmark, the S&P 500 Index, which returned 3.84% for the same period. The Fund underperformed the Russell 1000 Value Index, its other benchmark, which returned 6.30% for the same period. The Fund also underperformed the 6.41% average return of the Lipper Equity Income Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four, implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised
market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. During the six-month period, six of the ten sectors within the S&P 500 Index posted positive returns, led by Telecommunication Services (+25%), Utilities (+23%), and Energy (+16%).
Security selection contributed positively to the Fund’s returns relative to the S&P 500 Index during the period. Strong selection within Healthcare, Consumer Discretionary, and Utilities was only partially offset by weaker selection within Financials, Information Technology, and Consumer Staples. Sector allocation, a result of the Fund’s bottom up stock selection process, also contributed positively to returns relative to the S&P 500 Index during the period. Overweights to the Utilities and Energy sectors and an underweight to the Information Technology sector offset the negative impact of an overweight to Financials and an underweight to the Consumer Staples sector relative to the S&P 500 Index.
The Fund’s top contributors to performance relative to the S&P 500 Index during the period were Verizon Communications
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
(Telecommunication Services), NextEra Energy (Utilities), and Edison International (Utilities). The Fund’s position in Verizon was the top relative contributor for the period. The stock rose during the period following the release of better-than-expected earnings results, supported by growth in wireless and Fios services. Shares of NextEra Energy, a U.S.-based clean Energy company, rose during the period on strong earnings that beat consensus expectations. Shares of Edison International, a U.S.-based utility company, rose during the period as investors flocked to utility equities, which are widely viewed as beneficiaries of low interest rates. Comcast (Consumer Discretionary) was among the top contributors to absolute performance.
The Fund’s top detractors from returns relative to the S&P 500 Index were Wells Fargo (Financials), a lack of exposure to AT&T (Telecommunication Services), and PNC Financial Services (Financials). Shares of Wells Fargo fell during the period as investors became increasingly concerned that interest rates will not move higher quickly enough to support near-term profitability for the bank. The Brexit referendum result reinforced these concerns; shares of companies with interest rate sensitivity sold off following the vote. Not owning benchmark constituent AT&T detracted from performance relative to the S&P 500 Index; the company’s stock posted a strong gain during the period on strong quarterly results and momentum from the company’s acquisition of DIRECTV. PNC Financial Services, a U.S.-based bank, saw its shares decline during the period. Investors remain concerned that interest rates will not move high enough to support growth, particularly following the approval of the Brexit vote. Bank of America (Financials) also detracted from absolute returns due to similar pressures as experienced by the broader set of financials equities.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
Late in the period, the Brexit referendum result and the ensuing market volatility led to a change in the Fund’s outlook. While we had been looking for a 1.5-2.0% Gross Domestic Product (GDP) growth rate in the U.S., we now expect closer to 1.0-1.5% GDP growth, and the possibility of a recession (though not likely in our view) has come back into view. We are more cautious, particularly on Financials because rate normalization is likely to take longer to materialize. We are unlikely to add further to the Fund’s Financials overweight until we have more clarity on the rate outlook. Because the Fed has been so transparent about the criteria for raising rates, we expect they will need all of the requisite data points to move forward on the path to fiscal tightening. The Fed’s decision though is highly dependent on global markets, and will now likely be driven more by developments
outside the U.S. than domestic trends. The negative interest rate environment and the high leverage levels of central banks globally are uncharted territory and have created something of a negative feedback loop.
The Fund’s thesis on Financials was that the stocks had highly attractive valuations combined with strong balance sheets and the potential for a decline in regulatory pressures. Based on these characteristics, we believed the group compared well to safety stocks at extended valuations. Because the banks had less credit exposure and high capital ratios, we believed the stocks may behave defensively. However, with negative interest rates, we feel that banks will be challenged to grow earnings. We remain bullish on major financial equities, based upon record low valuations. However, the lower for longer interest rate environment could delay the improvement that we expect.
We are now looking in other areas of the market for companies that we believe have solid cash flow, safe dividend yield, and reasonable valuations. Boeing and others in the defense industry are seen as cyclical businesses that have stable earnings and are attractively valued currently in our view. This is an example of our capital cycle framework and illustrates how we aim to add value by investing in companies in industries as they are waiting for a recovery to begin.
We anticipate ongoing volatility and expect the market may continue to be driven by macroeconomic drivers more than fundamentals for the near future as key questions about elections and monetary policy are resolved. In this volatile market context, we are focused on identifying companies that we feel have company-specific investment catalysts and mispriced individual securities, rather than investing based on broad themes. We remain disciplined in our application of our investment process.
At the end of the period, the Fund’s largest overweights relative to the S&P 500 Index were to the Financials, Energy, and Healthcare sectors, while the Fund’s largest underweights were to Information Technology and Consumer Discretionary.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions.
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 7.3 | % |
Consumer Staples | | | 7.6 | |
Energy | | | 10.0 | |
Financials | | | 21.9 | |
Health Care | | | 16.5 | |
Industrials | | | 10.0 | |
Information Technology | | | 13.7 | |
Materials | | | 3.3 | |
Telecommunication Services | | | 2.8 | |
Utilities | | | 5.2 | |
| | | | |
Total | | | 98.3 | % |
| | | | |
Short-Term Investments | | | 1.5 | % |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Global Growth HLS Fund inception 09/30/1998
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Global Growth IA | | | -0.49% | | | | 0.24% | | | | 9.85% | | | | 5.22% | |
Global Growth IB | | | -0.62% | | | | 0.00% | | | | 9.58% | | | | 4.95% | |
MSCI World Growth Index | | | 0.13% | | | | -1.51% | | | | 8.14% | | | | 6.04% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
MSCI World Growth Index is a broad-based unmanaged market capitalization-weighted total return index which measures the performance of growth securities in 23 developed-country global equity markets including the United States, Canada, Europe, Australia, New Zealand and the Far East.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.81% and 1.06%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Global Growth HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Matthew D. Hudson, CFA
Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
John Boselli, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Global Growth HLS Fund returned -0.49% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the MSCI World Growth Index, which returned 0.13% for the same period. The Fund outperformed the -0.85% average return of the Lipper Global Large-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
Global equities finished the first half of 2016 flat, as the rally in global equities stalled. 2016 got off to a volatile start as Chinese equities plunged in early January, sparking a global flight to quality trade. Along with ongoing worries about a hard landing in China, fears that yuan weakness could unleash a wave of global deflationary pressure resurfaced. Once again, extended monetary policy accommodation by major central banks helped support risk assets. First, the Bank of Japan followed the lead of central banks in Europe by cutting its benchmark rate to negative territory in January. Next, the People’s Bank of China lowered the reserve-requirement ratio, by 0.50% in February in an effort to boost growth. Finally, while European Central Bank (ECB) President Mario Draghi had previously indicated that more stimulus was coming, he took more action at the March meeting than was anticipated. In addition to cutting the deposit rate by 0.10%, the ECB increased its monthly asset purchase program to €80 billion and unexpectedly cut the main refinancing and marginal lending rates by 0.05% to 0% and 0.25%, respectively. Emerging market equities participated strongly in a March market rebound. Brazilian equities rallied sharply amid political developments that increased the likelihood of government policy change ahead of the 2018 elections.
The volatility in the market continued into the second quarter of 2016. After a lengthy and at times acrimonious campaign, the British electorate voted to leave the European Union (E.U.). Following a long period of closer European integration, this historic event (known as “Brexit”) marks a profound change in how the United Kingdom (U.K.) will interact with the rest of Europe. While the uncertainty about the outcome of the vote is now behind us, we are entering a new period of uncertainty regarding the implementation of the outcome, which may heighten near-term volatility. After the vote, global equities sharply sold off before recovering most of their losses in the final
three days of the second quarter. Overshadowed by the Brexit vote were a promising European economic backdrop and the ECB’s reaffirmation of its policy stance to leave rates unchanged or lower. In the U.S., solid economic data helped investors shrug off the U.S. Federal Reserve’s (Fed) statements suggesting plans to further raise rates during 2016 in May. Market participants were also encouraged by improving signs from China’s economic data releases and Beijing’s increased emphasis on currency stability.
During the six-month period, U.S. equities outperformed non-U.S. equities, as measured by the S&P 500 Index and MSCI All Country World ex USA Index, and emerging market equities outperformed their developed market counterparts, as measured by the MSCI Emerging Markets Index and MSCI World Index. Within the MSCI World Growth Index, six of ten sectors posted positive returns during the period. Energy (+25%), Utilities (+8%), and Consumer Staples (+7%) gained the most, while the Healthcare (-5%), Financials (-4%), and Consumer Discretionary (-3%) sectors lagged the most on a relative basis.
The Fund’s underperformance versus the MSCI World Growth Index, was driven by sector allocation, a result of bottom-up security selection, which detracted from relative results for all but one sector. Underweights to Industrials and Materials, and an overweight to Information Technology detracted the most from relative performance. This was partially offset by positive security selection, which contributed positively to benchmark-relative results. Selection within Information Technology, Healthcare, and Consumer Staples was especially strong, more than offsetting weaker selection within Consumer Discretionary and Financials.
The top detractors from the Fund’s performance relative to the MSCI World Growth Index were Allergan (Healthcare), Amazon (Consumer Discretionary), and Bank of Ireland (Financials). Allergan, a U.S.-based high quality specialty pharmaceutical company, underperformed; after having announced a merger with Pfizer in the fourth quarter, the U.S. Treasury’s recent changes to tax inversion rules caused Pfizer to walk away from the deal, which led to a slump in Allergan’s stock price. Shares of Amazon, a U.S.-based global e-commerce company, declined due to fourth quarter 2015 revenue being reported below consensus estimates. The stock price of Bank of Ireland, an Ireland-based banking and financial services company,
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| Hartford Global Growth HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
fell over the period. Despite Ireland growing strongly and the bank executing well there, the company has operations in the U.K. that are now facing uncertainties amid the Brexit referendum. Top absolute detractors included Unione Di Banche (Financials).
Top contributors to performance relative to the MSCI World Growth Index included Apple (Information Technology), Zillow (Information Technology), and Bristol-Myers Squibb (Healthcare). Shares of Apple, a U.S.-based designer and manufacturer of consumer electronics, software, and computers, fell during the period due to demand for iPhones being down in the U.S. and Europe. Not holding the benchmark constituent contributed positively to benchmark-relative returns over the period. Shares of Zillow, a U.S.-based online real estate listing company, rose as the company is reaping the benefits of its acquisition of Trulia and its accelerating revenue. Shares of U.S.-based pharmaceutical company Bristol-Myers Squibb rose over the period. The company released strong first quarter earnings and raised guidance for the remainder of the year. Meaningfully higher-than-expected sales of their innovative products, Opdivo and Eliquis, drove top-line growth. British American Tobacco (Consumer Staples) was a top absolute contributor during the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
Looking ahead, we believe that we are ready for what could prove to be a volatile balance of the year. Perhaps not fully understanding the implications of their actions, U.K. voters have created further uncertainty in an already unstable world. The U.K.’s exit from the European Union will be measured in years, not months. Despite this political drama taking place in Europe, the effects will likely be felt globally. Japan also appears limited in what it can do to inflate its declining economy. The U.S. Fed will likely find it more difficult to raise rates, if they can at all.
We believe that global economic growth will remain lower for longer; however we are seeing some signs of improvement off the bottom from macroeconomic indicators that we monitor supported by stimulatory policies from central banks around the world. We are closely monitoring the Fund’s holdings and will make adjustments as needed.
At the end of the period, the Fund’s largest sector overweights were to the Information Technology, Financials, and Consumer Discretionary sectors while we were most underweight Industrials, Consumer Staples, and Materials, relative to the MSCI World Growth Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. These risks are generally greater for investments in emerging markets. Mid-cap securities can have greater risk and volatility than large-cap securities. Growth investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Diversification by Country
as of June 30, 2016
| | | | |
| Country | | Percentage of
Net Assets | |
Australia | | | 0.5 | % |
Belgium | | | 1.5 | |
British Virgin Islands | | | 0.0 | |
China | | | 2.9 | |
Denmark | | | 2.3 | |
France | | | 0.5 | |
Germany | | | 1.6 | |
Hong Kong | | | 1.8 | |
Ireland | | | 1.2 | |
Israel | | | 1.0 | |
Italy | | | 0.7 | |
Japan | | | 5.6 | |
Netherlands | | | 0.6 | |
Portugal | | | 0.7 | |
South Korea | | | 0.6 | |
Spain | | | 0.5 | |
Sweden | | | 0.6 | |
Switzerland | | | 2.8 | |
Taiwan | | | 1.3 | |
United Kingdom | | | 6.6 | |
United States | | | 65.2 | |
Short-Term Investments | | | 1.2 | |
Other Assets & Liabilities | | | 0.3 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Growth Opportunities HLS Fund inception 03/24/1987
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Growth Opportunities IA | | | -1.72% | | | | -0.80% | | | | 13.13% | | | | 8.83% | |
Growth Opportunities IB | | | -1.87% | | | | -1.07% | | | | 12.84% | | | | 8.56% | |
Growth Opportunities IC | | | -2.00% | | | | -1.32% | | | | 12.57% | | | | 8.29% | |
Russell 3000 Growth Index | | | 1.14% | | | | 1.88% | | | | 12.04% | | | | 8.65% | |
Russell 1000 Growth Index | | | 1.36% | | | | 3.02% | | | | 12.35% | | | | 8.78% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Class IC shares commenced operations on April 30, 2014. Class IC shares performance prior to that date reflects Class IA shares performance adjusted to reflect the 12b-1 fee of 0.25% and the administrative services fee of 0.25% applicable to Class IC shares. The performance after such date reflects actual Class IC shares performance.
Russell 3000 Growth Index is an unmanaged index that measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.65%, 0.90% and 1.16%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
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| Hartford Growth Opportunities HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Michael T. Carmen, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Mario E. Abularach, CFA
Senior Managing Director and Equity Research Analyst
Wellington Management Company LLP
Stephen Mortimer
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Growth Opportunities HLS Fund returned -1.72% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmarks, the Russell 3000 Growth Index and the Russell 1000 Growth Index, which returned 1.14% and 1.36%, respectively, for the same period. The Fund outperformed the -2.23% average return of the Lipper Multi-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the period as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union
(E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. Eight out of ten sectors in the Russell 3000 Growth Index rose during the period. Defensive sectors such as, Telecommunication Services (+23%) and Utilities (+15%) gained the most, while the more innovative and higher growth Healthcare (-6%) and Information Technology (-2%), were the worst performers.
Sector allocation, a result of the bottom-up stock selection process, was the primary detractor from performance relative to the Russell 3000 Growth Index over the period, due to underweights to Consumer Staples and Telecommunication Services and an overweight to Healthcare, which was only partially offset by the positive impact from an overweight to Energy. Security selection also detracted from relative performance during the period. Security selection in the Financials, Consumer Discretionary, and Consumer Staples sectors were the largest detractors. Stock selection in Healthcare, Energy, and Information Technology was positive, but not enough to offset negative results elsewhere in the Fund.
The top detractors from performance relative to the Russell 3000 Growth Index during the period included Tableau Software (Information Technology), Bank of America (Financials), and Platform
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| Hartford Growth Opportunities HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Specialty (Materials). Tableau Software, a U.S.-based developer of data visualization applications, saw its stock price decline after results disappointed. Further analysis revealed that Tableau’s recent struggles are likely to be an early warning sign of developing competitive challenges. The emerging challenges stem from software incumbents such as Microsoft, who have grown interested in Tableau’s core market and the profitability of the industry. Shares of Bank of America, a U.S.-based global financial services company, fell during the period due to pressure amid fears of a “lower-for-longer” rate environment. Slowing global growth and concerns about deterioration in asset quality from the oil rout also pressure shares. Shares of Platform Specialty, a U.S.-based chemical company, fell due to earnings weakness attributable to the slowdown in global growth and the rising cost of capital, which had an outsized impact on this acquisition driven growth company. Top absolute detractors during the period also included Allergan (Healthcare).
The top contributors to performance relative to the Russell 3000 Growth Index during the period were Zillow (Information Technology), Mobileye (Information Technology), and Newfield Exploration (Energy). Shares of Zillow, a U.S.-based online real estate listing company, rose as the company is reaping the benefits of its acquisition of Trulia and its accelerating revenue. Shares of Mobileye, an Israel-based supplier of software solutions for ADAS (Advanced Driver Assistance Systems) applications, rose as the company reported positive results for the fourth quarter in January/February including a key partnership with Volkswagen, their first with the German automobile manufacturer. Shares of Newfield Exploration, a U.S.-based oil and gas exploration and production company, rose as the company increased its second quarter and full year 2016 production guidance, driven by strong production in the Anadarko Basin. Facebook (Information Technology) and Priceline (Consumer Discretionary) were among the top absolute contributors.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We expect the market volatility experienced during the first half of the year to persist into the third quarter of 2016. Concerns over the implications of Brexit, negative interest rates, muted global growth and the uncertainty surrounding the U.S. elections, have all contributed to the turbulent macro environment. We believe a recession in the U.K. is likely to occur, but we do not expect this to have significant consequences for the U.S. or global economy. Despite this uncertainty, we continue to seek to identify companies that fit the Fund’s investment criteria by employing our bottom-up
investment process. During the period, we added several names in the Consumer Discretionary sector, where we have a differentiated view of companies’ earnings potential. We are seeing improvement in consumer spending relative to the first half of the year, which we believe may help these companies achieve our anticipated acceleration.
At the end of the period, the Fund was most overweight the Information Technology and Energy sectors and most underweight the Consumer Staples and Materials sectors relative to the Russell 3000 Growth Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. Mid-cap securities can have greater risk and volatility than large-cap securities. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs. Growth investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 18.6 | % |
Consumer Staples | | | 4.3 | |
Energy | | | 4.1 | |
Financials | | | 7.3 | |
Health Care | | | 20.2 | |
Industrials | | | 10.6 | |
Information Technology | | | 33.1 | |
Materials | | | 1.0 | |
| | | | |
Total | | | 99.2 | % |
| | | | |
Fixed Income Securities | | | | |
Corporate Bonds | | | 0.1 | % |
Short-Term Investments | | | 0.8 | |
Other Assets & Liabilities | | | (0.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Healthcare HLS Fund inception 05/01/2000
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Healthcare IA | | | -6.43% | | �� | | -8.20% | | | | 17.77% | | | | 11.85% | |
Healthcare IB | | | -6.57% | | | | -8.42% | | | | 17.47% | | | | 11.57% | |
S&P Composite 1500 Health Care Index | | | 0.58% | | | | -1.96% | | | | 17.32% | | | | 11.40% | |
S&P 500 Index | | | 3.84% | | | | 3.99% | | | | 12.10% | | | | 7.42% | |
Spliced Index | | | -1.70% | | | | -6.32% | | | | 17.11% | | | | 11.58% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Effective April 1, 2016, the Fund changed its benchmark to the S&P Composite 1500 Health Care Index due to S&P announcing that the S&P North American Health Care Sector Index would be discontinued. Effective May 2, 2016, the S&P North American Health Care Sector Index was discontinued.
S&P Composite 1500 Health Care Index is an unmanaged capitalization-weighted index comprised of those companies included in the S&P Composite 1500 that are classified as members of the Global Industry Classification Standard (GICS®) health care sector.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
S&P North American Health Care Sector Index was a modified capitalization-weighted index based on United States headquartered health care companies.
Spliced Index is calculated by Hartford Funds Management Company, LLC and returns from April 1, 2016 to June 30, 2016 represent the S&P Composite 1500 Health Care Index and returns prior to April 1, 2016 represent the S&P North American Health Care Sector Index.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.87% and 1.12%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
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| Hartford Healthcare HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Jean M. Hynes, CFA
Senior Managing Director and Global Industry Analyst
Wellington Management Company LLP
Ann C. Gallo
Senior Managing Director and Global Industry Analyst
Wellington Management Company LLP
Kirk J. Mayer, CFA
Senior Managing Director and Global Industry Analyst
Wellington Management Company LLP
Robert L. Deresiewicz
Senior Managing Director and Global Industry Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Healthcare HLS Fund returned -6.43% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark*, which returned -1.70% for the same period. The Fund also underperformed the Fund’s other benchmark, the S&P 500 Index, which returned 3.84% for the same period. The Fund outperformed the -7.54% average return of the Lipper Global Health and Biotechnology peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?*
Health care equities (+0%) underperformed both the broader U.S. equity market (+4%) and the global equity market (+2%) during the period, as measured by the S&P 500 Healthcare, S&P 500, and the MSCI World Indices, respectively. Within the Fund’s benchmark, small-cap biopharma returned (-25%), mid-cap biopharma returned (-42%), and large-cap biopharma returned (-4%), while medical technology returned (+10%) and health services returned (+2%).
The Fund underperformed its benchmark over the period due primarily to negative sector allocation. An overweight to mid- and small-cap biopharma detracted from relative results during the period, more than offsetting an overweight to medical technology and an underweight to large-cap biopharma which contributed positively to benchmark- relative performance. Security selection also modestly detracted from benchmark-relative performance. Security selection was weakest in large-cap biopharma, medical technology, and small-cap biopharma. This was partially offset by stronger selection in mid-cap biopharma and health care services over the period.
Johnson & Johnson (biopharma), Alkermes (biopharma), and Pfizer (biopharma) were the top detractors from benchmark-relative performance. A significant underweight to Johnson & Johnson, a U.S. based medical device and pharmaceutical manufacturer, detracted from benchmark-relative returns during the period as the stock held up well given the defensive nature of its broadly diversified business. Shares of Alkermes, a U.S. biopharmaceutical company, fell after the company announced discouraging results from one of its trials early in the year. Shares of Pfizer, a U.S. pharmaceutical company, rose as the company announced a deal to buy Anacor Pharmaceuticals. Not owning this benchmark constituent detracted from benchmark-relative performance. Allergan (biopharma) was a top detractor from absolute performance during the period.
Valeant Pharmaceuticals (biopharma), Alexion (biopharma), and Gilead Sciences (biopharma) contributed positively to benchmark-relative results over the period. Shares of Valeant Pharmaceuticals, a global specialty drugs manufacturer, declined significantly during the period, as lower earnings, financial forecasts, and concerns over potential bond defaults led to a sharp sell-off. Not owning this benchmark constituent contributed positively to benchmark-relative performance. Shares of Alexion, a U.S.-based biopharmaceutical company, fell as disappointing data suggests that the company’s lead product, Soliris, won’t be expanding its list of approved indications to refractory generalized myasthenia gravis (gMG). Not owning this benchmark constituent contributed positively to benchmark-relative performance over the period. Shares of Gilead Sciences, a U.S.-based research-focused biopharmaceutical firm, fell as future growth catalysts are difficult to handicap as the scientific challenges surrounding the firm’s pipeline initiatives remain formidable.
| * | Effective April 1, 2016, the Fund changed its benchmark to the S&P Composite 1500 Health Care Index due to S&P announcing that the S&P North American Health Care Sector Index would be discontinued. Benchmark returns in this section represent the S&P North American Health Care Index from January 1, 2016 through March 31, 2016 and the S&P Composite 1500 Health Care Index from April 1, 2016 to June 30, 2016. The Fund also underperformed the S&P Composite 1500 Health Care Index, which returned 0.58%, during the six-month period ended June 30, 2016. |
|
| Hartford Healthcare HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Eliminating the Fund’s position during the period contributed positively to benchmark-relative performance. UnitedHealth Group (Healthcare) was a top contributor to absolute performance during the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
After a disappointing start to the year, portfolio results during the second quarter headed in the right direction. We are not satisfied, of course, and work remains in order to return performance to positive territory for the year. With the upcoming U.S. elections and the transition to a new administration next year, we expect continued near- and mid-term uncertainty around the future of health care reform and drug pricing policies. We believe that ObamaCare is here to stay, however, and we do not expect in the foreseeable future to see fundamental changes to the way drugs are priced and paid for in the U.S. Over the long term, the tailwinds of innovation, an aging population, and the globalization of demand for cutting-edge Western-style healthcare should continue to drive growth of the Healthcare sector, in our opinion.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk
and/or security selections that may underperform the market or relevant benchmarks. Risks of focusing investments on the health-care sector include regulatory and legal developments, patent considerations, intense competitive pressures, rapid technological changes, potential product obsolescence, and liquidity risk. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. These risks are generally greater for investments in emerging markets. Small- and mid-cap securities can have greater risk and volatility than large-cap securities.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of Net Assets | |
Equity Securities | | | | |
Consumer Staples | | | 0.4 | % |
Health Care | | | 97.2 | |
Information Technology | | | 0.3 | |
| | | | |
Total | | | 97.9 | % |
| | | | |
Short-Term Investments | | | 2.1 | % |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford High Yield HLS Fund inception 09/30/1998
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks to provide high current income, and long-term total return. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
High Yield IA | | | 7.02% | | | | 0.05% | | | | 4.88% | | | | 6.87% | |
High Yield IB | | | 6.86% | | | | -0.29% | | | | 4.61% | | | | 6.60% | |
Barclays U.S. Corporate High Yield Bond Index | | | 9.06% | | | | 1.62% | | | | 5.84% | | | | 7.56% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.
Barclays U.S. Corporate High Yield Bond Index is an unmanaged broad-based market-value-weighted index that tracks the total return performance of non-investment grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.76% and 1.01%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford High Yield HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Christopher A. Jones, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
David Marshak
Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford High Yield HLS Fund returned 7.02% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Barclays U.S. Corporate High Yield Bond Index, which returned 9.06% for the same period. The Fund outperformed the 6.53% average return of the Lipper High Yield Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
Over the first half of 2016, global fixed income markets were influenced by global economic growth concerns, central bank monetary policies, oil prices, and the United Kingdom’s (U.K.’s) vote to leave the European Union (E.U.). During the first quarter of 2016, falling oil prices, concerns over slowing growth in China, and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their safe-haven status. Following the lead of European central banks, the Bank of Japan (BOJ) introduced negative interest rates for the first time as the volatility and instability in financial markets threatened to tip Japan back into deflation. Markets reversed course in mid-February as the major central banks adopted an overall cautious stance to further rate increases in an effort to ease market risk. The People’s Bank of China resumed its easing cycle with a surprise cut in the bank’s reserve-requirement ratio and the European Central Bank (ECB) announced significant easing measures, including lowering interest rates, expanding asset purchases to include investment-grade corporate bonds, and launching new targeted long-term refinancing operations to foster bank lending. The Federal Reserve (Fed) appeared willing to hold off on further rate increases as it indicated an even slower path to raising rates; The Fed refrained from raising interest rates at their March meeting and pared back their forecasts for interest-rate increases in 2016, citing global uncertainties.
A rebound in crude oil prices and signs of near-term stabilization in China further supported global financial markets during the start of the second quarter. However, investors turned more cautious in June as the outcome of the referendum on U.K.’s ending its E.U. membership (known as “Brexit”) moved into sharper focus. The Federal Open Market Committee (FOMC) held rates steady during the quarter, while upholding its baseline view for a gradual tightening in monetary policy. Markets started to come around to the idea of a
possible rate increase in June or July after a flurry of statements suggesting plans to further raise rates during 2016 in May. However, a weak U.S. payrolls report in early June and growing uncertainty over Brexit started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting amid lingering uncertainty about the strength of the global economy as well as a reluctance to increase rates ahead of the E.U. referendum vote in the U.K. The U.K.’s momentous vote to leave to the E.U. led to a spike in global financial market volatility and a flight to safety at the end of the period, with U.K. and European equity and credit markets bearing the brunt of the sell-off. Credit spreads initially widened in the wake of the U.K.’s vote to leave the E.U. but then rallied strongly into the end of the six-month period on the prospect of further monetary policy easing globally.
Developed markets’ government bond prices gained over the six-month period as global uncertainties kept central banks in easing mode, Japan joined the growing list of countries with negative yields, and Brexit caused a significant decline in interest rates. In the U.S., the yield curve dropped and flattened; yields on intermediate- and long-term bonds declined more sharply than those on short-term bonds. The U.S. dollar ended the first half of the year with mixed performance against its major counterparts. The Japanese yen was the major gainer among G10 currencies, as market participants questioned the efficacy of the BOJ’s negative rates policy and the effects of the Brexit vote. The British pound and the Euro depreciated against the U.S. dollar.
Absolute returns in the major fixed income credit risk sectors were positive, aided by the decline in government bond yields. On an excess return basis, most credit risk sectors posted positive returns over the full six-month period, including U.S. high yield, emerging market debt, and investment grade corporates, as spreads tightened over the period. However, this performance masked considerable volatility in credit risk sector within the period, including a drawdown in many credit risk sectors in the first part of 2016 and in the aftermath of Brexit.
The Barclays U.S. Corporate High Yield Bond Index returned 9.06% for the six-months ended June 30, 2016 and outperformed duration equivalent treasuries by 4.77%. The Option-Adjusted Spread of the index was 5.94% on June 30, 2016, a decrease of 0.66% from December 31, 2015.
|
| Hartford High Yield HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
The Fund underperformed its benchmark, the Barclays U.S. Corporate High Yield Index, primarily as a result of sector allocation, due largely to underweight allocations to Metals and Mining and Energy as commodity prices stabilized and those sectors rallied during the period. On the other hand, having no exposure to the Transportation sector contributed positively to relative returns over the period, as the sector lagged the overall index.
In aggregate, security selection had a negligible impact on performance relative to the Barclays U.S. Corporate High Yield Bond Index over the period. Security selection was positive in the paper and cable satellite sectors. Within the paper sector, we focused on issuers that we believed could benefit from continued support from lumber prices in response to capacity curtailments and steady North America housing demand. Within cable satellite, we favored issuers that are more defensive in nature with historically stable cash flows, high margins, and strong balance sheets. However, this positive selection was partially offset by our credit selection within the Financials sector, as exposure to a number of European banks detracted from relative returns due to uncertainty over the impact of the U.K.’s exit from the E.U. While European banks may have earnings headwinds from slower growth and lower rates, we believe they will not have capital problems. Additionally, selection within media entertainment and wireless detracted from relative results over the period.
The Fund’s underweight to CCC- and below rated bonds, which outperformed their higher-rated counterparts, detracted from relative performance during the period.
The Fund’s credit default swap positions on the CDX index, which are used to tactically adjust the Fund’s exposure to the market, had a modestly positive impact on relative performance during the period.
What is the outlook?
While we remain selective in our approach to investing in energy issuers, we continue to focus the Fund’s exposure on higher quality Exploration and Production (E&P) credits and remain cautious on oil services and refining issuers. In the Metals and Mining sector, we remain underweight as we continue to be concerned about a slowdown in global metals demand driven by emerging markets as well as industry oversupply. We are taking a bottom-up, issuer-specific approach to investing in this small sector, which is driving the Fund’s lack of exposure to transportation issuers.
We remain generally constructive on high yield based on what we consider to be attractive valuations and stable company fundamentals overall, although there is more uncertainty surrounding the global macroeconomic landscape, particularly following the U.K. referendum to leave the European Union. We are most positive on the U.S. economy, and as a result are emphasizing issuers that we believe will benefit from a strong U.S. consumer and sectors that are less cyclical in nature (for example, Media Cable and Healthcare) as
we believe that they offer an attractive risk/reward profile. We expect that default rates will peak in 2016 in the 5-6% range, with the defaults mainly concentrated in the commodity-sensitive sectors (Energy and Metals and Mining). Yields in these sectors are higher on average than the broad market and we have been finding what we view as opportunities, but are being selective in our approach. While we continue to monitor potential impacts to global growth due to the increased macroeconomic uncertainty and potential trends toward more protectionist policies, we believe that the high yield market will continue to be supported by strong investor demand. We expect that the seemingly insatiable global demand for yield will continue as a result of the low absolute level of interest rates around much of the globe. We believe this “search for yield” is likely to provide a tailwind for high yield markets over the balance of 2016.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Fixed Income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened due to the historically low interest rate environment. Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. Derivatives may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency, leverage, liquidity, index, pricing, and counterparty risk. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Diversification by Security Type
as of June 30, 2016
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 0.5 | % |
| | | | |
Total | | | 0.5 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 0.0 | % |
Convertible Bonds | | | 0.6 | |
Corporate Bonds | | | 92.0 | |
Senior Floating Rate Interests | | | 1.6 | |
| | | | |
Total | | | 94.2 | % |
| | | | |
Short-Term Investments | | | 2.3 | % |
Other Assets & Liabilities | | | 3.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford International Opportunities HLS Fund inception 07/02/1990
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
International Opportunities IA | | | -2.89% | | | | -7.48% | | | | 2.99% | | | | 4.35% | |
International Opportunities IB | | | -3.06% | | | | -7.73% | | | | 2.72% | | | | 4.08% | |
MSCI All Country World ex USA Index | | | -0.67% | | | | -9.80% | | | | 0.56% | | | | 2.33% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
MSCI All Country World ex USA Index is a broad-based, unmanaged, market capitalization weighted, total return index that measures the performance of both developed and emerging stock markets, excluding the U.S. The index is calculated to exclude companies and share classes which cannot be freely purchased by foreigners.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.74% and 0.99%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford International Opportunities HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Nicolas M. Choumenkovitch
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Tara C. Stilwell, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA of Hartford International Opportunities HLS Fund returned -2.89% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the MSCI All Country World ex USA Index, which returned-0.67% for the same period. The Fund also underperformed the -2.36% average return of the Lipper International Multi-Cap Growth Fund peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
International equities finished the first half of the year down, as measured by the MSCI All Country World ex USA Index. 2016 got off to a volatile start as Chinese equities plunged in early January, sparking a global flight to quality trade. Along with ongoing worries about a hard landing in China, fears that yuan weakness could unleash a wave of global deflationary pressure resurfaced. Once again, extended monetary policy accommodation by major central banks helped support risk assets. First, the Bank of Japan followed the lead of central banks in Europe by cutting its benchmark rate to negative territory in January. Next, the People’s Bank of China lowered the reserve-requirement ratio, by 0.50% in February in an effort to boost growth. Finally, while European Central Bank (ECB) President Mario Draghi had previously indicated that more stimulus was coming, he took more action at the March meeting than was anticipated. In addition to cutting the deposit rate by 0.10%, the ECB increased its monthly asset purchase program to €80 billion and unexpectedly cut the main refinancing and marginal lending rates by 0.05% to 0% and 0.25%, respectively. Emerging market equities participated strongly in the March market rebound. Brazilian equities rallied sharply amid political developments that increased the likelihood of government policy change ahead of the 2018 elections.
The volatility in the market continued into the second quarter of 2016. After a lengthy and at times acrimonious campaign, the British electorate voted to leave the European Union (E.U.). Following a long period of closer European integration, this historic event, known as “Brexit,” marks a profound change in how the United Kingdom (U.K.) will interact with the rest of Europe. While the uncertainty about the outcome of the vote is now behind us, we are entering a new period of uncertainty regarding the implementation of the outcome, which may heighten near-term market volatility. After the vote, global equities sharply sold off before recovering most of its losses in the
final three days of the second quarter. Overshadowed by the Brexit vote were a promising European economic backdrop and the ECB’s reaffirmation of its policy stance to leave rates unchanged or lower. In the U.S., solid economic data helped investors shrug off the U.S. Federal Reserve’s (Fed) statements suggesting plans to further raise rates during 2016 in May. Market participants were also encouraged by improving signs from China’s economic data releases and Beijing’s increased emphasis on currency stability.
During the six-month period, U.S. equities outperformed non-U.S. equities, as measured by the S&P 500 Index and MSCI All Country World ex USA Index, and emerging market equities outperformed their developed market counterparts, as measured by the MSCI Emerging Markets Index and MSCI World Index.
Seven of the ten sectors in the MSCI All Country World ex USA Index posted positive returns during the period; Energy (+19%), Materials (+11%), and Consumer Staples (+7%) rose the most, while Consumer Discretionary (-9%), Financials (-9%), and Healthcare (-3%) fell.
The Fund underperformed the MSCI All Country World ex USA Index due predominantly to security selection, while sector allocations also detracted from performance. Security selection was weakest within the Consumer Discretionary, Industrials, and Materials sectors. This was partially offset by stronger selection within the Financials and Healthcare sectors. Sector allocation, a result of our bottom-up security selection process, also detracted from benchmark-relative performance during the period. An underweight to the Materials sector and an overweight to the Healthcare sector detracted from benchmark relative returns, which was partially offset by an underweight to Financials, which contributed positively. On a regional basis, the Fund’s overweight to and security selection in Europe detracted the most; this was slightly offset by positive performance from security selection in Japan.
Top detractors from performance relative to the MSCI All Country World ex USA Index during the period included Sky (Consumer Discretionary), Luxottica Group (Consumer Discretionary), and International Consolidated Air (Industrials). Sky, a U.K.-based pay TV provider, saw its stock price fall late in the period as the result of the U.K. referendum put significant downward pressure on the British
|
| Hartford International Opportunities HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Pound. Sky shares were also affected by lower net subscription additions and lower profitability in Germany and Italy than were anticipated. The stock price of Luxottica Group, an Italian-based eyewear maker and retailer, fell as it reported lower earnings than what the market expected and its co-CEO stepped down in February. Shares of International Consolidated Air, a U.K.-based airline, also fell as a result of Brexit; the referendum results have increased levels of economic uncertainty, which could put additional pressure on the company’s business. China Life (Financials) and BNP Paribas (Financials) were top absolute detractors during the period.
The largest absolute and relative contributors to returns included Daito Trust (Financials), TransCanada (Energy), and Sberbank (Financials). Shares of Daito Trust, a Japanese real estate company, rose as their business continued to enjoy favorable market conditions as demand for low-cost rental housing remains fairly strong and the company has actively returned money to shareholders in the form of higher dividends and share buybacks. TransCanada, a Canadian energy infrastructure company, reported first quarter results in April which beat market consensus estimates for earnings and cash flow, sending the stock price of the company higher. Sberbank, a Russian commercial bank and lending institution, saw its stock price rise as stabilizing oil prices benefited the bank and the company issued an outlook for 2016 that exceeded market expectations.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
Equity markets globally have continued with bouts of volatility this year, and the second quarter of 2016 was again a continuation of that trend that culminated with Brexit, one of the largest risk-events of the year. While we are disappointed in relative performance so far this year, it has been a market environment where uncertainty has continued to drive demand for yield and stable earnings growth and away from volatility, and we’ve seen equities with these characteristics be large drivers of market performance so far in 2016. We’ve also observed that some of our sustainable returns on capital companies have underperformed more than we would have expected over this period of time given certain idiosyncratic drivers. We continue to view many of these companies as key holdings for the portfolio and expect them to rebound over time as the market eventually recognizes the sustainability of their returns are being underappreciated.
The results of the U.K. referendum were certainly surprising; however, we were not positioned either way for it as our approach is not to position the portfolio for binary events. The result does introduce some longer-term uncertainties which include the potential for additional referendums in Europe which could continue to call the sustainability of the E.U. into question. It is also concerning that the
result was a move away from globalization, something that we have seen increasingly more discussion around. We remain of the view that global growth will continue to be low, but central banks are likely to continue to respond with additional accommodative measures to help support growth around the world, especially considering the most recent external shock in Europe. We believe that there continues to be a multitude of events on the political calendar for 2016 that will likely keep volatility higher than average given the general averseness to uncertainty this year, but we will seek to take advantage of that volatility where appropriate to buy what we believe to be attractive, mispriced assets that fit our process and philosophy.
At the end of the period, relative to the MSCI All Country World ex USA Index, the Fund was most overweight Energy, Consumer Staples, and Healthcare, and most underweight Financials, Utilities, and Telecommunication Services. On a regional basis, the Fund ended the period with an overweight to Europe, including the U.K. We ended the period underweight Emerging Markets and Asia, including Japan.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. These risks are generally greater for investments in emerging markets. Mid-cap securities can have greater risk and volatility than large-cap securities. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Currency Concentration of Securities
as of June 30, 2016
| | | | |
| Description | | Percentage of Net Assets | |
Australian Dollar | | | 0.2 | % |
Brazilian Real | | | 0.4 | |
British Pound | | | 18.8 | |
Canadian Dollar | | | 6.9 | |
Danish Krone | | | 0.2 | |
Euro | | | 34.4 | |
Hong Kong Dollar | | | 2.8 | |
Indian Rupee | | | 2.4 | |
Japanese Yen | | | 10.4 | |
South Korean Won | | | 1.6 | |
Swedish Krona | | | 1.0 | |
Swiss Franc | | | 6.6 | |
Taiwanese Dollar | | | 3.1 | |
United States Dollar | | | 11.2 | |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
|
| Hartford International Opportunities HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 11.7 | % |
Consumer Staples | | | 13.9 | |
Energy | | | 9.9 | |
Financials | | | 18.3 | |
Health Care | | | 10.8 | |
Industrials | | | 11.6 | |
Information Technology | | | 10.1 | |
Materials | | | 6.1 | |
Telecommunication Services | | | 3.1 | |
Utilities | | | 1.4 | |
| | | | |
Total | | | 96.9 | % |
| | | | |
Short-Term Investments | | | 3.1 | % |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford MidCap HLS Fund inception 07/14/1997
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
MidCap IA | | | 2.94% | | | | -0.97% | | | | 10.87% | | | | 8.86% | |
MidCap IB | | | 2.81% | | | | -1.21% | | | | 10.58% | | | | 8.58% | |
S&P MidCap 400 Index | | | 7.93% | | | | 1.33% | | | | 10.55% | | | | 8.55% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
S&P MidCap 400 Index is an unmanaged index of common stocks of companies chosen by S&P designed to represent price movements in the mid-cap U.S. equity market.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.70% and 0.95%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Philip W. Ruedi, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Mark A. Whitaker, CFA
Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap HLS Fund returned 2.94% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the S&P MidCap 400 Index, which returned 7.93% for the same period. The Fund outperformed the 0.11% average return of the Lipper Mid-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and
uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. Within the S&P MidCap 400 Index, all ten sectors posted positive returns during the period. The Utilities (+27%), Materials (+22%), and Telecommunication Services (+16%) sectors posted the highest returns while the Consumer Discretionary (+2%), Information Technology (+3%), and Healthcare (+5%) sectors lagged the most on a relative basis.
The Fund’s underperformance relative to the S&P MidCap 400 Index during the period was driven primarily by weak security selection. Security selection in the Healthcare, Consumer Discretionary, and Financials sectors detracted the most, which more than offset stronger selection in Energy and Information Technology. Sector allocation, a result of the bottom-up security selection process, also detracted from relative returns over the period. Underweights to Utilities and Materials detracted from relative returns, which more than offset positive performance from underweights to Consumer Discretionary and Financials.
Top detractors from relative performance during the period were Alkermes (Healthcare), Robert Half (Consumer Discretionary), and TripAdvisor (Consumer Discretionary). The stock of Alkermes, a U.S. biopharmaceutical company, fell after the company announced discouraging results from one of its trials early in the year. Shares of Robert Half, a U.S.-based temporary staffing company, fell after an analyst downgrade triggered a sell-off, even though the company posted results in the second quarter that were in-line with market expectations. TripAdvisor, a U.S. online travel company, suffered from a number of analyst downgrades in early 2016 and reported a decline in net profits in May, putting downward pressure on the share price. SunPower (Information Technology) was also a top absolute detractor over the period.
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Top contributors to relative and absolute performance during the period were Zillow (Information Technology), Vantiv (Information Technology), and UGI Group (Utilities). Shares of Zillow, a U.S.-based online real estate listing company, rose as the company is reaping the benefits of its acquisition of Trulia (Information Technology) and its accelerating revenue. Shares of Vantiv, a U.S.-based merchant acquirer that connects businesses to credit card companies, rose over the period as they continued to benefit from the secular trend of moving away from payment by cash and check to electronic transactions and as the company has exhibited robust revenue and earnings growth. The stock price of UGI Group, a U.S. utilities company, rose over the period, despite the warmer weather, as investors were generally pleased with the resiliency of the company’s business mix, which should help sustain profit margins moving forward.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We believe uncertainty about the implications of Brexit, upcoming elections, a rising oil price environment, the future direction of interest rates, and geopolitical developments will likely cause increased market volatility in the short to medium term.
As a result of our bottom-up, company specific process based on FVE (fundamentals, valuation, and expectations), we ended the period overweight the Industrials, Information Technology, and Energy sectors. The Fund’s industrial holdings include market leaders across waste disposal, credit reporting agencies, and leading niche manufacturers. The Fund’s largest underweight at the end of the period was to the Financials sector, and more specifically real estate investment trusts (REITs), which we continued to view as unattractive.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Mid-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 10.8 | % |
Consumer Staples | | | 0.7 | |
Energy | | | 7.5 | |
Financials | | | 16.1 | |
Health Care | | | 12.9 | |
Industrials | | | 24.4 | |
Information Technology | | | 21.8 | |
Materials | | | 3.2 | |
Utilities | | | 2.5 | |
| | | | |
Total | | | 99.9 | % |
| | | | |
Short-Term Investments | | | 0.1 | % |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford MidCap Value HLS Fund inception 04/30/2001
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
MidCap Value IA | | | 0.97% | | | | -4.88% | | | | 9.82% | | | | 7.27% | |
MidCap Value IB | | | 0.90% | | | | -5.14% | | | | 9.55% | | | | 7.01% | |
Russell 2500 Value Index | | | 7.84% | | | | 0.22% | | | | 9.59% | | | | 6.52% | |
Russell MidCap Value Index | | | 8.87% | | | | 3.25% | | | | 11.70% | | | | 7.79% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Russell 2500 Value Index is an unmanaged index that measures the performance of those Russell 2500 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500 Index is an unmanaged index that measures the performance of the 2,500 smallest U.S. companies based on total market capitalization.
Russell MidCap Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell MidCap Index companies with lower price-to-book ratios and lower forecasted growth values.
The indices are unmanaged, and their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.84% and 1.09%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford MidCap Value HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
James N. Mordy
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap Value HLS Fund returned 0.97% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Russell 2500 Value Index, which returned 7.84% for the same period, and the Fund’s other benchmark, the Russell MidCap Value Index, which returned 8.87% for the same period. The Fund also underperformed the 3.66% average return of the Lipper Mid-Cap Core Fund peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed
chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. Within the Russell 2500 Value Index, eight out of ten sectors posted positive returns during the six-month period. The Materials (+26%), Utilities (+25%), and Consumer Staples (+19%) sectors performed the best while the Healthcare (-2%) and Consumer Discretionary (-3%) sectors lagged over the period.
The Fund’s underperformance relative to the Russell 2500 Value Index was largely driven by weak security selection. Negative stock selection within the Consumer Discretionary, Materials, and Financials sectors more than offset positive stock selection within Energy and Consumer Staples. Sector allocation, a result of the bottom-up security selection process, also detracted from relative results over the period, primarily due to an underweight to Utilities and an overweight allocation to Consumer Discretionary. An overweight to Energy and Materials contributed positively to benchmark-relative performance over the period.
The largest detractors from absolute returns and returns relative to the Russell 2500 Value Index included Global Brands Group (Consumer Discretionary), Performance Sports Group (Consumer Discretionary), and Norwegian Cruise Lines (Consumer Discretionary). Shares of Global Brands Group, a Hong Kong-based company that designs and markets fashion apparel, fell during the period. While the decline is not attributable to anything specific to the company’s operations, the biggest obstacle is a lack of investor attention due to its Hong Kong listing. Shares of Performance Sports Group (PSG), a Canada-based manufacturer of sports equipment, fell during the period as PSG preannounced a significant sales and earnings miss in their Easton baseball equipment business. Shares of Norwegian Cruise Lines, a U.S.-based international cruise operator, fell due to uncertainty regarding how Brexit will affect the travel and leisure industry, in addition to first quarter 2016 earnings report that cited recent terror attacks in Paris, Brussels, and Istanbul as a drag on European cruise revenue.
|
| Hartford MidCap Value HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
The largest contributors to benchmark-relative performance included Diamondback Energy (Energy), Silicon Motion (Information Technology), and Newfield Exploration (Energy). Diamondback Energy, a U.S.-based independent oil and natural gas company, rose during the period as the recent recovery in oil prices served as a tailwind. Shares of Silicon Motion, a Taiwan-based company that designs, develops, and markets semiconductor solutions for mobile devices, rose after the company announced positive first quarter financial results and raised guidance for the second quarter 2016. Shares of Newfield Explorations, a U.S.-based oil and gas exploration and production company, rose as the company increased its second quarter and full year 2016 production guidance, driven by strong production in the Anadarko Basin, benefiting the stock price. Top absolute contributors during the period included UGI Corporation (Utilities).
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
The outlook is clouded with Brexit. Our macroeconomic group now projects a recession in the U.K., and they have lowered 2017 Gross Domestic Product (GDP) growth estimates to +1.1% in Europe and +1.9% in the U.S. (down 0.40% and 0.30%, respectively). We believe the actual exit process and U.K. political disarray are highly uncertain, and the longer it takes to sort out the greater the impact will be on business confidence and investment. Longer term we are concerned about European cohesion among other members. We believe markets are pricing in an expectation of further aggressive monetary easing, but it is becoming increasingly clear that the negative rate policies have not succeeded in stimulating economic growth (and are likely hindering it and widening the wealth gap). In the U.S. we do not agree with the view that the move in Treasury yields is signaling imminent recession. We believe low rates may help boost housing and consumer income growth remains relatively healthy. Employment growth in June bounced back strongly from May. We believe the Fed can hold off until something big changes – a further build in inflation (we believe is less likely than it seemed pre-Brexit) or a major policy change post- U.S. election. Developed market equities have free cash flow yields averaging around 8% which we believe continue to support dividends and share buybacks that appeal in a yield-starved world, but greater incentive for
reinvestment might be healthier for sustainable long term economic growth.
The Fund ended the period most overweight to Information Technology, Materials, and Consumer Discretionary sectors, and most underweight the Financials, Utilities, and Healthcare sectors relative to the Russell 2500 Value Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Mid-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. Value investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 11.1 | % |
Consumer Staples | | | 3.2 | |
Energy | | | 8.6 | |
Financials | | | 30.6 | |
Health Care | | | 3.3 | |
Industrials | | | 12.0 | |
Information Technology | | | 12.9 | |
Materials | | | 8.5 | |
Telecommunication Services | | | 0.9 | |
Utilities | | | 6.9 | |
| | | | |
Total | | | 98.0 | % |
| | | | |
Short-Term Investments | | | 1.6 | % |
Other Assets & Liabilities | | | 0.4 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Small Cap Growth HLS Fund* inception 05/02/1994
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Small Cap Growth IA | | | -0.76% | | | | -8.69% | | | | 9.57% | | | | 8.07% | |
Small Cap Growth IB | | | -0.90% | | | | -8.92% | | | | 9.29% | | | | 7.80% | |
Russell 2000 Growth Index | | | -1.59% | | | | -10.75% | | | | 8.51% | | | | 7.14% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Russell 2000 Growth Index is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is a broad-based unmanaged index comprised of 2,000 of the smallest U.S.-domiciled company common stocks (on the basis of capitalization) that are traded in the United States on the New York Stock Exchange, NYSE MKT LLC and Nasdaq.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.66% and 0.91%,
respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
Hartford Investment Management Company (“HIMCO”) became an additional sub-adviser effective November 13, 2006. Performance information prior to that date represents performance of only Wellington Management Company LLP. As of July 21, 2010, HIMCO no longer serves as a sub-adviser to the Fund.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
| * | Effective March 6, 2015, the Fund was closed to new investors until further notice. For more information, please see the Fund’s prospectus. |
|
| Hartford Small Cap Growth HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Mammen Chally, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
David J. Elliott, CFA
Senior Managing Director, Co-Director, Quantitative Investments and Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Small Cap Growth HLS Fund returned -0.76% for the six-month period ended June 30, 2016, outperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned -1.59%. For the same period, the Fund outperformed the average return of the Lipper Small-Cap Growth Funds peer group -1.05%, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and
uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period.
Eight of the ten sectors in the Russell 2000 Growth Index had positive returns during the period. Telecommunication services (+25%), Materials (+10%), and Consumer Staples (+10%) performed best, while Healthcare (-14%) and Energy (-2%) lagged the broader index.
Security selection was the primary driver of the Fund’s outperformance relative to the Russell 2000 Growth Index. Selection was strongest within the Consumer Discretionary, Healthcare, and Financials sectors, and weakest within the Information Technology and Materials sectors. Sector allocation, which is a result of the Fund’s bottom-up security selection process, contributed modestly to relative results. An underweight to Healthcare and overweights to Consumer Staples and Energy contributed positively to benchmark-relative performance, while underweights to Industrials and Telecommunication Services detracted from performance.
CoreSite Realty (Financials), Burlington Stores (Consumer Discretionary), and TESARO (Healthcare) were top contributors to results relative to the Russell 2000 Growth Index over the period. Shares of CoreSite Realty, a U.S.-based owner and operator of data centers, rose during the period as the company had a strong first quarter earnings release during the period. Burlington Stores, a U.S.-based off-price apparel retailer, saw its share price increase during the period. Though the company is called Burlington Stores, it is still known as Burlington Coat Factory (only 7% of their sales are actually coats). Many investors feared that the company would be overly exposed to the warm winter weather and the stock struggled late in 2015. Burlington dispelled those fears after it reported strong
|
| Hartford Small Cap Growth HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
fourth quarter earnings during the first quarter of 2016, which caused the stock to jump. Another top contributor to relative performance was TESARO, a U.S.-based oncology-focused biopharmaceutical company. The stock surged after the company posted positive Phase Three data for their ovarian cancer drug. Top absolute contributors during the period also included WellCare Health Plan (Healthcare).
The top relative detractors from performance relative to the Russell 2000 Growth Index over the period were Portola Pharmaceuticals (Healthcare), Biocryst Pharmaceuticals (Healthcare), and PTC Therapeutics (Healthcare). The top detractor from performance was Portola Pharmaceuticals, a U.S.-based biopharmaceutical company. The share price of Portola suffered during the period after the company announced disappointing data for the Phase 3 study of their anti-coagulant Betrixaban. Shares of Biocryst Pharmaceuticals, a U.S.-based biotechnology company focused on autoimmune diseases and antivirals, fell during the period after the company reported disappointing trial results for its treatment for angioedema attacks, which showed that it did not demonstrate a statistically significant reduction in attack rates compared to a placebo study. Shares of PTC Therapeutics, a U.S.-based biopharmaceutical company focused on the discovery and development of orally administered small molecule drugs, declined during the period after the company received a “refuse to file” letter from the FDA in late February in response to its January NDA (new drug application) for their Duchenne muscular dystrophy drug. The response indicates the application did not contain sufficient information. Ultragenyx Pharmaceuticals (Healthcare) was among the top detractors from absolute performance over the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
A new level of uncertainty has been introduced by approval of the U.K.’s referendum to leave the E.U. We believe this could potentially slow capital expenditures, not only in Europe but also here in the U.S., which moderates our forward looking growth expectations for the U.S. economy. While we believe Brexit is a net negative, we believe it is manageable; therefore, we believe the concern shifts to the potential for other E.U. member countries to react similarly if the U.K. is successful. The large U.S. financial services firms that have operations in London face a lot of uncertainty. We will have to wait and see how the negotiations evolve to determine the full impact on these firms.
We believe the U.S. economy remains on a reasonable footing with continued moderate economic growth. However, Brexit has the potential to unleash further strengthening of the U.S. dollar, which could cause unforeseen fiscal tightening. In terms of monetary policy, this may mean that the Fed remains on hold for longer, which could be a headwind for many financial firms, particularly the banks. We will continue to monitor the situation and attempt to understand the implications for the financials that we own through conversations with their management teams. Other capital expenditure exposed sectors (e.g., Information Technology, Industrials) may also face modest difficult conditions due to the uncertainty.
While our outlook for the U.S. economy has moderated following the unexpected Brexit vote, we continue to find what we consider to be attractively valued equities with the characteristics we seek. We remain consistent in adhering to our disciplined portfolio construction process that we believe allows us to assess risk, weight individual positions accordingly, and in the process build a portfolio that relies largely on stock selection in seeking to generate outperformance relative to the Russell 2000 Growth Index.
As a result of bottom-up stock selection, the Fund’s top overweights at the end of the period were to the Consumer Staples and Consumer Discretionary sectors. Financials and Information Technology represented the largest underweights relative to the Russell 2000 Growth Index at the end of the period.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the Fund’s strategy for allocating assets among different asset classes and/or portfolio management teams does not work as intended, the Fund may not achieve its objective or may underperform other funds with similar investment strategies. Small-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. Growth investing may go out of favor, which may cause the Fund to underperform the broader stock market.
|
| Hartford Small Cap Growth HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 16.7 | % |
Consumer Staples | | | 4.3 | |
Energy | | | 1.3 | |
Financials | | | 11.2 | |
Health Care | | | 22.5 | |
Industrials | | | 14.9 | |
Information Technology | | | 22.6 | |
Materials | | | 4.6 | |
Telecommunication Services | | | 0.8 | |
| | | | |
Total | | | 98.9 | % |
| | | | |
Short-Term Investments | | | 1.5 | % |
Other Assets & Liabilities | | | (0.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Small Company HLS Fund* inception 08/09/1996
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Small Company IA | | | -6.34% | | | | -18.60% | | | | 5.63% | | | | 5.66% | |
Small Company IB | | | -6.44% | | | | -18.80% | | | | 5.37% | | | | 5.41% | |
Russell 2000 Growth Index | | | -1.59% | | | | -10.75% | | | | 8.51% | | | | 7.14% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Russell 2000 Growth Index is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is a broad-based unmanaged index comprised of 2,000 of the smallest U.S.-domiciled company common stocks (on the basis of capitalization) that are traded in the United States on the New York Stock Exchange, NYSE MKT LLC and Nasdaq.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.72% and 0.97%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
Performance information shown prior to July 21, 2010 also reflects the performance of Hartford Investment Management Company, when it served as a sub-adviser to a portion of the Fund.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
| * | Effective June 26, 2015, the Fund was closed to new investors until further notice. For more information, please see the Fund’s prospectus. |
|
| Hartford Small Company HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Steven C. Angeli, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Mammen Chally, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Small Company HLS Fund returned -6.34% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Russell 2000 Growth Index which returned -1.59% for the same period. The Fund also underperformed the -1.05% average return of the Lipper Small-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and
uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. Eight of the ten sectors in the Russell 2000 Growth Index had positive returns during the period. Telecommunication services (+25%), Materials (+10%), and Consumer Staples (+10%) performed the best, while Healthcare (-14%) and Energy (-2%) lagged the broader index.
Stock selection was the main driver of underperformance relative to the Russell 2000 Growth Index, primarily due to weak selection within the Information Technology, Materials, and Healthcare sectors. This was partially offset by stronger selection in the Energy sector. Sector allocation, which is the result of bottom-up stock selection, contributed positively to relative returns, primarily due to an underweight to Healthcare and an overweight to the Financials sector, which offset the negative impacts of underweight allocations to the Consumer Staples and Telecommunication Services sectors.
Top detractors from returns relative to the Russell 2000 Growth Index during the period included KapStone Paper (Materials), Tableau Software (Information Technology), and SunPower (Information Technology). Shares of KapStone Paper, a U.S.-based producer of paper and corrugated packaging products, fell as the company faced difficult conditions from price erosion, a strong U.S. dollar, and higher than planned maintenance costs. Tableau Software, a U.S.-based developer of data visualization applications, saw its stock price decline after results disappointed. Further analysis revealed that Tableau’s recent struggles are likely early warning signs of broader developing competitive challenges from software incumbents like Microsoft who have grown interested in Tableau’s core market. As a result, we eliminated our position. Shares of SunPower, a U.S.-based solar energy company that designs and manufactures crystalline silicon photovoltaic cells, roof tiles, and solar panels, fell during the
|
| Hartford Small Company HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
period on concerns that 2017 earnings will decline as the renewal of investment tax credits late last year has elongated project demand into future years. Advisory Board (Industrials) was a top detractor from absolute performance.
Top contributors to absolute performance and performance relative to the Russell 2000 Growth Index during the period included TESARO (Healthcare), Zillow (Information Technology), and QEP Resources (Energy). Shares of TESARO, a U.S.-based biopharmaceutical company, rose after the company reported strong data from a pivotal phase three ovarian cancer trial. The share price of Zillow, a U.S.-based real estate online marketplace, increased after a legal settlement that allowed it to put an end to a lawsuit that could have cost Zillow as much as $1 billion. Shares of QEP Resources, a U.S.-based oil and gas exploration company, rose as it reported strong first quarter earnings.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
In the first half of the year, we sought to take advantage of market dislocations as short-term fears created material buying opportunities in fundamentally strong growth businesses, in our opinion.
Though encouraged by the improved fundamental results we experienced across much of the portfolio during the second quarter, we are highly aware of the challenging longer-term performance that has resulted from recent portfolio weakness.
As a result of our bottom-up, stock-by-stock investment decisions, the Fund ended the period most overweight the Information Technology, Energy, and Telecommunication Services sectors relative to the Russell 2000 Growth Index. The Fund ended the period most underweight the Healthcare, Consumer Discretionary, and Consumer Staples sectors relative to the Russell 2000 Growth Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. If the Fund’s strategy for allocating assets among different asset classes and/or portfolio management teams does not work as intended, the Fund may not achieve its objective or may underperform other funds with similar investment strategies. Small-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs. Growth investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 13.8 | % |
Consumer Staples | | | 1.6 | |
Energy | | | 2.1 | |
Financials | | | 9.5 | |
Health Care | | | 18.8 | |
Industrials | | | 13.8 | |
Information Technology | | | 33.0 | |
Materials | | | 3.5 | |
Telecommunication Services | | | 0.7 | |
| | | | |
Total | | | 96.8 | % |
| | | | |
Short-Term Investments | | | 0.7 | % |
Other Assets & Liabilities | | | 2.5 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Small/Mid Cap Equity HLS Fund inception 05/01/1998
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Small/Mid Cap Equity IA | | | 0.94% | | | | -7.17% | | | | 8.08% | | | | 6.67% | |
Small/Mid Cap Equity IB | | | 0.81% | | | | -7.44% | | | | 7.80% | | | | 6.41% | |
Russell 2500 Index | | | 3.98% | | | | -3.67% | | | | 9.48% | | | | 7.32% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Performance information from December 4, 2006 through June 4, 2012 includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of June 4, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund. Performance information prior to December 4, 2006 represents performance of other previous sub-advisers.
Includes the Fund’s performance when it invested, prior to February 1, 2010, at least 80% of its assets in common stocks of mid-capitalization companies.
Class IB shares commenced on March 31, 2008. Class IB shares performance prior to that date reflects Class IA shares performance adjusted to reflect the 12b-1 fee of 0.25% applicable to Class IB shares. The performance after such date reflects actual Class IB shares performance.
Russell 2500 Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000 Index and includes approximately 2500 of the smallest securities based on a combination of their market capitalization and current index membership.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.96% and 1.21%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
David J. Elliott, CFA
Senior Managing Director, Co-Director, Quantitative Investments and Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Small/Mid Cap Equity HLS Fund returned 0.94% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Russell 2500 Index, which returned 3.98%. For the same period, the Fund underperformed the 3.09% average return of the Lipper Small-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision.
After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period.
Nine of the ten sectors in the Russell 2500 Index posted positive absolute returns during the period. Utilities (+25%), Materials (+16%) and Telecommunication Services (+14%) rose the most while Healthcare (-9%) was the only sector to post a negative return.
The Fund’s underperformance relative to the Russell 2500 Index was driven by weak stock selection, particularly in the Energy, Healthcare, and Industrials sectors. This was partially offset by stronger selection in Utilities. Sector allocation, a product of our quantitative stock-selection process, contributed positively to returns relative to the Russell 2500 Index during the period. Overweights to Energy and Healthcare and an underweight to Consumer Discretionary contributed positively to performance relative to the Russell 2500 Index, and more than offset the negative impact of underweight exposure to Utilities and Materials.
The largest detractors from performance relative to the Russell 2500 Index during the period were Alaska Air (Industrials), Valero Energy (Energy), and United Therapeutics (Healthcare). Shares of U.S.-based airline Alaska Air fell during the period on reports of lower unit revenues and the impact of higher fuel costs. The stock price of U.S.-based Valero Energy, an independent oil refiner, declined during the period as profit margins across the oil refining industry have tightened considerably relative to their 2015 highs. Lower margins and a decline in operating margins resulted in reduced year-over-year revenue and income during the first half of the year. Shares of United Therapeutics, a U.S.-based biotechnology company focused on the development of therapeutic products for patients with chronic and life-threatening cardiovascular, cancer, and infectious diseases, fell during the period after the company reported first quarter earnings that missed Wall Street’s expectations. Jones Lang LaSalle (Financials) was among the top absolute detractors during the period.
The largest contributors to performance relative to the Russell 2500 Index during the period were Pinnacle West (Utilities), Clearwater Paper (Materials), and Domino’s Pizza (Consumer Discretionary).
|
| Hartford Small/Mid Cap Equity HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Pinnacle West is a U.S.-based holding company for Arizona Public Service, the largest electric utility company in Arizona. Shares of Pinnacle West rose during the period as improvements in Arizona’s economy, most notably a year-over-year increase in the employment rate and an uptick in single-family housing permits, have led to growth in the company’s customer base and contributed to improved retail sales. Shares of Clearwater Paper, a U.S.-based pulp and paper product manufacturer, rose after the company reported improvements in the consumer products business, increases in the shipment volumes and continued strengthening in operating efficiency and profitability. The stock price of Domino’s Pizza, a U.S.-based pizza restaurant chain, increased during the period. Despite a disappointing first quarter earnings release, continued sales growth and positive reviews on its mobile ordering platform have helped push the stock higher during the first half of 2016. Select Income (Financials) was among the top absolute contributors to performance during the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We seek to add value by utilizing our proprietary quantitative research and investment tools in a highly disciplined framework. We focus on stock selection as the key driver of returns and use quantitative portfolio optimization techniques to seek to minimize unintended and uncompensated risks. Based on individual stock decisions, the Fund ended the period most overweight the Healthcare and Utilities sectors and most underweight the Financials and Materials sectors relative to the Russell 2500 Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Small- and mid-cap securities can have greater risk and volatility than large-cap securities. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 12.1 | % |
Consumer Staples | | | 3.8 | |
Energy | | | 4.9 | |
Financials | | | 24.2 | |
Health Care | | | 13.2 | |
Industrials | | | 14.5 | |
Information Technology | | | 13.8 | |
Materials | | | 4.9 | |
Telecommunication Services | | | 1.7 | |
Utilities | | | 5.9 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 1.0 | % |
Other Assets & Liabilities | | | 0.0 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Stock HLS Fund inception 08/31/1977
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Stock IA | | | 5.59% | | | | 9.33% | | | | 11.62% | | | | 7.22% | |
Stock IB | | | 5.45% | | | | 9.07% | | | | 11.34% | | | | 6.95% | |
Russell 1000 Index | | | 3.74% | | | | 2.93% | | | | 11.88% | | | | 7.51% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.51% and 0.76%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
Donald J. Kilbride
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Stock HLS Fund returned 5.59% for the six-month period ended June 30, 2016, outperforming the Russell 1000 Index, which returned 3.74% for the same period. The Fund also outperformed the 2.21% average return of the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four, implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of
Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. During the six-month period, seven of the ten sectors within the Russell 1000 Index rose, led by Utilities (+24%), Telecommunication Services (+24%), and Energy (+15%). Financials (-2%), Information Technology (0%), and Healthcare (0%) lagged on a relative basis.
The Fund’s outperformance versus the Russell 1000 Index was primarily driven by strong security selection within Healthcare, Industrials, and Financials, which offset weaker selection within Consumer Staples. Sector allocation, a residual of the Fund’s bottom-up stock selection process, detracted modestly from benchmark-relative returns due primarily to underweight allocations to Utilities, Telecommunication Services, and Energy. This was partially offset by an underweight to the Consumer Staples sector, which contributed positively to performance.
Top contributors to performance relative to the Russell 1000 Index during the period included Marsh & McLennan (Financials), Apple (Information Technology), and UnitedHealth Group (Healthcare). Shares of Marsh & McLennan, a U.S.-based global insurance broker, rose after the company announced stronger-than-expected earnings results. Shares of Apple, a U.S.-based designer and manufacturer of consumer electronics, software, and computers, fell during the period due to demand for iPhones being down in the U.S. and Europe. Not holding the benchmark constituent contributed positively to benchmark-relative returns over the period. Shares of UnitedHealth Group, a U.S.-based Healthcare benefits and services provider, rose during the period as the company continued to execute well and exceed consensus revenue and earnings expectations. Johnson & Johnson (Healthcare) also contributed positively to performance on an absolute basis.
Stocks that detracted the most from returns relative to the Russell 1000 Index during the period were Nike (Consumer Discretionary), Cardinal Health (Healthcare), and PNC Financial Services (Financials). Shares of Nike, a U.S.-based sporting apparel and equipment company, fell during the period due to some backed-up inventory that they were dealing with (due to the Sports Authority bankruptcy). We believe this is a short-term issue and we added to
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
the position. Shares of Cardinal Health, a U.S.-based distributor of pharmaceuticals, fell as investors worried about a slowdown in generic pricing. Shares of PNC Financial Services, a U.S.-based banking and diversified financial services company, underperformed during the period after financials and banking stocks in particular were hard hit. In addition to fears of a “lower-for-longer” rate environment due to a growth slowdown, some banks were negatively affected by worries about deterioration in asset quality from the oil price rout.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We had previously suggested the global investment narrative was increasingly coalescing around the theme of China. We believe that, despite many other important factors at hand, news regarding China would likely dominate the investment landscape. And then along comes Brexit.
For most, the decision by the U.K. electorate to “leave” the E.U. was a surprise and global markets reacted negatively. The potential economic implications of Brexit are profound. This applies not merely to the U.K., but to the E.U. and the broader globe. While it’s important to consider the ultimate impact of this decision on global economics and markets, we think that certain realties must not be overlooked. First, this referendum was advisory rather than mandatory. Though it is likely that the U.K. will move forward with a formal separation, there is a constitutional process that must be followed. That process, which requires approval by 20 of the 27 remaining member states, will likely be met with highly contentious negotiating. The 2 year time period set aside for negotiation (from the date the U.K. government formally announces its intention) could be rocky indeed.
Given the long road ahead, we feel it unwise to draw any firm conclusion on how Brexit will resolve itself. As a consequence, we believe making any meaningful changes to the portfolio in anticipation of any resolution is unwise. We believe the portfolio continues to be populated with many strong global enterprises with potential to create value opportunities and strong dividend growth prospects. Therefore, while it is likely the bumps on the road to Brexit resolution will impact the portfolio along the way, we remain confident the portfolio is well positioned.
It’s important to remind ourselves that whatever view we may have over the next month, next year, or even the next five years will have little bearing on our portfolio decisions. We continue to believe in the power of compounding and a growing dividend as the tool through which this power is expressed. All the while, we believe a long-term outlook characterized by patience and low turnover is our best recipe for managing the portfolio.
At the end of the period, our bottom-up investment approach resulted in overweight exposures to Consumer Staples, Industrials, and Healthcare as we continued to find what we view as attractive investment opportunities in these sectors. The Fund’s largest underweights relative to the Russell 1000 Index were to Information Technology, Energy, and Utilities.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 12.3 | % |
Consumer Staples | | | 18.5 | |
Energy | | | 3.0 | |
Financials | | | 14.5 | |
Health Care | | | 18.0 | |
Industrials | | | 17.8 | |
Information Technology | | | 10.2 | |
Materials | | | 3.4 | |
| | | | |
Total | | | 97.7 | % |
| | | | |
Short-Term Investments | | | 2.2 | % |
Other Assets & Liabilities | | | 0.1 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Hartford Total Return Bond HLS Fund inception 08/31/1977
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks a competitive total return, with income as a secondary objective. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Total Return Bond IA | | | 5.49% | | | | 5.14% | | | | 4.17% | | | | 4.73% | |
Total Return Bond IB | | | 5.34% | | | | 4.84% | | | | 3.91% | | | | 4.47% | |
Barclays U.S. Aggregate Bond Index | | | 5.31% | | | | 6.00% | | | | 3.76% | | | | 5.13% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.
Barclays U.S. Aggregate Bond Index is an unmanaged index and is composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.52% and 0.77%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Total Return Bond HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Joseph F. Marvan, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Lucius T. (L.T.) Hill, III
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Campe Goodman, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Robert D. Burn, CFA
Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Total Return Bond HLS Fund returned 5.49% for the six-month period ended June 30, 2016, outperforming the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index, which returned 5.31% for the same period. The Fund also outperformed the 5.02% average return of the Lipper Core Bond Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
Over the first half of 2016, global fixed income markets were influenced by global economic growth concerns, central bank monetary policies, oil prices, and the United Kingdom’s (U.K.’s) vote to leave the European Union (E.U.). During the first quarter of 2016, falling oil prices, concerns over slowing growth in China, and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their safe-haven status. Following the lead of European central banks, the Bank of Japan (BOJ) introduced negative interest rates for the first time as the volatility and instability in financial markets threatened to tip Japan back into deflation. Markets reversed course in mid-February as the major central banks adopted an overall cautious stance to further rate increases in an effort to ease market risk. The People’s Bank of China resumed its easing cycle with a surprise cut in the bank’s reserve-requirement ratio and the European Central Bank (ECB) announced significant easing measures, including lowering interest rates, expanding asset purchases to include investment-grade corporate bonds, and launching new targeted long-term refinancing operations to foster bank lending. The Federal Reserve (Fed) appeared willing to hold off on further rate increases as it indicated an even slower path to raising rates; The Fed refrained from raising interest rates at their March meeting and pared back their forecasts for interest-rate increases in 2016, citing global uncertainties.
A rebound in crude oil prices and signs of near-term stabilization in China further supported global financial markets during the start of the second quarter. However, investors turned more cautious in June as the outcome of the referendum on U.K.’s ending its E.U. membership (known as “Brexit”) moved into sharper focus. The Federal Open Market Committee (FOMC) held rates steady during the quarter, while upholding its baseline view for a gradual tightening in monetary policy. Markets started to come around to the idea of a possible rate increase in June or July after a flurry of statements suggesting plans to further raise rates during 2016 in May. However, a weak U.S. payrolls report in early June and growing uncertainty over Brexit, started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting amid lingering uncertainty about the strength of the global economy as well as a reluctance to increase rates ahead of the E.U. referendum vote in the U.K. The U.K.’s momentous vote to leave to the E.U. led to a spike in global financial market volatility and a flight to safety at the end of the period, with U.K. and European equity and credit markets bearing the brunt of the sell-off. Credit spreads initially widened in the wake of the U.K.’s vote to leave the E.U. but then rallied strongly into the end of the six-month period on the prospect of further monetary policy easing globally.
Developed markets’ government bond prices gained over the six-month period as global uncertainties kept central banks in easing mode, Japan joined the growing list of countries with negative yields, and Brexit caused a significant decline in interest rates. In the U.S., the yield curve dropped and flattened; yields on intermediate- and long-term bonds declined more sharply than those on short-term bonds. The U.S. dollar ended the first half of the year with mixed performance against its major counterparts. The Japanese yen was the major gainer among G10 currencies, as market participants questioned the efficacy of the BOJ’s negative rates policy and the effects of the Brexit vote. The British pound and the euro depreciated against the U.S. dollar.
|
| Hartford Total Return Bond HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Absolute returns in the major fixed income credit risk sectors were positive, aided by the decline in government bond yields. On an excess return basis, most credit risk sectors posted positive returns over the full six-month period, including U.S. high yield, emerging market debt, and investment grade corporates, as spreads tightened over the period. However, this performance masked considerable volatility in credit risk sector within the period, including a drawdown in many credit risk sectors in the first part of 2016 and in the aftermath of Brexit.
The primary drivers of the Fund’s benchmark-relative outperformance over the period were an out-of-benchmark allocation to bank loans and positioning within agency and non-agency mortgage backed securities (MBS). The Fund’s allocation to collateralized loan obligations (CLOs) was also additive to relative results during the period, as was the Fund’s investment grade credit positioning, particularly favorable security selection within the Energy sector. High yield positioning, outside of bank loans, was negative overall. Positive results from exposure to BB rated high yield bonds was offset by the portfolio’s derivative hedges and exposure to European financials. Modest opportunistic interest rate positioning, implemented partly by using treasury futures, had a positive impact on performance. Relative value positions within the commercial mortgage backed securities (CMBS) sector (using both cash and synthetic CMBS), and a small underweight to emerging markets debt via credit default swap indexes, detracted from relative performance during the period. Additionally, we positioned the portfolio for an increase in inflation expectations as we believed a tightening labor market would lead inflation higher. Inflation positioning, partly implemented through Consumer Price Index (CPI) swaps, was negative over the period.
What is the outlook?
At the end of the period, we maintained a moderately pro-cyclical risk stance in credit markets, based on our view for positive U.S. economic growth, continued accommodative monetary policy, and attractive valuations. We believe capacity constraints will pressure inflation higher; as a result, the portfolio remained positioned for an increase in inflation expectations. We ended the period with an underweight to investment grade credit. We remained overweight to agency MBS pass-throughs, and continued to hold an out-of-benchmark allocation to non-agency MBS. The Fund also held high quality CMBS and CLOs at the end of the period based on what we consider to be attractive valuations. Within high yield, we favored BB rated securities, bank loans, and contingent convertibles (CoCo’s) of large European banks at the end of the period.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Fixed Income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened due to the historically low interest rate environment. Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. The Fund may purchase securities in the To-Be-Announced (TBA) market, which can subject the Fund to additional price and counterparty risk. Derivatives may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency, leverage, liquidity, index, pricing, and counterparty risk. The Fund has the ability to invest in foreign, emerging-market, and high-yield (“junk”) bonds. Investments in these securities generally involve greater risk, volatility, and possibility of loss. Privately placed, restricted (Rule 144A) securities may be more difficult to sell and value than publicly traded securities, thus they may be potentially illiquid. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Diversification by Security Type
as of June 30, 2016
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Preferred Stocks | | | 0.1 | % |
| | | | |
Total | | | 0.1 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 31.8 | % |
Corporate Bonds | | | 35.5 | |
Foreign Government Obligations | | | 2.3 | |
Municipal Bonds | | | 1.3 | |
Senior Floating Rate Interests | | | 5.6 | |
U.S. Government Agencies | | | 58.7 | |
U.S. Government Securities | | | 3.3 | |
| | | | |
Total | | | 138.5 | % |
| | | | |
Short-Term Investments | | | 4.2 | % |
Other Assets & Liabilities | | | (42.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Ultrashort Bond HLS Fund inception 08/31/1977
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks total return and income consistent with preserving capital and maintaining liquidity. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | Since
Inception2 | |
Ultrashort Bond IA | | | 0.60% | | | | 0.53% | | | | 0.31% | |
Ultrashort Bond IB | | | 0.50% | | | | 0.31% | | | | 0.08% | |
Barclays 9-12 Month U.S. Treasury Index | | | 0.72% | | | | 0.76% | | | | 0.48% | |
| 2 | On October 21, 2013, the Fund converted from a money market fund to an ultrashort bond fund. Total returns shown are from conversion date (October 21, 2013) to June 30, 2016. |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Prior to October 21, 2013, the Fund was managed as a money market fund. Accordingly, performance of the Fund prior to October 21, 2013 is not shown. Past performance information for when the Fund was managed as a money market fund is available upon request by calling 1-888-843-7824.
Barclays 9-12 Month U.S. Treasury Index measures the performance of U.S. Treasury securities that have a remaining maturity between one and twelve months. The index is unmanaged, and its results include reinvested dividends and/or
distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
The index is are unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.43% and 0.68%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford Ultrashort Bond HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
Timothy E. Smith
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Ultrashort Bond HLS Fund returned 0.60% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Barclays 9-12 Month U.S. Treasury Index, which returned 0.72% for the same period. The Fund also underperformed the 1.72% average return of the Lipper Short Investment Grade Debt Funds peer group, a group of funds that invest primarily in investment grade issues with dollar-weighted average maturities of one to five years.
Why did the Fund perform this way?
Over the first half of 2016, global fixed income markets were influenced by global economic growth concerns, central bank monetary policies, oil prices, and the United Kingdom’s (U.K.’s) vote to leave the European Union (E.U.). During the first quarter of 2016, falling oil prices, concerns over slowing growth in China, and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their safe-haven status. Following the lead of European central banks, the Bank of Japan (BOJ) introduced negative interest rates for the first time as the volatility and instability in financial markets threatened to tip Japan back into deflation. Markets reversed course in mid-February as the major central banks adopted an overall cautious stance to further rate increases in an effort to ease market risk. The People’s Bank of China resumed its easing cycle with a surprise cut in the bank’s reserve-requirement ratio and the European Central Bank (ECB) announced significant easing measures, including lowering interest rates, expanding asset purchases to include investment-grade corporate bonds, and launching new targeted long-term refinancing operations to foster bank lending. The Federal Reserve (Fed) appeared willing to hold off on further rate increases as it indicated an even slower path to raising rates; The Fed refrained from raising interest rates at their March meeting and pared back their forecasts for interest-rate increases in 2016, citing global uncertainties.
A rebound in crude oil prices and signs of near-term stabilization in China further supported global financial markets during the start of the second quarter. However, investors turned more cautious in June as the outcome of the referendum on U.K.’s ending its E.U. membership (known as “Brexit”) moved into sharper focus. The Federal Open Market Committee (FOMC) held rates steady during the quarter, while upholding its baseline view for a gradual tightening in monetary policy. Markets started to come around to the idea of a possible rate increase in June or July after a flurry of statements suggesting plans to further raise rates during 2016 in May. However,
a weak U.S. payrolls report in early June and growing uncertainty over the Brexit, started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting amid lingering uncertainty about the strength of the global economy as well as a reluctance to increase rates ahead of the E.U. referendum vote in the U.K. The U.K.’s momentous vote to leave to the E.U. led to a spike in global financial market volatility and a flight to safety at the end of the period, with U.K. and European equity and credit markets bearing the brunt of the sell-off. Credit spreads initially widened in the wake of the U.K.’s vote to leave the E.U. but then rallied strongly into the end of the six-month period on the prospect of further monetary policy easing globally.
Developed markets’ government bond prices gained over the six-month period as global uncertainties kept central banks in easing mode, Japan joined the growing list of countries with negative yields, and Brexit caused a significant decline in interest rates. In the U.S., the yield curve dropped and flattened; yields on intermediate- and long-term bonds declined more sharply than those on short-term bonds. The U.S. dollar ended the first half of the year with mixed performance against its major counterparts. The Japanese yen was the major gainer among G10 currencies, as market participants questioned the efficacy of the BOJ’s negative rates policy and the effects of the Brexit vote. The British pound and the Euro depreciated against the U.S. dollar.
Absolute returns in the major fixed income credit risk sectors were positive, aided by the decline in government bond yields. On an excess return basis, most credit risk sectors posted positive returns over the full six-month period, including U.S. high yield, emerging market debt, and investment grade corporates, as spreads tightened over the period. However, this performance masked considerable volatility in credit risk sector within the period, including a drawdown in many credit risk sectors in the first part of 2016 and in the aftermath of Brexit.
The Fund underperformed the Barclays 9-12 Month U.S. Treasury Index on a net-of-fees basis, but outperformed on a gross-of-fees basis. Duration and yield curve positioning detracted from performance relative to the Barclays 9-12 Month U.S. Treasury Index during the period. An out-of-benchmark allocation to investment grade corporate credit, particularly within Industrials and Financial Institutions, contributed positively to relative performance during the period. An out-of-benchmark allocation to asset backed securities (ABS) was also moderately additive, specifically within auto and credit card ABS.
|
| Hartford Ultrashort Bond HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We expect the U.S. economy to maintain a low growth rate as we move into the second half of 2016. While consumer and government spending and housing fundamentals remain positive for the economy, we believe that challenges to the global growth outlook have increased; key risks include Brexit contagion (that is, that other E.U. members may follow the U.K.’s lead), continued uncertainty surrounding China, and volatile commodity prices. At the end of the period, the Fund was positioned with a moderately pro-cyclical risk posture.
We continue to expect the Fed to raise the Fed Funds rate gradually, with potential rate increases largely dependent on inflation data and global developments; as a result, at the end of the period the Fund’s duration positioning was short relative to the Barclays 9-12 Month U.S. Treasury Index. We believe that U.S. governments remain the most liquid sector, and continue to own select agencies with maturities of 3 years and or less. We believe core inflation is trending higher and that headline inflation may follow as commodity prices stabilize.
We continued to be positioned with out-of-benchmark allocations to investment grade corporates, ABS, and commercial mortgage backed securities (CMBS) at the end of the period. Within investment grade corporates, we favor U.S. banks, as balance sheets for the banking sector appear to have become less risky with improved capital ratios and regulation. Within ABS, we favor auto, credit card and equipment issuers. We also continue to believe CMBS fundamentals remain healthy as the sector continues to be supported by a slowly growing economy. As a result, we own senior tranches of shorter CMBS deals.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Fixed Income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened due to the historically low interest rate environment. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. Derivatives may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency, leverage, liquidity, index, pricing, and counterparty risk. The Fund may use repurchase agreements, which can increase risk and volatility. Privately placed, restricted (Rule 144A) securities may be more difficult to sell and value than publicly traded securities, thus they may be potentially illiquid.
Diversification by Security Type
as of June 30, 2016
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 20.5 | % |
Corporate Bonds | | | 49.5 | |
Municipal Bonds | | | 0.3 | |
U.S. Government Agencies | | | 12.1 | |
U.S. Government Securities | | | 17.4 | |
| | | | |
Total | | | 99.8 | % |
| | | | |
Short-Term Investments | | | 0.1 | % |
Other Assets & Liabilities | | | 0.1 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford U.S. Government Securities HLS Fund inception 03/24/1987
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks to maximize total return while providing shareholders with a high level of current income consistent with prudent investment risk. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
U.S. Government Securities IA | | | 3.68% | | | | 4.19% | | | | 2.68% | | | | 2.97% | |
U.S. Government Securities IB | | | 3.49% | | | | 3.88% | | | | 2.42% | | | | 2.71% | |
Barclays Intermediate Government Bond Index | | | 3.55% | | | | 3.93% | | | | 2.31% | | | | 4.07% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Performance information includes performance under the Fund’s previous sub-adviser, Hartford Investment Management Company. As of March 5, 2012, Hartford Investment Management Company no longer served as the sub-adviser to the Fund.
Barclays Intermediate Government Bond Index is an unmanaged index of government bonds with maturities of between one and ten years.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.51% and 0.76%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
|
| Hartford U.S. Government Securities HLS Fund |
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Manager
Michael F. Garrett
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford U.S. Government Securities HLS Fund returned 3.68%, for the six-month period ended June 30, 2016, outperforming the Fund’s benchmark, the Barclays Intermediate Government Bond Index, which returned 3.55% for the same period. The Fund underperformed the 4.12% average return of the Lipper Intermediate U.S. Government Funds peer group, a group of funds that invest primarily in U.S. government and agency issues.
Why did the Fund perform this way?
Over the first half of 2016, global fixed income markets were influenced by global economic growth concerns, central bank monetary policies, oil prices, and the United Kingdom’s (U.K.’s) vote to leave the European Union (E.U.). During the first quarter of 2016, falling oil prices, concerns over slowing growth in China, and questions about the efficacy of central bank monetary policies sparked a broad sell-off in credit markets, while government bond prices benefited from their safe-haven status. Following the lead of European central banks, the Bank of Japan (BOJ) introduced negative interest rates for the first time as the volatility and instability in financial markets threatened to tip Japan back into deflation. Markets reversed course in mid-February as the major central banks adopted an overall cautious stance to further rate increases in an effort to ease market risk. The People’s Bank of China resumed its easing cycle with a surprise cut in the bank’s reserve-requirement ratio and the European Central Bank (ECB) announced significant easing measures, including lowering interest rates, expanding asset purchases to include investment-grade corporate bonds, and launching new targeted long-term refinancing operations to foster bank lending. The Federal Reserve (Fed) appeared willing to hold off on further rate increases as it indicated an even slower path to raising rates; The Fed refrained from raising interest rates at their March meeting and pared back their forecasts for interest-rate increases in 2016, citing global uncertainties.
A rebound in crude oil prices and signs of near-term stabilization in China further supported global financial markets during the start of the second quarter. However, investors turned more cautious in June as the outcome of the referendum on U.K.’s ending its E.U. membership (known as “Brexit”) moved into sharper focus. The Federal Open Market Committee (FOMC) held rates steady during the quarter, while upholding its baseline view for a gradual tightening in monetary policy. Markets started to come around to the idea of a possible rate increase in June or July after a flurry of statements suggesting plans to further raise rates during 2016 in May. However, a weak U.S. payrolls report in early June and growing uncertainty
over Brexit, started to unwind some of those expectations. The Fed chose to err on the side of caution by holding rates steady at its June meeting amid lingering uncertainty about the strength of the global economy as well as a reluctance to increase rates ahead of the E.U. referendum vote in the U.K. The U.K.’s momentous vote to leave to the E.U. led to a spike in global financial market volatility and a flight to safety at the end of the period, with U.K. and European equity and credit markets bearing the brunt of the sell-off. Credit spreads initially widened in the wake of the U.K.’s vote to leave the E.U. but then rallied strongly into the end of the six-month period on the prospect of further monetary policy easing globally.
Developed markets’ government bond prices gained over the six-month period as global uncertainties kept central banks in easing mode, Japan joined the growing list of countries with negative yields, and Brexit caused a significant decline in interest rates. In the U.S., the yield curve dropped and flattened; yields on intermediate- and long-term bonds declined more sharply than those on short-term bonds. The U.S. dollar ended the first half of the year with mixed performance against its major counterparts. The Japanese yen was the major gainer among G10 currencies, as market participants questioned the efficacy of the BOJ’s negative rates policy and the effects of the Brexit vote. The British pound and the Euro depreciated against the U.S. dollar.
Absolute returns in the major fixed income credit risk sectors were positive, aided by the decline in government bond yields. On an excess return basis, most credit risk sectors posted positive returns over the full six-month period, including U.S. high yield, emerging market debt, and investment grade corporates, as spreads tightened over the period. However, this performance masked considerable volatility in credit risk sector within the period, including a drawdown in many credit risk sectors in the first part of 2016 and in the aftermath of Brexit.
Out-of-benchmark allocations to asset-backed securities (ABS), agency mortgage-backed securities (MBS), non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) were the main drivers of outperformance relative to the Barclays Intermediate Government Bond Index over the period. Within agency MBS, allocations to agency collateralized mortgage obligations (CMOs) and Delegated Underwriting Servicing bonds (DUS) contributed positively to the Fund’s relative outperformance over the period, in addition to positioning within agency pass-throughs. Within ABS, exposure to collateralized loan obligations (CLOs) was the primary driver of returns relative to the
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| Hartford U.S. Government Securities HLS Fund |
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
Barclays Intermediate Government Bond over the period. The Fund uses Treasury futures and interest rate swaps to manage duration and yield curve exposures; overall these transactions had a positive impact on absolute performance over the period. However, the Fund’s overall duration and yield curve positioning detracted from returns relative to the Barclays Intermediate Government Bond Index over the period.
What is the outlook?
We believe that agency MBS should produce a flat to positive excess return for the next 6 – 12 months. Current spreads may not fully reflect uncertainty around Fed interest rate policy, further macro deterioration, and what we believe is inadequate global central bank policy, but MBS spreads would have to widen substantially to offset their yield advantage. We do not see immediate deterioration risk for the U.S. economy and consumer and expect modest gross domestic product (GDP) growth with gradually rising rates. We believe this environment supports MBS ownership.
Our intermediate-term view remains for moderate credit spread widening given the uncertain macroeconomic environment and the prospect of ending Fed reinvestment, but mortgage income should support outperformance relative to U.S. Treasuries based on our outlook for timing and pace. Over the longer term, we expect MBS spreads to trade in a lower range relative to long-term history given what we feel are positive fundamentals of favorable supply relative to U.S. Treasuries, a shift in buyer-base to long term investors, and constrained mortgage credit environment.
We have a constructive outlook on most non-agency RMBS, given the continuing recovery of the U.S. housing market supporting credit and the positive technical tailwinds. We favor legacy non-agency RMBS, which we believe offer attractive yields relative to other credit sectors with comparable risk. We also like agency credit risk transfer securities (CRTs), which offer attractive spreads for credit risk in the high-quality, post-crisis agency mortgages. We also consider securitizations in non-traditional sectors, such as servicer advance deals, re-performing loans, and re-securitizations to be attractive opportunities to provide financing to holders of assets historically financed on bank balance sheets
The Fund’s longer term CMBS outlook is constructive due to what we believe are favorable commercial real estate (CRE) fundamentals and attractive valuations, both outright and relative to other credit risk sectors. CRE fundamentals appear to be generally healthy, supported by a slowly growing U.S. economy. Vacancies are close to historical lows, supply seems largely contained, and demand appears to be adequate to keep net operating income (NOI) growth positive. We are cautious given negative technicals and the late stage of the cycle. Secondary trading volumes and liquidity have also declined as
several dealers have stepped away from the sector. We favor higher quality new issues, seasoned (2010 – 2013) credit bonds, select single-borrower deals, and AAA interest-only (IO) bonds
We are constructive on ABS driven by what appear to be strong consumer fundamentals, balanced somewhat by the later stage of the cycle. Within consumer ABS, we favor senior and subordinate bonds of select subprime auto issuers. We remain confident in the sector but are becoming marginally more cautious. We see opportunity in niche subsectors, including unsecured consumer loans, fleet lease deals, and select credit tranches. We also see value in senior CLOs, but are more neutral relative to other spread product. We prefer upper-tier managers with stable business platforms.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Fixed Income risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall; these risks are currently heightened due to the historically low interest rate environment. The purchase of securities in the To-Be-Announced (TBA) market can result in additional price and counterparty risk. Mortgage- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. Derivatives may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions; risks include currency, leverage, liquidity, index, pricing, and counterparty risk. Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. Privately placed, restricted (Rule 144A) securities may be more difficult to sell and value than publicly traded securities, thus they may be potentially illiquid. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Diversification by Security Type
as of June 30, 2016
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 19.5 | % |
U.S. Government Agencies | | | 70.2 | |
U.S. Government Securities | | | 35.2 | |
| | | | |
Total | | | 124.9 | % |
| | | | |
Short-Term Investments | | | 11.9 | % |
Other Assets & Liabilities | | | (36.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Value HLS Fund inception 04/30/2001
| | |
| (sub-advised by Wellington Management Company LLP) | | Investment objective – The Fund seeks long-term total return. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA. Growth results in classes other than Class IA will vary from what is seen above due to differences in the expenses charged to those share classes.
Average Annual Total Return (as of 06/30/16)
| | | | | | | | | | | | | | | | |
| | | 6 Months1 | | | 1 Year | | | 5 Years | | | 10 Years | |
Value IA | | | 4.24% | | | | 0.02% | | | | 10.33% | | | | 7.05% | |
Value IB | | | 4.11% | | | | -0.21% | | | | 10.05% | | | | 6.78% | |
Russell 1000 Value Index | | | 6.30% | | | | 2.86% | | | | 11.35% | | | | 6.13% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end, please visit our website www.hartfordfunds.com.
Total returns presented above were calculated using the Fund’s net asset value available to shareholders for sale or redemption of Fund shares on June 30, 2016, which may exclude investment transactions as of this date. All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies, based on total market capitalizations.
The index is unmanaged, and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2016, the total annual fund operating expense ratios for Class IA and Class IB were 0.78% and 1.03%,
respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the period ended June 30, 2016.
All investments are subject to risk including the possible loss of principal. For a discussion of the Fund’s risks, please see “A Word about Risk” section in the “Manager Discussion” section of this report. For more detailed information on the risks associated with an investment in the Fund, please see the prospectus.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Manager Discussion
June 30, 2016 (Unaudited)
Portfolio Managers
Karen H. Grimes, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
W. Michael Reckmeyer, III, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Ian R. Link, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Value HLS Fund returned 4.24% for the six-month period ended June 30, 2016, underperforming the Fund’s benchmark, the Russell 1000 Value Index, which returned 6.30% for the same period. The Fund outperformed the 2.98% average return of the Lipper Large Cap Value Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
U.S. equities rose during the first half of 2016, notwithstanding significant volatility during the period. Early in the first quarter of 2016, equities plunged and moved in virtual lockstep with the price of oil as fears of a recession and weakness in China weighed on investors’ minds. However, equity markets surged in the second half of the quarter as solid economic data, a stabilization in oil prices, and accommodative commentary from the Federal Reserve (Fed) helped to calm the market’s early year jitters. The Federal Open Market Committee’s (FOMC) March statement surprised many market participants with its overall cautious approach to further rate hikes. The FOMC lowered its inflation forecast for 2016 and suggested only two rate increases this year, down from the four, implied back in December 2015. The policy statement also removed references to the balance of risks, noting that “global economic and financial developments continue to pose risks.”
U.S. equities continued to climb during the second quarter of 2016, ending June with a 3.8% year-to-date gain, as measured by the S&P 500 Index. A better-than-expected U.S. corporate earnings season and an encouraging economic backdrop helped sustain the rally. The continued rebound in oil prices buoyed equities to start off April but performance tapered off towards the end of the month amid mixed economic data and corporate earnings reports. The Fed remained a focal point as firm U.S. inflation data and commentary that raised inflation concerns from several FOMC members during May raised market expectations of a summer rate increase. However, “Brexit,” the United Kingdom’s (U.K.) proposed exit from the European Union (E.U.), took center stage late in the period, overshadowing the lower
probability of a near-term interest rate increase by the Fed following the disappointing payroll report in early June. At its June meeting, the Fed left rates unchanged and reduced its U.S. growth and long-run policy rate forecasts, citing mixed U.S. economic data and uncertainty about global economic and financial developments. Fed chair Janet Yellen also explicitly mentioned the uncertainty surrounding the U.K.’s E.U. referendum as a factor in the decision. After plunging 5.3% in the two trading days following the approval of Brexit, U.S. equities staged an impressive 4.9% comeback in the final three days of the period, as measured by the S&P 500 Index.
Equity returns varied noticeably by market-cap during the period, as mid-cap (+8%) and large-cap equities (+4%) outperformed small-cap equities (+2%), as measured by the S&P Midcap 400, S&P 500, and Russell 2000 Indices, respectively, though all three groups posted positive returns during the six-month period. During the six-month period, eight of the ten sectors within the Russell 1000 Value Index posted positive returns, led by Telecommunication Services (+24%), Utilities (+24%), and Energy (+16%). Financials (-3%) and Consumer Discretionary (-1%) lagged on a relative basis.
The Fund’s underperformance versus its benchmark, the Russell 1000 Value Index, during the period was primarily driven by sector allocation, a residual of the bottom-up stock selection process. This was largely due to a benchmark-relative overweight to the Consumer Discretionary sector and an underweight to the Utilities sector, which was only partially offset by the positive impact of an underweight to Financials. Security selection also detracted from benchmark-relative results, primarily within the Financials, Healthcare, and Information Technology sectors.
The top detractors from returns relative to the Russell 1000 Value Index over the period were Norwegian Cruise Lines (Consumer Discretionary), Signet Jewelers (Consumer Discretionary), and AT&T (Telecommunication Services). Shares of Norwegian Cruise Lines, a U.S.-based international cruise operator, fell due to uncertainty regarding how Brexit will affect the travel and leisure industry, in addition to first quarter 2016 earnings report that cited recent terror
Manager Discussion – (continued)
June 30, 2016 (Unaudited)
attacks in Paris, Brussels, and Istanbul as a drag on European cruise revenue. Shares of Signet Jewelers, the largest U.S.-based seller of affordable diamonds, fell over the period due to fears of credit deterioration and perceived high levels of bad debt. Shares of U.S.-based Telecommunication Services provider AT&T rose over the period due to solid earnings results and guidance attributed to DIRECTV synergies. Not holding the benchmark constituent detracted from benchmark-relative returns over the period. Top absolute detractors during the period included Citigroup (Financials) and Wells Fargo (Financials).
The largest contributors to returns relative to the Russell 1000 Value Index were Bank of America (Financials), Verizon Communications (Telecommunication Services), and Ingredion (Consumer Staples). Shares of Bank of America, a U.S.-based global Financial Services company, fell during the period due to pressure amid fears of a “lower-for-longer” rate environment due to a growth slowdown and concerns about deterioration in asset quality from the oil price rout. Not holding the benchmark constituent contributed positively to benchmark-relative returns over the period. Shares of Verizon Communications, a U.S.-based Telecommunication Services provider, rose after the company announced strong earnings results supported by gains in mobile customer acquisition and FiOS video sales. Shares of U.S.-based global producer of corn-derived ingredients Ingredion rose after its purchase of Penford, a producer of potato starch, which was fully incorporated into its North American operations during the period creating operational cost-synergies. Top absolute contributors during the period included Chevron (Energy) and Halliburton (Energy).
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook?
We continue to seek what we consider to be balance in the portfolio to allow for upside potential while avoiding excess exposure to a specific economic scenario. Despite slowing global growth and uncertainty, there are bright spots. We expect positive Gross Domestic Product growth in the U.S., where consumption has held up and low interest rates and a strong dollar have helped the U.S. consumer. There has been increased interest in fiscal policy as a tool for promoting economic growth across regions globally, which we
believe may benefit the industrial sector through increased infrastructure projects. Relative to these trends, we believe the portfolio is well positioned, and we are optimistic on fundamentals as we look forward in 2016 and into next year.
Based on individual stock decisions, the Fund ended the period most overweight the Consumer Discretionary, Information Technology, and Healthcare sectors, and most underweight the Consumer Staples, Financials, and Utilities sectors relative to the Russell 1000 Value Index.
A Word about Risk
All investments are subject to risk, including the possible loss of principal. There is no guarantee the Fund will achieve its stated objective. The Fund’s share price may fluctuate due to market risk and/or security selections that may underperform the market or relevant benchmarks. Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions. Value investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Diversification by Sector
as of June 30, 2016
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 10.7 | % |
Consumer Staples | | | 5.1 | |
Energy | | | 12.2 | |
Financials | | | 23.4 | |
Health Care | | | 13.9 | |
Industrials | | | 12.4 | |
Information Technology | | | 12.2 | |
Materials | | | 3.0 | |
Telecommunication Services | | | 1.8 | |
Utilities | | | 3.9 | |
| | | | |
Total | | | 98.6 | % |
| | | | |
Short-Term Investments | | | 1.3 | % |
Other Assets & Liabilities | | | 0.1 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system and these sector classifications are used for financial reporting purposes.
Expense Examples (Unaudited)
Your Fund’s Expenses
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including investment management fees, distribution and/or service (12b-1) fees, if any, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period of January 1, 2016 through June 30, 2016.
Actual Expenses
The first set of columns of the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Expenses are equal to a Fund’s annualized expense ratios multiplied by average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Hartford Balanced HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,036.40 | | | $ | 3.24 | | | $ | 1,000.00 | | | $ | 1,021.68 | | | $ | 3.22 | | | | 0.64 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,035.20 | | | $ | 4.50 | | | $ | 1,000.00 | | | $ | 1,020.44 | | | $ | 4.47 | | | | 0.89 | % | | | 182 | | | | 366 | |
Hartford Capital Appreciation HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 986.50 | | | $ | 3.31 | | | $ | 1,000.00 | | | $ | 1,021.53 | | | $ | 3.37 | | | | 0.67 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 985.00 | | | $ | 4.54 | | | $ | 1,000.00 | | | $ | 1,020.29 | | | $ | 4.62 | | | | 0.92 | % | | | 182 | | | | 366 | |
Class IC | | $ | 1,000.00 | | | $ | 983.70 | | | $ | 5.77 | | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 5.87 | | | | 1.17 | % | | | 182 | | | | 366 | |
Expense Examples (Unaudited) – (continued)
Hartford Disciplined Equity HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,023.70 | | | $ | 3.92 | | | $ | 1,000.00 | | | $ | 1,020.99 | | | $ | 3.92 | | | | 0.78 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,022.60 | | | $ | 5.18 | | | $ | 1,000.00 | | | $ | 1,019.74 | | | $ | 5.17 | | | | 1.03 | % | | | 182 | | | | 366 | |
Hartford Dividend and Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,040.70 | | | $ | 3.45 | | | $ | 1,000.00 | | | $ | 1,021.48 | | | $ | 3.42 | | | | 0.68 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,039.50 | | | $ | 4.72 | | | $ | 1,000.00 | | | $ | 1,020.24 | | | $ | 4.67 | | | | 0.93 | % | | | 182 | | | | 366 | |
Hartford Global Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 995.10 | | | $ | 4.07 | | | $ | 1,000.00 | | | $ | 1,020.79 | | | $ | 4.12 | | | | 0.82 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 993.80 | | | $ | 5.30 | | | $ | 1,000.00 | | | $ | 1,019.54 | | | $ | 5.37 | | | | 1.07 | % | | | 182 | | | | 366 | |
Hartford Growth Opportunities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 982.80 | | | $ | 3.20 | | | $ | 1,000.00 | | | $ | 1,021.63 | | | $ | 3.27 | | | | 0.65 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 981.30 | | | $ | 4.43 | | | $ | 1,000.00 | | | $ | 1,020.39 | | | $ | 4.52 | | | | 0.90 | % | | | 182 | | | | 366 | |
Class IC | | $ | 1,000.00 | | | $ | 980.00 | | | $ | 5.66 | | | $ | 1,000.00 | | | $ | 1,019.15 | | | $ | 5.77 | | | | 1.15 | % | | | 182 | | | | 366 | |
Expense Examples (Unaudited) – (continued)
Hartford Healthcare HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 935.70 | | | $ | 4.24 | | | $ | 1,000.00 | | | $ | 1,020.49 | | | $ | 4.42 | | | | 0.88 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 934.30 | | | $ | 5.43 | | | $ | 1,000.00 | | | $ | 1,019.24 | | | $ | 5.67 | | | | 1.13 | % | | | 182 | | | | 366 | |
Hartford High Yield HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,070.20 | | | $ | 4.01 | | | $ | 1,000.00 | | | $ | 1,020.99 | | | $ | 3.92 | | | | 0.78 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,068.60 | | | $ | 5.30 | | | $ | 1,000.00 | | | $ | 1,019.74 | | | $ | 5.17 | | | | 1.03 | % | | | 182 | | | | 366 | |
Hartford International Opportunities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 971.10 | | | $ | 3.68 | | | $ | 1,000.00 | | | $ | 1,021.13 | | | $ | 3.77 | | | | 0.75 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 969.40 | | | $ | 4.90 | | | $ | 1,000.00 | | | $ | 1,019.89 | | | $ | 5.02 | | | | 1.00 | % | | | 182 | | | | 366 | |
Hartford MidCap HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,029.40 | | | $ | 3.53 | | | $ | 1,000.00 | | | $ | 1,021.38 | | | $ | 3.52 | | | | 0.70 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,028.10 | | | $ | 4.79 | | | $ | 1,000.00 | | | $ | 1,020.14 | | | $ | 4.77 | | | | 0.95 | % | | | 182 | | | | 366 | |
Expense Examples (Unaudited) – (continued)
Hartford MidCap Value HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,009.70 | | | $ | 4.25 | | | $ | 1,000.00 | | | $ | 1,020.64 | | | $ | 4.27 | | | | 0.85 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,009.00 | | | $ | 5.49 | | | $ | 1,000.00 | | | $ | 1,019.39 | | | $ | 5.52 | | | | 1.10 | % | | | 182 | | | | 366 | |
Hartford Small Cap Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 992.40 | | | $ | 3.22 | | | $ | 1,000.00 | | | $ | 1,021.63 | | | $ | 3.27 | | | | 0.65 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 991.00 | | | $ | 4.46 | | | $ | 1,000.00 | | | $ | 1,020.39 | | | $ | 4.52 | | | | 0.90 | % | | | 182 | | | | 366 | |
Hartford Small Company HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 936.60 | | | $ | 3.61 | | | $ | 1,000.00 | | | $ | 1,021.13 | | | $ | 3.77 | | | | 0.75 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 935.60 | | | $ | 4.81 | | | $ | 1,000.00 | | | $ | 1,019.89 | | | $ | 5.02 | | | | 1.00 | % | | | 182 | | | | 366 | |
Hartford Small/Mid Cap Equity HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,009.40 | | | $ | 4.60 | | | $ | 1,000.00 | | | $ | 1,020.29 | | | $ | 4.62 | | | | 0.92 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,008.10 | | | $ | 5.84 | | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 5.87 | | | | 1.17 | % | | | 182 | | | | 366 | |
Expense Examples (Unaudited) – (continued)
Hartford Stock HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,055.90 | | | $ | 2.61 | | | $ | 1,000.00 | | | $ | 1,022.33 | | | $ | 2.56 | | | | 0.51 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,054.50 | | | $ | 3.88 | | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.82 | | | | 0.76 | % | | | 182 | | | | 366 | |
Hartford Total Return Bond HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,054.90 | | | $ | 2.61 | | | $ | 1,000.00 | | | $ | 1,022.33 | | | $ | 2.56 | | | | 0.51 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,053.40 | | | $ | 3.88 | | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.82 | | | | 0.76 | % | | | 182 | | | | 366 | |
Hartford Ultrashort Bond HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,006.00 | | | $ | 2.19 | | | $ | 1,000.00 | | | $ | 1,022.68 | | | $ | 2.21 | | | | 0.44 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,005.00 | | | $ | 3.44 | | | $ | 1,000.00 | | | $ | 1,021.43 | | | $ | 3.47 | | | | 0.69 | % | | | 182 | | | | 366 | |
Hartford U.S. Government Securities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,036.80 | | | $ | 2.53 | | | $ | 1,000.00 | | | $ | 1,022.38 | | | $ | 2.51 | | | | 0.50 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,034.90 | | | $ | 3.79 | | | $ | 1,000.00 | | | $ | 1,021.13 | | | $ | 3.77 | | | | 0.75 | % | | | 182 | | | | 366 | |
Expense Examples (Unaudited) – (continued)
Hartford Value HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | | Beginning
Account
Value
January 1,
2016 | | | Ending
Account
Value
June 30,
2016 | | | Expenses paid
during the period
January 1, 2016
through June 30,
2016 | | |
Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,042.40 | | | $ | 4.01 | | | $ | 1,000.00 | | | $ | 1,020.94 | | | $ | 3.97 | | | | 0.79 | % | | | 182 | | | | 366 | |
Class IB | | $ | 1,000.00 | | | $ | 1,041.10 | | | $ | 5.28 | | | $ | 1,000.00 | | | $ | 1,019.69 | | | $ | 5.22 | | | | 1.04 | % | | | 182 | | | | 366 | |
|
| Hartford Balanced HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 61.6% | |
| | | | | | | Banks - 5.6% | |
| | | | | 560,390 | | | Citigroup, Inc. | | $ | 23,754,932 | |
| | | | | 611,670 | | | JP Morgan Chase & Co. | | | 38,009,174 | |
| | | | | 111,320 | | | M&T Bank Corp. | | | 13,161,363 | |
| | | | | 297,130 | | | PNC Financial Services Group, Inc. | | | 24,183,411 | |
| | | | | 787,560 | | | Wells Fargo & Co. | | | 37,275,215 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 136,384,095 | |
| | | | | | | | | | | | |
| | | | | | | Capital Goods - 4.9% | |
| | | | | 207,630 | | | 3M Co. | | | 36,360,165 | |
| | | | | 369,860 | | | Eaton Corp. plc | | | 22,091,738 | |
| | | | | 409,630 | | | Fortune Brands Home & Security, Inc. | | | 23,746,251 | |
| | | | | 318,510 | | | Ingersoll-Rand plc | | | 20,282,717 | |
| | | | | 155,720 | | | United Technologies Corp. | | | 15,969,086 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 118,449,957 | |
| | | | | | | | | | | | |
| | | | | | | Commercial & Professional Services - 0.7% | |
| | | | | 304,150 | | | Nielsen Holdings plc | | | 15,806,676 | |
| | | | | | | | | | | | |
| | | | | | | Consumer Durables & Apparel - 0.8% | |
| | | | | 159,900 | | | NIKE, Inc. Class B | | | 8,826,480 | |
| | | | | 116,550 | | | PVH Corp. | | | 10,982,506 | |
| | | | | | | | | | | | |
| | | | | | | | | 19,808,986 | |
| | | | | | | | | | | | |
| | | | | | | Consumer Services - 1.5% | |
| | | | | 525,200 | | | Hilton Worldwide Holdings, Inc. | | | 11,832,756 | |
| | | | | 89,560 | | | McDonald’s Corp. | | | 10,777,650 | |
| | | | | 340,120 | | | Norwegian Cruise Line Holdings Ltd.* | | | 13,550,381 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 36,160,787 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financials - 2.3% | |
| | | | | 81,170 | | | Ameriprise Financial, Inc. | | | 7,293,125 | |
| | | | | 65,100 | | | BlackRock, Inc. | | | 22,298,703 | |
| | | | | 86,290 | | | Goldman Sachs Group, Inc. | | | 12,820,968 | |
| | | | | 506,700 | | | Invesco Ltd. | | | 12,941,118 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 55,353,914 | |
| | | | | | | | | | | | |
| | | | | | | Energy - 4.5% | |
| | | | | 165,760 | | | Anadarko Petroleum Corp. | | | 8,826,720 | |
| | | | | 198,960 | | | Chevron Corp. | | | 20,856,977 | |
| | | | | 153,830 | | | EOG Resources, Inc. | | | 12,832,499 | |
| | | | | 285,410 | | | Exxon Mobil Corp. | | | 26,754,333 | |
| | | | | 359,570 | | | Halliburton Co. | | | 16,284,925 | |
| | | | | 580,660 | | | Marathon Oil Corp. | | | 8,715,707 | |
| | | | | 179,670 | | | Occidental Petroleum Corp. | | | 13,575,865 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 107,847,026 | |
| | | | | | | | | | | | |
| | | | | | | Food & Staples Retailing - 1.2% | |
| | | | | 297,380 | | | CVS Health Corp. | | | 28,471,161 | |
| | | | | | | | | | | | |
| | | | | | | Food, Beverage & Tobacco - 3.9% | | | |
| | | | | 108,230 | | | Anheuser-Busch InBev N.V. ADR | | | 14,251,726 | |
| | | | | 317,488 | | | British American Tobacco plc | | | 20,582,432 | |
| | | | | 402,450 | | | Coca-Cola Co. | | | 18,243,059 | |
| | | | | 237,856 | | | Kraft Heinz Co. | | | 21,045,499 | |
| | | | | 453,380 | | | Mondelez International, Inc. Class A | | | 20,633,324 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 94,756,040 | |
| | | | | | | | | | | | |
| | | | | | | Health Care Equipment & Services - 3.5% | |
| | | | | 212,960 | | | Baxter International, Inc. | | | 9,630,051 | |
| | | | | 486,095 | | | Medtronic plc | | | 42,178,463 | |
| | | | | 236,460 | | | UnitedHealth Group, Inc. | | | 33,388,152 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 85,196,666 | |
| | | | | | | | | | | | |
| | | | | | | Household & Personal Products - 0.6% | | | |
| | | | | 170,110 | | | Estee Lauder Cos., Inc. Class A | | | 15,483,412 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 2.6% | | | |
| | | | | 361,430 | | | American International Group, Inc. | | | 19,116,033 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 61.6% - (continued) | |
| | | | | | | Insurance - 2.6% - (continued) | | | |
| | | | | 546,340 | | | Marsh & McLennan Cos., Inc. | | $ | 37,402,436 | |
| | | | | 233,480 | | | Unum Group | | | 7,422,329 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 63,940,798 | |
| | | | | | | | | | | | |
| | | | | | | Materials - 1.6% | | | |
| | | | | 401,710 | | | Dow Chemical Co. | | | 19,969,004 | |
| | | | | 219,090 | | | International Paper Co. | | | 9,285,034 | |
| | | | | 205,100 | | | Nucor Corp. | | | 10,133,991 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 39,388,029 | |
| | | | | | | | | | | | |
| | | | | | | Media - 2.3% | |
| | | | | 369,980 | | | CBS Corp. Class B | | | 20,141,711 | |
| | | | | 306,990 | | | Comcast Corp. Class A | | | 20,012,678 | |
| | | | | 377,870 | | | Thomson Reuters Corp. | | | 15,273,506 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 55,427,895 | |
| | | | | | | | | | | | |
| | | | | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.5% | |
| | | | | 100,140 | | | Allergan plc* | | | 23,141,353 | |
| | | | | 146,430 | | | Amgen, Inc. | | | 22,279,325 | |
| | | | | 530,660 | | | AstraZeneca plc ADR | | | 16,020,625 | |
| | | | | 515,080 | | | Bristol-Myers Squibb Co. | | | 37,884,134 | |
| | | | | 178,200 | | | Eisai Co., Ltd. | | | 9,949,992 | |
| | | | | 160,910 | | | Gilead Sciences, Inc. | | | 13,423,112 | |
| | | | | 676,110 | | | Merck & Co., Inc. | | | 38,950,697 | |
| | | | | 69,245 | | | Roche Holding AG | | | 18,272,355 | |
| | | | | 202,582 | | | UCB S.A. | | | 15,211,349 | |
| | | | | 132,600 | | | Vertex Pharmaceuticals, Inc.* | | | 11,406,252 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 206,539,194 | |
| | | | | | | | | | | | |
| | | | | | | Retailing - 3.2% | | | |
| | | | | 11,702,200 | | | Allstar Co.*(1)(2)(3) | | | 11,117,090 | |
| | | | | 178,120 | | | Dollar General Corp. | | | 16,743,280 | |
| | | | | 243,890 | | | Home Depot, Inc. | | | 31,142,314 | |
| | | | | 424,700 | | | Liberty Interactive Corp. QVC Group Class A* | | | 10,774,639 | |
| | | | | 163,241 | | | Tory Burch LLC*(1)(2)(3) | | | 8,947,215 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 78,724,538 | |
| | | | | | | | | | | | |
| | | | | | | Semiconductors & Semiconductor Equipment - 2.8% | |
| | | | | 282,130 | | | Analog Devices, Inc. | | | 15,979,843 | |
| | | | | 926,730 | | | Intel Corp. | | | 30,396,744 | |
| | | | | 619,200 | | | Maxim Integrated Products, Inc. | | | 22,099,248 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 68,475,835 | |
| | | | | | | | | | | | |
| | | | | | | Software & Services - 5.5% | |
| | | | | 57,545 | | | Alphabet, Inc. Class C* | | | 39,826,895 | |
| | | | | 305,900 | | | Cognizant Technology Solutions Corp. Class A* | | | 17,509,716 | |
| | | | | 487,400 | | | Genpact Ltd.* | | | 13,081,816 | |
| | | | | 1,000,650 | | | Microsoft Corp. | | | 51,203,260 | |
| | | | | 566,020 | | | Symantec Corp. | | | 11,626,051 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 133,247,738 | |
| | | | | | | | | | | | |
| | | | | | | Technology Hardware & Equipment - 2.9% | | | |
| | | | | 202,660 | | | Apple, Inc. | | | 19,374,296 | |
| | | | | 1,756,730 | | | Cisco Systems, Inc. | | | 50,400,584 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 69,774,880 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunication Services - 0.4% | |
| | | | | 184,490 | | | Verizon Communications, Inc. | | | 10,301,922 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.7% | |
| | | | | 180,540 | | | Union Pacific Corp. | | | 15,752,115 | |
| | | | | | | | | | | | |
| | | | | | | Utilities - 1.6% | |
| | | | | 288,240 | | | NextEra Energy, Inc. | | | 37,586,496 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Common Stocks
(cost $1,111,157,099) | | $ | 1,492,878,160 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 2.8% | |
| | | | | | | Asset-Backed - Automobile - 0.7% | |
| | $ | | | | 225,000 | | | CarMax Auto Owner Trust
1.95%, 09/16/2019 | | $ | 225,887 | |
| | | | | 2,320,000 | | | Chesapeake Funding II LLC
1.45%, 06/15/2028(3)(4) | | | 2,320,000 | |
| | | | | 837,308 | | | Chesapeake Funding LLC
0.97%, 02/07/2027(3)(4) | | | 835,109 | |
| | | | | 1,245,000 | | | Drive Auto Receivables Trust
2.12%, 06/17/2019(3) | | | 1,247,548 | |
| | | | | 780,277 | | | Exeter Automobile Receivables Trust
1.54%, 11/15/2019(3) | | | 778,349 | |
| | | | | 1,625,000 | | | First Investors Auto Owner Trust
1.67%, 11/16/2020(3) | | | 1,627,361 | |
| | | | | 515,000 | | | Hyundai Automotive Receivables Trust
2.48%, 03/15/2019 | | | 522,116 | |
| | | | | 600,000 | | | Prestige Automotive Receivables Trust
1.91%, 04/15/2020(3) | | | 596,041 | |
| | | | | | | | Santander Drive Auto Receivables Trust | | | | |
| | | | | 1,630,000 | | | 1.97%, 11/15/2019 | | | 1,635,977 | |
| | | | | 675,000 | | | 2.25%, 06/17/2019 | | | 679,252 | |
| | | | | 400,000 | | | 2.33%, 11/15/2019 | | | 403,081 | |
| | | | | 2,420,000 | | | 2.36%, 04/15/2020 | | | 2,433,940 | |
| | | | | 655,000 | | | 2.57%, 03/15/2019 | | | 658,176 | |
| | | | | | | | Westlake Automobile Receivables Trust | | | | |
| | | | | 41,531 | | | 0.97%, 10/16/2017(3) | | | 41,525 | |
| | | | | 730,000 | | | 1.57%, 06/17/2019(3) | | | 730,000 | |
| | | | | 1,355,000 | | | 1.83%, 01/15/2021(3) | | | 1,354,483 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,088,845 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Credit Card - 0.3% | |
| | | | | 3,275,000 | | | Evergreen Credit Card Trust Series
1.16%, 04/15/2020(3)(4) | | | 3,276,178 | |
| | | | | 4,330,000 | | | Trillium Credit Card Trust II
1.19%, 05/26/2021(3)(4) | | | 4,325,886 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,602,064 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Finance & Insurance - 0.8% | |
| | | | | | | | Ally Master Owner Trust | | | | |
| | | | | 4,885,000 | | | 1.54%, 09/15/2019 | | | 4,900,342 | |
| | | | | 4,890,000 | | | 1.60%, 10/15/2019 | | | 4,912,329 | |
| | | | | 430,000 | | | Ford Credit Floorplan Master Owner Trust
2.09%, 03/15/2022(3) | | | 438,581 | |
| | | | | 1,260,000 | | | Green Tree Agency Advance Funding Trust
2.30%, 10/15/2046(3) | | | 1,259,156 | |
| | | | | | | | MMAF Equipment Finance LLC | | | | |
| | | | | 1,345,000 | | | 1.39%, 12/17/2018(3) | | | 1,346,317 | |
| | | | | 1,000,000 | | | 2.21%, 12/15/2032(3) | | | 1,008,867 | |
| | | | | | | | OneMain Financial Issuance Trust | | | | |
| | | | | 440,000 | | | 3.66%, 02/20/2029(3) | | | 451,132 | |
| | | | | 870,000 | | | 4.10%, 03/20/2028(3) | | | 896,058 | |
| | | | | 1,565,000 | | | SBA Tower Trust
2.90%, 10/15/2044(3) | | | 1,586,730 | |
| | | | | | | | Springleaf Funding Trust | | | | |
| | | | | 1,765,000 | | | 3.16%, 11/15/2024(3) | | | 1,775,440 | |
| | | | | 755,000 | | | 3.48%, 05/15/2028(3) | | | 754,138 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,329,090 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Home Equity - 0.0% | |
| | | | | 7,906 | | | New Century Home Equity Loan Trust
1.03%, 03/25/2035(4) | | | 7,894 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 2.8% - (continued) | |
| | | | Commercial Mortgage - Backed Securities - 1.0% | |
| | $ | | | | 1,575,000 | | | Commercial Mortgage Trust
3.18%, 02/10/2048 | | $ | 1,665,683 | |
| | | | | | | | CSAIL Commercial Mortgage Trust | | | | |
| | | | | 3,200,000 | | | 3.50%, 06/15/2057 | | | 3,445,489 | |
| | | | | 3,400,000 | | | 3.51%, 04/15/2050 | | | 3,674,202 | |
| | | | | 1,765,000 | | | Hilton USA Trust
2.66%, 11/05/2030(3) | | | 1,772,536 | |
| | | | | | | | JP Morgan Chase Commercial Mortgage Securities Trust | | | | |
| | | | | 710,000 | | | 3.91%, 01/15/2049 | | | 792,155 | |
| | | | | 2,305,737 | | | 5.89%, 02/12/2049(4) | | | 2,357,357 | |
| | | | | 893,791 | | | LB-UBS Commercial Mortgage Trust
6.25%, 04/15/2041(4) | | | 942,157 | |
| | | | | 3,362,840 | | | Merrill Lynch/Countrywide Commercial Mortgage Trust
5.81%, 06/12/2050(4) | | | 3,461,247 | |
| | | | | 3,100,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust
3.31%, 04/15/2048 | | | 3,297,358 | |
| | | | | 2,500,000 | | | SFAVE Commercial Mortgage Securities Trust
4.14%, 01/05/2043(3)(4) | | | 2,490,221 | |
| | | | | 1,593,466 | | | Wachovia Bank Commercial Mortgage Trust
5.31%, 11/15/2048 | | | 1,600,294 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,498,699 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $68,520,167) | | $ | 68,526,592 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 19.2% | |
| | | | | | | Advertising - 0.0% | |
| | | | | 1,065,000 | | | Omnicom Group, Inc.
3.60%, 04/15/2026 | | $ | 1,121,691 | |
| | | | | | | | | | | | |
| | | | | | | Aerospace/Defense - 0.2% | |
| | | | | 850,000 | | | BAE Systems Holdings, Inc.
3.85%, 12/15/2025(3) | | | 900,951 | |
| | | | | | | | Lockheed Martin Corp. | | | | |
| | | | | 470,000 | | | 2.50%, 11/23/2020 | | | 484,977 | |
| | | | | 1,625,000 | | | 4.07%, 12/15/2042 | | | 1,729,949 | |
| | | | | 256,000 | | | 4.50%, 05/15/2036 | | | 285,751 | |
| | | | | 640,000 | | | 4.70%, 05/15/2046 | | | 754,413 | |
| | | | | 560,000 | | | 4.85%, 09/15/2041 | | | 654,081 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,810,122 | |
| | | | | | | | | | | | |
| | | | | | | Agriculture - 0.4% | |
| | | | | | | | Altria Group, Inc. | | | | |
| | | | | 880,000 | | | 4.50%, 05/02/2043 | | | 993,304 | |
| | | | | 1,995,000 | | | 4.75%, 05/05/2021 | | | 2,275,555 | |
| | | | | | | | BAT International Finance plc | | | | |
| | | | | 685,000 | | | 2.75%, 06/15/2020(3) | | | 710,311 | |
| | | | | 2,775,000 | | | 3.25%, 06/07/2022(3) | | | 2,939,766 | |
| | | | | 290,000 | | | 3.50%, 06/15/2022(3) | | | 311,131 | |
| | | | | 1,065,000 | | | Imperial Tobacco Finance plc
3.75%, 07/21/2022(3) | | | 1,123,891 | |
| | | | | 270,000 | | | Philip Morris International, Inc.
5.65%, 05/16/2018 | | | 293,308 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,647,266 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Airlines - 0.4% | |
| | $ | | | | 3,197,578 | | | Continental Airlines, Inc.
5.98%, 10/19/2023 | | $ | 3,581,287 | |
| | | | | | | | Southwest Airlines Co. | | | | |
| | | | | 2,700,000 | | | 5.75%, 12/15/2016 | | | 2,752,267 | |
| | | | | 2,392,399 | | | 6.15%, 02/01/2024 | | | 2,714,081 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,047,635 | |
| | | | | | | | | | | | |
| | | | | | | Auto Manufacturers - 0.6% | |
| | | | | | | | Daimler Finance North America LLC | | | | |
| | | | | 150,000 | | | 2.25%, 07/31/2019(3) | | | 153,836 | |
| | | | | 5,600,000 | | | 2.63%, 09/15/2016(3) | | | 5,618,424 | |
| | | | | | | | Ford Motor Credit Co. LLC | | | | |
| | | | | 2,985,000 | | | 2.38%, 03/12/2019 | | | 3,026,868 | |
| | | | | 1,955,000 | | | 3.16%, 08/04/2020 | | | 2,026,973 | |
| | | | | | | | General Motors Financial Co., Inc. | | | | |
| | | | | 1,400,000 | | | 3.70%, 05/09/2023 | | | 1,407,273 | |
| | | | | 1,785,000 | | | 4.20%, 03/01/2021 | | | 1,867,381 | |
| | | | | 580,000 | | | Volkswagen Group of America Finance LLC
2.45%, 11/20/2019(3) | | | 589,907 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,690,662 | |
| | | | | | | | | | | | |
| | | | | | | Beverages - 0.7% | |
| | | | | | | | Anheuser-Busch InBev Finance, Inc. | | | | |
| | | | | 3,200,000 | | | 3.30%, 02/01/2023 | | | 3,371,744 | |
| | | | | 2,075,000 | | | 3.65%, 02/01/2026 | | | 2,222,836 | |
| | | | | 2,360,000 | | | 4.70%, 02/01/2036 | | | 2,651,998 | |
| | | | | 280,000 | | | 4.90%, 02/01/2046 | | | 328,116 | |
| | | | | | | | Anheuser-Busch InBev Worldwide, Inc. | | | | |
| | | | | 480,000 | | | 3.75%, 07/15/2042 | | | 480,279 | |
| | | | | 3,205,000 | | | 7.75%, 01/15/2019 | | | 3,707,881 | |
| | | | | | | | Coca-Cola Femsa S.A.B. de C.V. | | | | |
| | | | | 1,176,000 | | | 2.38%, 11/26/2018 | | | 1,198,620 | |
| | | | | 1,300,000 | | | 3.88%, 11/26/2023 | | | 1,393,449 | |
| | | | | | | | Heineken N.V. | | | | |
| | | | | 790,000 | | | 2.75%, 04/01/2023(3) | | | 808,687 | |
| | | | | 50,000 | | | 4.00%, 10/01/2042(3) | | | 51,135 | |
| | | | | | | | Molson Coors Brewing Co. | | | | |
| | | | | 765,000 | | | 3.50%, 05/01/2022 | | | 811,692 | |
| | | | | 215,000 | | | 5.00%, 05/01/2042 | | | 240,961 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,267,398 | |
| | | | | | | | | | | | |
| | | | | | | Biotechnology - 0.2% | |
| | | | | 1,340,000 | | | Biogen, Inc.
2.90%, 09/15/2020 | | | 1,396,491 | |
| | | | | | | | Celgene Corp. | | | | |
| | | | | 230,000 | | | 2.25%, 05/15/2019 | | | 233,834 | |
| | | | | 770,000 | | | 3.55%, 08/15/2022 | | | 806,709 | |
| | | | | 535,000 | | | 3.63%, 05/15/2024 | | | 557,177 | |
| | | | | | | | Gilead Sciences, Inc. | | | | |
| | | | | 335,000 | | | 2.55%, 09/01/2020 | | | 348,095 | |
| | | | | 930,000 | | | 3.70%, 04/01/2024 | | | 1,007,065 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,349,371 | |
| | | | | | | | | | | | |
| | | | | | | Chemicals - 0.2% | |
| | | | | 2,750,000 | | | Agrium, Inc.
3.15%, 10/01/2022 | | | 2,801,021 | |
| | | | | 1,145,000 | | | LyondellBasell Industries N.V.
4.63%, 02/26/2055 | | | 1,117,471 | |
| | | | | 300,000 | | | Monsanto Co.
4.70%, 07/15/2064 | | | 273,269 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,191,761 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Commercial Banks - 4.6% | |
| | $ | | | | 4,300,000 | | | American Express Centurion Bank
6.00%, 09/13/2017 | | $ | 4,530,063 | |
| | | | | | | | Bank of America Corp. | | | | |
| | | | | 1,220,000 | | | 2.63%, 10/19/2020 | | | 1,239,443 | |
| | | | | 2,950,000 | | | 4.20%, 08/26/2024 | | | 3,049,468 | |
| | | | | 1,655,000 | | | 5.00%, 05/13/2021 | | | 1,853,069 | |
| | | | | 1,000,000 | | | 6.40%, 08/28/2017 | | | 1,055,164 | |
| | | | | 6,000,000 | | | 6.88%, 04/25/2018 | | | 6,550,482 | |
| | | | | 2,020,000 | | | Bank of New York Mellon Corp.
2.15%, 02/24/2020 | | | 2,059,315 | |
| | | | | 2,830,000 | | | Banque Federative du Credit Mutuel S.A.
2.75%, 10/15/2020(3) | | | 2,924,262 | |
| | | | | 800,000 | | | Barclays Bank plc
6.05%, 12/04/2017(3) | | | 837,786 | |
| | | | | 2,075,000 | | | BNP Paribas S.A.
2.40%, 12/12/2018 | | | 2,115,525 | |
| | | | | | | | BPCE S.A. | | | | |
| | | | | 365,000 | | | 2.50%, 12/10/2018 | | | 374,281 | |
| | | | | 1,075,000 | | | 4.00%, 04/15/2024 | | | 1,171,610 | |
| | | | | 1,475,000 | | | 5.15%, 07/21/2024(3) | | | 1,534,892 | |
| | | | | | | | Capital One Financial Corp. | | | | |
| | | | | 2,875,000 | | | 3.75%, 04/24/2024 | | | 2,999,447 | |
| | | | | 815,000 | | | 4.20%, 10/29/2025 | | | 837,854 | |
| | | | | | | | Citigroup, Inc. | | | | |
| | | | | 1,220,000 | | | 2.50%, 07/29/2019 | | | 1,242,729 | |
| | | | | 1,000,000 | | | 4.95%, 11/07/2043 | | | 1,133,392 | |
| | | | | 690,000 | | | 5.30%, 05/06/2044 | | | 745,026 | |
| | | | | 290,000 | | | 8.13%, 07/15/2039 | | | 452,294 | |
| | | | | 1,695,000 | | | Citizens Bank NA
2.55%, 05/13/2021 | | | 1,711,367 | |
| | | | | 505,000 | | | Compass Bank
2.75%, 09/29/2019 | | | 498,718 | |
| | | | | | | | Credit Agricole S.A. | | | | |
| | | | | 950,000 | | | 2.50%, 04/15/2019(3) | | | 971,859 | |
| | | | | 790,000 | | | 4.38%, 03/17/2025(3) | | | 798,284 | |
| | | | | 855,000 | | | Credit Suisse AG
3.00%, 10/29/2021 | | | 875,775 | |
| | | | | | | | Credit Suisse Group Funding Guernsey Ltd. | | | | |
| | | | | 1,425,000 | | | 3.75%, 03/26/2025 | | | 1,394,724 | |
| | | | | 1,885,000 | | | 3.80%, 09/15/2022 | | | 1,893,147 | |
| | | | | | | | Credit Suisse New York | | | | |
| | | | | 945,000 | | | 2.30%, 05/28/2019 | | | 957,651 | |
| | | | | 250,000 | | | 3.63%, 09/09/2024 | | | 258,642 | |
| | | | | | | | Goldman Sachs Group, Inc. | | | | |
| | | | | 3,335,000 | | | 2.38%, 01/22/2018 | | | 3,379,822 | |
| | | | | 1,700,000 | | | 6.15%, 04/01/2018 | | | 1,831,741 | |
| | | | | 2,590,000 | | | 6.25%, 02/01/2041 | | | 3,351,729 | |
| | | | | | | | HSBC Holdings plc | | | | |
| | | | | 1,030,000 | | | 3.40%, 03/08/2021 | | | 1,061,337 | |
| | | | | 4,625,000 | | | 3.60%, 05/25/2023 | | | 4,726,611 | |
| | | | | | | | Huntington National Bank | | | | |
| | | | | 2,120,000 | | | 2.20%, 11/06/2018 | | | 2,145,953 | |
| | | | | 760,000 | | | 2.20%, 04/01/2019 | | | 767,021 | |
| | | | | 1,490,000 | | | 2.40%, 04/01/2020 | | | 1,512,307 | |
| | | | | 5,200,000 | | | ING Bank N.V.
3.75%, 03/07/2017(3) | | | 5,289,804 | |
| | | | | | | | JP Morgan Chase & Co. | | | | |
| | | | | 2,240,000 | | | 3.25%, 09/23/2022 | | | 2,341,752 | |
| | | | | 2,000,000 | | | 4.95%, 03/25/2020 | | | 2,210,768 | |
| | | | | 705,000 | | | 5.40%, 01/06/2042 | | | 876,601 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Commercial Banks - 4.6% - (continued) | |
| | $ | | | | 2,600,000 | | | Korea Development Bank
2.50%, 03/11/2020 | | $ | 2,674,760 | |
| | | | | 470,000 | | | Macquarie Bank Ltd.
2.40%, 01/21/2020(3) | | | 474,496 | |
| | | | | | | | Morgan Stanley | | | | |
| | | | | 4,875,000 | | | 2.50%, 01/24/2019 | | | 4,973,519 | |
| | | | | 1,000,000 | | | 3.70%, 10/23/2024 | | | 1,046,374 | |
| | | | | 515,000 | | | 4.30%, 01/27/2045 | | | 542,061 | |
| | | | | 250,000 | | | 5.63%, 09/23/2019 | | | 277,377 | |
| | | | | 4,250,000 | | | National City Corp.
6.88%, 05/15/2019 | | | 4,790,404 | |
| | | | | 4,795,000 | | | Santander Bank NA
8.75%, 05/30/2018 | | | 5,339,885 | |
| | | | | 1,800,000 | | | Santander Issuances SAU
5.18%, 11/19/2025 | | | 1,798,259 | |
| | | | | | | | Santander UK plc | | | | |
| | | | | 2,200,000 | | | 2.50%, 03/14/2019 | | | 2,222,447 | |
| | | | | 2,150,000 | | | 5.00%, 11/07/2023(3) | | | 2,206,973 | |
| | | | | 640,000 | | | SunTrust Bank
3.30%, 05/15/2026 | | | 645,209 | |
| | | | | | | | UBS Group Funding Jersey Ltd. | | | | |
| | | | | 1,665,000 | | | 2.95%, 09/24/2020(3) | | | 1,693,253 | |
| | | | | 1,900,000 | | | 3.00%, 04/15/2021(3) | | | 1,937,905 | |
| | | | | 1,000,000 | | | Wachovia Corp.
5.75%, 06/15/2017 | | | 1,043,021 | |
| | | | | 4,344,000 | | | Wells Fargo & Co.
4.48%, 01/16/2024 | | | 4,761,641 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 111,989,299 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Services - 0.3% | |
| | | | | 765,000 | | | Catholic Health Initiatives
2.60%, 08/01/2018 | | | 779,648 | |
| | | | | | | | ERAC USA Finance LLC | | | | |
| | | | | 655,000 | | | 2.35%, 10/15/2019(3) | | | 667,366 | |
| | | | | 340,000 | | | 2.75%, 03/15/2017(3) | | | 343,366 | |
| | | | | 1,800,000 | | | 4.50%, 08/16/2021(3) | | | 1,993,554 | |
| | | | | 1,500,000 | | | 5.63%, 03/15/2042(3) | | | 1,818,649 | |
| | | | | 2,545,000 | | | Total System Services, Inc.
3.80%, 04/01/2021 | | | 2,694,580 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,297,163 | |
| | | | | | | | | | | | |
| | | | | | | Country Funds-Closed-end - 0.1% | |
| | | | | 2,475,000 | | | CDP Financial, Inc.
4.40%, 11/25/2019(3) | | | 2,723,780 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financial Services - 1.2% | |
| | | | | 1,655,000 | | | Capital One Bank USA NA
2.15%, 11/21/2018 | | | 1,666,706 | |
| | | | | 3,620,000 | | | Discover Financial Services
6.45%, 06/12/2017 | | | 3,764,224 | |
| | | | | 614,000 | | | Eaton Vance Corp.
6.50%, 10/02/2017 | | | 648,208 | |
| | | | | | | | GE Capital International Funding Co. | | | | |
| | | | | 1,989,000 | | | 2.34%, 11/15/2020(3) | | | 2,048,990 | |
| | | | | 4,172,000 | | | 4.42%, 11/15/2035(3) | | | 4,679,257 | |
| | | | | 1,910,000 | | | LeasePlan Corp. N.V.
2.88%, 01/22/2019(3) | | | 1,910,909 | |
| | | | | 9,584,399 | | | Postal Square L.P.
8.95%, 06/15/2022 | | | 11,705,791 | |
| | | | | | | | Synchrony Financial | | | | |
| | | | | 2,045,000 | | | 2.60%, 01/15/2019 | | | 2,067,379 | |
| | | | | 520,000 | | | 2.70%, 02/03/2020 | | | 521,423 | |
| | | | | 355,000 | | | 3.00%, 08/15/2019 | | | 360,917 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,373,804 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Electric - 1.5% | |
| | $ | | | | 1,700,000 | | | Berkshire Hathaway Energy Co.
4.50%, 02/01/2045 | | $ | 1,908,323 | |
| | | | | 2,605,000 | | | Consolidated Edison Co. of New York, Inc.
5.30%, 12/01/2016 | | | 2,649,819 | |
| | | | | | | | Dominion Resources, Inc. | | | | |
| | | | | 725,000 | | | 2.96%, 07/01/2019 | | | 738,075 | |
| | | | | 2,850,000 | | | 3.63%, 12/01/2024 | | | 2,997,621 | |
| | | | | 1,750,000 | | | 4.10%, 04/01/2021 | | | 1,851,910 | |
| | | | | 1,200,000 | | | Duke Energy Carolinas LLC
6.10%, 06/01/2037 | | | 1,582,226 | |
| | | | | 2,375,000 | | | Electricite de France S.A.
5.63%, 01/22/2024(3)(4)(5) | | | 2,262,187 | |
| | | | | 365,000 | | | Emera US Finance L.P.
2.70%, 06/15/2021(3) | | | 371,949 | |
| | | | | 285,000 | | | Eversource Energy
3.15%, 01/15/2025 | | | 297,228 | |
| | | | | 1,275,000 | | | Indianapolis Power and Light Co.
6.60%, 06/01/2037(3) | | | 1,728,996 | |
| | | | | 4,750,000 | | | NextEra Energy Capital Holdings, Inc.
2.06%, 09/01/2017 | | | 4,783,369 | |
| | | | | 340,000 | | | NiSource Finance Corp.
4.80%, 02/15/2044 | | | 389,943 | |
| | | | | | | | Oncor Electric Delivery Co. LLC | | | | |
| | | | | 385,000 | | | 2.95%, 04/01/2025 | | | 400,597 | |
| | | | | 1,185,000 | | | 4.10%, 06/01/2022 | | | 1,313,658 | |
| | | | | | | | Pacific Gas & Electric Co. | | | | |
| | | | | 695,000 | | | 3.85%, 11/15/2023 | | | 761,782 | |
| | | | | 435,000 | | | 5.13%, 11/15/2043 | | | 524,494 | |
| | | | | 4,000,000 | | | Southern California Edison Co.
5.55%, 01/15/2037 | | | 5,127,100 | |
| | | | | | | | Southern Co. | | | | |
| | | | | 1,450,000 | | | 2.75%, 06/15/2020 | | | 1,502,825 | |
| | | | | 2,050,000 | | | 2.95%, 07/01/2023 | | | 2,125,028 | |
| | | | | 1,795,000 | | | State Grid Overseas Investment Ltd.
2.75%, 05/07/2019(3) | | | 1,848,645 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 35,165,775 | |
| | | | | | | | | | | | |
| | | | | | | Engineering & Construction - 0.1% | |
| | | | | 1,235,000 | | | SBA Tower Trust
2.88%, 07/15/2046(3)(6) | | | 1,234,629 | |
| | | | | | | | | | | | |
| | | | | | | Food - 0.3% | |
| | | | | | | | Kraft Heinz Foods Co. | | | | |
| | | | | 555,000 | | | 2.25%, 06/05/2017 | | | 560,089 | |
| | | | | 2,030,000 | | | 3.50%, 07/15/2022(3) | | | 2,155,984 | |
| | | | | 490,000 | | | 4.38%, 06/01/2046(3) | | | 518,186 | |
| | | | | | | | Kroger Co. | | | | |
| | | | | 620,000 | | | 3.30%, 01/15/2021 | | | 658,937 | |
| | | | | 1,065,000 | | | 4.00%, 02/01/2024 | | | 1,181,028 | |
| | | | | 225,000 | | | Mondelez International, Inc.
4.00%, 02/01/2024 | | | 246,075 | |
| | | | | 880,000 | | | Sigma Alimentos S.A. de CV
4.13%, 05/02/2026(3) | | | 889,900 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,210,199 | |
| | | | | | | | | | | | |
| | | | | | | Gas - 0.3% | |
| | | | | 5,875,000 | | | Atmos Energy Corp.
6.35%, 06/15/2017 | | | 6,157,000 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 0.1% | |
| | | | | | | | Medtronic, Inc. | | | | |
| | | | | 545,000 | | | 2.50%, 03/15/2020 | | | 565,226 | |
| | | | | 775,000 | | | 3.15%, 03/15/2022 | | | 827,056 | |
| | | | | 1,230,000 | | | 3.50%, 03/15/2025 | | | 1,340,854 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Healthcare-Products - 0.1% - (continued) | |
| | $ | | | | 310,000 | | | 3.63%, 03/15/2024 | | $ | 341,194 | |
| | | | | 192,000 | | | 4.38%, 03/15/2035 | | | 217,179 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,291,509 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 0.5% | |
| | | | | | | | Aetna, Inc. | | | | |
| | | | | 945,000 | | | 2.80%, 06/15/2023 | | | 965,321 | |
| | | | | 725,000 | | | 4.25%, 06/15/2036 | | | 749,052 | |
| | | | | 421,000 | | | Anthem, Inc.
3.30%, 01/15/2023 | | | 434,861 | |
| | | | | 2,125,000 | | | Cigna Corp.
3.25%, 04/15/2025 | | | 2,158,346 | |
| | | | | | | | Dignity Health | | | | |
| | | | | 180,000 | | | 2.64%, 11/01/2019 | | | 185,548 | |
| | | | | 380,000 | | | 3.81%, 11/01/2024 | | | 405,689 | |
| | | | | | | | Kaiser Foundation Hospitals | | | | |
| | | | | 521,000 | | | 3.50%, 04/01/2022 | | | 560,362 | |
| | | | | 670,000 | | | 4.88%, 04/01/2042 | | | 800,994 | |
| | | | | 530,000 | | | Memorial Sloan-Kettering Cancer Center 4.20%, 07/01/2055 | | | 599,127 | |
| | | | | 500,000 | | | New York-Presbyterian Hospital 4.02%, 08/01/2045 | | | 544,762 | |
| | | | | 1,120,000 | | | Toledo Hospital
4.98%, 11/15/2045 | | | 1,383,157 | |
| | | | | | | | UnitedHealth Group, Inc. | | | | |
| | | | | 920,000 | | | 3.35%, 07/15/2022 | | | 984,236 | |
| | | | | 1,440,000 | | | 3.75%, 07/15/2025 | | | 1,579,848 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,351,303 | |
| | | | | | | | | | | | |
| | | | | | | Household Products - 0.3% | |
| | | | | 6,377,088 | | | Procter & Gamble Co.
9.36%, 01/01/2021 | | | 7,711,768 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 0.5% | |
| | | | | 1,445,000 | | | Berkshire Hathaway, Inc.
2.75%, 03/15/2023 | | | 1,493,020 | |
| | | | | | | | Chubb INA Holdings, Inc. | | | | |
| | | | | 495,000 | | | 2.30%, 11/03/2020 | | | 508,928 | |
| | | | | 840,000 | | | 3.35%, 05/15/2024 | | | 899,396 | |
| | | | | 200,000 | | | Five Corners Funding Trust
4.42%, 11/15/2023(3) | | | 215,847 | |
| | | | | 550,000 | | | Liberty Mutual Group, Inc.
4.25%, 06/15/2023(3) | | | 584,230 | |
| | | | | | | | MetLife, Inc. | | | | |
| | | | | 305,000 | | | 1.90%, 12/15/2017 | | | 307,762 | |
| | | | | 2,205,000 | | | 3.60%, 04/10/2024 | | | 2,325,519 | |
| | | | | 795,000 | | | 4.88%, 11/13/2043 | | | 878,778 | |
| | | | | 1,500,000 | | | Prudential Financial, Inc.
3.50%, 05/15/2024 | | | 1,558,659 | |
| | | | | 505,000 | | | Teachers Insurance & Annuity Association of America
4.90%, 09/15/2044(3) | | | 566,813 | |
| | | | | 2,220,000 | | | Trinity Acquisition plc
4.40%, 03/15/2026 | | | 2,317,955 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,656,907 | |
| | | | | | | | | | | | |
| | | | | | | Internet - 0.1% | |
| | | | | 200,000 | | | Alibaba Group Holding Ltd.
2.50%, 11/28/2019 | | | 202,338 | |
| | | | | | | | Amazon.com, Inc. | | | | |
| | | | | 1,250,000 | | | 2.50%, 11/29/2022 | | | 1,289,083 | |
| | | | | 1,020,000 | | | 4.80%, 12/05/2034 | | | 1,199,732 | |
| | | | | 480,000 | | | 4.95%, 12/05/2044 | | | 584,259 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,275,412 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | IT Services - 0.1% | |
| | $ | | | | 1,360,000 | | | Apple, Inc.
3.45%, 05/06/2024 | | $ | 1,478,123 | |
| | | | | | | | | | | | |
| | | | | | | Lodging - 0.2% | |
| | | | | | | | Marriott International, Inc. | | | | |
| | | | | 2,310,000 | | | 2.30%, 01/15/2022 | | | 2,323,883 | |
| | | | | 1,900,000 | | | 2.88%, 03/01/2021 | | | 1,964,114 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,287,997 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Construction & Mining - 0.1% | |
| | | | | 1,500,000 | | | Caterpillar Financial Services Corp.
3.30%, 06/09/2024 | | | 1,601,004 | |
| | | | | | | | Caterpillar, Inc. | | | | |
| | | | | 835,000 | | | 3.40%, 05/15/2024 | | | 897,378 | |
| | | | | 135,000 | | | 4.30%, 05/15/2044 | | | 148,763 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,647,145 | |
| | | | | | | | | | | | |
| | | | | | | Media - 0.8% | |
| | | | | | | | 21st Century Fox America, Inc. | | | | |
| | | | | 385,000 | | | 4.00%, 10/01/2023 | | | 423,291 | |
| | | | | 1,275,000 | | | 4.50%, 02/15/2021 | | | 1,423,543 | |
| | | | | 645,000 | | | Charter Communications Operating LLC
6.48%, 10/23/2045(3) | | | 770,144 | |
| | | | | 2,450,000 | | | Comcast Corp.
4.40%, 08/15/2035 | | | 2,763,593 | |
| | | | | 2,320,000 | | | Cox Communications, Inc.
4.80%, 02/01/2035(3) | | | 2,167,745 | |
| | | | | | | | Grupo Televisa S.A.B. | | | | |
| | | | | 420,000 | | | 5.00%, 05/13/2045 | | | 403,133 | |
| | | | | 700,000 | | | 6.13%, 01/31/2046 | | | 772,989 | |
| | | | | | | | Sky plc | | | | |
| | | | | 1,265,000 | | | 2.63%, 09/16/2019(3) | | | 1,287,121 | |
| | | | | 2,386,000 | | | 3.75%, 09/16/2024(3) | | | 2,478,923 | |
| | | | | | | | Time Warner Cable, Inc. | | | | |
| | | | | 4,120,000 | | | 5.85%, 05/01/2017 | | | 4,264,921 | |
| | | | | 395,000 | | | 6.55%, 05/01/2037 | | | 460,259 | |
| | | | | 250,000 | | | 7.30%, 07/01/2038 | | | 313,061 | |
| | | | | 480,000 | | | 8.25%, 04/01/2019 | | | 557,376 | |
| | | | | 40,000 | | | 8.75%, 02/14/2019 | | | 46,704 | |
| | | | | 130,000 | | | Time Warner Entertainment Co., L.P.
8.38%, 03/15/2023 | | | 169,553 | |
| | | | | 835,000 | | | Viacom, Inc.
3.88%, 12/15/2021 | | | 881,009 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,183,365 | |
| | | | | | | | | | | | |
| | | | | | | Miscellaneous Manufacturing - 0.1% | |
| | | | | 450,000 | | | Parker-Hannifin Corp.
4.45%, 11/21/2044 | | | 530,445 | |
| | | | | 2,375,000 | | | Pentair Finance S.A.
2.90%, 09/15/2018 | | | 2,399,059 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,929,504 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 1.3% | |
| | | | | 171,000 | | | Anadarko Petroleum Corp.
6.38%, 09/15/2017 | | | 179,986 | |
| | | | | 2,450,000 | | | BG Energy Capital plc
4.00%, 10/15/2021(3) | | | 2,672,291 | |
| | | | | | | | BP Capital Markets plc | | | | |
| | | | | 655,000 | | | 2.32%, 02/13/2020 | | | 670,444 | |
| | | | | 140,000 | | | 3.99%, 09/26/2023 | | | 152,014 | |
| | | | | 2,850,000 | | | 4.75%, 03/10/2019 | | | 3,095,684 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Oil & Gas - 1.3% - (continued) | |
| | | | | | | | ConocoPhillips Co. | | | | |
| | $ | | | | 565,000 | | | 2.88%, 11/15/2021 | | $ | 574,913 | |
| | | | | 795,000 | | | 3.35%, 05/15/2025 | | | 821,799 | |
| | | | | 395,000 | | | 4.30%, 11/15/2044 | | | 400,797 | |
| | | | | 230,000 | | | 5.75%, 02/01/2019 | | | 253,037 | |
| | | | | 115,000 | | | 6.00%, 01/15/2020 | | | 130,796 | |
| | | | | | | | Devon Energy Corp. | | | | |
| | | | | 2,695,000 | | | 3.25%, 05/15/2022 | | | 2,613,598 | |
| | | | | 705,000 | | | 5.00%, 06/15/2045 | | | 657,675 | |
| | | | | 315,000 | | | 5.60%, 07/15/2041 | | | 304,348 | |
| | | | | 920,000 | | | Marathon Oil Corp.
2.70%, 06/01/2020 | | | 866,356 | |
| | | | | 1,231,000 | | | Noble Energy, Inc.
4.15%, 12/15/2021 | | | 1,294,364 | |
| | | | | 1,590,000 | | | Petroleos Mexicanos
5.50%, 02/04/2019(3) | | | 1,671,090 | |
| | | | | 360,000 | | | Phillips 66
4.88%, 11/15/2044 | | | 392,962 | |
| | | | | 3,540,000 | | | Pioneer Natural Resources Co.
7.50%, 01/15/2020 | | | 4,145,152 | |
| | | | | | | | Shell International Finance B.V. | | | | |
| | | | | 691,000 | | | 3.25%, 05/11/2025 | | | 724,919 | |
| | | | | 500,000 | | | 4.38%, 03/25/2020 | | | 549,532 | |
| | | | | 3,950,000 | | | Sinopec Group Overseas Development Ltd. | | | | |
| | | | | | | | 2.50%, 04/28/2020(3) | | | 3,992,609 | |
| | | | | | | | Statoil ASA | | | | |
| | | | | 340,000 | | | 2.25%, 11/08/2019 | | | 348,699 | |
| | | | | 160,000 | | | 2.45%, 01/17/2023 | | | 161,986 | |
| | | | | 495,000 | | | 2.75%, 11/10/2021 | | | 517,557 | |
| | | | | 1,850,000 | | | 2.90%, 11/08/2020 | | | 1,926,766 | |
| | | | | 210,000 | | | 3.25%, 11/10/2024 | | | 221,770 | |
| | | | | 45,000 | | | 3.70%, 03/01/2024 | | | 48,607 | |
| | | | | | | | Suncor Energy, Inc. | | | | |
| | | | | 615,000 | | | 3.60%, 12/01/2024 | | | 646,781 | |
| | | | | 925,000 | | | 6.10%, 06/01/2018 | | | 1,000,253 | |
| | | | | 1,375,000 | | | Total Capital International S.A.
2.70%, 01/25/2023 | | | 1,414,190 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 32,450,975 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas Services - 0.1% | |
| | | | | 940,000 | | | Schlumberger Holdings Corp.
3.00%, 12/21/2020(3) | | | 980,378 | |
| | | | | 1,625,000 | | | Schlumberger Investment S.A.
3.65%, 12/01/2023 | | | 1,744,389 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,724,767 | |
| | | | | | | | | | | | |
| | | | | | | Pharmaceuticals - 1.0% | |
| | | | | 270,000 | | | AbbVie, Inc.
3.20%, 11/06/2022 | | | 279,188 | |
| | | | | | | | Actavis Funding SCS | | | | |
| | | | | 1,195,000 | | | 3.00%, 03/12/2020 | | | 1,232,438 | |
| | | | | 1,170,000 | | | 3.45%, 03/15/2022 | | | 1,215,115 | |
| | | | | 485,000 | | | 3.80%, 03/15/2025 | | | 505,287 | |
| | | | | 515,000 | | | 4.55%, 03/15/2035 | | | 529,276 | |
| | | | | 600,000 | | | 4.85%, 06/15/2044 | | | 631,879 | |
| | | | | | | | Bayer US Finance LLC | | | | |
| | | | | 260,000 | | | 2.38%, 10/08/2019(3) | | | 265,781 | |
| | | | | 1,215,000 | | | 3.00%, 10/08/2021(3) | | | 1,268,772 | |
| | | | | 395,000 | | | 3.38%, 10/08/2024(3) | | | 410,601 | |
| | | | | | | | Cardinal Health, Inc. | | | | |
| | | | | 990,000 | | | 2.40%, 11/15/2019 | | | 1,014,596 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Pharmaceuticals - 1.0% - (continued) | |
| | $ | | | | 880,000 | | | 3.50%, 11/15/2024 | | $ | 938,442 | |
| | | | | 1,035,000 | | | 4.50%, 11/15/2044 | | | 1,083,153 | |
| | | | | | | | EMD Finance LLC | | | | |
| | | | | 2,015,000 | | | 2.95%, 03/19/2022(3) | | | 2,064,474 | |
| | | | | 3,000,000 | | | 3.25%, 03/19/2025(3) | | | 3,074,055 | |
| | | | | 1,525,000 | | | Express Scripts Holding Co.
2.25%, 06/15/2019 | | | 1,549,792 | |
| | | | | | | | Forest Laboratories LLC | | | | |
| | | | | 305,000 | | | 4.88%, 02/15/2021(3) | | | 338,529 | |
| | | | | 800,000 | | | 5.00%, 12/15/2021(3) | | | 895,307 | |
| | | | | | | | McKesson Corp. | | | | |
| | | | | 100,000 | | | 2.85%, 03/15/2023 | | | 102,002 | |
| | | | | 650,000 | | | 3.80%, 03/15/2024 | | | 703,751 | |
| | | | | | | | Merck & Co., Inc. | | | | |
| | | | | 1,960,000 | | | 2.75%, 02/10/2025 | | | 2,049,413 | |
| | | | | 1,640,000 | | | 2.80%, 05/18/2023 | | | 1,721,690 | |
| | | | | 630,000 | | | 4.15%, 05/18/2043 | | | 705,724 | |
| | | | | 1,925,000 | | | Mylan N.V.
3.00%, 12/15/2018(3) | | | 1,970,821 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 24,550,086 | |
| | | | | | | | | | | | |
| | | | | | | Pipelines - 0.7% | |
| | | | | 990,000 | | | Columbia Pipeline Group, Inc.
2.45%, 06/01/2018 | | | 993,192 | |
| | | | | 1,300,000 | | | Energy Transfer Partners L.P.
5.15%, 03/15/2045 | | | 1,181,303 | |
| | | | | 865,000 | | | Enterprise Products Operating LLC
3.95%, 02/15/2027 | | | 917,442 | |
| | | | | 1,875,000 | | | Kinder Morgan Energy Partners L.P.
6.95%, 01/15/2038 | | | 2,069,205 | |
| | | | | 2,425,000 | | | Phillips 66 Partners L.P.
3.61%, 02/15/2025 | | | 2,382,963 | |
| | | | | 2,510,000 | | | Regency Energy Partners L.P.
5.88%, 03/01/2022 | | | 2,684,804 | |
| | | | | 2,375,000 | | | Sunoco Logistics Partners Operations L.P.
4.40%, 04/01/2021 | | | 2,502,777 | |
| | | | | 1,036,000 | | | TransCanada PipeLines Ltd.
4.88%, 01/15/2026 | | | 1,183,108 | |
| | | | | 2,470,000 | | | Western Gas Partners L.P.
4.00%, 07/01/2022 | | | 2,406,699 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,321,493 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate - 0.1% | |
| | | | | | | | WEA Finance LLC / Westfield UK & Europe Finance plc | | | | |
| | | | | 480,000 | | | 1.75%, 09/15/2017(3) | | | 481,387 | |
| | | | | 730,000 | | | 2.70%, 09/17/2019(3) | | | 744,597 | |
| | | | | 1,400,000 | | | 3.25%, 10/05/2020(3) | | | 1,456,973 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,682,957 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate Investment Trusts - 0.4% | |
| | | | | 975,000 | | | American Tower Corp.
3.45%, 09/15/2021 | | | 1,014,840 | |
| | | | | 760,000 | | | AvalonBay Communities, Inc.
3.63%, 10/01/2020 | | | 811,214 | |
| | | | | 940,000 | | | Crown Castle International Corp. 3.70%, 06/15/2026 | | | 969,790 | |
| | | | | | | | HCP, Inc. | | | | |
| | | | | 2,960,000 | | | 4.00%, 06/01/2025 | | | 2,982,845 | |
| | | | | 2,030,000 | | | 6.00%, 01/30/2017 | | | 2,083,151 | |
| | | | | 1,735,000 | | | Scentre Group
2.38%, 11/05/2019(3) | | | 1,760,616 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,622,456 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 19.2% - (continued) | |
| | | | | | | Retail - 0.5% | |
| | | | | | | | AutoZone, Inc. | | | | |
| | $ | | | | 900,000 | | | 3.13%, 07/15/2023 | | $ | 933,148 | |
| | | | | 1,908,000 | | | 3.70%, 04/15/2022 | | | 2,035,903 | |
| | | | | | | | CVS Health Corp. | | | | |
| | | | | 2,100,000 | | | 4.00%, 12/05/2023 | | | 2,322,291 | |
| | | | | 685,000 | | | 4.88%, 07/20/2035 | | | 817,826 | |
| | | | | 1,185,000 | | | 5.13%, 07/20/2045 | | | 1,470,083 | |
| | | | | 325,000 | | | Home Depot, Inc.
4.40%, 03/15/2045 | | | 376,605 | |
| | | | | 1,850,000 | | | Lowe’s Cos., Inc.
4.63%, 04/15/2020 | | | 2,039,595 | |
| | | | | 1,435,000 | | | O’Reilly Automotive, Inc.
3.80%, 09/01/2022 | | | 1,545,171 | |
| | | | | 705,000 | | | Walgreens Boots Alliance, Inc.
2.60%, 06/01/2021 | | | 718,152 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,258,774 | |
| | | | | | | | | | | | |
| | | | | | | Savings & Loans - 0.1% | |
| | | | | 1,610,000 | | | Nationwide Building Society
2.35%, 01/21/2020(3) | | | 1,627,248 | |
| | | | | | | | | | | | |
| | | | | | | Semiconductors - 0.0% | |
| | | | | 890,000 | | | Lam Research Corp.
3.45%, 06/15/2023 | | | 919,175 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 0.9% | |
| | | | | | | | America Movil S.A.B. de C.V. | | | | |
| | | | | 635,000 | | | 3.13%, 07/16/2022 | | | 651,522 | |
| | | | | 530,000 | | | 6.13%, 03/30/2040 | | | 649,835 | |
| | | | | | | | AT&T, Inc. | | | | |
| | | | | 355,000 | | | 3.95%, 01/15/2025 | | | 377,345 | |
| | | | | 2,185,000 | | | 4.45%, 04/01/2024 | | | 2,400,461 | |
| | | | | 390,000 | | | 4.75%, 05/15/2046 | | | 399,700 | |
| | | | | 1,000,000 | | | 6.80%, 05/15/2036 | | | 1,286,376 | |
| | | | | 715,000 | | | GTP Acquisition Partners I LLC
2.35%, 06/15/2045(3) | | | 713,470 | |
| | | | | | | | Orange S.A. | | | | |
| | | | | 3,200,000 | | | 4.13%, 09/14/2021 | | | 3,530,269 | |
| | | | | 576,000 | | | 9.00%, 03/01/2031 | | | 892,063 | |
| | | | | | | | Verizon Communications, Inc. | | | | |
| | | | | 425,000 | | | 3.45%, 03/15/2021 | | | 455,358 | |
| | | | | 2,415,000 | | | 3.50%, 11/01/2021 | | | 2,602,286 | |
| | | | | 4,795,000 | | | 4.50%, 09/15/2020 | | | 5,322,239 | |
| | | | | 1,305,000 | | | 4.52%, 09/15/2048 | | | 1,358,896 | |
| | | | | 611,000 | | | 4.67%, 03/15/2055 | | | 617,990 | |
| | | | | 715,000 | | | 4.75%, 11/01/2041 | | | 768,130 | |
| | | | | 263,000 | | | 6.40%, 09/15/2033 | | | 335,694 | |
| | | | | | | | | | | | |
| | | | | | | | 22,361,634 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.2% | |
| | | | | | | | FedEx Corp. | | | | |
| | | | | 845,000 | | | 4.90%, 01/15/2034 | | | 959,114 | |
| | | | | 1,435,000 | | | 5.10%, 01/15/2044 | | | 1,672,053 | |
| | | | | | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | | | | 1,685,000 | | | 3.20%, 07/15/2020(3) | | | 1,723,462 | |
| | | | | 1,100,000 | | | 3.38%, 02/01/2022(3) | | | 1,121,772 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,476,401 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Corporate Bonds
(cost $436,543,071) | | $ | 464,086,554 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 0.5% | |
| | | | | | | Mexico - 0.2% | |
| | | | | | | | Mexico Government International Bond | | | | |
| | $ | | | | 1,674,000 | | | 3.50%, 01/21/2021 | | $ | 1,766,070 | |
| | | | | 1,185,000 | | | 3.60%, 01/30/2025 | | | 1,238,325 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,004,395 | |
| | | | | | | | | | | | |
| | | | | | | Qatar - 0.1% | |
| | | | | 2,375,000 | | | Qatar Government International Bond
4.63%, 06/02/2046(3) | | | 2,582,043 | |
| | | | | | | | | | | | |
| | | | | | | Slovenia - 0.1% | |
| | | | | 2,380,000 | | | Slovenia Government International Bond
5.50%, 10/26/2022(3) | | | 2,702,014 | |
| | | | | | | | | | | | |
| | | | | | | South Korea - 0.1% | |
| | | | | 2,300,000 | | | Export-Import Bank of Korea
1.75%, 05/26/2019 | | | 2,319,223 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Foreign Government Obligations
(cost $10,148,641) | | $ | 10,607,675 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| MUNICIPAL BONDS - 1.3% | |
| | | | | | | General - 0.2% | |
| | | | | 585,000 | | | Chicago Transit Auth
6.90%, 12/01/2040 | | $ | 763,463 | |
| | | | | 1,785,000 | | | Kansas Dev Finance Auth
4.93%, 04/15/2045 | | | 2,045,074 | |
| | | | | 2,400,000 | | | New Jersey State, Economic Auth Rev
3.80%, 06/15/2018 | | | 2,469,480 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,278,017 | |
| | | | | | | | | | | | |
| | | | | | | General Obligation - 0.3% | |
| | | | | 1,235,000 | | | California State, GO Taxable
7.55%, 04/01/2039 | | | 1,952,251 | |
| | | | | 685,000 | | | Chicago, IL, Metropolitan Water Reclamation GO
5.72%, 12/01/2038 | | | 886,534 | |
| | | | | 1,640,000 | | | Illinois State, GO
5.10%, 06/01/2033 | | | 1,576,155 | |
| | | | | 2,200,000 | | | Los Angeles, CA, USD GO
5.75%, 07/01/2034 | | | 2,911,964 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,326,904 | |
| | | | | | | | | | | | |
| | | | | | | Higher Education - 0.1% | |
| | | | | 1,460,000 | | | University of California, Build America Bonds Rev
5.77%, 05/15/2043 | | | 2,000,550 | |
| | | | | | | | | | | | |
| | | | | | | Medical - 0.1% | |
| | | | | 1,935,000 | | | University of California, Regents MedCenter Pooled Rev
6.58%, 05/15/2049 | | | 2,843,289 | |
| | | | | | | | | | | | |
| | | | | | | Power - 0.0% | |
| | | | | 485,000 | | | Utility Debt Securitization Auth, New York
3.44%, 12/15/2025 | | | 528,311 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.5% | |
| | | | | 1,160,000 | | | Bay Area, CA, Toll Auth Bridge Rev
6.26%, 04/01/2049 | | | 1,807,466 | |
| | | | | 800,000 | | | Dallas, TX, Area Rapid Transit Sales Tax Rev
6.00%, 12/01/2044 | | | 1,156,168 | |
| | | | | 1,875,000 | | | Illinois State Toll Highway Auth, Taxable Rev
6.18%, 01/01/2034 | | | 2,596,106 | |
| | | | | 1,050,000 | | | Maryland State Transportation Auth
5.89%, 07/01/2043 | | | 1,448,695 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 1.3% - (continued) | |
| | | | | | | Transportation - 0.5% - (continued) | |
| | | | | | | | New York and New Jersey PA, Taxable Rev | | | | |
| | $ | | | | 685,000 | | | 4.81%, 10/15/2065 | | $ | 823,562 | |
| | | | | 570,000 | | | 6.04%, 12/01/2029 | | | 763,384 | |
| | | | | 2,400,000 | | | North Texas Tollway Auth Rev
6.72%, 01/01/2049 | | | 3,687,648 | |
| | | | | | | | | | | | |
| | | | 12,283,029 | |
| | | | | | | | | | | | |
| | | | | | | Utility - Electric - 0.1% | |
| | | | | 1,080,000 | | | Municipal Electric Auth. Georgia
6.64%, 04/01/2057 | | | 1,444,165 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Municipal Bonds
(cost $24,623,612) | | $ | 31,704,265 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 1.1% | |
| | | | | | | FHLMC - 0.4% | |
| | | | | 58,922 | | | 2.64%, 04/01/2029(4) | | $ | 60,786 | |
| | | | | 40,665 | | | 4.00%, 03/01/2041 | | | 43,723 | |
| | | | | 962,783 | | | 4.50%, 08/01/2033 | | | 1,053,865 | |
| | | | | 367,303 | | | 4.50%, 09/01/2033 | | | 401,986 | |
| | | | | 23,176 | | | 4.50%, 12/01/2034 | | | 25,366 | |
| | | | | 53,779 | | | 4.50%, 05/01/2035 | | | 58,822 | |
| | | | | 51,251 | | | 4.50%, 09/01/2035 | | | 55,939 | |
| | | | | 22,763 | | | 4.50%, 12/01/2035 | | | 24,806 | |
| | | | | 1,217,935 | | | 4.50%, 10/01/2039 | | | 1,334,452 | |
| | | | | 136,957 | | | 4.50%, 01/01/2040 | | | 149,303 | |
| | | | | 36,762 | | | 4.50%, 09/01/2040 | | | 40,811 | |
| | | | | 377,427 | | | 4.50%, 02/01/2041 | | | 414,548 | |
| | | | | 597,515 | | | 4.50%, 10/01/2041 | | | 655,984 | |
| | | | | 98,601 | | | 4.50%, 11/01/2043 | | | 107,788 | |
| | | | | 3,512,117 | | | 4.50%, 01/01/2044 | | | 3,830,030 | |
| | | | | 2,275,000 | | | 4.50%, 07/01/2046(7) | | | 2,480,817 | |
| | | | | | | | | | | | |
| | | | 10,739,026 | |
| | | | | | | | | | | | |
| | | | | | | FNMA - 0.4% | |
| | | | | 121,641 | | | 4.50%, 11/01/2023 | | | 132,688 | |
| | | | | 204,189 | | | 4.50%, 03/01/2038 | | | 223,483 | |
| | | | | 119,907 | | | 4.50%, 11/01/2039 | | | 131,171 | |
| | | | | 262,665 | | | 4.50%, 04/01/2040 | | | 287,405 | |
| | | | | 179,276 | | | 4.50%, 05/01/2040 | | | 196,526 | |
| | | | | 460,727 | | | 4.50%, 08/01/2040 | | | 504,697 | |
| | | | | 105,576 | | | 4.50%, 11/01/2040 | | | 115,732 | |
| | | | | 70,597 | | | 4.50%, 02/01/2041 | | | 77,387 | |
| | | | | 179,032 | | | 4.50%, 03/01/2041 | | | 196,164 | |
| | | | | 1,197,441 | | | 4.50%, 04/01/2041 | | | 1,310,761 | |
| | | | | 37,422 | | | 4.50%, 05/01/2041 | | | 40,827 | |
| | | | | 547,509 | | | 4.50%, 06/01/2041 | | | 597,908 | |
| | | | | 840,324 | | | 4.50%, 07/01/2041 | | | 921,288 | |
| | | | | 300,709 | | | 4.50%, 09/01/2041 | | | 328,391 | |
| | | | | 23,661 | | | 4.50%, 11/01/2043 | | | 25,812 | |
| | | | | 497,906 | | | 4.50%, 06/01/2044 | | | 544,798 | |
| | | | | 232,675 | | | 4.50%, 07/01/2044 | | | 253,876 | |
| | | | | 1,800,000 | | | 4.50%, 07/01/2046(7) | | | 1,964,803 | |
| | | | | 900,000 | | | 4.50%, 08/16/2046 | | | 981,839 | |
| | | | | 3,645 | | | 5.00%, 02/01/2019 | | | 3,750 | |
| | | | | 39,805 | | | 5.00%, 04/01/2019 | | | 40,920 | |
| | | | | | | | | | | | |
| | | | 8,880,226 | |
| | | | | | | | | | | | |
| | | | | | | GNMA - 0.3% | |
| | | | | 151,398 | | | 5.00%, 07/15/2037 | | | 170,443 | |
| | | | | 22,025 | | | 6.00%, 06/15/2024 | | | 25,189 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 1.1% - (continued) | |
| | | | | | | GNMA - 0.3% - (continued) | |
| | $ | | | | 6,627 | | | 6.00%, 07/15/2026 | | $ | 7,576 | |
| | | | | 11,163 | | | 6.00%, 01/15/2028 | | | 12,759 | |
| | | | | 2,760 | | | 6.00%, 03/15/2028 | | | 3,204 | |
| | | | | 82,175 | | | 6.00%, 04/15/2028 | | | 94,139 | |
| | | | | 110,680 | | | 6.00%, 05/15/2028 | | | 126,575 | |
| | | | | 22,973 | | | 6.00%, 06/15/2028 | | | 26,278 | |
| | | | | 60,455 | | | 6.00%, 07/15/2028 | | | 69,171 | |
| | | | | 21,101 | | | 6.00%, 08/15/2028 | | | 24,123 | |
| | | | | 92,718 | | | 6.00%, 09/15/2028 | | | 106,023 | |
| | | | | 159,961 | | | 6.00%, 10/15/2028 | | | 182,954 | |
| | | | | 266,191 | | | 6.00%, 11/15/2028 | | | 304,411 | |
| | | | | 159,043 | | | 6.00%, 12/15/2028 | | | 181,957 | |
| | | | | 5,365 | | | 6.00%, 12/15/2031 | | | 6,236 | |
| | | | | 33,361 | | | 6.00%, 09/15/2032 | | | 39,083 | |
| | | | | 11,333 | | | 6.00%, 11/15/2032 | | | 13,147 | |
| | | | | 20,690 | | | 6.00%, 01/15/2033 | | | 23,681 | |
| | | | | 2,167 | | | 6.00%, 04/15/2033 | | | 2,477 | |
| | | | | 134,290 | | | 6.00%, 06/15/2033 | | | 160,239 | |
| | | | | 51,032 | | | 6.00%, 10/15/2033 | | | 59,873 | |
| | | | | 7,401 | | | 6.00%, 11/15/2033 | | | 8,679 | |
| | | | | 121,485 | | | 6.00%, 10/15/2034 | | | 139,073 | |
| | | | | 63,162 | | | 6.00%, 01/15/2035 | | | 72,285 | |
| | | | | 8,158 | | | 6.00%, 05/15/2035 | | | 9,328 | |
| | | | | 20,038 | | | 6.00%, 06/15/2035 | | | 22,907 | |
| | | | | 1,167 | | | 6.50%, 03/15/2026 | | | 1,332 | |
| | | | | 5,627 | | | 6.50%, 01/15/2028 | | | 6,420 | |
| | | | | 450 | | | 6.50%, 02/15/2028 | | | 514 | |
| | | | | 87,609 | | | 6.50%, 03/15/2028 | | | 99,951 | |
| | | | | 165,352 | | | 6.50%, 04/15/2028 | | | 188,642 | |
| | | | | 57,818 | | | 6.50%, 05/15/2028 | | | 65,961 | |
| | | | | 229,268 | | | 6.50%, 06/15/2028 | | | 261,561 | |
| | | | | 14,549 | | | 6.50%, 10/15/2028 | | | 16,598 | |
| | | | | 4,719 | | | 6.50%, 02/15/2035 | | | 5,679 | |
| | | | | 31,145 | | | 7.00%, 11/15/2031 | | | 36,675 | |
| | | | | 14,996 | | | 7.00%, 03/15/2032 | | | 17,496 | |
| | | | | 1,669,691 | | | 7.00%, 11/15/2032 | | | 2,088,648 | |
| | | | | 237,996 | | | 7.00%, 01/15/2033 | | | 292,677 | |
| | | | | 261,535 | | | 7.00%, 05/15/2033 | | | 320,717 | |
| | | | | 50,638 | | | 7.00%, 07/15/2033 | | | 61,097 | |
| | | | | 311,652 | | | 7.00%, 11/15/2033 | | | 381,034 | |
| | | | | 124,779 | | | 7.50%, 09/16/2035 | | | 144,665 | |
| | | | | 241 | | | 8.00%, 09/15/2026 | | | 273 | |
| | | | | 151 | | | 8.00%, 11/15/2026 | | | 171 | |
| | | | | 14,901 | | | 8.00%, 12/15/2026 | | | 18,138 | |
| | | | | 173 | | | 8.00%, 09/15/2027 | | | 184 | |
| | | | | 9,555 | | | 8.00%, 07/15/2029 | | | 11,639 | |
| | | | | 5,460 | | | 8.00%, 10/15/2029 | | | 5,539 | |
| | | | | 4,112 | | | 8.00%, 11/15/2029 | | | 4,129 | |
| | | | | 22,842 | | | 8.00%, 12/15/2029 | | | 24,658 | |
| | | | | 4,900 | | | 8.00%, 01/15/2030 | | | 5,181 | |
| | | | | 6,891 | | | 8.00%, 02/15/2030 | | | 7,158 | |
| | | | | 1,161 | | | 8.00%, 03/15/2030 | | | 1,187 | |
| | | | | 60,972 | | | 8.00%, 04/15/2030 | | | 62,121 | |
| | | | | 11,652 | | | 8.00%, 05/15/2030 | | | 12,127 | |
| | | | | 49,727 | | | 8.00%, 06/15/2030 | | | 53,529 | |
| | | | | 3,911 | | | 8.00%, 07/15/2030 | | | 4,397 | |
| | | | | 78,504 | | | 8.00%, 08/15/2030 | | | 81,300 | |
| | | | | 17,478 | | | 8.00%, 09/15/2030 | | | 18,115 | |
| | | | | 10,568 | | | 8.00%, 11/15/2030 | | | 10,914 | |
| | | | | 179,866 | | | 8.00%, 12/15/2030 | | | 206,783 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 1.1% - (continued) | |
| | | | | | | GNMA - 0.3% - (continued) | |
| | $ | | | | 278 | | | 8.00%, 02/15/2031 | | $ | 296 | |
| | | | | 9,120 | | | 9.00%, 06/15/2022 | | | 9,276 | |
| | | | | | | | | | | | |
| | | | 6,418,592 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $24,755,662) | | $ | 26,037,844 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 13.5% | |
| | | | | | | U.S. Treasury Securities - 13.5% | | | |
| | | | | | | U.S. Treasury Bonds - 3.7% | | | |
| | | | | 23,750,000 | | | 2.50%, 02/15/2045 | | $ | 24,726,909 | |
| | | | | 2,415,000 | | | 2.50%, 02/15/2046 | | | 2,514,713 | |
| | | | | 10,450,800 | | | 2.88%, 05/15/2043 | | | 11,751,841 | |
| | | | | 430,000 | | | 2.88%, 08/15/2045 | | | 482,843 | |
| | | | | 235,000 | | | 3.00%, 11/15/2044 | | | 270,195 | |
| | | | | 8,995,000 | | | 3.13%, 08/15/2044 | | | 10,588,096 | |
| | | | | 4,630,000 | | | 3.38%, 05/15/2044 | | | 5,706,294 | |
| | | | | 22,000,000 | | | 4.38%, 02/15/2038 | | | 31,362,034 | |
| | | | | 1,750,000 | | | 6.00%, 02/15/2026 | | | 2,464,560 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 89,867,485 | |
| | | | | | | | | | | | |
| | | | | | | U.S. Treasury Notes - 9.8% | | | |
| | | | | 18,550,000 | | | 0.63%, 08/31/2017 | | | 18,566,658 | |
| | | | | 3,800,000 | | | 0.63%, 09/30/2017 | | | 3,803,564 | |
| | | | | 11,800,000 | | | 1.00%, 09/15/2017 | | | 11,862,221 | |
| | | | | 12,075,000 | | | 1.25%, 03/31/2021 | | | 12,215,565 | |
| | | | | 4,635,000 | | | 1.38%, 09/30/2018 | | | 4,711,584 | |
| | | | | 2,025,000 | | | 1.38%, 09/30/2020 | | | 2,061,782 | |
| | | | | 9,840,000 | | | 1.38%, 01/31/2021 | | | 10,014,119 | |
| | | | | 36,130,000 | | | 1.50%, 03/31/2023 | | | 36,650,778 | |
| | | | | 37,000,000 | | | 1.63%, 07/31/2019 | | | 37,998,704 | |
| | | | | 6,000,000 | | | 1.63%, 02/15/2026 | | | 6,067,500 | |
| | | | | 17,835,000 | | | 1.75%, 09/30/2019 | | | 18,393,039 | |
| | | | | 6,680,000 | | | 2.00%, 02/15/2025 | | | 6,988,950 | |
| | | | | 2,650,000 | | | 2.00%, 08/15/2025 | | | 2,770,390 | |
| | | | | 4,900,000 | | | 2.13%, 05/15/2025 | | | 5,175,816 | |
| | | | | 16,670,000 | | | 2.25%, 11/15/2024 | | | 17,782,206 | |
| | | | | 590,000 | | | 2.25%, 11/15/2025 | | | 629,456 | |
| | | | | 11,935,000 | | | 2.38%, 08/15/2024 | | | 12,846,906 | |
| | | | | 16,070,000 | | | 2.75%, 02/15/2019 | | | 16,938,776 | |
| | | | | 7,650,000 | | | 2.75%, 11/15/2023 | | | 8,432,932 | |
| | | | | 3,390,000 | | | 2.75%, 02/15/2024 | | | 3,742,109 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 237,653,055 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Securities
(cost $303,345,406) | | $ | 327,520,540 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Long-Term Investments
(cost $1,979,093,658) | | $ | 2,421,361,630 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.0% | |
| | | | | | | Other Investment Pools & Funds - 0.0% | |
| | | | | 55,648 | | | Federated Prime Obligations Fund | | $ | 55,648 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $55,648) | | $ | 55,648 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,979,149,306)^ | | | 100.0 | % | | $ | 2,421,417,278 | |
| | | | Other Assets and Liabilities | | | 0.0% | | | | 806,190 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,422,223,468 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 485,593,887 | |
Unrealized Depreciation | | | (43,325,915 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 442,267,972 | |
| | | | |
| (1) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of these securities was $20,064,305, which represents 0.8% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | |
Period Acquired | | Shares/Par | | | Security | | Cost | |
| 08/2011 | | | 11,702,200 | | | Allstar Co. | | $ | 5,090,681 | |
| 11/2013 | | | 163,241 | | | Tory Burch LLC | | | 12,794,224 | |
| | | | | | | | | | |
| | | | | | | | $ | 17,884,905 | |
| | | | | | | | | | |
| | At June 30, 2016, the aggregate value of these securities was $20,064,305, which represents 0.8% of total net assets. |
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $152,638,974, which represents 6.3% of total net assets. |
| (4) | Variable rate securities; the rate reported is the coupon rate in effect at June 30, 2016. |
| (5) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (6) | This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of this security was $1,235,000 at June 30, 2016. |
| (7) | Represents or includes a TBA transaction. |
Futures Contracts Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | | | | | |
Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note Future | | | 8 | | | | 09/21/2016 | | | $ | 1,035,693 | | | $ | 1,063,875 | | | $ | 28,182 | |
| | | | | | | | | | | | | | | | | | | | |
Total futures contracts | | | | | | | | | | | | | | | | | | $ | 28,182 | |
| | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
TBA Sale Commitments Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
FHLMC, 4.50% | | $ | 5,000,000 | | | | 07/01/2046 | | | $ | (5,452,343 | ) | | $ | (3,906 | ) |
FHLMC, 4.50% | | | 2,275,000 | | | | 08/01/2046 | | | | (2,479,395 | ) | | | 1,066 | |
FNMA, 4.50% | | | 900,000 | | | | 07/01/2046 | | | | (982,336 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total (proceeds $8,911,234) | | | $ | (8,914,074 | ) | | $ | (2,840 | ) |
| | | | | | | | | | | | | | | | |
At June 30, 2016, the aggregate market value of these securities represents (0.4)% of total net assets.
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
GNMA | | Government National Mortgage Association |
TBA | | To Be Announced |
| |
| | |
| Municipal Abbreviations: |
GO | | General Obligation |
PA | | Port Authority |
Rev | | Revenue |
USD | | United School District |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 136,384,095 | | | $ | 136,384,095 | | | $ | — | | | $ | — | |
Capital Goods | | | 118,449,957 | | | | 118,449,957 | | | | — | | | | — | |
Commercial & Professional Services | | | 15,806,676 | | | | 15,806,676 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 19,808,986 | | | | 19,808,986 | | | | — | | | | — | |
Consumer Services | | | 36,160,787 | | | | 36,160,787 | | | | — | | | | — | |
Diversified Financials | | | 55,353,914 | | | | 55,353,914 | | | | — | | | | — | |
Energy | | | 107,847,026 | | | | 107,847,026 | | | | — | | | | — | |
Food & Staples Retailing | | | 28,471,161 | | | | 28,471,161 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 94,756,040 | | | | 74,173,608 | | | | 20,582,432 | | | | — | |
Health Care Equipment & Services | | | 85,196,666 | | | | 85,196,666 | | | | — | | | | — | |
Household & Personal Products | | | 15,483,412 | | | | 15,483,412 | | | | — | | | | — | |
Insurance | | | 63,940,798 | | | | 63,940,798 | | | | — | | | | — | |
Materials | | | 39,388,029 | | | | 39,388,029 | | | | — | | | | — | |
Media | | | 55,427,895 | | | | 55,427,895 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 206,539,194 | | | | 163,105,498 | | | | 43,433,696 | | | | — | |
Retailing | | | 78,724,538 | | | | 58,660,233 | | | | — | | | | 20,064,305 | |
Semiconductors & Semiconductor Equipment | | | 68,475,835 | | | | 68,475,835 | | | | — | | | | — | |
Software & Services | | | 133,247,738 | | | | 133,247,738 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 69,774,880 | | | | 69,774,880 | | | | — | | | | — | |
Telecommunication Services | | | 10,301,922 | | | | 10,301,922 | | | | — | | | | — | |
Transportation | | | 15,752,115 | | | | 15,752,115 | | | | — | | | | — | |
Utilities | | | 37,586,496 | | | | 37,586,496 | | | | — | | | | — | |
Asset & Commercial Mortgage Backed Securities | | | 68,526,592 | | | | — | | | | 68,526,592 | | | | — | |
Corporate Bonds | | | 464,086,554 | | | | — | | | | 464,086,554 | | | | — | |
Foreign Government Obligations | | | 10,607,675 | | | | — | | | | 10,607,675 | | | | — | |
Municipal Bonds | | | 31,704,265 | | | | — | | | | 31,704,265 | | | | — | |
U.S. Government Agencies | | | 26,037,844 | | | | — | | | | 26,037,844 | | | | — | |
U.S. Government Securities | | | 327,520,540 | | | | — | | | | 327,520,540 | | | | — | |
Short-Term Investments | | | 55,648 | | | | 55,648 | | | | — | | | | — | |
Futures Contracts(2) | | | 28,182 | | | | 28,182 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,421,445,460 | | | $ | 1,408,881,557 | | | $ | 992,499,598 | | | $ | 20,064,305 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
TBA Sale Commitments | | $ | (8,914,074 | ) | | $ | — | | | $ | (8,914,074 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (8,914,074 | ) | | $ | — | | | $ | (8,914,074 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 19,755,780 | | | $ | 19,755,780 | |
Purchases | | | — | | | | — | |
Sales | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 308,525 | | | | 308,525 | |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 20,064,305 | | | $ | 20,064,305 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
��
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $308,525.
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% | |
| | | | Automobiles & Components - 1.4% | |
| | 539,919 | | | Delphi Automotive plc | | $ | 33,798,929 | |
| | 126,710 | | | Fiat Chrysler Automobiles N.V. | | | 779,958 | |
| | 1,921,073 | | | Ford Motor Co. | | | 24,147,888 | |
| | 659,610 | | | Goodyear Tire & Rubber Co. | | | 16,925,592 | |
| | 188,500 | | | Magna International, Inc. | | | 6,616,723 | |
| | | | | | | | |
| | | | | | | 82,269,090 | |
| | | | | | | | |
| | | | Banks - 5.4% | |
| | 514,153 | | | Bank of America Corp. | | | 6,822,810 | |
| | 7,153,000 | | | China Construction Bank Corp. Class H | | | 4,768,462 | |
| | 904,754 | | | Citigroup, Inc. | | | 38,352,522 | |
| | 2,601,500 | | | Itau Unibanco Holding S.A. ADR | | | 24,558,160 | |
| | 1,712,879 | | | JP Morgan Chase & Co. | | | 106,438,301 | |
| | 100,690 | | | M&T Bank Corp. | | | 11,904,579 | |
| | 349,112 | | | MGIC Investment Corp.* | | | 2,077,216 | |
| | 574,462 | | | Nordea Bank AB | | | 4,873,529 | |
| | 748,584 | | | PNC Financial Services Group, Inc. | | | 60,927,252 | |
| | 3,749,900 | | | Sberbank of Russia PJSC ADR | | | 32,888,333 | |
| | 348,932 | | | Wells Fargo & Co. | | | 16,514,952 | |
| | | | | | | | |
| | | | | | | 310,126,116 | |
| | | | | | | | |
| | | | Capital Goods - 5.1% | |
| | 89,059 | | | 3M Co. | | | 15,596,012 | |
| | 849,015 | | | AerCap Holdings N.V.* | | | 28,518,414 | |
| | 158,734 | | | Airbus Group SE | | | 9,098,621 | |
| | 196,900 | | | Boeing Co. | | | 25,571,403 | |
| | 322,283 | | | Builders FirstSource, Inc.* | | | 3,625,684 | |
| | 66,929 | | | Caterpillar, Inc. | | | 5,073,888 | |
| | 98,301 | | | Danaher Corp. | | | 9,928,401 | |
| | 429,629 | | | Eaton Corp. plc | | | 25,661,740 | |
| | 85,677 | | | Fastenal Co. | | | 3,803,202 | |
| | 135,528 | | | Generac Holdings, Inc.* | | | 4,738,059 | |
| | 53,210 | | | General Dynamics Corp. | | | 7,408,960 | |
| | 350,600 | | | HF Global, Inc.(1)(2)(3) | | | 5,795,418 | |
| | 413,549 | | | Honeywell International, Inc. | | | 48,104,020 | |
| | 68,218 | | | Lockheed Martin Corp. | | | 16,929,661 | |
| | 62,596 | | | Middleby Corp.* | | | 7,214,189 | |
| | 254,686 | | | Owens Corning | | | 13,121,423 | |
| | 77,309 | | | Pentair plc | | | 4,506,342 | |
| | 33,198 | | | Raytheon Co. | | | 4,513,268 | |
| | 737,500 | | | Sanwa Holdings Corp. | | | 6,703,896 | |
| | 100,712 | | | Schneider Electric SE | | | 5,875,604 | |
| | 52,335 | | | Siemens AG | | | 5,370,677 | |
| | 24,419 | | | Sulzer AG | | | 2,118,987 | |
| | 46,360 | | | TransDigm Group, Inc.* | | | 12,224,668 | |
| | 131,014 | | | United Technologies Corp. | | | 13,435,486 | |
| | 50,661 | | | Wabco Holdings, Inc.* | | | 4,639,028 | |
| | 69,178 | | | WESCO International, Inc.* | | | 3,561,975 | |
| | 155,455 | | | Zumtobel Group AG | | | 1,892,229 | |
| | | | | | | | |
| | | | | | | 295,031,255 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 0.6% | |
| | 129,493 | | | Clean Harbors, Inc.* | | | 6,747,880 | |
| | 101,624 | | | Equifax, Inc. | | | 13,048,522 | |
| | 16,533 | | | IHS, Inc. Class A* | | | 1,911,380 | |
| | 35,387 | | | Stericycle, Inc.* | | | 3,684,494 | |
| | 133,800 | | | TransUnion* | | | 4,474,272 | |
| | 58,410 | | | Waste Connections, Inc.* | | | 4,208,441 | |
| | | | | | | | |
| | | | | | | 34,074,989 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.4% | |
| | 36,138,000 | | | Global Brands Group Holding Ltd.* | | | 3,179,367 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Consumer Durables & Apparel - 2.4% - (continued) | |
| | 229,734 | | | Harman International Industries, Inc. | | $ | 16,499,496 | |
| | 360,098 | | | Kate Spade & Co.* | | | 7,421,620 | |
| | 339,551 | | | Lennar Corp. Class A | | | 15,653,301 | |
| | 127,476 | | | Luxottica Group S.p.A. | | | 6,212,879 | |
| | 859,192 | | | NIKE, Inc. Class B | | | 47,427,398 | |
| | 146,159 | | | Pandora A/S | | | 19,906,760 | |
| | 224,691 | | | Persimmon plc | | | 4,357,137 | |
| | 259,670 | | | PulteGroup, Inc. | | | 5,060,968 | |
| | 112,203 | | | Ralph Lauren Corp. | | | 10,055,633 | |
| | 120,040 | | | Under Armour, Inc. Class A* | | | 4,817,205 | |
| | | | | | | | |
| | | | | | | 140,591,764 | |
| | | | | | | | |
| | | | Consumer Services - 2.2% | |
| | 139,063 | | | Aramark | | | 4,647,485 | |
| | 19,976 | | | Chipotle Mexican Grill, Inc.* | | | 8,045,534 | |
| | 514,322 | | | Hilton Worldwide Holdings, Inc. | | | 11,587,675 | |
| | 39,731 | | | Jack in the Box, Inc. | | | 3,413,688 | |
| | 379,796 | | | Las Vegas Sands Corp. | | | 16,517,328 | |
| | 197,103 | | | LifeLock, Inc.* | | | 3,116,198 | |
| | 160,735 | | | McDonald’s Corp. | | | 19,342,850 | |
| | 91,799 | | | Norwegian Cruise Line Holdings Ltd.* | | | 3,657,272 | |
| | 52,516 | | | Panera Bread Co. Class A* | | | 11,130,241 | |
| | 610,400 | | | Sands China Ltd. | | | 2,065,540 | |
| | 565,789 | | | Wyndham Worldwide Corp. | | | 40,301,151 | |
| | | | | | | | |
| | | | | | | 123,824,962 | |
| | | | | | | | |
| | | | Diversified Financials - 3.6% | |
| | 347,193 | | | American Express Co. | | | 21,095,447 | |
| | 415,799 | | | Banca Generali S.p.A. | | | 8,334,049 | |
| | 104,415 | | | BlackRock, Inc. | | | 35,765,270 | |
| | 51,497 | | | Intercontinental Exchange, Inc. | | | 13,181,172 | |
| | 121,156 | | | Invesco Ltd. | | | 3,094,324 | |
| | 109,967 | | | Legg Mason, Inc. | | | 3,242,927 | |
| | 4,882,285 | | | LendingClub Corp. PIPE* | | | 20,993,825 | |
| | 861,987 | | | Markit, Ltd.* | | | 28,100,776 | |
| | 678,269 | | | OneMain Holdings, Inc.* | | | 15,478,099 | |
| | 335,666 | | | Raymond James Financial, Inc. | | | 16,548,334 | |
| | 243,186 | | | S&P Global, Inc. | | | 26,084,130 | |
| | 107,556 | | | Santander Consumer USA Holdings, Inc.* | | | 1,111,053 | |
| | 772,838 | | | Silver Run Acquisition Corp.* | | | 7,712,923 | |
| | 74,700 | | | Solar Cayman Ltd.(1)(2)(3) | | | 18,675 | |
| | 132,909 | | | Synchrony Financial* | | | 3,359,940 | |
| | 294,190 | | | WisdomTree Investments, Inc. | | | 2,880,120 | |
| | | | | | | | |
| | | | | | | 207,001,064 | |
| | | | | | | | |
| | | | Energy - 5.3% | |
| | 321,006 | | | Anadarko Petroleum Corp. | | | 17,093,569 | |
| | 348,973 | | | Cabot Oil & Gas Corp. | | | 8,982,565 | |
| | 329,314 | | | Canadian Natural Resources Ltd. | | | 10,152,751 | |
| | 235,177 | | | Chevron Corp. | | | 24,653,605 | |
| | 1,646,393 | | | Cobalt International Energy, Inc.* | | | 2,206,167 | |
| | 169,326 | | | Continental Resources, Inc.* | | | 7,665,388 | |
| | 155,788 | | | Diamondback Energy, Inc.* | | | 14,209,423 | |
| | 64,594 | | | Energen Corp. | | | 3,114,077 | |
| | 57,435 | | | EOG Resources, Inc. | | | 4,791,228 | |
| | 470,018 | | | Golar LNG Ltd. | | | 7,285,279 | |
| | 332,078 | | | Halliburton Co. | | | 15,039,813 | |
| | 105,697 | | | Helmerich & Payne, Inc. | | | 7,095,440 | |
| | 68,333 | | | Hess Corp. | | | 4,106,813 | |
| | 208,210 | | | HollyFrontier Corp. | | | 4,949,152 | |
| | 626,950 | | | Imperial Oil Ltd. | | | 19,786,542 | |
| | 2,642,184 | | | Karoon Gas Australia Ltd.* | | | 2,579,824 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Energy - 5.3% - (continued) | |
| | 857,069 | | | Marathon Oil Corp. | | $ | 12,864,606 | |
| | 72,047 | | | National Oilwell Varco, Inc. | | | 2,424,381 | |
| | 214,450 | | | Occidental Petroleum Corp. | | | 16,203,842 | |
| | 659,508 | | | Petroleo Brasileiro S.A. ADR* | | | 4,722,077 | |
| | 234,920 | | | Pioneer Natural Resources Co. | | | 35,522,253 | |
| | 6,669 | | | PrairieSky Royalty Ltd. | | | 126,571 | |
| | 271,487 | | | QEP Resources, Inc. | | | 4,786,316 | |
| | 4,059,313 | | | Rosneft PJSC GDR | | | 20,783,682 | |
| | 248,842 | | | Royal Dutch Shell plc Class B | | | 6,875,149 | |
| | 545,840 | | | Southwestern Energy Co.* | | | 6,866,667 | |
| | 776,131 | | | Suncor Energy, Inc. | | | 21,522,113 | |
| | 416,100 | | | Total S.A. | | | 19,954,487 | |
| | 807,071 | | | Trican Well Service Ltd.* | | | 1,542,990 | |
| | | | | | | | |
| | | | | | | 307,906,770 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.0% | |
| | 551,477 | | | Costco Wholesale Corp. | | | 86,603,948 | |
| | 171,205 | | | Seven & I Holdings Co., Ltd. | | | 7,178,300 | |
| | 638,737 | | | Whole Foods Market, Inc. | | | 20,452,359 | |
| | | | | | | | |
| | | | | | | 114,234,607 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 4.1% | |
| | 756,528 | | | British American Tobacco plc | | | 49,044,960 | |
| | 620,035 | | | Coca-Cola Co. | | | 28,106,187 | |
| | 102,310 | | | ConAgra Foods, Inc. | | | 4,891,441 | |
| | 474,282 | | | Molson Coors Brewing Co. Class B | | | 47,964,139 | |
| | 831,196 | | | Mondelez International, Inc. Class A | | | 37,827,730 | |
| | 160,900 | | | Monster Beverage Corp.* | | | 25,858,239 | |
| | 160,004 | | | PepsiCo, Inc. | | | 16,950,824 | |
| | 297,600 | | | Post Holdings, Inc.* | | | 24,608,544 | |
| | | | | | | | |
| | | | | | | 235,252,064 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 5.4% | |
| | 12,300 | | | ABIOMED, Inc.* | | | 1,344,267 | |
| | 363,800 | | | Acadia Healthcare Co., Inc.* | | | 20,154,520 | |
| | 32,523 | | | athenahealth, Inc.* | | | 4,488,499 | |
| | 122,280 | | | Becton Dickinson and Co. | | | 20,737,465 | |
| | 1,163,751 | | | Boston Scientific Corp.* | | | 27,196,861 | |
| | 272,129 | | | Cardinal Health, Inc. | | | 21,228,783 | |
| | 10,352,792 | | | CareView Communications, Inc.* | | | 1,449,391 | |
| | 110,097 | | | Cerner Corp.* | | | 6,451,684 | |
| | 941,414 | | | Community Health Systems, Inc.* | | | 11,344,039 | |
| | 3,756,574 | | | Corindus Vascular Robotics, Inc.* | | | 5,371,901 | |
| | 216,994 | | | DENTSPLY SIRONA, Inc. | | | 13,462,308 | |
| | 83,554 | | | DexCom, Inc.* | | | 6,628,339 | |
| | 315,407 | | | Envision Healthcare Holdings, Inc.* | | | 8,001,876 | |
| | 57,731 | | | Essilor International S.A. | | | 7,587,526 | |
| | 675,744 | | | HCA Holdings, Inc.* | | | 52,039,045 | |
| | 144,768 | | | Hologic, Inc.* | | | 5,008,973 | |
| | 107,928 | | | Insulet Corp.* | | | 3,263,743 | |
| | 94,629 | | | McKesson Corp. | | | 17,662,503 | |
| | 57,798 | | | MEDNAX, Inc.* | | | 4,186,309 | |
| | 355,015 | | | Medtronic plc | | | 30,804,651 | |
| | 1,031,292 | | | Senseonics Holdings, Inc.* | | | 4,052,978 | |
| | 42,476 | | | Stryker Corp. | | | 5,089,899 | |
| | 182,100 | | | UnitedHealth Group, Inc. | | | 25,712,520 | |
| | 177,004 | | | Veeva Systems, Inc. Class A* | | | 6,039,376 | |
| | | | | | | | |
| | | | | | | 309,307,456 | |
| | | | | | | | |
| | | | Household & Personal Products - 1.2% | |
| | 101,668 | | | Beiersdorf AG | | | 9,625,366 | |
| | 509,731 | | | Colgate-Palmolive Co. | | | 37,312,309 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Household & Personal Products - 1.2% - (continued) | |
| | 321,507 | | | Coty, Inc. Class A | | $ | 8,355,967 | |
| | 150,794 | | | Estee Lauder Cos., Inc. Class A | | | 13,725,270 | |
| | 31,961 | | | Procter & Gamble Co. | | | 2,706,138 | |
| | | | | | | | |
| | | | | | | 71,725,050 | |
| | | | | | | | |
| | | | Insurance - 5.3% | |
| | 243,224 | | | American International Group, Inc. | | | 12,864,117 | |
| | 302,278 | | | Arthur J Gallagher & Co. | | | 14,388,433 | |
| | 313,463 | | | Assicurazioni Generali S.p.A. | | | 3,696,475 | |
| | 776,383 | | | Chubb Ltd. | | | 101,481,022 | |
| | 671,504 | | | Delta Lloyd N.V. | | | 2,359,453 | |
| | 11,356 | | | Markel Corp.* | | | 10,819,770 | |
| | 457,332 | | | Marsh & McLennan Cos., Inc. | | | 31,308,949 | |
| | 1,033,310 | | | MetLife, Inc. | | | 41,156,737 | |
| | 398,543 | | | Principal Financial Group, Inc. | | | 16,384,103 | |
| | 515,200 | | | Prudential Financial, Inc. | | | 36,754,368 | |
| | 219,500 | | | Tokio Marine Holdings, Inc. | | | 7,307,388 | |
| | 165,753 | | | Torchmark Corp. | | | 10,246,850 | |
| | 271,098 | | | Unum Group | | | 8,618,205 | |
| | 41,697 | | | Zurich Insurance Group AG* | | | 10,315,116 | |
| | | | | | | | |
| | | | | | | 307,700,986 | |
| | | | | | | | |
| | | | Materials - 3.9% | |
| | 56,861 | | | Agrium, Inc. | | | 5,141,372 | |
| | 511,900 | | | Anglo American plc | | | 5,017,764 | |
| | 79,999 | | | Bemis Co., Inc. | | | 4,119,149 | |
| | 1,794,252 | | | BHP Billiton plc | | | 22,709,713 | |
| | 325,320 | | | BRAAS Monier Building Group S.A. | | | 7,624,929 | |
| | 69,553 | | | Cabot Corp. | | | 3,175,790 | |
| | 193,412 | | | Celanese Corp. Series A | | | 12,658,815 | |
| | 366,699 | | | CF Industries Holdings, Inc. | | | 8,837,446 | |
| | 348,515 | | | Constellium N.V. Class A* | | | 1,634,535 | |
| | 214,674 | | | CRH plc | | | 6,295,012 | |
| | 695,600 | | | Dow Chemical Co. | | | 34,578,276 | |
| | 259,925 | | | International Paper Co. | | | 11,015,622 | |
| | 11,718,182 | | | Ivanhoe Mines Ltd. Class A* | | | 9,160,853 | |
| | 177,396 | | | LafargeHolcim Ltd.* | | | 7,421,810 | |
| | 672,865 | | | Louisiana-Pacific Corp.* | | | 11,674,208 | |
| | 590,700 | | | Methanex Corp. | | | 17,186,743 | |
| | 25,530 | | | Monsanto Co. | | | 2,640,057 | |
| | 74,946 | | | Norbord, Inc. | | | 1,465,332 | |
| | 296,965 | | | Platform Specialty Products Corp.* | | | 2,637,049 | |
| | 177,254 | | | Praxair, Inc. | | | 19,921,577 | |
| | 158,278 | | | Reliance Steel & Aluminum Co. | | | 12,171,578 | |
| | 219,018 | | | Wacker Chemie AG | | | 19,180,087 | |
| | | | | | | | |
| | | | | | | 226,267,717 | |
| | | | | | | | |
| | | | Media - 1.8% | |
| | 98,332 | | | DISH Network Corp. Class A* | | | 5,152,597 | |
| | 48,142 | | | John Wiley & Sons, Inc. Class A | | | 2,512,050 | |
| | 1,772,380 | | | SES S.A. | | | 37,942,284 | |
| | 2,861,533 | | | Sky plc | | | 32,516,844 | |
| | 1,041,000 | | | Twenty-First Century Fox, Inc. Class A | | | 28,159,050 | |
| | 29,800 | | | Weinstein Co. LLC*(1)(2)(3) | | | — | |
| | | | | | | | |
| | | | | | | 106,282,825 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.2% | |
| | 250,113 | | | Alder Biopharmaceuticals, Inc.* | | | 6,245,322 | |
| | 282,446 | | | Alkermes plc* | | | 12,207,316 | |
| | 282,961 | | | Allergan plc* | | | 65,389,457 | |
| | 186,550 | | | AstraZeneca plc ADR | | | 5,631,944 | |
| | 156,080 | | | AstraZeneca plc | | | 9,331,002 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Pharmaceuticals, Biotechnology &
Life Sciences -
12.2% - (continued) | |
| | 26,358 | | | Biogen, Inc.* | | $ | 6,373,892 | |
| | 2,434,911 | | | Bristol-Myers Squibb Co. | | | 179,087,704 | |
| | 200,813 | | | Cepheid* | | | 6,175,000 | |
| | 274,029 | | | Coherus Biosciences, Inc.* | | | 4,628,350 | |
| | 316,343 | | | Eisai Co., Ltd. | | | 17,663,357 | |
| | 531,828 | | | Hikma Pharmaceuticals plc | | | 17,513,614 | |
| | 219,905 | | | Incyte Corp.* | | | 17,588,002 | |
| | 35,141 | | | Ionis Pharmaceuticals, Inc.* | | | 818,434 | |
| | 341,888 | | | Johnson & Johnson | | | 41,471,014 | |
| | 2,754,965 | | | Merck & Co., Inc. | | | 158,713,534 | |
| | 30,282 | | | Mettler-Toledo International, Inc.* | | | 11,050,507 | |
| | 463,796 | | | Mylan N.V.* | | | 20,054,539 | |
| | 380,987 | | | Novavax, Inc.* | | | 2,769,775 | |
| | 221,875 | | | Portola Pharmaceuticals, Inc.* | | | 5,236,250 | |
| | 142,248 | | | Regeneron Pharmaceuticals, Inc.* | | | 49,677,269 | |
| | 43,256 | | | Roche Holding AG | | | 11,414,384 | |
| | 112,126 | | | TESARO, Inc.* | | | 9,424,190 | |
| | 189,399 | | | Teva Pharmaceutical Industries Ltd. ADR | | | 9,513,512 | |
| | 4,270,342 | | | TherapeuticsMD, Inc.* | | | 36,297,907 | |
| | | | | | | | |
| | | | | | | 704,276,275 | |
| | | | | | | | |
| | | | Real Estate - 1.5% | |
| | 254,110 | | | American Tower Corp. REIT | | | 28,869,437 | |
| | 274,390 | | | Castellum AB | | | 3,901,258 | |
| | 378,757 | | | Columbia Property Trust, Inc. REIT | | | 8,105,400 | |
| | 14,964 | | | Equinix, Inc. REIT | | | 5,801,992 | |
| | 557,111 | | | Host Hotels & Resorts, Inc. REIT | | | 9,030,769 | |
| | 60,094 | | | ICADE REIT | | | 4,222,827 | |
| | 408,276 | | | STORE Capital Corp. REIT | | | 12,023,728 | |
| | 454,007 | | | Vonovia SE | | | 16,577,594 | |
| | | | | | | | |
| | | | | | | 88,533,005 | |
| | | | | | | | |
| | | | Retailing - 4.4% | |
| | 88,557 | | | Advance Auto Parts, Inc. | | | 14,313,468 | |
| | 8,451,700 | | | Allstar Co.*(1)(2)(3) | | | 8,029,115 | |
| | 47,506 | | | Amazon.com, Inc.* | | | 33,996,244 | |
| | 208,674 | | | CarMax, Inc.* | | | 10,231,286 | |
| | 162,819 | | | Dick’s Sporting Goods, Inc. | | | 7,336,624 | |
| | 225,951 | | | Expedia, Inc. | | | 24,018,591 | |
| | 120,505 | | | Home Depot, Inc. | | | 15,387,283 | |
| | 17,385 | | | Honest Co.(1)(2)(3) | | | 687,229 | |
| | 128,859 | | | L Brands, Inc. | | | 8,650,305 | |
| | 203,312 | | | Lowe’s Cos., Inc. | | | 16,096,211 | |
| | 50,835 | | | Netflix, Inc.* | | | 4,650,386 | |
| | 101,987 | | | Nordstrom, Inc. | | | 3,880,605 | |
| | 11,594 | | | Priceline Group, Inc.* | | | 14,474,066 | |
| | 92,340 | | | Restoration Hardware Holdings, Inc.* | | | 2,648,311 | |
| | 400,616 | | | Signet Jewelers Ltd. | | | 33,014,765 | |
| | 252,868 | | | TJX Cos., Inc. | | | 19,528,996 | |
| | 280,504 | | | Tory Burch LLC*(1)(2)(3) | | | 15,374,397 | |
| | 245,136 | | | TripAdvisor, Inc.* | | | 15,762,245 | |
| | 114,919 | | | Wayfair, Inc. Class A* | | | 4,481,841 | |
| | | | | | | | |
| | | | | | | 252,561,968 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.8% | |
| | 198,580 | | | Applied Materials, Inc. | | | 4,759,963 | |
| | 141,033 | | | Broadcom Ltd. | | | 21,916,528 | |
| | 106,059 | | | Cypress Semiconductor Corp. | | | 1,118,922 | |
| | 356,186 | | | First Solar, Inc.* | | | 17,267,897 | |
| | 707,040 | | | Intel Corp. | | | 23,190,912 | |
| | 109,082 | | | Lam Research Corp. | | | 9,169,433 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment -
3.8% - (continued) | |
| | 247,112 | | | Maxim Integrated Products, Inc. | | $ | 8,819,427 | |
| | 559,660 | | | Mellanox Technologies Ltd.* | | | 26,841,294 | |
| | 171,317 | | | Micron Technology, Inc.* | | | 2,357,322 | |
| | 553,502 | | | NXP Semiconductors N.V.* | | | 43,361,347 | |
| | 55,088 | | | Qorvo, Inc.* | | | 3,044,163 | |
| | 169,011 | | | QUALCOMM, Inc. | | | 9,053,919 | |
| | 87,760 | | | Silicon Motion Technology Corp. ADR | | | 4,194,928 | |
| | 127,044 | | | SK Hynix, Inc. | | | 3,615,289 | |
| | 50,188 | | | Skyworks Solutions, Inc. | | | 3,175,897 | |
| | 792,797 | | | Sumco Corp. | | | 5,078,870 | |
| | 1,870,833 | | | SunPower Corp.* | | | 28,979,203 | |
| | 80,786 | | | Synaptics, Inc.* | | | 4,342,247 | |
| | | | | | | | |
| | | | | | | 220,287,561 | |
| | | | | | | | |
| | | | Software & Services - 13.3% | |
| | 210,290 | | | Accenture plc Class A | | | 23,823,754 | |
| | 1,000,484 | | | Activision Blizzard, Inc. | | | 39,649,181 | |
| | 267,129 | | | Adobe Systems, Inc.* | | | 25,588,287 | |
| | 296,421 | | | Akamai Technologies, Inc.* | | | 16,578,827 | |
| | 482,643 | | | Alibaba Group Holding Ltd. ADR* | | | 38,384,598 | |
| | 48,440 | | | Alliance Data Systems Corp.* | | | 9,490,365 | |
| | 19,279 | | | Alphabet, Inc. Class A* | | | 13,563,355 | |
| | 133,730 | | | Alphabet, Inc. Class C* | | | 92,554,533 | |
| | 276,224 | | | Autodesk, Inc.* | | | 14,954,767 | |
| | 187,968 | | | Automatic Data Processing, Inc. | | | 17,268,620 | |
| | 124,559 | | | Blackhawk Network Holdings, Inc.* | | | 4,171,481 | |
| | 1,107,393 | | | Cadence Design Systems, Inc.* | | | 26,909,650 | |
| | 102,697 | | | Cognizant Technology Solutions Corp. Class A* | | | 5,878,376 | |
| | 24,070 | | | CoStar Group, Inc.* | | | 5,263,146 | |
| | 184,967 | | | Dropbox, Inc. Class B(1)(2)(3) | | | 1,507,481 | |
| | 310,487 | | | Envestnet, Inc.* | | | 10,342,322 | |
| | 710,503 | | | Facebook, Inc. Class A* | | | 81,196,283 | |
| | 473,947 | | | Genpact Ltd.* | | | 12,720,737 | |
| | 773,426 | | | Global Payments, Inc. | | | 55,207,148 | |
| | 143,279 | | | GoDaddy, Inc. Class A* | | | 4,468,872 | |
| | 438,650 | | | Gogo, Inc.* | | | 3,680,273 | |
| | 1,374,523 | | | Microsoft Corp. | | | 70,334,342 | |
| | 835,736 | | | Mobileye N.V.* | | | 38,560,859 | |
| | 117,576 | | | Nintendo Co., Ltd. | | | 16,895,563 | |
| | 574,505 | | | Quotient Technology, Inc.* | | | 7,704,112 | |
| | 291,652 | | | Salesforce.com, Inc.* | | | 23,160,085 | |
| | 424,446 | | | ServiceNow, Inc.* | | | 28,183,214 | |
| | 181,444 | | | SS&C Technologies Holdings, Inc. | | | 5,094,948 | |
| | 139,936 | | | Twitter, Inc.* | | | 2,366,318 | |
| | 14,300 | | | Ultimate Software Group, Inc.* | | | 3,007,147 | |
| | 149,063 | | | VeriSign, Inc.* | | | 12,887,987 | |
| | 58,873 | | | Visa, Inc. Class A | | | 4,366,610 | |
| | 325,519 | | | Workday, Inc. Class A* | | | 24,306,504 | |
| | 99,000 | | | Yandex N.V. Class A* | | | 2,163,150 | |
| | 167,145 | | | Zendesk, Inc.* | | | 4,409,285 | |
| | 336,869 | | | Zillow Group, Inc. Class A* | | | 12,346,249 | |
| | 145,235 | | | Zillow Group, Inc. Class C* | | | 5,269,126 | |
| | | | | | | | |
| | | | | | | 764,257,555 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 2.9% | |
| | 211,570 | | | Amphenol Corp. Class A | | | 12,129,308 | |
| | 79,542 | | | Arista Networks, Inc.* | | | 5,120,914 | |
| | 274,635 | | | ARRIS International plc* | | | 5,756,349 | |
| | 620,000 | | | Catcher Technology Co., Ltd. | | | 4,622,830 | |
| | 1,592,433 | | | Cisco Systems, Inc. | | | 45,686,903 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Technology Hardware & Equipment - 2.9% - (continued) | |
| | 302,300 | | | Motorola Solutions, Inc. | | $ | 19,942,731 | |
| | 44,613 | | | ParkerVision, Inc. PIPE | | | 140,085 | |
| | 492,077 | | | ParkerVision, Inc.* | | | 1,545,122 | |
| | 578,268 | | | Pure Storage, Inc. Class A* | | | 6,303,121 | |
| | 44,647 | | | Samsung Electronics Co., Ltd. | | | 55,601,193 | |
| | 125,097 | | | Trimble Navigation Ltd.* | | | 3,047,363 | |
| | 125,289 | | | Western Digital Corp. | | | 5,921,158 | |
| | | | | | | | |
| | | | | | | 165,817,077 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.3% | |
| | 114,701 | | | Millicom International Cellular S.A. | | | 7,035,683 | |
| | 250,500 | | | Nippon Telegraph & Telephone Corp. | | | 11,747,168 | |
| | 340,400 | | | NTT DoCoMo, Inc. | | | 9,180,089 | |
| | 152,856 | | | T-Mobile US, Inc.* | | | 6,614,079 | |
| | 349,779 | | | Telenor ASA | | | 5,789,894 | |
| | 491,449 | | | Verizon Communications, Inc. | | | 27,442,512 | |
| | 4,078,528 | | | Zegona Communications plc* | | | 5,809,606 | |
| | | | | | | | |
| | | | | | | 73,619,031 | |
| | | | | | | | |
| | | | Transportation - 4.8% | |
| | 151,382 | | | Alaska Air Group, Inc. | | | 8,824,057 | |
| | 1,052,341 | | | American Airlines Group, Inc. | | | 29,791,774 | |
| | 181,497 | | | Avis Budget Group, Inc.* | | | 5,849,648 | |
| | 390,700 | | | Canadian National Railway Co. | | | 23,070,942 | |
| | 645,743 | | | CSX Corp. | | | 16,840,977 | |
| | 165,410 | | | Deutsche Post AG | | | 4,660,012 | |
| | 269,250 | | | FedEx Corp. | | | 40,866,765 | |
| | 174,316 | | | Genesee & Wyoming, Inc. Class A* | | | 10,275,928 | |
| | 623,090 | | | International Consolidated Airlines Group S.A. | | | 3,090,332 | |
| | 128,657 | | | J.B. Hunt Transport Services, Inc. | | | 10,412,211 | |
| | 5,818,000 | | | Jiangsu Expressway Co., Ltd. Class H | | | 8,124,751 | |
| | 65,534 | | | Landstar System, Inc. | | | 4,499,564 | |
| | 9,794 | | | Macquarie Infrastructure Corp. | | | 725,246 | |
| | 247,800 | | | Southwest Airlines Co. | | | 9,716,238 | |
| | 1,094,458 | | | Swift Transportation Co.* | | | 16,865,598 | |
| | 428,750 | | | Union Pacific Corp. | | | 37,408,437 | |
| | 90,426 | | | United Continental Holdings, Inc.* | | | 3,711,083 | |
| | 327,851 | | | United Parcel Service, Inc. Class B | | | 35,316,110 | |
| | 328,729 | | | XPO Logistics, Inc.* | | | 8,632,424 | |
| | | | | | | | |
| | | | | | | 278,682,097 | |
| | | | | | | | |
| | | | Utilities - 2.8% | |
| | 21,978 | | | American Water Works Co., Inc. | | | 1,857,361 | |
| | 353,269 | | | Avangrid, Inc. | | | 16,271,570 | |
| | 332,860 | | | Calpine Corp.* | | | 4,909,685 | |
| | 1,735,012 | | | Centrica plc | | | 5,246,657 | |
| | 23,701,000 | | | China Longyuan Power Group Corp. Ltd. Class H | | | 19,785,620 | |
| | 262,116 | | | Dominion Resources, Inc. | | | 20,426,700 | |
| | 292,193 | | | E.ON SE | | | 2,949,633 | |
| | 66,725 | | | Edison International | | | 5,182,531 | |
| | 379,897 | | | Exelon Corp. | | | 13,813,055 | |
| | 290,306 | | | Gas Natural SDG S.A. | | | 5,770,590 | |
| | 254,636 | | | National Grid plc | | | 3,744,504 | |
| | 140,346 | | | NextEra Energy, Inc. | | | 18,301,118 | |
| | 330,288 | | | OGE Energy Corp. | | | 10,816,932 | |
| | 68,871 | | | Pattern Energy Group, Inc. | | | 1,581,967 | |
| | 258,014 | | | PG&E Corp. | | | 16,492,255 | |
| | 655,000 | | | Power Assets Holdings Ltd. | | | 6,022,410 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.7% - (continued) | |
| | | | Utilities - 2.8% - (continued) | |
| | 395,615 | | | RWE AG* | | $ | 6,300,248 | |
| | | | | | | | |
| | | | | | | 159,472,836 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $5,436,787,629) | | $ | 5,579,104,120 | |
| | | | | | | | |
|
| PREFERRED STOCKS - 1.1% | |
| | | | Consumer Durables & Apparel - 0.0% | |
| | 127,917 | | | One Kings Lane, Inc.(1)(2)(3) | | $ | 133,034 | |
| | | | | | | | |
| | | | Consumer Services - 0.1% | |
| | 16,619 | | | Airbnb, Inc. Series E(1)(2)(3) | | | 2,166,951 | |
| | 161,097 | | | DraftKings, Inc. Series D(1)(2)(3) | | | 639,555 | |
| | 139,659 | | | DraftKings, Inc. Series D-1(1)(2)(3) | | | 729,020 | |
| | | | | | | | |
| | | | | | | 3,535,526 | |
| | | | | | | | |
| | | | Diversified Financials - 0.1% | |
| | 284,119 | | | Social Finance, Inc.(1)(2)(3) | | | 4,034,112 | |
| | | | | | | | |
| | | | Software & Services - 0.9% | |
| | 56,702 | | | Cloudera, Inc.(1)(2)(3) | | | 912,335 | |
| | 29,504 | | | Magic Leap Inc. Series C(1)(2)(3) | | | 679,566 | |
| | 50,200 | | | Nanigans, Inc.(1)(2)(3) | | | 457,322 | |
| | 793,410 | | | Pinterest, Inc. Series G(1)(2)(3) | | | 4,847,735 | |
| | 20,891 | | | Sharecare(1)(2)(3) | | | 4,698,031 | |
| | 815,160 | | | Uber Technologies, Inc.(1)(2)(3) | | | 39,757,169 | |
| | 293,655 | | | Zuora, Inc. Series F(1)(2)(3) | | | 1,159,937 | |
| | | | | | | | |
| | | | | | | 52,512,095 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.0% | |
| | 3,739 | | | DocuSign, Inc. Series B(1)(2)(3) | | | 63,339 | |
| | 1,120 | | | DocuSign, Inc. Series B-1(1)(2)(3) | | | 18,973 | |
| | 2,687 | | | DocuSign, Inc. Series D(1)(2)(3) | | | 45,518 | |
| | 69,493 | | | DocuSign, Inc. Series E(1)(2)(3) | | | 1,177,211 | |
| | 10,835 | | | DocuSign, Inc. Series F(1)(2)(3) | | | 183,545 | |
| | | | | | | | |
| | | | | | | 1,488,586 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $37,888,909) | | $ | 61,703,353 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.0% | |
| | | | Retailing - 0.0% | |
| | 40,566 | | | Honest Co. Series C(1)(2)(3) | | $ | 1,603,574 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $1,097,607) | | $ | 1,603,574 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $5,475,774,145) | | $ | 5,642,411,047 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.4% | |
| | | | Other Investment Pools & Funds - 1.4% | |
| | 80,726,249 | | | BlackRock Liquidity Funds TempFund Portfolio | | $ | 80,726,249 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $80,726,249) | | $ | 80,726,249 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $5,556,500,394)^ | | | 99.2 | % | | $ | 5,723,137,296 | |
| | | | Other Assets and Liabilities | | | 0.8 | % | | | 47,632,307 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 5,770,769,603 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 599,376,452 | |
Unrealized Depreciation | | | (432,739,550 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 166,636,902 | |
| | | | |
| (1) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of these securities was $94,719,242, which represents 1.6% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 06/2015 | | | | 16,619 | | | Airbnb, Inc. Series E Preferred | | $ | 1,547,136 | |
| | 08/2011 | | | | 8,451,700 | | | Allstar Co. | | | 3,676,649 | |
| | 02/2014 | | | | 56,702 | | | Cloudera, Inc. Preferred | | | 825,581 | |
| | 02/2014 | | | | 3,739 | | | DocuSign, Inc. Series B Preferred | | | 49,102 | |
| | 02/2014 | | | | 1,120 | | | DocuSign, Inc. Series B-1 Preferred | | | 14,708 | |
| | 02/2014 | | | | 2,687 | | | DocuSign, Inc. Series D Preferred | | | 35,287 | |
| | 02/2014 | | | | 69,493 | | | DocuSign, Inc. Series E Preferred | | | 912,610 | |
| | 04/2015 | | | | 10,835 | | | DocuSign, Inc. Series F Preferred | | | 206,874 | |
| | 07/2015 | | | | 161,097 | | | DraftKings, Inc. Series D Preferred | | | 867,652 | |
| | 08/2015 | | | | 139,659 | | | DraftKings, Inc. Series D-1 Preferred | | | 1,070,543 | |
| | 05/2012 | | | | 184,967 | | | Dropbox, Inc. Class B | | | 1,674,267 | |
| | 06/2015 | | | | 350,600 | | | HF Global, Inc. | | | 4,713,607 | |
| | 08/2014 | | | | 17,385 | | | Honest Co. | | | 470,391 | |
| | 08/2014 | | | | 40,566 | | | Honest Co. Series C Convertible Preferred | | | 1,097,607 | |
| | 12/2015 | | | | 29,504 | | | Magic Leap Inc. Series C Preferred | | | 679,566 | |
| | 03/2015 | | | | 50,200 | | | Nanigans, Inc. Preferred | | | 548,109 | |
| | 01/2014 | | | | 127,917 | | | One Kings Lane, Inc. Preferred | | | 1,972,096 | |
| | 03/2015 | | | | 793,410 | | | Pinterest, Inc. Series G Preferred | | | 5,695,963 | |
| | 03/2015 | | | | 20,891 | | | Sharecare Preferred | | | 5,220,034 | |
| | 09/2015 | | | | 284,119 | | | Social Finance, Inc. Preferred | | | 4,482,347 | |
| | 03/2007 | | | | 74,700 | | | Solar Cayman Ltd. | | | 21,894 | |
| | 11/2013 | | | | 280,504 | | | Tory Burch LLC | | | 21,984,886 | |
| | 06/2014 | | | | 815,160 | | | Uber Technologies, Inc. Preferred | | | 12,645,618 | |
| | 03/2016 | | | | 29,800 | | | Weinstein Co. LLC | | | 27,950,957 | |
| | 01/2015 | | | | 293,655 | | | Zuora, Inc. Series F Preferred | | | 1,115,683 | |
| | | | | | | | | | | | |
| | | | | | | | | | $ | 99,479,167 | |
| | | | | | | | | | | | |
| | At June 30, 2016, the aggregate value of these securities was $94,719,242, which represents 1.6% of total net assets. |
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $94,719,242, which represents 1.6% of total net assets. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at June 30, 2016 | |
Currency | | Buy/Sell | | Delivery
Date | | | Counterparty | | Contract
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
EUR | | Sell | | | 09/21/16 | | | CBA | | $ | 44,975,227 | | | $ | 44,090,104 | | | $ | 885,123 | |
EUR | | Sell | | | 09/21/16 | | | CBK | | | 6,323,715 | | | | 6,322,598 | | | | 1,117 | |
GBP | | Sell | | | 09/21/16 | | | JPM | | | 5,226,164 | | | | 4,805,698 | | | | 420,466 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 1,306,706 | |
| | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
CBA | | Commonwealth Bank of Australia |
CBK | | Citibank NA |
JPM | | JP Morgan Chase & Co. |
|
| Currency Abbreviations: |
EUR | | Euro |
GBP | | British Pound |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
GDR | | Global Depositary Receipt |
PIPE | | Private Investment in Public Equity |
PJSC | | Private Joint Stock Company |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 82,269,090 | | | $ | 81,489,132 | | | $ | 779,958 | | | $ | — | |
Banks | | | 310,126,116 | | | | 267,595,792 | | | | 42,530,324 | | | | — | |
Capital Goods | | | 295,031,255 | | | | 258,175,823 | | | | 31,060,014 | | | | 5,795,418 | |
Commercial & Professional Services | | | 34,074,989 | | | | 34,074,989 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 140,591,764 | | | | 106,935,621 | | | | 33,656,143 | | | | — | |
Consumer Services | | | 123,824,962 | | | | 121,759,422 | | | | 2,065,540 | | | | — | |
Diversified Financials | | | 207,001,064 | | | | 198,648,340 | | | | 8,334,049 | | | | 18,675 | |
Energy | | | 307,906,770 | | | | 278,497,310 | | | | 29,409,460 | | | | — | |
Food & Staples Retailing | | | 114,234,607 | | | | 107,056,307 | | | | 7,178,300 | | | | — | |
Food, Beverage & Tobacco | | | 235,252,064 | | | | 186,207,104 | | | | 49,044,960 | | | | — | |
Health Care Equipment & Services | | | 309,307,456 | | | | 301,719,930 | | | | 7,587,526 | | | | — | |
Household & Personal Products | | | 71,725,050 | | | | 62,099,684 | | | | 9,625,366 | | | | — | |
Insurance | | | 307,700,986 | | | | 284,022,554 | | | | 23,678,432 | | | | — | |
Materials | | | 226,267,717 | | | | 158,018,402 | | | | 68,249,315 | | | | — | |
Media | | | 106,282,825 | | | | 35,823,697 | | | | 70,459,128 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 704,276,275 | | | | 648,353,918 | | | | 55,922,357 | | | | — | |
Real Estate | | | 88,533,005 | | | | 63,831,326 | | | | 24,701,679 | | | | — | |
Retailing | | | 252,561,968 | | | | 228,471,227 | | | | — | | | | 24,090,741 | |
Semiconductors & Semiconductor Equipment | | | 220,287,561 | | | | 211,593,402 | | | | 8,694,159 | | | | — | |
Software & Services | | | 764,257,555 | | | | 745,854,511 | | | | 16,895,563 | | | | 1,507,481 | |
Technology Hardware & Equipment | | | 165,817,077 | | | | 105,593,054 | | | | 60,224,023 | | | | — | |
Telecommunication Services | | | 73,619,031 | | | | 39,866,197 | | | | 33,752,834 | | | | — | |
Transportation | | | 278,682,097 | | | | 262,807,002 | | | | 15,875,095 | | | | — | |
Utilities | | | 159,472,836 | | | | 109,653,174 | | | | 49,819,662 | | | | — | |
Preferred Stocks | | | 61,703,353 | | | | — | | | | — | | | | 61,703,353 | |
Convertible Preferred Stocks | | | 1,603,574 | | | | — | | | | — | | | | 1,603,574 | |
Short-Term Investments | | | 80,726,249 | | | | 80,726,249 | | | | — | | | | — | |
Foreign Currency Contracts(2) | | | 1,306,706 | | | | — | | | | 1,306,706 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 5,724,444,002 | | | $ | 4,978,874,167 | | | $ | 650,850,593 | | | $ | 94,719,242 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, investments valued at $9,388,293 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to: |
| | a) | Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1). |
| | b) | Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1). |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Convertible
Preferred
Stocks | | | Total | |
Beginning balance | | $ | 37,711,677 | | | $ | 63,535,697 | | | $ | 1,838,857 | | | $ | 103,086,231 | |
Purchases | | | — | | | | — | | | | — | | | | — | |
Sales | | | (7,343,067 | ) | | | — | | | | — | | | | (7,343,067 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 1,137,517 | | | | (1,832,344 | ) | | | (235,283 | ) | | | (930,110 | ) |
Transfers into Level 3(1) | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3(1) | | | (93,812 | ) | | | — | | | | — | | | | (93,812 | ) |
| | | | | | | | | | | | | | | | |
Ending balance | | $ | 31,412,315 | | | $ | 61,703,353 | | | $ | 1,603,574 | | | $ | 94,719,242 | |
| | | | | | | | | | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $(1,386,613).
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% | | | |
| | | | Banks - 7.7% | |
| | 767,470 | | | Bank of America Corp. | | $ | 10,184,327 | |
| | 206,970 | | | Citigroup, Inc. | | | 8,773,458 | |
| | 538,830 | | | EverBank Financial Corp. | | | 8,007,014 | |
| | 252,006 | | | JP Morgan Chase & Co. | | | 15,659,653 | |
| | 138,910 | | | PNC Financial Services Group, Inc. | | | 11,305,885 | |
| | | | | | | | |
| | | | 53,930,337 | |
| | | | | | | | |
| | | | Capital Goods - 5.7% | |
| | 148,528 | | | AMETEK, Inc. | | | 6,866,449 | |
| | 98,810 | | | Fortune Brands Home & Security, Inc. | | | 5,728,016 | |
| | 109,564 | | | Honeywell International, Inc. | | | 12,744,484 | |
| | 84,505 | | | Illinois Tool Works, Inc. | | | 8,802,041 | |
| | 35,906 | | | Snap-on, Inc. | | | 5,666,685 | |
| | | | | | | | |
| | | | 39,807,675 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 3.8% | |
| | 87,544 | | | Equifax, Inc. | | | 11,240,650 | |
| | 145,914 | | | Nielsen Holdings plc | | | 7,583,150 | |
| | 96,063 | | | Verisk Analytics, Inc. Class A* | | | 7,788,788 | |
| | | | | | | | |
| | | | 26,612,588 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.5% | |
| | 169,494 | | | VF Corp. | | | 10,422,186 | |
| | | | | | | | |
| | | | Consumer Services - 2.7% | |
| | 268,180 | | | Aramark | | | 8,962,576 | |
| | 167,036 | | | Starbucks Corp. | | | 9,541,096 | |
| | | | | | | | |
| | | | 18,503,672 | |
| | | | | | | | |
| | | | Diversified Financials - 1.5% | |
| | 64,850 | | | S&P Global, Inc. | | | 6,955,811 | |
| | 149,950 | | | Synchrony Financial* | | | 3,790,736 | |
| | | | | | | | |
| | | | 10,746,547 | |
| | | | | | | | |
| | | | Energy - 3.0% | |
| | 121,760 | | | Baker Hughes, Inc. | | | 5,495,029 | |
| | 57,370 | | | Concho Resources, Inc.* | | | 6,842,520 | |
| | 102,845 | | | EOG Resources, Inc. | | | 8,579,330 | |
| | | | | | | | |
| | | | 20,916,879 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 5.0% | |
| | 98,770 | | | Costco Wholesale Corp. | | | 15,510,841 | |
| | 101,213 | | | CVS Health Corp. | | | 9,690,132 | |
| | 274,058 | | | Kroger Co. | | | 10,082,594 | |
| | | | | | | | |
| | | | 35,283,567 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 6.7% | |
| | 231,163 | | | Altria Group, Inc. | | | 15,941,000 | |
| | 76,982 | | | Molson Coors Brewing Co. Class B | | | 7,785,190 | |
| | 330,210 | | | Mondelez International, Inc. Class A | | | 15,027,857 | |
| | 51,816 | | | Monster Beverage Corp.* | | | 8,327,349 | |
| | | | | | | | |
| | | | 47,081,396 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.2% | |
| | 49,202 | | | Aetna, Inc. | | | 6,009,040 | |
| | 165,440 | | | Cerner Corp.* | | | 9,694,784 | |
| | 166,535 | | | Envision Healthcare Holdings, Inc.* | | | 4,224,993 | |
| | 98,978 | | | HCA Holdings, Inc.* | | | 7,622,296 | |
| | 66,794 | | | McKesson Corp. | | | 12,467,100 | |
| | 129,790 | | | Medtronic plc | | | 11,261,878 | |
| | 93,024 | | | UnitedHealth Group, Inc. | | | 13,134,989 | |
| | | | | | | | |
| | | | 64,415,080 | |
| | | | | | | | |
| | | | Household & Personal Products - 3.3% | |
| | 150,130 | | | Colgate-Palmolive Co. | | | 10,989,516 | |
| | 136,143 | | | Estee Lauder Cos., Inc. Class A | | | 12,391,736 | |
| | | | | | | | |
| | | | 23,381,252 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% - (continued) | | | |
| | | | Insurance - 4.7% | |
| | 111,151 | | | Chubb Ltd. | | $ | 14,528,547 | |
| | 154,990 | | | Marsh & McLennan Cos., Inc. | | | 10,610,616 | |
| | 223,852 | | | XL Group plc | | | 7,456,510 | |
| | | | | | | | |
| | | | 32,595,673 | |
| | | | | | | | |
| | | | Materials - 3.8% | |
| | 166,525 | | | Crown Holdings, Inc.* | | | 8,437,822 | |
| | 63,647 | | | Ecolab, Inc. | | | 7,548,534 | |
| | 36,491 | | | Sherwin-Williams Co. | | | 10,716,312 | |
| | | | | | | | |
| | | | 26,702,668 | |
| | | | | | | | |
| | | | Media - 2.0% | |
| | 217,165 | | | Comcast Corp. Class A | | | 14,156,986 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.7% | |
| | 45,470 | | | Allergan plc* | | | 10,507,662 | |
| | 191,340 | | | Bristol-Myers Squibb Co. | | | 14,073,057 | |
| | 117,475 | | | Eli Lilly & Co. | | | 9,251,156 | |
| | 222,913 | | | Merck & Co., Inc. | | | 12,842,018 | |
| | | | | | | | |
| | | | 46,673,893 | |
| | | | | | | | |
| | | | Retailing - 7.3% | |
| | 13,755 | | | AutoZone, Inc.* | | | 10,919,269 | |
| | 118,458 | | | Dollar Tree, Inc.* | | | 11,163,482 | |
| | 165,610 | | | Lowe’s Cos., Inc. | | | 13,111,344 | |
| | 64,980 | | | Signet Jewelers Ltd. | | | 5,355,002 | |
| | 140,405 | | | TJX Cos., Inc. | | | 10,843,478 | |
| | | | | | | | |
| | | | 51,392,575 | |
| | | | | | | | |
| | | | Software & Services - 15.2% | |
| | 69,795 | | | Accenture plc Class A | | | 7,907,075 | |
| | 77,575 | | | Adobe Systems, Inc.* | | | 7,430,909 | |
| | 17,020 | | | Alliance Data Systems Corp.* | | | 3,334,558 | |
| | 21,075 | | | Alphabet, Inc. Class A* | | | 14,826,895 | |
| | 6,026 | | | Alphabet, Inc. Class C* | | | 4,170,595 | |
| | 126,213 | | | Automatic Data Processing, Inc. | | | 11,595,188 | |
| | 90,539 | | | Cognizant Technology Solutions Corp. Class A* | | | 5,182,452 | |
| | 37,513 | | | Facebook, Inc. Class A* | | | 4,286,986 | |
| | 68,720 | | | Fiserv, Inc.* | | | 7,471,926 | |
| | 172,950 | | | Genpact Ltd.* | | | 4,641,978 | |
| | 50,500 | | | Intuit, Inc. | | | 5,636,305 | |
| | 77,814 | | | Jack Henry & Associates, Inc. | | | 6,790,828 | |
| | 92,585 | | | Mastercard, Inc. Class A | | | 8,153,035 | |
| | 298,629 | | | Microsoft Corp. | | | 15,280,846 | |
| | | | | | | | |
| | | | 106,709,576 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 1.6% | |
| | 117,773 | | | Apple, Inc. | | | 11,259,099 | |
| | | | | | | | |
| | | | Transportation - 1.0% | |
| | 45,470 | | | FedEx Corp. | | | 6,901,437 | |
| | | | | | | | |
| | | | Utilities - 5.3% | |
| | 185,770 | | | American Electric Power Co., Inc. | | | 13,020,619 | |
| | 111,065 | | | NextEra Energy, Inc. | | | 14,482,876 | |
| | 118,475 | | | Pinnacle West Capital Corp. | | | 9,603,584 | |
| | | | | | | | |
| | | | 37,107,079 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $551,562,227) | | $ | 684,600,165 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $551,562,227) | | $ | 684,600,165 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 1.9% | |
| | | | Other Investment Pools & Funds - 1.9% | |
| | 13,276,772 | | | BlackRock Liquidity Funds TempFund Portfolio | | $ | 13,276,772 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $13,276,772) | | $ | 13,276,772 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $564,838,999)^ | | | 99.6 | % | | $ | 697,876,937 | |
| | | | Other Assets and Liabilities | | | 0.4 | % | | | 2,613,611 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 700,490,548 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 152,586,900 | |
Unrealized Depreciation | | | (19,548,962 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 133,037,938 | |
| | | | |
Futures Contracts Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | | | | | |
Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | | | | | | | | | | | | | | | | | | | | |
S&P 500 (E-Mini) Future | | | 67 | | | | 09/16/2016 | | | $ | 6,967,907 | | | $ | 7,002,170 | | | $ | 34,263 | |
| | | | | | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | 34,263 | |
| | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Index Abbreviations: |
S&P | | Standard & Poors |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 53,930,337 | | | $ | 53,930,337 | | | $ | — | | | $ | — | |
Capital Goods | | | 39,807,675 | | | | 39,807,675 | | | | — | | | | — | |
Commercial & Professional Services | | | 26,612,588 | | | | 26,612,588 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 10,422,186 | | | | 10,422,186 | | | | — | | | | — | |
Consumer Services | | | 18,503,672 | | | | 18,503,672 | | | | — | | | | — | |
Diversified Financials | | | 10,746,547 | | | | 10,746,547 | | | | — | | | | — | |
Energy | | | 20,916,879 | | | | 20,916,879 | | | | — | | | | — | |
Food & Staples Retailing | | | 35,283,567 | | | | 35,283,567 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 47,081,396 | | | | 47,081,396 | | | | — | | | | — | |
Health Care Equipment & Services | | | 64,415,080 | | | | 64,415,080 | | | | — | | | | — | |
Household & Personal Products | | | 23,381,252 | | | | 23,381,252 | | | | — | | | | — | |
Insurance | | | 32,595,673 | | | | 32,595,673 | | | | — | | | | — | |
Materials | | | 26,702,668 | | | | 26,702,668 | | | | — | | | | — | |
Media | | | 14,156,986 | | | | 14,156,986 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 46,673,893 | | | | 46,673,893 | | | | — | | | | — | |
Retailing | | | 51,392,575 | | | | 51,392,575 | | | | — | | | | — | |
Software & Services | | | 106,709,576 | | | | 106,709,576 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 11,259,099 | | | | 11,259,099 | | | | — | | | | — | |
Transportation | | | 6,901,437 | | | | 6,901,437 | | | | — | | | | — | |
Utilities | | | 37,107,079 | | | | 37,107,079 | | | | — | | | | — | |
Short-Term Investments | | | 13,276,772 | | | | 13,276,772 | | | | — | | | | — | |
Futures Contracts(2) | | | 34,263 | | | | 34,263 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 697,911,200 | | | $ | 697,911,200 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% | |
| | | | Automobiles & Components - 1.2% | |
| | 3,168,456 | | | Ford Motor Co. | | $ | 39,827,492 | |
| | | | | | | | |
| | | | Banks - 10.3% | |
| | 3,527,743 | | | Bank of America Corp. | | | 46,813,150 | |
| | 456,099 | | | Bank of Nova Scotia | | | 22,353,412 | |
| | 1,317,480 | | | JP Morgan Chase & Co. | | | 81,868,207 | |
| | 632,834 | | | PNC Financial Services Group, Inc. | | | 51,506,359 | |
| | 324,819 | | | US Bancorp | | | 13,099,950 | |
| | 2,551,604 | | | Wells Fargo & Co. | | | 120,767,418 | |
| | | | | | | | |
| | | | | | | 336,408,496 | |
| | | | | | | | |
| | | | Capital Goods - 4.6% | |
| | 137,600 | | | Boeing Co. | | | 17,870,112 | |
| | 306,420 | | | Caterpillar, Inc. | | | 23,229,700 | |
| | 499,011 | | | Eaton Corp. plc | | | 29,805,927 | |
| | 388,692 | | | Honeywell International, Inc. | | | 45,212,654 | |
| | 111,996 | | | Lockheed Martin Corp. | | | 27,794,047 | |
| | 48,684 | | | Raytheon Co. | | | 6,618,590 | |
| | | | | | | | |
| | | | | | | 150,531,030 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 0.8% | |
| | 535,510 | | | Nielsen Holdings plc | | | 27,830,455 | |
| | | | | | | | |
| | | | Consumer Services - 0.9% | |
| | 1,248,884 | | | Hilton Worldwide Holdings, Inc. | | | 28,137,356 | |
| | | | | | | | |
| | | | Diversified Financials - 4.2% | |
| | 65,673 | | | American Express Co. | | | 3,990,291 | |
| | 132,960 | | | BlackRock, Inc. | | | 45,542,789 | |
| | 91,550 | | | Goldman Sachs Group, Inc. | | | 13,602,499 | |
| | 62,680 | | | Intercontinental Exchange, Inc. | | | 16,043,573 | |
| | 623,090 | | | Invesco Ltd. | | | 15,913,719 | |
| | 382,550 | | | Northern Trust Corp. | | | 25,347,763 | |
| | 674,911 | | | Synchrony Financial* | | | 17,061,750 | |
| | | | | | | | |
| | | | | | | 137,502,384 | |
| | | | | | | | |
| | | | Energy - 10.0% | |
| | 462,125 | | | Anadarko Petroleum Corp. | | | 24,608,156 | |
| | 776,586 | | | Chevron Corp. | | | 81,409,510 | |
| | 264,751 | | | EOG Resources, Inc. | | | 22,085,528 | |
| | 650,493 | | | Exxon Mobil Corp. | | | 60,977,214 | |
| | 763,650 | | | Hess Corp. | | | 45,895,365 | |
| | 447,361 | | | Marathon Petroleum Corp. | | | 16,981,824 | |
| | 235,764 | | | Royal Dutch Shell plc Class B | | | 6,513,823 | |
| | 175,676 | | | Schlumberger Ltd. | | | 13,892,458 | |
| | 809,630 | | | Suncor Energy, Inc. | | | 22,451,040 | |
| | 724,793 | | | Total S.A. ADR | | | 34,862,543 | |
| | | | | | | | |
| | | | | | | 329,677,461 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.6% | |
| | 110,890 | | | Costco Wholesale Corp. | | | 17,414,166 | |
| | 577,311 | | | CVS Health Corp. | | | 55,271,755 | |
| | 161,356 | | | Walgreens Boots Alliance, Inc. | | | 13,436,114 | |
| | | | | | | | |
| | | | | | | 86,122,035 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 4.2% | |
| | 842,680 | | | Coca-Cola Co. | | | 38,198,684 | |
| | 631,739 | | | Mondelez International, Inc. Class A | | | 28,750,442 | |
| | 309,100 | | | PepsiCo, Inc. | | | 32,746,054 | |
| | 363,642 | | | Philip Morris International, Inc. | | | 36,989,664 | |
| | | | | | | | |
| | | | | | | 136,684,844 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.6% | |
| | 224,230 | | | Baxter International, Inc. | | | 10,139,680 | |
| | 468,069 | | | Cardinal Health, Inc. | | | 36,514,063 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Health Care Equipment & Services - 4.6% - (continued) | |
| | 711,649 | | | Medtronic plc | | $ | 61,749,784 | |
| | 296,257 | | | UnitedHealth Group, Inc. | | | 41,831,488 | |
| | | | | | | | |
| | | | | | | 150,235,015 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.8% | |
| | 377,590 | | | Colgate-Palmolive Co. | | | 27,639,588 | |
| | | | | | | | |
| | | | Insurance - 7.1% | |
| | 614,583 | | | Chubb Ltd. | | | 80,332,144 | |
| | 620,565 | | | Marsh & McLennan Cos., Inc. | | | 42,483,880 | |
| | 507,431 | | | MetLife, Inc. | | | 20,210,977 | |
| | 903,280 | | | Principal Financial Group, Inc. | | | 37,133,841 | |
| | 727,016 | | | Prudential Financial, Inc. | | | 51,865,321 | |
| | | | | | | | |
| | | | | | | 232,026,163 | |
| | | | | | | | |
| | | | Materials - 3.3% | |
| | 113,550 | | | Agrium, Inc. | | | 10,267,191 | |
| | 180,610 | | | Ball Corp. | | | 13,056,297 | |
| | 361,600 | | | BHP Billiton plc ADR | | | 9,177,408 | |
| | 405,350 | | | Celanese Corp. Series A | | | 26,530,158 | |
| | 346,400 | | | Dow Chemical Co. | | | 17,219,544 | |
| | 735,969 | | | International Paper Co. | | | 31,190,366 | |
| | | | | | | | |
| | | | | | | 107,440,964 | |
| | | | | | | | |
| | | | Media - 3.7% | |
| | 1,521,223 | | | Comcast Corp. Class A | | | 99,168,527 | |
| | 780,202 | | | Twenty-First Century Fox, Inc. Class A | | | 21,104,464 | |
| | | | | | | | |
| | | | | | | 120,272,991 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 11.9% | |
| | 1,711,456 | | | AstraZeneca plc ADR | | | 51,668,857 | |
| | 915,186 | | | Bristol-Myers Squibb Co. | | | 67,311,930 | |
| | 403,185 | | | Eli Lilly & Co. | | | 31,750,819 | |
| | 544,425 | | | Johnson & Johnson | | | 66,038,752 | |
| | 2,089,623 | | | Merck & Co., Inc. | | | 120,383,181 | |
| | 1,527,229 | | | Pfizer, Inc. | | | 53,773,733 | |
| | | | | | | | |
| | | | | | | 390,927,272 | |
| | | | | | | | |
| | | | Real Estate - 0.3% | |
| | 92,190 | | | American Tower Corp. REIT | | | 10,473,706 | |
| | | | | | | | |
| | | | Retailing - 1.5% | |
| | 124,820 | | | Expedia, Inc. | | | 13,268,366 | |
| | 179,410 | | | L Brands, Inc. | | | 12,043,793 | |
| | 318,381 | | | Lowe’s Cos., Inc. | | | 25,206,224 | |
| | | | | | | | |
| | | | | | | 50,518,383 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.9% | |
| | 2,316,131 | | | Intel Corp. | | | 75,969,097 | |
| | 300,754 | | | Texas Instruments, Inc. | | | 18,842,238 | |
| | | | | | | | |
| | | | | | | 94,811,335 | |
| | | | | | | | |
| | | | Software & Services - 6.9% | |
| | 418,194 | | | Accenture plc Class A | | | 47,377,198 | |
| | 106,150 | | | Alphabet, Inc. Class A* | | | 74,679,710 | |
| | 2,022,735 | | | Microsoft Corp. | | | 103,503,350 | |
| | | | | | | | |
| | | | | | | 225,560,258 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.9% | |
| | 418,685 | | | Apple, Inc. | | | 40,026,286 | |
| | 286,850 | | | Avnet, Inc. | | | 11,620,293 | |
| | 1,667,775 | | | Cisco Systems, Inc. | | | 47,848,465 | |
| | 418,080 | | | Motorola Solutions, Inc. | | | 27,580,738 | |
| | | | | | | | |
| | | | | | | 127,075,782 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Telecommunication Services - 2.8% | |
| | 1,641,639 | | | Verizon Communications, Inc. | | $ | 91,669,122 | |
| | | | | | | | |
| | | | Transportation - 4.6% | |
| | 188,661 | | | Canadian National Railway Co. | | | 11,142,319 | |
| | 1,366,165 | | | CSX Corp. | | | 35,629,583 | |
| | 592,797 | | | Delta Air Lines, Inc. | | | 21,595,595 | |
| | 148,557 | | | FedEx Corp. | | | 22,547,981 | |
| | 545,068 | | | United Parcel Service, Inc. Class B | | | 58,714,725 | |
| | | | | | | | |
| | | | | | | 149,630,203 | |
| | | | | | | | |
| | | | Utilities - 5.2% | |
| | 539,516 | | | Dominion Resources, Inc. | | | 42,044,482 | |
| | 507,296 | | | Edison International | | | 39,401,680 | |
| | 822,982 | | | Exelon Corp. | | | 29,923,626 | |
| | 463,108 | | | NextEra Energy, Inc. | | | 60,389,283 | |
| | | | | | | | |
| | | | | | | 171,759,071 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $2,365,562,239) | | $ | 3,222,761,406 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $2,365,562,239) | | $ | 3,222,761,406 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.5% | |
| | | | Other Investment Pools & Funds - 1.5% | |
| | 49,027,427 | | | Fidelity Money Market Class 1 | | $ | 49,027,427 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $49,027,427) | | $ | 49,027,427 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $2,414,589,666)^ | | | 99.8 | % | | $ | 3,271,788,833 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 6,127,151 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 3,277,915,984 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 908,619,986 | |
Unrealized Depreciation | | | (51,420,819 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 857,199,167 | |
| | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 39,827,492 | | | $ | 39,827,492 | | | $ | — | | | $ | — | |
Banks | | | 336,408,496 | | | | 336,408,496 | | | | — | | | | — | |
Capital Goods | | | 150,531,030 | | | | 150,531,030 | | | | — | | | | — | |
Commercial & Professional Services | | | 27,830,455 | | | | 27,830,455 | | | | — | | | | — | |
Consumer Services | | | 28,137,356 | | | | 28,137,356 | | | | — | | | | — | |
Diversified Financials | | | 137,502,384 | | | | 137,502,384 | | | | — | | | | — | |
Energy | | | 329,677,461 | | | | 323,163,638 | | | | 6,513,823 | | | | — | |
Food & Staples Retailing | | | 86,122,035 | | | | 86,122,035 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 136,684,844 | | | | 136,684,844 | | | | — | | | | — | |
Health Care Equipment & Services | | | 150,235,015 | | | | 150,235,015 | | | | — | | | | — | |
Household & Personal Products | | | 27,639,588 | | | | 27,639,588 | | | | — | | | | — | |
Insurance | | | 232,026,163 | | | | 232,026,163 | | | | — | | | | — | |
Materials | | | 107,440,964 | | | | 107,440,964 | | | | — | | | | — | |
Media | | | 120,272,991 | | | | 120,272,991 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 390,927,272 | | | | 390,927,272 | | | | — | | | | — | |
Real Estate | | | 10,473,706 | | | | 10,473,706 | | | | — | | | | — | |
Retailing | | | 50,518,383 | | | | 50,518,383 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 94,811,335 | | | | 94,811,335 | | | | — | | | | — | |
Software & Services | | | 225,560,258 | | | | 225,560,258 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 127,075,782 | | | | 127,075,782 | | | | — | | | | — | |
Telecommunication Services | | | 91,669,122 | | | | 91,669,122 | | | | — | | | | — | |
Transportation | | | 149,630,203 | | | | 149,630,203 | | | | — | | | | — | |
Utilities | | | 171,759,071 | | | | 171,759,071 | | | | — | | | | — | |
Short-Term Investments | | | 49,027,427 | | | | 49,027,427 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,271,788,833 | | | $ | 3,265,275,010 | | | $ | 6,513,823 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% | |
| | | | Automobiles & Components - 0.6% | |
| | 74,300 | | | Fuji Heavy Industries Ltd. | | $ | 2,553,942 | |
| | | | | | | | |
| | | | Banks - 1.7% | |
| | 188,131 | | | Bank of America Corp. | | | 2,496,498 | |
| | 48,037 | | | BNP Paribas S.A. | | | 2,106,687 | |
| | 32,799 | | | PNC Financial Services Group, Inc. | | | 2,669,511 | |
| | | | | | | | |
| | | | | | | 7,272,696 | |
| | | | | | | | |
| | | | Capital Goods - 2.9% | |
| | 139,114 | | | Assa Abloy AB Class B | | | 2,861,969 | |
| | 51,575 | | | Fortune Brands Home & Security, Inc. | | | 2,989,803 | |
| | 33,300 | | | Nidec Corp. | | | 2,534,896 | |
| | 38,061 | | | Pentair plc | | | 2,218,576 | |
| | 9,122 | | | SMC Corp. | | | 2,244,250 | |
| | | | | | | | |
| | | | | | | 12,849,494 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 0.6% | |
| | 19,473 | | | Equifax, Inc. | | | 2,500,333 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.6% | |
| | 36,691 | | | Harman International Industries, Inc. | | | 2,635,148 | |
| | 58,666 | | | NIKE, Inc. Class B | | | 3,238,363 | |
| | 25,520 | | | Pandora A/S | | | 3,475,807 | |
| | 110,200 | | | Sony Corp. | | | 3,246,709 | |
| | 52,605 | | | Under Armour, Inc. Class A* | | | 2,111,039 | |
| | 28,598 | | | Under Armour, Inc. Class C* | | | 1,040,951 | |
| | | | | | | | |
| | | | | | | 15,748,017 | |
| | | | | | | | |
| | | | Consumer Services - 2.8% | |
| | 110,860 | | | MGM Resorts International* | | | 2,508,762 | |
| | 71,380 | | | New Oriental Education & Technology Group, Inc. ADR | | | 2,989,394 | |
| | 1,330,862 | | | Sands China Ltd. | | | 4,503,521 | |
| | 39,433 | | | Starbucks Corp. | | | 2,252,413 | |
| | | | | | | | |
| | | | | | | 12,254,090 | |
| | | | | | | | |
| | | | Diversified Financials - 5.1% | |
| | 6,741 | | | BlackRock, Inc. | | | 2,308,995 | |
| | 20,396 | | | Factset Research Systems, Inc. | | | 3,292,322 | |
| | 10,489 | | | Intercontinental Exchange, Inc. | | | 2,684,765 | |
| | 61,597 | | | Julius Baer Group Ltd.* | | | 2,479,174 | |
| | 17,356 | | | MarketAxess Holdings, Inc. | | | 2,523,562 | |
| | 44,639 | | | MSCI, Inc. | | | 3,442,560 | |
| | 7,211 | | | Partners Group Holding AG | | | 3,090,385 | |
| | 23,185 | | | S&P Global, Inc. | | | 2,486,823 | |
| | | | | | | | |
| | | | | | | 22,308,586 | |
| | | | | | | | |
| | | | Energy - 1.5% | |
| | 228,381 | | | Galp Energia SGPS S.A. | | | 3,176,398 | |
| | 23,514 | | | Pioneer Natural Resources Co. | | | 3,555,552 | |
| | | | | | | | |
| | | | | | | 6,731,950 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.7% | |
| | 20,735 | | | Costco Wholesale Corp. | | | 3,256,224 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 8.1% | |
| | 58,103 | | | Altria Group, Inc. | | | 4,006,783 | |
| | 29,804 | | | Anheuser-Busch InBev N.V. | | | 3,941,171 | |
| | 120,242 | | | British American Tobacco plc | | | 7,795,170 | |
| | 60,910 | | | Coca-Cola Co. | | | 2,761,050 | |
| | 290,701 | | | Davide Campari-Milano S.p.A. | | | 2,877,530 | |
| | 99,900 | | | Mondelez International, Inc. Class A | | | 4,546,449 | |
| | 21,571 | | | Monster Beverage Corp.* | | | 3,466,675 | |
| | 30,459 | | | PepsiCo, Inc. | | | 3,226,826 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| | | | Food, Beverage & Tobacco - 8.1% - (continued) | |
| | 29,491 | | | Philip Morris International, Inc. | | $ | 2,999,825 | |
| | | | | | | | |
| | | | | | | 35,621,479 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.7% | |
| | 148,062 | | | Boston Scientific Corp.* | | | 3,460,209 | |
| | 31,600 | | | Edwards Lifesciences Corp.* | | | 3,151,468 | |
| | 31,716 | | | HCA Holdings, Inc.* | | | 2,442,449 | |
| | 65,000 | | | Hoya Corp. | | | 2,321,540 | |
| | 26,720 | | | Medtronic plc | | | 2,318,494 | |
| | 24,696 | | | Stryker Corp. | | | 2,959,322 | |
| | 28,657 | | | UnitedHealth Group, Inc. | | | 4,046,368 | |
| | | | | | | | |
| | | | | | | 20,699,850 | |
| | | | | | | | |
| | | | Household & Personal Products - 3.0% | |
| | 72,238 | | | Estee Lauder Cos., Inc. Class A | | | 6,575,102 | |
| | 65,352 | | | Reckitt Benckiser Group plc | | | 6,552,947 | |
| | | | | | | | |
| | | | | | | 13,128,049 | |
| | | | | | | | |
| | | | Insurance - 3.8% | |
| | 83,992 | | | Admiral Group plc | | | 2,283,747 | |
| | 582,800 | | | AIA Group Ltd. | | | 3,504,798 | |
| | 39,056 | | | American International Group, Inc. | | | 2,065,672 | |
| | 26,128 | | | Aon plc | | | 2,853,961 | |
| | 126,483 | | | Assured Guaranty Ltd. | | | 3,208,874 | |
| | 41,839 | | | Marsh & McLennan Cos., Inc. | | | 2,864,298 | |
| | | | | | | | |
| | | | | | | 16,781,350 | |
| | | | | | | | |
| | | | Materials - 1.6% | |
| | 186,465 | | | BHP Billiton plc | | | 2,360,073 | |
| | 30,451 | | | HeidelbergCement AG | | | 2,293,935 | |
| | 163,436 | | | James Hardie Industries plc | | | 2,531,194 | |
| | | | | | | | |
| | | | | | | 7,185,202 | |
| | | | | | | | |
| | | | Media - 2.7% | |
| | 110,962 | | | Comcast Corp. Class A | | | 7,233,613 | |
| | 203,348 | | | Sky plc | | | 2,310,732 | |
| | 91,704 | | | Twenty-First Century Fox, Inc. Class A | | | 2,480,593 | |
| | | | | | | | |
| | | | | | | 12,024,938 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.2% | |
| | 14,956 | | | Actelion Ltd. | | | 2,518,553 | |
| | 16,256 | | | Allergan plc* | | | 3,756,599 | |
| | 27,927 | | | Amgen, Inc. | | | 4,249,093 | |
| | 188,685 | | | Bristol-Myers Squibb Co. | | | 13,877,782 | |
| | 23,408 | | | Celgene Corp.* | | | 2,308,731 | |
| | 59,400 | | | Eisai Co., Ltd. | | | 3,316,664 | |
| | 36,794 | | | ICON plc* | | | 2,575,948 | |
| | 32,791 | | | Incyte Corp.* | | | 2,622,624 | |
| | 83,355 | | | Novo Nordisk A/S Class B | | | 4,488,907 | |
| | 59,500 | | | Ono Pharmaceutical Co., Ltd. | | | 2,591,884 | |
| | 7,805 | | | Regeneron Pharmaceuticals, Inc.* | | | 2,725,740 | |
| | 14,823 | | | Roche Holding AG | | | 3,911,490 | |
| | 34,316 | | | UCB S.A. | | | 2,576,698 | |
| | 46,451 | | | Zoetis, Inc. | | | 2,204,564 | |
| | | | | | | | |
| | | | | | | 53,725,277 | |
| | | | | | | | |
| | | | Real Estate - 1.5% | |
| | 57,977 | | | American Tower Corp. REIT | | | 6,586,767 | |
| | | | | | | | |
| | | | Retailing - 10.0% | |
| | 19,456 | | | Amazon.com, Inc.* | | | 13,923,103 | |
| | 3,275 | | | AutoZone, Inc.* | | | 2,599,826 | |
| | 42,936 | | | Home Depot, Inc. | | | 5,482,498 | |
| | 69,751 | | | Industria de Diseno Textil S.A. | | | 2,343,211 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| | | | Retailing - 10.0% - (continued) | |
| | 108,634 | | | Lowe’s Cos., Inc. | | $ | 8,600,554 | |
| | 1,898 | | | Priceline Group, Inc.* | | | 2,369,482 | |
| | 57,439 | | | Ross Stores, Inc. | | | 3,256,217 | |
| | 39,015 | | | TJX Cos., Inc. | | | 3,013,128 | |
| | 94,729 | | | Zalando SE*(1) | | | 2,507,137 | |
| | | | | | | | |
| | | | | | | 44,095,156 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.2% | |
| | 154,081 | | | ARM Holdings plc | | | 2,340,446 | |
| | 163,890 | | | Infineon Technologies AG | | | 2,372,537 | |
| | 32,599 | | | NXP Semiconductors N.V.* | | | 2,553,806 | |
| | 509,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 2,565,205 | |
| | | | | | | | |
| | | | | | | 9,831,994 | |
| | | | | | | | |
| | | | Software & Services - 24.8% | |
| | 32,444 | | | Accenture plc Class A | | | 3,675,581 | |
| | 73,701 | | | Adobe Systems, Inc.* | | | 7,059,819 | |
| | 38,120 | | | Alibaba Group Holding Ltd. ADR* | | | 3,031,683 | |
| | 19,638 | | | Alphabet, Inc. Class C* | | | 13,591,460 | |
| | 42,511 | | | Automatic Data Processing, Inc. | | | 3,905,485 | |
| | 98,341 | | | Cognizant Technology Solutions Corp. Class A* | | | 5,629,039 | |
| | 3,575 | | | Dropbox, Inc. Class B(1)(2)(3) | | | 29,136 | |
| | 35,172 | | | Electronic Arts, Inc.* | | | 2,664,631 | |
| | 47,703 | | | Facebook, Inc. Class A* | | | 5,451,499 | |
| | 34,853 | | | Fiserv, Inc.* | | | 3,789,567 | |
| | 37,107 | | | Gartner, Inc. Class A* | | | 3,614,593 | |
| | 38,365 | | | Global Payments, Inc. | | | 2,738,494 | |
| | 35,751 | | | Intuit, Inc. | | | 3,990,169 | |
| | 40,019 | | | Jack Henry & Associates, Inc. | | | 3,492,458 | |
| | 78,424 | | | Mastercard, Inc. Class A | | | 6,906,017 | |
| | 63,934 | | | Microsoft Corp. | | | 3,271,503 | |
| | 95,416 | | | Mobileye N.V.* | | | 4,402,494 | |
| | 20,900 | | | Nintendo Co., Ltd. | | | 3,003,311 | |
| | 46,036 | | | Salesforce.com, Inc.* | | | 3,655,719 | |
| | 47,172 | | | ServiceNow, Inc.* | | | 3,132,221 | |
| | 278,300 | | | Tencent Holdings Ltd. | | | 6,384,110 | |
| | 46,132 | | | Vantiv, Inc. Class A* | | | 2,611,071 | |
| | 41,196 | | | VeriSign, Inc.* | | | 3,561,806 | |
| | 67,150 | | | Visa, Inc. Class A | | | 4,980,515 | |
| | 587,828 | | | Worldpay Group plc*(1) | | | 2,139,514 | |
| | 70,571 | | | Zillow Group, Inc. Class C* | | | 2,560,316 | |
| | | | | | | | |
| | | | | | | 109,272,211 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 2.3% | |
| | 109,000 | | | Alps Electric Co., Ltd. | | | 2,070,816 | |
| | 81,278 | | | Cisco Systems, Inc. | | | 2,331,866 | |
| | 32,000 | | | Largan Precision Co., Ltd. | | | 2,959,461 | |
| | 2,239 | | | Samsung Electronics Co., Ltd. | | | 2,788,341 | |
| | | | | | | | |
| | | | | | | 10,150,484 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.8% | |
| | 78,291 | | | T-Mobile US, Inc.* | | | 3,387,651 | |
| | | | | | | | |
| | | | Transportation - 1.3% | |
| | 58,048 | | | DSV A/S | | | 2,440,810 | |
| | 31,335 | | | United Parcel Service, Inc. Class B | | | 3,375,406 | |
| | | | | | | | |
| | | | | | | 5,816,216 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $373,181,608) | | $ | 433,781,956 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| WARRANTS - 0.0% | |
| | | | Diversified Financials - 0.0% | |
| | 16,228 | | | Atlas Mara Ltd. Expires 8/21/17* | | $ | 325 | |
| | 1,035 | | | Emergent Capital, Inc. Expires 4/11/19*(3) | | | — | |
| | | | | | | | |
| | |
| | | | Total Warrants
(cost $162) | | $ | 325 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $373,181,770) | | $ | 433,782,281 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.2% | |
| | | | Other Investment Pools & Funds - 1.2% | |
| | 5,259,575 | | | Fidelity Money Market Class 1 | | $ | 5,259,575 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $5,259,575) | | $ | 5,259,575 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $378,441,345)^ | | | 99.7 | % | | $ | 439,041,856 | |
| | | | Other Assets and Liabilities | | | 0.3 | % | | | 1,429,545 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 440,471,401 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 71,341,911 | |
Unrealized Depreciation | | | (10,741,400 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 60,600,511 | |
| | | | |
| (1) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $4,675,787, which represents 1.1% of total net assets. |
| (2) | This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of this security was $29,136, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (3) | The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | |
Period
Acquired | | Shares/Par | | | Security | | Cost | |
| 05/2012 | | | 3,575 | | | Dropbox, Inc. Class B | | $ | 32,360 | |
| 04/2014 | | | 1,035 | | | Emergent Capital, Inc. Warrants | | | — | |
| | | | | | | | | | |
| | | | | | | | $ | 32,360 | |
| | | | | | | | | | |
| | At June 30, 2016, the aggregate value of these securities was $29,136, which represents 0.0% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
MSCI | | Morgan Stanley Capital International |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 2,553,942 | | | $ | — | | | $ | 2,553,942 | | | $ | — | |
Banks | | | 7,272,696 | | | | 5,166,009 | | | | 2,106,687 | | | | — | |
Capital Goods | | | 12,849,494 | | | | 5,208,379 | | | | 7,641,115 | | | | — | |
Commercial & Professional Services | | | 2,500,333 | | | | 2,500,333 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 15,748,017 | | | | 9,025,501 | | | | 6,722,516 | | | | — | |
Consumer Services | | | 12,254,090 | | | | 7,750,569 | | | | 4,503,521 | | | | — | |
Diversified Financials | | | 22,308,586 | | | | 16,739,027 | | | | 5,569,559 | | | | — | |
Energy | | | 6,731,950 | | | | 3,555,552 | | | | 3,176,398 | | | | — | |
Food & Staples Retailing | | | 3,256,224 | | | | 3,256,224 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 35,621,479 | | | | 21,007,608 | | | | 14,613,871 | | | | — | |
Health Care Equipment & Services | | | 20,699,850 | | | | 18,378,310 | | | | 2,321,540 | | | | — | |
Household & Personal Products | | | 13,128,049 | | | | 6,575,102 | | | | 6,552,947 | | | | — | |
Insurance | | | 16,781,350 | | | | 10,992,805 | | | | 5,788,545 | | | | — | |
Materials | | | 7,185,202 | | | | — | | | | 7,185,202 | | | | — | |
Media | | | 12,024,938 | | | | 9,714,206 | | | | 2,310,732 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 53,725,277 | | | | 34,321,081 | | | | 19,404,196 | | | | — | |
Real Estate | | | 6,586,767 | | | | 6,586,767 | | | | — | | | | — | |
Retailing | | | 44,095,156 | | | | 39,244,808 | | | | 4,850,348 | | | | — | |
Semiconductors & Semiconductor Equipment | | | 9,831,994 | | | | 2,553,806 | | | | 7,278,188 | | | | — | |
Software & Services | | | 109,272,211 | | | | 97,716,140 | | | | 11,526,935 | | | | 29,136 | |
Technology Hardware & Equipment | | | 10,150,484 | | | | 2,331,866 | | | | 7,818,618 | | | | — | |
Telecommunication Services | | | 3,387,651 | | | | 3,387,651 | | | | — | | | | — | |
Transportation | | | 5,816,216 | | | | 3,375,406 | | | | 2,440,810 | | | | — | |
Warrants | | | 325 | | | | 325 | | | | — | | | | — | |
Short-Term Investments | | | 5,259,575 | | | | 5,259,575 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 439,041,856 | | | $ | 314,647,050 | | | $ | 124,365,670 | | | $ | 29,136 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, investments valued at $3,144,243 were transferred from Level 1 to Level 2, and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to: |
| | a) | Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1). |
| | b) | Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1). |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 89,323 | | | $ | 89,323 | |
Purchases | | | — | | | | — | |
Sales | | | (37,302 | ) | | | (37,302 | ) |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | (22,885 | ) | | | (22,885 | ) |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 29,136 | | | $ | 29,136 | |
| | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $(25,204).
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 91.4% | |
| | | | Capital Goods - 5.9% | |
| | 353,460 | | | AerCap Holdings N.V.* | | $ | 11,872,722 | |
| | 177,946 | | | Danaher Corp. | | | 17,972,546 | |
| | 292,241 | | | Fastenal Co. | | | 12,972,578 | |
| | 236,799 | | | Fortune Brands Home & Security, Inc. | | | 13,727,238 | |
| | 214,157 | | | Middleby Corp.* | | | 24,681,594 | |
| | | | | | | | |
| | | | | | | 81,226,678 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.9% | |
| | 18,785 | | | Klarna Holding AB*(1)(2)(3) | | | 1,924,064 | |
| | 99,333 | | | Stericycle, Inc.* | | | 10,342,552 | |
| | 414,044 | | | TransUnion* | | | 13,845,632 | |
| | | | | | | | |
| | | | | | | 26,112,248 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 4.0% | |
| | 177,760 | | | Harman International Industries, Inc. | | | 12,766,723 | |
| | 81,305 | | | Pandora A/S | | | 11,073,687 | |
| | 5,693,030 | | | Samsonite International S.A. | | | 15,763,210 | |
| | 376,399 | | | Under Armour, Inc. Class A* | | | 15,104,892 | |
| | | | | | | | |
| | | | | | | 54,708,512 | |
| | | | | | | | |
| | | | Consumer Services - 2.3% | |
| | 32,871 | | | Chipotle Mexican Grill, Inc.* | | | 13,239,124 | |
| | 87,963 | | | Panera Bread Co. Class A* | | | 18,642,878 | |
| | | | | | | | |
| | | | | | | 31,882,002 | |
| | | | | | | | |
| | | | Diversified Financials - 3.0% | |
| | 621,393 | | | Double Eagle Acquisition Corp.* | | | 6,235,679 | |
| | 67,608 | | | Intercontinental Exchange, Inc. | | | 17,304,944 | |
| | 163,459 | | | S&P Global, Inc. | | | 17,532,612 | |
| | | | | | | | |
| | | | | | | 41,073,235 | |
| | | | | | | | |
| | | | Energy - 4.1% | |
| | 82,901 | | | Concho Resources, Inc.* | | | 9,887,602 | |
| | 106,902 | | | Diamondback Energy, Inc.* | | | 9,750,531 | |
| | 224,141 | | | Energen Corp. | | | 10,805,838 | |
| | 324,992 | | | Newfield Exploration Co.* | | | 14,358,147 | |
| | 78,904 | | | Pioneer Natural Resources Co. | | | 11,931,074 | |
| | | | | | | | |
| | | | | | | 56,733,192 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.0% | |
| | 178,956 | | | Costco Wholesale Corp. | | | 28,103,250 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.3% | |
| | 154,002 | | | Monster Beverage Corp.* | | | 24,749,661 | |
| | 835,003 | | | Nomad Foods Ltd.* | | | 6,663,324 | |
| | | | | | | | |
| | | | | | | 31,412,985 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 8.8% | |
| | 232,777 | | | Align Technology, Inc.* | | | 18,750,187 | |
| | 182,796 | | | athenahealth, Inc.* | | | 25,227,676 | |
| | 300,417 | | | DexCom, Inc.* | | | 23,832,081 | |
| | 404,595 | | | Hologic, Inc.* | | | 13,998,987 | |
| | 111,109 | | | McKesson Corp. | | | 20,738,495 | |
| | 131,589 | | | UnitedHealth Group, Inc. | | | 18,580,367 | |
| | | | | | | | |
| | | | | | | 121,127,793 | |
| | | | | | | | |
| | | | Insurance - 0.9% | |
| | 239,913 | | | American International Group, Inc. | | | 12,688,999 | |
| | | | | | | | |
| | | | Materials - 1.0% | |
| | 1,481,521 | | | Platform Specialty Products Corp.* | | | 13,155,906 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 11.4% | |
| | 86,418 | | | Allergan plc* | | | 19,970,336 | |
| | 137,896 | | | AstraZeneca plc | | | 8,200,250 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 91.4% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences -
11.4% - (continued) | |
| | 682,115 | | | Bristol-Myers Squibb Co. | | $ | 50,169,558 | |
| | 178,780 | | | Eisai Co., Ltd. | | | 9,982,377 | |
| | 68,311 | | | Incyte Corp.* | | | 5,463,514 | |
| | 238,802 | | | Merck & Co., Inc. | | | 13,757,383 | |
| | 352,260 | | | Mylan N.V.* | | | 15,231,722 | |
| | 301,400 | | | Ono Pharmaceutical Co., Ltd. | | | 13,129,306 | |
| | 59,751 | | | Regeneron Pharmaceuticals, Inc.* | | | 20,866,842 | |
| | | | | | | | |
| | | | | | | 156,771,288 | |
| | | | | | | | |
| | | | Real Estate - 3.2% | |
| | 208,617 | | | American Tower Corp. REIT | | | 23,700,977 | |
| | 47,769 | | | Equinix, Inc. REIT | | | 18,521,474 | |
| | 29,318 | | | WeWork Companies, Inc. Class A, REIT(1)(2)(3) | | | 1,471,537 | |
| | | | | | | | |
| | | | | | | 43,693,988 | |
| | | | | | | | |
| | | | Retailing - 11.5% | |
| | 49,445 | | | Advance Auto Parts, Inc. | | | 7,991,795 | |
| | 85,856 | | | Amazon.com, Inc.* | | | 61,440,271 | |
| | 176,849 | | | Expedia, Inc. | | | 18,799,049 | |
| | 43,732 | | | Honest Co.(1)(2)(3) | | | 1,728,726 | |
| | 41,578 | | | JAND, Inc. Class A(1)(2)(3) | | | 444,053 | |
| | 220,419 | | | Lowe’s Cos., Inc. | | | 17,450,572 | |
| | 154,532 | | | Netflix, Inc.* | | | 14,136,587 | |
| | 25,026 | | | Priceline Group, Inc.* | | | 31,242,709 | |
| | 94,537 | | | Tory Burch LLC*(1)(2)(3) | | | 5,181,567 | |
| | | | | | | | |
| | | | | | | 158,415,329 | |
| | | | | | | | |
| | | | Software & Services - 27.1% | |
| | 186,289 | | | Akamai Technologies, Inc.* | | | 10,419,144 | |
| | 298,632 | | | Alibaba Group Holding Ltd. ADR* | | | 23,750,203 | |
| | 36,173 | | | Alphabet, Inc. Class A* | | | 25,448,791 | |
| | 62,409 | | | Alphabet, Inc. Class C* | | | 43,193,269 | |
| | 98,082 | | | CoStar Group, Inc.* | | | 21,446,610 | |
| | 421,333 | | | Facebook, Inc. Class A* | | | 48,149,935 | |
| | 248,200 | | | Global Payments, Inc. | | | 17,716,516 | |
| | 580,073 | | | GoDaddy, Inc. Class A* | | | 18,092,477 | |
| | 608,662 | | | Mobileye N.V.* | | | 28,083,664 | |
| | 181,031 | | | Salesforce.com, Inc.* | | | 14,375,672 | |
| | 255,442 | | | ServiceNow, Inc.* | | | 16,961,349 | |
| | 240,617 | | | Splunk, Inc.* | | | 13,036,629 | |
| | 740,326 | | | SS&C Technologies Holdings, Inc. | | | 20,788,354 | |
| | 794,500 | | | Tencent Holdings Ltd. | | | 18,225,567 | |
| | 16,442 | | | Ultimate Software Group, Inc.* | | | 3,457,588 | |
| | 425,343 | | | Workday, Inc. Class A* | | | 31,760,362 | |
| | 85,003 | | | Zillow Group, Inc. Class A* | | | 3,115,360 | |
| | 434,931 | | | Zillow Group, Inc. Class C* | | | 15,779,296 | |
| | | | | | | | |
| | | | | | | 373,800,786 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 0.7% | |
| | 135,076 | | | Arista Networks, Inc.* | | | 8,696,193 | |
| | 67,183 | | | Pure Storage, Inc. Class A* | | | 732,295 | |
| | | | | | | | |
| | | | | | | 9,428,488 | |
| | | | | | | | |
| | | | Transportation - 1.3% | |
| | 122,934 | | | FedEx Corp. | | | 18,658,922 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,162,799,848) | | $ | 1,258,993,601 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 0.1% | |
| | | | Internet - 0.1% | |
| $ | 705,896 | | | DraftKings, Inc. 5.00%, 12/23/2016(1)(2)(3) | | $ | 705,896 | |
| | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $705,896) | | $ | 705,896 | |
| | | | | | | | |
|
| PREFERRED STOCKS - 7.5% | |
| | | | Capital Goods - 0.6% | |
| | 1,458,400 | | | Lithium Technology Corp.*(1)(2)(3) | | $ | 7,467,008 | |
| | | | | | | | |
| | | | Consumer Services - 0.1% | |
| | 874,073 | | | DraftKings, Inc.(1)(2)(3) | | | 1,678,220 | |
| | | | | | | | |
| | | | Real Estate - 1.2% | |
| | 879,569 | | | Redfin Corp. Series G(1)(2)(3) | | | 3,447,910 | |
| | 145,709 | | | WeWork Companies, Inc. Class D-1(1)(2)(3) | | | 7,313,463 | |
| | 114,486 | | | WeWork Companies, Inc. Class D-2(1)(2)(3) | | | 5,746,310 | |
| | | | | | | | |
| | | | | | | 16,507,683 | |
| | | | | | | | |
| | | | Retailing - 0.4% | |
| | 160,575 | | | Forward Ventures, Inc.(1)(2)(3) | | | 5,017,969 | |
| | 92,843 | | | JAND, Inc. Series D(1)(2)(3) | | | 991,563 | |
| | | | | | | | |
| | | | | | | 6,009,532 | |
| | | | | | | | |
| | | | Software & Services - 5.0% | |
| | 535,139 | | | Birst, Inc. Series F(1)(2)(3) | | | 2,911,156 | |
| | 1,871,878 | | | Essence Group Holdings Corp.(1)(2)(3) | | | 4,005,819 | |
| | 236,310 | | | ForeScout Technologies, Inc.(1)(2)(3) | | | 2,523,862 | |
| | 50,806 | | | General Assembly Space, Inc.(1)(2)(3) | | | 2,241,500 | |
| | 287,204 | | | Lookout, Inc. Series F(1)(2)(3) | | | 2,188,495 | |
| | 366,944 | | | MarkLogic Corp. Series F(1)(2)(3) | | | 3,819,887 | |
| | 227,914 | | | Nutanix, Inc.(1)(2)(3) | | | 2,479,704 | |
| | 488,790 | | | Pinterest, Inc. Series G(1)(2)(3) | | | 2,986,507 | |
| | 759,876 | | | Uber Technologies, Inc.(1)(2)(3) | | | 37,060,846 | |
| | 210,735 | | | Veracode, Inc.(1)(2)(3) | | | 4,351,678 | |
| | 1,160,072 | | | Zuora, Inc. Series F(1)(2)(3) | | | 4,582,284 | |
| | | | | | | | |
| | | | | | | 69,151,738 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.2% | |
| | 7,944 | | | DocuSign, Inc. Series B(1)(2)(3) | | | 134,571 | |
| | 2,379 | | | DocuSign, Inc. Series B-1(1)(2)(3) | | | 40,300 | |
| | 5,708 | | | DocuSign, Inc. Series D(1)(2)(3) | | | 96,694 | |
| | 147,634 | | | DocuSign, Inc. Series E(1)(2)(3) | | | 2,500,920 | |
| | 25,098 | | | DocuSign, Inc. Series F(1)(2)(3) | | | 425,160 | |
| | | | | | | | |
| | | | | | | 3,197,645 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $70,181,781) | | $ | 104,011,826 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.3% | |
| | | | Retailing - 0.3% | |
| | 102,040 | | | Honest Co. Series C(1)(2)(3) | | $ | 4,033,641 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $2,760,927) | | $ | 4,033,641 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,236,448,452) | | $ | 1,367,744,964 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.8% | |
| | | | Other Investment Pools & Funds - 0.8% | |
| | 10,399,806 | | | Federated Prime Obligations Fund | | $ | 10,399,806 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $10,399,806) | | $ | 10,399,806 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,246,848,258)^ | | | 100.1 | % | | $ | 1,378,144,770 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (1,132,796 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,377,011,974 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 177,133,509 | |
Unrealized Depreciation | | | (45,836,997 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 131,296,512 | |
| | | | |
| (1) | The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost Basis | |
| | 03/2015 | | | | 535,139 | | | Birst, Inc. Series F Preferred | | $ | 3,125,693 | |
| | 02/2014 | | | | 7,944 | | | DocuSign, Inc. Series B Preferred | | | 104,324 | |
| | 02/2014 | | | | 2,379 | | | DocuSign, Inc. Series B-1 Preferred | | | 31,242 | |
| | 02/2014 | | | | 5,708 | | | DocuSign, Inc. Series D Preferred | | | 74,960 | |
| | 02/2014 | | | | 147,634 | | | DocuSign, Inc. Series E Preferred | | | 1,938,789 | |
| | 04/2015 | | | | 25,098 | | | DocuSign, Inc. Series F Preferred | | | 479,198 | |
| | 12/2015 | | | | 705,896 | | | DraftKings, Inc. | | | 705,896 | |
| | 12/2014 | | | | 874,073 | | | DraftKings, Inc. Preferred | | | 1,574,452 | |
| | 05/2014 | | | | 1,871,878 | | | Essence Group Holdings Corp. Preferred | | | 2,960,001 | |
| | 11/2015 | | | | 236,310 | | | ForeScout Technologies, Inc. Preferred | | | 2,804,291 | |
| | 11/2014 | | | | 160,575 | | | Forward Ventures, Inc. Preferred | | | 4,998,894 | |
| | 07/2015 | | | | 50,806 | | | General Assembly Space, Inc. Preferred | | | 2,490,556 | |
| | 08/2014 | | | | 43,732 | | | Honest Co. | | | 1,183,270 | |
| | 08/2014 | | | | 102,040 | | | Honest Co. Series C Convertible Preferred | | | 2,760,927 | |
| | 04/2015 | | | | 41,578 | | | JAND, Inc. Class A | | | 477,536 | |
| | 04/2015 | | | | 92,843 | | | JAND, Inc. Series D Preferred | | | 1,066,330 | |
| | 08/2015 | | | | 18,785 | | | Klarna Holding AB | | | 2,060,349 | |
| | 08/2013 | | | | 1,458,400 | | | Lithium Technology Corp. Preferred | | | 7,108,242 | |
| | 03/2016 | | | | 287,204 | | | Lookout, Inc. Series F Preferred | | | 3,280,760 | |
| | 04/2015 | | | | 366,944 | | | MarkLogic Corp. Series F Preferred | | | 4,261,761 | |
| | 08/2014 | | | | 227,914 | | | Nutanix, Inc. Preferred | | | 3,053,250 | |
| | 03/2015 | | | | 488,790 | | | Pinterest, Inc. Series G Preferred | | | 3,509,068 | |
| | 12/2014 | | | | 879,569 | | | Redfin Corp. Series G Preferred | | | 2,900,554 | |
| | 11/2013 | | | | 94,537 | | | Tory Burch LLC | | | 7,409,472 | |
| | 06/2014 | | | | 759,876 | | | Uber Technologies, Inc. Preferred | | | 11,787,994 | |
| | 08/2014 | | | | 210,735 | | | Veracode, Inc. Preferred | | | 3,891,411 | |
| | 12/2014 | | | | 29,318 | | | WeWork Companies, Inc. Class A, REIT | | | 488,179 | |
| | 12/2014 | | | | 145,709 | | | WeWork Companies, Inc. Class D-1 Preferred | | | 2,426,224 | |
| | 12/2014 | | | | 114,486 | | | WeWork Companies, Inc. Class D-2 Preferred | | | 1,906,325 | |
| | 01/2015 | | | | 1,160,072 | | | Zuora, Inc. Series F Preferred | | | 4,407,462 | |
| | | | | | | | | | | | |
| | | | | | | | | | $ | 85,267,410 | |
| | | | | | | | | | | | |
| | At June 30, 2016, the aggregate value of these securities was $119,501,310, which represents 8.7% of total net assets. |
| (2) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of these securities was $119,501,310, which represents 8.7% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $119,501,310, which represents 8.7% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Capital Goods | | $ | 81,226,678 | | | $ | 81,226,678 | | | $ | — | | | $ | — | |
Commercial & Professional Services | | | 26,112,248 | | | | 24,188,184 | | | | — | | | | 1,924,064 | |
Consumer Durables & Apparel | | | 54,708,512 | | | | 27,871,615 | | | | 26,836,897 | | | | — | |
Consumer Services | | | 31,882,002 | | | | 31,882,002 | | | | — | | | | — | |
Diversified Financials | | | 41,073,235 | | | | 41,073,235 | | | | — | | | | — | |
Energy | | | 56,733,192 | | | | 56,733,192 | | | | — | | | | — | |
Food & Staples Retailing | | | 28,103,250 | | | | 28,103,250 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 31,412,985 | | | | 31,412,985 | | | | — | | | | — | |
Health Care Equipment & Services | | | 121,127,793 | | | | 121,127,793 | | | | — | | | | — | |
Insurance | | | 12,688,999 | | | | 12,688,999 | | | | — | | | | — | |
Materials | | | 13,155,906 | | | | 13,155,906 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 156,771,288 | | | | 125,459,355 | | | | 31,311,933 | | | | — | |
Real Estate | | | 43,693,988 | | | | 42,222,451 | | | | — | | | | 1,471,537 | |
Retailing | | | 158,415,329 | | | | 151,060,983 | | | | — | | | | 7,354,346 | |
Software & Services | | | 373,800,786 | | | | 355,575,219 | | | | 18,225,567 | | | | — | |
Technology Hardware & Equipment | | | 9,428,488 | | | | 9,428,488 | | | | — | | | | — | |
Transportation | | | 18,658,922 | | | | 18,658,922 | | | | — | | | | — | |
Corporate Bonds | | | 705,896 | | | | — | | | | — | | | | 705,896 | |
Preferred Stocks | | | 104,011,826 | | | | — | | | | — | | | | 104,011,826 | |
Convertible Preferred Stocks | | | 4,033,641 | | | | — | | | | — | | | | 4,033,641 | |
Short-Term Investments | | | 10,399,806 | | | | 10,399,806 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,378,144,770 | | | $ | 1,182,269,063 | | | $ | 76,374,397 | | | $ | 119,501,310 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Corporate
Bonds | | | Convertible
Preferred
Stocks | | | Total | |
Beginning balance | | $ | 14,516,321 | | | $ | 106,827,213 | | | $ | 705,896 | | | $ | 4,625,473 | | | $ | 126,674,903 | |
Purchases | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales | | | (4,220,249 | ) | | | — | | | | — | | | | — | | | | (4,220,249 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | — | | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 453,875 | | | | (2,815,387 | ) | | | — | | | | (591,832 | ) | | | (2,953,344 | ) |
Transfers into Level 3(1) | | | — | | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 10,749,947 | | | $ | 104,011,826 | | | $ | 705,896 | | | $ | 4,033,641 | | | $ | 119,501,310 | |
| | | | | | | | | | | | | | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $(3,215,709).
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.9% | | | |
| | | | Biotechnology - 19.8% | |
| | 39,500 | | | Aduro Biotech, Inc.* | | $ | 446,745 | |
| | 29,240 | | | Alder Biopharmaceuticals, Inc.* | | | 730,123 | |
| | 153,432 | | | Alkermes plc* | | | 6,631,331 | |
| | 44,030 | | | Alnylam Pharmaceuticals, Inc.* | | | 2,443,225 | |
| | 40,710 | | | Amgen, Inc. | | | 6,194,026 | |
| | 564,240 | | | Arena Pharmaceuticals, Inc.* | | | 964,850 | |
| | 47,690 | | | Bluebird Bio, Inc.* | | | 2,064,500 | |
| | 109,820 | | | Celgene Corp.* | | | 10,831,547 | |
| | 76,890 | | | Cepheid* | | | 2,364,367 | |
| | 233,150 | | | Cytokinetics, Inc.* | | | 2,212,594 | |
| | 46,250 | | | Galapagos N.V.* | | | 2,541,547 | |
| | 136,277 | | | GlycoMimetics, Inc.* | | | 990,734 | |
| | 94,263 | | | Incyte Corp.* | | | 7,539,155 | |
| | 33,048 | | | Innate Pharma S.A.* | | | 379,717 | |
| | 138,403 | | | Ironwood Pharmaceuticals, Inc.* | | | 1,809,619 | |
| | 99,900 | | | Loxo Oncology, Inc.* | | | 2,315,682 | |
| | 104,441 | | | Portola Pharmaceuticals, Inc.* | | | 2,464,808 | |
| | 41,540 | | | PTC Therapeutics, Inc.* | | | 291,611 | |
| | 21,446 | | | Regeneron Pharmaceuticals, Inc.* | | | 7,489,587 | |
| | 193,320 | | | Rigel Pharmaceuticals, Inc.* | | | 431,104 | |
| | 84,400 | | | Syndax Pharmaceuticals, Inc.* | | | 831,340 | |
| | 41,560 | | | T2 Biosystems, Inc.* | | | 327,908 | |
| | 38,145 | | | TESARO, Inc.* | | | 3,206,087 | |
| | 190,569 | | | Trevena, Inc.* | | | 1,200,585 | |
| | 50,420 | | | Ultragenyx Pharmaceutical, Inc.* | | | 2,466,042 | |
| | | | | | | | |
| | | | 69,168,834 | |
| | | | | | | | |
| | | | Drug Retail - 0.4% | |
| | 16,735 | | | Walgreens Boots Alliance, Inc. | | | 1,393,523 | |
| | | | | | | | |
| | | | Health Care Distributors - 4.7% | |
| | 65,520 | | | Cardinal Health, Inc. | | | 5,111,215 | |
| | 60,510 | | | McKesson Corp. | | | 11,294,192 | |
| | | | | | | | |
| | | 16,405,407 | |
| | | | | | | | |
| | | | Health Care Equipment - 23.2% | |
| | 217,520 | | | Abbott Laboratories | | | 8,550,711 | |
| | 121,680 | | | AtriCure, Inc.* | | | 1,719,338 | |
| | 107,354 | | | Baxter International, Inc. | | | 4,854,548 | |
| | 39,263 | | | Becton Dickinson and Co. | | | 6,658,612 | |
| | 460,530 | | | Boston Scientific Corp.* | | | 10,762,586 | |
| | 168,456 | | | ConforMIS, Inc.* | | | 1,182,561 | |
| | 57,130 | | | EndoChoice Holdings, Inc.* | | | 279,937 | |
| | 186,072 | | | Globus Medical, Inc. Class A* | | | 4,434,096 | |
| | 20,940 | | | HeartWare International, Inc.* | | | 1,209,285 | |
| | 31,945 | | | Invuity, Inc.* | | | 304,436 | |
| | 173,970 | | | K2M Group Holdings, Inc.* | | | 2,700,014 | |
| | 214,562 | | | Medtronic plc | | | 18,617,545 | |
| | 91,468 | | | St. Jude Medical, Inc. | | | 7,134,504 | |
| | 53,690 | | | Stryker Corp. | | | 6,433,673 | |
| | 19,125 | | | Teleflex, Inc. | | | 3,391,054 | |
| | 21,753 | | | Zimmer Biomet Holdings, Inc. | | | 2,618,626 | |
| | | | | | | | |
| | | | | | | 80,851,526 | |
| | | | | | | | |
| | | | Health Care Facilities - 4.0% | |
| | 34,437 | | | Acadia Healthcare Co., Inc.* | | | 1,907,810 | |
| | 44,120 | | | Community Health Systems, Inc.* | | | 531,646 | |
| | 287,200 | | | Georgia Healthcare Group plc*(1) | | | 1,106,562 | |
| | 76,600 | | | HCA Holdings, Inc.* | | | 5,898,966 | |
| | 15,670 | | | LifePoint Health, Inc.* | | | 1,024,348 | |
| | 11,187 | | | Quorum Health Corp.* | | | 119,813 | |
| | 599,100 | | | Siloam International Hospitals Tbk PT | | | 526,721 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.9% - (continued) | | | |
| | | | Health Care Facilities - 4.0% - (continued) | |
| | 20,020 | | | Universal Health Services, Inc. Class B | | $ | 2,684,682 | |
| | | | | | | | |
| | | | | | | 13,800,548 | |
| | | | | | | | |
| | | | Health Care Services - 2.3% | |
| | 125,400 | | | Envision Healthcare Holdings, Inc.* | | | 3,181,398 | |
| | 88,500 | | | Team Health Holdings, Inc.* | | | 3,599,295 | |
| | 81,337 | | | Teladoc, Inc.* | | | 1,303,019 | |
| | | | | | | | |
| | | | | | | 8,083,712 | |
| | | | | | | | |
| | | | Health Care Supplies - 1.1% | |
| | 33,324 | | | DENTSPLY SIRONA, Inc. | | | 2,067,421 | |
| | 143,271 | | | Endologix, Inc.* | | | 1,785,157 | |
| | | | | | | | |
| | | | | | | 3,852,578 | |
| | | | | | | | |
| | | | Health Care Technology - 2.8% | |
| | 95,220 | | | Allscripts Healthcare Solutions, Inc.* | | | 1,209,294 | |
| | 27,390 | | | athenahealth, Inc.* | | | 3,780,094 | |
| | 78,959 | | | Cerner Corp.* | | | 4,626,997 | |
| | | | | | | | |
| | | | | | | 9,616,385 | |
| | | | | | | | |
| | | | Internet Software & Services - 0.3% | |
| | 143,216 | | | Everyday Health, Inc.* | | | 1,128,542 | |
| | | | | | | | |
| | | | Life Sciences Tools & Services - 3.5% | |
| | 25,220 | | | ICON plc* | | | 1,765,652 | |
| | 21,070 | | | Illumina, Inc.* | | | 2,957,807 | |
| | 11,724 | | | PRA Health Sciences, Inc.* | | | 489,594 | |
| | 48,090 | | | Thermo Fisher Scientific, Inc. | | | 7,105,778 | |
| | | | | | | | |
| | | | | | | 12,318,831 | |
| | | | | | | | |
| | | | Managed Health Care - 9.8% | |
| | 67,680 | | | Aetna, Inc. | | | 8,265,759 | |
| | 292,460 | | | Qualicorp S.A. | | | 1,694,325 | |
| | 145,310 | | | UnitedHealth Group, Inc. | | | 20,517,772 | |
| | 33,200 | | | WellCare Health Plans, Inc.* | | | 3,561,696 | |
| | | | | | | | |
| | | | | | | 34,039,552 | |
| | | | | | | | |
| | | | Pharmaceuticals - 26.0% | |
| | 77,432 | | | Allergan plc* | | | 17,893,761 | |
| | 297,670 | | | AstraZeneca plc ADR | | | 8,986,657 | |
| | 281,500 | | | Bristol-Myers Squibb Co. | | | 20,704,325 | |
| | 4,400 | | | Chugai Pharmaceutical Co., Ltd. | | | 156,808 | |
| | 66,460 | | | Daiichi Sankyo Co., Ltd. | | | 1,614,653 | |
| | 48,370 | | | Eisai Co., Ltd. | | | 2,700,792 | |
| | 73,060 | | | Eli Lilly & Co. | | | 5,753,475 | |
| | 54,170 | | | Intersect ENT, Inc.* | | | 700,418 | |
| | 16,980 | | | Johnson & Johnson | | | 2,059,674 | |
| | 107,500 | | | Medicines Co.* | | | 3,615,225 | |
| | 195,990 | | | MediWound Ltd.* | | | 1,536,562 | |
| | 72,870 | | | Merck & Co., Inc. | | | 4,198,041 | |
| | 159,610 | | | Mylan N.V.* | | | 6,901,536 | |
| | 169,099 | | | Nabriva Therapeutics AG ADR* | | | 1,268,242 | |
| | 71,400 | | | Ono Pharmaceutical Co., Ltd. | | | 3,110,260 | |
| | 47,919 | | | Revance Therapeutics, Inc.* | | | 651,698 | |
| | 115,470 | | | Shionogi & Co., Ltd. | | | 6,312,288 | |
| | 33,062 | | | UCB S.A. | | | 2,482,539 | |
| | | | | | | | |
| | | | | | | 90,646,954 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $291,157,544) | | $ | 341,306,392 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $291,157,544) | | $ | 341,306,392 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 2.1% | |
| | | | Other Investment Pools & Funds - 2.1% | |
| | 7,261,399 | | | Fidelity Money Market Class 1 | | $ | 7,261,399 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $7,261,399) | | $ | 7,261,399 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $298,418,943)^ | | | 100.0 | % | | $ | 348,567,791 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | (79,814 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 348,487,977 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 68,861,977 | |
Unrealized Depreciation | | | (18,713,129 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 50,148,848 | |
| | | | |
| (1) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At June 30, 2016, the aggregate value of this security was $1,106,562, which represents 0.3% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Biotechnology | | $ | 69,168,834 | | | $ | 66,247,570 | | | $ | 2,921,264 | | | $ | — | |
Drug Retail | | | 1,393,523 | | | | 1,393,523 | | | | — | | | | — | |
Health Care Distributors | | | 16,405,407 | | | | 16,405,407 | | | | — | | | | — | |
Health Care Equipment | | | 80,851,526 | | | | 80,851,526 | | | | — | | | | — | |
Health Care Facilities | | | 13,800,548 | | | | 12,167,265 | | | | 1,633,283 | | | | — | |
Health Care Services | | | 8,083,712 | | | | 8,083,712 | | | | — | | | | — | |
Health Care Supplies | | | 3,852,578 | | | | 3,852,578 | | | | — | | | | — | |
Health Care Technology | | | 9,616,385 | | | | 9,616,385 | | | | — | | | | — | |
Internet Software & Services | | | 1,128,542 | | | | 1,128,542 | | | | — | | | | — | |
Life Sciences Tools & Services | | | 12,318,831 | | | | 12,318,831 | | | | — | | | | — | |
Managed Health Care | | | 34,039,552 | | | | 34,039,552 | | | | — | | | | — | |
Pharmaceuticals | | | 90,646,954 | | | | 74,269,614 | | | | 16,377,340 | | | | — | |
Short-Term Investments | | | 7,261,399 | | | | 7,261,399 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 348,567,791 | | | $ | 327,635,904 | | | $ | 20,931,887 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, investments valued at $294,081 were transferred from Level 1 to Level 2 and there were no transfers from Level 2 to Level 1. Investments are transferred between Level 1 and Level 2 for a variety of reasons including, but not limited to: |
| | a) | Foreign equities for which a fair value price is more representative of exit value than the local market close (transfer into Level 2). Foreign equities for which the local market close is more representative of exit value (transfer into Level 1). |
| | b) | Equity investments with no observable trading but a bid or mean price is used (transfer into Level 2). Equity investments using observable quoted prices in an active market (transfer into Level 1). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 0.0% | |
| | | | | | | Asset-Backed - Finance & Insurance - 0.0% | |
| | $ | | | | 2,490,000 | | | Soundview NIM Trust
8.25%, 12/25/2036(1)(2)(3) | | $ | — | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $2,478,958) | | $ | — | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 92.0% | |
| | | | | | | Advertising - 0.1% | |
| | | | | 160,000 | | | Lamar Media Corp.
5.75%, 02/01/2026(1) | | $ | 166,501 | |
| | | | | | | | | | | | |
| | | | | | | Chemicals - 0.6% | |
| | | | | | | | Chemours Co. | | | | |
| | | | | 885,000 | | | 6.63%, 05/15/2023 | | | 752,250 | |
| | | | | 305,000 | | | 7.00%, 05/15/2025 | | | 255,819 | |
| | | | | 900,000 | | | Ineos Group Holdings S.A.
5.88%, 02/15/2019(1) | | | 898,875 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,906,944 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Banks - 4.5% | |
| | EUR | | | | 2,600,000 | | | Banco Bilbao Vizcaya Argentaria S.A.
7.00%, 02/19/2019(4)(5)(6) | | | 2,479,369 | |
| | $ | | | | 1,665,000 | | | Barclays plc
8.25%, 12/15/2018(4)(6) | | | 1,627,471 | |
| | | | | 1,080,000 | | | BNP Paribas S.A.
7.63%, 03/30/2021(1)(4)(6) | | | 1,080,000 | |
| | | | | 1,015,000 | | | Credit Agricole S.A.
7.88%, 01/23/2024(1)(4)(6) | | | 969,325 | |
| | | | | 2,430,000 | | | Credit Suisse Group AG
6.25%, 12/18/2024(4)(5)(6) | | | 2,286,820 | |
| | | | | 730,000 | | | Intesa Sanpaolo S.p.A.
7.70%, 09/17/2025(1)(4)(6) | | | 629,625 | |
| | | | | 1,675,000 | | | Radian Group, Inc.
7.00%, 03/15/2021 | | | 1,791,211 | |
| | | | | | | | Royal Bank of Scotland Group plc | | | | |
| | | | | 2,105,000 | | | 6.99%, 10/05/2017(1)(4)(6) | | | 2,252,350 | |
| | | | | 1,000,000 | | | 7.64%, 09/30/2017(4)(6) | | | 950,000 | |
| | | | | 640,000 | | | Societe Generale S.A.
8.25%, 11/29/2018(4)(5)(6) | | | 633,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,699,771 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Services - 1.0% | |
| | | | | 1,035,000 | | | APX Group, Inc.
7.88%, 12/01/2022(1) | | | 1,042,763 | |
| | | | | 2,385,000 | | | Quad/Graphics, Inc.
7.00%, 05/01/2022 | | | 2,104,762 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,147,525 | |
| | | | | | | | | | | | |
| | | | | | | Construction Materials - 4.3% | |
| | | | | 1,760,000 | | | Builders FirstSource, Inc.
7.63%, 06/01/2021(1) | | | 1,839,200 | |
| | | | | 2,580,000 | | | Cemex Finance LLC
6.00%, 04/01/2024(1) | | | 2,502,600 | |
| | | | | | | | Cemex S.A.B. de C.V. | | | | |
| | | | | 1,190,000 | | | 5.70%, 01/11/2025(1) | | | 1,127,525 | |
| | | | | 760,000 | | | 6.13%, 05/05/2025(1) | | | 739,100 | |
| | | | | 2,060,000 | | | Nortek, Inc.
8.50%, 04/15/2021 | | | 2,137,250 | |
| | | | | 1,875,000 | | | Ply Gem Industries, Inc.
6.50%, 02/01/2022 | | | 1,846,875 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Construction Materials - 4.3% - (continued) | |
| | $ | | | | 3,945,000 | | | Standard Industries, Inc.
5.38%, 11/15/2024(1) | | $ | 4,014,037 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,206,587 | |
| | | | | | | | | | | | |
| | | | | | | Distribution/Wholesale - 0.3% | |
| | | | | 625,000 | | | American Builders & Contractors Supply Co., Inc.
5.75%, 12/15/2023(1) | | | 646,875 | |
| | | | | 285,000 | | | HD Supply, Inc.
5.75%, 04/15/2024(1) | | | 296,400 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 943,275 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financial Services - 3.9% | |
| | | | | | | | International Lease Finance Corp. | | | | |
| | | | | 4,721,000 | | | 5.88%, 04/01/2019 | | | 5,033,766 | |
| | | | | 665,000 | | | 5.88%, 08/15/2022 | | | 719,862 | |
| | | | | 970,000 | | | 6.25%, 05/15/2019 | | | 1,039,112 | |
| | | | | 3,360,000 | | | Nationstar Mortgage LLC / Nationstar Capital Corp.
6.50%, 07/01/2021 | | | 2,872,800 | |
| | | | | 280,000 | | | OneMain Financial Holdings LLC
6.75%, 12/15/2019(1) | | | 273,000 | |
| | | | | | | | Springleaf Finance Corp. | | | | |
| | | | | 490,000 | | | 5.25%, 12/15/2019 | | | 456,313 | |
| | | | | 675,000 | | | 7.75%, 10/01/2021 | | | 649,688 | |
| | | | | 1,680,000 | | | 8.25%, 12/15/2020 | | | 1,684,200 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,728,741 | |
| | | | | | | | | | | | |
| | | | | | | Electric - 0.9% | |
| | | | | 350,000 | | | Dynegy, Inc.
5.88%, 06/01/2023 | | | 308,000 | |
| | | | | | | | GenOn Americas Generation LLC | | | | |
| | | | | 1,605,000 | | | 8.50%, 10/01/2021 | | | 1,275,975 | |
| | | | | 1,670,000 | | | 9.13%, 05/01/2031 | | | 1,285,900 | |
| | | | | 415,000 | | | Texas Competitive Electric Holdings Co. LLC
11.50%, 10/01/2020(1)(2)(7) | | | 141,100 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,010,975 | |
| | | | | | | | | | | | |
| | | | | | | Entertainment - 1.0% | |
| | | | | 1,350,000 | | | Carmike Cinemas, Inc.
6.00%, 06/15/2023(1) | | | 1,404,000 | |
| | | | | | | | GLP Capital L.P. / GLP Financing II, Inc. | | | | |
| | | | | 75,000 | | | 4.38%, 04/15/2021 | | | 77,250 | |
| | | | | 1,295,000 | | | 5.38%, 04/15/2026 | | | 1,333,850 | |
| | | | | 570,000 | | | Pinnacle Entertainment, Inc.
5.63%, 05/01/2024(1) | | | 568,575 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,383,675 | |
| | | | | | | | | | | | |
| | | | | | | Environmental Control - 0.3% | |
| | | | | 835,000 | | | Clean Harbors, Inc.
5.13%, 06/01/2021 | | | 854,305 | |
| | | | | | | | | | | | |
| | | | | | | Food - 1.2% | |
| | | | | 380,000 | | | Pinnacle Foods Finance LLC / Pinnacle Foods Finance Corp.
5.88%, 01/15/2024(1) | | | 397,575 | |
| | | | | 686,000 | | | Post Holdings, Inc.
7.38%, 02/15/2022 | | | 721,158 | |
| | | | | | | | TreeHouse Foods, Inc. | | | | |
| | | | | 2,045,000 | | | 4.88%, 03/15/2022 | | | 2,085,900 | |
| | | | | 660,000 | | | 6.00%, 02/15/2024(1) | | | 699,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,904,233 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Forest Products & Paper - 0.5% | |
| | $ | | | | 1,975,000 | | | Tembec Industries, Inc.
9.00%, 12/15/2019(1) | | $ | 1,530,625 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 2.3% | |
| | | | | | | | Alere, Inc. | | | | |
| | | | | 1,685,000 | | | 6.38%, 07/01/2023(1) | | | 1,756,613 | |
| | | | | 2,725,000 | | | 6.50%, 06/15/2020 | | | 2,711,375 | |
| | | | | 2,895,000 | | | Sterigenics-Nordion Holdings LLC
6.50%, 05/15/2023(1) | | | 2,931,187 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,399,175 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 8.9% | |
| | | | | 2,575,000 | | | Amsurg Corp.
5.63%, 07/15/2022 | | | 2,645,812 | |
| | | | | | | | Community Health Systems, Inc. | | | | |
| | | | | 261,000 | | | 5.13%, 08/15/2018 | | | 264,753 | |
| | | | | 4,305,000 | | | 6.88%, 02/01/2022 | | | 3,766,875 | |
| | | | | 2,010,000 | | | 7.13%, 07/15/2020 | | | 1,863,451 | |
| | | | | 1,040,000 | | | Envision Healthcare Corp.
5.13%, 07/01/2022(1) | | | 1,045,200 | |
| | | | | 1,835,000 | | | HCA Holdings, Inc.
6.25%, 02/15/2021 | | | 1,958,862 | |
| | | | | | | | HCA, Inc. | | | | |
| | | | | 1,340,000 | | | 5.25%, 06/15/2026 | | | 1,391,088 | |
| | | | | 1,085,000 | | | 5.38%, 02/01/2025 | | | 1,112,125 | |
| | | | | 4,209,000 | | | 7.50%, 11/15/2095 | | | 4,082,730 | |
| | | | | 535,000 | | | inVentiv Health, Inc.
9.00%, 01/15/2018(1) | | | 549,713 | |
| | | | | 1,965,000 | | | LifePoint Health, Inc.
5.88%, 12/01/2023 | | | 2,043,600 | |
| | | | | 945,000 | | | MEDNAX, Inc.
5.25%, 12/01/2023(1) | | | 956,813 | |
| | | | | 350,000 | | | MPH Acquisition Holdings LLC
7.13%, 06/01/2024(1) | | | 367,500 | |
| | | | | | | | Tenet Healthcare Corp. | | | | |
| | | | | 3,305,000 | | | 5.00%, 03/01/2019 | | | 3,197,587 | |
| | | | | 500,000 | | | 6.75%, 06/15/2023 | | | 478,750 | |
| | | | | 3,265,000 | | | 8.13%, 04/01/2022 | | | 3,345,972 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,070,831 | |
| | | | | | | | | | | | |
| | | | | | | Home Builders - 2.4% | |
| | | | | | | | DR Horton, Inc. | | | | |
| | | | | 956,000 | | | 4.38%, 09/15/2022 | | | 984,680 | |
| | | | | 240,000 | | | 5.75%, 08/15/2023 | | | 266,400 | |
| | | | | | | | KB Home | | | | |
| | | | | 926,000 | | | 7.50%, 09/15/2022 | | | 953,780 | |
| | | | | 2,930,000 | | | 8.00%, 03/15/2020 | | | 3,135,100 | |
| | | | | 370,000 | | | Lennar Corp.
4.88%, 12/15/2023 | | | 370,925 | |
| | | | | 2,115,000 | | | M/I Homes, Inc.
6.75%, 01/15/2021 | | | 2,104,425 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,815,310 | |
| | | | | | | | | | | | |
| | | | | | | Household Products/Wares - 0.5% | |
| | | | | 1,680,000 | | | Sun Products Corp.
7.75%, 03/15/2021(1) | | | 1,740,900 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 0.4% | |
| | | | | | | | CNO Financial Group, Inc. | | | | |
| | | | | 340,000 | | | 4.50%, 05/30/2020 | | | 351,900 | |
| | | | | 835,000 | | | 5.25%, 05/30/2025 | | | 860,050 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,211,950 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Internet - 1.4% | |
| | $ | | | | 1,070,000 | | | Netflix, Inc.
5.88%, 02/15/2025 | | $ | 1,122,163 | |
| | | | | | | | Zayo Group LLC / Zayo Capital, Inc. | | | | |
| | | | | 2,145,000 | | | 6.00%, 04/01/2023 | | | 2,177,175 | |
| | | | | 1,165,000 | | | 6.38%, 05/15/2025 | | | 1,188,300 | |
| | | | | | | | | | | | |
| | | | | | | | | | �� | 4,487,638 | |
| | | | | | | | | | | | |
| | | | | | | Iron/Steel - 2.6% | |
| | | | | | | | AK Steel Corp. | | | | |
| | | | | 760,000 | | | 7.63%, 05/15/2020 | | | 725,800 | |
| | | | | 1,015,000 | | | 7.63%, 10/01/2021 | | | 921,112 | |
| | | | | 840,000 | | | 8.38%, 04/01/2022 | | | 772,800 | |
| | | | | | | | ArcelorMittal | | | | |
| | | | | 950,000 | | | 6.50%, 03/01/2021 | | | 976,125 | |
| | | | | 705,000 | | | 7.25%, 02/25/2022 | | | 742,012 | |
| | | | | 515,000 | | | Signode Industrial Group Lux SA/Signode Industrial Group US, Inc.
6.38%, 05/01/2022(1) | | | 492,469 | |
| | | | | 1,130,000 | | | Steel Dynamics, Inc.
5.50%, 10/01/2024 | | | 1,155,425 | |
| | | | | | | | United States Steel Corp. | | | | |
| | | | | 281,000 | | | 6.88%, 04/01/2021 | | | 243,768 | |
| | | | | 724,000 | | | 7.38%, 04/01/2020 | | | 681,248 | |
| | | | | 225,000 | | | 7.50%, 03/15/2022 | | | 196,805 | |
| | | | | 1,645,000 | | | 8.38%, 07/01/2021(1) | | | 1,727,250 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,634,814 | |
| | | | | | | | | | | | |
| | | | | | | Lodging - 0.7% | |
| | | | | 920,000 | | | Boyd Gaming Corp.
6.38%, 04/01/2026(1) | | | 961,400 | |
| | | | | 1,210,000 | | | FelCor Lodging L.P.
6.00%, 06/01/2025 | | | 1,219,075 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,180,475 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Diversified - 0.1% | |
| | | | | 445,000 | | | CNH Industrial Capital LLC
4.38%, 11/06/2020 | | | 449,450 | |
| | | | | | | | | | | | |
| | | | | | | Media - 10.9% | |
| | | | | | | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| | | | | 120,000 | | | 5.13%, 02/15/2023 | | | 121,861 | |
| | | | | 245,000 | | | 5.13%, 05/01/2023(1) | | | 246,378 | |
| | | | | 95,000 | | | 5.25%, 09/30/2022 | | | 97,494 | |
| | | | | 545,000 | | | 5.75%, 09/01/2023 | | | 564,075 | |
| | | | | 105,000 | | | 5.75%, 01/15/2024 | | | 110,502 | |
| | | | | 1,355,000 | | | 5.75%, 02/15/2026(1) | | | 1,395,650 | |
| | | | | 4,305,000 | | | Cequel Communications Holdings I LLC / Cequel Capital Corp.
5.13%, 12/15/2021(1) | | | 4,091,613 | |
| | | | | 1,560,000 | | | CSC Holdings LLC
5.25%, 06/01/2024 | | | 1,419,600 | |
| | | | | | | | DISH DBS Corp. | | | | |
| | | | | 2,170,000 | | | 5.00%, 03/15/2023 | | | 1,974,700 | |
| | | | | 2,150,000 | | | 5.88%, 07/15/2022 | | | 2,090,875 | |
| | | | | 945,000 | | | 6.75%, 06/01/2021 | | | 979,256 | |
| | | | | 1,191,000 | | | 7.88%, 09/01/2019 | | | 1,313,078 | |
| | | | | | | | Gray Television, Inc. | | | | |
| | | | | 190,000 | | | 5.88%, 07/15/2026(1) | | | 190,475 | |
| | | | | 996,000 | | | 7.50%, 10/01/2020 | | | 1,038,330 | |
| | | | | 2,625,000 | | | Liberty Interactive LLC
8.25%, 02/01/2030 | | | 2,723,437 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Media - 10.9% - (continued) | |
| | $ | | | | 2,180,000 | | | NBCUniversal Enterprise, Inc.
5.25%, 03/29/2049(1)(4) | | $ | 2,248,125 | |
| | | | | | | | Neptune Finco Corp. | | | | |
| | | | | 760,000 | | | 10.13%, 01/15/2023(1) | | | 851,200 | |
| | | | | 750,000 | | | 10.88%, 10/15/2025(1) | | | 857,340 | |
| | | | | 2,370,000 | | | Numericable-SFR S.A.
7.38%, 05/01/2026(1) | | | 2,343,337 | |
| | | | | 1,055,000 | | | Sinclair Television Group, Inc.
5.88%, 03/15/2026(1) | | | 1,076,100 | |
| | | | | 1,105,000 | | | Sirius XM Radio, Inc.
4.63%, 05/15/2023(1) | | | 1,071,938 | |
| | | | | | | | TEGNA, Inc. | | | | |
| | | | | 1,515,000 | | | 4.88%, 09/15/2021(1) | | | 1,552,875 | |
| | | | | 2,865,000 | | | 5.13%, 10/15/2019 | | | 2,947,369 | |
| | | | | 250,000 | | | 5.50%, 09/15/2024(1) | | | 257,500 | |
| | | | | 750,000 | | | 6.38%, 10/15/2023 | | | 796,875 | |
| | | | | 3,495,000 | | | Tribune Media Co.
5.88%, 07/15/2022 | | | 3,477,525 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 35,837,508 | |
| | | | | | | | | | | | |
| | | | | | | Mining - 1.7% | |
| | | | | | | | Anglo American Capital plc | | | | |
| | | | | 260,000 | | | 4.13%, 04/15/2021(1) | | | 245,700 | |
| | | | | 1,330,000 | | | 4.88%, 05/14/2025(1) | | | 1,263,500 | |
| | | | | 395,000 | | | 9.38%, 04/08/2019(1) | | | 451,781 | |
| | | | | 1,345,000 | | | Constellium N.V.
7.88%, 04/01/2021(1) | | | 1,387,031 | |
| | | | | 880,000 | | | Kaiser Aluminum Corp.
5.88%, 05/15/2024(1) | | | 904,200 | |
| | | | | 80,000 | | | New Gold, Inc.
6.25%, 11/15/2022(1) | | | 78,000 | |
| | | | | | | | Teck Resources Ltd. | | | | |
| | | | | 395,000 | | | 8.00%, 06/01/2021(1) | | | 406,850 | |
| | | | | 705,000 | | | 8.50%, 06/01/2024(1) | | | 731,438 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,468,500 | |
| | | | | | | | | | | | |
| | | | | | | Miscellaneous Manufacturing - 0.7% | |
| | | | | 2,665,000 | | | Bombardier, Inc.
6.13%, 01/15/2023(1) | | | 2,271,913 | |
| | | | | | | | | | | | |
| | | | | | | Office/Business Equipment - 1.1% | |
| | | | | | | | CDW LLC / CDW Finance Corp. | | | | |
| | | | | 885,000 | | | 5.00%, 09/01/2023 | | | 891,186 | |
| | | | | 970,000 | | | 5.50%, 12/01/2024 | | | 1,001,525 | |
| | | | | 1,780,000 | | | 6.00%, 08/15/2022 | | | 1,860,100 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,752,811 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 12.1% | |
| | | | | | | | Anadarko Petroleum Corp. | | | | |
| | | | | 1,060,000 | | | 4.50%, 07/15/2044 | | | 973,538 | |
| | | | | 130,000 | | | 4.85%, 03/15/2021 | | | 137,880 | |
| | | | | 90,000 | | | 5.55%, 03/15/2026 | | | 99,385 | |
| | | | | 145,000 | | | 6.60%, 03/15/2046 | | | 175,088 | |
| | | | | | | | Antero Resources Corp. | | | | |
| | | | | 810,000 | | | 5.63%, 06/01/2023 | | | 785,700 | |
| | | | | 1,470,000 | | | 6.00%, 12/01/2020 | | | 1,485,935 | |
| | | | | 2,120,000 | | | Blue Racer Midstream LLC / Blue Racer Finance Corp.
6.13%, 11/15/2022(1) | | | 2,008,700 | |
| | | | | 1,475,000 | | | Bonanza Creek Energy, Inc.
6.75%, 04/15/2021 | | | 604,750 | |
| | | | | 4,185,000 | | | California Resources Corp.
8.00%, 12/15/2022(1) | | | 2,971,350 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Oil & Gas - 12.1% - (continued) | |
| | | | | | | | Concho Resources, Inc. | | | | |
| | $ | | | | 1,910,000 | | | 5.50%, 10/01/2022 | | $ | 1,919,550 | |
| | | | | 325,000 | | | 5.50%, 04/01/2023 | | | 325,812 | |
| | | | | | | | Continental Resources, Inc. | | | | |
| | | | | 475,000 | | | 3.80%, 06/01/2024 | | | 414,437 | |
| | | | | 265,000 | | | 4.50%, 04/15/2023 | | | 247,113 | |
| | | | | 2,015,000 | | | 4.90%, 06/01/2044 | | | 1,662,375 | |
| | | | | 1,005,000 | | | 5.00%, 09/15/2022 | | | 982,387 | |
| | | | | 2,320,000 | | | Denbury Resources, Inc.
9.00%, 05/15/2021(1) | | | 2,320,000 | |
| | | | | 2,700,000 | | | Diamondback Energy, Inc.
7.63%, 10/01/2021 | | | 2,851,875 | |
| | | | | 1,430,000 | | | Energen Corp.
4.63%, 09/01/2021 | | | 1,344,200 | |
| | | | | | | | Laredo Petroleum, Inc. | | | | |
| | | | | 740,000 | | | 5.63%, 01/15/2022 | | | 691,900 | |
| | | | | 1,360,000 | | | 6.25%, 03/15/2023 | | | 1,292,000 | |
| | | | | 670,000 | | | 7.38%, 05/01/2022 | | | 671,675 | |
| | | | | 840,000 | | | Matador Resources Co.
6.88%, 04/15/2023 | | | 856,800 | |
| | | | | | | | MEG Energy Corp. | | | | |
| | | | | 900,000 | | | 6.38%, 01/30/2023(1) | | | 666,000 | |
| | | | | 1,940,000 | | | 7.00%, 03/31/2024(1) | | | 1,493,800 | |
| | | | | | | | QEP Resources, Inc. | | | | |
| | | | | 2,185,000 | | | 5.25%, 05/01/2023 | | | 2,010,200 | |
| | | | | 205,000 | | | 5.38%, 10/01/2022 | | | 191,163 | |
| | | | | 245,000 | | | 6.80%, 03/01/2020 | | | 246,838 | |
| | | | | | | | Rice Energy, Inc. | | | | |
| | | | | 635,000 | | | 6.25%, 05/01/2022 | | | 630,237 | |
| | | | | 515,000 | | | 7.25%, 05/01/2023 | | | 522,725 | |
| | | | | 1,140,000 | | | RSP Permian, Inc.
6.63%, 10/01/2022 | | | 1,174,200 | |
| | | | | | | | SM Energy Co. | | | | |
| | | | | 1,635,000 | | | 5.00%, 01/15/2024 | | | 1,397,925 | |
| | | | | 15,000 | | | 5.63%, 06/01/2025 | | | 12,900 | |
| | | | | 240,000 | | | 6.13%, 11/15/2022 | | | 220,500 | |
| | | | | 115,000 | | | 6.50%, 11/15/2021 | | | 107,813 | |
| | | | | | | | Tullow Oil plc | | | | |
| | | | | 1,015,000 | | | 6.00%, 11/01/2020(1) | | | 819,612 | |
| | | | | 2,065,000 | | | 6.25%, 04/15/2022(1) | | | 1,652,000 | |
| | | | | | | | WPX Energy, Inc. | | | | |
| | | | | 2,000,000 | | | 5.25%, 09/15/2024 | | | 1,760,000 | |
| | | | | 1,420,000 | | | 6.00%, 01/15/2022 | | | 1,320,600 | |
| | | | | 560,000 | | | 8.25%, 08/01/2023 | | | 561,400 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 39,610,363 | |
| | | | | | | | | | | | |
| | | | | | | Packaging & Containers - 4.1% | |
| | | | | 1,121,075 | | | Ardagh Finance Holdings S.A.
8.63%, 06/15/2019(1)(8) | | | 1,132,286 | |
| | | | | | | | Ardagh Packaging Finance plc | | | | |
| | | | | 2,065,000 | | | 6.00%, 06/30/2021(1) | | | 2,049,512 | |
| | | | | 550,000 | | | 6.75%, 01/31/2021(1) | | | 553,438 | |
| | | | | 305,000 | | | 7.25%, 05/15/2024(1) | | | 311,291 | |
| | | | | | | | Ball Corp. | | | | |
| | EUR | | | | 315,000 | | | 3.50%, 12/15/2020 | | | 375,789 | |
| | | | | 420,000 | | | 4.38%, 12/15/2023 | | | 502,217 | |
| | $ | | | | 2,060,000 | | | Berry Plastics Corp.
6.00%, 10/15/2022 | | | 2,129,525 | |
| | | | | 230,000 | | | Beverage Packaging Holdings Luxembourg II S.A. / Beverage Packaging Holdings II Is
6.00%, 06/15/2017(1) | | | 230,575 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Packaging & Containers - 4.1% - (continued) | |
| | | | | | | | Owens-Brockway Glass Container, Inc. | | | | |
| | $ | | | | 1,795,000 | | | 5.88%, 08/15/2023(1) | | $ | 1,885,504 | |
| | | | | 2,215,000 | | | 6.38%, 08/15/2025(1) | | | 2,314,675 | |
| | | | | | | | Reynolds Group Issuer, Inc. | | | | |
| | | | | 670,000 | | | 5.13%, 07/15/2023(1) | | | 678,375 | |
| | | | | 805,000 | | | 7.00%, 07/15/2024(1) | | | 828,747 | |
| | | | | 450,000 | | | 8.25%, 02/15/2021 | | | 470,754 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,462,688 | |
| | | | | | | | | | | | |
| | | | | | | Pharmaceuticals - 4.1% | |
| | | | | | | | Endo Finance LLC | | | | |
| | | | | 561,000 | | | 6.00%, 07/15/2023(1) | | | 490,875 | |
| | | | | 3,075,000 | | | 6.00%, 02/01/2025(1) | | | 2,667,563 | |
| | | | | 1,908,000 | | | PRA Holdings, Inc.
9.50%, 10/01/2023(1) | | | 2,117,880 | |
| | | | | 2,050,000 | | | Quintiles Transnational Corp.
4.88%, 05/15/2023(1) | | | 2,080,750 | |
| | | | | | | | Valeant Pharmaceuticals International, Inc. | | | | |
| | | | | 1,320,000 | | | 5.50%, 03/01/2023(1) | | | 1,060,125 | |
| | | | | 5,015,000 | | | 5.88%, 05/15/2023(1) | | | 4,049,612 | |
| | | | | 365,000 | | | 6.13%, 04/15/2025(1) | | | 292,913 | |
| | | | | 750,000 | | | Vizient, Inc.
10.38%, 03/01/2024(1) | | | 804,375 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,564,093 | |
| | | | | | | | | | | | |
| | | | | | | Pipelines - 1.7% | |
| | | | | | | | Energy Transfer Equity L.P. | | | | |
| | | | | 2,745,000 | | | 5.50%, 06/01/2027 | | | 2,580,300 | |
| | | | | 1,773,000 | | | 7.50%, 10/15/2020 | | | 1,879,380 | |
| | | | | 1,100,000 | | | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.
6.75%, 03/15/2024(1) | | | 1,127,500 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,587,180 | |
| | | | | | | | | | | | |
| | | | | | | REITS - 0.4% | |
| | | | | 1,110,000 | | | Equinix, Inc.
5.88%, 01/15/2026 | | | 1,156,481 | |
| | | | | | | | | | | | |
| | | | | | | Retail - 2.7% | |
| | | | | 1,945,000 | | | CEC Entertainment, Inc.
8.00%, 02/15/2022 | | | 1,881,788 | |
| | | | | 1,527,262 | | | Chinos Intermediate Holdings A, Inc.
7.75%, 05/01/2019(1)(8) | | | 519,269 | |
| | | | | 2,430,000 | | | L Brands, Inc.
6.88%, 11/01/2035 | | | 2,460,375 | |
| | | | | 2,315,000 | | | Michaels Stores, Inc.
5.88%, 12/15/2020(1) | | | 2,396,025 | |
| | | | | 1,440,000 | | | Party City Holdings, Inc.
6.13%, 08/15/2023(1) | | | 1,490,400 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,747,857 | |
| | | | | | | | | | | | |
| | | | | | | Semiconductors - 1.9% | |
| | | | | 2,515,000 | | | Entegris, Inc.
6.00%, 04/01/2022(1) | | | 2,574,731 | |
| | | | | 1,570,000 | | | Freescale Semiconductor, Inc.
6.00%, 01/15/2022(1) | | | 1,655,565 | |
| | | | | | | | Sensata Technologies B.V. | | | | |
| | | | | 1,185,000 | | | 5.00%, 10/01/2025(1) | | | 1,190,202 | |
| | | | | 775,000 | | | 5.63%, 11/01/2024(1) | | | 804,543 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,225,041 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 92.0% - (continued) | |
| | | | | | | Software - 3.9% | |
| | | | | | | | Change Healthcare Holdings, Inc. | | | | |
| | $ | | | | 1,140,000 | | | 6.00%, 02/15/2021(1) | | $ | 1,209,825 | |
| | | | | 1,640,000 | | | 11.00%, 12/31/2019 | | | 1,744,550 | |
| | | | | | | | First Data Corp. | | | | |
| | | | | 1,425,000 | | | 5.38%, 08/15/2023(1) | | | 1,447,102 | |
| | | | | 3,231,000 | | | 5.75%, 01/15/2024(1) | | | 3,206,767 | |
| | | | | 1,580,000 | | | 7.00%, 12/01/2023(1) | | | 1,599,750 | |
| | | | | 994,000 | | | Infor Software Parent LLC
7.13%, 05/01/2021(1)(8) | | | 879,690 | |
| | | | | 2,075,000 | | | Infor US, Inc.
6.50%, 05/15/2022 | | | 1,959,588 | |
| | | | | | | | MSCI, Inc. | | | | |
| | | | | 196,000 | | | 5.25%, 11/15/2024(1) | | | 200,410 | |
| | | | | 625,000 | | | 5.75%, 08/15/2025(1) | | | 648,438 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,896,120 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 8.8% | |
| | | | | | | | Alcatel-Lucent USA, Inc. | | | | |
| | | | | 2,681,000 | | | 6.45%, 03/15/2029 | | | 2,794,942 | |
| | | | | 765,000 | | | 6.50%, 01/15/2028 | | | 786,038 | |
| | | | | | | | Altice Financing S.A. | | | | |
| | | | | 485,000 | | | 6.50%, 01/15/2022(1) | | | 489,850 | |
| | | | | 380,000 | | | 6.63%, 02/15/2023(1) | | | 373,111 | |
| | | | | 2,840,000 | | | 7.50%, 05/15/2026(1) | | | 2,776,100 | |
| | | | | | | | Frontier Communications Corp. | | | | |
| | | | | 840,000 | | | 10.50%, 09/15/2022 | | | 888,825 | |
| | | | | 2,065,000 | | | 11.00%, 09/15/2025 | | | 2,137,275 | |
| | | | | | | | Level 3 Financing, Inc. | | | | |
| | | | | 970,000 | | | 5.13%, 05/01/2023 | | | 961,513 | |
| | | | | 1,080,000 | | | 5.25%, 03/15/2026(1) | | | 1,058,400 | |
| | | | | 2,515,000 | | | 5.38%, 08/15/2022 | | | 2,540,150 | |
| | | | | 920,000 | | | 5.63%, 02/01/2023 | | | 928,630 | |
| | | | | | | | Sprint Communications, Inc. | | | | |
| | | | | 507,000 | | | 7.00%, 03/01/2020(1) | | | 530,824 | |
| | | | | 3,092,000 | | | 9.00%, 11/15/2018(1) | | | 3,292,980 | |
| | | | | | | | Sprint Corp. | | | | |
| | | | | 100,000 | | | 7.13%, 06/15/2024 | | | 79,750 | |
| | | | | 2,495,000 | | | 7.25%, 09/15/2021 | | | 2,126,987 | |
| | | | | 2,005,000 | | | 7.88%, 09/15/2023 | | | 1,639,087 | |
| | | | | 1,155,000 | | | Syniverse Holdings, Inc.
9.13%, 01/15/2019 | | | 565,950 | |
| | | | | 1,600,000 | | | T-Mobile USA, Inc.
6.46%, 04/28/2019 | | | 1,626,000 | |
| | | | | | | | Wind Acquisition Finance S.A. | | | | |
| | EUR | | | | 2,640,000 | | | 4.00%, 07/15/2020(1) | | | 2,885,793 | |
| | $ | | | | 215,000 | | | 6.50%, 04/30/2020(1) | | | 220,913 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,703,118 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Corporate Bonds
(cost $305,562,754) | | $ | 300,757,373 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SENIOR FLOATING RATE INTERESTS - 1.6%(9) | | | |
| | | | | | | Electric - 0.5% | |
| | | | | 4,525,000 | | | Texas Competitive Electric Holdings Co. LLC
4.93%, 10/10/2017(7) | | $ | 1,512,662 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 0.2% | |
| | | | | 598,500 | | | Vizient, Inc.
6.25%, 02/13/2023 | | | 602,241 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 1.6%(9) - (continued) | | | |
| | | | | | | Insurance - 0.1% | |
| | $ | | | | 550,000 | | | Asurion LLC
8.50%, 03/03/2021 | | $ | 528,000 | |
| | | | | | | | | | | | |
| | | | | | | Internet - 0.3% | |
| | | | | 1,279,636 | | | Lands’ End, Inc.
4.25%, 04/04/2021 | | | 976,785 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Diversified - 0.3% | |
| | | | | 974,664 | | | Gardner Denver, Inc.
4.25%, 07/30/2020 | | | 895,063 | |
| | | | | | | | | | | | |
| | | | | | | Media - 0.2% | |
| | | | | 810,000 | | | Virgin Media Investment Holdings Ltd.
3.65%, 06/30/2023 | | | 789,475 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Senior Floating Rate Interests
(cost $7,488,558) | | $ | 5,304,226 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CONVERTIBLE BONDS - 0.6% | | | |
| | | | | | | Home Builders - 0.2% | |
| | | | | 566,000 | | | M/I Homes, Inc.
3.00%, 03/01/2018 | | $ | 551,496 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 0.2% | |
| | | | | 680,000 | | | MGIC Investment Corp.
2.00%, 04/01/2020 | | | 754,800 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 0.2% | |
| | | | | 1,790,000 | | | Cobalt International Energy, Inc.
2.63%, 12/01/2019 | | | 671,250 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Convertible Bonds
(cost $3,301,508) | | $ | 1,977,546 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| COMMON STOCKS - 0.5% | | | |
| | | | | | | Energy - 0.5% | |
| | | | | 206,275,142 | | | KCA Deutag*(1)(3)(10) | | $ | 1,692,487 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Common Stocks
(cost $2,795,441) | | $ | 1,692,487 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Long-Term Investments
(cost $321,627,219) | | $ | 309,731,632 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS - 2.3% | | | |
| | | | | | | Other Investment Pools & Funds - 2.3% | |
| | | | | 7,694,181 | | | Fidelity Money Market Class 1 | | $ | 7,694,181 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $7,694,181) | | $ | 7,694,181 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | Total Investments
(cost $329,321,400)^ | | | 97.0 | % | | $ | 317,425,813 | |
| | | | | | | | Other Assets and Liabilities | | | 3.0 | % | | | 9,758,975 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | Total Net Assets | | | 100.0 | % | | $ | 327,184,788 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types. |
| | Equity Industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized depreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 7,496,179 | |
Unrealized Depreciation | | | (19,391,766 | ) |
| | | | |
Net Unrealized Depreciation | | $ | (11,895,587 | ) |
| | | | |
| (1) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $129,422,273, which represents 39.6% of total net assets. |
| (2) | Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. |
| (3) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of these securities was $1,692,487, which represents 0.5% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (4) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (5) | These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $5,399,789, which represents 1.7% of total net assets. |
| (6) | Variable rate securities; the rate reported is the coupon rate in effect at June 30, 2016. |
| (7) | The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments. |
| (8) | This security may pay interest in additional principal instead of cash. |
| (9) | Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of June 30, 2016. |
| (10) | The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 03/2011 | | | | 206,275,142 | | | KCA Deutag | | $ | 2,795,441 | |
| | At June 30, 2016, the aggregate value of these securities was $1,692,487, which represents 0.5% of total net assets. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts Outstanding at June 30, 2016 | |
Reference Entity | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Cost
Basis | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX.NA.HY.26 | | | USD | | | | 7,680,000 | | | | 5.00% | | | | 06/20/21 | | | $ | 117,560 | | | $ | 246,391 | | | $ | 128,831 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 117,560 | | | $ | 246,391 | | | $ | 128,831 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at June 30, 2016 | |
Currency | | Buy/Sell | | Delivery
Date | | | Counterparty | | | Contract
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
EUR | | Sell | | | 07/29/16 | | | | JPM | | | $ | 6,483,167 | | | $ | 6,528,038 | | | $ | (44,871) | |
| | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
JPM | | JP Morgan Chase & Co. |
|
| Currency Abbreviations: |
EUR | | Euro |
USD | | United States Dollar |
|
| Index Abbreviations: |
CDX.NA.HY | | Credit Derivatives North American High Yield |
|
| Other Abbreviations: |
LIBOR | | London Interbank Offered Rate |
MSCI | | Morgan Stanley Capital International |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Corporate Bonds | | | 300,757,373 | | | | — | | | | 300,757,373 | | | | — | |
Senior Floating Rate Interests | | | 5,304,226 | | | | — | | | | 5,304,226 | | | | — | |
Convertible Bonds | | | 1,977,546 | | | | — | | | | 1,977,546 | | | | — | |
Common Stocks | | | | | | | | | | | | | | | | |
Energy | | | 1,692,487 | | | | — | | | | — | | | | 1,692,487 | |
Short-Term Investments | | | 7,694,181 | | | | 7,694,181 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 128,831 | | | | — | | | | 128,831 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 317,554,644 | | | $ | 7,694,181 | | | $ | 308,167,976 | | | $ | 1,692,487 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Foreign Currency Contracts(2) | | $ | (44,871 | ) | | $ | — | | | $ | (44,871 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (44,871 | ) | | $ | — | | | $ | (44,871 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 921,843 | | | $ | 921,843 | |
Purchases | | | — | | | | — | |
Sales | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 770,644 | | | | 770,644 | |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 1,692,487 | | | $ | 1,692,487 | |
| | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $770,644.
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.9% | |
| | | | Australia - 1.5% | |
| | 1,216,993 | | | BHP Billiton plc | | $ | 15,403,389 | |
| | 339,563 | | | Westfield Corp. REIT | | | 2,727,599 | |
| | | | | | | | |
| | | | | | | 18,130,988 | |
| | | | | | | | |
| | | | Belgium - 2.3% | |
| | 218,424 | | | Anheuser-Busch InBev N.V. | | | 28,883,584 | |
| | | | | | | | |
| | | | Brazil - 1.6% | |
| | 605,710 | | | BB Seguridade Participacoes S.A. | | | 5,300,410 | |
| | 1,172,092 | | | Petroleo Brasileiro S.A. ADR* | | | 8,392,179 | |
| | 1,109,320 | | | Vale S.A. ADR | | | 5,613,159 | |
| | | | | | | | |
| | | | | | | 19,305,748 | |
| | | | | | | | |
| | | | Canada - 6.9% | |
| | 539,665 | | | Canadian National Railway Co. | | | 31,867,366 | |
| | 379,310 | | | Imperial Oil Ltd. | | | 12,002,162 | |
| | 524,500 | | | Magna International, Inc. | | | 18,410,987 | |
| | 513,770 | | | TransCanada Corp. | | | 23,247,799 | |
| | | | | | | | |
| | | | | | | 85,528,314 | |
| | | | | | | | |
| | | | China - 3.9% | |
| | 211,578 | | | Alibaba Group Holding Ltd. ADR* | | | 16,826,798 | |
| | 44,266 | | | Baidu, Inc. ADR* | | | 7,310,530 | |
| | 2,413,000 | | | China Life Insurance Co., Ltd. Class H | | | 5,202,719 | |
| | 9,579,000 | | | CNOOC Ltd. | | | 11,956,691 | |
| | 4,158,000 | | | PICC Property & Casualty Co., Ltd. Class H | | | 6,555,684 | |
| | | | | | | | |
| | | | | | | 47,852,422 | |
| | | | | | | | |
| | | | Denmark - 0.2% | |
| | 84,954 | | | H. Lundbeck A/S* | | | 3,184,700 | |
| | | | | | | | |
| | | | France - 13.6% | |
| | 400,080 | | | Airbus Group SE | | | 22,932,556 | |
| | 250,658 | | | BNP Paribas S.A. | | | 10,992,735 | |
| | 146,979 | | | Capgemini S.A. | | | 12,683,218 | |
| | 193,550 | | | Essilor International S.A. | | | 25,438,078 | |
| | 68,309 | | | LVMH Moet Hennessy Louis Vuitton SE | | | 10,296,530 | |
| | 350,853 | | | Schneider Electric SE | | | 20,468,994 | |
| | 107,864 | | | Technip S.A. | | | 5,838,131 | |
| | 824,123 | | | Total S.A. | | | 39,521,634 | |
| | 79,629 | | | Unibail-Rodamco SE REIT | | | 20,599,530 | |
| | | | | | | | |
| | | | | | | 168,771,406 | |
| | | | | | | | |
| | | | Germany - 9.6% | |
| | 23,378 | | | adidas AG | | | 3,355,893 | |
| | 303,444 | | | Beiersdorf AG | | | 28,728,406 | |
| | 171,252 | | | Brenntag AG | | | 8,295,780 | |
| | 55,015 | | | Continental AG | | | 10,410,303 | |
| | 813,388 | | | Deutsche Telekom AG | | | 13,870,102 | |
| | 213,037 | | | Deutsche Wohnen AG | | | 7,253,493 | |
| | 703,214 | | | E.ON SE | | | 7,098,813 | |
| | 405,871 | | | RWE AG* | | | 6,463,577 | |
| | 130,613 | | | Siemens AG | | | 13,403,655 | |
| | 564,500 | | | Vonovia SE | | | 20,612,131 | |
| | | | | | | | |
| | | | | | | 119,492,153 | |
| | | | | | | | |
| | | | Greece - 0.2% | |
| | 1,600,799 | | | Alpha Bank A.E.* | | | 2,999,510 | |
| | | | | | | | |
| | | | Hong Kong - 0.9% | |
| | 480,907 | | | Hong Kong Exchanges and Clearing Ltd. | | | 11,717,568 | |
| | | | | | | | |
| | | | India - 3.0% | |
| | 1,417,581 | | | Bharti Infratel Ltd. | | | 7,263,770 | |
| | 76,126 | | | Divi’s Laboratories Ltd. | | | 1,254,672 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.9% - (continued) | |
| | | | India - 3.0% - (continued) | |
| | 102,510 | | | HDFC Bank Ltd. ADR | | $ | 6,801,539 | |
| | 2,478,252 | | | ICICI Bank Ltd. | | | 8,869,965 | |
| | 64,478 | | | Maruti Suzuki India Ltd. | | | 4,008,350 | |
| | 953,861 | | | Power Grid Corp. of India Ltd. | | | 2,309,497 | |
| | 165,658 | | | Tata Consultancy Services Ltd. | | | 6,278,288 | |
| | | | | | | | |
| | | | | | | 36,786,081 | |
| | | | | | | | |
| | | | Ireland - 1.5% | |
| | 637,471 | | | CRH plc | | | 18,692,936 | |
| | | | | | | | |
| | | | Italy - 4.5% | |
| | 306,221 | | | Banca Generali S.p.A. | | | 6,137,727 | |
| | 1,330,812 | | | Eni S.p.A. | | | 21,435,615 | |
| | 703,661 | | | FinecoBank Banca Fineco S.p.A. | | | 4,595,565 | |
| | 2,600,933 | | | Intesa Sanpaolo S.p.A. | | | 4,954,024 | |
| | 390,431 | | | Luxottica Group S.p.A. | | | 19,028,685 | |
| | | | | | | | |
| | | | | | | 56,151,616 | |
| | | | | | | | |
| | | | Japan - 10.4% | |
| | 101,360 | | | Asics Corp. | | | 1,712,467 | |
| | 64,080 | | | Daito Trust Construction Co., Ltd. | | | 10,404,179 | |
| | 233,945 | | | Daiwa House Industry Co., Ltd. | | | 6,870,264 | |
| | 54,622 | | | Eisai Co., Ltd. | | | 3,049,879 | |
| | 1,427,000 | | | Mitsubishi Electric Corp. | | | 17,036,023 | |
| | 1,300,000 | | | NEC Corp. | | | 3,028,823 | |
| | 380,900 | | | Nippon Telegraph & Telephone Corp. | | | 17,862,261 | |
| | 121,405 | | | Olympus Corp. | | | 4,533,453 | |
| | 179,900 | | | Omron Corp. | | | 5,872,075 | |
| | 193,674 | | | Ono Pharmaceutical Co., Ltd. | | | 8,436,646 | |
| | 525,230 | | | Seven & I Holdings Co., Ltd. | | | 22,021,894 | |
| | 566,600 | | | Sumitomo Mitsui Financial Group, Inc. | | | 16,360,599 | |
| | 350,733 | | | Tokio Marine Holdings, Inc. | | | 11,676,273 | |
| | | | | | | | |
| | | | | | | 128,864,836 | |
| | | | | | | | |
| | | | Jersey - 0.4% | |
| | 2,475,752 | | | Glencore plc | | | 5,102,816 | |
| | | | | | | | |
| | | | Netherlands - 2.4% | |
| | 214,141 | | | AerCap Holdings N.V.* | | | 7,192,996 | |
| | 284,552 | | | NXP Semiconductors N.V.* | | | 22,291,804 | |
| | | | | | | | |
| | | | | | | 29,484,800 | |
| | | | | | | | |
| | | | Russia - 1.1% | |
| | 1,512,000 | | | Sberbank of Russia PJSC ADR | | | 13,260,930 | |
| | | | | | | | |
| | | | South Korea - 1.6% | |
| | 47,060 | | | Hyundai Motor Co.* | | | 5,566,792 | |
| | 30,443 | | | Korea Electric Power Corp. | | | 1,598,013 | |
| | 441,486 | | | SK Hynix, Inc. | | | 12,563,359 | |
| | | | | | | | |
| | | | | | | 19,728,164 | |
| | | | | | | | |
| | | | Spain - 0.9% | |
| | 329,959 | | | Industria de Diseno Textil S.A. | | | 11,084,626 | |
| | | | | | | | |
| | | | Sweden - 1.0% | |
| | 590,213 | | | Assa Abloy AB Class B | | | 12,142,353 | |
| | | | | | | | |
| | | | Switzerland - 6.6% | |
| | 220,210 | | | Julius Baer Group Ltd.* | | | 8,863,077 | |
| | 467,593 | | | LafargeHolcim Ltd.* | | | 19,562,935 | |
| | 436,288 | | | Novartis AG | | | 36,010,555 | |
| | 68,631 | | | Zurich Insurance Group AG* | | | 16,978,122 | |
| | | | | | | | |
| | | | | | | 81,414,689 | |
| | | | | | | | |
| | | | Taiwan - 3.1% | |
| | 7,646,035 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 38,533,694 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.9% - (continued) | |
| | | | United Kingdom - 19.7% | |
| | 1,058,343 | | | Anglo American plc | | $ | 10,374,127 | |
| | 417,213 | | | AstraZeneca plc | | | 24,942,435 | |
| | 448,128 | | | British American Tobacco plc | | | 29,051,694 | |
| | 1,111,290 | | | Compass Group plc | | | 21,142,713 | |
| | 110,297 | | | Derwent London plc REIT | | | 3,847,995 | |
| | 853,727 | | | Diageo plc | | | 23,849,420 | |
| | 255,206 | | | Hikma Pharmaceuticals plc | | | 8,404,182 | |
| | 2,002,777 | | | International Consolidated Airlines Group S.A. | | | 9,933,150 | |
| | 289,880 | | | Markit, Ltd.* | | | 9,450,088 | |
| | 2,375,727 | | | Sky plc | | | 26,996,419 | |
| | 1,007,929 | | | Smith & Nephew plc | | | 17,115,797 | |
| | 621,286 | | | Standard Chartered plc | | | 4,713,678 | |
| | 880,096 | | | Unilever N.V. | | | 40,932,926 | |
| | 672,704 | | | WPP plc | | | 14,020,082 | |
| | | | | | | | |
| | | | | | | 244,774,706 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,186,000,520) | | $ | 1,201,888,640 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,186,000,520) | | $ | 1,201,888,640 | |
| | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 3.1% | | | |
| | | | Other Investment Pools & Funds - 3.1% | | | |
| | 37,787,579 | | | BlackRock Liquidity Funds TempFund Portfolio | | $ | 37,787,579 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments (cost $37,787,579) | | $ | 37,787,579 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,223,788,099)^ | | | 100.0 | % | | $ | 1,239,676,219 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | 75,867 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,239,752,086 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 83,942,260 | |
Unrealized Depreciation | | | (68,054,140 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 15,888,120 | |
| | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
PJSC | | Private Joint Stock Company |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Australia | | $ | 18,130,988 | | | $ | — | | | $ | 18,130,988 | | | $ | — | |
Belgium | | | 28,883,584 | | | | — | | | | 28,883,584 | | | | — | |
Brazil | | | 19,305,748 | | | | 19,305,748 | | | | — | | | | — | |
Canada | | | 85,528,314 | | | | 85,528,314 | | | | — | | | | — | |
China | | | 47,852,422 | | | | 24,137,328 | | | | 23,715,094 | | | | — | |
Denmark | | | 3,184,700 | | | | — | | | | 3,184,700 | | | | — | |
France | | | 168,771,406 | | | | — | | | | 168,771,406 | | | | — | |
Germany | | | 119,492,153 | | | | — | | | | 119,492,153 | | | | — | |
Greece | | | 2,999,510 | | | | — | | | | 2,999,510 | | | | — | |
Hong Kong | | | 11,717,568 | | | | — | | | | 11,717,568 | | | | — | |
India | | | 36,786,081 | | | | 6,801,539 | | | | 29,984,542 | | | | — | |
Ireland | | | 18,692,936 | | | | — | | | | 18,692,936 | | | | — | |
Italy | | | 56,151,616 | | | | — | | | | 56,151,616 | | | | — | |
Japan | | | 128,864,836 | | | | — | | | | 128,864,836 | | | | — | |
Jersey | | | 5,102,816 | | | | — | | | | 5,102,816 | | | | — | |
Netherlands | | | 29,484,800 | | | | 29,484,800 | | | | — | | | | — | |
Russia | | | 13,260,930 | | | | — | | | | 13,260,930 | | | | — | |
South Korea | | | 19,728,164 | | | | — | | | | 19,728,164 | | | | — | |
Spain | | | 11,084,626 | | | | — | | | | 11,084,626 | | | | — | |
Sweden | | | 12,142,353 | | | | — | | | | 12,142,353 | | | | — | |
Switzerland | | | 81,414,689 | | | | — | | | | 81,414,689 | | | | — | |
Taiwan | | | 38,533,694 | | | | — | | | | 38,533,694 | | | | — | |
United Kingdom | | | 244,774,706 | | | | 50,383,014 | | | | 194,391,692 | | | | — | |
Short-Term Investments | | | 37,787,579 | | | | 37,787,579 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,239,676,219 | | | $ | 253,428,322 | | | $ | 986,247,897 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.9% | |
| | | | Automobiles & Components - 1.2% | |
| | 476,630 | | | Harley-Davidson, Inc. | | $ | 21,591,339 | |
| | | | | | | | |
| | | | Banks - 4.3% | |
| | 73,327 | | | Cullen/Frost Bankers, Inc. | | | 4,673,130 | |
| | 150,802 | | | East West Bancorp, Inc. | | | 5,154,412 | |
| | 28,102 | | | First Citizens BancShares, Inc. Class A | | | 7,275,889 | |
| | 305,389 | | | First Republic Bank | | | 21,374,176 | |
| | 298,624 | | | M&T Bank Corp. | | | 35,306,315 | |
| | | | | | | | |
| | | | | | | 73,783,922 | |
| | | | | | | | |
| | | | Capital Goods - 7.5% | |
| | 669,272 | | | Allison Transmission Holdings, Inc. | | | 18,893,548 | |
| | 341,916 | | | Fastenal Co. | | | 15,177,651 | |
| | 366,229 | | | IDEX Corp. | | | 30,067,401 | |
| | 236,840 | | | Lennox International, Inc. | | | 33,773,384 | |
| | 231,685 | | | MSC Industrial Direct Co., Inc. Class A | | | 16,347,694 | |
| | 92,719 | | | NOW, Inc.* | | | 1,681,923 | |
| | 274,193 | | | PACCAR, Inc. | | | 14,222,391 | |
| | | | | | | | |
| | | | | | | 130,163,992 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 10.7% | |
| | 141,684 | | | Cintas Corp. | | | 13,903,451 | |
| | 244,321 | | | Clean Harbors, Inc.* | | | 12,731,567 | |
| | 69,534 | | | Dun & Bradstreet Corp. | | | 8,472,023 | |
| | 276,262 | | | Equifax, Inc. | | | 35,472,041 | |
| | 173,901 | | | ManpowerGroup, Inc. | | | 11,188,790 | |
| | 616,003 | | | Robert Half International, Inc. | | | 23,506,674 | |
| | 802,963 | | | TransUnion* | | | 26,851,083 | |
| | 415,121 | | | TriNet Group, Inc.* | | | 8,630,366 | |
| | 82,164 | | | UniFirst Corp. | | | 9,508,018 | |
| | 472,846 | | | Waste Connections, Inc.* | | | 34,068,554 | |
| | | | | | | | |
| | | | | | | 184,332,567 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.8% | |
| | 231,654 | | | Harman International Industries, Inc. | | | 16,637,390 | |
| | 18,205 | | | NVR, Inc.* | | | 32,411,090 | |
| | | | | | | | |
| | | | | | | 49,048,480 | |
| | | | | | | | |
| | | | Consumer Services - 1.4% | |
| | 305,978 | | | Choice Hotels International, Inc. | | | 14,570,672 | |
| | 101,796 | | | Wynn Resorts Ltd. | | | 9,226,790 | |
| | | | | | | | |
| | | | | | | 23,797,462 | |
| | | | | | | | |
| | | | Diversified Financials - 5.2% | |
| | 143,371 | | | Factset Research Systems, Inc. | | | 23,142,947 | |
| | 205,896 | | | Invesco Ltd. | | | 5,258,584 | |
| | 124,874 | | | Moody’s Corp. | | | 11,701,942 | |
| | 245,215 | | | MSCI, Inc. | | | 18,910,981 | |
| | 249,277 | | | Northern Trust Corp. | | | 16,517,094 | |
| | 316,281 | | | SEI Investments Co. | | | 15,216,279 | |
| | | | | | | | |
| | | | | | | 90,747,827 | |
| | | | | | | | |
| | | | Energy - 7.5% | |
| | 113,825 | | | Cimarex Energy Co. | | | 13,581,599 | |
| | 1,829,330 | | | Cobalt International Energy, Inc.* | | | 2,451,302 | |
| | 167,452 | | | Diamondback Energy, Inc.* | | | 15,273,297 | |
| | 394,127 | | | Energen Corp. | | | 19,000,863 | |
| | 380,866 | | | Newfield Exploration Co.* | | | 16,826,660 | |
| | 709,625 | | | Patterson-UTI Energy, Inc. | | | 15,129,205 | |
| | 82,725 | | | Pioneer Natural Resources Co. | | | 12,508,847 | |
| | 1,077,098 | | | QEP Resources, Inc. | | | 18,989,238 | |
| | 205,758 | | | World Fuel Services Corp. | | | 9,771,447 | |
| | 728,559 | | | WPX Energy, Inc.* | | | 6,782,884 | |
| | | | | | | | |
| | | | | | | 130,315,342 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.9% - (continued) | |
| | | | Food & Staples Retailing - 0.7% | |
| | 126,035 | | | PriceSmart, Inc. | | $ | 11,793,095 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 6.3% | |
| | 464,170 | | | DENTSPLY SIRONA, Inc. | | | 28,797,107 | |
| | 455,704 | | | Patterson Cos., Inc. | | | 21,823,664 | |
| | 179,515 | | | STERIS plc | | | 12,341,656 | |
| | 69,925 | | | Teleflex, Inc. | | | 12,398,402 | |
| | 145,147 | | | Universal Health Services, Inc. Class B | | | 19,464,213 | |
| | 169,954 | | | Varian Medical Systems, Inc.* | | | 13,975,317 | |
| | | | | | | | |
| | | | | | | 108,800,359 | |
| | | | | | | | |
| | | | Insurance - 6.6% | |
| | 34,152 | | | Alleghany Corp.* | | | 18,769,256 | |
| | 41,601 | | | Fairfax Financial Holdings Ltd. | | | 22,405,839 | |
| | 40,657 | | | Markel Corp.* | | | 38,737,177 | |
| | 15,913 | | | White Mountains Insurance Group Ltd. | | | 13,398,746 | |
| | 64,446 | | | Willis Towers Watson plc | | | 8,011,282 | |
| | 217,691 | | | WR Berkley Corp. | | | 13,044,045 | |
| | | | | | | | |
| | | | | | | 114,366,345 | |
| | | | | | | | |
| | | | Materials - 3.2% | |
| | 272,786 | | | Ball Corp. | | | 19,719,700 | |
| | 200,332 | | | Packaging Corp. of America | | | 13,408,221 | |
| | 39,199 | | | Sherwin-Williams Co. | | | 11,511,570 | |
| | 207,439 | | | Silgan Holdings, Inc. | | | 10,674,811 | |
| | | | | | | | |
| | | | | | | 55,314,302 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.6% | |
| | 193,410 | | | Agios Pharmaceuticals, Inc.* | | | 8,102,912 | |
| | 485,052 | | | Alkermes plc* | | | 20,963,947 | |
| | 119,567 | | | Alnylam Pharmaceuticals, Inc.* | | | 6,634,773 | |
| | 917,617 | | | Ironwood Pharmaceuticals, Inc.* | | | 11,997,842 | |
| | 94,195 | | | Jazz Pharmaceuticals plc* | | | 13,310,696 | |
| | 81,989 | | | Mettler-Toledo International, Inc.* | | | 29,919,426 | |
| | 166,635 | | | Waters Corp.* | | | 23,437,213 | |
| | | | | | | | |
| | | | | | | 114,366,809 | |
| | | | | | | | |
| | | | Retailing - 5.4% | |
| | 239,005 | | | Advance Auto Parts, Inc. | | | 38,630,378 | |
| | 490,835 | | | CarMax, Inc.* | | | 24,065,640 | |
| | 152,012 | | | Tiffany & Co. | | | 9,218,008 | |
| | 324,410 | | | TripAdvisor, Inc.* | | | 20,859,563 | |
| | | | | | | | |
| | | | | | | 92,773,589 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 1.3% | |
| | 264,510 | | | First Solar, Inc.* | | | 12,823,445 | |
| | 574,624 | | | SunPower Corp.* | | | 8,900,926 | |
| | | | | | | | |
| | | | | | | 21,724,371 | |
| | | | | | | | |
| | | | Software & Services - 15.2% | |
| | 489,453 | | | Akamai Technologies, Inc.* | | | 27,375,106 | |
| | 532,403 | | | Cadence Design Systems, Inc.* | | | 12,937,393 | |
| | 1,566,268 | | | Genpact Ltd.* | | | 42,038,633 | |
| | 427,773 | | | Global Payments, Inc. | | | 30,534,437 | |
| | 364,397 | | | Guidewire Software, Inc.* | | | 22,505,159 | |
| | 191,191 | | | ServiceNow, Inc.* | | | 12,695,082 | |
| | 164,911 | | | Total System Services, Inc. | | | 8,758,423 | |
| | 639,597 | | | Vantiv, Inc. Class A* | | | 36,201,190 | |
| | 295,799 | | | VeriSign, Inc.* | | | 25,574,781 | |
| | 242,101 | | | WEX, Inc.* | | | 21,467,096 | |
| | 239,587 | | | Zillow Group, Inc. Class A* | | | 8,780,864 | |
| | 385,839 | | | Zillow Group, Inc. Class C* | | | 13,998,239 | |
| | | | | | | | |
| | | | | | | 262,866,403 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.9% - (continued) | |
| | | | Technology Hardware & Equipment - 5.3% | |
| | 388,505 | | | Amphenol Corp. Class A | | $ | 22,272,991 | |
| | 481,712 | | | CDW Corp. of Delaware | | | 19,307,017 | |
| | 906,967 | | | National Instruments Corp. | | | 24,850,896 | |
| | 1,029,778 | | | Trimble Navigation Ltd.* | | | 25,085,392 | |
| | | | | | | | |
| | | | | | | 91,516,296 | |
| | | | | | | | |
| | | | Transportation - 6.2% | |
| | 238,132 | | | Alaska Air Group, Inc. | | | 13,880,714 | |
| | 37,808 | | | AMERCO | | | 14,160,986 | |
| | 167,671 | | | CH Robinson Worldwide, Inc. | | | 12,449,572 | |
| | 347,251 | | | Genesee & Wyoming, Inc. Class A* | | | 20,470,447 | |
| | 282,683 | | | J.B. Hunt Transport Services, Inc. | | | 22,877,535 | |
| | 826,922 | | | JetBlue Airways Corp.* | | | 13,693,828 | |
| | 228,209 | | | Spirit Airlines, Inc.* | | | 10,239,738 | |
| | | | | | | | |
| | | | | | | 107,772,820 | |
| | | | | | | | |
| | | | Utilities - 2.5% | |
| | 105,458 | | | Eversource Energy | | | 6,316,934 | |
| | 623,597 | | | UGI Corp. | | | 28,217,764 | |
| | 138,969 | | | WEC Energy Group, Inc. | | | 9,074,676 | |
| | | | | | | | |
| | | | | | | 43,609,374 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,463,978,356) | | $ | 1,728,684,694 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,463,978,356) | | $ | 1,728,684,694 | |
| | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 0.1% | | | |
| | | | Other Investment Pools & Funds - 0.1% | | | |
| | 1,471,109 | | | Fidelity Money Market Class 1 | | $ | 1,471,109 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $1,471,109) | | $ | 1,471,109 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments (cost $1,465,449,465)^ | | | 100.0 | % | | $ | 1,730,155,803 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | (673,214 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0% | | | $ | 1,729,482,589 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 359,421,852 | |
Unrealized Depreciation | | | (94,715,514 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 264,706,338 | |
| | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
MSCI | | Morgan Stanley Capital International |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 21,591,339 | | | $ | 21,591,339 | | | $ | — | | | $ | — | |
Banks | | | 73,783,922 | | | | 73,783,922 | | | | — | | | | — | |
Capital Goods | | | 130,163,992 | | | | 130,163,992 | | | | — | | | | — | |
Commercial & Professional Services | | | 184,332,567 | | | | 184,332,567 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 49,048,480 | | | | 49,048,480 | | | | — | | | | — | |
Consumer Services | | | 23,797,462 | | | | 23,797,462 | | | | — | | | | — | |
Diversified Financials | | | 90,747,827 | | | | 90,747,827 | | | | — | | | | — | |
Energy | | | 130,315,342 | | | | 130,315,342 | | | | — | | | | — | |
Food & Staples Retailing | | | 11,793,095 | | | | 11,793,095 | | | | — | | | | — | |
Health Care Equipment & Services | | | 108,800,359 | | | | 108,800,359 | | | | — | | | | — | |
Insurance | | | 114,366,345 | | | | 114,366,345 | | | | — | | | | — | |
Materials | | | 55,314,302 | | | | 55,314,302 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 114,366,809 | | | | 114,366,809 | | | | — | | | | — | |
Retailing | | | 92,773,589 | | | | 92,773,589 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 21,724,371 | | | | 21,724,371 | | | | — | | | | — | |
Software & Services | | | 262,866,403 | | | | 262,866,403 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 91,516,296 | | | | 91,516,296 | | | | — | | | | — | |
Transportation | | | 107,772,820 | | | | 107,772,820 | | | | — | | | | — | |
Utilities | | | 43,609,374 | | | | 43,609,374 | | | | — | | | | — | |
Short-Term Investments | | | 1,471,109 | | | | 1,471,109 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,730,155,803 | | | $ | 1,730,155,803 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.0% | |
| | | | Automobiles & Components - 0.9% | |
| | 121,393 | | | Goodyear Tire & Rubber Co. | | $ | 3,114,944 | |
| | | | | | | | |
| | | | Banks - 9.1% | |
| | 166,827 | | | BankUnited, Inc. | | | 5,124,925 | |
| | 20,937 | | | CIT Group, Inc. | | | 668,100 | |
| | 187,590 | | | Comerica, Inc. | | | 7,715,577 | |
| | 167,280 | | | EverBank Financial Corp. | | | 2,485,781 | |
| | 52,100 | | | IBERIABANK Corp. | | | 3,111,933 | |
| | 158,614 | | | Provident Financial Services, Inc. | | | 3,115,179 | |
| | 45,096 | | | South State Corp. | | | 3,068,783 | |
| | 297,426 | | | Zions Bancorporation | | | 7,474,315 | |
| | | | | | | | |
| | | | | | | 32,764,593 | |
| | | | | | | | |
| | | | Capital Goods - 7.4% | |
| | 127,475 | | | Generac Holdings, Inc.* | | | 4,456,526 | |
| | 59,721 | | | Hubbell, Inc. Class B | | | 6,298,774 | |
| | 94,915 | | | Moog, Inc. Class A* | | | 5,117,817 | |
| | 579,755 | | | Sanwa Holdings Corp. | | | 5,269,989 | |
| | 79,120 | | | Sensata Technologies Holding N.V.* | | | 2,760,497 | |
| | 54,931 | | | WESCO International, Inc.* | | | 2,828,397 | |
| | | | | | | | |
| | | | | | | 26,732,000 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.1% | |
| | 107,582 | | | D.R. Horton, Inc. | | | 3,386,681 | |
| | 35,301,565 | | | Global Brands Group Holding Ltd.* | | | 3,105,779 | |
| | 137,852 | | | Lennar Corp. Class A | | | 6,354,977 | |
| | 216,003 | | | Performance Sports Group Ltd.* | | | 648,009 | |
| | 164,541 | | | PulteGroup, Inc. | | | 3,206,904 | |
| | 283,430 | | | Samsonite International S.A. | | | 784,778 | |
| | 35,282 | | | Toll Brothers, Inc.* | | | 949,439 | |
| | | | | | | | |
| | | | | | | 18,436,567 | |
| | | | | | | | |
| | | | Consumer Services - 2.2% | |
| | 137,671 | | | Bloomin’ Brands, Inc. | | | 2,460,181 | |
| | 133,936 | | | Norwegian Cruise Line Holdings Ltd.* | | | 5,336,010 | |
| | | | | | | | |
| | | | | | | 7,796,191 | |
| | | | | | | | |
| | | | Diversified Financials - 2.8% | |
| | 141,433 | | | Markit, Ltd.* | | | 4,610,716 | |
| | 37,290 | | | MSCI, Inc. | | | 2,875,805 | |
| | 51,875 | | | Raymond James Financial, Inc. | | | 2,557,437 | |
| | 451,900 | | | Solar Cayman Ltd.(1)(2)(3) | | | 112,975 | |
| | | | | | | | |
| | | | | | | 10,156,933 | |
| | | | | | | | |
| | | | Energy - 8.6% | |
| | 418,600 | | | Cobalt International Energy, Inc.* | | | 560,924 | |
| | 115,995 | | | Diamondback Energy, Inc.* | | | 10,579,904 | |
| | 83,816 | | | Energen Corp. | | | 4,040,769 | |
| | 29,002 | | | HollyFrontier Corp. | | | 689,378 | |
| | 191,985 | | | Newfield Exploration Co.* | | | 8,481,897 | |
| | 337,815 | | | QEP Resources, Inc. | | | 5,955,678 | |
| | 330,305 | | | Trican Well Service Ltd.* | | | 631,490 | |
| | | | | | | | |
| | | | | | | 30,940,040 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.2% | |
| | 53,629 | | | Ingredion, Inc. | | | 6,940,129 | |
| | 56,600 | | | Post Holdings, Inc.* | | | 4,680,254 | |
| | | | | | | | |
| | | | | | | 11,620,383 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 2.6% | |
| | 30,923 | | | Acadia Healthcare Co., Inc.* | | | 1,713,134 | |
| | 117,958 | | | Brookdale Senior Living, Inc.* | | | 1,821,272 | |
| | 224,785 | | | Envision Healthcare Holdings, Inc.* | | | 5,702,795 | |
| | | | | | | | |
| | | | | | | 9,237,201 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.0% - (continued) | |
| | | | Insurance - 8.3% | |
| | 56,473 | | | Argo Group International Holdings Ltd. | | $ | 2,930,949 | |
| | 149,617 | | | CNO Financial Group, Inc. | | | 2,612,313 | |
| | 39,221 | | | Hanover Insurance Group, Inc. | | | 3,318,881 | |
| | 91,004 | | | Reinsurance Group of America, Inc. | | | 8,826,478 | |
| | 171,536 | | | Unum Group | | | 5,453,129 | |
| | 202,695 | | | XL Group plc | | | 6,751,770 | |
| | | | | | | | |
| | | | | | | 29,893,520 | |
| | | | | | | | |
| | | | Materials - 8.5% | |
| | 89,465 | | | Bemis Co., Inc. | | | 4,606,553 | |
| | 106,217 | | | Cabot Corp. | | | 4,849,868 | |
| | 76,838 | | | Celanese Corp. Series A | | | 5,029,047 | |
| | 83,900 | | | CF Industries Holdings, Inc. | | | 2,021,990 | |
| | 34,648 | | | Crown Holdings, Inc.* | | | 1,755,614 | |
| | 30,347 | | | KapStone Paper & Packaging Corp. | | | 394,815 | |
| | 381,733 | | | Louisiana-Pacific Corp.* | | | 6,623,068 | |
| | 189,403 | | | Methanex Corp. | | | 5,511,627 | |
| | | | | | | | |
| | | | | | | 30,792,582 | |
| | | | | | | | |
| | | | Media - 1.8% | |
| | 112,756 | | | Interpublic Group of Cos., Inc. | | | 2,604,663 | |
| | 26,827 | | | John Wiley & Sons, Inc. Class A | | | 1,399,833 | |
| | 94,070 | | | Quebecor, Inc. Class B | | | 2,695,516 | |
| | | | | | | | |
| | | | | | | 6,700,012 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 0.7% | |
| | 57,572 | | | Almirall S.A. | | | 865,604 | |
| | 116,787 | | | Endo International plc* | | | 1,820,710 | |
| | | | | | | | |
| | | | | | | 2,686,314 | |
| | | | | | | | |
| | | | Real Estate - 10.4% | |
| | 80,346 | | | American Assets Trust, Inc. REIT | | | 3,409,884 | |
| | 70,670 | | | Blackstone Mortgage Trust, Inc. Class A REIT | | | 1,955,439 | |
| | 72,949 | | | Equity LifeStyle Properties, Inc. REIT | | | 5,839,568 | |
| | 46,393 | | | Extra Space Storage, Inc. REIT | | | 4,293,208 | |
| | 147,024 | | | Forest City Realty Trust, Inc. Class A REIT | | | 3,280,106 | |
| | 141,271 | | | LaSalle Hotel Properties REIT | | | 3,331,170 | |
| | 56,003 | | | PS Business Parks, Inc. REIT | | | 5,940,798 | |
| | 34,788 | | | Sovran Self Storage, Inc. REIT | | | 3,649,957 | |
| | 195,063 | | | STORE Capital Corp. REIT | | | 5,744,605 | |
| | | | | | | | |
| | | | | | | 37,444,735 | |
| | | | | | | | |
| | | | Retailing - 1.1% | |
| | 181,093 | | | DSW, Inc. Class A | | | 3,835,550 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.6% | |
| | 218,266 | | | Microsemi Corp.* | | | 7,132,933 | |
| | 103,213 | | | Qorvo, Inc.* | | | 5,703,550 | |
| | 142,430 | | | Silicon Motion Technology Corp. ADR | | | 6,808,154 | |
| | 14,318 | | | Synaptics, Inc.* | | | 769,593 | |
| | | | | | | | |
| | | | | | | 20,414,230 | |
| | | | | | | | |
| | | | Software & Services - 3.7% | |
| | 153,722 | | | Booz Allen Hamilton Holding Corp. | | | 4,556,320 | |
| | 134,780 | | | SS&C Technologies Holdings, Inc. | | | 3,784,623 | |
| | 152,279 | | | Verint Systems, Inc.* | | | 5,045,003 | |
| | | | | | | | |
| | | | | | | 13,385,946 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.6% | |
| | 13,688 | | | ARRIS International plc* | | | 286,901 | |
| | 134,793 | | | Arrow Electronics, Inc.* | | | 8,343,687 | |
| | 53,203 | | | Harris Corp. | | | 4,439,258 | |
| | | | | | | | |
| | | | | | | 13,069,846 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.0% - (continued) | |
| | | | Telecommunication Services - 0.9% | |
| | 53,888 | | | Millicom International Cellular S.A. | | $ | 3,305,454 | |
| | | | | | | | |
| | | | Transportation - 4.6% | |
| | 80,539 | | | Genesee & Wyoming, Inc. Class A* | | | 4,747,774 | |
| | 464,810 | | | Hertz Global Holdings, Inc.* | | | 5,145,447 | |
| | 135,195 | | | Knight Transportation, Inc. | | | 3,593,483 | |
| | 49,694 | | | Ryder System, Inc. | | | 3,038,291 | |
| | | | | | | | |
| | | | | | | 16,524,995 | |
| | | | | | | | |
| | | | Utilities - 6.9% | |
| | 163,210 | | | Alliant Energy Corp. | | | 6,479,437 | |
| | 136,005 | | | Great Plains Energy, Inc. | | | 4,134,552 | |
| | 44,880 | | | Portland General Electric Co. | | | 1,980,106 | |
| | 205,006 | | | UGI Corp. | | | 9,276,521 | |
| | 52,132 | | | Westar Energy, Inc. | | | 2,924,084 | |
| | | | | | | | |
| | | | | | | 24,794,700 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $320,957,263) | | $ | 353,646,736 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $320,957,263) | | $ | 353,646,736 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.6% | |
| | | | Other Investment Pools & Funds - 1.6% | | | |
| | 5,930,096 | | | Federated Prime Obligations Fund | | $ | 5,930,096 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $5,930,096) | | $ | 5,930,096 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $326,887,359)^ | | | 99.6 | % | | $ | 359,576,832 | |
| | | | Other Assets and Liabilities | | | 0.4 | % | | | 1,383,789 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 360,960,621 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 60,697,762 | |
Unrealized Depreciation | | | (28,008,289 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 32,689,473 | |
| | | | |
| (1) | This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of this security was $112,975, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At June 30, 2016, the aggregate value of this security was $112,975, which represents 0.0% of total net assets. |
| (3) | The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 03/2007 | | | | 451,900 | | | Solar Cayman Ltd. | | $ | 132,446 | |
| | At June 30, 2016, the aggregate value of these securities was $112,975, which represents 0.0% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
MSCI | | Morgan Stanley Capital International |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 3,114,944 | | | $ | 3,114,944 | | | $ | — | | | $ | — | |
Banks | | | 32,764,593 | | | | 32,764,593 | | | | — | | | | — | |
Capital Goods | | | 26,732,000 | | | | 21,462,011 | | | | 5,269,989 | | | | — | |
Consumer Durables & Apparel | | | 18,436,567 | | | | 14,546,010 | | | | 3,890,557 | | | | — | |
Consumer Services | | | 7,796,191 | | | | 7,796,191 | | | | — | | | | — | |
Diversified Financials | | | 10,156,933 | | | | 10,043,958 | | | | — | | | | 112,975 | |
Energy | | | 30,940,040 | | | | 30,940,040 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 11,620,383 | | | | 11,620,383 | | | | — | | | | — | |
Health Care Equipment & Services | | | 9,237,201 | | | | 9,237,201 | | | | — | | | | — | |
Insurance | | | 29,893,520 | | | | 29,893,520 | | | | — | | | | — | |
Materials | | | 30,792,582 | | | | 30,792,582 | | | | — | | | | — | |
Media | | | 6,700,012 | | | | 6,700,012 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 2,686,314 | | | | 1,820,710 | | | | 865,604 | | | | — | |
Real Estate | | | 37,444,735 | | | | 37,444,735 | | | | — | | | | — | |
Retailing | | | 3,835,550 | | | | 3,835,550 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 20,414,230 | | | | 20,414,230 | | | | — | | | | — | |
Software & Services | | | 13,385,946 | | | | 13,385,946 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 13,069,846 | | | | 13,069,846 | | | | — | | | | — | |
Telecommunication Services | | | 3,305,454 | | | | — | | | | 3,305,454 | | | | — | |
Transportation | | | 16,524,995 | | | | 16,524,995 | | | | — | | | | — | |
Utilities | | | 24,794,700 | | | | 24,794,700 | | | | — | | | | — | |
Short-Term Investments | | | 5,930,096 | | | | 5,930,096 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 359,576,832 | | | $ | 346,132,253 | | | $ | 13,331,604 | | | $ | 112,975 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 97,610 | | | $ | 97,610 | |
Purchases | | | — | | | | — | |
Sales | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 15,365 | | | | 15,365 | |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 112,975 | | | $ | 112,975 | |
| | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $15,365.
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% | |
| | | | Automobiles & Components - 1.6% | |
| | 23,030 | | | American Axle & Manufacturing Holdings, Inc.* | | $ | 333,475 | |
| | 44,787 | | | Cooper Tire & Rubber Co. | | | 1,335,548 | |
| | 9,494 | | | Cooper-Standard Holding, Inc.* | | | 749,931 | |
| | 248,174 | | | Tenneco, Inc.* | | | 11,567,390 | |
| | 57,881 | | | Visteon Corp. | | | 3,809,149 | |
| | | | | | | | |
| | | | | | | 17,795,493 | |
| | | | | | | | |
| | | | Banks - 3.4% | |
| | 379,973 | | | EverBank Financial Corp. | | | 5,646,399 | |
| | 164,680 | | | FCB Financial Holdings, Inc. Class A* | | | 5,599,120 | |
| | 314,777 | | | First Merchants Corp. | | | 7,847,391 | |
| | 146,965 | | | Great Western Bancorp, Inc. | | | 4,635,276 | |
| | 13,638 | | | HomeStreet, Inc.* | | | 271,669 | |
| | 457,550 | | | MGIC Investment Corp.* | | | 2,722,422 | |
| | 122,561 | | | Sandy Spring Bancorp, Inc. | | | 3,561,623 | |
| | 415,690 | | | Sterling Bancorp | | | 6,526,333 | |
| | 28,799 | | | Walker & Dunlop, Inc.* | | | 656,041 | |
| | | | | | | | |
| | | | | | | 37,466,274 | |
| | | | | | | | |
| | | | Capital Goods - 8.3% | |
| | 237,380 | | | AAON, Inc. | | | 6,530,324 | |
| | 21,800 | | | Aegion Corp.* | | | 425,318 | |
| | 194,328 | | | Altra Industrial Motion Corp. | | | 5,242,969 | |
| | 74,342 | | | American Woodmark Corp.* | | | 4,934,822 | |
| | 10,100 | | | Apogee Enterprises, Inc. | | | 468,135 | |
| | 94,638 | | | Armstrong World Industries, Inc.* | | | 3,705,078 | |
| | 144,778 | | | Astronics Corp.* | | | 4,815,316 | |
| | 150,589 | | | AZZ, Inc. | | | 9,032,328 | |
| | 31,322 | | | Comfort Systems USA, Inc. | | | 1,020,157 | |
| | 40,000 | | | Continental Building Products, Inc.* | | | 889,200 | |
| | 11,800 | | | Douglas Dynamics, Inc. | | | 303,614 | |
| | 12,600 | | | DXP Enterprises, Inc.* | | | 188,118 | |
| | 27,956 | | | Encore Wire Corp. | | | 1,042,200 | |
| | 8,200 | | | EnerSys | | | 487,654 | |
| | 43,919 | | | Esterline Technologies Corp.* | | | 2,724,735 | |
| | 214,725 | | | Generac Holdings, Inc.* | | | 7,506,786 | |
| | 33,661 | | | General Cable Corp. | | | 427,831 | |
| | 33,202 | | | Global Brass & Copper Holdings, Inc. | | | 906,083 | |
| | 14,900 | | | Greenbrier Cos., Inc. | | | 434,037 | |
| | 141,883 | | | Heico Corp. Class A | | | 7,612,023 | |
| | 21,145 | | | Hyster-Yale Materials Handling, Inc. | | | 1,257,916 | |
| | 66,366 | | | Lennox International, Inc. | | | 9,463,792 | |
| | 12,500 | | | Lydall, Inc.* | | | 482,000 | |
| | 77,909 | | | Manitowoc Foodservice, Inc.* | | | 1,372,757 | |
| | 151,924 | | | Meritor, Inc.* | | | 1,093,853 | |
| | 46,300 | | | MRC Global, Inc.* | | | 657,923 | |
| | 14,900 | | | SiteOne Landscape Supply, Inc.* | | | 506,451 | |
| | 73,510 | | | TASER International, Inc.* | | | 1,828,929 | |
| | 74,262 | | | Teledyne Technologies, Inc.* | | | 7,355,651 | |
| | 56,012 | | | Toro Co. | | | 4,940,258 | |
| | 46,147 | | | Trex Co., Inc.* | | | 2,072,923 | |
| | 87,843 | | | Wabash National Corp.* | | | 1,115,606 | |
| | | | | | | | |
| | | | | | | 90,844,787 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 4.6% | |
| | 18,113 | | | Brink’s Co. | | | 516,039 | |
| | 6,700 | | | CEB, Inc. | | | 413,256 | |
| | 156,829 | | | Deluxe Corp. | | | 10,408,741 | |
| | 201,664 | | | Exponent, Inc. | | | 11,779,194 | |
| | 104,589 | | | GP Strategies Corp.* | | | 2,268,535 | |
| | 63,473 | | | Herman Miller, Inc. | | | 1,897,208 | |
| | 106,120 | | | Huron Consulting Group, Inc.* | | | 6,411,770 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Commercial & Professional Services - 4.6% - (continued) | |
| | 13,903 | | | Insperity, Inc. | | $ | 1,073,729 | |
| | 192,411 | | | On Assignment, Inc.* | | | 7,109,587 | |
| | 60,523 | | | RPX Corp.* | | | 554,996 | |
| | 30,200 | | | TriNet Group, Inc.* | | | 627,858 | |
| | 3,769 | | | UniFirst Corp. | | | 436,149 | |
| | 123,642 | | | WageWorks, Inc.* | | | 7,395,028 | |
| | | | | | | | |
| | | | | | | 50,892,090 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 4.4% | |
| | 237,163 | | | G-III Apparel Group Ltd.* | | | 10,843,092 | |
| | 13,064 | | | Helen of Troy Ltd.* | | | 1,343,502 | |
| | 413,057 | | | Kate Spade & Co.* | | | 8,513,105 | |
| | 25,979 | | | Movado Group, Inc. | | | 563,225 | |
| | 67,327 | | | Smith & Wesson Holding Corp.* | | | 1,829,948 | |
| | 275,087 | | | Steven Madden Ltd.* | | | 9,402,473 | |
| | 20,081 | | | Sturm Ruger & Co., Inc. | | | 1,285,385 | |
| | 200,140 | | | TopBuild Corp.* | | | 7,245,068 | |
| | 146,543 | | | Vista Outdoor, Inc.* | | | 6,994,497 | |
| | | | | | | | |
| | | | | | | 48,020,295 | |
| | | | | | | | |
| | | | Consumer Services - 5.6% | |
| | 19,500 | | | American Public Education, Inc.* | | | 547,950 | |
| | 8,565 | | | BJ’s Restaurants, Inc.* | | | 375,404 | |
| | 528,980 | | | Bloomin’ Brands, Inc. | | | 9,452,873 | |
| | 30,811 | | | Boyd Gaming Corp.* | | | 566,922 | |
| | 102,240 | | | Brinker International, Inc. | | | 4,654,987 | |
| | 27,748 | | | Capella Education Co. | | | 1,460,655 | |
| | 11,801 | | | Chuy’s Holdings, Inc.* | | | 408,433 | |
| | 234,332 | | | Del Frisco’s Restaurant Group, Inc.* | | | 3,355,634 | |
| | 43,700 | | | DeVry Education Group, Inc. | | | 779,608 | |
| | 12,068 | | | Domino’s Pizza, Inc. | | | 1,585,494 | |
| | 152,440 | | | Dunkin’ Brands Group, Inc. | | | 6,649,433 | |
| | 27,742 | | | Grand Canyon Education, Inc.* | | | 1,107,461 | |
| | 24,918 | | | Isle of Capri Casinos, Inc.* | | | 456,498 | |
| | 482,228 | | | La Quinta Holdings, Inc.* | | | 5,497,399 | |
| | 49,400 | | | LifeLock, Inc.* | | | 781,014 | |
| | 124,458 | | | Marriott Vacations Worldwide Corp. | | | 8,524,128 | |
| | 109,292 | | | Papa John’s International, Inc. | | | 7,431,856 | |
| | 21,809 | | | Sonic Corp. | | | 589,933 | |
| | 19,689 | | | Strayer Education, Inc.* | | | 967,321 | |
| | 3,104 | | | Vail Resorts, Inc. | | | 429,066 | |
| | 25,910 | | | Weight Watchers International, Inc.* | | | 301,333 | |
| | 207,200 | | | Wingstop, Inc.* | | | 5,646,200 | |
| | | | | | | | |
| | | | | | | 61,569,602 | |
| | | | | | | | |
| | | | Diversified Financials - 1.1% | |
| | 169,053 | | | Evercore Partners, Inc. Class A | | | 7,470,452 | |
| | 18,900 | | | Green Dot Corp. Class A* | | | 434,511 | |
| | 91,381 | | | KCG Holdings, Inc. Class A* | | | 1,215,367 | |
| | 15,637 | | | MarketAxess Holdings, Inc. | | | 2,273,620 | |
| | 16,200 | | | PRA Group, Inc.* | | | 391,068 | |
| | | | | | | | |
| | | | | | | 11,785,018 | |
| | | | | | | | |
| | | | Energy - 1.3% | |
| | 53,472 | | | Alon USA Energy, Inc. | | | 346,499 | |
| | 51,600 | | | Bill Barrett Corp.* | | | 329,724 | |
| | 10,200 | | | Carrizo Oil & Gas, Inc.* | | | 365,670 | |
| | 63,999 | | | CVR Energy, Inc. | | | 991,984 | |
| | 11,600 | | | Parsley Energy, Inc. Class A* | | | 313,896 | |
| | 164,370 | | | PBF Energy, Inc. Class A | | | 3,908,719 | |
| | 48,858 | | | Pioneer Energy Services Corp.* | | | 224,747 | |
| | 20,315 | | | REX American Resources Corp.* | | | 1,215,446 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Energy - 1.3% - (continued) | |
| | 160,069 | | | RSP Permian, Inc.* | | $ | 5,584,807 | |
| | 57,700 | | | Sanchez Energy Corp.* | | | 407,362 | |
| | 51,651 | | | Western Refining, Inc. | | | 1,065,560 | |
| | | | | | | | |
| | | | | | | 14,754,414 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.2% | |
| | 81,074 | | | Casey’s General Stores, Inc. | | | 10,662,042 | |
| | 13,508 | | | Ingles Markets, Inc. Class A | | | 503,848 | |
| | 293,396 | | | Natural Grocers by Vitamin Cottage, Inc.* | | | 3,828,818 | |
| | 94,739 | | | PriceSmart, Inc. | | | 8,864,728 | |
| | | | | | | | |
| | | | | | | 23,859,436 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.0% | |
| | 22,400 | | | Cal-Maine Foods, Inc. | | | 992,768 | |
| | 66,541 | | | Dean Foods Co. | | | 1,203,727 | |
| | 69,591 | | | Pilgrim’s Pride Corp. | | | 1,773,178 | |
| | 104,122 | | | Post Holdings, Inc.* | | | 8,609,848 | |
| | 13,700 | | | Sanderson Farms, Inc. | | | 1,186,968 | |
| | 77,526 | | | TreeHouse Foods, Inc.* | | | 7,958,044 | |
| | | | | | | | |
| | | | | | | 21,724,533 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.4% | |
| | 5,297 | | | ABIOMED, Inc.* | | | 578,909 | |
| | 101,000 | | | Acadia Healthcare Co., Inc.* | | | 5,595,400 | |
| | 6,000 | | | Amedisys, Inc.* | | | 302,880 | |
| | 5,405 | | | Amsurg Corp.* | | | 419,104 | |
| | 154,410 | | | Anika Therapeutics, Inc.* | | | 8,284,097 | |
| | 17,804 | | | Atrion Corp. | | | 7,617,619 | |
| | 14,047 | | | Chemed Corp. | | | 1,914,747 | |
| | 148,850 | | | Cynosure, Inc. Class A* | | | 7,240,808 | |
| | 61,937 | | | DexCom, Inc.* | | | 4,913,462 | |
| | 397,554 | | | Globus Medical, Inc. Class A* | | | 9,473,712 | |
| | 13,289 | | | HealthEquity, Inc.* | | | 403,786 | |
| | 79,341 | | | ICU Medical, Inc.* | | | 8,945,698 | |
| | 77,931 | | | LivaNova plc* | | | 3,914,474 | |
| | 27,021 | | | Magellan Health, Inc.* | | | 1,777,171 | |
| | 47,281 | | | Masimo Corp.* | | | 2,482,962 | |
| | 14,098 | | | Medidata Solutions, Inc.* | | | 660,773 | |
| | 15,700 | | | Meridian Bioscience, Inc. | | | 306,150 | |
| | 133,605 | | | Natus Medical, Inc.* | | | 5,050,269 | |
| | 219,196 | | | Omnicell, Inc.* | | | 7,503,079 | |
| | 102,329 | | | Quality Systems, Inc. | | | 1,218,738 | |
| | 9,200 | | | Surgical Care Affiliates, Inc.* | | | 438,564 | |
| | 138,951 | | | Team Health Holdings, Inc.* | | | 5,651,137 | |
| | 36,526 | | | Triple-S Management Corp. Class B* | | | 892,330 | |
| | 97,745 | | | U.S. Physical Therapy, Inc. | | | 5,885,226 | |
| | 226,275 | | | Vascular Solutions, Inc.* | | | 9,426,617 | |
| | 129,356 | | | WellCare Health Plans, Inc.* | | | 13,877,312 | |
| | | | | | | | |
| | | | | | | 114,775,024 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.1% | |
| | 15,542 | | | Medifast, Inc. | | | 517,082 | |
| | 6,800 | | | Usana Health Sciences, Inc.* | | | 757,724 | |
| | | | | | | | |
| | | | | | | 1,274,806 | |
| | | | | | | | |
| | | | Insurance - 1.9% | |
| | 71,157 | | | Ambac Financial Group, Inc.* | | | 1,171,244 | |
| | 152,225 | | | AMERISAFE, Inc. | | | 9,319,215 | |
| | 9,300 | | | Federated National Holding Co. | | | 177,072 | |
| | 55,411 | | | Greenlight Capital Re Ltd. Class A* | | | 1,117,086 | |
| | 177,491 | | | James River Group Holdings Ltd. | | | 6,027,594 | |
| | 94,996 | | | Maiden Holdings Ltd. | | | 1,162,751 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Insurance - 1.9% - (continued) | |
| | 89,100 | | | MBIA, Inc.* | | $ | 608,553 | |
| | 44,255 | | | Universal Insurance Holdings, Inc. | | | 822,258 | |
| | | | | | | | |
| | | | | | | 20,405,773 | |
| | | | | | | | |
| | | | Materials - 4.6% | |
| | 7,498 | | | AEP Industries, Inc. | | | 603,289 | |
| | 224,867 | | | Boise Cascade Co.* | | | 5,160,698 | |
| | 41,405 | | | Chemtura Corp.* | | | 1,092,264 | |
| | 27,590 | | | Clearwater Paper Corp.* | | | 1,803,558 | |
| | 80,100 | | | Cliffs Natural Resources, Inc.* | | | 454,167 | |
| | 632,156 | | | Graphic Packaging Holding Co. | | | 7,927,236 | |
| | 471,415 | | | Headwaters, Inc.* | | | 8,457,185 | |
| | 11,602 | | | Innospec, Inc. | | | 533,576 | |
| | 27,638 | | | Koppers Holdings, Inc.* | | | 849,316 | |
| | 562,414 | | | OMNOVA Solutions, Inc.* | | | 4,077,501 | |
| | 247,292 | | | PolyOne Corp. | | | 8,714,570 | |
| | 10,159 | | | Schweitzer-Mauduit International, Inc. | | | 358,410 | |
| | 102,098 | | | Silgan Holdings, Inc. | | | 5,253,963 | |
| | 23,260 | | | Stepan Co. | | | 1,384,668 | |
| | 25,832 | | | Trinseo S.A.* | | | 1,108,968 | |
| | 25,490 | | | U.S. Concrete, Inc.* | | | 1,552,596 | |
| | 25,133 | | | Worthington Industries, Inc. | | | 1,063,126 | |
| | | | | | | | |
| | | | | | | 50,395,091 | |
| | | | | | | | |
| | | | Media - 0.1% | |
| | 27,500 | | | MDC Partners, Inc. Class A | | | 502,975 | |
| | 13,484 | | | Sinclair Broadcast Group, Inc. Class A | | | 402,632 | |
| | | | | | | | |
| | | | | | | 905,607 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.1% | |
| | 142,925 | | | Acorda Therapeutics, Inc.* | | | 3,645,302 | |
| | 25,100 | | | Aduro Biotech, Inc.* | | | 283,881 | |
| | 256,418 | | | Aerie Pharmaceuticals, Inc.* | | | 4,512,957 | |
| | 48,779 | | | Agios Pharmaceuticals, Inc.* | | | 2,043,596 | |
| | 203,760 | | | Alder Biopharmaceuticals, Inc.* | | | 5,087,887 | |
| | 309,390 | | | Amicus Therapeutics, Inc.* | | | 1,689,269 | |
| | 342,340 | | | Aratana Therapeutics, Inc.* | | | 2,163,589 | |
| | 30,132 | | | BioSpecifics Technologies Corp.* | | | 1,203,472 | |
| | 77,980 | | | Bluebird Bio, Inc.* | | | 3,375,754 | |
| | 31,543 | | | Cambrex Corp.* | | | 1,631,719 | |
| | 241,074 | | | Cepheid* | | | 7,413,026 | |
| | 185,060 | | | Coherus Biosciences, Inc.* | | | 3,125,663 | |
| | 97,720 | | | Cytokinetics, Inc.* | | | 927,363 | |
| | 64,094 | | | Emergent Biosolutions, Inc.* | | | 1,802,323 | |
| | 50,129 | | | Enanta Pharmaceuticals, Inc.* | | | 1,105,345 | |
| | 310,000 | | | Exelixis, Inc.* | | | 2,421,100 | |
| | 61,792 | | | FibroGen, Inc.* | | | 1,014,007 | |
| | 192,374 | | | Five Prime Therapeutics, Inc.* | | | 7,954,665 | |
| | 181,520 | | | Flexion Therapeutics, Inc.* | | | 2,716,447 | |
| | 125,885 | | | GlycoMimetics, Inc.* | | | 915,184 | |
| | 161,580 | | | ImmunoGen, Inc.* | | | 497,666 | |
| | 23,465 | | | INC Research Holdings, Inc. Class A* | | | 894,721 | |
| | 107,646 | | | Innoviva, Inc. | | | 1,133,512 | |
| | 61,369 | | | Insys Therapeutics, Inc.* | | | 794,115 | |
| | 201,231 | | | Intersect ENT, Inc.* | | | 2,601,917 | |
| | 90,829 | | | Ironwood Pharmaceuticals, Inc.* | | | 1,187,589 | |
| | 86,615 | | | Lexicon Pharmaceuticals, Inc.* | | | 1,242,925 | |
| | 50,544 | | | Luminex Corp.* | | | 1,022,505 | |
| | 159,247 | | | Medicines Co.* | | | 5,355,477 | |
| | 45,762 | | | MiMedx Group, Inc.* | | | 365,181 | |
| | 64,123 | | | Myriad Genetics, Inc.* | | | 1,962,164 | |
| | 142,530 | | | Neurocrine Biosciences, Inc.* | | | 6,477,989 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences -
12.1% - (continued) | |
| | 723,113 | | | Novavax, Inc.* | | $ | 5,257,032 | |
| | 104,377 | | | Ophthotech Corp.* | | | 5,326,358 | |
| | 228,888 | | | Otonomy, Inc.* | | | 3,634,741 | |
| | 174,005 | | | PAREXEL International Corp.* | | | 10,941,434 | |
| | 500,880 | | | PDL Biopharma, Inc. | | | 1,572,763 | |
| | 18,300 | | | Pfenex, Inc.* | | | 153,171 | |
| | 155,227 | | | Portola Pharmaceuticals, Inc.* | | | 3,663,357 | |
| | 42,643 | | | PRA Health Sciences, Inc.* | | | 1,780,772 | |
| | 41,676 | | | Prestige Brands Holdings, Inc.* | | | 2,308,850 | |
| | 144,541 | | | PTC Therapeutics, Inc.* | | | 1,014,678 | |
| | 221,676 | | | Relypsa, Inc.* | | | 4,101,006 | |
| | 45,900 | | | Sangamo BioSciences, Inc.* | | | 265,761 | |
| | 12,400 | | | Seres Therapeutics, Inc.* | | | 360,220 | |
| | 155,104 | | | Spectrum Pharmaceuticals, Inc.* | | | 1,019,033 | |
| | 75,519 | | | Supernus Pharmaceuticals, Inc.* | | | 1,538,322 | |
| | 87,274 | | | TESARO, Inc.* | | | 7,335,380 | |
| | 78,337 | | | Ultragenyx Pharmaceutical, Inc.* | | | 3,831,463 | |
| | 152,214 | | | ZIOPHARM Oncology, Inc.* | | | 835,655 | |
| | | | | | | | |
| | | | | | | 133,508,306 | |
| | | | | | | | |
| | | | Real Estate - 2.5% | |
| | 36,782 | | | Altisource Portfolio Solutions S.A. REIT* | | | 1,024,011 | |
| | 58,065 | | | CareTrust, Inc. REIT | | | 800,136 | |
| | 139,989 | | | Coresite Realty Corp. REIT | | | 12,415,624 | |
| | 12,700 | | | CubeSmart REIT | | | 392,176 | |
| | 219,737 | | | HFF, Inc. Class A REIT | | | 6,346,005 | |
| | 19,400 | | | Pennsylvania REIT | | | 416,130 | |
| | 56,090 | | | RLJ Lodging Trust REIT | | | 1,203,130 | |
| | 384,082 | | | Sunstone Hotel Investors, Inc. REIT | | | 4,635,870 | |
| | 22,400 | | | Urban Edge Properties REIT | | | 668,864 | |
| | | | | | | | |
| | | | | | | 27,901,946 | |
| | | | | | | | |
| | | | Retailing - 5.0% | |
| | 97,176 | | | American Eagle Outfitters, Inc. | | | 1,548,014 | |
| | 13,187 | | | Big Lots, Inc. | | | 660,801 | |
| | 25,689 | | | Buckle, Inc. | | | 667,657 | |
| | 161,525 | | | Burlington Stores, Inc.* | | | 10,775,333 | |
| | 8,142 | | | Cato Corp. Class A | | | 307,116 | |
| | 29,184 | | | Chico’s FAS, Inc. | | | 312,561 | |
| | 21,300 | | | Children’s Place, Inc. | | | 1,707,834 | |
| | 162,962 | | | Core-Mark Holding Co., Inc. | | | 7,636,399 | |
| | 186,612 | | | DSW, Inc. Class A | | | 3,952,442 | |
| | 81,451 | | | Express, Inc.* | | | 1,181,854 | |
| | 136,028 | | | Five Below, Inc.* | | | 6,313,059 | |
| | 68,010 | | | Francescas Holding Corp.* | | | 751,511 | |
| | 9,571 | | | Hibbett Sports, Inc.* | | | 332,975 | |
| | 151,554 | | | HSN, Inc. | | | 7,415,537 | |
| | 24,600 | | | Liberty TripAdvisor Holdings, Inc. Class A* | | | 538,248 | |
| | 83,097 | | | Monro Muffler Brake, Inc. | | | 5,281,645 | |
| | 19,400 | | | Outerwall, Inc. | | | 814,800 | |
| | 19,063 | | | Overstock.com, Inc.* | | | 307,105 | |
| | 17,100 | | | PetMed Express, Inc. | | | 320,796 | |
| | 104,496 | | | Pier 1 Imports, Inc. | | | 537,109 | |
| | 56,733 | | | Select Comfort Corp.* | | | 1,212,952 | |
| | 10,800 | | | Shutterfly, Inc.* | | | 503,388 | |
| | 27,000 | | | Tailored Brands, Inc. | | | 341,820 | |
| | 63,960 | | | Tile Shop Holdings, Inc.* | | | 1,271,525 | |
| | 17,741 | | | Wayfair, Inc. Class A* | | | 691,899 | |
| | | | | | | | |
| | | | | | | 55,384,380 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment - 2.6% | |
| | 49,111 | | | Advanced Energy Industries, Inc.* | | $ | 1,864,254 | |
| | 30,800 | | | Ambarella, Inc.* | | | 1,564,948 | |
| | 136,634 | | | Cirrus Logic, Inc.* | | | 5,300,033 | |
| | 26,183 | | | Inphi Corp.* | | | 838,641 | |
| | 301,011 | | | Integrated Device Technology, Inc.* | | | 6,059,351 | |
| | 80,550 | | | Kulicke & Soffa Industries, Inc.* | | | 980,294 | |
| | 69,825 | | | MaxLinear, Inc. Class A* | | | 1,255,453 | |
| | 177,987 | | | MKS Instruments, Inc. | | | 7,664,120 | |
| | 20,684 | | | Synaptics, Inc.* | | | 1,111,765 | |
| | 74,715 | | | Tessera Technologies, Inc. | | | 2,289,268 | |
| | | | | | | | |
| | | | | | | 28,928,127 | |
| | | | | | | | |
| | | | Software & Services - 17.4% | |
| | 74,936 | | | Aspen Technology, Inc.* | | | 3,015,425 | |
| | 26,029 | | | AVG Technologies N.V.* | | | 494,291 | |
| | 213,184 | | | Bottomline Technologies de, Inc.* | | | 4,589,851 | |
| | 51,922 | | | CACI International, Inc. Class A* | | | 4,694,268 | |
| | 279,265 | | | Cardtronics, Inc.* | | | 11,117,540 | |
| | 91,067 | | | Cass Information Systems, Inc. | | | 4,708,164 | |
| | 149,727 | | | comScore, Inc.* | | | 3,575,481 | |
| | 65,736 | | | CSG Systems International, Inc. | | | 2,649,818 | |
| | 47,677 | | | Demandware, Inc.* | | | 3,571,007 | |
| | 203,461 | | | EarthLink Holdings Corp. | | | 1,302,150 | |
| | 20,190 | | | Ellie Mae, Inc.* | | | 1,850,413 | |
| | 270,714 | | | Envestnet, Inc.* | | | 9,017,483 | |
| | 73,386 | | | EPAM Systems, Inc.* | | | 4,719,454 | |
| | 4,500 | | | Euronet Worldwide, Inc.* | | | 311,355 | |
| | 613,929 | | | Everyday Health, Inc.* | | | 4,837,760 | |
| | 200,223 | | | Exlservice Holdings, Inc.* | | | 10,493,687 | |
| | 98,599 | | | Fair Isaac Corp. | | | 11,142,673 | |
| | 442,712 | | | Five9, Inc.* | | | 5,268,273 | |
| | 113,466 | | | Fleetmatics Group plc* | | | 4,916,482 | |
| | 40,002 | | | Gigamon, Inc.* | | | 1,495,675 | |
| | 136,873 | | | Guidewire Software, Inc.* | | | 8,453,276 | |
| | 120,215 | | | HubSpot, Inc.* | | | 5,219,735 | |
| | 146,939 | | | j2 Global, Inc. | | | 9,282,137 | |
| | 16,857 | | | Luxoft Holding, Inc.* | | | 876,901 | |
| | 137,359 | | | Manhattan Associates, Inc.* | | | 8,808,833 | |
| | 130,652 | | | MAXIMUS, Inc. | | | 7,234,201 | |
| | 6,297 | | | MicroStrategy, Inc. Class A* | | | 1,102,101 | |
| | 47,041 | | | NeuStar, Inc. Class A* | | | 1,105,934 | |
| | 16,200 | | | NIC, Inc. | | | 355,428 | |
| | 136,762 | | | Paycom Software, Inc.* | | | 5,909,486 | |
| | 14,360 | | | Pegasystems, Inc. | | | 387,002 | |
| | 132,772 | | | PTC, Inc.* | | | 4,989,572 | |
| | 81,680 | | | Q2 Holdings, Inc.* | | | 2,288,674 | |
| | 45,300 | | | Rovi Corp.* | | | 708,492 | |
| | 18,200 | | | Shutterstock, Inc.* | | | 833,560 | |
| | 2,654 | | | Stamps.com, Inc.* | | | 232,013 | |
| | 69,836 | | | Sykes Enterprises, Inc.* | | | 2,022,451 | |
| | 34,269 | | | Take-Two Interactive Software, Inc.* | | | 1,299,480 | |
| | 67,183 | | | Tyler Technologies, Inc.* | | | 11,200,078 | |
| | 154,614 | | | Verint Systems, Inc.* | | | 5,122,362 | |
| | 18,333 | | | Web.com Group, Inc.* | | | 333,294 | |
| | 92,642 | | | WebMD Health Corp.* | | | 5,383,427 | |
| | 71,990 | | | WEX, Inc.* | | | 6,383,353 | |
| | 83,039 | | | Wix.com Ltd.* | | | 2,520,234 | |
| | 12,266 | | | Zedge, Inc. Class B* | | | 56,301 | |
| | 213,290 | | | Zendesk, Inc.* | | | 5,626,590 | |
| | | | | | | | |
| | | | | | | 191,506,165 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.6% - (continued) | |
| | | | Technology Hardware & Equipment - 2.6% | |
| | 46,000 | | | 3D Systems Corp.* | | $ | 629,740 | |
| | 9,400 | | | Belden, Inc. | | | 567,478 | |
| | 17,242 | | | Ciena Corp.* | | | 323,288 | |
| | 40,756 | | | Cray, Inc.* | | | 1,219,420 | |
| | 6,881 | | | DTS, Inc.* | | | 182,002 | |
| | 52,433 | | | ePlus, Inc.* | | | 4,288,495 | |
| | 71,077 | | | FEI Co. | | | 7,596,710 | |
| | 58,676 | | | Ixia* | | | 576,198 | |
| | 9,200 | | | NETGEAR, Inc.* | | | 437,368 | |
| | 154,846 | | | NetScout Systems, Inc.* | | | 3,445,323 | |
| | 6,693 | | | Plantronics, Inc. | | | 294,492 | |
| | 70,830 | | | Rogers Corp.* | | | 4,327,713 | |
| | 27,100 | | | Sanmina Corp.* | | | 726,551 | |
| | 11,400 | | | Tech Data Corp.* | | | 819,090 | |
| | 51,489 | | | Ubiquiti Networks, Inc.* | | | 1,990,565 | |
| | 10,084 | | | Universal Display Corp.* | | | 683,695 | |
| | 31,700 | | | Vishay Intertechnology, Inc. | | | 392,763 | |
| | | | | | | | |
| | | | | | | 28,500,891 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.8% | |
| | 81,000 | | | Cincinnati Bell, Inc.* | | | 370,170 | |
| | 36,800 | | | IDT Corp. Class B | | | 522,192 | |
| | 66,259 | | | Inteliquent, Inc. | | | 1,317,891 | |
| | 298,720 | | | ORBCOMM, Inc.* | | | 2,972,264 | |
| | 645,856 | | | Vonage Holdings Corp.* | | | 3,939,722 | |
| | | | | | | | |
| | | | | | | 9,122,239 | |
| | | | | | | | |
| | | | Transportation - 2.0% | |
| | 7,425 | | | Alaska Air Group, Inc. | | | 432,803 | |
| | 11,683 | | | Allegiant Travel Co. | | | 1,769,975 | |
| | 256,308 | | | Celadon Group, Inc. | | | 2,094,036 | |
| | 68,619 | | | Genesee & Wyoming, Inc. Class A* | | | 4,045,090 | |
| | 54,900 | | | Hawaiian Holdings, Inc.* | | | 2,084,004 | |
| | 294,620 | | | Knight Transportation, Inc. | | | 7,831,000 | |
| | 162,161 | | | Marten Transport Ltd. | | | 3,210,788 | |
| | 14,973 | | | Saia, Inc.* | | | 376,421 | |
| | | | | | | | |
| | | | | | | 21,844,117 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,037,888,113) | | $ | 1,063,164,414 | |
| | | | | | | | |
|
| WARRANTS - 0.0% | |
| | | | Diversified Financials - 0.0% | |
| | 891 | | | Emergent Capital, Inc. Expires 4/11/19*(1) | | $ | — | |
| | | | | | | | |
| | |
| | | | Total Warrants
(cost $—) | | $ | — | |
| | | | | | | | |
|
| EXCHANGE TRADED FUNDS - 2.3% | |
| | | | Other Investment Pools & Funds - 2.3% | |
| | 183,220 | | | iShares Russell 2000 Growth ETF | | $ | 25,134,119 | |
| | | | | | | | |
| | |
| | | | Total Exchange Traded Funds
(cost $24,203,912) | | $ | 25,134,119 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,062,092,025) | | $ | 1,088,298,533 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 1.5% | |
| | | | Other Investment Pools & Funds - 1.5% | |
| | 16,595,742 | | | Federated Prime Obligations Fund | | $ | 16,595,742 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $16,595,742) | | $ | 16,595,742 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,078,687,767)^ | | | 100.4 | % | | $ | 1,104,894,275 | |
| | | | Other Assets and Liabilities | | | (0.4 | )% | | | (4,128,523 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,100,765,752 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Other than the industry classifications “Other Investment Pools & Funds,” equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 132,707,817 | |
Unrealized Depreciation | | | (106,501,309 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 26,206,508 | |
| | | | |
| (1) | The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 12/2014 | | | | 891 | | | Emergent Capital, Inc. Warrants | | $ | — | |
| | At June 30, 2016, the aggregate value of this security was $0, which represents 0.0% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ETF | | Exchange Traded Fund |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 17,795,493 | | | $ | 17,795,493 | | | $ | — | | | $ | — | |
Banks | | | 37,466,274 | | | | 37,466,274 | | | | — | | | | — | |
Capital Goods | | | 90,844,787 | | | | 90,844,787 | | | | — | | | | — | |
Commercial & Professional Services | | | 50,892,090 | | | | 50,892,090 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 48,020,295 | | | | 48,020,295 | | | | — | | | | — | |
Consumer Services | | | 61,569,602 | | | | 61,569,602 | | | | — | | | | — | |
Diversified Financials | | | 11,785,018 | | | | 11,785,018 | | | | — | | | | — | |
Energy | | | 14,754,414 | | | | 14,754,414 | | | | — | | | | — | |
Food & Staples Retailing | | | 23,859,436 | | | | 23,859,436 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 21,724,533 | | | | 21,724,533 | | | | — | | | | — | |
Health Care Equipment & Services | | | 114,775,024 | | | | 114,775,024 | | | | — | | | | — | |
Household & Personal Products | | | 1,274,806 | | | | 1,274,806 | | | | — | | | | — | |
Insurance | | | 20,405,773 | | | | 20,405,773 | | | | — | | | | — | |
Materials | | | 50,395,091 | | | | 50,395,091 | | | | — | | | | — | |
Media | | | 905,607 | | | | 905,607 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 133,508,306 | | | | 133,508,306 | | | | — | | | | — | |
Real Estate | | | 27,901,946 | | | | 27,901,946 | | | | — | | | | — | |
Retailing | | | 55,384,380 | | | | 55,384,380 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 28,928,127 | | | | 28,928,127 | | | | — | | | | — | |
Software & Services | | | 191,506,165 | | | | 191,506,165 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 28,500,891 | | | | 28,500,891 | | | | — | | | | — | |
Telecommunication Services | | | 9,122,239 | | | | 9,122,239 | | | | — | | | | — | |
Transportation | | | 21,844,117 | | | | 21,844,117 | | | | — | | | | — | |
Warrants | | | — | | | | — | | | | — | | | | — | |
Exchange Traded Funds | | | 25,134,119 | | | | 25,134,119 | | | | — | | | | — | |
Short-Term Investments | | | 16,595,742 | | | | 16,595,742 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,104,894,275 | | | $ | 1,104,894,275 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 93.7% | |
| | | | Automobiles & Components - 0.0% | |
| | 5,320 | | | Tenneco, Inc.* | | $ | 247,965 | |
| | 1,478 | | | Visteon Corp. | | | 97,267 | |
| | | | | | | | |
| | | | | | | 345,232 | |
| | | | | | | | |
| | | | Banks - 2.3% | |
| | 9,667 | | | EverBank Financial Corp. | | | 143,652 | |
| | 4,183 | | | FCB Financial Holdings, Inc. Class A* | | | 142,222 | |
| | 7,948 | | | First Merchants Corp. | | | 198,144 | |
| | 3,812 | | | Great Western Bancorp, Inc. | | | 120,230 | |
| | 11,728 | | | MGIC Investment Corp.* | | | 69,782 | |
| | 119,458 | | | PrivateBancorp, Inc. | | | 5,259,736 | |
| | 3,173 | | | Sandy Spring Bancorp, Inc. | | | 92,207 | |
| | 497,893 | | | Sterling Bancorp | | | 7,816,920 | |
| | 490,435 | | | United Community Banks, Inc. | | | 8,970,056 | |
| | | | | | | | |
| | | | | | | 22,812,949 | |
| | | | | | | | |
| | | | Capital Goods - 8.4% | |
| | 5,991 | | | AAON, Inc. | | | 164,812 | |
| | 450,104 | | | Advanced Drainage Systems, Inc. | | | 12,319,346 | |
| | 402,532 | | | Altra Industrial Motion Corp. | | | 10,860,313 | |
| | 1,397 | | | American Woodmark Corp.* | | | 92,733 | |
| | 233,391 | | | Applied Industrial Technologies, Inc. | | | 10,535,270 | |
| | 2,417 | | | Armstrong World Industries, Inc.* | | | 94,626 | |
| | 120,233 | | | Astronics Corp.* | | | 3,998,950 | |
| | 3,196 | | | AZZ, Inc. | | | 191,696 | |
| | 1,112 | | | Esterline Technologies Corp.* | | | 68,988 | |
| | 140,677 | | | Generac Holdings, Inc.* | | | 4,918,068 | |
| | 3,581 | | | Heico Corp. Class A | | | 192,121 | |
| | 1,675 | | | Lennox International, Inc. | | | 238,855 | |
| | 2,250 | | | Manitowoc Foodservice, Inc.* | | | 39,645 | |
| | 155,049 | | | Masonite International Corp.* | | | 10,254,941 | |
| | 180,938 | | | Middleby Corp.* | | | 20,853,104 | |
| | 500 | | | SiteOne Landscape Supply, Inc.* | | | 16,995 | |
| | 1,874 | | | Teledyne Technologies, Inc.* | | | 185,620 | |
| | 1,444 | | | Toro Co. | | | 127,361 | |
| | 154,335 | | | WESCO International, Inc.* | | | 7,946,709 | |
| | | | | | | | |
| | | | | | | 83,100,153 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.0% | |
| | 2,894 | | | Deluxe Corp. | | | 192,075 | |
| | 5,090 | | | Exponent, Inc. | | | 297,307 | |
| | 2,689 | | | GP Strategies Corp.* | | | 58,324 | |
| | 2,713 | | | Huron Consulting Group, Inc.* | | | 163,919 | |
| | 4,856 | | | On Assignment, Inc.* | | | 179,429 | |
| | 155,187 | | | WageWorks, Inc.* | | | 9,281,735 | |
| | | | | | | | |
| | | | | | | 10,172,789 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.4% | |
| | 147,876 | | | G-III Apparel Group Ltd.* | | | 6,760,891 | |
| | 481,475 | | | Kate Spade & Co.* | | | 9,923,200 | |
| | 475,404 | | | Steven Madden Ltd.* | | | 16,249,309 | |
| | 5,051 | | | TopBuild Corp.* | | | 182,846 | |
| | 3,699 | | | Vista Outdoor, Inc.* | | | 176,553 | |
| | | | | | | | |
| | | | | | | 33,292,799 | |
| | | | | | | | |
| | | | Consumer Services - 6.5% | |
| | 13,351 | | | Bloomin’ Brands, Inc. | | | 238,582 | |
| | 2,652 | | | Brinker International, Inc. | | | 120,746 | |
| | 966,872 | | | ClubCorp Holdings, Inc. | | | 12,569,336 | |
| | 5,968 | | | Del Frisco’s Restaurant Group, Inc.* | | | 85,462 | |
| | 3,848 | | | Dunkin’ Brands Group, Inc. | | | 167,850 | |
| | 95,426 | | | Jack in the Box, Inc. | | | 8,199,002 | |
| | 12,503 | | | La Quinta Holdings, Inc.* | | | 142,534 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 93.7% - (continued) | |
| | | | Consumer Services - 6.5% - (continued) | |
| | 3,141 | | | Marriott Vacations Worldwide Corp. | | $ | 215,127 | |
| | 119,204 | | | Panera Bread Co. Class A* | | | 25,264,096 | |
| | 2,166 | | | Papa John’s International, Inc. | | | 147,288 | |
| | 504,893 | | | Planet Fitness, Inc. Class A* | | | 9,532,380 | |
| | 161,408 | | | Texas Roadhouse, Inc. | | | 7,360,205 | |
| | 5,362 | | | Wingstop, Inc.* | | | 146,114 | |
| | | | | | | | |
| | | | | | | 64,188,722 | |
| | | | | | | | |
| | | | Diversified Financials - 1.8% | |
| | 4,106 | | | Evercore Partners, Inc. Class A | | | 181,444 | |
| | 70,712 | | | MarketAxess Holdings, Inc. | | | 10,281,525 | |
| | 689,862 | | | WisdomTree Investments, Inc. | | | 6,753,749 | |
| | | | | | | | |
| | | | | | | 17,216,718 | |
| | | | | | | | |
| | | | Energy - 2.1% | |
| | 399,039 | | | Patterson-UTI Energy, Inc. | | | 8,507,511 | |
| | 4,186 | | | PBF Energy, Inc. Class A | | | 99,543 | |
| | 320,989 | | | QEP Resources, Inc. | | | 5,659,036 | |
| | 4,091 | | | RSP Permian, Inc.* | | | 142,735 | |
| | 700,835 | | | WPX Energy, Inc.* | | | 6,524,774 | |
| | | | | | | | |
| | | | | | | 20,933,599 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.1% | |
| | 2,071 | | | Casey’s General Stores, Inc. | | | 272,357 | |
| | 7,539 | | | Natural Grocers by Vitamin Cottage, Inc.* | | | 98,384 | |
| | 2,391 | | | PriceSmart, Inc. | | | 223,726 | |
| | | | | | | | |
| | | | | | | 594,467 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.5% | |
| | 1,377,309 | | | Greencore Group plc | | | 5,668,113 | |
| | 100,828 | | | Post Holdings, Inc.* | | | 8,337,467 | |
| | 1,957 | | | TreeHouse Foods, Inc.* | | | 200,886 | |
| | | | | | | | |
| | | | | | | 14,206,466 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.0% | |
| | 262,711 | | | Acadia Healthcare Co., Inc.* | | | 14,554,189 | |
| | 165,227 | | | Align Technology, Inc.* | | | 13,309,035 | |
| | 3,573 | | | Anika Therapeutics, Inc.* | | | 191,692 | |
| | 449 | | | Atrion Corp. | | | 192,109 | |
| | 3,757 | | | Cynosure, Inc. Class A* | | | 182,759 | |
| | 210,844 | | | DexCom, Inc.* | | | 16,726,255 | |
| | 10,034 | | | Globus Medical, Inc. Class A* | | | 239,110 | |
| | 1,756 | | | ICU Medical, Inc.* | | | 197,989 | |
| | 76,542 | | | Inogen, Inc.* | | | 3,835,520 | |
| | 536,815 | | | Insulet Corp.* | | | 16,233,286 | |
| | 111,773 | | | LifePoint Health, Inc.* | | | 7,306,601 | |
| | 2,021 | | | LivaNova plc* | | | 101,515 | |
| | 3,256 | | | Natus Medical, Inc.* | | | 123,077 | |
| | 89,770 | | | Nevro Corp.* | | | 6,621,435 | |
| | 5,532 | | | Omnicell, Inc.* | | | 189,360 | |
| | 3,535 | | | Team Health Holdings, Inc.* | | | 143,768 | |
| | 2,509 | | | U.S. Physical Therapy, Inc. | | | 151,067 | |
| | 5,711 | | | Vascular Solutions, Inc.* | | | 237,920 | |
| | 509,735 | | | Veeva Systems, Inc. Class A* | | | 17,392,158 | |
| | 2,891 | | | WellCare Health Plans, Inc.* | | | 310,147 | |
| | | | | | | | |
| | | | | | | 98,238,992 | |
| | | | | | | | |
| | | | Insurance - 1.8% | |
| | 3,842 | | | AMERISAFE, Inc. | | | 235,207 | |
| | 91,354 | | | Assurant, Inc. | | | 7,884,764 | |
| | 244,724 | | | First American Financial Corp. | | | 9,842,799 | |
| | 4,480 | | | James River Group Holdings Ltd. | | | 152,141 | |
| | | | | | | | |
| | | | | | | 18,114,911 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 93.7% - (continued) | |
| | | | Materials - 3.5% | |
| | 5,822 | | | Boise Cascade Co.* | | $ | 133,615 | |
| | 15,955 | | | Graphic Packaging Holding Co. | | | 200,076 | |
| | 939,593 | | | Headwaters, Inc.* | | | 16,856,298 | |
| | 446,402 | | | KapStone Paper & Packaging Corp. | | | 5,807,690 | |
| | 14,588 | | | OMNOVA Solutions, Inc.* | | | 105,763 | |
| | 1,233,212 | | | Platform Specialty Products Corp.* | | | 10,950,922 | |
| | 6,242 | | | PolyOne Corp. | | | 219,968 | |
| | 2,656 | | | Silgan Holdings, Inc. | | | 136,678 | |
| | | | | | | | |
| | | | | | | 34,411,010 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.8% | |
| | 2,942 | | | Acorda Therapeutics, Inc.* | | | 75,036 | |
| | 291,006 | | | Aerie Pharmaceuticals, Inc.* | | | 5,121,706 | |
| | 1,265 | | | Agios Pharmaceuticals, Inc.* | | | 52,997 | |
| | 209,369 | | | Alder Biopharmaceuticals, Inc.* | | | 5,227,944 | |
| | 8,025 | | | Amicus Therapeutics, Inc.* | | | 43,817 | |
| | 8,880 | | | Aratana Therapeutics, Inc.* | | | 56,122 | |
| | 114,492 | | | Bluebird Bio, Inc.* | | | 4,956,359 | |
| | 155,218 | | | Cepheid* | | | 4,772,953 | |
| | 4,741 | | | Coherus Biosciences, Inc.* | | | 80,075 | |
| | 267,529 | | | Five Prime Therapeutics, Inc.* | | | 11,062,324 | |
| | 4,694 | | | Flexion Therapeutics, Inc.* | | | 70,246 | |
| | 216,228 | | | Galapagos N.V. ADR* | | | 11,994,167 | |
| | 4,333 | | | GlycoMimetics, Inc.* | | | 31,501 | |
| | 316,611 | | | Intersect ENT, Inc.* | | | 4,093,780 | |
| | 306,588 | | | Ironwood Pharmaceuticals, Inc.* | | | 4,008,638 | |
| | 4,131 | | | Medicines Co.* | | | 138,926 | |
| | 3,597 | | | Neurocrine Biosciences, Inc.* | | | 163,484 | |
| | 995,218 | | | Novavax, Inc.* | | | 7,235,235 | |
| | 2,515 | | | Ophthotech Corp.* | | | 128,340 | |
| | 233,006 | | | Otonomy, Inc.* | | | 3,700,135 | |
| | 3,390 | | | PAREXEL International Corp.* | | | 213,163 | |
| | 151,163 | | | Portola Pharmaceuticals, Inc.* | | | 3,567,447 | |
| | 156,213 | | | PTC Therapeutics, Inc.* | | | 1,096,615 | |
| | 5,750 | | | Relypsa, Inc.* | | | 106,375 | |
| | 149,047 | | | TESARO, Inc.* | | | 12,527,400 | |
| | 124,035 | | | Ultragenyx Pharmaceutical, Inc.* | | | 6,066,552 | |
| | | | | | | | |
| | | | | | | 86,591,337 | |
| | | | | | | | |
| | | | Real Estate - 3.6% | |
| | 98,212 | | | Coresite Realty Corp. REIT | | | 8,710,422 | |
| | 78,448 | | | FirstService Corp. | | | 3,595,272 | |
| | 540,795 | | | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | | | 11,681,172 | |
| | 5,546 | | | HFF, Inc. Class A REIT | | | 160,169 | |
| | 581,471 | | | Kennedy-Wilson Holdings, Inc. REIT | | | 11,024,690 | |
| | 9,962 | | | Sunstone Hotel Investors, Inc. REIT | | | 120,241 | |
| | | | | | | | |
| | | | | | | 35,291,966 | |
| | | | | | | | |
| | | | Retailing - 3.6% | |
| | 5,016,400 | | | Allstar Co.*(1)(2)(3) | | | 4,765,580 | |
| | 3,798 | | | Burlington Stores, Inc.* | | | 253,364 | |
| | 4,114 | | | Core-Mark Holding Co., Inc. | | | 192,782 | |
| | 174,031 | | | Dick’s Sporting Goods, Inc. | | | 7,841,837 | |
| | 364,774 | | | DSW, Inc. Class A | | | 7,725,913 | |
| | 52,717 | | | Duluth Holdings, Inc. Class BClass AClass AClass AClass AClass B* | | | 1,289,458 | |
| | 150,692 | | | Five Below, Inc.* | | | 6,993,616 | |
| | 3,860 | | | HSN, Inc. | | | 188,870 | |
| | 2,123 | | | Monro Muffler Brake, Inc. | | | 134,938 | |
| | 104,986 | | | Tory Burch LLC*(1)(2)(3) | | | 5,754,268 | |
| | | | | | | | |
| | | | | | | 35,140,626 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 93.7% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment - 4.0% | |
| | 2,866 | | | Cirrus Logic, Inc.* | | $ | 111,172 | |
| | 448,064 | | | Entegris, Inc.* | | | 6,483,486 | |
| | 122,624 | | | First Solar, Inc.* | | | 5,944,812 | |
| | 7,597 | | | Integrated Device Technology, Inc.* | | | 152,928 | |
| | 107,157 | | | M/A-COM Technology Solutions Holdings, Inc.* | | | 3,534,038 | |
| | 355,768 | | | Mellanox Technologies Ltd.* | | | 17,062,633 | |
| | 4,570 | | | MKS Instruments, Inc. | | | 196,784 | |
| | 372,952 | | | SunPower Corp.* | | | 5,777,026 | |
| | | | | | | | |
| | | | | | | 39,262,879 | |
| | | | | | | | |
| | | | Software & Services - 25.6% | |
| | 1,918 | | | Aspen Technology, Inc.* | | | 77,180 | |
| | 450,707 | | | Atlassian Corp. plc Class A* | | | 11,673,311 | |
| | 5,423 | | | Bottomline Technologies de, Inc.* | | | 116,757 | |
| | 1,347 | | | CACI International, Inc. Class A* | | | 121,782 | |
| | 6,304 | | | Cardtronics, Inc.* | | | 250,962 | |
| | 2,311 | | | Cass Information Systems, Inc. | | | 119,479 | |
| | 3,842 | | | comScore, Inc.* | | | 91,747 | |
| | 91,185 | | | CoStar Group, Inc.* | | | 19,938,512 | |
| | 1,237 | | | Demandware, Inc.* | | | 92,651 | |
| | 193,481 | | | Envestnet, Inc.* | | | 6,444,852 | |
| | 113,922 | | | EPAM Systems, Inc.* | | | 7,326,324 | |
| | 15,494 | | | Everyday Health, Inc.* | | | 122,093 | |
| | 5,053 | | | Exlservice Holdings, Inc.* | | | 264,828 | |
| | 167,863 | | | Fair Isaac Corp. | | | 18,970,198 | |
| | 11,248 | | | Five9, Inc.* | | | 133,851 | |
| | 2,888 | | | Fleetmatics Group plc* | | | 125,137 | |
| | 186,286 | | | Gigamon, Inc.* | | | 6,965,234 | |
| | 444,915 | | | GoDaddy, Inc. Class A* | | | 13,876,899 | |
| | 230,089 | | | Guidewire Software, Inc.* | | | 14,210,297 | |
| | 250,088 | | | HubSpot, Inc.* | | | 10,858,821 | |
| | 221,247 | | | InterXion Holding N.V.* | | | 8,159,589 | |
| | 3,019 | | | j2 Global, Inc. | | | 190,710 | |
| | 136,434 | | | Manhattan Associates, Inc.* | | | 8,749,512 | |
| | 143,640 | | | MAXIMUS, Inc. | | | 7,953,347 | |
| | 3,221 | | | Paycom Software, Inc.* | | | 139,179 | |
| | 284,599 | | | Paylocity Holding Corp.* | | | 12,294,677 | |
| | 147,280 | | | Proofpoint, Inc.* | | | 9,291,895 | |
| | 3,434 | | | PTC, Inc.* | | | 129,050 | |
| | 2,124 | | | Q2 Holdings, Inc.* | | | 59,514 | |
| | 430,312 | | | SS&C Technologies Holdings, Inc. | | | 12,083,161 | |
| | 1,069,389 | | | Telogis, Inc.*(1)(2)(3) | | | 3,079,840 | |
| | 47,377 | | | Tyler Technologies, Inc.* | | | 7,898,220 | |
| | 60,189 | | | Ultimate Software Group, Inc.* | | | 12,657,145 | |
| | 3,804 | | | Verint Systems, Inc.* | | | 126,027 | |
| | 202,886 | | | Virtusa Corp.* | | | 5,859,348 | |
| | 1,916 | | | WebMD Health Corp.* | | | 111,339 | |
| | 117,629 | | | WEX, Inc.* | | | 10,430,163 | |
| | 563,017 | | | WNS Holdings Ltd. ADR* | | | 15,201,459 | |
| | 621,305 | | | Zendesk, Inc.* | | | 16,390,026 | |
| | 259,562 | | | Zillow Group, Inc. Class C* | | | 9,416,909 | |
| | | | | | | | |
| | | | | | | 252,002,025 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 0.6% | |
| | 69,300 | | | Arista Networks, Inc.* | | | 4,461,534 | |
| | 1,333 | | | ePlus, Inc.* | | | 109,026 | |
| | 1,794 | | | FEI Co. | | | 191,743 | |
| | 3,937 | | | NetScout Systems, Inc.* | | | 87,598 | |
| | 52,399 | | | Pure Storage, Inc. Class A* | | | 571,149 | |
| | 1,814 | | | Rogers Corp.* | | | 110,836 | |
| | | | | | | | |
| | | | | | | 5,531,886 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 93.7% - (continued) | |
| | | | Telecommunication Services - 0.7% | |
| | 717,711 | | | ORBCOMM, Inc.* | | $ | 7,141,225 | |
| | 13,073 | | | Vonage Holdings Corp.* | | | 79,745 | |
| | | | | | | | |
| | | | | | | 7,220,970 | |
| | | | | | | | |
| | | | Transportation - 4.4% | |
| | 6,627 | | | Celadon Group, Inc. | | | 54,143 | |
| | 1,755 | | | Genesee & Wyoming, Inc. Class A* | | | 103,457 | |
| | 126,657 | | | Kirby Corp.* | | | 7,902,130 | |
| | 658,155 | | | Knight Transportation, Inc. | | | 17,493,760 | |
| | 179,162 | | | Landstar System, Inc. | | | 12,301,263 | |
| | 4,151 | | | Marten Transport Ltd. | | | 82,190 | |
| | 373,639 | | | Swift Transportation Co.* | | | 5,757,777 | |
| | | | | | | | |
| | | | | | | 43,694,720 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $898,190,425) | | $ | 922,365,216 | |
| | | | | | | | |
|
| EXCHANGE TRADED FUNDS - 0.0% | |
| | | | Other Investment Pools & Funds - 0.0% | |
| | 2,910 | | | iShares Russell 2000 Growth ETF | | $ | 399,194 | |
| | | | | | | | |
| | |
| | | | Total Exchange Traded Funds
(cost $384,444) | | $ | 399,194 | |
| | | | | | | | |
|
| PREFERRED STOCKS - 3.1% | |
| | | | Consumer Services - 0.2% | |
| | 277,018 | | | DraftKings, Inc. Series D(1)(2)(3) | | $ | 1,099,761 | |
| | 252,844 | | | DraftKings, Inc. Series D-1(1)(2)(3) | | | 1,319,846 | |
| | | | | | | | |
| | | | | | | 2,419,607 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 0.0% | |
| | 92,420 | | | Sancilio & Co., Inc.(1)(2)(3) | | | 417,738 | |
| | | | | | | | |
| | | | Retailing - 0.3% | |
| | 74,004 | | | Honest Co.(1)(2)(3) | | | 2,925,378 | |
| | | | | | | | |
| | | | Software & Services - 2.3% | |
| | 169,989 | | | Cloudera, Inc.(1)(2)(3) | | | 2,735,123 | |
| | 410,300 | | | MarkLogic Corp. Series F(1)(2)(3) | | | 4,271,223 | |
| | 206,888 | | | Nutanix, Inc.(1)(2)(3) | | | 2,250,942 | |
| | 1,456,330 | | | Telogis, Inc.(1)(2)(3) | | | 5,767,067 | |
| | 157,023 | | | Veracode, Inc.(1)(2)(3) | | | 3,242,525 | |
| | 1,026,132 | | | Zuora, Inc. Series F(1)(2)(3) | | | 4,053,221 | |
| | | | | | | | |
| | | | | | | 22,320,101 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.3% | |
| | 6,478 | | | DocuSign, Inc. Series B(1)(2)(3) | | | 109,737 | |
| | 1,940 | | | DocuSign, Inc. Series B-1(1)(2)(3) | | | 32,864 | |
| | 4,655 | | | DocuSign, Inc. Series D(1)(2)(3) | | | 78,856 | |
| | 120,393 | | | DocuSign, Inc. Series E(1)(2)(3) | | | 2,039,457 | |
| | 21,928 | | | DocuSign, Inc. Series F(1)(2)(3) | | | 371,460 | |
| | | | | | | | |
| | | | | | | 2,632,374 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $29,352,413) | | $ | 30,715,198 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $927,927,282) | | $ | 953,479,608 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.7% | |
| | | | Other Investment Pools & Funds - 0.7% | |
| | 6,894,517 | | | BlackRock Liquidity Funds TempFund Portfolio | | $ | 6,894,517 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $6,894,517) | | $ | 6,894,517 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $934,821,799)^ | | | 97.5 | % | | $ | 960,374,125 | |
| | | | Other Assets and Liabilities | | | 2.5 | % | | | 24,580,654 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 984,954,779 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 96,272,516 | |
Unrealized Depreciation | | | (70,720,190 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 25,552,326 | |
| | | | |
| (1) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of these securities was $44,314,886, which represents 4.5% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | The following securities are considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 08/2011 | | | | 5,016,400 | | | Allstar Co. | | $ | 2,182,228 | |
| | 02/2014 | | | | 169,989 | | | Cloudera, Inc. Preferred | | | 2,475,040 | |
| | 02/2014 | | | | 6,478 | | | DocuSign, Inc. Series B Preferred | | | 85,072 | |
| | 02/2014 | | | | 1,940 | | | DocuSign, Inc. Series B-1 Preferred | | | 25,477 | |
| | 02/2014 | | | | 4,655 | | | DocuSign, Inc. Series D Preferred | | | 61,131 | |
| | 02/2014 | | | | 120,393 | | | DocuSign, Inc. Series E Preferred | | | 1,581,049 | |
| | 04/2015 | | | | 21,928 | | | DocuSign, Inc. Series F Preferred | | | 418,673 | |
| | 08/2015 | | | | 277,018 | | | DraftKings, Inc. Series D Preferred | | | 1,491,990 | |
| | 08/2015 | | | | 252,844 | | | DraftKings, Inc. Series D-1 Preferred | | | 1,938,153 | |
| | 08/2015 | | | | 74,004 | | | Honest Co. Preferred | | | 3,386,053 | |
| | 04/2015 | | | | 410,300 | | | MarkLogic Corp. Series F Preferred | | | 4,765,306 | |
| | 08/2014 | | | | 206,888 | | | Nutanix, Inc. Preferred | | | 2,771,575 | |
| | 07/2015 | | | | 92,420 | | | Sancilio & Co., Inc. Preferred | | | 349,066 | |
| | 09/2013 | | | | 1,069,389 | | | Telogis, Inc. | | | 2,118,567 | |
| | 09/2013 | | | | 1,456,330 | | | Telogis, Inc. Preferred | | | 3,205,674 | |
| | 11/2013 | | | | 104,986 | | | Tory Burch LLC | | | 8,228,416 | |
| | 08/2014 | | | | 157,023 | | | Veracode, Inc. Preferred | | | 2,899,571 | |
| | 01/2015 | | | | 1,026,132 | | | Zuora, Inc. Series F Preferred | | | 3,898,583 | |
| | | | | | | | | | | | |
| | | | | | | | | | $ | 41,881,624 | |
| | | | | | | | | | | | |
| | At June 30, 2016, the aggregate value of these securities was $44,314,886, which represents 4.5% of total net assets. |
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $44,314,886, which represents 4.5% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
ETF | | Exchange Traded Fund |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 345,232 | | | $ | 345,232 | | | $ | — | | | $ | — | |
Banks | | | 22,812,949 | | | | 22,812,949 | | | | — | | | | — | |
Capital Goods | | | 83,100,153 | | | | 83,100,153 | | | | — | | | | — | |
Commercial & Professional Services | | | 10,172,789 | | | | 10,172,789 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 33,292,799 | | | | 33,292,799 | | | | — | | | | — | |
Consumer Services | | | 64,188,722 | | | | 64,188,722 | | | | — | | | | — | |
Diversified Financials | | | 17,216,718 | | | | 17,216,718 | | | | — | | | | — | |
Energy | | | 20,933,599 | | | | 20,933,599 | | | | — | | | | — | |
Food & Staples Retailing | | | 594,467 | | | | 594,467 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 14,206,466 | | | | 8,538,353 | | | | 5,668,113 | | | | — | |
Health Care Equipment & Services | | | 98,238,992 | | | | 98,238,992 | | | | — | | | | — | |
Insurance | | | 18,114,911 | | | | 18,114,911 | | | | — | | | | — | |
Materials | | | 34,411,010 | | | | 34,411,010 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 86,591,337 | | | | 86,591,337 | | | | — | | | | — | |
Real Estate | | | 35,291,966 | | | | 35,291,966 | | | | — | | | | — | |
Retailing | | | 35,140,626 | | | | 24,620,778 | | | | — | | | | 10,519,848 | |
Semiconductors & Semiconductor Equipment | | | 39,262,879 | | | | 39,262,879 | | | | — | | | | — | |
Software & Services | | | 252,002,025 | | | | 248,922,185 | | | | — | | | | 3,079,840 | |
Technology Hardware & Equipment | | | 5,531,886 | | | | 5,531,886 | | | | — | | | | — | |
Telecommunication Services | | | 7,220,970 | | | | 7,220,970 | | | | — | | | | — | |
Transportation | | | 43,694,720 | | | | 43,694,720 | | | | — | | | | — | |
Exchange Traded Funds | | | 399,194 | | | | 399,194 | | | | — | | | | — | |
Preferred Stocks | | | 30,715,198 | | | | — | | | | — | | | | 30,715,198 | |
Short-Term Investments | | | 6,894,517 | | | | 6,894,517 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 960,374,125 | | | $ | 910,391,126 | | | $ | 5,668,113 | | | $ | 44,314,886 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Total | |
Beginning balance | | $ | 15,248,065 | | | $ | 36,283,004 | | | $ | 51,531,069 | |
Purchases | | | — | | | | — | | | | — | |
Sales | | | (3,098,097 | ) | | | — | | | | (3,098,097 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 1,449,720 | | | | (5,567,806 | ) | | | (4,118,086 | ) |
Transfers into Level 3(1) | | | — | | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Ending balance | | $ | 13,599,688 | | | $ | 30,715,198 | | | $ | 44,314,886 | |
| | | | | | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $(4,310,689).
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% | |
| | | | Automobiles & Components - 2.5% | |
| | 7,510 | | | Cooper Tire & Rubber Co. | | $ | 223,948 | |
| | 28,840 | | | Goodyear Tire & Rubber Co. | | | 740,034 | |
| | 9,423 | | | Lear Corp. | | | 958,885 | |
| | 4,261 | | | Visteon Corp. | | | 280,416 | |
| | | | | | | | |
| | | | | | | 2,203,283 | |
| | | | | | | | |
| | | | Banks - 4.8% | |
| | 23,200 | | | Banc of California, Inc. | | | 419,920 | |
| | 12,700 | | | Banco Latinoamericano de Comercio Exterior S.A. ADR | | | 336,550 | |
| | 8,463 | | | Berkshire Hills Bancorp, Inc. | | | 227,824 | |
| | 21,600 | | | Fidelity Southern Corp. | | | 338,472 | |
| | 50,606 | | | Fifth Third Bancorp | | | 890,160 | |
| | 5,105 | | | First NBC Bank Holding Co.* | | | 85,713 | |
| | 16,500 | | | Flagstar Bancorp, Inc.* | | | 402,765 | |
| | 8,158 | | | Great Western Bancorp, Inc. | | | 257,303 | |
| | 15,349 | | | HomeStreet, Inc.* | | | 305,752 | |
| | 7,903 | | | MainSource Financial Group, Inc. | | | 174,261 | |
| | 26,198 | | | Popular, Inc. | | | 767,601 | |
| | | | | | | | |
| | | | | | | 4,206,321 | |
| | | | | | | | |
| | | | Capital Goods - 8.8% | |
| | 3,649 | | | Acuity Brands, Inc. | | | 904,806 | |
| | 9,300 | | | American Woodmark Corp.* | | | 617,334 | |
| | 19,007 | | | BWX Technologies, Inc. | | | 679,880 | |
| | 6,236 | | | Comfort Systems USA, Inc. | | | 203,106 | |
| | 9,600 | | | Continental Building Products, Inc.* | | | 213,408 | |
| | 6,400 | | | Encore Wire Corp. | | | 238,592 | |
| | 6,726 | | | Gibraltar Industries, Inc.* | | | 212,340 | |
| | 991 | | | Huntington Ingalls Industries, Inc. | | | 166,518 | |
| | 4,300 | | | Hyster-Yale Materials Handling, Inc. | | | 255,807 | |
| | 4,090 | | | Joy Global, Inc. | | | 86,463 | |
| | 7,769 | | | Lennox International, Inc. | | | 1,107,859 | |
| | 3,028 | | | Lydall, Inc.* | | | 116,760 | |
| | 11,706 | | | MasTec, Inc.* | | | 261,278 | |
| | 48,800 | | | Meritor, Inc.* | | | 351,360 | |
| | 15,930 | | | MRC Global, Inc.* | | | 226,365 | |
| | 19,304 | | | Quanta Services, Inc.* | | | 446,308 | |
| | 14,727 | | | Spirit Aerosystems Holdings, Inc. Class A* | | | 633,261 | |
| | 17,387 | | | TASER International, Inc.* | | | 432,589 | |
| | 5,309 | | | Timken Co. | | | 162,774 | |
| | 5,324 | | | Trex Co., Inc.* | | | 239,154 | |
| | 2,600 | | | Universal Forest Products, Inc. | | | 240,994 | |
| | | | | | | | |
| | | | | | | 7,796,956 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 4.0% | |
| | 3,035 | | | Barrett Business Services, Inc. | | | 125,406 | |
| | 7,700 | | | Deluxe Corp. | | | 511,049 | |
| | 6,100 | | | Essendant, Inc. | | | 186,416 | |
| | 11,664 | | | Herman Miller, Inc. | | | 348,637 | |
| | 2,606 | | | Insperity, Inc. | | | 201,261 | |
| | 7,800 | | | Kimball International, Inc. Class B | | | 88,764 | |
| | 7,663 | | | Mistras Group, Inc.* | | | 182,916 | |
| | 6,882 | | | Quad/Graphics, Inc. | | | 160,282 | |
| | 25,700 | | | R.R. Donnelley & Sons Co. | | | 434,844 | |
| | 20,816 | | | Robert Half International, Inc. | | | 794,339 | |
| | 19,100 | | | RPX Corp.* | | | 175,147 | |
| | 5,300 | | | WageWorks, Inc.* | | | 316,993 | |
| | | | | | | | |
| | | | | | | 3,526,054 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Consumer Durables & Apparel - 1.5% | |
| | 5,097 | | | CSS Industries, Inc. | | $ | 136,651 | |
| | 865 | | | Helen of Troy Ltd.* | | | 88,957 | |
| | 4,900 | | | lululemon athletica, Inc.* | | | 361,914 | |
| | 8,899 | | | Movado Group, Inc. | | | 192,930 | |
| | 11,090 | | | Smith & Wesson Holding Corp.* | | | 301,426 | |
| | 4,000 | | | Sturm Ruger & Co., Inc. | | | 256,040 | |
| | | | | | | | |
| | | | | | | 1,337,918 | |
| | | | | | | | |
| | | | Consumer Services - 2.8% | |
| | 8,500 | | | American Public Education, Inc.* | | | 238,850 | |
| | 4,984 | | | Capella Education Co. | | | 262,358 | |
| | 9,420 | | | Domino’s Pizza, Inc. | | | 1,237,599 | |
| | 5,708 | | | International Speedway Corp. Class A | | | 190,933 | |
| | 12,000 | | | LifeLock, Inc.* | | | 189,720 | |
| | 4,540 | | | Strayer Education, Inc.* | | | 223,050 | |
| | 11,679 | | | Weight Watchers International, Inc.* | | | 135,827 | |
| | | | | | | | |
| | | | | | | 2,478,337 | |
| | | | | | | | |
| | | | Diversified Financials - 0.9% | |
| | 7,878 | | | Green Dot Corp. Class A* | | | 181,115 | |
| | 20,600 | | | Navient Corp. | | | 246,170 | |
| | 11,090 | | | Nelnet, Inc. Class A | | | 385,378 | |
| | | | | | | | |
| | | | | | | 812,663 | |
| | | | | | | | |
| | | | Energy - 4.9% | |
| | 25,200 | | | Bill Barrett Corp.* | | | 161,028 | |
| | 10,406 | | | CVR Energy, Inc. | | | 161,293 | |
| | 45,000 | | | Denbury Resources, Inc. | | | 161,550 | |
| | 31,200 | | | DHT Holdings, Inc. | | | 156,936 | |
| | 5,048 | | | Dril-Quip, Inc.* | | | 294,955 | |
| | 21,375 | | | Ensco plc Class A | | | 207,551 | |
| | 31,200 | | | EP Energy Corp. Class A* | | | 161,616 | |
| | 26,100 | | | Fairmount Santrol Holdings, Inc.* | | | 201,231 | |
| | 23,363 | | | Noble Corp. plc | | | 192,511 | |
| | 17,800 | | | Nordic American Tankers Ltd. | | | 247,242 | |
| | 16,715 | | | Patterson-UTI Energy, Inc. | | | 356,364 | |
| | 33,661 | | | Pioneer Energy Services Corp.* | | | 154,841 | |
| | 3,177 | | | REX American Resources Corp.* | | | 190,080 | |
| | 10,796 | | | Rowan Cos. plc Class A | | | 190,657 | |
| | 23,400 | | | Sanchez Energy Corp.* | | | 165,204 | |
| | 15,050 | | | Valero Energy Corp. | | | 767,550 | |
| | 11,504 | | | Western Refining, Inc. | | | 237,327 | |
| | 6,300 | | | World Fuel Services Corp. | | | 299,187 | |
| | | | | | | | |
| | | | | | | 4,307,123 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.5% | |
| | 16,672 | | | Dean Foods Co. | | | 301,596 | |
| | 3,495 | | | Fresh Del Monte Produce, Inc. | | | 190,233 | |
| | 1,906 | | | John B Sanfilippo & Son, Inc. | | | 81,253 | |
| | 4,163 | | | National Beverage Corp.* | | | 261,478 | |
| | 31,200 | | | Pilgrim’s Pride Corp. | | | 794,976 | |
| | 2,928 | | | Sanderson Farms, Inc. | | | 253,682 | |
| | 6,267 | | | Universal Corp. | | | 361,857 | |
| | | | | | | | |
| | | | | | | 2,245,075 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 5.0% | |
| | 1,316 | | | ABIOMED, Inc.* | | | 143,826 | |
| | 10,846 | | | Align Technology, Inc.* | | | 873,645 | |
| | 4,100 | | | Anika Therapeutics, Inc.* | | | 219,965 | |
| | 11,000 | | | BioTelemetry, Inc.* | | | 179,300 | |
| | 2,100 | | | Chemed Corp. | | | 286,251 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Health Care Equipment & Services - 5.0% - (continued) | |
| | 11,017 | | | HMS Holdings Corp.* | | $ | 194,010 | |
| | 5,072 | | | Hologic, Inc.* | | | 175,491 | |
| | 3,803 | | | Magellan Health, Inc.* | | | 250,123 | |
| | 7,408 | | | Masimo Corp.* | | | 389,031 | |
| | 5,707 | | | Owens & Minor, Inc. | | | 213,328 | |
| | 3,782 | | | Providence Service Corp.* | | | 169,736 | |
| | 44,212 | | | Quality Systems, Inc. | | | 526,565 | |
| | 10,537 | | | Triple-S Management Corp. Class B* | | | 257,419 | |
| | 16,500 | | | Veeva Systems, Inc. Class A* | | | 562,980 | |
| | | | | | | | |
| | | | | | | 4,441,670 | |
| | | | | | | | |
| | | | Household & Personal Products - 1.3% | |
| | 6,318 | | | Herbalife Ltd.* | | | 369,793 | |
| | 5,513 | | | Medifast, Inc. | | | 183,417 | |
| | 4,565 | | | Nu Skin Enterprises, Inc. Class A | | | 210,857 | |
| | 3,500 | | | Usana Health Sciences, Inc.* | | | 390,005 | |
| | | | | | | | |
| | | | | | | 1,154,072 | |
| | | | | | | | |
| | | | Insurance - 5.4% | |
| | 9,688 | | | Ambac Financial Group, Inc.* | | | 159,464 | |
| | 8,807 | | | Aspen Insurance Holdings Ltd. | | | 408,469 | |
| | 6,745 | | | Assurant, Inc. | | | 582,161 | |
| | 10,798 | | | Assured Guaranty Ltd. | | | 273,945 | |
| | 17,400 | | | Endurance Specialty Holdings Ltd. | | | 1,168,584 | |
| | 5,594 | | | Everest Re Group Ltd. | | | 1,021,856 | |
| | 23,936 | | | Greenlight Capital Re Ltd. Class A* | | | 482,550 | |
| | 12,817 | | | Maiden Holdings Ltd. | | | 156,880 | |
| | 5,390 | | | Reinsurance Group of America, Inc. | | | 522,776 | |
| | | | | | | | |
| | | | | | | 4,776,685 | |
| | | | | | | | |
| | | | Materials - 4.9% | |
| | 4,703 | | | Cabot Corp. | | | 214,739 | |
| | 9,696 | | | Clearwater Paper Corp.* | | | 633,827 | |
| | 11,800 | | | Domtar Corp. | | | 413,118 | |
| | 4,300 | | | Innophos Holdings, Inc. | | | 181,503 | |
| | 10,180 | | | Innospec, Inc. | | | 468,178 | |
| | 16,069 | | | Rayonier Advanced Materials, Inc. | | | 218,378 | |
| | 6,402 | | | Reliance Steel & Aluminum Co. | | | 492,314 | |
| | 13,275 | | | Schnitzer Steel Industries, Inc. Class A | | | 233,640 | |
| | 20,754 | | | Steel Dynamics, Inc. | | | 508,473 | |
| | 7,881 | | | Stepan Co. | | | 469,156 | |
| | 4,577 | | | Trinseo S.A.* | | | 196,491 | |
| | 4,630 | | | U.S. Concrete, Inc.* | | | 282,013 | |
| | | | | | | | |
| | | | | | | 4,311,830 | |
| | | | | | | | |
| | | | Media - 0.6% | |
| | 5,052 | | | MDC Partners, Inc. Class A | | | 92,401 | |
| | 17,038 | | | MSG Networks, Inc. Class A* | | | 261,363 | |
| | 10,100 | | | New Media Investment Group, Inc. | | | 182,507 | |
| | | | | | | | |
| | | | | | | 536,271 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.2% | |
| | 15,100 | | | Aduro Biotech, Inc.* | | | 170,781 | |
| | 5,600 | | | Bio-Rad Laboratories, Inc. Class A* | | | 800,912 | |
| | 4,257 | | | BioSpecifics Technologies Corp.* | | | 170,025 | |
| | 20,149 | | | Bruker Corp. | | | 458,188 | |
| | 9,200 | | | Cambrex Corp.* | | | 475,916 | |
| | 6,477 | | | Emergent Biosolutions, Inc.* | | | 182,133 | |
| | 32,786 | | | Exelixis, Inc.* | | | 256,059 | |
| | 9,643 | | | FibroGen, Inc.* | | | 158,242 | |
| | 5,292 | | | Five Prime Therapeutics, Inc.* | | | 218,824 | |
| | 10,029 | | | ImmunoGen, Inc.* | | | 30,889 | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences -
8.2% - (continued) | |
| | 4,249 | | | INC Research Holdings, Inc. Class A* | | $ | 162,014 | |
| | 13,927 | | | Innoviva, Inc. | | | 146,651 | |
| | 8,684 | | | Insys Therapeutics, Inc.* | | | 112,371 | |
| | 5,700 | | | Jazz Pharmaceuticals plc* | | | 805,467 | |
| | 13,104 | | | Lexicon Pharmaceuticals, Inc.* | | | 188,043 | |
| | 8,586 | | | Myriad Genetics, Inc.* | | | 262,732 | |
| | 14,300 | | | OncoMed Pharmaceuticals, Inc.* | | | 176,033 | |
| | 2,976 | | | PAREXEL International Corp.* | | | 187,131 | |
| | 98,244 | | | PDL Biopharma, Inc. | | | 308,486 | |
| | 4,795 | | | PRA Health Sciences, Inc.* | | | 200,239 | |
| | 11,123 | | | Quintiles Transnational Holdings, Inc.* | | | 726,554 | |
| | 7,774 | | | Supernus Pharmaceuticals, Inc.* | | | 158,356 | |
| | 6,800 | | | United Therapeutics Corp.* | | | 720,256 | |
| | 32,448 | | | ZIOPHARM Oncology, Inc.* | | | 178,140 | |
| | | | | | | | |
| | | | | | | 7,254,442 | |
| | | | | | | | |
| | | | Real Estate - 13.1% | |
| | 14,900 | | | AG Mortgage Investment Trust, Inc. REIT | | | 215,156 | |
| | 18,700 | | | American Capital Agency Corp. REIT | | | 370,634 | |
| | 34,920 | | | American Capital Mortgage Investment Corp. REIT | | | 551,387 | |
| | 14,129 | | | Apollo Commercial Real Estate Finance, Inc. REIT | | | 227,053 | |
| | 9,697 | | | ARMOUR Residential, Inc. REIT | | | 193,940 | |
| | 55,800 | | | Brandywine Realty Trust REIT | | | 937,440 | |
| | 38,268 | | | Brixmor Property Group, Inc. REIT | | | 1,012,571 | |
| | 64,200 | | | Capstead Mortgage Corp. REIT | | | 622,740 | |
| | 18,153 | | | CBL & Associates Properties, Inc. REIT | | | 169,004 | |
| | 19,554 | | | Chimera Investment Corp. REIT | | | 306,998 | |
| | 26,328 | | | CYS Investments, Inc. REIT | | | 220,365 | |
| | 57,155 | | | DDR Corp. REIT | | | 1,036,792 | |
| | 6,700 | | | Education Realty Trust, Inc. REIT | | | 309,138 | |
| | 21,312 | | | Hospitality Properties Trust REIT | | | 613,785 | |
| | 15,317 | | | Invesco Mortgage Capital, Inc. REIT | | | 209,690 | |
| | 8,246 | | | Ladder Capital Corp. REIT | | | 100,601 | |
| | 42,630 | | | Mack-Cali Realty Corp. REIT | | | 1,151,010 | |
| | 28,370 | | | MFA Financial, Inc. REIT | | | 206,250 | |
| | 31,160 | | | New York Mortgage Trust, Inc. REIT | | | 190,076 | |
| | 24,120 | | | PennyMac Mortgage Investment Trust REIT | | | 391,468 | |
| | 7,446 | | | Piedmont Office Realty Trust, Inc. Class A, REIT | | | 160,387 | |
| | 28,151 | | | Redwood Trust, Inc. REIT | | | 388,765 | |
| | 26,297 | | | Select Income REIT | | | 683,459 | |
| | 22,583 | | | Starwood Property Trust, Inc. REIT | | | 467,920 | |
| | 47,300 | | | Two Harbors Investment Corp. REIT | | | 404,888 | |
| | 16,400 | | | Western Asset Mortgage Capital Corp. REIT | | | 153,996 | |
| | 20,673 | | | WP Glimcher, Inc. REIT | | | 231,331 | |
| | | | | | | | |
| | | | | | | 11,526,844 | |
| | | | | | | | |
| | | | Retailing - 4.7% | |
| | 8,538 | | | Abercrombie & Fitch Co. Class A | | | 152,062 | |
| | 21,824 | | | American Eagle Outfitters, Inc. | | | 347,656 | |
| | 9,600 | | | Big Lots, Inc. | | | 481,056 | |
| | 9,000 | | | Buckle, Inc. | | | 233,910 | |
| | 2,302 | | | Children’s Place, Inc. | | | 184,574 | |
| | 11,045 | | | Express, Inc.* | | | 160,263 | |
| | 6,790 | | | Foot Locker, Inc. | | | 372,500 | |
| | 11,821 | | | Francescas Holding Corp.* | | | 130,622 | |
| | 8,100 | | | Liberty TripAdvisor Holdings, Inc. Class A* | | | 177,228 | |
| | 5,000 | | | Outerwall, Inc. | | | 210,000 | |
| | 18,571 | | | Overstock.com, Inc.* | | | 299,179 | |
| | 14,200 | | | Select Comfort Corp.* | | | 303,596 | |
| | 16,373 | | | Tile Shop Holdings, Inc.* | | | 325,495 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Retailing - 4.7% - (continued) | |
| | 2,200 | | | Ulta Salon Cosmetics & Fragrance, Inc.* | | $ | 536,008 | |
| | 5,398 | | | Wayfair, Inc. Class A* | | | 210,522 | |
| | | | | | | | |
| | | | | | | 4,124,671 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 1.3% | |
| | 4,744 | | | Ambarella, Inc.* | | | 241,043 | |
| | 10,395 | | | MaxLinear, Inc. Class A* | | | 186,902 | |
| | 20,521 | | | Teradyne, Inc. | | | 404,058 | |
| | 10,441 | | | Tessera Technologies, Inc. | | | 319,912 | |
| | | | | | | | |
| | | | | | | 1,151,915 | |
| | | | | | | | |
| | | | Software & Services - 8.7% | |
| | 14,460 | | | Amdocs Ltd. | | | 834,631 | |
| | 20,242 | | | Bankrate, Inc.* | | | 151,410 | |
| | 8,242 | | | Cadence Design Systems, Inc.* | | | 200,281 | |
| | 25,600 | | | Convergys Corp. | | | 640,000 | |
| | 5,190 | | | CSG Systems International, Inc. | | | 209,209 | |
| | 2,700 | | | Ellie Mae, Inc.* | | | 247,455 | |
| | 2,492 | | | Global Payments, Inc. | | | 177,879 | |
| | 10,442 | | | Manhattan Associates, Inc.* | | | 669,645 | |
| | 35,903 | | | Mentor Graphics Corp. | | | 763,298 | |
| | 23,700 | | | Mitek Systems, Inc.* | | | 168,507 | |
| | 6,843 | | | NeuStar, Inc. Class A* | | | 160,879 | |
| | 45,455 | | | Nuance Communications, Inc.* | | | 710,462 | |
| | 7,138 | | | Rackspace Hosting, Inc.* | | | 148,899 | |
| | 11,219 | | | Rovi Corp.* | | | 175,465 | |
| | 5,600 | | | Shutterstock, Inc.* | | | 256,480 | |
| | 5,600 | | | Sykes Enterprises, Inc.* | | | 162,176 | |
| | 13,913 | | | Synopsys, Inc.* | | | 752,415 | |
| | 16,547 | | | Teradata Corp.* | | | 414,833 | |
| | 4,965 | | | Vantiv, Inc. Class A* | | | 281,019 | |
| | 19,074 | | | Wix.com Ltd.* | | | 578,896 | |
| | | | | | | | |
| | | | | | | 7,703,839 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.8% | |
| | 7,310 | | | Arista Networks, Inc.* | | | 470,618 | |
| | 10,389 | | | Avnet, Inc. | | | 420,858 | |
| | 18,891 | �� | | AVX Corp. | | | 256,540 | |
| | 4,751 | | | Cray, Inc.* | | | 142,150 | |
| | 7,391 | | | Insight Enterprises, Inc.* | | | 192,166 | |
| | 6,200 | | | Methode Electronics, Inc. | | | 212,226 | |
| | 4,600 | | | NETGEAR, Inc.* | | | 218,684 | |
| | 35,600 | | | Oclaro, Inc.* | | | 173,728 | |
| | 12,308 | | | Sanmina Corp.* | | | 329,978 | |
| | 2,082 | | | SYNNEX Corp. | | | 197,415 | |
| | 4,850 | | | Tech Data Corp.* | | | 348,473 | |
| | 10,140 | | | Ubiquiti Networks, Inc.* | | | 392,012 | |
| | | | | | | | |
| | | | | | | 3,354,848 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.7% | |
| | 3,700 | | | ATN International, Inc. | | | 287,897 | |
| | 18,100 | | | Inteliquent, Inc. | | | 360,009 | |
| | 7,175 | | | Shenandoah Telecommunications Co. | | | 280,256 | |
| | 17,796 | | | Telephone & Data Systems, Inc. | | | 527,829 | |
| | | | | | | | |
| | | | | | | 1,455,991 | |
| | | | | | | | |
| | | | Transportation - 1.7% | |
| | 16,729 | | | Alaska Air Group, Inc. | | | 975,133 | |
| | 1,383 | | | Allegiant Travel Co. | | | 209,525 | |
| | 7,225 | | | Hawaiian Holdings, Inc.* | | | 274,261 | |
| | | | | | | | |
| | | | | | | 1,458,919 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Utilities - 5.9% | |
| | 58,048 | | | Atlantic Power Corp. | | $ | 143,959 | |
| | 34,107 | | | Great Plains Energy, Inc. | | | 1,036,853 | |
| | 33,300 | | | OGE Energy Corp. | | | 1,090,575 | |
| | 15,872 | | | ONE Gas, Inc. | | | 1,056,916 | |
| | 16,895 | | | Pinnacle West Capital Corp. | | | 1,369,509 | |
| | 7,572 | | | Spark Energy, Inc. Class A | | | 250,255 | |
| | 5,953 | | | UGI Corp. | | | 269,373 | |
| | | | | | | | |
| | | | | | | 5,217,440 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $81,696,459) | | $ | 87,383,167 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $81,696,459) | | $ | 87,383,167 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.0% | |
| | | | Other Investment Pools & Funds - 1.0% | |
| | 836,415 | | | Federated Prime Obligations Fund | | $ | 836,415 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $836,415) | | $ | 836,415 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $82,532,874)^ | | | 100.0 | % | | $ | 88,219,582 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | 18,599 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 88,238,181 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 11,498,246 | |
Unrealized Depreciation | | | (5,811,538 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 5,686,708 | |
| | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 2,203,283 | | | $ | 2,203,283 | | | $ | — | | | $ | — | |
Banks | | | 4,206,321 | | | | 4,206,321 | | | | — | | | | — | |
Capital Goods | | | 7,796,956 | | | | 7,796,956 | | | | — | | | | — | |
Commercial & Professional Services | | | 3,526,054 | | | | 3,526,054 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 1,337,918 | | | | 1,337,918 | | | | — | | | | — | |
Consumer Services | | | 2,478,337 | | | | 2,478,337 | | | | — | | | | — | |
Diversified Financials | | | 812,663 | | | | 812,663 | | | | — | | | | — | |
Energy | | | 4,307,123 | | | | 4,307,123 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 2,245,075 | | | | 2,245,075 | | | | — | | | | — | |
Health Care Equipment & Services | | | 4,441,670 | | | | 4,441,670 | | | | — | | | | — | |
Household & Personal Products | | | 1,154,072 | | | | 1,154,072 | | | | — | | | | — | |
Insurance | | | 4,776,685 | | | | 4,776,685 | | | | — | | | | — | |
Materials | | | 4,311,830 | | | | 4,311,830 | | | | — | | | | — | |
Media | | | 536,271 | | | | 536,271 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 7,254,442 | | | | 7,254,442 | | | | — | | | | — | |
Real Estate | | | 11,526,844 | | | | 11,526,844 | | | | — | | | | — | |
Retailing | | | 4,124,671 | | | | 4,124,671 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 1,151,915 | | | | 1,151,915 | | | | — | | | | — | |
Software & Services | | | 7,703,839 | | | | 7,703,839 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 3,354,848 | | | | 3,354,848 | | | | — | | | | — | |
Telecommunication Services | | | 1,455,991 | | | | 1,455,991 | | | | — | | | | — | |
Transportation | | | 1,458,919 | | | | 1,458,919 | | | | — | | | | — | |
Utilities | | | 5,217,440 | | | | 5,217,440 | | | | — | | | | — | |
Short-Term Investments | | | 836,415 | | | | 836,415 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 88,219,582 | | | $ | 88,219,582 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% | |
| | | | Banks - 3.6% | |
| | 338,087 | | | PNC Financial Services Group, Inc. | | $ | 27,516,901 | |
| | 591,130 | | | Wells Fargo & Co. | | | 27,978,183 | |
| | | | | | | | |
| | | | 55,495,084 | |
| | | | | | | | |
| | | | Capital Goods - 10.0% | |
| | 130,891 | | | General Dynamics Corp. | | | 18,225,263 | |
| | 358,329 | | | Honeywell International, Inc. | | | 41,680,829 | |
| | 159,696 | | | Lockheed Martin Corp. | | | 39,631,756 | |
| | 108,336 | | | Northrop Grumman Corp. | | | 24,080,926 | |
| | 286,627 | | | United Technologies Corp. | | | 29,393,599 | |
| | | | | | | | |
| | | | 153,012,373 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 4.4% | |
| | 816,571 | | | NIKE, Inc. Class B | | | 45,074,719 | |
| | 356,978 | | | VF Corp. | | | 21,950,577 | |
| | | | | | | | |
| | | | 67,025,296 | |
| | | | | | | | |
| | | | Consumer Services - 1.9% | |
| | 233,475 | | | McDonald’s Corp. | | | 28,096,382 | |
| | | | | | | | |
| | | | Diversified Financials - 3.2% | |
| | 398,150 | | | American Express Co. | | | 24,191,594 | |
| | 73,040 | | | BlackRock, Inc. | | | 25,018,391 | |
| | | | | | | | |
| | | | 49,209,985 | |
| | | | | | | | |
| | | | Energy - 3.0% | |
| | 251,245 | | | Exxon Mobil Corp. | | | 23,551,707 | |
| | 280,977 | | | Schlumberger Ltd. | | | 22,219,661 | |
| | | | | | | | |
| | | | 45,771,368 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 7.0% | |
| | 301,555 | | | Costco Wholesale Corp. | | | 47,356,197 | |
| | 297,749 | | | CVS Health Corp. | | | 28,506,489 | |
| | 374,855 | | | Walgreens Boots Alliance, Inc. | | | 31,214,176 | |
| | | | | | | | |
| | | | 107,076,862 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 6.7% | |
| | 825,661 | | | Coca-Cola Co. | | | 37,427,213 | |
| | 1,235,329 | | | Diageo plc | | | 34,509,720 | |
| | 287,319 | | | PepsiCo, Inc. | | | 30,438,575 | |
| | | | | | | | |
| | | | 102,375,508 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.2% | |
| | 474,120 | | | Cardinal Health, Inc. | | | 36,986,101 | |
| | 88,968 | | | McKesson Corp. | | | 16,605,877 | |
| | 539,417 | | | Medtronic plc | | | 46,805,213 | |
| | 282,578 | | | UnitedHealth Group, Inc. | | | 39,900,014 | |
| | | | | | | | |
| | | | 140,297,205 | |
| | | | | | | | |
| | | | Household & Personal Products - 4.8% | |
| | 570,380 | | | Colgate-Palmolive Co. | | | 41,751,816 | |
| | 369,320 | | | Procter & Gamble Co. | | | 31,270,324 | |
| | | | | | | | |
| | | | 73,022,140 | |
| | | | | | | | |
| | | | Insurance - 5.9% | |
| | 345,414 | | | Chubb Ltd. | | | 45,149,064 | |
| | 646,246 | | | Marsh & McLennan Cos., Inc. | | | 44,242,001 | |
| | | | | | | | |
| | | | 89,391,065 | |
| | | | | | | | |
| | | | Materials - 3.4% | |
| | 162,166 | | | Ecolab, Inc. | | | 19,232,888 | |
| | 284,051 | | | Praxair, Inc. | | | 31,924,492 | |
| | | | | | | | |
| | | | 51,157,380 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% - (continued) | |
| | | | Media - 1.2% | |
| | 180,183 | | | Walt Disney Co. | | $ | 17,625,501 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.8% | |
| | 186,920 | | | Amgen, Inc. | | | 28,439,878 | |
| | 330,381 | | | Johnson & Johnson | | | 40,075,215 | |
| | 676,831 | | | Merck & Co., Inc. | | | 38,992,234 | |
| | 102,304 | | | Roche Holding AG | | | 26,995,957 | |
| | | | | | | | |
| | | | | | | 134,503,284 | |
| | | | | | | | |
| | | | Real Estate - 1.8% | | | |
| | 104,842 | | | Public Storage REIT | | | 26,796,567 | |
| | | | | | | | |
| | | | Retailing - 4.8% | | | |
| | 9,440,100 | | | Allstar Co.*(1)(2)(3) | | | 8,968,095 | |
| | 390,340 | | | Lowe’s Cos., Inc. | | | 30,903,218 | |
| | 430,192 | | | TJX Cos., Inc. | | | 33,223,728 | |
| | | | | | | | |
| | | | | | | 73,095,041 | |
| | | | | | | | |
| | | | Software & Services - 10.2% | | | |
| | 330,507 | | | Accenture plc Class A | | | 37,443,138 | |
| | 418,354 | | | Automatic Data Processing, Inc. | | | 38,434,182 | |
| | 968,474 | | | Microsoft Corp. | | | 49,556,814 | |
| | 744,548 | | | Oracle Corp. | | | 30,474,350 | |
| | | | | | | | |
| | | | | | | 155,908,484 | |
| | | | | | | | |
| | | | Transportation - 7.8% | | | |
| | 604,360 | | | Canadian National Railway Co. | | | 35,687,623 | |
| | 427,145 | | | Union Pacific Corp. | | | 37,268,401 | |
| | 424,021 | | | United Parcel Service, Inc. Class B | | | 45,675,542 | |
| | | | | | | | |
| | | | | | | 118,631,566 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,177,021,192) | | $ | 1,488,491,091 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,177,021,192) | | $ | 1,488,491,091 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.2% | |
| | | | Other Investment Pools & Funds - 2.2% | | | |
| | 33,589,889 | | | Fidelity Money Market Class 1 | | $ | 33,589,889 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $33,589,889) | | $ | 33,589,889 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,210,611,081)^ | | | 99.9 | % | | $ | 1,522,080,980 | |
| | | | Other Assets and Liabilities | | | 0.1 | % | | | 1,685,146 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,523,766,126 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 321,951,528 | |
Unrealized Depreciation | | | (10,481,629 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 311,469,899 | |
| | | | |
| (1) | This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of this security was $8,968,095, which represents 0.6% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 08/2011 | | | | 9,440,100 | | | Allstar Co. | | $ | 4,106,619 | |
| | At June 30, 2016, the aggregate value of these securities was $8,968,095, which represents 0.6% of total net assets. |
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At June 30, 2016, the aggregate value of this security was $8,968,095, which represents 0.6% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
REIT | | Real Estate Investment Trust |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 55,495,084 | | | $ | 55,495,084 | | | $ | — | | | $ | — | |
Capital Goods | | | 153,012,373 | | | | 153,012,373 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 67,025,296 | | | | 67,025,296 | | | | — | | | | — | |
Consumer Services | | | 28,096,382 | | | | 28,096,382 | | | | — | | | | — | |
Diversified Financials | | | 49,209,985 | | | | 49,209,985 | | | | — | | | | — | |
Energy | | | 45,771,368 | | | | 45,771,368 | | | | — | | | | — | |
Food & Staples Retailing | | | 107,076,862 | | | | 107,076,862 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 102,375,508 | | | | 67,865,788 | | | | 34,509,720 | | | | — | |
Health Care Equipment & Services | | | 140,297,205 | | | | 140,297,205 | | | | — | | | | — | |
Household & Personal Products | | | 73,022,140 | | | | 73,022,140 | | | | — | | | | — | |
Insurance | | | 89,391,065 | | | | 89,391,065 | | | | — | | | | — | |
Materials | | | 51,157,380 | | | | 51,157,380 | | | | — | | | | — | |
Media | | | 17,625,501 | | | | 17,625,501 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 134,503,284 | | | | 107,507,327 | | | | 26,995,957 | | | | — | |
Real Estate | | | 26,796,567 | | | | 26,796,567 | | | | — | | | | — | |
Retailing | | | 73,095,041 | | | | 64,126,946 | | | | — | | | | 8,968,095 | |
Software & Services | | | 155,908,484 | | | | 155,908,484 | | | | — | | | | — | |
Transportation | | | 118,631,566 | | | | 118,631,566 | | | | — | | | | — | |
Short-Term Investments | | | 33,589,889 | | | | 33,589,889 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,522,080,980 | | | $ | 1,451,607,208 | | | $ | 61,505,677 | | | $ | 8,968,095 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 8,968,095 | | | $ | 8,968,095 | |
Purchases | | | — | | | | — | |
Sales | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | — | | | | — | |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 8,968,095 | | | $ | 8,968,095 | |
| | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $0.
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% | |
| | | | | | | Asset-Backed - Automobile - 1.5% | |
| | $ | | | | 3,800,000 | | | AmeriCredit Automobile Receivables Trust
2.72%, 09/09/2019 | | $ | 3,840,891 | |
| | | | | 8,005,000 | | | Credit Acceptance Auto Loan Trust
1.88%, 03/15/2022(1) | | | 8,019,603 | |
| | | | | | | | First Investors Auto Owner Trust | |
| | | | | 6,495,000 | | | 1.67%, 11/16/2020(1) | | | 6,504,437 | |
| | | | | 836,207 | | | 1.81%, 10/15/2018(1) | | | 836,309 | |
| | | | | 1,750,000 | | | 2.39%, 11/16/2020(1) | | | 1,746,019 | |
| | | | | 1,260,000 | | | GM Financial Automobile Leasing Trust
1.96%, 03/20/2018(1) | | | 1,262,534 | |
| | | | | | | | Santander Drive Auto Receivables Trust | |
| | | | | 1,920,000 | | | 1.82%, 05/15/2019 | | | 1,926,734 | |
| | | | | 1,385,000 | | | 2.25%, 06/17/2019 | | | 1,393,724 | |
| | | | | 4,500,000 | | | 2.36%, 04/15/2020 | | | 4,525,922 | |
| | | | | 8,275,000 | | | Westlake Automobile Receivables Trust
1.58%, 04/15/2020(1) | | | 8,272,616 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 38,328,789 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Finance & Insurance - 14.7% | |
| | | | | 9,180,000 | | | American Money Management Corp. 2.09%, 07/27/2026(1)(2) | | | 9,134,853 | |
| | | | | | | | Apidos CLO | |
| | | | | 6,015,000 | | | 2.08%, 01/19/2025(1)(2) | | | 5,991,902 | |
| | | | | 2,555,000 | | | 2.48%, 07/15/2023(1)(2) | | | 2,503,404 | |
| | | | | 10,350,000 | | | Ares CLO Ltd.
2.15%, 04/17/2026(1)(2) | | | 10,334,434 | |
| | | | | | | | Atlas Senior Loan Fund Ltd. | |
| | | | | 7,610,000 | | | 2.17%, 10/15/2026(1)(2) | | | 7,590,389 | |
| | | | | 4,200,000 | | | 2.18%, 07/16/2026(1)(2) | | | 4,179,302 | |
| | | | | | | | Atrium CDO Corp. | |
| | | | | 790,000 | | | 1.75%, 07/16/2025(1)(2) | | | 779,107 | |
| | | | | 3,535,000 | | | 2.07%, 11/16/2022(1)(2) | | | 3,489,717 | |
| | | | | 10,050,000 | | | Avery Point IV CLO Ltd.
2.16%, 04/25/2026(1)(2) | | | 9,987,188 | |
| | | | | 2,330,000 | | | Babson CLO Ltd.
2.12%, 07/20/2025(1)(2) | | | 2,314,813 | |
| | | | | 1,295,167 | | | Cal Funding II Ltd.
3.47%, 10/25/2027(1) | | | 1,267,600 | |
| | | | | 7,890,000 | | | Carlyle Global Market Strategies Ltd.
2.10%, 04/27/2027(1)(2) | | | 7,855,252 | |
| | | | | | | | Cent CLO Ltd. | |
| | | | | 9,345,000 | | | 2.12%, 01/25/2026(1)(2) | | | 9,267,521 | |
| | | | | 8,090,000 | | | 2.12%, 04/17/2026(1)(2) | | | 8,042,649 | |
| | | | | 6,305,000 | | | 2.12%, 07/27/2026(1)(2) | | | 6,238,249 | |
| | | | | 3,115,000 | | | 2.68%, 04/17/2026(1)(2) | | | 3,035,399 | |
| | | | | | | | CIFC Funding Ltd. | |
| | | | | 8,965,000 | | | 2.14%, 05/24/2026(1)(2) | | | 8,915,917 | |
| | | | | 7,240,000 | | | 2.41%, 08/14/2024(1)(2) | | | 7,137,004 | |
| | | | | 635,700 | | | Consumer Credit Origination Loan Trust
2.82%, 03/15/2021(1) | | | 635,686 | |
| | | | | | | | Dryden Senior Loan Fund | |
| | | | | 10,915,000 | | | 1.98%, 04/18/2026(1)(2) | | | 10,849,292 | |
| | | | | 6,710,000 | | | 2.06%, 07/15/2027(1)(2) | | | 6,672,954 | |
| | | | | 10,870,000 | | | 2.11%, 07/15/2026(1)(2) | | | 10,861,032 | |
| | | | | 1,641,247 | | | Fieldstone Mortgage Investment Corp.
0.72%, 05/25/2036(2) | | | 1,076,691 | |
| | | | | 3,267,261 | | | First Franklin Mortgage Loan Trust
0.69%, 04/25/2036(2) | | | 2,064,790 | |
| | | | | 2,210,000 | | | Flatiron CLO Ltd.
2.53%, 07/17/2026(1)(2) | | | 2,149,431 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Asset-Backed - Finance & Insurance - 14.7% - (continued) | |
| | $ | | | | 3,795,000 | | | Green Tree Agency Advance Funding Trust
3.10%, 10/15/2048(1) | | $ | 3,810,977 | |
| | | | | 4,240,770 | | | GSAMP Trust
0.54%, 01/25/2037(2) | | | 2,507,841 | |
| | | | | 4,965,000 | | | Highbridge Loan Management Ltd.
2.08%, 05/05/2027(1)(2) | | | 4,932,906 | |
| | | | | 3,335,000 | | | ING Investment Management CLO Ltd.
2.19%, 03/14/2022(1)(2) | | | 3,296,941 | |
| | | | | 1,345,000 | | | LCM L.P.
2.22%, 04/15/2022(1)(2) | | | 1,329,450 | |
| | | | | 11,335,000 | | | Limerock CLO
2.13%, 04/18/2026(1)(2) | | | 11,210,564 | |
| | | | | | | | Madison Park Funding Ltd. | |
| | | | | 7,200,000 | | | 1.92%, 10/23/2025(1)(2) | | | 7,137,144 | |
| | | | | 6,520,000 | | | 2.08%, 01/19/2025(1)(2) | | | 6,487,289 | |
| | | | | 9,860,000 | | | 2.13%, 07/20/2026(1)(2) | | | 9,851,875 | |
| | | | | | | | Magnetite CLO Ltd. | |
| | | | | 8,310,000 | | | 2.06%, 07/25/2026(1)(2) | | | 8,297,493 | |
| | | | | 5,835,000 | | | 2.13%, 04/15/2027(1)(2) | | | 5,826,230 | |
| | | | | 6,695,000 | | | 2.59%, 07/25/2026(1)(2) | | | 6,657,541 | |
| | | | | 6,100,000 | | | 5.13%, 01/15/2025(1)(2) | | | 6,055,177 | |
| | | | | | | | Nationstar HECM Loan Trust | |
| | | | | 1,180,000 | | | 2.24%, 06/25/2026(1) | | | 1,179,999 | |
| | | | | 3,487,996 | | | 2.98%, 02/25/2026(1) | | | 3,492,136 | |
| | | | | | | | Neuberger Berman CLO Ltd. | |
| | | | | 8,335,000 | | | 2.10%, 04/15/2026(1)(2) | | | 8,317,238 | |
| | | | | 8,265,000 | | | 2.11%, 08/04/2025(1)(2) | | | 8,238,370 | |
| | | | | 3,030,000 | | | Oak Hill Credit Partners X Ltd.
2.10%, 07/20/2026(1)(2) | | | 3,005,512 | |
| | | | | 7,885,000 | | | Oaktree EIF II Ltd.
2.18%, 02/15/2026(1)(2) | | | 7,873,117 | |
| | | | | 6,780,000 | | | OCP CLO Ltd.
2.16%, 04/17/2027(1)(2) | | | 6,759,138 | |
| | | | | 6,165,000 | | | Ocwen Master Advance Receivables Trust
2.54%, 09/17/2046(1) | | | 6,165,407 | |
| | | | | 9,445,000 | | | OHA Loan Funding Ltd.
2.13%, 02/15/2027(1)(2) | | | 9,453,227 | |
| | | | | 8,960,000 | | | OneMain Financial Issuance Trust
4.10%, 03/20/2028(1) | | | 9,228,370 | |
| | | | | | | | OZLM Funding Ltd. | |
| | | | | 7,495,000 | | | 2.09%, 04/30/2027(1)(2) | | | 7,443,787 | |
| | | | | 10,530,000 | | | 2.18%, 04/17/2026(1)(2) | | | 10,470,074 | |
| | | | | 9,700,000 | | | Race Point CLO Ltd.
2.14%, 04/15/2027(1)(2) | | | 9,627,716 | |
| | | | | 5,250,000 | | | SBA Tower Trust
2.90%, 10/15/2044(1) | | | 5,322,896 | |
| | | | | 518,606 | | | Securitized Asset Backed Receivables LLC
0.54%, 07/25/2036(2) | | | 240,284 | |
| | | | | 7,325,000 | | | Shackleton CLO Ltd.
2.11%, 07/17/2026(1)(2) | | | 7,303,977 | |
| | | | | | | | Sound Point CLO Ltd. | |
| | | | | 6,354,000 | | | 2.01%, 01/21/2026(1)(2) | | | 6,311,943 | |
| | | | | 7,680,000 | | | 2.16%, 04/15/2027(1)(2) | | | 7,658,965 | |
| | | | | 2,137,000 | | | 5.23%, 07/15/2025(1)(2) | | | 1,666,007 | |
| | | | | 3,964,453 | | | SpringCastle America Funding LLC
2.70%, 05/25/2023(1) | | | 3,977,934 | |
| | | | | 5,522,828 | | | Springleaf Funding Trust
2.41%, 12/15/2022(1) | | | 5,526,159 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Asset-Backed - Finance & Insurance - 14.7% - (continued) | |
| | $ | | | | 8,660,000 | | | Symphony CLO Ltd.
2.11%, 07/14/2026(1)(2) | | $ | 8,646,984 | |
| | | | | 7,955,000 | | | Tremen Park Ltd.
2.13%, 04/20/2027(1)(2) | | | 7,943,036 | |
| | | | | | | | Voya CLO Ltd. | |
| | | | | 2,915,000 | | | 2.08%, 07/17/2026(1)(2) | | | 2,901,576 | |
| | | | | 7,550,000 | | | 2.11%, 04/18/2027(1)(2) | | | 7,557,022 | |
| | | | | 10,895,000 | | | 2.13%, 04/18/2026(1)(2) | | | 10,854,264 | |
| | | | | 2,670,000 | | | 2.73%, 04/18/2027(1)(2) | | | 2,648,656 | |
| | | | | | | | | | | | |
| | | | | | | | 389,589,798 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Home Equity - 1.5% | |
| | | | | | | | GSAA Home Equity Trust | |
| | | | | 1,492,346 | | | 0.52%, 12/25/2046(2) | | | 776,526 | |
| | | | | 12,743,199 | | | 0.53%, 02/25/2037(2) | | | 6,709,398 | |
| | | | | 6,654,110 | | | 0.55%, 03/25/2037(2) | | | 3,394,096 | |
| | | | | 4,712,673 | | | 0.63%, 11/25/2036(2) | | | 2,368,333 | |
| | | | | 156,987 | | | 0.69%, 11/25/2036(2) | | | 89,043 | |
| | | | | 1,255,341 | | | 0.75%, 03/25/2036(2) | | | 831,049 | |
| | | | | 744,641 | | | 5.88%, 09/25/2036 | | | 381,505 | |
| | | | | 758,689 | | | 5.99%, 06/25/2036(2) | | | 382,481 | |
| | | | | 1,041,473 | | | 6.30%, 06/25/2036 | | | 524,781 | |
| | | | | 518,192 | | | Morgan Stanley Asset-Backed Securities Capital I, Inc. Trust
0.60%, 06/25/2036(2) | | | 462,293 | |
| | | | | 1,727,952 | | | Morgan Stanley Mortgage Loan Trust
0.62%, 11/25/2036(2) | | | 745,387 | |
| | | | | 20,275,000 | | | NRZ Advance Receivables Trust
3.30%, 08/17/2048(1) | | | 20,430,712 | |
| | | | | 436,248 | | | Renaissance Home Equity Loan Trust
5.91%, 04/25/2037 | | | 222,487 | |
| | | | | | | | Soundview Home Loan Trust | |
| | | | | 3,225,000 | | | 0.63%, 07/25/2037(2) | | | 1,991,091 | |
| | | | | 1,090,000 | | | 0.70%, 11/25/2036(2) | | | 722,235 | |
| | | | | | | | | | | | |
| | | | | | | | 40,031,417 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Mortgage - Backed Securities - 8.5% | |
| | | | | | | | Banc of America Commercial Mortgage Trust | | | | |
| | | | | 2,860,000 | | | 3.26%, 09/15/2048(1)(2) | | | 1,521,483 | |
| | | | | 535,000 | | | 3.71%, 09/15/2048 | | | 583,973 | |
| | | | | 3,230,890 | | | 5.49%, 02/10/2051 | | | 3,325,395 | |
| | | | | | | | Bear Stearns Commercial Mortgage Securities, Inc. | | | | |
| | | | | 1,105,000 | | | 5.30%, 10/12/2042(2) | | | 1,095,762 | |
| | | | | 2,176,441 | | | 5.33%, 02/11/2044 | | | 2,215,784 | |
| | | | | | | | Citigroup Commercial Mortgage Trust | | | | |
| | | | | 25,323,144 | | | 1.28%, 07/10/2047(2)(3) | | | 1,614,702 | |
| | | | | 27,386,858 | | | 1.31%, 04/10/2048(2)(3) | | | 1,934,169 | |
| | | | | 465,000 | | | 2.94%, 04/10/2048 | | | 481,805 | |
| | | | | 1,300,000 | | | 3.11%, 04/10/2048(1) | | | 867,077 | |
| | | | | 690,000 | | | 3.19%, 04/10/2048 | | | 728,104 | |
| | | | | 1,535,000 | | | 3.76%, 06/10/2048 | | | 1,689,254 | |
| | | | | 970,000 | | | 3.82%, 11/10/2048 | | | 1,064,598 | |
| | | | | 230,000 | | | 3.86%, 05/10/2047 | | | 254,021 | |
| | | | | 1,175,000 | | | 4.56%, 03/10/2047(1)(2) | | | 731,469 | |
| | | | | 445,000 | | | 5.06%, 03/10/2047(1)(2) | | | 358,605 | |
| | | | | 5,601,167 | | | Citigroup/Deutsche Bank Commercial Mortgage Trust
5.32%, 12/11/2049 | | | 5,660,045 | |
| | | | | 1,100,000 | | | Cobalt CMBS Commercial Mortgage Trust
5.25%, 08/15/2048 | | | 1,100,641 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Commercial Mortgage - Backed Securities - 8.5% - (continued) | |
| | $ | | | | 2,043,701 | | | Commercial Mortgage Loan Trust
6.30%, 12/10/2049(2) | | $ | 2,119,912 | |
| | | | | | | | Commercial Mortgage Pass-Through Certificates | | | | |
| | | | | 9,973,777 | | | 0.85%, 02/10/2047(2) | | | 363,798 | |
| | | | | 970,000 | | | 2.82%, 10/15/2045 | | | 1,011,851 | |
| | | | | 535,000 | | | 4.24%, 02/10/2047(2) | | | 605,182 | |
| | | | | 1,315,000 | | | 4.75%, 10/15/2045(1)(2) | | | 950,403 | |
| | | | | | | | Commercial Mortgage Trust | |
| | | | | 8,205,964 | | | 2.13%, 07/10/2046(1)(2)(3) | | | 536,353 | |
| | | | | 1,035,000 | | | 2.54%, 12/10/2045 | | | 1,066,825 | |
| | | | | 1,670,000 | | | 2.85%, 10/15/2045 | | | 1,750,833 | |
| | | | | 785,000 | | | 3.10%, 03/10/2046 | | | 832,257 | |
| | | | | 350,000 | | | 3.18%, 02/10/2048 | | | 370,152 | |
| | | | | 210,000 | | | 3.21%, 03/10/2046 | | | 223,998 | |
| | | | | 20,000 | | | 3.29%, 12/10/2044 | | | 21,397 | |
| | | | | 1,760,000 | | | 3.35%, 02/10/2048 | | | 1,871,396 | |
| | | | | 6,780,000 | | | 3.42%, 03/10/2031(1) | | | 7,250,133 | |
| | | | | 1,260,000 | | | 3.61%, 06/10/2046(2) | | | 1,370,697 | |
| | | | | 705,000 | | | 3.62%, 07/10/2050 | | | 759,882 | |
| | | | | 450,133 | | | 3.80%, 08/10/2047 | | | 495,350 | |
| | | | | 1,140,000 | | | 3.90%, 07/10/2050 | | | 1,252,667 | |
| | | | | 575,125 | | | 3.96%, 03/10/2047 | | | 633,579 | |
| | | | | 1,955,000 | | | 4.02%, 07/10/2045 | | | 2,174,241 | |
| | | | | 630,000 | | | 4.07%, 02/10/2047(2) | | | 704,711 | |
| | | | | 1,045,000 | | | 4.21%, 08/10/2046(2) | | | 1,177,452 | |
| | | | | 2,120,000 | | | Community or Commercial Mortgage Trust
3.69%, 08/10/2047 | | | 2,290,748 | |
| | | | | 348,511 | | | Credit Suisse Commercial Mortgage Trust
5.89%, 06/15/2039(2) | | | 354,546 | |
| | | | | | | | Credit Suisse First Boston Mortgage Securities Corp. | | | | |
| | | | | 26,178 | | | 4.77%, 07/15/2037 | | | 26,167 | |
| | | | | 1,159,162 | | | 4.88%, 04/15/2037 | | | 1,056,764 | |
| | | | | | | | CSAIL Commercial Mortgage Trust | |
| | | | | 65,391,281 | | | 1.03%, 06/15/2057(2)(3) | | | 3,555,801 | |
| | | | | 3,923,841 | | | 1.21%, 11/15/2048(2)(3) | | | 258,746 | |
| | | | | 920,000 | | | 3.51%, 08/15/2048(2) | | | 652,507 | |
| | | | | 7,243,000 | | | 3.72%, 08/15/2048 | | | 7,914,512 | |
| | | | | 10,375,117 | | | DBUBS Mortgage Trust
1.05%, 11/10/2046(1)(2)(3) | | | 251,237 | |
| | | | | 3,175,000 | | | Four Times Square Trust Commercial Mortgage Pass-Through Certificates
5.40%, 12/13/2028(1) | | | 3,597,699 | |
| | | | | | | | FREMF Mortgage Trust | |
| | | | | 4,680,000 | | | 3.08%, 10/25/2047(1)(2) | | | 4,739,762 | |
| | | | | 5,485,000 | | | 5.42%, 09/25/2043(1)(2) | | | 6,068,351 | |
| | | | | 2,236,782 | | | GE Business Loan Trust
1.44%, 05/15/2034(1)(2) | | | 1,816,923 | |
| | | | | | | | GS Mortgage Securities Trust | �� |
| | | | | 52,100,726 | | | 0.31%, 07/10/2046(2)(3) | | | 380,981 | |
| | | | | 7,273,112 | | | 1.59%, 08/10/2044(1)(2)(3) | | | 374,525 | |
| | | | | 100,000 | | | 2.94%, 02/10/2046 | | | 105,299 | |
| | | | | 4,340,000 | | | 2.95%, 11/05/2034(1) | | | 4,533,457 | |
| | | | | 1,060,000 | | | 3.58%, 06/10/2047(1) | | | 607,847 | |
| | | | | 1,580,166 | | | 3.67%, 04/10/2047(1) | | | 820,169 | |
| | | | | 4,110,000 | | | 4.00%, 04/10/2047 | | | 4,572,440 | |
| | | | | 785,121 | | | 4.07%, 01/10/2047 | | | 877,214 | |
| | | | | 1,115,000 | | | 4.66%, 11/10/2047(1)(2) | | | 860,536 | |
| | | | | 2,960,000 | | | 5.03%, 04/10/2047(1)(2) | | | 2,218,543 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Commercial Mortgage - Backed Securities - 8.5% - (continued) | |
| | | | | | | | Hilton USA Trust | |
| | $ | | | | 5,985,000 | | | 2.66%, 11/05/2030(1) | | $ | 6,010,555 | |
| | | | | 1,088,057 | | | 3.21%, 11/05/2030(1)(2) | | | 1,087,355 | |
| | | | | 1,675,924 | | | JP Morgan Chase Commercial Mortgage Securities Corp.
4.56%, 12/15/2047(1)(2) | | | 1,324,193 | |
| | | | | | | | JP Morgan Chase Commercial Mortgage Securities Trust | | | | |
| | | | | 8,800,578 | | | 1.95%, 02/12/2051(2) | | | 8,501,359 | |
| | | | | 2,185,000 | | | 2.73%, 10/15/2045(1)(2) | | | 1,210,927 | |
| | | | | 3,476,437 | | | 3.91%, 05/05/2030(1) | | | 3,734,849 | |
| | | | | 470,000 | | | 4.00%, 08/15/2046(1)(2) | | | 378,085 | |
| | | | | 1,075,000 | | | 4.81%, 10/15/2045(1)(2) | | | 1,006,188 | |
| | | | | 8,592,249 | | | 5.34%, 05/15/2047 | | | 8,668,298 | |
| | | | | 1,614,710 | | | 5.72%, 02/15/2051 | | | 1,667,121 | |
| | | | | | | | JPMBB Commercial Mortgage Securities Trust | | | | |
| | | | | 29,805,943 | | | 1.02%, 09/15/2047(2)(3) | | | 1,181,675 | |
| | | | | 8,324,778 | | | 1.09%, 05/15/2048(2)(3) | | | 374,572 | |
| | | | | 810,060 | | | 3.61%, 05/15/2048 | | | 878,453 | |
| | | | | 415,000 | | | 3.78%, 08/15/2047 | | | 456,179 | |
| | | | | 1,300,000 | | | 3.88%, 10/15/2048(1)(2) | | | 924,743 | |
| | | | | | | | LB-UBS Commercial Mortgage Trust | |
| | | | | 3,494,251 | | | 5.86%, 07/15/2040(2) | | | 3,575,920 | |
| | | | | 1,225,839 | | | 6.25%, 04/15/2041(2) | | | 1,292,172 | |
| | | | | 567,610 | | | Lehman Brothers Small Balance Commercial
5.16%, 09/25/2030(1)(2) | | | 569,739 | |
| | | | | | | | Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | |
| | | | | 4,359,167 | | | 5.38%, 08/12/2048 | | | 4,405,432 | |
| | | | | 4,583,364 | | | 5.70%, 09/12/2049 | | | 4,767,607 | |
| | | | | 5,833,407 | | | 5.81%, 06/12/2050(2) | | | 6,004,110 | |
| | | | | | | | Morgan Stanley Bank of America Merrill Lynch Trust | | | | |
| | | | | 1,613,848 | | | 1.27%, 10/15/2048(2)(3) | | | 119,247 | |
| | | | | 16,222,358 | | | 1.30%, 12/15/2047(2)(3) | | | 987,598 | |
| | | | | 940,000 | | | 3.06%, 10/15/2048(1) | | | 643,099 | |
| | | | | 1,080,000 | | | 3.13%, 12/15/2048 | | | 1,143,770 | |
| | | | | 1,320,000 | | | 3.18%, 08/15/2045 | | | 1,406,154 | |
| | | | | 4,320,000 | | | 3.74%, 08/15/2047 | | | 4,734,206 | |
| | | | | 1,530,000 | | | 4.06%, 02/15/2047 | | | 1,709,961 | |
| | | | | 795,172 | | | 4.26%, 10/15/2046(2) | | | 898,487 | |
| | | | | 1,605,000 | | | 4.50%, 08/15/2045(1) | | | 1,133,469 | |
| | | | | | | | Morgan Stanley Capital I Trust | |
| | | | | 44,033,173 | | | 0.63%, 09/15/2047(1)(2)(3) | | | 745,592 | |
| | | | | 4,920,000 | | | 3.47%, 08/11/2029(1) | | | 5,245,702 | |
| | | | | 1,460,000 | | | 5.35%, 07/15/2049(1)(2) | | | 1,130,424 | |
| | | | | 920,000 | | | 5.40%, 10/12/2052(1)(2) | | | 875,070 | |
| | | | | 482,780 | | | 5.57%, 12/15/2044 | | | 499,372 | |
| | | | | 2,104,000 | | | 5.69%, 04/15/2049(2) | | | 2,143,510 | |
| | | | | 1,401,045 | | | 5.81%, 12/12/2049 | | | 1,454,714 | |
| | | | | 570,000 | | | 6.48%, 01/11/2043(1)(2) | | | 567,070 | |
| | | | | | | | Morgan Stanley Re-Remic Trust | |
| | | | | 837,574 | | | 5.99%, 08/12/2045(1)(2) | | | 852,530 | |
| | | | | 837,574 | | | 6.25%, 08/15/2045(1)(2) | | | 854,429 | |
| | | | | 1,365,000 | | | SFAVE Commercial Mortgage Securities Trust
3.87%, 01/05/2043(1)(2) | | | 1,347,904 | |
| | | | | | | | UBS-Barclays Commercial Mortgage Trust | |
| | | | | 1,930,000 | | | 3.09%, 08/10/2049 | | | 2,044,641 | |
| | | | | 4,295,000 | | | 3.19%, 03/10/2046 | | | 4,548,585 | |
| | | | | 575,000 | | | 3.24%, 04/10/2046 | | | 610,986 | |
| | | | | 985,000 | | | 4.22%, 03/10/2046(1)(2) | | | 673,504 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Commercial Mortgage - Backed Securities - 8.5% - (continued) | |
| | $ | | | | 683,862 | | | Wachovia Bank Commercial Mortgage Trust
5.31%, 11/15/2048 | | $ | 686,793 | |
| | | | | | | | Wells Fargo Commercial Mortgage Trust | |
| | | | | 21,709,244 | | | 1.34%, 05/15/2048(2)(3) | | | 1,556,809 | |
| | | | | 1,665,000 | | | 2.92%, 10/15/2045 | | | 1,750,879 | |
| | | | | 440,000 | | | 3.41%, 12/15/2047 | | | 470,831 | |
| | | | | 40,000 | | | 3.82%, 08/15/2050 | | | 43,979 | |
| | | | | 390,000 | | | 3.96%, 12/15/2047(1)(2) | | | 282,223 | |
| | | | | 430,000 | | | 4.24%, 05/15/2048(2) | | | 331,764 | |
| | | | | 665,000 | | | 4.37%, 06/15/2048(2) | | | 497,504 | |
| | | | | | | | WF-RBS Commercial Mortgage Trust | |
| | | | | 255,115 | | | 2.88%, 12/15/2045 | | | 267,399 | |
| | | | | 550,000 | | | 3.07%, 03/15/2045 | | | 580,758 | |
| | | | | 175,000 | | | 3.44%, 04/15/2045 | | | 188,104 | |
| | | | | 895,000 | | | 3.67%, 11/15/2044 | | | 970,840 | |
| | | | | 6,700,000 | | | 3.68%, 08/15/2047 | | | 7,310,114 | |
| | | | | 120,000 | | | 3.88%, 08/15/2046 | | | 132,260 | |
| | | | | 4,775,000 | | | 4.00%, 05/15/2047 | | | 5,315,244 | |
| | | | | 4,145,000 | | | 4.05%, 03/15/2047 | | | 4,628,196 | |
| | | | | 755,286 | | | 4.10%, 03/15/2047 | | | 845,982 | |
| | | | | 315,000 | | | 4.49%, 03/15/2048(1)(2) | | | 286,913 | |
| | | | | 550,000 | | | 4.90%, 06/15/2044(1)(2) | | | 623,318 | |
| | | | | 710,000 | | | 5.00%, 06/15/2044(1)(2) | | | 608,229 | |
| | | | | 815,000 | | | 5.00%, 04/15/2045(1)(2) | | | 557,062 | |
| | | | | 1,045,000 | | | 5.76%, 04/15/2045(1)(2) | | | 1,055,793 | |
| | | | | | | | | | | | |
| | | | | | | | 224,085,280 | |
| | | | | | | | | | | | |
| | | | | | | Whole Loan Collateral CMO - 5.6% | |
| | | | | | | | Adjustable Rate Mortgage Trust | |
| | | | | 1,337,925 | | | 0.71%, 01/25/2036(2) | | | 1,109,113 | |
| | | | | 799,949 | | | 0.72%, 11/25/2035(2) | | | 735,606 | |
| | | | | 1,292,726 | | | 0.95%, 01/25/2036(2) | | | 1,108,527 | |
| | | | | | | | Alternative Loan Trust | |
| | | | | 339,029 | | | 0.72%, 01/25/2036(2) | | | 275,377 | |
| | | | | 2,411,620 | | | 0.77%, 11/25/2035(2) | | | 1,907,474 | |
| | | | | 2,320,026 | | | 5.75%, 05/25/2036 | | | 1,691,597 | |
| | | | | | | | American Home Mortgage Assets Trust | |
| | | | | 1,201,717 | | | 0.64%, 09/25/2046(2) | | | 815,318 | |
| | | | | 2,035,588 | | | 1.38%, 10/25/2046(2) | | | 1,409,294 | |
| | | | | | | | Banc of America Funding Trust | |
| | | | | 274,456 | | | 0.64%, 10/20/2036(2) | | | 219,512 | |
| | | | | 659,177 | | | 0.68%, 02/20/2047(2) | | | 541,302 | |
| | | | | 5,141,618 | | | 0.75%, 05/20/2047(2) | | | 4,194,691 | |
| | | | | 6,246,849 | | | 5.77%, 05/25/2037(2) | | | 5,484,264 | |
| | | | | 268,066 | | | 5.85%, 01/25/2037 | | | 225,519 | |
| | | | | | | | BCAP LLC Trust | |
| | | | | 1,157,414 | | | 0.62%, 01/25/2037(2) | | | 921,291 | |
| | | | | 3,028,178 | | | 0.63%, 03/25/2037(2) | | | 2,538,658 | |
| | | | | 866,818 | | | Bear Stearns Adjustable Rate Mortgage Trust
2.66%, 10/25/2035(2) | | | 832,224 | |
| | | | | 3,337,492 | | | Bear Stearns Alt-A Trust
0.95%, 01/25/2036(2) | | | 2,677,169 | |
| | | | | 1,953,792 | | | Bear Stearns Mortgage Funding Trust
0.63%, 10/25/2036(2) | | | 1,502,010 | |
| | | | | 551,256 | | | CHL Mortgage Pass-Through Trust
2.72%, 03/20/2036(2) | | | 421,295 | |
| | | | | | | | Countrywide Home Loans, Inc. | |
| | | | | 869,852 | | | 2.64%, 11/20/2035(2) | | | 695,592 | |
| | | | | 5,102,819 | | | 2.77%, 09/25/2047(2) | | | 4,384,929 | |
| | | | | 936,546 | | | 2.96%, 04/20/2036(2) | | | 672,488 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Whole Loan Collateral CMO - 5.6% - (continued) | |
| | $ | | | | 3,224,784 | | | Credit Suisse First Boston Mortgage Securities Corp.
5.50%, 06/25/2035 | | $ | 2,994,338 | |
| | | | | 2,172,152 | | | DSLA Mortgage Loan Trust
1.33%, 03/19/2046(2) | | | 1,662,900 | |
| | | | | | | | GMAC Mortgage Corp. Loan Trust | |
| | | | | 3,429,535 | | | 3.11%, 09/19/2035(2) | | | 3,137,987 | |
| | | | | 63,554 | | | 3.33%, 04/19/2036(2) | | | 54,139 | |
| | | | | | | | GSR Mortgage Loan Trust | |
| | | | | 4,275,762 | | | 0.75%, 01/25/2037(2) | | | 2,474,908 | |
| | | | | 4,475,949 | | | 2.94%, 01/25/2036(2) | | | 4,090,717 | |
| | | | | | | | HarborView Mortgage Loan Trust | |
| | | | | 2,810,131 | | | 0.64%, 01/19/2038(2) | | | 2,328,599 | |
| | | | | 8,083,620 | | | 0.69%, 12/19/2036(2) | | | 5,998,639 | |
| | | | | 1,106,439 | | | 1.15%, 01/19/2035(2) | | | 725,518 | |
| | | | | | | | IndyMac Index Mortgage Loan Trust | |
| | | | | 3,669,152 | | | 0.73%, 07/25/2035(2) | | | 2,951,680 | |
| | | | | 2,122,259 | | | 0.74%, 01/25/2036(2) | | | 1,345,096 | |
| | | | | 3,004,064 | | | 0.85%, 07/25/2046(2) | | | 1,676,368 | |
| | | | | 1,830,517 | | | 2.86%, 01/25/2036(2) | | | 1,700,725 | |
| | | | | 3,148,376 | | | 2.92%, 03/25/2036(2) | | | 2,451,882 | |
| | | | | 1,388,929 | | | 2.94%, 08/25/2035(2) | | | 1,038,362 | |
| | | | | | | | JP Morgan Mortgage Trust | |
| | | | | 2,317,823 | | | 2.74%, 09/25/2035(2) | | | 2,202,380 | |
| | | | | 585,857 | | | 2.86%, 04/25/2037(2) | | | 514,454 | |
| | | | | 1,380,534 | | | 3.03%, 05/25/2036(2) | | | 1,233,855 | |
| | | | | 2,146,676 | | | Lehman XS Trust
0.66%, 07/25/2046(2) | | | 1,665,030 | |
| | | | | | | | LSTAR Securities Investment Trust | |
| | | | | 6,530,807 | | | 2.46%, 01/01/2020(1)(2) | | | 6,416,518 | |
| | | | | 8,938,364 | | | 2.46%, 04/01/2020(1)(2) | | | 8,759,597 | |
| | | | | 7,896,026 | | | 2.46%, 10/01/2020(1)(2) | | | 7,757,845 | |
| | | | | | | | Luminent Mortgage Trust | |
| | | | | 308,003 | | | 0.65%, 10/25/2046(2) | | | 260,121 | |
| | | | | 1,397,108 | | | 0.71%, 11/25/2035(2) | | | 1,246,899 | |
| | | | | | | | Merrill Lynch Mortgage Investors Trust | |
| | | | | 111,953 | | | 2.84%, 12/25/2035(2) | | | 105,829 | |
| | | | | 1,185,187 | | | 2.95%, 07/25/2035(2) | | | 932,548 | |
| | | | | 217,014 | | | Morgan Stanley Mortgage Loan Trust
3.00%, 05/25/2036(2) | | | 153,716 | |
| | | | | 8,142,528 | | | New Residential Mortgage Loan Trust
3.75%, 11/25/2035(1)(2) | | | 8,408,267 | |
| | | | | 110,091 | | | Nomura Asset Acceptance Corp. Alternative Loan Trust
3.88%, 06/25/2036(2) | | | 82,445 | |
| | | | | 2,388,295 | | | RBSGC Mortgage Pass-Through Certificates
6.25%, 01/25/2037 | | | 2,147,915 | |
| | | | Residential Accredit Loans, Inc. | |
| | | | | 383,315 | | | 0.67%, 02/25/2046(2) | | | 166,267 | |
| | | | | 809,627 | | | 0.75%, 04/25/2036(2) | | | 578,256 | |
| | | | | 756,662 | | | 1.24%, 09/25/2046(2) | | | 525,389 | |
| | | | | 5,370,561 | | | 1.66%, 11/25/2037(2) | | | 3,555,025 | |
| | | | | 1,338,229 | | | 6.00%, 12/25/2035 | | | 1,142,772 | |
| | | | Residential Asset Securitization Trust | |
| | | | | 2,867,137 | | | 0.90%, 03/25/2035(2) | | | 2,211,502 | |
| | | | | 1,473,663 | | | 6.25%, 11/25/2036 | | | 979,230 | |
| | | | | 733,881 | | | Sequoia Mortgage Trust
2.84%, 07/20/2037(2) | | | 584,794 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 31.8% - (continued) | |
| | | | | | | Whole Loan Collateral CMO - 5.6% - (continued) | |
| | $ | | | | 1,350,088 | | | Structured Adjustable Rate Mortgage Loan Trust
0.75%, 09/25/2034(2) | | $ | 1,035,046 | |
| | | | | 6,255,000 | | | Structured Agency Credit Risk Debt Notes
2.10%, 04/25/2024(2) | | | 6,254,998 | |
| | | | Towd Point Mortgage Trust | |
| | | | | 2,023,407 | | | 2.75%, 02/25/2055(1)(2) | | | 2,044,590 | |
| | | | | 5,827,011 | | | 2.75%, 08/25/2055(1)(2) | | | 5,881,639 | |
| | | | | 1,670,476 | | | 3.00%, 03/25/2054(1)(2) | | | 1,687,311 | |
| | | | WaMu Mortgage Pass-Through Certificates Trust | | | | |
| | | | | 1,111,764 | | | 0.87%, 06/25/2044(2) | | | 989,429 | |
| | | | | 631,867 | | | 2.18%, 11/25/2046(2) | | | 558,965 | |
| | | | | 2,004,865 | | | 2.51%, 06/25/2037(2) | | | 1,704,660 | |
| | | | Wells Fargo Commercial Mortgage Trust | |
| | | | | 46,703,263 | | | 1.34%, 09/15/2057(2)(3) | | | 3,235,224 | |
| | | | | 3,250,000 | | | 2.88%, 05/15/2048(1)(2) | | | 1,605,688 | |
| | | | | 1,685,000 | | | 3.36%, 09/15/2058(1) | | | 973,062 | |
| | | | | 1,015,000 | | | 3.84%, 09/15/2058 | | | 1,121,281 | |
| | | | | | | | | | | | |
| | | | 147,717,655 | |
| | | | | | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $840,061,191) | | $ | 839,752,939 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 35.5% | |
| | | | | | | Advertising - 0.0% | |
| | | | | 100,000 | | | Lamar Media Corp.
5.75%, 02/01/2026(1) | | $ | 104,063 | |
| | | | | | | | | | | | |
| | | | Aerospace/Defense - 0.2% | |
| | | | | 690,000 | | | BAE Systems Holdings, Inc.
2.85%, 12/15/2020(1) | | | 705,054 | |
| | | | | 730,000 | | | BAE Systems plc
4.75%, 10/11/2021(1) | | | 815,036 | |
| | | | Lockheed Martin Corp. | |
| | | | | 1,385,000 | | | 2.50%, 11/23/2020 | | | 1,429,136 | |
| | | | | 1,931,000 | | | 4.70%, 05/15/2046 | | | 2,276,207 | |
| | | | | | | | | | | | |
| | | | 5,225,433 | |
| | | | | | | | | | | | |
| | | | Agriculture - 0.4% | |
| | | | | 778,000 | | | Altria Group, Inc.
10.20%, 02/06/2039 | | | 1,441,775 | |
| | | | | 2,515,000 | | | BAT International Finance plc
2.75%, 06/15/2020(1) | | | 2,607,932 | |
| | | | Imperial Tobacco Finance plc | |
| | | | | 1,420,000 | | | 2.05%, 07/20/2018(1) | | | 1,435,920 | |
| | | | | 3,000,000 | | | 2.95%, 07/21/2020(1) | | | 3,089,346 | |
| | | | | 2,640,000 | | | Reynolds American, Inc.
3.25%, 06/12/2020 | | | 2,790,696 | |
| | | | | | | | | | | | |
| | | | 11,365,669 | |
| | | | | | | | | | | | |
| | | | | | | Airlines - 0.0% | |
| | | | | 210,000 | | | Aircastle Ltd.
5.00%, 04/01/2023 | | | 213,402 | |
| | | | | | | | | | | | |
| | | | | | | Apparel - 0.1% | |
| | | | | 540,000 | | | Hanesbrands, Inc.
4.88%, 05/15/2026(1) | | | 541,944 | |
| | | | | 1,770,000 | | | William Carter Co.
5.25%, 08/15/2021 | | | 1,831,950 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,373,894 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Auto Manufacturers - 1.6% | |
| | $ | | | | 4,875,000 | | | Daimler Finance North America LLC
1.65%, 03/02/2018(1) | | $ | 4,901,847 | |
| | | | | | | | Ford Motor Credit Co. LLC | |
| | | | | 9,530,000 | | | 1.46%, 03/27/2017 | | | 9,546,887 | |
| | | | | 745,000 | | | 2.24%, 06/15/2018 | | | 752,511 | |
| | | | | 3,380,000 | | | 3.20%, 01/15/2021 | | | 3,481,684 | |
| | | | | 1,985,000 | | | 4.25%, 02/03/2017 | | | 2,016,720 | |
| | | | | | | | General Motors Co. | |
| | | | | 2,045,000 | | | 6.60%, 04/01/2036 | | | 2,345,018 | |
| | | | | 480,000 | | | 6.75%, 04/01/2046 | | | 569,369 | |
| | | | | | | | General Motors Financial Co., Inc. | |
| | | | | 3,150,000 | | | 2.40%, 04/10/2018 | | | 3,174,746 | |
| | | | | 4,985,000 | | | 3.50%, 07/10/2019 | | | 5,158,204 | |
| | | | | 1,950,000 | | | 3.70%, 05/09/2023 | | | 1,960,130 | |
| | | | | 4,045,000 | | | 4.75%, 08/15/2017 | | | 4,173,773 | |
| | | | | 2,810,000 | | | 5.25%, 03/01/2026 | | | 3,054,709 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 41,135,598 | |
| | | | | | | | | | | | |
| | | | | | | Auto Parts & Equipment - 0.0% | |
| | | | | 330,000 | | | ZF North America Capital, Inc.
4.75%, 04/29/2025(1) | | | 334,330 | |
| | | | | | | | | | | | |
| | | | | | | Beverages - 1.9% | |
| | | | | | | | Anheuser-Busch InBev Finance, Inc. | |
| | | | | 4,320,000 | | | 1.90%, 02/01/2019 | | | 4,393,353 | |
| | | | | 850,000 | | | 2.15%, 02/01/2019 | | | 868,149 | |
| | | | | 13,640,000 | | | 3.30%, 02/01/2023 | | | 14,372,059 | |
| | | | | 4,245,000 | | | 4.70%, 02/01/2036 | | | 4,770,225 | |
| | | | | 14,235,000 | | | 4.90%, 02/01/2046 | | | 16,681,171 | |
| | | | | | | | Anheuser-Busch InBev Worldwide, Inc. | |
| | | | | 1,440,000 | | | 2.50%, 07/15/2022 | | | 1,464,997 | |
| | | | | 2,220,000 | | | 3.75%, 07/15/2042 | | | 2,221,292 | |
| | | | | | | | Molson Coors Brewing Co. | |
| | | | | 915,000 | | | 2.10%, 07/15/2021(4) | | | 917,782 | |
| | | | | 1,485,000 | | | 4.20%, 07/15/2046(4) | | | 1,491,350 | |
| | | | | 2,650,000 | | | Pernod Ricard S.A.
3.25%, 06/08/2026(1) | | | 2,712,230 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 49,892,608 | |
| | | | | | | | | | | | |
| | | | | | | Biotechnology - 0.1% | |
| | | | | 1,065,000 | | | Celgene Corp.
4.63%, 05/15/2044 | | | 1,107,712 | |
| | | | | 1,095,000 | | | Gilead Sciences, Inc.
3.25%, 09/01/2022 | | | 1,166,063 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,273,775 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Banks - 10.3% | |
| | EUR | | | | 1,270,000 | | | Allied Irish Banks plc
7.38%, 12/03/2020(2)(5)(6) | | | 1,236,733 | |
| | | | | | | | Banco Bilbao Vizcaya Argentaria S.A. | |
| | | | | 4,000,000 | | | 7.00%, 02/19/2019(2)(5)(6) | | | 3,814,414 | |
| | | | | 600,000 | | | 8.88%, 04/14/2021(2)(5)(6) | | | 656,721 | |
| | $ | | | | 4,000,000 | | | 9.00%, 05/09/2018(2)(5)(6) | | | 3,983,128 | |
| | | | | | | | Banco Santander S.A. | |
| | EUR | | | | 2,300,000 | | | 6.25%, 03/12/2019(2)(5)(6) | | | 2,156,799 | |
| | | | | 1,000,000 | | | 6.25%, 09/11/2021(2)(5)(6) | | | 936,185 | |
| | | | | | | | Bank of America Corp. | |
| | $ | | | | 2,670,000 | | | 2.63%, 04/19/2021 | | | 2,710,950 | |
| | | | | 1,370,000 | | | 3.50%, 04/19/2026 | | | 1,415,742 | |
| | | | | 3,000,000 | | | 4.00%, 01/22/2025 | | | 3,057,933 | |
| | | | | 5,570,000 | | | 4.20%, 08/26/2024 | | | 5,757,809 | |
| | | | | 1,540,000 | | | 5.00%, 01/21/2044 | | | 1,781,278 | |
| | | | | 4,130,000 | | | 7.75%, 05/14/2038 | | | 5,815,432 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Commercial Banks - 10.3% - (continued) | |
| | EUR | | | | 2,925,000 | | | Bank of Ireland
7.38%, 06/18/2020(2)(5)(6) | | $ | 3,001,788 | |
| | $ | | | | 6,720,000 | | | Bank of Nova Scotia
4.50%, 12/16/2025 | | | 6,981,852 | |
| | | | | 7,200,000 | | | Barclays Bank plc
6.05%, 12/04/2017(1) | | | 7,540,070 | |
| | EUR | | | | 2,020,000 | | | Barclays plc
8.00%, 12/15/2020(2)(6) | | | 2,088,390 | |
| | $ | | | | 1,940,000 | | | BNP Paribas S.A.
7.63%, 03/30/2021(1)(2)(6) | | | 1,940,000 | |
| | | | | | | | BPCE S.A. | |
| | | | | 1,410,000 | | | 5.15%, 07/21/2024(1) | | | 1,467,253 | |
| | | | | 3,305,000 | | | 5.70%, 10/22/2023(1) | | | 3,544,817 | |
| | | | | 2,880,000 | | | Capital One Financial Corp.
6.15%, 09/01/2016 | | | 2,902,401 | |
| | | | | | | | Capital One NA/Mclean VA | |
| | | | | 9,735,000 | | | 1.65%, 02/05/2018 | | | 9,743,197 | |
| | | | | 2,645,000 | | | 2.35%, 08/17/2018 | | | 2,681,961 | |
| | | | | 3,063,000 | | | CIT Group, Inc.
5.50%, 02/15/2019(1) | | | 3,204,664 | |
| | | | | | | | Citigroup, Inc. | |
| | | | | 1,195,000 | | | 1.85%, 11/24/2017 | | | 1,201,587 | |
| | | | | 1,025,000 | | | 2.50%, 09/26/2018 | | | 1,045,315 | |
| | | | | 2,675,000 | | | 2.70%, 03/30/2021 | | | 2,722,596 | |
| | | | | 1,550,000 | | | 4.30%, 11/20/2026 | | | 1,596,901 | |
| | | | | 2,450,000 | | | 4.40%, 06/10/2025 | | | 2,561,742 | |
| | | | | 7,185,000 | | | 4.45%, 09/29/2027 | | | 7,401,348 | |
| | | | | 2,955,000 | | | 4.60%, 03/09/2026 | | | 3,132,835 | |
| | | | | 2,025,000 | | | 4.65%, 07/30/2045 | | | 2,225,331 | |
| | | | | 1,015,000 | | | 5.50%, 09/13/2025 | | | 1,137,755 | |
| | | | | 2,195,000 | | | 6.68%, 09/13/2043 | | | 2,818,020 | |
| | | | | | | | Credit Agricole S.A. | |
| | EUR | | | | 2,940,000 | | | 6.50%, 06/23/2021(2)(5)(6) | | | 3,066,905 | |
| | GBP | | | | 245,000 | | | 7.50%, 06/23/2026(2)(5)(6) | | | 291,991 | |
| | $ | | | | 2,925,000 | | | 8.13%, 12/23/2025(1)(2)(6) | | | 2,905,005 | |
| | | | | 6,730,000 | | | Credit Suisse Group AG
6.25%, 12/18/2024(1)(2)(6) | | | 6,333,455 | |
| | | | | 5,250,000 | | | Credit Suisse Group Funding Guernsey Ltd.
3.13%, 12/10/2020(1) | | | 5,242,015 | |
| | | | | 1,640,000 | | | Credit Suisse Group Guernsey I Ltd.
7.88%, 02/24/2041(2)(5) | | | 1,642,050 | |
| | | | | | | | Goldman Sachs Group, Inc. | |
| | | | | 550,000 | | | 1.80%, 04/23/2020(2) | | | 548,398 | |
| | | | | 590,000 | | | 2.00%, 04/25/2019 | | | 596,053 | |
| | | | | 1,290,000 | | | 2.38%, 01/22/2018 | | | 1,307,338 | |
| | | | | 2,215,000 | | | 2.75%, 09/15/2020 | | | 2,260,950 | |
| | | | | 3,070,000 | | | 2.88%, 02/25/2021 | | | 3,147,416 | |
| | | | | 1,115,000 | | | 4.75%, 10/21/2045 | | | 1,229,047 | |
| | | | | 3,490,000 | | | 5.15%, 05/22/2045 | | | 3,640,981 | |
| | | | | 3,687,000 | | | 6.00%, 06/15/2020 | | | 4,206,996 | |
| | | | | 2,655,000 | | | 6.25%, 02/01/2041 | | | 3,435,846 | |
| | | | | 3,680,000 | | | 6.45%, 05/01/2036 | | | 4,346,441 | |
| | | | | 5,415,000 | | | 6.75%, 10/01/2037 | | | 6,679,587 | |
| | | | | | | | HSBC Holdings plc | |
| | | | | 1,305,000 | | | 2.95%, 05/25/2021 | | | 1,318,520 | |
| | | | | 4,335,000 | | | 3.40%, 03/08/2021 | | | 4,466,888 | |
| | | | | 1,335,000 | | | 3.60%, 05/25/2023 | | | 1,364,330 | |
| | | | | 5,950,000 | | | 4.25%, 08/18/2025 | | | 6,004,282 | |
| | EUR | | | | 1,275,000 | | | 5.25%, 09/16/2022(2)(5)(6) | | | 1,272,730 | |
| | $ | | | | 1,800,000 | | | 5.25%, 03/14/2044 | | | 1,901,736 | |
| | | | | 655,000 | | | 6.80%, 06/01/2038 | | | 815,883 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Commercial Banks - 10.3% - (continued) | |
| | $ | | | | 1,350,000 | | | HSBC USA, Inc.
2.75%, 08/07/2020 | | $ | 1,360,615 | |
| | | | | 4,225,000 | | | Intesa Sanpaolo S.p.A.
7.70%, 09/17/2025(1)(2)(6) | | | 3,644,062 | |
| | | | | | | | JP Morgan Chase & Co. | |
| | | | | 7,865,000 | | | 2.40%, 06/07/2021 | | | 7,974,921 | |
| | | | | 1,055,000 | | | 2.55%, 10/29/2020 | | | 1,077,883 | |
| | | | | 4,485,000 | | | 2.70%, 05/18/2023 | | | 4,530,612 | |
| | | | | 5,375,000 | | | 4.25%, 10/01/2027 | | | 5,686,927 | |
| | | | | 3,820,000 | | | 4.35%, 08/15/2021 | | | 4,202,516 | |
| | | | | 55,000 | | | 5.60%, 07/15/2041 | | | 69,741 | |
| | GBP | | | | 895,000 | | | Lloyds Banking Group plc
7.00%, 06/27/2019(2)(5)(6) | | | 1,119,980 | |
| | | | | | | | Morgan Stanley | |
| | $ | | | | 6,760,000 | | | 2.50%, 04/21/2021 | | | 6,830,710 | |
| | | | | 4,115,000 | | | 3.95%, 04/23/2027 | | | 4,161,499 | |
| | | | | 3,275,000 | | | 4.00%, 07/23/2025 | | | 3,506,834 | |
| | | | | 1,505,000 | | | 4.35%, 09/08/2026 | | | 1,574,406 | |
| | | | | 5,925,000 | | | 5.55%, 04/27/2017 | | | 6,131,137 | |
| | | | | 4,020,000 | | | 6.25%, 08/28/2017 | | | 4,237,474 | |
| | | | | 1,600,000 | | | 7.30%, 05/13/2019 | | | 1,838,336 | |
| | | | | 510,000 | | | Radian Group, Inc.
7.00%, 03/15/2021 | | | 545,384 | |
| | | | | | | | Royal Bank of Scotland Group plc | |
| | | | | 845,000 | | | 6.13%, 12/15/2022 | | | 886,162 | |
| | | | | 3,570,000 | | | 7.50%, 08/10/2020(2)(6) | | | 3,266,550 | |
| | | | | 9,800,000 | | | Santander Issuances SAU
5.18%, 11/19/2025 | | | 9,790,523 | |
| | GBP | | | | 475,000 | | | Santander UK Group Holdings plc
7.38%, 06/24/2022(2)(5)(6) | | | 586,488 | |
| | $ | | | | 4,535,000 | | | Societe Generale S.A.
8.25%, 11/29/2018(2)(5)(6) | | | 4,489,650 | |
| | | | | 2,435,000 | | | SunTrust Banks, Inc.
3.50%, 01/20/2017 | | | 2,462,114 | |
| | | | | | | | UBS Group AG | |
| | | | | 3,300,000 | | | 6.88%, 03/22/2021(2)(5)(6) | | | 3,225,750 | |
| | | | | 3,145,000 | | | 7.13%, 02/19/2020(2)(5)(6) | | | 3,121,412 | |
| | | | | | | | Wells Fargo & Co. | |
| | | | | 1,655,000 | | | 3.00%, 04/22/2026 | | | 1,687,026 | |
| | | | | 3,340,000 | | | 4.40%, 06/14/2046 | | | 3,402,845 | |
| | | | | 3,285,000 | | | 4.90%, 11/17/2045 | | | 3,594,789 | |
| | | | | 74,000 | | | 5.38%, 11/02/2043 | | | 86,208 | |
| | | | | 5,270,000 | | | 5.61%, 01/15/2044 | | | 6,304,232 | |
| | | | | | | | | | | | |
| | | | | | | | 273,684,576 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Services - 0.2% | |
| | | | | 1,430,000 | | | Cardtronics, Inc.
5.13%, 08/01/2022 | | | 1,415,700 | |
| | | | | 2,915,000 | | | ERAC USA Finance LLC
2.60%, 12/01/2021(1) | | | 2,962,503 | |
| | | | | | | | United Rentals North America, Inc. | |
| | | | | 470,000 | | | 4.63%, 07/15/2023 | | | 474,112 | |
| | | | | 600,000 | | | 5.50%, 07/15/2025 | | | 591,000 | |
| | | | | | | | | | | | |
| | | | | | | | 5,443,315 | |
| | | | | | | | | | | | |
| | | | | | | Construction Materials - 0.2% | |
| | | | | 3,000,000 | | | CRH America, Inc.
5.13%, 05/18/2045(1) | | | 3,187,692 | |
| | | | | 1,015,000 | | | Norbord, Inc.
6.25%, 04/15/2023(1) | | | 1,040,375 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Construction Materials - 0.2% - (continued) | |
| | | | | | | | Standard Industries, Inc. | |
| | $ | | | | 1,130,000 | | | 5.38%, 11/15/2024(1) | | $ | 1,149,775 | |
| | | | | 930,000 | | | 6.00%, 10/15/2025(1) | | | 971,850 | |
| | | | | | | | | | | | |
| | | | | | | | 6,349,692 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financial Services - 1.0% | |
| | | | | 255,000 | | | Aircastle Ltd.
5.50%, 02/15/2022 | | | 265,200 | |
| | | | | 3,217,000 | | | Bear Stearns Cos LLC
5.55%, 01/22/2017 | | | 3,291,538 | |
| | | | | 2,285,000 | | | Intercontinental Exchange, Inc.
2.75%, 12/01/2020 | | | 2,392,669 | |
| | | | | | | | International Lease Finance Corp. | |
| | | | | 3,920,000 | | | 5.88%, 04/01/2019 | | | 4,179,700 | |
| | | | | 1,620,000 | | | 6.75%, 09/01/2016(1) | | | 1,628,100 | |
| | | | | 580,000 | | | Nasdaq, Inc.
3.85%, 06/30/2026 | | | 589,290 | |
| | | | | | | | Navient Corp. | |
| | | | | 1,590,000 | | | 5.50%, 01/15/2019 | | | 1,593,021 | |
| | | | | 1,005,000 | | | 7.25%, 01/25/2022 | | | 957,263 | |
| | | | | 3,925,000 | | | Synchrony Financial
2.60%, 01/15/2019 | | | 3,967,951 | |
| | | | | | | | Visa, Inc. | |
| | | | | 2,545,000 | | | 2.80%, 12/14/2022 | | | 2,684,945 | |
| | | | | 3,180,000 | | | 4.30%, 12/14/2045 | | | 3,681,629 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,231,306 | |
| | | | | | | | | | | | |
| | | | | | | Electric - 0.8% | |
| | | | | | | | AES Corp. | |
| | | | | 2,560,000 | | | 4.88%, 05/15/2023 | | | 2,528,000 | |
| | | | | 460,000 | | | 5.50%, 03/15/2024 | | | 470,925 | |
| | | | | 1,935,000 | | | Duke Energy Carolinas LLC
4.25%, 12/15/2041 | | | 2,168,235 | |
| | | | | 2,215,000 | | | Duke Energy Progress LLC
4.38%, 03/30/2044 | | | 2,535,240 | |
| | | | | 3,390,000 | | | Electricite de France S.A.
4.95%, 10/13/2045(1) | | | 3,746,272 | |
| | | | | | | | Emera US Finance L.P. | |
| | | | | 435,000 | | | 2.70%, 06/15/2021(1) | | | 443,282 | |
| | | | | 475,000 | | | 4.75%, 06/15/2046(1) | | | 482,089 | |
| | | | | 3,070,000 | | | Exelon Corp.
2.85%, 06/15/2020 | | | 3,166,914 | |
| | | | | 1,015,000 | | | NRG Energy, Inc.
7.25%, 05/15/2026(1) | | | 1,009,925 | |
| | | | | 690,000 | | | Oncor Electric Delivery Co. LLC
7.00%, 09/01/2022 | | | 878,673 | |
| | | | | 1,100,000 | | | Pacific Gas & Electric Co.
8.25%, 10/15/2018 | | | 1,267,015 | |
| | | | | | | | Southern Co. | |
| | | | | 1,625,000 | | | 1.85%, 07/01/2019 | | | 1,645,558 | |
| | | | | 665,000 | | | 2.95%, 07/01/2023 | | | 689,338 | |
| | | | | 805,000 | | | 4.40%, 07/01/2046 | | | 865,313 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,896,779 | |
| | | | | | | | | | | | |
| | | | | | | Electrical Components & Equipment - 0.0% | |
| | | | | 945,000 | | | EnerSys
5.00%, 04/30/2023(1) | | | 933,187 | |
| | | | | | | | | | | | |
| | | | | | | Electronics - 0.1% | |
| | | | | 1,555,000 | | | Fortive Corp.
2.35%, 06/15/2021(1) | | | 1,577,809 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Engineering & Construction - 0.5% | |
| | | | | | | | SBA Tower Trust | |
| | $ | | | | 5,620,000 | | | 2.93%, 12/15/2042(1) | | $ | 5,629,795 | |
| | | | | 7,645,000 | | | 3.60%, 04/15/2043(1) | | | 7,696,643 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,326,438 | |
| | | | | | | | | | | | |
| | | | | | | Entertainment - 0.0% | |
| | | | | | | | GLP Capital L.P. / GLP Financing II, Inc. | |
| | | | | 20,000 | | | 4.38%, 04/15/2021 | | | 20,600 | |
| | | | | 335,000 | | | 5.38%, 04/15/2026 | | | 345,050 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 365,650 | |
| | | | | | | | | | | | |
| | | | | | | Environmental Control - 0.1% | |
| | | | | | | | Clean Harbors, Inc. | |
| | | | | 345,000 | | | 5.13%, 06/01/2021 | | | 352,976 | |
| | | | | 1,385,000 | | | 5.25%, 08/01/2020 | | | 1,417,894 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,770,870 | |
| | | | | | | | | | | | |
| | | | | | | Food - 0.4% | |
| | | | | | | | Kraft Heinz Foods Co. | |
| | | | | 2,050,000 | | | 2.00%, 07/02/2018(1) | | | 2,075,764 | |
| | | | | 855,000 | | | 2.80%, 07/02/2020(1) | | | 887,867 | |
| | | | | 615,000 | | | 4.38%, 06/01/2046(1) | | | 650,376 | |
| | | | | 1,645,000 | | | Minerva Luxembourg S.A.
7.75%, 01/31/2023(1) | | | 1,689,415 | |
| | | | | 2,285,000 | | | Sigma Alimentos S.A. de CV
4.13%, 05/02/2026(1) | | | 2,310,706 | |
| | | | | 2,320,000 | | | Sysco Corp.
2.50%, 07/15/2021 | | | 2,370,732 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,984,860 | |
| | | | | | | | | | | | |
| | | | | | | Forest Products & Paper - 0.1% | |
| | | | | | | | Cascades, Inc. | |
| | | | | 335,000 | | | 5.50%, 07/15/2022(1) | | | 325,369 | |
| | | | | 560,000 | | | 5.75%, 07/15/2023(1) | | | 539,000 | |
| | | | | 1,415,000 | | | Clearwater Paper Corp.
5.38%, 02/01/2025(1) | | | 1,415,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,279,369 | |
| | | | | | | | | | | | |
| | | | | | | Gas - 0.0% | |
| | | | | | | | AmeriGas Partners L.P. / AmeriGas Finance Corp. | |
| | | | | 280,000 | | | 5.63%, 05/20/2024 | | | 282,100 | |
| | | | | 375,000 | | | 5.88%, 08/20/2026 | | | 375,937 | |
| | | | | 160,000 | | | Southern Star Central Corp.
5.13%, 07/15/2022(1) | | | 156,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 814,037 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 0.4% | |
| | | | | 280,000 | | | Hologic, Inc.
5.25%, 07/15/2022(1) | | | 292,600 | |
| | | | | 1,005,000 | | | Kinetic Concepts, Inc. / KCI USA, Inc.
7.88%, 02/15/2021(1) | | | 1,068,436 | |
| | | | | 2,528,000 | | | Medtronic, Inc.
4.38%, 03/15/2035 | | | 2,859,522 | |
| | | | | 2,430,000 | | | Thermo Fisher Scientific, Inc.
3.00%, 04/15/2023 | | | 2,480,719 | |
| | | | | 3,900,000 | | | Zimmer Biomet Holdings, Inc.
1.45%, 04/01/2017 | | | 3,902,488 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,603,765 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 1.3% | |
| | | | | | | | Aetna, Inc. | |
| | | | | 925,000 | | | 2.80%, 06/15/2023 | | | 944,891 | |
| | | | | 425,000 | | | 4.25%, 06/15/2036 | | | 439,099 | |
| | | | | 605,000 | | | 4.38%, 06/15/2046 | | | 628,291 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Healthcare-Services - 1.3% - (continued) | |
| | | | | | | | Anthem, Inc. | |
| | $ | | | | 5,390,000 | | | 3.50%, 08/15/2024 | | $ | 5,580,391 | |
| | | | | 2,450,000 | | | 4.63%, 05/15/2042 | | | 2,569,935 | |
| | | | | 805,000 | | | Community Health Systems, Inc.
5.13%, 08/01/2021 | | | 798,963 | |
| | | | | 3,660,000 | | | HCA, Inc.
6.50%, 02/15/2020 | | | 4,048,875 | |
| | | | | 1,025,000 | | | LifePoint Health, Inc.
5.88%, 12/01/2023 | | | 1,066,000 | |
| | | | | 220,000 | | | MEDNAX, Inc.
5.25%, 12/01/2023(1) | | | 222,750 | |
| | | | | 3,695,000 | | | Tenet Healthcare Corp.
6.00%, 10/01/2020 | | | 3,898,225 | |
| | | | | | | | UnitedHealth Group, Inc. | |
| | | | | 2,880,000 | | | 1.70%, 02/15/2019 | | | 2,910,373 | |
| | | | | 5,075,000 | | | 2.13%, 03/15/2021 | | | 5,170,506 | |
| | | | | 2,250,000 | | | 3.35%, 07/15/2022 | | | 2,407,100 | |
| | | | | 2,255,000 | | | 3.75%, 07/15/2025 | | | 2,473,999 | |
| | | | | 745,000 | | | 4.75%, 07/15/2045 | | | 897,504 | |
| | | | | | | | | | | | |
| | | | | | | | 34,056,902 | |
| | | | | | | | | | | | |
| | | | | | | Holding Companies-Diversified - 0.2% | |
| | | | | 5,700,000 | | | Hutchison Whampoa International Ltd.
2.00%, 11/08/2017(1) | | | 5,755,592 | |
| | | | | | | | | | | | |
| | | | | | | Home Builders - 0.0% | |
| | | | | 1,050,000 | | | Meritage Homes Corp.
6.00%, 06/01/2025 | | | 1,055,250 | |
| | | | | 115,000 | | | PulteGroup, Inc.
4.25%, 03/01/2021 | | | 118,565 | |
| | | | | 65,000 | | | Toll Brothers Finance Corp.
4.88%, 11/15/2025 | | | 64,350 | |
| | | | | | | | | | | | |
| | | | | | | | 1,238,165 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 0.3% | |
| | | | | 1,665,000 | | | American International Group, Inc.
4.70%, 07/10/2035 | | | 1,721,450 | |
| | | | | | | | CNO Financial Group, Inc. | |
| | | | | 55,000 | | | 4.50%, 05/30/2020 | | | 56,925 | |
| | | | | 240,000 | | | 5.25%, 05/30/2025 | | | 247,200 | |
| | | | | 2,070,000 | | | Marsh & McLennan Cos., Inc.
3.50%, 03/10/2025 | | | 2,150,962 | |
| | | | | 2,133,000 | | | Massachusetts Mutual Life Insurance Co.
8.88%, 06/01/2039(1) | | | 3,191,904 | |
| | | | | | | | | | | | |
| | | | | | | | 7,368,441 | |
| | | | | | | | | | | | |
| | | | | | | Iron/Steel - 0.1% | |
| | | | | | | | ArcelorMittal | |
| | | | | 800,000 | | | 5.13%, 06/01/2020 | | | 824,000 | |
| | | | | 320,000 | | | 6.13%, 06/01/2025 | | | 318,400 | |
| | | | | | | | Steel Dynamics, Inc. | |
| | | | | 240,000 | | | 5.13%, 10/01/2021 | | | 245,700 | |
| | | | | 255,000 | | | 5.50%, 10/01/2024 | | | 260,738 | |
| | | | | 595,000 | | | United States Steel Corp.
7.38%, 04/01/2020 | | | 559,865 | |
| | | | | | | | | | | | |
| | | | | | | | 2,208,703 | |
| | | | | | | | | | | | |
| | | | | | | IT Services - 0.2% | |
| | | | | 2,825,000 | | | Apple, Inc.
3.45%, 02/09/2045 | | | 2,654,517 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | IT Services - 0.2% - (continued) | |
| | | | | | | | Diamond 1 Finance Corp. / Diamond 2 Finance Corp. | |
| | $ | | | | 1,335,000 | | | 3.48%, 06/01/2019(1) | | $ | 1,367,588 | |
| | | | | 1,060,000 | | | 4.42%, 06/15/2021(1) | | | 1,091,027 | |
| | | | | 1,230,000 | | | 8.35%, 07/15/2046(1) | | | 1,322,384 | |
| | | | | | | | | | | | |
| | | | | | | | 6,435,516 | |
| | | | | | | | | | | | |
| | | | | | | Lodging - 0.1% | |
| | | | | 1,560,000 | | | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
5.38%, 03/15/2022 | | | 1,569,750 | |
| | | | | | | | | | | | |
| | | | | | | Machinery - Construction & Mining - 0.0% | |
| | | | | 525,000 | | | Oshkosh Corp.
5.38%, 03/01/2025 | | | 539,437 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Diversified - 0.1% | |
| | | | | 1,301,000 | | | Case New Holland Industrial, Inc.
7.88%, 12/01/2017 | | | 1,398,575 | |
| | | | | | | | | | | | |
| | | | | | | Media - 2.9% | |
| | | | | | | | 21st Century Fox America, Inc. | |
| | | | | 2,775,000 | | | 6.15%, 03/01/2037 | | | 3,444,427 | |
| | | | | 1,175,000 | | | 6.20%, 12/15/2034 | | | 1,473,246 | |
| | | | | 1,285,000 | | | 8.00%, 10/17/2016 | | | 1,310,097 | |
| | | | | 705,000 | | | Altice US Finance I Corp.
5.50%, 05/15/2026(1) | | | 705,000 | |
| | | | | 815,000 | | | CBS Corp.
4.00%, 01/15/2026 | | | 869,904 | |
| | | | | | | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| | | | | 80,000 | | | 5.13%, 02/15/2023 | | | 81,241 | |
| | | | | 65,000 | | | 5.25%, 09/30/2022 | | | 66,706 | |
| | | | | 385,000 | | | 5.75%, 09/01/2023 | | | 398,475 | |
| | | | | 1,270,000 | | | 5.75%, 02/15/2026(1) | | | 1,308,100 | |
| | | | | | | | Charter Communications Operating LLC | |
| | | | | 3,000,000 | | | 3.58%, 07/23/2020(1) | | | 3,136,332 | |
| | | | | 4,125,000 | | | 4.46%, 07/23/2022(1) | | | 4,433,286 | |
| | | | | 5,490,000 | | | 4.91%, 07/23/2025(1) | | | 6,002,228 | |
| | | | | 6,105,000 | | | 6.48%, 10/23/2045(1) | | | 7,289,498 | |
| | | | | 475,000 | | | Columbus International, Inc.
7.38%, 03/30/2021(1) | | | 501,600 | |
| | | | | | | | Comcast Corp. | |
| | | | | 5,770,000 | | | 2.75%, 03/01/2023 | | | 6,042,673 | |
| | | | | 1,430,000 | | | 4.75%, 03/01/2044 | | | 1,667,414 | |
| | | | | | | | Cox Communications, Inc. | |
| | | | | 1,045,000 | | | 3.25%, 12/15/2022(1) | | | 1,042,093 | |
| | | | | 1,985,000 | | | 3.85%, 02/01/2025(1) | | | 1,999,320 | |
| | | | | | | | DISH DBS Corp. | |
| | | | | 860,000 | | | 5.88%, 11/15/2024 | | | 799,800 | |
| | | | | 1,785,000 | | | 7.88%, 09/01/2019 | | | 1,967,963 | |
| | | | | 1,905,000 | | | Grupo Televisa S.A.B.
6.13%, 01/31/2046 | | | 2,103,634 | |
| | | | | 1,720,000 | | | Liberty Interactive LLC
8.25%, 02/01/2030 | | | 1,784,500 | |
| | | | | 1,715,000 | | | NBC Universal Media LLC
5.95%, 04/01/2041 | | | 2,307,558 | |
| | | | | 340,000 | | | Numericable-SFR S.A.
7.38%, 05/01/2026(1) | | | 336,175 | |
| | | | | 2,290,000 | | | Sky plc
3.13%, 11/26/2022(1) | | | 2,342,970 | |
| | | | | | | | TEGNA, Inc. | |
| | | | | 4,005,000 | | | 5.13%, 10/15/2019 | | | 4,120,144 | |
| | | | | 565,000 | | | 5.13%, 07/15/2020 | | | 582,656 | |
| | | | | 1,350,000 | | | Time Warner Cable, Inc.
8.75%, 02/14/2019 | | | 1,576,272 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Media - 2.9% - (continued) | |
| | $ | | | | 7,100,000 | | | Time Warner Entertainment Co., L.P.
8.38%, 07/15/2033 | | $ | 9,619,911 | |
| | | | | | | | Time Warner, Inc. | |
| | | | | 1,595,000 | | | 3.60%, 07/15/2025 | | | 1,687,741 | |
| | | | | 2,725,000 | | | 6.10%, 07/15/2040 | | | 3,330,438 | |
| | | | | 1,900,000 | | | 6.50%, 11/15/2036 | | | 2,409,476 | |
| | | | | 650,000 | | | Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH
5.50%, 01/15/2023(1) | | | 653,250 | |
| | | | | | | | | | | | |
| | | | | | | | 77,394,128 | |
| | | | | | | | | | | | |
| | | | | | | Mining - 0.1% | |
| | | | | | | | Anglo American Capital plc | |
| | | | | 345,000 | | | 3.63%, 05/14/2020(1) | | | 331,631 | |
| | | | | 350,000 | | | 4.13%, 04/15/2021(1) | | | 330,750 | |
| | | | | 310,000 | | | 4.13%, 09/27/2022(1) | | | 287,525 | |
| | | | | | | | Freeport-McMoRan, Inc. | |
| | | | | 120,000 | | | 3.88%, 03/15/2023 | | | 105,000 | |
| | | | | 355,000 | | | 4.55%, 11/14/2024 | | | 310,625 | |
| | | | | 400,000 | | | 5.40%, 11/14/2034 | | | 318,000 | |
| | | | | 825,000 | | | 5.45%, 03/15/2043 | | | 662,062 | |
| | | | | 485,000 | | | Kaiser Aluminum Corp.
5.88%, 05/15/2024(1) | | | 498,338 | |
| | | | | 900,000 | | | Rio Tinto Finance USA Ltd.
3.75%, 06/15/2025 | | | 941,509 | |
| | | | | 205,000 | | | Teck Resources Ltd.
8.50%, 06/01/2024(1) | | | 212,688 | |
| | | | | | | | | | | | |
| | | | | | | | 3,998,128 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 3.4% | |
| | | | | | | | Anadarko Petroleum Corp. | |
| | | | | 920,000 | | | 4.85%, 03/15/2021 | | | 975,765 | |
| | | | | 3,295,000 | | | 5.55%, 03/15/2026 | | | 3,638,603 | |
| | | | | 328,000 | | | 6.38%, 09/15/2017 | | | 345,236 | |
| | | | | 3,465,000 | | | 6.60%, 03/15/2046 | | | 4,184,005 | |
| | | | | 410,000 | | | 6.95%, 06/15/2019 | | | 454,343 | |
| | | | | 255,000 | | | Antero Resources Corp.
5.63%, 06/01/2023 | | | 247,350 | |
| | | | | 2,665,000 | | | BP Capital Markets plc
2.75%, 05/10/2023 | | | 2,685,339 | |
| | | | | | | | Cenovus Energy, Inc. | |
| | | | | 5,245,000 | | | 3.00%, 08/15/2022 | | | 4,787,951 | |
| | | | | 585,000 | | | 3.80%, 09/15/2023 | | | 550,551 | |
| | | | | 2,190,000 | | | 5.20%, 09/15/2043 | | | 1,881,545 | |
| | | | | 1,275,000 | | | 5.70%, 10/15/2019 | | | 1,348,582 | |
| | | | | 765,000 | | | Concho Resources, Inc.
5.50%, 04/01/2023 | | | 766,912 | |
| | | | | | | | ConocoPhillips Co. | |
| | | | | 2,725,000 | | | 4.20%, 03/15/2021 | | | 2,950,469 | |
| | | | | 3,790,000 | | | 4.95%, 03/15/2026 | | | 4,297,564 | |
| | | | | | | | Continental Resources, Inc. | |
| | | | | 35,000 | | | 3.80%, 06/01/2024 | | | 30,538 | |
| | | | | 130,000 | | | 4.50%, 04/15/2023 | | | 121,225 | |
| | | | | 80,000 | | | 4.90%, 06/01/2044 | | | 66,000 | |
| | | | | 430,000 | | | 5.00%, 09/15/2022 | | | 420,325 | |
| | | | | | | | Devon Energy Corp. | |
| | | | | 4,645,000 | | | 3.25%, 05/15/2022 | | | 4,504,698 | |
| | | | | 1,095,000 | | | 6.30%, 01/15/2019 | | | 1,186,263 | |
| | | | | 540,000 | | | Devon Financing Corp. LLC
7.88%, 09/30/2031 | | | 628,384 | |
| | | | | 3,225,000 | | | Ecopetrol S.A.
5.88%, 05/28/2045 | | | 2,802,525 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Oil & Gas - 3.4% - (continued) | |
| | $ | | | | 1,145,000 | | | EOG Resources, Inc.
4.15%, 01/15/2026 | | $ | 1,253,511 | |
| | | | | | | | Exxon Mobil Corp. | |
| | | | | 3,080,000 | | | 2.22%, 03/01/2021 | | | 3,175,622 | |
| | | | | 2,590,000 | | | 2.73%, 03/01/2023 | | | 2,703,981 | |
| | | | | 865,000 | | | 3.04%, 03/01/2026 | | | 918,209 | |
| | | | | | | | Hess Corp. | |
| | | | | 1,245,000 | | | 5.60%, 02/15/2041 | | | 1,255,403 | |
| | | | | 1,370,000 | | | 6.00%, 01/15/2040 | | | 1,416,755 | |
| | | | | 2,425,000 | | | Kerr-McGee Corp.
6.95%, 07/01/2024 | | | 2,803,848 | |
| | | | | | | | Marathon Oil Corp. | |
| | | | | 3,015,000 | | | 2.70%, 06/01/2020 | | | 2,839,198 | |
| | | | | 335,000 | | | 2.80%, 11/01/2022 | | | 303,820 | |
| | | | | 330,000 | | | 3.85%, 06/01/2025 | | | 303,181 | |
| | | | | 145,000 | | | 5.20%, 06/01/2045 | | | 126,228 | |
| | | | | 115,000 | | | 6.60%, 10/01/2037 | | | 116,256 | |
| | | | | 95,000 | | | 6.80%, 03/15/2032 | | | 96,438 | |
| | | | | 1,750,000 | | | Noble Energy, Inc.
4.15%, 12/15/2021 | | | 1,840,079 | |
| | | | | 5,330,000 | | | Petrobras Global Finance B.V.
8.38%, 05/23/2021 | | | 5,500,560 | |
| | | | | | | | Petroleos Mexicanos | |
| | | | | 1,800,000 | | | 5.50%, 02/04/2019(1) | | | 1,891,800 | |
| | | | | 1,265,000 | | | 5.50%, 06/27/2044 | | | 1,142,991 | |
| | | | | 5,115,000 | | | 5.75%, 03/01/2018 | | | 5,348,551 | |
| | | | | 955,000 | | | 6.38%, 02/04/2021(1) | | | 1,038,371 | |
| | | | | 4,105,000 | | | 6.63%, 06/15/2035 | | | 4,232,255 | |
| | | | | | | | Pioneer Natural Resources Co. | |
| | | | | 310,000 | | | 3.45%, 01/15/2021 | | | 320,099 | |
| | | | | 655,000 | | | 3.95%, 07/15/2022 | | | 685,306 | |
| | | | | 2,260,000 | | | 4.45%, 01/15/2026 | | | 2,462,261 | |
| | | | | 660,000 | | | 6.65%, 03/15/2017 | | | 683,070 | |
| | | | | 2,090,000 | | | 7.50%, 01/15/2020 | | | 2,447,279 | |
| | | | | | | | QEP Resources, Inc. | |
| | | | | 10,000 | | | 5.25%, 05/01/2023 | | | 9,200 | |
| | | | | 45,000 | | | 5.38%, 10/01/2022 | | | 41,963 | |
| | | | | 55,000 | | | 6.80%, 03/01/2020 | | | 55,413 | |
| | | | | 255,000 | | | SM Energy Co.
6.13%, 11/15/2022 | | | 234,281 | |
| | | | | | | | Statoil ASA | |
| | | | | 15,000 | | | 3.70%, 03/01/2024 | | | 16,202 | |
| | | | | 2,555,000 | | | 3.95%, 05/15/2043 | | | 2,640,848 | |
| | | | | 250,000 | | | Tesoro Corp.
5.13%, 04/01/2024 | | | 251,250 | |
| | | | | 1,695,000 | | | Valero Energy Corp.
4.90%, 03/15/2045 | | | 1,569,972 | |
| | | | | 190,000 | | | WPX Energy, Inc.
5.25%, 09/15/2024 | | | 167,200 | |
| | | | | | | | | | | | |
| | | | | | | | 88,765,574 | |
| | | | | | | | | | | | |
| | | | | | | Packaging & Containers - 0.1% | |
| | | | | 1,020,000 | | | Graphic Packaging International, Inc.
4.88%, 11/15/2022 | | | 1,060,800 | |
| | | | | 505,000 | | | Owens-Brockway Glass Container, Inc.
5.88%, 08/15/2023(1) | | | 530,462 | |
| | | | | 671,000 | | | Reynolds Group Issuer, Inc.
5.13%, 07/15/2023(1) | | | 679,388 | |
| | | | | | | | | | | | |
| | | | | | | | 2,270,650 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Pharmaceuticals - 1.2% | |
| | $ | | | | 1,335,000 | | | AbbVie, Inc.
3.20%, 05/14/2026 | | $ | 1,352,326 | |
| | | | | | | | Actavis Funding SCS | |
| | | | | 6,815,000 | | | 2.35%, 03/12/2018 | | | 6,907,882 | |
| | | | | 6,755,000 | | | 3.00%, 03/12/2020 | | | 6,966,627 | |
| | | | | 2,590,000 | | | 3.45%, 03/15/2022 | | | 2,689,870 | |
| | | | | 316,000 | | | Baxalta, Inc.
3.60%, 06/23/2022 | | | 326,134 | |
| | | | | 1,350,000 | | | Cardinal Health, Inc.
1.95%, 06/15/2018 | | | 1,365,647 | |
| | | | | 3,155,000 | | | EMD Finance LLC
2.95%, 03/19/2022(1) | | | 3,232,465 | |
| | | | | | | | Mylan N.V. | |
| | | | | 1,485,000 | | | 3.00%, 12/15/2018(1) | | | 1,520,347 | |
| | | | | 1,375,000 | | | 3.15%, 06/15/2021(1) | | | 1,394,728 | |
| | | | | 1,705,000 | | | 3.75%, 12/15/2020(1) | | | 1,777,594 | |
| | | | | 1,770,000 | | | Perrigo Co. plc
1.30%, 11/08/2016 | | | 1,768,136 | |
| | | | | 1,005,000 | | | Perrigo Finance Unlimited Co.
3.50%, 03/15/2021 | | | 1,039,892 | |
| | | | | 395,000 | | | Quintiles Transnational Corp.
4.88%, 05/15/2023(1) | | | 400,925 | |
| | | | | | | | | | | | |
| | | | | | | | 30,742,573 | |
| | | | | | | | | | | | |
| | | | | | | Pipelines - 1.5% | |
| | | | | | | | DCP Midstream LLC | |
| | | | | 120,000 | | | 5.35%, 03/15/2020(1) | | | 117,600 | |
| | | | | 145,000 | | | 9.75%, 03/15/2019(1) | | | 158,775 | |
| | | | | | | | DCP Midstream Operating L.P. | |
| | | | | 200,000 | | | 2.70%, 04/01/2019 | | | 191,642 | |
| | | | | 100,000 | | | 3.88%, 03/15/2023 | | | 91,000 | |
| | | | | 326,000 | | | 4.95%, 04/01/2022 | | | 320,295 | |
| | | | | 215,000 | | | 5.60%, 04/01/2044 | | | 183,825 | |
| | | | | 3,137,000 | | | Energy Transfer Equity L.P.
7.50%, 10/15/2020 | | | 3,325,220 | |
| | | | | 6,810,000 | | | Energy Transfer Partners L.P.
5.95%, 10/01/2043 | | | 6,580,803 | |
| | | | | 1,295,000 | | | Enterprise Products Operating LLC
3.95%, 02/15/2027 | | | 1,373,512 | |
| | | | | | | | Kinder Morgan Energy Partners L.P. | |
| | | | | 750,000 | | | 5.30%, 09/15/2020 | | | 802,491 | |
| | | | | 260,000 | | | 6.50%, 04/01/2020 | | | 286,705 | |
| | | | | 515,000 | | | 6.85%, 02/15/2020 | | | 576,350 | |
| | | | | 2,915,000 | | | Kinder Morgan, Inc.
5.05%, 02/15/2046 | | | 2,770,760 | |
| | | | | 795,000 | | | Magellan Midstream Partners L.P.
5.00%, 03/01/2026 | | | 899,332 | |
| | | | | | | | MPLX L.P. | |
| | | | | 480,000 | | | 4.88%, 12/01/2024(1) | | | 467,597 | |
| | | | | 495,000 | | | 4.88%, 06/01/2025(1) | | | 483,775 | |
| | | | | | | | Plains All American Pipeline L.P. | |
| | | | | 2,490,000 | | | 2.85%, 01/31/2023 | | | 2,291,908 | |
| | | | | 2,450,000 | | | 3.65%, 06/01/2022 | | | 2,402,663 | |
| | | | | | | | Regency Energy Partners L.P. | |
| | | | | 435,000 | | | 5.50%, 04/15/2023 | | | 438,868 | |
| | | | | 1,945,000 | | | 5.88%, 03/01/2022 | | | 2,080,456 | |
| | | | | 1,550,000 | | | Sunoco Logistics Partners Operations L.P. 4.25%, 04/01/2024 | | | 1,565,705 | |
| | | | | | | | Tesoro Logistics L.P. | |
| | | | | 605,000 | | | 5.50%, 10/15/2019 | | | 632,225 | |
| | | | | 905,000 | | | 6.25%, 10/15/2022 | | | 943,462 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Pipelines - 1.5% - (continued) | |
| | $ | | | | 2,235,000 | | | Texas Eastern Transmission L.P.
2.80%, 10/15/2022(1) | | $ | 2,190,606 | |
| | | | | 1,240,000 | | | Wertern Gas Partners L.P.
4.65%, 07/01/2026 | | | 1,237,470 | |
| | | | | | | | Williams Partners L.P. | |
| | | | | 5,780,000 | | | 3.60%, 03/15/2022 | | | 5,475,695 | |
| | | | | 1,140,000 | | | 4.30%, 03/04/2024 | | | 1,072,454 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 38,961,194 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate - 0.1% | |
| | | | | 3,090,000 | | | ProLogis L.P.
3.35%, 02/01/2021 | | | 3,269,334 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate Investment Trusts - 1.0% | |
| | | | | | | | American Tower Corp. | |
| | | | | 3,065,000 | | | 3.40%, 02/15/2019 | | | 3,191,676 | |
| | | | | 1,555,000 | | | 4.50%, 01/15/2018 | | | 1,622,300 | |
| | | | | 3,650,000 | | | Brandywine Operating Partnership L.P. 3.95%, 02/15/2023 | | | 3,688,201 | |
| | | | | | | | Crown Castle International Corp. | |
| | | | | 340,000 | | | 3.40%, 02/15/2021 | | | 354,938 | |
| | | | | 1,305,000 | | | 3.70%, 06/15/2026 | | | 1,346,357 | |
| | | | | 2,310,000 | | | HCP, Inc.
4.25%, 11/15/2023 | | | 2,397,353 | |
| | | | | | | | Kimco Realty Corp. | |
| | | | | 3,610,000 | | | 3.13%, 06/01/2023 | | | 3,677,536 | |
| | | | | 775,000 | | | 3.40%, 11/01/2022 | | | 812,351 | |
| | | | | | | | Liberty Property L.P. | |
| | | | | 1,165,000 | | | 3.38%, 06/15/2023 | | | 1,180,343 | |
| | | | | 1,430,000 | | | 4.13%, 06/15/2022 | | | 1,511,896 | |
| | | | | 1,275,000 | | | Ventas Realty L.P. / Ventas Capital Corp.
3.25%, 08/15/2022 | | | 1,317,674 | |
| | | | | 1,565,000 | | | VEREIT Operating Partnership L.P.
4.13%, 06/01/2021 | | | 1,632,483 | |
| | | | | 3,905,000 | | | Welltower, Inc.
4.50%, 01/15/2024 | | | 4,234,481 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,967,589 | |
| | | | | | | | | | | | |
| | | | | | | Retail - 0.9% | |
| | | | | 755,000 | | | AutoZone, Inc.
1.63%, 04/21/2019 | | | 758,925 | |
| | | | | | | | CVS Health Corp. | |
| | | | | 725,000 | | | 2.13%, 06/01/2021 | | | 733,915 | |
| | | | | 4,230,000 | | | 2.80%, 07/20/2020 | | | 4,404,572 | |
| | | | | 1,788,000 | | | 3.88%, 07/20/2025 | | | 1,966,759 | |
| | | | | 3,360,000 | | | 5.13%, 07/20/2045 | | | 4,168,335 | |
| | | | | | | | Group 1 Automotive, Inc. | |
| | | | | 755,000 | | | 5.00%, 06/01/2022 | | | 743,675 | |
| | | | | 205,000 | | | 5.25%, 12/15/2023(1) | | | 201,413 | |
| | | | | 575,000 | | | KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC
5.25%, 06/01/2026(1) | | | 589,375 | |
| | | | | | | | Lowe’s Cos., Inc. | |
| | | | | 3,725,000 | | | 2.50%, 04/15/2026 | | | 3,793,927 | |
| | | | | 2,870,000 | | | 3.70%, 04/15/2046 | | | 2,950,885 | |
| | | | | 1,225,000 | | | McDonald’s Corp.
2.75%, 12/09/2020 | | | 1,278,904 | |
| | | | | | | | Walgreens Boots Alliance, Inc. | |
| | | | | 1,035,000 | | | 2.60%, 06/01/2021 | | | 1,054,309 | |
| | | | | 855,000 | | | 3.10%, 06/01/2023 | | | 870,830 | |
| | | | | | | | | | | | |
| | | | | | | | 23,515,824 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Savings & Loans - 0.2% | |
| | GBP | | | | 3,260,000 | | | Nationwide Building Society
6.88%, 06/20/2019(2)(5)(6) | | $ | 4,055,047 | |
| | | | | | | | | | | | |
| | | | | | | Semiconductors - 0.2% | |
| | $ | | | | 1,225,000 | | | Intel Corp.
4.10%, 05/19/2046 | | | 1,273,641 | |
| | | | | 2,175,000 | | | Lam Research Corp.
2.80%, 06/15/2021 | | | 2,226,643 | |
| | | | | | | | NXP B.V. / NXP Funding LLC | |
| | | | | 420,000 | | | 4.13%, 06/15/2020(1) | | | 425,250 | |
| | | | | 500,000 | | | 4.63%, 06/15/2022(1) | | | 507,500 | |
| | | | | 720,000 | | | 4.63%, 06/01/2023(1) | | | 732,600 | |
| | | | | 525,000 | | | Sensata Technologies B.V.
5.00%, 10/01/2025(1) | | | 527,305 | |
| | | | | 310,000 | | | Sensata Technologies UK Financing Co. plc
6.25%, 02/15/2026(1) | | | 320,850 | |
| | | | | | | | | | | | |
| | | | | | | | 6,013,789 | |
| | | | | | | | | | | | |
| | | | | | | Shipbuilding - 0.0% | |
| | | | | 145,000 | | | Huntington Ingalls Industries, Inc.
5.00%, 11/15/2025(1) | | | 153,337 | |
| | | | | | | | | | | | |
| | | | | | | Software - 0.3% | |
| | | | | | | | First Data Corp. | |
| | | | | 100,000 | | | 5.00%, 01/15/2024(1) | | | 100,250 | |
| | | | | 1,180,000 | | | 5.38%, 08/15/2023(1) | | | 1,198,302 | |
| | | | | | | | MSCI, Inc. | |
| | | | | 385,000 | | | 5.25%, 11/15/2024(1) | | | 393,663 | |
| | | | | 465,000 | | | 5.75%, 08/15/2025(1) | | | 482,437 | |
| | | | | 350,000 | | | Open Text Corp.
5.63%, 01/15/2023(1) | | | 353,500 | |
| | | | | 4,525,000 | | | Oracle Corp.
1.90%, 09/15/2021(4) | | | 4,541,620 | |
| | | | | | | | | | | | |
| | | | | | | | 7,069,772 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 2.1% | |
| | | | | 345,000 | | | Altice Financing S.A.
6.63%, 02/15/2023(1) | | | 338,745 | |
| | | | | | | | AT&T, Inc. | |
| | | | | 3,640,000 | | | 3.60%, 02/17/2023 | | | 3,797,172 | |
| | | | | 1,985,000 | | | 3.80%, 03/15/2022 | | | 2,108,711 | |
| | | | | 1,245,000 | | | 4.50%, 05/15/2035 | | | 1,273,626 | |
| | | | | 6,635,000 | | | 4.75%, 05/15/2046 | | | 6,800,032 | |
| | | | | 205,000 | | | 5.80%, 02/15/2019 | | | 227,213 | |
| | | | | 2,630,000 | | | Cisco Systems, Inc.
2.20%, 02/28/2021 | | | 2,710,523 | |
| | | | | 610,000 | | | CommScope, Inc.
4.38%, 06/15/2020(1) | | | 628,300 | |
| | | | | 3,005,000 | | | Digicel Group Ltd.
7.13%, 04/01/2022(5) | | | 2,234,969 | |
| | | | | 370,000 | | | Frontier Communications Corp.
10.50%, 09/15/2022 | | | 391,506 | |
| | | | | 1,340,000 | | | GTH Finance B.V.
7.25%, 04/26/2023(1) | | | 1,393,600 | |
| | | | | 7,400,000 | | | GTP Acquisition Partners I LLC
3.48%, 06/15/2050(1) | | | 7,476,812 | |
| | | | | 890,000 | | | Inmarsat Finance plc
4.88%, 05/15/2022(1) | | | 812,125 | |
| | | | | 955,000 | | | Nokia Oyj
6.63%, 05/15/2039 | | | 1,009,912 | |
| | | | | | | | Sprint Communications, Inc. | |
| | | | | 2,370,000 | | | 7.00%, 03/01/2020(1) | | | 2,481,366 | |
| | | | | 1,766,000 | | | 9.00%, 11/15/2018(1) | | | 1,880,790 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.5% - (continued) | |
| | | | | | | Telecommunications - 2.1% - (continued) | |
| | $ | | | | 970,000 | | | T-Mobile USA, Inc.
6.46%, 04/28/2019 | | $ | 985,763 | |
| | | | | | | | Telecom Italia Capital S.A. | |
| | | | | 265,000 | | | 6.00%, 09/30/2034 | | | 253,075 | |
| | | | | 90,000 | | | 6.38%, 11/15/2033 | | | 89,438 | |
| | | | | 310,000 | | | 7.72%, 06/04/2038 | | | 322,400 | |
| | | | | | | | Verizon Communications, Inc. | |
| | | | | 6,623,000 | | | 4.27%, 01/15/2036 | | | 6,778,058 | |
| | | | | 3,185,000 | | | 4.40%, 11/01/2034 | | | 3,284,203 | |
| | | | | 8,189,000 | | | 4.67%, 03/15/2055 | | | 8,282,682 | |
| | | | | 1,240,000 | | | Wind Acquisition Finance S.A.
4.75%, 07/15/2020(1) | | | 1,215,200 | |
| | | | | | | | | | | | |
| | | | | | | | 56,776,221 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.8% | |
| | | | | 1,180,000 | | | Canadian Pacific Railway Co.
9.45%, 08/01/2021 | | | 1,549,207 | |
| | | | | | | | FedEx Corp. | |
| | | | | 855,000 | | | 3.25%, 04/01/2026 | | | 894,361 | |
| | | | | 1,705,000 | | | 4.55%, 04/01/2046 | | | 1,850,087 | |
| | | | | 5,050,000 | | | Kansas City Southern
3.00%, 05/15/2023(1) | | | 5,134,360 | |
| | | | | 2,100,000 | | | Norfolk Southern Corp.
2.90%, 06/15/2026 | | | 2,160,744 | |
| | | | | | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | | | | 250,000 | | | 2.50%, 06/15/2019(1) | | | 252,724 | |
| | | | | 5,380,000 | | | 2.88%, 07/17/2018(1) | | | 5,479,083 | |
| | | | | 1,490,000 | | | 4.88%, 07/11/2022(1) | | | 1,624,902 | |
| | | | | 1,435,000 | | | Ryder System, Inc.
2.55%, 06/01/2019 | | | 1,462,447 | |
| | | | | | | | | | | | |
| | | | | | | | 20,407,915 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Corporate Bonds
(cost $912,936,641) | | $ | 938,112,581 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATIONS - 2.3% | |
| | | | | | | Argentina - 0.1% | |
| | EUR | | | | 4,090,000 | | | Argentine Republic Government International Bond
2.26%, 12/31/2038 | | $ | 2,782,331 | |
| | | | | | | | | | | | |
| | | | | | | Brazil - 0.8% | |
| | | | | | | | Brazil Notas do Tesouro Nacional | |
| | BRL | | | | 47,758,243 | | | 6.00%, 08/15/2016(7) | | | 14,796,336 | |
| | | | | 17,535,142 | | | 6.00%, 08/15/2022(7) | | | 5,344,734 | |
| | | | | | | | | | | | |
| | | | | | | | 20,141,070 | |
| | | | | | | | | | | | |
| | | | | | | Colombia - 0.1% | |
| | COP | | | | 7,967,002,485 | | | Colombian TES
3.00%, 03/25/2033(7) | | | 2,381,030 | |
| | | | | | | | | | | | |
| | | | | | | Mexico - 0.1% | |
| | $ | | | | 3,500,000 | | | Mexico Government International Bond
5.75%, 10/12/2110 | | | 3,867,500 | |
| | | | | | | | | | | | |
| | | | | | | Qatar - 0.1% | |
| | | | | 1,480,000 | | | Qatar Government International Bond
4.63%, 06/02/2046(1) | | | 1,609,020 | |
| | | | | | | | | | | | |
| | | | | | | Slovenia - 0.2% | |
| | | | | 4,600,000 | | | Slovenia Government International Bond
5.50%, 10/26/2022(5) | | | 5,222,380 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 2.3% - (continued) | |
| | | | | | | South Africa - 0.2% | |
| | | | | | | | South Africa Government Bond | |
| | ZAR | | | | 21,820,000 | | | 8.50%, 01/31/2037 | | $ | 1,345,191 | |
| | | | | 49,320,000 | | | 8.75%, 01/31/2044 | | | 3,067,233 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,412,424 | |
| | | | | | | | | | | | |
| | | | | | | Thailand - 0.2% | |
| | THB | | | | 232,840,000 | | | Bank of Thailand
1.49%, 02/23/2018 | | | 6,616,705 | |
| | | | | | | | | | | | |
| | | | | | | Tunisia - 0.1% | |
| | $ | | | | 2,975,000 | | | Banque Centrale de Tunisie S.A.
5.75%, 01/30/2025(5) | | | 2,684,938 | |
| | | | | | | | | | | | |
| | | | | | | Turkey - 0.2% | |
| | TRY | | | | 17,145,000 | | | Turkey Government Bond
7.10%, 03/08/2023 | | | 5,412,015 | |
| | | | | | | | | | | | |
| | | | | | | United Arab Emirates - 0.1% | |
| | $ | | | | 4,020,000 | | | Abu Dhabi Government International Bond
2.13%, 05/03/2021(1) | | | 4,066,029 | |
| | | | | | | | | | | | |
| | | | | | | Uruguay - 0.1% | |
| | UYU | | | | 81,132,780 | | | Uruguay Government International Bond
3.70%, 06/26/2037(7) | | | 2,105,167 | |
| | | | | | | | | | | | |
| | | | | | | Venezuela - 0.0% | |
| | $ | | | | 1,795,000 | | | Venezuela Government International Bond
6.00%, 12/09/2020(5) | | | 729,219 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Foreign Government Obligations
(cost $59,664,952) | | $ | 62,029,828 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| MUNICIPAL BONDS - 1.3% | |
| | | | | | | Development - 0.1% | |
| | | | | | | | State of California | |
| | | | | 790,000 | | | 7.60%, 11/01/2040 | | $ | 1,271,971 | |
| | | | | 175,000 | | | 7.63%, 03/01/2040 | | | 276,631 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,548,602 | |
| | | | | | | | | | | | |
| | | | | | | General - 0.5% | |
| | | | | 4,560,000 | | | Chicago Transit Auth
6.90%, 12/01/2040 | | | 5,902,628 | |
| | | | | | | | Puerto Rico Commonwealth Gov’t Employees Retirement System | | | | |
| | | | | 4,575,000 | | | 6.15%, 07/01/2038 | | | 1,784,250 | |
| | | | | 2,075,000 | | | 6.20%, 07/01/2039 | | | 809,250 | |
| | | | | 7,965,000 | | | 6.30%, 07/01/2043 | | | 3,106,350 | |
| | | | | 1,995,000 | | | 6.55%, 07/01/2058 | | | 778,050 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,380,528 | |
| | | | | | | | | | | | |
| | | | | | | General Obligation - 0.4% | |
| | | | | 6,650,000 | | | California State, GO Taxable
7.55%, 04/01/2039 | | | 10,512,120 | |
| | | | | 1,155,000 | | | Illinois State, GO
5.10%, 06/01/2033 | | | 1,110,036 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,622,156 | |
| | | | | | | | | | | | |
| | | | | | | Higher Education - 0.2% | |
| | | | | 5,580,000 | | | University of California
4.60%, 05/15/2031 | | | 6,529,102 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 1.3% - (continued) | |
| | | | | | | Utility - Electric - 0.1% | |
| | $ | | | | 1,485,000 | | | Municipal Electric Auth. Georgia
6.64%, 04/01/2057 | | $ | 1,985,727 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Municipal Bonds
(cost $33,228,000) | | $ | 34,066,115 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) | |
| | | | | | | Advertising - 0.0% | |
| | | | | 871,026 | | | Acosta Holdco, Inc.
4.25%, 09/26/2021 | | $ | 836,185 | |
| | | | | | | | | | | | |
| | | | | | | Aerospace/Defense - 0.1% | |
| | | | | 1,759,091 | | | BE Aerospace, Inc.
3.75%, 12/16/2021 | | | 1,760,410 | |
| | | | | 988,101 | | | Transdigm, Inc.
3.75%, 05/14/2022 | | | 971,738 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,732,148 | |
| | | | | | | | | | | | |
| | | | | | | Agriculture - 0.0% | |
| | | | | 717,931 | | | Pinnacle Operating Corp.
4.75%, 11/15/2018 | | | 674,855 | |
| | | | | | | | | | | | |
| | | | | | | Airlines - 0.1% | |
| | | | | 390,000 | | | American Airlines, Inc.
3.50%, 04/28/2023 | | | 385,195 | |
| | | | | 936,050 | | | Delta Air Lines, Inc.
3.25%, 10/18/2018 | | | 934,618 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,319,813 | |
| | | | | | | | | | | | |
| | | | | | | Auto Manufacturers - 0.1% | |
| | | | | | | | Chrysler Group LLC | |
| | | | | 887,926 | | | 3.25%, 12/31/2018 | | | 884,871 | |
| | | | | 1,543,463 | | | 3.50%, 05/24/2017 | | | 1,541,534 | |
| | | | | 565,453 | | | Jaguar Holding Co.
4.25%, 08/18/2022 | | | 559,657 | |
| | | | | 539,348 | | | MPG Holdco I, Inc.
3.75%, 10/20/2021 | | | 533,620 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,519,682 | |
| | | | | | | | | | | | |
| | | | | | | Auto Parts & Equipment - 0.1% | |
| | | | | 764,400 | | | CS Intermediate Holdco 2 LLC
4.00%, 04/04/2021 | | | 761,725 | |
| | | | | 1,423,427 | | | Tower Automotive Holdings USA LLC
4.00%, 04/23/2020 | | | 1,409,192 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,170,917 | |
| | | | | | | | | | | | |
| | | | | | | Chemicals - 0.2% | |
| | | | | 455,462 | | | AIlnex (Luxembourg) & Cy SCA
4.50%, 10/03/2019 | | | 452,902 | |
| | | | | 236,317 | | | AIlnex USA, Inc.
4.50%, 10/03/2019 | | | 234,989 | |
| | | | | 1,143,350 | | | Chemours Co.
3.75%, 05/12/2022 | | | 1,101,046 | |
| | | | | 2,597,373 | | | Ineos U.S. Finance LLC
3.75%, 05/04/2018 | | | 2,584,386 | |
| | | | | 630,000 | | | Nexeo Solutions LLC
0.00%, 06/09/2023(9) | | | 628,948 | |
| | | | | 678,430 | | | Univar, Inc.
4.25%, 07/01/2022 | | | 667,650 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,669,921 | |
| | | | | | | | | | | | |
| | | | | | | Coal - 0.1% | |
| | | | | 540,000 | | | American Energy - Marcellus LLC
5.25%, 08/04/2020 | | | 278,100 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Coal - 0.1% - (continued) | |
| | | | | | | | Arch Coal, Inc. | |
| | $ | | | | 670,000 | | | 5.00%, 01/31/2017(10) | | $ | 659,950 | |
| | | | | 2,865,808 | | | 7.50%, 05/16/2018 | | | 1,314,689 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,252,739 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Services - 0.2% | |
| | | | | 280,000 | | | Global Payments, Inc.
3.96%, 04/22/2023 | | | 281,190 | |
| | | | | 234,413 | | | KAR Auction Services, Inc.
4.25%, 03/09/2023 | | | 234,900 | |
| | | | | 984,061 | | | Moneygram International, Inc.
4.25%, 03/27/2020 | | | 929,013 | |
| | | | | 613,527 | | | ON Assignment, Inc.
3.75%, 06/03/2022 | | | 612,503 | |
| | | | | 680,000 | | | Russell Investment Group
6.75%, 06/01/2023 | | | 652,800 | |
| | | | | 1,256,489 | | | ServiceMaster Co.
4.25%, 07/01/2021 | | | 1,256,225 | |
| | | | | 1,685,000 | | | WEX, Inc.
0.00%, 07/01/2023(9) | | | 1,672,362 | |
| | | | | | | | | | | | |
| | | | | | | | 5,638,993 | |
| | | | | | | | | | | | |
| | | | | | | Distribution/Wholesale - 0.0% | |
| | | | | 730,850 | | | ABC Supply Co., Inc.
3.50%, 04/16/2020 | | | 728,416 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financial Services - 0.0% | |
| | | | | 765,000 | | | Delos Finance S.a.r.l.
3.50%, 03/06/2021 | | | 763,661 | |
| | | | | | | | | | | | |
| | | | | | | Electric - 0.1% | |
| | | | | 1,360,018 | | | Calpine Corp.
3.25%, 01/31/2022 | | | 1,326,018 | |
| | | | | 625,000 | | | Chief Exploration & Development LLC
7.50%, 05/16/2021 | | | 561,331 | |
| | | | | 600,000 | | | Energy Future Intermediate Holding Co. LLC
4.25%, 12/19/2016 | | | 598,500 | |
| | | | | 1,868,626 | | | Seadrill Partners Finco LLC
4.00%, 02/21/2021 | | | 829,670 | |
| | | | | 800,000 | | | Texas Competitive Electric Holdings Co. LLC
4.93%, 10/10/2017(11) | | | 267,432 | |
| | | | | | | | | | | | |
| | | | | | | | 3,582,951 | |
| | | | | | | | | | | | |
| | | | | | | Electronics - 0.1% | |
| | | | | 2,796,102 | | | CDW LLC
3.25%, 04/29/2020 | | | 2,792,215 | |
| | | | | 670,000 | | | Sensus USA, Inc.
6.50%, 03/16/2023 | | | 664,975 | |
| | | | | | | | | | | | |
| | | | | | | | 3,457,190 | |
| | | | | | | | | | | | |
| | | | | | | Entertainment - 0.0% | |
| | | | | 509,850 | | | Eldorado Resorts LLC
4.25%, 07/23/2022 | | | 510,487 | |
| | | | | 576,225 | | | Scientific Games International, Inc.
6.00%, 10/01/2021 | | | 567,582 | |
| | | | | | | | | | | | |
| | | | | | | | 1,078,069 | |
| | | | | | | | | | | | |
| | | | | | | Food - 0.2% | |
| | | | | | | | Albertsons LLC | |
| | | | | 685,419 | | | 4.50%, 08/25/2021 | | | 683,952 | |
| | | | | 309,225 | | | 4.75%, 12/21/2022 | | | 308,647 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Food - 0.2% - (continued) | |
| | $ | | | | 994,600 | | | Aramark Services, Inc.
3.25%, 02/24/2021 | | $ | 993,665 | |
| | | | | 337,125 | | | B&G Foods, Inc.
3.75%, 11/02/2022 | | | 337,377 | |
| | | | | 456,550 | | | Hostess Brands LLC
4.50%, 08/03/2022 | | | 455,637 | |
| | | | | 1,099,475 | | | JBS USA LLC
4.00%, 10/30/2022 | | | 1,096,045 | |
| | | | | 1,121,267 | | | U.S. Foods, Inc.
4.00%, 06/27/2023 | | | 1,111,737 | |
| | | | | | | | | | | | |
| | | | | | | | 4,987,060 | |
| | | | | | | | | | | | |
| | | | | | | Food Service - 0.0% | |
| | | | | 588,000 | | | Hearthside Food Solutions
4.50%, 06/02/2021 | | | 583,590 | |
| | | | | 280,000 | | | Yum! Brands, Inc.
3.19%, 06/16/2023 | | | 280,000 | |
| | | | | | | | | | | | |
| | | | | | | | 863,590 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 0.1% | |
| | | | | 374,055 | | | Alere, Inc.
4.25%, 06/18/2022 | | | 371,875 | |
| | | | | 742,601 | | | Mallinckrodt International Finance S.A.
3.25%, 03/19/2021 | | | 730,348 | |
| | | | | 431,738 | | | Sterigenics-Nordion Holdings LLC
4.25%, 05/15/2022 | | | 427,420 | |
| | | | | | | | | | | | |
| | | | | | | | 1,529,643 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 0.6% | |
| | | | | 388,050 | | | Acadia Healthcare Company, Inc.
4.50%, 02/16/2023 | | | 384,170 | |
| | | | | 1,169,914 | | | American Renal Holdings, Inc.
4.75%, 09/20/2019 | | | 1,166,989 | |
| | | | | 200,901 | | | Catalent Pharma Solutions, Inc.
4.25%, 05/20/2021 | | | 200,023 | |
| | | | | 368,438 | | | CDRH Parent, Inc.
5.25%, 07/01/2021 | | | 326,067 | |
| | | | | | | | Community Health Systems, Inc. | |
| | | | | 488,817 | | | 3.75%, 12/31/2019 | | | 474,641 | |
| | | | | 1,493,000 | | | 3.92%, 12/31/2018 | | | 1,478,384 | |
| | | | | 899,410 | | | 4.00%, 01/27/2021 | | | 875,297 | |
| | | | | 1,808,100 | | | DaVita HealthCare Partners, Inc.
3.50%, 06/24/2021 | | | 1,810,360 | |
| | | | | 835,800 | | | Envision Healthcare Corp.
4.50%, 10/28/2022 | | | 834,964 | |
| | | | | 2,124,913 | | | HCA, Inc.
3.38%, 05/01/2018 | | | 2,125,401 | |
| | | | | 1,003,503 | | | IMS Health, Inc.
3.50%, 03/17/2021 | | | 993,468 | |
| | | | | 960,000 | | | MPH Acquisition Holdings LLC
5.00%, 06/07/2023 | | | 962,160 | |
| | | | | 423,471 | | | Opal Acquisition, Inc.
5.00%, 11/27/2020 | | | 368,420 | |
| | | | | 416,825 | | | Ortho-Clinical Diagnostics, Inc.
4.75%, 06/30/2021 | | | 393,554 | |
| | | | | 512,200 | | | Surgery Center Holdings, Inc.
5.25%, 11/03/2020 | | | 509,639 | |
| | | | | 1,388,025 | | | U.S. Renal Care, Inc.
5.25%, 12/31/2022 | | | 1,385,429 | |
| | | | | 488,775 | | | Vizient, Inc.
6.25%, 02/13/2023 | | | 491,830 | |
| | | | | | | | | | | | |
| | | | | | | | 14,780,796 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Household Products/Wares - 0.0% | |
| | $ | | | | 410,000 | | | Galleria Co.
3.75%, 01/26/2023 | | $ | 408,975 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 0.5% | |
| | | | | | | | Asurion LLC | |
| | | | | 580,228 | | | 5.00%, 05/24/2019 | | | 576,724 | |
| | | | | 1,781,893 | | | 5.00%, 08/04/2022 | | | 1,754,719 | |
| | | | | 1,870,000 | | | 8.50%, 03/03/2021 | | | 1,795,200 | |
| | | | | 4,580,318 | | | Evertec Group LLC
3.25%, 04/17/2020 | | | 4,442,908 | |
| | | | | 411,075 | | | National Financial Partners Corp.
4.50%, 07/01/2020 | | | 406,537 | |
| | | | | | | | Sedgwick Claims Management Services, Inc. | |
| | | | | 2,907,588 | | | 3.75%, 03/01/2021 | | | 2,838,533 | |
| | | | | 1,250,000 | | | 6.75%, 02/28/2022 | | | 1,196,875 | |
| | | | | 994,624 | | | USI, Inc.
4.25%, 12/27/2019 | | | 980,013 | |
| | | | | | | | | | | | |
| | | | | | | | 13,991,509 | |
| | | | | | | | | | | | |
| | | | | | | Internet - 0.1% | |
| | | | | 727,744 | | | Lands’ End, Inc.
4.25%, 04/04/2021 | | | 555,509 | |
| | | | | 1,624,255 | | | Zayo Group LLC / Zayo Capital, Inc.
3.75%, 05/06/2021 | | | 1,613,810 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,169,319 | |
| | | | | | | | | | | | |
| | | | | | | Leisure Time - 0.2% | |
| | | | | 1,060,462 | | | Aristocrat Leisure Ltd.
4.75%, 10/20/2021 | | | 1,061,034 | |
| | | | | | | | Delta 2 (LUX) S.a.r.l. | |
| | | | | 2,675,000 | | | 4.75%, 07/30/2021 | | | 2,568,829 | |
| | | | | 1,140,000 | | | 7.75%, 07/31/2022 | | | 1,078,725 | |
| | | | | 250,000 | | | Station Casinos LLC
3.75%, 06/08/2023 | | | 248,438 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,957,026 | |
| | | | | | | | | | | | |
| | | | | | | Lodging - 0.2% | |
| | | | | 3,460,431 | | | Caesars Entertainment Operating Co.
0.00%, 03/01/2017(9)(12) | | | 3,453,959 | |
| | | | | 779,100 | | | Caesars Growth Properties Holdings LLC
6.25%, 05/08/2021 | | | 729,760 | |
| | | | | 995,312 | | | Hilton Worldwide Finance LLC
3.50%, 10/26/2020 | | | 995,312 | |
| | | | | 1,180,708 | | | La Quinta Intermediate Holdings LLC
3.75%, 04/14/2021 | | | 1,152,667 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,331,698 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Construction & Mining - 0.1% | |
| | | | | 1,539,526 | | | American Rock Salt Holdings LLC
4.75%, 05/20/2021 | | | 1,437,532 | |
| | | | | 603,871 | | | Neff Rental LLC
7.25%, 06/09/2021 | | | 573,677 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,011,209 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Diversified - 0.1% | |
| | | | | 1,839,792 | | | Gates Global, Inc.
4.25%, 07/06/2021 | | | 1,741,289 | |
| | | | | | | | | | | | |
| | | | | | | Media - 0.4% | |
| | | | | 934,112 | | | Advantage Sales & Marketing, Inc.
4.25%, 07/23/2021 | | | 908,816 | |
| | | | | 1,769,917 | | | AVSC Holding Corp.
4.50%, 01/24/2021 | | | 1,756,642 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Media - 0.4% - (continued) | |
| | | | | | | | Charter Communications Operating LLC | |
| | $ | | | | 2,982,750 | | | 3.00%, 07/01/2020 | | $ | 2,958,530 | |
| | | | | 374,063 | | | 3.50%, 01/24/2023 | | | 374,063 | |
| | | | | 434,850 | | | Media General, Inc.
4.00%, 07/31/2020 | | | 434,307 | |
| | | | | 710,000 | | | Neptune Finco Corp.
5.00%, 10/09/2022 | | | 710,177 | |
| | | | | 235,000 | | | Numericable U.S. LLC
5.00%, 01/15/2024 | | | 232,650 | |
| | | | | 225,000 | | | Telenet International Finance S.a.r.l.
4.25%, 06/30/2024 | | | 222,797 | |
| | | | | 1,807,438 | | | Tribune Media Co.
3.75%, 12/27/2020 | | | 1,800,660 | |
| | | | | 1,952,632 | | | Virgin Media Investment Holdings Ltd.
3.65%, 06/30/2023 | | | 1,903,152 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,301,794 | |
| | | | | | | | | | | | |
| | | | | | | Metal Fabricate/Hardware - 0.1% | |
| | | | | 1,234,380 | | | Rexnord LLC
4.00%, 08/21/2020 | | | 1,217,753 | |
| | | | | | | | | | | | |
| | | | | | | Mining - 0.1% | |
| | | | | 435,955 | | | Ardagh Holdings USA, Inc.
4.00%, 12/17/2019 | | | 435,001 | |
| | | | | 430,996 | | | FMG Resources August 2006 Pty Ltd.
4.25%, 06/30/2019 | | | 411,601 | |
| | | | | 580,615 | | | Minerals Technologies, Inc.
3.75%, 05/09/2021 | | | 579,164 | |
| | | | | | | | | | | | |
| | | | | | | | 1,425,766 | |
| | | | | | | | | | | | |
| | | | | | | Miscellaneous Manufacturing - 0.0% | |
| | | | | 215,032 | | | Husky Injection Molding Systems Ltd.
4.25%, 06/30/2021 | | | 213,352 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 0.1% | |
| | | | | 530,550 | | | Drillships Ocean Ventures, Inc.
5.50%, 07/25/2021 | | | 314,791 | |
| | | | | 1,514,040 | | | Fieldwood Energy LLC
3.88%, 10/01/2018 | | | 1,300,818 | |
| | | | | 600,000 | | | Templar Energy LLC
8.50%, 11/25/2020 | | | 150,000 | |
| | | | | | | | | | | | |
| | | | | | | | 1,765,609 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas Services - 0.0% | |
| | | | | 555,000 | | | Calpine Corp.
3.64%, 05/02/2023 | | | 548,584 | |
| | | | | | | | | | | | |
| | | | | | | Packaging & Containers - 0.3% | |
| | | | | 3,265,313 | | | Berry Plastics Holding Corp.
3.50%, 02/08/2020 | | | 3,240,823 | |
| | | | | 513,541 | | | Mauser U.S. Corp.
4.50%, 07/31/2021 | | | 502,629 | |
| | | | | 335,750 | | | Owens-Illinois, Inc.
3.50%, 09/01/2022 | | | 334,491 | |
| | | | | 1,846,731 | | | Reynolds Group Holdings, Inc.
4.50%, 12/01/2018 | | | 1,845,364 | |
| | | | | 647,833 | | | Signode Industrial Group U.S., Inc.
3.75%, 05/01/2021 | | | 641,083 | |
| | | | | | | | | | | | |
| | | | | | | | 6,564,390 | |
| | | | | | | | | | | | |
| | | | | | | Pharmaceuticals - 0.1% | |
| | | | | 1,393,000 | | | Endo Luxembourg Finance Company I S.a r.l.
3.75%, 09/26/2022 | | | 1,368,274 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Pharmaceuticals - 0.1% - (continued) | |
| | $ | | | | 840,623 | | | Valeant Pharmaceuticals International, Inc.
5.00%, 04/01/2022 | | $ | 817,271 | |
| | | | | | | | | | | | |
| | | | | | | | 2,185,545 | |
| | | | | | | | | | | | |
| | | | | | | Pipelines - 0.1% | |
| | | | | 738,882 | | | Energy Transfer Equity L.P.
4.00%, 12/02/2019 | | | 717,063 | |
| | | | | 803,025 | | | Philadelphia Energy Solutions LLC
6.25%, 04/04/2018 | | | 745,810 | |
| | | | | | | | | | | | |
| | | | | | | | 1,462,873 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate - 0.1% | |
| | | | | | | | DTZ U.S. Borrower LLC | |
| | | | | 990,000 | | | 4.25%, 11/04/2021 | | | 974,536 | |
| | | | | 415,000 | | | 9.25%, 11/04/2022 | | | 415,000 | |
| | | | | | | | | | | | |
| | | | | | | | 1,389,536 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate Investment Trusts - 0.0% | |
| | | | | 244,388 | | | Equinix, Inc.
4.00%, 01/08/2023 | | | 243,166 | |
| | | | | 837,900 | | | MGM Growth Properties LLC
4.00%, 04/25/2023 | | | 838,947 | |
| | | | | | | | | | | | |
| | | | | | | | 1,082,113 | |
| | | | | | | | | | | | |
| | | | | | | Retail - 0.2% | |
| | | | | 508,563 | | | Bass Pro Group LLC
4.00%, 06/05/2020 | | | 499,347 | |
| | | | | 601,067 | | | Burger King
3.75%, 12/10/2021 | | | 600,016 | |
| | | | | 204,488 | | | Coty, Inc.
3.75%, 10/27/2022 | | | 203,890 | |
| | | | | 466,570 | | | Dollar Tree, Inc.
3.50%, 07/06/2022 | | | 465,889 | |
| | | | | 930,964 | | | Michaels Stores, Inc.
4.00%, 01/28/2020 | | | 930,675 | |
| | | | | 1,547,810 | | | Neiman Marcus Group, Inc.
4.25%, 10/25/2020 | | | 1,387,395 | |
| | | | | 567,523 | | | Party City Holdings, Inc.
4.25%, 08/19/2022 | | | 563,266 | |
| | | | | 759,395 | | | PetSmart, Inc.
4.25%, 03/11/2022 | | | 755,507 | |
| | | | | 250,000 | | | Rite Aid Corp.
5.75%, 08/21/2020 | | | 249,688 | |
| | | | | | | | | | | | |
| | | | | | | | 5,655,673 | |
| | | | | | | | | | | | |
| | | | | | | Semiconductors - 0.2% | |
| | | | | 1,546,125 | | | Avago Technologies Cayman Ltd.
4.25%, 02/01/2023 | | | 1,546,852 | |
| | | | | 859,681 | | | Lattice Semiconductor Corp.
5.25%, 03/10/2021 | | | 840,339 | |
| | | | | | | | NXP B.V. | |
| | | | | 1,039,927 | | | 3.75%, 01/11/2020 | | | 1,038,138 | |
| | | | | 589,187 | | | 3.75%, 12/07/2020 | | | 589,923 | |
| | | | | 540,000 | | | ON Semiconductor Corp.
5.25%, 03/31/2023 | | | 541,350 | |
| | | | | | | | | | | | |
| | | | | | | | 4,556,602 | |
| | | | | | | | | | | | |
| | | | | | | Software - 0.5% | |
| | | | | 430,000 | | | Dell, Inc.
0.00%, 05/24/2023(9) | | | 428,207 | |
| | | | | 356,400 | | | Epicor Software Corp.
4.75%, 06/01/2022 | | | 349,607 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 5.6%(8) - (continued) | |
| | | | | | | Software - 0.5% - (continued) | |
| | $ | | | | 5,478,806 | | | First Data Corp.
4.45%, 03/24/2021 | | $ | 5,453,713 | |
| | | | | 831,124 | | | Hyland Software, Inc.
4.75%, 07/01/2022 | | | 824,891 | |
| | | | | 1,618,468 | | | Infor U.S., Inc.
3.75%, 06/03/2020 | | | 1,577,002 | |
| | | | | | | | Kronos, Inc. | |
| | | | | 2,654,674 | | | 4.50%, 10/30/2019 | | | 2,645,383 | |
| | | | | 593,593 | | | 9.75%, 04/30/2020 | | | 596,068 | |
| | | | | 1,153,059 | | | SS&C Technologies, Inc.
4.00%, 07/08/2022 | | | 1,151,860 | |
| | | | | 825,504 | | | Verint Systems, Inc.
3.50%, 09/06/2019 | | | 822,409 | |
| | | | | | | | | | | | |
| | | | | | | | 13,849,140 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 0.2% | |
| | | | | 302,713 | | | CommScope, Inc.
3.75%, 12/29/2022 | | | 302,525 | |
| | | | | 2,020,000 | | | Level 3 Financing, Inc.
3.50%, 05/31/2022 | | | 2,010,910 | |
| | | | | 425,612 | | | LTS Buyer LLC
4.00%, 04/13/2020 | | | 420,560 | |
| | | | | | | | Ziggo Financing Partnership | |
| | | | | 1,028,777 | | | 3.60%, 01/15/2022 | | | 1,003,058 | |
| | | | | 625,532 | | | 3.65%, 01/15/2022 | | | 609,893 | |
| | | | | 970,691 | | | 3.65%, 01/15/2022 | | | 946,424 | |
| | | | | | | | | | | | |
| | | | | | | | 5,293,370 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.0% | |
| | | | | | | | Kenan Advantage Group, Inc. | |
| | | | | 57,200 | | | 1.50%, 01/31/2017(10) | | | 56,735 | |
| | | | | 539,736 | | | 4.00%, 07/31/2022 | | | 535,353 | |
| | | | | | | | | | | | |
| | | | | | | | 592,088 | |
| | | | | | | | | | | | |
| | | | | | | Trucking & Leasing - 0.0% | |
| | | | | 1,152,457 | | | Consolidated Container Co.
5.00%, 07/03/2019 | | | 1,110,058 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Senior Floating Rate Interests
(cost $154,036,739) | | $ | 148,411,900 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 58.7% | |
| | | | | | | FHLMC - 20.2% | |
| | | | | 277,848 | | | 0.00%, 11/15/2036(13) | | $ | 253,039 | |
| | | | | 64,442,875 | | | 0.47%, 10/25/2020(2)(3) | | | 536,319 | |
| | | | | 30,901,428 | | | 2.12%, 08/25/2018(2)(3) | | | 1,057,095 | |
| | | | | 2,880,000 | | | 2.30%, 10/25/2027(2) | | | 2,877,261 | |
| | | | | 2,970,000 | | | 2.45%, 12/25/2028(2) | | | 2,989,782 | |
| | | | | 5,000,000 | | | 2.65%, 03/25/2025(2) | | | 5,020,541 | |
| | | | | 1,805,000 | | | 2.65%, 10/25/2028(2) | | | 1,819,635 | |
| | | | | 3,500,000 | | | 2.95%, 08/25/2024(2) | | | 3,557,100 | |
| | | | | 4,467,671 | | | 3.00%, 08/01/2029 | | | 4,726,168 | |
| | | | | 15,750,000 | | | 3.00%, 07/01/2031(14) | | | 16,522,119 | |
| | | | | 1,380,506 | | | 3.00%, 03/15/2033(3) | | | 168,399 | |
| | | | | 41,625,000 | | | 3.00%, 07/01/2046(14) | | | 43,150,727 | |
| | | | | 84,000,000 | | | 3.00%, 08/01/2046(14) | | | 86,921,444 | |
| | | | | 11,200,000 | | | 3.05%, 12/25/2027(2) | | | 11,414,545 | |
| | | | | 3,300,000 | | | 3.10%, 03/25/2028(2) | | | 3,376,570 | |
| | | | | 11,397,000 | | | 3.30%, 04/25/2028(2) | | | 11,716,506 | |
| | | | | 9,200,000 | | | 3.50%, 07/01/2031(14) | | | 9,736,561 | |
| | | | | 8,476,829 | | | 3.50%, 08/01/2034 | | | 9,021,020 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | FHLMC - 20.2% - (continued) | |
| | $ | | | | 47,575,000 | | | 3.50%, 07/01/2046(14) | | $ | 50,154,459 | |
| | | | | 94,300,000 | | | 3.50%, 08/01/2046(14) | | | 99,294,958 | |
| | | | | 8,420,588 | | | 4.00%, 08/01/2025 | | | 8,920,524 | |
| | | | | 6,016,891 | | | 4.00%, 07/15/2027(3) | | | 614,360 | |
| | | | | 6,568,130 | | | 4.00%, 05/01/2042 | | | 7,056,040 | |
| | | | | 1,852,405 | | | 4.00%, 08/01/2042 | | | 1,993,249 | |
| | | | | 2,875,038 | | | 4.00%, 09/01/2042 | | | 3,083,816 | |
| | | | | 893,351 | | | 4.00%, 07/01/2044 | | | 961,473 | |
| | | | | 478,316 | | | 4.00%, 06/01/2045 | | | 513,448 | |
| | | | | 4,025,590 | | | 4.00%, 01/01/2046 | | | 4,317,360 | |
| | | | | 2,282,755 | | | 4.00%, 02/01/2046 | | | 2,444,705 | |
| | | | | 12,375,000 | | | 4.00%, 07/01/2046(14) | | | 13,245,117 | |
| | | | | 60,500,000 | | | 4.00%, 08/01/2046(14) | | | 64,697,188 | |
| | | | | 1,614,338 | | | 4.50%, 03/15/2041 | | | 1,975,746 | |
| | | | | 22,175,000 | | | 4.50%, 07/01/2046(14) | | | 24,181,146 | |
| | | | | 4,967,003 | | | 4.75%, 07/15/2039 | | | 5,471,219 | |
| | | | | 1,799 | | | 5.50%, 10/01/2018 | | | 1,854 | |
| | | | | 92,369 | | | 5.50%, 03/01/2028 | | | 102,835 | |
| | | | | 165,126 | | | 5.50%, 04/01/2033 | | | 186,369 | |
| | | | | 1,700,815 | | | 5.50%, 05/01/2034 | | | 1,918,287 | |
| | | | | 2,393 | | | 5.50%, 11/01/2035 | | | 2,682 | |
| | | | | 44,181 | | | 5.50%, 05/01/2037 | | | 49,561 | |
| | | | | 101,300 | | | 5.50%, 11/01/2037 | | | 113,630 | |
| | | | | 177,116 | | | 5.50%, 02/01/2038 | | | 199,268 | |
| | | | | 73,647 | | | 5.50%, 04/01/2038 | | | 82,719 | |
| | | | | 89,921 | | | 5.50%, 06/01/2038 | | | 100,892 | |
| | | | | 10,194,123 | | | 5.50%, 08/01/2038 | | | 11,436,066 | |
| | | | | 951,829 | | | 5.50%, 09/01/2038 | | | 1,068,515 | |
| | | | | 19,556 | | | 5.50%, 12/01/2039 | | | 21,995 | |
| | | | | 257,691 | | | 5.50%, 02/01/2040 | | | 289,435 | |
| | | | | 820,388 | | | 5.50%, 05/01/2040 | | | 922,695 | |
| | | | | 832,294 | | | 5.50%, 08/01/2040 | | | 933,990 | |
| | | | | 3,290,017 | | | 5.50%, 06/01/2041 | | | 3,703,365 | |
| | | | | 41 | | | 6.00%, 04/01/2017 | | | 41 | |
| | | | | 60 | | | 6.00%, 05/01/2017 | | | 61 | |
| | | | | 91 | | | 6.00%, 07/01/2017 | | | 92 | |
| | | | | 1,746 | | | 6.00%, 07/01/2029 | | | 1,983 | |
| | | | | 410,017 | | | 6.00%, 10/01/2032 | | | 472,654 | |
| | | | | 452,001 | | | 6.00%, 11/01/2032 | | | 521,307 | |
| | | | | 506,201 | | | 6.00%, 12/01/2032 | | | 584,132 | |
| | | | | 31,686 | | | 6.00%, 11/01/2033 | | | 36,590 | |
| | | | | 58,870 | | | 6.00%, 01/01/2034 | | | 67,974 | |
| | | | | 35,224 | | | 6.00%, 02/01/2034 | | | 40,670 | |
| | | | | 430,760 | | | 6.00%, 08/01/2034 | | | 497,451 | |
| | | | | 469,989 | | | 6.00%, 09/01/2034 | | | 542,750 | |
| | | | | 347,254 | | | 6.00%, 01/01/2035 | | | 399,133 | |
| | | | | 3,496,217 | | | 6.00%, 11/01/2037 | | | 3,989,126 | |
| | | | | 1,100,000 | | | 6.00%, 07/01/2046(14) | | | 1,250,687 | |
| | | | | 264 | | | 6.50%, 07/01/2031 | | | 303 | |
| | | | | 368 | | | 6.50%, 08/01/2032 | | | 422 | |
| | | | | 1,707,409 | | | 6.50%, 07/15/2036 | | | 1,951,102 | |
| | | | | 275,783 | | | 6.50%, 12/01/2037 | | | 335,798 | |
| | | | | 197 | | | 7.50%, 09/01/2029 | | | 222 | |
| | | | | 3,277 | | | 7.50%, 11/01/2031 | | | 3,808 | |
| | | | | | | | | | | | |
| | | | | | | | 535,620,103 | |
| | | | | | | | | | | | |
| | | | | | | FNMA - 28.7% | |
| | | | | 238,614 | | | 0.00%, 03/25/2036(13) | | | 212,165 | |
| | | | | 2,100,328 | | | 0.00%, 06/25/2036(13) | | | 1,851,851 | |
| | | | | 8,377,377 | | | 1.69%, 05/25/2046(3) | | | 523,121 | |
| | | | | 7,701,583 | | | 1.84%, 04/25/2055(2)(3) | | | 475,620 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | FNMA - 28.7% - (continued) | |
| | $ | | | | 4,635,685 | | | 1.88%, 06/25/2055(2)(3) | | $ | 307,372 | |
| | | | | 7,476,658 | | | 1.95%, 08/25/2044(2)(3) | | | 513,131 | |
| | | | | 135,000 | | | 2.44%, 01/01/2023 | | | 140,584 | |
| | | | | 1,579,189 | | | 2.50%, 06/25/2028(3) | | | 137,748 | |
| | | | | 62,225,000 | | | 2.50%, 07/01/2031(14) | | | 64,377,313 | |
| | | | | 296,934 | | | 2.50%, 01/01/2043 | | | 300,635 | |
| | | | | 6,103,931 | | | 2.50%, 02/01/2043 | | | 6,179,997 | |
| | | | | 2,527,657 | | | 2.50%, 03/01/2043 | | | 2,559,156 | |
| | | | | 5,011,579 | | | 2.50%, 05/01/2043 | | | 5,074,037 | |
| | | | | 3,146,069 | | | 2.50%, 06/01/2043 | | | 3,185,272 | |
| | | | | 2,373,080 | | | 2.50%, 04/01/2045 | | | 2,402,665 | |
| | | | | 9,780,000 | | | 2.65%, 06/01/2025 | | | 10,191,470 | |
| | | | | 13,400,000 | | | 2.69%, 04/01/2025 | | | 14,005,795 | |
| | | | | 4,090,202 | | | 2.78%, 02/01/2027 | | | 4,301,693 | |
| | | | | 1,444,234 | | | 3.00%, 09/25/2027(3) | | | 135,817 | |
| | | | | 10,477,406 | | | 3.00%, 01/25/2028(3) | | | 955,625 | |
| | | | | 4,452,369 | | | 3.00%, 04/25/2028(3) | | | 457,107 | |
| | | | | 65,732,000 | | | 3.00%, 07/01/2031(14) | | | 68,910,760 | |
| | | | | 44,275,000 | | | 3.00%, 07/01/2046(14) | | | 45,947,408 | |
| | | | | 21,800,000 | | | 3.00%, 08/01/2046(14) | | | 22,582,581 | |
| | | | | 540,000 | | | 3.16%, 12/01/2026 | | | 585,223 | |
| | | | | 501,423 | | | 3.24%, 12/01/2026 | | | 546,368 | |
| | | | | 573,603 | | | 3.34%, 04/01/2024 | | | 626,556 | |
| | | | | 215,349 | | | 3.45%, 01/01/2024 | | | 235,997 | |
| | | | | 227,052 | | | 3.47%, 01/01/2024 | | | 249,714 | |
| | | | | 2,491,736 | | | 3.50%, 05/25/2030(3) | | | 294,729 | |
| | | | | 6,904,352 | | | 3.50%, 01/01/2046 | | | 7,297,939 | |
| | | | | 8,169,215 | | | 3.50%, 02/01/2046 | | | 8,634,913 | |
| | | | | 164,200,000 | | | 3.50%, 07/14/2046 | | | 173,256,648 | |
| | | | | 142,500,000 | | | 3.50%, 08/01/2046(14) | | | 150,181,634 | |
| | | | | 567,730 | | | 3.67%, 08/01/2023 | | | 629,429 | |
| | | | | 155,000 | | | 3.70%, 10/01/2023 | | | 172,864 | |
| | | | | 2,037,367 | | | 3.74%, 06/01/2026 | | | 2,290,425 | |
| | | | | 210,000 | | | 3.76%, 03/01/2024 | | | 235,503 | |
| | | | | 315,000 | | | 3.86%, 12/01/2025 | | | 357,468 | |
| | | | | 165,000 | | | 3.86%, 11/01/2023 | | | 185,888 | |
| | | | | 538,572 | | | 3.87%, 10/01/2025 | | | 608,764 | |
| | | | | 690,608 | | | 3.89%, 05/01/2030 | | | 776,422 | |
| | | | | 730,286 | | | 3.93%, 10/01/2023 | | | 822,840 | |
| | | | | 301,282 | | | 3.96%, 05/01/2034 | | | 337,726 | |
| | | | | 194,798 | | | 3.97%, 05/01/2029 | | | 222,783 | |
| | | | | 4,235,152 | | | 4.00%, 06/01/2025 | | | 4,515,381 | |
| | | | | 1,208,206 | | | 4.00%, 10/01/2025 | | | 1,288,336 | |
| | | | | 7,373,104 | | | 4.00%, 10/01/2040 | | | 7,932,342 | |
| | | | | 2,970,032 | | | 4.00%, 11/01/2040 | | | 3,195,798 | |
| | | | | 2,228,862 | | | 4.00%, 12/01/2040 | | | 2,397,336 | |
| | | | | 1,099,960 | | | 4.00%, 02/01/2041 | | | 1,183,162 | |
| | | | | 2,639,740 | | | 4.00%, 03/01/2041 | | | 2,838,246 | |
| | | | | 1,111,765 | | | 4.00%, 03/25/2042(3) | | | 165,581 | |
| | | | | 1,084,979 | | | 4.00%, 08/01/2042 | | | 1,168,774 | |
| | | | | 2,422,617 | | | 4.00%, 09/01/2042 | | | 2,609,718 | |
| | | | | 648,146 | | | 4.00%, 11/25/2042(3) | | | 96,044 | |
| | | | | 1,717,835 | | | 4.00%, 05/01/2045 | | | 1,845,907 | |
| | | | | 1,197,424 | | | 4.00%, 06/01/2045 | | | 1,283,835 | |
| | | | | 4,296,734 | | | 4.00%, 05/01/2046 | | | 4,623,492 | |
| | | | | 1,760,621 | | | 4.00%, 06/01/2046 | | | 1,889,611 | |
| | | | | 450,000 | | | 4.00%, 07/01/2046(14) | | | 482,471 | |
| | | | | 37,000,000 | | | 4.00%, 08/01/2046(14) | | | 39,635,188 | |
| | | | | 2,829,726 | | | 4.02%, 11/01/2028 | | | 3,239,000 | |
| | | | | 448,792 | | | 4.06%, 10/01/2028 | | | 524,555 | |
| | | | | 1,345,131 | | | 4.50%, 04/01/2025 | | | 1,426,969 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | FNMA - 28.7% - (continued) | |
| | $ | | | | 1,574,600 | | | 4.50%, 07/25/2027(3) | | $ | 154,332 | |
| | | | | 6,985,939 | | | 4.50%, 08/01/2040 | | | 7,697,432 | |
| | | | | 6,819,085 | | | 4.50%, 10/01/2040 | | | 7,471,166 | |
| | | | | 3,108,044 | | | 4.50%, 10/01/2041 | | | 3,402,979 | |
| | | | | 2,699,314 | | | 4.50%, 09/01/2043 | | | 2,944,462 | |
| | | | | 13,600,000 | | | 4.50%, 07/01/2046(14) | | | 14,845,179 | |
| | | | | 2,702 | | | 5.00%, 02/01/2018 | | | 2,774 | |
| | | | | 67,920 | | | 5.00%, 04/01/2018 | | | 69,782 | |
| | | | | 416,876 | | | 5.00%, 05/01/2018 | | | 428,630 | |
| | | | | 489,440 | | | 5.00%, 06/01/2018 | | | 502,807 | |
| | | | | 13,429 | | | 5.00%, 07/01/2018 | | | 13,817 | |
| | | | | 146,408 | | | 5.00%, 09/01/2018 | | | 150,539 | |
| | | | | 393,870 | | | 5.00%, 01/01/2020 | | | 407,245 | |
| | | | | 1,445,196 | | | 5.00%, 06/01/2022 | | | 1,552,076 | |
| | | | | 514,859 | | | 5.00%, 06/01/2025 | | | 553,188 | |
| | | | | 1,287,381 | | | 5.00%, 04/25/2038 | | | 1,404,336 | |
| | | | | 947,499 | | | 5.46%, 05/25/2042(2)(3) | | | 108,219 | |
| | | | | 2,673 | | | 5.50%, 01/01/2017 | | | 2,689 | |
| | | | | 63,045 | | | 5.50%, 02/01/2018 | | | 64,308 | |
| | | | | 1,959 | | | 5.50%, 06/01/2018 | | | 2,018 | |
| | | | | 11,105 | | | 5.50%, 11/01/2018 | | | 11,380 | |
| | | | | 74,482 | | | 5.50%, 08/01/2019 | | | 78,228 | |
| | | | | 136,600 | | | 5.50%, 09/01/2019 | | | 142,579 | |
| | | | | 33,702 | | | 5.50%, 10/01/2019 | | | 35,114 | |
| | | | | 15,281 | | | 5.50%, 01/01/2020 | | | 15,951 | |
| | | | | 10,675 | | | 5.50%, 03/01/2020 | | | 11,159 | |
| | | | | 663,281 | | | 5.50%, 05/01/2020 | | | 698,880 | |
| | | | | 353,058 | | | 5.50%, 06/01/2022 | | | 384,584 | |
| | | | | 423,946 | | | 5.50%, 06/01/2033 | | | 480,767 | |
| | | | | 425,963 | | | 5.50%, 08/01/2033 | | | 482,907 | |
| | | | | 1,972,410 | | | 5.50%, 09/01/2033 | | | 2,238,395 | |
| | | | | 1,918,916 | | | 5.50%, 12/01/2033 | | | 2,208,614 | |
| | | | | 1,648,134 | | | 5.50%, 01/01/2034 | | | 1,870,398 | |
| | | | | 7,104,789 | | | 5.50%, 11/01/2035 | | | 8,067,364 | |
| | | | | 2,264,053 | | | 5.50%, 04/01/2036 | | | 2,558,461 | |
| | | | | 1,730,259 | | | 5.50%, 09/01/2036 | | | 1,962,089 | |
| | | | | 185,943 | | | 5.50%, 01/01/2037 | | | 209,028 | |
| | | | | 1,132,252 | | | 5.50%, 04/25/2037 | | | 1,286,197 | |
| | | | | 4,669,166 | | | 5.50%, 06/25/2042(3) | | | 912,737 | |
| | | | | 64 | | | 6.00%, 10/01/2016 | | | 64 | |
| | | | | 4,979 | | | 6.00%, 03/01/2022 | | | 5,099 | |
| | | | | 732,993 | | | 6.00%, 12/01/2032 | | | 850,677 | |
| | | | | 778,382 | | | 6.00%, 01/01/2033 | | | 896,776 | |
| | | | | 147,201 | | | 6.00%, 02/01/2033 | | | 168,703 | |
| | | | | 995,203 | | | 6.00%, 03/01/2033 | | | 1,152,177 | |
| | | | | 2,156,424 | | | 6.00%, 02/01/2037 | | | 2,470,971 | |
| | | | | 2 | | | 6.50%, 07/01/2016 | | | 2 | |
| | | | | 285 | | | 6.50%, 05/01/2017 | | | 289 | |
| | | | | 1,489 | | | 6.50%, 05/01/2031 | | | 1,713 | |
| | | | | 1,461 | | | 6.50%, 09/01/2031 | | | 1,719 | |
| | | | | 2,555 | | | 6.50%, 07/01/2032 | | | 3,008 | |
| | | | | 2,365 | | | 7.00%, 07/01/2029 | | | 2,857 | |
| | | | | 102 | | | 7.00%, 12/01/2030 | | | 105 | |
| | | | | 900 | | | 7.00%, 02/01/2032 | | | 1,002 | |
| | | | | 382 | | | 7.00%, 03/01/2032 | | | 469 | |
| | | | | 2,194 | | | 7.00%, 09/01/2032 | | | 2,380 | |
| | | | | 65,329 | | | 7.00%, 10/01/2037 | | | 69,618 | |
| | | | | 3,826 | | | 7.50%, 10/01/2022 | | | 4,304 | |
| | | | | 2,474 | | | 7.50%, 06/01/2027 | | | 3,022 | |
| | | | | 3,157 | | | 7.50%, 10/01/2029 | | | 3,315 | |
| | | | | 21,000 | | | 7.50%, 03/01/2030 | | | 23,790 | |
| | | | | 14,602 | | | 7.50%, 04/01/2030 | | | 16,800 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | FNMA - 28.7% - (continued) | |
| | $ | | | | 1,604 | | | 7.50%, 06/01/2030 | | $ | 1,909 | |
| | | | | 2,867 | | | 7.50%, 07/01/2030 | | | 3,405 | |
| | | | | 802 | | | 7.50%, 08/01/2030 | | | 954 | |
| | | | | 6,316 | | | 7.50%, 10/01/2030 | | | 6,437 | |
| | | | | 8,530 | | | 7.50%, 01/01/2031 | | | 8,781 | |
| | | | | 4,911 | | | 7.50%, 02/01/2031 | | | 5,106 | |
| | | | | 36,664 | | | 7.50%, 05/01/2031 | | | 44,667 | |
| | | | | 16,926 | | | 7.50%, 06/01/2031 | | | 18,630 | |
| | | | | 2,616 | | | 7.50%, 08/01/2031 | | | 3,103 | |
| | | | | 42,627 | | | 7.50%, 09/01/2031 | | | 45,088 | |
| | | | | 389 | | | 7.50%, 05/01/2032 | | | 467 | |
| | | | | | | | | | | | |
| | | | | | | | 757,870,719 | |
| | | | | | | | | | | | |
| | | | | | | GNMA - 9.8% | |
| | | | | 11,782,563 | | | 3.00%, 03/15/2045 | | | 12,319,286 | |
| | | | | 543,491 | | | 3.00%, 04/15/2045 | | | 568,248 | |
| | | | | 6,870,210 | | | 3.00%, 07/15/2045 | | | 7,183,163 | |
| | | | | 136,992 | | | 3.00%, 08/15/2045 | | | 143,233 | |
| | | | | 27,150,000 | | | 3.00%, 07/01/2046(14) | | | 28,387,128 | |
| | | | | 27,500,000 | | | 3.00%, 08/01/2046(14) | | | 28,697,217 | |
| | | | | 606,544 | | | 3.50%, 11/15/2042 | | | 651,989 | |
| | | | | 18,972 | | | 3.50%, 12/15/2042 | | | 20,265 | |
| | | | | 425,464 | | | 3.50%, 02/15/2043 | | | 454,357 | |
| | | | | 17,892 | | | 3.50%, 03/15/2043 | | | 19,109 | |
| | | | | 2,488,119 | | | 3.50%, 04/15/2043 | | | 2,656,953 | |
| | | | | 8,581,828 | | | 3.50%, 05/15/2043 | | | 9,152,067 | |
| | | | | 62,750,000 | | | 3.50%, 07/01/2046(14) | | | 66,600,792 | |
| | | | | 1,600,000 | | | 3.50%, 08/01/2046(14) | | | 1,695,938 | |
| | | | | 9,853,866 | | | 4.00%, 07/20/2040 | | | 10,618,151 | |
| | | | | 11,047,150 | | | 4.00%, 09/20/2040 | | | 11,903,997 | |
| | | | | 16,465,819 | | | 4.00%, 10/20/2040 | | | 17,750,424 | |
| | | | | 2,364,719 | | | 4.00%, 12/20/2040 | | | 2,540,709 | |
| | | | | 781,725 | | | 4.00%, 05/16/2042(3) | | | 109,794 | |
| | | | | 493,879 | | | 4.00%, 01/20/2044(3) | | | 105,484 | |
| | | | | 402,171 | | | 4.50%, 11/15/2039 | | | 444,195 | |
| | | | | 3,593,558 | | | 4.50%, 05/15/2040 | | | 4,007,449 | |
| | | | | 11,709,307 | | | 4.50%, 05/20/2040 | | | 12,752,050 | |
| | | | | 512,157 | | | 4.50%, 07/15/2041 | | | 568,333 | |
| | | | | 2,700,000 | | | 4.50%, 07/01/2046(14) | | | 2,897,423 | |
| | | | | 1,227,393 | | | 5.00%, 05/20/2040 | | | 1,365,400 | |
| | | | | 2,992,888 | | | 5.00%, 06/15/2041 | �� | | 3,358,707 | |
| | | | | 3,732,935 | | | 5.00%, 10/16/2041(3) | | | 635,322 | |
| | | | | 4,743,672 | | | 5.00%, 03/15/2044 | | | 5,323,588 | |
| | | | | 5,100,000 | | | 5.00%, 07/01/2046(14) | | | 5,674,384 | |
| | | | | 732,985 | | | 5.50%, 03/15/2033 | | | 831,945 | |
| | | | | 1,200,215 | | | 5.50%, 04/15/2033 | | | 1,396,046 | |
| | | | | 1,210,646 | | | 5.50%, 05/15/2033 | | | 1,407,890 | |
| | | | | 1,958,197 | | | 5.50%, 10/20/2034 | | | 2,204,674 | |
| | | | | 2,200 | | | 6.00%, 12/15/2023 | | | 2,514 | |
| | | | | 1,252 | | | 6.00%, 01/15/2029 | | | 1,431 | |
| | | | | 2,205 | | | 6.00%, 04/15/2029 | | | 2,586 | |
| | | | | 70,145 | | | 6.00%, 12/15/2031 | | | 81,678 | |
| | | | | 1,350 | | | 6.00%, 10/15/2032 | | | 1,583 | |
| | | | | 34,993 | | | 6.00%, 06/15/2033 | | | 41,067 | |
| | | | | 3,717 | | | 6.00%, 03/15/2034 | | | 4,362 | |
| | | | | 80,164 | | | 6.00%, 08/15/2034 | | | 92,107 | |
| | | | | 200,926 | | | 6.00%, 09/15/2034 | | | 235,922 | |
| | | | | 65,504 | | | 6.00%, 02/15/2035 | | | 74,878 | |
| | | | | 441,541 | | | 6.00%, 12/15/2035 | | | 512,254 | |
| | | | | 78,222 | | | 6.00%, 02/15/2036 | | | 89,422 | |
| | | | | 309,327 | | | 6.00%, 03/15/2036 | | | 358,409 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | GNMA - 9.8% - (continued) | |
| | $ | | | | 34,079 | | | 6.00%, 04/15/2036 | | $ | 38,956 | |
| | | | | 220,543 | | | 6.00%, 05/15/2036 | | | 256,442 | |
| | | | | 486,187 | | | 6.00%, 06/15/2036 | | | 562,474 | |
| | | | | 276,925 | | | 6.00%, 07/15/2036 | | | 317,968 | |
| | | | | 65,912 | | | 6.00%, 08/15/2036 | | | 77,185 | |
| | | | | 308,499 | | | 6.00%, 02/15/2037 | | | 358,036 | |
| | | | | 1,892 | | | 6.00%, 05/15/2037 | | | 2,165 | |
| | | | | 659,407 | | | 6.00%, 06/15/2037 | | | 764,028 | |
| | | | | 524,368 | | | 6.00%, 07/15/2037 | | | 600,045 | |
| | | | | 127,566 | | | 6.00%, 08/15/2037 | | | 148,169 | |
| | | | | 92,790 | | | 6.00%, 09/15/2037 | | | 106,184 | |
| | | | | 168,360 | | | 6.00%, 10/15/2037 | | | 192,773 | |
| | | | | 169,659 | | | 6.00%, 11/15/2037 | | | 194,041 | |
| | | | | 182,641 | | | 6.00%, 12/15/2037 | | | 211,053 | |
| | | | | 290,141 | | | 6.00%, 01/15/2038 | | | 335,162 | |
| | | | | 32,649 | | | 6.00%, 02/15/2038 | | | 37,375 | |
| | | | | 59,013 | | | 6.00%, 05/15/2038 | | | 67,571 | |
| | | | | 11,413 | | | 6.00%, 06/15/2038 | | | 13,077 | |
| | | | | 75,087 | | | 6.00%, 08/15/2038 | | | 85,954 | |
| | | | | 198,661 | | | 6.00%, 09/15/2038 | | | 227,402 | |
| | | | | 214,565 | | | 6.00%, 10/15/2038 | | | 247,949 | |
| | | | | 484,359 | | | 6.00%, 11/15/2038 | | | 553,976 | |
| | | | | 264,361 | | | 6.00%, 12/15/2038 | | | 302,323 | |
| | | | | 3,092 | | | 6.00%, 01/15/2039 | | | 3,542 | |
| | | | | 44,525 | | | 6.00%, 08/15/2039 | | | 50,969 | |
| | | | | 156,602 | | | 6.00%, 11/15/2039 | | | 179,110 | |
| | | | | 142,602 | | | 6.00%, 02/15/2040 | | | 163,119 | |
| | | | | 1,630,695 | | | 6.00%, 06/15/2040 | | | 1,865,061 | |
| | | | | 310,969 | | | 6.00%, 07/15/2040 | | | 355,661 | |
| | | | | 1,671,860 | | | 6.00%, 06/15/2041 | | | 1,916,557 | |
| | | | | 28,532 | | | 6.50%, 06/15/2028 | | | 32,551 | |
| | | | | 966 | | | 6.50%, 07/15/2028 | | | 1,103 | |
| | | | | 4,498 | | | 6.50%, 08/15/2028 | | | 5,131 | |
| | | | | 21,182 | | | 6.50%, 09/15/2028 | | | 24,166 | |
| | | | | 4,484 | | | 6.50%, 10/15/2028 | | | 4,751 | |
| | | | | 6,493 | | | 6.50%, 11/15/2028 | | | 7,409 | |
| | | | | 13,337 | | | 6.50%, 12/15/2028 | | | 15,215 | |
| | | | | 20,071 | | | 6.50%, 01/15/2029 | | | 22,899 | |
| | | | | 33,927 | | | 6.50%, 02/15/2029 | | | 38,719 | |
| | | | | 347,682 | | | 6.50%, 03/15/2029 | | | 396,654 | |
| | | | | 52,099 | | | 6.50%, 04/15/2029 | | | 59,437 | |
| | | | | 32,358 | | | 6.50%, 05/15/2029 | | | 36,916 | |
| | | | | 218,532 | | | 6.50%, 06/15/2029 | | | 249,312 | |
| | | | | 10,549 | | | 6.50%, 07/15/2029 | | | 12,034 | |
| | | | | 492 | | | 6.50%, 03/15/2031 | | | 562 | |
| | | | | 275,395 | | | 6.50%, 04/15/2031 | | | 314,185 | |
| | | | | 88,393 | | | 6.50%, 05/15/2031 | | | 104,297 | |
| | | | | 14,348 | | | 6.50%, 06/15/2031 | | | 16,833 | |
| | | | | 294,231 | | | 6.50%, 07/15/2031 | | | 337,239 | |
| | | | | 133,326 | | | 6.50%, 08/15/2031 | | | 152,114 | |
| | | | | 175,268 | | | 6.50%, 09/15/2031 | | | 200,842 | |
| | | | | 168,293 | | | 6.50%, 10/15/2031 | | | 191,997 | |
| | | | | 517,981 | | | 6.50%, 11/15/2031 | | | 594,592 | |
| | | | | 91,966 | | | 6.50%, 12/15/2031 | | | 104,920 | |
| | | | | 390,348 | | | 6.50%, 01/15/2032 | | | 448,170 | |
| | | | | 90,156 | | | 6.50%, 02/15/2032 | | | 107,115 | |
| | | | | 84,469 | | | 6.50%, 03/15/2032 | | | 96,367 | |
| | | | | 298,828 | | | 6.50%, 04/15/2032 | | | 356,354 | |
| | | | | 1,064 | | | 6.50%, 05/15/2032 | | | 1,214 | |
| | | | | 54,903 | | | 6.50%, 06/15/2032 | | | 62,636 | |
| | | | | 1,215 | | | 6.50%, 09/15/2032 | | | 1,467 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 58.7% - (continued) | |
| | | | | | | GNMA - 9.8% - (continued) | |
| | $ | | | | 11,040 | | | 7.00%, 06/20/2030 | | $ | 12,612 | |
| | | | | 1,015 | | | 7.00%, 02/15/2031 | | | 1,119 | |
| | | | | 213 | | | 7.00%, 06/15/2031 | | | 230 | |
| | | | | 230 | | | 7.00%, 08/15/2031 | | | 269 | |
| | | | | 858 | | | 8.50%, 11/15/2024 | | | 861 | |
| | | | | | | | | | | | |
| | | | 260,190,542 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $1,534,758,214) | | $ | 1,553,681,364 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 3.3% | |
| | | | U.S. Treasury Securities - 3.3% | |
| | | | U.S. Treasury Bonds - 3.2% | |
| | | | | 43,517,870 | | | 0.25%, 01/15/2025(7)(15) | | $ | 44,180,821 | |
| | | | | 1,350,000 | | | 2.50%, 02/15/2045(15) | | | 1,405,530 | |
| | | | | 7,439,000 | | | 2.50%, 02/15/2046(15) | | | 7,746,149 | |
| | | | | 2,800,000 | | | 3.00%, 11/15/2044(15)(16) | | | 3,219,345 | |
| | | | | 5,595,000 | | | 3.00%, 05/15/2045(15) | | | 6,430,971 | |
| | | | | 9,544,000 | | | 3.00%, 11/15/2045(15) | | | 10,974,111 | |
| | | | | 9,260,000 | | | 3.13%, 08/15/2044(15)(16) | | | 10,900,029 | |
| | | | | | | | | | | | |
| | | | 84,856,956 | |
| | | | | | | | | | | | |
| | | | U.S. Treasury Notes - 0.1% | |
| | | | | 1,300,000 | | | 0.50%, 09/30/2016(15) | | | 1,300,484 | |
| | | | | 200,000 | | | 2.38%, 08/15/2024(15) | | | 215,281 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,515,765 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $82,484,245) | | $ | 86,372,721 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| PREFERRED STOCKS - 0.1% | |
| | | | Banks - 0.1% | |
| | | | | 2,242 | | | U.S. Bancorp Series A(2)(6) | | $ | 1,897,293 | |
| | | | | | | | | | | | |
| | | | Diversified Financials - 0.0% | |
| | | | | 30,000 | | | Citigroup Capital XIII(2) | | | 782,100 | |
| | | | | 2,000 | | | Discover Financial Services Series B(6) | | | 52,880 | |
| | | | | | | | | | | | |
| | | | 834,980 | |
| | | | | | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $2,476,420) | | $ | 2,732,273 | |
| | | | | | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $3,619,646,402) | | $ | 3,665,159,721 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS - 4.2% | |
| | | | Other Investment Pools & Funds - 4.2% | |
| | | | | 110,972,984 | | | Federated Prime Obligations Fund | | $ | 110,972,985 | |
| | | | | | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $110,972,984) | | $ | 110,972,985 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | Total Investments
(cost $3,730,619,386)^ | | | 142.8 | % | | $ | 3,776,132,706 | |
| | | | Other Assets and Liabilities | | | (42.8 | )% | | | (1,131,666,985 | ) |
| | | | | | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,644,465,721 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types. |
| | Equity Industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 81,230,121 | |
Unrealized Depreciation | | | (35,716,801 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 45,513,320 | |
| | | | |
| (1) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $743,704,649, which represents 28.1% of total net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at June 30, 2016. |
| (3) | Securities disclosed are interest-only strips. |
| (4) | This security, or a portion of this security, was purchased on a when-issued, delayed-delivery or delayed-draw basis. The cost of these securities was $6,907,229 at June 30, 2016. |
| (5) | These securities were sold to the Fund under Regulation S, rules governing offers and sales made outside the United States without registration under the Securities Act of 1933, as amended. The Fund may only be able to resell these securities in the United States if an exemption from registration under the federal and state securities laws is available, or the Fund may only be able to sell these securities outside of the United States (such as on a foreign exchange) to a non-U.S. person. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $49,529,277, which represents 1.9% of total net assets. |
| (6) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (7) | The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (8) | Senior floating rate interests generally pay interest rates which are periodically adjusted by reference to a base short-term, floating lending rate plus a premium. The base lending rates are primarily the LIBOR, and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit rate or other base lending rates used by commercial lenders. Senior floating rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. Unless otherwise noted, the interest rate disclosed for these securities represents the average coupon as of June 30, 2016. |
| (9) | All or a portion of this position represents an unsettled loan commitment. The coupon rate will be determined at time of settlement. |
| (10) | This security, or a portion of this security, has unfunded loan commitments. As of June 30, 2016, the aggregate value of the unfunded commitment was $716,685, which rounds to zero percent of total net assets. |
| (11) | The issuer is in bankruptcy. However, the investment held by the Fund is current with respect to interest payments. |
| (12) | Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. |
| (13) | Securities disclosed are principal-only strips. |
| (14) | Represents or includes a TBA transaction. |
| (15) | This security, or a portion of this security, has been pledged as collateral in connection with OTC swap contracts. |
| (16) | This security, or a portion of this security, has been pledged as collateral in connection with futures contracts. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Swaption Contracts Outstanding at June 30, 2016 | |
Description | | Counter-
party | | | Exercise Price/
FX Rate/ Rate | | | Expiration
Date | | | Number of
Contracts | | | Market
Value† | | | Premiums
Paid
(Received)
by Fund | | | Unrealized
Appreciation/
(Depreciation) | |
Written swaption contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Calls | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Default Swaption CDX.NA.IG.26 | | | GSC | | | | 82.50 USD | | | | 07/20/16 | | | | USD | | | | (198,795,000 | ) | | $ | (503,719 | ) | | $ | (459,217 | ) | | $ | (44,502 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Written swaption contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Puts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Default Swaption CDX.NA.IG.26 | | | GSC | | | | 82.50 USD | | | | 07/20/16 | | | | USD | | | | (198,795,000 | ) | | $ | (251,738 | ) | | $ | (450,271 | ) | | $ | 198,533 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total written swaption contracts | | | | | | | | | | | | | | | | | | | (397,590,000 | ) | | $ | (755,457 | ) | | $ | (909,488 | ) | | $ | 154,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at June 30, 2016 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury 2-Year Note Future | | | 317 | | | | 09/30/2016 | | | $ | 69,036,950 | | | $ | 69,527,016 | | | $ | 490,066 | |
U.S. Treasury 5-Year Note Future | | | 4,562 | | | | 09/30/2016 | | | | 548,097,509 | | | | 557,312,455 | | | | 9,214,946 | |
U.S. Treasury CBT Ultra Long Term Bond Future | | | 428 | | | | 09/21/2016 | | | | 76,201,883 | | | | 79,768,500 | | | | 3,566,617 | |
U.S. Treasury Long Bond Future | | | 193 | | | | 09/21/2016 | | | | 31,587,967 | | | | 33,262,344 | | | | 1,674,377 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 14,946,006 | |
| | | | | | | | | | | | | | | | | | | | |
Short position contracts: | | | | | | | | | | | | | | | | | | | | |
Euro-Bund Future | | | 163 | | | | 09/08/2016 | | | $ | 29,401,935 | | | $ | 30,230,206 | | | $ | (828,271 | ) |
U.S. 10-Year Ultra Future | | | 17 | | | | 09/21/2016 | | | | 2,386,776 | | | | 2,476,422 | | | | (89,646 | ) |
U.S. Treasury 10-Year Note Future | | | 1,970 | | | | 09/21/2016 | | | | 255,762,201 | | | | 261,979,219 | | | | (6,217,018 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | (7,134,935 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total futures contracts | | | | | | | | | | | | | | | | | | $ | 7,811,071 | |
| | | | | | | | | | | | | | | | | | | | |
TBA Sale Commitments Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
FHLMC, 5.00% | | $ | 1,625,000 | | | | 07/01/2046 | | | $ | (1,793,791 | ) | | $ | (10,354 | ) |
FHLMC, 5.50% | | | 5,100,000 | | | | 07/01/2046 | | | | (5,684,145 | ) | | | (26,333 | ) |
FNMA, 3.00% | | | 37,600,000 | | | | 08/01/2046 | | | | (38,951,250 | ) | | | — | |
FNMA, 3.50% | | | 6,850,000 | | | | 07/01/2031 | | | | (7,258,429 | ) | | | (7,192 | ) |
FNMA, 3.50% | | | 84,450,000 | | | | 07/01/2046 | | | | (88,878,474 | ) | | | 77 | |
FNMA, 4.00% | | | 9,400,000 | | | | 07/01/2031 | | | | (9,739,282 | ) | | | 23,500 | |
FNMA, 4.00% | | | 875,000 | | | | 07/01/2046 | | | | (938,139 | ) | | | (351 | ) |
FNMA, 4.50% | | | 20,375,000 | | | | 07/01/2046 | | | | (22,240,480 | ) | | | 13,553 | |
FNMA, 4.50% | | | 6,700,000 | | | | 08/01/2046 | | | | (7,309,281 | ) | | | — | |
FNMA, 5.00% | | | 700,000 | | | | 07/01/2046 | | | | (777,743 | ) | | | (2,493 | ) |
FNMA, 5.50% | | | 18,000,000 | | | | 07/01/2046 | | | | (20,233,125 | ) | | | (81,563 | ) |
FNMA, 6.00% | | | 4,800,000 | | | | 07/01/2046 | | | | (5,489,150 | ) | | | (13,400 | ) |
GNMA, 4.00% | | | 44,499,000 | | | | 07/01/2046 | | | | (47,565,257 | ) | | | (46,541 | ) |
| | | | | | | | | | | | | | | | |
Total (proceeds $256,707,449) | | | $ | (256,858,546 | ) | | $ | (151,097 | ) |
| | | | | | | | | | | | | | | | |
At June 30, 2016, the aggregate market value of these securities represents (9.7)% of total net assets.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at June 30, 2016 | |
Reference Entity | | Counter-
party | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate/
Implied Credit
Spread(b) | | | Expiration
Date | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | |
ABX.HE.AA.06-1 | | BCLY | | | USD | | | | 2,076,819 | | | | (0.32)% | | | | 07/25/45 | | | $ | 395,673 | | | $ | — | | | $ | 395,790 | | | $ | 117 | |
ABX.HE.AAA.06-1 | | BCLY | | | USD | | | | 318,611 | | | | (0.18)% | | | | 07/25/45 | | | | 7,164 | | | | — | | | | 7,075 | | | | (89 | ) |
ABX.HE.AAA.06-1 | | JPM | | | USD | | | | 131,139 | | | | (0.18)% | | | | 07/25/45 | | | | 3,070 | | | | — | | | | 2,926 | | | | (144 | ) |
ABX.HE.AAA.06-1 | | GSC | | | USD | | | | 15,700 | | | | (0.18)% | | | | 07/25/45 | | | | 1,285 | | | | — | | | | 350 | | | | (935 | ) |
ABX.HE.AAA.06-1 | | BOA | | | USD | | | | 159,767 | | | | (0.18)% | | | | 07/25/45 | | | | 8,687 | | | | — | | | | 3,563 | | | | (5,124 | ) |
ABX.HE.AAA.06-1 | | MSC | | | USD | | | | 120,980 | | | | (0.18)% | | | | 07/25/45 | | | | 9,905 | | | | — | | | | 2,698 | | | | (7,207 | ) |
ABX.HE.AAA.06-2 | | JPM | | | USD | | | | 799,544 | | | | (0.11)% | | | | 05/25/46 | | | | 104,474 | | | | — | | | | 97,180 | | | | (7,294 | ) |
ABX.HE.AAA.06-2 | | BOA | | | USD | | | | 1,345,217 | | | | (0.11)% | | | | 05/25/46 | | | | 306,037 | | | | — | | | | 163,505 | | | | (142,532 | ) |
ABX.HE.AAA.07-1 | | MSC | | | USD | | | | 2,277,461 | | | | (0.09)% | | | | 08/25/37 | | | | 520,554 | | | | — | | | | 561,557 | | | | 41,003 | |
ABX.HE.AAA.07-1 | | GSC | | | USD | | | | 1,689,243 | | | | (0.09)% | | | | 08/25/37 | | | | 397,564 | | | | — | | | | 416,527 | | | | 18,963 | |
ABX.HE.AAA.07-1 | | MSC | | | USD | | | | 184,761 | | | | (0.09)% | | | | 08/25/37 | | | | 44,474 | | | | — | | | | 45,557 | | | | 1,083 | |
ABX.HE.AAA.07-1 | | CSI | | | USD | | | | 4,106,218 | | | | (0.09)% | | | | 08/25/37 | | | | 1,111,186 | | | | — | | | | 1,012,496 | | | | (98,690 | ) |
ABX.HE.PENAAA.06-2 | | BCLY | | | USD | | | | 515,521 | | | | (0.11)% | | | | 05/25/46 | | | | 62,683 | | | | — | | | | 53,240 | | | | (9,443 | ) |
ABX.HE.PENAAA.06-2 | | JPM | | | USD | | | | 691,576 | | | | (0.11)% | | | | 05/25/46 | | | | 181,539 | | | | — | | | | 84,058 | | | | (97,481 | ) |
ABX.HE.PENAAA.06-2 | | GSC | | | USD | | | | 1,266,430 | | | | (0.11)% | | | | 05/25/46 | | | | 316,608 | | | | — | | | | 153,937 | | | | (162,671 | ) |
ABX.HE.PENAAA.06-2 | | JPM | | | USD | | | | 1,594,224 | | | | (0.11)% | | | | 05/25/46 | | | | 376,137 | | | | — | | | | 193,770 | | | | (182,367 | ) |
ABX.HE.PENAAA.06-2 | | MSC | | | USD | | | | 1,595,196 | | | | (0.11)% | | | | 05/25/46 | | | | 386,835 | | | | — | | | | 193,888 | | | | (192,947 | ) |
CDX.EM.25 | | BCLY | | | USD | | | | 55,817,000 | | | | (1.00)% | | | | 06/20/21 | | | | 4,480,517 | | | | — | | | | 4,159,375 | | | | (321,142 | ) |
CDX.EM.25 | | BOA | | | USD | | | | 3,575,000 | | | | (1.00)% | | | | 06/20/21 | | | | 308,192 | | | | — | | | | 266,402 | | | | (41,790 | ) |
CDX.EM.25 | | GSC | | | USD | | | | 40,931,000 | | | | (1.00)% | | | | 06/20/21 | | | | 3,560,468 | | | | — | | | | 3,050,099 | | | | (510,369 | ) |
CMBX.NA.A.7 | | JPM | | | USD | | | | 2,965,000 | | | | (2.00)% | | | | 01/17/47 | | | | — | | | | (59,165 | ) | | | 203,558 | | | | 262,723 | |
CMBX.NA.A.7 | | BCLY | | | USD | | | | 320,000 | | | | (2.00)% | | | | 01/17/47 | | | | — | | | | (1,796 | ) | | | 21,970 | | | | 23,766 | |
CMBX.NA.AA.2 | | BOA | | | USD | | | | 3,123,559 | | | | (0.15)% | | | | 03/15/49 | | | | 1,177,752 | | | | — | | | | 1,311,395 | | | | 133,643 | |
CMBX.NA.AA.2 | | BOA | | | USD | | | | 1,779,683 | | | | (0.15)% | | | | 03/15/49 | | | | 668,488 | | | | — | | | | 747,141 | | | | 78,653 | |
CMBX.NA.AA.2 | | GSC | | | USD | | | | 211,275 | | | | (0.15)% | | | | 03/15/49 | | | | 63,394 | | | | — | | | | 88,702 | | | | 25,308 | |
CMBX.NA.AA.7 | | CSI | | | USD | | | | 3,745,000 | | | | (1.50)% | | | | 01/17/47 | | | | — | | | | (18,792 | ) | | | 155,319 | | | | 174,111 | |
CMBX.NA.AA.7 | | CSI | | | USD | | | | 2,750,000 | | | | (1.50)% | | | | 01/17/47 | | | | — | | | | (24,186 | ) | | | 114,053 | | | | 138,239 | |
CMBX.NA.AA.7 | | CSI | | | USD | | | | 2,725,000 | | | | (1.50)% | | | | 01/17/47 | | | | 10,371 | | | | — | | | | 113,016 | | | | 102,645 | |
CMBX.NA.AA.7 | | CSI | | | USD | | | | 2,580,000 | | | | (1.50)% | | | | 01/17/47 | | | | 11,596 | | | | — | | | | 107,002 | | | | 95,406 | |
CMBX.NA.AA.7 | | CSI | | | USD | | | | 2,575,000 | | | | (1.50)% | | | | 01/17/47 | | | | 13,473 | | | | — | | | | 106,796 | | | | 93,323 | |
CMBX.NA.AA.7 | | MSC | | | USD | | | | 1,745,000 | | | | (1.50)% | | | | 01/17/47 | | | | — | | | | (14,564 | ) | | | 72,372 | | | | 86,936 | |
CMBX.NA.AA.7 | | MSC | | | USD | | | | 545,000 | | | | (1.50)% | | | | 01/17/47 | | | | — | | | | (6,220 | ) | | | 22,604 | | | | 28,824 | |
CMBX.NA.AA.7 | | MSC | | | USD | | | | 1,300,000 | | | | (1.50)% | | | | 01/17/47 | | | | 89,983 | | | | — | | | | 53,916 | | | | (36,067 | ) |
CMBX.NA.AA.8 | | BCLY | | | USD | | | | 1,410,000 | | | | (1.50)% | | | | 10/17/57 | | | | 104,330 | | | | — | | | | 102,104 | | | | (2,226 | ) |
CMBX.NA.AJ.2 | | GSC | | | USD | | | | 3,552,229 | | | | (1.09)% | | | | 03/15/49 | | | | 255,030 | | | | — | | | | 490,815 | | | | 235,785 | |
CMBX.NA.AJ.2 | | DEUT | | | USD | | | | 3,447,310 | | | | (1.09)% | | | | 03/15/49 | | | | 297,591 | | | | — | | | | 476,093 | | | | 178,502 | |
CMBX.NA.AJ.2 | | CSI | | | USD | | | | 2,750,354 | | | | (1.09)% | | | | 03/15/49 | | | | 216,268 | | | | — | | | | 379,840 | | | | 163,572 | |
CMBX.NA.AJ.2 | | GSC | | | USD | | | | 861,828 | | | | (1.09)% | | | | 03/15/49 | | | | 61,873 | | | | — | | | | 119,023 | | | | 57,150 | |
CMBX.NA.AJ.2 | | CBK | | | USD | | | | 520,844 | | | | (1.09)% | | | | 03/15/49 | | | | 43,313 | | | | — | | | | 71,932 | | | | 28,619 | |
CMBX.NA.AJ.4 | | MSC | | | USD | | | | 5,235,091 | | | | (0.96)% | | | | 02/17/51 | | | | 935,703 | | | | — | | | | 1,463,524 | | | | 527,821 | |
CMBX.NA.AJ.4 | | CSI | | | USD | | | | 3,064,083 | | | | (0.96)% | | | | 02/17/51 | | | | 548,464 | | | | — | | | | 856,596 | | | | 308,132 | |
CMBX.NA.AJ.4 | | DEUT | | | USD | | | | 2,935,796 | | | | (0.96)% | | | | 02/17/51 | | | | 546,485 | | | | — | | | | 820,731 | | | | 274,246 | |
CMBX.NA.AJ.4 | | CBK | | | USD | | | | 2,353,571 | | | | (0.96)% | | | | 02/17/51 | | | | 425,428 | | | | — | | | | 657,965 | | | | 232,537 | |
CMBX.NA.AJ.4 | | GSC | | | USD | | | | 1,075,636 | | | | (0.96)% | | | | 02/17/51 | | | | 176,183 | | | | — | | | | 300,706 | | | | 124,523 | |
CMBX.NA.AJ.4 | | MSC | | | USD | | | | 4,154,521 | | | | (0.96)% | | | | 02/17/51 | | | | 1,624,132 | | | | — | | | | 1,161,439 | | | | (462,693 | ) |
CMBX.NA.AM.2 | | MSC | | | USD | | | | 1,695,836 | | | | (0.50)% | | | | 03/15/49 | | | | 8,214 | | | | — | | | | 9,829 | | | | 1,615 | |
CMBX.NA.AM.2 | | DEUT | | | USD | | | | 3,311,352 | | | | (0.50)% | | | | 03/15/49 | | | | 190,403 | | | | — | | | | 19,192 | | | | (171,211 | ) |
CMBX.NA.AM.2 | | CSI | | | USD | | | | 3,313,877 | | | | (0.50)% | | | | 03/15/49 | | | | 202,975 | | | | — | | | | 19,207 | | | | (183,768 | ) |
CMBX.NA.AM.4 | | CBK | | | USD | | | | 605,000 | | | | (0.50)% | | | | 02/17/51 | | | | 13,458 | | | | — | | | | 16,708 | | | | 3,250 | |
CMBX.NA.AM.4 | | MSC | | | USD | | | | 2,410,000 | | | | (0.50)% | | | | 02/17/51 | | | | 540,111 | | | | — | | | | 66,556 | | | | (473,555 | ) |
CMBX.NA.AS.6 | | CSI | | | USD | | | | 6,520,000 | | | | (1.00)% | | | | 05/11/63 | | | | 83,885 | | | | — | | | | 116,187 | | | | 32,302 | |
CMBX.NA.AS.6 | | CSI | | | USD | | | | 1,035,000 | | | | (1.00)% | | | | 05/11/63 | | | | — | | | | (2,012 | ) | | | 18,444 | | | | 20,456 | |
CMBX.NA.AS.7 | | CSI | | | USD | | | | 3,650,000 | | | | (1.00)% | | | | 01/17/47 | | | | 82,021 | | | | — | | | | 98,232 | | | | 16,211 | |
CMBX.NA.AS.7 | | CBK | | | USD | | | | 2,900,000 | | | | (1.00)% | | | | 01/17/47 | | | | 64,896 | | | | — | | | | 78,047 | | | | 13,151 | |
CMBX.NA.AS.7 | | CSI | | | USD | | | | 490,000 | | | | (1.00)% | | | | 01/17/47 | | | | 2,524 | | | | — | | | | 13,187 | | | | 10,663 | |
CMBX.NA.AS.7 | | GSC | | | USD | | | | 2,340,000 | | | | (1.00)% | | | | 01/17/47 | | | | 67,660 | | | | — | | | | 63,106 | | | | (4,554 | ) |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at June 30, 2016 - (continued) | |
Reference Entity | | Counter-
party | | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate/
Implied Credit
Spread(b) | | | Expiration
Date | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: – (continued) | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: – (continued) | | | | | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.AS.8 | | | DEUT | | | | USD | | | | 1,115,000 | | | | (1.00)% | | | | 10/17/57 | | | $ | 83,153 | | | $ | — | | | $ | 53,503 | | | $ | (29,650 | ) |
CMBX.NA.BBB.6 | | | GSC | | | | USD | | | | 1,960,000 | | | | (3.00)% | | | | 05/11/63 | | | | 125,532 | | | | — | | | | 143,974 | | | | 18,442 | |
CMBX.NA.BBB.7 | | | MSC | | | | USD | | | | 5,005,000 | | | | (3.00)% | | | | 01/17/47 | | | | 457,047 | | | | — | | | | 506,921 | | | | 49,874 | |
CMBX.NA.BBB.7 | | | CSI | | | | USD | | | | 1,765,000 | | | | (3.00)% | | | | 01/17/47 | | | | 145,214 | | | | — | | | | 178,470 | | | | 33,256 | |
CMBX.NA.BBB.7 | | | DEUT | | | | USD | | | | 900,000 | | | | (3.00)% | | | | 01/17/47 | | | | 67,242 | | | | — | | | | 91,004 | | | | 23,762 | |
CMBX.NA.BBB.7 | | | CSI | | | | USD | | | | 900,000 | | | | (3.00)% | | | | 01/17/47 | | | | 69,953 | | | | — | | | | 91,004 | | | | 21,051 | |
CMBX.NA.BBB.7 | | | CSI | | | | USD | | | | 2,020,000 | | | | (3.00)% | | | | 01/17/47 | | | | 185,364 | | | | — | | | | 204,254 | | | | 18,890 | |
CMBX.NA.BBB.7 | | | GSC | | | | USD | | | | 1,555,000 | | | | (3.00)% | | | | 01/17/47 | | | | 148,369 | | | | — | | | | 157,236 | | | | 8,867 | |
CMBX.NA.BBB.7 | | | GSC | | | | USD | | | | 705,000 | | | | (3.00)% | | | | 01/17/47 | | | | 65,059 | | | | — | | | | 71,404 | | | | 6,345 | |
CMBX.NA.BBB.7 | | | GSC | | | | USD | | | | 1,410,000 | | | | (3.00)% | | | | 01/17/47 | | | | 137,704 | | | | — | | | | 142,574 | | | | 4,870 | |
CMBX.NA.BBB.7 | | | DEUT | | | | USD | | | | 920,000 | | | | (3.00)% | | | | 01/17/47 | | | | 89,690 | | | | — | | | | 93,027 | | | | 3,337 | |
CMBX.NA.BBB.7 | | | MSC | | | | USD | | | | 795,000 | | | | (3.00)% | | | | 01/17/47 | | | | 79,728 | | | | — | | | | 80,520 | | | | 792 | |
CMBX.NA.BBB.7 | | | DEUT | | | | USD | | | | 950,000 | | | | (3.00)% | | | | 01/17/47 | | | | 120,821 | | | | — | | | | 96,060 | | | | (24,761 | ) |
CMBX.NA.BBB.7 | | | MSC | | | | USD | | | | 1,350,000 | | | | (3.00)% | | | | 01/17/47 | | | | 167,178 | | | | — | | | | 136,507 | | | | (30,671 | ) |
CMBX.NA.BBB.7 | | | GSC | | | | USD | | | | 905,000 | | | | (3.00)% | | | | 01/17/47 | | | | 129,104 | | | | — | | | | 91,510 | | | | (37,594 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 23,180,214 | | | $ | (126,735 | ) | | $ | 23,539,268 | | | $ | 485,789 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.A.2 | | | MLI | | | | USD | | | | 212,031 | | | | 0.25% | | | | 03/15/49 | | | $ | — | | | $ | (130,805 | ) | | $ | (141,213 | ) | | $ | (10,408 | ) |
CMBX.NA.A.2 | | | GSC | | | | USD | | | | 368,264 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (224,471 | ) | | | (245,184 | ) | | | (20,713 | ) |
CMBX.NA.A.2 | | | MLI | | | | USD | | | | 496,970 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (306,157 | ) | | | (330,837 | ) | | | (24,680 | ) |
CMBX.NA.A.2 | | | MLI | | | | USD | | | | 1,026,675 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (633,461 | ) | | | (683,543 | ) | | | (50,082 | ) |
CMBX.NA.A.2 | | | GSC | | | | USD | | | | 1,182,908 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (727,692 | ) | | | (787,562 | ) | | | (59,870 | ) |
CMBX.NA.A.2 | | | MSC | | | | USD | | | | 1,141,989 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (698,420 | ) | | | (760,318 | ) | | | (61,898 | ) |
CMBX.NA.A.2 | | | CSI | | | | USD | | | | 1,577,210 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (974,437 | ) | | | (1,050,083 | ) | | | (75,646 | ) |
CMBX.NA.A.2 | | | BOA | | | | USD | | | | 1,521,413 | | | | 0.25% | | | | 03/15/49 | | | | — | | | | (837,488 | ) | | | (1,012,933 | ) | | | (175,445 | ) |
CMBX.NA.A.6 | | | GSC | | | | USD | | | | 1,915,000 | | | | 2.00% | | | | 05/11/63 | | | | 24,998 | | | | — | | | | (96,814 | ) | | | (121,812 | ) |
CMBX.NA.AAA.6 | | | JPM | | | | USD | | | | 30,061,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (1,238,671 | ) | | | (471,684 | ) | | | 766,987 | |
CMBX.NA.AAA.6 | | | UBS | | | | USD | | | | 15,710,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (418,543 | ) | | | (246,504 | ) | | | 172,039 | |
CMBX.NA.AAA.6 | | | JPM | | | | USD | | | | 8,150,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (259,064 | ) | | | (127,881 | ) | | | 131,183 | |
CMBX.NA.AAA.6 | | | UBS | | | | USD | | | | 6,630,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (214,654 | ) | | | (104,031 | ) | | | 110,623 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 5,850,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (193,030 | ) | | | (91,792 | ) | | | 101,238 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 5,710,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (190,811 | ) | | | (89,595 | ) | | | 101,216 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 5,978,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (192,782 | ) | | | (93,800 | ) | | | 98,982 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 2,855,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (97,913 | ) | | | (44,797 | ) | | | 53,116 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 5,505,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (127,520 | ) | | | (86,378 | ) | | | 41,142 | |
CMBX.NA.AAA.6 | | | CSI | | | | USD | | | | 1,660,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (61,371 | ) | | | (26,047 | ) | | | 35,324 | |
CMBX.NA.AAA.6 | | | DEUT | | | | USD | | | | 3,610,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (87,993 | ) | | | (56,645 | ) | | | 31,348 | |
CMBX.NA.AAA.6 | | | GSC | | | | USD | | | | 1,830,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (58,979 | ) | | | (28,714 | ) | | | 30,265 | |
CMBX.NA.AAA.6 | | | DEUT | | | | USD | | | | 1,570,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (53,417 | ) | | | (24,635 | ) | | | 28,782 | |
CMBX.NA.AAA.6 | | | MSC | | | | USD | | | | 1,335,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (45,421 | ) | | | (20,947 | ) | | | 24,474 | |
CMBX.NA.AAA.6 | | | CSI | | | | USD | | | | 2,635,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (62,659 | ) | | | (41,345 | ) | | | 21,314 | |
CMBX.NA.AAA.6 | | | CSI | | | | USD | | | | 2,635,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (62,583 | ) | | | (41,346 | ) | | | 21,237 | |
CMBX.NA.AAA.6 | | | MSC | | | | USD | | | | 2,520,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (59,185 | ) | | | (39,541 | ) | | | 19,644 | |
CMBX.NA.AAA.6 | | | MSC | | | | USD | | | | 990,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (33,246 | ) | | | (15,533 | ) | | | 17,713 | |
CMBX.NA.AAA.6 | | | GSC | | | | USD | | | | 820,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (27,882 | ) | | | (12,866 | ) | | | 15,016 | |
CMBX.NA.AAA.6 | | | MLI | | | | USD | | | | 1,719,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (40,827 | ) | | | (26,972 | ) | | | 13,855 | |
CMBX.NA.AAA.6 | | | GSC | | | | USD | | | | 610,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (20,307 | ) | | | (9,572 | ) | | | 10,735 | |
CMBX.NA.AAA.6 | | | MSC | | | | USD | | | | 1,065,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (25,294 | ) | | | (16,711 | ) | | | 8,583 | |
CMBX.NA.AAA.6 | | | GSC | | | | USD | | | | 14,810,000 | | | | 0.50% | | | | 05/11/63 | | | | — | | | | (173,076 | ) | | | (232,382 | ) | | | (59,306 | ) |
CMBX.NA.BB.6 | | | CSI | | | | USD | | | | 5,525,000 | | | | 5.00% | | | | 05/11/63 | | | | — | | | | (646,699 | ) | | | (753,851 | ) | | | (107,152 | ) |
CMBX.NA.BB.6 | | | CSI | | | | USD | | | | 1,906,000 | | | | 5.00% | | | | 05/11/63 | | | | 31,606 | | | | — | | | | (260,061 | ) | | | (291,667 | ) |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 2,005,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (677,224 | ) | | | (533,633 | ) | | | 143,591 | |
CMBX.NA.BB.8 | | | MSC | | | | USD | | | | 2,005,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (618,320 | ) | | | (533,633 | ) | | | 84,687 | |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 2,005,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (604,545 | ) | | | (533,633 | ) | | | 70,912 | |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 910,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (282,349 | ) | | | (242,197 | ) | | | 40,152 | |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 915,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (162,581 | ) | | | (243,528 | ) | | | (80,947 | ) |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at June 30, 2016 - (continued) | |
Reference Entity | | Counter-
party | | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate/
Implied Credit
Spread(b) | | | Expiration
Date | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: – (continued) | | | | | | | | | | | | | | | | | |
Sell protection: – (continued) | | | | | | | | | | | | | | | | | |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 915,000 | | | | 5.00% | | | | 10/17/57 | | | $ | — | | | $ | (147,403 | ) | | $ | (243,529 | ) | | $ | (96,126 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 500,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (36,645 | ) | | | (133,076 | ) | | | (96,431 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 910,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (132,948 | ) | | | (242,197 | ) | | | (109,249 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 870,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (105,619 | ) | | | (231,551 | ) | | | (125,932 | ) |
CMBX.NA.BB.8 | | | JPM | | | | USD | | | | 770,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (56,433 | ) | | | (204,936 | ) | | | (148,503 | ) |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 1,080,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (110,923 | ) | | | (287,443 | ) | | | (176,520 | ) |
CMBX.NA.BB.8 | | | MLI | | | | USD | | | | 1,350,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (173,568 | ) | | | (359,304 | ) | | | (185,736 | ) |
CMBX.NA.BB.8 | | | GSC | | | | USD | | | | 1,350,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (159,765 | ) | | | (359,304 | ) | | | (199,539 | ) |
CMBX.NA.BB.8 | | | BCLY | | | | USD | | | | 1,350,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (156,151 | ) | | | (359,304 | ) | | | (203,153 | ) |
CMBX.NA.BB.8 | | | MSC | | | | USD | | | | 1,410,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (162,917 | ) | | | (375,273 | ) | | | (212,356 | ) |
CMBX.NA.BB.8 | | | UBS | | | | USD | | | | 1,455,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (168,351 | ) | | | (387,250 | ) | | | (218,899 | ) |
CMBX.NA.BB.8 | | | BCLY | | | | USD | | | | 1,535,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (182,740 | ) | | | (408,542 | ) | | | (225,802 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 1,535,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (180,043 | ) | | | (408,542 | ) | | | (228,499 | ) |
CMBX.NA.BB.8 | | | MLI | | | | USD | | | | 1,500,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (138,178 | ) | | | (399,227 | ) | | | (261,049 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 1,535,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (128,345 | ) | | | (408,542 | ) | | | (280,197 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 1,955,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (232,697 | ) | | | (520,326 | ) | | | (287,629 | ) |
CMBX.NA.BB.8 | | | BCLY | | | | USD | | | | 1,410,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (74,923 | ) | | | (375,273 | ) | | | (300,350 | ) |
CMBX.NA.BB.8 | | | BOA | | | | USD | | | | 2,095,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (147,241 | ) | | | (557,586 | ) | | | (410,345 | ) |
CMBX.NA.BB.8 | | | BCLY | | | | USD | | | | 2,085,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (126,476 | ) | | | (554,925 | ) | | | (428,449 | ) |
CMBX.NA.BB.8 | | | CSI | | | | USD | | | | 3,070,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (369,000 | ) | | | (817,083 | ) | | | (448,083 | ) |
CMBX.NA.BB.8 | | | BCLY | | | | USD | | | | 4,235,000 | | | | 5.00% | | | | 10/17/57 | | | | — | | | | (477,212 | ) | | | (1,127,150 | ) | | | (649,938 | ) |
CMBX.NA.BB.9 | | | GSC | | | | USD | | | | 675,000 | | | | 5.00% | | | | 09/15/58 | | | | — | | | | (189,165 | ) | | | (197,369 | ) | | | (8,204 | ) |
CMBX.NA.BB.9 | | | GSC | | | | USD | | | | 675,000 | | | | 5.00% | | | | 09/15/58 | | | | — | | | | (187,532 | ) | | | (197,369 | ) | | | (9,837 | ) |
CMBX.NA.BB.9 | | | GSC | | | | USD | | | | 1,350,000 | | | | 5.00% | | | | 09/15/58 | | | | — | | | | (378,331 | ) | | | (394,740 | ) | | | (16,409 | ) |
CMBX.NA.BB.9 | | | MLI | | | | USD | | | | 675,000 | | | | 5.00% | | | | 09/17/58 | | | | — | | | | (191,110 | ) | | | (197,370 | ) | | | (6,260 | ) |
CMBX.NA.BB.9 | | | MLI | | | | USD | | | | 665,000 | | | | 5.00% | | | | 09/17/58 | | | | — | | | | (183,213 | ) | | | (194,446 | ) | | | (11,233 | ) |
CMBX.NA.BB.9 | | | JPM | | | | USD | | | | 720,000 | | | | 5.00% | | | | 09/17/58 | | | | — | | | | (198,366 | ) | | | (210,528 | ) | | | (12,162 | ) |
PrimeX.ARM.2 | | | MSC | | | | USD | | | | 3,660,637 | | | | 4.58% | | | | 12/25/37 | | | | — | | | | (268,645 | ) | | | 155,273 | | | | 423,918 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 56,604 | | | $ | (16,333,817 | ) | | $ | (20,155,653 | ) | | $ | (3,878,440 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total traded indices | | | | | | | | | | | $ | 23,236,818 | | | $ | (16,460,552 | ) | | $ | 3,383,615 | | | $ | (3,392,651 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swaps on single-name issues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | |
Brazilian Government International Bond | | | GSC | | | | USD | | | | 2,230,000 | | | | (1.00)% /3.08% | | | | 06/20/21 | | | $ | 249,217 | | | $ | — | | | $ | 212,090 | | | $ | (37,127 | ) |
Colombia (Republic of) | | | GSC | | | | USD | | | | 2,070,000 | | | | (1.00)% /2.01% | | | | 06/20/21 | | | | 126,550 | | | | — | | | | 98,037 | | | | (28,513 | ) |
Marathon Oil Corp. | | | JPM | | | | USD | | | | 240,000 | | | | (1.00)% /3.09% | | | | 06/20/20 | | | | 50,823 | | | | — | | | | 18,369 | | | | (32,454 | ) |
United Mexican States | | | GSC | | | | USD | | | | 2,215,000 | | | | (1.00)% /0.73% | | | | 06/20/18 | | | | — | | | | (8,698 | ) | | | (12,335 | ) | | | (3,637 | ) |
United Mexican States | | | BCLY | | | | USD | | | | 3,150,000 | | | | (1.00)% /0.73% | | | | 06/20/18 | | | | — | | | | (10,510 | ) | | | (17,543 | ) | | | (7,033 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 426,590 | | | $ | (19,208 | ) | | $ | 298,618 | | | $ | (108,764 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swaps on single-name issues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | | |
Russian Foreign Bond - Eurobond | | | CBK | | | | USD | | | | 7,120,000 | | | | 1.00% /1.85% | | | | 06/20/21 | | | $ | — | | | $ | (503,968 | ) | | $ | (230,358 | ) | | $ | 273,610 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total single-name issues | | | $ | 426,590 | | | $ | (523,176 | ) | | $ | 68,260 | | | $ | 164,846 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC contracts | | | $ | 23,663,408 | | | $ | (16,983,728 | ) | | $ | 3,451,875 | | | $ | (3,227,805 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (b) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, U.S. municipal issues or sovereign government issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The percentage shown is the implied credit spread on June 30, 2016. For credit default swap agreements on indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Credit spreads are unaudited. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts Outstanding at June 30, 2016 | |
Reference Entity | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Cost
Basis | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | |
CDX.NA.HY.25 | | USD | | | 4,118,400 | | | | (5.00 | )% | | | 12/20/20 | | | $ | (144,210 | ) | | $ | (172,401 | ) | | $ | (28,191 | ) |
CDX.NA.HY.25 | | USD | | | 124,802,000 | | | | (5.00 | )% | | | 06/20/21 | | | | (2,089,917 | ) | | | (3,999,765 | ) | | | (1,909,848 | ) |
CDX.NA.HY.26 | | USD | | | 45,865,000 | | | | (5.00 | )% | | | 06/20/21 | | | | (785,511 | ) | | | (1,469,923 | ) | | | (684,412 | ) |
CDX.NA.IG.26 | | USD | | | 38,926,000 | | | | (1.00 | )% | | | 06/20/21 | | | | (354,544 | ) | | | (412,908 | ) | | | (58,364 | ) |
ITRAXX.EUR.25 | | EUR | | | 28,882,000 | | | | (1.00 | )% | | | 06/20/21 | | | | (220,324 | ) | | | (305,053 | ) | | | (84,729 | ) |
ITRAXX.XOV.25 | | EUR | | | 12,346,000 | | | | (5.00 | )% | | | 06/20/21 | | | | (756,710 | ) | | | (893,836 | ) | | | (137,126 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | (4,351,216 | ) | | $ | (7,253,886 | ) | | $ | (2,902,670 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | (4,351,216 | ) | | $ | (7,253,886 | ) | | $ | (2,902,670 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Interest Rate Swap Contracts Outstanding at June 30, 2016 | |
Counterparty | | Payments made
by Fund | | | Payments received
by Fund | | | Notional
Amount | | | Expiration
Date | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
BOA | | | 1.81% Fixed | | | | CPURNSA | | | | USD | | | | 50,115,000 | | | | 09/04/25 | | | $ | — | | | $ | — | | | $ | (1,194,521 | ) | | $ | (1,194,521 | ) |
BOA | | | 1.82% Fixed | | | | CPURNSA | | �� | | USD | | | | 39,085,000 | | | | 09/22/25 | | | | — | | | | — | | | | (949,155 | ) | | | (949,155 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | — | | | $ | (2,143,676 | ) | | $ | (2,143,676 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Interest Rate Swap Contracts Outstanding at June 30, 2016 | |
Payments made by Fund | | Payments received
by Fund | | Notional
Amount | | | Expiration
Date | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
3M USD LIBOR | | 1.63% Fixed | | USD | | | 47,667,000 | | | | 06/15/26 | | | $ | — | | | $ | — | | | $ | (1,186,151 | ) | | $ | (1,186,151 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at June 30, 2016 | |
Currency | | Buy/Sell | | Delivery
Date | | | Counterparty | | Contract
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
BRL | | Buy | | | 07/05/16 | | | MSC | | $ | 1,132,353 | | | $ | 1,246,456 | | | $ | 114,103 | |
BRL | | Buy | | | 07/05/16 | | | CIB | | | 2,591,654 | | | | 2,702,726 | | | | 111,072 | |
BRL | | Buy | | | 07/05/16 | | | GSC | | | 3,958,191 | | | | 3,949,183 | | | | (9,008 | ) |
BRL | | Sell | | | 07/05/16 | | | CIB | | | 2,708,892 | | | | 2,702,727 | | | | 6,165 | |
BRL | | Sell | | | 07/05/16 | | | MSC | | | 1,249,299 | | | | 1,246,456 | | | | 2,843 | |
BRL | | Sell | | | 07/05/16 | | | GSC | | | 3,360,045 | | | | 3,949,183 | | | | (589,138 | ) |
BRL | | Sell | | | 08/02/16 | | | CIB | | | 2,571,876 | | | | 2,679,105 | | | | (107,229 | ) |
BRL | | Sell | | | 08/17/16 | | | BNP | | | 2,983,345 | | | | 3,158,771 | | | | (175,426 | ) |
BRL | | Sell | | | 08/17/16 | | | MSC | | | 12,725,259 | | | | 14,444,478 | | | | (1,719,219 | ) |
CNY | | Buy | | | 07/28/16 | | | JPM | | | 2,666,294 | | | | 2,513,356 | | | | (152,938 | ) |
CNY | | Sell | | | 07/28/16 | | | DEUT | | | 2,013,657 | | | | 1,995,348 | | | | 18,309 | |
CNY | | Sell | | | 07/28/16 | | | GSC | | | 523,954 | | | | 518,008 | | | | 5,946 | |
COP | | Sell | | | 07/21/16 | | | SSG | | | 2,334,935 | | | | 2,383,905 | | | | (48,970 | ) |
EUR | | Buy | | | 07/29/16 | | | JPM | | | 1,003,931 | | | | 1,010,979 | | | | 7,048 | |
EUR | | Buy | | | 07/29/16 | | | RBC | | | 1,827,323 | | | | 1,834,205 | | | | 6,882 | |
EUR | | Buy | | | 03/15/17 | | | CBK | | | 2,369,850 | | | | 2,392,953 | | | | 23,103 | |
EUR | | Buy | | | 03/15/17 | | | BOA | | | 962,014 | | | | 941,490 | | | | (20,524 | ) |
EUR | | Buy | | | 03/15/17 | | | BOA | | | 1,283,414 | | | | 1,255,320 | | | | (28,094 | ) |
EUR | | Buy | | | 03/15/17 | | | UBS | | | 1,622,467 | | | | 1,585,962 | | | | (36,505 | ) |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at June 30, 2016 - (continued) | |
Currency | | Buy/Sell | | | Delivery
Date | | | Counterparty | | | Contract
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
EUR | | | Sell | | | | 07/29/16 | | | | BMO | | | $ | 433,857 | | | $ | 427,722 | | | $ | 6,135 | |
EUR | | | Sell | | | | 07/29/16 | | | | BOA | | | | 667,410 | | | | 664,358 | | | | 3,052 | |
EUR | | | Sell | | | | 07/29/16 | | | | JPM | | | | 19,825,737 | | | | 19,962,954 | | | | (137,217 | ) |
EUR | | | Sell | | | | 09/21/16 | | | | UBS | | | | 2,800,642 | | | | 2,743,874 | | | | 56,768 | |
EUR | | | Sell | | | | 03/15/17 | | | | BOA | | | | 5,923,641 | | | | 6,175,725 | | | | (252,084 | ) |
GBP | | | Buy | | | | 07/29/16 | | | | JPM | | | | 224,513 | | | | 226,372 | | | | 1,859 | |
GBP | | | Sell | | | | 07/29/16 | | | | BNP | | | | 6,202,084 | | | | 6,269,152 | | | | (67,068 | ) |
IDR | | | Buy | | | | 09/21/16 | | | | GSC | | | | 7,686,674 | | | | 7,765,475 | | | | 78,801 | |
IDR | | | Sell | | | | 09/21/16 | | | | SCB | | | | 1,909,685 | | | | 1,941,369 | | | | (31,684 | ) |
IDR | | | Sell | | | | 09/21/16 | | | | DEUT | | | | 1,906,886 | | | | 1,941,368 | | | | (34,482 | ) |
IDR | | | Sell | | | | 09/21/16 | | | | HSBC | | | | 3,834,843 | | | | 3,882,737 | | | | (47,894 | ) |
MXN | | | Buy | | | | 07/20/16 | | | | RBC | | | | 12,248,037 | | | | 12,519,153 | | | | 271,116 | |
MXN | | | Sell | | | | 07/20/16 | | | | BOA | | | | 13,009,661 | | | | 12,519,153 | | | | 490,508 | |
THB | | | Buy | | | | 09/21/16 | | | | BCLY | | | | 3,307,431 | | | | 3,314,307 | | | | 6,876 | |
THB | | | Sell | | | | 09/21/16 | | | | BOA | | | | 3,324,436 | | | | 3,327,096 | | | | (2,660 | ) |
THB | | | Sell | | | | 09/21/16 | | | | CBK | | | | 6,604,188 | | | | 6,632,933 | | | | (28,745 | ) |
TRY | | | Sell | | | | 09/21/16 | | | | BOA | | | | 5,071,250 | | | | 5,182,330 | | | | (111,080 | ) |
UYU | | | Sell | | | | 09/28/16 | | | | HSBC | | | | 3,730,403 | | | | 3,741,643 | | | | (11,240 | ) |
ZAR | | | Sell | | | | 07/20/16 | | | | BOA | | | | 1,013,369 | | | | 1,022,492 | | | | (9,123 | ) |
ZAR | | | Sell | | | | 07/20/16 | | | | JPM | | | | 3,305,453 | | | | 3,463,978 | | | | (158,525 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | (2,568,267 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
BCLY | | Barclays |
BMO | | Bank of Montreal |
BNP | | BNP Paribas Securities Services |
BOA | | Banc of America Securities LLC |
CBK | | Citibank NA |
CIB | | Credit Agricole |
CSI | | Credit Suisse International |
DEUT | | Deutsche Bank Securities, Inc. |
GSC | | Goldman Sachs & Co. |
HSBC | | HSBC Bank USA |
JPM | | JP Morgan Chase & Co. |
MLI | | Merrill Lynch International |
MSC | | Morgan Stanley |
RBC | | RBC Dominion Securities, Inc. |
SCB | | Standard Chartered Bank |
SSG | | State Street Global Markets LLC |
UBS | | UBS AG |
|
| Currency Abbreviations: |
BRL | | Brazilian Real |
CNY | | Chinese Yuan |
COP | | Colombian Peso |
EUR | | Euro |
GBP | | British Pound |
IDR | | Indonesian Rupiah |
MXN | | Mexican Peso |
THB | | Thai Baht |
TRY | | Turkish Lira |
USD | | United States Dollar |
| | |
| Currency Abbreviations: |
UYU | | Uruguayan Peso |
ZAR | | South African Rand |
|
| Index Abbreviations: |
ABX.HE | | Markit Asset Backed Security Home Equity |
CDX.EM | | Credit Derivatives Emerging Markets |
CDX.NA.HY | | Credit Derivatives North American High Yield |
CDX.NA.IG | | Credit Derivatives North American Investment Grade |
CMBX.NA | | Markit Commercial Mortgage Backed North American |
CPURNSA | | Consumer Price All Urban Non-Seasonally Adjusted |
ITRAXX.EUR | | Markit i Traxx—Europe |
ITRAXX.XOV | | Markit i Traxx Index—Europe Crossover |
PrimeX.ARM | | Markit PrimeX Adjustable Rate Mortgage Backed Security |
|
| Other Abbreviations: |
CDO | | Collateralized Debt Obligation |
CLO | | Collateralized Loan Obligation |
CMO | | Collateralized Mortgage Obligation |
EM | | Emerging Markets |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
FX | | Foreign Exchange |
GNMA | | Government National Mortgage Association |
LIBOR | | London Interbank Offered Rate |
MSCI | | Morgan Stanley Capital International |
OTC | | Over-the-Counter |
TBA | | To Be Announced |
|
| Municipal Abbreviations: |
GO | | General Obligation |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | 839,752,939 | | | $ | — | | | $ | 839,752,939 | | | $ | — | |
Corporate Bonds | | | 938,112,581 | | | | — | | | | 938,112,581 | | | | — | |
Foreign Government Obligations | | | 62,029,828 | | | | — | | | | 62,029,828 | | | | — | |
Municipal Bonds | | | 34,066,115 | | | | — | | | | 34,066,115 | | | | — | |
Senior Floating Rate Interests | | | 148,411,900 | | | | — | | | | 148,411,900 | | | | — | |
U.S. Government Agencies | | | 1,553,681,364 | | | | — | | | | 1,553,681,364 | | | | — | |
U.S. Government Securities | | | 86,372,721 | | | | — | | | | 86,372,721 | | | | — | |
Preferred Stocks | | | 2,732,273 | | | | 2,732,273 | | | | — | | | | — | |
Short-Term Investments | | | 110,972,985 | | | | 110,972,985 | | | | — | | | | — | |
Foreign Currency Contracts(2) | | | 1,210,586 | | | | — | | | | 1,210,586 | | | | — | |
Futures Contracts(2) | | | 14,946,006 | | | | 14,946,006 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 6,614,450 | | | | — | | | | 6,614,450 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,798,903,748 | | | $ | 128,651,264 | | | $ | 3,670,252,484 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Foreign Currency Contracts(2) | | $ | (3,778,853 | ) | | $ | — | | | $ | (3,778,853 | ) | | $ | — | |
Futures Contracts(2) | | | (7,134,935 | ) | | | (7,134,935 | ) | | | — | | | | — | |
Swaps - Credit Default(2) | | | (12,744,925 | ) | | | — | | | | (12,744,925 | ) | | | — | |
Swaps - Interest Rate(2) | | | (3,329,827 | ) | | | — | | | | (3,329,827 | ) | | | — | |
TBA Sale Commitments | | | (256,858,546 | ) | | | — | | | | (256,858,546 | ) | | | — | |
Written Options | | | (755,457 | ) | | | — | | | | (755,457 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (284,602,543 | ) | | $ | (7,134,935 | ) | | $ | (277,467,608 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 20.5% | |
| | | | | | | Asset-Backed - Automobile - 7.6% | |
| | | | | | | | AmeriCredit Automobile Receivables | |
| | $ | | | | 1,506,182 | | | 1.26%, 04/08/2019 | | $ | 1,506,717 | |
| | | | | 1,525,000 | | | 1.26%, 11/08/2019 | | | 1,525,469 | |
| | | | | 1,475,000 | | | 1.42%, 10/08/2019 | | | 1,477,118 | |
| | | | | 560,000 | | | 1.52%, 06/10/2019 | | | 560,922 | |
| | | | | | | | Capital Auto Receivables Asset Trust | |
| | | | | 1,686,036 | | | 0.99%, 10/20/2017 | | | 1,685,562 | |
| | | | | 2,200,000 | | | 1.62%, 03/20/2019 | | | 2,205,515 | |
| | | | | | | | CarMax Auto Owner Trust | |
| | | | | 1,627,493 | | | 1.09%, 04/15/2019 | | | 1,628,948 | |
| | | | | 2,000,000 | | | 1.24%, 06/17/2019 | | | 2,005,663 | |
| | | | | 1,191,910 | | | Chesapeake Funding LLC
0.89%, 03/07/2026(1)(2) | | | 1,187,423 | |
| | | | | 2,000,000 | | | Chrysler Capital Auto Receivables Trust
1.76%, 12/16/2019(2) | | | 2,011,639 | |
| | | | | 250,590 | | | Credit Acceptance Automotive Loan Trust
1.50%, 04/15/2021(2) | | | 250,673 | |
| | | | | | | | Enterprise Fleet Financing LLC | |
| | | | | 330,826 | | | 0.87%, 09/20/2019(2) | | | 330,434 | |
| | | | | 59,441 | | | 1.06%, 03/20/2019(2) | | | 59,434 | |
| | | | | 1,750,000 | | | Fifth Third Auto Trust
1.42%, 03/16/2020 | | | 1,757,156 | |
| | | | | 451,767 | | | First Investors Auto Owner Trust
1.06%, 11/15/2018(2) | | | 451,726 | |
| | | | | 3,000,000 | | | Ford Credit Auto Lease Trust
1.38%, 12/15/2018 | | | 3,010,086 | |
| | | | | 607,287 | | | Ford Credit Auto Owner Trust
0.95%, 08/15/2018 | | | 607,314 | |
| | | | | | | | GM Financial Automobile Leasing Trust | |
| | | | | 1,000,000 | | | 1.28%, 10/22/2018 | | | 1,001,474 | |
| | | | | 2,000,000 | | | 1.30%, 05/21/2018(2) | | | 2,001,001 | |
| | | | | 2,000,000 | | | Harley-Davidson Motorcycle Trust
1.41%, 06/15/2020 | | | 2,009,511 | |
| | | | | 810,000 | | | Hyundai Auto Lease Securitization Trust
1.52%, 10/15/2019(2) | | | 811,744 | |
| | | | | | | | M&T Bank Automotive Receivables Trust | |
| | | | | 207,668 | | | 1.06%, 11/15/2017(2) | | | 207,677 | |
| | | | | 4,250,000 | | | 1.57%, 08/15/2018(2) | | | 4,261,226 | |
| | | | | | | | Nissan Auto Lease Trust | |
| | | | | 4,000,000 | | | 1.04%, 10/15/2019 | | | 4,001,304 | |
| | | | | 2,376,530 | | | 1.18%, 12/15/2017 | | | 2,378,124 | |
| | | | | 1,315,000 | | | Nissan Auto Receivables Owner Trust
1.05%, 04/15/2019 | | | 1,317,253 | |
| | | | | | | | Prestige Automotive Receivables Trust | |
| | | | | 14,325 | | | 0.97%, 03/15/2018(2) | | | 14,322 | |
| | | | | 1,800,000 | | | 1.78%, 08/15/2019(2) | | | 1,805,599 | |
| | | | | 450,000 | | | Toyota Auto Receivables Owner Trust
1.30%, 04/15/2020 | | | 452,057 | |
| | | | | | | | Westlake Automobile Receivables Trust | |
| | | | | 132,934 | | | 1.17%, 03/15/2018(2) | | | 132,906 | |
| | | | | 1,411,201 | | | 1.28%, 07/16/2018(2) | | | 1,411,099 | |
| | | | | 1,245,000 | | | 1.57%, 06/17/2019(2) | | | 1,245,000 | |
| | | | | 205,476 | | | Wheels SPV LLC
0.84%, 03/20/2023(2) | | | 205,089 | |
| | | | | 1,479,099 | | | World Omni Auto Receivables Trust
0.96%, 07/15/2019 | | | 1,479,039 | |
| | | | | | | | World Omni Automobile Lease Securitization Trust | |
| | | | | 922,540 | | | 1.06%, 05/15/2018 | | | 922,798 | |
| | | | | 1,635,000 | | | 1.37%, 01/15/2020 | | | 1,638,494 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 49,557,516 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 20.5% - (continued) | |
| | | | | | | Asset-Backed - Credit Card - 6.2% | |
| | | | | | | | American Express Credit Account Master Trust | |
| | $ | | | | 1,520,000 | | | 0.98%, 05/15/2019 | | $ | 1,521,017 | |
| | | | | 1,485,000 | | | 1.26%, 01/15/2020 | | | 1,491,033 | |
| | | | | 2,995,000 | | | BA Credit Card Trust
0.82%, 06/15/2021(1) | | | 2,992,830 | |
| | | | | | | | Cabela’s Credit Card Master Note Trust | |
| | | | | 1,085,000 | | | 0.79%, 03/16/2020(1) | | | 1,079,374 | |
| | | | | 1,785,000 | | | 1.78%, 06/15/2022 | | | 1,794,814 | |
| | | | | 3,605,000 | | | Capital One Multi-Asset Execution Trust
0.96%, 09/16/2019 | | | 3,607,204 | |
| | | | | 6,000,000 | | | Chase Issuance Trust
0.86%, 11/16/2020(1) | | | 6,001,516 | |
| | | | | | | | Citibank Credit Card Issuance Trust | |
| | | | | 3,660,000 | | | 0.86%, 11/07/2018(1) | | | 3,660,859 | |
| | | | | 2,045,000 | | | 1.02%, 02/22/2019 | | | 2,047,130 | |
| | | | | 4,965,000 | | | 1.32%, 09/07/2018 | | | 4,969,610 | |
| | | | | 2,500,000 | | | Evergreen Credit Card Trust Series
1.16%, 04/15/2020(1)(2) | | | 2,500,899 | |
| | | | | 3,125,000 | | | Golden Credit Card Trust
0.89%, 03/15/2019(1)(2) | | | 3,120,732 | |
| | | | | 3,500,000 | | | Synchrony Credit Card Master Note Trust
1.61%, 11/15/2020 | | | 3,521,988 | |
| | | | | 2,380,000 | | | Trillium Credit Card Trust II
1.19%, 05/26/2021(1)(2) | | | 2,377,739 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 40,686,745 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Finance & Insurance - 4.1% | |
| | | | | | | | Ally Master Owner Trust | |
| | | | | 4,380,000 | | | 0.91%, 01/15/2019(1) | | | 4,380,731 | |
| | | | | 2,500,000 | | | 0.93%, 10/15/2019(1) | | | 2,489,906 | |
| | | | | 2,000,000 | | | 1.54%, 09/15/2019 | | | 2,006,281 | |
| | | | | 3,275,000 | | | 1.60%, 10/15/2019 | | | 3,289,955 | |
| | | | | 1,185,000 | | | CNH Equipment Trust
1.31%, 10/15/2019 | | | 1,187,474 | |
| | | | | | | | Ford Credit Floorplan Master Owner Trust | |
| | | | | 2,105,000 | | | 0.84%, 02/15/2019(1) | | | 2,104,122 | |
| | | | | 1,380,000 | | | 1.04%, 08/15/2020(1) | | | 1,379,588 | |
| | | | | 1,150,000 | | | GMF Floorplan Owner Revolving Trust
0.94%, 05/15/2020(1)(2) | | | 1,142,494 | |
| | | | | | | | John Deere Owner Trust | |
| | | | | 531,326 | | | 0.87%, 08/15/2017 | | | 531,255 | |
| | | | | 650,000 | | | 1.39%, 12/16/2019 | | | 651,088 | |
| | | | | 1,432,600 | | | Kubota Credit Owner Trust
1.16%, 05/15/2018(2) | | | 1,432,766 | |
| | | | | 766,917 | | | MMAF Equipment Finance LLC
0.96%, 09/18/2017(2) | | | 766,732 | |
| | | | | 1,282,583 | | | New York City Tax Lien
1.34%, 11/10/2028(2) | | | 1,275,529 | |
| | | | | 1,500,000 | | | NRZ Advance Receivables Trust
2.54%, 11/15/2046(2) | | | 1,500,441 | |
| | | | | 1,235,000 | | | Ocwen Master Advance Receivables Trust
2.53%, 11/15/2046(2) | | | 1,237,323 | |
| | | | | 1,353,077 | | | Volvo Financial Equipment LLC
0.82%, 04/16/2018(2) | | | 1,350,578 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,726,263 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Mortgage - Backed Securities - 2.6% | |
| | | | | 1,513,151 | | | Bear Stearns Commercial Mortgage Securities Trust
5.20%, 12/11/2038 | | | 1,522,026 | |
| | | | | 1,569,932 | | | Cobalt CMBS Commercial Mortgage Trust
5.22%, 08/15/2048 | | | 1,574,515 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 20.5% - (continued) | |
| | | | | | | Commercial Mortgage - Backed Securities - 2.6% - (continued) | |
| | | | | | | | Community or Commercial Mortgage Trust | | | | |
| | $ | | | | 1,130,000 | | | 1.24%, 03/15/2029(1)(2) | | $ | 1,110,638 | |
| | | | | 1,300,000 | | | 1.91%, 01/10/2046 | | | 1,312,588 | |
| | | | | 1,500,000 | | | 2.37%, 02/10/2029(2) | | | 1,507,850 | |
| | | | | 67,227 | | | GS Mortgage Securities Trust
5.56%, 11/10/2039 | | | 67,404 | |
| | | | | 1,709,157 | | | Hilton USA Trust
1.46%, 11/05/2030(1)(2) | | | 1,706,951 | |
| | | | | 2,321,987 | | | LB-UBS Commercial Mortgage Trust
6.25%, 04/15/2041(1) | | | 2,447,636 | |
| | | | | | | | Morgan Stanley Capital I Trust | | | | |
| | | | | 2,278,127 | | | 2.11%, 03/15/2045 | | | 2,286,903 | |
| | | | | 1,902,006 | | | 5.51%, 11/12/2049(1) | | | 1,915,317 | |
| | | | | 1,628,282 | | | WFRBS Commercial Mortgage Trust
2.19%, 04/15/2045 | | | 1,631,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,083,428 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $134,162,226) | | $ | 134,053,952 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 49.5% | |
| | | | | | | Aerospace/Defense - 0.4% | |
| | | | | 2,300,000 | | | Rockwell Collins, Inc.
1.00%, 12/15/2016(1) | | | 2,300,750 | |
| | | | | | | | | | | | |
| | | | | | | Agriculture - 0.5% | | | |
| | | | | 2,000,000 | | | BAT International Finance plc
1.16%, 06/15/2018(1)(2) | | | 1,996,180 | |
| | | | | 1,425,000 | | | Reynolds American, Inc.
2.30%, 06/12/2018 | | | 1,447,860 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,444,040 | |
| | | | | | | | | | | | |
| | | | | | | Auto Manufacturers - 5.1% | |
| | | | | | | | American Honda Finance Corp. | | | | |
| | | | | 2,500,000 | | | 1.09%, 07/13/2018(1) | | | 2,505,670 | |
| | | | | 3,250,000 | | | 1.13%, 10/07/2016(1) | | | 3,253,611 | |
| | | | | | | | Daimler Finance North America LLC | | | | |
| | | | | 1,750,000 | | | 1.50%, 07/05/2019(2) | | | 1,747,392 | |
| | | | | 2,000,000 | | | 1.65%, 05/18/2018(2) | | | 2,013,158 | |
| | | | | | | | Ford Motor Credit Co. LLC | | | | |
| | | | | 2,150,000 | | | 1.41%, 01/17/2017(1) | | | 2,152,973 | |
| | | | | 2,500,000 | | | 1.49%, 03/12/2019(1) | | | 2,489,525 | |
| | | | | 2,000,000 | | | 1.72%, 12/06/2017 | | | 2,004,254 | |
| | | | | 1,500,000 | | | Harley-Davidson Financial Services, Inc.
2.25%, 01/15/2019(2) | | | 1,530,246 | |
| | | | | | | | Nissan Motor Acceptance Corp. | | | | |
| | | | | 1,375,000 | | | 1.23%, 03/03/2017(1)(2) | | | 1,376,009 | |
| | | | | 1,975,000 | | | 1.34%, 09/26/2016(1)(2) | | | 1,977,072 | |
| | | | | 2,000,000 | | | 1.50%, 03/02/2018(2) | | | 2,005,596 | |
| | | | | | | | PACCAR Financial Corp. | | | | |
| | | | | 1,500,000 | | | 1.28%, 12/06/2018(1) | | | 1,507,715 | |
| | | | | 1,000,000 | | | 1.40%, 05/18/2018 | | | 1,007,034 | |
| | | | | | | | Toyota Motor Credit Corp. | | | | |
| | | | | 1,850,000 | | | 0.95%, 01/12/2018(1) | | | 1,848,638 | |
| | | | | 2,000,000 | | | 1.13%, 05/16/2017 | | | 2,002,852 | |
| | | | | 1,250,000 | | | 1.20%, 04/06/2018 | | | 1,254,898 | |
| | | | | 3,000,000 | | | Volkswagen Group of America Finance LLC
1.12%, 05/22/2018(1)(2) | | | 2,956,410 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 33,633,053 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 49.5% - (continued) | |
| | | | | | | Beverages - 1.7% | |
| | $ | | | | 5,000,000 | | | Anheuser-Busch InBev Finance, Inc.
1.04%, 02/01/2019(1) | | $ | 4,984,085 | |
| | | | | 6,000,000 | | | SABMiller Holdings, Inc.
1.33%, 08/01/2018(1)(2) | | | 5,996,190 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,980,275 | |
| | | | | | | | | | | | |
| | | | | | | Chemicals - 0.3% | |
| | | | | 2,000,000 | | | Monsanto Co.
1.15%, 06/30/2017 | | | 1,998,460 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Banks - 22.7% | | | |
| | | | | 3,000,000 | | | Australia & New Zealand Banking Group Ltd.
1.01%, 01/10/2017(1)(2) | | | 3,002,400 | |
| | | | | | | | Bank of America Corp. | | | | |
| | | | | 2,000,000 | | | 1.67%, 01/15/2019(1) | | | 2,008,122 | |
| | | | | 2,000,000 | | | 1.70%, 08/25/2017 | | | 2,007,486 | |
| | | | | 2,000,000 | | | 1.72%, 03/22/2018(1) | | | 2,010,466 | |
| | | | | 1,280,000 | | | 2.00%, 01/11/2018 | | | 1,288,183 | |
| | | | | 720,000 | | | 5.65%, 05/01/2018 | | | 771,587 | |
| | | | | | | | Bank of Montreal | |
| | | | | 4,000,000 | | | 1.15%, 07/15/2016(1) | | | 4,000,768 | |
| | | | | 2,000,000 | | | 1.40%, 04/10/2018 | | | 2,008,838 | |
| | | | | 2,000,000 | | | Bank of Tokyo-Mitsubishi UFJ Ltd.
0.97%, 09/08/2017(1)(2) | | | 1,992,460 | |
| | | | | 2,815,000 | | | Barclays Bank plc
1.21%, 02/17/2017(1) | | | 2,811,022 | |
| | | | | 2,500,000 | | | BB&T Corp.
1.30%, 02/01/2019(1) | | | 2,505,842 | |
| | | | | 5,000,000 | | | BNP Paribas S.A.
1.25%, 12/12/2016(1) | | | 5,008,435 | |
| | | | | 6,000,000 | | | BPCE S.A.
1.48%, 02/10/2017(1) | | | 6,020,676 | |
| | | | | 2,500,000 | | | Branch Banking & Trust Co.
1.10%, 12/01/2016(1) | | | 2,502,277 | |
| | | | | 6,000,000 | | | Canadian Imperial Bank of Commerce
1.15%, 07/18/2016(1) | | | 6,001,590 | |
| | | | | | | | Citigroup, Inc. | |
| | | | | 2,500,000 | | | 1.31%, 11/15/2016(1) | | | 2,501,502 | |
| | | | | 4,000,000 | | | 1.40%, 04/08/2019(1) | | | 3,984,892 | |
| | | | | 2,000,000 | | | Commonwealth Bank of Australia
1.15%, 09/20/2016(1)(2) | | | 2,001,556 | |
| | | | | | | | Credit Agricole S.A. | |
| | | | | 1,775,000 | | | 1.20%, 06/12/2017(1)(2) | | | 1,775,327 | |
| | | | | 2,500,000 | | | 1.63%, 06/10/2020(1)(2) | | | 2,490,730 | |
| | | | | 2,250,000 | | | Credit Suisse AG
1.70%, 04/27/2018 | | | 2,252,408 | |
| | | | | 2,250,000 | | | Credit Suisse AG
1.31%, 04/27/2018(1) | | | 2,248,211 | |
| | | | | 1,700,000 | | | Credit Suisse AG
1.38%, 05/26/2017 | | | 1,701,391 | |
| | | | | | | | Deutsche Bank AG London | |
| | | | | 2,000,000 | | | 1.24%, 02/13/2017(1) | | | 1,997,960 | |
| | | | | 2,000,000 | | | 1.35%, 05/30/2017 | | | 1,988,850 | |
| | | | | | | | Fifth Third Bank | |
| | | | | 2,500,000 | | | 1.35%, 06/01/2017 | | | 2,502,280 | |
| | | | | 2,000,000 | | | 1.55%, 08/20/2018(1) | | | 2,002,646 | |
| | | | | | | | Goldman Sachs Group, Inc. | |
| | | | | 2,000,000 | | | 1.73%, 11/15/2018(1) | | | 2,004,880 | |
| | | | | 2,000,000 | | | 1.80%, 04/23/2020(1) | | | 1,994,176 | |
| | | | | 3,000,000 | | | 1.84%, 04/30/2018(1) | | | 3,015,579 | |
| | | | | 3,000,000 | | | HSBC Bank plc
1.27%, 05/15/2018(1)(2) | | | 2,987,262 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 49.5% - (continued) | |
| | | | | | | Commercial Banks - 22.7% - (continued) | | | |
| | $ | | | | 1,000,000 | | | Huntington National Bank
1.06%, 04/24/2017(1) | | $ | 999,083 | |
| | | | | 2,300,000 | | | ING Bank N.V.
1.21%, 03/16/2018(1)(2) | | | 2,290,903 | |
| | | | | | | | JP Morgan Chase & Co. | |
| | | | | 1,500,000 | | | 1.18%, 03/01/2018(1) | | | 1,500,695 | |
| | | | | 3,000,000 | | | 1.26%, 01/28/2019(1) | | | 2,994,855 | |
| | | | | 1,600,000 | | | KeyBank NA
1.19%, 06/01/2018(1) | | | 1,596,779 | |
| | | | | 2,000,000 | | | Lloyds Bank plc
1.18%, 03/16/2018(1) | | | 1,989,216 | |
| | | | | | | | Manufacturers & Traders Trust Co. | |
| | | | | 3,000,000 | | | 1.01%, 01/30/2017(1) | | | 3,001,581 | |
| | | | | 1,500,000 | | | 1.40%, 07/25/2017 | | | 1,501,566 | |
| | | | | | | | Morgan Stanley | |
| | | | | 3,000,000 | | | 1.49%, 01/24/2019(1) | | | 2,995,047 | |
| | | | | 1,275,000 | | | 5.95%, 12/28/2017 | | | 1,355,886 | |
| | | | | 3,000,000 | | | Nordea Bank AB
1.01%, 04/04/2017(1)(2) | | | 3,001,170 | |
| | | | | 7,500,000 | | | PNC Bank NA
1.15%, 11/01/2016 | | | 7,502,670 | |
| | | | | 3,000,000 | | | Royal Bank of Canada
0.97%, 01/23/2017(1) | | | 3,003,744 | |
| | | | | 2,000,000 | | | Santander Bank NA
1.56%, 01/12/2018(1) | | | 1,988,982 | |
| | | | | | | | Santander UK plc | |
| | | | | 1,500,000 | | | 1.04%, 09/29/2017(1) | | | 1,492,707 | |
| | | | | 2,500,000 | | | 1.51%, 08/24/2018(1) | | | 2,494,680 | |
| | | | | 3,000,000 | | | Societe Generale S.A.
1.73%, 10/01/2018(1) | | | 3,023,640 | |
| | | | | 2,000,000 | | | Standard Chartered plc
1.27%, 04/17/2018(1)(2) | | | 1,977,080 | |
| | | | | 3,000,000 | | | Sumitomo Mitsui Banking Corp.
1.06%, 01/10/2017(1) | | | 3,001,638 | |
| | | | | 3,000,000 | | | SunTrust Banks, Inc.
1.07%, 02/15/2017(1) | | | 2,998,488 | |
| | | | | 6,000,000 | | | Svenska Handelsbanken AB
1.11%, 09/23/2016(1) | | | 6,004,548 | |
| | | | | | | | Toronto-Dominion Bank | |
| | | | | 3,000,000 | | | 0.88%, 05/02/2017(1) | | | 2,999,055 | |
| | | | | 3,000,000 | | | 1.12%, 09/09/2016(1) | | | 3,002,370 | |
| | | | | 875,000 | | | U.S. Bancorp
1.12%, 11/15/2018(1) | | | 874,221 | |
| | | | | 2,000,000 | | | Wells Fargo & Co.
1.15%, 06/02/2017 | | | 2,000,762 | |
| | | | | 1,500,000 | | | Wells Fargo Bank NA
1.65%, 01/22/2018 | | | 1,512,764 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 148,493,932 | |
| | | | | | | | | | | | |
| | | | | | | Diversified Financial Services - 3.9% | |
| | | | | | | | American Express Credit Corp. | |
| | | | | 1,500,000 | | | 1.13%, 06/05/2017 | | | 1,499,795 | |
| | | | | 1,500,000 | | | 1.15%, 07/29/2016(1) | | | 1,500,662 | |
| | | | | 2,500,000 | | | 1.20%, 03/18/2019(1) | | | 2,488,293 | |
| | | | | | | | Capital One Bank USA NA | |
| | | | | 2,500,000 | | | 1.15%, 11/21/2016 | | | 2,501,492 | |
| | | | | 1,500,000 | | | 1.30%, 06/05/2017 | | | 1,499,973 | |
| | | | | | | | General Electric Co. | |
| | | | | 2,000,000 | | | 0.91%, 05/15/2017(1) | | | 2,002,870 | |
| | | | | 3,000,000 | | | 1.36%, 04/02/2018(1) | | | 3,019,659 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 49.5% - (continued) | |
| | | | | | | Diversified Financial Services - 3.9% - (continued) | |
| | $ | | | | 3,750,000 | | | Macquarie Group Ltd.
1.64%, 01/31/2017(1)(2) | | $ | 3,756,157 | |
| | | | | 4,000,000 | | | National Rural Utilities Cooperative Finance Corp.
0.95%, 11/23/2016(1) | | | 4,003,168 | |
| | | | | 1,465,000 | | | Protective Life Global Funding
1.72%, 04/15/2019(2) | | | 1,473,627 | |
| | | | | 1,700,000 | | | Synchrony Financial
1.87%, 02/03/2020(1) | | | 1,646,822 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,392,518 | |
| | | | | | | | | | | | |
| | | | | | | Electric - 1.1% | |
| | | | | 6,000,000 | | | Duke Energy Indiana, Inc.
0.98%, 07/11/2016(1) | | | 6,000,402 | |
| | | | | 905,000 | | | Exelon Corp.
1.55%, 06/09/2017 | | | 906,567 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,906,969 | |
| | | | | | | | | | | | |
| | | | | | | Electronics - 0.2% | |
| | | | | 1,450,000 | | | Thermo Fisher Scientific, Inc.
1.30%, 02/01/2017 | | | 1,451,079 | |
| | | | | | | | | | | | |
| | | | | | | Gas - 0.6% | |
| | | | | 4,000,000 | | | Dominion Gas Holdings LLC
1.05%, 11/01/2016 | | | 4,001,216 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 0.5% | |
| | | | | 1,820,000 | | | Medtronic, Inc.
1.50%, 03/15/2018 | | | 1,835,796 | |
| | | | | 1,750,000 | | | Zimmer Biomet Holdings, Inc.
1.45%, 04/01/2017 | | | 1,751,116 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,586,912 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Services - 0.4% | |
| | | | | 2,700,000 | | | UnitedHealth Group, Inc.
1.08%, 01/17/2017(1) | | | 2,703,421 | |
| | | | | | | | | | | | |
| | | | | | | Home Furnishings - 0.4% | |
| | | | | 2,645,000 | | | Whirlpool Corp.
1.35%, 03/01/2017 | | | 2,649,459 | |
| | | | | | | | | | | | |
| | | | | | | Insurance - 2.2% | |
| | | | | 3,500,000 | | | New York Life Global Funding
1.13%, 03/01/2017(2) | | | 3,507,210 | |
| | | | | 3,500,000 | | | Pricoa Global Funding I
1.15%, 11/25/2016(2) | | | 3,505,310 | |
| | | | | | | | Principal Life Global Funding II | |
| | | | | 2,000,000 | | | 1.13%, 02/24/2017(2) | | | 2,002,086 | |
| | | | | 1,450,000 | | | 1.20%, 05/19/2017(2) | | | 1,453,493 | |
| | | | | 4,000,000 | | | Prudential Financial, Inc.
1.41%, 08/15/2018(1) | | | 3,991,372 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,459,471 | |
| | | | | | | | | | | | |
| | | | | | | Machinery - Construction & Mining - 0.3% | |
| | | | | 2,175,000 | | | Caterpillar Financial Services Corp.
0.91%, 03/03/2017(1) | | | 2,177,721 | |
| | | | | | | | | | | | |
| | | | | | | Media - 0.9% | |
| | | | | 3,000,000 | | | NBCUniversal Enterprise, Inc.
1.31%, 04/15/2018(1)(2) | | | 3,012,792 | |
| | | | | 3,000,000 | | | Thomson Reuters Corp.
1.30%, 02/23/2017 | | | 3,000,513 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,013,305 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 49.5% - (continued) | |
| | | | | | | Oil & Gas - 3.4% | |
| | | | | | | | BP Capital Markets plc | | | | |
| | $ | | | | 3,000,000 | | | 1.05%, 11/07/2016(1) | | $ | 3,002,319 | |
| | | | | 4,000,000 | | | 1.27%, 09/26/2018(1) | | | 3,985,204 | |
| | | | | 2,345,000 | | | 1.67%, 02/13/2018 | | | 2,362,986 | |
| | | | | 3,000,000 | | | ConocoPhillips Co.
0.96%, 05/15/2018(1) | | | 2,965,878 | |
| | | | | 4,250,000 | | | Devon Energy Corp.
1.19%, 12/15/2016(1) | | | 4,223,612 | |
| | | | | 2,500,000 | | | Exxon Mobil Corp.
1.44%, 03/01/2018 | | | 2,522,117 | |
| | | | | 3,000,000 | | | Statoil ASA
1.09%, 11/08/2018(1) | | | 2,983,644 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 22,045,760 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas Services - 0.3% | |
| | | | | 1,800,000 | | | Schlumberger Holdings Corp.
1.90%, 12/21/2017(2) | | | 1,811,666 | |
| | | | | | | | | | | | |
| | | | | | | Pharmaceuticals - 2.5% | |
| | | | | | | | Actavis Funding SCS | |
| | | | | 2,000,000 | | | 1.30%, 06/15/2017 | | | 1,996,594 | |
| | | | | 4,700,000 | | | 1.74%, 03/12/2018(1) | | | 4,717,982 | |
| | | | | 1,750,000 | | | Baxalta, Inc.
1.43%, 06/22/2018(1) | | | 1,731,501 | |
| | | | | 2,000,000 | | | Bayer US Finance LLC
0.93%, 10/06/2017(1)(2) | | | 1,990,722 | |
| | | | | 1,500,000 | | | Express Scripts Holding Co.
1.25%, 06/02/2017 | | | 1,498,950 | |
| | | | | 3,300,000 | | | McKesson Corp.
1.29%, 03/10/2017 | | | 3,306,247 | |
| | | | | 935,000 | | | Perrigo Co. plc
1.30%, 11/08/2016 | | | 934,015 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,176,011 | |
| | | | | | | | | | | | |
| | | | | | | Pipelines - 0.6% | |
| | | | Enbridge, Inc. | |
| | | | | 1,800,000 | | | 1.14%, 06/02/2017(1) | | | 1,768,536 | |
| | | | | 2,000,000 | | | 1.30%, 10/01/2016(1) | | | 1,991,674 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,760,210 | |
| | | | | | | | | | | | |
| | | | | | | REITS - 0.1% | |
| | | | | 570,000 | | | Ventas Realty L.P.
1.25%, 04/17/2017 | | | 570,157 | |
| | | | | | | | | | | | |
| | | | Retail - 0.4% | |
| | | | CVS Health Corp. | |
| | | | | 1,085,000 | | | 1.20%, 12/05/2016 | | | 1,086,719 | |
| | | | | 1,500,000 | | | 1.90%, 07/20/2018 | | | 1,522,695 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,609,414 | |
| | | | | | | | | | | | |
| | | | | | | Software - 0.6% | |
| | | | | 405,000 | | | Fidelity National Information Services, Inc.
1.45%, 06/05/2017 | | | 404,522 | |
| | | | | 3,500,000 | | | Hewlett Packard Enterprise Co.
2.45%, 10/05/2017(2) | | | 3,545,360 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,949,882 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 0.2% | |
| | | | | 1,190,000 | | | British Telecommunications plc
1.25%, 02/14/2017 | | | 1,190,316 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 49.5% - (continued) | |
| | | | Trucking & Leasing - 0.2% | |
| | $ | | | | 1,145,000 | | | GATX Corp.
1.25%, 03/04/2017 | | $ | 1,143,443 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Corporate Bonds
(cost $323,426,146) | | $ | 323,449,440 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| MUNICIPAL BONDS - 0.3% | |
| | | | | | | General - 0.3% | |
| | | | | 1,750,000 | | | State of Illinois
5.13%, 07/01/2017 | | $ | 1,805,160 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Municipal Bonds
(cost $1,807,573) | | $ | 1,805,160 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 12.1% | |
| | | | | | | FFCB - 3.0% | |
| | | | | 13,565,000 | | | 0.59%, 02/06/2017 | | $ | 13,569,504 | |
| | | | | 6,000,000 | | | 0.90%, 06/08/2017 | | | 6,015,708 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,585,212 | |
| | | | | | | | | | | | |
| | | | | | | FHLMC - 8.2% | |
| | | | | 7,165,000 | | | 0.63%, 11/01/2016 | | | 7,169,299 | |
| | | | | 19,750,000 | | | 0.70%, 01/27/2017 | | | 19,771,093 | |
| | | | | 1,500,000 | | | 0.75%, 05/25/2017 | | | 1,503,603 | |
| | | | | 5,000,000 | | | 0.88%, 10/14/2016 | | | 5,006,370 | |
| | | | | 20,000,000 | | | 0.88%, 02/22/2017 | | | 20,047,780 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 53,498,145 | |
| | | | | | | | | | | | |
| | | | | | | FNMA - 0.9% | |
| | | | | 6,000,000 | | | FNMA
1.25%, 09/28/2016 | | | 6,011,886 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Agencies
(cost $79,024,644) | | $ | 79,095,243 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 17.4% | |
| | | | | | | Other Direct Federal Obligations - 11.3% | |
| | | | FHLB - 11.3% | |
| | | | | 26,955,000 | | | 0.88%, 05/24/2017 | | $ | 27,028,102 | |
| | | | | 31,800,000 | | | 1.00%, 06/09/2017 | | | 31,924,179 | |
| | | | | 10,000,000 | | | 0.75%, 02/13/2017 | | | 10,019,410 | |
| | | | | 5,000,000 | | | 0.63%, 04/26/2017 | | | 5,004,760 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 73,976,451 | |
| | | | | | | | | | | | |
| | | | | | | U.S. Treasury Securities - 6.1% | |
| | | | | | | U.S. Treasury Notes - 6.1% | | | |
| | | | | 20,000,000 | | | 0.50%, 01/31/2017 | | | 20,006,640 | |
| | | | | 20,000,000 | | | 0.50%, 02/28/2017 | | | 20,005,460 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 40,012,100 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Securities
(cost $113,856,998) | | $ | 113,988,551 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Long-Term Investments
(cost $652,277,587) | | $ | 652,392,346 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.1% | |
| | | | | | | Other Investment Pools & Funds - 0.1% | | | |
| | | | | 627,084 | | | Fidelity Money Market Class 1 | | $ | 627,084 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $627,084) | | $ | 627,084 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | Total Investments
(cost $652,904,671)^ | | | 99.9 | % | | $ | 653,019,430 | |
| | | | | | | | | | Other Assets and Liabilities | | | 0.1 | % | | | 397,766 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Total Net Assets | | | 100.0 | % | | $ | 653,417,196 | |
| | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 905,199 | |
Unrealized Depreciation | | | (790,440 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 114,759 | |
| | | | |
| (1) | Variable rate securities; the rate reported is the coupon rate in effect at June 30, 2016. |
| (2) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $106,593,228, which represents 16.3% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
FFCB | | Federal Farm Credit Bank |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | 134,053,952 | | | $ | — | | | $ | 134,053,952 | | | $ | — | |
Corporate Bonds | | | 323,449,440 | | | | — | | | | 323,449,440 | | | | — | |
Municipal Bonds | | | 1,805,160 | | | | — | | | | 1,805,160 | | | | — | |
U.S. Government Agencies | | | 79,095,243 | | | | — | | | | 79,095,243 | | | | — | |
U.S. Government Securities | | | 113,988,551 | | | | — | | | | 113,988,551 | | | | — | |
Short-Term Investments | | | 627,084 | | | | 627,084 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 653,019,430 | | | $ | 627,084 | | | $ | 652,392,346 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 19.5% | |
| | | | | | | Asset-Backed - Automobile - 1.0% | |
| | $ | | | | 400,000 | | | Drive Auto Receivables Trust
2.12%, 06/17/2019(1) | | $ | 400,819 | |
| | | | | 1,240,000 | | | Huntington Auto Trust
1.07%, 02/15/2018 | | | 1,239,863 | |
| | | | | 3,350,000 | | | Westlake Automobile Receivables Trust
3.40%, 01/15/2021(1) | | | 3,323,397 | |
| | | | | | | | | | | | |
| | | | | | | | | 4,964,079 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Finance & Insurance - 8.4% | | | |
| | | | | | | | Ares CLO Ltd. | | | | |
| | | | | 4,755,000 | | | 2.08%, 04/20/2023(1)(2) | | | 4,647,589 | |
| | | | | 3,135,000 | | | 2.15%, 04/17/2026(1)(2) | | | 3,130,285 | |
| | | | | 3,204,667 | | | Cal Funding II Ltd.
3.47%, 10/25/2027(1) | | | 3,136,459 | |
| | | | | 4,085,000 | | | Dryden Senior Loan Fund
1.98%, 04/18/2026(1)(2) | | | 4,060,408 | |
| | | | | 2,000,000 | | | Flatiron CLO Ltd.
2.53%, 07/17/2026(1)(2) | | | 1,945,186 | |
| | | | | 695,000 | | | Ford Credit Floorplan Master Owner Trust
2.32%, 01/15/2019 | | | 697,953 | |
| | | | | 1,405,000 | | | Green Tree Agency Advance Funding Trust 2.30%, 10/15/2046(1) | | | 1,404,059 | |
| | | | | 3,400,000 | | | Limerock CLO
2.13%, 04/18/2026(1)(2) | | | 3,362,675 | |
| | | | | 3,400,000 | | | Madison Park Funding Ltd.
1.92%, 10/23/2025(1)(2) | | | 3,370,318 | |
| | | | | 2,220,000 | | | Ocwen Master Advance Receivables Trust 2.54%, 09/17/2046(1) | | | 2,220,146 | |
| | | | | 2,102,222 | | | SpringCastle America Funding LLC
2.70%, 05/25/2023(1) | | | 2,109,370 | |
| | | | | | | | Springleaf Funding Trust | | | | |
| | | | | 2,044,968 | | | 2.41%, 12/15/2022(1) | | | 2,046,201 | |
| | | | | 4,720,000 | | | 3.16%, 11/15/2024(1) | | | 4,747,919 | |
| | | | | 1,016,553 | | | Structured Asset Securities Corp.
1.95%, 02/25/2033(2) | | | 1,009,584 | |
| | | | | 3,020,000 | | | TAL Advantage LLC
2.83%, 02/22/2038(1) | | | 2,895,344 | |
| | | | | 1,370,000 | | | Voya CLO Ltd.
2.08%, 07/17/2026(1)(2) | | | 1,363,691 | |
| | | | | | | | | | | | |
| | | | | | | | | 42,147,187 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Home Equity - 0.2% | | | |
| | | | | 1,020,010 | | | Morgan Stanley Asset Backed Securities Capital I
1.95%, 11/25/2032(2) | | | 1,005,278 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Mortgage - Backed Securities - 3.7% | |
| | | | | | | | CSAIL Commercial Mortgage Trust | | | | |
| | | | | 2,140,000 | | | 3.50%, 06/15/2057 | | | 2,304,171 | |
| | | | | 5,100,000 | | | 3.72%, 08/15/2048 | | | 5,572,830 | |
| | | | | | | | FREMF | | | | |
| | | | | 1,665,000 | | | 4.17%, 11/25/2044(1)(2) | | | 1,725,765 | |
| | | | | 1,990,000 | | | 5.62%, 04/25/2020(1)(2) | | | 2,209,509 | |
| | | | | 2,050,000 | | | FREMF Mortgage Trust
3.95%, 06/25/2047(1)(2) | | | 2,126,877 | |
| | | | | 4,750,000 | | | New Residential Advance Receivables Trust
2.32%, 08/15/2046(1) | | | 4,746,076 | |
| | | | | | | | | | | | |
| | | | | | | | | 18,685,228 | |
| | | | | | | | | | | | |
| | | | | | | Whole Loan Collateral CMO - 6.2% | | | |
| | | | | | | | LSTAR Securities Investment Trust | | | | |
| | | | | 1,861,639 | | | 2.46%, 04/01/2020(1)(2) | | | 1,824,406 | |
| | | | | 4,099,501 | | | 2.46%, 05/01/2020(1)(2) | | | 4,030,584 | |
| | | | | 3,651,220 | | | 2.46%, 08/01/2020(1)(2) | | | 3,567,264 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 19.5% - (continued) | |
| | | | | | | Whole Loan Collateral CMO - 6.2% - (continued) | |
| | $ | | | | 2,507,194 | | | New Residential Mortgage Loan Trust
3.75%, 03/25/2056(1) | | $ | 2,619,101 | |
| | | | | 1,696,077 | | | Sequoia Mortgage Trust
0.91%, 02/20/2035(2) | | | 1,592,473 | |
| | | | | 2,319,700 | | | Thornburg Mortgage Securities Trust
2.54%, 04/25/2045(2) | | | 2,319,703 | |
| | | | | | | | Towd Point Mortgage Trust | | | | |
| | | | | 2,603,512 | | | 2.75%, 02/25/2055(1)(2) | | | 2,630,768 | |
| | | | | 2,404,571 | | | 2.75%, 04/25/2055(1)(2) | | | 2,433,899 | |
| | | | | 116,019 | | | 2.75%, 05/25/2055(1)(2) | | | 117,460 | |
| | | | | 668,190 | | | 2.75%, 08/25/2055(1)(2) | | | 674,454 | |
| | | | | 3,073,044 | | | 3.00%, 03/25/2054(1)(2) | | | 3,104,014 | |
| | | | | | | | WaMu Mortgage Pass-Through Certificates | | | | |
| | | | | 2,080,974 | | | 2.43%, 10/25/2035(2) | | | 1,964,298 | |
| | | | | 2,014,195 | | | 2.48%, 03/25/2033(2) | | | 1,997,137 | |
| | | | | 1,948,070 | | | Wells Fargo Mortgage Backed Securities Trust
2.67%, 09/25/2033(2) | | | 1,928,457 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 30,804,018 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Asset & Commercial Mortgage Backed Securities (cost $97,007,066) | | | 97,605,790 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 70.2% | |
| | | | | | | FHLMC - 32.3% | | | |
| | | | | 5,425,207 | | | 0.83%, 04/25/2020(2) | | | 5,433,305 | |
| | | | | 10,215,204 | | | 1.57%, 01/25/2022 | | | 10,285,262 | |
| | | | | 877,007 | | | 3.00%, 03/15/2033(3) | | | 106,981 | |
| | | | | 221,073 | | | 3.00%, 09/01/2045 | | | 229,399 | |
| | | | | 64,175,000 | | | 3.00%, 07/01/2046(4) | | | 66,444,402 | |
| | | | | 6,205,000 | | | 3.50%, 11/15/2025 | | | 6,809,440 | |
| | | | | 1,576,930 | | | 3.50%, 03/01/2046 | | | 1,666,138 | |
| | | | | 33,200,000 | | | 3.50%, 07/01/2046(4) | | | 34,972,565 | |
| | | | | 455,169 | | | 4.00%, 06/01/2044 | | | 486,995 | |
| | | | | 17,000,000 | | | 4.00%, 07/01/2046(4) | | | 18,179,375 | |
| | | | | 62,916 | | | 4.50%, 12/01/2018 | | | 64,399 | |
| | | | | 3,961,690 | | | 4.50%, 05/15/2034 | | | 4,265,545 | |
| | | | | 7,374 | | | 5.50%, 06/01/2034 | | | 8,304 | |
| | | | | 56,668 | | | 5.50%, 10/01/2035 | | | 63,759 | |
| | | | | 97,416 | | | 5.50%, 04/01/2037 | | | 108,991 | |
| | | | | 1,165,293 | | | 5.50%, 12/01/2037 | | | 1,311,213 | |
| | | | | 413,859 | | | 5.50%, 04/01/2038 | | | 463,714 | |
| | | | | 28,827 | | | 5.50%, 05/01/2038 | | | 32,493 | |
| | | | | 2,283,242 | | | 5.50%, 08/01/2038 | | | 2,561,565 | |
| | | | | 4,462 | | | 5.50%, 12/01/2039 | | | 5,019 | |
| | | | | 61,959 | | | 6.00%, 10/01/2021 | | | 70,317 | |
| | | | | 77,855 | | | 6.00%, 10/01/2022 | | | 88,358 | |
| | | | | 104,422 | | | 6.00%, 01/01/2028 | | | 120,602 | |
| | | | | 31,198 | | | 6.00%, 04/15/2028 | | | 35,490 | |
| | | | | 62,050 | | | 6.00%, 05/15/2028(5) | | | 70,807 | |
| | | | | 73,058 | | | 6.00%, 11/15/2028 | | | 83,173 | |
| | | | | 131,021 | | | 6.00%, 12/15/2028 | | | 149,422 | |
| | | | | 284,482 | | | 6.00%, 01/15/2029 | | | 325,680 | |
| | | | | 64,565 | | | 6.00%, 02/15/2029 | | | 73,862 | |
| | | | | 72,604 | | | 6.00%, 03/15/2029 | | | 82,733 | |
| | | | | 47,121 | | | 6.00%, 05/15/2029 | | | 54,100 | |
| | | | | 11,478 | | | 6.00%, 06/15/2029 | | | 12,961 | |
| | | | | 3,202 | | | 6.00%, 03/15/2031 | | | 3,681 | |
| | | | | 133,274 | | | 6.00%, 04/15/2031 | | | 152,213 | |
| | | | | 64,872 | | | 6.00%, 10/15/2031 | | | 75,014 | |
| | | | | 70,928 | | | 6.00%, 12/01/2031 | | | 81,898 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 70.2% - (continued) | |
| | | | | | | FHLMC - 32.3% - (continued) | | | |
| | $ | | | | 480,656 | | | 6.00%, 12/15/2031(5) | | $ | 551,646 | |
| | | | | 560,868 | | | 6.00%, 12/15/2031 | | | 642,368 | |
| | | | | 22,202 | | | 6.00%, 05/15/2032 | | | 25,273 | |
| | | | | 1,263,325 | | | 6.00%, 06/15/2032 | | | 1,438,153 | |
| | | | | 1,098,762 | | | 6.00%, 09/15/2032 | | | 1,253,215 | |
| | | | | 109,208 | | | 6.00%, 10/15/2032 | | | 126,974 | |
| | | | | 793 | | | 6.00%, 11/01/2032 | | | 915 | |
| | | | | 70,546 | | | 6.00%, 11/15/2032 | | | 79,252 | |
| | | | | 16,065 | | | 6.00%, 04/01/2033 | | | 18,245 | |
| | | | | 24,016 | | | 6.00%, 09/01/2034 | | | 27,817 | |
| | | | | 6,108 | | | 6.50%, 02/01/2017 | | | 6,173 | |
| | | | | 9,262 | | | 6.50%, 04/01/2028 | | | 10,704 | |
| | | | | 421,755 | | | 6.50%, 08/15/2028 | | | 472,325 | |
| | | | | 1,024,982 | | | 6.50%, 05/15/2032 | | | 1,193,647 | |
| | | | | 143,192 | | | 6.50%, 08/01/2032 | | | 172,015 | |
| | | | | 307,634 | | | 6.50%, 09/01/2032 | | | 359,111 | |
| | | | | 27,871 | | | 7.00%, 10/01/2026 | | | 29,167 | |
| | | | | 5,500 | | | 7.00%, 03/01/2027 | | | 6,234 | |
| | | | | 4,415 | | | 7.00%, 12/01/2027 | | | 4,568 | |
| | | | | 1,404 | | | 7.00%, 02/01/2029 | | | 1,694 | |
| | | | | 922 | | | 7.00%, 05/01/2029 | | | 1,030 | |
| | | | | 2,087 | | | 7.00%, 09/01/2029 | | | 2,382 | |
| | | | | 726 | | | 7.00%, 02/01/2031 | | | 884 | |
| | | | | 111,002 | | | 7.00%, 04/01/2032 | | | 131,223 | |
| | | | | 62,536 | | | 7.00%, 05/01/2032 | | | 64,370 | |
| | | | | 76,492 | | | 7.00%, 06/01/2032 | | | 92,790 | |
| | | | | 126,175 | | | 7.00%, 11/01/2032 | | | 147,646 | |
| | | | | 3,806 | | | 7.50%, 05/01/2024 | | | 4,419 | |
| | | | | 680 | | | 7.50%, 06/01/2024 | | | 689 | |
| | | | | 2,079 | | | 7.50%, 06/01/2025 | | | 2,316 | |
| | | | | 5,960 | | | 8.00%, 08/01/2024 | | | 6,224 | |
| | | | | 5,619 | | | 8.00%, 09/01/2024 | | | 5,887 | |
| | | | | 8,144 | | | 8.00%, 10/01/2024 | | | 8,581 | |
| | | | | 863 | | | 10.00%, 11/01/2020 | | | 867 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 161,867,979 | |
| | | | | | | | | | | | |
| | | | | | | FNMA - 36.5% | | | |
| | | | | 4,225,000 | | | 1.25%, 05/06/2021 | | | 4,240,835 | |
| | | | | 8,036,934 | | | 1.49%, 03/01/2018 | | | 8,094,772 | |
| | | | | 3,044,600 | | | 1.88%, 06/25/2055(2)(3) | | | 201,874 | |
| | | | | 4,941,558 | | | 1.95%, 08/25/2044(2)(3) | | | 339,145 | |
| | | | | 2,175,000 | | | 2.13%, 04/24/2026 | | | 2,233,840 | |
| | | | | 3,501,864 | | | 2.22%, 10/01/2022 | | | 3,615,880 | |
| | | | | 6,248,561 | | | 2.25%, 10/01/2022 | | | 6,447,439 | |
| | | | | 3,526,885 | | | 2.31%, 10/01/2022 | | | 3,659,352 | |
| | | | | 2,000,000 | | | 2.50%, 07/01/2031(4) | | | 2,069,178 | |
| | | | | 2,018,137 | | | 2.56%, 01/01/2019 | | | 2,088,533 | |
| | | | | 1,535,476 | | | 2.65%, 07/01/2019 | | | 1,590,934 | |
| | | | | 2,500,000 | | | 2.68%, 05/01/2025 | | | 2,610,882 | |
| | | | | 938,846 | | | 3.00%, 09/25/2027(3) | | | 88,290 | |
| | | | | 3,825,062 | | | 3.00%, 01/01/2030 | | | 4,012,242 | |
| | | | | 98,272 | | | 3.00%, 12/01/2030 | | | 103,081 | |
| | | | | 3,125,000 | | | 3.00%, 07/01/2031(4) | | | 3,276,123 | |
| | | | | 3,387,996 | | | 3.00%, 03/01/2043 | | | 3,523,731 | |
| | | | | 12,790,017 | | | 3.00%, 08/01/2043 | | | 13,300,295 | |
| | | | | 25,175,000 | | | 3.00%, 07/01/2046(4) | | | 26,125,940 | |
| | | | | 7,710,950 | | | 3.11%, 10/01/2021 | | | 8,265,450 | |
| | | | | 272,009 | | | 3.41%, 11/01/2020 | | | 292,937 | |
| | | | | 228,025 | | | 3.50%, 11/01/2020 | | | 247,131 | |
| | | | | 16,450,728 | | | 3.50%, 04/25/2044 | | | 17,654,614 | |
| | | | | 4,636,170 | | | 3.50%, 01/01/2046 | | | 4,900,457 | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 70.2% - (continued) | |
| | | | | | | FNMA - 36.5% - (continued) | | | |
| | $ | | | | 1,100,000 | | | 3.50%, 07/14/2046 | | $ | 1,160,672 | |
| | | | | 1,035,050 | | | 3.59%, 09/01/2030 | | | 1,150,500 | |
| | | | | 7,350,877 | | | 3.74%, 06/01/2018 | | | 7,617,943 | |
| | | | | 2,514,417 | | | 4.00%, 11/01/2044 | | | 2,695,736 | |
| | | | | 20,975,000 | | | 4.00%, 07/01/2046(4) | | | 22,475,593 | |
| | | | | 2,183,890 | | | 4.50%, 10/01/2040 | | | 2,392,727 | |
| | | | | 995,387 | | | 4.50%, 10/01/2041 | | | 1,089,843 | |
| | | | | 2,786,715 | | | 4.50%, 01/01/2043 | | | 3,053,960 | |
| | | | | 864,486 | | | 4.50%, 09/01/2043 | | | 942,998 | |
| | | | | 5,925,000 | | | 4.50%, 07/01/2046(4) | | | 6,467,477 | |
| | | | | 70,671 | | | 5.00%, 08/01/2018 | | | 72,655 | |
| | | | | 206,117 | | | 5.00%, 10/01/2018 | | | 212,024 | |
| | | | | 210,246 | | | 5.00%, 06/01/2025 | | | 225,898 | |
| | | | | 599,538 | | | 5.46%, 05/25/2042(2)(3) | | | 68,476 | |
| | | | | 4,002 | | | 5.50%, 11/01/2016 | | | 4,010 | |
| | | | | 19,217 | | | 5.50%, 10/01/2017 | | | 19,628 | |
| | | | | 15,747 | | | 5.50%, 12/01/2017 | | | 16,092 | |
| | | | | 89,518 | | | 5.50%, 04/01/2018 | | | 91,507 | |
| | | | | 52,533 | | | 5.50%, 06/01/2018 | | | 53,750 | |
| | | | | 5,396 | | | 5.50%, 07/01/2018 | | | 5,579 | |
| | | | | 903,934 | | | 5.50%, 08/01/2019 | | | 952,424 | |
| | | | | 334,960 | | | 6.00%, 10/01/2023 | | | 382,497 | |
| | | | | 41,681 | | | 6.00%, 10/25/2028 | | | 47,651 | |
| | | | | 15,006 | | | 6.00%, 11/25/2028 | | | 17,196 | |
| | | | | 60,236 | | | 6.00%, 04/25/2029 | | | 68,030 | |
| | | | | 1,016 | | | 6.00%, 05/01/2029 | | | 1,173 | |
| | | | | 49,766 | | | 6.00%, 05/25/2029 | | | 56,875 | |
| | | | | 42,495 | | | 6.00%, 06/25/2029 | | | 48,619 | |
| | | | | 90,418 | | | 6.00%, 07/25/2029 | | | 103,415 | |
| | | | | 496,630 | | | 6.00%, 05/25/2031(5) | | | 571,302 | |
| | | | | 160,143 | | | 6.00%, 09/25/2031 | | | 184,645 | |
| | | | | 38,847 | | | 6.00%, 11/25/2031 | | | 44,494 | |
| | | | | 632,086 | | | 6.00%, 12/25/2031 | | | 725,618 | |
| | | | | 280,708 | | | 6.00%, 01/01/2032 | | | 323,472 | |
| | | | | 412 | | | 6.00%, 04/01/2032 | | | 471 | |
| | | | | 510 | | | 6.00%, 05/01/2032 | | | 590 | |
| | | | | 2,498 | | | 6.00%, 09/25/2032 | | | 2,796 | |
| | | | | 100,710 | | | 6.00%, 11/01/2032 | | | 115,022 | |
| | | | | 58,754 | | | 6.00%, 02/01/2033 | | | 67,100 | |
| | | | | 346,042 | | | 6.00%, 03/01/2033 | | | 400,952 | |
| | | | | 1,132,152 | | | 6.00%, 05/01/2033 | | | 1,311,921 | |
| | | | | 13,124 | | | 6.00%, 08/01/2034 | | | 14,990 | |
| | | | | 176,892 | | | 6.00%, 01/01/2035 | | | 201,996 | |
| | | | | 3,854,390 | | | 6.00%, 02/01/2037 | | | 4,416,611 | |
| | | | | 46 | | | 6.50%, 04/01/2024 | | | 54 | |
| | | | | 226 | | | 6.50%, 04/01/2027 | | | 260 | |
| | | | | 17,817 | | | 6.50%, 04/01/2028 | | | 20,504 | |
| | | | | 317 | | | 6.50%, 05/01/2028 | | | 365 | |
| | | | | 9,705 | | | 6.50%, 10/01/2028 | | | 11,297 | |
| | | | | 198,892 | | | 6.50%, 11/01/2028 | | | 233,701 | |
| | | | | 102,720 | | | 6.50%, 12/01/2028 | | | 121,279 | |
| | | | | 522,918 | | | 6.50%, 06/25/2029(5) | | | 582,411 | |
| | | | | 327,620 | | | 6.50%, 08/01/2029 | | | 377,021 | |
| | | | | 951 | | | 6.50%, 11/01/2030 | | | 1,095 | |
| | | | | 6,821 | | | 6.50%, 05/01/2031 | | | 7,849 | |
| | | | | 258,292 | | | 6.50%, 10/25/2031 | | | 293,681 | |
| | | | | 1,624,259 | | | 6.50%, 08/01/2032 | | | 1,951,219 | |
| | | | | 56,642 | | | 6.50%, 09/01/2032 | | | 65,182 | |
| | | | | 2 | | | 7.00%, 08/01/2016 | | | 2 | |
| | | | | 12,892 | | | 7.00%, 06/01/2017 | | | 13,000 | |
| | | | | 1,208 | | | 7.00%, 11/01/2031 | | | 1,386 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 70.2% - (continued) | |
| | | | | | | FNMA - 36.5% - (continued) | | | |
| | $ | | | | 348 | | | 7.00%, 12/01/2031 | | $ | 358 | |
| | | | | 290,036 | | | 7.00%, 02/01/2032 | | | 347,331 | |
| | | | | 10,658 | | | 7.50%, 06/01/2023 | | | 12,266 | |
| | | | | 2,546 | | | 8.00%, 10/01/2029 | | | 3,121 | |
| | | | | 116 | | | 8.00%, 03/01/2030 | | | 119 | |
| | | | | 9,013 | | | 8.00%, 04/01/2030 | | | 11,450 | |
| | | | | 32 | | | 8.00%, 06/01/2030 | | | 32 | |
| | | | | 21,207 | | | 8.00%, 10/01/2030 | | | 25,658 | |
| | | | | 28,191 | | | 8.00%, 12/01/2030 | | | 32,891 | |
| | | | | 242 | | | 8.50%, 04/01/2017 | | | 246 | |
| | | | | 239 | | | 9.00%, 08/01/2020 | | | 259 | |
| | | | | 20,835 | | | 9.00%, 09/01/2021 | | | 21,028 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 182,994,948 | |
| | | | | | | | | | | | |
| | | | | | | GNMA - 1.4% | | | |
| | | | | 329,253 | | | 4.00%, 01/20/2044(3) | | | 70,322 | |
| | | | | 1,195,649 | | | 5.00%, 01/20/2034 | | | 1,329,961 | |
| | | | | 1,399,901 | | | 5.50%, 09/20/2033 | | | 1,555,475 | |
| | | | | 618,438 | | | 6.00%, 01/15/2033 | | | 726,058 | |
| | | | | 414,566 | | | 6.00%, 02/15/2033 | | | 486,604 | |
| | | | | 52,062 | | | 6.50%, 12/15/2028 | | | 62,039 | |
| | | | | 39,335 | | | 6.50%, 05/15/2029 | | | 46,336 | |
| | | | | 615,541 | | | 6.50%, 05/16/2031 | | | 721,996 | |
| | | | | 60,129 | | | 6.50%, 09/15/2031 | | | 69,579 | |
| | | | | 250,514 | | | 6.50%, 10/15/2031 | | | 285,800 | |
| | | | | 273,527 | | | 6.50%, 11/15/2031 | | | 313,055 | |
| | | | | 323,222 | | | 6.50%, 01/15/2032 | | | 370,340 | |
| | | | | 20,400 | | | 7.00%, 06/20/2030 | | | 23,305 | |
| | | | | 18,279 | | | 7.00%, 05/15/2032 | | | 20,977 | |
| | | | | 48,121 | | | 7.00%, 07/15/2032 | | | 54,877 | |
| | | | | 120,351 | | | 7.00%, 09/15/2032 | | | 130,455 | |
| | | | | 666,447 | | | 7.00%, 10/15/2032 | | | 779,451 | |
| | | | | 2,122 | | | 7.50%, 04/15/2022 | | | 2,130 | |
| | | | | 4,146 | | | 7.50%, 01/15/2023 | | | 4,187 | |
| | | | | 948 | | | 7.50%, 05/15/2023 | | | 1,031 | |
| | | | | 6,226 | | | 7.50%, 06/15/2023 | | | 6,816 | |
| | | | | 1,719 | | | 7.50%, 07/15/2023 | | | 1,726 | |
| | | | | 18,007 | | | 7.50%, 08/15/2023 | | | 18,407 | |
| | | | | 7,385 | | | 7.50%, 09/15/2023 | | | 7,418 | |
| | | | | 11,202 | | | 7.50%, 10/15/2023 | | | 11,793 | |
| | | | | 21,836 | | | 7.50%, 11/15/2023 | | | 23,486 | |
| | | | | 5,272 | | | 7.50%, 12/15/2023 | | | 5,290 | |
| | | | | 9,985 | | | 7.50%, 02/15/2024 | | | 10,409 | |
| | | | | 2,746 | | | 7.50%, 04/15/2024 | | | 2,777 | |
| | | | | 2,462 | | | 7.50%, 05/15/2024 | | | 2,490 | |
| | | | | 69,614 | | | 7.50%, 07/15/2027 | | | 76,437 | |
| | | | | 50,791 | | | 7.50%, 04/20/2030 | | | 58,648 | |
| | | | | 100 | | | 8.50%, 09/15/2019 | | | 101 | |
| | | | | 9,948 | | | 8.50%, 09/15/2024 | | | 11,294 | |
| | | | | 1,218 | | | 8.50%, 06/15/2029 | | | 1,298 | |
| | | | | 158 | | | 8.50%, 09/15/2029 | | | 158 | |
| | | | | 6,397 | | | 8.50%, 10/15/2029 | | | 6,926 | |
| | | | | 2,758 | | | 8.50%, 01/15/2030 | | | 3,205 | |
| | | | | 8,769 | | | 8.50%, 02/15/2030 | | | 8,890 | |
| | | | | 963 | | | 8.50%, 03/15/2030 | | | 1,043 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,312,590 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Agencies
(cost $346,200,945) | | $ | 352,175,517 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT SECURITIES - 35.2% | |
| | | | | | | Other Direct Federal Obligations - 16.2% | |
| | | | | | | FHLB - 16.2% | | | |
| | $ | | | | 2,525,000 | | | 0.88%, 06/29/2018 | | $ | 2,535,108 | |
| | | | | 18,810,000 | | | 1.75%, 12/14/2018 | | | 19,258,919 | |
| | | | | 4,825,000 | | | 1.88%, 08/01/2019 | | | 4,982,314 | |
| | | | | 19,965,000 | | | 4.13%, 03/13/2020 | | | 22,213,239 | |
| | | | | 26,000,000 | | | 5.25%, 12/09/2022 | | | 32,032,442 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 81,022,022 | |
| | | | | | | | | | | | |
| | | | | | | U.S. Treasury Securities - 19.0% | |
| | | | | | | U.S. Treasury Notes - 19.0% | |
| | | | | 19,331,894 | | | 1.38%, 01/15/2020(6) | | | 20,640,566 | |
| | | | | 25,575,000 | | | 2.00%, 08/15/2025 | | | 26,736,872 | |
| | | | | 45,000,000 | | | 2.25%, 11/15/2025 | | | 48,009,375 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 95,386,813 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Securities
(cost $168,651,782) | | $ | 176,408,835 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Long-Term Investments
(cost $611,859,793) | | $ | 626,190,142 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | SHORT-TERM INVESTMENTS - 11.9% | |
| | | | | | | Discount Notes - 5.8% | | | |
| | | | | | | | FHLB | | | | |
| | | | | 10,000,000 | | | 0.24%, 07/22/2016(7) | | $ | 9,998,571 | |
| | | | | 19,000,000 | | | 0.25%, 07/25/2016(7) | | | 18,996,706 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,995,277 | |
| | | | | | | | | | | | |
| | | | | | | Other Investment Pools & Funds - 6.1% | |
| | | | | 30,668,145 | | | Fidelity Money Market Class 1 | | | 30,668,145 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $59,663,422) | | $ | 59,663,422 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $671,523,215)^ | | | 136.8 | % | | $ | 685,853,564 | |
| | | | Other Assets and Liabilities | | | (36.8 | )% | | | (184,403,845 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 501,449,719 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | The Fund may refer to any one or more of the industry classifications used by one or more widely recognized market indices, ratings group indices and/or as defined by Fund management. Industry classifications may not be identical across all security types. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 14,951,053 | |
Unrealized Depreciation | | | (620,704 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 14,330,349 | |
| | | | |
| (1) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At June 30, 2016, the aggregate value of these securities was $75,974,043, which represents 15.2% of total net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at June 30, 2016. |
| (3) | Securities disclosed are interest-only strips. |
| (4) | Represents or includes a TBA transaction. |
| (5) | These securities pay no principal or interest during their initial accrual period, but accrue additional principal at a specified coupon rate. |
| (6) | The principal amount for this security is adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (7) | The rate shown represents current yield to maturity. |
Futures Contracts Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | | | | | |
Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note Future | | | 332 | | | | 09/21/2016 | | | $ | 43,117,363 | | | $ | 44,150,813 | | | $ | 1,033,450 | |
U.S. Treasury 10-Year Ultra Future | | | 37 | | | | 09/21/2016 | | | | 5,195,974 | | | | 5,389,859 | | | | 193,885 | |
U.S. Treasury Long Bond Future | | | 19 | | | | 09/21/2016 | | | | 3,174,726 | | | | 3,274,531 | | | | 99,805 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 1,327,140 | |
| | | | | | | | | | | | | | | | | | | | |
Short position contracts: | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury 2-Year Note Future | | | 116 | | | | 09/30/2016 | | | $ | 25,447,281 | | | $ | 25,442,063 | | | $ | 5,218 | |
U.S. Treasury 5-Year Note Future | | | 100 | | | | 09/30/2016 | | | | 11,991,333 | | | | 12,216,406 | | | | (225,073 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | | $ | (219,855 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total futures contracts | | | | | | | | | | | | | | | | | | $ | 1,107,285 | |
| | | | | | | | | | | | | | | | | | | | |
TBA Sale Commitments Outstanding at June 30, 2016
| | | | | | | | | | | | | | | | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
FHLMC, 5.50% | | $ | 4,100,000 | | | | 07/01/2046 | | | $ | (4,569,607 | ) | | $ | (21,170 | ) |
FNMA, 3.00% | | | 63,775,000 | | | | 07/01/2046 | | | | (66,183,986 | ) | | | (711,480 | ) |
FNMA, 3.00% | | | 43,200,000 | | | | 08/01/2046 | | | | (44,750,802 | ) | | | (28,671 | ) |
FNMA, 3.50% | | | 13,200,000 | | | | 07/01/2046 | | | | (13,928,062 | ) | | | (92,296 | ) |
FNMA, 3.50% | | | 5,900,000 | | | | 08/01/2046 | | | | (6,211,594 | ) | | | — | |
FNMA, 4.50% | | | 7,300,000 | | | | 07/01/2046 | | | | (7,968,368 | ) | | | 4,934 | |
FNMA, 4.50% | | | 1,200,000 | | | | 08/01/2046 | | | | (1,309,125 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total (proceeds $144,072,861) | | | | | | | | | | $ | (144,921,544 | ) | | $ | (848,683 | ) |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
At June 30, 2016, the aggregate market value of these securities represents (28.9)% of total net assets.
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
CLO | | Collateralized Loan Obligation |
CMO | | Collateralized Mortgage Obligation |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
GNMA | | Government National Mortgage Association |
TBA | | To Be Announced |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | 97,605,790 | | | $ | — | | | $ | 97,605,790 | | | $ | — | |
U.S. Government Agencies | | | 352,175,517 | | | | — | | | | 352,175,517 | | | | — | |
U.S. Government Securities | | | 176,408,835 | | | | — | | | | 176,408,835 | | | | — | |
Short-Term Investments | | | 59,663,422 | | | | 30,668,145 | | | | 28,995,277 | | | | — | |
Futures Contracts(2) | | | 1,332,358 | | | | 1,332,358 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 687,185,922 | | | $ | 32,000,503 | | | $ | 655,185,419 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts(2) | | $ | (225,073 | ) | | $ | (225,073 | ) | | $ | — | | | $ | — | |
TBA Sale Commitments | | | (144,921,544 | ) | | | — | | | | (144,921,544 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (145,146,617 | ) | | $ | (225,073 | ) | | $ | (144,921,544 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/depreciation on the investments. |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% | |
| | | | Banks - 12.3% | |
| | 242,645 | | | Citigroup, Inc. | | $ | 10,285,722 | |
| | 308,372 | | | JP Morgan Chase & Co. | | | 19,162,236 | |
| | 51,490 | | | M&T Bank Corp. | | | 6,087,663 | |
| | 123,590 | | | PNC Financial Services Group, Inc. | | | 10,058,990 | |
| | 386,495 | | | Wells Fargo & Co. | | | 18,292,808 | |
| | | | | | | | |
| | | | | | | 63,887,419 | |
| | | | | | | | |
| | | | Capital Goods - 10.1% | |
| | 36,455 | | | 3M Co. | | | 6,384,000 | |
| | 33,400 | | | Caterpillar, Inc. | | | 2,532,054 | |
| | 129,625 | | | Eaton Corp. plc | | | 7,742,501 | |
| | 134,380 | | | Fortune Brands Home & Security, Inc. | | | 7,790,009 | |
| | 316,650 | | | General Electric Co. | | | 9,968,142 | |
| | 104,535 | | | Ingersoll-Rand plc | | | 6,656,789 | |
| | 105,230 | | | Triumph Group, Inc. | | | 3,735,665 | |
| | 75,110 | | | United Technologies Corp. | | | 7,702,530 | |
| | | | | | | | |
| | | | | | | 52,511,690 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.1% | |
| | 109,900 | | | Nielsen Holdings plc | | | 5,711,503 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.8% | |
| | 259,735 | | | PulteGroup, Inc. | | | 5,062,235 | |
| | 47,725 | | | PVH Corp. | | | 4,497,127 | |
| | | | | | | | |
| | | | | | | 9,559,362 | |
| | | | | | | | |
| | | | Consumer Services - 1.9% | |
| | 231,490 | | | Hilton Worldwide Holdings, Inc. | | | 5,215,470 | |
| | 117,610 | | | Norwegian Cruise Line Holdings Ltd.* | | | 4,685,582 | |
| | | | | | | | |
| | | | | | | 9,901,052 | |
| | | | | | | | |
| | | | Diversified Financials - 5.0% | |
| | 37,280 | | | Ameriprise Financial, Inc. | | | 3,349,608 | |
| | 23,355 | | | BlackRock, Inc. | | | 7,999,788 | |
| | 31,580 | | | Goldman Sachs Group, Inc. | | | 4,692,157 | |
| | 19,385 | | | Intercontinental Exchange, Inc. | | | 4,961,785 | |
| | 181,560 | | | Invesco Ltd. | | | 4,637,042 | |
| | 230,200 | | | Solar Cayman Ltd.*(1)(2)(3) | | | 57,550 | |
| | | | | | | | |
| | | | | | | 25,697,930 | |
| | | | | | | | |
| | | | Energy - 12.2% | |
| | 53,715 | | | Anadarko Petroleum Corp. | | | 2,860,324 | |
| | 130,500 | | | Canadian Natural Resources Ltd. | | | 4,023,315 | |
| | 122,605 | | | Chevron Corp. | | | 12,852,682 | |
| | 87,650 | | | EOG Resources, Inc. | | | 7,311,763 | |
| | 98,445 | | | Exxon Mobil Corp. | | | 9,228,234 | |
| | 162,125 | | | Halliburton Co. | | | 7,342,641 | |
| | 421,419 | | | Marathon Oil Corp. | | | 6,325,499 | |
| | 55,370 | | | Occidental Petroleum Corp. | | | 4,183,757 | |
| | 38,720 | | | Pioneer Natural Resources Co. | | | 5,854,851 | |
| | 2,652 | | | PrairieSky Royalty Ltd. | | | 50,333 | |
| | 243,720 | | | Southwestern Energy Co.* | | | 3,065,998 | |
| | | | | | | | |
| | | | | | | 63,099,397 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.2% | |
| | 63,370 | | | CVS Health Corp. | | | 6,067,044 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.9% | |
| | 95,614 | | | British American Tobacco plc | | | 6,198,561 | |
| | 25,515 | | | Diageo plc ADR | | | 2,880,133 | |
| | 43,270 | | | Ingredion, Inc. | | | 5,599,571 | |
| | 61,693 | | | Kraft Heinz Co. | | | 5,458,596 | |
| | | | | | | | |
| | | | | | | 20,136,861 | |
| | | | | | | | |
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% - (continued) | |
| | | | Health Care Equipment & Services - 4.0% | |
| | 66,330 | | | Baxter International, Inc. | | $ | 2,999,442 | |
| | 110,136 | | | Medtronic plc | | | 9,556,501 | |
| | 59,505 | | | UnitedHealth Group, Inc. | | | 8,402,106 | |
| | | | | | | | |
| | | | | | | 20,958,049 | |
| | | | | | | | |
| | | | Insurance - 6.1% | |
| | 92,205 | | | American International Group, Inc. | | | 4,876,723 | |
| | 67,890 | | | Chubb Ltd. | | | 8,873,902 | |
| | 99,920 | | | Marsh & McLennan Cos., Inc. | | | 6,840,523 | |
| | 131,620 | | | MetLife, Inc. | | | 5,242,425 | |
| | 80,895 | | | Principal Financial Group, Inc. | | | 3,325,593 | |
| | 85,505 | | | Unum Group | | | 2,718,204 | |
| | | | | | | | |
| | | | | | | 31,877,370 | |
| | | | | | | | |
| | | | Materials - 3.0% | |
| | 37,700 | | | Agrium, Inc. | | | 3,408,834 | |
| | 128,180 | | | Dow Chemical Co. | | | 6,371,828 | |
| | 71,045 | | | International Paper Co. | | | 3,010,887 | |
| | 53,865 | | | Nucor Corp. | | | 2,661,470 | |
| | | | | | | | |
| | | | | | | 15,453,019 | |
| | | | | | | | |
| | | | Media - 3.4% | |
| | 118,410 | | | CBS Corp. Class B | | | 6,446,240 | |
| | 94,445 | | | Comcast Corp. Class A | | | 6,156,870 | |
| | 122,960 | | | Thomson Reuters Corp. | | | 4,970,043 | |
| | | | | | | | |
| | | | | | | 17,573,153 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 9.9% | |
| | 25,500 | | | Allergan plc* | | | 5,892,795 | |
| | 33,790 | | | Amgen, Inc. | | | 5,141,149 | |
| | 169,750 | | | AstraZeneca plc ADR | | | 5,124,753 | |
| | 116,600 | | | Bristol-Myers Squibb Co. | | | 8,575,930 | |
| | 40,970 | | | Gilead Sciences, Inc. | | | 3,417,717 | |
| | 234,650 | | | Merck & Co., Inc. | | | 13,518,186 | |
| | 84,824 | | | Pfizer, Inc. | | | 2,986,653 | |
| | 24,501 | | | Roche Holding AG | | | 6,465,318 | |
| | | | | | | | |
| | | | | | | 51,122,501 | |
| | | | | | | | |
| | | | Retailing - 3.6% | |
| | 36,740 | | | Home Depot, Inc. | | | 4,691,331 | |
| | 204,500 | | | Liberty Interactive Corp. QVC Group Class A* | | | 5,188,165 | |
| | 69,430 | | | Lowe’s Cos., Inc. | | | 5,496,773 | |
| | 41,350 | | | Signet Jewelers Ltd. | | | 3,407,653 | |
| | | | | | | | |
| | | | | | | 18,783,922 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.3% | |
| | 46,390 | | | Analog Devices, Inc. | | | 2,627,529 | |
| | 321,410 | | | Intel Corp. | | | 10,542,248 | |
| | 209,265 | | | Maxim Integrated Products, Inc. | | | 7,468,668 | |
| | 123,070 | | | QUALCOMM, Inc. | | | 6,592,860 | |
| | | | | | | | |
| | | | | | | 27,231,305 | |
| | | | | | | | |
| | | | Software & Services - 3.5% | |
| | 264,705 | | | Microsoft Corp. | | | 13,544,955 | |
| | 230,675 | | | Symantec Corp. | | | 4,738,064 | |
| | | | | | | | |
| | | | | | | 18,283,019 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.4% | |
| | 616,460 | | | Cisco Systems, Inc. | | | 17,686,237 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.8% | |
| | 168,640 | | | Verizon Communications, Inc. | | | 9,416,858 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% - (continued) | |
| | | | Transportation - 1.2% | |
| | 68,720 | | | Union Pacific Corp. | | $ | 5,995,820 | |
| | | | | | | | |
| | | | Utilities - 3.9% | |
| | 39,770 | | | Dominion Resources, Inc. | | | 3,099,276 | |
| | 76,190 | | | Edison International | | | 5,917,677 | |
| | 127,745 | | | Eversource Energy | | | 7,651,926 | |
| | | | | | | | | | | | |
| | 27,965 | | | NextEra Energy, Inc. | | | | | | | 3,646,636 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,315,515 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Common Stocks
(cost $407,437,953) | | | | | | $ | 511,269,026 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Long-Term Investments
(cost $407,437,953) | | | | | | $ | 511,269,026 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 1.3% | | | | |
| | | | Other Investment Pools & Funds - 1.3% | | | | |
| | 6,617,817 | | | BlackRock Liquidity Funds TempFund Portfolio | | | | | | $ | 6,617,817 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Short-Term Investments
(cost $6,617,817) | | | | | | $ | 6,617,817 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $414,055,770)^ | | | 99.9 | % | | $ | 517,886,843 | |
| | | | Other Assets and Liabilities | | | 0.1 | % | | | 269,458 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 518,156,301 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
| | Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board of Directors in order to reflect an adjustment for factors occurring after the close of certain foreign markets but before the close of the New York Stock Exchange. |
| | Equity industry classifications used in this report are the Global Industry Classification Standard, which was developed by and is the exclusive property and service mark of MSCI, Inc. and Standard & Poor’s. |
| | For Fund compliance purposes, the Fund may not use the same classification system shown in this report as these classifications are used for financial reporting purposes. |
| ^ | Aggregate cost for federal income tax purposes was substantially the same for book purposes; and net unrealized appreciation consisted of: |
| | | | |
Unrealized Appreciation | | $ | 126,790,722 | |
Unrealized Depreciation | | | (22,959,649 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 103,831,073 | |
| | | | |
| (1) | The following security is considered illiquid. Illiquid securities are often purchased in private placement transactions, are often not registered under the Securities Act of 1933, as amended, and may have contractual restrictions on resale. A security may also be considered illiquid if the security lacks a readily available market or if its valuation has not changed for a certain period of time. |
| | | | | | | | | | | | |
Period
Acquired | | | Shares/Par | | | Security | | Cost | |
| | 03/2007 | | | | 230,200 | | | Solar Cayman Ltd. | | $ | 67,469 | |
| | At June 30, 2016, the aggregate value of these securities was $57,550, which represents 0.0% of total net assets. |
| (2) | This security is valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At June 30, 2016, the aggregate fair value of this security was $57,550, which represents 0.0% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (3) | Securities issued within terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold only to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At June 30, 2016, the aggregate value of this security was $57,550, which represents 0.0% of total net assets. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
June 30, 2016 (Unaudited)
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of June 30, 2016 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3 | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 63,887,419 | | | $ | 63,887,419 | | | $ | — | | | $ | — | |
Capital Goods | | | 52,511,690 | | | | 52,511,690 | | | | — | | | | — | |
Commercial & Professional Services | | | 5,711,503 | | | | 5,711,503 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 9,559,362 | | | | 9,559,362 | | | | — | | | | — | |
Consumer Services | | | 9,901,052 | | | | 9,901,052 | | | | — | | | | — | |
Diversified Financials | | | 25,697,930 | | | | 25,640,380 | | | | — | | | | 57,550 | |
Energy | | | 63,099,397 | | | | 63,099,397 | | | | — | | | | — | |
Food & Staples Retailing | | | 6,067,044 | | | | 6,067,044 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 20,136,861 | | | | 13,938,300 | | | | 6,198,561 | | | | — | |
Health Care Equipment & Services | | | 20,958,049 | | | | 20,958,049 | | | | — | | | | — | |
Insurance | | | 31,877,370 | | | | 31,877,370 | | | | — | | | | — | |
Materials | | | 15,453,019 | | | | 15,453,019 | | | | — | | | | — | |
Media | | | 17,573,153 | | | | 17,573,153 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 51,122,501 | | | | 44,657,183 | | | | 6,465,318 | | | | — | |
Retailing | | | 18,783,922 | | | | 18,783,922 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 27,231,305 | | | | 27,231,305 | | | | — | | | | — | |
Software & Services | | | 18,283,019 | | | | 18,283,019 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 17,686,237 | | | | 17,686,237 | | | | — | | | | — | |
Telecommunication Services | | | 9,416,858 | | | | 9,416,858 | | | | — | | | | — | |
Transportation | | | 5,995,820 | | | | 5,995,820 | | | | — | | | | — | |
Utilities | | | 20,315,515 | | | | 20,315,515 | | | | — | | | | — | |
Short-Term Investments | | | 6,617,817 | | | | 6,617,817 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 517,886,843 | | | $ | 505,165,414 | | | $ | 12,663,879 | | | $ | 57,550 | |
| | | | | | | | | | | | | | | | |
| (1) | For the six-month period ended June 30, 2016, there were no transfers between Level 1 and Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the six-month period ended June 30, 2016:
| | | | | | | | |
| | | Common
Stocks | | | Total | |
Beginning balance | | $ | 49,723 | | | $ | 49,723 | |
Purchases | | | — | | | | — | |
Sales | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 7,827 | | | | 7,827 | |
Transfers into Level 3(1) | | | — | | | | — | |
Transfers out of Level 3(1) | | | — | | | | — | |
| | | | | | | | |
Ending balance | | $ | 57,550 | | | $ | 57,550 | |
| | | | | | | | |
The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at June 30, 2016 was $7,827.
| (1) | Investments are transferred into and out of Level 3 for a variety of reasons including, but not limited to: |
| | a) | Investments where trading has been halted (transfer into Level 3) or investments where trading has resumed (transfer out of Level 3). |
| | b) | Broker quoted investments (transfer into Level 3) or quoted prices in active markets (transfer out of Level 3). |
| | c) | Investments that have certain restrictions on trading (transfer into Level 3) or investments where trading restrictions have expired (transfer out of Level 3). |
| Note: | For purposes of reporting transfers between different hierarchy levels, both transfers in and out of each level, as applicable, are shown as if they occurred at the beginning of the period. |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
| | |
Hartford
Balanced HLS
Fund | | | Hartford
Capital Appreciation
HLS Fund | | | Hartford
Disciplined Equity
HLS Fund | |
Assets: | | | | | | | | | | | | |
Investments in securities, at market value | | $ | 2,421,417,278 | | | $ | 5,723,137,296 | | | $ | 697,876,937 | |
Cash | | | 101,923 | | | | — | | | | — | |
Cash collateral due from broker | | | 10,800 | | | | — | | | | 281,400 | |
Foreign currency | | | — | | | | 456,209 | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 1,306,706 | | | | — | |
Receivables: | | | | | | | | | | | | |
Investment securities sold | | | 37,954,157 | | | | 69,978,460 | | | | 2,557,027 | |
Fund shares sold | | | 2,204 | | | | 137,830 | | | | 29,789 | |
Dividends and interest | | | 9,475,151 | | | | 9,606,817 | | | | 620,375 | |
Variation margin on financial derivative instruments | | | — | | | | — | | | | 78,385 | |
Other assets | | | 669 | | | | 18,390 | | | | 9,584 | |
| | | | | | | | | | | | |
Total assets | | | 2,468,962,182 | | | | 5,804,641,708 | | | | 701,453,497 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | | — | | | | — | | | | — | |
TBA sale commitments, at market value | | | 8,914,074 | | | | — | | | | — | |
Payables: | | | | | | | | | | | | |
Investment securities purchased | | | 34,333,408 | | | | 26,487,940 | | | | 242,612 | |
Fund shares redeemed | | | 2,032,759 | | | | 3,850,974 | | | | 223,546 | |
Investment management fees | | | 1,195,239 | | | | 3,049,516 | | | | 418,411 | |
Variation margin on financial derivative instruments | | | 11,416 | | | | — | | | | — | |
Distribution fees | | | 59,798 | | | | 124,128 | | | | 17,752 | |
Accrued expenses | | | 192,020 | | | | 359,547 | | | | 60,628 | |
| | | | | | | | | | | | |
Total liabilities | | | 46,738,714 | | | | 33,872,105 | | | | 962,949 | |
| | | | | | | | | | | | |
Net assets | | $ | 2,422,223,468 | | | $ | 5,770,769,603 | | | $ | 700,490,548 | |
| | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | |
Capital stock and paid-in-capital | | $ | 2,094,746,421 | | | $ | 5,251,950,144 | | | $ | 441,187,043 | |
Undistributed (distributions in excess of) net investment income | | | 55,562,050 | | | | 39,692,302 | | | | 3,434,981 | |
Accumulated net realized gain (loss) | | | (170,330,356 | ) | | | 311,346,554 | | | | 122,796,323 | |
Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency | | | 442,245,353 | | | | 167,780,603 | | | | 133,072,201 | |
| | | | | | | | | | | | |
Net assets | | $ | 2,422,223,468 | | | $ | 5,770,769,603 | | | $ | 700,490,548 | |
| | | | | | | | | | | | |
Shares authorized | | | 9,700,000,000 | | | | 5,450,000,000 | | | | 3,500,000,000 | |
| | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 27.59 | | | $ | 43.84 | | | $ | 15.95 | |
| | | | | | | | | | | | |
Shares outstanding | | | 77,252,818 | | | | 118,019,047 | | | | 38,475,827 | |
| | | | | | | | | | | | |
Net Assets | | $ | 2,131,693,878 | | | $ | 5,173,464,602 | | | $ | 613,697,860 | |
| | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 27.94 | | | $ | 43.27 | | | $ | 15.81 | |
| | | | | | | | | | | | |
Shares outstanding | | | 10,396,947 | | | | 13,363,590 | | | | 5,490,270 | |
| | | | | | | | | | | | |
Net Assets | | $ | 290,529,590 | | | $ | 578,245,514 | | | $ | 86,792,688 | |
| | | | | | | | | | | | |
Class IC: Net asset value per share | | $ | — | | | $ | 43.49 | | | $ | — | |
| | | | | | | | | | | | |
Shares outstanding | | | — | | | | 438,202 | | | | — | |
| | | | | | | | | | | | |
Net Assets | | $ | — | | | $ | 19,059,487 | | | $ | — | |
| | | | | | | | | | | | |
Cost of investments | | $ | 1,979,149,306 | | | $ | 5,556,500,394 | | | $ | 564,838,999 | |
Cost of foreign currency | | $ | — | | | $ | 456,911 | | | $ | — | |
Proceeds of TBA sale commitments | | $ | 8,911,234 | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Hartford
Dividend and
Growth HLS
Fund | | | Hartford
Global Growth HLS
Fund | | | Hartford
Growth Opportunities
HLS Fund | | | Hartford
Healthcare HLS
Fund | | | Hartford
High Yield
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | | | Hartford
MidCap HLS
Fund | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,271,788,833 | | | $ | 439,041,856 | | | $ | 1,378,144,770 | | | $ | 348,567,791 | | | $ | 317,425,813 | | | $ | 1,239,676,219 | | | $ | 1,730,155,803 | |
| | 46,265 | | | | — | | | | — | | | | — | | | | 90,200 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 8,986 | | | | — | | | | — | |
| | — | | | | 30,673 | | | | 50,436 | | | | 10,903 | | | | — | | | | 925,197 | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13,914,661 | | | | 1,572,857 | | | | 17,141,526 | | | | 1,623,634 | | | | 4,511,266 | | | | 10,618,083 | | | | 6,783,814 | |
| | 169,950 | | | | 57,602 | | | | 157,483 | | | | 46,910 | | | | 341,169 | | | | 776,361 | | | | 226,680 | |
| | 4,623,538 | | | | 930,831 | | | | 1,096,307 | | | | 279,853 | | | | 4,998,996 | | | | 5,727,178 | | | | 782,813 | |
| | — | | | | — | | | | — | | | | — | | | | 470,699 | | | | — | | | | — | |
| | 2,848 | | | | 10,591 | | | | 13,998 | | | | 9,539 | | | | 11,016 | | | | 7,750 | | | | 5,649 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3,290,546,095 | | | | 441,644,410 | | | | 1,396,604,520 | | | | 350,538,630 | | | | 327,858,145 | | | | 1,257,730,788 | | | | 1,737,954,759 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | 44,871 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 9,354,744 | | | | 569,337 | | | | 18,319,479 | | | | 1,607,639 | | | | 124,856 | | | | 16,634,709 | | | | 6,645,465 | |
| | 1,276,247 | | | | 233,569 | | | | 484,442 | | | | 165,471 | | | | 247,593 | | | | 473,317 | | | | 766,540 | |
| | 1,751,111 | | | | 274,614 | | | | 640,439 | | | | 240,162 | | | | 190,126 | | | | 710,488 | | | | 963,776 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 88,278 | | | | 16,318 | | | | 34,232 | | | | 10,652 | | | | 15,787 | | | | 31,664 | | | | 19,535 | |
| | 159,731 | | | | 79,171 | | | | 113,954 | | | | 26,729 | | | | 50,124 | | | | 128,524 | | | | 76,854 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 12,630,111 | | | | 1,173,009 | | | | 19,592,546 | | | | 2,050,653 | | | | 673,357 | | | | 17,978,702 | | | | 8,472,170 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,277,915,984 | | | $ | 440,471,401 | | | $ | 1,377,011,974 | | | $ | 348,487,977 | | | $ | 327,184,788 | | | $ | 1,239,752,086 | | | $ | 1,729,482,589 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,946,175,473 | | | $ | 324,525,093 | | | $ | 1,088,959,031 | | | $ | 205,411,167 | | | $ | 338,661,453 | | | $ | 1,619,260,999 | | | $ | 1,245,727,709 | |
| | 38,329,774 | | | | 4,809,211 | | | | 5,101,348 | | | | 11,853,357 | | | | 29,058,915 | | | | 36,281,881 | | | | 2,260,401 | |
| | 436,209,551 | | | | 50,569,924 | | | | 151,612,113 | | | | 81,076,547 | | | | (28,711,391 | ) | | | (431,478,588 | ) | | | 216,788,141 | |
|
857,201,186 |
| | | 60,567,173 | | | | 131,339,482 | | | | 50,146,906 | | | | (11,824,189 | ) | | | 15,687,794 | | | | 264,706,338 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,277,915,984 | | | $ | 440,471,401 | | | $ | 1,377,011,974 | | | $ | 348,487,977 | | | $ | 327,184,788 | | | $ | 1,239,752,086 | | | $ | 1,729,482,589 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 4,200,000,000 | | | | 3,600,000,000 | | | | 900,000,000 | | | | 800,000,000 | | | | 2,800,000,000 | | | | 2,825,000,000 | | | | 2,600,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 22.99 | | | $ | 24.27 | | | $ | 34.26 | | | $ | 28.37 | | | $ | 8.08 | | | $ | 13.78 | | | $ | 34.65 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 123,903,502 | | | | 14,901,535 | | | | 35,345,265 | | | | 10,462,756 | | | | 31,094,734 | | | | 78,880,778 | | | | 47,155,535 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 2,848,914,919 | | | $ | 361,688,133 | | | $ | 1,210,939,097 | | | $ | 296,789,920 | | | $ | 251,227,514 | | | $ | 1,086,820,706 | | | $ | 1,633,918,014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 22.89 | | | $ | 24.04 | | | $ | 33.13 | | | $ | 27.43 | | | $ | 7.94 | | | $ | 13.92 | | | $ | 34.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 18,739,367 | | | | 3,277,213 | | | | 4,260,398 | | | | 1,884,867 | | | | 9,562,947 | | | | 10,985,567 | | | | 2,807,310 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 429,001,065 | | | $ | 78,783,268 | | | $ | 141,167,446 | | | $ | 51,698,057 | | | $ | 75,957,274 | | | $ | 152,931,380 | | | $ | 95,564,575 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | — | | | $ | 33.89 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 734,962 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | — | | | $ | 24,905,431 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 2,414,589,666 | | | $ | 378,441,345 | | | $ | 1,246,848,258 | | | $ | 298,418,943 | | | $ | 329,321,400 | | | $ | 1,223,788,099 | | | $ | 1,465,449,465 | |
| $ | — | | | $ | 30,875 | | | $ | 50,768 | | | $ | 10,975 | | | $ | — | | | $ | 927,782 | | | $ | — | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
| | |
Hartford
MidCap Value
HLS Fund | | | Hartford
Small Cap Growth
HLS Fund | | | Hartford
Small Company
HLS Fund | |
Assets: | | | | | | | | | | | | |
Investments in securities, at market value | | $ | 359,576,832 | | | $ | 1,104,894,275 | | | $ | 960,374,125 | |
Cash | | | 44,273 | | | | — | | | | — | |
Cash collateral due from broker | | | — | | | | — | | | | — | |
Foreign currency | | | 18,087 | | | | — | | | | — | |
Unrealized appreciation on OTC swap contracts | | | — | | | | — | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | — | | | | — | |
Receivables: | | | | | | | | | | | | |
Investment securities sold | | | 3,087,660 | | | | 6,582,278 | | | | 37,354,368 | |
Fund shares sold | | | 4,848 | | | | 460,762 | | | | 196,387 | |
Dividends and interest | | | 419,545 | | | | 360,905 | | | | 520,828 | |
Variation margin on financial derivative instruments | | | — | | | | — | | | | — | |
OTC swap premiums paid | | | — | | | | — | | | | — | |
Other assets | | | 10,897 | | | | 9,259 | | | | 8,333 | |
| | | | | | | | | | | | |
Total assets | | | 363,162,142 | | | | 1,112,307,479 | | | | 998,454,041 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | | — | | | | — | | | | — | |
Bank overdraft | | | — | | | | — | | | | — | |
Unrealized depreciation on OTC swap contracts | | | — | | | | — | | | | — | |
Cash collateral due to broker | | | — | | | | — | | | | — | |
TBA sale commitments, at market value | | | — | | | | — | | | | — | |
Unfunded loan commitments | | | — | | | | — | | | | — | |
Payables: | | | | | | | | | | | | |
Investment securities purchased | | | 1,595,964 | | | | 9,606,221 | | | | 12,273,492 | |
Fund shares redeemed | | | 306,804 | | | | 1,305,025 | | | | 495,084 | |
Investment management fees | | | 240,460 | | | | 552,324 | | | | 629,348 | |
Variation margin on financial derivative instruments | | | — | | | | — | | | | — | |
Foreign taxes | | | — | | | | — | | | | — | |
Distribution fees | | | 17,901 | | | | 42,535 | | | | 19,209 | |
Interest on forward sales commitments | | | — | | | | — | | | | — | |
Written options | | | — | | | | — | | | | — | |
Accrued expenses | | | 40,392 | | | | 35,622 | | | | 82,129 | |
OTC swap premiums received | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Total liabilities | | | 2,201,521 | | | | 11,541,727 | | | | 13,499,262 | |
| | | | | | | | | | | | |
Net assets | | $ | 360,960,621 | | | $ | 1,100,765,752 | | | $ | 984,954,779 | |
| | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | |
Capital stock and paid-in-capital | | $ | 261,895,985 | | | $ | 1,058,519,243 | | | $ | 993,909,376 | |
Undistributed (distributions in excess of) net investment income | | | 2,095,696 | | | | 1,532,043 | | | | (1,245,973 | ) |
Accumulated net realized gain (loss) | | | 64,281,172 | | | | 14,507,958 | | | | (33,255,788 | ) |
Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency | | | 32,687,768 | | | | 26,206,508 | | | | 25,547,164 | |
| | | | | | | | | | | | |
Net assets | | $ | 360,960,621 | | | $ | 1,100,765,752 | | | $ | 984,954,779 | |
| | | | | | | | | | | | |
Shares authorized | | | 1,200,000,000 | | | | 700,000,000 | | | | 1,500,000,000 | |
| | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 12.45 | | | $ | 24.74 | | | $ | 16.41 | |
| | | | | | | | | | | | |
Shares outstanding | | | 22,075,068 | | | | 36,117,821 | | | | 54,387,645 | |
| | | | | | | | | | | | |
Net Assets | | $ | 274,875,258 | | | $ | 893,700,884 | | | $ | 892,659,146 | |
| | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 12.35 | | | $ | 24.17 | | | $ | 15.41 | |
| | | | | | | | | | | | |
Shares outstanding | | | 6,971,232 | | | | 8,568,671 | | | | 5,988,417 | |
| | | | | | | | | | | | |
Net Assets | | $ | 86,085,363 | | | $ | 207,064,868 | | | $ | 92,295,633 | |
| | | | | | | | | | | | |
Cost of investments | | $ | 326,887,359 | | | $ | 1,078,687,767 | | | $ | 934,821,799 | |
Cost of foreign currency | | $ | 18,163 | | | $ | — | | | $ | — | |
Proceeds of TBA sale commitments | | $ | — | | | $ | — | | | $ | — | |
Proceeds of written option contracts | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
Hartford
Small/Mid Cap
Equity HLS Fund | | | Hartford
Stock HLS Fund | | | Hartford
Total Return Bond
HLS Fund | | | Hartford
Ultrashort Bond
HLS Fund | | | Hartford
U.S. Government
Securities HLS
Fund | | | Hartford
Value HLS Fund | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 88,219,582 | | | $ | 1,522,080,980 | | | $ | 3,776,132,706 | | | $ | 653,019,430 | | | $ | 685,853,564 | | | $ | 517,886,843 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | 33,803 | |
| | — | | | | — | | | | 7,864,722 | | | | — | | | | 491,912 | | | | — | |
| | — | | | | 151,550 | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 6,614,743 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 1,210,586 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 1,437,370,308 | | | | 1,992,509 | | | | 318,148,927 | | | | — | |
| | 44,143 | | | | 7,437 | | | | 380,834 | | | | 64,523 | | | | 143,692 | | | | 24,031 | |
| | 170,933 | | | | 2,925,717 | | | | 17,124,437 | | | | 1,225,211 | | | | 1,563,202 | | | | 804,487 | |
| | — | | | | — | | | | 10,162,683 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 23,663,408 | | | | — | | | | — | | | | — | |
| | 15,158 | | | | 4,270 | | | | 2,054 | | | | 9,110 | | | | 15,533 | | | | 11,241 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 88,449,816 | | | | 1,525,169,954 | | | | 5,280,526,481 | | | | 656,310,783 | | | | 1,006,216,830 | | | | 518,760,405 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 3,778,853 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 1,861,947 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 11,986,224 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 18,596,942 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 256,858,546 | | | | — | | | | 144,921,544 | | | | — | |
| | — | | | | — | | | | 727,200 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 2,316,072,514 | | | | 1,747,393 | | | | 359,123,659 | | | | — | |
| | 131,771 | | | | 689,938 | | | | 1,458,098 | | | | 855,691 | | | | 400,591 | | | | 227,088 | |
| | 58,467 | | | | 594,022 | | | | 1,013,791 | | | | 215,367 | | | | 184,422 | | | | 318,379 | |
| | — | | | | — | | | | 5,611,705 | | | | — | | | | 61,991 | | | | — | |
| | — | | | | — | | | | 2,393 | | | | — | | | | — | | | | — | |
| | 3,025 | | | | 30,566 | | | | 58,862 | | | | 18,272 | | | | 18,539 | | | | 15,933 | |
| | — | | | | — | | | | 41,271 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 755,457 | | | | — | | | | — | | | | — | |
| | 18,372 | | | | 89,302 | | | | 253,229 | | | | 56,864 | | | | 56,365 | | | | 42,704 | |
| | — | | | | — | | | | 16,983,728 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 211,635 | | | | 1,403,828 | | | | 2,636,060,760 | | | | 2,893,587 | | | | 504,767,111 | | | | 604,104 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 88,238,181 | | | $ | 1,523,766,126 | | | $ | 2,644,465,721 | | | $ | 653,417,196 | | | $ | 501,449,719 | | | $ | 518,156,301 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 76,338,393 | | | $ | 1,411,902,266 | | | $ | 2,483,460,758 | | | $ | 649,245,770 | | | $ | 583,481,726 | | | $ | 331,928,291 | |
| | 2,075,261 | | | | 15,426,975 | | | | 110,504,950 | | | | 4,388,498 | | | | 13,527,209 | | | | 6,113,599 | |
| | 4,137,819 | | | | (214,981,609 | ) | | | 9,153,907 | | | | (331,831 | ) | | | (110,148,167 | ) | | | 76,290,460 | |
|
5,686,708 |
| | | 311,418,494 | | | | 41,346,106 | | | | 114,759 | | | | 14,588,951 | | | | 103,823,951 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 88,238,181 | | | $ | 1,523,766,126 | | | $ | 2,644,465,721 | | | $ | 653,417,196 | | | $ | 501,449,719 | | | $ | 518,156,301 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 900,000,000 | | | | 4,200,000,000 | | | | 5,000,000,000 | | | | 14,000,000,000 | | | | 700,000,000 | | | | 800,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0100 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.52 | | | $ | 67.63 | | | $ | 11.53 | | | $ | 10.05 | | | $ | 10.72 | | | $ | 16.24 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 9,797,906 | | | | 20,311,986 | | | | 204,448,506 | | | | 56,200,273 | | | | 38,329,500 | | | | 27,131,228 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 73,709,207 | | | $ | 1,373,648,445 | | | $ | 2,357,233,771 | | | $ | 564,941,677 | | | $ | 410,875,274 | | | $ | 440,518,869 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.46 | | | $ | 67.52 | | | $ | 11.45 | | | $ | 10.02 | | | $ | 10.68 | | | $ | 16.21 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,946,426 | | | | 2,223,412 | | | | 25,088,848 | | | | 8,832,954 | | | | 8,478,645 | | | | 4,790,591 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 14,528,974 | | | $ | 150,117,681 | | | $ | 287,231,950 | | | $ | 88,475,519 | | | $ | 90,574,445 | | | $ | 77,637,432 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 82,532,874 | | | $ | 1,210,611,081 | | | $ | 3,730,619,386 | | | $ | 652,904,671 | | | $ | 671,523,215 | | | $ | 414,055,770 | |
| $ | — | | | $ | 150,890 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| $ | — | | | $ | — | | | $ | 256,707,449 | | | $ | — | | | $ | 144,072,861 | | | $ | — | |
| $ | — | | | $ | — | | | $ | 909,488 | | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
For the Six-Month Period Ended June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
| | |
Hartford
Balanced HLS
Fund | | | Hartford
Capital Appreciation
HLS Fund | | | Hartford
Disciplined Equity
HLS Fund | |
Investment Income: | | | | | | | | | | | | |
Dividends | | $ | 21,365,401 | | | $ | 55,768,607 | | | $ | 5,247,187 | |
Interest | | | 13,758,945 | | | | 222,036 | | | | 19,014 | |
Less: Foreign tax withheld | | | (210,467 | ) | | | (1,533,293 | ) | | | — | |
| | | | | | | | | | | | |
Total investment income, net | | | 34,913,879 | | | | 54,457,350 | | | | 5,266,201 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment management fees | | | 7,467,867 | | | | 18,454,093 | | | | 2,515,461 | |
Administrative services fees | | | | | | | | | | | | |
Class IC | | | — | | | | 20,830 | | | | — | |
Transfer agent fees | | | | | | | | | | | | |
Class IA | | | 2,476 | | | | 4,321 | | | | 2,351 | |
Class IB | | | 338 | | | | 485 | | | | 334 | |
Class IC | | | — | | | | 14 | | | | — | |
Distribution fees | | | | | | | | | | | | |
Class IB | | | 361,658 | | | | 729,619 | | | | 107,212 | |
Class IC | | | — | | | | 20,830 | | | | — | |
Custodian fees | | | 10,043 | | | | 30,925 | | | | 2,657 | |
Registration and filing fees | | | 16,517 | | | | 24,973 | | | | 14,818 | |
Accounting services fees | | | 192,626 | | | | 505,397 | | | | 41,404 | |
Board of Directors’ fees | | | 33,614 | | | | 81,766 | | | | 9,936 | |
Audit fees | | | 19,097 | | | | 14,714 | | | | 12,104 | |
Other expenses | | | 274,132 | | | | 603,417 | | | | 108,428 | |
| | | | | | | | | | | | |
Total expenses (before waivers and fees paid indirectly) | | | 8,378,368 | | | | 20,491,384 | | | | 2,814,705 | |
Management fee waivers | | | (240,783 | ) | | | — | | | | — | |
Commission recapture | | | (8,456 | ) | | | (74,145 | ) | | | (3,742 | ) |
| | | | | | | | | | | | |
Total waivers and fees paid indirectly | | | (249,239 | ) | | | (74,145 | ) | | | (3,742 | ) |
| | | | | | | | | | | | |
Total expenses, net | | | 8,129,129 | | | | 20,417,239 | | | | 2,810,963 | |
| | | | | | | | | | | | |
Net Investment Income (Loss) | | | 26,784,750 | | | | 34,040,111 | | | | 2,455,238 | |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 45,963,723 | | | | (137,958,193 | ) | | | 37,319,726 | |
Net realized gain (loss) on futures contracts | | | 646,433 | | | | — | | | | (421,814 | ) |
Net realized gain (loss) on written options contracts | | | — | | | | 538,384 | | | | — | |
Net realized gain (loss) on swap contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (2,010,785 | ) | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | 13,966 | | | | (250,412 | ) | | | — | |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 46,624,122 | | | | (139,681,006 | ) | | | 36,897,912 | |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 10,975,923 | | | | 2,543,459 | | | | (24,087,815 | ) |
Net unrealized appreciation (depreciation) of futures contracts | | | 89,028 | | | | — | | | | (247,496 | ) |
Net unrealized appreciation (depreciation) of swap contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | 523,681 | | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 18,801 | | | | 52,927 | | | | (6 | ) |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 11,083,752 | | | | 3,120,067 | | | | (24,335,317 | ) |
| | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | 57,707,874 | | | | (136,560,939 | ) | | | 12,562,595 | |
| | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 84,492,624 | | | $ | (102,520,828 | ) | | $ | 15,017,833 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Six-Month Period Ended June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Hartford
Dividend and
Growth HLS
Fund | | | Hartford
Global Growth HLS
Fund | | | Hartford
Growth Opportunities
HLS Fund | | | Hartford
Healthcare HLS
Fund | | | Hartford
High Yield
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | | | Hartford
MidCap
HLS Fund | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 44,950,226 | | | $ | 4,133,938 | | | $ | 4,212,746 | | | $ | 1,788,482 | | | $ | 61,293 | | | $ | 24,376,817 | | | $ | 7,592,152 | |
| | 83,832 | | | | 8,389 | | | | 31,143 | | | | 10,470 | | | | 10,267,147 | | | | 59,540 | | | | 5,436 | |
| | (258,166 | ) | | | (182,412 | ) | | | (17,586 | ) | | | (17,465 | ) | | | — | | | | (2,294,134 | ) | | | (64,571 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 44,775,892 | | | | 3,959,915 | | | | 4,226,303 | | | | 1,781,487 | | | | 10,328,440 | | | | 22,142,223 | | | | 7,533,017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 10,576,237 | | | | 1,648,576 | | | | 3,766,466 | | | | 1,481,352 | | | | 1,134,825 | | | | 4,278,915 | | | | 5,648,790 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 27,615 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2,719 | | | | 2,213 | | | | 3,481 | | | | 2,293 | | | | 2,159 | | | | 2,918 | | | | 2,951 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 408 | | | | 487 | | | | 448 | | | | 398 | | | | 658 | | | | 423 | | | | 178 | |
| | — | | | | — | | | | 71 | | | | — | | | | — | | | | — | | | | — | |
| | 530,566 | | | | 98,681 | | | | 173,660 | | | | 65,607 | | | | 94,782 | | | | 194,615 | | | | 118,769 | |
| | — | | | | — | | | | 27,615 | | | | — | | | | — | | | | — | | | | — | |
| | 9,599 | | | | 7,779 | | | | 6,222 | | | | 3,174 | | | | 3,177 | | | | 41,238 | | | | 5,737 | |
| | 17,914 | | | | 14,627 | | | | 23,744 | | | | 14,521 | | | | 14,575 | | | | 15,500 | | | | 15,886 | |
| | 195,077 | | | | 30,634 | | | | 61,946 | | | | 17,740 | | | | 32,424 | | | | 98,401 | | | | 83,419 | |
| | 45,528 | | | | 6,457 | | | | 17,550 | | | | 5,488 | | | | 4,869 | | | | 17,421 | | | | 23,169 | |
| | 12,176 | | | | 20,149 | | | | 10,385 | | | | 12,296 | | | | 18,941 | | | | 19,493 | | | | 12,116 | |
| | 357,140 | | | | 81,025 | | | | 185,575 | | | | 33,826 | | | | 61,668 | | | | 196,574 | | | | 152,780 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 11,747,364 | | | | 1,910,628 | | | | 4,304,778 | | | | 1,636,695 | | | | 1,368,078 | | | | 4,865,498 | | | | 6,063,795 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (13,934 | ) | | | (5,893 | ) | | | (7,183 | ) | | | (3,961 | ) | | | — | | | | (3,492 | ) | | | (13,600 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (13,934 | ) | | | (5,893 | ) | | | (7,183 | ) | | | (3,961 | ) | | | — | | | | (3,492 | ) | | | (13,600 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 11,733,430 | | | | 1,904,735 | | | | 4,297,595 | | | | 1,632,734 | | | | 1,368,078 | | | | 4,862,006 | | | | 6,050,195 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 33,042,462 | | | | 2,055,180 | | | | (71,292 | ) | | | 148,753 | | | | 8,960,362 | | | | 17,280,217 | | | | 1,482,822 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 67,721,788 | | | | 4,117,029 | | | | (34,140,201 | ) | | | 25,055,439 | | | | (7,057,463 | ) | | | (48,089,319 | ) | | | 40,042,105 | |
| | — | | �� | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 186,528 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | (81,766 | ) | | | — | | | | — | |
| | (26,445 | ) | | | 14,805 | | | | (35,110 | ) | | | (4,827 | ) | | | 88,596 | | | | (271,344 | ) | | | 1,193 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
67,695,343 |
| | | 4,131,834 | | | | (34,175,311 | ) | | | 25,050,612 | | | | (6,864,105 | ) | | | (48,360,663 | ) | | | 40,043,298 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 26,094,755 | | | | (10,017,996 | ) | | | 8,176,303 | | | | (55,051,717 | ) | | | 19,673,063 | | | | (8,786,056 | ) | | | 6,259,011 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 185,354 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | (108,701 | ) | | | — | | | | — | |
| | 3,178 | | | | 9,994 | | | | 55,695 | | | | (1,170 | ) | | | 100 | | | | 56,262 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
26,097,933 |
| | | (10,008,002 | ) | | | 8,231,998 | | | | (55,052,887 | ) | | | 19,749,816 | | | | (8,729,794 | ) | | | 6,259,011 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 93,793,276 | | | | (5,876,168 | ) | | | (25,943,313 | ) | | | (30,002,275 | ) | | | 12,885,711 | | | | (57,090,457 | ) | | | 46,302,309 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 126,835,738 | | | $ | (3,820,988 | ) | | $ | (26,014,605 | ) | | $ | (29,853,522 | ) | | $ | 21,846,073 | | | $ | (39,810,240 | ) | | $ | 47,785,131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Six-Month Period Ended June 30, 2016 (Unaudited)
| | | | | | | | | | | | |
| | |
Hartford
MidCap Value
HLS Fund | | | Hartford
Small Cap Growth
HLS Fund | | | Hartford
Small Company
HLS Fund | |
Investment Income: | | | | | | | | | | | | |
Dividends | | $ | 2,879,371 | | | $ | 3,846,100 | | | $ | 2,844,578 | |
Interest | | | 12,190 | | | | 33,042 | | | | 53,082 | |
Less: Foreign tax withheld | | | (48,956 | ) | | | (866 | ) | | | (1,213 | ) |
| | | | | | | | | | | | |
Total investment income, net | | | 2,842,605 | | | | 3,878,276 | | | | 2,896,447 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Investment management fees | | | 1,424,512 | | | | 3,183,406 | | | | 3,789,458 | |
Transfer agent fees | | | | | | | | | | | | |
Class IA | | | 1,938 | | | | 3,248 | | | | 3,128 | |
Class IB | | | 607 | | | | 748 | | | | 292 | |
Distribution fees | | | | | | | | | | | | |
Class IB | | | 106,150 | | | | 244,331 | | | | 114,716 | |
Custodian fees | | | 3,236 | | | | 7,303 | | | | 7,118 | |
Registration and filing fees | | | 14,593 | | | | 34,447 | | | | 15,144 | |
Accounting services fees | | | 17,806 | | | | 62,674 | | | | 64,614 | |
Board of Directors’ fees | | | 5,319 | | | | 13,745 | | | | 15,735 | |
Audit fees | | | 12,248 | | | | 9,173 | | | | 12,308 | |
Other expenses | | | 54,115 | | | | 114,677 | | | | 147,361 | |
| | | | | | | | | | | | |
Total expenses (before waivers and fees paid indirectly) | | | 1,640,524 | | | | 3,673,752 | | | | 4,169,874 | |
Commission recapture | | | (2,835 | ) | | | (8,862 | ) | | | (27,454 | ) |
| | | | | | | | | | | | |
Total waivers and fees paid indirectly | | | (2,835 | ) | | | (8,862 | ) | | | (27,454 | ) |
| | | | | | | | | | | | |
Total expenses, net | | | 1,637,689 | | | | 3,664,890 | | | | 4,142,420 | |
| | | | | | | | | | | | |
Net Investment Income (Loss) | | | 1,204,916 | | | | 213,386 | | | | (1,245,973 | ) |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 16,222,080 | | | | (30,047,478 | ) | | | (116,850,710 | ) |
Less: Foreign taxes paid on realized capital gains | | | — | | | | — | | | | — | |
Net realized gain (loss) on purchased options contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on futures contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on written options contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on swap contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | 17,346 | | | | — | | | | (2,939 | ) |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 16,239,426 | | | | (30,047,478 | ) | | | (116,853,649 | ) |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | (14,922,657 | ) | | | 19,147,335 | | | | 31,531,207 | |
Net unrealized appreciation (depreciation) of purchased options contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of futures contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of written option contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of swap contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 923 | | | | — | | | | (2,268 | ) |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | (14,921,734 | ) | | | 19,147,335 | | | | 31,528,939 | |
| | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | 1,317,692 | | | | (10,900,143 | ) | | | (85,324,710 | ) |
| | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 2,522,608 | | | $ | (10,686,757 | ) | | $ | (86,570,683 | ) |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Six-Month Period Ended June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
Hartford
Small/Mid Cap
Equity HLS Fund | | | Hartford
Stock HLS Fund | | | Hartford
Total Return Bond
HLS Fund | | | Hartford
Ultrashort Bond
HLS Fund | | | Hartford
U.S. Government
Securities
HLS Fund | | | Hartford
Value HLS Fund | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,245,508 | | | $ | 17,077,921 | | | $ | 68,306 | | | $ | — | | | $ | — | | | $ | 7,500,236 | |
| | 1,528 | | | | 48,402 | | | | 50,721,415 | | | | 3,356,314 | | | | 5,912,941 | | | | 13,000 | |
| | (1,251 | ) | | | (191,460 | ) | | | — | | | | — | | | | — | | | | (57,338 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,245,785 | | | | 16,934,863 | | | | 50,789,721 | | | | 3,356,314 | | | | 5,912,941 | | | | 7,455,898 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 351,971 | | | | 3,573,920 | | | | 6,204,984 | | | | 1,352,667 | | | | 1,145,081 | | | | 1,894,130 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 2,070 | | | | 2,399 | | | | 2,714 | | | | 2,369 | | | | 2,136 | | | | 2,457 | |
| | 419 | | | | 266 | | | | 329 | | | | 371 | | | | 473 | | | | 433 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 18,514 | | | | 186,131 | | | | 359,724 | | | | 114,566 | | | | 115,453 | | | | 94,921 | |
| | 1,162 | | | | 5,486 | | | | 32,413 | | | | 2,988 | | | | 3,400 | | | | 2,492 | |
| | 15,283 | | | | 15,342 | | | | 16,724 | | | | 13,613 | | | | 14,045 | | | | 14,721 | |
| | 6,159 | | | | 74,586 | | | | 266,304 | | | | 33,817 | | | | 30,544 | | | | 25,315 | |
| | 1,611 | | | | 20,742 | | | | 37,162 | | | | 9,924 | | | | 7,336 | | | | 7,274 | |
| | 9,221 | | | | 12,140 | | | | 18,941 | | | | 16,335 | | | | 16,567 | | | | 12,176 | |
| | 18,687 | | | | 184,166 | | | | 336,121 | | | | 93,302 | | | | 80,145 | | | | 73,307 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 425,097 | | | | 4,075,178 | | | | 7,275,416 | | | | 1,639,952 | | | | 1,415,180 | | | | 2,127,226 | |
| | — | | | | (1,240 | ) | | | — | | | | — | | | | — | | | | (3,111 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (1,240 | ) | | | — | | | | — | | | | — | | | | (3,111 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 425,097 | | | | 4,073,938 | | | | 7,275,416 | | | | 1,639,952 | | | | 1,415,180 | | | | 2,124,115 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 820,688 | | | | 12,860,925 | | | | 43,514,305 | | | | 1,716,362 | | | | 4,497,761 | | | | 5,331,783 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (1,534,399 | ) | | | 47,453,778 | | | | 6,548,979 | | | | 10,651 | | | | 2,480,044 | | | | 15,044,006 | |
| | — | | | | — | | | | (65,134 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 222,017 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 7,003,860 | | | | — | | | | 1,071,110 | | | | — | |
| | — | | | | — | | | | 3,003,345 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (14,934,265 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (1,995,342 | ) | | | — | | | | — | | | | — | |
| | — | | | | (1,799 | ) | | | 261,958 | | | | — | | | | — | | | | (1,164 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (1,534,399 | ) | | | 47,451,979 | | | | 45,418 | | | | 10,651 | | | | 3,551,154 | | | | 15,042,842 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,263,762 | | | | 20,159,242 | | | | 98,474,260 | | | | 2,177,044 | | | | 8,960,984 | | | | (65,209 | ) |
| | — | | | | — | | | | 12,054 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 8,012,536 | | | | — | | | | 1,228,819 | | | | — | |
| | — | | | | — | | | | 161,003 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (4,829,505 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (3,015,699 | ) | | | — | | | | — | | | | — | |
| | — | | | | 22,616 | | | | 87,006 | | | | — | | | | — | | | | 4,612 | |
| | | | | | | | | | | | | | | | | | | | | | |
|
1,263,762 |
| | | 20,181,858 | | | | 98,901,655 | | | | 2,177,044 | | | | 10,189,803 | | | | (60,597 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (270,637 | ) | | | 67,633,837 | | | | 98,947,073 | | | | 2,187,695 | | | | 13,740,957 | | | | 14,982,245 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 550,051 | | | $ | 80,494,762 | | | $ | 142,461,378 | | | $ | 3,904,057 | | | $ | 18,238,718 | | | $ | 20,314,028 | |
| | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | | | | | | |
| | |
Hartford Balanced HLS Fund | |
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | 26,784,750 | | | $ | 50,414,982 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 46,624,122 | | | | 218,419,541 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 11,083,752 | | | | (261,214,650 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 84,492,624 | | | | 7,619,873 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | — | | | | (43,115,909 | ) |
Class IB | | | — | | | | (4,997,202 | ) |
Class IC | | | — | | | | — | |
| | | | | | | | |
Total from net investment income | | | — | | | | (48,113,111 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | — | | | | — | |
Class IB | | | — | | | | — | |
Class IC | | | — | | | | — | |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | — | |
| | | | | | | | |
Total distributions | | | — | | | | (48,113,111 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 9,399,853 | | | | 16,708,307 | |
Issued on reinvestment of distributions | | | — | | | | 48,113,111 | |
Redeemed | | | (183,552,221 | ) | | | (436,469,018 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | (174,152,368 | ) | | | (371,647,600 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (89,659,744 | ) | | | (412,140,838 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 2,511,883,212 | | | | 2,924,024,050 | |
| | | | | | | | |
End of period | | $ | 2,422,223,468 | | | $ | 2,511,883,212 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 55,562,050 | | | $ | 28,777,300 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Hartford Capital Appreciation HLS Fund | | | Hartford Disciplined Equity
HLS Fund | | | Hartford Dividend and Growth
HLS Fund | | | Hartford Global Growth HLS Fund | |
For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 34,040,111 | | | $ | 55,803,044 | | | $ | 2,455,238 | | | $ | 5,732,568 | | | $ | 33,042,462 | | | $ | 67,717,712 | | | $ | 2,055,180 | | | $ | 2,810,204 | |
| | (139,681,006 | ) | | | 499,190,946 | | | | 36,897,912 | | | | 86,358,959 | | | | 67,695,343 | | | | 382,559,504 | | | | 4,131,834 | | | | 46,843,135 | |
| | 3,120,067 | | | | (466,258,274 | ) | | | (24,335,317 | ) | | | (39,562,393 | ) | | | 26,097,933 | | | | (492,429,493 | ) | | | (10,008,002 | ) | | | (12,495,589 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (102,520,828 | ) | | | 88,735,716 | | | | 15,017,833 | | | | 52,529,134 | | | | 126,835,738 | | | | (42,152,277 | ) | | | (3,820,988 | ) | | | 37,157,750 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (52,995,203 | ) | | | — | | | | (5,191,407 | ) | | | — | | | | (56,949,781 | ) | | | — | | | | (2,064,712 | ) |
| | — | | | | (4,290,700 | ) | | | — | | | | (493,379 | ) | | | — | | | | (7,355,049 | ) | | | — | | | | (265,636 | ) |
| | — | | | | (91,794 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (57,377,697 | ) | | | — | | | | (5,684,786 | ) | | | — | | | | (64,304,830 | ) | | | — | | | | (2,330,348 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (1,143,708,705 | ) | | | — | | | | (208,795,133 | ) | | | — | | | | (446,508,332 | ) | | | — | | | | (17,807,958 | ) |
| | — | | | | (133,658,050 | ) | | | — | | | | (29,781,590 | ) | | | — | | | | (67,944,325 | ) | | | — | | | | (4,152,455 | ) |
| | — | | | | (2,343,239 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (1,279,709,994 | ) | | | — | | | | (238,576,723 | ) | | | — | | | | (514,452,657 | ) | | | — | | | | (21,960,413 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (1,337,087,691 | ) | | | — | | | | (244,261,509 | ) | | | — | | | | (578,757,487 | ) | | | — | | | | (24,290,761 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 45,929,223 | | | | 188,886,238 | | | | 10,312,453 | | | | 13,385,373 | | | | 25,888,132 | | | | 66,003,700 | | | | 7,625,114 | | | | 30,124,439 | |
| | — | | | | 1,337,087,691 | | | | — | | | | 244,261,509 | | | | — | | | | 578,757,487 | | | | — | | | | 24,290,761 | |
| | (531,669,899 | ) | | | (1,157,183,786 | ) | | | (65,430,421 | ) | | | (167,010,558 | ) | | | (316,311,595 | ) | | | (630,845,783 | ) | | | (42,393,518 | ) | | | (69,742,484 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (485,740,676 | ) | | | 368,790,143 | | | | (55,117,968 | ) | | | 90,636,324 | | | | (290,423,463 | ) | | | 13,915,404 | | | | (34,768,404 | ) | | | (15,327,284 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (588,261,504 | ) | | | (879,561,832 | ) | | | (40,100,135 | ) | | | (101,096,051 | ) | | | (163,587,725 | ) | | | (606,994,360 | ) | | | (38,589,392 | ) | | | (2,460,295 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 6,359,031,107 | | | | 7,238,592,939 | | | | 740,590,683 | | | | 841,686,734 | | | | 3,441,503,709 | | | | 4,048,498,069 | | | | 479,060,793 | | | | 481,521,088 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 5,770,769,603 | | | $ | 6,359,031,107 | | | $ | 700,490,548 | | | $ | 740,590,683 | | | $ | 3,277,915,984 | | | $ | 3,441,503,709 | | | $ | 440,471,401 | | | $ | 479,060,793 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 39,692,302 | | | $ | 5,652,191 | | | $ | 3,434,981 | | | $ | 979,743 | | | $ | 38,329,774 | | | $ | 5,287,312 | | | $ | 4,809,211 | | | $ | 2,754,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | |
| | | Hartford Growth Opportunities
HLS Fund | |
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | (71,292 | ) | | $ | 235,777 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | (34,175,311 | ) | | | 195,529,079 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 8,231,998 | | | | (41,501,855 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | (26,014,605 | ) | | | 154,263,001 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | — | | | | (1,563,969 | ) |
Class IB | | | — | | | | — | |
| | | | | | | | |
Total from net investment income | | | — | | | | (1,563,969 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | — | | | | (246,075,850 | ) |
Class IB | | | — | | | | (33,542,514 | ) |
Class IC | | | — | | | | (2,276,630 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | (281,894,994 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (283,458,963 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 138,967,111 | | | | 73,681,828 | |
Issued on reinvestment of distributions | | | — | | | | 283,458,963 | |
Redeemed | | | (111,927,330 | ) | | | (217,081,410 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | 27,039,781 | | | | 140,059,381 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 1,025,176 | | | | 10,863,419 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 1,375,986,798 | | | | 1,365,123,379 | |
| | | | | | | | |
End of period | | $ | 1,377,011,974 | | | $ | 1,375,986,798 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 5,101,348 | | | $ | 5,172,640 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Hartford Healthcare HLS Fund | | | Hartford High Yield HLS Fund | | | Hartford International Opportunities
HLS Fund | | | Hartford MidCap HLS Fund | |
For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 148,753 | | | $ | (189,398 | ) | | $ | 8,960,362 | | | $ | 21,098,919 | | | $ | 17,280,217 | | | $ | 20,581,447 | | | $ | 1,482,822 | | | $ | 1,151,367 | |
| | 25,050,612 | | | | 69,042,842 | | | | (6,864,105 | ) | | | (12,670,641 | ) | | | (48,360,663 | ) | | | 44,603,449 | | | | 40,043,298 | | | | 179,588,938 | |
| | (55,052,887 | ) | | | (21,660,295 | ) | | | 19,749,816 | | | | (22,857,170 | ) | | | (8,729,794 | ) | | | (34,352,453 | ) | | | 6,259,011 | | | | (152,431,577 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (29,853,522 | ) | | | 47,193,149 | | | | 21,846,073 | | | | (14,428,892 | ) | | | (39,810,240 | ) | | | 30,832,443 | | | | 47,785,131 | | | | 28,308,728 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | (18,980,813 | ) | | | — | | | | (17,879,578 | ) | | | — | | | | (1,399,724 | ) |
| | — | | | | — | | | | — | | | | (5,933,685 | ) | | | — | | | | (2,176,492 | ) | | | — | | | | (90,171 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | (24,914,498 | ) | | | — | | | | (20,056,070 | ) | | | — | | | | (1,489,895 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (41,644,271 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (197,172,246 | ) |
| | — | | | | (7,763,435 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (12,701,934 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (49,407,706 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (209,874,180 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (49,407,706 | ) | | | — | | | | (24,914,498 | ) | | | — | | | | (20,056,070 | ) | | | — | | | | (211,364,075 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 29,442,622 | | | | 117,587,462 | | | | 12,700,377 | | | | 26,601,652 | | | | 60,048,074 | | | | 79,856,988 | | | | 58,487,203 | | | | 287,047,471 | |
| | — | | | | 49,407,706 | | | | — | | | | 24,914,498 | | | | — | | | | 20,056,070 | | | | — | | | | 211,364,075 | |
| | (74,528,396 | ) | | | (103,345,971 | ) | | | (35,687,772 | ) | | | (111,075,638 | ) | | | (98,273,686 | ) | | | (221,900,580 | ) | | | (128,899,996 | ) | | | (316,201,121 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (45,085,774 | ) | | | 63,649,197 | | | | (22,987,395 | ) | | | (59,559,488 | ) | | | (38,225,612 | ) | | | (121,987,522 | ) | | | (70,412,793 | ) | | | 182,210,425 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (74,939,296 | ) | | | 61,434,640 | | | | (1,141,322 | ) | | | (98,902,878 | ) | | | (78,035,852 | ) | | | (111,211,149 | ) | | | (22,627,662 | ) | | | (844,922 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 423,427,273 | | | | 361,992,633 | | | | 328,326,110 | | | | 427,228,988 | | | | 1,317,787,938 | | | | 1,428,999,087 | | | | 1,752,110,251 | | | | 1,752,955,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 348,487,977 | | | $ | 423,427,273 | | | $ | 327,184,788 | | | $ | 328,326,110 | | | $ | 1,239,752,086 | | | $ | 1,317,787,938 | | | $ | 1,729,482,589 | | | $ | 1,752,110,251 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11,853,357 | | | $ | 11,704,604 | | | $ | 29,058,915 | | | $ | 20,098,553 | | | $ | 36,281,881 | | | $ | 19,001,664 | | | $ | 2,260,401 | | | $ | 777,579 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | |
| | |
Hartford MidCap Value HLS Fund | |
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | 1,204,916 | | | $ | 1,867,941 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 16,239,426 | | | | 49,312,834 | |
Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | (14,921,734 | ) | | | (53,904,920 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 2,522,608 | | | | (2,724,145 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | — | | | | (1,833,760 | ) |
Class IB | | | — | | | | (310,161 | ) |
| | | | | | | | |
Total from net investment income | | | — | | | | (2,143,921 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | — | | | | (44,253,137 | ) |
Class IB | | | — | | | | (14,602,875 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | (58,856,012 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (60,999,933 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 2,619,607 | | | | 8,423,245 | |
Issued on reinvestment of distributions | | | — | | | | 60,999,933 | |
Redeemed | | | (27,075,704 | ) | | | (78,708,045 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | (24,456,097 | ) | | | (9,284,867 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (21,933,489 | ) | | | (73,008,945 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 382,894,110 | | | | 455,903,055 | |
| | | | | | | | |
End of period | | $ | 360,960,621 | | | $ | 382,894,110 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 2,095,696 | | | $ | 890,780 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Hartford Small Cap Growth HLS Fund | | | Hartford Small Company HLS Fund | | | Hartford Small/Mid Cap Equity
HLS Fund | | | Hartford Stock HLS Fund | |
For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 213,386 | | | $ | 1,700,575 | | | $ | (1,245,973 | ) | | $ | (1,780,496 | ) | | $ | 820,688 | | | $ | 1,511,474 | | | $ | 12,860,925 | | | $ | 29,935,718 | |
| | (30,047,478 | ) | | | 46,029,721 | | | | (116,853,649 | ) | | | 88,028,225 | | | | (1,534,399 | ) | | | 5,335,316 | | | | 47,451,979 | | | | 154,995,290 | |
| | 19,147,335 | | | | (76,627,391 | ) | | | 31,528,939 | | | | (198,111,583 | ) | | | 1,263,762 | | | | (11,517,750 | ) | | | 20,181,858 | | | | (142,060,258 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (10,686,757 | ) | | | (28,897,095 | ) | | | (86,570,683 | ) | | | (111,863,854 | ) | | | 550,051 | | | | (4,670,960 | ) | | | 80,494,762 | | | | 42,870,750 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (562,638 | ) | | | — | | | | — | | | | — | | | | (1,119,387 | ) | | | — | | | | (25,254,549 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | (189,421 | ) | | | — | | | | (2,429,965 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (562,638 | ) | | | — | | | | — | | | | — | | | | (1,308,808 | ) | | | — | | | | (27,684,514 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (74,730,595 | ) | | | — | | | | (235,415,969 | ) | | | — | | | | (14,586,015 | ) | | | — | | | | — | |
| | — | | | | (23,707,028 | ) | | | — | | | | (22,082,672 | ) | | | — | | | | (3,233,544 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (98,437,623 | ) | | | — | | | | (257,498,641 | ) | | | — | | | | (17,819,559 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (99,000,261 | ) | | | — | | | | (257,498,641 | ) | | | — | | | | (19,128,367 | ) | | | — | | | | (27,684,514 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 101,348,594 | | | | 681,534,004 | | | | 65,850,471 | | | | 166,334,124 | | | | 2,626,261 | | | | 4,931,280 | | | | 6,880,677 | | | | 9,402,151 | |
| | — | | | | 99,000,261 | | | | — | | | | 257,498,641 | | | | — | | | | 19,128,367 | | | | — | | | | 27,684,514 | |
| | (113,258,507 | ) | | | (201,704,918 | ) | | | (210,603,335 | ) | | | (241,524,090 | ) | | | (10,818,021 | ) | | | (25,688,609 | ) | | | (107,442,236 | ) | | | (243,328,995 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (11,909,913 | ) | | | 578,829,347 | | | | (144,752,864 | ) | | | 182,308,675 | | | | (8,191,760 | ) | | | (1,628,962 | ) | | | (100,561,559 | ) | | | (206,242,330 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (22,596,670 | ) | | | 450,931,991 | | | | (231,323,547 | ) | | | (187,053,820 | ) | | | (7,641,709 | ) | | | (25,428,289 | ) | | | (20,066,797 | ) | | | (191,056,094 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,123,362,422 | | | | 672,430,431 | | | | 1,216,278,326 | | | | 1,403,332,146 | | | | 95,879,890 | | | | 121,308,179 | | | | 1,543,832,923 | | | | 1,734,889,017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,100,765,752 | | | $ | 1,123,362,422 | | | $ | 984,954,779 | | | $ | 1,216,278,326 | | | $ | 88,238,181 | | | $ | 95,879,890 | | | $ | 1,523,766,126 | | | $ | 1,543,832,923 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,532,043 | | | $ | 1,318,657 | | | $ | (1,245,973 | ) | | $ | — | | | $ | 2,075,261 | | | $ | 1,254,573 | | | $ | 15,426,975 | | | $ | 2,566,050 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | |
| | | Hartford Total Return Bond
HLS Fund | |
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | 43,514,305 | | | $ | 86,322,024 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 45,418 | | | | (4,544,619 | ) |
Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | 98,901,655 | | | | (96,333,497 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 142,461,378 | | | | (14,556,092 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | — | | | | (81,109,076 | ) |
Class IB | | | — | | | | (8,982,691 | ) |
| | | | | | | | |
Total from net investment income | | | — | | | | (90,091,767 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | — | | | | (63,383,205 | ) |
Class IB | | | — | | | | (7,785,123 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | (71,168,328 | ) |
| | | | | | | | |
Total distributions | | | — | | | | (161,260,095 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 28,091,309 | | | | 124,109,254 | |
Issued on reinvestment of distributions | | | — | | | | 161,260,095 | |
Redeemed | | | (269,373,243 | ) | | | (605,905,708 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | (241,281,934 | ) | | | (320,536,359 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (98,820,556 | ) | | | (496,352,546 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 2,743,286,277 | | | | 3,239,638,823 | |
| | | | | | | | |
End of period | | $ | 2,644,465,721 | | | $ | 2,743,286,277 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 110,504,950 | | | $ | 66,990,645 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| Hartford Ultrashort Bond HLS Fund | | | Hartford U.S. Government Securities
HLS Fund | | | Hartford Value HLS Fund | |
For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| | | For the
Six-Month
Period Ended
June 30, 2016
(Unaudited) | | | For the
Year Ended
December 31,
2015
| |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,716,362 | | | $ | 2,291,768 | | | $ | 4,497,761 | | | $ | 7,999,122 | | | $ | 5,331,783 | | | $ | 8,732,298 | |
| | 10,651 | | | | 6,610 | | | | 3,551,154 | | | | 6,709,375 | | | | 15,042,842 | | | | 66,859,209 | |
| | 2,177,044 | | | | (1,395,680 | ) | | | 10,189,803 | | | | (6,286,185 | ) | | | (60,597 | ) | | | (92,712,676 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 3,904,057 | | | | 902,698 | | | | 18,238,718 | | | | 8,422,312 | | | | 20,314,028 | | | | (17,121,169 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (2,080,640 | ) | | | — | | | | (7,889,540 | ) | | | — | | | | (7,270,798 | ) |
| | — | | | | — | | | | — | | | | (1,434,327 | ) | | | — | | | | (1,103,600 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (2,080,640 | ) | | | — | | | | (9,323,867 | ) | | | — | | | | (8,374,398 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (63,898 | ) | | | — | | | | — | | | | — | | | | (15,308,517 | ) |
| | — | | | | (10,342 | ) | | | — | | | | — | | | | — | | | | (2,826,296 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (74,240 | ) | | | — | | | | — | | | | — | | | | (18,134,813 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (2,154,880 | ) | | | — | | | | (9,323,867 | ) | | | — | | | | (26,509,211 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 24,301,747 | | | | 56,291,513 | | | | 37,981,785 | | | | 42,133,789 | | | | 8,889,377 | | | | 42,392,764 | |
| | — | | | | 2,154,880 | | | | — | | | | 9,323,867 | | | | — | | | | 26,509,211 | |
| | (82,846,198 | ) | | | (215,901,855 | ) | | | (56,918,595 | ) | | | (119,610,042 | ) | | | (46,812,203 | ) | | | (111,574,821 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (58,544,451 | ) | | | (157,455,462 | ) | | | (18,936,810 | ) | | | (68,152,386 | ) | | | (37,922,826 | ) | | | (42,672,846 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (54,640,394 | ) | | | (158,707,644 | ) | | | (698,092 | ) | | | (69,053,941 | ) | | | (17,608,798 | ) | | | (86,303,226 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 708,057,590 | | | | 866,765,234 | | | | 502,147,811 | | | | 571,201,752 | | | | 535,765,099 | | | | 622,068,325 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 653,417,196 | | | $ | 708,057,590 | | | $ | 501,449,719 | | | $ | 502,147,811 | | | $ | 518,156,301 | | | $ | 535,765,099 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 4,388,498 | | | $ | 2,672,136 | | | $ | 13,527,209 | | | $ | 9,029,448 | | | $ | 6,113,599 | | | $ | 781,816 | |
| | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Balanced HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 26.62 | | | $ | 0.30 | | | $ | 0.67 | | | $ | 0.97 | | | $ | — | | | $ | — | | | $ | — | | | $ | 27.59 | | | | 3.64 | %(4) | | $ | 2,131,694 | | | | 0.64 | %(5)(6) | | | 0.66 | %(5)(6) | | | 2.25 | %(5) | | | 11 | % |
IB | | | 26.99 | | | | 0.27 | | | | 0.68 | | | | 0.95 | | | | — | | | | — | | | | — | | | | 27.94 | | | | 3.52 | (4) | | | 290,530 | | | | 0.89 | (5)(6) | | | 0.91 | (5)(6) | | | 2.01 | (5) | | | 11 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 27.09 | | | $ | 0.51 | | | $ | (0.46 | ) | | $ | 0.05 | | | $ | (0.52 | ) | | $ | — | | | $ | (0.52 | ) | | $ | 26.62 | | | | 0.18 | % | | $ | 2,210,938 | | | | 0.63 | % | | | 0.65 | % | | | 1.87 | % | | | 18 | % |
IB | | | 27.45 | | | | 0.45 | | | | (0.47 | ) | | | (0.02 | ) | | | (0.44 | ) | | | — | | | | (0.44 | ) | | | 26.99 | | | | (0.07 | ) | | | 300,945 | | | | 0.88 | | | | 0.90 | | | | 1.62 | | | | 18 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 25.11 | | | $ | 0.45 | | | $ | 2.01 | | | $ | 2.46 | | | $ | (0.48 | ) | | $ | — | | | $ | (0.48 | ) | | $ | 27.09 | | | | 9.79 | % | | $ | 2,561,814 | | | | 0.65 | % | | | 0.65 | % | | | 1.73 | % | | | 29 | % |
IB | | | 25.44 | | | | 0.39 | | | | 2.03 | | | | 2.42 | | | | (0.41 | ) | | | — | | | | (0.41 | ) | | | 27.45 | | | | 9.51 | | | | 362,210 | | | | 0.90 | | | | 0.90 | | | | 1.49 | | | | 29 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 21.03 | | | $ | 0.41 | | | $ | 4.04 | | | $ | 4.45 | | | $ | (0.37 | ) | | $ | — | | | $ | (0.37 | ) | | $ | 25.11 | | | | 21.19 | % | | $ | 2,782,698 | | | | 0.65 | % | | | 0.65 | % | | | 1.75 | % | | | 31 | % |
IB | | | 21.30 | | | | 0.35 | | | | 4.10 | | | | 4.45 | | | | (0.31 | ) | | | — | | | | (0.31 | ) | | | 25.44 | | | | 20.88 | | | | 399,681 | | | | 0.90 | | | | 0.90 | | | | 1.50 | | | | 31 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 19.34 | | | $ | 0.47 | | | $ | 1.85 | | | $ | 2.32 | | | $ | (0.63 | ) | | $ | — | | | $ | (0.63 | ) | | $ | 21.03 | | | | 12.02 | % | | $ | 2,754,114 | | | | 0.65 | % | | | 0.65 | % | | | 1.98 | % | | | 28 | % |
IB | | | 19.58 | | | | 0.43 | | | | 1.86 | | | | 2.29 | | | | (0.57 | ) | | | — | | | | (0.57 | ) | | | 21.30 | | | | 11.74 | | | | 406,156 | | | | 0.90 | | | | 0.90 | | | | 1.73 | | | | 28 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 19.32 | | | $ | 0.41 | | | $ | (0.06 | ) | | $ | 0.35 | | | $ | (0.33 | ) | | $ | — | | | $ | (0.33 | ) | | $ | 19.34 | | | | 1.86 | % | | $ | 2,959,019 | | | | 0.64 | % | | | 0.64 | % | | | 1.84 | % | | | 34 | % |
IB | | | 19.55 | | | | 0.36 | | | | (0.05 | ) | | | 0.31 | | | | (0.28 | ) | | | — | | | | (0.28 | ) | | | 19.58 | | | | 1.61 | | | | 455,939 | | | | 0.89 | | | | 0.89 | | | | 1.59 | | | | 34 | |
| | | | | | | |
| Hartford Capital Appreciation HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 44.44 | | | $ | 0.25 | | | $ | (0.85 | ) | | $ | (0.60 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 43.84 | | | | (1.35 | )%(4) | | $ | 5,173,465 | | | | 0.67 | %(5)(6) | | | 0.67 | %(5)(6) | | | 1.20 | %(5) | | | 47 | % |
IB | | | 43.93 | | | | 0.20 | | | | (0.86 | ) | | | (0.66 | ) | | | — | | | | — | | | | — | | | | 43.27 | | | | (1.50 | )(4) | | | 578,246 | | | | 0.92 | (5)(6) | | | 0.92 | (5)(6) | | | 0.95 | (5) | | | 47 | |
IC | | | 44.21 | | | | 0.15 | | | | (0.87 | ) | | | (0.72 | ) | | | — | | | | — | | | | — | | | | 43.49 | | | | (1.63 | )(4) | | | 19,059 | | | | 1.17 | (5)(6) | | | 1.17 | (5)(6) | | | 0.73 | (5) | | | 47 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 54.71 | | | $ | 0.43 | | | $ | 0.38 | | | $ | 0.81 | | | $ | (0.43 | ) | | $ | (10.65 | ) | | $ | (11.08 | ) | | $ | 44.44 | | | | 1.02 | % | | $ | 5,701,269 | | | | 0.67 | % | | | 0.67 | % | | | 0.84 | % | | | 75 | % |
IB | | | 54.20 | | | | 0.30 | | | | 0.39 | | | | 0.69 | | | | (0.31 | ) | | | (10.65 | ) | | | (10.96 | ) | | | 43.93 | | | | 0.79 | | | | 641,548 | | | | 0.92 | | | | 0.92 | | | | 0.59 | | | | 75 | |
IC | | | 54.59 | | | | 0.17 | | | | 0.39 | | | | 0.56 | | | | (0.29 | ) | | | (10.65 | ) | | | (10.94 | ) | | | 44.21 | | | | 0.53 | | | | 16,215 | | | | 1.17 | | | | 1.17 | | | | 0.34 | | | | 75 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 59.65 | | | $ | 0.56 | | | $ | 3.81 | | | $ | 4.37 | | | $ | (0.50 | ) | | $ | (8.81 | ) | | $ | (9.31 | ) | | $ | 54.71 | | | | 7.31 | % | | $ | 6,470,599 | | | | 0.66 | % | | | 0.66 | % | | | 0.96 | % | | | 89 | % |
IB | | | 59.18 | | | | 0.42 | | | | 3.77 | | | | 4.19 | | | | (0.36 | ) | | | (8.81 | ) | | | (9.17 | ) | | | 54.20 | | | | 7.04 | | | | 764,541 | | | | 0.91 | | | | 0.91 | | | | 0.72 | | | | 89 | |
IC(8) | | | 60.21 | | | | 0.09 | | | | 3.53 | | | | 3.62 | | | | (0.43 | ) | | | (8.81 | ) | | | (9.24 | ) | | | 54.59 | | | | 5.97 | (4) | | | 3,453 | | | | 1.16 | (5) | | | 1.16 | (5) | | | 0.23 | (5) | | | 89 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 43.37 | | | $ | 0.45 | | | $ | 16.49 | | | $ | 16.94 | | | $ | (0.51 | ) | | $ | (0.15 | ) | | $ | (0.66 | ) | | $ | 59.65 | | | | 39.08 | % | | $ | 7,029,201 | | | | 0.67 | % | | | 0.67 | % | | | 0.88 | % | | | 86 | % |
IB | | | 43.05 | | | | 0.32 | | | | 16.33 | | | | 16.65 | | | | (0.37 | ) | | | (0.15 | ) | | | (0.52 | ) | | | 59.18 | | | | 38.72 | | | | 969,611 | | | | 0.92 | | | | 0.92 | | | | 0.63 | | | | 86 | |
| | | | | | |
For the Year Ended December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 37.20 | | | $ | 0.57 | | | $ | 6.24 | | | $ | 6.81 | | | $ | (0.64 | ) | | $ | — | | | $ | (0.64 | ) | | $ | 43.37 | | | | 18.34 | % | | $ | 7,750,924 | | | | 0.67 | % | | | 0.67 | % | | | 1.24 | % | | | 142 | % |
IB | | | 36.90 | | | | 0.52 | | | | 6.14 | | | | 6.66 | | | | (0.51 | ) | | | — | | | | (0.51 | ) | | | 43.05 | | | | 18.04 | | | | 874,386 | | | | 0.92 | | | | 0.92 | | | | 0.99 | | | | 142 | |
| | | | | | |
For the Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 42.36 | | | $ | 0.37 | | | $ | (5.20 | ) | | $ | (4.83 | ) | | $ | (0.33 | ) | | $ | — | | | $ | (0.33 | ) | | $ | 37.20 | | | | (11.41 | )% | | $ | 8,169,178 | | | | 0.67 | % | | | 0.67 | % | | | 0.95 | % | | | 113 | % |
IB | | | 42.00 | | | | 0.32 | | | | (5.20 | ) | | | (4.88 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) | | | 36.90 | | | | (11.62 | ) | | | 1,102,054 | | | | 0.92 | | | | 0.92 | | | | 0.71 | | | | 113 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Disciplined Equity HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.58 | | | $ | 0.06 | | | $ | 0.31 | | | $ | 0.37 | | | $ | — | | | $ | — | | | $ | — | | | $ | 15.95 | | | | 2.37 | %(4) | | $ | 613,698 | | | | 0.78 | %(5)(6) | | | 0.78 | %(5)(6) | | | 0.74 | %(5) | | | 11 | % |
IB | | | 15.46 | | | | 0.04 | | | | 0.31 | | | | 0.35 | | | | — | | | | — | | | | — | | | | 15.81 | | | | 2.26 | (4) | | | 86,793 | | | | 1.03 | (5)(6) | | | 1.03 | (5)(6) | | | 0.49 | (5) | | | 11 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 20.99 | | | $ | 0.14 | | | $ | 1.41 | | | $ | 1.55 | | | $ | (0.13 | ) | | $ | (6.83 | ) | | $ | (6.96 | ) | | $ | 15.58 | | | | 6.83 | % | | $ | 648,747 | | | | 0.76 | % | | | 0.76 | % | | | 0.76 | % | | | 29 | % |
IB | | | 20.88 | | | | 0.10 | | | | 1.40 | | | | 1.50 | | | | (0.09 | ) | | | (6.83 | ) | | | (6.92 | ) | | | 15.46 | | | | 6.59 | | | | 91,844 | | | | 1.01 | | | | 1.01 | | | | 0.51 | | | | 29 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 18.36 | | | $ | 0.14 | | | $ | 2.83 | | | $ | 2.97 | | | $ | (0.14 | ) | | $ | (0.20 | ) | | $ | (0.34 | ) | | $ | 20.99 | | | | 16.18 | % | | $ | 734,110 | | | | 0.75 | % | | | 0.75 | % | | | 0.73 | % | | | 63 | % |
IB | | | 18.27 | | | | 0.09 | | | | 2.81 | | | | 2.90 | | | | (0.09 | ) | | | (0.20 | ) | | | (0.29 | ) | | | 20.88 | | | | 15.87 | | | | 107,577 | | | | 1.00 | | | | 1.00 | | | | 0.47 | | | | 63 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 13.64 | | | $ | 0.17 | | | $ | 4.72 | | | $ | 4.89 | | | $ | (0.17 | ) | | $ | — | | | $ | (0.17 | ) | | $ | 18.36 | | | | 35.82 | % | | $ | 811,099 | | | | 0.76 | % | | | 0.76 | % | | | 1.07 | % | | | 23 | % |
IB | | | 13.58 | | | | 0.13 | | | | 4.68 | | | | 4.81 | | | | (0.12 | ) | | | — | | | | (0.12 | ) | | | 18.27 | | | | 35.47 | | | | 118,598 | | | | 1.01 | | | | 1.01 | | | | 0.82 | | | | 23 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.78 | | | $ | 0.22 | | | $ | 1.86 | | | $ | 2.08 | | | $ | (0.22 | ) | | $ | — | | | $ | (0.22 | ) | | $ | 13.64 | | | | 17.62 | % | | $ | 798,148 | | | | 0.75 | % | | | 0.75 | % | | | 1.45 | % | | | 34 | % |
IB | | | 11.73 | | | | 0.18 | | | | 1.85 | | | | 2.03 | | | | (0.18 | ) | | | — | | | | (0.18 | ) | | | 13.58 | | | | 17.33 | | | | 116,113 | | | | 1.00 | | | | 1.00 | | | | 1.20 | | | | 34 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.79 | | | $ | 0.14 | | | $ | (0.01 | ) | | $ | 0.13 | | | $ | (0.14 | ) | | $ | — | | | $ | (0.14 | ) | | $ | 11.78 | | | | 1.15 | % | | $ | 852,312 | | | | 0.74 | % | | | 0.74 | % | | | 1.06 | % | | | 44 | % |
IB | | | 11.73 | | | | 0.11 | | | | — | | | | 0.11 | | | | (0.11 | ) | | | — | | | | (0.11 | ) | | | 11.73 | | | | 0.90 | | | | 129,416 | | | | 0.99 | | | | 0.99 | | | | 0.81 | | | | 44 | |
| | | | | | | |
| Hartford Dividend and Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 22.09 | | | $ | 0.23 | | | $ | 0.67 | | | $ | 0.90 | | | $ | — | | | $ | — | | | $ | — | | | $ | 22.99 | | | | 4.07 | %(4) | | $ | 2,848,915 | | | | 0.68 | %(5)(6) | | | 0.68 | %(5)(6) | | | 2.07 | %(5) | | | 10 | % |
IB | | | 22.02 | | | | 0.20 | | | | 0.67 | | | | 0.87 | | | | — | | | | — | | | | — | | | | 22.89 | | | | 3.95 | (4) | | | 429,001 | | | | 0.93 | (5)(6) | | | 0.93 | (5)(6) | | | 1.81 | (5) | | | 10 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 26.45 | | | $ | 0.46 | | | $ | (0.70 | ) | | $ | (0.24 | ) | | $ | (0.43 | ) | | $ | (3.69 | ) | | $ | (4.12 | ) | | $ | 22.09 | | | | (1.16 | )% | | $ | 2,991,811 | | | | 0.67 | % | | | 0.67 | % | | | 1.84 | % | | | 20 | % |
IB | | | 26.38 | | | | 0.40 | | | | (0.70 | ) | | | (0.30 | ) | | | (0.37 | ) | | | (3.69 | ) | | | (4.06 | ) | | | 22.02 | | | | (1.41 | ) | | | 449,693 | | | | 0.92 | | | | 0.92 | | | | 1.59 | | | | 20 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 27.05 | | | $ | 0.49 | | | $ | 2.92 | | | $ | 3.41 | | | $ | (0.49 | ) | | $ | (3.52 | ) | | $ | (4.01 | ) | | $ | 26.45 | | | | 12.96 | % | | $ | 3,502,492 | | | | 0.67 | % | | | 0.67 | % | | | 1.78 | % | | | 19 | % |
IB | | | 26.99 | | | | 0.42 | | | | 2.91 | | | | 3.33 | | | | (0.42 | ) | | | (3.52 | ) | | | (3.94 | ) | | | 26.38 | | | | 12.68 | | | | 546,006 | | | | 0.92 | | | | 0.92 | | | | 1.53 | | | | 19 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 21.46 | | | $ | 0.46 | | | $ | 6.33 | | | $ | 6.79 | | | $ | (0.51 | ) | | $ | (0.69 | ) | | $ | (1.20 | ) | | $ | 27.05 | | | | 31.92 | % | | $ | 3,760,183 | | | | 0.67 | % | | | 0.67 | % | | | 1.88 | % | | | 25 | % |
IB | | | 21.42 | | | | 0.40 | | | | 6.31 | | | | 6.71 | | | | (0.45 | ) | | | (0.69 | ) | | | (1.14 | ) | | | 26.99 | | | | 31.58 | | | | 621,751 | | | | 0.92 | | | | 0.92 | | | | 1.62 | | | | 25 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 19.34 | | | $ | 0.49 | | | $ | 2.13 | | | $ | 2.62 | | | $ | (0.50 | ) | | $ | — | | | $ | (0.50 | ) | | $ | 21.46 | | | | 13.59 | % | | $ | 3,658,076 | | | | 0.67 | % | | | 0.67 | % | | | 2.13 | % | | | 20 | % |
IB | | | 19.30 | | | | 0.45 | | | | 2.11 | | | | 2.56 | | | | (0.44 | ) | | | — | | | | (0.44 | ) | | | 21.42 | | | | 13.31 | | | | 589,194 | | | | 0.92 | | | | 0.92 | | | | 1.88 | | | | 20 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 19.50 | | | $ | 0.42 | | | $ | (0.16 | ) | | $ | 0.26 | | | $ | (0.42 | ) | | $ | — | | | $ | (0.42 | ) | | $ | 19.34 | | | | 1.32 | % | | $ | 3,851,657 | | | | 0.67 | % | | | 0.67 | % | | | 1.98 | % | | | 24 | % |
IB | | | 19.46 | | | | 0.36 | | | | (0.16 | ) | | | 0.20 | | | | (0.36 | ) | | | — | | | | (0.36 | ) | | | 19.30 | | | | 1.06 | | | | 658,419 | | | | 0.92 | | | | 0.92 | | | | 1.73 | | | | 24 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Global Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 24.39 | | | $ | 0.11 | | | $ | (0.23 | ) | | $ | (0.12 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 24.27 | | | | (0.49 | )%(4) | | $ | 361,688 | | | | 0.82 | %(5)(6) | | | 0.82 | %(5)(6) | | | 0.98 | %(5) | | | 29 | % |
IB | | | 24.19 | | | | 0.08 | | | | (0.23 | ) | | | (0.15 | ) | | | — | | | | — | | | | — | | | | 24.04 | | | | (0.62 | )(4) | | | 78,783 | | | | 1.07 | (5)(6) | | | 1.07 | (5)(6) | | | 0.73 | (5) | | | 29 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 23.74 | | | $ | 0.15 | | | $ | 1.77 | | | $ | 1.92 | | | $ | (0.13 | ) | | $ | (1.14 | ) | | $ | (1.27 | ) | | $ | 24.39 | | | | 8.04 | % | | $ | 392,302 | | | | 0.81 | % | | | 0.81 | % | | | 0.62 | % | | | 67 | % |
IB | | | 23.56 | | | | 0.09 | | | | 1.75 | | | | 1.84 | | | | (0.07 | ) | | | (1.14 | ) | | | (1.21 | ) | | | 24.19 | | | | 7.76 | | | | 86,759 | | | | 1.06 | | | | 1.06 | | | | 0.38 | | | | 67 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 22.33 | | | $ | 0.13 | | | $ | 1.39 | | | $ | 1.52 | | | $ | (0.11 | ) | | $ | — | | | $ | (0.11 | ) | | $ | 23.74 | | | | 6.79 | % | | $ | 388,542 | | | | 0.81 | % | | | 0.81 | % | | | 0.57 | % | | | 82 | %(9) |
IB | | | 22.16 | | | | 0.07 | | | | 1.39 | | | | 1.46 | | | | (0.06 | ) | | | — | | | | (0.06 | ) | | | 23.56 | | | | 6.58 | | | | 92,979 | | | | 1.06 | | | | 1.06 | | | | 0.30 | | | | 82 | (9) |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 16.50 | | | $ | 0.11 | | | $ | 5.86 | | | $ | 5.97 | | | $ | (0.14 | ) | | $ | — | | | $ | (0.14 | ) | | $ | 22.33 | | | | 36.30 | % | | $ | 360,086 | | | | 0.82 | % | | | 0.82 | % | | | 0.56 | % | | | 71 | % |
IB | | | 16.38 | | | | 0.06 | | | | 5.81 | | | | 5.87 | | | | (0.09 | ) | | | — | | | | (0.09 | ) | | | 22.16 | | | | 35.90 | | | | 79,823 | | | | 1.07 | | | | 1.07 | | | | 0.32 | | | | 71 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 13.45 | | | $ | 0.14 | | | $ | 3.00 | | | $ | 3.14 | | | $ | (0.09 | ) | | $ | — | | | $ | (0.09 | ) | | $ | 16.50 | | | | 23.41 | % | | $ | 321,371 | | | | 0.82 | % | | | 0.82 | % | | | 0.73 | % | | | 108 | % |
IB | | | 13.34 | | | | 0.09 | | | | 2.99 | | | | 3.08 | | | | (0.04 | ) | | | — | | | | (0.04 | ) | | | 16.38 | | | | 23.10 | | | | 77,224 | | | | 1.07 | | | | 1.07 | | | | 0.47 | | | | 108 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.62 | | | $ | 0.08 | | | $ | (2.24 | ) | | $ | (2.16 | ) | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) | | $ | 13.45 | | | | (13.89 | )% | | $ | 352,947 | | | | 0.80 | % | | | 0.80 | % | | | 0.46 | % | | | 57 | % |
IB | | | 15.53 | | | | 0.04 | | | | (2.23 | ) | | | (2.19 | ) | | | — | | | | — | | | | — | | | | 13.34 | | | | (14.10 | ) | | | 82,204 | | | | 1.05 | | | | 1.05 | | | | 0.22 | | | | 57 | |
| | | | | | | |
| Hartford Growth Opportunities HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 34.86 | | | $ | — | | | $ | (0.60 | ) | | $ | (0.60 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 34.26 | | | | (1.72 | )%(4) | | $ | 1,210,939 | | | | 0.65 | %(5)(6) | | | 0.65 | %(5)(6) | | | 0.03 | %(5) | | | 66 | % |
IB | | | 33.76 | | | | (0.04 | ) | | | (0.59 | ) | | | (0.63 | ) | | | — | | | | — | | | | — | | | | 33.13 | | | | (1.87 | )(4) | | | 141,167 | | | | 0.90 | (5)(6) | | | 0.90 | (5)(6) | | | (0.23 | )(5) | | | 66 | |
IC | | | 34.57 | | | | (0.07 | ) | | | (0.61 | ) | | | (0.68 | ) | | | — | | | | — | | | | — | | | | 33.89 | | | | (2.00 | )(4) | | | 24,905 | | | | 1.15 | (5)(6) | | | 1.15 | (5)(6) | | | (0.47 | )(5) | | | 66 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 38.88 | | | $ | 0.02 | | | $ | 4.66 | | | $ | 4.68 | | | $ | (0.05 | ) | | $ | (8.65 | ) | | $ | (8.70 | ) | | $ | 34.86 | | | | 11.74 | % | | $ | 1,197,187 | | | | 0.65 | % | | | 0.65 | % | | | 0.05 | % | | | 109 | % |
IB | | | 37.93 | | | | (0.08 | ) | | | 4.56 | | | | 4.48 | | | | — | | | | (8.65 | ) | | | (8.65 | ) | | | 33.76 | | | | 11.47 | | | | 158,304 | | | | 0.90 | | | | 0.90 | | | | (0.20 | ) | | | 109 | |
IC | | | 38.75 | | | | (0.18 | ) | | | 4.65 | | | | 4.47 | | | | — | | | | (8.65 | ) | | | (8.65 | ) | | | 34.57 | | | | 11.18 | | | | 20,495 | | | | 1.16 | | | | 1.16 | | | | (0.48 | ) | | | 109 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 40.58 | | | $ | 0.06 | | | $ | 5.31 | | | $ | 5.37 | | | $ | (0.07 | ) | | $ | (7.00 | ) | | $ | (7.07 | ) | | $ | 38.88 | | | | 14.14 | % | | $ | 1,203,366 | | | | 0.64 | % | | | 0.64 | % | | | 0.16 | % | | | 145 | %(10) |
IB | | | 39.79 | | | | (0.04 | ) | | | 5.18 | | | | 5.14 | | | | — | | | | (7.00 | ) | | | (7.00 | ) | | | 37.93 | | | | 13.82 | | | | 160,040 | | | | 0.89 | | | | 0.89 | | | | (0.11 | ) | | | 145 | (10) |
IC(8) | | | 40.23 | | | | (0.10 | ) | | | 5.69 | | | | 5.59 | | | | (0.07 | ) | | | (7.00 | ) | | | (7.07 | ) | | | 38.75 | | | | 14.79 | (4) | | | 1,717 | | | | 1.14 | (5) | | | 1.14 | (5) | | | (0.37 | )(5) | | | 145 | (10) |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 29.90 | | | $ | 0.07 | | | $ | 10.61 | | | $ | 10.68 | | | $ | — | | | $ | — | | | $ | — | | | $ | 40.58 | | | | 35.74 | % | | $ | 1,097,380 | | | | 0.65 | % | | | 0.65 | % | | | 0.21 | % | | | 119 | % |
IB | | | 29.38 | | | | (0.01 | ) | | | 10.42 | | | | 10.41 | | | | — | | | | — | | | | — | | | | 39.79 | | | | 35.42 | | | | 111,230 | | | | 0.90 | | | | 0.90 | | | | (0.04 | ) | | | 119 | |
| | | | | | |
For the Year Ended December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 23.57 | | | $ | 0.03 | | | $ | 6.30 | | | $ | 6.33 | | | $ | — | | | $ | — | | | $ | — | | | $ | 29.90 | | | | 26.86 | % | | $ | 951,372 | | | | 0.65 | % | | | 0.65 | % | | | 0.11 | % | | | 105 | % |
IB | | | 23.22 | | | | (0.05 | ) | | | 6.21 | | | | 6.16 | | | | — | | | | — | | | | — | | | | 29.38 | | | | 26.54 | | | | 108,506 | | | | 0.90 | | | | 0.90 | | | | (0.15 | ) | | | 105 | |
| | | | | | |
For the Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 25.86 | | | $ | 0.01 | | | $ | (2.30 | ) | | $ | (2.29 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 23.57 | | | | (8.87 | )% | | $ | 881,352 | | | | 0.66 | % | | | 0.66 | % | | | 0.03 | % | | | 113 | % |
IB | | | 25.54 | | | | (0.06 | ) | | | (2.26 | ) | | | (2.32 | ) | | | — | | | | — | | | | — | | | | 23.22 | | | | (9.10 | ) | | | 108,905 | | | | 0.91 | | | | 0.91 | | | | (0.22 | ) | | | 113 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Healthcare HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 30.32 | | | $ | 0.02 | | | $ | (1.97 | ) | | $ | (1.95 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 28.37 | | | | (6.43 | )%(4) | | $ | 296,790 | | | | 0.88 | %(5)(6) | | | 0.88 | %(5)(6) | | | 0.12 | %(5) | | | 18 | % |
IB | | | 29.36 | | | | (0.02 | ) | | | (1.91 | ) | | | (1.93 | ) | | | — | | | | — | | | | — | | | | 27.43 | | | | (6.57 | )(4) | | | 51,698 | | | | 1.13 | (5)(6) | | | 1.13 | (5)(6) | | | (0.13 | )(5) | | | 18 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 30.02 | | | $ | — | | | $ | 4.08 | | | $ | 4.08 | | | $ | — | | | $ | (3.78 | ) | | $ | (3.78 | ) | | $ | 30.32 | | | | 13.21 | % | | $ | 360,783 | | | | 0.86 | % | | | 0.86 | % | | | (0.01 | )% | | | 38 | % |
IB | | | 29.23 | | | | (0.08 | ) | | | 3.99 | | | | 3.91 | | | | — | | | | (3.78 | ) | | | (3.78 | ) | | | 29.36 | | | | 12.98 | | | | 62,644 | | | | 1.11 | | | | 1.11 | | | | (0.26 | ) | | | 38 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 25.67 | | | $ | 0.01 | | | $ | 6.75 | | | $ | 6.76 | | | $ | (0.07 | ) | | $ | (2.34 | ) | | $ | (2.41 | ) | | $ | 30.02 | | | | 27.39 | % | | $ | 301,580 | | | | 0.88 | % | | | 0.88 | % | | | 0.03 | % | | | 33 | % |
IB | | | 25.07 | | | | (0.06 | ) | | | 6.57 | | | | 6.51 | | | | (0.01 | ) | | | (2.34 | ) | | | (2.35 | ) | | | 29.23 | | | | 27.00 | | | | 60,413 | | | | 1.13 | | | | 1.13 | | | | (0.22 | ) | | | 33 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 18.11 | | | $ | 0.04 | | | $ | 9.12 | | | $ | 9.16 | | | $ | (0.12 | ) | | $ | (1.48 | ) | | $ | (1.60 | ) | | $ | 25.67 | | | | 51.84 | % | | $ | 243,719 | | | | 0.89 | % | | | 0.89 | % | | | 0.19 | % | | | 33 | % |
IB | | | 17.71 | | | | (0.01 | ) | | | 8.92 | | | | 8.91 | | | | (0.07 | ) | | | (1.48 | ) | | | (1.55 | ) | | | 25.07 | | | | 51.50 | | | | 57,187 | | | | 1.14 | | | | 1.14 | | | | (0.06 | ) | | | 33 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.07 | | | $ | 0.13 | | | $ | 2.98 | | | $ | 3.11 | | | $ | (0.07 | ) | | $ | — | | | $ | (0.07 | ) | | $ | 18.11 | | | | 20.62 | % | | $ | 149,801 | | | | 0.91 | % | | | 0.91 | % | | | 0.69 | % | | | 46 | % |
IB | | | 14.74 | | | | 0.09 | | | | 2.90 | | | | 2.99 | | | | (0.02 | ) | | | — | | | | (0.02 | ) | | | 17.71 | | | | 20.32 | | | | 45,306 | | | | 1.16 | | | | 1.16 | | | | 0.43 | | | | 46 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 13.89 | | | $ | 0.06 | | | $ | 1.13 | | | $ | 1.19 | | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) | | $ | 15.07 | | | | 8.54 | % | | $ | 137,088 | | | | 0.91 | % | | | 0.91 | % | | | 0.33 | % | | | 45 | % |
IB | | | 13.61 | | | | 0.02 | | | | 1.11 | | | | 1.13 | | | | — | | | | — | | | | — | | | | 14.74 | | | | 8.27 | | | | 48,933 | | | | 1.16 | | | | 1.16 | | | | 0.08 | | | | 45 | |
| | | | | | | |
| Hartford High Yield HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 7.55 | | | $ | 0.22 | | | $ | 0.31 | | | $ | 0.53 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8.08 | | | | 7.02 | %(4) | | $ | 251,228 | | | | 0.78 | %(5)(6) | | | 0.78 | %(5)(6) | | | 5.59 | %(5) | | | 24 | % |
IB | | | 7.43 | | | | 0.20 | | | | 0.31 | | | | 0.51 | | | | — | | | | — | | | | — | | | | 7.94 | | | | 6.86 | (4) | | | 75,957 | | | | 1.03 | (5)(6) | | | 1.03 | (5)(6) | | | 5.33 | (5) | | | 24 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 8.45 | | | $ | 0.45 | | | $ | (0.79 | ) | | $ | (0.34 | ) | | $ | (0.56 | ) | | $ | — | | | $ | (0.56 | ) | | $ | 7.55 | | | | (4.30 | )% | | $ | 251,313 | | | | 0.76 | % | | | 0.76 | % | | | 5.40 | % | | | 34 | % |
IB | | | 8.32 | | | | 0.42 | | | | (0.77 | ) | | | (0.35 | ) | | | (0.54 | ) | | | — | | | | (0.54 | ) | | | 7.43 | | | | (4.56 | ) | | | 77,013 | | | | 1.01 | | | | 1.01 | | | | 5.15 | | | | 34 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 8.90 | | | $ | 0.47 | | | $ | (0.22 | ) | | $ | 0.25 | | | $ | (0.70 | ) | | $ | — | | | $ | (0.70 | ) | | $ | 8.45 | | | | 2.58 | % | | $ | 321,650 | | | | 0.75 | % | | | 0.75 | % | | | 5.28 | % | | | 39 | % |
IB | | | 8.77 | | | | 0.44 | | | | (0.22 | ) | | | 0.22 | | | | (0.67 | ) | | | — | | | | (0.67 | ) | | | 8.32 | | | | 2.31 | | | | 105,579 | | | | 1.00 | | | | 1.00 | | | | 5.02 | | | | 39 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.09 | | | $ | 0.54 | | | $ | 0.01 | | | $ | 0.55 | | | $ | (0.74 | ) | | $ | — | | | $ | (0.74 | ) | | $ | 8.90 | | | | 6.43 | % | | $ | 389,340 | | | | 0.75 | % | | | 0.75 | % | | | 5.90 | % | | | 46 | % |
IB | | | 8.96 | | | | 0.50 | | | | 0.03 | | | | 0.53 | | | | (0.72 | ) | | | — | | | | (0.72 | ) | | | 8.77 | | | | 6.17 | | | | 125,701 | | | | 1.00 | | | | 1.00 | | | | 5.64 | | | | 46 | |
| | | | | | |
For the Year Ended December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 8.70 | | | $ | 0.58 | | | $ | 0.63 | | | $ | 1.21 | | | $ | (0.82 | ) | | $ | — | | | $ | (0.82 | ) | | $ | 9.09 | | | | 14.31 | % | | $ | 504,042 | | | | 0.75 | % | | | 0.75 | % | | | 6.37 | % | | | 94 | % |
IB | | | 8.59 | | | | 0.55 | | | | 0.62 | | | | 1.17 | | | | (0.80 | ) | | | — | | | | (0.80 | ) | | | 8.96 | | | | 14.03 | | | | 149,050 | | | | 1.00 | | | | 1.00 | | | | 6.12 | | | | 94 | |
| | | | | | |
For the Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.15 | | | $ | 0.71 | | | $ | (0.31 | ) | | $ | 0.40 | | | $ | (0.85 | ) | | $ | — | | | $ | (0.85 | ) | | $ | 8.70 | | | | 4.69 | % | | $ | 548,608 | | | | 0.74 | % | | | 0.74 | % | | | 7.68 | % | | | 88 | % |
IB | | | 9.04 | | | | 0.67 | | | | (0.30 | ) | | | 0.37 | | | | (0.82 | ) | | | — | | | | (0.82 | ) | | | 8.59 | | | | 4.44 | | | | 160,060 | | | | 0.99 | | | | 0.99 | | | | 7.43 | | | | 88 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford International Opportunities HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 14.19 | | | $ | 0.19 | | | $ | (0.60 | ) | | $ | (0.41 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 13.78 | | | | (2.89 | )%(4) | | $ | 1,086,821 | | | | 0.75 | %(5)(6) | | | 0.75 | %(5)(6) | | | 2.85 | %(5) | | | 47 | % |
IB | | | 14.36 | | | | 0.17 | | | | (0.61 | ) | | | (0.44 | ) | | | — | | | | — | | | | — | | | | 13.92 | | | | (3.06 | )(4) | | | 152,931 | | | | 1.00 | (5)(6) | | | 1.00 | (5)(6) | | | 2.56 | (5) | | | 47 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 14.13 | | | $ | 0.22 | | | $ | 0.06 | | | $ | 0.28 | | | $ | (0.22 | ) | | $ | — | | | $ | (0.22 | ) | | $ | 14.19 | | | | 1.88 | % | | $ | 1,146,250 | | | | 0.74 | % | | | 0.74 | % | | | 1.47 | % | | | 68 | % |
IB | | | 14.29 | | | | 0.18 | | | | 0.06 | | | | 0.24 | | | | (0.17 | ) | | | — | | | | (0.17 | ) | | | 14.36 | | | | 1.65 | | | | 171,538 | | | | 0.99 | | | | 0.99 | | | | 1.21 | | | | 68 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.03 | | | $ | 0.19 | | | $ | (0.75 | ) | | $ | (0.56 | ) | | $ | (0.34 | ) | | $ | — | | | $ | (0.34 | ) | | $ | 14.13 | | | | (3.87 | )% | | $ | 1,239,946 | | | | 0.73 | % | | | 0.73 | % | | | 1.30 | % | | | 90 | % |
IB | | | 15.20 | | | | 0.15 | | | | (0.76 | ) | | | (0.61 | ) | | | (0.30 | ) | | | — | | | | (0.30 | ) | | | 14.29 | | | | (4.14 | ) | | | 189,053 | | | | 0.98 | | | | 0.98 | | | | 1.02 | | | | 90 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 12.63 | | | $ | 0.24 | | | $ | 2.45 | | | $ | 2.69 | | | $ | (0.29 | ) | | $ | — | | | $ | (0.29 | ) | | $ | 15.03 | | | | 21.55 | % | | $ | 1,454,018 | | | | 0.74 | % | | | 0.74 | % | | | 1.76 | % | | | 100 | % |
IB | | | 12.76 | | | | 0.21 | | | | 2.49 | | | | 2.70 | | | | (0.26 | ) | | | — | | | | (0.26 | ) | | | 15.20 | | | | 21.28 | | | | 215,447 | | | | 0.99 | | | | 0.99 | | | | 1.55 | | | | 100 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.72 | | | $ | 0.26 | | | $ | 1.88 | | | $ | 2.14 | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 12.63 | | | | 20.20 | % | | $ | 1,303,209 | | | | 0.74 | % | | | 0.74 | % | | | 1.88 | % | | | 95 | % |
IB | | | 10.82 | | | | 0.25 | | | | 1.88 | | | | 2.13 | | | | (0.19 | ) | | | — | | | | (0.19 | ) | | | 12.76 | | | | 19.89 | | | | 220,699 | | | | 0.99 | | | | 0.99 | | | | 1.64 | | | | 95 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 12.46 | | | $ | 0.21 | | | $ | (1.94 | ) | | $ | (1.73 | ) | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) | | $ | 10.72 | | | | (13.97 | )% | | $ | 1,287,917 | | | | 0.73 | % | | | 0.73 | % | | | 1.66 | % | | | 111 | % |
IB | | | 12.61 | | | | 0.19 | | | | (1.97 | ) | | | (1.78 | ) | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | 10.82 | | | | (14.19 | ) | | | 232,707 | | | | 0.98 | | | | 0.98 | | | | 1.41 | | | | 111 | |
| | | | | | |
| Hartford MidCap HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 33.66 | | | $ | 0.03 | | | $ | 0.96 | | | $ | 0.99 | | | $ | — | | | $ | — | | | $ | — | | | $ | 34.65 | | | | 2.94 | %(4) | | $ | 1,633,918 | | | | 0.70 | %(5)(6) | | | 0.70 | %(5)(6) | | | 0.19 | %(5) | | | 12 | % |
IB | | | 33.11 | | | | (0.01 | ) | | | 0.94 | | | | 0.93 | | | | — | | | | — | | | | — | | | | 34.04 | | | | 2.81 | (4) | | | 95,565 | | | | 0.95 | (5)(6) | | | 0.95 | (5)(6) | | | (0.06 | )(5) | | | 12 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 37.28 | | | $ | 0.03 | | | $ | 0.83 | | | $ | 0.86 | | | $ | (0.03 | ) | | $ | (4.45 | ) | | $ | (4.48 | ) | | $ | 33.66 | | | | 1.60 | % | | $ | 1,647,715 | | | | 0.70 | % | | | 0.70 | % | | | 0.08 | % | | | 38 | % |
IB | | | 36.83 | | | | (0.06 | ) | | | 0.82 | | | | 0.76 | | | | (0.03 | ) | | | (4.45 | ) | | | (4.48 | ) | | | 33.11 | | | | 1.34 | | | | 104,395 | | | | 0.95 | | | | 0.95 | | | | (0.16 | ) | | | 38 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 37.87 | | | $ | 0.04 | | | $ | 4.22 | | | $ | 4.26 | | | $ | (0.04 | ) | | $ | (4.81 | ) | | $ | (4.85 | ) | | $ | 37.28 | | | | 11.37 | % | | $ | 1,669,393 | | | | 0.70 | % | | | 0.70 | % | | | 0.10 | % | | | 42 | % |
IB | | | 37.52 | | | | (0.06 | ) | | | 4.18 | | | | 4.12 | | | | — | | | | (4.81 | ) | | | (4.81 | ) | | | 36.83 | | | | 11.09 | | | | 83,562 | | | | 0.95 | | | | 0.95 | | | | (0.15 | ) | | | 42 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 28.16 | | | $ | 0.07 | | | $ | 11.02 | | | $ | 11.09 | | | $ | (0.04 | ) | | $ | (1.34 | ) | | $ | (1.38 | ) | | $ | 37.87 | | | | 39.82 | % | | $ | 1,483,626 | | | | 0.71 | % | | | 0.71 | % | | | 0.21 | % | | | 34 | % |
IB | | | 27.95 | | | | (0.02 | ) | | | 10.94 | | | | 10.92 | | | | (0.01 | ) | | | (1.34 | ) | | | (1.35 | ) | | | 37.52 | | | | 39.46 | | | | 82,483 | | | | 0.96 | | | | 0.96 | | | | (0.05 | ) | | | 34 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 23.77 | | | $ | 0.24 | | | $ | 4.38 | | | $ | 4.62 | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 28.16 | | | | 19.44 | % | | $ | 1,325,221 | | | | 0.71 | % | | | 0.71 | % | | | 0.84 | % | | | 51 | % |
IB | | | 23.59 | | | | 0.17 | | | | 4.35 | | | | 4.52 | | | | (0.16 | ) | | | — | | | | (0.16 | ) | | | 27.95 | | | | 19.14 | | | | 70,997 | | | | 0.96 | | | | 0.96 | | | | 0.59 | | | | 51 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 26.01 | | | $ | 0.15 | | | $ | (2.20 | ) | | $ | (2.05 | ) | | $ | (0.19 | ) | | $ | — | | | $ | (0.19 | ) | | $ | 23.77 | | | | (7.92 | )% | | $ | 1,212,257 | | | | 0.71 | % | | | 0.71 | % | | | 0.48 | % | | | 69 | % |
IB | | | 25.74 | | | | 0.07 | | | | (2.17 | ) | | | (2.10 | ) | | | (0.05 | ) | | | — | | | | (0.05 | ) | | | 23.59 | | | | (8.16 | ) | | | 70,188 | | | | 0.96 | | | | 0.96 | | | | 0.18 | | | | 69 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford MidCap Value HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 12.33 | | | $ | 0.04 | | | $ | 0.08 | | | $ | 0.12 | | | $ | — | | | $ | — | | | $ | — | | | $ | 12.45 | | | | 0.97 | %(4) | | $ | 274,875 | | | | 0.85 | %(5)(6) | | | 0.85 | %(5)(6) | | | 0.74 | %(5) | | | 22 | % |
IB | | | 12.24 | | | | 0.03 | | | | 0.08 | | | | 0.11 | | | | — | | | | — | | | | — | | | | 12.35 | | | | 0.90 | (4) | | | 86,085 | | | | 1.10 | (5)(6) | | | 1.10 | (5)(6) | | | 0.49 | (5) | | | 22 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 14.60 | | | $ | 0.07 | | | $ | (0.15 | ) | | $ | (0.08 | ) | | $ | (0.09 | ) | | $ | (2.10 | ) | | $ | (2.19 | ) | | $ | 12.33 | | | | (1.21 | )% | | $ | 291,174 | | | | 0.84 | % | | | 0.84 | % | | | 0.49 | % | | | 29 | % |
IB | | | 14.50 | | | | 0.03 | | | | (0.15 | ) | | | (0.12 | ) | | | (0.04 | ) | | | (2.10 | ) | | | (2.14 | ) | | | 12.24 | | | | (1.45 | ) | | | 91,720 | | | | 1.09 | | | | 1.09 | | | | 0.24 | | | | 29 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.51 | | | $ | 0.09 | | | $ | 1.19 | | | $ | 1.28 | | | $ | (0.11 | ) | | $ | (2.08 | ) | | $ | (2.19 | ) | | $ | 14.60 | | | | 8.22 | % | | $ | 345,084 | | | | 0.84 | % | | | 0.84 | % | | | 0.60 | % | | | 31 | % |
IB | | | 15.42 | | | | 0.05 | | | | 1.18 | | | | 1.23 | | | | (0.07 | ) | | | (2.08 | ) | | | (2.15 | ) | | | 14.50 | | | | 7.91 | | | | 110,819 | | | | 1.09 | | | | 1.09 | | | | 0.35 | | | | 31 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.65 | | | $ | 0.08 | | | $ | 3.95 | | | $ | 4.03 | | | $ | (0.17 | ) | | $ | — | | | $ | (0.17 | ) | | $ | 15.51 | | | | 34.71 | % | | $ | 377,272 | | | | 0.84 | % | | | 0.84 | % | | | 0.56 | % | | | 49 | % |
IB | | | 11.59 | | | | 0.04 | | | | 3.93 | | | | 3.97 | | | | (0.14 | ) | | | — | | | | (0.14 | ) | | | 15.42 | | | | 34.37 | | | | 123,884 | | | | 1.09 | | | | 1.09 | | | | 0.31 | | | | 49 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.44 | | | $ | 0.14 | | | $ | 2.20 | | | $ | 2.34 | | | $ | (0.13 | ) | | $ | — | | | $ | (0.13 | ) | | $ | 11.65 | | | | 24.95 | % | | $ | 323,934 | | | | 0.85 | % | | | 0.85 | % | | | 1.03 | % | | | 45 | % |
IB | | | 9.38 | | | | 0.10 | | | | 2.21 | | | | 2.31 | | | | (0.10 | ) | | | — | | | | (0.10 | ) | | | 11.59 | | | | 24.64 | | | | 112,996 | | | | 1.10 | | | | 1.10 | | | | 0.79 | | | | 45 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.32 | | | $ | 0.07 | | | $ | (0.95 | ) | | $ | (0.88 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 9.44 | | | | (8.56 | )% | | $ | 341,583 | | | | 0.83 | % | | | 0.83 | % | | | 0.57 | % | | | 43 | % |
IB | | | 10.29 | | | | 0.04 | | | | (0.95 | ) | | | (0.91 | ) | | | — | | | | — | | | | — | | | | 9.38 | | | | (8.79 | ) | | | 116,563 | | | | 1.08 | | | | 1.08 | | | | 0.32 | | | | 43 | |
| | | | | | |
| Hartford Small Cap Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 24.93 | | | $ | 0.01 | | | $ | (0.20 | ) | | $ | (0.19 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 24.74 | | | | (0.76 | )%(4) | | $ | 893,701 | | | | 0.65 | %(5)(6) | | | 0.65 | %(5)(6) | | | 0.09 | %(5) | | | 26 | % |
IB | | | 24.38 | | | | (0.02 | ) | | | (0.19 | ) | | | (0.21 | ) | | | — | | | | — | | | | — | | | | 24.17 | | | | (0.90 | )(4) | | | 207,065 | | | | 0.90 | (5)(6) | | | 0.90 | (5)(6) | | | (0.16 | )(5) | | | 26 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 27.95 | | | $ | 0.07 | | | $ | (0.02 | ) | | $ | 0.05 | | | $ | (0.02 | ) | | $ | (3.05 | ) | | $ | (3.07 | ) | | $ | 24.93 | | | | (0.55 | )% | | $ | 913,414 | | | | 0.65 | % | | | 0.65 | % | | | 0.25 | % | | | 59 | % |
IB | | | 27.44 | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | — | | | | (3.05 | ) | | | (3.05 | ) | | | 24.38 | | | | (0.79 | ) | | | 209,948 | | | | 0.90 | | | | 0.90 | | | | (0.03 | ) | | | 59 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 32.60 | | | $ | 0.06 | | | $ | 1.48 | | | $ | 1.54 | | | $ | (0.02 | ) | | $ | (6.17 | ) | | $ | (6.19 | ) | | $ | 27.95 | | | | 5.83 | % | | $ | 557,200 | | | | 0.65 | % | | | 0.65 | % | | | 0.19 | % | | | 117 | % |
IB | | | 32.17 | | | | (0.02 | ) | | | 1.46 | | | | 1.44 | | | | — | | | | (6.17 | ) | | | (6.17 | ) | | | 27.44 | | | | 5.57 | | | | 115,230 | | | | 0.90 | | | | 0.90 | | | | (0.06 | ) | | | 117 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 25.44 | | | $ | 0.05 | | | $ | 10.92 | | | $ | 10.97 | | | $ | (0.12 | ) | | $ | (3.69 | ) | | $ | (3.81 | ) | | $ | 32.60 | | | | 44.87 | % | | $ | 466,173 | | | | 0.67 | % | | | 0.67 | % | | | 0.16 | % | | | 81 | % |
IB | | | 25.14 | | | | (0.02 | ) | | | 10.77 | | | | 10.75 | | | | (0.03 | ) | | | (3.69 | ) | | | (3.72 | ) | | | 32.17 | | | | 44.50 | | | | 123,966 | | | | 0.92 | | | | 0.92 | | | | (0.08 | ) | | | 81 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 21.67 | | | $ | 0.11 | | | $ | 3.66 | | | $ | 3.77 | | | $ | — | | | $ | — | | | $ | — | | | $ | 25.44 | | | | 17.40 | % | | $ | 378,318 | | | | 0.67 | % | | | 0.67 | % | | | 0.41 | % | | | 85 | % |
IB | | | 21.47 | | | | 0.04 | | | | 3.63 | | | | 3.67 | | | | — | | | | — | | | | — | | | | 25.14 | | | | 17.10 | | | | 134,404 | | | | 0.92 | | | | 0.92 | | | | 0.16 | | | | 85 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 21.37 | | | $ | (0.02 | ) | | $ | 0.32 | | | $ | 0.30 | | | $ | — | | | $ | — | | | $ | — | | | $ | 21.67 | | | | 1.42 | % | | $ | 397,662 | | | | 0.67 | % | | | 0.67 | % | | | (0.07 | )% | | | 62 | % |
IB | | | 21.22 | | | | (0.07 | ) | | | 0.32 | | | | 0.25 | | | | — | | | | — | | | | — | | | | 21.47 | | | | 1.17 | | | | 144,022 | | | | 0.92 | | | | 0.92 | | | | (0.32 | ) | | | 62 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Small Company HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 17.52 | | | $ | (0.02 | ) | | $ | (1.09 | ) | | $ | (1.11 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 16.41 | | | | (6.34 | )%(4) | | $ | 892,659 | | | | 0.75 | %(5)(6) | | | 0.75 | %(5)(6) | | | (0.21 | )%(5) | | | 49 | % |
IB | | | 16.47 | | | | (0.03 | ) | | | (1.03 | ) | | | (1.06 | ) | | | — | | | | — | | | | — | | | | 15.41 | | | | (6.44 | )(4) | | | 92,296 | | | | 1.00 | (5)(6) | | | 1.00 | (5)(6) | | | (0.45 | )(5) | | | 49 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 23.33 | | | $ | (0.02 | ) | | $ | (1.43 | ) | | $ | (1.45 | ) | | $ | — | | | $ | (4.36 | ) | | $ | (4.36 | ) | | $ | 17.52 | | | | (8.21 | )% | | $ | 1,117,778 | | | | 0.71 | % | | | 0.71 | % | | | (0.11 | )% | | | 88 | % |
IB | | | 22.24 | | | | (0.07 | ) | | | (1.34 | ) | | | (1.41 | ) | | | — | | | | (4.36 | ) | | | (4.36 | ) | | | 16.47 | | | | (8.45 | ) | | | 98,501 | | | | 0.96 | | | | 0.96 | | | | (0.36 | ) | | | 88 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 26.43 | | | $ | (0.09 | ) | | $ | 1.78 | | | $ | 1.69 | | | $ | — | | | $ | (4.79 | ) | | $ | (4.79 | ) | | $ | 23.33 | | | | 7.07 | % | | $ | 1,279,533 | | | | 0.71 | % | | | 0.71 | % | | | (0.35 | )% | | | 90 | % |
IB | | | 25.46 | | | | (0.15 | ) | | | 1.72 | | | | 1.57 | | | | — | | | | (4.79 | ) | | | (4.79 | ) | | | 22.24 | | | | 6.85 | | | | 123,799 | | | | 0.96 | | | | 0.96 | | | | (0.60 | ) | | | 90 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 19.74 | | | $ | (0.07 | ) | | $ | 8.60 | | | $ | 8.53 | | | $ | (0.02 | ) | | $ | (1.82 | ) | | $ | (1.84 | ) | | $ | 26.43 | | | | 44.38 | % | | $ | 1,354,821 | | | | 0.71 | % | | | 0.71 | % | | | (0.29 | )% | | | 96 | % |
IB | | | 19.06 | | | | (0.12 | ) | | | 8.34 | | | | 8.22 | | | | — | | | | (1.82 | ) | | | (1.82 | ) | | | 25.46 | | | | 44.28 | | | | 141,791 | | | | 0.96 | | | | 0.96 | | | | (0.54 | ) | | | 96 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 17.07 | | | $ | 0.03 | | | $ | 2.64 | | | $ | 2.67 | | | $ | — | | | $ | — | | | $ | — | | | $ | 19.74 | | | | 15.64 | % | | $ | 1,126,350 | | | | 0.72 | % | | | 0.72 | % | | | 0.16 | % | | | 110 | % |
IB | | | 16.56 | | | | (0.03 | ) | | | 2.53 | | | | 2.50 | | | | — | | | | — | | | | — | | | | 19.06 | | | | 15.10 | | | | 117,133 | | | | 0.97 | | | | 0.97 | | | | (0.13 | ) | | | 110 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 17.66 | | | $ | (0.02 | ) | | $ | (0.57 | ) | | $ | (0.59 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 17.07 | | | | (3.36 | )% | | $ | 1,090,883 | | | | 0.71 | % | | | 0.71 | % | | | (0.13 | )% | | | 99 | % |
IB | | | 17.18 | | | | (0.09 | ) | | | (0.53 | ) | | | (0.62 | ) | | | — | | | | — | | | | — | | | | 16.56 | | | | (3.62 | ) | | | 155,970 | | | | 0.96 | | | | 0.96 | | | | (0.38 | ) | | | 99 | |
| | | | | | |
| Hartford Small/Mid Cap Equity HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 7.45 | | | $ | 0.07 | | | $ | — | | | $ | 0.07 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7.52 | | | | 0.94 | %(4) | | $ | 73,709 | | | | 0.92 | %(5)(6) | | | 0.92 | %(5)(6) | | | 1.91 | %(5) | | | 41 | % |
IB | | | 7.40 | | | | 0.06 | | | | — | | | | 0.06 | | | | — | | | | — | | | | — | | | | 7.46 | | | | 0.81 | (4) | | | 14,529 | | | | 1.17 | (5)(6) | | | 1.17 | (5)(6) | | | 1.65 | (5) | | | 41 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.47 | | | $ | 0.12 | | | $ | (0.46 | ) | | $ | (0.34 | ) | | $ | (0.12 | ) | | $ | (1.56 | ) | | $ | (1.68 | ) | | $ | 7.45 | | | | (4.73 | )% | | $ | 79,379 | | | | 0.88 | % | | | 0.88 | % | | | 1.39 | % | | | 80 | % |
IB | | | 9.41 | | | | 0.10 | | | | (0.46 | ) | | | (0.36 | ) | | | (0.09 | ) | | | (1.56 | ) | | | (1.65 | ) | | | 7.40 | | | | (4.97 | ) | | | 16,501 | | | | 1.13 | | | | 1.13 | | | | 1.12 | | | | 80 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.29 | | | $ | 0.13 | | | $ | 0.43 | | | $ | 0.56 | | | $ | (0.18 | ) | | $ | (2.20 | ) | | $ | (2.38 | ) | | $ | 9.47 | | | | 5.22 | % | | $ | 98,069 | | | | 0.85 | % | | | 0.85 | % | | | 1.20 | % | | | 108 | % |
IB | | | 11.22 | | | | 0.10 | | | | 0.44 | | | | 0.54 | | | | (0.15 | ) | | | (2.20 | ) | | | (2.35 | ) | | | 9.41 | | | | 5.00 | | | | 23,239 | | | | 1.10 | | | | 1.10 | | | | 0.96 | | | | 108 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 8.90 | | | $ | 0.16 | | | $ | 3.08 | | | $ | 3.24 | | | $ | (0.14 | ) | | $ | (0.71 | ) | | $ | (0.85 | ) | | $ | 11.29 | | | | 37.51 | % | | $ | 117,395 | | | | 0.85 | % | | | 0.85 | % | | | 1.58 | % | | | 128 | % |
IB | | | 8.85 | | | | 0.13 | | | | 3.07 | | | | 3.20 | | | | (0.12 | ) | | | (0.71 | ) | | | (0.83 | ) | | | 11.22 | | | | 37.08 | | | | 26,362 | | | | 1.10 | | | | 1.10 | | | | 1.32 | | | | 128 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 8.93 | | | $ | 0.15 | | | $ | 1.21 | | | $ | 1.36 | | | $ | (0.06 | ) | | $ | (1.33 | ) | | $ | (1.39 | ) | | $ | 8.90 | | | | 15.87 | % | | $ | 106,339 | | | | 0.88 | % | | | 0.88 | % | | | 1.57 | % | | | 150 | % |
IB | | | 8.88 | | | | 0.13 | | | | 1.20 | | | | 1.33 | | | | (0.03 | ) | | | (1.33 | ) | | | (1.36 | ) | | | 8.85 | | | | 15.58 | | | | 24,774 | | | | 1.13 | | | | 1.13 | | | | 1.26 | | | | 150 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.85 | | | $ | 0.06 | | | $ | (0.23 | ) | | $ | (0.17 | ) | | $ | — | | | $ | (0.75 | ) | | $ | (0.75 | ) | | $ | 8.93 | | | | (1.13 | )% | | $ | 107,762 | | | | 0.87 | % | | | 0.87 | % | | | 0.60 | % | | | 196 | % |
IB | | | 9.83 | | | | 0.04 | | | | (0.24 | ) | | | (0.20 | ) | | | — | | | | (0.75 | ) | | | (0.75 | ) | | | 8.88 | | | | (1.38 | ) | | | 28,441 | | | | 1.12 | | | | 1.12 | | | | 0.34 | | | | 196 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Stock HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 64.06 | | | $ | 0.56 | | | $ | 3.01 | | | $ | 3.57 | | | $ | — | | | $ | — | | | $ | — | | | $ | 67.63 | | | | 5.59 | %(4) | | $ | 1,373,648 | | | | 0.51 | %(5)(6) | | | 0.51 | %(5)(6) | | | 1.75 | %(5) | | | 15 | % |
IB | | | 64.03 | | | | 0.48 | | | | 3.01 | | | | 3.49 | | | | — | | | | — | | | | — | | | | 67.52 | | | | 5.45 | (4) | | | 150,118 | | | | 0.76 | (5)(6) | | | 0.76 | (5)(6) | | | 1.50 | (5) | | | 15 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 63.49 | | | $ | 1.19 | | | $ | 0.56 | | | $ | 1.75 | | | $ | (1.18 | ) | | $ | — | | | $ | (1.18 | ) | | $ | 64.06 | | | | 2.74 | % | | $ | 1,388,110 | | | | 0.51 | % | | | 0.51 | % | | | 1.86 | % | | | 23 | % |
IB | | | 63.46 | | | | 1.03 | | | | 0.54 | | | | 1.57 | | | | (1.00 | ) | | | — | | | | (1.00 | ) | | | 64.03 | | �� | | 2.48 | | | | 155,722 | | | | 0.76 | | | | 0.76 | | | | 1.61 | | | | 23 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 58.07 | | | $ | 1.07 | | | $ | 5.51 | | | $ | 6.58 | | | $ | (1.16 | ) | | $ | — | | | $ | (1.16 | ) | | $ | 63.49 | | | | 11.31 | % | | $ | 1,552,777 | | | | 0.50 | % | | | 0.50 | % | | | 1.79 | % | | | 20 | % |
IB | | | 58.04 | | | | 0.92 | | | | 5.50 | | | | 6.42 | | | | (1.00 | ) | | | — | | | | (1.00 | ) | | | 63.46 | | | | 11.04 | | | | 182,112 | | | | 0.75 | | | | 0.75 | | | | 1.54 | | | | 20 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 44.73 | | | $ | 0.99 | | | $ | 13.41 | | | $ | 14.40 | | | $ | (1.06 | ) | | $ | — | | | $ | (1.06 | ) | | $ | 58.07 | | | | 32.25 | % | | $ | 1,667,278 | | | | 0.51 | % | | | 0.51 | % | | | 1.89 | % | | | 27 | % |
IB | | | 44.71 | | | | 0.85 | | | | 13.40 | | | | 14.25 | | | | (0.92 | ) | | | — | | | | (0.92 | ) | | | 58.04 | | | | 31.92 | | | | 204,437 | | | | 0.76 | | | | 0.76 | | | | 1.64 | | | | 27 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 39.95 | | | $ | 0.91 | | | $ | 4.83 | | | $ | 5.74 | | | $ | (0.96 | ) | | $ | — | | | $ | (0.96 | ) | | $ | 44.73 | | | | 14.38 | % | | $ | 1,532,116 | | | | 0.51 | % | | | 0.51 | % | | | 1.86 | % | | | 82 | % |
IB | | | 39.92 | | | | 0.82 | | | | 4.81 | | | | 5.63 | | | | (0.84 | ) | | | — | | | | (0.84 | ) | | | 44.71 | | | | 14.10 | | | | 200,153 | | | | 0.76 | | | | 0.76 | | | | 1.61 | | | | 82 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 40.98 | | | $ | 0.62 | | | $ | (1.07 | ) | | $ | (0.45 | ) | | $ | (0.58 | ) | | $ | — | | | $ | (0.58 | ) | | $ | 39.95 | | | | (1.09 | )% | | $ | 1,614,788 | | | | 0.50 | % | | | 0.50 | % | | | 1.37 | % | | | 43 | % |
IB | | | 40.94 | | | | 0.51 | | | | (1.06 | ) | | | (0.55 | ) | | | (0.47 | ) | | | — | | | | (0.47 | ) | | | 39.92 | | | | (1.34 | ) | | | 231,377 | | | | 0.75 | | | | 0.75 | | | | 1.11 | | | | 43 | |
| | | | | | |
| Hartford Total Return Bond HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.93 | | | $ | 0.18 | | | $ | 0.42 | | | $ | 0.60 | | | $ | — | | | $ | — | | | $ | — | | | $ | 11.53 | | | | 5.49 | %(4) | | $ | 2,357,234 | | | | 0.51 | %(5)(6) | | | 0.51 | %(5)(6) | | | 3.30 | %(5) | | | 19 | % |
IB | | | 10.87 | | | | 0.17 | | | | 0.41 | | | | 0.58 | | | | — | | | | — | | | | — | | | | 11.45 | | | | 5.34 | (4) | | | 287,232 | | | | 0.76 | (5)(6) | | | 0.76 | (5)(6) | | | 3.05 | (5) | | | 19 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.63 | | | $ | 0.33 | | | $ | (0.39 | ) | | $ | (0.06 | ) | | $ | (0.36 | ) | | $ | (0.28 | ) | | $ | (0.64 | ) | | $ | 10.93 | | | | (0.59 | )% | | $ | 2,448,280 | | | | 0.51 | % | | | 0.51 | % | | | 2.88 | % | | | 66 | % |
IB | | | 11.56 | | | | 0.30 | | | | (0.39 | ) | | | (0.09 | ) | | | (0.32 | ) | | | (0.28 | ) | | | (0.60 | ) | | | 10.87 | | | | (0.81 | ) | | | 295,006 | | | | 0.76 | | | | 0.76 | | | | 2.63 | | | | 66 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.35 | | | $ | 0.33 | | | $ | 0.34 | | | $ | 0.67 | | | $ | (0.39 | ) | | $ | — | | | $ | (0.39 | ) | | $ | 11.63 | | | | 5.89 | % | | $ | 2,879,633 | | | | 0.50 | % | | | 0.50 | % | | | 2.85 | % | | | 84 | % |
IB | | | 11.27 | | | | 0.30 | | | | 0.34 | | | | 0.64 | | | | (0.35 | ) | | | — | | | | (0.35 | ) | | | 11.56 | | | | 5.68 | | | | 360,006 | | | | 0.75 | | | | 0.75 | | | | 2.60 | | | | 84 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.99 | | | $ | 0.32 | | | $ | (0.49 | ) | | $ | (0.17 | ) | | $ | (0.47 | ) | | $ | — | | | $ | (0.47 | ) | | $ | 11.35 | | | | (1.36 | )% | | $ | 3,290,622 | | | | 0.50 | % | | | 0.50 | % | | | 2.76 | % | | | 81 | % |
IB | | | 11.91 | | | | 0.29 | | | | (0.50 | ) | | | (0.21 | ) | | | (0.43 | ) | | | — | | | | (0.43 | ) | | | 11.27 | | | | (1.66 | ) | | | 414,910 | | | | 0.75 | | | | 0.75 | | | | 2.51 | | | | 81 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.63 | | | $ | 0.41 | | | $ | 0.45 | | | $ | 0.86 | | | $ | (0.50 | ) | | $ | — | | | $ | (0.50 | ) | | $ | 11.99 | | | | 7.54 | % | | $ | 3,572,511 | | | | 0.50 | % | | | 0.50 | % | | | 3.01 | % | | | 88 | % |
IB | | | 11.55 | | | | 0.40 | | | | 0.43 | | | | 0.83 | | | | (0.47 | ) | | | — | | | | (0.47 | ) | | | 11.91 | | | | 7.27 | | | | 566,274 | | | | 0.75 | | | | 0.75 | | | | 2.76 | | | | 88 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.90 | | | $ | 0.44 | | | $ | 0.31 | | | $ | 0.75 | | | $ | (0.02 | ) | | $ | — | | | $ | (0.02 | ) | | $ | 11.63 | | | | 6.99 | % | | $ | 3,718,609 | | | | 0.49 | % | | | 0.49 | % | | | 3.60 | % | | | 107 | % |
IB | | | 10.84 | | | | 0.42 | | | | 0.31 | | | | 0.73 | | | | (0.02 | ) | | | — | | | | (0.02 | ) | | | 11.55 | | | | 6.72 | | | | 632,685 | | | | 0.74 | | | | 0.74 | | | | 3.35 | | | | 107 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Ultrashort Bond HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 9.99 | | | $ | 0.03 | | | $ | 0.03 | | | $ | 0.06 | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.05 | | | | 0.60 | %(4) | | $ | 564,942 | | | | 0.44 | %(5)(6) | | | 0.44 | %(5)(6) | | | 0.54 | %(5) | | | 20 | % |
IB | | | 9.97 | | | | 0.01 | | | | 0.04 | | | | 0.05 | | | | — | | | | — | | | | — | | | | 10.02 | | | | 0.50 | (4) | | | 88,476 | | | | 0.69 | (5)(6) | | | 0.69 | (5)(6) | | | 0.29 | (5) | | | 20 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.01 | | | $ | 0.03 | | | $ | (0.02 | ) | | $ | 0.01 | | | $ | (0.03 | ) | | $ | — | | | $ | (0.03 | ) | | $ | 9.99 | | | | 0.13 | % | | $ | 611,087 | | | | 0.43 | % | | | 0.43 | % | | | 0.33 | % | | | 35 | % |
IB | | | 9.98 | | | | 0.01 | | | | (0.02 | ) | | | (0.01 | ) | | | — | | | | — | | | | — | | | | 9.97 | | | | (0.09 | ) | | | 96,970 | | | | 0.68 | | | | 0.68 | | | | 0.08 | | | | 35 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.00 | | | $ | 0.02 | | | $ | (0.01 | ) | | $ | 0.01 | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.01 | | | | 0.10 | % | | $ | 745,597 | | | | 0.43 | % | | | 0.43 | % | | | 0.23 | % | | | 40 | % |
IB | | | 9.99 | | | | — | | | | (0.01 | ) | | | (0.01 | ) | | | — | | | | — | | | | — | | | | 9.98 | | | | (0.10 | ) | | | 121,168 | | | | 0.68 | | | | 0.68 | | | | (0.02 | ) | | | 40 | |
| | | | | | |
For the Year Ended December 31, 2013(7)(11) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.00 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.00 | | | | — | % | | $ | 1,013,110 | | | | 0.21 | % | | | 0.45 | % | | | (0.02 | )% | | | 6 | %(12) |
IB | | | 10.00 | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | — | | | | — | | | | — | | | | 9.99 | | | | (0.10 | ) | | | 163,058 | | | | 0.25 | | | | 0.49 | | | | (0.06 | ) | | | 6 | (12) |
| | | | | | |
For the Year Ended December 31, 2012(7)(11) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.00 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.00 | | | | — | % | | $ | 1,603,657 | | | | 0.18 | % | | | 0.42 | % | | | — | % | | | — | %(13) |
IB | | | 10.00 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 10.00 | | | | — | | | | 272,464 | | | | 0.18 | | | | 0.42 | | | | — | | | | — | (13) |
| | | | | | |
For the Year Ended December 31, 2011(7)(11) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.00 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.00 | | | | — | % | | $ | 1,970,312 | | | | 0.16 | % | | | 0.42 | % | | | — | % | | | — | %(13) |
IB | | | 10.00 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 10.00 | | | | — | | | | 376,648 | | | | 0.16 | | | | 0.42 | | | | — | | | | — | (13) |
| | | | | | |
| Hartford U.S. Government Securities HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.34 | | | $ | 0.09 | | | $ | 0.29 | | | $ | 0.38 | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.72 | | | | 3.68 | %(4) | | $ | 410,875 | | | | 0.50 | %(5)(6) | | | 0.50 | %(5)(6) | | | 1.81 | %(5) | | | 24 | % |
IB | | | 10.32 | | | | 0.08 | | | | 0.28 | | | | 0.36 | | | | — | | | | — | | | | — | | | | 10.68 | | | | 3.49 | (4) | | | 90,574 | | | | 0.75 | (5)(6) | | | 0.75 | (5)(6) | | | 1.56 | (5) | | | 24 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.37 | | | $ | 0.16 | | | $ | — | | | $ | 0.16 | | | $ | (0.19 | ) | | $ | — | | | $ | (0.19 | ) | | $ | 10.34 | | | | 1.56 | % | | $ | 412,060 | | | | 0.49 | % | | | 0.49 | % | | | 1.53 | % | | | 42 | % |
IB | | | 10.34 | | | | 0.13 | | | | 0.01 | | | | 0.14 | | | | (0.16 | ) | | | — | | | | (0.16 | ) | | | 10.32 | | | | 1.35 | | | | 90,088 | | | | 0.74 | | | | 0.74 | | | | 1.28 | | | | 42 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.32 | | | $ | 0.15 | | | $ | 0.14 | | | $ | 0.29 | | | $ | (0.24 | ) | | $ | — | | | $ | (0.24 | ) | | $ | 10.37 | | | | 2.81 | % | | $ | 468,967 | | | | 0.48 | % | | | 0.48 | % | | | 1.40 | % | | | 37 | % |
IB | | | 10.28 | | | | 0.12 | | | | 0.15 | | | | 0.27 | | | | (0.21 | ) | | | — | | | | (0.21 | ) | | | 10.34 | | | | 2.59 | | | | 102,235 | | | | 0.73 | | | | 0.73 | | | | 1.15 | | | | 37 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.75 | | | $ | 0.12 | | | $ | (0.30 | ) | | $ | (0.18 | ) | | $ | (0.25 | ) | | $ | — | | | $ | (0.25 | ) | | $ | 10.32 | | | | (1.68 | )% | | $ | 556,169 | | | | 0.49 | % | | | 0.49 | % | | | 1.14 | % | | | 39 | % |
IB | | | 10.71 | | | | 0.09 | | | | (0.30 | ) | | | (0.21 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) | | | 10.28 | | | | (1.97 | ) | | | 123,908 | | | | 0.74 | | | | 0.74 | | | | 0.89 | | | | 39 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.68 | | | $ | 0.16 | | | $ | 0.22 | | | $ | 0.38 | | | $ | (0.31 | ) | | $ | — | | | $ | (0.31 | ) | | $ | 10.75 | | | | 3.70 | % | | $ | 833,735 | | | | 0.48 | % | | | 0.48 | % | | | 1.20 | % | | | 86 | % |
IB | | | 10.63 | | | | 0.13 | | | | 0.23 | | | | 0.36 | | | | (0.28 | ) | | | — | | | | (0.28 | ) | | | 10.71 | | | | 3.44 | | | | 173,937 | | | | 0.73 | | | | 0.73 | | | | 0.95 | | | | 86 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.46 | | | $ | 0.21 | | | $ | 0.30 | | | $ | 0.51 | | | $ | (0.29 | ) | | $ | — | | | $ | (0.29 | ) | | $ | 10.68 | | | | 4.87 | % | | $ | 907,046 | | | | 0.48 | % | | | 0.48 | % | | | 1.61 | % | | | 426 | % |
IB | | | 10.40 | | | | 0.19 | | | | 0.29 | | | | 0.48 | | | | (0.25 | ) | | | — | | | | (0.25 | ) | | | 10.63 | | | | 4.61 | | | | 194,273 | | | | 0.73 | | | | 0.73 | | | | 1.36 | | | | 426 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Realized
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Value HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six-Month Period Ended June 30, 2016 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.58 | | | $ | 0.16 | | | $ | 0.50 | | | $ | 0.66 | | | $ | — | | | $ | — | | | $ | — | | | $ | 16.24 | | | | 4.24 | %(4) | | $ | 440,519 | | | | 0.79 | %(5)(6) | | | 0.79 | %(5)(6) | | | 2.14 | %(5) | | | 6 | % |
IB | | | 15.57 | | | | 0.15 | | | | 0.49 | | | | 0.64 | | | | — | | | | — | | | | — | | | | 16.21 | | | | 4.11 | (4) | | | 77,637 | | | | 1.04 | (5)(6) | | | 1.04 | (5)(6) | | | 1.89 | (5) | | | 6 | |
| | | | | | |
For the Year Ended December 31, 2015 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 16.89 | | | $ | 0.26 | | | $ | (0.77 | ) | | $ | (0.51 | ) | | $ | (0.26 | ) | | $ | (0.54 | ) | | $ | (0.80 | ) | | $ | 15.58 | | | | (3.08 | )% | | $ | 455,713 | | | | 0.78 | % | | | 0.78 | % | | | 1.56 | % | | | 19 | % |
IB | | | 16.88 | | | | 0.22 | | | | (0.77 | ) | | | (0.55 | ) | | | (0.22 | ) | | | (0.54 | ) | | | (0.76 | ) | | | 15.57 | | | | (3.35 | ) | | | 80,052 | | | | 1.03 | | | | 1.03 | | | | 1.30 | | | | 19 | |
| | | | | | |
For the Year Ended December 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 15.39 | | | $ | 0.24 | | | $ | 1.51 | | | $ | 1.75 | | | $ | (0.25 | ) | | $ | — | | | $ | (0.25 | ) | | $ | 16.89 | | | | 11.37 | % | | $ | 523,661 | | | | 0.77 | % | | | 0.77 | % | | | 1.51 | % | | | 14 | % |
IB | | | 15.38 | | | | 0.20 | | | | 1.51 | | | | 1.71 | | | | (0.21 | ) | | | — | | | | (0.21 | ) | | | 16.88 | | | | 11.10 | | | | 98,407 | | | | 1.02 | | | | 1.02 | | | | 1.26 | | | | 14 | |
| | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 11.86 | | | $ | 0.23 | | | $ | 3.55 | | | $ | 3.78 | | | $ | (0.25 | ) | | $ | — | | | $ | (0.25 | ) | | $ | 15.39 | | | | 31.94 | % | | $ | 551,350 | | | | 0.76 | % | | | 0.76 | % | | | 1.66 | % | | | 19 | % |
IB | | | 11.85 | | | | 0.20 | | | | 3.54 | | | | 3.74 | | | | (0.21 | ) | | | — | | | | (0.21 | ) | | | 15.38 | | | | 31.65 | | | | 109,081 | | | | 1.01 | | | | 1.01 | | | | 1.41 | | | | 19 | |
| | | | | | |
For the Year Ended December 31, 2012(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.37 | | | $ | 0.26 | | | $ | 1.50 | | | $ | 1.76 | | | $ | (0.27 | ) | | $ | — | | | $ | (0.27 | ) | | $ | 11.86 | | | | 16.99 | % | | $ | 549,228 | | | | 0.76 | % | | | 0.76 | % | | | 2.02 | % | | | 22 | % |
IB | | | 10.36 | | | | 0.23 | | | | 1.50 | | | | 1.73 | | | | (0.24 | ) | | | — | | | | (0.24 | ) | | | 11.85 | | | | 16.69 | | | | 103,438 | | | | 1.01 | | | | 1.01 | | | | 1.77 | | | | 22 | |
| | | | | | |
For the Year Ended December 31, 2011(7) | | | | | | | | | | | | | | | | | | | | | | | | | |
IA | | $ | 10.77 | | | $ | 0.20 | | | $ | (0.41 | ) | | $ | (0.21 | ) | | $ | (0.19 | ) | | $ | — | | | $ | (0.19 | ) | | $ | 10.37 | | | | (1.96 | )% | | $ | 591,278 | | | | 0.75 | % | | | 0.75 | % | | | 1.65 | % | | | 16 | % |
IB | | | 10.76 | | | | 0.17 | | | | (0.41 | ) | | | (0.24 | ) | | | (0.16 | ) | | | — | | | | (0.16 | ) | | | 10.36 | | | | (2.20 | ) | | | 111,486 | | | | 1.00 | | | | 1.00 | | | | 1.40 | | | | 16 | |
| (1) | Information presented relates to a share outstanding throughout the indicated period. Net investment income (loss) per share amounts are calculated based on average shares outstanding unless otherwise noted. |
| (2) | The figures do not include sales charges or other fees which may be applied at the variable life insurance, variable annuity or qualified retirement plan product level. Any such additional sales charges or other fees would lower the Fund’s performance. |
| (3) | Adjustments include waivers and reimbursements, if applicable. Ratios do not include fees paid indirectly (see Expenses in the accompanying Notes to Financial Statements). |
| (6) | Certain non-recurring expenses incurred by the Fund were not annualized for the six-month period ended June 30, 2016. |
| (7) | Net investment income (loss) per share amounts have been calculated using the Securities and Exchange Commission method. |
| (8) | Commenced operations on April 30, 2014. |
| (9) | During the year ended December 31, 2014, the Fund incurred $61.8 million in sales associated with the transition of assets from Hartford Global Research HLS Fund, which merged into the Fund on June 23, 2014. These sales were excluded from the portfolio turnover rate calculation. |
| (10) | During the year ended December 31, 2014, the Fund incurred $137.9 million in sales associated with the transition of assets from Hartford Growth HLS Fund, which merged into the Fund on June 23, 2014. These sales were excluded from the portfolio turnover rate calculation. |
| (11) | Per share amounts have been restated to reflect a reverse stock split effective October 21, 2013. Please see Notes to Financial Statements. |
| (12) | Portfolio turnover shown is from October 21, 2013 (conversion date) through December 31, 2013. |
| (13) | The Fund was managed as a money market fund and portfolio turnover was not calculated. |
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
June 30, 2016 (Unaudited)
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each, a “Company” and collectively, the “Companies”) are each an open-end registered management investment company comprised of fifteen and four series, respectively, as of June 30, 2016. Financial statements for the series of each Company listed below (each, a “Fund” and collectively, the “Funds”) are included in this report.
Hartford Series Fund, Inc.:
Hartford Balanced HLS Fund (the “Balanced HLS Fund”)
Hartford Capital Appreciation HLS Fund (the “Capital Appreciation HLS Fund”)
Hartford Disciplined Equity HLS Fund (the “Disciplined Equity HLS Fund”)
Hartford Dividend and Growth HLS Fund (the “Dividend and Growth HLS Fund”)
Hartford Global Growth HLS Fund (the “Global Growth HLS Fund”)
Hartford Healthcare HLS Fund (the “Healthcare HLS Fund”)
Hartford High Yield HLS Fund (the “High Yield HLS Fund”)
Hartford International Opportunities HLS Fund (the “International Opportunities HLS Fund”)
Hartford MidCap HLS Fund (the “MidCap HLS Fund”)
Hartford MidCap Value HLS Fund (the “MidCap Value HLS Fund”)
Hartford Small Company HLS Fund (the “Small Company HLS Fund”)
Hartford Stock HLS Fund (the “Stock HLS Fund”)
Hartford Total Return Bond HLS Fund (the “Total Return Bond HLS Fund”)
Hartford Ultrashort Bond HLS Fund (the “Ultrashort Bond HLS Fund”)
Hartford Value HLS Fund (the “Value HLS Fund”)
Hartford HLS Series Fund II, Inc.:
Hartford Growth Opportunities HLS Fund (the “Growth Opportunities HLS Fund”)
Hartford Small Cap Growth HLS Fund (formerly, Hartford SmallCap Growth HLS Fund) (the “Small Cap Growth HLS Fund”)
Hartford Small/Mid Cap Equity HLS Fund (the “Small/Mid Cap Equity HLS Fund”)
Hartford U.S. Government Securities HLS Fund (the “U.S. Government Securities HLS Fund”)
The assets of each Fund are separate, and a shareholder’s interest is limited to the Fund in which shares are held. Each Company is organized under the laws of the State of Maryland and is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Each Fund serves as an underlying investment option for certain variable annuity and variable life insurance separate accounts of Hartford Life Insurance Company (“HLIC”) and its affiliates and certain qualified retirement plans. Each Fund may also serve as an underlying investment option for certain variable annuity and variable life separate accounts of other insurance companies. Owners of variable annuity contracts and policyholders of variable life insurance contracts may choose the funds permitted in the variable insurance contract prospectus. In addition, participants in certain qualified retirement plans may choose the Funds if permitted by their plans.
The Global Growth HLS Fund’s portfolio managers are Matthew D. Hudson (50%) and John A. Boselli (50%) as of June 30, 2016. The Small Cap Growth HLS Fund’s portfolio managers are Mammen Chally (81%) and David J. Elliot (19%) as of June 30, 2016. The Small Company HLS Fund’s portfolio managers are Steven C. Angeli (98%) and Mammen Chally (2%) as of June 30, 2016.
Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting under Accounting Standards and Codification Topic 946, “Financial Services – Investment Companies”.
Each Fund, except Balanced HLS Fund, Capital Appreciation HLS Fund, Dividend and Growth HLS Fund, Global Growth HLS Fund, Growth Opportunities HLS Fund, International Opportunities HLS Fund, MidCap HLS Fund, Small/Mid Cap Equity HLS Fund and Stock HLS, is divided into Class IA and Class IB shares. Balanced HLS Fund, Capital Appreciation HLS Fund, Dividend and Growth HLS Fund, Global Growth HLS Fund, Growth Opportunities HLS Fund, International Opportunities HLS Fund, MidCap HLS Fund, Small/Mid Cap Equity HLS Fund and Stock HLS Fund are divided into Class IA, Class IB and Class IC shares. Class IC shares have not commenced operations for Balanced HLS Fund, Dividend and Growth HLS Fund, Global Growth HLS Fund, International Opportunities HLS Fund, MidCap HLS Fund, Small/Mid Cap Equity HLS Fund and Stock HLS Fund as of the date of this report. Small Cap Growth HLS Fund and Small Company HLS Fund are now closed to new investors until further notice. For more information please see the Fund’s prospectus. Each class is offered at the per share net asset value (“NAV”) without a sales charge and is subject to the same expenses, except certain
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
class specific expenses. Class IB shares are subject to distribution and service fees charged pursuant to a Distribution Plan adopted in accordance with Rule 12b-1 under the 1940 Act. Class IC shares are subject to distribution fees charged pursuant to a Distribution Plan adopted in accordance with Rule 12b-1 under the 1940 Act and Class IC shares are also subject to an administrative service fee.
| 2. | Significant Accounting Policies: |
The following is a summary of significant accounting policies of each Fund used in the preparation of its financial statements, which are in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
| | a) | Determination of Net Asset Value – The NAV of each class of each Fund’s shares is determined as of the close of regular trading (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the New York Stock Exchange (the “Exchange”) is open (“Valuation Date”). Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day. |
| | b) | Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV of each Fund, portfolio securities and other assets held in the Fund’s portfolio for which market prices are readily available are valued at market value. Market value is generally determined on the basis of last reported trade prices or official close price. If no trades were reported, market value is based on prices obtained from a quotation reporting system, established market makers, or independent pricing services. If market prices are not readily available or are deemed unreliable, a Fund will use the fair value of the security or other instrument as determined in good faith under policies and procedures established by and under the supervision of the respective Company’s Board of Directors. Market prices are considered not readily available where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of a Fund’s portfolio holdings or assets. In addition, market prices are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities or other instruments trade do not open for trading for the entire day and no other market prices are available. In addition, prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the respective Company’s Board of Directors in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close. Securities and other instruments that are primarily traded on foreign markets may trade on days that are not business days of the Funds. The value of the foreign securities or other instruments in which a Fund invests may change on days when a shareholder will not be able to purchase or redeem shares of the Fund. Fair value pricing is subjective in nature and the use of fair value pricing by a Fund may cause the NAV of its shares to differ significantly from the NAV that would have been calculated using market prices at the close of the exchange on which a portfolio holding is primarily traded. There can be no assurance that a Fund could obtain the fair value assigned to an investment if the Fund were to sell the investment at approximately the time at which the Fund determines its NAV. |
Fixed income investments (other than short-term obligations and senior floating rate interest), non-exchange traded derivatives and centrally cleared swaps held by a Fund are normally valued on the basis of quotes obtained from brokers and dealers or independent pricing services in accordance with procedures established by the respective Company’s Board of Directors. Prices obtained from independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Senior floating rate interests generally trade in over-the-counter (“OTC”) markets and are priced through an independent pricing service utilizing independent market quotations from loan dealers or financial institutions. Generally, a Fund may use fair valuation in regard to fixed income positions when the Fund holds defaulted or distressed investments or investments in a company in which a reorganization is pending. Short-term investments maturing in 60 days or less are generally valued at amortized cost if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term exceeded 60 days.
Exchange traded options, futures and options on futures are valued at the settlement price or last trade price determined by the relevant exchange as of the NYSE Close. If a last trade price is not available, the value will be the mean of the bid and ask prices as of the NYSE Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the bid price as of the NYSE Close. In the case of OTC options and such instruments that do not trade on an exchange, values may be supplied by a pricing
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
service using a formula or other objective method that may take into consideration the style, direction, expiration, strike price, notional value and volatility or other special adjustments.
Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using exchange rates obtained from independent pricing services for calculation of the NAV. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities or other instruments traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the NYSE is closed and the market value may change on days when an investor is not able to purchase, redeem or exchange shares of a Fund.
Foreign currency contracts represent agreements to exchange currencies on specific future dates at predetermined rates. Foreign currency contracts are valued using foreign currency exchange rates and forward rates as provided by an independent pricing service on the Valuation Date.
Investments in open-end mutual funds are valued at the respective NAV of each open-end mutual fund on the Valuation Date. Such open-end mutual funds may use fair value pricing as disclosed in their prospectuses.
Financial instruments for which prices are not available from an independent pricing service may be valued using market quotations obtained from one or more dealers that make markets in the respective financial instrument in accordance with procedures established by the respective Company’s Board of Directors.
U.S. GAAP defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants. The U.S. GAAP fair value measurement standards require disclosure of a fair value hierarchy for each major category of assets and liabilities. Various inputs are used in determining the fair value of each Fund’s investments. These inputs are summarized into three broad hierarchy levels. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:
| | • | | Level 1 – Quoted prices in active markets for identical investments. Level 1 may include exchange traded instruments, such as domestic equities, some foreign equities, options, futures, mutual funds, exchange traded funds, rights and warrants. |
| | • | | Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar investments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 2 may include debt investments that are traded less frequently than exchange traded instruments and which are valued using independent pricing services; foreign equities, which are principally traded on certain foreign markets and are adjusted daily pursuant to a fair value pricing service in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE Close; senior floating rate interests, which are valued using an aggregate of dealer bids; short-term investments, which are valued at amortized cost; and swaps, which are valued based upon the terms of each swap contract. |
| | • | | Level 3 – Significant unobservable inputs that are supported by limited or no market activity. Level 3 may include financial instruments whose values are determined using indicative market quotes or require significant management judgment or estimation. These unobservable valuation inputs may include estimates for current yields, maturity/duration, prepayment speed, and indicative market quotes for comparable investments along with other assumptions relating to credit quality, collateral value, complexity of the investment structure, general market conditions and liquidity. This category may include investments where trading has been halted or there are certain restrictions on trading. While these investments are priced using unobservable inputs, the valuation of these investments reflects the best available data and management believes the prices are a reasonable representation of exit price. |
The Board of Directors of each Company generally reviews and approves the “Procedures for Valuation of Portfolio Investments” at least once a year. These procedures define how investments are to be valued, including the formation and activities of a Valuation Committee. The Valuation Committee, which is chaired by the Company’s Treasurer, is responsible for determining in good faith the fair value of investments when the value cannot be obtained from primary pricing services or alternative sources or if the valuation of an investment as provided by the primary pricing service or alternative source is believed not to reflect the investment’s fair value as of the Valuation Date. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of such Fund’s sub-adviser, as applicable, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of each Company’s Board of Directors. The Audit Committee receives quarterly written reports which include details of all fair-valued investments, including the reason for the fair valuation, and an indication, when possible, of the accuracy of the valuation by disclosing the next
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
available reliable public price quotation or the disposition price of such investments (the “lookback” test). The Board of Directors of each Company then must consider for ratification all of the fair value determinations made during the previous quarter.
Valuation levels are not necessarily indicative of the risk associated with investing in such investments. Individual investments within any of the above mentioned asset classes may be assigned a different hierarchical level than those presented above, as individual circumstances dictate.
For additional information, refer to the Fair Valuation Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.
Following is quantitative information about Level 3 fair value measurements:
Growth Opportunities HLS Fund
| | | | | | | | | | |
Security Type / Valuation Technique* | | Unobservable Input | | Input Value(s)
Range | | | Fair Value at
June 30, 2016 | |
Common Stock | | | | | | | | | | |
Model | | EV/EBITDA | | | 2.35x to 5.6x | | | $ | 2,172,779 | |
Model | | EV/Estimated Revenue | | | 8.5x to 17.1x | | | | 5,181,567 | |
Cost | | Recent Trade Price | | | $50.19 to $102.43 | | | | 3,395,601 | |
| | | |
Convertible Bonds | | | | | | | | | | |
Cost | | Recent Trade Price | | | $100 | | | | 705,896 | |
| | | |
Preferred Stock | | | | | | | | | | |
Model | | EV/Estimated Revenue | | | 0.9x to 11.7x | | | | 53,159,487 | |
Cost | | Recent Trade Price | | | $11.87 to $50.19 | | | | 54,885,980 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 119,501,310 | |
| | | | | | | | | | |
| | * | The Valuation Committee may consider applying appropriate valuation methodologies, which may include, but are not limited to: valuation through use of a “proxy” investment or index, discount from market value of a similar freely traded investment, a discount or premium which may consider market or regulatory sentiment (or other subjective determinations, inputs or factors not otherwise quantifiable), and any other appropriate method. |
Small Company HLS Fund
| | | | | | | | | | |
Security Type / Valuation Technique* | | Unobservable Input | | Input Value(s)
Range | | | Fair Value at
June 30, 2016 | |
Common Stock | | | | | | | | | | |
Model | | EV/EBITDA | | | 8.5x to 17.1x | | | $ | 5,754,268 | |
Model | | EV/Estimated Revenue | | | 5.54x to 8.43x | | | | 4,765,580 | |
Cost | | Recent Trade Price | | | $4.40 | | | | 3,079,840 | |
| | | |
Preferred Stock | | | | | | | | | | |
Model | | EV/Estimated Revenue | | | 1.5x to 8.45x | | | | 24,948,131 | |
Cost | | Recent Trade Price | | | $4.40 | | | | 5,767,067 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 44,314,886 | |
| | | | | | | | | | |
| | * | The Valuation Committee may consider applying appropriate valuation methodologies, which may include, but are not limited to: valuation through use of a “proxy” investment or index, discount from market value of a similar freely traded investment, a discount or premium which may consider market or regulatory sentiment (or other subjective determinations, inputs or factors not otherwise quantifiable), and any other appropriate method. |
| | c) | Investment Transactions and Investment Income – Investment transactions are recorded as of the trade date (the date the order to buy or sell is executed) for financial reporting purposes. Investments purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Realized gains and losses are determined on the basis of identified cost. |
Trade date for senior floating rate interests purchased in the primary loan market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary loan market is the date on which the transaction is entered into.
Dividend income from domestic securities is accrued on the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, a Fund will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record,
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts, inflation adjustments and additional principal received in-kind in lieu of cash, is accrued on a daily basis. Paydown gains and losses on mortgage related and other asset backed securities are included in interest income in the Statements of Operations, as applicable.
| | d) | Taxes – A Fund may be subject to taxes imposed on realized gains on securities of certain foreign countries in which such Fund invests. The amount of foreign tax expense is included on the accompanying Statements of Operations as a reduction to net realized gain on investments in these securities, if applicable. |
| | e) | Foreign Currency Transactions – Assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the Valuation Date. Purchases and sales of investments, income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. |
A Fund does not isolate that portion of portfolio investment valuation resulting from fluctuations in the foreign currency exchange rates from the fluctuations arising from changes in the market prices of investments held. Exchange rate 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.
| | f) | Joint Trading Account – A Fund may invest cash balances into a joint trading account that may be invested in one or more repurchase agreements. |
| | g) | Fund Share Valuation and Dividend Distributions to Shareholders – Orders for each Fund’s shares are executed in accordance with the investment instructions of the contract holders and plan participants. The NAV of each Fund’s shares is determined as of the close of business on each business day of the Exchange (see Note 2(a)). The NAV is determined separately for each class of shares of a Fund by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding. Each class of shares offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund. |
Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV 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 Funds are not open for business, are priced at the next determined NAV.
Dividends are declared pursuant to a policy adopted by the respective Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund is to pay dividends from net investment income and realized gains, if any, at least once a year.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts notes).
| 3. | Securities and Other Investments: |
| | a) | Repurchase Agreements – A repurchase agreement is an agreement by which a counterparty agrees to sell an investment and agrees to repurchase the investment sold from the buyer at a mutually agreed upon time and price. During the period of the repurchase agreement, the counterparty will deposit cash and or securities in a third party custodial account to serve as collateral. At the time a Fund enters into a repurchase agreement, the value of the underlying collateral, including accrued interest, will be equal to or exceed the value of the repurchase agreement. Repurchase agreements expose a Fund to counterparty risk – that is, the risk that the counterparty will not fulfill its obligations. To minimize counterparty risk, the investments that serve to collateralize the repurchase agreement are held by a Fund’s custodian in book entry or physical form in the custodial account of the Fund or in a third party custodial account. Repurchase agreements are valued at cost plus accrued interest, which approximates fair value. Repurchase |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | agreements have master netting arrangements which allow a Fund to offset amounts owed to a counterparty with amounts owed by the counterparty, including any collateral. Upon an event of default under a master repurchase agreement, the nondefaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the master repurchase agreement does not result in an offset of reported amounts of assets and liabilities in the Statements of Assets and Liabilities across transactions between a Fund and the applicable counterparty. See each Fund’s Schedule of Investments, if applicable, for outstanding repurchase agreements and related collateral as of June 30, 2016. |
| | b) | Illiquid and Restricted Investments – Each Fund is permitted to invest up to 15% of its net assets in illiquid investments. Illiquid investments are those that may not be sold or disposed of in the ordinary course of business within seven days, at approximately the price used to determine a Fund’s NAV. A Fund may not be able to sell illiquid investments when its sub-adviser considers it desirable to do so or may have to sell such investments at a price that is lower than the price that could be obtained if the investments were more liquid. A sale of illiquid investments may require more time and may result in higher dealer discounts and other selling expenses than does the sale of those that are liquid. Illiquid investments also may be more difficult to value due to the unavailability of reliable market quotations for such investments, and an investment in them may have an adverse impact on a Fund’s NAV. Each Fund may also purchase certain restricted investments that can only be resold to certain qualified investors and may be determined to be liquid pursuant to policies and guidelines established by the respective Company’s Board of Directors. See each Fund’s Schedule of Investments, if applicable, for illiquid or restricted investments as of June 30, 2016. |
| | c) | Investments Purchased on a When-Issued or Delayed-Delivery Basis – Delivery and payment for investments that have been purchased by a Fund on a forward commitment, or when-issued or delayed-delivery basis, take place beyond the customary settlement period. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery investments before they are delivered, which may result in a realized gain or loss. During this period, such investments are subject to market fluctuations, and a Fund identifies investments segregated in its records with a value at least equal to the amount of the commitment. See each Fund’s Schedule of Investments, if applicable, for when-issued or delayed-delivery investments as of June 30, 2016. |
In connection with a Fund’s ability to purchase investments on a when-issued or forward commitment basis, the Fund may enter into to-be announced (“TBA”) commitments. TBA commitments are forward agreements for the purchase or sale of mortgage backed securities for a fixed price, with payment and delivery on an agreed-upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. Although a Fund may enter into TBA commitments with the intention of acquiring or delivering securities for its portfolio, the Fund can extend the settlement date, roll the transaction, or dispose of a commitment prior to settlement if deemed appropriate to do so. If the TBA commitment is closed through the acquisition of an offsetting TBA commitment, a Fund realizes a gain or loss. In a TBA roll transaction, a Fund generally purchases or sells the initial TBA commitment prior to the agreed upon settlement date and enters into a new TBA commitment for future delivery or receipt of the mortgage backed securities. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.
| | d) | Senior Floating Rate Interests – Certain Funds may invest in senior floating rate interests. Senior floating rate interests hold the most senior position in the capital structure of a business entity (the “Borrower”), are typically secured by specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and stockholders of the Borrower. Senior floating rate interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. A Fund may invest in multiple series or tranches of a senior floating rate interest, which may have varying terms and carry different associated risks. A Fund may also enter into unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments may include revolving credit facilities, which may obligate the Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full. A Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a senior floating rate interest. In certain circumstances, a Fund may receive various fees upon the restructure of a senior floating rate interest by a borrower. Fees earned/paid may be recorded as a component of income or realized gain/loss in the Statements of Operations. |
Senior floating rate interests are typically rated below-investment-grade, which suggests they are more likely to default and generally pay higher interest rates than investment-grade loans. A default could lead to non-payment of income, which would result in a reduction of income to a Fund, and there can be no assurance that the liquidation of any collateral would satisfy the Borrower’s
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated. See each Fund’s Schedule of Investments, if applicable, for outstanding senior floating rate interests as of June 30, 2016.
| | e) | Mortgage Related and Other Asset Backed Securities – Certain Funds may invest in mortgage related and other asset backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage backed securities, stripped mortgage backed securities, asset backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Mortgage related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. These securities provide a monthly payment that consists of both interest and principal payments. Interest payments may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage related securities is guaranteed by the full faith and credit of the United States Government. Mortgage related and other asset backed securities created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. See each Fund’s Schedule of Investments, if applicable, for mortgage related and other asset backed securities as of June 30, 2016. |
| | f) | Inflation Indexed Bonds – Certain Funds may invest in inflation indexed bonds. Inflation indexed bonds are fixed income investments whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive the principal amount until maturity. See each Fund’s Schedule of Investments, if applicable, for inflation indexed bonds as of June 30, 2016. |
| 4. | Financial Derivative Instruments: |
The following disclosures contain information on how and why a Fund uses derivative instruments, the credit-risk-related contingent features in certain derivative instruments, and how derivative instruments affect a Fund’s financial position and results of operations. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized gains and losses and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of derivative contract, are included in the following Additional Derivative Instrument Information footnote. The derivative instruments outstanding as of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.
| | a) | Foreign Currency Contracts – A Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts are used to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled. |
Foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. In addition, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of the contracts and from unanticipated movements in the value of the foreign currencies relative to the U.S. dollar. See each Fund’s Schedule of Investments, if applicable, for outstanding foreign currency contracts as of June 30, 2016.
| | b) | Futures Contracts – A Fund may enter into futures contracts. A futures contract is an agreement between two parties to buy or sell an asset at a set price on a future date. A Fund uses futures contracts to manage or obtain exposure to the investment markets, commodities, or movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the investments held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Upon entering into a futures contract, a Fund is required to deposit with a futures commission merchant (“FCM”) an amount of cash or U.S. Government or Agency Obligations in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily at the most recent settlement price reported by an exchange on |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | which, over time, they are traded most extensively, and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by a Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities; however, a Fund seeks to reduce this risk through the use of an FCM. See each Fund’s Schedule of Investments, if applicable, for outstanding futures contracts as of June 30, 2016. |
| | c) | Options Contracts – An option contract is a contract sold by one party to another party that offers the buyer the right, but not the obligation, to buy (call) or sell (put) an investment or other financial asset at an agreed-upon price during a specific period of time or on a specific date. Option contracts are either privately negotiated in the over-the-counter market (“OTC options”) or executed in a registered exchange (“exchange traded options”). A Fund may write (sell) covered call and put options on futures, swaps (“swaptions”), securities, commodities or currencies. “Covered” means that so long as a Fund is obligated as the writer of an option, it will own either the underlying investments or currency or an option to purchase the same underlying investments or currency having an expiration date of the covered option and an exercise price equal to or less than the exercise price of the covered option, or will pledge cash or other liquid investments having a value equal to or greater than the fluctuating market value of the option investment or currency. Writing put options increases a Fund’s exposure to the underlying instrument. Writing call options decreases a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset amounts paid on the underlying futures, swap, investment or currency transaction to determine the realized gain or loss. A Fund, as a writer of an option, has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market. A Fund may also purchase put and call options. Purchasing call options increases a Fund’s exposure to the underlying instrument. Purchasing put options decreases a Fund’s exposure to the underlying instrument. A Fund pays a premium, which is included on the Fund’s Statements of Assets and Liabilities as an investment and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is generally limited to the premium paid. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss. Entering into over-the-counter options also exposes a Fund to counterparty risk. Counterparty risk is the possibility that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements. |
See each Fund’s Schedule of Investments, if applicable, for outstanding option contracts as of June 30, 2016. Transactions involving written option contracts during the six-month period ended June 30, 2016, are summarized below:
Capital Appreciation HLS Fund
Options Activity During the Six-Month Period Ended June 30, 2016
| | | | | | | | |
Put Options Written During the Period | | Number of
Contracts | | | Premium
Amounts | |
Beginning of period | | | — | | | $ | — | |
Written | | | 4,421 | | | | 780,877 | |
Expired | | | — | | | | — | |
Closed | | | (4,421 | ) | | | (780,877) | |
Exercised | | | — | | | | — | |
| | | | | | | | |
End of Period | | | — | | | $ | — | |
| | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
| Total Return Bond HLS Fund | | | | | | | | |
| Options Activity During the Six-Month Period Ended June 30, 2016 | | | | | | | | |
| | |
Call Options Written During the Period | | Number of
Contracts | | | Premium
Amounts | |
Beginning of period | | | 69,695,000 | | | $ | 207,343 | |
Written | | | 1,211,458,000 | | | | 3,752,514 | |
Expired | | | (478,249,000 | ) | | | (1,402,710 | ) |
Closed | | | — | | | | — | |
Exercised | | | (604,109,000 | ) | | | (2,097,930 | ) |
| | | | | | | | |
End of Period | | | 198,795,000 | | | $ | 459,217 | |
| | | | | | | | |
| | |
Put Options Written During the Period | | Number of
Contracts | | | Premium
Amounts | |
Beginning of period | | | 69,690,000 | | | $ | 137,638 | |
Written | | | 1,231,033,000 | | | | 3,385,982 | |
Expired | | | (609,672,000 | ) | | | (1,565,241 | ) |
Closed | | | (14,012,000 | ) | | | (388,553) | |
Exercised | | | (478,244,000 | ) | | | (1,119,555 | ) |
| | | | | | | | |
End of Period | | | 198,795,000 | | | $ | 450,271 | |
| | | | | | | | |
| | d) | Swap Contracts – A Fund may invest in swap contracts. Swap contracts are agreements to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap contracts are either privately negotiated in the over-the-counter market (“OTC swaps”) or cleared in a central clearing house (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency. |
Swaps are valued based on custom valuations furnished by an independent pricing service. Swaps for which prices are not available from an independent pricing service are valued in accordance with procedures established by the respective Company’s Board of Directors. Changes in market value, if any, are reflected as a component of net changes in unrealized appreciation or depreciation on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value (“variation margin”) on the Statements of Assets and Liabilities. Realized gains or losses on centrally cleared swaps are recorded upon the termination of the swap. OTC swap payments received or paid at the beginning of the measurement period are reflected as such on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap contract to compensate for differences between the stated terms of the swap contract and prevailing market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors). These upfront premiums are recorded as realized gains or losses on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as a realized gain or loss on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statements of Operations.
Entering into these contracts involves, to varying degrees, elements of liquidation, counterparty, credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these contracts, that the counterparty to the contracts may default on its obligation to perform or disagree as to the meaning of contractual terms in the contracts, and that there may be unfavorable changes in market conditions (credit spreads, currency exchange rates, interest rates and other relevant factors).
A Fund’s maximum risk of loss from counterparty risk for OTC swaps is the net value of the discounted cash flows to be received from the counterparty over the contract’s remaining life, and current market value, to the extent that amount is positive. The risk is mitigated
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
by having a master netting arrangement between a Fund and the counterparty, which allows for the netting of payments made or received (although such amounts are presented on a gross basis within the Statements of Assets and Liabilities, as applicable) as well as the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. In a centrally cleared swap, while a Fund enters into an agreement with a clearing broker to execute contracts with a counterparty, the performance of the swap is guaranteed by the central clearinghouse, which reduces the Fund’s exposure to counterparty risk. The Fund is still exposed to the counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its participants through the use of mandatory margin requirements, daily cash settlements and other procedures. Likewise, the clearing broker reduces its risk through margin requirements and required segregation of customer balances.
Credit Default Swap Contracts – The credit default swap market allows a Fund to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.
Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statements of Operations. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of certain events. Although specified events are contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of six-month period-end are disclosed in the notes to the Schedules of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. See each Fund’s Schedule of Investments, if applicable, for outstanding credit default swap contracts as of June 30, 2016.
Interest Rate Swap Contracts – Certain Funds are subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The value of fixed rate bonds may decrease if interest rates rise. To hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap contracts. In a typical interest rate swap, one party agrees to make regular payments equal to a floating interest rate, based on a specified interest rate or benchmark (e.g. London Interbank Offered Rate (“LIBOR”)), multiplied by a notional amount, in return for payments equal to a fixed rate multiplied by the same amount, for a specific period of time. The net interest received or paid on interest rate swap contracts is recorded as a realized gain or loss. Interest rate swaps are marked to market daily and the change, if any, is recorded as an unrealized gain or loss in the Statements of Operations. When the interest rate swap contract is terminated early, a Fund records a realized gain or loss equal to the difference between the current market value and the upfront premium or cost.
If an interest rate swap contract provides for payments in different currencies, the parties might agree to exchange the notional amount as well. Interest rate swaps may also depend on other prices or rates, such as the value of an index. The risks of interest rate swaps include changes in market conditions which will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligations under the contract. A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. See each Fund’s Schedule of Investments, if applicable, for outstanding interest rate swap contracts as of June 30, 2016.
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
Spreadlock Swap Contracts – Certain Funds may invest in spreadlock swap contracts. These contracts involve commitments to pay or receive a settlement amount calculated as the spread difference between two interest rate curves and a fixed spread at a specific forward date determined at the beginning of the contract. Settlement amounts paid or received are recorded as a realized gain or loss on the Statements of Operations at the determination date. See each Fund’s Schedule of Investments, if applicable, for outstanding speadlock swap contracts as of June 30, 2016.
Cross Currency Swaps – Certain Funds may enter into cross currency swap agreements to gain or mitigate exposure to currency risk. A cross currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Cross currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a cross currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Fund may have contractual remedies pursuant to the agreements related to the transaction. See each Fund’s Schedule of Investments, if applicable, for outstanding cross currency swap contracts as of June 30, 2016.
| | e) | Additional Derivative Instrument Information: |
Balanced HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(1) | | $ | 28,182 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 28,182 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 28,182 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 28,182 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | |
Net realized gain (loss) on futures contracts | | $ | 646,433 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 646,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 646,433 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 646,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | 89,028 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 89,028 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 89,028 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 89,028 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Futures Contracts Long | | | 100 | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
Capital Appreciation HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on foreign currency contracts | | $ | — | | | $ | 1,306,706 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,306,706 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 1,306,706 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,306,706 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | |
Net realized gain (loss) on written options contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 538,384 | | | $ | — | | | $ | — | | | $ | 538,384 | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (2,010,785 | ) | | | — | | | | — | | | | — | | | | — | | | | (2,010,785 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (2,010,785 | ) | | $ | — | | | $ | 538,384 | | | $ | — | | | $ | — | | | $ | (1,472,401 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | $ | — | | | $ | 523,681 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 523,681 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 523,681 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 523,681 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Written Options Contracts | | | (4,421 | ) |
Foreign Currency Contracts Long | | $ | 17,470,263 | |
Foreign Currency Contracts Short | | $ | 68,583,879 | |
Disciplined Equity HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(1) | | $ | — | | | $ | — | | | $ | — | | | $ | 34,263 | | | $ | — | | | $ | — | | | $ | 34,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | 34,263 | | | $ | — | | | $ | — | | | $ | 34,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | |
Net realized gain (loss) on futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | (421,814 | ) | | $ | — | | | $ | — | | | $ | (421,814 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | (421,814 | ) | | $ | — | | | $ | — | | | $ | (421,814 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | (247,496 | ) | | $ | — | | | $ | — | | | $ | (247,496 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | (247,496 | ) | | $ | — | | | $ | — | | | $ | (247,496) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Futures Contracts Long | | | 91 | |
High Yield HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on swap contracts(2) | | $ | — | | | $ | — | | | $ | 128,831 | | | $ | — | | | $ | — | | | $ | — | | | $ | 128,831 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | 128,831 | | | $ | — | | | $ | — | | | $ | — | | | $ | 128,831 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | $ | — | | | $ | 44,871 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 44,871 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 44,871 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 44,871 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | |
Net realized gain (loss) on swap contracts | | $ | — | | | $ | — | | | $ | 186,528 | | | $ | — | | | $ | — | | | $ | — | | | $ | 186,528 | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (81,766 | ) | | | — | | | | — | | | | — | | | | — | | | | (81,766 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (81,766 | ) | | $ | 186,528 | | | $ | — | | | $ | — | | | $ | — | | | $ | 104,762 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | |
Net change in unrealized appreciation (depreciation) of swap contracts | | $ | — | | | $ | — | | | $ | 185,354 | | | $ | — | | | $ | — | | | $ | — | | | $ | 185,354 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (108,701 | ) | | | — | | | | — | | | | — | | | | — | | | | (108,701 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | | $ (108,701 | ) | | $ | 185,354 | | | $ | — | | | $ | — | | | $ | — | | | $ | 76,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Swap Contracts | | $ | 7,678,333 | |
Foreign Currency Contracts Short | | $ | 6,498,725 | |
Total Return Bond HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(1) | | $ | 14,946,006 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 14,946,006 | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 1,210,586 | | | | — | | | | — | | | | — | | | | — | | | | 1,210,586 | |
Unrealized appreciation on swap contracts(2) | | | — | | | | — | | | | 6,614,450 | | | | — | | | | — | | | | — | | | | 6,614,450 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 14,946,006 | | | $ | 1,210,586 | | | $ | 6,614,450 | | | $ | — | | | $ | — | | | $ | — | | | $ | 22,771,042 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 7,134,935 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,134,935 | |
Unrealized depreciation on foreign currency contracts | | | — | | | | 3,778,853 | | | | — | | | | — | | | | — | | | | — | | | | 3,778,853 | |
Written options, market value | | | 755,457 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 755,457 | |
Unrealized depreciation on swap contracts(2) | | | 3,329,827 | | | | — | | | | 12,744,925 | | | | — | | | | — | | | | — | | | | 16,074,752 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,220,219 | | | $ | 3,778,853 | | | $ | 12,744,925 | | | $ | — | | | $ | — | | | $ | — | | | $ | 27,743,997 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | |
Net realized gain (loss) on purchased options contracts | | $ | — | | | $ | 222,017 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 222,017 | |
Net realized gain (loss) on futures contracts | | | 7,003,860 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 7,003,860 | |
Net realized gain (loss) on written options contracts | | | 2,956,102 | | | | 47,243 | | | | — | | | | — | | | | — | | | | — | | | | 3,003,345 | |
Net realized gain (loss) on swap contracts | | | (2,023,309 | ) | | | (8,822 | ) | | | (12,902,134 | ) | | | — | | | | — | | | | — | | | | (14,934,265 | ) |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (1,995,342 | ) | | | — | | | | — | | | | — | | | | — | | | | (1,995,342 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,936,653 | | | $ | (1,734,904 | ) | | $ | (12,902,134 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (6,700,385 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of investments in purchased options contracts | | $ | — | | | $ | 12,054 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,054 | |
Net change in unrealized appreciation (depreciation) of futures contracts | | | 8,012,536 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 8,012,536 | |
Net change in unrealized appreciation (depreciation) of written options contracts | | | 161,003 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 161,003 | |
Net change in unrealized appreciation (depreciation) of swap contracts | | | (3,488,729 | ) | | | 85,865 | | | | (1,426,641 | ) | | | — | | | | — | | | | — | | | | (4,829,505 | ) |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (3,015,699 | ) | | | — | | | | — | | | | — | | | | — | | | | (3,015,699 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,684,810 | | | $ | (2,917,780 | ) | | $ | (1,426,641 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 340,389 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Purchased Options Contracts | | | 64,936,026 | |
Futures Contracts Long | | | 5,643 | |
Futures Contracts Short | | | (2,950 | ) |
Written Options Contracts | | | (485,695,800 | ) |
Swap Contracts | | $ | 857,061,923 | |
Foreign Currency Contracts Long | | $ | 55,504,846 | |
Foreign Currency Contracts Short | | $ | 134,934,086 | |
U.S. Government Securities HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of June 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(1) | | $ | 1,332,358 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,332,358 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,332,358 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,332,358 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 225,073 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 225,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 225,073 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 225,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the period ended June 30, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | |
Net realized gain (loss) on futures contracts | | $ | 1,071,110 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,071,110 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,071,110 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,071,110 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | 1,228,819 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,228,819 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,228,819 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,228,819 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the period ended June 30, 2016, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts or
Face Amount | |
Futures Contracts Long | | | 282 | |
Futures Contracts Short | | | (193 | ) |
| | (1) | Cumulative appreciation (depreciation) on futures contracts is disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities. |
| | (2) | Statements of Assets and Liabilities location: Cumulative appreciation (depreciation) on centrally cleared swaps, if applicable, is disclosed within the Schedule of Investments. Only the current day’s variation margin, if any, are reported within the Statements of Assets and Liabilities. OTC swaps are reported within the Statement of Assets and Liabilities within Unrealized appreciation (depreciation) on OTC swap contracts, if applicable. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | f) | Balance Sheet Offsetting Information – Set forth below are tables which disclose both gross information and net information about instruments and transactions eligible for offset in the financial statements, and instruments and transactions that are subject to a master netting arrangement, as well as amounts related to margin, reflected as financial collateral (including cash collateral), held at clearing brokers, counterparties and a Fund’s custodian. The master netting arrangements allow the clearing brokers to net any collateral held in or on behalf of a Fund, or liabilities or payment obligations of the clearing brokers to the Fund, against any liabilities or payment obligations of the Fund to the clearing brokers. A Fund is required to deposit financial collateral (including cash collateral) at the Fund’s custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy. |
The following tables present the Funds’ derivative assets and liabilities, presented on a gross basis as no amounts are netted within the Statements of Assets and Liabilities, by counterparty net of amounts available for offset under a master netting agreement or similar agreement (“MNA”) and net of the related collateral received/pledged by the Funds as of June 30, 2016:
| | | | | | | | |
Balanced HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 28,182 | | | $ | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 28,182 | | | | — | |
| | | | | | | | |
Derivatives not subject to a MNA | | | (28,182 | ) | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
| | | | | | | | |
Capital Appreciation HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | 1,306,706 | | | $ | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 1,306,706 | | | | — | |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 1,306,706 | | | $ | — | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital Appreciation HLS Fund | |
Counterparty | | Gross Amount of
Assets | | | Financial
Instruments
and
Derivatives
Available for
Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of
Assets | |
Citibank NA | | $ | 1,117 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,117 | |
Commonwealth Bank of Australia | | | 885,123 | | | | — | | | | — | | | | — | | | | 885,123 | |
JP Morgan Chase & Co. | | | 420,466 | | | | — | | | | — | | | | — | | | | 420,466 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,306,706 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,306,706 | |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
Disciplined Equity HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 34,263 | | | $ | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 34,263 | | | | — | |
| | | | | | | | |
Derivatives not subject to a MNA | | | (34,263 | ) | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
| | | | | | | | |
High Yield HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | — | | | $ | (44,871 | ) |
Swap contracts | | | 246,391 | | | | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 246,391 | | | | (44,871 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (246,391 | ) | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | (44,871 | ) |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount of
Liabilities | | | Financial
Instruments
and
Derivatives
Available for
Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of
Liabilities | |
JP Morgan Chase & Co. | | $ | (44,871 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (44,871 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
| | | | | | | | |
Total Return Bond HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | 1,210,586 | | | $ | (3,778,853 | ) |
Futures contracts | | | 14,946,006 | | | | (7,134,935 | ) |
Swap contracts | | | 24,023,037 | | | | (31,154,875 | ) |
Written options | | | — | | | | (755,457 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 40,179,629 | | | | (42,824,120 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (14,946,006 | ) | | | 15,574,972 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 25,233,623 | | | $ | (27,249,148 | ) |
| | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
Total Return Bond HLS Fund | |
Counterparty | | Gross Amount of
Assets | | | Financial
Instruments
and
Derivatives
Available for
Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of
Assets | |
Banc of America Securities LLC | | $ | 2,985,566 | | | $ | (2,985,566 | ) | | $ | — | | | $ | — | | | $ | — | |
Bank of Montreal | | | 6,135 | | | | — | | | | — | | | | — | | | | 6,135 | |
Barclays | | | 4,746,430 | | | | (2,842,737 | ) | | | — | | | | (1,903,693 | ) | | | — | |
Citibank NA | | | 847,755 | | | | (259,103 | ) | | | — | | | | (321,000 | ) | | | 267,652 | |
Credit Agricle | | | 117,237 | | | | (107,229 | ) | | | — | | | | — | | | | 10,008 | |
Credit Suisse International | | | 3,584,103 | | | | (3,584,103 | ) | | | — | | | | — | | | | — | |
Deutsche Bank Securities, Inc. | | | 1,667,919 | | | | (115,762 | ) | | | — | | | | (1,552,157 | ) | | | — | |
Goldman Sachs & Co. | | | 5,684,837 | | | | (5,684,837 | ) | | | — | | | | — | | | | — | |
JP Morgan Chase & Co. | | | 608,768 | | | | (608,768 | ) | | | — | | | | — | | | | — | |
Morgan Stanley | | | 4,650,107 | | | | (3,481,175 | ) | | | — | | | | (1,168,932 | ) | | | — | |
RBC Dominion Securities, Inc. | | | 277,998 | | | | — | | | | — | | | | — | | | | 277,998 | |
UBS AG | | | 56,768 | | | | (56,768 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 25,233,623 | | | $ | (19,726,048 | ) | | $ | — | | | $ | (4,945,782 | ) | | $ | 561,793 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Counterparty | | Gross Amount
of
Liabilities | | | Financial
Instruments
and
Derivatives
Available for
Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of
Liabilities | |
Banc of America Securities LLC | | $ | (4,137,760 | ) | | $ | 2,985,566 | | | $ | 1,152,194 | | | $ | — | | | $ | — | |
Barclays | | | (2,842,737 | ) | | | 2,842,737 | | | | — | | | | — | | | | — | |
BNP Paribas Securities Services | | | (242,494 | ) | | | — | | | | — | | | | — | | | | (242,494 | ) |
Citibank NA | | | (259,103 | ) | | | 259,103 | | | | — | | | | — | | | | — | |
Credit Agricole | | | (107,229 | ) | | | 107,229 | | | | — | | | | — | | | | — | |
Credit Suisse International | | | (5,177,578 | ) | | | 3,584,103 | | | | 1,536,061 | | | | — | | | | (57,414 | ) |
Deutsche Bank Securities, Inc. | | | (115,762 | ) | | | 115,762 | | | | — | | | | — | | | | — | |
Goldman Sachs & Co. | | | (5,768,249 | ) | | | 5,684,837 | | | | 83,412 | | | | — | | | | — | |
HSBC Bank USA | | | (59,134 | ) | | | — | | | | — | | | | — | | | | (59,134 | ) |
JP Morgan Chase & Co. | | | (1,463,709 | ) | | | 608,768 | | | | — | | | | — | | | | (854,941 | ) |
Merrill Lynch International | | | (2,739,274 | ) | | | — | | | | 2,739,274 | | | | — | | | | — | |
Morgan Stanley | | | (3,481,175 | ) | | | 3,481,175 | | | | — | | | | — | | | | — | |
Standard Chartered Bank | | | (31,684 | ) | | | — | | | | — | | | | — | | | | (31,684 | ) |
State Street Global Markets LLC | | | (48,970 | ) | | | — | | | | — | | | | — | | | | (48,970 | ) |
UBS AG | | | (774,290 | ) | | | 56,768 | | | | 717,522 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (27,249,148 | ) | | $ | 19,726,048 | | | $ | 6,228,463 | | | $ | — | | | $ | (1,294,637 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
U.S. Government Securities HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 1,332,358 | | | $ | (225,073 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 1,332,358 | | | | (225,073 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (1,332,358 | ) | | | 225,073 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
The market values of equity securities, such as common stocks and preferred stocks, or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The market value of equity securities may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.
Credit risk depends largely on the perceived financial health of bond issuers. In general, the credit rating is inversely related to the credit risk of the issuer. Higher rated bonds generally are deemed to have less credit risk, while lower or unrated bonds are deemed to have higher risk of default. The share price, yield and total return of a fund that holds securities with higher credit risk may be more volatile than those of a fund that holds bonds with lower credit risk. Similar to credit risk, a Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which a Fund has unsettled or open transactions will default.
Certain investments held by a Fund expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, extension and foreign currency risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by a Fund are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Senior floating rate interests and securities subject to prepayment and extension risk generally offer less potential for gains when interest rates decline. Rising interest rates may cause prepayments to occur at a slower than expected rate, thereby effectively lengthening the maturity of the security and making the security more sensitive to interest rate changes. Prepayment and extension risk are major risks of mortgage backed securities, senior floating rate interests and certain asset backed securities. For certain asset backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.
If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency (U.S. dollars) of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities, such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Fund’s investments in foreign currency denominated securities may reduce the returns, if applicable, of the Fund.
| | a) | Each Fund intends to continue to qualify as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (“IRC”) by distributing substantially all of its taxable net investment income and net realized capital gains to its shareholders. Each Fund has distributed substantially all of its income and capital gains in prior years, if applicable, and intends to distribute substantially all of its income and capital gains during the calendar year ending December 31, 2016. Accordingly, no provision for federal income or excise taxes has been made in the accompanying financial statements. Distributions from short-term capital gains are treated as ordinary income distributions for federal income tax purposes. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | b) | Net Investment Income (Loss), Net Realized Gains (Losses) and Distributions – Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to Passive Foreign Investment Companies (“PFICs”), Real Estate Investment Trusts (“REITs”), RICs, certain derivatives and partnerships. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. |
| | c) | Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended December 31, 2015 and December 31, 2014 are as follows (as adjusted for dividends payable, if applicable): |
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2015 | | | For the Year Ended
December 31, 2014 | |
Fund | | Ordinary
Income | | | Long-Term
Capital Gains(1) | | | Ordinary
Income | | | Long-Term
Capital Gains | |
Balanced HLS Fund | | $ | 48,113,111 | | | $ | — | | | $ | 50,751,999 | | | $ | — | |
Capital Appreciation HLS Fund | | | 395,608,528 | | | | 941,479,163 | | | | 461,903,895 | | | | 656,128,494 | |
Disciplined Equity HLS Fund | | | 17,696,259 | | | | 226,565,250 | | | | 13,399,464 | | | | — | |
Dividend and Growth HLS Fund | | | 81,615,645 | | | | 497,141,842 | | | | 122,936,965 | | | | 449,915,369 | |
Global Growth HLS Fund | | | 2,330,348 | | | | 21,960,413 | | | | 2,048,503 | | | | — | |
Growth Opportunities HLS Fund | | | 75,794,685 | | | | 207,664,278 | | | | 79,075,442 | | | | 142,877,866 | |
Healthcare HLS Fund | | | 3,015,270 | | | | 46,392,436 | | | | 4,611,295 | | | | 22,145,365 | |
High Yield HLS Fund | | | 24,914,498 | | | | — | | | | 35,154,599 | | | | — | |
International Opportunities HLS Fund | | | 20,056,070 | | | | — | | | | 32,481,494 | | | | — | |
MidCap HLS Fund | | | 13,749,279 | | | | 197,614,796 | | | | 27,985,188 | | | | 174,255,206 | |
MidCap Value HLS Fund | | | 5,717,645 | | | | 55,282,288 | | | | 2,882,001 | | | | 60,291,875 | |
Small Cap Growth HLS Fund | | | 17,138,693 | | | | 81,861,568 | | | | 37,071,356 | | | | 90,138,781 | |
Small Company HLS Fund | | | 48,556,100 | | | | 208,942,541 | | | | 92,815,184 | | | | 157,551,966 | |
Small/Mid Cap Equity HLS Fund | | | 3,215,842 | | | | 15,912,525 | | | | 17,387,669 | | | | 8,210,898 | |
Stock HLS Fund | | | 27,684,514 | | | | — | | | | 30,998,186 | | | | — | |
Total Return Bond HLS Fund | | | 137,524,741 | | | | 23,735,354 | | | | 108,767,110 | | | | — | |
Ultrashort Bond HLS Fund | | | 2,122,089 | | | | 32,791 | | | | — | | | | — | |
U.S. Government Securities HLS Fund | | | 9,323,867 | | | | — | | | | 13,850,021 | | | | — | |
Value HLS Fund | | | 10,774,724 | | | | 15,734,487 | | | | 8,937,977 | | | | — | |
| | (1) | The Funds designate these distributions as long-term capital gain dividends pursuant to IRC Sec. 852(b)(3)(c). |
As of December 31, 2015, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gain | | | Accumulated
Capital and
Other Losses(1) | | | Unrealized
Appreciation
(Depreciation)
on Investments(2) | | | Other
Temporary
Differences | | | Total
Accumulated
Earnings
(Deficit) | |
Balanced HLS Fund | | $ | 28,777,300 | | | $ | — | | | $ | (199,060,323 | ) | | $ | 414,186,774 | | | $ | (919,328 | ) | | $ | 242,984,423 | |
Capital Appreciation HLS Fund | | | 60,409,332 | | | | 481,343,758 | | | | — | | | | 79,606,726 | | | | (19,529 | ) | | | 621,340,287 | |
Disciplined Equity HLS Fund | | | 979,743 | | | | 86,580,392 | | | | — | | | | 156,725,537 | | | | — | | | | 244,285,672 | |
Dividend and Growth HLS Fund | | | 6,152,049 | | | | 368,805,690 | | | | — | | | | 829,947,034 | | | | — | | | | 1,204,904,773 | |
Global Growth HLS Fund | | | 2,754,031 | | | | 46,629,661 | | | | — | | | | 70,383,604 | | | | — | | | | 119,767,296 | |
Growth Opportunities HLS Fund | | | 64,425,206 | | | | 135,652,389 | | | | — | | | | 113,989,953 | | | | — | | | | 314,067,548 | |
Healthcare HLS Fund | | | 17,363,950 | | | | 59,648,395 | | | | — | | | | 95,917,987 | | | | — | | | | 172,930,332 | |
High Yield HLS Fund | | | 20,169,985 | | | | — | | | | (21,720,835 | ) | | | (31,771,888 | ) | | | — | | | | (33,322,738 | ) |
International Opportunities HLS Fund | | | 19,934,876 | | | | — | | | | (381,710,673 | ) | | | 22,077,124 | | | | — | | | | (339,698,673 | ) |
MidCap HLS Fund | | | 777,579 | | | | 179,807,154 | | | | — | | | | 255,385,016 | | | | — | | | | 435,969,749 | |
MidCap Value HLS Fund | | | 3,923,496 | | | | 46,944,471 | | | | — | | | | 45,674,061 | | | | — | | | | 96,542,028 | |
Small Cap Growth HLS Fund | | | 3,672,027 | | | | 47,395,524 | | | | — | | | | 1,865,715 | | | | — | | | | 52,933,266 | |
Small Company HLS Fund | | | — | | | | 96,188,295 | | | | — | | | | (18,572,209 | ) | | | — | | | | 77,616,086 | |
Small/Mid Cap Equity HLS Fund | | | 1,264,380 | | | | 5,626,981 | | | | — | | | | 4,458,376 | | | | — | | | | 11,349,737 | |
Stock HLS Fund | | | 2,566,050 | | | | — | | | | (260,419,400 | ) | | | 289,222,448 | | | | — | | | | 31,369,098 | |
Total Return Bond HLS Fund | | | 65,465,697 | | | | 10,008,875 | | | | — | | | | (56,879,553 | ) | | | (51,434 | ) | | | 18,543,585 | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gain | | | Accumulated
Capital and
Other Losses(1) | | | Unrealized
Appreciation
(Depreciation)
on Investments(2) | | | Other
Temporary
Differences | | | Total
Accumulated
Earnings
(Deficit) | |
Ultrashort Bond HLS Fund | | $ | 2,672,136 | | | $ | — | | | $ | (342,482 | ) | | $ | (2,062,285 | ) | | $ | — | | | $ | 267,369 | |
U.S. Government Securities HLS Fund | | | 9,029,448 | | | | — | | | | (113,784,908 | ) | | | 4,520,682 | | | | (35,947 | ) | | | (100,270,725 | ) |
Value HLS Fund | | | 2,363,777 | | | | 62,514,709 | | | | — | | | | 101,035,496 | | | | — | | | | 165,913,982 | |
| | (1) | The Fund has capital loss carryforwards that are identified in the Capital Loss Carryforward note that follows. |
| | (2) | Differences between book-basis and tax-basis unrealized appreciation (depreciation) may be attributable to the losses deferred due to wash sale adjustments, foreign currency gains and losses, adjustments related to PFICs, REITs, RICs, certain derivatives and partnerships. |
| | d) | Reclassification of Capital Accounts – The Funds may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Funds. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting for such items as foreign currency, PFICs, expiration or utilization of capital loss carryforwards or net operating losses. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Funds’ distributions may be shown in the accompanying Statements of Changes in Net Assets as from undistributed net investment income, from accumulated net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2015, the Funds recorded reclassifications to increase (decrease) the accounts listed below: |
| | | | | | | | | | | | |
Fund | | Capital Stock and
Paid-in-Capital | | | Undistributed Net
Investment
Income (Loss) | | | Accumulated Net
Realized Gain
(Loss) | |
Balanced HLS Fund | | $ | (38,847 | ) | | $ | 14,329,249 | | | $ | (14,290,402 | ) |
Capital Appreciation HLS Fund | | | (1,471 | ) | | | (3,911,419 | ) | | | 3,912,890 | |
Disciplined Equity HLS Fund | | | — | | | | (52,837 | ) | | | 52,837 | |
Dividend and Growth HLS Fund | | | (612 | ) | | | (1,230,255 | ) | | | 1,230,867 | |
Global Growth HLS Fund | | | (54 | ) | | | (56,285 | ) | | | 56,339 | |
Growth Opportunities HLS Fund | | | (2,553 | ) | | | 4,936,891 | | | | (4,934,338 | ) |
Healthcare HLS Fund | | | — | | | | 12,347,386 | | | | (12,347,386 | ) |
High Yield HLS Fund | | | (63,809 | ) | | | (803,701 | ) | | | 867,510 | |
International Opportunities HLS Fund | | | (334 | ) | | | 2,047,088 | | | | (2,046,754 | ) |
MidCap HLS Fund | | | — | | | | (373,741 | ) | | | 373,741 | |
MidCap Value HLS Fund | | | (44 | ) | | | 8,615 | | | | (8,571 | ) |
Small Cap Growth HLS Fund | | | (15 | ) | | | (575,291 | ) | | | 575,306 | |
Small Company HLS Fund | | | (3,170,364 | ) | | | 1,780,496 | | | | 1,389,868 | |
Small/Mid Cap Equity HLS Fund | | | 7 | | | | (445,056 | ) | | | 445,049 | |
Stock HLS Fund | | | — | | | | (804,548 | ) | | | 804,548 | |
Total Return Bond HLS Fund | | | (658,096 | ) | | | (20,560,590 | ) | | | 21,218,686 | |
Ultrashort Bond HLS Fund | | | (31,418 | ) | | | 380,407 | | | | (348,989 | ) |
U.S. Government Securities HLS Fund | | | (8,107 | ) | | | 1,030,384 | | | | (1,022,277 | ) |
Value HLS Fund | | | — | | | | (431,509 | ) | | | 431,509 | |
| | e) | Capital Loss Carryforward – On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which made changes to the capital loss carryforward rules. The changes are effective for taxable years beginning after the date of enactment. Under the Act, funds are permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under prior regulation. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
At December 31, 2015 (tax year end), the capital loss carryforwards for U.S. federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year of Expiration | | | Unlimited
Short-Term
Capital Loss
Carryforward | | | Unlimited
Long-Term
Capital Loss
Carryforward | |
Fund | | 2016 | | | 2017 | | | 2018 | | | |
Balanced HLS Fund | | $ | — | | | $ | 199,060,323 | | | $ | — | | | $ | — | | | $ | — | |
High Yield HLS Fund | | | — | | | | 9,709,378 | | | | — | | | | 5,107,458 | | | | 6,903,999 | |
International Opportunities HLS Fund | | | 94,110,553 | | | | 287,600,120 | | | | — | | | | — | | | | — | |
Stock HLS Fund | | | — | | | | 260,419,400 | | | | — | | | | — | | | | — | |
Ultrashort Bond HLS Fund | | | — | | | | — | | | | — | | | | 102,506 | | | | 239,976 | |
U.S. Government Securities HLS Fund | | | — | | | | 25,163,377 | | | | 58,149,395 | | | | 42,739 | | | | 30,429,397 | |
During the year ended December 31, 2015, the Balanced HLS Fund, International Opportunities HLS Fund, Stock HLS Fund and U.S. Government Securities HLS Fund utilized $211,517,148, $38,493,972, $155,434,160 and $5,276,739 of prior year capital loss carryforwards, respectively.
| | f) | Accounting for Uncertainty in Income Taxes – Pursuant to provisions set forth by U.S. GAAP, Hartford Funds Management Company, LLC (“HFMC”) reviews each Fund’s tax positions for all open tax years. As of June 30, 2016, HFMC had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax obligations relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. HFMC is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax obligations will significantly change in the next twelve months. |
| | a) | Investment Management Agreement – HFMC serves as each Fund’s investment manager. Each Company, on behalf of its respective Funds, has entered into an Investment Management Agreement with HFMC. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). HFMC has overall investment supervisory responsibility for each Fund. In addition, HFMC provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement and Wellington Management performs the daily investment of the assets of each Fund in accordance with the Fund’s investment objective and policies. Each Fund pays a fee to HFMC, a portion of which may be used to compensate Wellington Management. |
The schedule below reflects the rates of compensation paid to HFMC for investment management services rendered as of June 30, 2016; the rates are accrued daily and paid monthly based on each Fund’s average daily net assets, at the following annual rates:
| | |
Fund | | Management Fee Rates |
Balanced HLS Fund | | 0.6800% on first $250 million and; |
| | 0.6550% on next $250 million and; |
| | 0.6450% on next $500 million and; |
| | 0.5950% on next $4 billion and; |
| | 0.5925% on next $5 billion and; |
| | 0.5900% over $10 billion |
| |
Capital Appreciation HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6200% on next $2.5 billion and; |
| | 0.6150% on next $5 billion and; |
| | 0.6100% over $10 billion |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | |
Fund | | Management Fee Rates |
Disciplined Equity HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $4 billion and; |
| | 0.6225% on next $5 billion and; |
| | 0.6200% over $10 billion |
| |
Dividend and Growth HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6200% on next $2.5 billion and; |
| | 0.6150% on next $5 billion and; |
| | 0.6100% over $10 billion |
| |
Global Growth HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $4 billion and; |
| | 0.6225% on next $5 billion and; |
| | 0.6200% over $10 billion |
| |
Growth Opportunities HLS Fund | | 0.7000% on first $100 million and; |
| | 0.6000% on next $4.9 billion and; |
| | 0.5975% on next $5 billion and; |
| | 0.5950% over $10 billion |
| |
Healthcare HLS Fund | | 0.8500% on first $250 million and; |
| | 0.8000% on next $250 million and; |
| | 0.7500% on next $4.5 billion and; |
| | 0.7475% on next $5 billion and; |
| | 0.7450% over $10 billion |
| |
High Yield HLS Fund | | 0.7000% on first $500 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6150% on next $2.5 billion and; |
| | 0.6050% on next $5 billion and; |
| | 0.5950% over $10 billion |
| |
International Opportunities HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6200% on next $2.5 billion and; |
| | 0.6150% on next $5 billion and; |
| | 0.6100% over $10 billion |
| |
MidCap HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $4 billion and; |
| | 0.6225% on next $5 billion and; |
| | 0.6200% over $10 billion |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | |
Fund | | Management Fee Rates |
MidCap Value HLS Fund | | 0.8000% on first $500 million and; |
| | 0.7250% on next $500 million and; |
| | 0.6750% on next $1.5 billion and; |
| | 0.6700% on next $2.5 billion and; |
| | 0.6650% on next $5 billion and; |
| | 0.6600% over $10 billion |
| |
Small Cap Growth HLS Fund | | 0.7000% on first $100 million and; |
| | 0.6000% on next $4.9 billion and; |
| | 0.5800% on next $5 billion and; |
| | 0.5700% over $10 billion |
| |
Small Company HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6000% on next $500 million and; |
| | 0.5500% on next $3.5 billion and; |
| | 0.5300% on next $5 billion and; |
| | 0.5200% over $10 billion |
| |
Small/Mid Cap Equity HLS Fund | | 0.8000% on first $500 million and; |
| | 0.7500% on next $500 million and; |
| | 0.7000% on next $2 billion and; |
| | 0.6900% on next $2 billion and; |
| | 0.6800% on next $5 billion and; |
| | 0.6700% over $10 billion |
| |
Stock HLS Fund | | 0.5250% on first $250 million and; |
| | 0.5000% on next $250 million and; |
| | 0.4750% on next $500 million and; |
| | 0.4500% on next $4 billion and; |
| | 0.4475% on next $5 billion and; |
| | 0.4450% over $10 billion |
| |
Total Return Bond HLS Fund | | 0.5250% on first $250 million and; |
| | 0.5000% on next $250 million and; |
| | 0.4750% on next $500 million and; |
| | 0.4500% on next $1.5 billion and; |
| | 0.4450% on next $2.5 billion and; |
| | 0.4300% on next $5 billion and; |
| | 0.4200% over $10 billion |
| |
Ultrashort Bond HLS Fund | | 0.4000% on first $5 billion and; |
| | 0.3800% on next $5 billion and; |
| | 0.3700% over $10 billion |
| |
U.S. Government Securities HLS Fund | | 0.4500% on first $500 million and; |
| | 0.4450% on next $500 million and; |
| | 0.4400% on next $1.5 billion and; |
| | 0.4350% on next $2.5 billion and; |
| | 0.4300% on next $5 billion and; |
| | 0.4200% over $10 billion |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | |
Fund | | Management Fee Rates |
Value HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6200% on next $2.5 billion and; |
| | 0.6150% on next $5 billion and; |
| | 0.6100% over $10 billion |
HFMC contractually agreed to waive investment management fees of 0.02% of average daily net assets until December 31, 2016, for the Balanced HLS Fund.
| | b) | Accounting Services Agreement – Pursuant to the Fund Accounting Agreement between HFMC and each Company, on behalf of its respective Funds, HFMC provides accounting services to each Fund and receives monthly compensation based on each Fund’s average daily net assets at the rates set forth below. Each Fund’s accounting services fees are accrued daily and paid monthly. |
| | |
Fund | | Accounting Services Fee Rates |
Balanced HLS Fund | | 0.016% on first $5 billion and; |
| | 0.013% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
Capital Appreciation HLS Fund | | 0.018% on first $5 billion and; |
| | 0.014% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
Disciplined Equity HLS Fund | | 0.012% on first $5 billion and; |
| | 0.010% over $5 billion |
| |
Dividend and Growth HLS Fund | | 0.012% on first $5 billion and; |
| | 0.010% over $5 billion |
| |
Global Growth HLS Fund | | 0.014% on first $5 billion and; |
| | 0.012% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
Growth Opportunities HLS Fund | | 0.010% on all assets |
| |
Healthcare HLS Fund | | 0.010% on all assets |
| |
High Yield HLS Fund | | 0.020% on first $5 billion and; |
| | 0.015% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
International Opportunities HLS Fund | | 0.016% on first $5 billion and; |
| | 0.013% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
MidCap HLS Fund | | 0.010% on all assets |
| |
MidCap Value HLS Fund | | 0.010% on all assets |
| |
Small Cap Growth HLS Fund | | 0.012% on first $5 billion and; |
| | 0.010% over $5 billion |
| |
Small Company HLS Fund | | 0.012% on first $5 billion and; |
| | 0.010% over $5 billion |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | |
Fund | | Accounting Services Fee Rates |
Small/Mid Cap Equity HLS Fund | | 0.014% on first $5 billion and; |
| | 0.012% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
Stock HLS Fund | | 0.010% on all assets |
| |
Total Return Bond HLS Fund | | 0.020% on first $5 billion and; |
| | 0.015% on next $5 billion and; |
| | 0.010% over $10 billion |
| |
Ultrashort Bond HLS Fund | | 0.010% on all assets |
| |
U.S. Government Securities HLS Fund | | 0.012% on first $5 billion and; |
| | 0.010% over $5 billion |
| |
Value HLS Fund | | 0.010% on all assets |
Effective January 1, 2015, HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation are borne by HFMC, not by the Funds, and HFMC compensates State Street for its services out of its own resources.
| | c) | Operating Expenses – Allocable expenses incurred by each Company are allocated to each Fund, as applicable, and allocated to classes within each Fund in proportion to the average daily net assets of each Fund and each class, except where allocation of certain expenses is more fairly made directly to each Fund or to specific classes within a Fund. |
| | d) | Fees Paid Indirectly – Hartford HLS Series Fund II, Inc., on behalf of its series except U.S. Government Securities HLS Fund, and Hartford Series Fund, Inc., on behalf of its series except High Yield HLS Fund, Total Return Bond HLS Fund and Ultrashort Bond HLS Fund, have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. to partially recapture non-discounted trade commissions. Such rebates are used to pay a portion of the Funds’ expenses. In addition, the Funds’ custodian bank has agreed to reduce its fees when a Fund maintains cash on deposit in a non-interest-bearing custody account. For the period ended June 30, 2016, these amounts, if any, are included in the Statements of Operations. |
The ratio of expenses to average net assets in the accompanying financial highlights excludes the reduction in expenses related to fees paid indirectly. The annualized expense ratio after waivers reflecting the reduction for fees paid indirectly for the period is as follows:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | 0.64 | % | | | 0.89 | % | | | — | |
Capital Appreciation HLS Fund | | | 0.67 | % | | | 0.92 | % | | | 1.17 | % |
Disciplined Equity HLS Fund | | | 0.78 | % | | | 1.03 | % | | | — | |
Dividend and Growth HLS Fund | | | 0.68 | % | | | 0.93 | % | | | — | |
Global Growth HLS Fund | | | 0.82 | % | | | 1.07 | % | | | — | |
Growth Opportunities HLS Fund | | | 0.65 | % | | | 0.90 | % | | | 1.15 | % |
Healthcare HLS Fund | | | 0.88 | % | | | 1.13 | % | | | — | |
High Yield HLS Fund | | | 0.78 | % | | | 1.03 | % | | | — | |
International Opportunities HLS Fund | | | 0.75 | % | | | 1.00 | % | | | — | |
MidCap HLS Fund | | | 0.70 | % | | | 0.95 | % | | | — | |
MidCap Value HLS Fund | | | 0.85 | % | | | 1.10 | % | | | — | |
Small Cap Growth HLS Fund | | | 0.65 | % | | | 0.90 | % | | | — | |
Small Company HLS Fund | | | 0.75 | % | | | 1.00 | % | | | — | |
Small/Mid Cap Equity HLS Fund | | | 0.92 | % | | | 1.17 | % | | | — | |
Stock HLS Fund | | | 0.51 | % | | | 0.76 | % | | | — | |
Total Return Bond HLS Fund | | | 0.51 | % | | | 0.76 | % | | | — | |
Ultrashort Bond HLS Fund | | | 0.44 | % | | | 0.69 | % | | | — | |
U.S. Government Securities HLS Fund | | | 0.50 | % | | | 0.75 | % | | | — | |
Value HLS Fund | | | 0.79 | % | | | 1.04 | % | | | — | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | e) | Distribution Plans for Class IB and Class IC Shares – Hartford Funds Distributors, LLC (“HFD”), an indirect subsidiary of The Hartford, is the principal underwriter and distributor of each Fund. Each Company, on behalf of its respective Funds, has adopted a Distribution Plan pursuant to Rule 12b-1 of the 1940 Act for Class IB shares and each Company, on behalf of certain Funds, has adopted a Distribution Plan pursuant to Rule 12b-1 of the 1940 Act for Class IC shares. |
Pursuant to the Class IB Distribution Plans, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets of the Fund attributable to its Class IB shares for distribution financing activities and shareholder account servicing activities. The entire amount of the fee may be used for shareholder servicing expenses and/or distribution expenses. Pursuant to the Class IC Distribution Plans, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets of the Fund attributable to its Class IC shares for distribution financing activities.
Each Board has the authority to suspend or reduce these payments at any point in time. The distribution fees paid during the period can be found on the Statements of Operations. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the respective Company’s Board of Directors may determine.
| | f) | Administrative Services Fee for Class IC Shares – Certain Funds may pay an administrative services fee to third party insurance companies annually up to 0.25% of the average daily net assets of the Fund attributable to its Class IC shares for recordkeeping and/or other administrative services provided to such Class IC shares. The total administrative services fees paid during the period are shown on the Statements of Operations. These fees are accrued daily and paid monthly. |
| | g) | Other Related Party Transactions – Certain officers of each Company are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the six-month period ended June 30, 2016, a portion of each Company’s Chief Compliance Officer’s compensation was paid by all of the investment companies in the Hartford fund complex. The portion allocated to each Fund, as represented in other expenses on the Statement of Operations, is outlined in the table below. Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. Pursuant to a sub-transfer agency agreement between HASCO and Boston Financial Data Services, Inc. (“BFDS”), HASCO has delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to BFDS. HASCO is compensated per fund fee annually, plus out of pocket expenses for providing such services, a portion of which may be used to compensate BFDS. The amount paid to HASCO can be found in the Statements of Operations. These fees are accrued daily and paid monthly. |
| | | | |
Fund | | CCO Compensation
Paid By Fund | |
Balanced HLS Fund | | $ | 4,369 | |
Capital Appreciation HLS Fund | | | 10,523 | |
Disciplined Equity HLS Fund | | | 1,252 | |
Dividend and Growth HLS Fund | | | 5,900 | |
Global Growth HLS Fund | | | 794 | |
Growth Opportunities HLS Fund | | | 2,248 | |
Healthcare HLS Fund | | | 644 | |
High Yield HLS Fund | | | 588 | |
International Opportunities HLS Fund | | | 2,232 | |
Midcap HLS Fund | | | 3,027 | |
MidCap Value HLS Fund | | | 646 | |
Small Cap Growth HLS Fund | | | 1,895 | |
Small Company HLS Fund | | | 1,954 | |
Small/Mid Cap Equity HLS Fund | | | 160 | |
Stock HLS Fund | | | 2,707 | |
Total Return Bond HLS Fund | | | 4,832 | |
Ultrashort Bond HLS Fund | | | 1,227 | |
U.S. Government Securities HLS Fund | | | 924 | |
Value HLS Fund | | | 919 | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
As of June 30, 2016, affiliates of The Hartford had ownership of shares in each Fund as follows:
Percentage of Class:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | — | | | | — | | | | — | |
Capital Appreciation HLS Fund | | | — | | | | — | | | | 1 | % |
Disciplined Equity HLS Fund | | | — | | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | | | | — | |
Global Growth HLS Fund | | | — | | | | — | | | | — | |
Growth Opportunities HLS Fund | | | — | | | | — | | | | 1 | % |
Healthcare HLS Fund | | | — | | | | — | | | | — | |
High Yield HLS Fund | | | — | | | | — | | | | — | |
International Opportunities HLS Fund | | | — | | | | — | | | | — | |
MidCap HLS Fund | | | — | | | | — | | | | — | |
MidCap Value HLS Fund | | | — | | | | — | | | | — | |
Small Cap Growth HLS Fund | | | — | | | | — | | | | — | |
Small Company HLS Fund | | | — | | | | — | | | | — | |
Small/Mid Cap Equity HLS Fund | | | — | | | | — | | | | — | |
Stock HLS Fund | | | — | | | | — | | | | — | |
Total Return Bond HLS Fund | | | — | | | | — | | | | — | |
Ultrashort Bond HLS Fund | | | — | | | | — | | | | — | |
U.S. Government Securities HLS Fund | | | — | | | | — | | | | — | |
Value HLS Fund | | | — | | | | — | | | | — | |
Percentage of Fund:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | — | | | | — | | | | — | |
Capital Appreciation HLS Fund | | | — | | | | — | | | | — | %* |
Disciplined Equity HLS Fund | | | — | | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | | | | — | |
Global Growth HLS Fund | | | — | | | | — | | | | — | |
Growth Opportunities HLS Fund | | | — | | | | — | | | | — | %* |
Healthcare HLS Fund | | | — | | | | — | | | | — | |
High Yield HLS Fund | | | — | | | | — | | | | — | |
International Opportunities HLS Fund | | | — | | | | — | | | | — | |
MidCap HLS Fund | | | — | | | | — | | | | — | |
MidCap Value HLS Fund | | | — | | | | — | | | | — | |
Small Cap Growth HLS Fund | | | — | | | | — | | | | — | |
Small Company HLS Fund | | | — | | | | — | | | | — | |
Small/Mid Cap Equity HLS Fund | | | — | | | | — | | | | — | |
Stock HLS Fund | | | — | | | | — | | | | — | |
Total Return Bond HLS Fund | | | — | | | | — | | | | — | |
Ultrashort Bond HLS Fund | | | — | | | | — | | | | — | |
U.S. Government Securities HLS Fund | | | — | | | | — | | | | — | |
Value HLS Fund | | | — | | | | — | | | | — | |
| | * | Percentage rounds to zero. |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| 9. | Investment Transactions: |
For the six-month period ended June 30, 2016, the cost of purchases and proceeds from sales of investment securities (excluding short-term investments) were as follows:
| | | | | | | | |
Fund | | Cost of Purchases
Excluding U.S.
Government
Obligations | | | Sales Proceeds
Excluding U.S.
Government
Obligations | |
Balanced HLS Fund | | $ | 180,738,805 | | | $ | 251,043,972 | |
Capital Appreciation HLS Fund | | $ | 2,729,971,098 | | | $ | 3,129,079,401 | |
Disciplined Equity HLS Fund | | $ | 74,856,954 | | | $ | 122,267,434 | |
Dividend and Growth HLS Fund | | $ | 335,927,029 | | | $ | 606,754,935 | |
Global Growth HLS Fund | | $ | 125,968,002 | | | $ | 158,772,675 | |
Growth Opportunities HLS Fund | | $ | 869,190,921 | | | $ | 844,897,731 | |
Healthcare HLS Fund | | $ | 63,972,976 | | | $ | 105,947,052 | |
High Yield HLS Fund | | $ | 74,416,400 | | | $ | 83,600,477 | |
International Opportunities HLS Fund | | $ | 566,643,441 | | | $ | 586,812,977 | |
MidCap HLS Fund | | $ | 211,370,430 | | | $ | 278,584,221 | |
MidCap Value HLS Fund | | $ | 78,346,993 | | | $ | 103,382,721 | |
Small Cap Growth HLS Fund | | $ | 271,921,198 | | | $ | 286,318,518 | |
Small Company HLS Fund | | $ | 526,119,599 | | | $ | 652,048,736 | |
Small/Mid Cap Equity HLS Fund | | $ | 36,869,722 | | | $ | 44,262,659 | |
Stock HLS Fund | | $ | 218,960,113 | | | $ | 303,181,591 | |
Total Return Bond HLS Fund | | $ | 514,284,864 | | | $ | 695,246,206 | |
Ultrashort Bond HLS Fund | | $ | 46,821,681 | | | $ | 87,626,159 | |
U.S. Government Securities HLS Fund | | $ | 33,666,416 | | | $ | 38,391,420 | |
Value HLS Fund | | $ | 29,242,832 | | | $ | 49,430,268 | |
| | |
Fund | | Cost of Purchases
For U.S.
Government
Obligations | | | Sales Proceeds
For U.S.
Government
Obligations | |
Balanced HLS Fund | | $ | 93,321,701 | | | $ | 139,635,640 | |
Capital Appreciation HLS Fund | | $ | — | | | $ | — | |
Disciplined Equity HLS Fund | | $ | — | | | $ | — | |
Dividend and Growth HLS Fund | | $ | — | | | $ | — | |
Global Growth HLS Fund | | $ | — | | | $ | — | |
Growth Opportunities HLS Fund | | $ | — | | | $ | — | |
Healthcare HLS Fund | | $ | — | | | $ | — | |
High Yield HLS Fund | | $ | — | | | $ | — | |
International Opportunities HLS Fund | | $ | — | | | $ | — | |
MidCap HLS Fund | | $ | — | | | $ | — | |
MidCap Value HLS Fund | | $ | — | | | $ | — | |
Small Cap Growth HLS Fund | | $ | — | | | $ | — | |
Small Company HLS Fund | | $ | — | | | $ | — | |
Small/Mid Cap Equity HLS Fund | | $ | — | | | $ | — | |
Stock HLS Fund | | $ | — | | | $ | — | |
Total Return Bond HLS Fund | | $ | 133,759,600 | | | $ | 145,855,132 | |
Ultrashort Bond HLS Fund | | $ | 79,018,637 | | | $ | 168,815,484 | |
U.S. Government Securities HLS Fund | | $ | 107,389,836 | | | $ | 146,657,617 | |
Value HLS Fund | | $ | — | | | $ | — | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | |
| | |
Fund | | Total Cost of
Purchases | | | Total Sales
Proceeds | |
Balanced HLS Fund | | $ | 274,060,506 | | | $ | 390,679,612 | |
Capital Appreciation HLS Fund | | $ | 2,729,971,098 | | | $ | 3,129,079,401 | |
Disciplined Equity HLS Fund | | $ | 74,856,954 | | | $ | 122,267,434 | |
Dividend and Growth HLS Fund | | $ | 335,927,029 | | | $ | 606,754,935 | |
Global Growth HLS Fund | | $ | 125,968,002 | | | $ | 158,772,675 | |
Growth Opportunities HLS Fund | | $ | 869,190,921 | | | $ | 844,897,731 | |
Healthcare HLS Fund | | $ | 63,972,976 | | | $ | 105,947,052 | |
High Yield HLS Fund | | $ | 74,416,400 | | | $ | 83,600,477 | |
International Opportunities HLS Fund | | $ | 566,643,441 | | | $ | 586,812,977 | |
MidCap HLS Fund | | $ | 211,370,430 | | | $ | 278,584,221 | |
MidCap Value HLS Fund | | $ | 78,346,993 | | | $ | 103,382,721 | |
Small Cap Growth HLS Fund | | $ | 271,921,198 | | | $ | 286,318,518 | |
Small Company HLS Fund | | $ | 526,119,599 | | | $ | 652,048,736 | |
Small/Mid Cap Equity HLS Fund | | $ | 36,869,722 | | | $ | 44,262,659 | |
Stock HLS Fund | | $ | 218,960,113 | | | $ | 303,181,591 | |
Total Return Bond HLS Fund | | $ | 648,044,463 | | | $ | 841,101,338 | |
Ultrashort Bond HLS Fund | | $ | 125,840,318 | | | $ | 256,441,643 | |
U.S. Government Securities HLS Fund | | $ | 141,056,252 | | | $ | 185,049,037 | |
Value HLS Fund | | $ | 29,242,832 | | | $ | 49,430,268 | |
| 10. | Capital Share Transactions: |
The following information is for the six-month period ended June 30, 2016, and the year ended December 31, 2015:
| | | | | | | | | | | | | | | | |
| | | | |
Balanced HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 227,642 | | | $ | 6,068,324 | | | | 469,371 | | | $ | 12,840,849 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,613,469 | | | | 43,115,909 | |
Shares Redeemed | | | (6,022,075 | ) | | | (159,883,372 | ) | | | (13,603,501 | ) | | | (371,124,721 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (5,794,433 | ) | | | (153,815,048 | ) | | | (11,520,661 | ) | | | (315,167,963 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 127,517 | | | $ | 3,331,529 | | | | 139,993 | | | $ | 3,867,458 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 184,225 | | | | 4,997,202 | |
Shares Redeemed | | | (879,203 | ) | | | (23,668,849 | ) | | | (2,369,687 | ) | | | (65,344,297 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (751,686 | ) | | | (20,337,320 | ) | | | (2,045,469 | ) | | | (56,479,637 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (6,546,119 | ) | | $ | (174,152,368 | ) | | | (13,566,130 | ) | | $ | (371,647,600 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
Capital Appreciation HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 931,868 | | | $ | 39,043,258 | | | | 3,266,797 | | | $ | 165,572,633 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 26,063,902 | | | | 1,196,703,908 | |
Shares Redeemed | | | (11,190,374 | ) | | | (475,549,309 | ) | | | (19,316,788 | ) | | | (1,015,737,819 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (10,258,506 | ) | | | (436,506,051 | ) | | | 10,013,911 | | | | 346,538,722 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 75,381 | | | $ | 3,115,334 | | | | 172,518 | | | $ | 8,688,942 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 3,043,632 | | | | 137,948,750 | |
Shares Redeemed | | | (1,316,997 | ) | | | (55,359,003 | ) | | | (2,715,739 | ) | | | (139,784,790 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,241,616 | ) | | | (52,243,669 | ) | | | 500,411 | | | | 6,852,902 | |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 89,759 | | | $ | 3,770,631 | | | | 284,973 | | | $ | 14,624,663 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 53,375 | | | | 2,435,033 | |
Shares Redeemed | | | (18,340 | ) | | | (761,587 | ) | | | (34,820 | ) | | | (1,661,177 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 71,419 | | | | 3,009,044 | | | | 303,528 | | | | 15,398,519 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (11,428,703 | ) | | $ | (485,740,676 | ) | | | 10,817,850 | | | $ | 368,790,143 | |
| | | | | | | | | | | | | | | | |
| | | | |
Disciplined Equity HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 521,413 | | | $ | 7,947,870 | | | | 589,196 | | | $ | 10,439,373 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 13,406,784 | | | | 213,986,540 | |
Shares Redeemed | | | (3,693,977 | ) | | | (56,237,323 | ) | | | (7,325,609 | ) | | | (141,925,976 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,172,564 | ) | | | (48,289,453 | ) | | | 6,670,371 | | | | 82,499,937 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 155,911 | | | $ | 2,364,583 | | | | 168,976 | | | $ | 2,946,000 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,914,322 | | | | 30,274,969 | |
Shares Redeemed | | | (607,301 | ) | | | (9,193,098 | ) | | | (1,292,932 | ) | | | (25,084,582 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (451,390 | ) | | | (6,828,515 | ) | | | 790,366 | | | | 8,136,387 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (3,623,954 | ) | | $ | (55,117,968 | ) | | | 7,460,737 | | | $ | 90,636,324 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
Dividend and Growth HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 927,178 | | | $ | 20,297,296 | | | | 2,257,878 | | | $ | 56,525,716 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 21,995,067 | | | | 503,458,112 | |
Shares Redeemed | | | (12,487,506 | ) | | | (274,200,504 | ) | | | (21,218,821 | ) | | | (531,488,308 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (11,560,328 | ) | | | (253,903,208 | ) | | | 3,034,124 | | | | 28,495,520 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 252,476 | | | $ | 5,590,836 | | | | 395,051 | | | $ | 9,477,984 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 3,302,608 | | | | 75,299,375 | |
Shares Redeemed | | | (1,937,900 | ) | | | (42,111,091 | ) | | | (3,972,074 | ) | | | (99,357,475 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,685,424 | ) | | | (36,520,255 | ) | | | (274,415 | ) | | | (14,580,116 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (13,245,752 | ) | | $ | (290,423,463 | ) | | | 2,759,709 | | | $ | 13,915,404 | |
| | | | | | | | | | | | | | | | |
| | | | |
Global Growth HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 216,948 | | | $ | 4,988,640 | | | | 935,076 | | | $ | 23,257,954 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 802,612 | | | | 19,872,670 | |
Shares Redeemed | | | (1,400,240 | ) | | | (32,604,802 | ) | | | (2,017,988 | ) | | | (49,833,729 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,183,292 | ) | | | (27,616,162 | ) | | | (280,300 | ) | | | (6,703,105 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 114,524 | | | $ | 2,636,474 | | | | 272,638 | | | $ | 6,866,485 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 179,743 | | | | 4,418,091 | |
Shares Redeemed | | | (424,403 | ) | | | (9,788,716 | ) | | | (812,324 | ) | | | (19,908,755 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (309,879 | ) | | | (7,152,242 | ) | | | (359,943 | ) | | | (8,624,179 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,493,171 | ) | | $ | (34,768,404 | ) | | | (640,243 | ) | | $ | (15,327,284 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
Growth Opportunities HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,815,146 | | | $ | 127,284,350 | | | | 1,044,247 | | | $ | 39,449,289 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 7,007,351 | | | | 247,639,819 | |
Shares Redeemed | | | (2,811,543 | ) | | | (91,397,819 | ) | | | (4,659,838 | ) | | | (181,701,168 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,003,603 | | | | 35,886,531 | | | | 3,391,760 | | | | 105,387,940 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 182,049 | | | $ | 5,817,135 | | | | 405,871 | | | $ | 15,372,728 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 979,058 | | | | 33,542,514 | |
Shares Redeemed | | | (610,988 | ) | | | (19,150,527 | ) | | | (914,513 | ) | | | (34,771,551 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (428,939 | ) | | | (13,333,392 | ) | | | 470,416 | | | | 14,143,691 | |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 184,414 | | | $ | 5,865,626 | | | | 499,835 | | | $ | 18,859,811 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 64,843 | | | | 2,276,630 | |
Shares Redeemed | | | (42,366 | ) | | | (1,378,984 | ) | | | (16,081 | ) | | | (608,691 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 142,048 | | | | 4,486,642 | | | | 548,597 | | | | 20,527,750 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 716,712 | | | $ | 27,039,781 | | | | 4,410,773 | | | $ | 140,059,381 | |
| | | | | | | | | | | | | | | | |
| | | | |
Healthcare HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 984,867 | | | $ | 26,351,631 | | | | 3,399,145 | | | $ | 109,589,966 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,330,488 | | | | 41,644,271 | |
Shares Redeemed | | | (2,419,506 | ) | | | (65,070,394 | ) | | | (2,879,751 | ) | | | (89,869,052 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,434,639 | ) | | | (38,718,763 | ) | | | 1,849,882 | | | | 61,365,185 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 120,044 | | | $ | 3,090,991 | | | | 256,484 | | | $ | 7,997,496 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 255,965 | | | | 7,763,435 | |
Shares Redeemed | | | (368,980 | ) | | | (9,458,002 | ) | | | (445,685 | ) | | | (13,476,919 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (248,936 | ) | | | (6,367,011 | ) | | | 66,764 | | | | 2,284,012 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,683,575 | ) | | $ | (45,085,774 | ) | | | 1,916,646 | | | $ | 63,649,197 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
High Yield HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,260,678 | | | $ | 9,658,657 | | | | 2,617,181 | | | $ | 21,697,811 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 2,396,567 | | | | 18,980,813 | |
Shares Redeemed | | | (3,447,883 | ) | | | (26,556,578 | ) | | | (9,818,209 | ) | | | (81,320,965 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,187,205 | ) | | | (16,897,921 | ) | | | (4,804,461 | ) | | | (40,642,341 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 401,228 | | | $ | 3,041,720 | | | | 607,578 | | | $ | 4,903,841 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 760,729 | | | | 5,933,685 | |
Shares Redeemed | | | (1,199,769 | ) | | | (9,131,194 | ) | | | (3,703,573 | ) | | | (29,754,673 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (798,541 | ) | | | (6,089,474 | ) | | | (2,335,266 | ) | | | (18,917,147 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,985,746 | ) | | $ | (22,987,395 | ) | | | (7,139,727 | ) | | $ | (59,559,488 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
International Opportunities HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,910,596 | | | $ | 53,574,053 | | | | 4,351,758 | | | $ | 63,756,544 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,200,778 | | | | 17,879,578 | |
Shares Redeemed | | | (5,796,041 | ) | | | (78,645,005 | ) | | | (12,532,632 | ) | | | (184,629,876 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,885,445 | ) | | | (25,070,952 | ) | | | (6,980,096 | ) | | | (102,993,754 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 475,671 | | | $ | 6,474,021 | | | | 1,065,275 | | | $ | 16,100,444 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 144,330 | | | | 2,176,492 | |
Shares Redeemed | | | (1,437,645 | ) | | | (19,628,681 | ) | | | (2,491,080 | ) | | | (37,270,704 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (961,974 | ) | | | (13,154,660 | ) | | | (1,281,475 | ) | | | (18,993,768 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,847,419 | ) | | $ | (38,225,612 | ) | | | (8,261,571 | ) | | $ | (121,987,522 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
MidCap HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,680,504 | | | $ | 55,028,866 | | | | 6,120,970 | | | $ | 232,038,567 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 5,541,888 | | | | 198,571,970 | |
Shares Redeemed | | | (3,478,843 | ) | | | (114,288,565 | ) | | | (7,486,621 | ) | | | (279,695,610 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,798,339 | ) | | | (59,259,699 | ) | | | 4,176,237 | | | | 150,914,927 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 107,334 | | | $ | 3,458,337 | | | | 1,472,929 | | | $ | 55,008,904 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 362,679 | | | | 12,792,105 | |
Shares Redeemed | | | (453,111 | ) | | | (14,611,431 | ) | | | (951,307 | ) | | | (36,505,511 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (345,777 | ) | | | (11,153,094 | ) | | | 884,301 | | | | 31,295,498 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,144,116 | ) | | $ | (70,412,793 | ) | | | 5,060,538 | | | $ | 182,210,425 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
MidCap Value HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 143,931 | | | $ | 1,711,258 | | | | 449,172 | | | $ | 6,170,492 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 3,572,628 | | | | 46,086,897 | |
Shares Redeemed | | | (1,683,224 | ) | | | (20,051,145 | ) | | | (4,047,882 | ) | | | (58,318,837 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,539,293 | ) | | | (18,339,887 | ) | | | (26,082 | ) | | | (6,061,448 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 75,760 | | | $ | 908,349 | | | | 153,855 | | | $ | 2,252,753 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,163,263 | | | | 14,913,036 | |
Shares Redeemed | | | (595,848 | ) | | | (7,024,559 | ) | | | (1,467,107 | ) | | | (20,389,208 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (520,088 | ) | | | (6,116,210 | ) | | | (149,989 | ) | | | (3,223,419 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,059,381 | ) | | $ | (24,456,097 | ) | | | (176,071 | ) | | $ | (9,284,867 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Small Cap Growth HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,474,181 | | | $ | 81,694,123 | | | | 19,697,951 | | | $ | 535,691,497 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 2,817,860 | | | | 75,293,233 | |
Shares Redeemed | | | (3,991,948 | ) | | | (92,743,096 | ) | | | (5,815,577 | ) | | | (162,067,889 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (517,767 | ) | | | (11,048,973 | ) | | | 16,700,234 | | | | 448,916,841 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 863,714 | | | $ | 19,654,471 | | | | 4,994,251 | | | $ | 145,842,507 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 906,232 | | | | 23,707,028 | |
Shares Redeemed | | | (906,676 | ) | | | (20,515,411 | ) | | | (1,488,312 | ) | | | (39,637,029 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (42,962 | ) | | | (860,940 | ) | | | 4,412,171 | | | | 129,912,506 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (560,729 | ) | | $ | (11,909,913 | ) | | | 21,112,405 | | | $ | 578,829,347 | |
| | | | | | | | | | | | | | | | |
| | | | |
Small Company HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,325,472 | | | $ | 53,101,815 | | | | 6,717,473 | | | $ | 150,841,613 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 11,998,775 | | | | 235,415,969 | |
Shares Redeemed | | | (12,751,028 | ) | | | (198,304,388 | ) | | | (9,745,990 | ) | | | (209,512,224 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (9,425,556 | ) | | | (145,202,573 | ) | | | 8,970,258 | | | | 176,745,358 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 845,198 | | | $ | 12,748,656 | | | | 737,248 | | | $ | 15,492,511 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,196,244 | | | | 22,082,672 | |
Shares Redeemed | | | (838,037 | ) | | | (12,298,947 | ) | | | (1,518,245 | ) | | | (32,011,866 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 7,161 | | | | 449,709 | | | | 415,247 | | | | 5,563,317 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (9,418,395 | ) | | $ | (144,752,864 | ) | | | 9,385,505 | | | $ | 182,308,675 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
Small/Mid Cap Equity HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 242,776 | | | $ | 1,764,786 | | | | 398,575 | | | $ | 3,507,708 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,968,095 | | | | 15,705,402 | |
Shares Redeemed | | | (1,104,711 | ) | | | (7,932,122 | ) | | | (2,061,224 | ) | | | (18,373,275 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (861,935 | ) | | | (6,167,336 | ) | | | 305,446 | | | | 839,835 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 117,892 | | | $ | 861,475 | | | | 149,538 | | | $ | 1,423,572 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 431,104 | | | | 3,422,965 | |
Shares Redeemed | | | (402,094 | ) | | | (2,885,899 | ) | | | (818,827 | ) | | | (7,315,334 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (284,202 | ) | | | (2,024,424 | ) | | | (238,185 | ) | | | (2,468,797 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,146,137 | ) | | $ | (8,191,760 | ) | | | 67,261 | | | $ | (1,628,962 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Stock HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 73,504 | | | $ | 4,804,211 | | | | 107,875 | | | $ | 6,926,566 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 395,269 | | | | 25,254,549 | |
Shares Redeemed | | | (1,431,298 | ) | | | (91,937,233 | ) | | | (3,288,501 | ) | | | (210,453,182 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,357,794 | ) | | | (87,133,022 | ) | | | (2,785,357 | ) | | | (178,272,067 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 32,181 | | | $ | 2,076,466 | | | | 38,756 | | | $ | 2,475,585 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 38,043 | | | | 2,429,965 | |
Shares Redeemed | | | (240,730 | ) | | | (15,505,003 | ) | | | (514,770 | ) | | | (32,875,813 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (208,549 | ) | | | (13,428,537 | ) | | | (437,971 | ) | | | (27,970,263 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,566,343 | ) | | $ | (100,561,559 | ) | | | (3,223,328 | ) | | $ | (206,242,330 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Return Bond HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| | | | | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 2,134,469 | | | $ | 23,941,709 | | | | 10,155,250 | | | $ | 116,189,984 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 13,123,731 | | | | 144,492,281 | |
Shares Redeemed | | | (21,700,477 | ) | | | (242,366,322 | ) | | | (46,945,401 | ) | | | (535,205,814 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (19,566,008 | ) | | | (218,424,613 | ) | | | (23,666,420 | ) | | | (274,523,549 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 371,107 | | | $ | 4,149,600 | | | | 691,074 | | | $ | 7,919,270 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,529,910 | | | | 16,767,814 | |
Shares Redeemed | | | (2,432,423 | ) | | | (27,006,921 | ) | | | (6,225,863 | ) | | | (70,699,894 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,061,316 | ) | | | (22,857,321 | ) | | | (4,004,879 | ) | | | (46,012,810 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (21,627,324 | ) | | $ | (241,281,934 | ) | | | (27,671,299 | ) | | $ | (320,536,359 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| | | | | | | | | | | | | | | | |
| | | | |
Ultrashort Bond HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,730,520 | | | $ | 17,328,184 | | | | 4,401,670 | | | $ | 44,094,704 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 214,454 | | | | 2,144,538 | |
Shares Redeemed | | | (6,683,771 | ) | | | (66,946,565 | ) | | | (17,928,559 | ) | | | (179,615,432 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (4,953,251 | ) | | | (49,618,381 | ) | | | (13,312,435 | ) | | | (133,376,190 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 698,349 | | | $ | 6,973,563 | | | | 1,221,274 | | | $ | 12,196,809 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,036 | | | | 10,342 | |
Shares Redeemed | | | (1,592,156 | ) | | | (15,899,633 | ) | | | (3,633,565 | ) | | | (36,286,423 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (893,807 | ) | | | (8,926,070 | ) | | | (2,411,255 | ) | | | (24,079,272 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (5,847,058 | ) | | $ | (58,544,451 | ) | | | (15,723,690 | ) | | $ | (157,455,462 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
U.S. Government Securities HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 2,899,200 | | | $ | 30,400,219 | | | | 3,407,701 | | | $ | 35,624,811 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 761,539 | | | | 7,889,540 | |
Shares Redeemed | | | (4,426,376 | ) | | | (46,618,769 | ) | | | (9,528,094 | ) | | | (99,648,491 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,527,176 | ) | | | (16,218,550 | ) | | | (5,358,854 | ) | | | (56,134,140 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 724,558 | | | $ | 7,581,566 | | | | 624,520 | | | $ | 6,508,978 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 138,582 | | | | 1,434,327 | |
Shares Redeemed | | | (979,008 | ) | | | (10,299,826 | ) | | | (1,914,362 | ) | | | (19,961,551 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (254,450 | ) | | | (2,718,260 | ) | | | (1,151,260 | ) | | | (12,018,246 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,781,626 | ) | | $ | (18,936,810 | ) | | | (6,510,114 | ) | | $ | (68,152,386 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Value HLS Fund | | | | | | | | | | | | | | | | |
| | | For the Six-Month Period
Ended June 30, 2016 | | | For the Year Ended
December 31, 2015 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 436,549 | | | $ | 6,754,593 | | | | 2,523,744 | | | $ | 40,916,505 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 1,406,416 | | | | 22,579,315 | |
Shares Redeemed | | | (2,555,869 | ) | | | (39,253,222 | ) | | | (5,677,276 | ) | | | (94,566,512 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,119,320 | ) | | | (32,498,629 | ) | | | (1,747,116 | ) | | | (31,070,692 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 140,848 | | | $ | 2,134,784 | | | | 90,344 | | | $ | 1,476,259 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 244,646 | | | | 3,929,896 | |
Shares Redeemed | | | (491,719 | ) | | | (7,558,981 | ) | | | (1,023,557 | ) | | | (17,008,309 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (350,871 | ) | | | (5,424,197 | ) | | | (688,567 | ) | | | (11,602,154 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,470,191 | ) | | $ | (37,922,826 | ) | | | (2,435,683 | ) | | $ | (42,672,846 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
Each Fund participates in a committed line of credit pursuant to a credit agreement. Each Fund may borrow under the line of credit for temporary or emergency purposes. The Funds (together with certain other Hartford Funds) may borrow up to $330 million in the aggregate, subject to asset coverage and other limitations specified in the credit agreement. The interest rate on borrowings varies depending on the nature of the loan. The facility also charges a commitment fee, which is allocated to each of the funds participating in the line of credit based on average net assets of the funds. During the six-month period ended June 30, 2016, none of the Funds had borrowings under this facility.
| 12. | Pending Legal Proceedings: |
On February 25, 2011, Jennifer L. Kasilag, Louis Mellinger, Judith M. Menendez, Jacqueline M. Robinson, and Linda A. Russell filed a derivative lawsuit against Hartford Investment Financial Services, LLC (“HIFSCO”) (now known as Hartford Funds Distributors, LLC) on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that HIFSCO received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the 1940 Act when serving as investment manager and principal underwriter, respectively, to the Hartford retail mutual funds. Although this action was purportedly filed on behalf of certain of the Hartford Funds, none of the Hartford Funds is itself a defendant to the suit. HIFSCO moved to dismiss and, in September 2011, the motion was granted in part and denied in part, with leave to amend the complaint. In November 2011, plaintiffs filed an amended complaint on behalf of certain Hartford retail mutual funds, The Hartford Global Health Fund (now known as The Hartford Healthcare Fund), The Hartford Conservative Allocation Fund, The Hartford Growth Opportunities Fund, The Hartford Inflation Plus Fund, The Hartford Advisers Fund (now known as The Hartford Balanced Fund), and The Hartford Capital Appreciation Fund. Plaintiffs seek to rescind the investment management agreements and distribution plans between HIFSCO and these funds and to recover the total fees charged thereunder or, in the alternative, to recover any improper compensation HIFSCO received, in addition to lost earnings. HIFSCO filed a partial motion to dismiss the amended complaint and, in December 2012, the court dismissed without prejudice the claims regarding distribution fees and denied the motion with respect to the advisory fees claims. In March 2014, the plaintiffs filed a new complaint that added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant HFMC, which assumed the role as investment manager to the funds as of January 2013. In June 2015, HFMC and HIFSCO moved for summary judgment, and plaintiffs cross-moved for partial summary judgment with respect to The Hartford Capital Appreciation Fund. In March 2016, the court, in large part, denied summary judgment for all parties. The court granted judgment for HFMC and HIFSCO with respect to all claims made by The Hartford Small Company Fund and certain claims made by The Hartford Floating Rate Fund. The court further ruled that the appropriate measure of damages on the surviving claims is the difference, if any, between the actual advisory fees paid through trial and those that could have been paid under the applicable legal standard. HFMC and HIFSCO dispute the allegations and intend to defend vigorously.
No accrual for litigation relating to this matter has been recorded in the financial statements of the Funds because the Funds are not party to the suit.
On October 21, 2013 for the Ultrashort Bond HLS Fund, a reverse stock split was declared for the Class IA and Class IB shares at a ten to one ratio. The effect of the reverse stock split was to divide the number of outstanding shares by the reverse split factor, with a corresponding increase in the net asset value per share. The split was executed at the closing rounded NAV as of the prior business day. This transaction did not change the net assets of the Fund and the total value of a shareholder’s investment in the Fund did not change as a result of the reverse stock split. Data presented in the Financial Highlights has been adjusted retroactively to account for the reverse stock split.
Under each Company’s organizational documents, the Company shall indemnify its officers and directors to the full extent required or permitted under Maryland General Corporation Law and federal securities laws. In addition, each Company, on behalf of its respective Funds, may enter into contracts that contain a variety of indemnifications. Each Company’s maximum exposure under these arrangements is unknown. However, as of the date of these financial statements, each Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Notes to Financial Statements – (continued)
June 30, 2016 (Unaudited)
| 15. | Recent Accounting Pronouncement: |
In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Funds’ financial statement disclosures.
In connection with the preparation of the financial statements of the Funds as of and for the six-month period ended June 30, 2016, events and transactions subsequent to June 30, 2016, through the date the financial statements were issued have been evaluated by the Funds’ management for possible adjustment and/or disclosure.
Effective January 1, 2017, the fund accounting fees paid by each Fund are changing. For more information, please see the Funds’ Statement of Additional Information.
Shareholder Meeting Results (Unaudited)
A Joint Annual Meeting of Shareholders (“Meeting”) was held on March 14, 2016 and shareholders were asked to consider the proposals listed below. The Meeting was adjourned for certain funds until April 19, 2016 with respect to proposals 2 through 6 listed below.
| | |
Proposal
No. | | Description of Proposal |
| |
| 1. | | The election of nominees to the Boards of Directors of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each, a “Company” and collectively, the “Companies”) |
| |
| 2. | | The approval of a new Investment Management Agreement between Hartford Funds Management Company, LLC (“HFMC”) and the Companies, on behalf of the Funds. |
| |
| 3. | | The approval of a change to each Fund’s fundamental investment restriction on the purchase or sale of commodities. |
| |
| 4. | | The approval of a change to each Fund’s fundamental investment restriction on the purchase or sale of real estate. |
| |
| 5. | | The approval of a change to each Fund’s fundamental investment restriction on concentration of investments in a particular industry or group of industries. |
| |
| 6. | | The approval, prospectively, of a modification to the current “manager of managers” policy to permit HFMC, subject to prior approval by the relevant Board and under certain circumstances, to enter into and materially amend agreements with affiliated and unaffiliated sub-advisers without the necessity of obtaining shareholder approval. |
All shareholders of record at the close of business on December 23, 2015 (“Record Date”) were entitled to attend or submit proxies. As of the Record Date, each Fund had the following number of shares outstanding:
| | | | |
Fund | | Outstanding Shares | |
Hartford Balanced HLS Fund | | | 94,446,436.9570 | |
Hartford Capital Appreciation HLS Fund | | | 143,648,815.3550 | |
Hartford Disciplined Equity HLS Fund | | | 47,773,847.9850 | |
Hartford Dividend and Growth HLS Fund | | | 156,449,235.6120 | |
Hartford Global Growth HLS Fund | | | 19,721,225.9010 | |
Hartford Growth Opportunities HLS Fund | | | 39,766,847.0550 | |
Hartford Healthcare HLS Fund | | | 14,027,669.4520 | |
Hartford High Yield HLS Fund | | | 44,107,497.6430 | |
Hartford International Opportunities HLS Fund | | | 92,990,191.3310 | |
Hartford MidCap HLS Fund | | | 52,171,397.0650 | |
Hartford MidCap Value HLS Fund | | | 31,188,226.0310 | |
Hartford Small Cap Growth HLS Fund | | | 45,262,486.1530 | |
Hartford Small Company HLS Fund | | | 69,913,112.1470 | |
Hartford Small/Mid Cap Equity HLS Fund | | | 12,903,066.9700 | |
Hartford Stock HLS Fund | | | 24,179,712.9250 | |
Hartford Total Return Bond HLS Fund | | | 249,868,620.8300 | |
Hartford U.S. Government Securities HLS Fund | | | 48,616,941.6520 | |
Hartford Ultrashort Bond HLS Fund | | | 70,982,715.8490 | |
Hartford Value HLS Fund | | | 33,471,884.5890 | |
Shareholder Meeting Results (Unaudited) – (continued)
Proposal One: The election of nominees to the Boards of Directors of the Companies.
| | | | | | | | |
| Approval of Board of Directors for Hartford Series Fund, Inc. | |
| | |
Name(1) | | For | | | Withheld | |
Hilary E. Ackermann | | | 926,055,036.2136 | | | | 37,881,891.4718 | |
Lynn S. Birdsong | | | 928,236,087.7893 | | | | 35,700,839.8961 | |
James E. Davey | | | 928,312,674.2269 | | | | 35,624,253.4585 | |
Christine Detrick | | | 927,906,136.7720 | | | | 36,030,790.9134 | |
Duane E. Hill | | | 926,911,838.7595 | | | | 37,025,088.9259 | |
Sandra S. Jaffee | | | 925,743,052.2438 | | | | 38,193,875.4416 | |
William P. Johnston | | | 926,627,699.6718 | | | | 37,309,228.0136 | |
Phillip O. Peterson | | | 926,430,382.8904 | | | | 37,506,544.7950 | |
Lemma W. Senbet | | | 927,235,048.4436 | | | | 36,701,879.2418 | |
| (1) | Shareholders approved the election of each nominee at the Meeting. |
| | | | | | | | |
| Approval of Board of Directors for Hartford HLS Series Fund II, Inc. | |
| | |
Name(1) | | For | | | Withheld | |
Hilary E. Ackermann | | | 111,973,151.5668 | | | | 3,455,709.8714 | |
Lynn S. Birdsong | | | 112,222,202.7494 | | | | 3,206,658.6888 | |
James E. Davey | | | 112,183,175.8470 | | | | 3,245,685.5912 | |
Christine Detrick | | | 112,197,609.5991 | | | | 3,231,251.8391 | |
Duane E. Hill | | | 112,096,337.6564 | | | | 3,332,523.7818 | |
Sandra S. Jaffee | | | 112,229,912.3493 | | | | 3,198,949.0889 | |
William P. Johnston | | | 112,149,625.0617 | | | | 3,279,236.3765 | |
Phillip O. Peterson | | | 112,162,997.9970 | | | | 3,265,863.4412 | |
Lemma W. Senbet | | | 112,226,951.1307 | | | | 3,201,910.3075 | |
| (1) | Shareholders approved the election of each nominee at the Meeting. |
Shareholder Meeting Results (Unaudited) – (continued)
Proposal Two: The approval of a new Investment Management Agreement between HFMC and the Companies, on behalf of the Funds.
| | | | | | | | | | | | | | | | |
Fund | | For | | | Against | | | Abstain | | | Broker
Non-Votes | |
Hartford Balanced HLS Fund(1) | | | 84,325,889.3904 | | | | 3,082,698.2808 | | | | 3,055,126.7288 | | | | 0.0000 | |
Hartford Capital Appreciation HLS Fund(1) | | | 94,466,954.0315 | | | | 3,149,954.7430 | | | | 5,726,712.6307 | | | | 103,951.0000 | |
Hartford Disciplined Equity HLS Fund(1) | | | 44,312,363.6449 | | | | 1,809,730.3575 | | | | 1,393,097.8926 | | | | 0.0000 | |
Hartford Dividend and Growth HLS Fund(1) | | | 124,988,275.0039 | | | | 3,763,499.6028 | | | | 9,172,581.5603 | | | | 0.0000 | |
Hartford Global Growth HLS Fund(1) | | | 15,858,197.1705 | | | | 832,028.9355 | | | | 514,690.6920 | | | | 0.0000 | |
Hartford Growth Opportunities HLS Fund(1) | | | 35,088,834.0484 | | | | 1,639,115.9614 | | | | 1,086,176.1282 | | | | 0.0000 | |
Hartford Healthcare HLS Fund(1) | | | 7,560,269.1340 | | | | 132,483.0000 | | | | 216,007.0000 | | | | 0.0000 | |
Hartford High Yield HLS Fund(1) | | | 39,757,140.5652 | | | | 1,630,259.5317 | | | | 1,582,896.0961 | | | | 0.0000 | |
Hartford International Opportunities HLS Fund(1) | | | 67,464,946.3659 | | | | 2,796,169.5736 | | | | 2,279,984.8521 | | | | 119,548.0000 | |
Hartford MidCap HLS Fund(2) | | | 22,649,116.9774 | | | | 528,405.6938 | | | | 3,308,277.5287 | | | | 0.0000 | |
Hartford MidCap Value HLS Fund(1) | | | 29,591,370.5384 | | | | 706,968.1062 | | | | 612,518.8074 | | | | 0.0000 | |
Hartford Small Cap Growth HLS Fund(2) | | | 23,229,031.7737 | | | | 396,290.9920 | | | | 780,643.1054 | | | | 1,453,102.0000 | |
Hartford Small Company HLS Fund(1) | | | 33,226,026.0797 | | | | 970,890.5258 | | | | 1,013,186.0215 | | | | 20,314.0000 | |
Hartford Small/Mid Cap Equity HLS Fund(1) | | | 11,667,590.8594 | | | | 298,449.4983 | | | | 753,951.9533 | | | | 0.0000 | |
Hartford Stock HLS Fund(1) | | | 20,740,796.0800 | | | | 788,774.1754 | | | | 961,794.7386 | | | | 0.0000 | |
Hartford Total Return Bond HLS Fund(1) | | | 218,054,022.2714 | | | | 7,061,616.6450 | | | | 10,762,322.9046 | | | | 0.0000 | |
Hartford U.S. Government Securities HLS Fund(1) | | | 44,253,997.1321 | | | | 1,445,777.8891 | | | | 1,819,577.3858 | | | | 0.0000 | |
Hartford Ultrashort Bond HLS Fund(1) | | | 58,406,990.3858 | | | | 2,770,270.3849 | | | | 3,644,479.3663 | | | | 0.0000 | |
Hartford Value HLS Fund(1) | | | 29,266,957.4890 | | | | 702,207.5122 | | | | 615,049.2288 | | | | 0.0000 | |
| (1) | Meeting Held on March 14, 2016 |
| (2) | Meeting Held on April 19, 2016 |
Proposal Three: The approval of a change to each Fund’s fundamental investment restriction on the purchase or sale of commodities.
| | | | | | | | | | | | | | | | |
Fund | | For | | | Against | | | Abstain | | | Broker
Non-Votes | |
Hartford Balanced HLS Fund(1) | | | 81,288,968.9488 | | | | 5,635,762.1557 | | | | 3,538,983.2955 | | | | 0.0000 | |
Hartford Capital Appreciation HLS Fund(1) | | | 90,357,661.3779 | | | | 7,017,376.6818 | | | | 5,968,583.3455 | | | | 103,951.0000 | |
Hartford Disciplined Equity HLS Fund(1) | | | 42,740,567.2203 | | | | 3,159,268.9653 | | | | 1,615,355.7094 | | | | 0.0000 | |
Hartford Dividend and Growth HLS Fund(1) | | | 120,935,131.1770 | | | | 7,055,101.5694 | | | | 9,934,123.4206 | | | | 0.0000 | |
Hartford Global Growth HLS Fund(1) | | | 15,495,357.3020 | | | | 1,115,138.5477 | | | | 594,420.9483 | | | | 0.0000 | |
Hartford Growth Opportunities HLS Fund(1) | | | 33,475,868.2213 | | | | 3,044,570.2604 | | | | 1,293,687.6563 | | | | 0.0000 | |
Hartford Healthcare HLS Fund(1) | | | 7,389,062.4079 | | | | 237,430.7261 | | | | 282,266.0000 | | | | 0.0000 | |
Hartford High Yield HLS Fund(1) | | | 38,619,974.0367 | | | | 2,953,248.4360 | | | | 1,397,073.7203 | | | | 0.0000 | |
Hartford International Opportunities HLS Fund(1) | | | 65,713,476.3829 | | | | 4,653,207.1841 | | | | 2,174,417.2246 | | | | 119,548.0000 | |
Hartford MidCap HLS Fund(2) | | | 21,735,895.5978 | | | | 1,310,017.8354 | | | | 3,439,886.7667 | | | | 0.0000 | |
Hartford MidCap Value HLS Fund(1) | | | 27,441,826.5228 | | | | 2,812,031.2698 | | | | 656,999.6594 | | | | 0.0000 | |
Hartford Small Cap Growth HLS Fund(2) | | | 22,854,308.9933 | | | | 737,316.4196 | | | | 814,340.4582 | | | | 1,453,102.0000 | |
Hartford Small Company HLS Fund(1) | | | 32,400,067.9806 | | | | 1,692,016.0679 | | | | 1,118,018.5785 | | | | 20,314.0000 | |
Hartford Small/Mid Cap Equity HLS Fund(1) | | | 11,080,805.5805 | | | | 932,618.7772 | | | | 706,567.9533 | | | | 0.0000 | |
Hartford Stock HLS Fund(1) | | | 19,921,462.3284 | | | | 1,434,071.9932 | | | | 1,135,830.6724 | | | | 0.0000 | |
Hartford Total Return Bond HLS Fund(1) | | | 214,185,770.1674 | | | | 10,464,606.7312 | | | | 11,227,584.9224 | | | | 0.0000 | |
Hartford U.S. Government Securities HLS Fund(1) | | | 43,716,651.6845 | | | | 1,930,954.9792 | | | | 1,871,745.7433 | | | | 0.0000 | |
Hartford Ultrashort Bond HLS Fund(1) | | | 53,536,980.4415 | | | | 6,806,755.7905 | | | | 4,478,003.9050 | | | | 0.0000 | |
Hartford Value HLS Fund(1) | | | 27,912,646.2080 | | | | 2,004,484.6138 | | | | 667,083.4082 | | | | 0.0000 | |
| (1) | Meeting Held on March 14, 2016 |
| (2) | Meeting Held on April 19, 2016 |
Shareholder Meeting Results (Unaudited) – (continued)
Proposal Four: The approval of a change to each Fund’s fundamental investment restriction on the purchase or sale of real estate.
| | | | | | | | | | | | | | | | |
Fund | | For | | | Against | | | Abstain | | | Broker
Non-Votes | |
Hartford Balanced HLS Fund(1) | | | 81,470,822.4042 | | | | 5,574,504.6504 | | | | 3,418,387.3454 | | | | 0.0000 | |
Hartford Capital Appreciation HLS Fund(1) | | | 90,474,484.6178 | | | | 6,710,536.4107 | | | | 6,158,600.3767 | | | | 103,951.0000 | |
Hartford Disciplined Equity HLS Fund(1) | | | 42,874,762.6053 | | | | 3,212,309.5904 | | | | 1,428,119.6993 | | | | 0.0000 | |
Hartford Dividend and Growth HLS Fund(1) | | | 120,952,568.0386 | | | | 6,932,760.8916 | | | | 10,039,027.2368 | | | | 0.0000 | |
Hartford Global Growth HLS Fund(1) | | | 15,520,883.8161 | | | | 1,098,876.6036 | | | | 585,156.3783 | | | | 0.0000 | |
Hartford Growth Opportunities HLS Fund(1) | | | 33,749,470.9784 | | | | 2,868,379.3895 | | | | 1,196,275.7701 | | | | 0.0000 | |
Hartford Healthcare HLS Fund(1) | | | 7,432,802.6736 | | | | 196,556.4604 | | | | 279,400.0000 | | | | 0.0000 | |
Hartford High Yield HLS Fund(1) | | | 39,436,209.7147 | | | | 2,262,975.8436 | | | | 1,271,110.6347 | | | | 0.0000 | |
Hartford International Opportunities HLS Fund(1) | | | 65,420,486.7348 | | | | 4,759,155.8674 | | | | 2,361,458.1894 | | | | 119,548.0000 | |
Hartford MidCap HLS Fund(2) | | | 21,881,634.0440 | | | | 1,172,332.0028 | | | | 3,431,834.1531 | | | | 0.0000 | |
Hartford MidCap Value HLS Fund(1) | | | 27,558,354.3914 | | | | 2,735,474.2153 | | | | 617,028.8453 | | | | 0.0000 | |
Hartford Small Cap Growth HLS Fund(2) | | | 22,797,615.7646 | | | | 771,914.4318 | | | | 836,435.6747 | | | | 1,453,102.0000 | |
Hartford Small Company HLS Fund(1) | | | 32,410,684.5013 | | | | 1,718,420.3543 | | | | 1,080,997.7714 | | | | 20,314.0000 | |
Hartford Small/Mid Cap Equity HLS Fund(1) | | | 11,091,596.4195 | | | | 921,828.9382 | | | | 706,566.9533 | | | | 0.0000 | |
Hartford Stock HLS Fund(1) | | | 19,971,227.0680 | | | | 1,403,083.2773 | | | | 1,117,054.6487 | | | | 0.0000 | |
Hartford Total Return Bond HLS Fund(1) | | | 213,171,787.8004 | | | | 10,258,694.4802 | | | | 12,447,479.5404 | | | | 0.0000 | |
Hartford U.S. Government Securities HLS Fund(1) | | | 43,589,879.0144 | | | | 2,063,759.2769 | | | | 1,865,714.1157 | | | | 0.0000 | |
Hartford Ultrashort Bond HLS Fund(1) | | | 56,258,776.1717 | | | | 4,480,935.3284 | | | | 4,082,028.6369 | | | | 0.0000 | |
Hartford Value HLS Fund(1) | | | 27,865,523.8861 | | | | 2,025,587.4178 | | | | 693,102.9261 | | | | 0.0000 | |
| (1) | Meeting Held on March 14, 2016 |
| (2) | Meeting Held on April 19, 2016 |
Proposal Five: The approval of a change to each Fund’s fundamental investment restriction on concentration of investments in a particular industry or group of industries.
| | | | | | | | | | | | | | | | |
Fund | | For | | | Against | | | Abstain | | | Broker
Non-Votes | |
Hartford Balanced HLS Fund(1) | | | 81,674,660.5982 | | | | 5,302,528.6361 | | | | 3,486,525.1657 | | | | 0.0000 | |
Hartford Capital Appreciation HLS Fund(1) | | | 90,510,990.8164 | | | | 6,729,239.4261 | | | | 6,103,391.1627 | | | | 103,951.0000 | |
Hartford Disciplined Equity HLS Fund(1) | | | 42,682,748.9657 | | | | 3,381,859.9812 | | | | 1,450,582.9481 | | | | 0.0000 | |
Hartford Dividend and Growth HLS Fund(1) | | | 120,970,647.5337 | | | | 6,807,830.8540 | | | | 10,145,877.7793 | | | | 0.0000 | |
Hartford Global Growth HLS Fund(1) | | | 15,460,933.5211 | | | | 1,100,386.1630 | | | | 643,597.1139 | | | | 0.0000 | |
Hartford Growth Opportunities HLS Fund(1) | | | 34,057,767.4776 | | | | 2,502,222.8695 | | | | 1,254,135.7909 | | | | 0.0000 | |
Hartford Healthcare HLS Fund(1) | | | 7,356,059.4079 | | | | 215,903.7261 | | | | 336,796.0000 | | | | 0.0000 | |
Hartford High Yield HLS Fund(1) | | | 38,997,464.6663 | | | | 2,443,739.0068 | | | | 1,529,092.5199 | | | | 0.0000 | |
Hartford International Opportunities HLS Fund(1) | | | 65,919,691.1593 | | | | 4,371,867.1265 | | | | 2,249,542.5058 | | | | 119,548.0000 | |
Hartford MidCap HLS Fund(2) | | | 21,990,046.4563 | | | | 1,060,849.8385 | | | | 3,434,903.9051 | | | | 0.0000 | |
Hartford MidCap Value HLS Fund(1) | | | 28,431,101.4981 | | | | 1,785,406.7346 | | | | 694,349.2193 | | | | 0.0000 | |
Hartford Small Cap Growth HLS Fund(2) | | | 22,897,970.5236 | | | | 656,892.1882 | | | | 851,103.1593 | | | | 1,453,102.0000 | |
Hartford Small Company HLS Fund(1) | | | 32,497,197.3982 | | | | 1,598,477.7819 | | | | 1,114,427.4469 | | | | 20,314.0000 | |
Hartford Small/Mid Cap Equity HLS Fund(1) | | | 11,405,530.9601 | | | | 474,369.3976 | | | | 840,091.9533 | | | | 0.0000 | |
Hartford Stock HLS Fund(1) | | | 20,121,181.8641 | | | | 1,320,102.8157 | | | | 1,050,080.3142 | | | | 0.0000 | |
Hartford Total Return Bond HLS Fund(1) | | | 213,521,822.1041 | | | | 11,032,057.3723 | | | | 11,324,082.3446 | | | | 0.0000 | |
Hartford U.S. Government Securities HLS Fund(1) | | | 43,906,357.5931 | | | | 1,961,362.7968 | | | | 1,651,632.0171 | | | | 0.0000 | |
Hartford Ultrashort Bond HLS Fund(1) | | | 55,013,417.4849 | | | | 5,615,232.3905 | | | | 4,193,090.2616 | | | | 0.0000 | |
Hartford Value HLS Fund(1) | | | 28,792,332.5490 | | | | 1,114,401.2784 | | | | 677,480.4026 | | | | 0.0000 | |
| (1) | Meeting Held on March 14, 2016 |
| (2) | Meeting Held on April 19, 2016 |
Shareholder Meeting Results (Unaudited) – (continued)
Proposal Six: The approval, prospectively, of a modification to the current “manager of managers” policy to permit HFMC, subject to prior approval by the relevant Board and under certain circumstances, to enter into and materially amend agreements with affiliated and unaffiliated sub-advisers without the necessity of obtaining shareholder approval.
| | | | | | | | | | | | | | | | |
Fund | | For | | | Against | | | Abstain | | | Broker
Non-Votes | |
Hartford Balanced HLS Fund(1) | | | 80,053,492.1791 | | | | 7,067,883.7455 | | | | 3,342,338.4754 | | | | 0.0000 | |
Hartford Capital Appreciation HLS Fund(1) | | | 84,780,758.0102 | | | | 12,218,442.5529 | | | | 6,344,420.8421 | | | | 103,951.0000 | |
Hartford Disciplined Equity HLS Fund(1) | | | 41,917,306.0963 | | | | 3,841,237.2822 | | | | 1,756,648.5165 | | | | 0.0000 | |
Hartford Dividend and Growth HLS Fund(1) | | | 110,612,227.3062 | | | | 16,778,345.9366 | | | | 10,533,782.9242 | | | | 0.0000 | |
Hartford Global Growth HLS Fund(1) | | | 15,251,157.4278 | | | | 1,444,026.8433 | | | | 509,732.5269 | | | | 0.0000 | |
Hartford Growth Opportunities HLS Fund(1) | | | 33,483,114.9755 | | | | 3,018,508.6244 | | | | 1,312,502.5381 | | | | 0.0000 | |
Hartford Healthcare HLS Fund(1) | | | 7,289,820.6736 | | | | 341,135.4604 | | | | 277,803.0000 | | | | 0.0000 | |
Hartford High Yield HLS Fund(1) | | | 38,234,809.2887 | | | | 2,848,622.4277 | | | | 1,886,864.4766 | | | | 0.0000 | |
Hartford International Opportunities HLS Fund(1) | | | 56,963,607.7782 | | | | 13,005,523.3902 | | | | 2,571,969.6232 | | | | 119,548.0000 | |
Hartford MidCap HLS Fund(2) | | | 18,188,763.7838 | | | | 4,866,913.8209 | | | | 3,430,122.5952 | | | | 0.0000 | |
Hartford MidCap Value HLS Fund(1) | | | 27,442,511.9566 | | | | 2,643,386.7647 | | | | 824,958.7307 | | | | 0.0000 | |
Hartford Small Cap Growth HLS Fund(2) | | | 22,281,047.0136 | | | | 1,262,701.9146 | | | | 862,216.9429 | | | | 1,453,102.0000 | |
Hartford Small Company HLS Fund(1) | | | 19,677,614.9058 | | | | 14,401,224.8121 | | | | 1,131,262.9091 | | | | 20,314.0000 | |
Hartford Small/Mid Cap Equity HLS Fund(1) | | | 10,297,136.3208 | | | | 1,618,761.2347 | | | | 804,094.7555 | | | | 0.0000 | |
Hartford Stock HLS Fund(1) | | | 19,687,075.2727 | | | | 1,673,510.6656 | | | | 1,130,779.0557 | | | | 0.0000 | |
Hartford Total Return Bond HLS Fund(1) | | | 196,881,270.6523 | | | | 25,686,079.6481 | | | | 13,310,611.5206 | | | | 0.0000 | |
Hartford U.S. Government Securities HLS Fund(1) | | | 42,227,852.5322 | | | | 3,541,602.1734 | | | | 1,749,897.7014 | | | | 0.0000 | |
Hartford Ultrashort Bond HLS Fund(1) | | | 53,531,876.5343 | | | | 7,193,163.8629 | | | | 4,096,699.7398 | | | | 0.0000 | |
Hartford Value HLS Fund(1) | | | 27,968,832.9977 | | | | 1,946,478.4232 | | | | 668,902.8091 | | | | 0.0000 | |
| (1) | Meeting Held on March 14, 2016 |
| (2) | Meeting Held on April 19, 2016 |
HOW TO OBTAIN A COPY OF EACH FUND’S PROXY VOTING POLICIES AND VOTING RECORDS (UNAUDITED)
A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information about how each Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
Each Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q are available (1) without charge, upon request, by calling 888-843-7824 and (2) on the SEC’s website at http://www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Approval of the New Investment Management Agreement (Unaudited)
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc.
Hartford Balanced HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Global Growth HLS Fund
Hartford Growth Opportunities HLS Fund
Hartford Healthcare HLS Fund
Hartford High Yield HLS Fund
Hartford International Opportunities HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Small Cap Growth HLS Fund
Hartford Small Company HLS Fund
Hartford Small/Mid Cap Equity HLS Fund
Hartford Stock HLS Fund
Hartford Total Return Bond HLS Fund
Hartford Ultrashort Bond HLS Fund
Hartford U.S. Government Securities HLS Fund
Hartford Value HLS Fund
Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that each mutual fund’s board of directors, including a majority of those directors who are not “interested persons” of the mutual fund, as defined in the 1940 Act (the “Independent Directors”), initially approve, and subsequently annually review and consider the continuation of, the mutual fund’s investment advisory agreement. At their meeting held on November 4-5, 2015, the Boards of Directors (collectively, the “Board”) of Hartford Series Fund, Inc. (“HLS”) and Hartford HLS Series Fund II, Inc. (“HLS II” and collectively with HLS, the “Companies”), including each of the Independent Directors, unanimously voted to approve a new investment management agreement (the “New Agreement”) between each of HLS and HLS II, on behalf of each of their respective series listed above (each a “Fund” and collectively, the “Funds”), and Hartford Funds Management Company, LLC (“HFMC” or the “Adviser”). At a Joint Annual Meeting of Shareholders held on March 14, 2016 and adjourned to April 19, 2016 with respect to certain Funds, shareholders of the Funds were asked to approve the New Agreement, among other proposals.
The New Agreement differs from the Investment Management Agreements between HLS and HFMC and between HLS II and HFMC, each dated January 1, 2013 (together, the “Previous Agreements”) (the two Previous Agreements have been consolidated into the New Agreement for administrative efficiency) in that it: (i) expands the descriptions of the advisory, management, and administrative services provided by HFMC, as the Funds’ investment manager, to reflect in additional detail the nature and scope of services currently provided by HFMC to the Funds, (ii) updates the discussion of HFMC’s and sub-advisers’ obligations to seek best execution with respect to the Funds’ portfolio transactions to better reflect industry best practices, and (iii) implements general enhancements to clarify existing obligations and responsibilities. The Board did not view the differences between the Previous Agreements and the New Agreement to be material. Importantly, the Board considered that the New Agreement does not result in an increase in the overall fees paid by the Funds.
In the months preceding the November 4-5, 2015 meeting, the Board requested and reviewed written responses from the Adviser to questions posed to the Adviser on behalf of the Independent Directors and supporting materials relating to those questions and responses. In addition, the Board considered such information as it deemed reasonably necessary to evaluate the New Agreement, which included information furnished to the Board at its meetings throughout the year, as well as information specifically prepared in connection with the approval of the New Agreement. Information provided to the Board at its meetings throughout the year included, among other things, reports on Fund performance, legal and compliance matters, sales and marketing activity, shareholder services, and the other services provided to each Fund by HFMC and its affiliates. The Board also considered the materials and in-person presentations by Fund officers and representatives of HFMC received at the Board’s meetings on June 16-17, 2015 and August 4-5, 2015 in connection with its annual approval of the continuation of the Previous Agreements.
In determining whether to approve the New Agreement for the Funds, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate in light of the information that the Board deemed necessary and appropriate through the exercise of its reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to approve the New Agreement was based on a comprehensive consideration of all information provided to the Board throughout
Approval of the New Investment Management Agreement (Unaudited) – (continued)
the year and specifically with respect to the approval of the New Agreement. The Board was also furnished with an analysis of its fiduciary obligations in connection with its evaluation and, throughout the evaluation process, the Board was assisted by counsel for the Funds, and the Independent Directors were also separately assisted by independent legal counsel. A more detailed discussion of the factors the Board considered with respect to its approval of the New Agreement is provided below.
Nature, Extent and Quality of Services Provided by HFMC
The Board considered the nature, extent and quality of the services that the investment manager would continue to provide to each Fund. In this regard, the Board considered, among other things, the terms of the New Agreement and the range of services provided by HFMC thereunder, including HFMC’s oversight of fund operations and service providers, and provision of administrative and investment advisory services in connection with selecting, monitoring and supervising the Funds’ sub-adviser. The Board also considered that Wellington Management Company LLP (“Wellington”) is expected to continue to provide sub-advisory services to each Fund, pursuant to a separate investment sub-advisory agreement between HFMC and Wellington. The Board concluded that it was satisfied with the nature, extent and quality of the services that HFMC would continue to provide to each Fund.
Performance of each Fund and HFMC
The Board considered the investment performance of each Fund and its investment manager and sub-adviser. The Board considered the detailed investment analytics reports provided by Hartford Funds’ Investment Advisory Group throughout the year. These reports include, among other things, information on each Fund’s gross and net returns, the Fund’s investment performance relative to an appropriate benchmark and peer group, various statistics concerning the Fund’s portfolio, and a narrative summary of various factors affecting Fund performance. The Board concluded that it had continued confidence in HFMC’s overall capabilities to manage the Funds.
Costs of the Services and Profitability of HFMC
The Board considered the information that had been provided at meetings on June 16-17, 2015 and August 4-5, 2015 regarding the costs of the services provided and the profits realized by the investment manager and its affiliates from the investment manager’s relationship with the Companies. The Board also considered the updated information provided at the November 4-5, 2015 meeting. The Board noted that the New Agreement would not result in an increase in the overall fees paid by the Funds, and concluded that the profits anticipated to be realized by HFMC and its affiliates from their relationships with the Funds would not be excessive.
Comparison of Fees and Services Provided by HFMC
The Board considered the comparative information that had been provided at meetings on June 16-17, 2015 and August 4-5, 2015 with respect to the services rendered to and the management fees to be paid by each Fund to HFMC and the total expense ratios of the Fund. The Board concluded that each Fund���s fees and total operating expenses, in conjunction with the information about quality of services, profitability, economies of scale, and other matters discussed at the meetings on June 16-17, 2015, August 4-5, 2015 and November 4-5, 2015, were reasonable in light of the services provided under the Previous Agreements and to be provided under the New Agreement.
Economies of Scale
The Board considered information that had been provided at meetings on June 16-17, 2015 and August 4-5, 2015 regarding the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders of the Fund. The Board noted that the New Agreement would not result in any change in the management fee schedules for the Funds, and it concluded that it was satisfied with the extent to which economies of scale would be shared for the benefit of each Fund’s shareholders based on currently available information and the effective advisory fees and expense ratios for the Fund at its current and reasonably anticipated asset levels.
Other Benefits
The Board considered information that had been provided at meetings on June 16-17, 2015 and August 4-5, 2015 with respect to the other benefits to HFMC and its affiliates from their relationships with the Funds, including fees for fund accounting services performed by HFMC, fees for transfer agency services performed by Hartford Administrative Services Company, and distribution fees paid to Hartford Funds Distributors, LLC, which, in turn, pays distribution fees to affiliated insurance companies that include the Funds as investment options under their variable contracts.
* * * *
Approval of the New Investment Management Agreement (Unaudited) – (continued)
Based upon its review of these various factors, among others, the Board unanimously approved the New Agreement at a meeting held on November 4-5, 2015, and the Board concluded that it would be in the best interests of each Fund and its shareholders for shareholders to approve the New Agreement. In reaching this decision, the Board did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of themselves.
THIS PRIVACY POLICY IS NOT PART OF THIS REPORT
Privacy Policy and Practices of The Hartford Financial Services Group, Inc. and its Affiliates
(herein called “we, our, and us”)
This Privacy Policy applies to our United States Operations
We value your trust. We are committed to the responsible:
a) management;
b) use; and
c) protection;
of Personal Information.
This notice describes how we collect, disclose, and protect Personal Information.
We collect Personal Information to:
a) service your Transactions with us; and
b) support our business functions.
We may obtain Personal Information from:
a) You;
b) your Transactions with us; and
c) third parties such as a consumer-reporting agency.
Based on the type of product or service You apply for or get from us, Personal Information such as:
a) your name;
b) your address;
c) your income;
d) your payment; or
e) your credit history;
may be gathered from sources such as applications, Transactions, and consumer reports.
To serve You and service our business, we may share certain Personal Information. We will share Personal Information, only as allowed by law, with affiliates such as:
a) our insurance companies;
b) our employee agents;
c) our brokerage firms; and
d) our administrators.
As allowed by law, we may share Personal Financial Information with our affiliates to:
a) market our products; or
b) market our services;
to You without providing You with an option to prevent these disclosures.
We may also share Personal Information, only as allowed by law, with unaffiliated third parties including:
a) independent agents;
b) brokerage firms;
c) insurance companies;
d) administrators; and
e) service providers;
who help us serve You and service our business.
When allowed by law, we may share certain Personal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:
a) taking surveys;
b) marketing our products or services; or
c) offering financial products or services under a joint agreement between us and one or more financial institutions.
We, and third parties we partner with, may track some of the pages You visit through the use of:
a) cookies;
b) pixel tagging; or
c) other technologies;
and currently do not process or comply with any web browser’s “do not track” signal or other similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.
For more information, please see our Online Privacy Policy, which governs information we collect on our website and our affiliate websites, which is available at Online Privacy Policy, and https://www.thehartford.com/online-privacy-policy.
We will not sell or share your Personal Financial Information with anyone for purposes unrelated to our business functions without offering You the opportunity to:
a) “opt-out;” or
b) “opt-in;”
as required by law.
We only disclose Personal Health Information with:
a) your proper written authorization; or
b) as otherwise allowed or required by law.
Our employees have access to Personal Information in the course of doing their jobs, such as:
a) underwriting policies;
b) paying claims;
c) developing new products; or
d) advising customers of our products and services.
We use manual and electronic security procedures to maintain:
a) the confidentiality; and
b) the integrity of;
Personal Information that we have. We use these procedures to guard against unauthorized access.
Some techniques we use to protect Personal Information include:
a) secured files;
b) user authentication;
c) encryption;
d) firewall technology; and
e) the use of detection software.
We are responsible for and must:
a) identify information to be protected;
b) provide an adequate level of protection for that data;
c) grant access to protected data only to those people who must use it in the performance of their job-related duties.
Employees who violate our Privacy Policy will be subject to discipline, which may include ending their employment with us.
At the start of our business relationship, we will give You a copy of our current Privacy Policy.
We will also give You a copy of our current Privacy Policy once a year if you maintain a continuing business relationship with us.
We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.
As used in this Privacy Notice:
Application means your request for our product or service.
Personal Financial Information means financial information such as:
a) credit history;
b) income;
c) financial benefits; or
d) policy or claim information.
Personal Financial Information may include Social Security Numbers, Driver’s license numbers, or other government-issued identification numbers, or credit, debit card, or bank account numbers.
Personal Health Information means health information such as: a) your medical records; or
b) information about your illness, disability or injury.
Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:
a) Personal Financial Information; and
b) Personal Health Information.
Transaction means your business dealings with us, such as:
a) your Application;
b) your request for us to pay a claim; and
c) your request for us to take an action on your account.
You means an individual who has given us Personal Information in conjunction with:
a) asking about;
b) applying for; or
c) obtaining;
a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.
This Privacy Policy is being provided on behalf of the following affiliates of The Hartford Financial Services Group, Inc.:
1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; American Maturity Life Insurance Company; Archway 60 R, LLC; Business Management Group, Inc.; DMS R, LLC; First State Insurance Company; Fountain Investors I LLC; Fountain Investors II LLC; Fountain Investors III LLC; Fountain Investors IV LLC; FP R, LLC (Delaware); FTC Resolution Company LLC; Hart Re Group L.L.C.; Hartford Accident and Indemnity Company; Hartford Administrative Services Company; Hartford Casualty General Agency, Inc.; Hartford Casualty Insurance Company; Hartford Financial Services, LLC; Hartford Fire General Agency, Inc.; Hartford Fire Insurance Company; Hartford Funds Distributors, LLC; Hartford Funds Management Company, LLC; Hartford Funds Management Group, Inc.; Hartford Holdings, Inc.; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Integrated Technologies, Inc.; Hartford International Life Reassurance Corporation; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life and Annuity Insurance Company; Hartford Life Insurance Company; Hartford Life, Inc.; Hartford Life International Holding Company; Hartford Life Private Placement, LLC; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.; Hartford Specialty Insurance Services of Texas, LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Hartford-Comprehensive Employee Benefit Service Company; HDC R, LLC.; Heritage Holdings, Inc.; HIMCO Distribution Services Company; HIMCO Variable Insurance Trust; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; Lanidex Class B, LLC; Lanidex R, LLC (Delaware); MPC Resolution Company LLC; New England Insurance Company; New England Reinsurance Corporation; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Revere R, LLC; RVR R, LLC; Sentinel Insurance Company, Ltd.; Sunstone R, LLC; Symphony R, LLC; The Evergreen Group Incorporated; The Hartford Alternative Strategies Fund; The Hartford Mutual Funds, Inc.; The Hartford Mutual Funds II, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.
Revised March 2016
Series of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each a “Hartford Fund” and collectively, the “Hartford Funds”) are not subsidiaries of The Hartford Financial Services Group, Inc. (“The Hartford”) but are underwritten, distributed by and advised by subsidiaries of The Hartford. Investments in the Hartford Funds are not guaranteed by The Hartford or any other entity.
This report is submitted for the general information of the shareholders of the Hartford Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Hartford Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Hartford Fund. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Hartford Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.
Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 or 800-279-1541. Investors should read them carefully before they invest.
Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC.
HLSSAR16 8-16 115336-5 Printed in U.S.A.
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| | 888-843-7824 | | | | |  | |
| | @hartfordfunds | | | |
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Item 2. Code of Ethics.
Not applicable to this semi-annual filing
Item 3. Audit Committee Financial Expert.
Not applicable to this semi-annual filing
Item 4. Principal Accountant Fees and Services.
Not applicable to this semi-annual filing
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| | (a) | The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the semi-annual report filed under Item 1 of this form. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since registrant last provided disclosure in response to this requirement.
Item 11. Controls and Procedures.
| | (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are generally effective to provide reasonable assurance, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| | (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | | |
| | | | HARTFORD HLS SERIES FUND II, INC. |
| | | |
| Date: August 29, 2016 | | | | By: | | /s/ James E. Davey |
| | | | | | James E. Davey, President and |
| | | | | | Chief Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | | | |
| | | |
| Date: August 29, 2016 | | | | By: | | /s/ James E. Davey |
| | | | | | James E. Davey, President and |
| | | | | | Chief Executive Officer |
| | | |
| Date: August 29, 2016 | | | | By: | | /s/ Michael Flook |
| | | | | | Michael Flook, Vice President, |
| | | | | | Treasurer and Controller |
