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)
690 Lee Road, Wayne, Pennsylvania 19087
(Address of Principal Executive Offices) (Zip Code)
Thomas Phillips, Esquire
Hartford Funds Management Company, LLC
690 Lee Road
Wayne, Pennsylvania 19087
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (610) 386-4068
Date of fiscal year end: December 31
Date of reporting period: December 31, 2017
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.
A MESSAGE FROM THE PRESIDENT
Dear Fellow Shareholders:
Thank you for investing in Hartford HLS Funds. The following is the Funds’ Annual Report, covering the period from January 1, 2017 through December 31, 2017.
Market Review
During the 12 months ended December 31, 2017, U.S. stocks, as measured by the
S&P 500 Index,1 continued their upward trajectory. During this period, the S&P 500 Index generated a 21.8% total return, confirming that 2017 was a banner year for stocks.
The primary drivers of market progress during the period were faster economic growth, positive corporate earnings, and positive job reports. These market conditions have served as the basis of the U.S. Federal Reserve’s (Fed) interest-rate hike cycle that began in December 2015 and continued in December 2017, when short-term rates rose by 0.25% to a range of 1.25% to 1.50%. At the time of this writing, consensus expectations were for a continued gradual increase in interest rates throughout 2018, which should help markets better digest and account for such changes. Central banks overseas are also expected to begin removing accommodative policies, which may impact global markets.
Going forward, politics both at home and abroad are likely to continue playing a key role in driving market movements. Congress has approved a budget resolution for the new fiscal year and pushed back the deadline to lift the debt ceiling in an effort to tie federal funding for disaster relief to the bills following three major hurricanes in the late summer and early fall. Additionally, in December, the first significant overhaul of the US tax code in more than 30 years passed.
At home, questions surrounding healthcare and concerns about possible nuclear action from North Korea may be contributing to market uncertainty. In Europe, uncertainty remains with respect to Britain’s “Brexit” undertaking to leave the European Union, which could influence markets or cause an uptick in volatility.
We encourage you to maintain a strong relationship with your financial advisor, who can help guide you through shifting markets confidently. He or she can help you proactively build a portfolio that takes market uncertainty into account, along with your unique investment goals and risk tolerances. Your advisor can help you find a fit within our family of funds as you work toward those goals.
Thank you again for investing in Hartford HLS Funds. For the most up-to-date information on our funds, please take advantage of all the resources available at hartfordfunds.com.
James Davey
President
Hartford HLS Funds
| 1 | S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. The index is unmanaged and not available for direct investment. Past performance is not indicative of future results. |
Hartford HLS Funds
Table of Contents
Hartford Balanced HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Balanced IA | | | 15.59% | | | | 10.32% | | | | 6.41% | |
Balanced IB | | | 15.30% | | | | 10.04% | | | | 6.15% | |
S&P 500 Index | | | 21.83% | | | | 15.79% | | | | 8.50% | |
Bloomberg Barclays Government/Credit Bond Index | | | 4.00% | | | | 2.13% | | | | 4.08% | |
ICE BofAML 3-Month US Treasury Bill Index | | | 0.85% | | | | 0.27% | | | | 0.39% | |
Balanced HLS Fund Blended Index | | | 14.24% | | | | 10.17% | | | | 6.83% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) is a market capitalization-weighted price index composed of 500 widely held common stocks.
Bloomberg Barclays Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes) 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.
ICE BofAML 3-Month US Treasury Bill Index (reflects no deduction for fees, expenses or taxes) is a subset of the ICE BofAML 0-1 Year U.S. Treasury Index including all securities with a remaining term to final maturity less than 3 months.
On 10/20/17 the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index was rebranded as ICE BofAML 3-Month US Treasury Bill Index.
Balanced HLS Fund Blended Index is calculated by Hartford Funds Management Company, LLC (“HFMC”) and represents the weighted return of 60% S&P 500 Index, 35% Bloomberg Barclays Government/Credit Bond Index and 5% ICE BofAML 3-US Month Treasury Bill Index.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical or current expense waivers/reimbursements from HFMC without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
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| Hartford Balanced HLS Fund |
Manager Discussion
December 31, 2017 (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
Loren L. Moran, CFA
Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Adam H. Illfelder, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Balanced HLS Fund returned 15.59% for the twelve-month period ended December 31, 2017, outperforming the Fund’s blended benchmark, which is comprised of 60% S&P 500 Index, 35% Bloomberg Barclays Government/Credit Bond Index, and 5% ICE BofAML 3-Month US Treasury Bill Index, which returned 14.24% for the same period. The S&P 500, Bloomberg Barclays Government/Credit Bond, and ICE BofAML 3-Month US Treasury Bill Indices returned 21.83%, 4.00% and 0.85%, respectively for the same period. During the same period, the Fund also outperformed the 15.41%% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term. During the twelve-month period, nine of the eleven sectors within the S&P 500 Index posted positive returns, led by Information Technology (+39%), Materials (+24%), and Consumer Discretionary (+23%), while Telecommunication Services (-1%) and Energy (-1%) fell.
Over the period, global fixed income markets generated solid gains as measured by the Bloomberg Barclays Global Aggregate Index. Escalating geopolitical tensions and serial disappointments in inflation data helped to contain the increase in sovereign debt yields prompted by a number of central banks ending quantitative easing. In the U.S., political controversies – in particular, the ongoing investigation into alleged involvement by Russia in the 2016 presidential election – led to a short-lived dip in risk assets. Elections in France and the United Kingdom (U.K.) presented potential sources of volatility, but proved benign in the aftermath. Despite concerns about prospects for retailers, particularly in the U.S., generally solid
|
| Hartford Balanced HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
corporate earnings, strong global economic data, and continued demand for yield-producing assets supported credit markets and spreads tightened. Throughout the year, most developed market currencies strengthened versus the U.S. dollar (USD) as political uncertainty and continued skepticism about the Fed’s projected rate-hiking path weighed on the currency, though the U.S. dollar recovered a bit during the fourth quarter of 2017. Monetary policy continued on an incrementally more hawkish path throughout the year. (“Hawkish” generally describes a monetary policy that favors higher interest rates to mitigate the risk of inflation.) The Fed announced it would begin tapering its asset purchases in October 2017. The Fed also increased rates three times in 2017 and projected an additional three increases in 2018. At its October meeting, the European Central Bank (ECB) announced a reduction in its monthly asset purchases to €30 billion from €60 billion beginning in January 2018, but extended the purchase program through September 2018. Strong growth and inflation data prompted the Bank of Canada to increase rates for the first time in seven years while the Bank of England (BoE) increased interest rates for the first time in ten years; however the BoE’s press conference tilted dovish, noting that future rate increases would depend on the stability of the transition of the U.K.’s exit from the E.U. (Brexit). (“Dovish” describes a monetary policy that favors lower interest rates to encourage economic growth.)
Developed markets’ government yields ended mixed over the period as improving global economic data were balanced by subdued inflation. In the U.S., the yield curve flattened; front-end yields, which were heavily influenced by Fed monetary policy expectations, rose, while longer-term rates declined. Most Eurozone government bond yields increased along with improving growth prospects across the region. Longer-term U.K. yields declined amid Brexit uncertainty. Japanese government bond yields, anchored by the Bank of Japan’s yield-targeting policy, were little changed. Absolute returns in most major fixed income credit risk sectors were positive for each quarter of the year. On an excess return basis, all of the major credit risk sectors posted positive returns over the period, including securitized, high yield, emerging markets debt, and investment grade corporates, led by lower-rated sectors.
During the period, asset allocation decisions contributed positively to the custom benchmark-relative performance during the period. The Fund was generally overweight equities and underweight fixed income and cash relative to the custom benchmark. The equity portion of the Fund underperformed the S&P 500 Index while the fixed income portion of the Fund outperformed the Bloomberg Barclays Government/Credit Bond Index.
Equity underperformance versus the S&P 500 Index was driven primarily by security selection. In particular, weak security selection in the Healthcare, Information Technology, and Consumer Discretionary sectors detracted from relative performance, which was partially offset by stronger selection in the Utilities and Industrials sectors.
Sector allocation, which is a residual of the Fund’s bottom-up security selection process, contributed positively to relative performance during the period primarily due to the Fund’s underweight to Telecommunication Services and overweight to Information Technology, which was slightly offset by negative relative performance from an overweight to Energy.
Stocks that detracted the most from relative and absolute returns in the equity portion of the Fund during the period were Academy CoInvest (Consumer Discretionary), Allergan (Healthcare), and Viacom (Consumer Discretionary). The fair valuation of private placement Academy CoInvest, which owns Academy Sports Store, a retailer of sports and recreational products, fell due to declines in its earnings and difficult conditions faced by sports retailers in general. Allergan, a global pharmaceutical company, saw its stock price fall as the market focused on a court ruling against the company in a patent lawsuit in October 2017. Shares of Viacom, a U.S.-based cable network programmer, fell during the period due to concerns that hit the broader industry related to domestic advertising spending, after companies in both the auto and electronics sectors reduced their ad budgets during the first quarter.
Top contributors to performance relative to the S&P 500 Index in the equity portion of the Fund during the period included General Electric (Industrials), PulteGroup (Consumer Discretionary), and Vertex Pharmaceuticals (Healthcare). Not owing GE, a U.S.-based multinational conglomerate, was beneficial to relative performance as the stock came under pressure in the back half of the year over fears that the dividend would be cut meaningfully. These fears were ultimately realized in the third quarter of 2017, when the stock missed on earnings, lowered full year guidance, cut the dividend 50%, and messaged that it would take years for the company to be rightsized after management missteps and lack of innovation. Shares of PulteGroup, a U.S.-based homebuilder, rose during the period on strong earnings that beat consensus expectations and the stock price benefited from a healthy U.S. housing market. The share price of Vertex Pharmaceuticals, a U.S.-based pharmaceutical company, rose after the firm announced positive Phase 1 and Phase 2 data for 3 different three-drug regimens for treating cystic fibrosis during the period. Apple (Information Technology), Microsoft (Information Technology), and Alphabet (Information Technology) were the top contributors to absolute returns during the period.
The fixed income portion of the Fund outperformed the Bloomberg Barclays Government/Credit Bond Index during the period. Security selection within investment grade corporate credit was the primary contributor to relative performance, particularly within the Financials sector. Allocation to Treasury Inflation-Protected Securities (TIPS) also contributed positively to relative performance during the period. Duration and yield curve positioning also slightly contributed positively to performance relative to the Bloomberg Barclays Government/Credit Bond Index over the period. An out of benchmark allocation to non-agency residential mortgage-backed securities detracted from relative performance.
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| Hartford Balanced HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (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?
The global economy ended 2017 on a positive note, with synchronized growth continuing through year-end. We believe the macro environment looks favorable for markets over the next few quarters. With U.S. tax reform now enacted into law, we see the potential for a further acceleration in U.S. gross domestic product (GDP) growth, driven by increases in consumer expenditures, corporate profits, and business spending. We are watching for a pick-up in inflation, as tax stimulus pulls forward growth in an economy with a low unemployment rate and decent current growth. Our expectation is for continued strong earnings growth in the U.S. on the back of tax reform and solid underlying economic fundamentals.
Within fixed income, in this environment, we expect corporate default rates to remain low in the near term. This favorable fundamental backdrop is tempered by somewhat expensive valuations across many fixed income sectors. We forecast that in 2018 most credit sectors will deliver returns that exceed the returns of similar duration government bonds. The yield spread of credit instruments over comparable government bonds is relatively narrow by historical standards. Consequently, we anticipate that positive excess returns from credit will be driven primarily by the superior income that credit sectors provide, rather than by further spread tightening.
Within equities, the Fund ended the period most overweight Financials and most underweight Consumer Staples sectors. Within fixed income, we ended the period with a moderately pro-cyclical risk posture, continuing to favor investment grade credit, particularly Financials and European banks, and the securitized sectors.
At the end of the period, the Fund’s equity exposure was at 67% compared to 60% in its custom 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 and more volatile 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 (e.g., “Brexit”). 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.
Composition by Security Type
as of December 31, 2017
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 66.7 | % |
| | | | |
Total | | | 66.7 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 4.0 | % |
Corporate Bonds | | | 18.6 | |
Foreign Government Obligations | | | 0.6 | |
Municipal Bonds | | | 1.5 | |
U.S. Government Agencies | | | 0.5 | |
U.S. Government Securities | | | 7.6 | |
| | | | |
Total | | | 32.8 | % |
| | | | |
Short-Term Investments | | | 0.3 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Capital Appreciation HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Capital Appreciation IA | | | 22.14% | | | | 14.21% | | | | 6.52% | |
Capital Appreciation IB | | | 21.82% | | | | 13.92% | | | | 6.25% | |
Capital Appreciation IC | | | 21.50% | | | | 13.64% | | | | 5.99% | |
Russell 3000 Index | | | 21.13% | | | | 15.58% | | | | 8.60% | |
S&P 500 Index | | | 21.83% | | | | 15.79% | | | | 8.50% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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 (reflects no deduction for fees, expenses or taxes) is a market capitalization-weighted price index composed of 500 widely held common stocks.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.68%, 0.93% and 1.18%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
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| Hartford Capital Appreciation HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
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 Chief Investment Strategist
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Capital Appreciation HLS Fund returned 22.14% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Russell 3000 Index, which returned 21.13% for the same period, and the Fund’s other benchmark, the S&P 500 Index, which returned 21.83% for the same period. During the same period, the Fund also outperformed the 19.37% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump
at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
During the period, equity returns varied by market-cap, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index. Nine of the eleven sectors in the Russell 3000 Index had positive returns during the period. Information Technology (+37%), Materials (+24%), and Healthcare (+23%) performed best, while Energy (-2%) and Telecommunication Services (-1%) lagged the broader index.
Sector allocation, a result of the Fund’s bottom-up security selection process, was the primary contributor to performance relative to the Russell 3000 Index during the period. An underweight to the Energy sector and an overweight to the Information Technology sector contributed positively to benchmark-relative returns. This was only partially offset by an overweight to Financials, which detracted from relative performance. Security selection also contributed positively to benchmark-relative performance during the period. Strong security selection in the Information Technology and Financials sectors more than offset weaker selection in Healthcare and Utilities, which detracted from performance. From a factor perspective, the Fund experienced a slight tailwind as the overweight to growth and liquidity (more frequently traded securities) contributed positively to results. International exposure (country and currency) also contributed positively to performance, in particular due to the Fund’s exposure within Emerging Markets (China and South Korea), Japan and the U.K.
General Electric (Industrials), Alibaba (Information Technology), and Exxon Mobil (Energy) contributed positively to returns relative to the Russell 3000 Index over the period. Not holding benchmark constituent General Electric, a U.S.-based multinational conglomerate operating in the Technology infrastructure, capital finance, and consumer and industrial products industries, during the period contributed as its stock price fell on disappointing fourth-quarter earnings reported in 2017 and several executive leadership
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| Hartford Capital Appreciation HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
changes. Shares of Alibaba, a Chinese-based company focused on online and mobile commerce, rose over the period as the company reported financial results that exceeded expectations, particularly in the third quarter of 2017. Not owning benchmark constituent Exxon Mobil, a U.S.-based integrated oil and gas company, contributed positively to relative performance as shares of the company underperformed after reporting a 40% drop in fourth quarter 2016 earnings, which was announced in early 2017, as low oil and natural-gas prices took a toll on the company. Facebook (Information Technology) and Netflix (Consumer Discretionary) were also top contributors to absolute returns over the period.
The largest detractors relative to the Russell 3000 Index over the period were Apple (Information Technology), Uber (Information Technology), and Amazon (Consumer Discretionary). Shares of Apple, a U.S.-based mobile devices manufacturer and distributor of digital content, rose during the period as the stock outperformed based on rising expectations for the iPhone 8 release and a more favorable political backdrop for U.S. based global technology companies. Not owning a position in the benchmark constituent detracted from benchmark-relative performance. Uber, a U.S.-based transportation technology company, also detracted from performance for the period. The fair valuation of private placement Uber Technologies fell during the period as a result of several well publicized negative events and the ultimate departure of its CEO. The Fund was underweight benchmark constituent Amazon during the year and did not hold the stock by year end. Being underweight the U.S.-based global e-commerce retailer detracted from performance as the stock price of the company rose as it continued to expand its categories, including its purchase of Whole Foods, which the market viewed positively. TESARO (Healthcare) and Academy CoInvest (Consumer Discretionary) were also top absolute detractors during the period.
During the period, the Fund used currency forwards to hedge currency risk. The use of currency forwards detracted slightly from performance.
What is the outlook?
Following a year in which the S&P 500 Index total return was up every month, we believe the U.S. will experience late cycle acceleration as a result of the recently passed tax reform. We think that the economic environment remains strong with full employment, fiscal stimulus and deregulation ongoing. However, political risks remain both domestic and abroad, as the North Korean situation continues. From a factor perspective, we remain constructive on value, believing it will benefit from the aforementioned acceleration. Should we see the yield curve continue to flatten (or invert), this will also be positive for value. While valuations remain high, there are limited risk indicators signaling a near term change. These valuations are supported by low inflation, low rates, strong corporate earnings, and generally accommodative monetary policy. We expect higher rates and increased equity volatility in 2018 as last year was one of the lowest risk equity markets by many measures.
At the end of the period, the Fund’s largest overweights were to the Financials and Materials sectors, while the Fund’s largest underweights were to the Energy and Consumer Staples 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 and more volatile 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 (e.g., “Brexit”). The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 12.2 | % |
Consumer Staples | | | 5.7 | |
Energy | | | 3.9 | |
Financials | | | 16.7 | |
Health Care | | | 13.4 | |
Industrials | | | 10.9 | |
Information Technology | | | 23.6 | |
Materials | | | 4.7 | |
Real Estate | | | 3.3 | |
Telecommunication Services | | | 1.4 | |
Utilities | | | 2.4 | |
| | | | |
Total | | | 98.2 | % |
| | | | |
Short-Term Investments | | | 1.9 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Disciplined Equity HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Disciplined Equity IA | | | 21.92% | | | | 16.80% | | | | 8.80% | |
Disciplined Equity IB | | | 21.63% | | | | 16.51% | | | | 8.53% | |
S&P 500 Index | | | 21.83% | | | | 15.79% | | | | 8.50% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) is a market capitalization-weighted price index composed of 500 widely held common stocks.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Disciplined Equity HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Mammen Chally, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
David A. Siegle, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
Douglas W. McLane, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of the Hartford Disciplined Equity HLS Fund returned 21.92% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the S&P 500 Index, which returned 21.83% for the same period. During the same period, the Fund also outperformed the 20.86% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed positively to positive market sentiment. Tax
reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, nine of the eleven sectors within the S&P 500 Index rose, led by Information Technology (+39%), Materials (+24%), and Consumer Discretionary (+23%). Telecommunication Services (-1%) and Energy (-1%) lagged on a relative basis.
Sector allocation, which is a residual of our bottom-up security selection process, was the primary contributor to returns relative to the S&P 500 Index during the period. Underweight allocations to the Energy and Telecommunication Services sectors more than offset the negative impact from an overweight to the Utilities sector and an underweight to the Information Technology sector. Security selection slightly detracted from benchmark relative returns during the period, primarily within Healthcare, Consumer Discretionary, and Information Technology, which more than offset stronger selection within the Industrials and Utilities sectors, which contributed positively.
The largest contributors to performance relative to the S&P 500 Index over the period were General Electric (Industrials), Estee Lauder (Consumer Staples), and Exxon Mobil (Energy). Not holding benchmark constituent General Electric, a U.S.-based multinational conglomerate operating in the Technology infrastructure, capital finance, and consumer and industrial products industries, for the majority of the period contributed positively after its stock price fell on disappointing fourth quarter earnings and several executive leadership changes. Shares of Estee Lauder, a U.S.-based
|
| Hartford Disciplined Equity HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
cosmetics company, rose during the period as the company had very strong financial performance with solid earnings reports quarter over quarter. Not owning benchmark constituent Exxon Mobil, a U.S.-based integrated oil and gas company, contributed positively as shares of the company underperformed after reporting a 40% drop in fourth quarter 2016 earnings, as low oil and natural-gas prices took a toll on the company. Apple (Information Technology) and Alphabet (Information Technology) contributed positively to absolute performance during the period.
The largest detractors from performance relative to the S&P 500 Index over the period were Amazon (Consumer Discretionary), Kroger (Consumer Staples), and Allergan (Healthcare). Not holding benchmark constituent Amazon, a U.S.-based global e-commerce retailer, detracted from performance as the company continued to expand its categories, such as its purchase of Whole Foods, which the market reacted positively in response to this purchase. Conversely, shares of Kroger, a U.S.-based supermarket retailer, fell during the period as investors were concerned about the implications of Amazon entering their market after their acquisition of Whole Foods. We sold the Fund’s position during the period. Shares of Allergan, a global pharmaceutical company, declined during the period due to increased investor concerns over competitive pressures for some key products. Concho Resources (Energy) also detracted from 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?
With the significant changes to tax law, we believe that corporate profits are set to rise materially in 2018. It is likely in our opinion that some of these tax savings are competed away or reinvested in the business for various reasons including employee retention, competitive pricing or marketing support. In the near term, we believe some of the windfalls will fall to the bottom line but we expect to spend more time this year researching the sustainability of margins and changes to the competitive intensity as some of the improved profitability may be eroded.
Given the additional temporary stimulus through the lowering of individual tax rates, we would expect growth and inflation to pick up a touch. At the end of the period, confidence appeared high and manufacturing activity was improving across the globe. Job growth remains robust and we may be approaching employment levels in the U.S. where companies are likely to have difficulty filling positions. In short, there are not many red flags that are flashing from an economic perspective in our view. However, if we do not see a continued pick-up in growth, we believe the risk to the economy increases in a downturn as the ability of the government to respond is restricted by the starting point of the deficit in the budget.
Interest rates and currencies we expect will be a focus of the market. We do not expect much change from the Fed and will be watching
inflation and wage growth trends as they are likely to be a very important indicator to any changes the Fed might make in the coming months. While the economy may be on a strong footing, rapid changes to rates or the U.S. dollar exchange rate may have a material impact.
The potential for increased volatility in the equity markets may come from geopolitics indeed, something that the market has remarkably adjusted to. Potential change to the composition of the U.S. Congress is another event that investors will have to grapple with as we approach the mid-term elections late in 2018. In the near term, however, we think of geopolitical events with greater importance as any legislative changes that impact the economy from a change in the composition of the House or Senate are only likely further out in time. Republicans have expressed an interest in pivoting to welfare reform which does appear to be a harder hill to climb and we will wait for some details before commenting.
At the end of the period, the Fund’s largest overweights were to the Healthcare and Utilities sectors, while the Fund’s largest underweights were to the Energy and Real Estate sectors, relative to the S&P 500 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 and more volatile 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 (e.g., “Brexit”).
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 12.5 | % |
Consumer Staples | | | 8.2 | |
Energy | | | 1.8 | |
Financials | | | 16.5 | |
Health Care | | | 15.8 | |
Industrials | | | 10.8 | |
Information Technology | | | 23.1 | |
Materials | | | 3.5 | |
Telecommunication Services | | | 1.8 | |
Utilities | | | 5.0 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 1.2 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Dividend and Growth HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Dividend and Growth IA | | | 18.36% | | | | 14.90% | | | | 8.20% | |
Dividend and Growth IB | | | 18.11% | | | | 14.62% | | | | 7.93% | |
S&P 500 Index | | | 21.83% | | | | 15.79% | | | | 8.50% | |
Russell 1000 Value Index | | | 13.66% | | | | 14.04% | | | | 7.10% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) is a market capitalization-weighted price index composed of 500 widely held common stocks.
Russell 1000 Value Index (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.68% and 0.93%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Edward P. Bousa, CFA
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
Mark E. Vincent
Managing Director and Equity Research Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Dividend and Growth HLS Fund returned 18.36% for the twelve-month period ended December 31, 2017, underperforming one of the Fund’s benchmarks, the S&P 500 Index, which returned 21.83% for the same period. The Fund outperformed the Russell 1000 Value Index, its other benchmark, which returned 13.66% for the same period. During the same period, the Fund outperformed the 15.23% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business
spending contributed positively to market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, nine of the eleven sectors within the S&P 500 Index posted positive returns, led by Information Technology (+39%), Materials (+24%), and Consumer Discretionary (+23%), while Telecommunication Services (-1%) and Energy (-1%) fell.
Sector allocation, a result of our bottom up stock selection process, was the primary detractor from performance relative to the S&P 500 Index during the period. An underweight to the Information Technology sector and an overweight to the Energy sector more than offset the positive impact of underweights to the Real Estate and Consumer Staples sectors. Security selection also detracted from benchmark-relative returns during the period. Weak selection within Healthcare, Financials, and Information Technology was only partially offset by stronger selection within Industrials and Real Estate.
The Fund’s top detractors from returns relative to the S&P 500 Index were a position in Hess (Energy) and lack of exposure to benchmark constituents Amazon (Consumer Discretionary) and Facebook (Information Technology). The stock price of Hess, a U.S.-based integrated oil company, fell as a result of concerns about the long term outlook for oil and gas prices due to oversupply and rising inventories. Shares of Amazon, a U.S.-based global e-commerce retailer, rose during the period, as it continued to expand its categories, most notably, its intended purchase of Whole Foods. Not holding this benchmark constituent detracted from relative
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
performance. The stock price of Facebook, a U.S.-based social networking platform operator, rose as it continued to expand its offerings and benefited from increasing advertising revenue. Not holding this benchmark constituent detracted from relative performance. Anadarko (Energy) and Synchrony Financial (Financials) were top absolute detractors during the period.
The Fund’s top contributors to performance relative to the S&P 500 Index during the period were General Electric (Industrials), CSX Corporation (Industrials), and AT&T (Telecommunication Services). Not holding benchmark constituent General Electric, a U.S.-based multinational conglomerate operating in the technology infrastructure, capital finance, and consumer and industrial products industries, for the majority of the period contributed positively after its stock price fell on disappointing fourth-quarter earnings reported in 2017, and several executive leadership changes. Shares of CSX, a U.S.-based leading transportation supplier, received a huge boost from the market upon rumors of and ultimately hiring a new CEO with a strong track record of successful turnarounds. The position was eliminated on strength early in the summer. Shares of AT&T, a U.S.-based telecommunications company, fell during the period due to investor concerns that the Trump administration would find it difficult to pass policies such as corporate tax reform and deregulation which would otherwise provide a business investment tailwind for the company. AT&T also reported steeper-than-expected subscriber losses in both mobile and video, reflecting rising competitive pressures in both markets. Not holding this security contributed positively to relative performance. Top absolute performers during the period included Microsoft (Information Technology) and Bank of America (Financials).
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 greatest change we have seen over the past year was the economy accelerating and reaching levels we have not seen in 10 years. In addition, we believe the tax bill that recently passed makes it more likely that we could see another year or two of economic strength. We are getting to a point where we might see inflation tick up, and we believe investors are complacent regarding inflation risk because we have seen so little inflation in recent years. Wages are moving higher, and we are beginning to see inflation in energy prices as well. We will monitor closely to see if the combination of wage inflation, incentives for infrastructure spending, and tax cuts are deflationary or inflationary if they increase demand. In our review, health care is another area where we are likely to see inflation. We believe deregulation is generally promising for economic growth, but the stock market has reached levels that are already discounting much of the good news. Ongoing stock market strength seems increasingly dependent on interest rates staying low and steady economic growth. Still, we did not see any immediate signs of recession as of the end of the period, and we are optimistic about the overall trajectory of the market for the near term.
In terms of segments of the economy, we believe Financials should benefit from deregulation and tax reform as well as overall economic health. We see opportunity as well among energy companies, which have demonstrated conservatism in spending and supported an improved price environment. In addition, we are seeing a correction in safety stocks (Consumer Staples, Consumer Discretionary, and Utilities) which we have seen as overvalued for the past several years. Safety stocks are stocks of companies in traditionally defensive industries with muted economic sensitivity based on both industry structure as well as supply and demand dynamics. We believe these areas may become more attractive, should the share price weakness persist. Meanwhile, we will be watching to see where tax benefits can translate into profitability and competitive advantage and where they will be competed away.
Although the past year has been difficult for our approach with growth equities and those without a yield outperforming value equities and yielders, we believe the opportunity for our style to come back into favor has increased. The market and performance we saw in 1999 is an example of both how powerful market environments can be and how rapidly factor environments can change. This type of momentum-driven market can sometimes take time to shift, but we believe we can benefit by staying true to our discipline.
We continue to rely on our process and philosophy as we construct the Fund’s portfolio and adjust the Fund’s positioning. We remain focused on the significance of dividends, positive capital stewardship, and franchise value.
We take a long-term perspective and apply our valuation discipline, focus on supply and demand, and utilize the intellectual capital of the firm to seek to identify the most favorable opportunities.
At the end of the period, the Fund’s largest overweights relative to the S&P 500 Index were to the Financials, Energy, and Utilities sectors, while the Fund’s largest underweights were to Consumer Discretionary and Information Technology.
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 and more volatile 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 (e.g., “Brexit”).
|
| Hartford Dividend and Growth HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 6.0 | % |
Consumer Staples | | | 5.4 | |
Energy | | | 9.0 | |
Financials | | | 23.6 | |
Health Care | | | 13.7 | |
Industrials | | | 9.0 | |
Information Technology | | | 19.6 | |
Materials | | | 3.1 | |
Real Estate | | | 1.3 | |
Telecommunication Services | | | 3.1 | |
Utilities | | | 4.8 | |
| | | | |
Total | | | 98.6 | % |
| | | | |
Short-Term Investments | | | 1.4 | |
Other Assets & Liabilities | | | 0.0 | * |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.
Hartford Global Growth HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Global Growth IA | | | 32.73% | | | | 16.30% | | | | 5.24% | |
Global Growth IB | | | 32.37% | | | | 16.01% | | | | 4.97% | |
MSCI World Growth Index (Net) | | | 28.01% | | | | 12.79% | | | | 6.05% | |
MSCI World Growth Index (Gross) | | | 28.49% | | | | 13.22% | | | | 6.46% | |
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 December 31, 2017, 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 May 1, 2017, the Fund changed its benchmark from the MSCI World Growth Index (Gross) to the MSCI World Growth Index (Net). Hartford Funds Management Company, LLC, the investment manager, believes that the net version of the benchmark better reflects potential tax consequences for the Fund.
MSCI World Growth Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) 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.
MSCI World Growth Index (Gross) (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.82% and 1.07%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Global Growth HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Matthew D. Hudson, CFA
Senior 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 32.73% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the MSCI World Growth Index (Net), which returned 28.01% for the same period. During the same period, the Fund also outperformed the 28.97% average return of the Lipper Global 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?
Global equities rose over the twelve-month period, as measured by the MSCI All Country World Index. Despite escalating European political risk and uncertainty surrounding President Trump’s protectionist trade agenda at the beginning of the period, investors bid up risk assets such as global equities amid increasing optimism about global economic growth. While the U.S. Federal Reserve (Fed) raised rates by 0.25% during the first quarter of 2017, the market remained unfazed as economic data releases across most major economies remained robust, helping to sustain the ongoing rally. Investors breathed a sigh of relief after Emmanuel Macron won the French presidential election, a victory seen as supportive for the stability of the European Union (E.U.). Continued evidence of an upswing in global growth helped maintain bullish sentiment. European growth indicators showed positive signals and Chinese manufacturing and services data surprised to the upside. As expected, the Fed increased policy rates by another 0.25% in June.
During the third quarter, a broad-based expansion of global economic growth, supportive monetary policy, and benign inflation helped to drive the equity markets higher. As the global economy continued to gain momentum, central banks began to normalize their long-standing loose monetary policies during the second half of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October 2017. The European Central Bank (ECB) announced a reduction in its monthly asset purchases beginning in January 2018, but extended the purchase program through September 2018. In Europe, Angela Merkel was re-elected for a fourth term as German Chancellor. Merkel, along with French President Macron, face the difficult task of deepening the Eurozone integration. In December, the Fed raised the benchmark federal funds rate by 0.25%, citing labor market strength and a solid rate of
economic growth. Going into the end of the year, the persistence of low inflation in developed countries continued to surprise central banks and has increased market anxiety over interest rate policy, in light of higher global growth and lower unemployment rates.
During the period, non-U.S. equities outperformed U.S. equities, as measured by the MSCI EAFE Index and S&P 500 Index, respectively, and emerging market equities outperformed their developed market counterparts, as measured by the MSCI Emerging Markets Index and MSCI World Growth Index, respectively. Within the MSCI World Growth Index, ten of eleven sectors posted positive returns during the period. Information Technology (+45%), Industrials (+32%), and Financials (+30%) gained the most, while Energy (-1%) was the only sector that fell during the period.
The Fund’s outperformance versus the MSCI World Growth Index (Net), was driven primarily by security selection. In particular, selection in Information Technology, Industrials, and Consumer Staples contributed positively to relative performance, which was partially offset by weaker selection in Financials and Materials, which detracted from performance. Sector allocation, a result the Fund’s bottom-up security selection process, also contributed positively to relative performance. The Fund’s overweight to Information Technology and underweight to Energy contributed positively to relative performance. This was partially offset by an underweight to Industrials, which detracted from performance.
Top contributors to performance relative to the MSCI World Growth Index (Net) were Tencent (Information Technology), Align Technology (Healthcare), and New Oriental Education (Consumer Discretionary). Tencent, a Chinese internet media company, saw its stock price rise during the period as the company posted first quarter 2017 results that beat market expectations on revenue and earnings. Shares of Align, a U.S.-based medical device company, rose during the period, as the company reported strong earnings beating consensus on both revenue and earnings driven by increased growth in its Invisalign product. The stock price of New Oriental Education, a Chinese education company, posted positive results after the company reported better than expected student enrollment growth and continued expansion of its profit margins. Facebook (Information Technology) and Alphabet (Information Technology) were top absolute contributors during the period.
|
| Hartford Global Growth HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
The top detractors from the Fund’s performance relative to the MSCI World Growth Index (Net) were Apple (Information Technology), Viacom (Consumer Discretionary), and Boeing (Industrials). Shares of Apple, a U.S.-based manufacturer in mobile devices and distributor of digital content, rose during the period as the stock outperformed based on rising expectations for the iPhone 8 and iPhone X release and a more favorable political backdrop for U.S.-based global technology companies. Not owning a position in the benchmark constituent for most of the period detracted from benchmark-relative performance. Viacom, a U.S.-based entertainment company, saw its stock price drop during the period after investors reacted negatively to signs of risks of the company’s anticipated joint venture with a Chinese film financing company, exacerbating existing balance sheet concerns. The shares of Boeing, a U.S.-based aerospace company, rose during the period after the company reported financial results that beat market expectations and raised their fiscal year outlook on earnings, on the back of accelerating global traffic trends. Not owning this benchmark constituent detracted from relative results. Top absolute detractors included Pandora (Consumer Discretionary) and Celgene (Healthcare).
Derivatives were not used in a significant manner in this Fund and did not have a material impact on performance during the period.
What is the outlook?
Looking ahead, we expect that the macroeconomic indicators that we follow will continue to highlight a positive global economic cycle with strong fundamentals across all regions globally. We believe recently enacted tax reform legislation lowering corporate rates from 35% to 21% will benefit corporations across the board. We believe the prospect of foreign cash repatriation should support global manufacturing and service companies plus sustain high industrial and consumer confidence. We believe that accelerating global trade and a global capital expenditures cycle also support strong manufacturing and industrial activity. Although core inflation remains subdued, we are watching for inflation pressure over the coming months as jobless claims were at record lows and capacity utilization was rising as of the end of the period.
At the end of the period, the Fund’s largest sector overweights were to the Information Technology, Financials, and Telecommunication Services sectors, while its largest underweights were to Industrials, Materials, and Consumer Staples, relative to the MSCI World Growth Index (Net).
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. Foreign investments can be riskier and more volatile 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 (e.g., “Brexit”). 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.
Composition by Country
as of December 31, 2017
| | | | |
| Country | | Percentage of
Net Assets | |
Australia | | | 1.2 | % |
Brazil | | | 0.5 | |
Canada | | | 2.4 | |
China | | | 6.0 | |
France | | | 3.1 | |
Germany | | | 3.4 | |
Hong Kong | | | 1.3 | |
India | | | 0.7 | |
Indonesia | | | 0.5 | |
Ireland | | | 0.7 | |
Italy | | | 1.2 | |
Japan | | | 6.0 | |
Netherlands | | | 0.7 | |
Portugal | | | 0.6 | |
Russia | | | 0.7 | |
Singapore | | | 0.7 | |
South Korea | | | 0.9 | |
Spain | | | 1.0 | |
Sweden | | | 1.2 | |
Switzerland | | | 3.7 | |
Taiwan | | | 0.6 | |
United Kingdom | | | 5.9 | |
United States | | | 56.4 | |
Short-Term Investments | | | 1.1 | |
Other Assets & Liabilities | | | (0.5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Growth Opportunities HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Growth Opportunities IA | | | 30.45% | | | | 17.58% | | | | 7.96% | |
Growth Opportunities IB | | | 30.14% | | | | 17.28% | | | | 7.69% | |
Growth Opportunities IC | | | 29.80% | | | | 17.00% | | | | 7.42% | |
Russell 3000 Growth Index | | | 29.59% | | | | 17.16% | | | | 9.93% | |
Russell 1000 Growth Index | | | 30.21% | | | | 17.33% | | | | 10.00% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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 (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.65%, 0.90% and 1.15%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
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| Hartford Growth Opportunities HLS Fund |
Manager Discussion
December 31, 2017 (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 30.45% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmarks, the Russell 3000 Growth Index and the Russell 1000 Growth Index, which returned 29.59% and 30.21%, respectively, for the same period. The Fund also outperformed the 27.03% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business
spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Ten out of eleven sectors in the Russell 3000 Growth Index rose during the period, led by Information Technology (+40%) and Industrials (+30%), while Energy (-10%) lagged on a relative basis.
Security selection within the Information Technology, Consumer Discretionary, and Consumer Staples sectors was the primary contributor to performance relative to the Russell 3000 Growth Index during the period. Positive selection in the Information Technology and Consumer Discretionary sectors was enough to offset weaker selection in the Financials and Industrials sectors. Sector allocation, a result of the bottom-up stock selection process, slightly detracted from benchmark-relative performance over the period, due to an overweight to Energy and an underweight to Industrials. This was partially offset by the positive impact from an underweight to Consumer Staples.
The top contributors to performance relative to the Russell 3000 Growth Index during the period were Arista (Information Technology), Alibaba (Information Technology), and Align Technology (Healthcare). Shares of Arista, a U.S.-based data center switching company, rose during the period as the company continues to benefit from the shifting of workloads to the cloud. Shares of Alibaba, a China-based internet and e-commerce company, also rose during the period. The company is starting to see significant positive impact
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| Hartford Growth Opportunities HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
from their broad ecosystem and customer data. They are able to personalize their proposition to customers, which is encouraging merchants to purchase marketing and other value-added services. This is driving acceleration in their revenue as new revenue streams from merchants gain momentum. We continue to believe Alibaba is in a strong position to grow over longer-term and the Fund maintained an overweight position in the company at the end of the period. Shares of Align Technology, a U.S.-based medical device company, rose during the period as the company reported strong earnings beating consensus on both revenue and earnings driven by increased growth in its Invisalign product. We exited the position during the period on strength. Facebook (Information Technology) and ServiceNow (Information Technology) were among the top absolute contributors.
The top relative detractors from performance during the period included Uber (Information Technology), Apple (Information Technology), and Ulta (Consumer Discretionary). Uber, a U.S.-based transportation Technology company, detracted from relative performance for the period. The fair valuation of private placement Uber Technologies fell during the period as a result of several well-publicized negative events and the ultimate departure of its CEO. We are encouraged by the operational discipline brought by the new CEO, an improvement in the governance structure and strong revenue growth and continued to hold a position at the end of the period. Shares of Apple, a U.S.-based manufacturer in mobile devices and distributor of digital content, rose during the period as the stock outperformed based on rising expectations for the iPhone 8 release and a more favorable political backdrop for U.S.-based global technology companies. Not owning a position in the benchmark constituent detracted from performance relative to the Russell 3000 Growth Index. Shares of Ulta, a U.S.-based beauty and cosmetics retailer, fell during the period as the retail landscape has become a more significant threat for the company. For the first time in a while, department stores have become more promotional in the beauty space, offering discounts for their products. We believed this coupled with Amazon’s increased penetration into the beauty market leaves Ulta’s sales and margins at risk. We exited the position during the period. Viacom (Consumer Discretionary) was among the top absolute detractors.
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 view the current market environment as one of the broadest we have seen in recent memory in terms of the number of compelling opportunities across sectors and regions. We are finding what we believe to be growth opportunities in areas in which we have not found them in many years, and are excited about the prospects of what synchronized global growth may bring us in 2018. In the U.S. in particular, we continue to be optimistic about the prospects for growth
in 2018. We believe increased consumer spending, a strengthening economy, and benefits to both the consumer and domestic companies from the recent U.S. tax legislation should continue to drive earnings going forward.
Sector positioning, driven by our fundamental stock selection process, is an indication of where the team is finding their most compelling investment ideas. At the end of the period, the Fund was most overweight the Information Technology and Financials sectors and most underweight the Consumer Discretionary and Industrials 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 and more volatile 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 (e.g., “Brexit”). Mid-cap securities can have greater risk and volatility than large-cap securities. The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. 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.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 11.8 | % |
Consumer Staples | | | 2.3 | |
Energy | | | 0.6 | |
Financials | | | 9.1 | |
Health Care | | | 13.1 | |
Industrials | | | 9.8 | |
Information Technology | | | 49.5 | |
Materials | | | 2.1 | |
Real Estate | | | 1.1 | |
| | | | |
Total | | | 99.4 | % |
| | | | |
Short-Term Investments | | | 0.8 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Healthcare HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Healthcare IA | | | 22.26% | | | | 19.66% | | | | 12.13% | |
Healthcare IB | | | 21.96% | | | | 19.35% | | | | 11.85% | |
S&P Composite 1500 Health Care Index | | | 22.47% | | | | 17.98% | | | | 11.36% | |
S&P 500 Index | | | 21.83% | | | | 15.79% | | | | 8.50% | |
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 December 31, 2017, 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 Composite 1500 Health Care Index (reflects no deduction for fees, expenses or taxes) 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 (reflects no deduction for fees, expenses or taxes) is a market capitalization-weighted price index composed of 500 widely held common stocks.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.89% and 1.14%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
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| Hartford Healthcare HLS Fund |
Manager Discussion
December 31, 2017 (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
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 22.26%, for the twelve-month period ended December 31, 2017, underperforming the S&P Composite 1500 Health Care Index, which returned 22.47% for the same period. The Fund also outperformed the Fund’s other benchmark, the S&P 500 Index, which returned 21.83% for the same period. During the same period, the Fund outperformed the 17.79% 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?
Healthcare equities (+22%) modestly outperformed the broader U.S. market (+22%) and underperformed the global equity market (+23%) during the period, as measured by the S&P Composite 1500 Health Care, S&P 500, and the MSCI World Indices, respectively. Within the Fund’s benchmark, medical technology returned (+34%), health care services returned (+28%), mid-cap biopharma returned (+28%), small-cap biopharma returned (+16%), and large-cap biopharma returned (+14%).
The Fund underperformed the S&P Composite 1500 Health Care Index, over the period due primarily to unfavorable security selection decisions. The Fund’s overweight to mid cap biopharma equities and the Fund’s underweight to large cap biopharma equities relative to the index contributed positively to performance. However, this was offset by poor stock selection in large cap biopharma and medical technology. Security selection was stronger in small cap biopharma and mid cap biopharma.
AbbVie (biopharma), Allergan (biopharma), and Coherus (biopharma) were the top detractors from performance relative to the S&P Composite 1500 Health Care Index during the period. Not holding benchmark constituent, AbbVie, a U.S.-based pharmaceutical company, detracted from returns relative to the S&P Composite 1500 Health Care Index during the period as the stock continued to perform well as a result of the ongoing success of Humira, used to treat several forms of arthritis. Shares of Allergan, an Ireland-based
specialty pharmaceutical company, fell due to investor concerns over competitive pressures for some of their key products. Shares of Coherus, a U.S.-based biosimilars company, fell during the year as the U.S. Food and Drug Administration cleared a backlog of small molecule generic drug approvals (putting price pressures on the generic drug market) and delayed approving more complex biosimilars until that backlog was cleared (putting pressure on biosimilars manufacturers). The company also faced delays on a key product launch. Envision Healthcare (Healthcare) was a top detractor from absolute performance during the period.
Merck (biopharma), Loxo Oncology (biopharma), and Bluebird Bio (biopharma) contributed positively to results relative to the S&P Composite 1500 Health Care Index over the period. Shares of Merck, a U.S.-based pharmaceutical company, fell during the period after the company announced the withdrawal of its European application to market its key oncology drug, Keytruda, as a combination treatment for lung cancer. Not owning this benchmark constituent contributed to performance relative to the S&P Composite 1500 Health Care Index. Shares of Loxo Oncology, a U.S.-based biopharmaceutical company specializing in medicines that target genetically-defined cancers, rose after successful tumor drug study results were released in early June. Shares of Bluebird Bio, a U.S.-based biopharmaceutical company, rose following news of the approval of a peer’s gene therapy treatment. Investors viewed the approval as a sign of a favorable regulatory environment for some of the company’s pipeline treatments. UnitedHealth Group (Healthcare) and Portola (biopharma) were top contributors 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?
The Healthcare sector has benefited broadly since the U.S. elections in November 2016, but uncertainties remain. Regarding drug pricing, we continue to believe that meaningful structural reform is unlikely in
|
| Hartford Healthcare HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
the foreseeable future. We are mindful of the risks, however. Regarding efforts to repeal the Affordable Care Act (ACA), we continue to believe that most of the millions of Americans who obtained insurance coverage in the past few years will retain coverage, regardless of any adjustments that might be made. We are impressed so far with the efforts of new Food and Drug Administration (FDA) Commissioner Scott Gottlieb, and believed that the tone he has set will favor innovative companies and programs. Over the long term, the tailwinds of innovation, an aging population, and the globalization of demand for cutting-edge, Western-style health care may continue to drive growth of the Healthcare sector.
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 and more volatile 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 (e.g., “Brexit”). 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.
Composition by Sub-Sector
as of December 31, 2017
| | | | |
| Sub-Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Biotechnology | | | 24.9 | % |
Food & Staples Retailing | | | 1.5 | |
Health Care Equipment & Supplies | | | 22.5 | |
Health Care Providers & Services | | | 18.7 | |
Health Care Technology | | | 2.8 | |
Life Sciences Tools & Services | | | 3.2 | |
Pharmaceuticals | | | 24.6 | |
| | | | |
Total | | | 98.2 | % |
| | | | |
Short-Term Investments | | | 1.8 | |
Other Assets & Liabilities | | | 0.0 | * |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
For Fund compliance purposes, the Fund may not use the same classification system. These sub-sector classifications are used for financial reporting purposes.
Hartford High Yield HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
High Yield IA | | | 7.60% | | | | 5.13% | | | | 7.22% | |
High Yield IB | | | 7.31% | | | | 4.87% | | | | 6.95% | |
Bloomberg Barclays U.S. Corporate High Yield Bond Index | | | 7.50% | | | | 5.78% | | | | 8.03% | |
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 December 31, 2017, 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 through March 5, 2012 represents performance of the Fund’s previous sub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012 HIMCO no longer served as the sub-adviser to the Fund.
Bloomberg Barclays U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.79% and 1.04%, respectively. Expenses shown include acquired fund fees and expenses. Actual
expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford High Yield HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Christopher A. Jones, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
David B. 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 7.60% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Bloomberg Barclays U.S. Corporate High Yield Bond Index, which returned 7.50% for the same period. During the same period, the Fund outperformed the 6.71% 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 period, global fixed income markets generated solid gains as measured by the Bloomberg Barclays Global Aggregate Index. Escalating geopolitical tensions and serial disappointments in inflation data helped to contain the increase in sovereign debt yields prompted by a number of central banks ending quantitative easing. In the United States (U.S.), political controversies – in particular, the ongoing investigation into alleged involvement by Russia in the 2016 presidential election – led to a short-lived dip in risk assets. Elections in France and the United Kingdom (U.K.) presented potential sources of volatility, but proved benign in the aftermath. Despite concerns about prospects for retailers, particularly in the U.S., generally solid corporate earnings, strong global economic data, and continued demand for yield-producing assets supported credit markets and credit spreads tightened. Throughout the year, most developed market currencies strengthened versus the U.S. dollar (USD) as political uncertainty and continued skepticism about the U.S. Federal Reserve’s (Fed) projected rate-hiking path weighed on the currency, though the U.S. dollar recovered a bit during the fourth quarter of 2017.
Monetary policy continued on an incrementally more hawkish path throughout the year. (“Hawkish” generally describes a monetary policy that favors higher interest rates to mitigate the risk of inflation.) The Fed announced it would begin tapering its asset purchases in October 2017. The Fed increased rates three times in 2017 and also projected an additional three increases in 2018. At its October meeting, the European Central Bank (ECB) announced a reduction in its monthly asset purchases to €30 billion from €60 billion beginning in January 2018, but extended the purchase program through September 2018. Strong growth and inflation data prompted the Bank of Canada to increase rates for the first time in seven years while the Bank of England (BoE) increased interest rates for the first time in ten years; however the BoE’s press conference tilted dovish,
noting that future rate increases would depend on the stability of the transition of the U.K.’s exit from the E.U. (Brexit). (“Dovish” describes a monetary policy that favors lower interest rates to encourage economic growth.)
Developed markets’ government yields ended mixed over the period as improving global economic data were balanced by subdued inflation. In the U.S., the yield curve flattened; front-end yields, which were heavily influenced by Fed monetary policy expectations, rose, while longer-term rates declined. Most Eurozone government bond yields increased along with improving growth prospects across the region. Longer-term U.K. yields declined amid Brexit uncertainty. Japanese government bond yields, anchored by the Bank of Japan’s yield-targeting policy, were little changed.
Absolute returns in most major fixed income credit risk sectors were positive for each quarter of the year. On an excess return basis, all of the major credit risk sectors posted positive returns over the period, including securitized, high yield, emerging markets debt, and investment grade corporates, led by lower-rated sectors.
The Bloomberg Barclays U.S. Corporate High Yield Bond Index returned 7.50% for the twelve-months ended December 31, 2017 and outperformed duration equivalent treasuries by 6.10%. The Option-Adjusted Spread of the Bloomberg Barclays U.S. Corporate High Yield Bond Index was 3.43% on December 31, 2017, narrower than twelve months ago (4.09% as of December 31, 2016).
During the period, sector allocation decisions were the primary contributors to returns relative to the Bloomberg Barclays U.S. Corporate High Yield Bond Index, primarily driven by the Fund’s underweight allocations to the Wireline and Retailers sectors and an overweight to the Healthcare sector. This was partially offset by an overweight to Energy, which detracted from performance. Security selection also contributed positively to returns relative to the Bloomberg Barclays U.S. Corporate High Yield Bond Index, driven primarily by strong selection in the financial institutions (Banco Bilbao), Healthcare (Valeant, Tenet Healthcare), and Technology (Alcatel-Lucent) sectors. This was partially offset by weaker selection in the Energy sector (KCA Deutag Drilling, Cobalt Energy), which detracted from performance. The Fund’s quality positioning detracted from relative results, in particular an overweight to B-rated securities, as those securities lagged the broader index.
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| Hartford High Yield HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
Over the period, the Fund had a small position in High Yield Credit Default Swap Index (CDX). During the period, the Fund’s CDX position was used for liquidity purposes and for tactically adjusting the risk posture of the Fund. This position contributed positively to performance relative to the Bloomberg Barclays U.S. Corporate High Yield Bond Index.
What is the outlook?
We remain constructive on high yield given what we view as the backdrop of stable corporate fundamentals, a supportive macroeconomic landscape, and strong demand for yield-producing assets. While global political risks remain, valuations appear reasonable relative to our outlook, in particular given our expectation for a benign default environment over the next year.
We are particularly positive on conditions in the U.S., and favor issuers expected to benefit from a stable or growing U.S. domestic economy. While we continue to monitor the possible impact on global growth of increased political uncertainty and potentially more protectionist policies, we believe strong investor demand will continue to support the high yield market. We believe high yield maintains an attractive yield advantage and the ongoing “search for yield” given the low absolute levels of interest rates around much of the globe may continue to provide a tailwind for the asset class going forward.
The Fund ended the year most overweight the financial institutions and gaming sectors, and was most underweight the wirelines and automotive sectors.
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 and more volatile 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 (e.g., “Brexit”).
Composition by Security Type
as of December 31, 2017
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 0.7 | % |
Preferred Stocks | | | 0.1 | |
| | | | |
Total | | | 0.8 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 0.0 | %* |
Convertible Bonds | | | 1.6 | |
Corporate Bonds | | | 91.3 | |
Senior Floating Rate Interests | | | 1.8 | |
| | | | |
Total | | | 94.7 | % |
| | | | |
Short-Term Investments | | | 2.4 | |
Other Assets & Liabilities | | | 2.1 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
Hartford International Opportunities HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
International Opportunities IA | | | 25.25% | | | | 8.59% | | | | 3.25% | |
International Opportunities IB | | | 24.99% | | | | 8.32% | | | | 3.00% | |
MSCI All Country World ex USA Index (Net) | | | 27.19% | | | | 6.80% | | | | 1.84% | |
MSCI All Country World ex USA Index (Gross) | | | 27.77% | | | | 7.28% | | | | 2.31% | |
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 December 31, 2017, 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 May 1, 2017, the Fund changed its benchmark from the MSCI All Country World ex USA Index (Gross) to the MSCI All Country World ex USA Index (Net). Hartford Funds Management Company, LLC, the investment manager, believes that the net version of the benchmark better reflects potential tax consequences for the Fund.
MSCI All Country World ex USA Index (Net) (reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is a broad-based, unmanaged, market capitalization weighted, total return index that measures the performance of both developed (excluding the U.S.) and emerging stock markets.
MSCI All Country World ex USA Index (Gross) (reflects no deduction for fees, expenses or taxes) is a broad-based, unmanaged, market capitalization weighted, total return index that measures the performance of both developed (excluding the U.S.) and emerging stock markets.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford International Opportunities HLS Fund |
Manager Discussion
December 31, 2017 (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 shares of the Hartford International Opportunities HLS Fund returned 25.25% for the twelve-month period ended December 31, 2017, underperforming the Fund’s benchmark, the MSCI All Country World ex USA Index (Net), which returned 27.19% for the same period. During the same period, the Fund also underperformed the 26.81% average return of the Lipper International Large-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 rose over the twelve-month period, as measured by the MSCI All Country World ex USA Index. Despite escalating European political risk and uncertainty surrounding President Trump’s protectionist trade agenda at the beginning of the period, investors bid up risk assets such as global equities amid increasing optimism about global economic growth. While the U.S. Federal Reserve (Fed) raised rates by 0.25% during the first quarter of 2017, the market remained unfazed as economic data releases across most major economies remained robust, helping to sustain the ongoing rally. Investors breathed a sigh of relief after Emmanuel Macron won the French presidential election, a victory seen as supportive for the stability of the European Union (E.U.). Continued evidence of an upswing in global growth helped maintain bullish sentiment. European growth indicators showed positive signals and Chinese manufacturing and services data surprised to the upside. As expected, the Fed increased policy rates by another 0.25% in June 2017.
During the third quarter, a broad-based expansion of global economic growth, supportive monetary policy, and benign inflation helped to drive the equity markets higher. As the global economy continued to gain momentum, a number of central banks began to normalize their long-standing loose monetary policies during the second half of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October 2017. The European Central Bank (ECB) announced a reduction in its monthly asset purchases beginning in January 2018, but extended the purchase program through September 2018. In Europe, Angela Merkel was re-elected for a fourth term as German Chancellor. Merkel, along with French President Macron, face the difficult task of deepening the Eurozone
integration. In December, the Fed raised the benchmark federal funds rate by 0.25%, citing labor market strength and a solid rate of economic growth. Going into the end of the year, the persistence of low inflation in developed countries continued to surprise central banks and has increased market anxiety over interest rate policy, in light of higher global growth and lower unemployment rates.
During the period, non-U.S. equities outperformed U.S. equities, as measured by the MSCI EAFE Index and S&P 500 Index, respectively, and emerging market equities outperformed their developed market counterparts, as measured by the MSCI Emerging Markets Index and MSCI World Index, respectively. Within the MSCI All Country World ex USA Index, all of the eleven sectors posted positive returns during the period; Information Technology (+51%), Materials (+32%), and Industrials (+30%) rose the most.
Sector allocation, a result of the Fund’s bottom-up security selection process, was the primary detractor from performance relative to the MSCI All Country World ex USA Index during the period. Underweights to the Energy and Materials sectors detracted most from benchmark relative returns, which was partially offset by an overweight to Information Technology. Security selection also detracted from benchmark-relative returns. Selection was weakest within the Consumer Discretionary, Energy, and Healthcare sectors. This was partially offset by stronger selection within the Information Technology, Real Estate, and Financials sectors. On a regional basis, security selection within Japan and Europe detracted the most; this was slightly offset by positive performance from security selection in Emerging Markets.
Top detractors from performance relative to the MSCI All Country World ex USA Index during the period included WPP (Consumer Discretionary), Ctrip.com (Consumer Discretionary), and Petrobras (Energy). Shares of WPP, a U.K.-based global marketing and advertising company, underperformed as cost-cutting efforts led to a period of subdued revenue growth. We eliminated our position in the third quarter of 2017. The stock price of Ctrip.com, a Chinese provider of travel services, fell on the back of potentially negative implications from the Civil Aviation Administration of China’s proposed cross-selling regulations. Shares of Petrobras, an integrated oil and gas producer in Brazil, struggled in the first quarter of 2017 as oil supply outpaced market expectations and caused the
|
| Hartford International Opportunities HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
price of oil to fall. We eliminated the Fund’s position in Petrobras in the second quarter of this year. Teva Pharmaceuticals (Healthcare) and Imperial Oil (Energy) were top absolute detractors during the period.
Top contributors to returns relative to the MSCI All Country World ex USA Index included Alibaba (Information Technology), Airbus (Industrials), and Unilever (Consumer Staples). Shares of Alibaba Group, a China-based internet and e-commerce company, contributed positively to benchmark-relative performance during the period after the company posted strong earnings ahead of consensus across multiple metrics. Shares of Airbus, a France-based company that manufactures and services aircrafts, rose through the combination of rising delivery volumes, falling research and development (R&D) and production costs, improvements in pricing on the A320neo, and benefits of a weaker Euro. Shares of Unilever, a Netherlands-based global consumer products company, rallied following management’s announcement of a strategic review which is expected to lead to an acceleration of value creation for shareholders. Samsung (Information Technology) and Tencent (Information Technology) were 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?
In general, we continue to have a constructive outlook on the economy as manufacturing and other economic indicators continue to strengthen across the globe. Inflation remains low as of the end of the reporting period, enabling central banks to maintain accommodative monetary policies, although we are monitoring signs of change. We are mindful of the risk that the yield curve could flatten, though we see no current signs that credit is deteriorating. The yield curve flattens when the spread decreases between short-term yields and long-term yields.
Europe is experiencing a strong manufacturing and employment environment. We continue to find what we consider to be attractive opportunities within the Financials and Industrials sectors.
In Asia, the Fund’s exposure to Japan is near neutral relative to the benchmark as of the end of the period, although we are looking at opportunities. The Japanese economy may be strong and rates could surprise to the upside, benefiting banks and insurance companies. Further, a strong global economic cycle may provide good opportunities for industrials names which are of interest to us.
In emerging Asia, the Fund is overweight China relative to the benchmark as of the end of the period. We believe the property market slowdown has bottomed and the economy should remain strong supporting demand for base Materials equities even though
the market seems concerned. At the same time, China is rationalizing its steel production for environmental reasons, curtailing global supply, benefiting some of the Fund’s Materials holdings outside of China. Within China, we also own high quality Financials companies. We see an improving backdrop for banks in China as interest rates remain high, the credit environment for small-medium businesses gets better and excess capacity in the industrial economy declines. In addition to the Fund’s holdings in Financials, we also own platform information technology (IT) and consumer companies in China that we believe are changing customer habits and behavior.
Overall, our investment approach leads us to seek out companies which can improve or sustain return on invested capital (ROIC) to a degree that the market underestimates.
At the end of the period, relative to the MSCI All Country World ex USA Index, the Fund was most overweight Information Technology, Financials, and Industrials, and most underweight Materials, Energy, and Healthcare. On a regional basis, the Fund ended the period with an overweight to Europe. The Fund ended the period underweight Asia, including Japan, and Emerging Markets.
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 and more volatile 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 (e.g., “Brexit”). 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’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
|
| Hartford International Opportunities HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
Composition by Currency
as of December 31, 2017
| | | | |
| Description | | Percentage of
Net Assets | |
Australian Dollar | | | 0.4 | % |
British Pound | | | 8.4 | |
Canadian Dollar | | | 8.0 | |
Euro | | | 27.2 | |
Hong Kong Dollar | | | 7.0 | |
Indian Rupee | | | 3.1 | |
Japanese Yen | | | 17.1 | |
Mexican Peso | | | 0.6 | |
South Korean Won | | | 2.3 | |
Swiss Franc | | | 9.7 | |
Taiwanese Dollar | | | 3.4 | |
United States Dollar | | | 13.2 | |
Other Assets & Liabilities | | | (0.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 13.5 | % |
Consumer Staples | | | 8.7 | |
Energy | | | 4.0 | |
Financials | | | 25.8 | |
Health Care | | | 5.1 | |
Industrials | | | 14.5 | |
Information Technology | | | 15.2 | |
Materials | | | 3.0 | |
Real Estate | | | 3.9 | |
Telecommunication Services | | | 2.7 | |
Utilities | | | 2.9 | |
| | | | |
Total | | | 99.3 | % |
| | | | |
Short-Term Investments | | | 1.1 | |
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. These sector classifications are used for financial reporting purposes.
Hartford MidCap HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
MidCap IA | | | 24.47% | | | | 17.13% | | | | 9.75% | |
MidCap IB | | | 24.17% | | | | 16.84% | | | | 9.47% | |
S&P MidCap 400 Index | | | 16.24% | | | | 15.01% | | | | 9.97% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Philip W. Ruedi, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Mark A. Whitaker, 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 MidCap HLS Fund returned 24.47% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the S&P MidCap 400 Index, which returned 16.24% for the same period. During the same period, the Fund also outperformed the 24.23% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to
1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Within the S&P MidCap 400 Index, nine of eleven sectors posted positive returns during the period. The Information Technology (+25%), Industrials (+24%), and Healthcare (+23%) sectors posted the highest returns while the Telecommunication Services (-40%) and Energy (-16%) sectors lagged on a relative basis.
The Fund’s outperformance relative to the S&P MidCap 400 Index during the period was driven by strong security selection. Security selection in the Healthcare, Information Technology, and Financials sectors contributed positively, which more than offset weaker selection in Industrials and Consumer Discretionary. Sector allocation, a result of the bottom-up security selection process, also contributed positively to relative returns over the period. An underweight to the Real Estate sector and overweight to Information Technology sector contributed positively to relative returns, which more than offset negative performance from underweights to Energy, Consumer Discretionary, and Materials sectors.
Top contributors to performance relative to the S&P MidCap 400 Index during the period were Sage Therapeutics (Healthcare), Puma Biotechnology (Healthcare), and TransUnion (Industrials). Shares of Sage Therapeutics, a U.S.-based biopharmaceutical company, rose after the company announced positive mid-stage trial results for its moderate-to-severe major depressive disorder (MDD) treatment. Shares of Puma Biotechnology, a U.S.-based pharmaceutical company, rose after the Federal Drug Administration (FDA) approved the company’s breast cancer drug, Nerlynx. The Fund exited its position in the company toward the end of the period. Shares of TransUnion, a U.S.-based credit reporting company, outperformed during the period due to experiencing broad strength across verticals and geographies driven by new product and end markets for their data and analytic assets. NVR (Consumer Discretionary) and Bluebird Bio (Healthcare) were also top absolute contributors over the period.
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
Top detractors from performance relative to the S&P MidCap 400 Index during the period were Advance Auto Parts (Consumer Discretionary), TESARO (Healthcare), and Ultragenyx Pharmaceutical (Healthcare). Advance Auto Parts, a U.S.-based automotive parts supplier, underperformed during the period driven in part by disappointing operating results and same-store sales being negatively impacted by a mild winter. TESARO, a U.S.-based pharmaceutical company, fell as the company struggled to find a potential buyer, dampening the potential of a bidding war. Shares of Ultragenyx Pharmaceutical, a U.S.-based biotechnology company, fell after announcing disappointing results for a late-stage trial. QEP Resources (Energy) was a top absolute detractor 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?
The Fund’s portfolio is not designed around particular macroeconomic or political outcomes. We continue to believe that the U.S. economy remains on a solid footing and provides a good environment for our approach, which is focused on U.S. mid-cap market leading companies. Uncertainties and risks related to Washington politics as well as potential international developments (North Korea, Iran) could possibly increase market volatility.
As a result of our bottom-up, company specific process based on FVE (fundamentals, valuation, and expectations), the Fund ended the period overweight the Information Technology, Healthcare, and Industrials sectors. The Fund’s largest underweight at the end of the period was to the Real Estate sector, and more specifically real estate investment trusts (REITs), which we continued to find unattractive, on a relative basis.
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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 6.0 | % |
Consumer Staples | | | 0.7 | |
Energy | | | 2.2 | |
Financials | | | 15.9 | |
Health Care | | | 16.7 | |
Industrials | | | 21.7 | |
Information Technology | | | 31.4 | |
Materials | | | 3.1 | |
Real Estate | | | 0.2 | |
Utilities | | | 1.9 | |
| | | | |
Total | | | 99.8 | % |
| | | | |
Short-Term Investments | | | 0.5 | |
Other Assets & Liabilities | | | (0.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.
Hartford MidCap Value HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
MidCap Value IA | | | 13.47% | | | | 13.01% | | | | 8.51% | |
MidCap Value IB | | | 13.18% | | | | 12.73% | | | | 8.24% | |
Russell 2500 Value Index | | | 10.36% | | | | 13.27% | | | | 8.82% | |
Russell MidCap Value Index | | | 13.34% | | | | 14.68% | | | | 9.10% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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 (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.86% and 1.11%,
respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford MidCap Value HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
James N. Mordy
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Gregory J. Garabedian
Managing Director and Equity Research Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap Value HLS Fund returned 13.47% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Russell 2500 Value Index, which returned 10.36% for the same period, and the Fund’s other benchmark, the Russell MidCap Value Index, which returned 13.34% for the same period. During the same period, the Fund underperformed the 16.25% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at
the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Within the Russell 2500 Value Index, nine out of eleven sectors posted positive returns during the twelve-month period. The Materials (+23%), Industrials (+19%), and Information Technology (+18%) sectors performed the best while the Telecommunication Services (-33%) and Energy (-15%) sectors fell over the period.
The Fund’s outperformance relative to the Russell 2500 Value Index was largely driven by security selection. Stock selection within the Materials, Financials, and Telecommunication Services sectors were the primary contributors to relative performance, which more than offset negative stock selection within Healthcare and Information Technology. Sector allocation, a result of the bottom-up security selection process, also contributed positively to relative results over the period, primarily due to overweight allocations to Information Technology and Materials. An overweight to Telecommunication Services and underweight to Consumer Discretionary detracted from benchmark-relative performance over the period.
The top contributors to absolute returns and returns relative to the Russell 2500 Value Index during the period were Westlake Chemicals (Materials), D.R. Horton (Consumer Discretionary), and Comerica (Financials). Shares of U.S.-based international manufacturer and supplier of petrochemicals, polymers and fabricated building products, Westlake Chemicals, rose as operating rates in Westlake’s chlorine business hit a four year high earlier in 2017. Demand in vinyl products increased and pricing improved as a result of improved industry dynamics and supply tightening over the trailing one-year period. The effects of Hurricane Harvey also proved to increase demand for Westlake’s products. D.R. Horton, a U.S.-based homebuilder, saw its share prices increase during the period as the U.S. housing market continued to grow and announced that it
|
| Hartford MidCap Value HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
was acquiring a majority stake in another real estate company, Forestar Group, which investors viewed as positive. Comerica, a U.S.-based financial services company, was one of the best performing bank equities in 2016 and its momentum carried into 2017. The stock price of the bank, a lender with a large concentration of oil and gas loans, continued to rise during the year, particularly in the second half of 2017 as energy prices moved higher during this time.
Top relative detractors from returns relative to the Russell 2500 Value Index included QEP Resources (Energy), Envision Healthcare (Healthcare), and Acacia Communication (Information Technology). Shares of QEP Resources, a U.S.-based natural gas supplier, fell as production was flat during the second quarter of 2017 and higher-margin oil output declined. We exited our position during the period. The stock price of Envision Healthcare, a U.S.-based medical holding company, slipped following a negative media report on the company focused on out-of-network billing practices for Emergency Room care, which investors punished the stock for. Acacia Communication, a U.S.-based optical component manufacturer, saw its share price decline over the period in the midst of a larger sell off in the industry stemming from concerns over slowing near-term demand out of China. Newfield Exploration (Energy) was a top absolute detractor from 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 are more confident in the outlook for economic growth than we have been in some time. A synchronized global growth acceleration was already underway before the passage of tax reform in the U.S. Our macro group projects domestic gross domestic product (GDP) growth of 2.7% in 2018, but we think something north of 3% seems achievable. We expect some lift in consumer spending from tax savings and higher wages, acceleration in capital spending from 100% expensing and higher corporate earnings, and some benefit from deregulation, repatriated foreign earnings and possible infrastructure spending. Tighter labor markets, a lower dollar and higher commodity prices argue for some upward pressure on inflation and may keep the Fed in tightening mode. We think it should all add up to a good environment for cyclical equities (equity securities whose prices are particularly sensitive to fluctuations in business cycles), which we ended the period overweight relative to the Russell 2500 Value Index, and for domestic small-cap and mid-cap equities.
The Fund ended the year most overweight Information Technology, Industrials, and Materials, and most underweight the Real Estate, Consumer Discretionary, and Utilities 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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. Value investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 6.2 | % |
Consumer Staples | | | 2.3 | |
Energy | | | 7.4 | |
Financials | | | 23.0 | |
Health Care | | | 4.0 | |
Industrials | | | 18.9 | |
Information Technology | | | 14.2 | |
Materials | | | 8.5 | |
Real Estate | | | 8.2 | |
Telecommunication Services | | | 1.3 | |
Utilities | | | 4.9 | |
| | | | |
Total | | | 98.9 | % |
| | | | |
Short-Term Investments | | | 1.2 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Small Cap Growth HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Small Cap Growth IA | | | 20.07% | | | | 15.52% | | | | 10.98% | |
Small Cap Growth IB | | | 19.75% | | | | 15.23% | | | | 10.70% | |
Russell 2000 Growth Index | | | 22.17% | | | | 15.21% | | | | 9.19% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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 based on a combination of their market capitalization and current index membership.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
Performance information through July 21, 2010 represents performance of the Fund’s previous additional sub-adviser, Hartford Investment Management Company (“HIMCO”). As of July 21, 2010, HIMCO no longer serves as an additional sub-adviser to the Fund.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. 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.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
|
| Hartford Small Cap Growth HLS Fund |
Manager Discussion
December 31, 2017 (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
David A. Siegle, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
Douglas W. McLane, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
How did the Fund perform during the period?
The Class IA shares of Hartford Small Cap Growth HLS Fund returned 20.07% for the twelve-month period ended December 31, 2017, underperforming the Fund’s benchmark, the Russell 2000 Growth Index, which returned 22.17%. For the same period, the Fund also underperformed the 22.63% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a
process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Ten of the eleven sectors in the Russell 2000 Growth Index had positive returns during the period. Healthcare (+37%), Telecommunication Services (+36%), and Materials (+22%) performed best, while Energy (-24%) lagged the broader index.
Sector allocation, which is a result of our bottom-up security selection process, was the primary detractor from results relative to the Russell 2000 Growth Index. Overweights to Energy and Financials sectors detracted most from benchmark-relative performance, while an overweight to Consumer Discretionary contributed positively. Security selection modestly detracted from the Fund’s performance relative to the Russell 2000 Growth Index. Selection was weakest within the Healthcare and Financials sectors, which was partially offset by stronger selection within the Consumer Discretionary and Industrials sectors.
|
| Hartford Small Cap Growth HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
The top relative detractors from performance over the period were Nektar Therapeutics (Healthcare), Kite Pharma (Healthcare), and Cardtronics PLC (Information Technology). Nektar Therapeutics, a U.S.-based pharmaceutical company, saw its share price rise sharply after it presented an accelerated FDA approval timeline for its pain-relieving drug and presented positive early-state test results for its solid-tumor cancer drug. Not owning this benchmark-constituent for most of the period detracted from relative results. Not owning Kite Pharma, a biopharmaceutical company focused on cancer immunotherapy treatments, detracted from performance as shares rose after the announcement that the company will be acquired by Gilead Sciences. Shares of Cardtronics, a provider of automated financial services kiosks, underperformed as the firm reported a disappointing first quarter as a software transition and exit from the 7-Eleven relationship hit same-store-sales and earnings more sharply than anticipated. We exited our position toward the end of the period. FivePrime Therapeutics (Healthcare) and Coherus Biosciences (Healthcare) were among the top detractors from absolute performance over the period.
TopBuild (Consumer Discretionary), Wayfair (Consumer Discretionary), and Rogers Corp (Information Technology) were the top contributors to absolute returns and returns relative to the Russell 2000 Growth Index over the period. The stock price of TopBuild Corp, a U.S.-based insulation installer, rose as the stock was expected to benefit from positive U.S. housing industry trends. Another top contributor to relative performance was Wayfair, a U.S.-based online home furnishings specialist. The stock was up after reporting significant revenue increases in the first quarter of 2017 and better than expected second quarter guidance. Shares of Rogers Corp, a maker of specialty advanced materials, including printed circuit materials, high-end specialty foams used in smartphones, tablets, and electric vehicles, rose as the company announced a very strong first quarter and provided guidance for the second quarter above consensus 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?
With the significant changes to tax law, we believe corporate profits are set to rise materially in 2018. It is likely that some of these tax savings are competed away or reinvested in the business for various reasons including employee retention, competitive pricing or marketing support. In the near term, we believe some of the windfalls will fall to the bottom line but we expect to spend more time this year researching the sustainability of margins and changes to the competitive intensity as some of the improved profitability may be eroded.
We believe the U.S. economy appears healthy and is growing at a good pace. 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.
As a result of bottom-up stock selection, the Fund’s top overweights at the end of the period were to the Consumer Discretionary, Information Technology, and Consumer Staples sectors. Industrials, Materials, and Utilities 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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. Growth investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 15.1 | % |
Consumer Staples | | | 3.3 | |
Energy | | | 1.5 | |
Financials | | | 5.8 | |
Health Care | | | 23.4 | |
Industrials | | | 17.3 | |
Information Technology | | | 24.3 | |
Materials | | | 4.1 | |
Real Estate | | | 3.2 | |
Telecommunication Services | | | 0.7 | |
Utilities | | | 0.3 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 0.7 | |
Other Assets & Liabilities | | | 0.3 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.
Hartford Small Company HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Small Company IA | | | 26.36% | | | | 12.84% | | | | 6.90% | |
Small Company IB | | | 26.05% | | | | 12.56% | | | | 6.64% | |
Russell 2000 Growth Index | | | 22.17% | | | | 15.21% | | | | 9.19% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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 based on a combination of their market capitalization and current index membership.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.75% and 1.00%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
Performance information through July 21, 2010 represents performance of the Fund’s previous additional sub-adviser, Hartford Investment Management Company (“HIMCO”). As of July 21, 2010, HIMCO no longer serves as an additional sub-adviser to the Fund.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. 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.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
|
| Hartford Small Company HLS Fund |
Manager Discussion
December 31, 2017 (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 26.36% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Russell 2000 Growth Index which returned 22.17% for the same period. During the same period, the Fund also outperformed the 22.63% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to
1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Ten of the eleven sectors in the Russell 2000 Growth Index had positive returns during the period. Healthcare (+37%), Telecommunication Services (+36%), and Materials (+22%) performed the best, while Energy (-24%) was the only sector that fell.
Stock selection was the main driver of outperformance relative to the Russell 2000 Growth Index, primarily due to selection within the Information Technology, Consumer Discretionary, Consumer Staples, and Healthcare sectors. This was partially offset by weaker selection in the Financials and Industrials sectors, which detracted from performance. Sector allocation, which is the result of bottom-up stock selection, detracted from relative returns, primarily due to an underweight to Healthcare and an overweight to the Energy sector. This more than offset positive performance from an underweight allocation to Consumer Staples.
Top contributors to absolute returns and performance relative to the Russell 2000 Growth Index during the period included Align Technology (Healthcare), Tower Semiconductor (Information Technology), and Insulet (Healthcare). The stock price of Align Technology, a U.S.-based medical device company most known for its “Invisalign” braces, rose during the period after it announced revenues and earnings that beat market expectations driven by increased growth of the Invisalign product. Tower Semiconductor, an Israeli-based manufacturer of analog chips, saw its share price rise during the period after posting strong financial revenues and earnings and announcing solid order results in May. The business has achieved high returns on invested capital and strong cash flows as it continues to purchase, integrate, and scale low utilization foundries. The company also benefited from exposure to a number of fast growing end markets including electric vehicle battery management and augmented reality/virtual reality technologies. Insulet, a U.S.-based medical devices company that manufactures differentiated
|
| Hartford Small Company HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
insulin infusion systems, saw its share price rise over the year as investors appreciated the company’s attractive growth of its businesses inside and outside the U.S. We believe that the company’s unique pod-based slow release technology creates an attractive barrier to entry protecting its growth prospects.
Top detractors from performance relative to the Russell 2000 Growth Index during the period included Nektar Therapeutics (Healthcare), Kite Pharma (Healthcare), and Academy CoInvest (Consumer Discretionary). Nektar Therapeutics, a U.S.-based pharmaceutical company, saw its share price rise sharply after it presented an accelerated FDA approval timeline for its pain-relieving drug and presented positive early-state test results for its solid-tumor cancer drug. Not owning this benchmark-constituent for most of the period detracted from relative results. The share price of Kite Pharma, a U.S.-based clinical-stage biopharmaceutical company, rose during the period after it was announced that the company had accepted a buyout offer from Gilead Sciences, another biotechnology company. Not owning the stock detracted from relative results. The fair valuation of private placement Academy CoInvest, which owns Academy Sports Store, a retailer of sports and recreational products, fell due to declines in its earnings and difficult conditions faced by sports retailers in general. FivePrime Therapeutics (Healthcare) and WPX Energy (Energy) were top detractors from 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?
As we look ahead into 2018, we expect the U.S. economy to grow further as we progress through the later stages of the economic cycle. Tax reform and reduced regulation may meaningfully accelerate both gross domestic product (GDP) and corporate earnings growth. In an environment of already low unemployment, tight supply, and rising demand, we believe conditions have aligned to support a typical economic crescendo in the coming years. Despite geopolitical turbulence, we remain constructive on equity markets as we believe global growth prospects remain strong. The main risks we see to our base case are political in nature and include tensions with North Korea and an ineffective Trump administration. However, most sustained market corrections are correlated with economic recessions, and we do not see any major signs of an imminent economic downturn in the U.S. Over the year, we trimmed the Fund’s Information Technology overweight. Many of these positions appreciated meaningfully over the year and now offer less attractive upside to downside ratios. These sales funded purchases in some of the more traditional cyclical sectors yielding a more balanced portfolio, which we believe is well positioned to outperform in the year to come.
As a result of our bottom-up, stock-by-stock investment decisions, the Fund ended the period most overweight the Consumer Discretionary, Information Technology, and Consumer Staples sectors relative to the Russell 2000 Growth Index. The Fund ended the year most underweight the Healthcare, Materials, and Telecommunication Services 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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. 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.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 18.7 | % |
Consumer Staples | | | 3.9 | |
Energy | | | 1.4 | |
Financials | | | 7.2 | |
Health Care | | | 17.2 | |
Industrials | | | 17.4 | |
Information Technology | | | 27.0 | |
Materials | | | 2.8 | |
Real Estate | | | 3.4 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 1.1 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Small/Mid Cap Equity HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Small/Mid Cap Equity IA | | | 14.43% | | | | 12.94% | | | | 7.61% | |
Small/Mid Cap Equity IB | | | 13.94% | | | | 12.64% | | | | 7.33% | |
Russell 2500 Index | | | 16.81% | | | | 14.33% | | | | 9.22% | |
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 December 31, 2017, 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 through June 4, 2012 represents performance of the Fund’s previous sub-adviser, Hartford Investment Management Company (“HIMCO”). As of June 4, 2012, HIMCO no longer served as the sub-adviser to the Fund.
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 (reflects no deduction for fees, expenses or taxes) 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 2,500 of the smallest securities based on a combination of their market capitalization and current index membership.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.94% and 1.19%, respectively. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Manager Discussion
December 31, 2017 (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 14.43% for the twelve-month period ended December 31, 2017, underperforming the Fund’s benchmark, the Russell 2500 Index, which returned 16.81%. For the same period, the Fund outperformed the 12.70% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed to positive market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
Equity returns varied by market-cap during the period, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. Nine of the eleven sectors in the Russell 2500 Index posted positive absolute returns during the period. Healthcare (+29%), Information Technology (+25%), and Materials (+23%) rose the most, while Energy (-17%) and Telecommunication Services (-4%) posted negative returns.
The Fund’s underperformance relative to the Russell 2500 Index was driven by weak stock selection, particularly in the Real Estate, Consumer Discretionary, and Financials sectors. This was partially offset by stronger selection in Consumer Staples and Energy. Sector allocation, a product of our quantitative stock-selection process, also detracted from relative returns during the period. An overweight to Consumer Staples and an overweight to Energy in the first half of the year detracted most from benchmark-relative performance, more than offsetting the positive impact from the Fund’s overweight to Healthcare.
The largest detractors from performance relative to the Russell 2500 Index during the period were Mack-Cali Realty (Real Estate), Brixmor Property (Real Estate), and Popular (Financials). Mack-Cali Realty, which owns and operates office properties in the Northeast, detracted as management aggressively pursued acquisitions of office assets by taking on excess leverage and lowered their guidance due to light leasing. Brixmor Property, which owns and operates shopping malls, was down as asset sales negatively impacted growth and retail bankruptcies affected occupancy. Popular, which is a regional bank in Puerto Rico, declined due to losses and increased expenses from the hurricanes. DDR Corp (Real Estate) and Foot Locker (Consumer Discretionary) were among the top absolute detractors during the period.
The largest contributors to absolute performance and performance relative to the Russell 2500 Index during the period were Arista (Information Technology), Scientific Games (Consumer Discretionary), and Teradyne (Information Technology). Shares of Arista, a U.S.-based data center switching company, rose during the period as the company continues to benefit from the shifting of workloads to the cloud. Scientific Games, a leading supplier of services, technology systems and products to the lottery and gaming industries, rose in price as the new CEO integrated two acquisitions with significant synergies and improved growth. Shares of Teradyne, which designs and develops automatic test equipment, rallied as the company continues to execute well with both revenue growth (new
|
| Hartford Small/Mid Cap Equity HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
products and serviceable available market expansion) and cost management initiatives.
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 Wellington Management’s 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 our quantitative models, the Fund ended the period most overweight to the Consumer Discretionary, Consumer Staples, and Healthcare sectors and most underweight to the Materials, Information Technology, and Financials 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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. The Fund may have high portfolio turnover, which could increase the Fund’s transaction costs.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 14.7 | % |
Consumer Staples | | | 4.4 | |
Energy | | | 4.5 | |
Financials | | | 14.6 | |
Health Care | | | 12.5 | |
Industrials | | | 16.4 | |
Information Technology | | | 13.9 | |
Materials | | | 3.6 | |
Real Estate | | | 9.3 | |
Telecommunication Services | | | 1.5 | |
Utilities | | | 3.9 | |
| | | | |
Total | | | 99.3 | % |
| | | | |
Short-Term Investments | | | 0.6 | |
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. These sector classifications are used for financial reporting purposes.
Hartford Stock HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Stock IA | | | 19.85% | | | | 14.25% | | | | 7.37% | |
Stock IB | | | 19.54% | | | | 13.97% | | | | 7.10% | |
Russell 1000 Index | | | 21.69% | | | | 15.71% | | | | 8.59% | |
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 December 31, 2017, 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.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, 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 year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
Manager Discussion
December 31, 2017 (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 19.85% for the twelve-month period ended December 31, 2017, underperforming the Russell 1000 Index, which returned 21.69% for the same period. During the same period, the Fund also underperformed the 20.86% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed positively to market sentiment. Tax reform was a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
During the period, returns varied by market-cap, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, 9 of the eleven sectors within the Russell 1000 Index rose, led by Information Technology (+38%), Materials (+24%), and Consumer Discretionary (+23%). Energy (-1%) and Telecommunication Services (-1%) lagged on a relative basis.
The Fund’s underperformance versus the Russell 1000 Index was primarily driven by poor security selection within the Healthcare, Consumer Discretionary, and Energy sectors, which was partially offset by stronger selection within the Industrials and Financials sectors. Sector allocation, a residual of the bottom-up stock selection process, contributed positively to benchmark-relative returns, due primarily to an underweight allocation to Energy and not holding any Telecommunication Services equities. This was partially offset by an underweight to the Information Technology sector, which detracted from relative performance.
Stocks that detracted the most from performance relative to the Russell 1000 Index during the period were Apple (Information Technology), Cardinal Health (Healthcare), and Schlumberger (Energy). Shares of Apple, a U.S.-based manufacturer of mobile devices and distributor of digital content, rose during the period on rising expectations for the iPhone 8 release and a more favorable political backdrop for U.S.-based global technology companies. Not owning a position in the benchmark constituent detracted from benchmark-relative performance. Shares of Cardinal Health, a U.S.-based distributor of pharmaceuticals, fell after the company lowered their fiscal year revenue and earnings per share estimates. Shares of Schlumberger, a U.S.-based provider of oil and natural gas equipment and services, fell during the period due to the price of crude oil falling. Academy CoInvest LLC (Consumer Discretionary) and Walgreens (Consumer Staples) were top absolute detractors from performance during the period.
Top contributors to performance relative to the Russell 1000 Index during the period included General Electric (Industrials), Diageo (Consumer Staples), and Visa (Information Technology). Not holding benchmark constituent General Electric, a U.S.-based multinational conglomerate operating in the Technology infrastructure, capital finance, and consumer and industrial products industries, during the period contributed positively to relative performance after its stock price fell on disappointing fourth-quarter earnings reported in 2017 and several executive leadership changes. The shares of Diageo, a British-based alcoholic beverages company, rose during the period
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
as it reported strong fiscal year results with revenue and profits that beat the expectations of investors. The stock price of Visa, a U.S.-based credit card and payments company, rose during the period after the company reported better than expected revenues and earnings driven by its Visa Europe business and continued growth in payments, cross border volume, and processed transactions. Microsoft (Information Technology) and Nike (Consumer Discretionary) were 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?
Overall, as has been the case for much of the last few years, we remain highly cautious in our investment posture. We continue to seek to invest in companies where we have high confidence in long-term dividend growth. We believe a long-term outlook characterized by patience and low turnover is our best recipe for managing the Fund.
At the end of the period, the Fund’s bottom-up investment approach resulted in overweight exposures to the Consumer Staples, Industrials, and Healthcare sectors, relative to the Russell 1000 Index. The Fund’s largest underweights relative to the Russell 1000 Index were to the Information Technology, Utilities, and Financials sectors, 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. Foreign investments can be riskier and more volatile 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 (e.g., “Brexit”).
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 13.2 | % |
Consumer Staples | | | 16.7 | |
Energy | | | 4.4 | |
Financials | | | 12.1 | |
Health Care | | | 14.9 | |
Industrials | | | 18.5 | |
Information Technology | | | 10.3 | |
Materials | | | 4.0 | |
Real Estate | | | 4.5 | |
| | | | |
Total | | | 98.6 | % |
| | | | |
Short-Term Investments | | | 1.7 | |
Other Assets & Liabilities | | | (0.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. These sector classifications are used for financial reporting purposes.
Hartford Total Return Bond HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Total Return Bond IA | | | 5.16% | | | | 2.67% | | | | 4.13% | |
Total Return Bond IB | | | 4.80% | | | | 2.40% | | | | 3.87% | |
Bloomberg Barclays U.S. Aggregate Bond Index | | | 3.54% | | | | 2.10% | | | | 4.01% | |
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 December 31, 2017, 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 through March 5, 2012 represents performance of the Fund’s previous sub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012, HIMCO no longer served as the sub-adviser to the Fund.
Bloomberg Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.52% and 0.77%, respectively. Expenses shown include acquired fund fees and expenses. Actual
expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Total Return Bond HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Joseph F. Marvan, CFA
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 5.16% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 3.54% for the same period. During the same period, the Fund also outperformed the 3.66% 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 period, global fixed income markets generated solid gains as measured by the Bloomberg Barclays Global Aggregate Index. Escalating geopolitical tensions and serial disappointments in inflation data helped to contain the increase in sovereign debt yields prompted by a number of central banks ending quantitative easing. In the United States (U.S.), political controversies – in particular, the ongoing investigation into alleged involvement by Russia in the 2016 presidential election – led to a short-lived dip in risk assets. Elections in France and the United Kingdom (U.K.) presented potential sources of volatility, but proved benign in the aftermath. Despite concerns about prospects for retailers, particularly in the U.S., generally solid corporate earnings, strong global economic data, and continued demand for yield-producing assets supported credit markets and credit spreads tightened. Throughout the year, most developed market currencies strengthened versus the U.S. dollar (USD) as political uncertainty and continued skepticism about the U.S. Federal Reserve’s (Fed) projected rate-hiking path weighed on the currency, though the U.S. dollar recovered a bit during the fourth quarter of 2017.
Monetary policy continued on an incrementally more hawkish path throughout the year. (“Hawkish” generally describes a monetary policy that favors higher interest rates to mitigate the risk of inflation.) The Fed announced it would begin tapering its asset purchases in October 2017. The Fed increased rates three times in 2017 and also projected an additional three increases in 2018. At its October meeting, the European Central Bank (ECB) announced a reduction in
its monthly asset purchases to €30 billion from €60 billion beginning in January 2018, but extended the purchase program through September 2018. Strong growth and inflation data prompted the Bank of Canada to increase rates for the first time in seven years while the Bank of England (BoE) increased interest rates for the first time in ten years; however the BoE’s press conference tilted dovish, noting that future rate increases would depend on the stability of the transition of the U.K.’s exit from the E.U. (Brexit). (“Dovish” describes a monetary policy that favors lower interest rates to encourage economic growth.)
Developed markets’ government yields ended mixed over the period as improving global economic data were balanced by subdued inflation. In the U.S., the yield curve flattened; front-end yields, which were heavily influenced by Fed monetary policy expectations, rose, while longer-term rates declined. Most Eurozone government bond yields increased along with improving growth prospects across the region. Longer-term U.K. yields declined amid Brexit uncertainty. Japanese government bond yields, anchored by the Bank of Japan’s yield-targeting policy, were little changed.
Absolute returns in most major fixed income credit risk sectors were positive for each quarter of the year. On an excess return basis, all of the major credit risk sectors posted positive returns over the period, including securitized, high yield, emerging markets debt, and investment grade corporates, led by lower-rated sectors.
The primary driver of the Fund’s outperformance versus the Bloomberg Barclays U.S. Aggregate Bond Index was the Fund’s out-of-benchmark allocation to non-agency Mortgage-Backed Securities (MBS). Investment grade credit positioning, in particular security selection within Industrials and Financials, also contributed positively to outperformance. The Fund’s allocations to bank loans, commercial mortgage-backed securities (CMBS), and collateralized loan obligations (CLOs) were also additive during the year. The Fund’s overweight to agency MBS and exposure to Treasury Inflation-Protected Securities detracted from relative performance during the period.
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| Hartford Total Return Bond HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
An allocation to high yield credit was additive, though the strong contribution from holding high yield bonds was somewhat offset by the Fund’s credit hedges that were implemented through index credit default swaps (CDX). The Fund’s tactical yield curve and duration positions had an overall positive contribution to performance for the year, although this was partially offset by some government bond derivatives positions, including US Treasury futures and Eurodollar futures, which in aggregate contributed favorably to returns for the year.
What is the outlook?
As of the end of the period, we continued to position the Fund with a moderately pro-cyclical risk posture in credit markets, based on what we consider to be positive U.S. economic growth momentum. The Fund is positioned for an increase in inflation expectations. The Fund ended the period with an underweight positioning in investment grade credit. The Fund held an overweight to agency mortgage-backed securities and maintained an out-of-benchmark allocation to select non-agency residential mortgage-backed securities (RMBS). The Fund also held commercial mortgage-backed securities and CLOs based on what we consider to be attractive valuations. Within corporate credit we continued to favor bank loans, and also held high yield and contingent convertibles (CoCos) of large European banks. We continued to hold select exposure to emerging markets debt where valuations are attractive in our view.
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. 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 and emerging-market 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.
Composition by Security Type
as of December 31, 2017
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 0.0 | %* |
Preferred Stocks | | | 0.1 | |
| | | | |
Total | | | 0.1 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 36.1 | % |
Corporate Bonds | | | 25.2 | |
Foreign Government Obligations | | | 2.0 | |
Municipal Bonds | | | 1.7 | |
Senior Floating Rate Interests | | | 2.5 | |
U.S. Government Agencies | | | 43.1 | |
U.S. Government Securities | | | 6.2 | |
| | | | |
Total | | | 116.8 | % |
| | | | |
Short-Term Investments | | | 3.7 | |
Purchased Options | | | 0.2 | |
Other Assets & Liabilities | | | (20.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
Hartford Ultrashort Bond HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | |
| | | 1 Year | | | Since
Inception1 | |
Ultrashort Bond IA | | | 1.01% | | | | 0.53% | |
Ultrashort Bond IB | | | 0.80% | | | | 0.28% | |
Bloomberg Barclays Short Treasury 9-12 Month Index | | | 0.68% | | | | 0.45% | |
| 1 | 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 December 31, 2017. |
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 December 31, 2017, 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.
Bloomberg Barclays Short Treasury 9-12 Month Index (reflects no deduction for fees, expenses or taxes) includes aged U.S. Treasury bills, notes and bonds with a remaining maturity from 1 up to (but not including) 12 months. It excludes zero coupon strips.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.45% and 0.70%, respectively. Actual expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford Ultrashort Bond HLS Fund |
Manager Discussion
December 31, 2017 (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 1.01% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Bloomberg Barclays Short Treasury 9-12 Month Index, which returned 0.68% for the same period. During the same period, the Fund underperformed the 1.74% 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 period, global fixed income markets generated solid gains as measured by the Bloomberg Barclays Global Aggregate Index. Escalating geopolitical tensions and serial disappointments in inflation data helped to contain the increase in sovereign debt yields prompted by a number of central banks ending quantitative easing. In the United States (U.S.), political controversies – in particular, the ongoing investigation into alleged involvement by Russia in the 2016 presidential election – led to a short-lived dip in risk assets. Elections in France and the United Kingdom (U.K.) presented potential sources of volatility, but proved benign in the aftermath. Despite concerns about prospects for retailers, particularly in the U.S., generally solid corporate earnings, strong global economic data, and continued demand for yield-producing assets supported credit markets and spreads tightened. Throughout the year, most developed market currencies strengthened versus the U.S. dollar (USD) as political uncertainty and continued skepticism about the U.S. Federal Reserve’s (Fed) projected rate-hiking path weighed on the currency, though the U.S. dollar recovered a bit during the fourth quarter of 2017.
Monetary policy continued on an incrementally more hawkish path throughout the year. (“Hawkish” generally describes a monetary policy that favors higher interest rates to mitigate the risk of inflation.) The Fed announced it would begin tapering its asset purchases in October 2017. The Fed increased rates three times in 2017 and also projected an additional three increases in 2018. At its October meeting, the European Central Bank (ECB) announced a reduction in its monthly asset purchases to €30 billion from €60 billion beginning in January 2018, but extended the purchase program through September 2018. Strong growth and inflation data prompted the Bank of Canada to increase rates for the first time in seven years while the Bank of England (BoE) increased interest rates for the first time in ten years; however the BoE’s press conference tilted dovish, noting that future rate increases would depend on the stability of the transition of the U.K.’s exit from the E.U. (Brexit). (“Dovish” describes a monetary policy that favors lower interest rates to encourage economic growth.)
Developed markets’ government yields ended mixed over the period as improving global economic data were balanced by subdued inflation. In the U.S., the yield curve flattened; front-end yields, which were heavily influenced by Fed monetary policy expectations, rose, while longer-term rates declined. Most Eurozone government bond yields increased along with improving growth prospects across the region. Longer-term U.K. yields declined amid Brexit uncertainty. Japanese government bond yields, anchored by the Bank of Japan’s yield-targeting policy, were little changed.
Absolute returns in most major fixed income credit risk sectors were positive for each quarter of the year. On an excess return basis, all of the major credit risk sectors posted positive returns over the period, including securitized, high yield, emerging markets debt, and investment grade corporates, led by lower-rated sectors.
The Fund outperformed the Bloomberg Barclays Short Treasury 9-12 Month Index, primarily due to out-of-benchmark allocations to investment grade corporate credit, particularly within the Financials and Industrials sectors, and Asset Backed Securities (ABS), specifically within auto and credit card ABS. Duration and yield curve positioning contributed positively to benchmark relative 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?
At the end of the period, the Fund was positioned with a pro-cyclical risk posture, favoring the credit and securitized sectors. We positioned the Fund this way based on expectations of continued U.S. economic growth momentum, driven by low unemployment, tax cuts, and investment spending. Against this positive macro backdrop, we believe inflation pressures are rising.
We expect the Fed to continue its gradual tightening path. However, new Fed leadership or rising inflation could alter the trajectory. Given our expectation for strong, sustained growth – both in the U.S. and abroad – combined with a moderate rise in inflation, the Fed should be able to achieve its projected three rate increases in 2018. As a result, the Fund was positioned with a short duration bias relative to the Bloomberg Barclays Short Treasury 9-12 Month Index at the end of the period.
The Fund continued to be positioned with out-of-benchmark allocations to investment grade corporates and ABS at the end of
|
| Hartford Ultrashort Bond HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
2017. Within investment grade corporates, we favor U.S. banks, as higher interest rates should benefit net interest margins going forward, and balance sheets are very strong. Within ABS, we favor auto, credit card and equipment deals. The Fund also continued to hold government agency debt based on their attractive valuations versus U.S. Treasuries.
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.
Composition by Security Type
as of December 31, 2017
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 28.6 | % |
Corporate Bonds | | | 45.4 | |
Municipal Bonds | | | 0.0 | * |
U.S. Government Agencies | | | 8.2 | |
U.S. Government Securities | | | 17.3 | |
| | | | |
Total | | | 99.5 | % |
| | | | |
Short-Term Investments | | | 0.3 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
Hartford U.S. Government Securities HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
U.S. Government Securities IA | | | 1.32% | | | | 1.10% | | | | 2.05% | |
U.S. Government Securities IB | | | 1.11% | | | | 0.86% | | | | 1.80% | |
Bloomberg Barclays Intermediate Government Bond Index | | | 1.14% | | | | 0.92% | | | | 2.70% | |
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 December 31, 2017, 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 through March 5, 2012 represents performance of the Fund’s previous sub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012, HIMCO no longer served as the sub-adviser to the Fund.
Bloomberg Barclays Intermediate Government Bond Index (reflects no deduction for fees, expenses or taxes) is an unmanaged index of government bonds with maturities of between one and ten years.
You cannot invest directly in an index.
As shown in the Fund’s current prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.52% and 0.77%, respectively. Expenses shown include acquired fund fees and expenses. Actual
expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
|
| Hartford U.S. Government Securities HLS Fund |
Manager Discussion
December 31, 2017 (Unaudited)
Portfolio Managers
Michael F. Garrett
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Brian Conroy, 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 U.S. Government Securities HLS Fund returned 1.32% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Bloomberg Barclays Intermediate Government Bond Index, which returned 1.14% for the same period. During the same period, the Fund underperformed the 1.60% 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 period, global fixed income markets generated solid gains. Escalating geopolitical tensions and serial disappointments in inflation data helped to contain the increase in sovereign debt yields prompted by a number of central banks ending quantitative easing. In the United States (U.S.), political controversies – in particular, the ongoing investigation into alleged involvement by Russia in the 2016 presidential election – led to a short-lived dip in risk assets. Elections in France and the United Kingdom (U.K.) presented potential sources of volatility, but proved benign in the aftermath. Despite concerns about prospects for retailers, particularly in the U.S., generally solid corporate earnings, strong global economic data, and continued demand for yield-producing assets supported credit markets and spreads tightened. Throughout the year, most developed market currencies strengthened versus the U.S. dollar (USD) as political uncertainty and continued skepticism about the U.S. Federal Reserve’s (Fed) projected rate-hiking path weighed on the currency, though the U.S. dollar recovered a bit during the fourth quarter of 2017.
Monetary policy continued on an incrementally more hawkish path throughout the year. (“Hawkish” generally describes a monetary policy that favors higher interest rates to mitigate the risk of inflation.) The Fed announced it would begin tapering its asset purchases in October 2017. The Fed increased rates three times in 2017 and also projected an additional three increases in 2018. At its October meeting, the European Central Bank (ECB) announced a reduction in its monthly asset purchases to €30 billion from €60 billion beginning in January 2018, but extended the purchase program through September 2018. Strong growth and inflation data prompted the Bank of Canada to increase rates for the first time in seven years while the Bank of England (BoE) increased interest rates for the first time in ten years; however the BoE’s press conference tilted dovish,
noting that future rate increases would depend on the stability of the transition of the U.K.’s exit from the E.U. (Brexit). (“Dovish” describes a monetary policy that favors lower interest rates to encourage economic growth.)
Developed markets’ government yields ended mixed over the period as improving global economic data were balanced by subdued inflation. In the U.S., the yield curve flattened; front-end yields, which were heavily influenced by Fed monetary policy expectations, rose, while longer-term rates declined. Most Eurozone government bond yields increased along with improving growth prospects across the region. Longer-term U.K. yields declined amid Brexit uncertainty. Japanese government bond yields, anchored by the Bank of Japan’s yield-targeting policy, were little changed.
Absolute returns in most major fixed income credit risk sectors were positive for each quarter of the year. On an excess return basis, all of the major credit risk sectors posted positive returns over the period, including securitized, high yield, emerging markets debt, and investment grade corporates, led by lower-rated sectors.
Out-of-benchmark allocations to non-agency residential mortgage-backed securities (RMBS), Fannie Mae Delegated Underwriting and Servicing Bonds (FNMA DUS), and asset-backed securities (ABS) were the primary drivers of outperformance relative to the Bloomberg Barclays Intermediate Government Bond Index over the period. Within non-agency RMBS, performance was driven by non-traditional and legacy prime sectors. Allocations to U.S. Treasury Inflation-Protected Securities (TIPS) and commercial mortgage-backed securities (CMBS), primarily agency, also contributed positively. Allocations to collateralized mortgage obligations (CMOs) and agency pass-through positioning had only modest impacts on benchmark relative returns. We used Treasury futures and interest rate swaps to manage duration and yield curve exposures; overall, these components had a positive impact on absolute performance over the period.
What is the outlook?
At the end of the period, the Fund was underweight agency mortgage backed securities (MBS) pass-throughs. Within the agency MBS sector, we are focused on positioning the Fund in investments that have less prepayment risk, such as FNMA DUS and CMOs. While we
|
| Hartford U.S. Government Securities HLS Fund |
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
do not see a significant near-term source of underperformance, historically tight spreads and ultra-low volatility leave us with a negative view of agency MBS pass-throughs. As a result, we have increased the Fund’s holdings away from agency MBS pass-throughs toward other sectors with attractive income and less sensitivity to prepayments or a pickup in volatility. In fact, while we often maintain this bias toward stability, the Fund’s MBS investments reflect their lowest weighting in agency pass-throughs since the financial crisis of 2008.
Mortgage spreads to Treasuries are historically tight – a reflection of the steady economic growth, benign inflation, and low volatility environment. Additionally, tight valuations in competing credit risk sectors are creating demand for MBS as investors de-risk and shift into high-quality assets. However, we do not favor an underweight to all sectors of the agency MBS market, given the ability to earn attractive income in what we believe is a “steady state” environment, which could continue for longer than expected. Instead, we have shifted the Fund’s investments to the more stable MBS sectors, positioning the Fund for an increase in volatility without a significant sacrifice in income.
The Fed has orchestrated a smooth balance-sheet exit so far, judging by the muted response from the agency MBS market. Still, the market may begin to price the Fed’s actions as its balance sheet begins to shrink more rapidly during 2018. Reinvestments by the Fed have provided significant support to the MBS market and spreads may still need to widen to absorb the resulting net new supply. Overall, we still expect a muted impact on the mortgage market, with the potential for a modest spread widening in agency MBS as tapering reinvestments progresses this year. Since the Fed has been very transparent over the timing and the measured pace of the plan, we expect the path to wider spreads will be very gradual, and partially offset by the benefit of MBS income.
Longer term, we still expect MBS spreads to remain toward the tight end of their range relative to long-term history based on what we consider to be their favorable supply relative to U.S. Treasuries, lower leverage in the system, a more stable buyer-base of long-term investors, a constrained mortgage credit environment, and lower refinancing risk.
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.
Composition by Security Type
as of December 31, 2017
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 16.9 | % |
U.S. Government Agencies | | | 65.3 | |
U.S. Government Securities | | | 22.5 | |
| | | | |
Total | | | 104.7 | % |
| | | | |
Short-Term Investments | | | 0.5 | |
Other Assets & Liabilities | | | (5.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
Hartford Value HLS Fund (Unaudited) 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 Returns (as of 12/31/17)
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Value IA | | | 15.44% | | | | 13.32% | | | | 7.27% | |
Value IB | | | 15.04% | | | | 13.03% | | | | 6.99% | |
Russell 1000 Value Index | | | 13.66% | | | | 14.04% | | | | 7.10% | |
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 December 31, 2017, 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 (reflects no deduction for fees, expenses or taxes) 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.
You cannot invest directly in an index.
As shown in the Fund’s prospectus dated May 1, 2017, the total annual fund operating expense ratios for Class IA and Class IB were 0.80% and 1.05%, respectively. The Fund filed with the U.S. Securities and Exchange Commission a supplement to its prospectus indicating that, effective January 1, 2018, Hartford Funds Management Company, LLC lowered its contractual management fee rate with respect to the Fund. The Fund’s total annual fund operating expense ratios for Class IA and Class IB as shown in the supplemented prospectus are 0.71% and 0.96%, respectively. Actual
expenses may be higher. Please see the accompanying Financial Highlights for expense ratios for the year ended December 31, 2017.
The chart and table do not reflect the deductions of taxes, sales charges or other fees which may be applied at the variable contract level or by a qualified pension or retirement plan. Any such additional sales charges or other fees or expenses would lower the contract’s or plan’s performance.
Performance information may reflect historical expense waivers/reimbursements without which performance would have been lower.
Effective December 31, 2017, the Fund was closed to new qualified pension and retirement plans until further notice. For more information, please see the Fund’s prospectus.
Manager Discussion
December 31, 2017 (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 15.44% for the twelve-month period ended December 31, 2017, outperforming the Fund’s benchmark, the Russell 1000 Value Index, which returned 13.66% for the same period. During the same period, the Fund underperformed the 16.20% 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, as measured by the S&P 500 Index, rose over the period. Early in the first quarter of 2017, the Trump rally rolled on with continued confidence in tax reform, deregulation, and infrastructure spending, despite concerns about stretched valuations and overly optimistic policy expectations. The U.S. Federal Reserve (Fed) increased rates for the third time in a decade, but the market did not flinch. Risk-on sentiment stalled in March after the Republicans’ failure to repeal and replace the Affordable Care Act cast a cloud over the Trump administration’s pro-growth agenda. The rally continued into the second quarter of 2017, despite plunging oil prices, heightened political risk, and a rate increase from the Fed. In a well-telegraphed move, the Fed increased policy rates by another 0.25% in June. Volatility ticked up in June as investors gravitated back to the reflation trade (i.e., investing in assets that may be expected to benefit from rising economic growth and inflation), triggering rotations out of momentum and growth plays and into cyclical and value pockets of the market.
Despite continued White House turmoil and heightened U.S. tensions with Russia and North Korea, strong employment data and corporate earnings helped propel the S&P 500 Index to a series of new highs during the third quarter of 2017. In a widely anticipated move, the Fed announced that its balance sheet normalization program (i.e., a process of shrinking the Fed’s balance sheet) would begin in October, reiterating that the process would be gradual and predictable. Through the fourth quarter of 2017, low unemployment rates, robust corporate earnings, and strong consumer and business spending contributed positively to market sentiment. Tax reform was
a key area of focus at the end of the period, culminating with a $1.5 trillion tax reform bill signed into law by President Donald Trump at the end of December. In a widely anticipated move, the Fed raised the benchmark federal funds rate by 0.25%, to a range of 1.25% to 1.50%, citing labor market strength and a solid rate of economic growth. Jerome Powell’s nomination as the chair of the Fed provided markets with reasonable assurance that current central bank policies would be maintained in the near term.
During the period, returns varied by market-cap, as large-cap equities, as measured by the S&P 500 Index, outperformed both small- and mid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, 9 of the eleven sectors within the Russell 1000 Value Index rose, led by Information Technology (+28%), Materials (+25%), and Financials (+21%). Telecommunication services (-3%) and Energy (-1%) lagged on a relative basis.
The Fund’s outperformance versus 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 Information Technology sector and underweights to the Telecommunication Services and Real Estate sectors, which was only partially offset by the negative impact of an overweight to Industrials. Security selection also contributed positively to benchmark-relative results. Selection within the Industrials, Consumer Discretionary, and Information Technology sectors contributed positively to relative performance. This was partially offset by weaker stock selection in the Healthcare sector.
The largest contributors to returns relative to the Russell 1000 Value Index during the period were PulteGroup (Consumer Discretionary), Caterpillar (Industrials), and AT&T (Telecommunication Services). Shares of PulteGroup, a U.S.-based homebuilder, rose during the period on strong earnings that beat consensus expectations. Shares of Caterpillar, a U.S.-based manufacturer of construction and mining equipment, rose as the company has been able to improve profitability amid a challenging sales environment. Cost cutting efforts
Manager Discussion – (continued)
December 31, 2017 (Unaudited)
and restructuring have improved cash flow and strengthened the balance sheet. Shares of AT&T, a U.S.-based telecommunications company, fell during the period due to investor concerns that the Trump administration would find it difficult to pass policies such as corporate tax reform and deregulation which would otherwise provide a business investment tailwind for the company. AT&T also reported steeper-than-expected subscriber losses in both mobile and video, reflecting rising competitive pressures in both markets. Not holding this security contributed positively to relative performance. Top absolute contributors during the period included JPMorgan Chase (Financials) and Cisco Systems (Information Technology).
The top detractors from returns relative to the Russell 1000 Value Index over the period were Signet Jewelers (Consumer Discretionary), Viacom (Consumer Discretionary), and Allergan (Healthcare). Shares of Signet Jewelers, a U.S.-based retailer of affordable diamond, gold and silver jewelry, fell following the release of weak third quarter results, which noted a meaningfully more negative outlook for the fourth quarter due to disruptions in the transition of credit servicing. Shares of Viacom, a U.S.-based cable network programmer, fell during the period due to concerns that hit the broader industry related to domestic advertising spending, after companies in both the auto and electronics sectors reduced their ad budgets during the first quarter. Shares of Allergan, a global pharmaceutical company, fell as the market focused on a court ruling against the company in a patent lawsuit in October 2017. Top absolute detractors during the period included General Electric (Industrials) and Anadarko (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?
With U.S. tax reform now enacted into law, we see the potential for a further acceleration in U.S. Gross Domestic Product (GDP) growth, driven by increases in consumer expenditures, corporate profits, and business spending. We are watching for a pick-up in inflation, as tax stimulus pulls forward growth in an economy with a low unemployment rate and decent current growth. The Fed continued to raise rates and shrink its balance sheet at a very measured pace. The consensus view calls for three federal funds rate increases during 2018.
The macro environment looks favorable for markets over the next few quarters, although risks remain. Equity markets closed out the year with historically low volatility in the face of the North Korean nuclear threat, Russian meddling in the U.S. election, and multiple hurricanes hitting the U.S. this past fall. Rates are low and are likely moving higher across the globe in our view, while the European Central Bank is tapering their quantitative easing program, and the U.K. is proceeding with their planned exit from the European Union.
Based on individual stock decisions, the Fund ended the period most overweight the Information Technology, Industrials, and Consumer Discretionary sectors, and most underweight the Consumer Staples, Real Estate, 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 and more volatile 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 (e.g., “Brexit”). The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if there are adverse economic consequences in those sectors. Value investing may go out of favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector
as of December 31, 2017
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 9.8 | % |
Consumer Staples | | | 4.7 | |
Energy | | | 10.3 | |
Financials | | | 28.4 | |
Health Care | | | 11.1 | |
Industrials | | | 11.5 | |
Information Technology | | | 13.1 | |
Materials | | | 3.0 | |
Real Estate | | | 1.0 | |
Telecommunication Services | | | 1.6 | |
Utilities | | | 3.4 | |
| | | | |
Total | | | 97.9 | % |
| | | | |
Short-Term Investments | | | 2.1 | |
Other Assets & Liabilities | | | 0.0 | * |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
A sector may be comprised of several industries. For Fund compliance purposes, the Fund may not use the same classification system. 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 July 1, 2017 through December 31, 2017. To the extent a Fund was subject to acquired fund fees and expenses during the period, acquired fund fees and expenses are not included in the annualized expense ratio below.
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 contract level or by a qualified pension or retirement plan. 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 184/365 (to reflect the one-half year period).
Hartford Balanced HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,083.70 | | | $ | 3.31 | | | $ | 1,000.00 | | | $ | 1,022.03 | | | $ | 3.21 | | | | 0.63 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,082.60 | | | $ | 4.62 | | | $ | 1,000.00 | | | $ | 1,020.77 | | | $ | 4.48 | | | | 0.88 | % | | | 184 | | | | 365 | |
Hartford Capital Appreciation HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,087.40 | | | $ | 3.58 | | | $ | 1,000.00 | | | $ | 1,021.78 | | | $ | 3.47 | | | | 0.68 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,085.80 | | | $ | 4.89 | | | $ | 1,000.00 | | | $ | 1,020.52 | | | $ | 4.74 | | | | 0.93 | % | | | 184 | | | | 365 | |
Class IC | | $ | 1,000.00 | | | $ | 1,084.40 | | | $ | 6.20 | | | $ | 1,000.00 | | | $ | 1,019.26 | | | $ | 6.01 | | | | 1.18 | % | | | 184 | | | | 365 | |
Expense Examples (Unaudited) – (continued)
Hartford Disciplined Equity HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,106.90 | | | $ | 4.14 | | | $ | 1,000.00 | | | $ | 1,021.27 | | | $ | 3.97 | | | | 0.78 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,105.50 | | | $ | 5.47 | | | $ | 1,000.00 | | | $ | 1,020.01 | | | $ | 5.24 | | | | 1.03 | % | | | 184 | | | | 365 | |
Hartford Dividend and Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,106.90 | | | $ | 3.61 | | | $ | 1,000.00 | | | $ | 1,021.78 | | | $ | 3.47 | | | | 0.68 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,105.70 | | | $ | 4.94 | | | $ | 1,000.00 | | | $ | 1,020.52 | | | $ | 4.74 | | | | 0.93 | % | | | 184 | | | | 365 | |
Hartford Global Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31, 2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,123.30 | | | $ | 4.34 | | | $ | 1,000.00 | | | $ | 1,021.12 | | | $ | 4.13 | | | | 0.81 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,121.80 | | | $ | 5.67 | | | $ | 1,000.00 | | | $ | 1,019.86 | | | $ | 5.40 | | | | 1.06 | % | | | 184 | | | | 365 | |
Hartford Growth Opportunities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,112.10 | | | $ | 3.51 | | | $ | 1,000.00 | | | $ | 1,021.88 | | | $ | 3.36 | | | | 0.66 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,110.50 | | | $ | 4.84 | | | $ | 1,000.00 | | | $ | 1,020.62 | | | $ | 4.63 | | | | 0.91 | % | | | 184 | | | | 365 | |
Class IC | | $ | 1,000.00 | | | $ | 1,109.20 | | | $ | 6.17 | | | $ | 1,000.00 | | | $ | 1,019.36 | | | $ | 5.90 | | | | 1.16 | % | | | 184 | | | | 365 | |
Expense Examples (Unaudited) – (continued)
Hartford Healthcare HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,001.00 | | | $ | 4.49 | | | $ | 1,000.00 | | | $ | 1,020.72 | | | $ | 4.53 | | | | 0.89 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,000.20 | | | $ | 5.75 | | | $ | 1,000.00 | | | $ | 1,019.46 | | | $ | 5.80 | | | | 1.14 | % | | | 184 | | | | 365 | |
Hartford High Yield HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,030.30 | | | $ | 3.89 | | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | | | | 0.76 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,029.20 | | | $ | 5.17 | | | $ | 1,000.00 | | | $ | 1,020.11 | | | $ | 5.14 | | | | 1.01 | % | | | 184 | | | | 365 | |
Hartford International Opportunities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,091.90 | | | $ | 3.85 | | | $ | 1,000.00 | | | $ | 1,021.53 | | | $ | 3.72 | | | | 0.73 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,090.60 | | | $ | 5.16 | | | $ | 1,000.00 | | | $ | 1,020.27 | | | $ | 4.99 | | | | 0.98 | % | | | 184 | | | | 365 | |
Hartford MidCap HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,110.70 | | | $ | 3.72 | | | $ | 1,000.00 | | | $ | 1,021.68 | | | $ | 3.57 | | | | 0.70 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,109.20 | | | $ | 5.05 | | | $ | 1,000.00 | | | $ | 1,020.42 | | | $ | 4.84 | | | | 0.95 | % | | | 184 | | | | 365 | |
Expense Examples (Unaudited) – (continued)
Hartford MidCap Value HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,095.40 | | | $ | 4.54 | | | $ | 1,000.00 | | | $ | 1,020.87 | | | $ | 4.38 | | | | 0.86 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,093.30 | | | $ | 5.86 | | | $ | 1,000.00 | | | $ | 1,019.61 | | | $ | 5.65 | | | | 1.11 | % | | | 184 | | | | 365 | |
Hartford Small Cap Growth HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,093.30 | | | $ | 3.43 | | | $ | 1,000.00 | | | $ | 1,021.93 | | | $ | 3.31 | | | | 0.65 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,091.80 | | | $ | 4.75 | | | $ | 1,000.00 | | | $ | 1,020.67 | | | $ | 4.58 | | | | 0.90 | % | | | 184 | | | | 365 | |
Hartford Small Company HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,120.70 | | | $ | 4.17 | | | $ | 1,000.00 | | | $ | 1,021.27 | | | $ | 3.97 | | | | 0.78 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,119.20 | | | $ | 5.50 | | | $ | 1,000.00 | | | $ | 1,020.01 | | | $ | 5.24 | | | | 1.03 | % | | | 184 | | | | 365 | |
Hartford Small/Mid Cap Equity HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,109.70 | | | $ | 4.89 | | | $ | 1,000.00 | | | $ | 1,020.57 | | | $ | 4.69 | | | | 0.92 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,107.50 | | | $ | 6.22 | | | $ | 1,000.00 | | | $ | 1,019.31 | | | $ | 5.96 | | | | 1.17 | % | | | 184 | | | | 365 | |
Expense Examples (Unaudited) – (continued)
Hartford Stock HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,097.10 | | | $ | 2.75 | | | $ | 1,000.00 | | | $ | 1,022.58 | | | $ | 2.65 | | | | 0.52 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,095.60 | | | $ | 4.07 | | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.92 | | | | 0.77 | % | | | 184 | | | | 365 | |
Hartford Total Return Bond HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,017.60 | | | $ | 2.59 | | | $ | 1,000.00 | | | $ | 1,022.64 | | | $ | 2.60 | | | | 0.51 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,014.90 | | | $ | 3.86 | | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | | | | 0.76 | % | | | 184 | | | | 365 | |
Hartford Ultrashort Bond HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 1,005.10 | | | $ | 2.27 | | | $ | 1,000.00 | | | $ | 1,022.94 | | | $ | 2.29 | | | | 0.45 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 1,004.00 | | | $ | 3.54 | | | $ | 1,000.00 | | | $ | 1,021.68 | | | $ | 3.57 | | | | 0.70 | % | | | 184 | | | | 365 | |
Hartford U.S. Government Securities HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA | | $ | 1,000.00 | | | $ | 998.60 | | | $ | 2.52 | | | $ | 1,000.00 | | | $ | 1,022.69 | | | $ | 2.55 | | | | 0.50 | % | | | 184 | | | | 365 | |
Class IB | | $ | 1,000.00 | | | $ | 997.60 | | | $ | 3.78 | | | $ | 1,000.00 | | | $ | 1,021.43 | | | $ | 3.82 | | | | 0.75 | % | | | 184 | | | | 365 | |
Expense Examples (Unaudited) – (continued)
Hartford Value HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | | | | | | | | | | |
| | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Beginning
Account
Value
July 1,
2017 | | | Ending
Account
Value
December 31,
2017 | | | Expenses paid
during the period
July 1, 2017
through
December 31,
2017 | | | Annualized
expense
ratio | | | Days in
the
current
1/2 year | | | Days in
the full
year | |
Class IA(1) | | $ | 1,000.00 | | | $ | 1,088.80 | | | $ | 4.21 | | | $ | 1,000.00 | | | $ | 1,021.17 | | | $ | 4.08 | | | | 0.80 | % | | | 184 | | | | 365 | |
Class IB(2) | | $ | 1,000.00 | | | $ | 1,087.00 | | | $ | 5.52 | | | $ | 1,000.00 | | | $ | 1,019.91 | | | $ | 5.35 | | | | 1.05 | % | | | 184 | | | | 365 | |
| (1) | Effective January 1, 2018, Hartford Funds Management Company, LLC lowered its contractual management fee rate set forth in the investment management agreement for the Hartford Value HLS Fund. If this new management fee rate were in effect during the period, the annualized expense ratio would have been 0.72%, and the expenses paid in the actual and hypothetical examples would have been $3.79 and $3.67, respectively. |
| (2) | Effective January 1, 2018, Hartford Funds Management Company, LLC lowered its contractual management fee rate set forth in the investment management agreement for the Hartford Value HLS Fund. If this new management fee rate were in effect during the period, the annualized expense ratio would have been 0.97%, and the expenses paid in the actual and hypothetical examples would have been $5.10 and $4.94, respectively. |
|
| Hartford Balanced HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 66.7% | |
| | | | Banks - 7.2% | | | |
| | 1,207,570 | | | Bank of America Corp. | | $ | 35,647,466 | |
| | 400,720 | | | Citigroup, Inc. | | | 29,817,575 | |
| | 385,810 | | | JP Morgan Chase & Co. | | | 41,258,521 | |
| | 147,420 | | | PNC Financial Services Group, Inc. | | | 21,271,232 | |
| | 698,280 | | | Wells Fargo & Co. | | | 42,364,648 | |
| | | | | | | | |
| | | | | | | 170,359,442 | |
| | | | | | | | |
| | | | Capital Goods - 4.8% | | | |
| | 100,480 | | | 3M Co. | | | 23,649,978 | |
| | 95,580 | | | Caterpillar, Inc. | | | 15,061,496 | |
| | 276,080 | | | Eaton Corp. plc | | | 21,813,081 | |
| | 232,360 | | | Fortune Brands Home & Security, Inc. | | | 15,902,718 | |
| | 180,230 | | | Ingersoll-Rand plc | | | 16,074,714 | |
| | 177,320 | | | United Technologies Corp. | | | 22,620,712 | |
| | | | | | | | |
| | | | | | | 115,122,699 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.2% | | | |
| | 118,760 | | | Dun & Bradstreet Corp. | | | 14,062,372 | |
| | 407,770 | | | Nielsen Holdings plc | | | 14,842,828 | |
| | | | | | | | |
| | | | | | | 28,905,200 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.4% | | | |
| | 273,630 | | | NIKE, Inc. Class B | | | 17,115,556 | |
| | 509,040 | | | PulteGroup, Inc. | | | 16,925,580 | |
| | | | | | | | |
| | | | | | | 34,041,136 | |
| | | | | | | | |
| | | | Consumer Services - 1.4% | | | |
| | 247,896 | | | Hilton Worldwide Holdings, Inc. | | | 19,796,975 | |
| | 255,700 | | | Norwegian Cruise Line Holdings Ltd.* | | | 13,616,025 | |
| | | | | | | | |
| | | | | | | 33,413,000 | |
| | | | | | | | |
| | | | Diversified Financials - 1.5% | | | |
| | 31,270 | | | BlackRock, Inc. | | | 16,063,712 | |
| | 555,410 | | | Invesco Ltd. | | | 20,294,681 | |
| | | | | | | | |
| | | | | | | 36,358,393 | |
| | | | | | | | |
| | | | Energy - 4.3% | | | |
| | 238,975 | | | Chevron Corp. | | | 29,917,280 | |
| | 110,610 | | | Diamondback Energy, Inc.* | | | 13,964,513 | |
| | 138,980 | | | EOG Resources, Inc. | | | 14,997,332 | |
| | 169,880 | | | Exxon Mobil Corp. | | | 14,208,763 | |
| | 325,150 | | | Halliburton Co. | | | 15,890,080 | |
| | 354,590 | | | Suncor Energy, Inc. | | | 13,020,545 | |
| | | | | | | | |
| | | | | | | 101,998,513 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.0% | | | |
| | 308,234 | | | British American Tobacco plc | | | 20,836,250 | |
| | 168,916 | | | Kraft Heinz Co. | | | 13,134,908 | |
| | 328,240 | | | Mondelez International, Inc. Class A | | | 14,048,672 | |
| | 225,620 | | | Philip Morris International, Inc. | | | 23,836,753 | |
| | | | | | | | |
| | | | | | | 71,856,583 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 3.4% | | | |
| | 422,910 | | | Boston Scientific Corp.* | | | 10,483,939 | |
| | 324,555 | | | Medtronic plc | | | 26,207,816 | |
| | 140,130 | | | UnitedHealth Group, Inc. | | | 30,893,060 | |
| | 113,900 | | | Universal Health Services, Inc. Class B | | | 12,910,565 | |
| | | | | | | | |
| | | | | | | 80,495,380 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.6% | | | |
| | 267,200 | | | Unilever N.V. | | | 15,048,704 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 66.7% - (continued) | |
| | | | Insurance - 2.9% | | | |
| | 423,990 | | | American International Group, Inc. | | $ | 25,261,324 | |
| | 238,360 | | | Marsh & McLennan Cos., Inc. | | | 19,400,121 | |
| | 211,040 | | | Unum Group | | | 11,583,986 | |
| | 372,490 | | | XL Group Ltd. | | | 13,096,748 | |
| | | | | | | | |
| | | | | | | 69,342,179 | |
| | | | | | | | |
| | | | Materials - 2.2% | | | |
| | 454,550 | | | DowDuPont, Inc. | | | 32,373,051 | |
| | 335,900 | | | International Paper Co. | | | 19,462,046 | |
| | | | | | | | |
| | | | | | | 51,835,097 | |
| | | | | | | | |
| | | | Media - 2.1% | | | |
| | 724,420 | | | Comcast Corp. Class A | | | 29,013,021 | |
| | 651,960 | | | Viacom, Inc. Class B | | | 20,086,888 | |
| | | | | | | | |
| | | | | | | 49,099,909 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.2% | |
| | 129,150 | | | Allergan plc | | | 21,126,357 | |
| | 132,330 | | | Amgen, Inc. | | | 23,012,187 | |
| | 497,350 | | | AstraZeneca plc ADR | | | 17,258,045 | |
| | 366,940 | | | Bristol-Myers Squibb Co. | | | 22,486,083 | |
| | 161,100 | | | Eisai Co., Ltd. | | | 9,152,022 | |
| | 393,250 | | | Merck & Co., Inc. | | | 22,128,178 | |
| | 73,740 | | | Roche Holding AG | | | 18,645,542 | |
| | 81,710 | | | Vertex Pharmaceuticals, Inc.* | | | 12,245,061 | |
| | | | | | | | |
| | | | | | | 146,053,475 | |
| | | | | | | | |
| | | | Real Estate - 0.8% | | | |
| | 646,544 | | | Park Hotels & Resorts, Inc. REIT | | | 18,588,140 | |
| | | | | | | | |
| | | | Retailing - 3.5% | | | |
| | 11,702,200 | | | Allstar Co.*(1)(2)(3)(4) | | | 2,340,440 | |
| | 165,310 | | | Home Depot, Inc. | | | 31,331,204 | |
| | 642,010 | | | Liberty Interactive Corp. QVC Group Class A* | | | 15,677,884 | |
| | 8,240 | | | Priceline Group, Inc.* | | | 14,318,978 | |
| | 212,290 | | | TJX Cos., Inc. | | | 16,231,693 | |
| | 67,006 | | | Tory Burch LLC(1)(2)(3)(4) | | | 3,296,034 | |
| | | | | | | | |
| | | | | | | 83,196,233 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.2% | |
| | 214,850 | | | Analog Devices, Inc. | | | 19,128,095 | |
| | 714,870 | | | Intel Corp. | | | 32,998,399 | |
| | 275,570 | | | Maxim Integrated Products, Inc. | | | 14,406,800 | |
| | 525,760 | | | QUALCOMM, Inc. | | | 33,659,155 | |
| | | | | | | | |
| | | | | | | 100,192,449 | |
| | | | | | | | |
| | | | Software & Services - 8.8% | | | |
| | 67,725 | | | Alphabet, Inc. Class C* | | | 70,867,440 | |
| | 233,740 | | | Cognizant Technology Solutions Corp. Class A | | | 16,600,215 | |
| | 622,240 | | | eBay, Inc.* | | | 23,483,337 | |
| | 212,680 | | | Facebook, Inc. Class A* | | | 37,529,513 | |
| | 693,230 | | | Microsoft Corp. | | | 59,298,894 | |
| | | | | | | | |
| | | | | | | 207,779,399 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 4.4% | | | |
| | 276,030 | | | Apple, Inc. | | | 46,712,557 | |
| | 945,650 | | | Cisco Systems, Inc. | | | 36,218,395 | |
| | 373,960 | | | NetApp, Inc. | | | 20,687,467 | |
| | | | | | | | |
| | | | | | | 103,618,419 | |
| | | | | | | | |
| | | | Transportation - 1.2% | | | |
| | 210,510 | | | Union Pacific Corp. | | | 28,229,391 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 66.7% - (continued) | |
| | | | Utilities - 1.6% | | | |
| | 240,010 | | | NextEra Energy, Inc. | | $ | 37,487,162 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,086,017,410) | | $ | 1,583,020,903 | |
| | | | | | | | |
|
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 4.0% | |
| | | | Asset-Backed - Automobile - 0.6% | | | |
| $ | 345,000 | | | ARI Fleet Lease Trust
1.91%, 04/15/2026(1) | | $ | 344,231 | |
| | 655,000 | | | Canadian Pacer Auto Receivables Trust
2.05%, 03/19/2021(1) | | | 651,840 | |
| | 225,000 | | | CarMax Auto Owner Trust
1.95%, 09/16/2019 | | | 225,002 | |
| | | | Chesapeake Funding LLC | | | | |
| | 1,305,000 | | | 1.91%, 08/15/2029(1) | | | 1,298,378 | |
| | 1,000,000 | | | 1 mo. USD LIBOR + 1.000%,
1.93%, 05/15/2029(1)(5) | | | 1,002,155 | |
| | 1,718,283 | | | 1 mo. USD LIBOR + 1.000%,
2.48%, 06/15/2028(1)(5) | | | 1,727,856 | |
| | | | Enterprise Fleet Financing LLC | | | | |
| | 840,000 | | | 1.97%, 01/20/2023(1) | | | 838,315 | |
| | 489,244 | | | 2.13%, 07/20/2022(1) | | | 489,245 | |
| | 905,000 | | | 2.13%, 05/22/2023(1) | | | 903,395 | |
| | | | First Investors Auto Owner Trust | | | | |
| | 247,791 | | | 1.67%, 11/16/2020(1) | | | 247,682 | |
| | 375,494 | | | 1.86%, 10/15/2021(1) | | | 375,018 | |
| | 1,239,749 | | | 2.00%, 03/15/2022(1) | | | 1,238,136 | |
| | 304,025 | | | Hyundai Auto Receivables Trust
2.48%, 03/15/2019 | | | 304,122 | |
| | 645,000 | | | OneMain Direct Auto Receivables Trust
2.31%, 12/14/2021(1) | | | 644,514 | |
| | 192,203 | | | Prestige Auto Receivables Trust
1.91%, 04/15/2020(1) | | | 192,211 | |
| | | | Santander Drive Auto Receivables Trust | | | | |
| | 124,368 | | | 2.33%, 11/15/2019 | | | 124,501 | |
| | 236,669 | | | 2.36%, 04/15/2020 | | | 236,753 | |
| | | | Securitized Term Auto Receivables Trust | | | | |
| | 1,785,000 | | | 1.52%, 03/25/2020(1) | | | 1,777,868 | |
| | 550,000 | | | 2.04%, 04/26/2021(1) | | | 546,918 | |
| | 150,201 | | | Westlake Automobile Receivables Trust
1.57%, 06/17/2019(1) | | | 150,142 | |
| | | | Wheels SPV LLC | | | | |
| | 264,624 | | | 1.59%, 05/20/2025(1) | | | 263,918 | |
| | 765,000 | | | 1.88%, 04/20/2026(1) | | | 761,872 | |
| | | | | | | | |
| | | | | | | 14,344,072 | |
| | | | | | | | |
| | | | Asset-Backed - Credit Card - 0.5% | | | |
| | 2,665,000 | | | CARDS Trust
1 mo. USD LIBOR + 0.700%,
2.18%, 07/15/2021(1)(5) | | | 2,672,794 | |
| | 3,275,000 | | | Evergreen Credit Card Trust
1 mo. USD LIBOR + 0.720%,
2.20%, 04/15/2020(1)(5) | | | 3,281,099 | |
| | 4,330,000 | | | Trillium Credit Card Trust
1 mo. USD LIBOR + 0.720%,
2.27%, 05/26/2021(1)(5) | | | 4,340,899 | |
| | | | | | | | |
| | | | | | | 10,294,792 | |
| | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 1.9% | | | |
| | 2,755,000 | | | Ajax Mortgage Loan Trust
3.16%, 09/25/2056(1)(6) | | | 2,754,992 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 4.0% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 1.9% - (continued) | |
| $ | 3,480,000 | | | Atlas Senior Loan Fund Ltd.
3 mo. USD LIBOR + 1.300%,
2.61%, 01/16/2030(1)(5) | | $ | 3,501,141 | |
| | 732,432 | | | Bayview Koitere Fund Trust
4.00%, 11/28/2053(1)(6) | | | 754,355 | |
| | | | Bayview Opportunity Master Fund Trust | | | | |
| | 765,242 | | | 3.50%, 01/28/2055(1)(6) | | | 775,796 | |
| | 797,532 | | | 3.50%, 06/28/2057(1)(6) | | | 808,602 | |
| | 1,455,893 | | | 3.50%, 07/28/2057(1)(6) | | | 1,484,219 | |
| | 990,443 | | | 4.00%, 10/28/2064(1)(6) | | | 1,019,779 | |
| | 2,000,000 | | | BlueMountain CLO Ltd.
3 mo. USD LIBOR + 1.600%,
2.96%, 10/15/2026(1)(5) | | | 2,001,184 | |
| | 2,000,000 | | | CIFC Funding Ltd.
3 mo. USD LIBOR + 1.600%,
2.95%, 04/18/2025(1)(5) | | | 2,001,216 | |
| | 1,015,000 | | | CNH Equipment Trust
1.75%, 04/15/2021 | | | 1,014,969 | |
| | | | Ford Credit Floorplan Master Owner Trust | | | | |
| | 2,575,000 | | | 1.75%, 07/15/2021 | | | 2,550,701 | |
| | 430,000 | | | 2.09%, 03/15/2022(1) | | | 428,433 | |
| | 1,040,000 | | | GreatAmerica Leasing Receivables Funding LLC
2.36%, 01/20/2023(1) | | | 1,033,925 | |
| | 1,465,000 | | | KKR CLO Ltd.
3 mo. USD LIBOR + 1.340%,
2.70%, 04/15/2029(1)(5) | | | 1,478,031 | |
| | 4,000,000 | | | Madison Park Funding Ltd.
3 mo. USD LIBOR + 1.120%,
2.48%, 07/20/2026(1)(5) | | | 4,017,648 | |
| | | | MMAF Equipment Finance LLC | | | | |
| | 428,925 | | | 1.39%, 12/17/2018(1) | | | 428,620 | |
| | 506,014 | | | 1.73%, 05/18/2020(1) | | | 505,312 | |
| | 665,000 | | | 2.21%, 10/17/2022(1) | | | 662,068 | |
| | 1,000,000 | | | 2.21%, 12/15/2032(1) | | | 980,190 | |
| | | | Nationstar HECM Loan Trust | | | | |
| | 397,463 | | | 1.97%, 05/25/2027(1) | | | 396,863 | |
| | 427,192 | | | 2.04%, 09/25/2027(1)(6) | | | 426,434 | |
| | 3,825,000 | | | Oaktree EIF Ltd.
3 mo. USD LIBOR + 1.150%,
2.57%, 11/15/2025(1)(5) | | | 3,841,750 | |
| | 2,465,000 | | | Octagon Loan Funding Ltd.
3 mo. USD LIBOR + 1.140%,
2.58%, 11/18/2026(1)(5) | | | 2,477,705 | |
| | | | OneMain Financial Issuance Trust | | | | |
| | 440,000 | | | 3.66%, 02/20/2029(1) | | | 447,075 | |
| | 870,000 | | | 4.10%, 03/20/2028(1) | | | 881,239 | |
| | 1,565,078 | | | SBA Tower Trust
2.90%, 10/15/2044(1)(7) | | | 1,568,839 | |
| | | | Springleaf Funding Trust | | | | |
| | 440,000 | | | 2.90%, 11/15/2029(1) | | | 440,648 | |
| | 1,765,000 | | | 3.16%, 11/15/2024(1) | | | 1,772,009 | |
| | 755,000 | | | 3.48%, 05/15/2028(1) | | | 763,129 | |
| | 1,965,000 | | | SPS Servicer Advance Receivables Trust
2.53%, 11/16/2048(1) | | | 1,947,753 | |
| | | | Towd Point Mortgage Trust | | | | |
| | 1,369,443 | | | 2.75%, 10/25/2056(1)(6) | | | 1,367,686 | |
| | 358,821 | | | 2.75%, 04/25/2057(1)(6) | | | 358,550 | |
| | 956,555 | | | 2.75%, 06/25/2057(1)(6) | | | 952,581 | |
| | | | | | | | |
| | | | | | | 45,843,442 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 4.0% - (continued) | |
| | | | Asset-Backed - Home Equity - 0.0% | | | |
| $ | 36 | | | New Century Home Equity Loan Trust
1 mo. USD LIBOR + 0.580%,
2.13%, 03/25/2035(5) | | $ | 36 | |
| | | | | | | | |
| | | | Commercial Mortgage-Backed Securities - 0.7% | |
| | 1,575,000 | | | Commercial Mortgage Trust
3.18%, 02/10/2048 | | | 1,593,887 | |
| | | | CSAIL Commercial Mortgage Trust | | | | |
| | 3,200,000 | | | 3.50%, 06/15/2057 | | | 3,277,941 | |
| | 3,400,000 | | | 3.51%, 04/15/2050 | | | 3,500,766 | |
| | 2,220,000 | | | CSMC Trust
2.76%, 04/05/2033(1) | | | 2,225,324 | |
| | 385,000 | | | FREMF Mortgage Trust
3.36%, 05/25/2045(1)(6) | | | 388,425 | |
| | 710,000 | | | JP Morgan Chase Commercial Mortgage Securities Trust
3.91%, 01/15/2049 | | | 750,927 | |
| | 448,576 | | | LB-UBS Commercial Mortgage Trust
6.32%, 04/15/2041(6) | | | 449,338 | |
| | 3,100,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust
3.31%, 04/15/2048 | | | 3,160,031 | |
| | 1,000,000 | | | SFAVE Commercial Mortgage Securities Trust
4.14%, 01/05/2043(1)(6) | | | 1,023,243 | |
| | | | | | | | |
| | | | | | | 16,369,882 | |
| | | | | | | | |
| | | | Whole Loan Collateral CMO - 0.3% | | | |
| | 628,427 | | | Angel Oak Mortgage Trust LLC
2.71%, 11/25/2047(1)(6) | | | 624,176 | |
| | | | Deephaven Residential Mortgage Trust | | | | |
| | 803,999 | | | 2.45%, 06/25/2047(1)(6) | | | 795,044 | |
| | 735,471 | | | 2.58%, 10/25/2047(1)(6) | | | 735,425 | |
| | 374,679 | | | 2.73%, 12/26/2046(1)(6) | | | 372,778 | |
| | 686,185 | | | Finance of America Structured Securities Trust
2.32%, 11/25/2027(1)(6) | | | 685,956 | |
| | 884,281 | | | MetLife Securitization Trust
3.00%, 04/25/2055(1)(6) | | | 893,135 | |
| | | | Mill City Mortgage Loan Trust | | | | |
| | 447,187 | | | 2.50%, 04/25/2057(1)(6) | | | 444,442 | |
| | 1,070,845 | | | 2.75%, 01/25/2061(1)(6) | | | 1,069,516 | |
| | 1,259,545 | | | New Residential Mortgage Loan Trust
4.00%, 04/25/2057(1)(6) | | | 1,297,071 | |
| | 1,012,168 | | | Towd Point Mortgage Trust
2.25%, 04/25/2056(1)(6) | | | 1,002,491 | |
| | | | | | | | |
| | | | | | | 7,920,034 | |
| | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $95,200,079) | | $ | 94,772,258 | |
| | | | | | | | |
|
| CORPORATE BONDS - 18.6% | |
| | | | Aerospace/Defense - 0.1% | | | |
| | 850,000 | | | BAE Systems Holdings, Inc.
3.85%, 12/15/2025(1) | | $ | 881,498 | |
| | | | Lockheed Martin Corp. | | | | |
| | 1,000,000 | | | 4.07%, 12/15/2042 | | | 1,052,740 | |
| | 256,000 | | | 4.50%, 05/15/2036 | | | 287,053 | |
| | 560,000 | | | 4.85%, 09/15/2041 | | | 640,120 | |
| | | | | | | | |
| | | | | | | 2,861,411 | |
| | | | | | | | |
| | | | Agriculture - 0.3% | | | |
| | | | Altria Group, Inc. | | | | |
| | 560,000 | | | 4.50%, 05/02/2043 | | | 608,485 | |
| | 1,995,000 | | | 4.75%, 05/05/2021 | | | 2,139,400 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Agriculture - 0.3% - (continued) | | | |
| | | | BAT International Finance plc | | | | |
| $ | 685,000 | | | 2.75%, 06/15/2020(1) | | $ | 688,350 | |
| | 2,775,000 | | | 3.25%, 06/07/2022(1) | | | 2,815,755 | |
| | 290,000 | | | 3.50%, 06/15/2022(1) | | | 296,667 | |
| | 1,065,000 | | | Imperial Brands Finance plc
3.75%, 07/21/2022(1) | | | 1,100,573 | |
| | | | Philip Morris International, Inc. | | | | |
| | 325,000 | | | 4.88%, 11/15/2043 | | | 371,208 | |
| | 270,000 | | | 5.65%, 05/16/2018 | | | 273,848 | |
| | | | | | | | |
| | | | | | | 8,294,286 | |
| | | | | | | | |
| | | | Airlines - 0.2% | | | |
| | 2,976,434 | | | Continental Airlines, Inc.
5.98%, 04/19/2022 | | | 3,245,206 | |
| | 2,107,622 | | | Southwest Airlines Co.
6.15%, 08/19/2020 | | | 2,292,460 | |
| | | | | | | | |
| | | | | | | 5,537,666 | |
| | | | | | | | |
| | | | Auto Manufacturers - 0.5% | | | |
| | | | Daimler Finance North America LLC | | | | |
| | 150,000 | | | 2.25%, 07/31/2019(1) | | | 150,275 | |
| | 1,440,000 | | | 2.30%, 02/12/2021(1) | | | 1,427,788 | |
| | 665,000 | | | Ford Motor Co.
4.35%, 12/08/2026 | | | 693,318 | |
| | 4,200,000 | | | Ford Motor Credit Co. LLC
3.10%, 05/04/2023 | | | 4,175,941 | |
| | | | General Motors Financial Co., Inc. | | | | |
| | 3,185,000 | | | 3.70%, 05/09/2023 | | | 3,248,455 | |
| | 1,245,000 | | | 3.95%, 04/13/2024 | | | 1,281,715 | |
| | 580,000 | | | Volkswagen Group of America Finance LLC
2.45%, 11/20/2019(1) | | | 579,648 | |
| | | | | | | | |
| | | | | | | 11,557,140 | |
| | | | | | | | |
| | | | Beverages - 0.3% | | | |
| | | | Anheuser-Busch InBev Finance, Inc. | | | | |
| | 1,750,000 | | | 3.65%, 02/01/2026 | | | 1,805,961 | |
| | 310,000 | | | 4.70%, 02/01/2036 | | | 346,626 | |
| | 280,000 | | | 4.90%, 02/01/2046 | | | 324,517 | |
| | 480,000 | | | Anheuser-Busch InBev Worldwide, Inc.
3.75%, 07/15/2042 | | | 466,833 | |
| | | | Coca-Cola Femsa S.A.B. de C.V. | | | | |
| | 530,853 | | | 2.38%, 11/26/2018 | | | 532,136 | |
| | 1,300,000 | | | 3.88%, 11/26/2023 | | | 1,359,858 | |
| | 245,000 | | | Constellation Brands, Inc.
2.70%, 05/09/2022 | | | 243,801 | |
| | | | Molson Coors Brewing Co. | | | | |
| | 765,000 | | | 3.50%, 05/01/2022 | | | 785,736 | |
| | 215,000 | | | 5.00%, 05/01/2042 | | | 243,819 | |
| | | | | | | | |
| | | | | | | 6,109,287 | |
| | | | | | | | |
| | | | Biotechnology - 0.2% | | | |
| | 1,340,000 | | | Biogen, Inc.
2.90%, 09/15/2020 | | | 1,358,253 | |
| | | | Celgene Corp. | | | | |
| | 230,000 | | | 2.25%, 05/15/2019 | | | 229,687 | |
| | 770,000 | | | 3.55%, 08/15/2022 | | | 793,123 | |
| | 535,000 | | | 3.63%, 05/15/2024 | | | 550,217 | |
| | | | Gilead Sciences, Inc. | | | | |
| | 335,000 | | | 2.55%, 09/01/2020 | | | 337,977 | |
| | 930,000 | | | 3.70%, 04/01/2024 | | | 972,956 | |
| | | | | | | | |
| | | | | | | 4,242,213 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Chemicals - 0.1% | | | |
| $ | 1,950,000 | | | Agrium, Inc.
3.15%, 10/01/2022 | | $ | 1,972,015 | |
| | 965,000 | | | CNAC HK Synbridge Co., Ltd.
5.00%, 05/05/2020 | | | 982,100 | |
| | | | | | | | |
| | | | | | | 2,954,115 | |
| | | | | | | | |
| | | | Commercial Banks - 5.0% | | | |
| | 1,400,000 | | | Banco Santander S.A.
3.13%, 02/23/2023 | | | 1,392,876 | |
| | | | Bank of America Corp. | | | | |
| | 1,220,000 | | | 2.63%, 10/19/2020 | | | 1,230,243 | |
| | 1,799,000 | | | 3.42%, 12/20/2028(1)(6) | | | 1,799,387 | |
| | 1,610,000 | | | 3 mo. USD LIBOR + 1.370%,
3.59%, 07/21/2028(5) | | | 1,636,490 | |
| | 2,950,000 | | | 4.20%, 08/26/2024 | | | 3,106,559 | |
| | 6,000,000 | | | 6.88%, 04/25/2018 | | | 6,091,663 | |
| | 2,020,000 | | | Bank of New York Mellon Corp.
2.15%, 02/24/2020 | | | 2,017,113 | |
| | 2,830,000 | | | Banque Federative du Credit Mutuel S.A.
2.75%, 10/15/2020(1) | | | 2,848,743 | |
| | 2,740,000 | | | Barclays plc
3.20%, 08/10/2021 | | | 2,754,738 | |
| | | | BNP Paribas S.A. | | | | |
| | 2,075,000 | | | 2.40%, 12/12/2018 | | | 2,080,854 | |
| | 590,000 | | | 2.95%, 05/23/2022(1) | | | 591,284 | |
| | 2,410,000 | | | 3.50%, 11/16/2027(1) | | | 2,398,811 | |
| | | | BPCE S.A. | | | | |
| | 365,000 | | | 2.50%, 12/10/2018 | | | 366,026 | |
| | 305,000 | | | 3.00%, 05/22/2022(1) | | | 304,831 | |
| | 2,025,000 | | | 3.50%, 10/23/2027(1) | | | 1,992,582 | |
| | 2,225,000 | | | 5.15%, 07/21/2024(1) | | | 2,412,579 | |
| | | | Capital One Financial Corp. | | | | |
| | 2,875,000 | | | 3.75%, 04/24/2024 | | | 2,953,526 | |
| | 815,000 | | | 4.20%, 10/29/2025 | | | 838,491 | |
| | | | Citigroup, Inc. | | | | |
| | 1,220,000 | | | 2.50%, 07/29/2019 | | | 1,223,744 | |
| | 2,355,000 | | | 3 mo. USD LIBOR + 1.151%,
3.52%, 10/27/2028(5) | | | 2,366,110 | |
| | 533,000 | | | 5.30%, 05/06/2044 | | | 629,300 | |
| | 290,000 | | | 8.13%, 07/15/2039 | | | 463,689 | |
| | 1,695,000 | | | Citizens Bank NA
2.55%, 05/13/2021 | | | 1,688,726 | |
| | 505,000 | | | Compass Bank
2.75%, 09/29/2019 | | | 506,397 | |
| | | | Credit Agricole S.A. | | | | |
| | 950,000 | | | 2.50%, 04/15/2019(1) | | | 953,176 | |
| | 1,025,000 | | | 3.25%, 10/04/2024(1) | | | 1,018,104 | |
| | 790,000 | | | 4.38%, 03/17/2025(1) | | | 824,954 | |
| | | | Credit Suisse AG | | | | |
| | 945,000 | | | 2.30%, 05/28/2019 | | | 945,914 | |
| | 855,000 | | | 3.00%, 10/29/2021 | | | 863,773 | |
| | 250,000 | | | 3.63%, 09/09/2024 | | | 258,685 | |
| | 530,000 | | | Credit Suisse Group AG
3.57%, 01/09/2023(1) | | | 538,857 | |
| | | | Credit Suisse Group Funding Guernsey Ltd. | | | | |
| | 1,425,000 | | | 3.75%, 03/26/2025 | | | 1,454,052 | |
| | 1,885,000 | | | 3.80%, 09/15/2022 | | | 1,944,452 | |
| | 2,210,000 | | | Deutsche Bank AG
4.25%, 10/14/2021 | | | 2,299,207 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Commercial Banks - 5.0% - (continued) | | | |
| | | | Goldman Sachs Group, Inc. | | | | |
| $ | 3,335,000 | | | 2.38%, 01/22/2018 | | $ | 3,335,682 | |
| | 1,700,000 | | | 6.15%, 04/01/2018 | | | 1,717,892 | |
| | 2,590,000 | | | 6.25%, 02/01/2041 | | | 3,490,280 | |
| | | | HSBC Holdings plc | | | | |
| | 1,030,000 | | | 3.40%, 03/08/2021 | | | 1,052,760 | |
| | 4,625,000 | | | 3.60%, 05/25/2023 | | | 4,758,468 | |
| | 370,000 | | | 3 mo. USD LIBOR + 1.546%,
4.04%, 03/13/2028(5) | | | 385,592 | |
| | | | Huntington National Bank | | | | |
| | 2,120,000 | | | 2.20%, 11/06/2018 | | | 2,121,883 | |
| | 1,490,000 | | | 2.40%, 04/01/2020 | | | 1,487,509 | |
| | | | ING Groep N.V. | | | | |
| | 345,000 | | | 3.15%, 03/29/2022 | | | 349,126 | |
| | 1,100,000 | | | 3.95%, 03/29/2027 | | | 1,146,778 | |
| | | | JP Morgan Chase & Co. | | | | |
| | 2,240,000 | | | 3.25%, 09/23/2022 | | | 2,293,428 | |
| | 2,000,000 | | | 4.95%, 03/25/2020 | | | 2,113,120 | |
| | 705,000 | | | 5.40%, 01/06/2042 | | | 885,316 | |
| | 2,600,000 | | | Korea Development Bank
2.50%, 03/11/2020 | | | 2,580,260 | |
| | 470,000 | | | Macquarie Bank Ltd.
2.40%, 01/21/2020(1) | | | 468,848 | |
| | | | Morgan Stanley | | | | |
| | 4,875,000 | | | 2.50%, 01/24/2019 | | | 4,887,418 | |
| | 1,450,000 | | | 3.13%, 07/27/2026 | | | 1,430,178 | |
| | 1,800,000 | | | 3.63%, 01/20/2027 | | | 1,842,218 | |
| | 1,000,000 | | | 3.70%, 10/23/2024 | | | 1,033,328 | |
| | 515,000 | | | 4.30%, 01/27/2045 | | | 555,468 | |
| | 250,000 | | | 5.63%, 09/23/2019 | | | 263,454 | |
| | 4,250,000 | | | National City Corp.
6.88%, 05/15/2019 | | | 4,505,997 | |
| | 4,905,000 | | | NBK SPC Ltd.
2.75%, 05/30/2022(1) | | | 4,821,615 | |
| | 1,755,000 | | | Santander Holdings USA, Inc.
3.40%, 01/18/2023(1) | | | 1,748,162 | |
| | | | Santander UK plc | | | | |
| | 1,375,000 | | | 2.50%, 03/14/2019 | | | 1,379,226 | |
| | 2,150,000 | | | 5.00%, 11/07/2023(1) | | | 2,297,402 | |
| | 1,775,000 | | | Societe Generale S.A.
3.25%, 01/12/2022(1) | | | 1,791,259 | |
| | 640,000 | | | SunTrust Bank
3.30%, 05/15/2026 | | | 633,850 | |
| | | | UBS Group Funding Switzerland AG | | | | |
| | 1,665,000 | | | 2.95%, 09/24/2020(1) | | | 1,682,349 | |
| | 1,900,000 | | | 3.00%, 04/15/2021(1) | | | 1,913,337 | |
| | | | Wells Fargo & Co. | | | | |
| | 4,344,000 | | | 4.48%, 01/16/2024 | | | 4,668,860 | |
| | 850,000 | | | 4.75%, 12/07/2046 | | | 949,993 | |
| | | | | | | | |
| | | | | | | 119,386,992 | |
| | | | | | | | |
| | | | Commercial Services - 0.4% | | | |
| | | | Catholic Health Initiatives | | | | |
| | 765,000 | | | 2.60%, 08/01/2018 | | | 767,432 | |
| | 1,854,000 | | | 2.95%, 11/01/2022 | | | 1,837,950 | |
| | 245,000 | | | 4.35%, 11/01/2042 | | | 236,517 | |
| | | | ERAC USA Finance LLC | | | | |
| | 655,000 | | | 2.35%, 10/15/2019(1) | | | 653,131 | |
| | 1,800,000 | | | 4.50%, 08/16/2021(1) | | | 1,898,456 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Commercial Services - 0.4% - (continued) | | | |
| $ | 1,500,000 | | | 5.63%, 03/15/2042(1) | | $ | 1,771,194 | |
| | 2,545,000 | | | Total System Services, Inc.
3.80%, 04/01/2021 | | | 2,608,539 | |
| | | | | | | | |
| | | | | | | 9,773,219 | |
| | | | | | | | |
| | | | Diversified Financial Services - 0.9% | | | |
| | 1,655,000 | | | Capital One Bank USA NA
2.15%, 11/21/2018 | | | 1,655,043 | |
| | 2,475,000 | | | CDP Financial, Inc.
4.40%, 11/25/2019(1) | | | 2,572,194 | |
| | | | GE Capital International Funding Co. | | | | |
| | 1,139,000 | | | 2.34%, 11/15/2020 | | | 1,133,749 | |
| | 2,222,000 | | | 4.42%, 11/15/2035 | | | 2,404,774 | |
| | 1,910,000 | | | LeasePlan Corp. N.V.
2.88%, 01/22/2019(1) | | | 1,911,294 | |
| | 7,637,711 | | | Postal Square L.P.
8.95%, 06/15/2022 | | | 8,874,859 | |
| | | | Synchrony Financial | | | | |
| | 2,045,000 | | | 2.60%, 01/15/2019 | | | 2,048,868 | |
| | 520,000 | | | 2.70%, 02/03/2020 | | | 521,300 | |
| | 355,000 | | | 3.00%, 08/15/2019 | | | 357,469 | |
| | | | | | | | |
| | | | | | | 21,479,550 | |
| | | | | | | | |
| | | | Electric - 2.1% | | | |
| | 1,300,000 | | | Berkshire Hathaway Energy Co.
4.50%, 02/01/2045 | | | 1,453,310 | |
| | 1,960,000 | | | Cleveland Electric Illuminating Co.
3.50%, 04/01/2028(1) | | | 1,962,140 | |
| | | | Dominion Energy, Inc. | | | | |
| | 2,850,000 | | | 3.63%, 12/01/2024 | | | 2,949,591 | |
| | 1,750,000 | | | 4.10%, 04/01/2021(7) | | | 1,821,135 | |
| | 725,000 | | | Dominion Energy, Inc.
2.96%, 07/01/2019(7) | | | 730,613 | |
| | 1,200,000 | | | Duke Energy Carolinas LLC
6.10%, 06/01/2037 | | | 1,587,942 | �� |
| | 855,000 | | | Duke Energy Corp.
2.65%, 09/01/2026 | | | 819,233 | |
| | 1,375,000 | | | Electricite de France S.A.
10 year USD Swap + 3.041%,
5.63%, 01/22/2024(1)(5)(8) | | | 1,419,687 | |
| | 365,000 | | | Emera U.S. Finance L.P.
2.70%, 06/15/2021 | | | 364,111 | |
| | 1,305,000 | | | Entergy Corp.
2.95%, 09/01/2026 | | | 1,269,692 | |
| | 285,000 | | | Eversource Energy
3.15%, 01/15/2025 | | | 286,076 | |
| | 1,995,000 | | | FirstEnergy Corp.
3.90%, 07/15/2027 | | | 2,044,168 | |
| | 1,705,000 | | | Fortis, Inc.
3.06%, 10/04/2026 | | | 1,646,254 | |
| | 1,000,000 | | | Georgia Power Co.
5.95%, 02/01/2039 | | | 1,260,399 | |
| | 1,275,000 | | | Indianapolis Power and Light Co.
6.60%, 06/01/2037(1) | | | 1,641,747 | |
| | 515,000 | | | Infraestructura Energetica Nova S.A.B. de C.V.
4.88%, 01/14/2048(1) | | | 495,044 | |
| | 1,700,000 | | | NextEra Energy Capital Holdings, Inc.
3.55%, 05/01/2027 | | | 1,731,695 | |
| | 340,000 | | | NiSource Finance Corp.
4.80%, 02/15/2044 | | | 384,881 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Electric - 2.1% - (continued) | | | |
| $ | 750,000 | | | Oglethorpe Power Corp.
5.25%, 09/01/2050 | | $ | 862,206 | |
| | | | Oncor Electric Delivery Co. LLC | | | | |
| | 385,000 | | | 2.95%, 04/01/2025 | | | 384,121 | |
| | 1,185,000 | | | 4.10%, 06/01/2022 | | | 1,248,156 | |
| | | | Pacific Gas & Electric Co. | | | | |
| | 695,000 | | | 3.85%, 11/15/2023 | | | 724,788 | |
| | 100,000 | | | 3.95%, 12/01/2047(1) | | | 99,389 | |
| | 45,000 | | | 4.30%, 03/15/2045 | | | 47,021 | |
| | 45,000 | | | 4.75%, 02/15/2044 | | | 49,886 | |
| | 550,000 | | | 5.13%, 11/15/2043 | | | 642,053 | |
| | 1,125,000 | | | 5.40%, 01/15/2040 | | | 1,356,915 | |
| | 851,000 | | | 5.80%, 03/01/2037 | | | 1,061,975 | |
| | 265,000 | | | 6.05%, 03/01/2034 | | | 334,017 | |
| | 55,000 | | | 6.25%, 03/01/2039 | | | 71,492 | |
| | 55,000 | | | 6.35%, 02/15/2038 | | | 72,719 | |
| | | | SCANA Corp. | | | | |
| | 2,031,000 | | | 4.13%, 02/01/2022 | | | 2,074,209 | |
| | 2,780,000 | | | 4.75%, 05/15/2021 | | | 2,882,623 | |
| | 1,100,000 | | | 6.25%, 04/01/2020 | | | 1,167,708 | |
| | | | South Carolina Electric & Gas Co. | | | | |
| | 215,000 | | | 4.35%, 02/01/2042 | | | 224,607 | |
| | 205,000 | | | 4.60%, 06/15/2043 | | | 221,460 | |
| | 1,180,000 | | | 6.05%, 01/15/2038 | | | 1,474,863 | |
| | 2,000,000 | | | Southern California Edison Co.
5.55%, 01/15/2037 | | | 2,520,058 | |
| | | | Southern Co. | | | | |
| | 1,450,000 | | | 2.75%, 06/15/2020 | | | 1,459,182 | |
| | 2,050,000 | | | 2.95%, 07/01/2023 | | | 2,051,004 | |
| | | | State Grid Overseas Investment Ltd. | | | | |
| | 1,795,000 | | | 2.75%, 05/07/2019(1) | | | 1,801,630 | |
| | 1,485,000 | | | 2.75%, 05/04/2022(1) | | | 1,471,938 | |
| | 1,490,000 | | | 3.50%, 05/04/2027(1) | | | 1,497,203 | |
| | | | | | | | |
| | | | | | | 49,668,941 | |
| | | | | | | | |
| | | | Engineering & Construction - 0.1% | | | |
| | 1,300,000 | | | Mexico City Airport Trust
5.50%, 07/31/2047(1) | | | 1,283,750 | |
| | 1,235,000 | | | SBA Tower Trust
2.88%, 07/09/2021(1) | | | 1,225,737 | |
| | | | | | | | |
| | | | | | | 2,509,487 | |
| | | | | | | | |
| | | | Food - 0.3% | | | |
| | | | Kraft Heinz Foods Co. | | | | |
| | 530,000 | | | 3.00%, 06/01/2026 | | | 510,008 | |
| | 2,030,000 | | | 3.50%, 07/15/2022 | | | 2,076,186 | |
| | 1,890,000 | | | 4.38%, 06/01/2046 | | | 1,872,139 | |
| | | | Kroger Co. | | | | |
| | 620,000 | | | 3.30%, 01/15/2021 | | | 632,316 | |
| | 1,065,000 | | | 4.00%, 02/01/2024 | | | 1,106,462 | |
| | 250,000 | | | 4.45%, 02/01/2047 | | | 249,622 | |
| | 680,000 | | | Sigma Alimentos S.A. de C.V.
4.13%, 05/02/2026(1) | | | 685,950 | |
| | | | | | | | |
| | | | | | | 7,132,683 | |
| | | | | | | | |
| | | | Forest Products & Paper - 0.0% | | | |
| | 260,000 | | | International Paper Co.
4.35%, 08/15/2048 | | | 271,450 | |
| | | | | | | | |
| | | | Gas - 0.2% | | | |
| | 330,000 | | | Boston Gas Co.
3.15%, 08/01/2027(1) | | | 328,939 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Gas - 0.2% - (continued) | | | |
| $ | 1,870,000 | | | KeySpan Gas East Corp.
2.74%, 08/15/2026(1) | | $ | 1,817,838 | |
| | 1,910,000 | | | Sempra Energy
3.25%, 06/15/2027 | | | 1,900,658 | |
| | | | | | | | |
| | | | | | | 4,047,435 | |
| | | | | | | | |
| | | | Healthcare - Products - 0.1% | | | |
| | | | Medtronic, Inc. | | | | |
| | 545,000 | | | 2.50%, 03/15/2020 | | | 548,226 | |
| | 775,000 | | | 3.15%, 03/15/2022 | | | 793,790 | |
| | 1,230,000 | | | 3.50%, 03/15/2025 | | | 1,275,937 | |
| | 310,000 | | | 3.63%, 03/15/2024 | | | 324,651 | |
| | 192,000 | | | 4.38%, 03/15/2035 | | | 216,444 | |
| | | | | | | | |
| | | | | | | 3,159,048 | |
| | | | | | | | |
| | | | Healthcare - Services - 0.6% | | | |
| | 1,655,000 | | | Aetna, Inc.
2.80%, 06/15/2023 | | | 1,628,820 | |
| | | | Anthem, Inc. | | | | |
| | 421,000 | | | 3.30%, 01/15/2023 | | | 427,174 | |
| | 580,000 | | | 4.38%, 12/01/2047 | | | 616,680 | |
| | 675,000 | | | 4.65%, 08/15/2044 | | | 741,307 | |
| | 590,000 | | | Catholic Health Initiatives
4.20%, 08/01/2023 | | | 610,971 | |
| | | | Dignity Health | | | | |
| | 180,000 | | | 2.64%, 11/01/2019 | | | 179,783 | |
| | 380,000 | | | 3.81%, 11/01/2024 | | | 392,338 | |
| | 1,353,000 | | | 4.50%, 11/01/2042 | | | 1,354,303 | |
| | 1,770,000 | | | Humana, Inc.
2.90%, 12/15/2022 | | | 1,767,067 | |
| | 521,000 | | | Kaiser Foundation Hospitals
3.50%, 04/01/2022 | | | 536,345 | |
| | 2,000,000 | | | Mercy Health
3.56%, 08/01/2027 | | | 2,008,315 | |
| | 1,885,000 | | | SSM Health Care Corp.
3.82%, 06/01/2027 | | | 1,954,777 | |
| | | | UnitedHealth Group, Inc. | | | | |
| | 920,000 | | | 3.35%, 07/15/2022 | | | 950,020 | |
| | 1,440,000 | | | 3.75%, 07/15/2025 | | | 1,517,796 | |
| | | | | | | | |
| | | | | | | 14,685,696 | |
| | | | | | | | |
| | | | Household Products - 0.2% | | | |
| | 4,771,456 | | | Procter & Gamble Co.
9.36%, 01/01/2021 | | | 5,284,817 | |
| | | | | | | | |
| | | | Insurance - 0.4% | | | |
| | 1,445,000 | | | Berkshire Hathaway, Inc.
2.75%, 03/15/2023 | | | 1,454,443 | |
| | | | Chubb INA Holdings, Inc. | | | | |
| | 495,000 | | | 2.30%, 11/03/2020 | | | 494,212 | |
| | 840,000 | | | 3.35%, 05/15/2024 | | | 865,202 | |
| | 200,000 | | | Five Corners Funding Trust
4.42%, 11/15/2023(1) | | | 214,326 | |
| | 550,000 | | | Liberty Mutual Group, Inc.
4.25%, 06/15/2023(1) | | | 579,552 | |
| | | | MetLife, Inc. | | | | |
| | 2,205,000 | | | 3.60%, 04/10/2024 | | | 2,306,810 | |
| | 795,000 | | | 4.88%, 11/13/2043 | | | 932,913 | |
| | 2,220,000 | | | Trinity Acquisition plc
4.40%, 03/15/2026 | | | 2,347,847 | |
| | | | | | | | |
| | | | | | | 9,195,305 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Internet - 0.3% | | | |
| | | | Alibaba Group Holding Ltd. | | | | |
| $ | 200,000 | | | 2.50%, 11/28/2019 | | $ | 200,583 | |
| | 1,775,000 | | | 3.40%, 12/06/2027 | | | 1,774,552 | |
| | 1,045,000 | | | 3.60%, 11/28/2024 | | | 1,084,044 | |
| | | | Amazon.com, Inc. | | | | |
| | 1,250,000 | | | 2.50%, 11/29/2022 | | | 1,249,359 | |
| | 580,000 | | | 2.80%, 08/22/2024(1) | | | 578,237 | |
| | 475,000 | | | 4.25%, 08/22/2057(1) | | | 518,175 | |
| | 1,020,000 | | | 4.80%, 12/05/2034 | | | 1,197,204 | |
| | 480,000 | | | 4.95%, 12/05/2044 | | | 583,471 | |
| | | | | | | | |
| | | | | | | 7,185,625 | |
| | | | | | | | |
| | | | IT Services - 0.1% | | | |
| | | | Apple, Inc. | | | | |
| | 80,000 | | | 2.45%, 08/04/2026 | | | 76,676 | |
| | 546,000 | | | 3.25%, 02/23/2026 | | | 557,228 | |
| | 1,360,000 | | | 3.45%, 05/06/2024 | | | 1,410,349 | |
| | | | | | | | |
| | | | | | | 2,044,253 | |
| | | | | | | | |
| | | | Lodging - 0.1% | | | |
| | | | Marriott International, Inc. | | | | |
| | 1,310,000 | | | 2.30%, 01/15/2022 | | | 1,286,130 | |
| | 1,900,000 | | | 2.88%, 03/01/2021 | | | 1,912,211 | |
| | | | | | | | |
| | | | | | | 3,198,341 | |
| | | | | | | | |
| | | | Machinery - Construction & Mining - 0.1% | | | |
| | 1,500,000 | | | Caterpillar Financial Services Corp.
3.30%, 06/09/2024 | | | 1,541,066 | |
| | | | | | | | |
| | | | Media - 0.6% | | | |
| | | | 21st Century Fox America, Inc. | | | | |
| | 385,000 | | | 4.00%, 10/01/2023 | | | 402,586 | |
| | 1,275,000 | | | 4.50%, 02/15/2021 | | | 1,347,574 | |
| | | | Charter Communications Operating LLC / Charter Communications Operating Capital | | | | |
| | 485,000 | | | 5.38%, 05/01/2047 | | | 497,294 | |
| | 150,000 | | | 6.48%, 10/23/2045 | | | 174,890 | |
| | 2,050,000 | | | Comcast Corp.
4.40%, 08/15/2035 | | | 2,241,254 | |
| | | | Cox Communications, Inc. | | | | |
| | 80,000 | | | 4.60%, 08/15/2047(1) | | | 80,743 | |
| | 2,320,000 | | | 4.80%, 02/01/2035(1) | | | 2,364,210 | |
| | | | Sky plc | | | | |
| | 1,265,000 | | | 2.63%, 09/16/2019(1) | | | 1,267,463 | |
| | 2,386,000 | | | 3.75%, 09/16/2024(1) | | | 2,488,495 | |
| | | | Time Warner Cable LLC | | | | |
| | 395,000 | | | 6.55%, 05/01/2037 | | | 464,549 | |
| | 250,000 | | | 7.30%, 07/01/2038 | | | 313,366 | |
| | 480,000 | | | 8.25%, 04/01/2019 | | | 513,018 | |
| | 40,000 | | | 8.75%, 02/14/2019 | | | 42,649 | |
| | 130,000 | | | Time Warner Entertainment Co., L.P.
8.38%, 03/15/2023 | | | 157,837 | |
| | 835,000 | | | Viacom, Inc.
3.88%, 12/15/2021 | | | 851,703 | |
| | | | | | | | |
| | | | | | | 13,207,631 | |
| | | | | | | | |
| | | | Mining - 0.1% | | | |
| | 1,575,000 | | | Glencore Finance Canada Ltd.
4.25%, 10/25/2022(1) | | | 1,650,285 | |
| | | | | | | | |
| | | | Miscellaneous Manufacturing - 0.0% | | | |
| | 1,165,000 | | | Pentair Finance S.a.r.l.
2.90%, 09/15/2018 | | | 1,169,584 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Oil & Gas - 1.4% | | | |
| $ | 1,665,000 | | | Anadarko Petroleum Corp.
4.85%, 03/15/2021 | | $ | 1,758,300 | |
| | 1,200,000 | | | BG Energy Capital plc
4.00%, 10/15/2021(1) | | | 1,258,233 | |
| | | | BP Capital Markets plc | | | | |
| | 655,000 | | | 3.25%, 05/06/2022 | | | 671,362 | |
| | 140,000 | | | 3.99%, 09/26/2023 | | | 148,893 | |
| | 2,850,000 | | | 4.75%, 03/10/2019 | | | 2,938,462 | |
| | | | ConocoPhillips Co. | | | | |
| | 195,000 | | | 2.88%, 11/15/2021 | | | 197,267 | |
| | 655,000 | | | 3.35%, 05/15/2025 | | | 674,628 | |
| | 296,000 | | | 4.20%, 03/15/2021 | | | 311,264 | |
| | 395,000 | | | 4.30%, 11/15/2044 | | | 431,964 | |
| | 130,000 | | | 4.95%, 03/15/2026 | | | 147,560 | |
| | 2,695,000 | | | Devon Energy Corp.
3.25%, 05/15/2022 | | | 2,741,340 | |
| | 920,000 | | | Marathon Oil Corp.
2.70%, 06/01/2020 | | | 920,128 | |
| | 1,231,000 | | | Noble Energy, Inc.
4.15%, 12/15/2021 | | | 1,282,726 | |
| | | | Petroleos Mexicanos | | | | |
| | 40,000 | | | 5.38%, 03/13/2022(1) | | | 42,400 | |
| | 2,900,000 | | | 5.50%, 01/21/2021 | | | 3,076,900 | |
| | 2,425,000 | | | 6.75%, 09/21/2047 | | | 2,531,336 | |
| | 3,540,000 | | | Pioneer Natural Resources Co.
7.50%, 01/15/2020 | | | 3,882,743 | |
| | | | Shell International Finance B.V. | | | | |
| | 691,000 | | | 3.25%, 05/11/2025 | | | 710,132 | |
| | 500,000 | | | 4.38%, 03/25/2020 | | | 522,840 | |
| | 3,950,000 | | | Sinopec Group Overseas Development Ltd.
2.50%, 04/28/2020(1) | | | 3,929,170 | |
| | | | Statoil ASA | | | | |
| | 340,000 | | | 2.25%, 11/08/2019 | | | 339,973 | |
| | 160,000 | | | 2.45%, 01/17/2023 | | | 159,049 | |
| | 495,000 | | | 2.75%, 11/10/2021 | | | 501,671 | |
| | 1,850,000 | | | 2.90%, 11/08/2020 | | | 1,880,505 | |
| | 210,000 | | | 3.25%, 11/10/2024 | | | 215,892 | |
| | 45,000 | | | 3.70%, 03/01/2024 | | | 47,277 | |
| | 1,375,000 | | | Total Capital International S.A.
2.70%, 01/25/2023 | | | 1,382,882 | |
| | | | | | | | |
| | | | | | | 32,704,897 | |
| | | | | | | | |
| | | | Oil & Gas Services - 0.1% | | | |
| | 940,000 | | | Schlumberger Holdings Corp.
3.00%, 12/21/2020(1) | | | 952,175 | |
| | 1,625,000 | | | Schlumberger Investment S.A.
3.65%, 12/01/2023 | | | 1,710,739 | |
| | | | | | | | |
| | | | | | | 2,662,914 | |
| | | | | | | | |
| | | | Pharmaceuticals - 1.1% | | | |
| | 270,000 | | | AbbVie, Inc.
3.20%, 11/06/2022 | | | 274,171 | |
| | | | Allergan Funding SCS | | | | |
| | 1,195,000 | | | 3.00%, 03/12/2020 | | | 1,205,751 | |
| | 645,000 | | | 3.45%, 03/15/2022 | | | 655,355 | |
| | 1,950,000 | | | 3.80%, 03/15/2025 | | | 1,985,191 | |
| | 715,000 | | | 4.55%, 03/15/2035 | | | 756,589 | |
| | 600,000 | | | 4.85%, 06/15/2044 | | | 642,255 | |
| | | | Allergan Sales LLC | | | | |
| | 142,000 | | | 4.88%, 02/15/2021(1) | | | 150,311 | |
| | 800,000 | | | 5.00%, 12/15/2021(1) | | | 855,581 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Pharmaceuticals - 1.1% - (continued) | | | |
| | | | Bayer U.S. Finance LLC | | | | |
| $ | 260,000 | | | 2.38%, 10/08/2019(1) | | $ | 260,144 | |
| | 1,215,000 | | | 3.00%, 10/08/2021(1) | | | 1,227,472 | |
| | | | Cardinal Health, Inc. | | | | |
| | 990,000 | | | 2.40%, 11/15/2019 | | | 989,409 | |
| | 445,000 | | | 3.08%, 06/15/2024 | | | 438,063 | |
| | 880,000 | | | 3.50%, 11/15/2024 | | | 884,071 | |
| | 1,035,000 | | | 4.50%, 11/15/2044 | | | 1,050,403 | |
| | 2,015,000 | | | EMD Finance LLC
2.95%, 03/19/2022(1) | | | 2,023,654 | |
| | 1,525,000 | | | Express Scripts Holding Co.
2.25%, 06/15/2019 | | | 1,522,536 | |
| | | | McKesson Corp. | | | | |
| | 100,000 | | | 2.85%, 03/15/2023 | | | 99,657 | |
| | 650,000 | | | 3.80%, 03/15/2024 | | | 673,266 | |
| | | | Merck & Co., Inc. | | | | |
| | 1,960,000 | | | 2.75%, 02/10/2025 | | | 1,952,065 | |
| | 1,640,000 | | | 2.80%, 05/18/2023 | | | 1,653,653 | |
| | 1,925,000 | | | Mylan N.V.
3.00%, 12/15/2018 | | | 1,935,294 | |
| | 755,000 | | | Teva Pharmaceutical Finance Co. B.V.
3.65%, 11/10/2021 | | | 718,230 | |
| | 3,665,000 | | | Teva Pharmaceutical Finance Netherlands B.V.
2.80%, 07/21/2023 | | | 3,191,520 | |
| | | | | | | | |
| | | | | | | 25,144,641 | |
| | | | | | | | |
| | | | Pipelines - 0.6% | |
| | 235,000 | | | Andeavor Logistics L.P. / Tesoro Logistics Finance Corp.
3.50%, 12/01/2022 | | | 234,554 | |
| | 990,000 | | | Columbia Pipeline Group, Inc.
2.45%, 06/01/2018 | | | 990,585 | |
| | 872,000 | | | Energy Transfer L.P.
7.60%, 02/01/2024 | | | 1,007,352 | |
| | 375,000 | | | Energy Transfer L.P. / Regency Energy Finance Corp.
4.50%, 11/01/2023 | | | 387,728 | |
| | 1,500,000 | | | Kinder Morgan Energy Partners L.P.
6.95%, 01/15/2038 | | | 1,865,019 | |
| | 2,425,000 | | | Phillips 66 Partners L.P.
3.61%, 02/15/2025 | | | 2,443,190 | |
| | | | Sunoco Logistics Partners Operations L.P. | | | | |
| | 1,200,000 | | | 3.90%, 07/15/2026 | | | 1,174,281 | |
| | 509,000 | | | 4.40%, 04/01/2021 | | | 529,322 | |
| | 800,000 | | | 5.35%, 05/15/2045 | | | 794,971 | |
| | 1,036,000 | | | TransCanada PipeLines Ltd.
4.88%, 01/15/2026 | | | 1,159,954 | |
| | 2,470,000 | | | Western Gas Partners L.P.
4.00%, 07/01/2022 | | | 2,519,837 | |
| | | | | | | | |
| | | | | | | 13,106,793 | |
| | | | | | | | |
| | | | Real Estate - 0.1% | |
| | | | WEA Finance LLC / Westfield UK & Europe Finance plc | | | | |
| | 730,000 | | | 2.70%, 09/17/2019(1) | | | 733,941 | |
| | 1,400,000 | | | 3.25%, 10/05/2020(1) | | | 1,424,516 | |
| | | | | | | | |
| | | | | | | 2,158,457 | |
| | | | | | | | |
| | | | Real Estate Investment Trusts - 0.4% | |
| | | | American Tower Corp. | | | | |
| | 975,000 | | | 3.45%, 09/15/2021 | | | 996,534 | |
| | 1,110,000 | | | 5.00%, 02/15/2024 | | | 1,215,858 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Real Estate Investment Trusts - 0.4% - (continued) | |
| $ | 760,000 | | | AvalonBay Communities, Inc.
3.63%, 10/01/2020 | | $ | 782,353 | |
| | 1,950,000 | | | Brandywine Operating Partnership L.P.
3.95%, 11/15/2027 | | | 1,935,564 | |
| | 2,960,000 | | | HCP, Inc.
4.00%, 06/01/2025 | | | 3,046,925 | |
| | 1,735,000 | | | Scentre Group Trust
2.38%, 11/05/2019(1) | | | 1,731,283 | |
| | | | | | | | |
| | | | | | | 9,708,517 | |
| | | | | | | | |
| | | | Retail - 0.4% | |
| | | | AutoZone, Inc. | | | | |
| | 900,000 | | | 3.13%, 07/15/2023 | | | 899,929 | |
| | 1,908,000 | | | 3.70%, 04/15/2022 | | | 1,968,410 | |
| | | | CVS Health Corp. | | | | |
| | 2,100,000 | | | 4.00%, 12/05/2023 | | | 2,183,401 | |
| | 685,000 | | | 4.88%, 07/20/2035 | | | 758,274 | |
| | 1,185,000 | | | 5.13%, 07/20/2045 | | | 1,358,122 | |
| | 325,000 | | | Home Depot, Inc.
4.40%, 03/15/2045 | | | 368,051 | |
| | 850,000 | | | Lowe’s Cos., Inc.
4.63%, 04/15/2020 | | | 886,190 | |
| | 1,435,000 | | | O’Reilly Automotive, Inc.
3.80%, 09/01/2022 | | | 1,509,611 | |
| | | | | | | | |
| | | | | | | 9,931,988 | |
| | | | | | | | |
| | | | Savings & Loans - 0.1% | |
| | 1,610,000 | | | Nationwide Building Society
2.35%, 01/21/2020(1) | | | 1,608,987 | |
| | | | | | | | |
| | | | Semiconductors - 0.1% | |
| | 1,560,000 | | | Broadcom Corp. / Broadcom Cayman Finance Ltd.
3.63%, 01/15/2024(1) | | | 1,551,240 | |
| | 1,220,000 | | | QUALCOMM, Inc.
2.10%, 05/20/2020 | | | 1,214,869 | |
| | | | | | | | |
| | | | | | | 2,766,109 | |
| | | | | | | | |
| | | | Software - 0.2% | |
| | | | Microsoft Corp. | | | | |
| | 1,605,000 | | | 2.40%, 08/08/2026 | | | 1,547,806 | |
| | 1,230,000 | | | 3.70%, 08/08/2046 | | | 1,282,289 | |
| | 2,300,000 | | | Oracle Corp.
3.25%, 11/15/2027 | | | 2,339,020 | |
| | | | | | | | |
| | | | | | | 5,169,115 | |
| | | | | | | | |
| | | | Telecommunications - 0.6% | |
| | | | America Movil S.A.B. de C.V. | | | | |
| | 635,000 | | | 3.13%, 07/16/2022 | | | 642,564 | |
| | 390,000 | | | 6.13%, 03/30/2040 | | | 495,577 | |
| | | | AT&T, Inc. | | | | |
| | 355,000 | | | 3.95%, 01/15/2025 | | | 363,472 | |
| | 2,185,000 | | | 4.45%, 04/01/2024 | | | 2,311,319 | |
| | 1,240,000 | | | 4.50%, 03/09/2048 | | | 1,161,856 | |
| | 715,000 | | | GTP Acquisition Partners I LLC
2.35%, 06/15/2020(1) | | | 708,996 | |
| | | | Orange S.A. | | | | |
| | 2,200,000 | | | 4.13%, 09/14/2021 | | | 2,325,092 | |
| | 576,000 | | | 9.00%, 03/01/2031 | | | 864,170 | |
| | | | Verizon Communications, Inc. | | | | |
| | 2,300,000 | | | 2.95%, 03/15/2022 | | | 2,314,010 | |
| | 1,911,000 | | | 4.52%, 09/15/2048 | | | 1,881,662 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 18.6% - (continued) | |
| | | | Telecommunications - 0.6% - (continued) | |
| $ | 715,000 | | | 4.75%, 11/01/2041 | | $ | 728,911 | |
| | 283,000 | | | 4.81%, 03/15/2039 | | | 296,077 | |
| | | | | | | | |
| | | | | | | 14,093,706 | |
| | | | | | | | |
| | | | Transportation - 0.2% | |
| | 1,435,000 | | | FedEx Corp.
5.10%, 01/15/2044 | | | 1,669,967 | |
| | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | 1,685,000 | | | 3.20%, 07/15/2020(1) | | | 1,710,133 | |
| | 1,100,000 | | | 3.38%, 02/01/2022(1) | | | 1,120,594 | |
| | | | | | | | |
| | | | | | | 4,500,694 | |
| | | | | | | | |
| | | | Water - 0.0% | |
| | 625,000 | | | American Water Capital Corp.
2.95%, 09/01/2027 | | | 618,538 | |
| | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $428,479,190) | | $ | 442,322,882 | |
| | | | | | | | |
|
| FOREIGN GOVERNMENT OBLIGATIONS - 0.6% | |
| | | | Mexico - 0.1% | |
| | | | Mexico Government International Bond | | | | |
| | 1,674,000 | | | 4.00%, 10/02/2023 | | $ | 1,751,841 | |
| | 150,000 | | | 4.75%, 03/08/2044 | | | 151,650 | |
| | | | | | | | |
| | | | | | | 1,903,491 | |
| | | | | | | | |
| | | | Qatar - 0.3% | |
| | | | Qatar Government International Bond | | | | |
| | 4,990,000 | | | 2.38%, 06/02/2021(1) | | | 4,897,685 | |
| | 2,635,000 | | | 5.25%, 01/20/2020(1) | | | 2,766,719 | |
| | | | | | | | |
| | | | | | | 7,664,404 | |
| | | | | | | | |
| | | | Saudi Arabia - 0.1% | |
| | | | Saudi Government International Bond | | | | |
| | 935,000 | | | 2.38%, 10/26/2021(1) | | | 912,055 | |
| | 1,680,000 | | | 2.88%, 03/04/2023(1) | | | 1,651,477 | |
| | | | | | | | |
| | | | | | | 2,563,532 | |
| | | | | | | | |
| | | | South Korea - 0.1% | |
| | 2,300,000 | | | Export-Import Bank of Korea
1.75%, 05/26/2019 | | | 2,271,864 | |
| | | | | | | | |
| | |
| | | | Total Foreign Government Obligations
(cost $14,396,816) | | $ | 14,403,291 | |
| | | | | | | | |
|
| MUNICIPAL BONDS - 1.5% | |
| | | | General - 0.5% | |
| | | | Chicago, IL, Transit Auth | | | | |
| | 265,000 | | | 6.30%, 12/01/2021 | | $ | 284,655 | |
| | 1,985,000 | | | 6.90%, 12/01/2040 | | | 2,691,442 | |
| | 365,000 | | | City of Sacramento CA
6.42%, 08/01/2023 | | | 416,286 | |
| | 1,345,000 | | | Kansas, Development FA
4.93%, 04/15/2045 | | | 1,532,789 | |
| | 2,400,000 | | | New Jersey State, Econ DA
3.80%, 06/15/2018 | | | 2,415,144 | |
| | 3,530,000 | | | New York State Urban Development Corp.
2.10%, 03/15/2022 | | | 3,515,103 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 1.5% - (continued) | |
| | | | General - 0.5% - (continued) | |
| $ | 600,000 | | | San Jose Redev. Agcy. Successor Agcy.
3.38%, 08/01/2034 | | $ | 591,120 | |
| | | | | | | | |
| | | | | | | 11,446,539 | |
| | | | | | | | |
| | | | General Obligation - 0.5% | |
| | | | California State, GO Taxable | | | | |
| | 1,100,000 | | | 7.35%, 11/01/2039 | | | 1,650,792 | |
| | 1,235,000 | | | 7.55%, 04/01/2039 | | | 1,943,408 | |
| | 685,000 | | | Chicago, IL, Metropolitan Water Reclamation GO
5.72%, 12/01/2038 | | | 890,706 | |
| | | | Illinois State, GO | | | | |
| | 3,780,000 | | | 5.10%, 06/01/2033 | | | 3,773,725 | |
| | 75,000 | | | 5.16%, 02/01/2018 | | | 75,166 | |
| | 590,000 | | | 5.20%, 03/01/2018 | | | 592,938 | |
| | 2,320,000 | | | 5.67%, 03/01/2018 | | | 2,332,621 | |
| | 1,785,000 | | | Los Angeles, CA, USD GO
5.75%, 07/01/2034 | | | 2,276,214 | |
| | | | | | | | |
| | | | | | | 13,535,570 | |
| | | | | | | | |
| | | | Higher Education - 0.1% | |
| | 1,460,000 | | | University of California, Build America Bonds Rev
5.77%, 05/15/2043 | | | 1,909,622 | |
| | | | | | | | |
| | | | Medical - 0.1% | |
| | 980,000 | | | University of California, Regents MedCenter Pooled Rev
6.58%, 05/15/2049 | | | 1,378,595 | |
| | | | | | | | |
| | | | Power - 0.0% | |
| | 485,000 | | | New York, Utility Debt Securitization Auth
3.44%, 12/15/2025 | | | 498,983 | |
| | | | | | | | |
| | | | Transportation - 0.2% | |
| | 1,875,000 | | | Illinois State Toll Highway Auth, Taxable Rev
6.18%, 01/01/2034 | | | 2,433,656 | |
| | | | New York and New Jersey PA, Taxable Rev | | | | |
| | 685,000 | | | 4.81%, 10/15/2065 | | | 834,446 | |
| | 570,000 | | | 6.04%, 12/01/2029 | | | 726,186 | |
| | 1,000,000 | | | North Texas Tollway Auth Rev
6.72%, 01/01/2049 | | | 1,521,290 | |
| | | | | | | | |
| | | | | | | 5,515,578 | |
| | | | | | | | |
| | | | Utility - Electric - 0.1% | |
| | 1,295,000 | | | Municipal Electric Auth Georgia
6.64%, 04/01/2057 | | | 1,659,983 | |
| | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $31,679,838) | | $ | 35,944,870 | |
| | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 0.5% | |
| | | | FHLMC - 0.0% | |
| | 36,584 | | | 1 year CMT + 2.235%,
3.17%, 04/01/2029(5) | | $ | 37,872 | |
| | 34,618 | | | 4.00%, 03/01/2041 | | | 36,346 | |
| | | | | | | | |
| | | | | | | 74,218 | |
| | | | | | | | |
| | | | FNMA - 0.3% | |
| | 1,089,493 | | | 1 mo. USD LIBOR + 0.400%,
1.64%, 10/25/2024(5) | | | 1,088,864 | |
| | 78,432 | | | 4.50%, 11/01/2023 | | | 83,512 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 0.5% - (continued) | |
| | | | FNMA - 0.3% - (continued) | |
| $ | 135,857 | | | 4.50%, 03/01/2038 | | $ | 145,003 | |
| | 83,167 | | | 4.50%, 11/01/2039 | | | 88,840 | |
| | 52,747 | | | 4.50%, 04/01/2040 | | | 56,922 | |
| | 132,930 | | | 4.50%, 08/01/2040 | | | 142,509 | |
| | 50,031 | | | 4.50%, 02/01/2041 | | | 53,646 | |
| | 619,396 | | | 4.50%, 04/01/2041 | | | 663,996 | |
| | 434,636 | | | 4.50%, 06/01/2041 | | | 466,005 | |
| | 573,298 | | | 4.50%, 07/01/2041 | | | 614,339 | |
| | 199,362 | | | 4.50%, 09/01/2041 | | | 212,616 | |
| | 95,395 | | | 4.50%, 07/01/2044 | | | 102,379 | |
| | 1,850,000 | | | 4.50%, 01/01/2048(9) | | | 1,968,226 | |
| | 1,250 | | | 5.00%, 02/01/2019 | | | 1,272 | |
| | 15,031 | | | 5.00%, 04/01/2019 | | | 15,302 | |
| | | | | | | | |
| | | | | | | 5,703,431 | |
| | | | | | | | |
| | | | GNMA - 0.2% | | | |
| | 106,397 | | | 5.00%, 07/15/2037 | | | 115,406 | |
| | 15,323 | | | 6.00%, 06/15/2024 | | | 17,132 | |
| | 5,846 | | | 6.00%, 07/15/2026 | | | 6,536 | |
| | 7,860 | | | 6.00%, 01/15/2028 | | | 8,788 | |
| | 2,398 | | | 6.00%, 03/15/2028 | | | 2,707 | |
| | 53,912 | | | 6.00%, 04/15/2028 | | | 60,312 | |
| | 94,285 | | | 6.00%, 05/15/2028 | | | 105,412 | |
| | 20,893 | | | 6.00%, 06/15/2028 | | | 23,359 | |
| | 53,461 | | | 6.00%, 07/15/2028 | | | 59,770 | |
| | 18,813 | | | 6.00%, 08/15/2028 | | | 21,033 | |
| | 73,914 | | | 6.00%, 09/15/2028 | | | 82,637 | |
| | 115,501 | | | 6.00%, 10/15/2028 | | | 128,642 | |
| | 172,398 | | | 6.00%, 11/15/2028 | | | 192,744 | |
| | 129,099 | | | 6.00%, 12/15/2028 | | | 144,333 | |
| | 3,362 | | | 6.00%, 12/15/2031 | | | 3,843 | |
| | 29,801 | | | 6.00%, 09/15/2032 | | | 34,258 | |
| | 9,682 | | | 6.00%, 11/15/2032 | | | 10,961 | |
| | 2,053 | | | 6.00%, 04/15/2033 | | | 2,295 | |
| | 95,898 | | | 6.00%, 06/15/2033 | | | 108,037 | |
| | 39,975 | | | 6.00%, 10/15/2033 | | | 45,174 | |
| | 5,071 | | | 6.00%, 11/15/2033 | | | 5,723 | |
| | 81,726 | | | 6.00%, 10/15/2034 | | | 92,065 | |
| | 60,210 | | | 6.00%, 01/15/2035 | | | 67,316 | |
| | 7,640 | | | 6.00%, 05/15/2035 | | | 8,542 | |
| | 11,852 | | | 6.00%, 06/15/2035 | | | 13,251 | |
| | 926 | | | 6.50%, 03/15/2026 | | | 1,027 | |
| | 5,046 | | | 6.50%, 01/15/2028 | | | 5,598 | |
| | 65,525 | | | 6.50%, 03/15/2028 | | | 72,695 | |
| | 121,054 | | | 6.50%, 04/15/2028 | | | 134,299 | |
| | 38,271 | | | 6.50%, 05/15/2028 | | | 42,459 | |
| | 193,913 | | | 6.50%, 06/15/2028 | | | 215,129 | |
| | 7,142 | | | 6.50%, 10/15/2028 | | | 7,924 | |
| | 3,486 | | | 6.50%, 02/15/2035 | | | 3,982 | |
| | 22,035 | | | 7.00%, 11/15/2031 | | | 24,764 | |
| | 10,720 | | | 7.00%, 03/15/2032 | | | 12,076 | |
| | 1,332,454 | | | 7.00%, 11/15/2032 | | | 1,573,336 | |
| | 185,733 | | | 7.00%, 01/15/2033 | | | 216,005 | |
| | 201,050 | | | 7.00%, 05/15/2033 | | | 233,117 | |
| | 37,706 | | | 7.00%, 07/15/2033 | | | 43,228 | |
| | 238,711 | | | 7.00%, 11/15/2033 | | | 277,031 | |
| | 96,112 | | | 7.50%, 09/16/2035 | | | 111,041 | |
| | 187 | | | 8.00%, 09/15/2026 | | | 203 | |
| | 125 | | | 8.00%, 11/15/2026 | | | 137 | |
| | 11,049 | | | 8.00%, 12/15/2026 | | | 12,680 | |
| | 150 | | | 8.00%, 09/15/2027 | | | 156 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 0.5% - (continued) | |
| | | | GNMA - 0.2% - (continued) | | | |
| $ | 7,300 | | | 8.00%, 07/15/2029 | | $ | 8,540 | |
| | 3,250 | | | 8.00%, 11/15/2029 | | | 3,260 | |
| | 17,285 | | | 8.00%, 12/15/2029 | | | 18,083 | |
| | 4,313 | | | 8.00%, 01/15/2030 | | | 4,436 | |
| | 6,232 | | | 8.00%, 02/15/2030 | | | 6,400 | |
| | 927 | | | 8.00%, 03/15/2030 | | | 941 | |
| | 54,380 | | | 8.00%, 04/15/2030 | | | 55,032 | |
| | 5,668 | | | 8.00%, 05/15/2030 | | | 5,886 | |
| | 44,652 | | | 8.00%, 06/15/2030 | | | 46,959 | |
| | 2,395 | | | 8.00%, 07/15/2030 | | | 2,504 | |
| | 72,451 | | | 8.00%, 08/15/2030 | | | 74,395 | |
| | 16,399 | | | 8.00%, 09/15/2030 | | | 16,852 | |
| | 8,991 | | | 8.00%, 11/15/2030 | | | 9,182 | |
| | 144,628 | | | 8.00%, 12/15/2030 | | | 158,399 | |
| | 263 | | | 8.00%, 02/15/2031 | | | 274 | |
| | 5,722 | | | 9.00%, 06/15/2022 | | | 5,794 | |
| | | | | | | | |
| | | | | | | 4,764,100 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $10,047,197) | | $ | 10,541,749 | |
| | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 7.6% | |
| | | | U.S. Treasury Securities - 7.6% | | | |
| | | | U.S. Treasury Bonds - 3.5% | | | |
| | 19,450,000 | | | 2.50%, 02/15/2045(10) | | $ | 18,542,080 | |
| | 2,780,000 | | | 2.50%, 05/15/2046 | | | 2,644,475 | |
| | 5,720,000 | | | 2.75%, 08/15/2047 | | | 5,727,150 | |
| | 860,000 | | | 2.75%, 11/15/2047 | | | 861,411 | |
| | 10,450,800 | | | 2.88%, 05/15/2043 | | | 10,745,954 | |
| | 1,080,000 | | | 3.00%, 02/15/2047 | | | 1,135,814 | |
| | 2,280,000 | | | 3.00%, 05/15/2047 | | | 2,397,117 | |
| | 8,195,000 | | | 3.13%, 08/15/2044 | | | 8,808,024 | |
| | 4,630,000 | | | 3.38%, 05/15/2044 | | | 5,195,547 | |
| | 21,300,000 | | | 4.38%, 02/15/2038 | | | 27,228,223 | |
| | | | | | | | |
| | | | | | | 83,285,795 | |
| | | | | | | | |
| | | | U.S. Treasury Notes - 4.1% | | | |
| | 22,797,174 | | | 0.38%, 01/15/2027(11) | | | 22,632,905 | |
| | 5,815,000 | | | 1.25%, 03/31/2021 | | | 5,671,442 | |
| | 550,000 | | | 1.38%, 09/30/2020 | | | 541,621 | |
| | 5,570,000 | | | 1.38%, 01/31/2021 | | | 5,463,822 | |
| | 1,600,000 | | | 1.50%, 05/15/2020 | | | 1,584,688 | |
| | 40,920,000 | | | 1.50%, 03/31/2023 | | | 39,449,437 | |
| | 5,985,000 | | | 1.75%, 09/30/2019 | | | 5,971,440 | |
| | 1,100,000 | | | 1.75%, 06/30/2022 | | | 1,080,105 | |
| | 2,000,000 | | | 1.88%, 04/30/2022 | | | 1,976,094 | |
| | 9,090,000 | | | 2.25%, 08/15/2027 | | | 8,962,172 | |
| | 3,630,000 | | | 2.38%, 05/15/2027 | | | 3,619,649 | |
| | | | | | | | |
| | | | | | | 96,953,375 | |
| | | | | | | | |
| | | | | | | 180,239,170 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $173,820,495) | | $ | 180,239,170 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,839,641,025) | | $ | 2,361,245,123 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.3% | | | |
| | | | Other Investment Pools & Funds - 0.3% | | | |
| $ | 7,489,620 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(12) | | $ | 7,489,620 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $7,489,620) | | $ | 7,489,620 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,847,130,645) | | | 99.8 | % | | $ | 2,368,734,743 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 4,246,295 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,372,981,038 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $187,362,105, which represented 7.9% of total net assets. |
| (2) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $5,636,474, which represents 0.2% of total net assets. |
| (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 December 31, 2017, the aggregate fair value of these securities was $5,636,474, which represented 0.2% 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) | Investment valued using significant unobservable inputs. |
| (5) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2017. |
| (6) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (7) | Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (8) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (9) | Represents or includes a TBA transaction. |
| (10) | This security, or a portion of this security, has been pledged as collateral in connection with futures contracts. |
| (11) | The principal amount for this security is adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (12) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2017 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
Short position contracts: | |
U.S. Treasury 10-Year Note Future | | | 218 | | | | 03/20/2018 | | | $ | 27,042,219 | | | $ | 188,302 | |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | 188,302 | |
| | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
CLO | | Collateralized Loan Obligation |
CMO | | Collateralized Mortgage Obligation |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
GNMA | | Government National Mortgage Association |
LIBOR | | London Interbank Offered Rate |
REIT | | Real Estate Investment Trust |
TBA | | To Be Announced |
| | |
| Municipal Abbreviations: |
DA | | Development Authority |
FA | | Finance Authority |
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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 170,359,442 | | | $ | 170,359,442 | | | $ | — | | | $ | — | |
Capital Goods | | | 115,122,699 | | | | 115,122,699 | | | | — | | | | — | |
Commercial & Professional Services | | | 28,905,200 | | | | 28,905,200 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 34,041,136 | | | | 34,041,136 | | | | — | | | | — | |
Consumer Services | | | 33,413,000 | | | | 33,413,000 | | | | — | | | | — | |
Diversified Financials | | | 36,358,393 | | | | 36,358,393 | | | | — | | | | — | |
Energy | | | 101,998,513 | | | | 101,998,513 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 71,856,583 | | | | 51,020,333 | | | | 20,836,250 | | | | — | |
Health Care Equipment & Services | | | 80,495,380 | | | | 80,495,380 | | | | — | | | | — | |
Household & Personal Products | | | 15,048,704 | | | | 15,048,704 | | | | — | | | | — | |
Insurance | | | 69,342,179 | | | | 69,342,179 | | | | — | | | | — | |
Materials | | | 51,835,097 | | | | 51,835,097 | | | | — | | | | — | |
Media | | | 49,099,909 | | | | 49,099,909 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 146,053,475 | | | | 118,255,911 | | | | 27,797,564 | | | | — | |
Real Estate | | | 18,588,140 | | | | 18,588,140 | | | | — | | | | — | |
Retailing | | | 83,196,233 | | | | 77,559,759 | | | | — | | | | 5,636,474 | |
Semiconductors & Semiconductor Equipment | | | 100,192,449 | | | | 100,192,449 | | | | — | | | | — | |
Software & Services | | | 207,779,399 | | | | 207,779,399 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 103,618,419 | | | | 103,618,419 | | | | — | | | | — | |
Transportation | | | 28,229,391 | | | | 28,229,391 | | | | — | | | | — | |
Utilities | | | 37,487,162 | | | | 37,487,162 | | | | — | | | | — | |
Asset & Commercial Mortgage Backed Securities | | | 94,772,258 | | | | — | | | | 94,772,258 | | | | — | |
Corporate Bonds | | | 442,322,882 | | | | — | | | | 442,322,882 | | | | — | |
Foreign Government Obligations | | | 14,403,291 | | | | — | | | | 14,403,291 | | | | — | |
Municipal Bonds | | | 35,944,870 | | | | — | | | | 35,944,870 | | | | — | |
U.S. Government Agencies | | | 10,541,749 | | | | — | | | | 10,541,749 | | | | — | |
U.S. Government Securities | | | 180,239,170 | | | | — | | | | 180,239,170 | | | | — | |
Short-Term Investments | | | 7,489,620 | | | | 7,489,620 | | | | — | | | | — | |
Futures Contracts(2) | | | 188,302 | | | | 188,302 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,368,923,045 | | | $ | 1,536,428,537 | | | $ | 826,858,034 | | | $ | 5,636,474 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the period ended December 31, 2017 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% | |
| | | | Automobiles & Components - 2.2% | |
| | 1,156,175 | | | General Motors Co. | | $ | 47,391,613 | |
| | 919,024 | | | Goodyear Tire & Rubber Co. | | | 29,693,666 | |
| | 137,833 | | | Magna International, Inc. | | | 7,811,633 | |
| | 519,800 | | | Tata Motors Ltd. ADR* | | | 17,189,786 | |
| | 152,850 | | | Valeo S.A. | | | 11,385,914 | |
| | | | | | | | |
| | | | | | | 113,472,612 | |
| | | | | | | | |
| | | | Banks - 6.8% | |
| | 3,103,439 | | | Banco Santander S.A. | | | 20,346,863 | |
| | 508,228 | | | Bank of America Corp. | | | 15,002,890 | |
| | 242,100 | | | Bank of the Ozarks, Inc. | | | 11,729,745 | |
| | 123,387 | | | BB&T Corp. | | | 6,134,802 | |
| | 2,555,500 | | | China Merchants Bank Co., Ltd. Class H | | | 10,117,384 | |
| | 1,139,300 | | | Citigroup, Inc. | | | 84,775,313 | |
| | 2,162,996 | | | ICICI Bank Ltd. ADR | | | 21,045,951 | |
| | 2,110,796 | | | Itau Unibanco Holding S.A. ADR | | | 27,440,348 | |
| | 55,871 | | | JP Morgan Chase & Co. | | | 5,974,845 | |
| | 443,539 | | | KeyCorp | | | 8,946,182 | |
| | 390,766 | | | People’s United Financial, Inc. | | | 7,307,324 | |
| | 540,755 | | | PNC Financial Services Group, Inc. | | | 78,025,539 | |
| | 210,594 | | | SunTrust Banks, Inc. | | | 13,602,266 | |
| | 432,058 | | | UniCredit S.p.A.* | | | 8,059,708 | |
| | 385,776 | | | Wells Fargo & Co. | | | 23,405,030 | |
| | | | | | | | |
| | | | | | | 341,914,190 | |
| | | | | | | | |
| | | | Capital Goods - 4.0% | |
| | 650,010 | | | AerCap Holdings N.V.* | | | 34,197,026 | |
| | 144,280 | | | Airbus SE | | | 14,339,516 | |
| | 137,676 | | | Cie de Saint-Gobain | | | 7,577,167 | |
| | 48,857 | | | Deere & Co. | | | 7,646,609 | |
| | 143,993 | | | Eaton Corp. plc | | | 11,376,887 | |
| | 114,862 | | | Emerson Electric Co. | | | 8,004,733 | |
| | 44,612 | | | General Dynamics Corp. | | | 9,076,311 | |
| | 52,178 | | | Harris Corp. | | | 7,391,014 | |
| | 350,600 | | | Harry’s, Inc.*(1)(2)(3)(4) | | | 4,733,100 | |
| | 75,773 | | | IDEX Corp. | | | 9,999,763 | |
| | 119,668 | | | Ingersoll-Rand plc | | | 10,673,189 | |
| | 319,400 | | | Komatsu Ltd. | | | 11,543,024 | |
| | 48,371 | | | L3 Technologies, Inc. | | | 9,570,202 | |
| | 57,443 | | | Lockheed Martin Corp. | | | 18,442,075 | |
| | 46,650 | | | Middleby Corp.* | | | 6,295,418 | |
| | 41,629 | | | Rockwell Automation, Inc. | | | 8,173,854 | |
| | 914,530 | | | Sanwa Holdings Corp. | | | 12,567,907 | |
| | 132,406 | | | Xylem, Inc. | | | 9,030,089 | |
| | | | | | | | |
| | | | | | | 200,637,884 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 2.2% | |
| | 85,391 | | | Dun & Bradstreet Corp. | | | 10,111,148 | |
| | 77,158 | | | Equifax, Inc. | | | 9,098,471 | |
| | 360,344 | | | Herman Miller, Inc. | | | 14,431,777 | |
| | 220,711 | | | IHS Markit Ltd.* | | | 9,965,102 | |
| | 215,565 | | | Republic Services, Inc. | | | 14,574,350 | |
| | 1,008,192 | | | Steelcase, Inc. Class A | | | 15,324,518 | |
| | 443,761 | | | TransUnion* | | | 24,389,105 | |
| | 155,022 | | | Waste Connections, Inc. | | | 10,997,261 | |
| | | | | | | | |
| | | | | | | 108,891,732 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.1% | |
| | 39,057,860 | | | Global Brands Group Holding Ltd.* | | | 3,194,567 | |
| | 1,087,852 | | | NIKE, Inc. Class B | | | 68,045,143 | |
| | 127,917 | | | One Kings Lane, Inc. Escrow*(3)(4) | | | 31,979 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Consumer Durables & Apparel - 2.1% - (continued) | |
| | 362,545 | | | Tapestry, Inc. | | $ | 16,035,365 | |
| | 1,188,463 | | | Under Armour, Inc. Class A* | | | 17,149,521 | |
| | 273,749 | | | Under Armour, Inc. Class C* | | | 3,646,337 | |
| | | | | | | | |
| | | | | | | 108,102,912 | |
| | | | | | | | |
| | | | Consumer Services - 3.2% | |
| | 133,230 | | | Dave & Buster’s Entertainment, Inc.* | | | 7,350,299 | |
| | 514,432 | | | DraftKings, Inc.*(1)(2)(3)(4) | | | 730,493 | |
| | 318,928 | | | Hilton Worldwide Holdings, Inc. | | | 25,469,590 | |
| | 223,936 | | | Las Vegas Sands Corp. | | | 15,561,313 | |
| | 61,175 | | | Marriott Vacations Worldwide Corp. | | | 8,271,472 | |
| | 133,420 | | | McDonald’s Corp. | | | 22,964,250 | |
| | 519,907 | | | Melco Resorts & Entertainment Ltd. ADR | | | 15,098,099 | |
| | 120,768 | | | New Oriental Education & Technology Group, Inc. ADR | | | 11,352,192 | |
| | 150,692 | | | Planet Fitness, Inc. Class A* | | | 5,218,464 | |
| | 63,653 | | | Royal Caribbean Cruises Ltd. | | | 7,592,530 | |
| | 165,995 | | | Wynn Resorts Ltd. | | | 27,985,097 | |
| | 175,721 | | | Yum! Brands, Inc. | | | 14,340,591 | |
| | | | | | | | |
| | | | | | | 161,934,390 | |
| | | | | | | | |
| | | | Diversified Financials - 3.8% | |
| | 547,539 | | | American Express Co. | | | 54,376,098 | |
| | 62,329 | | | BlackRock, Inc. | | | 32,019,031 | |
| | 572,569 | | | Blackstone Group L.P. | | | 18,333,659 | |
| | 90,990 | | | Capital One Financial Corp. | | | 9,060,784 | |
| | 194,088 | | | Deutsche Bank AG | | | 3,670,975 | |
| | 179,467 | | | Intercontinental Exchange, Inc. | | | 12,663,191 | |
| | 819,913 | | | SLM Corp.* | | | 9,265,017 | |
| | 678,736 | | | TD Ameritrade Holding Corp. | | | 34,703,772 | |
| | 892,079 | | | UBS Group AG* | | | 16,389,948 | |
| | | | | | | | |
| | | | | | | 190,482,475 | |
| | | | | | | | |
| | | | Energy - 3.9% | |
| | 415,197 | | | Anadarko Petroleum Corp. | | | 22,271,167 | |
| | 109,953 | | | Baker Hughes a GE Co. | | | 3,478,913 | |
| | 1,444,832 | | | Callon Petroleum Co.* | | | 17,554,709 | |
| | 451,376 | | | Canadian Natural Resources Ltd. | | | 16,123,151 | |
| | 141,722 | | | Cimarex Energy Co. | | | 17,291,501 | |
| | 89,296 | | | Diamondback Energy, Inc.* | | | 11,273,620 | |
| | 456,323 | | | Halliburton Co. | | | 22,300,505 | |
| | 156,575 | | | Hess Corp. | | | 7,432,615 | |
| | 175,876 | | | HollyFrontier Corp. | | | 9,008,369 | |
| | 685,527 | | | Kinder Morgan, Inc. | | | 12,387,473 | |
| | 992,295 | | | Laredo Petroleum, Inc.* | | | 10,528,250 | |
| | 642,224 | | | Marathon Oil Corp. | | | 10,872,852 | |
| | 817,304 | | | Newfield Exploration Co.* | | | 25,769,595 | |
| | 305,500 | | | Tenaris S.A. ADR | | | 9,733,230 | |
| | | | | | | | |
| | | | | | | 196,025,950 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.7% | |
| | 158,710 | | | Costco Wholesale Corp. | | | 29,539,105 | |
| | 1,052,725 | | | Kroger Co. | | | 28,897,301 | |
| | 215,645 | | | Seven & i Holdings Co., Ltd. | | | 8,933,396 | |
| | 259,623 | | | Walgreens Boots Alliance, Inc. | | | 18,853,822 | |
| | | | | | | | |
| | | | | | | 86,223,624 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.1% | |
| | 264,914 | | | Altria Group, Inc. | | | 18,917,509 | |
| | 270,626 | | | Blue Buffalo Pet Products, Inc.* | | | 8,873,827 | |
| | 333,150 | | | British American Tobacco plc | | | 22,520,542 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Food, Beverage & Tobacco - 3.1% - (continued) | |
| | 178,977 | | | Campbell Soup Co. | | $ | 8,610,583 | |
| | 580,389 | | | Coca-Cola Co. | | | 26,628,247 | |
| | 1,056,435 | | | Diageo plc | | | 38,722,966 | |
| | 63,106 | | | Hershey Co. | | | 7,163,162 | |
| | 45,395 | | | Hostess Brands, Inc.* | | | 672,300 | |
| | 410,190 | | | Monster Beverage Corp.* | | | 25,960,925 | |
| | | | | | | | |
| | | | | | | 158,070,061 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 6.2% | |
| | 41,421 | | | Align Technology, Inc.* | | | 9,203,332 | |
| | 247,596 | | | AMN Healthcare Services, Inc.* | | | 12,194,103 | |
| | 477,715 | | | Baxter International, Inc. | | | 30,879,498 | |
| | 73,793 | | | Becton Dickinson and Co. | | | 15,796,130 | |
| | 442,846 | | | Cardinal Health, Inc. | | | 27,133,174 | |
| | 148,320 | | | Danaher Corp. | | | 13,767,062 | |
| | 127,621 | | | DexCom, Inc.* | | | 7,324,169 | |
| | 72,689 | | | Edwards Lifesciences Corp.* | | | 8,192,777 | |
| | 292,570 | | | Envision Healthcare Corp.* | | | 10,111,219 | |
| | 187,299 | | | Hologic, Inc.* | | | 8,007,032 | |
| | 124,507 | | | Insulet Corp.* | | | 8,590,983 | |
| | 11,506 | | | Intuitive Surgical, Inc.* | | | 4,199,000 | |
| | 324,961 | | | McKesson Corp. | | | 50,677,668 | |
| | 442,188 | | | Medtronic plc | | | 35,706,681 | |
| | 90,687 | | | STERIS plc | | | 7,932,392 | |
| | 96,676 | | | Stryker Corp. | | | 14,969,312 | |
| | 46,933 | | | Teleflex, Inc. | | | 11,677,869 | |
| | 155,278 | | | UnitedHealth Group, Inc. | | | 34,232,588 | |
| | 77,839 | | | Veeva Systems, Inc. Class A* | | | 4,302,940 | |
| | | | | | | | |
| | | | | | | 314,897,929 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.9% | |
| | 430,141 | | | Colgate-Palmolive Co. | | | 32,454,138 | |
| | 754,456 | | | Coty, Inc. Class A | | | 15,006,130 | |
| | | | | | | | |
| | | | | | | 47,460,268 | |
| | | | | | | | |
| | | | Insurance - 6.1% | |
| | 143,557 | | | Aflac, Inc. | | | 12,601,433 | |
| | 402,423 | | | American International Group, Inc. | | | 23,976,362 | |
| | 369,753 | | | Arthur J Gallagher & Co. | | | 23,397,970 | |
| | 482,199 | | | AXA S.A. | | | 14,289,109 | |
| | 453,506 | | | Chubb Ltd. | | | 66,270,832 | |
| | 169,599 | | | FNF Group | | | 6,655,065 | |
| | 654,323 | | | Lancashire Holdings Ltd. | | | 6,018,770 | |
| | 108,683 | | | Lincoln National Corp. | | | 8,354,462 | |
| | 323,664 | | | Marsh & McLennan Cos., Inc. | | | 26,343,013 | |
| | 823,059 | | | MetLife, Inc. | | | 41,613,863 | |
| | 924,000 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 9,583,792 | |
| | 136,260 | | | Principal Financial Group, Inc. | | | 9,614,506 | |
| | 157,800 | | | RenaissanceRe Holdings Ltd. | | | 19,818,102 | |
| | 338,500 | | | Tokio Marine Holdings, Inc. | | | 15,396,007 | |
| | 153,937 | | | Unum Group | | | 8,449,602 | |
| | 513,049 | | | XL Group Ltd. | | | 18,038,803 | |
| | | | | | | | |
| | | | | | | 310,421,691 | |
| | | | | | | | |
| | | | Materials - 4.7% | |
| | 727,117 | | | ArcelorMittal* | | | 23,493,150 | |
| | 325,754 | | | Ball Corp. | | | 12,329,789 | |
| | 140,700 | | | Cabot Corp. | | | 8,665,713 | |
| | 254,819 | | | Celanese Corp. Series A | | | 27,286,019 | |
| | 788,800 | | | Cemex S.A.B. de C.V. ADR* | | | 5,916,000 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Materials - 4.7% - (continued) | |
| | 411,096 | | | CRH plc | | $ | 14,754,239 | |
| | 98,250 | | | Eastman Chemical Co. | | | 9,101,880 | |
| | 6,344,637 | | | Glencore plc* | | | 33,207,591 | |
| | 129,635 | | | International Paper Co. | | | 7,511,052 | |
| | 120,907 | | | Nucor Corp. | | | 7,687,267 | |
| | 183,626 | | | Packaging Corp. of America | | | 22,136,114 | |
| | 153,004 | | | PPG Industries, Inc. | | | 17,873,927 | |
| | 120,197 | | | Praxair, Inc. | | | 18,592,072 | |
| | 344,417 | | | Reliance Steel & Aluminum Co. | | | 29,547,534 | |
| | | | | | | | |
| | | | | | | 238,102,347 | |
| | | | | | | | |
| | | | Media - 0.1% | |
| | 423,196 | | | SES S.A. | | | 6,606,106 | |
| | 29,800 | | | Weinstein Co. LLC*(1)(2)(3)(4) | | | — | |
| | | | | | | | |
| | | | | | | 6,606,106 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.2% | |
| | 233,621 | | | Agilent Technologies, Inc. | | | 15,645,598 | |
| | 313,303 | | | Alkermes plc* | | | 17,147,073 | |
| | 87,280 | | | Allergan plc | | | 14,277,262 | |
| | 110,359 | | | Alnylam Pharmaceuticals, Inc.* | | | 14,021,111 | |
| | 98,046 | | | BeiGene Ltd. ADR* | | | 9,581,055 | |
| | 37,763 | | | Biogen, Inc.* | | | 12,030,159 | |
| | 1,500,440 | | | Bristol-Myers Squibb Co. | | | 91,946,963 | |
| | 111,360 | | | Eisai Co., Ltd. | | | 6,326,314 | |
| | 235,682 | | | Exact Sciences Corp.* | | | 12,382,732 | |
| | 453,082 | | | Ionis Pharmaceuticals, Inc.* | | | 22,790,025 | |
| | 120,864 | | | Johnson & Johnson | | | 16,887,118 | |
| | 317,395 | | | Merck & Co., Inc. | | | 17,859,817 | |
| | 25,192 | | | Mettler-Toledo International, Inc.* | | | 15,606,948 | |
| | 542,330 | | | Mylan N.V.* | | | 22,945,982 | |
| | 476,250 | | | Pfizer, Inc. | | | 17,249,775 | |
| | 16,395 | | | Regeneron Pharmaceuticals, Inc.* | | | 6,163,864 | |
| | 23,765 | | | TESARO, Inc.* | | | 1,969,406 | |
| | 1,627,599 | | | Teva Pharmaceutical Industries Ltd. ADR | | | 30,843,001 | |
| | 70,810 | | | Thermo Fisher Scientific, Inc. | | | 13,445,403 | |
| | 23,230 | | | Vertex Pharmaceuticals, Inc.* | | | 3,481,248 | |
| | | | | | | | |
| | | | | | | 362,600,854 | |
| | | | | | | | |
| | | | Real Estate - 3.3% | |
| | 67,447 | | | American Tower Corp. REIT | | | 9,622,663 | |
| | 67,944 | | | AvalonBay Communities, Inc. REIT | | | 12,121,889 | |
| | 221,561 | | | CBRE Group, Inc. Class A, REIT* | | | 9,595,807 | |
| | 518,400 | | | Education Realty Trust, Inc. REIT | | | 18,102,528 | |
| | 965,316 | | | Host Hotels & Resorts, Inc. REIT | | | 19,161,523 | |
| | 179,573 | | | Public Storage REIT | | | 37,530,757 | |
| | 177,020 | | | Simon Property Group, Inc. REIT | | | 30,401,415 | |
| | 822,066 | | | STORE Capital Corp. REIT | | | 21,406,599 | |
| | 152,538 | | | Welltower, Inc. REIT | | | 9,727,348 | |
| | | | | | | | |
| | | | | | | 167,670,529 | |
| | | | | | | | |
| | | | Retailing - 4.6% | |
| | 8,451,700 | | | Allstar Co.*(1)(2)(3)(4) | | | 1,690,340 | |
| | 88,900 | | | Best Buy Co., Inc. | | | 6,086,983 | |
| | 243,104 | | | CarMax, Inc.* | | | 15,590,260 | |
| | 153,460 | | | Ctrip.com International Ltd. ADR* | | | 6,767,586 | |
| | 145,935 | | | Dollar Tree, Inc.* | | | 15,660,285 | |
| | 224,543 | | | Expedia, Inc. | | | 26,893,515 | |
| | 82,249 | | | Genuine Parts Co. | | | 7,814,477 | |
| | 102,991 | | | Home Depot, Inc. | | | 19,519,884 | |
| | 17,385 | | | Honest Co.*(1)(2)(3)(4) | | | 307,367 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Retailing - 4.6% - (continued) | |
| | 958,800 | | | Macy’s, Inc. | | $ | 24,152,172 | |
| | 84,135 | | | Netflix, Inc.* | | | 16,150,555 | |
| | 15,159 | | | Priceline Group, Inc.* | | | 26,342,401 | |
| | 157,749 | | | Ross Stores, Inc. | | | 12,659,357 | |
| | 516,386 | | | TJX Cos., Inc. | | | 39,482,874 | |
| | 115,140 | | | Tory Burch LLC*(1)(2)(3)(4) | | | 5,663,721 | |
| | 94,671 | | | Wayfair, Inc. Class A* | | | 7,599,241 | |
| | | | | | | | |
| | | | | | | 232,381,018 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.2% | |
| | 810,300 | | | Advanced Micro Devices, Inc.* | | | 8,329,884 | |
| | 55,129 | | | Broadcom Ltd. | | | 14,162,640 | |
| | 33,048 | | | Cavium, Inc.* | | | 2,770,414 | |
| | 413,027 | | | KLA-Tencor Corp. | | | 43,396,747 | |
| | 954,671 | | | Marvell Technology Group Ltd. | | | 20,496,786 | |
| | 172,116 | | | Microchip Technology, Inc. | | | 15,125,554 | |
| | 990,413 | | | Micron Technology, Inc.* | | | 40,725,783 | |
| | 124,252 | | | NVIDIA Corp. | | | 24,042,762 | |
| | 624,194 | | | QUALCOMM, Inc. | | | 39,960,900 | |
| | 178,641 | | | Silicon Motion Technology Corp. ADR | | | 9,460,827 | |
| | 1,649,190 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 12,627,967 | |
| | 344,600 | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 13,663,390 | |
| | 410,754 | | | Teradyne, Inc. | | | 17,198,270 | |
| | | | | | | | |
| | | | | | | 261,961,924 | |
| | | | | | | | |
| | | | Software & Services - 14.0% | |
| | 217,752 | | | Accenture plc Class A | | | 33,335,654 | |
| | 109,555 | | | Adobe Systems, Inc.* | | | 19,198,418 | |
| | 252,440 | | | Alibaba Group Holding Ltd. ADR* | | | 43,528,229 | |
| | 73,334 | | | Alphabet, Inc. Class C* | | | 76,736,698 | |
| | 187,529 | | | Amdocs Ltd. | | | 12,279,399 | |
| | 302,067 | | | Atlassian Corp. plc Class A* | | | 13,750,090 | |
| | 113,556 | | | CoStar Group, Inc.* | | | 33,720,454 | |
| | 234,719 | | | Delivery Hero AG*(2) | | | 9,293,705 | |
| | 118,276 | | | Dropbox, Inc. Class B*(1)(2)(3)(4) | | | 1,563,609 | |
| | 495,799 | | | Facebook, Inc. Class A* | | | 87,488,692 | |
| | 102,724 | | | FleetCor Technologies, Inc.* | | | 19,767,179 | |
| | 1,055,951 | | | Genpact Ltd. | | | 33,515,885 | |
| | 320,645 | | | Global Payments, Inc. | | | 32,141,455 | |
| | 167,674 | | | GoDaddy, Inc. Class A* | | | 8,430,649 | |
| | 191,309 | | | Guidewire Software, Inc.* | | | 14,206,606 | |
| | 1,072,383 | | | Just Eat plc* | | | 11,279,572 | |
| | 585,927 | | | Microsoft Corp. | | | 50,120,196 | |
| | 243,002 | | | PayPal Holdings, Inc.* | | | 17,889,807 | |
| | 336,117 | | | Salesforce.com, Inc.* | | | 34,361,241 | |
| | 362,559 | | | ServiceNow, Inc.* | | | 47,274,068 | |
| | 157,918 | | | VeriSign, Inc.* | | | 18,072,136 | |
| | 239,576 | | | Visa, Inc. Class A | | | 27,316,455 | |
| | 191,480 | | | Workday, Inc. Class A* | | | 19,481,175 | |
| | 561,855 | | | Yandex N.V. Class A* | | | 18,400,751 | |
| | 414,509 | | | Zillow Group, Inc. Class A* | | | 16,887,097 | |
| | 161,746 | | | Zillow Group, Inc. Class C* | | | 6,618,646 | |
| | | | | | | | |
| | | | | | | 706,657,866 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.5% | |
| | 245,393 | | | Acacia Communications, Inc.* | | | 8,890,588 | |
| | 124,126 | | | Apple, Inc. | | | 21,005,843 | |
| | 53,111 | | | Arista Networks, Inc.* | | | 12,511,889 | |
| | 250,621 | | | CDW Corp. | | | 17,415,653 | |
| | 2,564,880 | | | Flex Ltd.* | | | 46,142,191 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Technology Hardware & Equipment - 3.5% - (continued) | |
| | 13,400 | | | IPG Photonics Corp.* | | $ | 2,869,342 | |
| | 306,571 | | | Keysight Technologies, Inc.* | | | 12,753,354 | |
| | 5,148 | | | Samsung Electronics Co., Ltd. | | | 12,231,187 | |
| | 166,897 | | | TE Connectivity Ltd. | | | 15,861,891 | |
| | 23,799 | | | Universal Display Corp. | | | 4,108,897 | |
| | 276,047 | | | Western Digital Corp. | | | 21,954,018 | |
| | | | | | | | |
| | | | | | | 175,744,853 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.4% | |
| | 508,429 | | | AT&T, Inc. | | | 19,767,720 | |
| | 183,400 | | | Nippon Telegraph & Telephone Corp. | | | 8,622,381 | |
| | 194,600 | | | SoftBank Group Corp. | | | 15,406,593 | |
| | 466,067 | | | Verizon Communications, Inc. | | | 24,668,926 | |
| | | | | | | | |
| | | | | | | 68,465,620 | |
| | | | | | | | |
| | | | Transportation - 4.7% | |
| | 223,047 | | | Alaska Air Group, Inc. | | | 16,396,185 | |
| | 548,513 | | | Canadian National Railway Co. | | | 45,229,413 | |
| | 167,321 | | | CSX Corp. | | | 9,204,328 | |
| | 463,086 | | | Delta Air Lines, Inc. | | | 25,932,816 | |
| | 235,916 | | | Genesee & Wyoming, Inc. Class A* | | | 18,573,667 | |
| | 639,944 | | | JetBlue Airways Corp.* | | | 14,296,349 | |
| | 449,078 | | | Knight-Swift Transportation Holdings, Inc. | | | 19,633,690 | |
| | 266,837 | | | Union Pacific Corp. | | | 35,782,842 | |
| | 127,725 | | | United Continental Holdings, Inc.* | | | 8,608,665 | |
| | 377,741 | | | United Parcel Service, Inc. Class B | | | 45,007,840 | |
| | | | | | | | |
| | | | | | | 238,665,795 | |
| | | | | | | | |
| | | | Utilities - 2.4% | |
| | 107,780 | | | Dominion Energy, Inc. | | | 8,736,647 | |
| | 259,008 | | | Edison International | | | 16,379,666 | |
| | 536,941 | | | Exelon Corp. | | | 21,160,845 | |
| | 2,729,057 | | | Iberdrola S.A. | | | 21,126,401 | |
| | 456,643 | | | NRG Energy, Inc. | | | 13,005,193 | |
| | 390,547 | | | OGE Energy Corp. | | | 12,852,902 | |
| | 113,036 | | | Sempra Energy | | | 12,085,809 | |
| | 298,538 | | | Southern Co. | | | 14,356,692 | |
| | | | | | | | |
| | | | | | | 119,704,155 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $4,283,730,001) | | $ | 4,917,096,785 | |
| | | | | | | | |
|
| PREFERRED STOCKS - 0.9% | |
| | | | Consumer Services - 0.0% | |
| | 16,619 | | | Airbnb, Inc. Series E*(1)(2)(3)(4) | | $ | 1,744,995 | |
| | | | | | | | |
| | | | Diversified Financials - 0.0% | |
| | 85,350 | | | Social Finance, Inc. Series F*(1)(2)(3)(4) | | | 1,428,759 | |
| | | | | | | | |
| | | | Software & Services - 0.9% | |
| | 29,504 | | | Magic Leap, Inc. Series C*(1)(2)(3)(4) | | | 796,608 | |
| | 50,200 | | | Nanigans, Inc. Series D*(1)(2)(3)(4) | | | 282,626 | |
| | 793,410 | | | Pinterest, Inc. Series G*(1)(2)(3)(4) | | | 5,323,781 | |
| | 20,891 | | | Sharecare Series B2*(1)(2)(3)(4) | | | 6,267,300 | |
| | 815,160 | | | Uber Technologies, Inc. Series D*(1)(2)(3)(4) | | | 28,612,116 | |
| | 293,655 | | | Zuora, Inc. Series F*(1)(2)(3)(4) | | | 1,565,181 | |
| | | | | | | | |
| | | | | | | 42,847,612 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $28,798,616) | | $ | 46,021,366 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CONVERTIBLE PREFERRED STOCKS - 0.0% | |
| | | | Retailing - 0.0% | |
| | 40,566 | | | Honest Co. Series C*(1)(2)(3)(4) | | $ | 1,238,075 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $1,097,607) | | $ | 1,238,075 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $4,313,626,224) | | $ | 4,964,356,226 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.9% | |
| | | | Other Investment Pools & Funds - 1.9% | |
| | 95,621,311 | | | BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 1.17%(5) | | $ | 95,621,311 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $95,621,311) | | $ | 95,621,311 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $4,409,247,535) | | | 100.1 | % | | $ | 5,059,977,537 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (2,781,523 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 5,057,196,014 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $61,948,071, which represents 1.2% of total net assets. |
| (2) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $71,241,776, which represented 1.4% of total net assets. |
| (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 December 31, 2017, the aggregate fair value of these securities was $61,980,050, which represented 1.2% 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) | Investment valued using significant unobservable inputs. |
| (5) | Current yield as of period end. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2017 | |
Amount and Description
of Currency to be
Purchased | | | Amount and Description
of Currency to be
Sold | | | Counterparty | | | Settlement
Date | | | Appreciation | | | Depreciation | |
| | 12,889,375 | | | | USD | | | | 10,899,000 | | | | EUR | | | | MSC | | | | 03/21/18 | | | $ | — | | | $ | (252,380 | ) |
| | 9,254,433 | | | | USD | | | | 1,035,944,000 | | | | JPY | | | | CSFB | | | | 03/20/18 | | | | 22,177 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | | | | | | | | | | | | | | | | | | | | | | $ | 22,177 | | | $ | (252,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
CSFB | | Credit Suisse First Boston Corp. |
MSC | | Morgan Stanley |
|
| Currency Abbreviations: |
EUR | | Euro |
JPY | | Japanese Yen |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | |
Automobiles & Components | | $ | 113,472,612 | | | $ | 102,086,698 | | | $ | 11,385,914 | | | $ | — | |
Banks | | | 341,914,190 | | | | 303,390,235 | | | | 38,523,955 | | | | — | |
Capital Goods | | | 200,637,884 | | | | 149,877,170 | | | | 46,027,614 | | | | 4,733,100 | |
Commercial & Professional Services | | | 108,891,732 | | | | 108,891,732 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 108,102,912 | | | | 104,876,366 | | | | 3,194,567 | | | | 31,979 | |
Consumer Services | | | 161,934,390 | | | | 161,203,897 | | | | — | | | | 730,493 | |
Diversified Financials | | | 190,482,475 | | | | 170,421,552 | | | | 20,060,923 | | | | — | |
Energy | | | 196,025,950 | | | | 196,025,950 | | | | — | | | | — | |
Food & Staples Retailing | | | 86,223,624 | | | | 77,290,228 | | | | 8,933,396 | | | | — | |
Food, Beverage & Tobacco | | | 158,070,061 | | | | 96,826,553 | | | | 61,243,508 | | | | — | |
Health Care Equipment & Services | | | 314,897,929 | | | | 314,897,929 | | | | — | | | | — | |
Household & Personal Products | | | 47,460,268 | | | | 47,460,268 | | | | — | | | | — | |
Insurance | | | 310,421,691 | | | | 265,134,013 | | | | 45,287,678 | | | | — | |
Materials | | | 238,102,347 | | | | 190,140,517 | | | | 47,961,830 | | | | — | |
Media | | | 6,606,106 | | | | 6,606,106 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 362,600,854 | | | | 356,274,540 | | | | 6,326,314 | | | | — | |
Real Estate | | | 167,670,529 | | | | 167,670,529 | | | | — | | | | — | |
Retailing | | | 232,381,018 | | | | 224,719,590 | | | | — | | | | 7,661,428 | |
Semiconductors & Semiconductor Equipment | | | 261,961,924 | | | | 249,333,957 | | | | 12,627,967 | | | | — | |
Software & Services | | | 706,657,866 | | | | 693,814,685 | | | | 11,279,572 | | | | 1,563,609 | |
Technology Hardware & Equipment | | | 175,744,853 | | | | 163,513,666 | | | | 12,231,187 | | | | — | |
Telecommunication Services | | | 68,465,620 | | | | 44,436,646 | | | | 24,028,974 | | | | — | |
Transportation | | | 238,665,795 | | | | 238,665,795 | | | | — | | | | — | |
Utilities | | | 119,704,155 | | | | 98,577,754 | | | | 21,126,401 | | | | — | |
Preferred Stocks | | | 46,021,366 | | | | — | | | | — | | | | 46,021,366 | |
Convertible Preferred Stocks | | | 1,238,075 | | | | — | | | | — | | | | 1,238,075 | |
Short-Term Investments | | | 95,621,311 | | | | 95,621,311 | | | | — | | | | — | |
Foreign Currency Contracts(2) | | | 22,177 | | | | — | | | | 22,177 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 5,059,999,714 | | | $ | 4,627,757,687 | | | $ | 370,261,977 | | | $ | 61,980,050 | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Foreign Currency Contracts(2) | | $ | (252,380 | ) | | $ | — | | | $ | (252,380 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (252,380 | ) | | $ | — | | | $ | (252,380 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers from Level 1 to Level 2, investments valued at $16,182,523 were transferred from Level 2 to Level 1 due to the discontinuation of fair valuation factor and investments valued at $1,866,684 were transferred out of Level 3. |
| (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 year ended December 31, 2017:
| | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Convertible
Preferred
Stocks | | | Total | |
Beginning balance | | $ | 30,005,658 | | | $ | 61,440,948 | | | $ | 1,400,338 | | | $ | 92,846,944 | |
Conversions* | | | 1,368,575 | | | | (1,368,575 | ) | | | — | | | | — | |
Purchases | | | — | | | | — | | | | — | | | | — | |
Sales | | | (8,161,480 | ) | | | (4,484,299 | ) | | | — | | | | (12,645,779 | ) |
Total realized gain/(loss) | | | (5,402,826 | ) | | | (1,486,817 | ) | | | — | | | | (6,889,643 | ) |
Net change in unrealized appreciation/depreciation | | | (2,199,609 | ) | | | (7,102,916 | ) | | | (162,263 | ) | | | (9,464,788 | ) |
Transfers into Level 3 | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | (889,709 | ) | | | (976,975 | ) | | | — | | | | (1,866,684 | ) |
| | | | | | | | | | | | | | | | |
Ending balance | | $ | 14,720,609 | | | $ | 46,021,366 | | | $ | 1,238,075 | | | $ | 61,980,050 | |
| | | | | | | | | | | | | | | | |
| * | Private Equity security that was a preferred stock is now trading as a common stock. |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2017 was $(11,105,508).
| 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
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% | |
| | | | Banks - 9.8% | |
| | 693,145 | | | Bank of America Corp. | | $ | 20,461,640 | |
| | 197,013 | | | Fifth Third Bancorp | | | 5,977,374 | |
| | 188,593 | | | JP Morgan Chase & Co. | | | 20,168,136 | |
| | 25,219 | | | M&T Bank Corp. | | | 4,312,197 | |
| | 119,166 | | | PNC Financial Services Group, Inc. | | | 17,194,462 | |
| | | | | | | | |
| | | | | | | 68,113,809 | |
| | | | | | | | |
| | | | Capital Goods - 7.1% | |
| | 146,871 | | | AMETEK, Inc. | | | 10,643,741 | |
| | 40,737 | | | Boeing Co. | | | 12,013,749 | |
| | 66,549 | | | Fortune Brands Home & Security, Inc. | | | 4,554,613 | |
| | 26,864 | | | General Dynamics Corp. | | | 5,465,481 | |
| | 53,893 | | | Illinois Tool Works, Inc. | | | 8,992,047 | |
| | 44,163 | | | Snap-on, Inc. | | | 7,697,611 | |
| | | | | | | | |
| | | | | | | 49,367,242 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 2.2% | |
| | 31,285 | | | Equifax, Inc. | | | 3,689,127 | |
| | 104,973 | | | IHS Markit Ltd.* | | | 4,739,531 | |
| | 106,557 | | | Republic Services, Inc. | | | 7,204,319 | |
| | | | | | | | |
| | | | | | | 15,632,977 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.0% | |
| | 177,306 | | | NIKE, Inc. Class B | | | 11,090,490 | |
| | 131,666 | | | VF Corp. | | | 9,743,284 | |
| | | | | | | | |
| | | | | | | 20,833,774 | |
| | | | | | | | |
| | | | Consumer Services - 2.1% | |
| | 198,092 | | | Aramark | | | 8,466,452 | |
| | 109,360 | | | Starbucks Corp. | | | 6,280,545 | |
| | | | | | | | |
| | | | | | | 14,746,997 | |
| | | | | | | | |
| | | | Diversified Financials - 2.5% | |
| | 93,442 | | | Capital One Financial Corp. | | | 9,304,954 | |
| | 210,790 | | | Synchrony Financial | | | 8,138,602 | |
| | | | | | | | |
| | | | | | | 17,443,556 | |
| | | | | | | | |
| | | | Energy - 1.8% | |
| | 28,337 | | | Continental Resources, Inc.* | | | 1,501,011 | |
| | 102,245 | | | EOG Resources, Inc. | | | 11,033,258 | |
| | | | | | | | |
| | | | | | | 12,534,269 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.4% | |
| | 52,584 | | | Costco Wholesale Corp. | | | 9,786,934 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.9% | |
| | 151,974 | | | Altria Group, Inc. | | | 10,852,463 | |
| | 34,916 | | | Constellation Brands, Inc. Class A | | | 7,980,750 | |
| | 136,441 | | | Monster Beverage Corp.* | | | 8,635,351 | |
| | | | | | | | |
| | | | | | | 27,468,564 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.8% | |
| | 140,288 | | | Abbott Laboratories | | | 8,006,236 | |
| | 49,582 | | | Aetna, Inc. | | | 8,944,097 | |
| | 141,052 | | | Baxter International, Inc. | | | 9,117,601 | |
| | 58,779 | | | Danaher Corp. | | | 5,455,867 | |
| | 109,375 | | | Hologic, Inc.* | | | 4,675,781 | |
| | 44,817 | | | Laboratory Corp. of America Holdings* | | | 7,148,760 | |
| | 124,691 | | | Medtronic plc | | | 10,068,798 | |
| | 67,175 | | | UnitedHealth Group, Inc. | | | 14,809,401 | |
| | | | | | | | |
| | | | | | | 68,226,541 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Household & Personal Products - 2.9% | |
| | 148,086 | | | Colgate-Palmolive Co. | | $ | 11,173,089 | |
| | 70,083 | | | Estee Lauder Cos., Inc. Class A | | | 8,917,361 | |
| | | | | | | | |
| | | | | | | 20,090,450 | |
| | | | | | | | |
| | | | Insurance - 4.2% | |
| | 83,108 | | | Allstate Corp. | | | 8,702,239 | |
| | 95,352 | | | Chubb Ltd. | | | 13,933,788 | |
| | 192,035 | | | XL Group Ltd. | | | 6,751,950 | |
| | | | | | | | |
| | | | | | | 29,387,977 | |
| | | | | | | | |
| | | | Materials - 3.5% | |
| | 142,856 | | | Crown Holdings, Inc.* | | | 8,035,650 | |
| | 105,537 | | | DowDuPont, Inc. | | | 7,516,345 | |
| | 63,898 | | | Ecolab, Inc. | | | 8,573,834 | |
| | | | | | | | |
| | | | | | | 24,125,829 | |
| | | | | | | | |
| | | | Media - 2.3% | |
| | 398,560 | | | Comcast Corp. Class A | | | 15,962,328 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.0% | |
| | 39,545 | | | Allergan plc | | | 6,468,771 | |
| | 126,203 | | | Bristol-Myers Squibb Co. | | | 7,733,720 | |
| | 118,116 | | | Eli Lilly & Co. | | | 9,976,078 | |
| | 156,434 | | | Merck & Co., Inc. | | | 8,802,541 | |
| | 45,191 | | | Thermo Fisher Scientific, Inc. | | | 8,580,867 | |
| | | | | | | | |
| | | | | | | 41,561,977 | |
| | | | | | | | |
| | | | Retailing - 5.1% | |
| | 91,387 | | | Dollar Tree, Inc.* | | | 9,806,739 | |
| | 27,006 | | | O’Reilly Automotive, Inc.* | | | 6,496,023 | |
| | 5,067 | | | Priceline Group, Inc.* | | | 8,805,129 | |
| | 139,867 | | | TJX Cos., Inc. | | | 10,694,231 | |
| | | | | | | | |
| | | | | | | 35,802,122 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.5% | |
| | 31,137 | | | Lam Research Corp. | | | 5,731,388 | |
| | 92,212 | | | QUALCOMM, Inc. | | | 5,903,412 | |
| | 134,998 | | | Teradyne, Inc. | | | 5,652,366 | |
| | | | | | | | |
| | | | | | | 17,287,166 | |
| | | | | | | | |
| | | | Software & Services - 14.7% | |
| | 18,080 | | | Alphabet, Inc. Class A* | | | 19,045,472 | |
| | 4,393 | | | Alphabet, Inc. Class C* | | | 4,596,835 | |
| | 168,421 | | | eBay, Inc.* | | | 6,356,209 | |
| | 96,673 | | | Facebook, Inc. Class A* | | | 17,058,918 | |
| | 170,644 | | | GoDaddy, Inc. Class A* | | | 8,579,981 | |
| | 111,659 | | | Mastercard, Inc. Class A | | | 16,900,706 | |
| | 161,395 | | | Microsoft Corp. | | | 13,805,728 | |
| | 54,775 | | | Salesforce.com, Inc.* | | | 5,599,648 | |
| | 76,668 | | | Total System Services, Inc. | | | 6,063,672 | |
| | 45,099 | | | Workday, Inc. Class A* | | | 4,588,372 | |
| | | | | | | | |
| | | | | | | 102,595,541 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 5.9% | |
| | 128,932 | | | Apple, Inc. | | | 21,819,162 | |
| | 62,207 | | | CDW Corp. | | | 4,322,764 | |
| | 67,408 | | | Motorola Solutions, Inc. | | | 6,089,639 | |
| | 167,777 | | | NetApp, Inc. | | | 9,281,424 | |
| | | | | | | | |
| | | | | | | 41,512,989 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.8% | |
| | 238,018 | | | Verizon Communications, Inc. | | | 12,598,293 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Transportation - 1.5% | |
| | 42,387 | | | FedEx Corp. | | $ | 10,577,252 | |
| | | | | | | | |
| | | | Utilities - 5.0% | |
| | 159,366 | | | American Electric Power Co., Inc. | | | 11,724,557 | |
| | 91,439 | | | NextEra Energy, Inc. | | | 14,281,857 | |
| | 103,039 | | | Pinnacle West Capital Corp. | | | 8,776,862 | |
| | | | | | | | |
| | | | | | | 34,783,276 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $504,459,236) | | $ | 690,439,863 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $504,459,236) | | $ | 690,439,863 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.2% | |
| | | | Other Investment Pools & Funds - 1.2% | |
| | 8,454,536 | | | BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 1.17%(1) | | $ | 8,454,536 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $8,454,536) | | $ | 8,454,536 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $512,913,772) | | | 100.2 | % | | $ | 698,894,399 | |
| | | | Other Assets and Liabilities | | | (0.2 | )% | | | (1,479,922 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 697,414,477 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 68,113,809 | | | $ | 68,113,809 | | | $ | — | | | $ | — | |
Capital Goods | | | 49,367,242 | | | | 49,367,242 | | | | — | | | | — | |
Commercial & Professional Services | | | 15,632,977 | | | | 15,632,977 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 20,833,774 | | | | 20,833,774 | | | | — | | | | — | |
Consumer Services | | | 14,746,997 | | | | 14,746,997 | | | | — | | | | — | |
Diversified Financials | | | 17,443,556 | | | | 17,443,556 | | | | — | | | | — | |
Energy | | | 12,534,269 | | | | 12,534,269 | | | | — | | | | — | |
Food & Staples Retailing | | | 9,786,934 | | | | 9,786,934 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 27,468,564 | | | | 27,468,564 | | | | — | | | | — | |
Health Care Equipment & Services | | | 68,226,541 | | | | 68,226,541 | | | | — | | | | — | |
Household & Personal Products | | | 20,090,450 | | | | 20,090,450 | | | | — | | | | — | |
Insurance | | | 29,387,977 | | | | 29,387,977 | | | | — | | | | — | |
Materials | | | 24,125,829 | | | | 24,125,829 | | | | — | | | | — | |
Media | | | 15,962,328 | | | | 15,962,328 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 41,561,977 | | | | 41,561,977 | | | | — | | | | — | |
Retailing | | | 35,802,122 | | | | 35,802,122 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 17,287,166 | | | | 17,287,166 | | | | — | | | | — | |
Software & Services | | | 102,595,541 | | | | 102,595,541 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 41,512,989 | | | | 41,512,989 | | | | — | | | | — | |
Telecommunication Services | | | 12,598,293 | | | | 12,598,293 | | | | — | | | | — | |
Transportation | | | 10,577,252 | | | | 10,577,252 | | | | — | | | | — | |
Utilities | | | 34,783,276 | | | | 34,783,276 | | | | — | | | | — | |
Short-Term Investments | | | 8,454,536 | | | | 8,454,536 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 698,894,399 | | | $ | 698,894,399 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% | |
| | | | Automobiles & Components - 0.9% | |
| | 2,666,610 | | | Ford Motor Co. | | $ | 33,305,959 | |
| | |
| | | | Banks - 12.0% | |
| | 4,166,813 | | | Bank of America Corp. | | | 123,004,320 | |
| | 396,662 | | | Bank of Nova Scotia | | | 25,596,599 | |
| | 639,093 | | | Citigroup, Inc. | | | 47,554,910 | |
| | 1,124,271 | | | JP Morgan Chase & Co. | | | 120,229,541 | |
| | 567,028 | | | PNC Financial Services Group, Inc. | | | 81,816,470 | |
| | 593,401 | | | Wells Fargo & Co. | | | 36,001,638 | |
| | | | | | | | |
| | | | | | | 434,203,478 | |
| | | | | | | | |
| | | | Capital Goods - 5.3% | |
| | 919,045 | | | ABB Ltd. ADR | | | 24,648,787 | |
| | 234,093 | | | Caterpillar, Inc. | | | 36,888,375 | |
| | 389,203 | | | Eaton Corp. plc | | | 30,750,929 | |
| | 520,736 | | | General Electric Co. | | | 9,086,843 | |
| | 183,227 | | | Honeywell International, Inc. | | | 28,099,693 | |
| | 877,898 | | | Johnson Controls International plc | | | 33,456,693 | |
| | 26,974 | | | Lockheed Martin Corp. | | | 8,660,003 | |
| | 168,238 | | | United Technologies Corp. | | | 21,462,121 | |
| | | | | | | | |
| | | | | | | 193,053,444 | |
| | | | | | | | |
| | | | Consumer Services - 0.8% | |
| | 357,417 | | | Hilton Worldwide Holdings, Inc. | | | 28,543,322 | |
| | | | | | | | |
| | | | Diversified Financials - 3.4% | |
| | 65,704 | | | BlackRock, Inc. | | | 33,752,802 | |
| | 79,795 | | | Goldman Sachs Group, Inc. | | | 20,328,574 | |
| | 492,359 | | | Intercontinental Exchange, Inc. | | | 34,740,851 | |
| | 341,775 | | | Northern Trust Corp. | | | 34,139,905 | |
| | | | | | | | |
| | | | | | | 122,962,132 | |
| | | | | | | | |
| | | | Energy - 9.0% | |
| | 735,822 | | | Chevron Corp. | | | 92,117,556 | |
| | 600,711 | | | ConocoPhillips | | | 32,973,027 | |
| | 537,776 | | | Exxon Mobil Corp. | | | 44,979,584 | |
| | 915,320 | | | Hess Corp. | | | 43,450,240 | |
| | 1,287,511 | | | Kinder Morgan, Inc. | | | 23,265,324 | |
| | 1,252,672 | | | Suncor Energy, Inc. | | | 45,998,116 | |
| | 764,981 | | | Total S.A. ADR | | | 42,288,150 | |
| | | | | | | | |
| | | | | | | 325,071,997 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.2% | |
| | 166,290 | | | Costco Wholesale Corp. | | | 30,949,895 | |
| | 480,277 | | | CVS Health Corp. | | | 34,820,082 | |
| | 212,822 | | | Walgreens Boots Alliance, Inc. | | | 15,455,134 | |
| | | | | | | | |
| | | | | | | 81,225,111 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.5% | |
| | 452,910 | | | PepsiCo, Inc. | | | 54,312,967 | |
| | 343,067 | | | Philip Morris International, Inc. | | | 36,245,029 | |
| | | | | | | | |
| | | | | | | 90,557,996 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.7% | |
| | 398,067 | | | Abbott Laboratories | | | 22,717,684 | |
| | 477,356 | | | Cardinal Health, Inc. | | | 29,247,602 | |
| | 90,014 | | | McKesson Corp. | | | 14,037,683 | |
| | 547,946 | | | Medtronic plc | | | 44,246,639 | |
| | 177,837 | | | UnitedHealth Group, Inc. | | | 39,205,945 | |
| | 180,416 | | | Universal Health Services, Inc. Class B | | | 20,450,154 | |
| | | | | | | | |
| | | | | | | 169,905,707 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.7% | |
| | 476,246 | | | Unilever N.V. | | | 26,822,175 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% - (continued) | |
| | | | Insurance - 8.2% | |
| | 597,804 | | | American International Group, Inc. | | $ | 35,617,162 | |
| | 48,561 | | | Brighthouse Financial, Inc.* | | | 2,847,617 | |
| | 512,720 | | | Chubb Ltd. | | | 74,923,774 | |
| | 414,327 | | | Marsh & McLennan Cos., Inc. | | | 33,722,074 | |
| | 578,891 | | | MetLife, Inc. | | | 29,268,729 | |
| | 553,328 | | | Principal Financial Group, Inc. | | | 39,042,824 | |
| | 691,466 | | | Prudential Financial, Inc. | | | 79,504,761 | |
| | | | | | | | |
| | | | | | | 294,926,941 | |
| | | | | | | | |
| | | | Materials - 3.1% | |
| | 455,223 | | | Ball Corp. | | | 17,230,191 | |
| | 179,393 | | | BHP Billiton plc ADR | | | 7,229,538 | |
| | 293,638 | | | Celanese Corp. Series A | | | 31,442,757 | |
| | 11,081 | | | DowDuPont, Inc. | | | 789,189 | |
| | 639,449 | | | International Paper Co. | | | 37,049,675 | |
| | 161,448 | | | PPG Industries, Inc. | | | 18,860,355 | |
| | | | | | | | |
| | | | | | | 112,601,705 | |
| | | | | | | | |
| | | | Media - 3.5% | |
| | 343,020 | | | CBS Corp. Class B | | | 20,238,180 | |
| | 2,030,902 | | | Comcast Corp. Class A | | | 81,337,625 | |
| | 678,893 | | | Twenty-First Century Fox, Inc. Class A | | | 23,442,175 | |
| | | | | | | | |
| | | | | | | 125,017,980 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 9.0% | |
| | 1,584,533 | | | AstraZeneca plc ADR | | | 54,983,295 | |
| | 1,196,674 | | | Bristol-Myers Squibb Co. | | | 73,332,183 | |
| | 468,704 | | | Eli Lilly & Co. | | | 39,586,740 | |
| | 351,983 | | | Johnson & Johnson | | | 49,179,065 | |
| | 1,116,280 | | | Merck & Co., Inc. | | | 62,813,075 | |
| | 1,288,438 | | | Pfizer, Inc. | | | 46,667,224 | |
| | | | | | | | |
| | | | | | | 326,561,582 | |
| | | | | | | | |
| | | | Real Estate - 1.3% | |
| | 188,936 | | | American Tower Corp. REIT | | | 26,955,499 | |
| | 71,023 | | | Boston Properties, Inc. REIT | | | 9,235,121 | |
| | 305,800 | | | Invitation Homes, Inc. REIT | | | 7,207,706 | |
| | 31,400 | | | Simon Property Group, Inc. REIT | | | 5,392,636 | |
| | | | | | | | |
| | | | | | | 48,790,962 | |
| | | | | | | | |
| | | | Retailing - 0.8% | |
| | 168,202 | | | L Brands, Inc. | | | 10,129,125 | |
| | 211,766 | | | Lowe’s Cos., Inc. | | | 19,681,532 | |
| | | | | | | | |
| | | | | | | 29,810,657 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.1% | |
| | 2,189,129 | | | Intel Corp. | | | 101,050,194 | |
| | 202,041 | | | KLA-Tencor Corp. | | | 21,228,448 | |
| | 549,857 | | | QUALCOMM, Inc. | | | 35,201,845 | |
| | 269,972 | | | Texas Instruments, Inc. | | | 28,195,876 | |
| | | | | | | | |
| | | | | | | 185,676,363 | |
| | | | | | | | |
| | | | Software & Services - 9.6% | |
| | 278,900 | | | Accenture plc Class A | | | 42,696,801 | |
| | 93,895 | | | Alphabet, Inc. Class A* | | | 98,908,993 | |
| | 745,157 | | | eBay, Inc.* | | | 28,122,225 | |
| | 235,636 | | | International Business Machines Corp. | | | 36,151,275 | |
| | 1,654,579 | | | Microsoft Corp. | | | 141,532,688 | |
| | | | | | | | |
| | | | | | | 347,411,982 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 4.9% | |
| | 446,260 | | | Apple, Inc. | | | 75,520,580 | |
| | 1,191,812 | | | Cisco Systems, Inc. | | | 45,646,399 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% - (continued) | |
| | | | Technology Hardware & Equipment - 4.9% - (continued) | |
| | 1,029,913 | | | HP, Inc. | | $ | 21,638,472 | |
| | 375,591 | | | Motorola Solutions, Inc. | | | 33,930,891 | |
| | | | | | | | |
| | | | | | | 176,736,342 | |
| | | | | | | | |
| | | | Telecommunication Services - 3.1% | |
| | 1,065,567 | | | BCE, Inc. | | | 51,157,872 | |
| | 1,123,668 | | | Verizon Communications, Inc. | | | 59,475,747 | |
| | | | | | | | |
| | | | | | | 110,633,619 | |
| | | | | | | | |
| | | | Transportation - 3.7% | |
| | 107,513 | | | Canadian Pacific Railway Ltd. | | | 19,649,076 | |
| | 379,801 | | | Delta Air Lines, Inc. | | | 21,268,856 | |
| | 174,819 | | | Union Pacific Corp. | | | 23,443,228 | |
| | 590,349 | | | United Parcel Service, Inc. Class B | | | 70,340,083 | |
| | | | | | | | |
| | | | | | | 134,701,243 | |
| | | | | | | | |
| | | | Utilities - 4.8% | |
| | 503,080 | | | Dominion Energy, Inc. | | | 40,779,665 | |
| | 544,162 | | | Edison International | | | 34,412,805 | |
| | 805,665 | | | Exelon Corp. | | | 31,751,257 | |
| | 416,532 | | | NextEra Energy, Inc. | | | 65,058,133 | |
| | | | | | | | |
| | | | | | | 172,001,860 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $2,412,919,546) | | $ | 3,570,522,557 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $2,412,919,546) | | $ | 3,570,522,557 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.4% | |
| | | | Other Investment Pools & Funds - 1.4% | |
| | 48,655,540 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(1) | | | 48,655,540 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $48,655,540) | | $ | 48,655,540 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $2,461,575,086) | | | 100.0 | % | | $ | 3,619,178,097 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | 472,685 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 3,619,650,782 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 33,305,959 | | | $ | 33,305,959 | | | $ | — | | | $ | — | |
Banks | | | 434,203,478 | | | | 434,203,478 | | | | — | | | | — | |
Capital Goods | | | 193,053,444 | | | | 193,053,444 | | | | — | | | | — | |
Consumer Services | | | 28,543,322 | | | | 28,543,322 | | | | — | | | | — | |
Diversified Financials | | | 122,962,132 | | | | 122,962,132 | | | | — | | | | — | |
Energy | | | 325,071,997 | | | | 325,071,997 | | | | — | | | | — | |
Food & Staples Retailing | | | 81,225,111 | | | | 81,225,111 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 90,557,996 | | | | 90,557,996 | | | | — | | | | — | |
Health Care Equipment & Services | | | 169,905,707 | | | | 169,905,707 | | | | — | | | | — | |
Household & Personal Products | | | 26,822,175 | | | | 26,822,175 | | | | — | | | | — | |
Insurance | | | 294,926,941 | | | | 294,926,941 | | | | — | | | | — | |
Materials | | | 112,601,705 | | | | 112,601,705 | | | | — | | | | — | |
Media | | | 125,017,980 | | | | 125,017,980 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 326,561,582 | | | | 326,561,582 | | | | — | | | | — | |
Real Estate | | | 48,790,962 | | | | 48,790,962 | | | | — | | | | — | |
Retailing | | | 29,810,657 | | | | 29,810,657 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 185,676,363 | | | | 185,676,363 | | | | — | | | | — | |
Software & Services | | | 347,411,982 | | | | 347,411,982 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 176,736,342 | | | | 176,736,342 | | | | — | | | | — | |
Telecommunication Services | | | 110,633,619 | | | | 110,633,619 | | | | — | | | | — | |
Transportation | | | 134,701,243 | | | | 134,701,243 | | | | — | | | | — | |
Utilities | | | 172,001,860 | | | | 172,001,860 | | | | — | | | | — | |
Short-Term Investments | | | 48,655,540 | | | | 48,655,540 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,619,178,097 | | | $ | 3,619,178,097 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% | |
| | | | Automobiles & Components - 0.6% | |
| | 50,705 | | | Magna International, Inc. | | $ | 2,873,687 | |
| | | | | | | | |
| | | | Banks - 4.7% | |
| | 421,675 | | | Banco Santander S.A. | | | 2,764,599 | |
| | 286,132 | | | Bank of America Corp. | | | 8,446,616 | |
| | 52,703 | | | BNP Paribas S.A. | | | 3,920,501 | |
| | 35,664 | | | HDFC Bank Ltd. ADR | | | 3,625,959 | |
| | 18,925 | | | PNC Financial Services Group, Inc. | | | 2,730,688 | |
| | 149,595 | | | UniCredit S.p.A.* | | | 2,790,579 | |
| | | | | | | | |
| | | | | | | 24,278,942 | |
| | | | | | | | |
| | | | Capital Goods - 8.9% | |
| | 140,119 | | | ABB Ltd. | | | 3,752,994 | |
| | 40,138 | | | Airbus SE | | | 3,989,184 | |
| | 129,354 | | | Assa Abloy AB Class B | | | 2,681,698 | |
| | 78,962 | | | Atlas Copco AB Class A | | | 3,407,687 | |
| | 13,500 | | | FANUC Corp. | | | 3,238,600 | |
| | 61,671 | | | Fastenal Co. | | | 3,372,787 | |
| | 44,391 | | | Fortune Brands Home & Security, Inc. | | | 3,038,120 | |
| | 112,100 | | | Komatsu Ltd. | | | 4,051,262 | |
| | 24,499 | | | Lockheed Martin Corp. | | | 7,865,404 | |
| | 24,600 | | | Nidec Corp. | | | 3,444,419 | |
| | 34,588 | | | Safran S.A. | | | 3,567,598 | |
| | 8,272 | | | SMC Corp. | | | 3,394,697 | |
| | | | | | | | |
| | | | | | | 45,804,450 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.9% | |
| | 141,100 | | | Edenred | | | 4,084,826 | |
| | 64,502 | | | IHS Markit Ltd.* | | | 2,912,265 | |
| | 52,669 | | | TransUnion* | | | 2,894,688 | |
| | | | | | | | |
| | | | | | | 9,891,779 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.1% | |
| | 57,734 | | | NIKE, Inc. Class B | | | 3,611,262 | |
| | 1,067 | | | NVR, Inc.* | | | 3,743,271 | |
| | 83,100 | | | Sony Corp. | | | 3,729,763 | |
| | | | | | | | |
| | | | | | | 11,084,296 | |
| | | | | | | | |
| | | | Consumer Services - 4.2% | |
| | 190,739 | | | Compass Group plc | | | 4,112,755 | |
| | 114,161 | | | Melco Resorts & Entertainment Ltd. ADR | | | 3,315,235 | |
| | 55,712 | | | New Oriental Education & Technology Group, Inc. ADR | | | 5,236,928 | |
| | 640,862 | | | Sands China Ltd. | | | 3,298,671 | |
| | 87,581 | | | TAL Education Group ADR | | | 2,602,032 | |
| | 26,278 | | | Wyndham Worldwide Corp. | | | 3,044,832 | |
| | | | | | | | |
| | | | | | | 21,610,453 | |
| | | | | | | | |
| | | | Diversified Financials - 6.1% | |
| | 42,248 | | | American Express Co. | | | 4,195,649 | |
| | 180,215 | | | Deutsche Bank AG | | | 3,408,581 | |
| | 50,179 | | | Intercontinental Exchange, Inc. | | | 3,540,630 | |
| | 106,548 | | | Julius Baer Group Ltd.* | | | 6,515,630 | |
| | 4,459 | | | Partners Group Holding AG | | | 3,055,274 | |
| | 142,087 | | | TD Ameritrade Holding Corp. | | | 7,264,909 | |
| | 181,195 | | | UBS Group AG* | | | 3,329,051 | |
| | | | | | | | |
| | | | | | | 31,309,724 | |
| | | | | | | | |
| | | | Energy - 1.3% | |
| | 284,219 | | | Encana Corp. | | | 3,791,848 | |
| | 164,454 | | | Galp Energia SGPS S.A. | | | 3,021,470 | |
| | | | | | | | |
| | | | | | | 6,813,318 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% - (continued) | |
| | | | Food, Beverage & Tobacco - 5.3% | |
| | 387,500 | | | Ambev S.A. | | $ | 2,485,906 | |
| | 119,340 | | | British American Tobacco plc | | | 8,067,241 | |
| | 16,752 | | | Constellation Brands, Inc. Class A | | | 3,829,005 | |
| | 403,131 | | | Davide Campari-Milano S.p.A. | | | 3,114,839 | |
| | 94,372 | | | Diageo plc | | | 3,459,147 | |
| | 60,100 | | | Monster Beverage Corp.* | | | 3,803,729 | |
| | 228,298 | | | Treasury Wine Estates Ltd. | | | 2,832,941 | |
| | | | | | | | |
| | | | | | | 27,592,808 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.8% | |
| | 69,880 | | | Abbott Laboratories | | | 3,988,052 | |
| | 18,495 | | | Aetna, Inc. | | | 3,336,313 | |
| | 17,676 | | | Align Technology, Inc.* | | | 3,927,430 | |
| | 47,336 | | | Baxter International, Inc. | | | 3,059,799 | |
| | 245,727 | | | Boston Scientific Corp.* | | | 6,091,572 | |
| | 17,617 | | | Cigna Corp. | | | 3,577,837 | |
| | 42,106 | | | DexCom, Inc.* | | | 2,416,463 | |
| | 32,984 | | | Edwards Lifesciences Corp.* | | | 3,717,627 | |
| | 23,746 | | | Stryker Corp. | | | 3,676,831 | |
| | 30,498 | | | UnitedHealth Group, Inc. | | | 6,723,589 | |
| | | | | | | | |
| | | | | | | 40,515,513 | |
| | | | | | | | |
| | | | Household & Personal Products - 1.4% | |
| | 21,595 | | | Estee Lauder Cos., Inc. Class A | | | 2,747,748 | |
| | 79,108 | | | Unilever N.V. | | | 4,454,011 | |
| | | | | | | | |
| | | | | | | 7,201,759 | |
| | | | | | | | |
| | | | Insurance - 3.0% | |
| | 24,992 | | | Allstate Corp. | | | 2,616,913 | |
| | 132,155 | | | Manulife Financial Corp. | | | 2,756,646 | |
| | 720,300 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 7,471,001 | |
| | 19,467 | | | Willis Towers Watson plc | | | 2,933,482 | |
| | | | | | | | |
| | | | | | | 15,778,042 | |
| | | | | | | | |
| | | | Materials - 1.9% | |
| | 169,229 | | | BHP Billiton plc | | | 3,421,869 | |
| | 222,449 | | | First Quantum Minerals Ltd. | | | 3,116,410 | |
| | 28,256 | | | HeidelbergCement AG | | | 3,046,712 | |
| | | | | | | | |
| | | | | | | 9,584,991 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 4.9% | |
| | 50,047 | | | AstraZeneca plc | | | 3,453,525 | |
| | 66,541 | | | Bristol-Myers Squibb Co. | | | 4,077,633 | |
| | 45,800 | | | Eisai Co., Ltd. | | | 2,601,879 | |
| | 33,775 | | | ICON plc* | | | 3,787,866 | |
| | 26,764 | | | Incyte Corp.* | | | 2,534,818 | |
| | 10,804 | | | Roche Holding AG | | | 2,731,848 | |
| | 19,797 | | | Thermo Fisher Scientific, Inc. | | | 3,759,054 | |
| | 15,256 | | | Vertex Pharmaceuticals, Inc.* | | | 2,286,264 | |
| | | | | | | | |
| | | | | | | 25,232,887 | |
| | | | | | | | |
| | | | Real Estate - 1.4% | |
| | 51,293 | | | American Tower Corp. REIT | | | 7,317,972 | |
| | | | | | | | |
| | | | Retailing - 7.8% | |
| | 4,762 | | | Amazon.com, Inc.* | | | 5,569,016 | |
| | 33,653 | | | Home Depot, Inc. | | | 6,378,253 | |
| | 73,973 | | | Industria de Diseno Textil S.A. | | | 2,572,169 | |
| | 38,510 | | | Netflix, Inc.* | | | 7,392,380 | |
| | 4,124 | | | Priceline Group, Inc.* | | | 7,166,440 | |
| | 49,775 | | | Ross Stores, Inc. | | | 3,994,444 | |
| | 40,912 | | | Wayfair, Inc. Class A* | | | 3,284,006 | |
| | 74,907 | | | Zalando SE*(1) | | | 3,949,680 | |
| | | | | | | | |
| | | | | | | 40,306,388 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment - 5.7% | |
| | 177,913 | | | Advanced Micro Devices, Inc.* | | $ | 1,828,946 | |
| | 37,553 | | | Analog Devices, Inc. | | | 3,343,344 | |
| | 60,220 | | | Applied Materials, Inc. | | | 3,078,446 | |
| | 19,643 | | | ASML Holding N.V. | | | 3,415,097 | |
| | 14,002 | | | Broadcom Ltd. | | | 3,597,114 | |
| | 145,266 | | | Infineon Technologies AG | | | 3,956,202 | |
| | 26,377 | | | KLA-Tencor Corp. | | | 2,771,431 | |
| | 21,378 | | | NVIDIA Corp. | | | 4,136,643 | |
| | 417,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 3,192,999 | |
| | | | | | | | |
| | | | | | | 29,320,222 | |
| | | | | | | | |
| | | | Software & Services - 25.8% | |
| | 59,362 | | | Adobe Systems, Inc.* | | | 10,402,597 | |
| | 39,983 | | | Alibaba Group Holding Ltd. ADR* | | | 6,894,269 | |
| | 19,695 | | | Alphabet, Inc. Class C* | | | 20,608,848 | |
| | 32,064 | | | Autodesk, Inc.* | | | 3,361,269 | |
| | 2,286 | | | Dropbox, Inc. Class B*(1)(2)(3)(4) | | | 30,221 | |
| | 89,800 | | | eBay, Inc.* | | | 3,389,052 | |
| | 90,484 | | | Facebook, Inc. Class A* | | | 15,966,807 | |
| | 29,022 | | | Global Payments, Inc. | | | 2,909,165 | |
| | 24,224 | | | Intuit, Inc. | | | 3,822,063 | |
| | 55,137 | | | Mastercard, Inc. Class A | | | 8,345,536 | |
| | 138,172 | | | Microsoft Corp. | | | 11,819,233 | |
| | 11,300 | | | Nintendo Co., Ltd. | | | 4,069,091 | |
| | 122,638 | | | PayPal Holdings, Inc.* | | | 9,028,609 | |
| | 75,747 | | | Salesforce.com, Inc.* | | | 7,743,616 | |
| | 35,171 | | | ServiceNow, Inc.* | | | 4,585,947 | |
| | 150,800 | | | Tencent Holdings Ltd. | | | 7,805,093 | |
| | 40,090 | | | Total System Services, Inc. | | | 3,170,718 | |
| | 50,640 | | | Visa, Inc. Class A | | | 5,773,973 | |
| | 106,206 | | | Yandex N.V. Class A* | | | 3,478,246 | |
| | | | | | | | |
| | | | | | | 133,204,353 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.0% | |
| | 86,700 | | | Alps Electric Co., Ltd. | | | 2,466,213 | |
| | 177,506 | | | Flex Ltd.* | | | 3,193,333 | |
| | 6,500 | | | Keyence Corp. | | | 3,631,103 | |
| | 1,913 | | | Samsung Electronics Co., Ltd. | | | 4,545,117 | |
| | 148,583 | | | Sunny Optical Technology Group Co., Ltd. | | | 1,886,595 | |
| | | | | | | | |
| | | | | | | 15,722,361 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.1% | |
| | 50,602 | | | T-Mobile USA, Inc.* | | | 3,213,733 | |
| | 8,082,110 | | | Telekomunikasi Indonesia Persero Tbk PT | | | 2,645,220 | |
| | | | | | | | |
| | | | | | | 5,858,953 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $371,615,856) | | $ | 511,302,898 | |
| | | | | | | | |
|
| PREFERRED STOCKS - 0.5% | |
| | | | Automobiles & Components - 0.5% | |
| | 14,711 | | | Volkswagen AG*(1) | | $ | 2,922,088 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $2,744,059) | | $ | 2,922,088 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| WARRANTS - 0.0% | |
| | | | Diversified Financials - 0.0% | |
| | 1,035 | | | Emergent Capital, Inc. Expires 4/11/19*(3)(4) | | $ | — | |
| | | | | | | | |
| | |
| | | | Total Warrants
(cost $—) | | $ | — | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $374,359,915) | | $ | 514,224,986 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.1% | |
| | | | Other Investment Pools & Funds - 1.1% | |
| | 5,576,466 | | | Fidelity Institutional Government Fund, Institutional Class,1.16%(5) | | $ | 5,576,466 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $5,576,466) | | $ | 5,576,466 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $379,936,381) | | | 100.5 | % | | $ | 519,801,452 | |
| | | | Other Assets and Liabilities | | | (0.5 | )% | | | (2,778,931 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 517,022,521 | |
| | | | | | | | | | | | |
| | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $6,901,989, which represented 1.3% of total net assets. |
| (2) | Investment valued using significant unobservable inputs. |
| (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 December 31, 2017, the aggregate fair value of these securities was $2,952,309, which represented 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. |
| (4) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $30,221, which represents 0.0% of total net assets. |
| (5) | Current yield as of period end. |
| † | 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 Global Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 2,873,687 | | | $ | 2,873,687 | | | $ | — | | | $ | — | |
Banks | | | 24,278,942 | | | | 14,803,263 | | | | 9,475,679 | | | | — | |
Capital Goods | | | 45,804,450 | | | | 14,276,311 | | | | 31,528,139 | | | | — | |
Commercial & Professional Services | | | 9,891,779 | | | | 5,806,953 | | | | 4,084,826 | | | | — | |
Consumer Durables & Apparel | | | 11,084,296 | | | | 7,354,533 | | | | 3,729,763 | | | | — | |
Consumer Services | | | 21,610,453 | | | | 14,199,027 | | | | 7,411,426 | | | | — | |
Diversified Financials | | | 31,309,724 | | | | 15,001,188 | | | | 16,308,536 | | | | — | |
Energy | | | 6,813,318 | | | | 3,791,848 | | | | 3,021,470 | | | | — | |
Food, Beverage & Tobacco | | | 27,592,808 | | | | 10,118,640 | | | | 17,474,168 | | | | — | |
Health Care Equipment & Services | | | 40,515,513 | | | | 40,515,513 | | | | — | | | | — | |
Household & Personal Products | | | 7,201,759 | | | | 2,747,748 | | | | 4,454,011 | | | | — | |
Insurance | | | 15,778,042 | | | | 8,307,041 | | | | 7,471,001 | | | | — | |
Materials | | | 9,584,991 | | | | 3,116,410 | | | | 6,468,581 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 25,232,887 | | | | 16,445,635 | | | | 8,787,252 | | | | — | |
Real Estate | | | 7,317,972 | | | | 7,317,972 | | | | — | | | | — | |
Retailing | | | 40,306,388 | | | | 33,784,539 | | | | 6,521,849 | | | | — | |
Semiconductors & Semiconductor Equipment | | | 29,320,222 | | | | 18,755,924 | | | | 10,564,298 | | | | — | |
Software & Services | | | 133,204,353 | | | | 121,299,948 | | | | 11,874,184 | | | | 30,221 | |
Technology Hardware & Equipment | | | 15,722,361 | | | | 3,193,333 | | | | 12,529,028 | | | | — | |
Telecommunication Services | | | 5,858,953 | | | | 3,213,733 | | | | 2,645,220 | | | | — | |
Preferred Stocks | | | 2,922,088 | | | | — | | | | 2,922,088 | | | | — | |
Warrants | | | — | | | | — | | | | 0 | | | | — | |
Short-Term Investments | | | 5,576,466 | | | | 5,576,466 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 519,801,452 | | | $ | 352,499,712 | | | $ | 167,271,519 | | | $ | 30,221 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2017 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 94.3% | |
| | | | Banks - 2.3% | |
| | 291,729 | | | Citigroup, Inc. | | $ | 21,707,555 | |
| | 95,093 | | | PNC Financial Services Group, Inc. | | | 13,720,969 | |
| | | | | | | | |
| | | | | | | 35,428,524 | |
| | | | | | | | |
| | | | Capital Goods - 4.7% | |
| | 147,947 | | | Deere & Co. | | | 23,155,185 | |
| | 107,235 | | | Harris Corp. | | | 15,189,838 | |
| | 115,349 | | | IDEX Corp. | | | 15,222,608 | |
| | 1,458,400 | | | Lithium Technology Corp., Escrow*(1)(2)(3)(4) | | | 481,272 | |
| | 85,261 | | | Rockwell Automation, Inc. | | | 16,740,997 | |
| | | | | | | | |
| | | | | | | 70,789,900 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 0.6% | |
| | 18,785 | | | Klarna Holding AB*(1)(2)(3)(4) | | | 2,204,983 | |
| | 759,300 | | | Landscape Acquisition Holdings Ltd.* | | | 7,251,315 | |
| | | | | | | | |
| | | | | | | 9,456,298 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 0.7% | |
| | 821,259 | | | Under Armour, Inc. Class C* | | | 10,939,170 | |
| | | | | | | | |
| | | | Consumer Services - 4.5% | |
| | 1,556,596 | | | DraftKings, Inc.*(1)(2)(3)(4) | | | 2,210,367 | |
| | 260,521 | | | Hilton Worldwide Holdings, Inc. | | | 20,805,207 | |
| | 842,774 | | | Melco Resorts & Entertainment Ltd. ADR | | | 24,474,157 | |
| | 125,331 | | | Wynn Resorts Ltd. | | | 21,129,553 | |
| | | | | | | | |
| | | | | | | 68,619,284 | |
| | | | | | | | |
| | | | Diversified Financials - 6.1% | |
| | 312,761 | | | American Express Co. | | | 31,060,295 | |
| | 1,469,900 | | | J2 Acquisition Ltd.*(3) | | | 14,699,000 | |
| | 510,427 | | | Ocelot Partners Ltd.*(3) | | | 4,900,099 | |
| | 494,971 | | | TD Ameritrade Holding Corp. | | | 25,307,867 | |
| | 870,483 | | | UBS Group AG* | | | 15,993,170 | |
| | | | | | | | |
| | | | | | | 91,960,431 | |
| | | | | | | | |
| | | | Energy - 0.6% | |
| | 267,261 | | | Newfield Exploration Co.* | | | 8,426,739 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.3% | |
| | 686,384 | | | Blue Buffalo Pet Products, Inc.* | | | 22,506,532 | |
| | 195,977 | | | Monster Beverage Corp.* | | | 12,403,384 | |
| | | | | | | | |
| | | | | | | 34,909,916 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.3% | |
| | 267,915 | | | Abbott Laboratories | | | 15,289,909 | |
| | 351,135 | | | Baxter International, Inc. | | | 22,697,367 | |
| | 319,711 | | | DexCom, Inc.* | | | 18,348,214 | |
| | 140,240 | | | Edwards Lifesciences Corp.* | | | 15,806,450 | |
| | 684,135 | | | Hologic, Inc.* | | | 29,246,771 | |
| | 165,247 | | | Veeva Systems, Inc. Class A* | | | 9,134,854 | |
| | | | | | | | |
| | | | | | | 110,523,565 | |
| | | | | | | | |
| | | | Materials - 2.1% | |
| | 149,672 | | | Packaging Corp. of America | | | 18,042,960 | |
| | 1,387,049 | | | Platform Specialty Products Corp.* | | | 13,759,526 | |
| | | | | | | | |
| | | | | | | 31,802,486 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 5.8% | |
| | 542,585 | | | AstraZeneca plc ADR | | | 18,827,699 | |
| | 438,224 | | | Bristol-Myers Squibb Co. | | | 26,854,367 | |
| | 403,855 | | | Exact Sciences Corp.* | | | 21,218,542 | |
| | 174,648 | | | Ionis Pharmaceuticals, Inc.* | | | 8,784,794 | |
| | 47,240 | | | TESARO, Inc.* | | | 3,914,779 | |
| | 49,783 | | | Vertex Pharmaceuticals, Inc.* | | | 7,460,480 | |
| | | | | | | | |
| | | | | | | 87,060,661 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 94.3% - (continued) | |
| | | | Real Estate - 1.7% | |
| | 293,189 | | | Redfin Corp. Series G PIPE*(1)(2)(4) | | $ | 9,050,041 | |
| | 10,657 | | | WeWork Companies, Inc. Class A,
REIT*(1)(2)(3)(4) | | | 552,139 | |
| | 1,223,376 | | | Williams Scotsman Corp.* | | | 15,536,875 | |
| | | | | | | | |
| | | | | | | 25,139,055 | |
| | | | | | | | |
| | | | Retailing - 5.3% | |
| | 139,955 | | | Dollar Tree, Inc.* | | | 15,018,571 | |
| | 43,732 | | | Honest Co.*(1)(2)(3)(4) | | | 773,182 | |
| | 41,578 | | | JAND, Inc. Class A*(1)(2)(3)(4) | | | 404,138 | |
| | 112,603 | | | Netflix, Inc.* | | | 21,615,272 | |
| | 14,064 | | | Priceline Group, Inc.* | | | 24,439,575 | |
| | 38,805 | | | Tory Burch LLC*(1)(2)(3)(4) | | | 1,908,820 | |
| | 200,730 | | | Wayfair, Inc. Class A* | | | 16,112,597 | |
| | | | | |
| | | | | | | 80,272,155 | |
| | | | | |
| | | | Semiconductors & Semiconductor Equipment - 6.9% | |
| | 75,951 | | | Cavium, Inc.* | | | 6,366,972 | |
| | 225,247 | | | Microchip Technology, Inc. | | | 19,794,707 | |
| | 577,332 | | | Micron Technology, Inc.* | | | 23,739,892 | |
| | 170,064 | | | NVIDIA Corp. | | | 32,907,384 | |
| | 526,045 | | | Teradyne, Inc. | | | 22,025,504 | |
| | | | | |
| | | | | | | 104,834,459 | |
| | | | | |
| | | | Software & Services - 35.8% | |
| | 135,121 | | | Adobe Systems, Inc.* | | | 23,678,604 | |
| | 103,185 | | | Alibaba Group Holding Ltd. ADR* | | | 17,792,190 | |
| | 108,734 | | | Alphabet, Inc. Class C* | | | 113,779,258 | |
| | 215,082 | | | Atlassian Corp. plc Class A* | | | 9,790,533 | |
| | 1,070,278 | | | Birst, Inc. Escrow*(1)(2)(3)(4) | | | 101,677 | |
| | 98,276 | | | CoStar Group, Inc.* | | | 29,183,058 | |
| | 473,727 | | | Facebook, Inc. Class A* | | | 83,593,867 | |
| | 117,752 | | | FleetCor Technologies, Inc.* | | | 22,659,017 | |
| | 13,300 | | | ForeScout Technologies, Inc.* | | | 424,137 | |
| | 138,724 | | | ForeScout Technologies, Inc.*(1)(2)(3)(4) | | | 4,136,354 | |
| | 192,759 | | | Global Payments, Inc. | | | 19,322,162 | |
| | 365,455 | | | GoDaddy, Inc. Class A* | | | 18,375,077 | |
| | 293,908 | | | Guidewire Software, Inc.* | | | 21,825,608 | |
| | 405,184 | | | PayPal Holdings, Inc.* | | | 29,829,646 | |
| | 328,411 | | | Salesforce.com, Inc.* | | | 33,573,457 | |
| | 239,310 | | | ServiceNow, Inc.* | | | 31,203,631 | |
| | 112,438 | | | Shopify, Inc. Class A* | | | 11,356,238 | |
| | 447,351 | | | Trade Desk, Inc. Class A* | | | 20,457,361 | |
| | 210,735 | | | Veracode, Inc. Escrow*(1)(2)(3)(4) | | | 847,155 | |
| | 276,349 | | | Workday, Inc. Class A* | | | 28,115,747 | |
| | 481,897 | | | Zillow Group, Inc. Class C* | | | 19,719,225 | |
| | | | | |
| | | | | | | 539,764,002 | |
| | | | | |
| | | | Technology Hardware & Equipment - 3.5% | |
| | 81,354 | | | Arista Networks, Inc.* | | | 19,165,375 | |
| | 26,458 | | | IPG Photonics Corp.* | | | 5,665,452 | |
| | 59,609 | | | Universal Display Corp. | | | 10,291,494 | |
| | 168,294 | | | Zebra Technologies Corp. Class A* | | | 17,468,917 | |
| | | | | |
| | | | | | | 52,591,238 | |
| | | | | |
| | | | Transportation - 4.1% | |
| | 349,142 | | | CSX Corp. | | | 19,206,302 | |
| | 134,530 | | | J.B. Hunt Transport Services, Inc. | | | 15,468,259 | |
| | 721,338 | | | JetBlue Airways Corp.* | | | 16,114,691 | |
| | 165,400 | | | United Continental Holdings, Inc.* | | | 11,147,960 | |
| | | | | |
| | | | | | | 61,937,212 | |
| | | | | |
| | |
| | | | Total Common Stocks
(cost $1,184,742,400) | | $ | 1,424,455,095 | |
| | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| PREFERRED STOCKS - 4.7% | |
| | | | Real Estate - 0.9% | |
| | 145,709 | | | WeWork Companies, Inc. Class D-1*(1)(2)(3)(4) | | $ | 7,549,183 | |
| | 114,486 | | | WeWork Companies, Inc. Class D-2*(1)(2)(3)(4) | | | 5,931,520 | |
| | | | | |
| | | | | | | 13,480,703 | |
| | | | | |
| | | | Retailing - 0.6% | |
| | 1,605,750 | | | Coupang LLC*(1)(2)(3)(4) | | | 7,991,978 | |
| | 92,843 | | | JAND, Inc. Series D*(1)(2)(3)(4) | | | 1,006,418 | |
| | | | | |
| | | | | | | 8,998,396 | |
| | | | | |
| | | | Software & Services - 3.2% | |
| | 1,871,878 | | | Essence Group Holdings Corp. Series 3*(1)(2)(3)(4) | | | 3,612,724 | |
| | 50,806 | | | General Assembly Space, Inc. Series D*(1)(2)(3)(4) | | | 2,490,556 | |
| | 287,204 | | | Lookout, Inc. Series F*(1)(2)(3)(4) | | | 2,289,016 | |
| | 366,944 | | | MarkLogic Corp. Series F*(1)(2)(3)(4) | | | 3,596,051 | |
| | 488,790 | | | Pinterest, Inc. Series G*(1)(2)(3)(4) | | | 3,279,781 | |
| | 759,876 | | | Uber Technologies, Inc. Series D*(1)(2)(3)(4) | | | 26,671,648 | |
| | 1,160,072 | | | Zuora, Inc. Series F*(1)(2)(3)(4) | | | 6,183,184 | |
| | | | | |
| | | | | | | 48,122,960 | |
| | | | | |
| | |
| | | | Total Preferred Stocks
(cost $43,095,374) | | $ | 70,602,059 | |
| | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.2% | |
| | | | Retailing - 0.2% | |
| | 102,040 | | | Honest Co. Series C*(1)(2)(3)(4) | | $ | 3,114,261 | |
| | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $2,760,927) | | $ | 3,114,261 | |
| | | | | |
|
| WARRANTS - 0.2% | |
| | | | Commercial & Professional Services - 0.0% | |
| | 759,300 | | | Landscape Acquisition Holdings Ltd.
Expires 11/23/22* | | $ | 455,580 | |
| | | | | |
| | | | Diversified Financials - 0.1% | |
| | 1,469,900 | | | J2 Acquisition Ltd. Expires 10/10/20* | | | 881,940 | |
| | 510,427 | | | Ocelot Partners Ltd. Expires 4/1/20* | | | 306,256 | |
| | | | | |
| | | | | | | 1,188,196 | |
| | | | | |
| | | | Real Estate - 0.1% | |
| | 621,393 | | | Williams Scotsman Corp. Expires 9/16/20* | | | 894,806 | |
| | | | | |
| | |
| | | | Total Warrants
(cost $568,009) | | $ | 2,538,582 | |
| | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,231,166,710) | | $ | 1,500,709,997 | |
| | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.8% | |
| | | | Other Investment Pools & Funds - 0.8% | |
| | 11,022,662 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(5) | | $ | 11,022,662 | |
| | | | | |
| | |
| | | | Total Short-Term Investments
(cost $11,022,662) | | $ | 11,022,662 | |
| | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,242,189,372) | | | 100.2 | % | | $ | 1,511,732,659 | |
| | | | Other Assets and Liabilities | | | (0.2 | )% | | | (2,287,396 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,509,445,263 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (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 December 31, 2017, the aggregate fair value of these securities was $96,386,448, which represented 6.4% 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) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $96,386,448, which represents 6.4% of total net assets. |
| | The following illiquid securities are considered restricted due to a contractual lock-up period associated with the securities: |
| | | | | | | | | | | | |
Period
Acquired | | Security Name | | Shares/Par
Value | | Base
Total Cost | | | Base
Market
Value | |
| 11/2015 | | ForeScout Technologies, Inc. | | 138,724 | | $ | 2,804,291 | | | $ | 4,136,354 | |
| 12/2014 | | Redfin Corp. Series G PIPE | | 293,189 | | | 2,900,555 | | | | 9,050,041 | |
| (3) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $106,935,506, which represented 7.1% of total net assets. |
| (4) | Investment valued using significant unobservable inputs. |
| (5) | Current yield as of period end. |
| † | 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 |
PIPE | | Private Investment in Public Equity |
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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 35,428,524 | | | $ | 35,428,524 | | | $ | — | | | $ | — | |
Capital Goods | | | 70,789,900 | | | | 70,308,628 | | | | — | | | | 481,272 | |
Commercial & Professional Services | | | 9,456,298 | | | | 7,251,315 | | | | — | | | | 2,204,983 | |
Consumer Durables & Apparel | | | 10,939,170 | | | | 10,939,170 | | | | — | | | | — | |
Consumer Services | | | 68,619,284 | | | | 66,408,917 | | | | — | | | | 2,210,367 | |
Diversified Financials | | | 91,960,431 | | | | 75,967,261 | | | | 15,993,170 | | | | — | |
Energy | | | 8,426,739 | | | | 8,426,739 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 34,909,916 | | | | 34,909,916 | | | | — | | | | — | |
Health Care Equipment & Services | | | 110,523,565 | | | | 110,523,565 | | | | — | | | | — | |
Materials | | | 31,802,486 | | | | 31,802,486 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 87,060,661 | | | | 87,060,661 | | | | — | | | | — | |
Real Estate | | | 25,139,055 | | | | 15,536,875 | | | | — | | | | 9,602,180 | |
Retailing | | | 80,272,155 | | | | 77,186,015 | | | | — | | | | 3,086,140 | |
Semiconductors & Semiconductor Equipment | | | 104,834,459 | | | | 104,834,459 | | | | — | | | | — | |
Software & Services | | | 539,764,002 | | | | 534,678,816 | | | | — | | | | 5,085,186 | |
Technology Hardware & Equipment | | | 52,591,238 | | | | 52,591,238 | | | | — | | | | — | |
Transportation | | | 61,937,212 | | | | 61,937,212 | | | | — | | | | — | |
Preferred Stocks | | | 70,602,059 | | | | — | | | | — | | | | 70,602,059 | |
Convertible Preferred Stocks | | | 3,114,261 | | | | — | | | | — | | | | 3,114,261 | |
Warrants | | | 2,538,582 | | | | 2,538,582 | | �� | | — | | | | — | |
Short-Term Investments | | | 11,022,662 | | | | 11,022,662 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,511,732,659 | | | $ | 1,399,353,041 | | | $ | 15,993,170 | | | $ | 96,386,448 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, investments valued at $6,703,603 were transferred out of Level 3 due to the initiation of a vendor providing pricing. There were no transfers in or out of Level 1 or Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended December 31, 2017:
| | | | | | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Corporate
Bonds | | | Convertible
Preferred
Stocks | | | Total | |
Beginning balance | | $ | 10,774,974 | | | $ | 107,035,352 | | | $ | 705,896 | | | $ | 3,522,420 | | | $ | 122,038,642 | |
Conversions* | | | 8,685,989 | | | | (7,980,093 | ) | | | (705,896 | ) | | | — | | | | — | |
Purchases | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales | | | (3,433,313 | ) | | | (16,695,403 | ) | | | — | | | | — | | | | (20,128,716 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | (1,245,484 | ) | | | 736,289 | | | | — | | | | — | | | | (509,195 | ) |
Net change in unrealized appreciation/depreciation | | | 8,837,474 | | | | (6,739,995 | ) | | | — | | | | (408,159 | ) | | | 1,689,320 | |
Transfers into Level 3 | | | — | | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | (949,512 | ) | | | (5,754,091 | ) | | | — | | | | — | | | | (6,703,603 | ) |
| | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 22,670,128 | | | $ | 70,602,059 | | | $ | — | | | $ | 3,114,261 | | | $ | 96,386,448 | |
| | | | | | | | | | | | | | | | | | | | |
| * | Private Equity security that was a preferred stock and convertible bond is now trading as a common stock. |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2017 was $2,010,817.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.2% | |
| | | | Biotechnology - 24.9% | | | |
| | 192,347 | | | Aduro Biotech, Inc.* | | $ | 1,442,603 | |
| | 82,413 | | | Alder Biopharmaceuticals, Inc.* | | | 943,629 | |
| | 133,007 | | | Alkermes plc* | | | 7,279,473 | |
| | 32,140 | | | Alnylam Pharmaceuticals, Inc.* | | | 4,083,387 | |
| | 52,074 | | | Arena Pharmaceuticals, Inc.* | | | 1,768,954 | |
| | 11,681 | | | Biogen, Inc.* | | | 3,721,216 | |
| | 82,500 | | | Biotoscana Investments S.A.* | | | 512,345 | |
| | 28,051 | | | Bluebird Bio, Inc.* | | | 4,995,883 | |
| | 64,936 | | | Calithera Biosciences, Inc.* | | | 542,216 | |
| | 101,262 | | | Celgene Corp.* | | | 10,567,702 | |
| | 85,390 | | | Clementia Pharmaceuticals, Inc.* | | | 1,620,702 | |
| | 243,710 | | | Coherus Biosciences, Inc.* | | | 2,144,648 | |
| | 124,222 | | | Cytokinetics, Inc.* | | | 1,012,409 | |
| | 21,250 | | | Galapagos N.V.* | | | 2,002,331 | |
| | 18,971 | | | Genmab A/S* | | | 3,146,189 | |
| | 92,122 | | | GlycoMimetics, Inc.* | | | 1,546,728 | |
| | 33,988 | | | Incyte Corp.* | | | 3,219,003 | |
| | 22,250 | | | Innate Pharma S.A.* | | | 126,809 | |
| | 138,403 | | | Ironwood Pharmaceuticals, Inc.* | | | 2,074,661 | |
| | 85,390 | | | Karyopharm Therapeutics, Inc.* | | | 819,744 | |
| | 68,938 | | | Loxo Oncology, Inc.* | | | 5,803,201 | |
| | 68,087 | | | Momenta Pharmaceuticals, Inc.* | | | 949,814 | |
| | 77,300 | | | Nightstar Therapeutics plc ADR* | | | 1,059,010 | |
| | 114,007 | | | Portola Pharmaceuticals, Inc.* | | | 5,549,861 | |
| | 10,094 | | | Regeneron Pharmaceuticals, Inc.* | | | 3,794,940 | |
| | 369,467 | | | Rigel Pharmaceuticals, Inc.* | | | 1,433,532 | |
| | 140,320 | | | Syndax Pharmaceuticals, Inc.* | | | 1,229,203 | |
| | 23,676 | | | TESARO, Inc.* | | | 1,962,030 | |
| | 177,518 | | | Trevena, Inc.* | | | 284,029 | |
| | 27,227 | | | Ultragenyx Pharmaceutical, Inc.* | | | 1,262,788 | |
| | 20,652 | | | UroGen Pharma Ltd.* | | | 768,461 | |
| | 37,618 | | | Vertex Pharmaceuticals, Inc.* | | | 5,637,434 | |
| | 25,566 | | | Zealand Pharma A/S ADR* | | | 347,698 | |
| | | | | | | | |
| | | | | | | 83,652,633 | |
| | | | | | | | |
| | | | Drug Retail - 1.5% | | | |
| | 55,215 | | | Walgreens Boots Alliance, Inc. | | | 4,009,713 | |
| | 6,865 | | | Zur Rose Group AG* | | | 922,895 | |
| | | | | | | | |
| | | | | | | 4,932,608 | |
| | | | | | | | |
| | | | Health Care Distributors - 3.2% | | | |
| | 63,636 | | | Cardinal Health, Inc. | | | 3,898,977 | |
| | 43,505 | | | McKesson Corp. | | | 6,784,605 | |
| | | | | | | | |
| | | | | | | 10,683,582 | |
| | | | | | | | |
| | | | Health Care Equipment - 21.8% | | | |
| | 133,970 | | | Abbott Laboratories | | | 7,645,668 | |
| | 75,609 | | | AtriCure, Inc.* | | | 1,379,108 | |
| | 28,998 | | | Baxter International, Inc. | | | 1,874,431 | |
| | 29,128 | | | Becton Dickinson and Co. | | | 6,235,140 | |
| | 385,255 | | | Boston Scientific Corp.* | | | 9,550,471 | |
| | 20,965 | | | Danaher Corp. | | | 1,945,971 | |
| | 32,240 | | | Edwards Lifesciences Corp.* | | | 3,633,770 | |
| | 143,117 | | | Globus Medical, Inc. Class A* | | | 5,882,109 | |
| | 44,164 | | | Hologic, Inc.* | | | 1,888,011 | |
| | 159,570 | | | K2M Group Holdings, Inc.* | | | 2,872,260 | |
| | 198,804 | | | Medtronic plc | | | 16,053,423 | |
| | 62,653 | | | Stryker Corp. | | | 9,701,191 | |
| | 14,716 | | | Teleflex, Inc. | | | 3,661,635 | |
| | 7,362 | | | Zimmer Biomet Holdings, Inc. | | | 888,373 | |
| | | | | | | | |
| | | | | | | 73,211,561 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.2% - (continued) | |
| | | | Health Care Facilities - 2.7% | | | |
| | 52,130 | | | Acadia Healthcare Co., Inc.* | | $ | 1,701,002 | |
| | 158,284 | | | Georgia Healthcare Group plc*(1) | | | 758,661 | |
| | 45,138 | | | HCA Healthcare, Inc.* | | | 3,964,922 | |
| | 25,483 | | | LifePoint Health, Inc.* | | | 1,269,053 | |
| | 11,417 | | | Universal Health Services, Inc. Class B | | | 1,294,117 | |
| | | | | | | | |
| | | | | | | 8,987,755 | |
| | | | | | | | |
| | | | Health Care Services - 1.1% | | | |
| | 53,898 | | | Envision Healthcare Corp.* | | | 1,862,715 | |
| | 48,468 | | | Teladoc, Inc.* | | | 1,689,110 | |
| | | | | | | | |
| | | | | | | 3,551,825 | |
| | | | | | | | |
| | | | Health Care Supplies - 0.7% | | | |
| | 25,646 | | | DENTSPLY SIRONA, Inc. | | | 1,688,276 | |
| | 110,190 | | | Endologix, Inc.* | | | 589,517 | |
| | 7,400 | | | OraSure Technologies, Inc.* | | | 139,564 | |
| | | | | | | | |
| | | | | | | 2,417,357 | |
| | | | | | | | |
| | | | Health Care Technology - 2.3% | | | |
| | 25,902 | | | athenahealth, Inc.* | | | 3,446,002 | |
| | 37,923 | | | Cerner Corp.* | | | 2,555,631 | |
| | 101,532 | | | HMS Holdings Corp.* | | | 1,720,967 | |
| | | | | | | | |
| | | | | | | 7,722,600 | |
| | | | | | | | |
| | | | Life Sciences Tools & Services - 3.2% | | | |
| | 14,698 | | | ICON plc* | | | 1,648,381 | |
| | 39,617 | | | NanoString Technologies, Inc.* | | | 295,939 | |
| | 45,792 | | | Thermo Fisher Scientific, Inc. | | | 8,694,985 | |
| | 19,000 | | | Wuxi Biologics Cayman, Inc.*(1) | | | 106,273 | |
| | | | | | | | |
| | | | | | | 10,745,578 | |
| | | | | | | | |
| | | | Managed Health Care - 12.2% | | | |
| | 9,294 | | | Aetna, Inc. | | | 1,676,545 | |
| | 28,884 | | | Anthem, Inc. | | | 6,499,189 | |
| | 30,643 | | | Cigna Corp. | | | 6,223,287 | |
| | 7,071 | | | Humana, Inc. | | | 1,754,103 | |
| | 97,390 | | | UnitedHealth Group, Inc. | | | 21,470,599 | |
| | 15,526 | | | WellCare Health Plans, Inc.* | | | 3,122,434 | |
| | | | | | | | |
| | | | | | | 40,746,157 | |
| | | | | | | | |
| | | | Pharmaceuticals - 24.6% | | | |
| | 69,134 | | | Allergan plc | | | 11,308,940 | |
| | 249,108 | | | AstraZeneca plc ADR | | | 8,644,048 | |
| | 234,815 | | | Bristol-Myers Squibb Co. | | | 14,389,463 | |
| | 31,270 | | | Chugai Pharmaceutical Co., Ltd. | | | 1,598,169 | |
| | 23,161 | | | Dermira, Inc.* | | | 644,107 | |
| | 63,590 | | | Eisai Co., Ltd. | | | 3,612,521 | |
| | 114,399 | | | Eli Lilly & Co. | | | 9,662,139 | |
| | 8,960 | | | Galenica AG*(1) | | | 459,914 | |
| | 16,822 | | | Hikma Pharmaceuticals plc | | | 257,002 | |
| | 48,607 | | | Impax Laboratories, Inc.* | | | 809,307 | |
| | 43,003 | | | Intersect ENT, Inc.* | | | 1,393,297 | |
| | 13,083 | | | Johnson & Johnson | | | 1,827,957 | |
| | 23,000 | | | Kala Pharmaceuticals, Inc.* | | | 425,270 | |
| | 104,897 | | | Medicines Co.* | | | 2,867,884 | |
| | 236,571 | | | MediWound Ltd.* | | | 1,052,741 | |
| | 125,262 | | | Mylan N.V.* | | | 5,299,835 | |
| | 94,379 | | | MyoKardia, Inc.* | | | 3,973,356 | |
| | 132,015 | | | Nabriva Therapeutics plc* | | | 789,450 | |
| | 98,320 | | | Ono Pharmaceutical Co., Ltd. | | | 2,287,091 | |
| | 80,594 | | | Revance Therapeutics, Inc.* | | | 2,881,235 | |
| | 39,470 | | | Shionogi & Co., Ltd. | | | 2,132,756 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.2% - (continued) | |
| | | | Pharmaceuticals - 24.6% - (continued) | | | |
| | 649,820 | | | Sino Biopharmaceutical Ltd. | | $ | 1,148,822 | |
| | 18,710 | | | Takeda Pharmaceutical Co., Ltd. | | | 1,059,317 | |
| | 58,247 | | | Teva Pharmaceutical Industries Ltd. ADR | | | 1,103,781 | |
| | 37,845 | | | UCB S.A. | | | 3,000,839 | |
| | | | | | | | |
| | | | | | | 82,629,241 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $269,296,485) | | $ | 329,280,897 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $269,296,485) | | $ | 329,280,897 | |
| | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 1.8% | | | |
| | | | Other Investment Pools & Funds - 1.8% | | | |
| | 6,130,763 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(2) | | $ | 6,130,763 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $6,130,763) | | $ | 6,130,763 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $275,427,248) | | | 100.0 | % | | $ | 335,411,660 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | (13,459 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 335,398,201 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $1,324,848, which represented 0.4% of total net assets. |
| (2) | Current yield as of period end. |
| † | 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Biotechnology | | $ | 83,652,633 | | | $ | 81,650,302 | | | $ | 2,002,331 | | | $ | — | |
Drug Retail | | | 4,932,608 | | | | 4,932,608 | | | | — | | | | — | |
Health Care Distributors | | | 10,683,582 | | | | 10,683,582 | | | | — | | | | — | |
Health Care Equipment | | | 73,211,561 | | | | 73,211,561 | | | | — | | | | — | |
Health Care Facilities | | | 8,987,755 | | | | 8,987,755 | | | | — | | | | — | |
Health Care Services | | | 3,551,825 | | | | 3,551,825 | | | | — | | | | — | |
Health Care Supplies | | | 2,417,357 | | | | 2,417,357 | | | | — | | | | — | |
Health Care Technology | | | 7,722,600 | | | | 7,722,600 | | | | — | | | | — | |
Life Sciences Tools & Services | | | 10,745,578 | | | | 10,745,578 | | | | — | | | | — | |
Managed Health Care | | | 40,746,157 | | | | 40,746,157 | | | | — | | | | — | |
Pharmaceuticals | | | 82,629,241 | | | | 67,072,810 | | | | 15,556,431 | | | | — | |
Short-Term Investments | | | 6,130,763 | | | | 6,130,763 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 335,411,660 | | | $ | 317,852,898 | | | $ | 17,558,762 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers from Level 1 to Level 2, investments valued at $411,328 were transferred from Level 2 to Level 1 due to the discontinuation of fair valuation factor and there were no transfers in and 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 High Yield HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | | | | | |
| 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)(4) | | $ | — | |
| | | | | | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $2,478,958) | | $ | — | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 91.3% | |
| | | | Aerospace/Defense - 0.4% | |
| | | | DAE Funding LLC | |
| | | | | 370,000 | | | 4.50%, 08/01/2022(2) | | $ | 363,525 | |
| | | | | 760,000 | | | 5.00%, 08/01/2024(2) | | | 750,500 | |
| | | | | | | | | | | | |
| | | | 1,114,025 | |
| | | | | | | | | | | | |
| | | | Biotechnology - 0.1% | |
| | | | | 370,000 | | | Sterigenics-Nordion Topco LLC (cash)
8.13%, 11/01/2021(2)(5) | | | 373,700 | |
| | | | | | | | | | | | |
| | | | Chemicals - 1.5% | |
| | | | Chemours Co. | |
| | | | | 1,875,000 | | | 6.63%, 05/15/2023 | | | 1,982,812 | |
| | | | | 305,000 | | | 7.00%, 05/15/2025 | | | 330,925 | |
| | | | | 2,160,000 | | | Platform Specialty Products Corp.
6.50%, 02/01/2022(2) | | | 2,232,900 | |
| | | | | | | | | | | | |
| | | | 4,546,637 | |
| | | | | | | | | | | | |
| | | | Coal - 1.5% | |
| | | | | 795,000 | | | Cloud Peak Energy Resources LLC / Cloud Peak Energy Finance Corp.
12.00%, 11/01/2021 | | | 856,613 | |
| | | | | 2,515,000 | | | Foresight Energy LLC / Foresight Energy Finance Corp.
11.50%, 04/01/2023(2) | | | 2,056,012 | |
| | | | | 1,535,000 | | | Warrior Met Coal, Inc.
8.00%, 11/01/2024(2) | | | 1,584,888 | |
| | | | | | | | | | | | |
| | | | 4,497,513 | |
| | | | | | | | | | | | |
| | | | Commercial Banks - 5.0% | |
| | | | Banco Bilbao Vizcaya Argentaria S.A. | |
| | | | | 1,800,000 | | | 5 year USD Swap + 3.870%, 6.13%, 11/16/2027(6)(7) | | | 1,856,250 | |
| | EUR | | | | 800,000 | | | 5 year EUR Swap + 6.155%, 7.00%, 02/19/2019(6)(7)(8) | | | 1,008,678 | |
| | | | | 400,000 | | | 5 year EUR Swap + 9.177%, 8.88%, 04/14/2021(6)(7)(8) | | | 568,729 | |
| | | | | 1,400,000 | | | Banco de Sabadell S.A.
5 year EUR Swap + 6.414%,
6.50%, 05/18/2022(6)(7)(8) | | | 1,759,881 | |
| | $ | | | | 800,000 | | | Barclays plc
5 year USD Swap + 6.772%,
7.88%, 03/15/2022(6)(7)(8) | | | 877,000 | |
| | | | BNP Paribas S.A. | |
| | | | | 260,000 | | | 5 year USD Swap + 2.838%, 5.13%, 11/15/2027(2)(6)(7) | | | 260,000 | |
| | | | | 1,080,000 | | | 5 year USD Swap + 6.314%, 7.63%, 03/30/2021(2)(6)(7) | | | 1,188,000 | |
| | | | | 101,000 | | | CIT Group, Inc.
5.38%, 05/15/2020 | | | 106,681 | |
| | | | | 690,000 | | | Credit Agricole S.A.
5 year USD Swap + 4.898%,
7.88%, 01/23/2024(2)(6)(7) | | | 780,563 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Commercial Banks - 5.0% - (continued) | |
| | $ | | | | 1,180,000 | | | Credit Suisse Group AG
5 year USD Swap + 3.455%,
6.25%, 12/18/2024(6)(7)(8) | | $ | 1,278,825 | |
| | | | | 790,000 | | | Freedom Mortgage Corp.
8.13%, 11/15/2024(2) | | | 804,812 | |
| | | | | 730,000 | | | Intesa Sanpaolo S.p.A.
5 year USD Swap + 5.462%,
7.70%, 09/17/2025(2)(6)(7) | | | 790,225 | |
| | | | Royal Bank of Scotland Group plc | |
| | | | | 1,300,000 | | | 3 mo. USD LIBOR + 2.320%, 4.02%, 09/30/2027(6)(7) | | | 1,290,250 | |
| | | | | 385,000 | | | 5 year USD Swap + 7.598%, 8.63%, 08/15/2021(6)(7) | | | 433,606 | |
| | | | | 640,000 | | | Societe Generale S.A.
5 year USD Swap + 6.394%,
8.25%, 11/29/2018(6)(7)(8) | | | 669,600 | |
| | | | | 1,200,000 | | | UniCredit S.p.A.
5 year USD Swap + 5.180%,
8.00%, 06/03/2024(6)(7)(8) | | | 1,313,275 | |
| | | | | | | | | | | | |
| | | | 14,986,375 | |
| | | | | | | | | | | | |
| | | | Commercial Services - 6.0% | |
| | | | | 420,000 | | | ACE Cash Express, Inc.
12.00%, 12/15/2022(2) | | | 434,700 | |
| | | | APX Group, Inc. | |
| | | | | 1,180,000 | | | 7.63%, 09/01/2023 | | | 1,241,950 | |
| | | | | 2,050,000 | | | 7.88%, 12/01/2022 | | | 2,196,062 | |
| | | | Avis Budget Car Rental LLC / Avis Budget Finance, Inc. | | | | |
| | | | | 1,875,000 | | | 5.25%, 03/15/2025(2) | | | 1,856,250 | |
| | | | | 985,000 | | | 5.50%, 04/01/2023 | | | 1,009,625 | |
| | | | | 2,544,000 | | | Brand Industrial Services, Inc.
8.50%, 07/15/2025(2) | | | 2,671,200 | |
| | | | | 2,410,000 | | | GW Honos Security Corp.
8.75%, 05/15/2025(2) | | | 2,590,750 | |
| | | | Herc Rentals, Inc. | |
| | | | | 760,000 | | | 7.50%, 06/01/2022(2) | | | 818,900 | |
| | | | | 1,353,000 | | | 7.75%, 06/01/2024(2) | | | 1,484,918 | |
| | | | | 2,105,000 | | | Hertz Corp.
5.50%, 10/15/2024(2) | | | 1,899,762 | |
| | | | | 385,000 | | | Service Corp. International
4.63%, 12/15/2027 | | | 390,629 | |
| | | | United Rentals North America, Inc. | |
| | | | | 440,000 | | | 4.63%, 10/15/2025 | | | 443,300 | |
| | | | | 875,000 | | | 5.88%, 09/15/2026 | | | 936,250 | |
| | | | | | | | | | | | |
| | | | 17,974,296 | |
| | | | | | | | | | | | |
| | | | Construction Materials - 2.0% | |
| | | | | 2,380,000 | | | Cemex Finance LLC
6.00%, 04/01/2024(2) | | | 2,504,950 | |
| | | | Jeld-Wen, Inc. | |
| | | | | 90,000 | | | 4.63%, 12/15/2025(2) | | | 90,675 | |
| | | | | 140,000 | | | 4.88%, 12/15/2027(2) | | | 141,400 | |
| | | | | 1,650,000 | | | Ply Gem Industries, Inc.
6.50%, 02/01/2022 | | | 1,703,625 | |
| | | | | 1,605,000 | | | Standard Industries, Inc.
5.38%, 11/15/2024(2) | | | 1,677,706 | |
| | | | | | | | | | | | |
| | | | 6,118,356 | |
| | | | | | | | | | | | |
| | | | Diversified Financial Services - 5.4% | |
| | | | | 665,000 | | | FBM Finance, Inc.
8.25%, 08/15/2021(2) | | | 706,562 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Diversified Financial Services - 5.4% - (continued) | |
| | $ | | | | 620,000 | | | Fly Leasing Ltd.
5.25%, 10/15/2024 | | $ | 620,000 | |
| | | | | 1,370,000 | | | goeasy Ltd.
7.88%, 11/01/2022(2) | | | 1,429,937 | |
| | | | | 2,760,000 | | | Nationstar Mortgage LLC / Nationstar Capital Corp.
6.50%, 07/01/2021 | | | 2,797,950 | |
| | | | Navient Corp. | |
| | | | | 417,000 | | | 5.50%, 01/25/2023 | | | 415,958 | |
| | | | | 365,000 | | | 5.63%, 08/01/2033 | | | 318,463 | |
| | | | | 1,641,000 | | | 5.88%, 10/25/2024 | | | 1,628,692 | |
| | | | | 2,070,000 | | | 6.13%, 03/25/2024 | | | 2,095,875 | |
| | | | | 815,000 | | | 6.50%, 06/15/2022 | | | 855,342 | |
| | | | | 917,000 | | | 7.25%, 09/25/2023 | | | 976,605 | |
| | | | | 280,000 | | | OneMain Financial Holdings LLC
6.75%, 12/15/2019(2) | | | 289,296 | |
| | | | Springleaf Finance Corp. | |
| | | | | 490,000 | | | 5.25%, 12/15/2019 | | | 504,088 | |
| | | | | 675,000 | | | 7.75%, 10/01/2021 | | | 742,500 | |
| | | | | 1,730,000 | | | 8.25%, 12/15/2020 | | | 1,903,000 | |
| | | | | 720,000 | | | Tempo Acquisition LLC / Tempo Acquisition Finance Corp.
6.75%, 06/01/2025(2) | | | 727,200 | |
| | | | | 285,000 | | | Vantiv LLC / Vanity Issuer Corp.
4.38%, 11/15/2025(2) | | | 288,614 | |
| | | | | | | | | | | | |
| | | | 16,300,082 | |
| | | | | | | | | | | | |
| | | | Electric - 0.8% | |
| | | | | 2,220,000 | | | AES Corp.
5.13%, 09/01/2027 | | | 2,331,000 | |
| | | | | 415,000 | | | Texas Competitive Electric Holdings Co. LLC
11.50%, 10/01/2020(1)(2)(3)(4)(9) | | | — | |
| | | | | | | | | | | | |
| | | | 2,331,000 | |
| | | | | | | | | | | | |
| | | | Electrical Components & Equipment - 0.3% | |
| | | | | 910,000 | | | General Cable Corp.
5.75%, 10/01/2022 | | | 942,988 | |
| | | | | | | | | | | | |
| | | | Entertainment - 3.6% | |
| | | | | 1,150,000 | | | CRC Escrow Issuer LLC
5.25%, 10/15/2025(2) | | | 1,158,625 | |
| | | | | 1,350,000 | | | Eldorado Resorts, Inc.
6.00%, 04/01/2025 | | | 1,410,750 | |
| | | | | 1,655,000 | | | Jacobs Entertainment, Inc.
7.88%, 02/01/2024(2) | | | 1,770,850 | |
| | | | | 1,880,000 | | | Penn National Gaming, Inc.
5.63%, 01/15/2027(2) | | | 1,950,500 | |
| | | | | 1,225,000 | | | Pinnacle Entertainment, Inc.
5.63%, 05/01/2024 | | | 1,310,750 | |
| | | | | 835,000 | | | Rivers Pittsburgh Borrower L.P. / Rivers Pittsburgh Finance Corp.
6.13%, 08/15/2021(2) | | | 828,737 | |
| | | | | 195,000 | | | Scientific Games International, Inc.
5.00%, 10/15/2025(2) | | | 195,488 | |
| | | | | 1,150,000 | | | 6.63%, 05/15/2021 | | | 1,187,375 | |
| | | | | 770,000 | | | 10.00%, 12/01/2022 | | | 845,075 | |
| | | | | 325,000 | | | WMG Acquisition Corp.
5.00%, 08/01/2023(2) | | | 336,375 | |
| | | | | | | | | | | | |
| | | | 10,994,525 | |
| | | | | | | | | | | | |
| | | | Environmental Control - 0.1% | |
| | | | | 397,000 | | | Tervita Escrow Corp.
7.63%, 12/01/2021(2) | | | 397,993 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Food - 1.9% | |
| | $ | | | | 2,510,000 | | | Post Holdings, Inc.
5.00%, 08/15/2026(2) | | $ | 2,469,213 | |
| | | | | 640,000 | | | 5.63%, 01/15/2028(2) | | | 643,392 | |
| | | | | 660,000 | | | 5.75%, 03/01/2027(2) | | | 671,550 | |
| | | | | 2,045,000 | | | TreeHouse Foods, Inc.
4.88%, 03/15/2022 | | | 2,068,006 | |
| | | | | | | | | | | | |
| | | | 5,852,161 | |
| | | | | | | | | | | | |
| | | | Healthcare - Products - 1.0% | |
| | | | | 2,895,000 | | | Sterigenics-Nordion Holdings LLC
6.50%, 05/15/2023(2) | | | 3,018,038 | |
| | | | | | | | | | | | |
| | | | Healthcare - Services - 3.2% | |
| | | | | 370,000 | | | Envision Healthcare Corp.
5.13%, 07/01/2022(2) | | | 358,900 | |
| | | | | 940,000 | | | 5.63%, 07/15/2022 | | | 949,400 | |
| | | | | 1,835,000 | | | HCA Healthcare, Inc.
6.25%, 02/15/2021 | | | 1,945,100 | |
| | | | HCA, Inc. | |
| | | | | 1,340,000 | | | 5.25%, 06/15/2026 | | | 1,420,400 | |
| | | | | 1,085,000 | | | 5.38%, 02/01/2025 | | | 1,122,975 | |
| | | | | 1,599,000 | | | 7.50%, 11/15/2095 | | | 1,634,977 | |
| | | | | 350,000 | | | MPH Acquisition Holdings LLC
7.13%, 06/01/2024(2) | | | 372,750 | |
| | | | | 1,740,000 | | | West Street Merger Sub, Inc.
6.38%, 09/01/2025(2) | | | 1,744,350 | |
| | | | | | | | | | | | |
| | | | 9,548,852 | |
| | | | | | | | | | | | |
| | | | Home Builders - 2.8% | |
| | | | | 1,690,000 | | | AV Homes, Inc.
6.63%, 05/15/2022 | | | 1,776,612 | |
| | | | | 370,000 | | | Beazer Homes USA, Inc.
5.88%, 10/15/2027(2) | | | 371,850 | |
| | | | | 525,000 | | | 6.75%, 03/15/2025 | | | 553,219 | |
| | | | | 1,120,000 | | | 8.75%, 03/15/2022 | | | 1,234,688 | |
| | | | | 1,880,000 | | | KB Home
8.00%, 03/15/2020 | | | 2,058,600 | |
| | 150,000 | | | M/I Homes, Inc.
5.63%, 08/01/2025 | | | 152,238 | |
| | | | | 2,115,000 | | | 6.75%, 01/15/2021 | | | 2,189,025 | |
| | | | | | | | | | | | |
| | | | 8,336,232 | |
| | | | | | | | | | | | |
| | | | Household Products - 0.5% | |
| | | | | 2,400,000 | | | Revlon Consumer Products Corp.
6.25%, 08/01/2024 | | | 1,464,000 | |
| | | | | | | | | | | | |
| | | | Household Products/Wares - 0.5% | |
| | EUR | | | | 1,320,000 | | | Diamond (BC) B.V.
5.63%, 08/15/2025(2) | | | 1,588,236 | |
| | | | | | | | | | | | |
| | | | Housewares - 0.8% | |
| | $ | | | | 2,270,000 | | | American Greetings Corp.
7.88%, 02/15/2025(2) | | | 2,451,600 | |
| | | | | | | | | | | | |
| | | | Insurance - 1.5% | |
| | 110,000 | | | Genworth Holdings, Inc.
4.80%, 02/15/2024 | | | 93,500 | |
| | | | | 770,000 | | | 4.90%, 08/15/2023 | | | 656,425 | |
| | | | | 440,000 | | | 7.20%, 02/15/2021 | | | 429,000 | |
| | | | | 245,000 | | | 7.63%, 09/24/2021 | | | 239,488 | |
| | | | | 145,000 | | | 7.70%, 06/15/2020 | | | 145,906 | |
| | | | | 415,000 | | | MGIC Investment Corp.
5.75%, 08/15/2023 | | | 453,906 | |
| | | | | 710,000 | | | Radian Group, Inc.
4.50%, 10/01/2024 | | | 727,395 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Insurance - 1.5% - (continued) | |
| | | | | 1,910,000 | | | USIS Merger Sub, Inc.
6.88%, 05/01/2025(2) | | $ | 1,929,100 | |
| | | | | | | | | | | | |
| | | | 4,674,720 | |
| | | | | | | | | | | | |
| | | | Internet - 1.7% | |
| | | | | 2,105,000 | | | Netflix, Inc.
5.88%, 02/15/2025 | | | 2,236,562 | |
| | 2,145,000 | | | Zayo Group LLC / Zayo Capital, Inc.
6.00%, 04/01/2023 | | | 2,234,125 | |
| | | | | 605,000 | | | 6.38%, 05/15/2025 | | | 639,788 | |
| | | | | | | | | | | | |
| | | | 5,110,475 | |
| | | | | | | | | | | | |
| | | | Iron/Steel - 1.5% | |
| | | | | 1,015,000 | | | AK Steel Corp.
7.63%, 10/01/2021 | | | 1,053,062 | |
| | | | | 650,000 | | | Signode Industrial Group U.S., Inc.
6.38%, 05/01/2022(2) | | | 679,250 | |
| | 230,000 | | | Steel Dynamics, Inc.
4.13%, 09/15/2025(2) | | | 231,725 | |
| | | | | 1,130,000 | | | 5.50%, 10/01/2024 | | | 1,200,625 | |
| | | | | 1,308,000 | | | United States Steel Corp.
8.38%, 07/01/2021(2) | | | 1,419,834 | |
| | | | | | | | | | | | |
| | | | 4,584,496 | |
| | | | | | | | | | | | |
| | | | IT Services - 0.6% | |
| | | | | 1,480,000 | | | Conduent Finance, Inc. / Conduent Business Services LLC
10.50%, 12/15/2024(2) | | | 1,728,344 | |
| | | | | | | | | | | | |
| | | | Lodging - 2.5% | |
| | | | | 920,000 | | | Boyd Gaming Corp.
6.38%, 04/01/2026 | | | 991,300 | |
| | | | | 1,935,000 | | | FelCor Lodging L.P.
6.00%, 06/01/2025 | | | 2,041,425 | |
| | | | | 1,630,000 | | | Jack Ohio Finance LLC / Jack Ohio Finance Corp.
6.75%, 11/15/2021(2) | | | 1,715,575 | |
| | | | | 1,170,000 | | | Station Casinos LLC
5.00%, 10/01/2025(2) | | | 1,175,850 | |
| | | | | 1,585,000 | | | Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp.
5.88%, 05/15/2025(2) | | | 1,505,750 | |
| | | | | | | | | | | | |
| | | | 7,429,900 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Construction & Mining - 0.6% | |
| | | | | 1,605,000 | | | BlueLine Rental Finance Corp. / BlueLine Rental LLC
9.25%, 03/15/2024(2) | | | 1,713,338 | |
| | | | | | | | | | | | |
| | | | Machinery-Diversified - 0.7% | |
| | | | | 1,935,000 | | | Cloud Crane LLC
10.13%, 08/01/2024(2) | | | 2,181,713 | |
| | | | | | | | | | | | |
| | | | Media - 7.5% | |
| | | | | | | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| | 120,000 | | | 5.13%, 02/15/2023 | | | 122,700 | |
| | | | | 245,000 | | | 5.13%, 05/01/2023(2) | | | 249,900 | |
| | | | | 95,000 | | | 5.25%, 09/30/2022 | | | 97,375 | |
| | | | | 545,000 | | | 5.75%, 09/01/2023 | | | 561,350 | |
| | | | | 105,000 | | | 5.75%, 01/15/2024 | | | 107,888 | |
| | | | | 1,355,000 | | | 5.75%, 02/15/2026(2) | | | 1,407,506 | |
| | | | | 1,775,000 | | | Cequel Communications Holdings I LLC / Cequel Capital Corp.
5.13%, 12/15/2021(2) | | | 1,779,438 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Media - 7.5% - (continued) | |
| | $ | | | | 1,195,000 | | | CSC Holdings LLC
5.25%, 06/01/2024 | | $ | 1,177,075 | |
| | | | | 760,000 | | | 10.13%, 01/15/2023(2) | | | 855,950 | |
| | 2,170,000 | | | DISH DBS Corp.
5.00%, 03/15/2023 | | | 2,050,650 | |
| | | | | 1,095,000 | | | 5.88%, 07/15/2022 | | | 1,100,475 | |
| | | | | 945,000 | | | 6.75%, 06/01/2021 | | | 992,250 | |
| | | | | 556,000 | | | 7.88%, 09/01/2019 | | | 594,920 | |
| | 1,255,000 | | | Gray Television, Inc.
5.13%, 10/15/2024(2) | | | 1,251,863 | |
| | | | | 380,000 | | | 5.88%, 07/15/2026(2) | | | 389,500 | |
| | | | | 1,175,000 | | | Liberty Interactive LLC
8.25%, 02/01/2030 | | | 1,274,875 | |
| | | | | 2,370,000 | | | SFR Group S.A.
7.38%, 05/01/2026(2) | | | 2,432,212 | |
| | 520,000 | | | Sinclair Television Group, Inc.
5.13%, 02/15/2027(2) | | | 515,450 | |
| | | | | 1,055,000 | | | 5.88%, 03/15/2026(2) | | | 1,097,200 | |
| | 1,515,000 | | | TEGNA, Inc.
4.88%, 09/15/2021(2) | | | 1,545,300 | |
| | | | | 1,528,000 | | | 5.13%, 10/15/2019 | | | 1,550,003 | |
| | | | | 1,565,000 | | | Tribune Media Co.
5.88%, 07/15/2022 | | | 1,608,037 | |
| | | | | | | | | | | | |
| | | | 22,761,917 | |
| | | | | | | | | | | | |
| | | | Metal Fabricate/Hardware - 0.7% | |
| | 605,000 | | | Novelis Corp.
5.88%, 09/30/2026(2) | | | 617,100 | |
| | | | | 1,115,000 | | | 6.25%, 08/15/2024(2) | | | 1,167,963 | |
| | | | | 340,000 | | | TriMas Corp.
4.88%, 10/15/2025(2) | | | 341,275 | |
| | | | | | | | | | | | |
| | | | 2,126,338 | |
| | | | | | | | | | | | |
| | | | Mining - 2.0% | |
| | | | | 520,000 | | | Constellium N.V.
5.88%, 02/15/2026(2) | | | 529,750 | |
| | | | | | | | First Quantum Minerals Ltd.
| | | | |
| | 760,000 | | | 7.00%, 02/15/2021(2) | | | 788,500 | |
| | | | | 615,000 | | | 7.50%, 04/01/2025(2) | | | 667,275 | |
| | | | | 1,290,000 | | | Kaiser Aluminum Corp.
5.88%, 05/15/2024 | | | 1,370,625 | |
| | | | | | | | New Gold, Inc. | | | | |
| | 105,000 | | | 6.25%, 11/15/2022(2) | | | 108,412 | |
| | | | | 870,000 | | | 6.38%, 05/15/2025(2) | | | 922,200 | |
| | | | | 630,000 | | | Northwest Acquisitions ULC / Dominion Finco, Inc.
7.13%, 11/01/2022(2) | | | 650,475 | |
| | | | | 970,000 | | | Teck Resources Ltd.
8.50%, 06/01/2024(2) | | | 1,096,100 | |
| | | | | | | | | | | | |
| | | | 6,133,337 | |
| | | | | | | | | | | | |
| | | | Miscellaneous Manufacturing - 0.6% | |
| | | | | 1,785,000 | | | Bombardier, Inc.
6.13%, 01/15/2023(2) | | | 1,749,300 | |
| | | | | | | | | | | | |
| | | | Office/Business Equipment - 0.7% | |
| | 885,000 | | | CDW LLC / CDW Finance Corp.
5.00%, 09/01/2023 | | | 914,869 | |
| | | | | 970,000 | | | 5.50%, 12/01/2024 | | | 1,054,875 | |
| | | | | | | | | | | | |
| | | | 1,969,744 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Oil & Gas - 9.9% | |
| | $ | | | | 2,260,000 | | | Blue Racer Midstream LLC / Blue Racer Finance Corp.
6.13%, 11/15/2022(2) | | $ | 2,356,050 | |
| | | | | 2,370,000 | | | California Resources Corp.
8.00%, 12/15/2022(2) | | | 1,955,250 | |
| | 475,000 | | | Continental Resources, Inc.
3.80%, 06/01/2024 | | | 469,656 | |
| | | | | 265,000 | | | 4.50%, 04/15/2023 | | | 270,300 | |
| | | | | 2,015,000 | | | 4.90%, 06/01/2044 | | | 1,924,325 | |
| | | | | 1,005,000 | | | 5.00%, 09/15/2022 | | | 1,020,075 | |
| | | | | 2,100,000 | | | Denbury Resources, Inc.
9.00%, 05/15/2021(2) | | | 2,144,625 | |
| | | | | 1,430,000 | | | Energen Corp.
4.63%, 09/01/2021 | | | 1,447,875 | |
| | | | | 1,540,000 | | | Ensco plc
5.75%, 10/01/2044 | | | 1,054,900 | |
| | 740,000 | | | Laredo Petroleum, Inc.
5.63%, 01/15/2022 | | | 747,400 | |
| | | | | 415,000 | | | 6.25%, 03/15/2023 | | | 429,649 | |
| | 220,000 | | | MEG Energy Corp.
6.38%, 01/30/2023(2) | | | 187,000 | |
| | | | | 1,090,000 | | | 6.50%, 01/15/2025(2) | | | 1,076,375 | |
| | | | | 910,000 | | | 7.00%, 03/31/2024(2) | | | 767,812 | |
| | | | | 1,220,000 | | | Noble Holding International Ltd.
7.75%, 01/15/2024 | | | 1,049,200 | |
| | 1,895,000 | | | QEP Resources, Inc.
5.25%, 05/01/2023 | | | 1,917,475 | |
| | | | | 205,000 | | | 5.38%, 10/01/2022 | | | 209,613 | |
| | | | | 280,000 | | | 5.63%, 03/01/2026 | | | 283,850 | |
| | | | | 245,000 | | | 6.80%, 03/01/2020 | | | 257,863 | |
| | | | | 870,000 | | | Rowan Cos., Inc.
5.85%, 01/15/2044 | | | 678,600 | |
| | | | | 1,680,000 | | | SM Energy Co.
5.00%, 01/15/2024 | | | 1,620,150 | |
| | | | | 240,000 | | | 6.13%, 11/15/2022 | | | 244,500 | |
| | | | | 115,000 | | | 6.50%, 11/15/2021 | | | 116,438 | |
| | 365,000 | | | Transocean, Inc.
6.80%, 03/15/2038 | | | 292,913 | |
| | | | | 110,000 | | | 7.50%, 04/15/2031 | | | 97,350 | |
| | | | | 435,000 | | | 9.35%, 12/15/2041 | | | 420,862 | |
| | 690,000 | | | Tullow Oil plc
6.00%, 11/01/2020(2) | | | 696,072 | |
| | | | | 1,230,000 | | | 6.25%, 04/15/2022(2) | | | 1,234,674 | |
| | | | | 1,875,000 | | | Vine Oil & Gas L.P. / Vine Oil & Gas Finance Corp.
8.75%, 04/15/2023(2) | | | 1,818,750 | |
| | 1,170,000 | | | WPX Energy, Inc.
5.25%, 09/15/2024 | | | 1,165,963 | |
| | | | | 1,420,000 | | | 6.00%, 01/15/2022 | | | 1,483,900 | |
| | | | | 295,000 | | | 8.25%, 08/01/2023 | | | 334,825 | |
| | | | | | | | | | | | |
| | | | 29,774,290 | |
| | | | | | | | | | | | |
| | | | Oil & Gas Services - 0.3% | |
| | | | | 250,000 | | | Weatherford International Ltd.
5.95%, 04/15/2042 | | | 195,000 | |
| | | | | 660,000 | | | 6.50%, 08/01/2036 | | | 542,850 | |
| | | | | 250,000 | | | 7.00%, 03/15/2038 | | | 210,000 | |
| | | | | | | | | | | | |
| | | | 947,850 | |
| | | | | | | | | | | | |
| | | | Packaging & Containers - 4.7% | |
| | | | | 1,700,000 | | | ARD Finance S.A. (cash)
7.13%, 09/15/2023(5) | | | 1,776,500 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Packaging & Containers - 4.7% - (continued) | |
| | | | | | | | Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. | | | | |
| | $ | | | | 2,065,000 | | | 6.00%, 06/30/2021(2) | | $ | 2,119,206 | |
| | | | | 340,000 | | | 6.00%, 02/15/2025(2) | | | 357,850 | |
| | | | | 305,000 | | | 7.25%, 05/15/2024(2) | | | 332,069 | |
| | | | | 2,060,000 | | | Berry Global, Inc.
6.00%, 10/15/2022 | | | 2,157,850 | |
| | | | | 1,875,000 | | | Flex Acquisition Co., Inc.
6.88%, 01/15/2025(2) | | | 1,941,750 | |
| | | | | 1,410,000 | | | Multi-Color Corp.
4.88%, 11/01/2025(2) | | | 1,415,287 | |
| | | | | 535,000 | | | OI European Group B.V.
4.00%, 03/15/2023(2) | | | 535,722 | |
| | | | | 445,000 | | | Plastipak Holdings, Inc.
6.25%, 10/15/2025(2) | | | 455,013 | |
| | 2,070,000 | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu
5.13%, 07/15/2023(2) | | | 2,142,450 | |
| | | | | 805,000 | | | 7.00%, 07/15/2024(2) | | | 861,350 | |
| | | | | | | | | | | | |
| | | | 14,095,047 | |
| | | | | | | | | | | | |
| | | | Pharmaceuticals - 4.0% | |
| | | | | 280,000 | | | Catalent Pharma Solutions, Inc.
4.88%, 01/15/2026(2) | | | 281,050 | |
| | 736,000 | | | Endo Finance LLC
6.00%, 07/15/2023(2) | | | 577,760 | |
| | | | | 3,075,000 | | | 6.00%, 02/01/2025(2) | | | 2,383,125 | |
| | | | | 910,000 | | | Teva Pharmaceutical Finance IV LLC
2.25%, 03/18/2020 | | | 880,006 | |
| | | | | 1,320,000 | | | Valeant Pharmaceuticals International, Inc.
5.50%, 03/01/2023(2) | | | 1,207,800 | |
| | | | | 5,830,000 | | | 5.88%, 05/15/2023(2) | | | 5,407,325 | |
| | | | | 1,230,000 | | | 6.13%, 04/15/2025(2) | | | 1,125,450 | |
| | | | | 240,000 | | | 7.00%, 03/15/2024(2) | | | 256,800 | |
| | | | | | | | | | | | |
| | | | 12,119,316 | |
| | | | | | | | | | | | |
| | | | Pipelines - 0.7% | |
| | 230,000 | | | Energy Transfer Equity L.P.
4.25%, 03/15/2023 | | | 228,275 | |
| | | | | 1,773,000 | | | 7.50%, 10/15/2020 | | | 1,950,300 | |
| | | | | | | | | | | | |
| | | | 2,178,575 | |
| | | | | | | | | | | | |
| | | | REITS - 0.3% | |
| | | | | 760,000 | | | Equinix, Inc.
5.88%, 01/15/2026 | | | 816,050 | |
| | | | | | | | | | | | |
| | | | Retail - 4.0% | |
| | | | | 3,670,000 | | | 1011778 BC ULC / New Red Finance, Inc.
5.00%, 10/15/2025(2) | | | 3,697,525 | |
| | | | | 895,000 | | | Beacon Escrow Corp.
4.88%, 11/01/2025(2) | | | 898,356 | |
| | | | | 1,945,000 | | | CEC Entertainment, Inc.
8.00%, 02/15/2022 | | | 1,828,300 | |
| | | | | 1,440,000 | | | Party City Holdings, Inc.
6.13%, 08/15/2023(2) | | | 1,486,800 | |
| | | | | 1,200,000 | | | Staples, Inc.
8.50%, 09/15/2025(2) | | | 1,110,000 | |
| | | | | 2,890,000 | | | United Rentals North America, Inc.
4.88%, 01/15/2028 | | | 2,904,450 | |
| | | | | | | | | | | | |
| | | | 11,925,431 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 91.3% - (continued) | |
| | | | Semiconductors - 1.6% | |
| | $ | | | | 480,000 | | | Entegris, Inc.
4.63%, 02/10/2026(2) | | $ | 487,200 | |
| | | | | 1,865,000 | | | Micron Technology, Inc.
5.50%, 02/01/2025 | | | 1,951,256 | |
| | 1,221,000 | | | Sensata Technologies B.V.
5.00%, 10/01/2025(2) | | | 1,291,208 | |
| | | | | 900,000 | | | 5.63%, 11/01/2024(2) | | | 988,875 | |
| | | | | | | | | | | | |
| | | | 4,718,539 | |
| | | | | | | | | | | | |
| | | | Software - 3.8% | |
| | | | | 1,060,000 | | | Camelot Finance S.A.
7.88%, 10/15/2024(2) | | | 1,131,550 | |
| | | | | 980,000 | | | Change Healthcare Holdings LLC / Change Healthcare Finance, Inc.
5.75%, 03/01/2025(2) | | | 980,000 | |
| | 1,425,000 | | | First Data Corp.
5.38%, 08/15/2023(2) | | | 1,483,282 | |
| | | | | 2,391,000 | | | 5.75%, 01/15/2024(2) | | | 2,474,685 | |
| | | | | 1,580,000 | | | 7.00%, 12/01/2023(2) | | | 1,670,850 | |
| | | | | 684,000 | | | Infor Software Parent LLC (cash)
7.13%, 05/01/2021(2)(5) | | | 699,390 | |
| | | | | 2,075,000 | | | Infor U.S., Inc.
6.50%, 05/15/2022 | | | 2,147,625 | |
| | | | | 780,000 | | | Workday, Inc.
0.25%, 10/01/2022(2) | | | 771,225 | |
| | | | | | | | | | | | |
| | | | 11,358,607 | |
| | | | | | | | | | | | |
| | | | Telecommunications - 3.6% | |
| | 380,000 | | | Altice Financing S.A.
6.63%, 02/15/2023(2) | | | 397,898 | |
| | | | | 2,270,000 | | | 7.50%, 05/15/2026(2) | | | 2,417,550 | |
| | 175,000 | | | Nokia Oyj
3.38%, 06/12/2022 | | | 173,915 | |
| | | | | 180,000 | | | 4.38%, 06/12/2027 | | | 177,930 | |
| | | | | 800,000 | | | Sprint Capital Corp.
6.88%, 11/15/2028 | | | 805,000 | |
| | 416,000 | | | Sprint Corp.
7.13%, 06/15/2024 | | | 423,280 | |
| | | | | 2,495,000 | | | 7.25%, 09/15/2021 | | | 2,641,581 | |
| | | | | 85,000 | | | 7.63%, 02/15/2025 | | | 89,038 | |
| | | | | 3,479,000 | | | 7.88%, 09/15/2023 | | | 3,705,135 | |
| | | | | | | | | | | | |
| | | | 10,831,327 | |
| | | | | | | | | | | | |
| | | | Transportation - 0.4% | |
| | | | | 1,290,000 | | | Hertz Corp.
7.63%, 06/01/2022(2) | | | 1,351,275 | |
| | | | | | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $266,912,695) | | $ | 275,116,538 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SENIOR FLOATING RATE INTERESTS - 1.8%(10) | |
| | | | Healthcare-Products - 0.4% | |
| | | | | 1,152,813 | | | INC Research LLC
1 mo. USD LIBOR + 2.250%, 3.82%, 08/01/2024 | | $ | 1,153,539 | |
| | | | | | | | | | | | |
| | | | Household Products - 0.2% | |
| | | | | 480,000 | | | Diamond (BC) B.V.
2 mo. USD LIBOR + 3.000%, 4.42%, 09/06/2024 | | | 480,288 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 1.8%(10) - (continued) | |
| | | | Internet - 0.4% | |
| | $ | | | | 1,260,000 | | | Lands’ End, Inc.
1 mo. USD LIBOR + 3.250%, 4.82%, 04/04/2021 | | $ | 1,119,435 | |
| | | | | | | | | | | | |
| | | | Leisure Time - 0.6% | |
| | | | | 1,970,000 | | | Golden Entertainment, Inc.
1 mo. USD LIBOR + 3.000%, 4.51%, 10/21/2024 | | | 1,971,635 | |
| | | | | | | | | | | | |
| | | | Machinery-Diversified - 0.2% | |
| | | | | 680,526 | | | Gardner Denver, Inc.
3 mo. USD LIBOR + 2.750%, 4.44%, 07/30/2024 | | | 682,411 | |
| | | | | | | | | | | | |
| | |
| | | | Total Senior Floating Rate Interests
(cost $5,522,846) | | $ | 5,407,308 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CONVERTIBLE BONDS - 1.6% | |
| | | | Commercial Services - 0.2% | |
| | | | | 690,000 | | | Cardtronics, Inc.
1.00%, 12/01/2020 | | $ | 611,944 | |
| | | | | | | | | | | | |
| | | | Media - 0.5% | |
| | | | | 1,110,000 | | | DISH Network Corp.
3.38%, 08/15/2026 | | | 1,207,819 | |
| | | | | 400,000 | | | Liberty Media Corp-Liberty Formula One
1.00%, 01/30/2023(2) | | | 446,500 | |
| | | | | | | | | | | | |
| | | | 1,654,319 | |
| | | | | | | | | | | | |
| | | | Oil & Gas - 0.2% | |
| | | | | 1,790,000 | | | Cobalt International Energy, Inc.
2.63%, 12/01/2019 | | | 470,994 | |
| | | | | | | | | | | | |
| | | | Semiconductors - 0.4% | |
| | 565,000 | | | Microchip Technology, Inc.
1.63%, 02/15/2027(2) | | | 662,109 | |
| | | | | 589,000 | | | 2.25%, 02/15/2037(2) | | | 692,075 | |
| | | | | | | | | | | | |
| | | | 1,354,184 | |
| | | | | | | | | | | | |
| | | | Software - 0.3% | |
| | | | | 726,000 | | | ServiceNow, Inc.
0.00%, 06/01/2022(2)(11) | | | 830,816 | |
| | | | | | | | | | | | |
| | |
| | | | Total Convertible Bonds
(cost $6,216,950) | | $ | 4,922,257 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| COMMON STOCKS - 0.7% | |
| | | | Banks - 0.2% | |
| | | | | 49,207 | | | MGIC Investment Corp.* | | $ | 694,311 | |
| | | | | | | | | | | | |
| | | | Energy - 0.5% | |
| | | | | 206,275,142 | | | KCA Deutag*(1)(2)(3)(9) | | | 1,309,228 | |
| | | | | 82,554 | | | Vistra Energy Corp. | | | 74,299 | |
| | | | | | | | | | | | |
| | | | 1,383,527 | |
| | | | | | | | | | | | |
| | | | Utilities - 0.0% | |
| | | | | 4,525,000 | | | TCEH Corp.*(1)(3)(9) | | | 4 | |
| | | | | | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $3,195,090) | | $ | 2,077,842 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| PREFERRED STOCKS - 0.1% | |
| | | | Diversified Financials - 0.1% | |
| | $ | | | | 16,525 | | | GMAC Capital Trust Series 2
3 mo. USD LIBOR + 5.785%, 7.20%(7) | | $ | 428,824 | |
| | | | | | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $433,019) | | $ | 428,824 | |
| | | | | | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $284,759,558) | | $ | 287,952,769 | |
| | | | | | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.4% | |
| | | | Other Investment Pools & Funds - 2.4% | |
| | | | | 7,135,513 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(12) | | $ | 7,135,513 | |
| | | | | | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $7,135,513) | | $ | 7,135,513 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | Total Investments
(cost $291,895,071) | | | 97.9 | % | | $ | 295,088,282 | |
| | | | | | | | Other Assets and Liabilities | | | 2.1 | % | | | 6,401,588 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | Total Net Assets | | | 100.0 | % | | $ | 301,489,870 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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 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. |
| (1) | Investment valued using significant unobservable inputs. |
| (2) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $146,484,552, which represented 48.6% of total net assets. |
| (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 December 31, 2017, the aggregate fair value of these securities was $1,309,232, which represented 0.4% 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) | Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. |
| (5) | Security has the ability to pay in kind (“PIK”) or pay income in cash. When applicable, separate rates of such payments are disclosed. |
| (6) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (7) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2017. |
| (8) | 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 December 31, 2017, the aggregate value of these securities was $7,475,988, which represented 2.5% of total net assets. |
| (9) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $1,309,232, which represents 0.4% of total net assets. |
| (10) | 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 rate in effect as of December 31, 2017. |
| (11) | Security is a zero-coupon bond. |
| (12) | Current yield as of period end. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2017 | |
Amount and Description
of Currency to be
Purchased | | | Amount and Description
of Currency to be
Sold | | Counterparty | | Settlement
Date | | Appreciation | | | Depreciation | |
| | 2,461,448 | | | | USD | | | | 2,069,000 | | | EUR | | CBK | | 01/31/18 | | $ | — | | | $ | (25,758 | ) |
| | 2,453,623 | | | | USD | | | | 2,070,000 | | | EUR | | BOA | | 01/31/18 | | | — | | | | (34,785 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | $ | — | | | $ | (60,543 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
BOA | | Banc of America Securities LLC |
CBK | | Citibank NA |
|
| Currency Abbreviations: |
EUR | | Euro |
USD | | United States Dollar |
|
| Other Abbreviations: |
LIBOR | | London Interbank Offered Rate |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | — | | | $ | — | | | $ | — | | | $ | 0 | |
Corporate Bonds | | | 275,116,538 | | | | — | | | | 275,116,538 | | | | — | |
Senior Floating Rate Interests | | | 5,407,308 | | | | — | | | | 5,407,308 | | | | — | |
Convertible Bonds | | | 4,922,257 | | | | — | | | | 4,922,257 | | | | — | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | | 694,311 | | | | 694,311 | | | | — | | | | — | |
Energy | | | 1,383,527 | | | | — | | | | 74,299 | | | | 1,309,228 | |
Utilities | | | 4 | | | | — | | | | — | | | | 4 | |
Preferred Stocks | | | 428,824 | | | | 428,824 | | | | — | | | | — | |
Short-Term Investments | | | 7,135,513 | | | | 7,135,513 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 295,088,282 | | | $ | 8,258,648 | | | $ | 285,520,402 | | | $ | 1,309,232 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Foreign Currency Contracts(2) | | $ | (60,543 | ) | | $ | — | | | $ | (60,543 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (60,543 | ) | | $ | — | | | $ | (60,543 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the period ended December 31, 2017 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% | |
| | | | Argentina - 0.3% | |
| | 198,996 | | | YPF S.A. ADR | | $ | 4,558,998 | |
| | | | | | | | |
| | | | Australia - 0.4% | |
| | 525,689 | | | Treasury Wine Estates Ltd. | | | 6,523,254 | |
| | | | | | | | |
| | | | Brazil - 0.8% | |
| | 1,006,390 | | | Itau Unibanco Holding S.A. ADR | | | 13,083,070 | |
| | | | | | | | |
| | | | Canada - 8.0% | |
| | 407,575 | | | Canadian National Railway Co. | | | 33,607,915 | |
| | 452,563 | | | Canadian Natural Resources Ltd. | | | 16,172,737 | |
| | 1,286,824 | | | Encana Corp. | | | 17,167,891 | |
| | 354,784 | | | Magna International, Inc. | | | 20,107,249 | |
| | 1,122,639 | | | Manulife Financial Corp. | | | 23,417,338 | |
| | 306,807 | | | TransCanada Corp. | | | 14,932,738 | |
| | | | | | | | |
| | | | | | | 125,405,868 | |
| | | | | | | | |
| | | | China - 12.4% | |
| | 226,000 | | | AAC Technologies Holdings, Inc. | | | 3,999,849 | |
| | 187,071 | | | Alibaba Group Holding Ltd. ADR* | | | 32,256,653 | |
| | 11,607,000 | | | China Construction Bank Corp. Class H | | | 10,684,850 | |
| | 3,601,500 | | | China Merchants Bank Co., Ltd. Class H | | | 14,258,564 | |
| | 287,621 | | | Ctrip.com International Ltd. ADR* | | | 12,684,086 | |
| | 1,223,000 | | | ENN Energy Holdings Ltd. | | | 8,698,539 | |
| | 241,148 | | | JD.com, Inc. ADR* | | | 9,988,350 | |
| | 32,453 | | | NetEase, Inc. ADR | | | 11,198,557 | |
| | 260,810 | | | New Oriental Education & Technology Group, Inc. ADR | | | 24,516,140 | |
| | 2,187,000 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 22,683,715 | |
| | 249,000 | | | Sunny Optical Technology Group Co., Ltd. | | | 3,161,615 | |
| | 631,980 | | | Tencent Holdings Ltd. | | | 32,709,966 | |
| | 89,630 | | | Weibo Corp. ADR* | | | 9,273,120 | |
| | | | | | | | |
| | | | | | | 196,114,004 | |
| | | | | | | | |
| | | | France - 13.8% | |
| | 315,826 | | | Airbus SE | | | 31,388,911 | |
| | 1,051,069 | | | AXA S.A. | | | 31,146,559 | |
| | 227,088 | | | BNP Paribas S.A. | | | 16,892,752 | |
| | 80,017 | | | Capgemini SE | | | 9,477,356 | |
| | 314,825 | | | Cie de Saint-Gobain | | | 17,326,779 | |
| | 163,162 | | | Cie Generale des Etablissements Michelin | | | 23,341,160 | |
| | 45,505 | | | Essilor International Cie Generale d’Optique S.A. | | | 6,267,925 | |
| | 2,111,600 | | | Natixis S.A. | | | 16,678,480 | |
| | 223,854 | | | Safran S.A. | | | 23,089,541 | |
| | 164,320 | | | Schneider Electric SE* | | | 13,931,124 | |
| | 31,027 | | | Unibail-Rodamco SE REIT | | | 7,807,995 | |
| | 278,517 | | | Valeo S.A. | | | 20,746,946 | |
| | | | | | | | |
| | | | | | | 218,095,528 | |
| | | | | | | | |
| | | | Germany - 4.6% | |
| | 41,182 | | | Beiersdorf AG | | | 4,827,890 | |
| | 97,747 | | | Continental AG | | | 26,282,196 | |
| | 788,684 | | | Deutsche Bank AG | | | 14,917,145 | |
| | 241,349 | | | Deutsche Wohnen SE | | | 10,526,860 | |
| | 335,108 | | | Vonovia SE | | | 16,603,677 | |
| | | | | | | | |
| | | | | | | 73,157,768 | |
| | | | | | | | |
| | | | Hong Kong - 2.0% | |
| | 1,002,000 | | | Henderson Land Development Co., Ltd. | | | 6,588,151 | |
| | 248,856 | | | Hong Kong Exchanges & Clearing Ltd. | | | 7,612,074 | |
| | 611,537 | | | Melco Resorts & Entertainment Ltd. ADR | | | 17,759,035 | |
| | | | | | | | |
| | | | | | | 31,959,260 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | |
| | | | India - 3.1% | |
| | 200,560 | | | HDFC Bank Ltd. | | $ | 5,939,894 | |
| | 4,754,544 | | | ICICI Bank Ltd. | | | 23,302,336 | |
| | 1,370,524 | | | Power Grid Corp. of India Ltd. | | | 4,294,931 | |
| | 3,255,327 | | | State Bank of India | | | 15,769,515 | |
| | | | | | | | |
| | | | | | | 49,306,676 | |
| | | | | | | | |
| | | | Italy - 3.6% | |
| | 203,459 | | | Banca Generali S.p.A. | | | 6,760,807 | |
| | 49,800 | | | Ferrari N.V. | | | 5,218,056 | |
| | 593,641 | | | FinecoBank Banca Fineco S.p.A. | | | 6,063,805 | |
| | 187,155 | | | Moncler S.p.A. | | | 5,850,001 | |
| | 1,486,931 | | | Pirelli & C. S.p.A.*(1) | | | 12,934,675 | |
| | 1,075,342 | | | UniCredit S.p.A.* | | | 20,059,673 | |
| | | | | | | | |
| | | | | | | 56,887,017 | |
| | | | | | | | |
| | | | Japan - 17.1% | |
| | 112,500 | | | Daikin Industries Ltd. | | | 13,293,332 | |
| | 32,460 | | | Daito Trust Construction Co., Ltd. | | | 6,613,112 | |
| | 352,815 | | | Daiwa House Industry Co., Ltd. | | | 13,529,530 | |
| | 9,230 | | | FANUC Corp. | | | 2,214,243 | |
| | 690,370 | | | ITOCHU Corp. | | | 12,869,540 | |
| | 399,400 | | | Japan Tobacco, Inc. | | | 12,861,916 | |
| | 5,500 | | | Keyence Corp. | | | 3,072,472 | |
| | 872,900 | | | Kobe Steel Ltd.* | | | 8,055,693 | |
| | 518,500 | | | Komatsu Ltd. | | | 18,738,441 | |
| | 880,000 | | | Mitsubishi UFJ Financial Group, Inc. | | | 6,404,605 | |
| | 56,900 | | | Murata Manufacturing Co., Ltd. | | | 7,618,226 | |
| | 272,500 | | | Nexon Co., Ltd.* | | | 7,902,572 | |
| | 44,000 | | | Nidec Corp. | | | 6,160,750 | |
| | 160,050 | | | Nippon Telegraph & Telephone Corp. | | | 7,524,602 | |
| | 227,110 | | | Omron Corp. | | | 13,508,261 | |
| | 408,174 | | | Ono Pharmaceutical Co., Ltd. | | | 9,494,825 | |
| | 467,000 | | | Seven & i Holdings Co., Ltd. | | | 19,346,128 | |
| | 385,700 | | | SoftBank Group Corp. | | | 30,536,089 | |
| | 347,140 | | | Sony Financial Holdings, Inc. | | | 6,135,215 | |
| | 714,930 | | | Sumitomo Mitsui Financial Group, Inc. | | | 30,816,695 | |
| | 727,583 | | | Tokio Marine Holdings, Inc. | | | 33,092,681 | |
| | | | | | | | |
| | | | | | | 269,788,928 | |
| | | | | | | | |
| | | | Luxembourg - 0.5% | |
| | 247,724 | | | ArcelorMittal* | | | 8,036,969 | |
| | | | | | | | |
| | | | Mexico - 0.9% | |
| | 278,043 | | | America Movil S.A.B. de C.V. Class L, ADR | | | 4,768,437 | |
| | 1,274,940 | | | Grupo Aeroportuario del Centro Norte S.A.B. de C.V. | | | 6,607,966 | |
| | 491,860 | | | Infraestructura Energetica Nova, S.A.B. de C.V. | | | 2,406,456 | |
| | | | | | | | |
| | | | | | | 13,782,859 | |
| | | | | | | | |
| | | | Netherlands - 1.5% | |
| | 410,458 | | | AerCap Holdings N.V.* | | | 21,594,196 | |
| | 823,897 | | | DP Eurasia N.V.*(1) | | | 2,391,628 | |
| | | | | | | | |
| | | | | | | 23,985,824 | |
| | | | | | | | |
| | | | Panama - 0.5% | |
| | 53,040 | | | Copa Holdings S.A. Class A | | | 7,110,542 | |
| | | | | | | | |
| | | | Russia - 1.4% | |
| | 176,700 | | | Lukoil PJSC ADR | | | 10,067,641 | |
| | 198,306 | | | Mail.Ru Group Ltd. GDR* | | | 5,693,104 | |
| | 383,000 | | | Sberbank of Russia PJSC ADR | | | 6,455,666 | |
| | | | | | | | |
| | | | | | | 22,216,411 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | |
| | | | South Korea - 2.3% | |
| | 15,114 | | | Samsung Electronics Co., Ltd. | | $ | 35,909,509 | |
| | | | | | | | |
| | | | Spain - 2.6% | |
| | 1,547,365 | | | Banco Santander S.A. | | | 10,144,883 | |
| | 4,021,018 | | | Iberdrola S.A. | | | 31,127,836 | |
| | | | | | | | |
| | | | | | | 41,272,719 | |
| | | | | | | | |
| | | | Switzerland - 9.7% | |
| | 180,861 | | | ABB Ltd. | | | 4,844,241 | |
| | 148,601 | | | Julius Baer Group Ltd.* | | | 9,087,258 | |
| | 514,100 | | | Nestle S.A. | | | 44,200,388 | |
| | 465,329 | | | Novartis AG | | | 39,158,567 | |
| | 58,312 | | | Swiss Re AG | | | 5,453,381 | |
| | 2,302,563 | | | UBS Group AG* | | | 42,304,423 | |
| | 27,511 | | | Zurich Insurance Group AG | | | 8,364,542 | |
| | | | | | | | |
| | | | | | | 153,412,800 | |
| | | | | | | | |
| | | | Taiwan - 3.4% | |
| | 4,492,625 | | | Hon Hai Precision Industry Co., Ltd. | | | 14,284,695 | |
| | 5,202,995 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 39,839,707 | |
| | | | | | | | |
| | | | | | | 54,124,402 | |
| | | | | | | | |
| | | | United Kingdom - 10.4% | |
| | 359,002 | | | AstraZeneca plc | | | 24,773,162 | |
| | 2,267,094 | | | BAE Systems plc | | | 17,516,316 | |
| | 518,470 | | | British American Tobacco plc | | | 35,047,952 | |
| | 655,925 | | | Compass Group plc | | | 14,143,193 | |
| | 942,349 | | | Fiat Chrysler Automobiles N.V.* | | | 16,824,033 | |
| | 6,128,180 | | | Glencore plc* | | | 32,074,663 | |
| | 843,078 | | | Just Eat plc* | | | 8,867,689 | |
| | 270,999 | | | Unilever N.V. | | | 15,258,036 | |
| | | | | | | | |
| | | | | | | 164,505,044 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,356,727,465) | | $ | 1,569,237,450 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,356,727,465) | | $ | 1,569,237,450 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.1% | |
| | | | Other Investment Pools & Funds - 1.1% | |
| | 17,847,597 | | | BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 1.17%(2) | | $ | 17,847,597 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $17,847,597) | | $ | 17,847,597 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,374,575,062) | | | 100.4 | % | | $ | 1,587,085,047 | |
| | | | Other Assets and Liabilities | | | (0.4 | )% | | | (6,564,827 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,580,520,220 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $15,326,303, which represented 1.0% of total net assets. |
| (2) | Current yield as of period end. |
| † | 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 |
GDR | | Global 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Argentina | | $ | 4,558,998 | | | $ | 4,558,998 | | | $ | — | | | $ | — | |
Australia | | | 6,523,254 | | | | — | | | | 6,523,254 | | | | — | |
Brazil | | | 13,083,070 | | | | 13,083,070 | | | | — | | | | — | |
Canada | | | 125,405,868 | | | | 125,405,868 | | | | — | | | | — | |
China | | | 196,114,004 | | | | 99,916,906 | | | | 96,197,098 | | | | — | |
France | | | 218,095,528 | | | | — | | | | 218,095,528 | | | | — | |
Germany | | | 73,157,768 | | | | — | | | | 73,157,768 | | | | — | |
Hong Kong | | | 31,959,260 | | | | 17,759,035 | | | | 14,200,225 | | | | — | |
India | | | 49,306,676 | | | | — | | | | 49,306,676 | | | | — | |
Italy | | | 56,887,017 | | | | 12,934,675 | | | | 43,952,342 | | | | — | |
Japan | | | 269,788,928 | | | | — | | | | 269,788,928 | | | | — | |
Luxembourg | | | 8,036,969 | | | | — | | | | 8,036,969 | | | | — | |
Mexico | | | 13,782,859 | | | | 13,782,859 | | | | — | | | | — | |
Netherlands | | | 23,985,824 | | | | 23,985,824 | | | | — | | | | — | |
Panama | | | 7,110,542 | | | | 7,110,542 | | | | — | | | | — | |
Russia | | | 22,216,411 | | | | — | | | | 22,216,411 | | | | — | |
South Korea | | | 35,909,509 | | | | — | | | | 35,909,509 | | | | — | |
Spain | | | 41,272,719 | | | | — | | | | 41,272,719 | | | | — | |
Switzerland | | | 153,412,800 | | | | — | | | | 153,412,800 | | | | — | |
Taiwan | | | 54,124,402 | | | | — | | | | 54,124,402 | | | | — | |
United Kingdom | | | 164,505,044 | | | | — | | | | 164,505,044 | | | | — | |
Short-Term Investments | | | 17,847,597 | | | | 17,847,597 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,587,085,047 | | | $ | 336,385,374 | | | $ | 1,250,699,673 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.8% | |
| | | | Automobiles & Components - 1.0% | |
| | 452,378 | | | Harley-Davidson, Inc. | | $ | 23,016,993 | |
| | | | | | | | |
| | | | Banks - 5.5% | |
| | 91,777 | | | Cullen/Frost Bankers, Inc. | | | 8,686,693 | |
| | 157,078 | | | East West Bancorp, Inc. | | | 9,555,055 | |
| | 40,284 | | | First Citizens BancShares, Inc. Class A | | | 16,234,452 | |
| | 282,257 | | | First Republic Bank | | | 24,454,746 | |
| | 218,127 | | | M&T Bank Corp. | | | 37,297,536 | |
| | 178,911 | | | Prosperity Bancshares, Inc. | | | 12,536,294 | |
| | 144,516 | | | South State Corp. | | | 12,594,569 | |
| | | | | | | | |
| | | | | | | 121,359,345 | |
| | | | | | | | |
| | | | Capital Goods - 8.0% | |
| | 496,316 | | | Allison Transmission Holdings, Inc. | | | 21,376,330 | |
| | 318,880 | | | Fastenal Co. | | | 17,439,547 | |
| | 260,839 | | | HEICO Corp. Class A | | | 20,619,323 | |
| | 327,093 | | | IDEX Corp. | | | 43,166,463 | |
| | 207,742 | | | Lennox International, Inc. | | | 43,264,349 | |
| | 115,723 | | | Middleby Corp.* | | | 15,616,819 | |
| | 235,421 | | | PACCAR, Inc. | | | 16,733,725 | |
| | | | | | | | |
| | | | | | | 178,216,556 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 8.3% | |
| | 132,464 | | | Cintas Corp. | | | 20,641,865 | |
| | 205,410 | | | Dun & Bradstreet Corp. | | | 24,322,598 | |
| | 128,140 | | | Equifax, Inc. | | | 15,110,269 | |
| | 323,021 | | | KAR Auction Services, Inc. | | | 16,315,791 | |
| | 454,676 | | | Robert Half International, Inc. | | | 25,252,705 | |
| | 884,681 | | | TransUnion* | | | 48,622,068 | |
| | 70,543 | | | UniFirst Corp. | | | 11,632,541 | |
| | 306,489 | | | Waste Connections, Inc. | | | 21,742,329 | |
| | | | | | | | |
| | | | | | | 183,640,166 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.3% | |
| | 12,139 | | | NVR, Inc.* | | | 42,586,283 | |
| | 634,636 | | | Under Armour, Inc. Class C* | | | 8,453,351 | |
| | | | | | | | |
| | | | | | | 51,039,634 | |
| | | | | | | | |
| | | | Consumer Services - 1.2% | |
| | 330,114 | | | Choice Hotels International, Inc. | | | 25,616,846 | |
| | | | | | | | |
| | | | Diversified Financials - 4.5% | |
| | 68,485 | | | Credit Acceptance Corp.* | | | 22,153,528 | |
| | 134,384 | | | FactSet Research Systems, Inc. | | | 25,903,860 | |
| | 43,785 | | | Moody’s Corp. | | | 6,463,104 | |
| | 168,127 | | | MSCI, Inc. | | | 21,274,790 | |
| | 237,352 | | | Northern Trust Corp. | | | 23,709,091 | |
| | | | | | | | |
| | | | | | | 99,504,373 | |
| | | | | | | | |
| | | | Energy - 2.2% | |
| | 101,165 | | | Diamondback Energy, Inc.* | | | 12,772,081 | |
| | 357,144 | | | Newfield Exploration Co.* | | | 11,260,750 | |
| | 1,715,452 | | | WPX Energy, Inc.* | | | 24,136,410 | |
| | | | | | | | |
| | | | | | | 48,169,241 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.7% | |
| | 180,345 | | | PriceSmart, Inc. | | | 15,527,705 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.3% | |
| | 167,913 | | | Integra LifeSciences Holdings Corp.* | | | 8,036,316 | |
| | 274,331 | | | STERIS plc | | | 23,995,733 | |
| | 108,033 | | | Teleflex, Inc. | | | 26,880,771 | |
| | 206,936 | | | Varian Medical Systems, Inc.* | | | 23,000,936 | |
| | 249,638 | | | Veeva Systems, Inc. Class A* | | | 13,799,989 | |
| | | | | | | | |
| | | | | | | 95,713,745 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.8% - (continued) | |
| | | | Insurance - 5.9% | |
| | 32,700 | | | Alleghany Corp.* | | $ | 19,492,143 | |
| | 36,986 | | | Fairfax Financial Holdings Ltd. | | | 19,694,677 | |
| | 433,612 | | | FNF Group | | | 17,014,935 | |
| | 38,443 | | | Markel Corp.* | | | 43,791,575 | |
| | 17,230 | | | White Mountains Insurance Group Ltd. | | | 14,667,554 | |
| | 214,559 | | | WR Berkley Corp. | | | 15,373,152 | |
| | | | | | | | |
| | | | | | | 130,034,036 | |
| | | | | | | | |
| | | | Materials - 3.1% | |
| | 563,556 | | | Ball Corp. | | | 21,330,594 | |
| | 287,538 | | | Packaging Corp. of America | | | 34,662,706 | |
| | 401,035 | | | Silgan Holdings, Inc. | | | 11,786,419 | |
| | | | | | | | |
| | | | | | | 67,779,719 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.4% | |
| | 298,542 | | | Aerie Pharmaceuticals, Inc.* | | | 17,837,885 | |
| | 263,161 | | | Agios Pharmaceuticals, Inc.* | | | 15,044,914 | |
| | 511,337 | | | Alkermes plc* | | | 27,985,474 | |
| | 91,024 | | | BeiGene Ltd. ADR* | | | 8,894,865 | |
| | 94,535 | | | Bluebird Bio, Inc.* | | | 16,836,684 | |
| | 540,926 | | | Ionis Pharmaceuticals, Inc.* | | | 27,208,578 | |
| | 928,943 | | | Ironwood Pharmaceuticals, Inc.* | | | 13,924,856 | |
| | 40,856 | | | Mettler-Toledo International, Inc.* | | | 25,311,109 | |
| | 315,821 | | | Neurocrine Biosciences, Inc.* | | | 24,504,551 | |
| | 206,977 | | | Sage Therapeutics, Inc.* | | | 34,091,182 | |
| | 151,741 | | | Spark Therapeutics, Inc.* | | | 7,802,522 | |
| | 226,798 | | | TESARO, Inc.* | | | 18,794,750 | |
| | 346,214 | | | Ultragenyx Pharmaceutical, Inc.* | | | 16,057,405 | |
| | 106,943 | | | Waters Corp.* | | | 20,660,318 | |
| | | | | | | | |
| | | | | | | 274,955,093 | |
| | | | | | | | |
| | | | Real Estate - 0.2% | |
| | 152,876 | | | Equity Commonwealth REIT* | | | 4,664,247 | |
| | | | | | | | |
| | | | Retailing - 1.5% | |
| | 418,121 | | | CarMax, Inc.* | | | 26,814,100 | |
| | 211,180 | | | TripAdvisor, Inc.* | | | 7,277,263 | |
| | | | | | | | |
| | | | | | | 34,091,363 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.1% | |
| | 258,419 | | | MKS Instruments, Inc. | | | 24,420,595 | |
| | 247,445 | | | Silicon Laboratories, Inc.* | | | 21,849,394 | |
| | | | | | | | |
| | | | | | | 46,269,989 | |
| | | | | | | | |
| | | | Software & Services - 20.8% | |
| | 540,517 | | | Akamai Technologies, Inc.* | | | 35,155,226 | |
| | 339,003 | | | Black Knight, Inc.* | | | 14,966,982 | |
| | 259,326 | | | Blackbaud, Inc. | | | 24,503,714 | |
| | 254,651 | | | Blackhawk Network Holdings, Inc.* | | | 9,078,308 | |
| | 445,582 | | | Cadence Design Systems, Inc.* | | | 18,634,239 | |
| | 70,683 | | | Cimpress N.V.* | | | 8,473,478 | |
| | 92,691 | | | CoStar Group, Inc.* | | | 27,524,593 | |
| | 1,553,132 | | | Genpact Ltd. | | | 49,296,410 | |
| | 440,822 | | | Global Payments, Inc. | | | 44,187,997 | |
| | 115,464 | | | GrubHub, Inc.* | | | 8,290,315 | |
| | 294,654 | | | Guidewire Software, Inc.* | | | 21,881,006 | |
| | 180,879 | | | ServiceNow, Inc.* | | | 23,584,813 | |
| | 725,214 | | | Teradata Corp.* | | | 27,891,730 | |
| | 402,233 | | | Total System Services, Inc. | | | 31,812,608 | |
| | 396,653 | | | VeriSign, Inc.* | | | 45,392,969 | |
| | 284,331 | | | WEX, Inc.* | | | 40,156,067 | |
| | 265,335 | | | Zillow Group, Inc. Class A* | | | 10,809,748 | |
| | 468,506 | | | Zillow Group, Inc. Class C* | | | 19,171,266 | |
| | | | | | | | |
| | | | | | | 460,811,469 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.8% - (continued) | |
| | | | Technology Hardware & Equipment - 8.5% | |
| | 554,123 | | | CDW Corp. | | $ | 38,506,007 | |
| | 571,509 | | | CommScope Holding Co., Inc.* | | | 21,620,185 | |
| | 793,882 | | | Finisar Corp.* | | | 16,155,499 | |
| | 540,896 | | | II-VI, Inc.* | | | 25,395,067 | |
| | 539,126 | | | Keysight Technologies, Inc.* | | | 22,427,642 | |
| | 818,844 | | | National Instruments Corp. | | | 34,088,476 | |
| | 719,577 | | | Trimble, Inc.* | | | 29,243,609 | |
| | | | | | | | |
| | | | | | | 187,436,485 | |
| | | | | | | | |
| | | | Transportation - 5.4% | |
| | 323,601 | | | Alaska Air Group, Inc. | | | 23,787,910 | |
| | 55,689 | | | AMERCO | | | 21,045,430 | |
| | 389,132 | | | Genesee & Wyoming, Inc. Class A* | | | 30,636,362 | |
| | 1,199,233 | | | JetBlue Airways Corp.* | | | 26,790,865 | |
| | 406,490 | | | Spirit Airlines, Inc.* | | | 18,231,077 | |
| | | | | | | | |
| | | | | | | 120,491,644 | |
| | | | | | | | |
| | | | Utilities - 1.9% | |
| | 139,233 | | | Black Hills Corp. | | | 8,369,295 | |
| | 256,421 | | | NiSource, Inc. | | | 6,582,327 | |
| | 579,446 | | | UGI Corp. | | | 27,204,990 | |
| | | | | | | | |
| | | | | | | 42,156,612 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,616,089,446) | | $ | 2,210,495,261 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,616,089,446) | | $ | 2,210,495,261 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.5% | |
| | | | Other Investment Pools & Funds - 0.5% | |
| | 11,321,834 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(1) | | $ | 11,321,834 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $11,321,834) | | $ | 11,321,834 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,627,411,280) | | | 100.3 | % | | $ | 2,221,817,095 | |
| | | | Other Assets and Liabilities | | | (0.3 | )% | | | (6,923,054 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,214,894,041 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | 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.
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 23,016,993 | | | $ | 23,016,993 | | | $ | — | | | $ | — | |
Banks | | | 121,359,345 | | | | 121,359,345 | | | | — | | | | — | |
Capital Goods | | | 178,216,556 | | | | 178,216,556 | | | | — | | | | — | |
Commercial & Professional Services | | | 183,640,166 | | | | 183,640,166 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 51,039,634 | | | | 51,039,634 | | | | — | | | | — | |
Consumer Services | | | 25,616,846 | | | | 25,616,846 | | | | — | | | | — | |
Diversified Financials | | | 99,504,373 | | | | 99,504,373 | | | | — | | | | — | |
Energy | | | 48,169,241 | | | | 48,169,241 | | | | — | | | | — | |
Food & Staples Retailing | | | 15,527,705 | | | | 15,527,705 | | | | — | | | | — | |
Health Care Equipment & Services | | | 95,713,745 | | | | 95,713,745 | | | | — | | | | — | |
Insurance | | | 130,034,036 | | | | 130,034,036 | | | | — | | | | — | |
Materials | | | 67,779,719 | | | | 67,779,719 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 274,955,093 | | | | 274,955,093 | | | | — | | | | — | |
Real Estate | | | 4,664,247 | | | | 4,664,247 | | | | — | | | | — | |
Retailing | | | 34,091,363 | | | | 34,091,363 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 46,269,989 | | | | 46,269,989 | | | | — | | | | — | |
Software & Services | | | 460,811,469 | | | | 460,811,469 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 187,436,485 | | | | 187,436,485 | | | | — | | | | — | |
Transportation | | | 120,491,644 | | | | 120,491,644 | | | | — | | | | — | |
Utilities | | | 42,156,612 | | | | 42,156,612 | | | | — | | | | — | |
Short-Term Investments | | | 11,321,834 | | | | 11,321,834 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,221,817,095 | | | $ | 2,221,817,095 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% | |
| | | | Automobiles & Components - 1.7% | |
| | 195,215 | | | Goodyear Tire & Rubber Co. | | $ | 6,307,397 | |
| | | | | | | | |
| | | | Banks - 12.6% | |
| | 86,404 | | | Bank of the Ozarks, Inc. | | | 4,186,274 | |
| | 122,517 | | | Comerica, Inc. | | | 10,635,701 | |
| | 235,055 | | | FNB Corp. | | | 3,248,460 | |
| | 72,977 | | | IBERIABANK Corp. | | | 5,655,717 | |
| | 93,061 | | | MB Financial, Inc. | | | 4,143,076 | |
| | 48,385 | | | Provident Financial Services, Inc. | | | 1,304,943 | |
| | 43,456 | | | South State Corp. | | | 3,787,190 | |
| | 191,460 | | | Sterling Bancorp | | | 4,709,916 | |
| | 75,656 | | | Western Alliance Bancorp* | | | 4,283,643 | |
| | 104,666 | | | Zions Bancorp | | | 5,320,173 | |
| | | | | | | | |
| | | | | | | 47,275,093 | |
| | | | | | | | |
| | | | Capital Goods - 11.1% | |
| | 6,013 | | | Generac Holdings, Inc.* | | | 297,764 | |
| | 59,132 | | | Granite Construction, Inc. | | | 3,750,743 | |
| | 47,685 | | | Harris Corp. | | | 6,754,580 | |
| | 42,826 | | | Hubbell, Inc. | | | 5,796,071 | |
| | 45,845 | | | JELD-WEN Holding, Inc.* | | | 1,804,918 | |
| | 262,067 | | | Milacron Holdings Corp.* | | | 5,015,962 | |
| | 49,353 | | | Moog, Inc. Class A* | | | 4,286,308 | |
| | 411,268 | | | Sanwa Holdings Corp. | | | 5,651,841 | |
| | 80,965 | | | Sensata Technologies Holding N.V.* | | | 4,138,121 | |
| | 58,434 | | | WESCO International, Inc.* | | | 3,982,277 | |
| | | | | | | | |
| | | | | | | 41,478,585 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 2.6% | |
| | 137,183 | | | Atento S.A. | | | 1,392,408 | |
| | 85,735 | | | Clean Harbors, Inc.* | | | 4,646,837 | |
| | 31,432 | | | Dun & Bradstreet Corp. | | | 3,721,863 | |
| | | | | | | | |
| | | | | | | 9,761,108 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.5% | |
| | 89,037 | | | D.R. Horton, Inc. | | | 4,547,120 | |
| | 30,431 | | | Lennar Corp. Class A | | | 1,924,456 | |
| | 63,768 | | | Toll Brothers, Inc. | | | 3,062,139 | |
| | | | | | | | |
| | | | | | | 9,533,715 | |
| | | | | | | | |
| | | | Consumer Services - 1.3% | |
| | 29,800 | | | Dave & Buster’s Entertainment, Inc.* | | | 1,644,066 | |
| | 61,291 | | | Norwegian Cruise Line Holdings Ltd.* | | | 3,263,746 | |
| | | | | | | | |
| | | | | | | 4,907,812 | |
| | | | | | | | |
| | | | Energy - 7.4% | |
| | 92,261 | | | Delek U.S. Holdings, Inc. | | | 3,223,599 | |
| | 98,184 | | | Diamondback Energy, Inc.* | | | 12,395,730 | |
| | 47,744 | | | Energen Corp.* | | | 2,748,622 | |
| | 222,097 | | | Laredo Petroleum, Inc.* | | | 2,356,449 | |
| | 220,166 | | | Newfield Exploration Co.* | | | 6,941,834 | |
| | | | | | | | |
| | | | | | | 27,666,234 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.1% | |
| | 8,100 | | | US Foods Holding Corp.* | | | 258,633 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.2% | |
| | 25,633 | | | Ingredion, Inc. | | | 3,583,493 | |
| | 60,824 | | | Post Holdings, Inc.* | | | 4,819,086 | |
| | | | | | | | |
| | | | | | | 8,402,579 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.0% | |
| | 123,066 | | | Acadia Healthcare Co., Inc.* | | | 4,015,644 | |
| | 219,394 | | | Brookdale Senior Living, Inc.* | | | 2,128,122 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% - (continued) | |
| | | | Health Care Equipment & Services - 4.0% - (continued) | |
| | 96,698 | | | Envision Healthcare Corp.* | | $ | 3,341,883 | |
| | 63,256 | | | STERIS plc | | | 5,533,002 | |
| | | | | | | | |
| | | | | | | 15,018,651 | |
| | | | | | | | |
| | | | Insurance - 10.4% | |
| | 26,486 | | | Assurant, Inc. | | | 2,670,848 | |
| | 177,814 | | | CNO Financial Group, Inc. | | | 4,390,228 | |
| | 32,357 | | | Hanover Insurance Group, Inc. | | | 3,497,145 | |
| | 249,881 | | | Jardine Lloyd Thompson Group plc | | | 4,692,915 | |
| | 427,451 | | | Lancashire Holdings Ltd. | | | 3,931,895 | |
| | 51,364 | | | Reinsurance Group of America, Inc. | | | 8,009,188 | |
| | 102,896 | | | Unum Group | | | 5,647,961 | |
| | 176,066 | | | XL Group Ltd. | | | 6,190,480 | |
| | | | | | | | |
| | | | | | | 39,030,660 | |
| | | | | | | | |
| | | | Materials - 8.5% | |
| | 65,798 | | | Alcoa Corp.* | | | 3,544,538 | |
| | 17,823 | | | Bemis Co., Inc. | | | 851,761 | |
| | 64,635 | | | Cabot Corp. | | | 3,980,870 | |
| | 62,206 | | | Celanese Corp. Series A | | | 6,661,019 | |
| | 53,500 | | | Commercial Metals Co. | | | 1,140,620 | |
| | 38,957 | | | Crown Holdings, Inc.* | | | 2,191,331 | |
| | 39,743 | | | Louisiana-Pacific Corp.* | | | 1,043,651 | |
| | 66,696 | | | Reliance Steel & Aluminum Co. | | | 5,721,850 | |
| | 63,110 | | | Westlake Chemical Corp. | | | 6,723,108 | |
| | | | | | | | |
| | | | | | | 31,858,748 | |
| | | | | | | | |
| | | | Media - 0.4% | |
| | 108,300 | | | TEGNA, Inc. | | | 1,524,864 | |
| | | | | | | | |
| | | | Real Estate - 8.2% | |
| | 50,959 | | | American Assets Trust, Inc. REIT | | | 1,948,672 | |
| | 141,000 | | | Corporate Office Properties Trust REIT | | | 4,117,200 | |
| | 45,235 | | | Equity LifeStyle Properties, Inc. REIT | | | 4,026,820 | |
| | 40,220 | | | Extra Space Storage, Inc. REIT | | | 3,517,239 | |
| | 74,003 | | | Forest City Realty Trust, Inc. Class A, REIT | | | 1,783,472 | |
| | 31,580 | | | Life Storage, Inc. REIT | | | 2,812,831 | |
| | 44,335 | | | PS Business Parks, Inc. REIT | | | 5,545,865 | |
| | 268,579 | | | STORE Capital Corp. REIT | | | 6,993,797 | |
| | | | | | | | |
| | | | | | | 30,745,896 | |
| | | | | | | | |
| | | | Retailing - 0.3% | |
| | 23,775 | | | Camping World Holdings, Inc. Class A | | | 1,063,456 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.4% | |
| | 64,067 | | | Axcelis Technologies, Inc.* | | | 1,838,723 | |
| | 151,093 | | | Microsemi Corp.* | | | 7,803,953 | |
| | 127,455 | | | Silicon Motion Technology Corp. ADR | | | 6,750,017 | |
| | 93,210 | | | Teradyne, Inc. | | | 3,902,703 | |
| | | | | | | | |
| | | | | | | 20,295,396 | |
| | | | | | | | |
| | | | Software & Services - 3.5% | |
| | 127,506 | | | Booz Allen Hamilton Holding Corp. | | | 4,861,804 | |
| | 81,964 | | | SS&C Technologies Holdings, Inc. | | | 3,317,902 | |
| | 43,079 | | | VeriSign, Inc.* | | | 4,929,961 | |
| | | | | | | | |
| | | | | | | 13,109,667 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 5.3% | |
| | 98,941 | | | Acacia Communications, Inc.* | | | 3,584,632 | |
| | 115,941 | | | Arrow Electronics, Inc.* | | | 9,322,816 | |
| | 42,459 | | | CommScope Holding Co., Inc.* | | | 1,606,224 | |
| | 130,402 | | | Keysight Technologies, Inc.* | | | 5,424,723 | |
| | | | | | | | |
| | | | | | | 19,938,395 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.9% - (continued) | |
| | | | Telecommunication Services - 1.3% | |
| | 69,197 | | | Millicom International Cellular S.A. | | $ | 4,673,250 | |
| | | | | | | | |
| | | | Transportation - 5.2% | |
| | 73,571 | | | Genesee & Wyoming, Inc. Class A* | | | 5,792,245 | |
| | 169,833 | | | JetBlue Airways Corp.* | | | 3,794,069 | |
| | 184,110 | | | Knight-Swift Transportation Holdings, Inc. | | | 8,049,289 | |
| | 68,682 | | | Schneider National, Inc. Class B | | | 1,961,558 | |
| | | | | | | | |
| | | | | | | 19,597,161 | |
| | | | | | | | |
| | | | Utilities - 4.9% | |
| | 149,402 | | | Alliant Energy Corp. | | | 6,366,019 | |
| | 110,799 | | | Great Plains Energy, Inc. | | | 3,572,160 | |
| | 176,064 | | | UGI Corp. | | | 8,266,205 | |
| | | | | | | | |
| | | | | | | 18,204,384 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $284,725,768) | | $ | 370,651,684 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $284,725,768) | | $ | 370,651,684 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.2% | |
| | | | Other Investment Pools & Funds - 1.2% | |
| | 4,527,677 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(1) | | $ | 4,527,677 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $4,527,677) | | $ | 4,527,677 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $289,253,445) | | | 100.1 | % | | $ | 375,179,361 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (341,891 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 374,837,470 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | 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 MidCap Value HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 6,307,397 | | | $ | 6,307,397 | | | $ | — | | | $ | — | |
Banks | | | 47,275,093 | | | | 47,275,093 | | | | — | | | | — | |
Capital Goods | | | 41,478,585 | | | | 35,826,744 | | | | 5,651,841 | | | | — | |
Commercial & Professional Services | | | 9,761,108 | | | | 9,761,108 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 9,533,715 | | | | 9,533,715 | | | | — | | | | — | |
Consumer Services | | | 4,907,812 | | | | 4,907,812 | | | | — | | | | — | |
Energy | | | 27,666,234 | | | | 27,666,234 | | | | — | | | | — | |
Food & Staples Retailing | | | 258,633 | | | | 258,633 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 8,402,579 | | | | 8,402,579 | | | | — | | | | — | |
Health Care Equipment & Services | | | 15,018,651 | | | | 15,018,651 | | | | — | | | | — | |
Insurance | | | 39,030,660 | | | | 35,098,765 | | | | 3,931,895 | | | | — | |
Materials | | | 31,858,748 | | | | 31,858,748 | | | | — | | | | — | |
Media | | | 1,524,864 | | | | 1,524,864 | | | | — | | | | — | |
Real Estate | | | 30,745,896 | | | | 30,745,896 | | | | — | | | | — | |
Retailing | | | 1,063,456 | | | | 1,063,456 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 20,295,396 | | | | 20,295,396 | | | | — | | | | — | |
Software & Services | | | 13,109,667 | | | | 13,109,667 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 19,938,395 | | | | 19,938,395 | | | | — | | | | — | |
Telecommunication Services | | | 4,673,250 | | | | 4,673,250 | | | | — | | | | — | |
Transportation | | | 19,597,161 | | | | 19,597,161 | | | | — | | | | — | |
Utilities | | | 18,204,384 | | | | 18,204,384 | | | | — | | | | — | |
Short-Term Investments | | | 4,527,677 | | | | 4,527,677 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 375,179,361 | | | $ | 365,595,625 | | | $ | 9,583,736 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers from Level 1 to Level 2, investments valued at $2,645,160 were transferred from Level 2 to Level 1 due to the discontinuation of fair valuation factor and there were no transfers in and 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
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% | |
| | | | Automobiles & Components - 1.9% | |
| | 162,522 | | | Cooper Tire & Rubber Co. | | $ | 5,745,153 | |
| | 8,983 | | | Cooper-Standard Holdings, Inc.* | | | 1,100,417 | |
| | 12,465 | | | Fox Factory Holding Corp.* | | | 484,265 | |
| | 184,541 | | | Tenneco, Inc. | | | 10,803,030 | |
| | 57,711 | | | Visteon Corp.* | | | 7,221,955 | |
| | | | | | | | |
| | | | | | | 25,354,820 | |
| | | | | | | | |
| | | | Banks - 3.5% | |
| | 41,441 | | | Essent Group Ltd.* | | | 1,799,368 | |
| | 103,499 | | | FCB Financial Holdings, Inc. Class A* | | | 5,257,749 | |
| | 146,557 | | | First Busey Corp. | | | 4,387,917 | |
| | 145,266 | | | First Hawaiian, Inc. | | | 4,238,862 | |
| | 123,845 | | | Great Western Bancorp, Inc. | | | 4,929,031 | |
| | 97,754 | | | IBERIABANK Corp. | | | 7,575,935 | |
| | 3,972 | | | LendingTree, Inc.* | | | 1,352,267 | |
| | 496,226 | | | MGIC Investment Corp.* | | | 7,001,749 | |
| | 83,044 | | | NMI Holdings, Inc. Class A* | | | 1,411,748 | |
| | 317,652 | | | Sterling Bancorp | | | 7,814,239 | |
| | 18,827 | | | Walker & Dunlop, Inc.* | | | 894,283 | |
| | | | | | | | |
| | | | | | | 46,663,148 | |
| | | | | | | | |
| | | | Capital Goods - 9.9% | |
| | 216,694 | | | AAON, Inc. | | | 7,952,670 | |
| | 206,888 | | | Altra Industrial Motion Corp. | | | 10,427,155 | |
| | 71,490 | | | American Woodmark Corp.* | | | 9,311,572 | |
| | 11,085 | | | Applied Industrial Technologies, Inc. | | | 754,889 | |
| | 16,048 | | | Argan, Inc. | | | 722,160 | |
| | 136,966 | | | Armstrong World Industries, Inc.* | | | 8,293,291 | |
| | 126,624 | | | AZZ, Inc. | | | 6,470,486 | |
| | 7,659 | | | Barnes Group, Inc. | | | 484,585 | |
| | 26,135 | | | Beacon Roofing Supply, Inc.* | | | 1,666,368 | |
| | 31,518 | | | Caesarstone Ltd.* | | | 693,396 | |
| | 59,288 | | | Continental Building Products, Inc.* | | | 1,668,957 | |
| | 16,276 | | | EMCOR Group, Inc. | | | 1,330,563 | |
| | 5,188 | | | Encore Wire Corp. | | | 252,396 | |
| | 238,005 | | | Generac Holdings, Inc.* | | | 11,786,008 | |
| | 33,900 | | | Global Brass & Copper Holdings, Inc. | | | 1,122,090 | |
| | 69,010 | | | HEICO Corp. Class A | | | 5,455,240 | |
| | 18,825 | | | Hillenbrand, Inc. | | | 841,478 | |
| | 11,940 | | | Hyster-Yale Materials Handling, Inc. | | | 1,016,810 | |
| | 176,527 | | | ITT, Inc. | | | 9,421,246 | |
| | 272,626 | | | JELD-WEN Holding, Inc.* | | | 10,733,286 | |
| | 62,963 | | | KBR, Inc. | | | 1,248,556 | |
| | 108,116 | | | Meritor, Inc.* | | | 2,536,401 | |
| | 265,793 | | | Milacron Holdings Corp.* | | | 5,087,278 | |
| | 12,180 | | | Navistar International Corp.* | | | 522,278 | |
| | 5,952 | | | Proto Labs, Inc.* | | | 613,056 | |
| | 270,262 | | | Rexnord Corp.* | | | 7,032,217 | |
| | 68,681 | | | SiteOne Landscape Supply, Inc.* | | | 5,267,833 | |
| | 65,137 | | | Teledyne Technologies, Inc.* | | | 11,799,568 | |
| | 22,281 | | | Trex Co., Inc.* | | | 2,415,038 | |
| | 45,595 | | | Wabash National Corp. | | | 989,412 | |
| | 186,924 | | | Welbilt, Inc.* | | | 4,394,583 | |
| | | | | | | | |
| | | | | | | 132,310,866 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 5.3% | |
| | 192,553 | | | Advanced Disposal Services, Inc.* | | | 4,609,719 | |
| | 117,301 | | | Brink’s Co. | | | 9,231,589 | |
| | 146,987 | | | Deluxe Corp. | | | 11,294,481 | |
| | 117,128 | | | Exponent, Inc. | | | 8,327,801 | |
| | 74,481 | | | Herman Miller, Inc. | | | 2,982,964 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Commercial & Professional Services - 5.3% - (continued) | |
| | 106,120 | | | Huron Consulting Group, Inc.* | | $ | 4,292,554 | |
| | 8,410 | | | Insperity, Inc. | | | 482,313 | |
| | 13,349 | | | MSA Safety, Inc. | | | 1,034,814 | |
| | 161,168 | | | On Assignment, Inc.* | | | 10,358,267 | |
| | 55,916 | | | Quad/Graphics, Inc. | | | 1,263,702 | |
| | 85,058 | | | RPX Corp. | | | 1,143,180 | |
| | 51,245 | | | Steelcase, Inc. Class A | | | 778,924 | |
| | 61,243 | | | TriNet Group, Inc.* | | | 2,715,515 | |
| | 20,250 | | | TrueBlue, Inc.* | | | 556,875 | |
| | 116,911 | | | Viad Corp. | | | 6,476,869 | |
| | 81,167 | | | WageWorks, Inc.* | | | 5,032,354 | |
| | | | | | | | |
| | | | | | | 70,581,921 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.0% | |
| | 102,845 | | | Carter’s, Inc. | | | 12,083,259 | |
| | 14,213 | | | Deckers Outdoor Corp.* | | | 1,140,593 | |
| | 8,506 | | | iRobot Corp.* | | | 652,410 | |
| | 32,252 | | | KB Home | | | 1,030,451 | |
| | 30,046 | | | La-Z-Boy, Inc. | | | 937,435 | |
| | 49,209 | | | MDC Holdings, Inc. | | | 1,568,787 | |
| | 26,497 | | | Movado Group, Inc. | | | 853,203 | |
| | 109,625 | | | Oxford Industries, Inc. | | | 8,242,704 | |
| | 292,041 | | | Steven Madden Ltd.* | | | 13,638,315 | |
| | 3,875 | | | Sturm Ruger & Co., Inc. | | | 216,419 | |
| | 172,332 | | | TopBuild Corp.* | | | 13,052,426 | |
| | 403,275 | | | Wolverine World Wide, Inc. | | | 12,856,407 | |
| | 26,036 | | | ZAGG, Inc.* | | | 480,364 | |
| | | | | | | | |
| | | | | | | 66,752,773 | |
| | | | | | | | |
| | | | Consumer Services - 4.2% | |
| | 19,500 | | | American Public Education, Inc.* | | | 488,475 | |
| | 36,181 | | | Bloomin’ Brands, Inc. | | | 772,103 | |
| | 69,079 | | | Caesars Entertainment Corp.* | | | 873,849 | |
| | 8,355 | | | Dave & Buster’s Entertainment, Inc.* | | | 460,945 | |
| | 4,066 | | | Domino’s Pizza, Inc. | | | 768,311 | |
| | 169,291 | | | Dunkin’ Brands Group, Inc. | | | 10,914,191 | |
| | 30,572 | | | Grand Canyon Education, Inc.* | | | 2,737,111 | |
| | 274,526 | | | La Quinta Holdings, Inc.* | | | 5,067,750 | |
| | 75,656 | | | Marriott Vacations Worldwide Corp. | | | 10,229,448 | |
| | 114,916 | | | Papa John’s International, Inc. | | | 6,447,937 | |
| | 33,445 | | | Penn National Gaming, Inc.* | | | 1,047,832 | |
| | 36,795 | | | Scientific Games Corp. Class A* | | | 1,887,584 | |
| | 20,669 | | | Sotheby’s* | | | 1,066,520 | |
| | 5,473 | | | Strayer Education, Inc. | | | 490,271 | |
| | 36,828 | | | Texas Roadhouse, Inc. | | | 1,940,099 | |
| | 18,277 | | | Weight Watchers International, Inc.* | | | 809,306 | |
| | 248,332 | | | Wingstop, Inc. | | | 9,679,981 | |
| | | | | | | | |
| | | | | | | 55,681,713 | |
| | | | | | | | |
| | | | Diversified Financials - 1.4% | |
| | 14,103 | | | Artisan Partners Asset Management, Inc. Class A | | | 557,069 | |
| | 120,665 | | | Evercore, Inc. Class A | | | 10,859,850 | |
| | 38,938 | | | Green Dot Corp. Class A* | | | 2,346,404 | |
| | 28,613 | | | Moelis & Co. Class A | | | 1,387,730 | |
| | 112,565 | | | OneMain Holdings, Inc.* | | | 2,925,564 | |
| | 41,229 | | | WisdomTree Investments, Inc. | | | 517,424 | |
| | | | | | | | |
| | | | | | | 18,594,041 | |
| | | | | | | | |
| | | | Energy - 1.5% | |
| | 40,584 | | | CVR Energy, Inc. | | | 1,511,348 | |
| | 109,934 | | | PDC Energy, Inc.* | | | 5,665,998 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Energy - 1.5% - (continued) | |
| | 288,400 | | | ProPetro Holding Corp.* | | $ | 5,814,144 | |
| | 20,315 | | | REX American Resources Corp.* | | | 1,681,879 | |
| | 283,900 | | | WildHorse Resource Development Corp.* | | | 5,226,599 | |
| | | | | | | | |
| | | | | | | 19,899,968 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.5% | |
| | 58,770 | | | Casey’s General Stores, Inc. | | | 6,578,714 | |
| | 147,814 | | | Performance Food Group Co.* | | | 4,892,643 | |
| | 94,739 | | | PriceSmart, Inc. | | | 8,157,028 | |
| | | | | | | | |
| | | | | | | 19,628,385 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.5% | |
| | 11,307 | | | Boston Beer Co., Inc. Class A* | | | 2,160,768 | |
| | 8,897 | | | Fresh Del Monte Produce, Inc. | | | 424,120 | |
| | 474,431 | | | Hostess Brands, Inc.* | | | 7,026,323 | |
| | 17,919 | | | National Beverage Corp. | | | 1,746,027 | |
| | 76,760 | | | Pilgrim’s Pride Corp.* | | | 2,384,165 | |
| | 64,990 | | | Post Holdings, Inc.* | | | 5,149,158 | |
| | 10,255 | | | Sanderson Farms, Inc. | | | 1,423,189 | |
| | | | | | | | |
| | | | | | | 20,313,750 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.0% | |
| | 159,637 | | | Anika Therapeutics, Inc.* | | | 8,606,031 | |
| | 243,352 | | | AtriCure, Inc.* | | | 4,438,740 | |
| | 10,442 | | | Atrion Corp. | | | 6,584,725 | |
| | 211,003 | | | Cardiovascular Systems, Inc.* | | | 4,998,661 | |
| | 11,790 | | | Chemed Corp. | | | 2,865,206 | |
| | 27,542 | | | Encompass Health Corp. | | | 1,360,850 | |
| | 292,523 | | | Globus Medical, Inc. Class A* | | | 12,022,695 | |
| | 18,614 | | | Haemonetics Corp.* | | | 1,081,101 | |
| | 5,377 | | | HealthEquity, Inc.* | | | 250,891 | |
| | 218,581 | | | HMS Holdings Corp.* | | | 3,704,948 | |
| | 50,894 | | | ICU Medical, Inc.* | | | 10,993,104 | |
| | 13,275 | | | Inogen, Inc.* | | | 1,580,787 | |
| | 149,948 | | | Integra LifeSciences Holdings Corp.* | | | 7,176,511 | |
| | 41,771 | | | Lantheus Holdings, Inc.* | | | 854,217 | |
| | 9,383 | | | LHC Group, Inc.* | | | 574,709 | |
| | 6,544 | | | Magellan Health, Inc.* | | | 631,823 | |
| | 35,089 | | | Masimo Corp.* | | | 2,975,547 | |
| | 85,761 | | | Medidata Solutions, Inc.* | | | 5,434,675 | |
| | 13,053 | | | Merit Medical Systems, Inc.* | | | 563,890 | |
| | 17,347 | | | Molina Healthcare, Inc.* | | | 1,330,168 | |
| | 246,482 | | | Natus Medical, Inc.* | | | 9,415,612 | |
| | 197,348 | | | Omnicell, Inc.* | | | 9,571,378 | |
| | 241,488 | | | OraSure Technologies, Inc.* | | | 4,554,464 | |
| | 143,014 | | | Orthofix International N.V.* | | | 7,822,866 | |
| | 23,620 | | | Quidel Corp.* | | | 1,023,927 | |
| | 11,528 | | | Tivity Health, Inc.* | | | 421,348 | |
| | 44,969 | | | Triple-S Management Corp. Class B* | | | 1,117,480 | |
| | 76,789 | | | U.S. Physical Therapy, Inc. | | | 5,544,166 | |
| | 11,599 | | | WellCare Health Plans, Inc.* | | | 2,332,675 | |
| | | | | | | | |
| | | | | | | 119,833,195 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.3% | |
| | 26,496 | | | Medifast, Inc. | | | 1,849,686 | |
| | 26,859 | | | Usana Health Sciences, Inc.* | | | 1,988,909 | |
| | | | | | | | |
| | | | | | | 3,838,595 | |
| | | | | | | | |
| | | | Insurance - 0.9% | |
| | 53,100 | | | American Equity Investment Life Holding Co. | | | 1,631,763 | |
| | 47,333 | | | Greenlight Capital Re Ltd. Class A* | | | 951,393 | |
| | 9,059 | | | Health Insurance Innovations, Inc. Class A* | | | 226,022 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Insurance - 0.9% - (continued) | |
| | 152,465 | | | James River Group Holdings Ltd. | | $ | 6,100,125 | |
| | 145,205 | | | Maiden Holdings Ltd. | | | 958,353 | |
| | 4,637 | | | Primerica, Inc. | | | 470,888 | |
| | 54,135 | | | Universal Insurance Holdings, Inc. | | | 1,480,592 | |
| | | | | | | | |
| | | | | | | 11,819,136 | |
| | | | | | | | |
| | | | Materials - 4.1% | |
| | 12,461 | | | AdvanSix, Inc.* | | | 524,234 | |
| | 182,833 | | | Boise Cascade Co. | | | 7,295,037 | |
| | 28,708 | | | Chemours Co. | | | 1,437,122 | |
| | 24,550 | | | Cleveland-Cliffs, Inc.* | | | 177,006 | |
| | 529,183 | | | Graphic Packaging Holding Co. | | | 8,175,877 | |
| | 15,074 | | | Ingevity Corp.* | | | 1,062,265 | |
| | 15,865 | | | Koppers Holdings, Inc.* | | | 807,529 | |
| | 27,028 | | | Kronos Worldwide, Inc. | | | 696,512 | |
| | 348,721 | | | Louisiana-Pacific Corp.* | | | 9,157,413 | |
| | 504,758 | | | OMNOVA Solutions, Inc.* | | | 5,047,580 | |
| | 261,917 | | | PolyOne Corp. | | | 11,393,389 | |
| | 23,260 | | | Stepan Co. | | | 1,836,842 | |
| | 218,076 | | | Summit Materials, Inc. Class A* | | | 6,856,307 | |
| | | | | | | | |
| | | | | | | 54,467,113 | |
| | | | | | | | |
| | | | Media - 0.1% | |
| | 17,486 | | | MSG Networks, Inc. Class A* | | | 354,092 | |
| | 79,537 | | | New York Times Co. Class A | | | 1,471,434 | |
| | | | | | | | |
| | | | | | | 1,825,526 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 14.4% | |
| | 131,919 | | | Abeona Therapeutics, Inc.* | | | 2,090,916 | |
| | 100,549 | | | Aerie Pharmaceuticals, Inc.* | | | 6,007,803 | |
| | 48,779 | | | Agios Pharmaceuticals, Inc.* | | | 2,788,695 | |
| | 75,487 | | | Akebia Therapeutics, Inc.* | | | 1,122,492 | |
| | 515,895 | | | Amicus Therapeutics, Inc.* | | | 7,423,729 | |
| | 342,340 | | | Aratana Therapeutics, Inc.* | | | 1,800,708 | |
| | 125,400 | | | Arena Pharmaceuticals, Inc.* | | | 4,259,838 | |
| | 76,658 | | | Axovant Sciences Ltd.* | | | 403,988 | |
| | 30,132 | | | BioSpecifics Technologies Corp.* | | | 1,305,620 | |
| | 47,457 | | | Bluebird Bio, Inc.* | | | 8,452,092 | |
| | 122,641 | | | Blueprint Medicines Corp.* | | | 9,248,358 | |
| | 254,125 | | | Calithera Biosciences, Inc.* | | | 2,121,944 | |
| | 295,184 | | | Catalent, Inc.* | | | 12,126,159 | |
| | 168,454 | | | Coherus Biosciences, Inc.* | | | 1,482,395 | |
| | 100,537 | | | Corcept Therapeutics, Inc.* | | | 1,815,698 | |
| | 341,648 | | | Cytokinetics, Inc.* | | | 2,784,431 | |
| | 193,930 | | | Dermira, Inc.* | | | 5,393,193 | |
| | 26,572 | | | Dynavax Technologies Corp.* | | | 496,896 | |
| | 3,343 | | | Eagle Pharmaceuticals, Inc.* | | | 178,583 | |
| | 19,670 | | | Editas Medicine, Inc.* | | | 604,459 | |
| | 31,590 | | | Emergent Biosolutions, Inc.* | | | 1,467,987 | |
| | 7,956 | | | Esperion Therapeutics, Inc.* | | | 523,823 | |
| | 94,645 | | | Exact Sciences Corp.* | | | 4,972,648 | |
| | 63,773 | | | Exelixis, Inc.* | | | 1,938,699 | |
| | 22,670 | | | FibroGen, Inc.* | | | 1,074,558 | |
| | 171,038 | | | Five Prime Therapeutics, Inc.* | | | 3,749,153 | |
| | 108,425 | | | Flexion Therapeutics, Inc.* | | | 2,714,962 | |
| | 149,904 | | | GlycoMimetics, Inc.* | | | 2,516,888 | |
| | 41,972 | | | Halozyme Therapeutics, Inc.* | | | 850,353 | |
| | 30,216 | | | Ignyta, Inc.* | | | 806,767 | |
| | 153,360 | | | ImmunoGen, Inc.* | | | 983,038 | |
| | 34,158 | | | Immunomedics, Inc.* | | | 551,993 | |
| | 246,849 | | | Impax Laboratories, Inc.* | | | 4,110,036 | |
| | 119,031 | | | INC Research Holdings, Inc. Class A* | | | 5,189,752 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life
Sciences - 14.4% - (continued) | |
| | 165,802 | | | Innoviva, Inc.* | | $ | 2,352,730 | |
| | 283,029 | | | Intersect ENT, Inc.* | | | 9,170,140 | |
| | 118,764 | | | Ionis Pharmaceuticals, Inc.* | | | 5,973,829 | |
| | 97,529 | | | Ironwood Pharmaceuticals, Inc.* | | | 1,461,960 | |
| | 98,984 | | | Jounce Therapeutics, Inc.* | | | 1,262,046 | |
| | 41,202 | | | Kala Pharmaceuticals, Inc.* | | | 761,825 | |
| | 77,784 | | | Loxo Oncology, Inc.* | | | 6,547,857 | |
| | 50,544 | | | Luminex Corp. | | | 995,717 | |
| | 159,247 | | | Medicines Co.* | | | 4,353,813 | |
| | 147,340 | | | MiMedx Group, Inc.* | | | 1,857,957 | |
| | 91,217 | | | Momenta Pharmaceuticals, Inc.* | | | 1,272,477 | |
| | 24,192 | | | MyoKardia, Inc.* | | | 1,018,483 | |
| | 260,410 | | | NanoString Technologies, Inc.* | | | 1,945,263 | |
| | 14,647 | | | Nektar Therapeutics* | | | 874,719 | |
| | 86,741 | | | Neurocrine Biosciences, Inc.* | | | 6,730,234 | |
| | 254,788 | | | Otonomy, Inc.* | | | 1,414,073 | |
| | 566,289 | | | PDL BioPharma, Inc.* | | | 1,551,632 | |
| | 165,669 | | | Portola Pharmaceuticals, Inc.* | | | 8,064,767 | |
| | 41,921 | | | PRA Health Sciences, Inc.* | | | 3,817,746 | |
| | 12,095 | | | Puma Biotechnology, Inc.* | | | 1,195,591 | |
| | 78,100 | | | Revance Therapeutics, Inc.* | | | 2,792,075 | |
| | 476,133 | | | Rigel Pharmaceuticals, Inc.* | | | 1,847,396 | |
| | 53,237 | | | Sage Therapeutics, Inc.* | | | 8,768,666 | |
| | 48,514 | | | Sangamo Therapeutics, Inc.* | | | 795,630 | |
| | 90,364 | | | Spark Therapeutics, Inc.* | | | 4,646,517 | |
| | 27,936 | | | Sucampo Pharmaceuticals, Inc. Class A* | | | 501,451 | |
| | 58,094 | | | Supernus Pharmaceuticals, Inc.* | | | 2,315,046 | |
| | 110,852 | | | Ultragenyx Pharmaceutical, Inc.* | | | 5,141,316 | |
| | | | | | | | |
| | | | | | | 192,789,610 | |
| | | | | | | | |
| | | | Real Estate - 3.2% | |
| | 133,314 | | | CareTrust, Inc. REIT | | | 2,234,343 | |
| | 41,503 | | | Coresite Realty Corp. REIT | | | 4,727,192 | |
| | 156,540 | | | Corporate Office Properties Trust REIT | | | 4,570,968 | |
| | 236,978 | | | HFF, Inc. Class A, REIT | | | 11,526,610 | |
| | 219,994 | | | LaSalle Hotel Properties REIT | | | 6,175,231 | |
| | 7,030 | | | National Health Investors, Inc. REIT | | | 529,921 | |
| | 94,187 | | | Physicians Realty Trust REIT | | | 1,694,424 | |
| | 46,924 | | | Potlatch Corp. REIT | | | 2,341,508 | |
| | 94,810 | | | RLJ Lodging Trust REIT | | | 2,082,976 | |
| | 419,061 | | | Sunstone Hotel Investors, Inc. REIT | | | 6,927,078 | |
| | | | | | | | |
| | | | | | | 42,810,251 | |
| | | | | | | | |
| | | | Retailing - 3.9% | |
| | 15,296 | | | Big Lots, Inc. | | | 858,870 | |
| | 35,253 | | | Buckle, Inc. | | | 837,259 | |
| | 47,895 | | | Burlington Stores, Inc.* | | | 5,892,522 | |
| | 206,081 | | | Caleres, Inc. | | | 6,899,592 | |
| | 21,873 | | | Cato Corp. Class A | | | 348,218 | |
| | 15,263 | | | Children’s Place, Inc. | | | 2,218,477 | |
| | 209,912 | | | Core-Mark Holding Co., Inc. | | | 6,629,021 | |
| | 168,296 | | | Five Below, Inc.* | | | 11,161,391 | |
| | 17,820 | | | Floor & Decor Holdings, Inc. Class A* | | | 867,478 | |
| | 86,670 | | | Groupon, Inc.* | | | 442,017 | |
| | 257,944 | | | Michaels Cos., Inc.* | | | 6,239,665 | |
| | 22,300 | | | National Vision Holdings, Inc.* | | | 905,603 | |
| | 2,692 | | | Nutrisystem, Inc. | | | 141,599 | |
| | 28,671 | | | PetMed Express, Inc. | | | 1,304,531 | |
| | 7,921 | | | RH* | | | 682,869 | |
| | 31,259 | | | Sleep Number Corp.* | | | 1,175,026 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Retailing - 3.9% - (continued) | |
| | 23,499 | | | Tailored Brands, Inc. | | $ | 512,983 | |
| | 62,603 | | | Wayfair, Inc. Class A* | | | 5,025,143 | |
| | | | | | | | |
| | | | | | | 52,142,264 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.6% | |
| | 40,564 | | | Advanced Energy Industries, Inc.* | | | 2,737,259 | |
| | 152,268 | | | Amkor Technology, Inc.* | | | 1,530,294 | |
| | 229,897 | | | Axcelis Technologies, Inc.* | | | 6,598,044 | |
| | 13,092 | | | Brooks Automation, Inc. | | | 312,244 | |
| | 10,577 | | | Cabot Microelectronics Corp. | | | 995,084 | |
| | 34,307 | | | Cirrus Logic, Inc.* | | | 1,779,161 | |
| | 193,455 | | | Cohu, Inc. | | | 4,246,337 | |
| | 315,154 | | | Entegris, Inc. | | | 9,596,439 | |
| | 28,279 | | | FormFactor, Inc.* | | | 442,566 | |
| | 301,447 | | | Integrated Device Technology, Inc.* | | | 8,962,019 | |
| | 103,449 | | | Kulicke & Soffa Industries, Inc.* | | | 2,517,432 | |
| | 127,190 | | | MACOM Technology Solutions Holdings, Inc.* | | | 4,138,763 | |
| | 208,138 | | | MaxLinear, Inc.* | | | 5,499,006 | |
| | 128,962 | | | MKS Instruments, Inc. | | | 12,186,909 | |
| | 5,856 | | | Ultra Clean Holdings, Inc.* | | | 135,215 | |
| | | | | | | | |
| | | | | | | 61,676,772 | |
| | | | | | | | |
| | | | Software & Services - 16.4% | |
| | 113,735 | | | Aspen Technology, Inc.* | | | 7,529,257 | |
| | 61,716 | | | Blackbaud, Inc. | | | 5,831,545 | |
| | 274,553 | | | Blackhawk Network Holdings, Inc.* | | | 9,787,814 | |
| | 245,957 | | | Blucora, Inc.* | | | 5,435,650 | |
| | 15,820 | | | Bottomline Technologies de, Inc.* | | | 548,638 | |
| | 62,048 | | | CACI International, Inc. Class A* | | | 8,212,053 | |
| | 380,284 | | | Cloudera, Inc.* | | | 6,282,292 | |
| | 29,652 | | | CommVault Systems, Inc.* | | | 1,556,730 | |
| | 26,354 | | | CSG Systems International, Inc. | | | 1,154,832 | |
| | 140,343 | | | EPAM Systems, Inc.* | | | 15,077,048 | |
| | 237,780 | | | Etsy, Inc.* | | | 4,862,601 | |
| | 116,245 | | | Everi Holdings, Inc.* | | | 876,487 | |
| | 36,665 | | | Evertec, Inc. | | | 500,477 | |
| | 119,339 | | | ExlService Holdings, Inc.* | | | 7,202,109 | |
| | 61,766 | | | Fair Isaac Corp. | | | 9,462,551 | |
| | 256,576 | | | Five9, Inc.* | | | 6,383,611 | |
| | 9,800 | | | ForeScout Technologies, Inc.* | | | 312,522 | |
| | 158,072 | | | GrubHub, Inc.* | | | 11,349,570 | |
| | 77,346 | | | Guidewire Software, Inc.* | | | 5,743,714 | |
| | 53,853 | | | Hortonworks, Inc.* | | | 1,082,984 | |
| | 112,089 | | | HubSpot, Inc.* | | | 9,908,668 | |
| | 96,777 | | | j2 Global, Inc. | | | 7,261,178 | |
| | 79,909 | | | LogMeIn, Inc. | | | 9,149,580 | |
| | 142,978 | | | MAXIMUS, Inc. | | | 10,234,365 | |
| | 15,282 | | | New Relic, Inc.* | | | 882,841 | |
| | 80,024 | | | NIC, Inc. | | | 1,328,398 | |
| | 118,606 | | | Nutanix, Inc. Class A* | | | 4,184,420 | |
| | 167,078 | | | Okta, Inc.* | | | 4,278,868 | |
| | 14,609 | | | Paycom Software, Inc.* | | | 1,173,541 | |
| | 120,364 | | | Paylocity Holding Corp.* | | | 5,676,366 | |
| | 108,300 | | | Pegasystems, Inc. | | | 5,106,345 | |
| | 67,105 | | | Progress Software Corp. | | | 2,856,660 | |
| | 14,345 | | | Proofpoint, Inc.* | | | 1,273,979 | |
| | 72,627 | | | PTC, Inc.* | | | 4,413,543 | |
| | 81,680 | | | Q2 Holdings, Inc.* | | | 3,009,908 | |
| | 18,831 | | | Qualys, Inc.* | | | 1,117,620 | |
| | 20,808 | | | RingCentral, Inc. Class A* | | | 1,007,107 | |
| | 87,901 | | | Science Applications International Corp. | | | 6,730,580 | |
| | 43,756 | | | Shutterstock, Inc.* | | | 1,882,821 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Software & Services - 16.4% - (continued) | |
| | 2,974 | | | Stamps.com, Inc.* | | $ | 559,112 | |
| | 63,513 | | | Sykes Enterprises, Inc.* | | | 1,997,484 | |
| | 41,432 | | | Travelport Worldwide Ltd. | | | 541,516 | |
| | 28,807 | | | Tyler Technologies, Inc.* | | | 5,100,279 | |
| | 50,386 | | | Web.com Group, Inc.* | | | 1,098,415 | |
| | 79,971 | | | WEX, Inc.* | | | 11,294,304 | |
| | 222,258 | | | Zendesk, Inc.* | | | 7,521,211 | |
| | | | | | | | |
| | | | | | | 218,781,594 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.3% | |
| | 233,489 | | | Ciena Corp.* | | | 4,886,925 | |
| | 32,179 | | | Control4 Corp.* | | | 957,647 | |
| | 116,870 | | | ePlus, Inc.* | | | 8,788,624 | |
| | 130,476 | | | Extreme Networks, Inc.* | | | 1,633,560 | |
| | 188,642 | | | Fabrinet* | | | 5,414,025 | |
| | 117,280 | | | Itron, Inc.* | | | 7,998,496 | |
| | 27,442 | | | Methode Electronics, Inc. | | | 1,100,424 | |
| | 66,265 | | | Rogers Corp.* | | | 10,729,629 | |
| | 17,936 | | | Sanmina Corp.* | | | 591,888 | |
| | 122,614 | | | Vishay Intertechnology, Inc. | | | 2,544,240 | |
| | | | | | | | |
| | | | | | | 44,645,458 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.7% | |
| | 353,834 | | | ORBCOMM, Inc.* | | | 3,602,030 | |
| | 504,030 | | | Vonage Holdings Corp.* | | | 5,125,985 | |
| | | | | | | | |
| | | | | | | 8,728,015 | |
| | | | | | | | |
| | | | Transportation - 2.1% | |
| | 94,128 | | | Genesee & Wyoming, Inc. Class A* | | | 7,410,697 | |
| | 41,070 | | | Hawaiian Holdings, Inc. | | | 1,636,640 | |
| | 294,620 | | | Knight-Swift Transportation Holdings, Inc. | | | 12,880,786 | |
| | 270,268 | | | Marten Transport Ltd. | | | 5,486,440 | |
| | 11,829 | | | Saia, Inc.* | | | 836,902 | |
| | | | | | | | |
| | | | | | | 28,251,465 | |
| | | | | | | | |
| | | | Utilities - 0.3% | |
| | 195,100 | | | Evoqua Water Technologies Corp.* | | | 4,625,821 | |
| | | | | | | | |
| | | | Total Common Stocks
(cost $1,033,757,337) | | $ | 1,322,016,200 | |
| | | | | | | | |
| WARRANTS - 0.0% | |
| | | | Diversified Financials - 0.0% | |
| | 891 | | | Emergent Capital, Inc. Expires 4/11/19*(1)(2) | | $ | — | |
| | | | | | | | |
| | |
| | | | Total Warrants
(cost $—) | | $ | — | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,033,757,337) | | $ | 1,322,016,200 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.7% | |
| | | | Other Investment Pools & Funds - 0.7% | |
| | 9,527,710 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(3) | | $ | 9,527,710 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $9,527,710) | | $ | 9,527,710 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,043,285,047) | | | 99.7 | % | | $ | 1,331,543,910 | |
| | | | Other Assets and Liabilities | | | 0.3 | % | | | 3,488,412 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,335,032,322 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of this security was $0, 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 December 31, 2017, the aggregate fair value of this security was $0, which represented 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) | Current yield as of period end. |
| † | 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.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 25,354,820 | | | $ | 25,354,820 | | | $ | — | | | $ | — | |
Banks | | | 46,663,148 | | | | 46,663,148 | | | | — | | | | — | |
Capital Goods | | | 132,310,866 | | | | 132,310,866 | | | | — | | | | — | |
Commercial & Professional Services | | | 70,581,921 | | | | 70,581,921 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 66,752,773 | | | | 66,752,773 | | | | — | | | | — | |
Consumer Services | | | 55,681,713 | | | | 55,681,713 | | | | — | | | | — | |
Diversified Financials | | | 18,594,041 | | | | 18,594,041 | | | | — | | | | — | |
Energy | | | 19,899,968 | | | | 19,899,968 | | | | — | | | | — | |
Food & Staples Retailing | | | 19,628,385 | | | | 19,628,385 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 20,313,750 | | | | 20,313,750 | | | | — | | | | — | |
Health Care Equipment & Services | | | 119,833,195 | | | | 119,833,195 | | | | — | | | | — | |
Household & Personal Products | | | 3,838,595 | | | | 3,838,595 | | | | — | | | | — | |
Insurance | | | 11,819,136 | | | | 11,819,136 | | | | — | | | | — | |
Materials | | | 54,467,113 | | | | 54,467,113 | | | | — | | | | — | |
Media | | | 1,825,526 | | | | 1,825,526 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 192,789,610 | | | | 192,789,610 | | | | — | | | | — | |
Real Estate | | | 42,810,251 | | | | 42,810,251 | | | | — | | | | — | |
Retailing | | | 52,142,264 | | | | 52,142,264 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 61,676,772 | | | | 61,676,772 | | | | — | | | | — | |
Software & Services | | | 218,781,594 | | | | 218,781,594 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 44,645,458 | | | | 44,645,458 | | | | — | | | | — | |
Telecommunication Services | | | 8,728,015 | | | | 8,728,015 | | | | — | | | | — | |
Transportation | | | 28,251,465 | | | | 28,251,465 | | | | — | | | | — | |
Utilities | | | 4,625,821 | | | | 4,625,821 | | | | — | | | | ��� | |
Warrants | | | — | | | | — | | | | 0 | | | | — | |
Short-Term Investments | | | 9,527,710 | | | | 9,527,710 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,331,543,910 | | | $ | 1,331,543,910 | | | $ | 0 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.8% | | | |
| | | | Automobiles & Components - 0.1% | |
| | 3,984 | | | Cooper Tire & Rubber Co. | | $ | 140,834 | |
| | 4,322 | | | Tenneco, Inc. | | | 253,010 | |
| | 1,458 | | | Visteon Corp.* | | | 182,454 | |
| | | | | | | | |
| | | | | | | 576,298 | |
| | | | | | | | |
| | | | Banks - 6.9% | |
| | 2,426 | | | FCB Financial Holdings, Inc. Class A* | | | 123,241 | |
| | 3,485 | | | First Busey Corp. | | | 104,341 | |
| | 3,411 | | | First Hawaiian, Inc. | | | 99,533 | |
| | 2,964 | | | Great Western Bancorp, Inc. | | | 117,967 | |
| | 2,305 | | | IBERIABANK Corp. | | | 178,637 | |
| | 217,486 | | | MB Financial, Inc. | | | 9,682,477 | |
| | 708,505 | | | MGIC Investment Corp.* | | | 9,997,006 | |
| | 2,054 | | | NMI Holdings, Inc. Class A* | | | 34,918 | |
| | 492,949 | | | Sterling Bancorp | | | 12,126,545 | |
| | 166,274 | | | Western Alliance Bancorp* | | | 9,414,434 | |
| | | | | | | | |
| | | | | | | 41,879,099 | |
| | | | | | | | |
| | | | Capital Goods - 11.5% | |
| | 5,131 | | | AAON, Inc. | | | 188,308 | |
| | 164,988 | | | Altra Industrial Motion Corp. | | | 8,315,395 | |
| | 1,488 | | | American Woodmark Corp.* | | | 193,812 | |
| | 3,182 | | | Armstrong World Industries, Inc.* | | | 192,670 | |
| | 2,913 | | | AZZ, Inc. | | | 148,854 | |
| | 131,886 | | | Beacon Roofing Supply, Inc.* | | | 8,409,051 | |
| | 164,252 | | | BMC Stock Holdings, Inc.* | | | 4,155,576 | |
| | 4,554 | | | Generac Holdings, Inc.* | | | 225,514 | |
| | 1,730 | | | HEICO Corp. Class A | | | 136,757 | |
| | 189,223 | | | ITT, Inc. | | | 10,098,832 | |
| | 284,754 | | | JELD-WEN Holding, Inc.* | | | 11,210,765 | |
| | 145,197 | | | Kaman Corp. | | | 8,543,391 | |
| | 6,307 | | | Milacron Holdings Corp.* | | | 120,716 | |
| | 561,834 | | | Rexnord Corp.* | | | 14,618,921 | |
| | 1,679 | | | SiteOne Landscape Supply, Inc.* | | | 128,779 | |
| | 57,635 | | | SPX FLOW, Inc.* | | | 2,740,544 | |
| | 1,612 | | | Teledyne Technologies, Inc.* | | | 292,014 | |
| | 4,327 | | | Welbilt, Inc.* | | | 101,728 | |
| | | | | | | | |
| | | | | | | 69,821,627 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 2.0% | |
| | 4,555 | | | Advanced Disposal Services, Inc.* | | | 109,046 | |
| | 137,194 | | | Brink’s Co. | | | 10,797,168 | |
| | 2,637 | | | Deluxe Corp. | | | 202,627 | |
| | 2,882 | | | Exponent, Inc. | | | 204,910 | |
| | 2,535 | | | Huron Consulting Group, Inc.* | | | 102,541 | |
| | 3,830 | | | On Assignment, Inc.* | | | 246,154 | |
| | 2,767 | | | Viad Corp. | | | 153,292 | |
| | 1,928 | | | WageWorks, Inc.* | | | 119,536 | |
| | | | | | | | |
| | | | | | | 11,935,274 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 7.9% | | | |
| | 96,118 | | | Carter’s, Inc. | | | 11,292,904 | |
| | 105,169 | | | Oxford Industries, Inc. | | | 7,907,657 | |
| | 225,239 | | | Skechers USA, Inc. Class A* | | | 8,523,044 | |
| | 7,176 | | | Steven Madden Ltd.* | | | 335,119 | |
| | 62,004 | | | TopBuild Corp.* | | | 4,696,183 | |
| | 283,386 | | | TRI Pointe Group, Inc.* | | | 5,078,277 | |
| | 211,787 | | | Under Armour, Inc. Class C* | | | 2,821,003 | |
| | 236,700 | | | Wolverine World Wide, Inc. | | | 7,545,996 | |
| | | | | | | | |
| | | | | | | 48,200,183 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.8% - (continued) | | | |
| | | | Consumer Services - 8.7% | | | |
| | 241,082 | | | Boyd Gaming Corp. | | $ | 8,449,924 | |
| | 134,598 | | | Dave & Buster’s Entertainment, Inc.* | | | 7,425,772 | |
| | 909,759 | | | DraftKings, Inc.*(1)(2)(3)(4) | | | 1,291,858 | |
| | 4,026 | | | Dunkin’ Brands Group, Inc. | | | 259,556 | |
| | 6,823 | | | La Quinta Holdings, Inc.* | | | 125,953 | |
| | 76,119 | | | Marriott Vacations Worldwide Corp. | | | 10,292,050 | |
| | 2,807 | | | Papa John’s International, Inc. | | | 157,501 | |
| | 506,116 | | | Planet Fitness, Inc. Class A* | | | 17,526,797 | |
| | 195,774 | | | Wingstop, Inc. | | | 7,631,270 | |
| | | | | | | | |
| | | | | | | 53,160,681 | |
| | | | | | | | |
| | | | Diversified Financials - 0.1% | | | |
| | 2,523 | | | Evercore, Inc. Class A | | | 227,070 | |
| | 2,853 | | | OneMain Holdings, Inc.* | | | 74,149 | |
| | | | | | | | |
| | | | | | | 301,219 | |
| | | | | | | | |
| | | | Energy - 1.4% | | | |
| | 412,975 | | | Centennial Resource Development, Inc. Class A* | | | 8,176,905 | |
| | 2,645 | | | PDC Energy, Inc.* | | | 136,323 | |
| | 6,800 | | | ProPetro Holding Corp.* | | | 137,088 | |
| | 6,600 | | | WildHorse Resource Development Corp.* | | | 121,506 | |
| | | | | | | | |
| | | | | | | 8,571,822 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.6% | | | |
| | 1,364 | | | Casey’s General Stores, Inc. | | | 152,686 | |
| | 291,578 | | | Performance Food Group Co.* | | | 9,651,232 | |
| | 2,179 | | | PriceSmart, Inc. | | | 187,612 | |
| | | | | | | | |
| | | | | | | 9,991,530 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.3% | | | |
| | 420,875 | | | Blue Buffalo Pet Products, Inc.* | | | 13,800,491 | |
| | 11,322 | | | Hostess Brands, Inc.* | | | 167,679 | |
| | 1,598 | | | Post Holdings, Inc.* | | | 126,610 | |
| | | | | | | | |
| | | | | | | 14,094,780 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.6% | | | |
| | 3,368 | | | Anika Therapeutics, Inc.* | | | 181,569 | |
| | 5,868 | | | AtriCure, Inc.* | | | 107,032 | |
| | 258 | | | Atrion Corp. | | | 162,695 | |
| | 5,016 | | | Cardiovascular Systems, Inc.* | | | 118,829 | |
| | 62,228 | | | DexCom, Inc.* | | | 3,571,265 | |
| | 6,123 | | | Globus Medical, Inc. Class A* | | | 251,655 | |
| | 58,298 | | | HealthEquity, Inc.* | | | 2,720,185 | |
| | 5,252 | | | HMS Holdings Corp.* | | | 89,021 | |
| | 1,253 | | | ICU Medical, Inc.* | | | 270,648 | |
| | 197,236 | | | Insulet Corp.* | | | 13,609,284 | |
| | 3,502 | | | Integra LifeSciences Holdings Corp.* | | | 167,606 | |
| | 1,670 | | | Medidata Solutions, Inc.* | | | 105,828 | |
| | 6,149 | | | Natus Medical, Inc.* | | | 234,892 | |
| | 4,694 | | | Omnicell, Inc.* | | | 227,659 | |
| | 293,645 | | | OraSure Technologies, Inc.* | | | 5,538,145 | |
| | 3,520 | | | Orthofix International N.V.* | | | 192,544 | |
| | 1,813 | | | U.S. Physical Therapy, Inc. | | | 130,898 | |
| | | | | | | | |
| | | | | | | 27,679,755 | |
| | | | | | | | |
| | | | Insurance - 0.0% | | | |
| | 3,557 | | | James River Group Holdings Ltd. | | | 142,315 | |
| | | | | | | | |
| | |
| | | | Materials - 2.8% | | | |
| | 4,039 | | | Boise Cascade Co. | | | 161,156 | |
| | 113,528 | | | Carpenter Technology Corp. | | | 5,788,793 | |
| | 309,268 | | | Ferro Corp.* | | | 7,295,632 | |
| | 12,605 | | | Graphic Packaging Holding Co. | | | 194,747 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.8% - (continued) | | | |
| | | | Materials - 2.8% - (continued) | | | |
| | 40,021 | | | Ingevity Corp.* | | $ | 2,820,280 | |
| | 6,400 | | | Louisiana-Pacific Corp.* | | | 168,064 | |
| | 12,416 | | | OMNOVA Solutions, Inc.* | | | 124,160 | |
| | 6,085 | | | PolyOne Corp. | | | 264,698 | |
| | 5,217 | | | Summit Materials, Inc. Class A* | | | 164,023 | |
| | | | | | | | |
| | | | | | | 16,981,553 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.6% | |
| | 3,235 | | | Abeona Therapeutics, Inc.* | | | 51,275 | |
| | 117,648 | | | Aerie Pharmaceuticals, Inc.* | | | 7,029,468 | |
| | 1,192 | | | Agios Pharmaceuticals, Inc.* | | | 68,147 | |
| | 12,669 | | | Amicus Therapeutics, Inc.* | | | 182,307 | |
| | 8,369 | | | Aratana Therapeutics, Inc.* | | | 44,021 | |
| | 3,000 | | | Arena Pharmaceuticals, Inc.* | | | 101,910 | |
| | 25,138 | | | Bluebird Bio, Inc.* | | | 4,477,078 | |
| | 63,003 | | | Blueprint Medicines Corp.* | | | 4,751,056 | |
| | 4,537 | | | Calithera Biosciences, Inc.* | | | 37,884 | |
| | 5,832 | | | Catalent, Inc.* | | | 239,579 | |
| | 3,881 | | | Coherus Biosciences, Inc.* | | | 34,153 | |
| | 5,990 | | | Cytokinetics, Inc.* | | | 48,819 | |
| | 106,461 | | | Dermira, Inc.* | | | 2,960,680 | |
| | 212,563 | | | Exact Sciences Corp.* | | | 11,168,060 | |
| | 4,311 | | | Five Prime Therapeutics, Inc.* | | | 94,497 | |
| | 2,715 | | | Flexion Therapeutics, Inc.* | | | 67,984 | |
| | 51,090 | | | Galapagos N.V. ADR* | | | 4,790,198 | |
| | 88,132 | | | Global Blood Therapeutics, Inc.* | | | 3,467,994 | |
| | 2,442 | | | GlycoMimetics, Inc.* | | | 41,001 | |
| | 6,189 | | | Impax Laboratories, Inc.* | | | 103,047 | |
| | 2,802 | | | INC Research Holdings, Inc. Class A* | | | 122,167 | |
| | 6,641 | | | Intersect ENT, Inc.* | | | 215,168 | |
| | 57,387 | | | Ionis Pharmaceuticals, Inc.* | | | 2,886,566 | |
| | 295,468 | | | Ironwood Pharmaceuticals, Inc.* | | | 4,429,065 | |
| | 2,488 | | | Jounce Therapeutics, Inc.* | | | 31,722 | |
| | 1,398 | | | Kala Pharmaceuticals, Inc.* | | | 25,849 | |
| | 25,790 | | | Loxo Oncology, Inc.* | | | 2,171,002 | |
| | 3,861 | | | Medicines Co.* | | | 105,560 | |
| | 6,136 | | | NanoString Technologies, Inc.* | | | 45,836 | |
| | 81,300 | | | Nektar Therapeutics* | | | 4,855,236 | |
| | 69,707 | | | Neurocrine Biosciences, Inc.* | | | 5,408,566 | |
| | 6,547 | | | Otonomy, Inc.* | | | 36,336 | |
| | 85,762 | | | Portola Pharmaceuticals, Inc.* | | | 4,174,894 | |
| | 76,954 | | | PRA Health Sciences, Inc.* | | | 7,008,201 | |
| | 1,900 | | | Revance Therapeutics, Inc.* | | | 67,925 | |
| | 11,715 | | | Rigel Pharmaceuticals, Inc.* | | | 45,454 | |
| | 31,877 | | | Sage Therapeutics, Inc.* | | | 5,250,461 | |
| | 2,267 | | | Spark Therapeutics, Inc.* | | | 116,569 | |
| | 2,622 | | | Ultragenyx Pharmaceutical, Inc.* | | | 121,608 | |
| | | | | | | | |
| | | | | | | 76,877,343 | |
| | | | | | | | |
| | | | Real Estate - 3.4% | |
| | 30,151 | | | Coresite Realty Corp. REIT | | | 3,434,199 | |
| | 144,482 | | | Corporate Office Properties Trust REIT | | | 4,218,874 | |
| | 5,580 | | | HFF, Inc. Class A, REIT | | | 271,411 | |
| | 285,103 | | | Kennedy-Wilson Holdings, Inc. REIT | | | 4,946,537 | |
| | 149,107 | | | LaSalle Hotel Properties REIT | | | 4,185,434 | |
| | 60,805 | | | QTS Realty Trust, Inc. Class A, REIT | | | 3,293,199 | |
| | 10,194 | | | Sunstone Hotel Investors, Inc. REIT | | | 168,507 | |
| | | | | | | | |
| | | | | | | 20,518,161 | |
| | | | | | | | |
| | | | Retailing - 1.8% | | | |
| | 5,016,400 | | | Allstar Co.*(1)(2)(3)(4) | | | 1,003,280 | |
| | 1,186 | | | Burlington Stores, Inc.* | | | 145,914 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.8% - (continued) | | | |
| | | | Retailing - 1.8% - (continued) | | | |
| | 5,031 | | | Caleres, Inc. | | $ | 168,438 | |
| | 4,991 | | | Core-Mark Holding Co., Inc. | | | 157,616 | |
| | 3,563 | | | Five Below, Inc.* | | | 236,298 | |
| | 1,000 | | | Floor & Decor Holdings, Inc. Class A* | | | 48,680 | |
| | 6,448 | | | Michaels Cos., Inc.* | | | 155,977 | |
| | 500 | | | National Vision Holdings, Inc.* | | | 20,305 | |
| | 43,094 | | | Tory Burch LLC*(1)(2)(3)(4) | | | 2,119,795 | |
| | 83,397 | | | Wayfair, Inc. Class A* | | | 6,694,277 | |
| | | | | | | | |
| | | | | | | 10,750,580 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.7% | |
| | 168,759 | | | Axcelis Technologies, Inc.* | | | 4,843,383 | |
| | 4,647 | | | Cohu, Inc. | | | 102,002 | |
| | 6,500 | | | Entegris, Inc. | | | 197,925 | |
| | 7,138 | | | Integrated Device Technology, Inc.* | | | 212,213 | |
| | 3,131 | | | MACOM Technology Solutions Holdings, Inc.* | | | 101,883 | |
| | 4,942 | | | MaxLinear, Inc.* | | | 130,567 | |
| | 2,185 | | | MKS Instruments, Inc. | | | 206,482 | |
| | 488,500 | | | Tower Semiconductor Ltd.* | | | 16,648,080 | |
| | | | | | | | |
| | | | | | | 22,442,535 | |
| | | | | | | | |
| | | | Software & Services - 17.8% | |
| | 183,060 | | | 2U, Inc.* | | | 11,809,201 | |
| | 2,686 | | | Aspen Technology, Inc.* | | | 177,813 | |
| | 1,511 | | | Blackbaud, Inc. | | | 142,774 | |
| | 91,250 | | | Blackhawk Network Holdings, Inc.* | | | 3,253,062 | |
| | 5,230 | | | Blucora, Inc.* | | | 115,583 | |
| | 1,553 | | | CACI International, Inc. Class A* | | | 205,540 | |
| | 262,627 | | | Cloudera, Inc.* | | | 4,338,598 | |
| | 26,778 | | | CoStar Group, Inc.* | | | 7,951,727 | |
| | 80,462 | | | EPAM Systems, Inc.* | | | 8,644,033 | |
| | 5,938 | | | Etsy, Inc.* | | | 121,432 | |
| | 2,909 | | | ExlService Holdings, Inc.* | | | 175,558 | |
| | 61,891 | | | Fair Isaac Corp. | | | 9,481,701 | |
| | 6,087 | | | Five9, Inc.* | | | 151,445 | |
| | 200 | | | ForeScout Technologies, Inc.* | | | 6,378 | |
| | 153,150 | | | GoDaddy, Inc. Class A* | | | 7,700,382 | |
| | 51,305 | | | GrubHub, Inc.* | | | 3,683,699 | |
| | 88,195 | | | Guidewire Software, Inc.* | | | 6,549,361 | |
| | 111,487 | | | HubSpot, Inc.* | | | 9,855,451 | |
| | 2,327 | | | j2 Global, Inc. | | | 174,595 | |
| | 1,939 | | | LogMeIn, Inc. | | | 222,016 | |
| | 2,159 | | | MAXIMUS, Inc. | | | 154,541 | |
| | 326,259 | | | Mimecast Ltd.* | | | 9,353,846 | |
| | 2,954 | | | Nutanix, Inc. Class A* | | | 104,217 | |
| | 172,639 | | | Okta, Inc.* | | | 4,421,285 | |
| | 3,014 | | | Paylocity Holding Corp.* | | | 142,140 | |
| | 2,395 | | | Pegasystems, Inc. | | | 112,924 | |
| | 46,880 | | | Proofpoint, Inc.* | | | 4,163,413 | |
| | 1,814 | | | PTC, Inc.* | | | 110,237 | |
| | 2,002 | | | Q2 Holdings, Inc.* | | | 73,774 | |
| | 2,183 | | | Science Applications International Corp. | | | 167,152 | |
| | 101,957 | | | Trade Desk, Inc. Class A* | | | 4,662,494 | |
| | 679 | | | Tyler Technologies, Inc.* | | | 120,217 | |
| | 157,023 | | | Veracode, Inc. Escrow*(1)(2)(3)(4) | | | 631,232 | |
| | 1,902 | | | WEX, Inc.* | | | 268,619 | |
| | 5,622 | | | Zendesk, Inc.* | | | 190,248 | |
| | 124,099 | | | Zillow Group, Inc. Class C* | | | 5,078,131 | |
| | 944,673 | | | Zynga, Inc. Class A* | | | 3,778,692 | |
| | | | | | | | |
| | | | | | | 108,293,511 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 96.8% - (continued) | | | |
| | | | Technology Hardware & Equipment - 3.7% | |
| | 5,650 | | | Ciena Corp.* | | $ | 118,255 | |
| | 2,696 | | | ePlus, Inc.* | | | 202,739 | |
| | 4,726 | | | Fabrinet* | | | 135,636 | |
| | 167,167 | | | II-VI, Inc.* | | | 7,848,491 | |
| | 2,950 | | | Itron, Inc.* | | | 201,190 | |
| | 1,517 | | | Rogers Corp.* | | | 245,633 | |
| | 131,818 | | | Zebra Technologies Corp. Class A* | | | 13,682,708 | |
| | | | | | | | |
| | | | | | | 22,434,652 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.0% | |
| | 8,378 | | | ORBCOMM, Inc.* | | | 85,288 | |
| | 12,321 | | | Vonage Holdings Corp.* | | | 125,305 | |
| | | | | | | | |
| | | | | | | 210,593 | |
| | | | | | | | |
| | | | Transportation - 3.9% | |
| | 2,205 | | | Genesee & Wyoming, Inc. Class A* | | | 173,600 | |
| | 417,608 | | | JetBlue Airways Corp.* | | | 9,329,363 | |
| | 172,914 | | | Knight-Swift Transportation Holdings, Inc. | | | 7,559,800 | |
| | 6,520 | | | Marten Transport Ltd. | | | 132,356 | |
| | 230,315 | | | Schneider National, Inc. Class B | | | 6,577,796 | |
| | | | | | | | |
| | | | | | | 23,772,915 | |
| | | | | | | | |
| | | | Utilities - 0.0% | | | |
| | 4,800 | | | Evoqua Water Technologies Corp.* | | | 113,808 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $474,037,245) | | $ | 588,750,234 | |
| | | | | | | | |
| |
| EXCHANGE-TRADED FUNDS - 0.2% | | | |
| | | | Other Investment Pools & Funds - 0.2% | |
| | 7,227 | | | iShares Russell 2000 Growth ETF | | $ | 1,349,281 | |
| | | | | | | | |
| | |
| | | | Total Exchange-Traded Funds
(cost $1,186,208) | | $ | 1,349,281 | |
| | | | | | | | |
| |
| PREFERRED STOCKS - 1.6% | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 0.0% | |
| | 92,420 | | | Sancilio & Co., Inc. Series D*(1)(2)(3)(4) | | $ | 281,881 | |
| | | | | | | | |
| | |
| | | | Software & Services - 1.6% | | | |
| | 410,300 | | | MarkLogic Corp. Series F*(1)(2)(3)(4) | | | 4,020,940 | |
| | 1,026,132 | | | Zuora, Inc. Series F*(1)(2)(3)(4) | | | 5,469,284 | |
| | | | | | | | |
| | | | | | | 9,490,224 | |
| | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $8,954,088) | | $ | 9,772,105 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.4% | |
| | | | Retailing - 0.4% | |
| | 74,004 | | | Honest Co. Series D*(1)(2)(3)(4) | | $ | 2,617,521 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $3,386,053) | | $ | 2,617,521 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $487,563,594) | | $ | 602,489,141 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 1.1% | | | |
| | | | Other Investment Pools & Funds - 1.1% | | | |
| | 6,552,562 | | | BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 1.17%(5) | | $ | 6,552,562 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $6,552,562) | | $ | 6,552,562 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $494,116,156) | | | 100.1 | % | | $ | 609,041,703 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (838,975 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 608,202,728 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Investment valued using significant unobservable inputs. |
| (2) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $17,435,791, which represents 2.9% of total net assets. |
| (3) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $17,435,791, which represented 2.9% of total net assets. |
| (4) | 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 December 31, 2017, the aggregate fair value of these securities was $17,435,791, which represented 2.9% 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. |
| (5) | Current yield as of period end. |
| † | 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 576,298 | | | $ | 576,298 | | | $ | — | | | $ | — | |
Banks | | | 41,879,099 | | | | 41,879,099 | | | | — | | | | — | |
Capital Goods | | | 69,821,627 | | | | 69,821,627 | | | | — | | | | — | |
Commercial & Professional Services | | | 11,935,274 | | | | 11,935,274 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 48,200,183 | | | | 48,200,183 | | | | — | | | | — | |
Consumer Services | | | 53,160,681 | | | | 51,868,823 | | | | — | | | | 1,291,858 | |
Diversified Financials | | | 301,219 | | | | 301,219 | | | | — | | | | — | |
Energy | | | 8,571,822 | | | | 8,571,822 | | | | — | | | | — | |
Food & Staples Retailing | | | 9,991,530 | | | | 9,991,530 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 14,094,780 | | | | 14,094,780 | | | | — | | | | — | |
Health Care Equipment & Services | | | 27,679,755 | | | | 27,679,755 | | | | — | | | | — | |
Insurance | | | 142,315 | | | | 142,315 | | | | — | | | | — | |
Materials | | | 16,981,553 | | | | 16,981,553 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 76,877,343 | | | | 76,877,343 | | | | — | | | | — | |
Real Estate | | | 20,518,161 | | | | 20,518,161 | | | | — | | | | — | |
Retailing | | | 10,750,580 | | | | 7,627,505 | | | | — | | | | 3,123,075 | |
Semiconductors & Semiconductor Equipment | | | 22,442,535 | | | | 22,442,535 | | | | — | | | | — | |
Software & Services | | | 108,293,511 | | | | 107,662,279 | | | | — | | | | 631,232 | |
Technology Hardware & Equipment | | | 22,434,652 | | | | 22,434,652 | | | | — | | | | — | |
Telecommunication Services | | | 210,593 | | | | 210,593 | | | | — | | | | — | |
Transportation | | | 23,772,915 | | | | 23,772,915 | | | | — | | | | — | |
Utilities | | | 113,808 | | | | 113,808 | | | | — | | | | — | |
Exchange-Traded Funds | | | 1,349,281 | | | | 1,349,281 | | | | — | | | | — | |
Preferred Stocks | | | 12,389,626 | | | | — | | | | — | | | | 12,389,626 | |
Short-Term Investments | | | 6,552,562 | | | | 6,552,562 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 609,041,703 | | | $ | 591,605,912 | | | $ | — | | | $ | 17,435,791 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, investments valued at $8,944,727 were transferred out of Level 3 due to the initiation of a vendor providing pricing. There were no transfers in or out of Level 1 or Level 2. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended December 31, 2017:
| | | | | | | | | | | | |
| | | Common
Stocks | | | Preferred
Stocks | | | Total | |
Beginning balance | | $ | 14,370,854 | | | $ | 32,924,650 | | | $ | 47,295,504 | |
Conversions* | | | 2,419,607 | | | | (2,419,607 | ) | | | — | |
Purchases | | | — | | | | — | | | | — | |
Sales | | | (5,964,931 | ) | | | (13,933,421 | ) | | | (19,898,352 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | (1,004,492 | ) | | | 6,273,897 | | | | 5,269,405 | |
Net change in unrealized appreciation/depreciation | | | (3,982,308 | ) | | | (2,303,731 | ) | | | (6,286,039 | ) |
Transfers into Level 3 | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | (792,565 | ) | | | (8,152,162 | ) | | | (8,944,727 | ) |
| | | | | | | | | | | | |
Ending balance | | $ | 5,046,165 | | | $ | 12,389,626 | | | $ | 17,435,791 | |
| | | | | | | | | | | | |
| * | Private Equity security that was a preferred stock is now trading as a common stock. |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2017 was $(1,133,684).
| 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
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% | | | |
| | | | Automobiles & Components - 2.0% | | | |
| | 8,536 | | | Lear Corp. | | $ | 1,507,970 | |
| | 2,807 | | | Thor Industries, Inc. | | | 423,071 | |
| | | | | | | | |
| | | | | | | 1,931,041 | |
| | | | | | | | |
| | | | Banks - 5.3% | | | |
| | 20,948 | | | Banco Latinoamericano de Comercio Exterior S.A. ADR | | | 563,501 | |
| | 2,943 | | | Berkshire Hills Bancorp, Inc. | | | 107,714 | |
| | 10,856 | | | Essent Group Ltd.* | | | 471,368 | |
| | 16,500 | | | Flagstar Bancorp, Inc.* | | | 617,430 | |
| | 8,184 | | | Green Bancorp, Inc.* | | | 166,135 | |
| | 935 | | | LendingTree, Inc.* | | | 318,321 | |
| | 27,143 | | | MGIC Investment Corp.* | | | 382,988 | |
| | 34,892 | | | OFG Bancorp | | | 327,985 | |
| | 6,614 | | | Opus Bank* | | | 180,562 | |
| | 31,652 | | | Popular, Inc. | | | 1,123,329 | |
| | 15,485 | | | Radian Group, Inc. | | | 319,146 | |
| | 17,310 | | | TCF Financial Corp. | | | 354,855 | |
| | 6,017 | | | Walker & Dunlop, Inc.* | | | 285,807 | |
| | | | | | | | |
| | | | | | | 5,219,141 | |
| | | | | | | | |
| | | | Capital Goods - 9.8% | | | |
| | 14,362 | | | Aircastle Ltd. | | | 335,927 | |
| | 14,647 | | | Allison Transmission Holdings, Inc. | | | 630,846 | |
| | 501 | | | American Woodmark Corp.* | | | 65,255 | |
| | 3,200 | | | Argan, Inc. | | | 144,000 | |
| | 3,502 | | | Beacon Roofing Supply, Inc.* | | | 223,288 | |
| | 9,813 | | | Briggs & Stratton Corp. | | | 248,956 | |
| | 4,121 | | | Caesarstone Ltd.* | | | 90,662 | |
| | 8,072 | | | Continental Building Products, Inc.* | | | 227,227 | |
| | 6,682 | | | EMCOR Group, Inc. | | | 546,253 | |
| | 4,279 | | | Generac Holdings, Inc.* | | | 211,896 | |
| | 13,119 | | | Graco, Inc. | | | 593,241 | |
| | 9,311 | | | Jacobs Engineering Group, Inc. | | | 614,154 | |
| | 8,402 | | | Oshkosh Corp. | | | 763,658 | |
| | 11,138 | | | Owens Corning | | | 1,024,028 | |
| | 1,973 | | | Proto Labs, Inc.* | | | 203,219 | |
| | 7,000 | | | Regal-Beloit Corp. | | | 536,200 | |
| | 3,154 | | | Rush Enterprises, Inc. Class A* | | | 160,255 | |
| | 17,043 | | | Spirit Aerosystems Holdings, Inc. Class A | | | 1,487,002 | |
| | 6,119 | | | Terex Corp. | | | 295,058 | |
| | 6,660 | | | Textainer Group Holdings Ltd.* | | | 143,190 | |
| | 10,203 | | | Titan Machinery, Inc.* | | | 215,997 | |
| | 14,557 | | | Toro Co. | | | 949,553 | |
| | | | | | | | |
| | | | | | | 9,709,865 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 4.3% | | | |
| | 11,930 | | | ACCO Brands Corp.* | | | 145,546 | |
| | 3,035 | | | Barrett Business Services, Inc. | | | 195,727 | |
| | 6,281 | | | Brink’s Co. | | | 494,315 | |
| | 16,516 | | | Essendant, Inc. | | | 153,103 | |
| | 9,137 | | | Herman Miller, Inc. | | | 365,937 | |
| | 6,310 | | | Kelly Services, Inc. Class A | | | 172,074 | |
| | 7,800 | | | Kimball International, Inc. Class B | | | 145,626 | |
| | 2,550 | | | ManpowerGroup, Inc. | | | 321,580 | |
| | 3,186 | | | McGrath Rent Corp. | | | 149,678 | |
| | 9,279 | | | Quad/Graphics, Inc. | | | 209,705 | |
| | 11,987 | | | Robert Half International, Inc. | | | 665,758 | |
| | 28,308 | | | RPX Corp. | | | 380,460 | |
| | 3,821 | | | SP Plus Corp.* | | | 141,759 | |
| | 20,348 | | | Steelcase, Inc. Class A | | | 309,290 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | | | |
| | | | Commercial & Professional Services - 4.3% - (continued) | |
| | 10,070 | | | TriNet Group, Inc.* | | $ | 446,504 | |
| | | | | | | | |
| | | | | | | 4,297,062 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.3% | | | |
| | 5,097 | | | CSS Industries, Inc. | | | 141,850 | |
| | 7,622 | | | La-Z-Boy, Inc. | | | 237,806 | |
| | 7,755 | | | Lululemon Athletica, Inc.* | | | 609,465 | |
| | 17,781 | | | Michael Kors Holdings Ltd.* | | | 1,119,314 | |
| | 176 | | | NVR, Inc.* | | | 617,447 | |
| | 6,760 | | | Perry Ellis International, Inc.* | | | 169,270 | |
| | 1,231 | | | Polaris Industries, Inc. | | | 152,632 | |
| | 1,939 | | | Ralph Lauren Corp. | | | 201,055 | |
| | | | | | | | |
| | | | | | | 3,248,839 | |
| | | | | | | | |
| | | | Consumer Services - 4.5% | | | |
| | 8,500 | | | American Public Education, Inc.* | | | 212,925 | |
| | 1,589 | | | Domino’s Pizza, Inc. | | | 300,258 | |
| | 823 | | | Graham Holdings Co. Class B | | | 459,522 | |
| | 5,167 | | | Grand Canyon Education, Inc.* | | | 462,602 | |
| | 15,565 | | | H&R Block, Inc. | | | 408,114 | |
| | 24,672 | | | International Speedway Corp. Class A | | | 983,179 | |
| | 9,031 | | | K12, Inc.* | | | 143,593 | |
| | 23,835 | | | Ruth’s Hospitality Group, Inc. | | | 516,028 | |
| | 14,123 | | | Scientific Games Corp. Class A* | | | 724,510 | |
| | 4,355 | | | Weight Watchers International, Inc.* | | | 192,839 | |
| | | | | | | | |
| | | | | | 4,403,570 | |
| | | | | | | | |
| | | | Diversified Financials - 4.7% | | | |
| | 14,900 | | | AG Mortgage Investment Trust, Inc. REIT | | | 283,249 | |
| | 28,084 | | | AGNC Investment Corp. REIT | | | 567,016 | |
| | 14,129 | | | Apollo Commercial Real Estate Finance, Inc. REIT | | | 260,680 | |
| | 9,697 | | | ARMOUR Residential, Inc. REIT | | | 249,407 | |
| | 19,554 | | | Chimera Investment Corp. REIT | | | 361,358 | |
| | 3,180 | | | Cohen & Steers, Inc. | | | 150,382 | |
| | 5,241 | | | E*TRADE Financial Corp.* | | | 259,796 | |
| | 7,479 | | | Green Dot Corp. Class A* | | | 450,685 | |
| | 15,317 | | | Invesco Mortgage Capital, Inc. REIT | | | 273,102 | |
| | 10,605 | | | Ladder Capital Corp. REIT | | | 144,546 | |
| | 17,393 | | | MTGE Investment Corp. REIT | | | 321,771 | |
| | 7,225 | | | Nelnet, Inc. Class A | | | 395,785 | |
| | 21,726 | | | Redwood Trust, Inc. REIT | | | 321,979 | |
| | 23,650 | | | Two Harbors Investment Corp. REIT | | | 384,549 | |
| | 22,667 | | | Western Asset Mortgage Capital Corp. REIT | | | 225,537 | |
| | | | | | | | |
| | | | | | | 4,649,842 | |
| | | | | | | | |
| | | | Energy - 4.5% | | | |
| | 109,211 | | | Abraxas Petroleum Corp.* | | | 268,659 | |
| | 1,873 | | | Arch Coal, Inc. Class A | | | 174,489 | |
| | 7,967 | | | CVR Energy, Inc. | | | 296,691 | |
| | 9,433 | | | Delek U.S. Holdings, Inc. | | | 329,589 | |
| | 5,234 | | | Exterran Corp.* | | | 164,557 | |
| | 13,760 | | | HollyFrontier Corp. | | | 704,787 | |
| | 8,536 | | | Matrix Service Co.* | | | 151,941 | |
| | 16,161 | | | Murphy Oil Corp. | | | 501,799 | |
| | 29,081 | | | Par Pacific Holdings, Inc.* | | | 560,682 | |
| | 11,148 | | | PBF Energy, Inc. Class A | | | 395,197 | |
| | 4,942 | | | REX American Resources Corp.* | | | 409,148 | |
| | 8,891 | | | Stone Energy Corp.* | | | 285,934 | |
| | 71,876 | | | W&T Offshore, Inc.* | | | 237,909 | |
| | | | | | | | |
| | | | | | | 4,481,382 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | | | |
| | | | Food, Beverage & Tobacco - 3.0% | | | |
| | 2,018 | | | Boston Beer Co., Inc. Class A* | | $ | 385,640 | |
| | 7,242 | | | Ingredion, Inc. | | | 1,012,432 | |
| | 1,619 | | | National Beverage Corp. | | | 157,755 | |
| | 31,200 | | | Pilgrim’s Pride Corp.* | | | 969,072 | |
| | 2,928 | | | Sanderson Farms, Inc. | | | 406,348 | |
| | | | | | | | |
| | | | | | | 2,931,247 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 4.8% | | | |
| | 2,964 | | | Align Technology, Inc.* | | | 658,571 | |
| | 3,676 | | | Analogic Corp. | | | 307,865 | |
| | 1,209 | | | Chemed Corp. | | | 293,811 | |
| | 1,870 | | | Cooper Cos., Inc. | | | 407,436 | |
| | 7,346 | | | Diplomat Pharmacy, Inc.* | | | 147,434 | |
| | 3,281 | | | Encompass Health Corp. | | | 162,114 | |
| | 8,628 | | | Haemonetics Corp.* | | | 501,114 | |
| | 2,280 | | | Masimo Corp.* | | | 193,344 | |
| | 2,337 | | | Molina Healthcare, Inc.* | | | 179,201 | |
| | 15,254 | | | Triple-S Management Corp. Class B* | | | 379,062 | |
| | 11,862 | | | Veeva Systems, Inc. Class A* | | | 655,731 | |
| | 4,458 | | | WellCare Health Plans, Inc.* | | | 896,549 | |
| | | | | | | | |
| | | | | | | 4,782,232 | |
| | | | | | | | |
| | | | Household & Personal Products - 1.4% | | | |
| | 7,282 | | | Medifast, Inc. | | | 508,356 | |
| | 5,624 | | | Nu Skin Enterprises, Inc. Class A | | | 383,726 | |
| | 6,349 | | | Usana Health Sciences, Inc.* | | | 470,143 | |
| | | | | | | | |
| | | | | | | 1,362,225 | |
| | | | | | | | |
| | | | Insurance - 4.6% | | | |
| | 7,632 | | | Ambac Financial Group, Inc.* | | | 121,959 | |
| | 6,289 | | | American Equity Investment Life Holding Co. | | | 193,261 | |
| | 20,550 | | | Assured Guaranty Ltd. | | | 696,029 | |
| | 22,299 | | | CNO Financial Group, Inc. | | | 550,562 | |
| | 24,796 | | | Greenlight Capital Re Ltd. Class A* | | | 498,400 | |
| | 5,878 | | | Health Insurance Innovations, Inc. Class A* | | | 146,656 | |
| | 27,619 | | | Maiden Holdings Ltd. | | | 182,285 | |
| | 9,391 | | | Reinsurance Group of America, Inc. | | | 1,464,339 | |
| | 28,954 | | | Third Point Reinsurance Ltd.* | | | 424,176 | |
| | 10,847 | | | Universal Insurance Holdings, Inc. | | | 296,665 | |
| | | | | | | | |
| | | | | | | 4,574,332 | |
| | | | | | | | |
| | | | Materials - 3.6% | | | |
| | 3,015 | | | Albemarle Corp. | | | 385,588 | |
| | 17,983 | | | Chemours Co. | | | 900,229 | |
| | 15,515 | | | Domtar Corp. | | | 768,303 | |
| | 2,922 | | | Ingevity Corp.* | | | 205,913 | |
| | 4,300 | | | Innophos Holdings, Inc. | | | 200,939 | |
| | 9,820 | | | Louisiana-Pacific Corp.* | | | 257,873 | |
| | 2,670 | | | Steel Dynamics, Inc. | | | 115,157 | |
| | 7,881 | | | Stepan Co. | | | 622,363 | |
| | 4,252 | | | Warrior Met Coal, Inc. | | | 106,938 | |
| | | | | | | | |
| | | | | | | 3,563,303 | |
| | | | | | | | |
| | | | Media - 1.7% | | | |
| | 14,783 | | | Gannett Co., Inc. | | | 171,335 | |
| | 8,524 | | | Live Nation Entertainment, Inc.* | | | 362,867 | |
| | 11,687 | | | New Media Investment Group, Inc. | | | 196,108 | |
| | 7,964 | | | New York Times Co. Class A | | | 147,334 | |
| | 20,766 | | | Scholastic Corp. | | | 832,924 | |
| | | | | | | | |
| | | | | | | 1,710,568 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.7% | |
| | 17,064 | | | Akebia Therapeutics, Inc.* | | | 253,742 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.7% -
(continued) | |
| | 3,054 | | | BioSpecifics Technologies Corp.* | | $ | 132,330 | |
| | 13,329 | | | Bruker Corp. | | | 457,451 | |
| | 13,761 | | | Calithera Biosciences, Inc.* | | | 114,904 | |
| | 24,656 | | | Conatus Pharmaceuticals, Inc.* | | | 113,911 | |
| | 5,580 | | | Concert Pharmaceuticals, Inc.* | | | 144,355 | |
| | 25,046 | | | Corcept Therapeutics, Inc.* | | | 452,331 | |
| | 26,237 | | | Cytokinetics, Inc.* | | | 213,831 | |
| | 14,417 | | | CytomX Therapeutics, Inc.* | | | 304,343 | |
| | 3,639 | | | Emergent Biosolutions, Inc.* | | | 169,104 | |
| | 4,310 | | | Enanta Pharmaceuticals, Inc.* | | | 252,911 | |
| | 32,786 | | | Exelixis, Inc.* | | | 996,694 | |
| | 21,260 | | | ImmunoGen, Inc.* | | | 136,277 | |
| | 37,090 | | | Innoviva, Inc.* | | | 526,307 | |
| | 6,358 | | | Mallinckrodt plc* | | | 143,436 | |
| | 25,195 | | | MiMedx Group, Inc.* | | | 317,709 | |
| | 5,111 | | | Momenta Pharmaceuticals, Inc.* | | | 71,298 | |
| | 3,827 | | | MyoKardia, Inc.* | | | 161,117 | |
| | 80,573 | | | PDL BioPharma, Inc.* | | | 220,770 | |
| | 29,731 | | | Pieris Pharmaceuticals, Inc.* | | | 224,469 | |
| | 6,814 | | | PRA Health Sciences, Inc.* | | | 620,551 | |
| | 9,743 | | | Retrophin, Inc.* | | | 205,285 | |
| | 10,192 | | | Sangamo Therapeutics, Inc.* | | | 167,149 | |
| | 7,774 | | | Supernus Pharmaceuticals, Inc.* | | | 309,794 | |
| | 6,356 | | | United Therapeutics Corp.* | | | 940,370 | |
| | | | | | | | |
| | | | | | | 7,650,439 | |
| | | | | | | | |
| | | | Real Estate - 9.3% | | | |
| | 55,800 | | | Brandywine Realty Trust REIT | | | 1,015,002 | |
| | 57,259 | | | Brixmor Property Group, Inc. REIT | | | 1,068,453 | |
| | 9,600 | | | CareTrust, Inc. REIT | | | 160,896 | |
| | 26,053 | | | CBL & Associates Properties, Inc. REIT | | | 147,460 | |
| | 16,280 | | | Chatham Lodging Trust REIT | | | 370,533 | |
| | 1,296 | | | Coresite Realty Corp. REIT | | | 147,614 | |
| | 9,522 | | | Easterly Government Properties, Inc. REIT | | | 203,200 | |
| | 19,704 | | | Forestar Group, Inc.* | | | 433,488 | |
| | 10,659 | | | Global Net Lease, Inc. REIT | | | 219,362 | |
| | 38,160 | | | Hospitality Properties Trust REIT | | | 1,139,076 | |
| | 14,114 | | | Independence Realty Trust, Inc. REIT | | | 142,410 | |
| | 6,757 | | | Jernigan Capital, Inc. REIT | | | 128,451 | |
| | 2,301 | | | Jones Lang LaSalle, Inc. | | | 342,688 | |
| | 31,138 | | | Piedmont Office Realty Trust, Inc. Class A, REIT | | | 610,616 | |
| | 3,167 | | | Potlatch Corp. REIT | | | 158,033 | |
| | 31,400 | | | Ramco-Gershenson Properties Trust REIT | | | 462,522 | |
| | 75,372 | | | Retail Properties of America, Inc. Class A, REIT | | | 1,013,000 | |
| | 36,070 | | | Select Income REIT | | | 906,439 | |
| | 4,451 | | | Weingarten Realty Investors REIT | | | 146,304 | |
| | 11,165 | | | Whitestone REIT REIT | | | 160,888 | |
| | 11,600 | | | Xenia Hotels & Resorts, Inc. REIT | | | 250,444 | |
| | | | | | | | |
| | | | | | | 9,226,879 | |
| | | | | | | | |
| | | | Retailing - 3.2% | | | |
| | 5,207 | | | Big Lots, Inc. | | | 292,373 | |
| | 2,264 | | | Burlington Stores, Inc.* | | | 278,540 | |
| | 2,302 | | | Children’s Place, Inc. | | | 334,596 | |
| | 5,450 | | | Five Below, Inc.* | | | 361,444 | |
| | 7,586 | | | Liberty Expedia Holdings, Inc. Class A* | | | 336,287 | |
| | 7,888 | | | Michaels Cos., Inc.* | | | 190,811 | |
| | 5,249 | | | PetMed Express, Inc. | | | 238,829 | |
| | 14,200 | | | Sleep Number Corp.* | | | 533,778 | |
| | 7,277 | | | Tailored Brands, Inc. | | | 158,857 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | | | |
| | | | Retailing - 3.2% - (continued) | | | |
| | 4,531 | | | Urban Outfitters, Inc.* | | $ | 158,857 | |
| | 4,791 | | | Williams-Sonoma, Inc. | | | 247,695 | |
| | | | | | | | |
| | | | | | | 3,132,067 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.0% | |
| | 1,484 | | | Advanced Energy Industries, Inc.* | | | 100,140 | |
| | 3,935 | | | Cirrus Logic, Inc.* | | | 204,069 | |
| | 2,412 | | | First Solar, Inc.* | | | 162,858 | |
| | 20,330 | | | Photronics, Inc.* | | | 173,313 | |
| | 32,196 | | | Teradyne, Inc. | | | 1,348,047 | |
| | | | | | | | |
| | | | | | | 1,988,427 | |
| | | | | | | | |
| | | | Software & Services - 7.4% | | | |
| | 8,191 | | | Appfolio, Inc. Class A* | | | 339,926 | |
| | 15,285 | | | Blucora, Inc.* | | | 337,798 | |
| | 28,884 | | | Cadence Design Systems, Inc.* | | | 1,207,929 | |
| | 18,036 | | | CommerceHub, Inc. Series C* | | | 371,361 | |
| | 13,705 | | | Convergys Corp. | | | 322,067 | |
| | 1,810 | | | Euronet Worldwide, Inc.* | | | 152,529 | |
| | 19,607 | | | Everi Holdings, Inc.* | | | 147,837 | |
| | 7,628 | | | Hortonworks, Inc.* | | | 153,399 | |
| | 5,489 | | | ManTech International Corp. Class A | | | 275,493 | |
| | 10,867 | | | MAXIMUS, Inc. | | | 777,860 | |
| | 6,735 | | | New Relic, Inc.* | | | 389,081 | |
| | 9,895 | | | Progress Software Corp. | | | 421,230 | |
| | 5,600 | | | Sykes Enterprises, Inc.* | | | 176,120 | |
| | 7,668 | | | Tableau Software, Inc. Class A* | | | 530,626 | |
| | 9,983 | | | TeleTech Holdings, Inc. | | | 401,816 | |
| | 21,393 | | | Teradata Corp.* | | | 822,775 | |
| | 14,495 | | | Web.com Group, Inc.* | | | 315,991 | |
| | 51,225 | | | Zynga, Inc. Class A* | | | 204,900 | |
| | | | | | | | |
| | | | | | | 7,348,738 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 4.5% | |
| | 4,736 | | | Arista Networks, Inc.* | | | 1,115,707 | |
| | 8,590 | | | ARRIS International plc* | | | 220,677 | |
| | 34,899 | | | AVX Corp. | | | 603,753 | |
| | 6,672 | | | Cognex Corp. | | | 408,059 | |
| | 7,051 | | | Control4 Corp.* | | | 209,838 | |
| | 31,083 | | | Extreme Networks, Inc.* | | | 389,159 | |
| | 10,843 | | | Jabil, Inc. | | | 284,629 | |
| | 12,308 | | | Sanmina Corp.* | | | 406,164 | |
| | 563 | | | Universal Display Corp. | | | 97,202 | |
| | 24,331 | | | Vishay Intertechnology, Inc. | | | 504,868 | |
| | 1,866 | | | Zebra Technologies Corp. Class A* | | | 193,691 | |
| | | | | | | | |
| | | | | | | 4,433,747 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.5% | |
| | 3,167 | | | ATN International, Inc. | | | 175,008 | |
| | 23,841 | | | Boingo Wireless, Inc.* | | | 536,423 | |
| | 27,100 | | | Telephone & Data Systems, Inc. | | | 753,380 | |
| | | | | | | | |
| | | | | | | 1,464,811 | |
| | | | | | | | |
| | | | Transportation - 2.3% | | | |
| | 4,114 | | | ArcBest Corp. | | | 147,076 | |
| | 2,126 | | | Copa Holdings S.A. Class A | | | 285,012 | |
| | 7,225 | | | Hawaiian Holdings, Inc. | | | 287,916 | |
| | 15,177 | | | JetBlue Airways Corp.* | | | 339,054 | |
| | 5,995 | | | Old Dominion Freight Line, Inc. | | | 788,642 | |
| | 4,407 | | | XPO Logistics, Inc.* | | | 403,637 | |
| | | | | | | | |
| | | | | | | 2,251,337 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.3% - (continued) | | | |
| | | | Utilities - 3.9% | | | |
| | 18,520 | | | National Fuel Gas Co. | | $ | 1,016,933 | |
| | 5,251 | | | Northwest Natural Gas Co. | | | 313,222 | |
| | 12,163 | | | NRG Energy, Inc. | | | 346,403 | |
| | 11,431 | | | OGE Energy Corp. | | | 376,194 | |
| | 15,645 | | | Pinnacle West Capital Corp. | | | 1,332,641 | |
| | 28,374 | | | Vistra Energy Corp.* | | | 519,812 | |
| | | | | | | | |
| | | | | | | 3,905,205 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $80,146,615) | | $ | 98,266,299 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $80,146,615) | | $ | 98,266,299 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.6% | |
| | | | Other Investment Pools & Funds - 0.6% | |
| | 631,221 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(1) | | $ | 631,221 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $631,221) | | $ | 631,221 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $80,777,836) | | | 99.9 | % | | $ | 98,897,520 | |
| | | | Other Assets and Liabilities | | | 0.1 | % | | | 98,217 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 98,995,737 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small/Mid Cap Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Automobiles & Components | | $ | 1,931,041 | | | $ | 1,931,041 | | | $ | — | | | $ | — | |
Banks | | | 5,219,141 | | | | 5,219,141 | | | | — | | | | — | |
Capital Goods | | | 9,709,865 | | | | 9,709,865 | | | | — | | | | — | |
Commercial & Professional Services | | | 4,297,062 | | | | 4,297,062 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 3,248,839 | | | | 3,248,839 | | | | — | | | | — | |
Consumer Services | | | 4,403,570 | | | | 4,403,570 | | | | — | | | | — | |
Diversified Financials | | | 4,649,842 | | | | 4,649,842 | | | | — | | | | — | |
Energy | | | 4,481,382 | | | | 4,481,382 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 2,931,247 | | | | 2,931,247 | | | | — | | | | — | |
Health Care Equipment & Services | | | 4,782,232 | | | | 4,782,232 | | | | — | | | | — | |
Household & Personal Products | | | 1,362,225 | | | | 1,362,225 | | | | — | | | | — | |
Insurance | | | 4,574,332 | | | | 4,574,332 | | | | — | | | | — | |
Materials | | | 3,563,303 | | | | 3,563,303 | | | | — | | | | — | |
Media | | | 1,710,568 | | | | 1,710,568 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 7,650,439 | | | | 7,650,439 | | | | — | | | | — | |
Real Estate | | | 9,226,879 | | | | 9,226,879 | | | | — | | | | — | |
Retailing | | | 3,132,067 | | | | 3,132,067 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 1,988,427 | | | | 1,988,427 | | | | — | | | | — | |
Software & Services | | | 7,348,738 | | | | 7,348,738 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 4,433,747 | | | | 4,433,747 | | | | — | | | | — | |
Telecommunication Services | | | 1,464,811 | | | | 1,464,811 | | | | — | | | | — | |
Transportation | | | 2,251,337 | | | | 2,251,337 | | | | — | | | | — | |
Utilities | | | 3,905,205 | | | | 3,905,205 | | | | — | | | | — | |
Short-Term Investments | | | 631,221 | | | | 631,221 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 98,897,520 | | | $ | 98,897,520 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% | | | |
| | | | Banks - 2.5% | | | |
| | 263,199 | | | PNC Financial Services Group, Inc. | | $ | 37,976,984 | |
| | | | | | | | |
| | | | Capital Goods - 10.3% | | | |
| | 131,777 | | | General Dynamics Corp. | | | 26,810,030 | |
| | 223,753 | | | Honeywell International, Inc. | | | 34,314,760 | |
| | 119,158 | | | Lockheed Martin Corp. | | | 38,255,676 | |
| | 97,959 | | | Northrop Grumman Corp. | | | 30,064,597 | |
| | 212,600 | | | United Technologies Corp. | | | 27,121,382 | |
| | | | | | | | |
| | | | | | | 156,566,445 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.5% | | | |
| | 948,001 | | | NIKE, Inc. Class B | | | 59,297,463 | |
| | 327,451 | | | VF Corp. | | | 24,231,374 | |
| | | | | | | | |
| | | | | | | 83,528,837 | |
| | | | | | | | |
| | | | Consumer Services - 3.5% | | | |
| | 176,603 | | | McDonald’s Corp. | | | 30,396,908 | |
| | 396,357 | | | Starbucks Corp. | | | 22,762,783 | |
| | | | | | | | |
| | | | | | | 53,159,691 | |
| | | | | | | | |
| | | | Diversified Financials - 4.4% | | | |
| | 344,010 | | | American Express Co. | | | 34,163,633 | |
| | 64,099 | | | BlackRock, Inc. | | | 32,928,297 | |
| | | | | | | | |
| | | | | | | 67,091,930 | |
| | | | | | | | |
| | | | Energy - 4.4% | | | |
| | 374,699 | | | Exxon Mobil Corp. | | | 31,339,825 | |
| | 541,893 | | | Schlumberger Ltd. | | | 36,518,169 | |
| | | | | | | | |
| | | | | | | 67,857,994 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 5.2% | | | |
| | 219,117 | | | Costco Wholesale Corp. | | | 40,782,056 | |
| | 213,912 | | | CVS Health Corp. | | | 15,508,620 | |
| | 316,705 | | | Walgreens Boots Alliance, Inc. | | | 22,999,117 | |
| | | | | | | | |
| | | | | | | 79,289,793 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 7.7% | | | |
| | 835,911 | | | Coca-Cola Co. | | | 38,351,597 | |
| | 1,073,931 | | | Diageo plc | | | 39,364,271 | |
| | 325,079 | | | PepsiCo, Inc. | | | 38,983,473 | |
| | | | | | | | |
| | | | | | | 116,699,341 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.1% | | | |
| | 442,472 | | | Cardinal Health, Inc. | | | 27,110,259 | |
| | 165,663 | | | Danaher Corp. | | | 15,376,840 | |
| | 168,233 | | | McKesson Corp. | | | 26,235,936 | |
| | 409,655 | | | Medtronic plc | | | 33,079,641 | |
| | 169,243 | | | UnitedHealth Group, Inc. | | | 37,311,312 | |
| | | | | | | | |
| | | | | | | 139,113,988 | |
| | | | | | | | |
| | | | Household & Personal Products - 3.8% | | | |
| | 516,989 | | | Colgate-Palmolive Co. | | | 39,006,820 | |
| | 200,073 | | | Procter & Gamble Co. | | | 18,382,707 | |
| | | | | | | | |
| | | | | | | 57,389,527 | |
| | | | | | | | |
| | | | Insurance - 5.2% | | | |
| | 309,979 | | | Chubb Ltd. | | | 45,297,231 | |
| | 412,728 | | | Marsh & McLennan Cos., Inc. | | | 33,591,932 | |
| | | | | | | | |
| | | | | | | 78,889,163 | |
| | | | | | | | |
| | | | Materials - 4.0% | | | |
| | 200,549 | | | Ecolab, Inc. | | | 26,909,665 | |
| | 223,139 | | | Praxair, Inc. | | | 34,515,140 | |
| | | | | | | | |
| | | | | | | 61,424,805 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.6% - (continued) | | | |
| | | | Media - 1.5% | | | |
| | 206,751 | | | Walt Disney Co. | | $ | 22,227,800 | |
| | | | | | | | |
| |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 5.8% | |
| | 152,323 | | | Amgen, Inc. | | | 26,488,970 | |
| | 221,455 | | | Johnson & Johnson | | | 30,941,693 | |
| | 546,501 | | | Merck & Co., Inc. | | | 30,751,611 | |
| | | | | | | | |
| | | | | | | 88,182,274 | |
| | | | | | | | |
| | | | Real Estate - 4.5% | | | |
| | 241,406 | | | American Tower Corp. REIT | | | 34,441,394 | |
| | 162,456 | | | Public Storage REIT | | | 33,953,304 | |
| | | | | | | | |
| | | | | | | 68,394,698 | |
| | | | | | | | |
| | | | Retailing - 2.7% | | | |
| | 9,440,100 | | | Allstar Co.*(1)(2)(3)(4) | | | 1,888,020 | |
| | 506,041 | | | TJX Cos., Inc. | | | 38,691,895 | |
| | | | | | | | |
| | | | | | | 40,579,915 | |
| | | | | | | | |
| | | | Software & Services - 10.3% | | | |
| | 277,714 | | | Accenture plc Class A | | | 42,515,236 | |
| | 156,231 | | | Automatic Data Processing, Inc. | | | 18,308,711 | |
| | 665,820 | | | Microsoft Corp. | | | 56,954,243 | |
| | 338,079 | | | Visa, Inc. Class A | | | 38,547,768 | |
| | | | | | | | |
| | | | | | | 156,325,958 | |
| | | | | | | | |
| | | | Transportation - 8.2% | | | |
| | 498,017 | | | Canadian National Railway Co. | | | 41,065,602 | |
| | 319,512 | | | Union Pacific Corp. | | | 42,846,559 | |
| | 349,365 | | | United Parcel Service, Inc. Class B | | | 41,626,840 | |
| | | | | | | | |
| | | | | | | 125,539,001 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,136,201,720) | | $ | 1,500,238,144 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,136,201,720) | | $ | 1,500,238,144 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.7% | |
| | | | Other Investment Pools & Funds - 1.7% | | | |
| | 26,339,120 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(5) | | $ | 26,339,120 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $26,339,120) | | $ | 26,339,120 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,162,540,840) | | | 100.3 | % | | $ | 1,526,577,264 | |
| | | | Other Assets and Liabilities | | | (0.3 | )% | | | (4,961,388 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,521,615,876 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, this holding is determined to be liquid. At December 31, 2017, the aggregate value of this security was $1,888,020, which represented 0.1% of total net assets. |
| (2) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $1,888,020, which represents 0.1% of total net assets. |
| (3) | 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 December 31, 2017, the aggregate fair value of this security was $1,888,020, which represented 0.1% 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) | Investment valued using significant unobservable inputs. |
| (5) | Current yield as of period end. |
| † | 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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Banks | | $ | 37,976,984 | | | $ | 37,976,984 | | | $ | — | | | $ | — | |
Capital Goods | | | 156,566,445 | | | | 156,566,445 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 83,528,837 | | | | 83,528,837 | | | | — | | | | — | |
Consumer Services | | | 53,159,691 | | | | 53,159,691 | | | | — | | | | — | |
Diversified Financials | | | 67,091,930 | | | | 67,091,930 | | | | — | | | | — | |
Energy | | | 67,857,994 | | | | 67,857,994 | | | | — | | | | — | |
Food & Staples Retailing | | | 79,289,793 | | | | 79,289,793 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 116,699,341 | | | | 77,335,070 | | | | 39,364,271 | | | | — | |
Health Care Equipment & Services | | | 139,113,988 | | | | 139,113,988 | | | | — | | | | — | |
Household & Personal Products | | | 57,389,527 | | | | 57,389,527 | | | | — | | | | — | |
Insurance | | | 78,889,163 | | | | 78,889,163 | | | | — | | | | — | |
Materials | | | 61,424,805 | | | | 61,424,805 | | | | — | | | | — | |
Media | | | 22,227,800 | | | | 22,227,800 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 88,182,274 | | | | 88,182,274 | | | | — | | | | — | |
Real Estate | | | 68,394,698 | | | | 68,394,698 | | | | — | | | | — | |
Retailing | | | 40,579,915 | | | | 38,691,895 | | | | — | | | | 1,888,020 | |
Software & Services | | | 156,325,958 | | | | 156,325,958 | | | | — | | | | — | |
Transportation | | | 125,539,001 | | | | 125,539,001 | | | | — | | | | — | |
Short-Term Investments | | | 26,339,120 | | | | 26,339,120 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,526,577,264 | | | $ | 1,485,324,973 | | | $ | 39,364,271 | | | $ | 1,888,020 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2017 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% | |
| | | | Asset-Backed - Automobile - 0.6% | |
| | $ | | | | 31,411 | | | AmeriCredit Automobile Receivables Trust
2.72%, 09/09/2019 | | $ | 31,418 | |
| | | | | 1,571,645 | | | CIG Automobile Receivables Trust
2.71%, 05/15/2023(1) | | | 1,569,079 | |
| | | | | 2,625,000 | | | Credit Acceptance Auto Loan Trust
2.65%, 06/15/2026(1) | | | 2,633,626 | |
| | | | First Investors Auto Owner Trust | |
| | | | | 990,400 | | | 1.67%, 11/16/2020(1) | | | 989,966 | |
| | | | | 1,750,000 | | | 2.39%, 11/16/2020(1) | | | 1,751,530 | |
| | | | | 2,217,065 | | | Honor Automobile Trust Securitization
2.94%, 11/15/2019(1) | | | 2,223,431 | |
| | | | | 440,086 | | | Santander Drive Auto Receivables Trust
2.36%, 04/15/2020 | | | 440,244 | |
| | | | | 4,810,000 | | | Westlake Automobile Receivables Trust
3.28%, 12/15/2022(1) | | | 4,769,376 | |
| | | | | | | | | | | | |
| | | | 14,408,670 | |
| | | | | | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 19.9% | |
| | | | | 9,180,000 | | | AMMC CLO Ltd.
3 mo. USD LIBOR + 1.250%, 2.62%, 07/25/2029(1)(2) | | | 9,244,655 | |
| | | | | 9,215,000 | | | Apex Credit CLO Ltd.
3 mo. USD LIBOR + 1.470%, 2.84%, 04/24/2029(1)(2) | | | 9,258,347 | |
| | | | | 6,015,000 | | | Apidos CLO
3 mo. USD LIBOR + 0.980%, 2.34%, 01/19/2025(1)(2) | | | 6,037,508 | |
| | | | | 7,610,000 | | | Atlas Senior Loan Fund Ltd.
3 mo. USD LIBOR + 1.250%, 2.61%, 10/15/2026(1)(2) | | | 7,654,290 | |
| | | | | 6,700,000 | | | Atrium
3 mo. USD LIBOR + 0.830%, 2.20%, 04/22/2027(1)(2) | | | 6,696,623 | |
| | | | | 773,235 | | | Atrium
3 mo. USD LIBOR + 0.950%, 2.31%, 07/16/2025(1)(2) | | | 775,336 | |
| | | | Avery Point CLO Ltd. | |
| | | | | 10,050,000 | | | 3 mo. USD LIBOR + 1.100%, 2.47%, 04/25/2026(1)(2) | | | 10,077,748 | |
| | | | | 6,875,000 | | | 3 mo. USD LIBOR + 1.120%, 2.47%, 01/18/2025(1)(2) | | | 6,894,167 | |
| | | | Babson CLO Ltd. | |
| | | | | 2,330,000 | | | 3 mo. USD LIBOR + 1.150%, 2.51%, 07/20/2025(1)(2) | | | 2,336,065 | |
| | | | | 1,716,000 | | | 3 mo. USD LIBOR + 1.320%, 2.68%, 01/15/2026(1)(2) | | | 1,718,979 | |
| | | | Bayview Opportunity Master Fund Trust | |
| | | | | 5,762,419 | | | 2.98%, 10/28/2032(1)(3) | | | 5,745,704 | |
| | | | | 1,101,414 | | | 3.11%, 09/28/2032(1)(3) | | | 1,099,206 | |
| | | | | 5,793,811 | | | 3.35%, 11/28/2032(1)(3) | | | 5,782,869 | |
| | | | | 3,652,697 | | | 3.50%, 01/28/2055(1)(4) | | | 3,703,075 | |
| | | | | 4,255,015 | | | 3.50%, 06/28/2057(1)(4) | | | 4,314,076 | |
| | | | | 8,198,318 | | | 3.50%, 07/28/2057(1)(4) | | | 8,357,823 | |
| | | | | 5,584,157 | | | 3.50%, 01/28/2058(1)(4) | | | 5,696,817 | |
| | | | | 3,163,576 | | | 4.00%, 11/28/2053(1)(4) | | | 3,258,271 | |
| | | | | 6,154,590 | | | 4.00%, 10/28/2064(1)(4) | | | 6,336,881 | |
| | | | | 1,120,000 | | | Benefit Street Partners CLO VI Ltd.
3 mo. USD LIBOR + 0.800%, 2.15%, 10/18/2029(1)(2) | | | 1,119,436 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 19.9% - (continued) | |
| | | | BlueMountain CLO Ltd. | |
| | $ | | | | 7,375,000 | | | 3 mo. USD LIBOR + 1.010%, 2.37%, 04/15/2025(1)(2) | | $ | 7,408,047 | |
| | | | | 7,995,000 | | | 3 mo. USD LIBOR + 1.260%, 2.64%, 04/30/2026(1)(2) | | | 7,995,799 | |
| | | | | 988,417 | | | Cal Funding Ltd.
3.47%, 10/25/2027(1) | | | 985,214 | |
| | | | | 7,890,000 | | | Carlyle Global Market Strategies CLO Ltd.
3 mo. USD LIBOR + 1.470%, 2.85%, 04/27/2027(1)(2) | | | 7,889,172 | |
| | | | | 7,305,000 | | | CBAM Ltd.
3 mo. USD LIBOR + 1.230%, 2.60%, 10/17/2029(1)(2) | | | 7,328,361 | |
| | | | Cent CLO Ltd. | |
| | | | | 9,320,000 | | | 3 mo. USD LIBOR + 1.100%, 2.47%, 01/25/2026(1)(2) | | | 9,354,717 | |
| | | | | 6,240,000 | | | 3 mo. USD LIBOR + 1.210%, 2.59%, 07/27/2026(1)(2) | | | 6,238,633 | |
| | | | CIFC Funding Ltd. | |
| | | | | 775,527 | | | 3 mo. USD LIBOR + 0.850%, 2.21%, 07/16/2030(1)(2) | | | 775,485 | |
| | | | | 8,960,000 | | | 3 mo. USD LIBOR + 1.200%, 2.65%, 05/24/2026(1)(2) | | | 9,003,420 | |
| | | | | 6,935,000 | | | 3 mo. USD LIBOR + 1.500%, 2.86%, 07/22/2026(1)(2) | | | 6,935,666 | |
| | | | | 1,455,000 | | | Conn Funding L.P.
2.73%, 07/15/2020(1) | | | 1,454,938 | |
| | | | | 2,130,000 | | | Covenant Credit Partners CLO Ltd.
3 mo. USD LIBOR + 1.850%, 3.23%, 10/15/2029(1)(2) | | | 2,150,192 | |
| | | | | 7,264,000 | | | Dryden Senior Loan Fund
3 mo. USD LIBOR + 0.820%, 2.24%, 11/15/2028(1)(2) | | | 7,260,310 | |
| | | | Dryden Senior Loan Fund | |
| | | | | 6,710,000 | | | 3 mo. USD LIBOR + 1.430%, 2.79%, 07/15/2027(1)(2) | | | 6,734,203 | |
| | | | | 7,852,000 | | | 3 mo. USD LIBOR + 1.430%, 2.79%, 10/15/2028(1)(2) | | | 7,906,297 | |
| | | | | 1,407,243 | | | Fieldstone Mortgage Investment Corp.
1 mo. USD LIBOR + 0.270%, 1.82%, 05/25/2036(2) | | | 1,024,652 | |
| | | | | 3,267,261 | | | First Franklin Mortgage Loan Trust
1 mo. USD LIBOR + 0.240%, 1.79%, 04/25/2036(2) | | | 2,842,248 | |
| | | | | 681,728 | | | GreatAmerica Leasing Receivables Funding LLC
1.72%, 04/22/2019(1) | | | 681,154 | |
| | | | | 3,720,919 | | | GSAMP Trust
1 mo. USD LIBOR + 0.090%, 1.64%, 01/25/2037(2) | | | 2,365,710 | |
| | | | | 4,965,000 | | | Highbridge Loan Management Ltd.
3 mo. USD LIBOR + 1.450%, 2.84%, 05/05/2027(1)(2) | | | 4,966,931 | |
| | | | | 4,578,000 | | | LCM Ltd.
3 mo. USD LIBOR + 1.210%, 2.52%, 07/20/2030(1)(2) | | | 4,615,599 | |
| | | | Lendmark Funding Trust | |
| | | | | 3,235,000 | | | 2.83%, 12/22/2025(1) | | | 3,227,478 | |
| | | | | 4,590,000 | | | 3.26%, 04/21/2025(1) | | | 4,610,438 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 19.9% - (continued) | |
| | | | Madison Park Funding Ltd. | |
| | $ | | | | 6,435,000 | | | 3 mo. USD LIBOR + 1.110%, 2.47%, 01/19/2025(1)(2) | | $ | 6,432,896 | |
| | | | | 7,200,000 | | | 3 mo. USD LIBOR + 1.160%, 2.52%, 07/23/2029(1)(2) | | | 7,208,287 | |
| | | | | 3,582,000 | | | 3 mo. USD LIBOR + 1.190%, 2.55%, 10/21/2030(1)(2) | | | 3,600,694 | |
| | | | | 9,860,000 | | | 3 mo. USD LIBOR + 1.260%, 2.62%, 07/20/2026(1)(2) | | | 9,963,136 | |
| | | | Magnetite Ltd. | |
| | | | | 8,310,000 | | | 3 mo. USD LIBOR + 1.000%, 2.37%, 07/25/2026(1)(2) | | | 8,309,360 | |
| | | | | 6,595,000 | | | 3 mo. USD LIBOR + 1.500%, 2.87%, 07/25/2026(1)(2) | | | 6,623,161 | |
| | | | | 2,732,263 | | | Marlette Funding Trust
2.36%, 12/15/2024(1) | | | 2,729,728 | |
| | | | | 5,996,213 | | | MFRA Trust
3.35%, 11/25/2047(1)(3) | | | 5,986,609 | |
| | | | Nationstar HECM Loan Trust | |
| | | | | 1,032,845 | | | 1.97%, 05/25/2027(1) | | | 1,031,286 | |
| | | | | 1,887,493 | | | 2.04%, 09/25/2027(1)(4) | | | 1,884,140 | |
| | | | | 289,987 | | | 2.24%, 06/25/2026(1)(4) | | | 289,444 | |
| | | | | 560,000 | | | 2.94%, 05/25/2027(1) | | | 561,094 | |
| | | | NRZ Advance Receivables Trust | |
| | | | | 6,250,000 | | | 3.11%, 12/15/2050(1) | | | 6,222,169 | |
| | | | | 5,421,000 | | | 3.21%, 02/15/2051(1) | | | 5,426,078 | |
| | | | | 2,357,978 | | | Oak Hill Advisors Residential Loan Trust
3.00%, 06/25/2057(1)(3) | | | 2,354,581 | |
| | | | | 3,030,000 | | | Oak Hill Credit Partners Ltd.
3 mo. USD LIBOR + 1.130%, 2.49%, 07/20/2026(1)(2) | | | 3,045,011 | |
| | | | | 2,495,000 | | | Oaktree EIF Ltd.
3 mo. USD LIBOR + 1.450%, 2.82%, 07/17/2029(1)(2) | | | 2,536,018 | |
| | | | | 6,780,000 | | | OCP CLO Ltd.
3 mo. USD LIBOR + 0.850%, 2.20%, 04/17/2027(1)(2) | | | 6,780,163 | |
| | | | | 3,715,000 | | | Octagon Investment Partners Ltd.
3 mo. USD LIBOR + 1.320%, 2.68%, 03/17/2030(1)(2) | | | 3,761,649 | |
| | | | OneMain Financial Issuance Trust | |
| | | | | 7,814,000 | | | 2.37%, 09/14/2032(1) | | | 7,744,437 | |
| | | | | 9,270,000 | | | 4.10%, 03/20/2028(1) | | | 9,389,753 | |
| | | | | 7,495,000 | | | OZLM Ltd.
3 mo. USD LIBOR + 1.450%, 2.83%, 04/30/2027(1)(2) | | | 7,517,133 | |
| | | | | 1,295,788 | | | Pretium Mortgage Credit Management LLC
3.33%, 12/30/2032(1)(4) | | | 1,292,559 | |
| | | | | 3,093,227 | | | Prosper Marketplace Issuance Trust
2.36%, 11/15/2023(1) | | | 3,094,315 | |
| | | | | 5,250,263 | | | SBA Tower Trust
2.90%, 10/15/2044(1)(3) | | | 5,262,879 | |
| | | | | 469,230 | | | Securitized Asset Backed Receivables LLC Trust
1 mo. USD LIBOR + 0.090%, 1.64%, 07/25/2036(2) | | | 238,777 | |
| | | | | 7,305,000 | | | Shackleton CLO
3 mo. USD LIBOR + 1.160%, 2.51%, 07/17/2026(1)(2) | | | 7,353,775 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 19.9% - (continued) | |
| | | | | | | | SoFi Consumer Loan Program LLC | |
| | $ | | | | 2,324,398 | | | 2.50%, 05/26/2026(1) | | $ | 2,316,777 | |
| | | | | 1,170,288 | | | 2.77%, 05/25/2026(1) | | | 1,170,713 | |
| | | | | 2,864,859 | | | 3.05%, 12/26/2025(1) | | | 2,879,534 | |
| | | | | 2,637,384 | | | 3.09%, 10/27/2025(1) | | | 2,679,157 | |
| | | | | 2,105,363 | | | 3.28%, 01/26/2026(1) | | | 2,126,322 | |
| | | | Sound Point CLO Ltd. | |
| | | | | 6,345,000 | | | 3 mo. USD LIBOR + 1.100%, 2.46%, 01/21/2026(1)(2) | | | 6,344,143 | |
| | | | | 2,575,000 | | | 3 mo. USD LIBOR + 1.390%, 2.75%, 01/23/2029(1)(2) | | | 2,584,988 | |
| | | | | 2,137,000 | | | 3 mo. USD LIBOR + 4.600%, 5.96%, 07/15/2025(1)(2) | | | 2,130,760 | |
| | | | Springleaf Funding Trust | |
| | | | | 8,130,000 | | | 2.68%, 07/15/2030(1) | | | 8,060,917 | |
| | | | | 4,985,000 | | | 2.90%, 11/15/2029(1) | | | 4,992,346 | |
| | | | | 5,340,000 | | | SPS Servicer Advance Receivables Trust
2.75%, 11/15/2049(1) | | | 5,333,327 | |
| | | | | 8,660,000 | | | Symphony CLO Ltd.
3 mo. USD LIBOR + 1.280%, 2.64%, 07/14/2026(1)(2) | | | 8,657,038 | |
| | | | Towd Point Mortgage Trust | |
| | | | | 10,244,093 | | | 2.75%, 10/25/2056(1)(4) | | | 10,230,947 | |
| | | | | 2,756,200 | | | 2.75%, 04/25/2057(1)(4) | | | 2,754,118 | |
| | | | | 6,818,497 | | | 2.75%, 06/25/2057(1)(4) | | | 6,790,166 | |
| | | | | 4,903,583 | | | 2.75%, 07/25/2057(1)(4) | | | 4,895,624 | |
| | | | | 7,660,000 | | | Treman Park CLO Ltd.
3 mo. USD LIBOR + 1.370%, 2.73%, 04/20/2027(1)(2) | | | 7,719,235 | |
| | | | | 4,540,000 | | | U.S. Residential Opportunity Fund Trust
3.35%, 11/27/2037(1)(3) | | | 4,527,449 | |
| | | | | 1,971,592 | | | VOLT LX LLC
3.25%, 04/25/2059(1)(3) | | | 1,975,059 | |
| | | | | 1,687,914 | | | VOLT LXII LLC
3.13%, 09/25/2047(1)(3) | | | 1,687,592 | |
| | | | | 3,230,000 | | | VOLT LXIII LLC
3.00%, 10/25/2047(1)(3) | | | 3,232,064 | |
| | | | | 8,251,477 | | | VOLT LXIV LLC
3.38%, 10/25/2047(1)(3) | | | 8,247,441 | |
| | | | Voya CLO Ltd. | |
| | | | | 7,550,000 | | | 3 mo. USD LIBOR + 0.900%, 2.33%, 01/18/2029(1)(2) | | | 7,550,000 | |
| | | | | 2,670,000 | | | 3 mo. USD LIBOR + 1.250%, 2.73%, 01/18/2029(1)(2) | | | 2,670,000 | |
| | | | Voya CLO Ltd. | |
| | | | | 2,915,000 | | | 3 mo. USD LIBOR + 1.250%, 2.60%, 04/17/2030(1)(2) | | | 2,931,767 | |
| | | | | 4,905,000 | | | 3 mo. USD LIBOR + 1.330%, 2.68%, 04/18/2026(1)(2) | | | 4,903,028 | |
| | | | | 2,080,000 | | | Wendys Funding LLC
3.88%, 03/15/2048(1)(5) | | | 2,081,462 | |
| | | | | 10,785,000 | | | York CLO Ltd.
3 mo. USD LIBOR + 1.630%, 2.73%, 01/20/2030(1)(2) | | | 10,868,109 | |
| | | | | | | | | | | | |
| | | | 478,841,755 | |
| | | | | | | | | | | | |
| | | | Asset-Backed - Home Equity - 1.9% | |
| | | | GSAA Home Equity Trust | |
| | | | | 6,605,637 | | | 1 mo. USD LIBOR + 0.080%, 1.63%, 02/25/2037(2) | | | 3,585,626 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Asset-Backed - Home Equity - 1.9% - (continued) | |
| | | | GSAA Home Equity Trust - (continued) | |
| | $ | | | | 3,940,507 | | | 1 mo. USD LIBOR + 0.100%, 1.65%, 03/25/2037(2) | | $ | 2,067,656 | |
| | | | | 2,842,920 | | | 1 mo. USD LIBOR + 0.180%, 1.73%, 11/25/2036(2) | | | 1,470,006 | |
| | | | | 127,165 | | | 1 mo. USD LIBOR + 0.240%, 1.79%, 11/25/2036(2) | | | 78,510 | |
| | | | | 683,641 | | | 5.99%, 06/25/2036(4) | | | 349,394 | |
| | | | | 275,948 | | | Morgan Stanley Asset-Backed Securities Capital, Inc. Trust
1 mo. USD LIBOR + 0.150%, 1.70%, 06/25/2036(2) | | | 246,541 | |
| | | | | 1,585,049 | | | Morgan Stanley Mortgage Loan Trust
1 mo. USD LIBOR + 0.170%, 1.72%, 11/25/2036(2) | | | 743,457 | |
| | | | New Residential Mortgage Loan Trust | |
| | | | | 7,653,511 | | | 1 mo. USD LIBOR + 1.500%, 3.05%, 06/25/2057(1)(2) | | | 7,840,547 | |
| | | | | 9,926,708 | | | 4.00%, 02/25/2057(1)(4) | | | 10,221,828 | |
| | | | | 8,031,608 | | | 4.00%, 08/27/2057(1)(4) | | | 8,242,187 | |
| | | | | 6,531,000 | | | NRZ Advance Receivables Trust
2.58%, 10/15/2049(1) | | | 6,468,629 | |
| | | | Soundview Home Loan Trust | |
| | | | | 3,225,000 | | | 1 mo. USD LIBOR + 0.180%, 1.73%, 07/25/2037(2) | | | 2,796,262 | |
| | | | | 435,000 | | | 1 mo. USD LIBOR + 0.250%, 1.80%, 11/25/2036(2) | | | 380,548 | |
| | | | | | | | | | | | |
| | | | 44,491,191 | |
| | | | | | | | | | | | |
| | | | Collateralized - Mortgage Obligations - 0.3% | |
| | | | | 2,707,702 | | | COLT Mortgage Loan Trust
2.61%, 05/27/2047(1)(4) | | | 2,709,442 | |
| | | | | 5,150,000 | | | Consumer Loan Underlying Bond Credit Trust
2.61%, 01/15/2024(1) | | | 5,150,103 | |
| | | | | | | | | | | | |
| | | | 7,859,545 | |
| | | | | | | | | | | | |
| | | | Commercial Mortgage-Backed Securities - 6.8% | |
| | | | | 4,735,000 | | | Banc of America Commercial Mortgage Trust
0.83%, 11/15/2054(4)(6) | | | 300,268 | |
| | | | Banc of America Commercial Mortgage Trust | |
| | | | | 40,081,379 | | | 0.76%, 11/15/2050(4)(6) | | | 2,395,452 | |
| | | | | 2,370,000 | | | 3.12%, 09/15/2048(1)(4) | | | 1,523,603 | |
| | | | BBCMS Mortgage Trust | |
| | | | | 29,052,161 | | | 1.52%, 02/15/2050(4)(6) | | | 3,000,391 | |
| | | | | 8,553,000 | | | 1 mo. USD LIBOR + 0.850%, 2.33%, 08/15/2036(1)(2) | | | 8,560,993 | |
| | | | | 1,440,000 | | | 3.67%, 02/15/2050 | | | 1,501,726 | |
| | | | | 1,105,000 | | | Bear Stearns Commercial Mortgage Securities Trust
5.11%, 10/12/2042(4) | | | 1,005,334 | |
| | | | CFCRE Commercial Mortgage Trust | |
| | | | | 1,145,000 | | | 3.57%, 06/15/2050 | | | 1,169,638 | |
| | | | | 1,000,000 | | | 3.84%, 12/10/2054 | | | 1,044,022 | |
| | | | Citigroup Commercial Mortgage Trust | |
| | | | | 24,025,258 | | | 1.05%, 07/10/2047(4)(6) | | | 1,267,200 | |
| | | | | 27,111,634 | | | 1.15%, 04/10/2048(4)(6) | | | 1,567,359 | |
| | | | | 975,000 | | | 3.62%, 02/10/2049 | | | 1,009,561 | |
| | | | | 1,040,000 | | | 3.76%, 06/10/2048 | | | 1,091,258 | |
| | | | | 970,000 | | | 3.82%, 11/10/2048 | | | 1,018,232 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Commercial Mortgage-Backed Securities -
6.8% - (continued) | |
| | | | Commercial Mortgage Pass-Through Certificates | |
| | $ | | | | 9,785,415 | | | 0.80%, 02/10/2047(4)(6) | | $ | 260,809 | |
| | | | | 535,000 | | | 4.24%, 02/10/2047(4) | | | 572,204 | |
| | | | | 1,920,000 | | | 4.75%, 10/15/2045(1)(4) | | | 1,246,541 | |
| | | | | 970,000 | | | Commercial Mortgage Trust
2.82%, 10/15/2045 | | | 971,648 | |
| | | | Commercial Mortgage Trust | |
| | | | | 4,863,974 | | | 0.89%, 08/10/2046(4)(6) | | | 147,491 | |
| | | | | 7,004,743 | | | 1.92%, 07/10/2046(1)(4)(6) | | | 274,321 | |
| | | | | 1,035,000 | | | 2.54%, 12/10/2045 | | | 1,024,995 | |
| | | | | 1,670,000 | | | 2.85%, 10/15/2045 | | | 1,676,252 | |
| | | | | 1,145,000 | | | 3.10%, 03/10/2046 | | | 1,160,660 | |
| | | | | 930,000 | | | 3.21%, 03/10/2046 | | | 948,866 | |
| | | | | 1,760,000 | | | 3.35%, 02/10/2048 | | | 1,791,821 | |
| | | | | 6,780,000 | | | 3.42%, 03/10/2031(1) | | | 7,032,217 | |
| | | | | 1,260,000 | | | 3.61%, 06/10/2046(4) | | | 1,308,268 | |
| | | | | 705,000 | | | 3.62%, 07/10/2050 | | | 730,248 | |
| | | | | 2,120,000 | | | 3.69%, 08/10/2047 | | | 2,209,011 | |
| | | | | 1,490,000 | | | 3.77%, 02/10/2049 | | | 1,560,484 | |
| | | | | 1,150,133 | | | 3.80%, 08/10/2047 | | | 1,206,532 | |
| | | | | 1,485,000 | | | 3.83%, 07/15/2047 | | | 1,560,388 | |
| | | | | 1,140,000 | | | 3.90%, 07/10/2050 | | | 1,200,974 | |
| | | | | 575,125 | | | 3.96%, 03/10/2047 | | | 606,629 | |
| | | | | 1,350,000 | | | 4.02%, 07/10/2045 | | | 1,425,279 | |
| | | | | 630,000 | | | 4.07%, 02/10/2047(4) | | | 669,015 | |
| | | | | 1,045,000 | | | 4.21%, 08/10/2046(4) | | | 1,115,896 | |
| | | | | 615,085 | | | 4.23%, 07/10/2045(4) | | | 658,842 | |
| | | | | 720,000 | | | 4.58%, 10/15/2045(1)(4) | | | 334,814 | |
| | | | | 836,192 | | | Credit Suisse First Boston Mortgage Securities Corp.
4.88%, 04/15/2037 | | | 820,796 | |
| | | | CSAIL Commercial Mortgage Trust | |
| | | | | 64,140,221 | | | 0.85%, 06/15/2057(4)(6) | | | 2,886,990 | |
| | | | | 3,888,177 | | | 1.05%, 11/15/2048(4)(6) | | | 215,682 | |
| | | | | 11,482,549 | | | 1.81%, 01/15/2049(4)(6) | | | 1,199,694 | |
| | | | | 470,000 | | | 3.45%, 08/15/2048 | | | 480,537 | |
| | | | | 790,000 | | | 3.50%, 11/15/2049 | | | 809,386 | |
| | | | | 545,000 | | | 3.54%, 11/15/2048 | | | 562,804 | |
| | | | | 550,000 | | | 3.72%, 08/15/2048 | | | 572,076 | |
| | | | | 83,000 | | | 3.76%, 11/15/2048 | | | 86,570 | |
| | | | | 980,000 | | | 3.81%, 11/15/2048 | | | 1,024,523 | |
| | | | | 7,689,499 | | | DBUBS Mortgage Trust
0.73%, 11/10/2046(1)(4)(6) | | | 123,767 | |
| | | | | 3,098,605 | | | Four Times Square Trust Commercial Mortgage Pass-Through Certificates
5.40%, 12/13/2028(1) | | | 3,322,438 | |
| | | | FREMF Mortgage Trust | |
| | | | | 3,920,000 | | | 3.68%, 11/25/2049(1)(4) | | | 3,880,200 | |
| | | | | 4,495,000 | | | 3.75%, 11/25/2050(1)(4) | | | 4,378,696 | |
| | | | FREMF Mortgage Trust | |
| | | | | 4,680,000 | | | 3.00%, 10/25/2047(1)(4) | | | 4,693,809 | |
| | | | | 1,980,000 | | | 3.65%, 09/25/2024(1)(4) | | | 2,002,334 | |
| | | | | 1,445,000 | | | 3.68%, 11/25/2049(1)(4) | | | 1,374,208 | |
| | | | | 2,580,000 | | | 3.73%, 10/25/2049(1)(4) | | | 2,517,921 | |
| | | | | 1,435,000 | | | 3.84%, 08/25/2027(1)(4) | | | 1,424,954 | |
| | | | | 1,625,000 | | | 3.88%, 02/25/2024(1)(4) | | | 1,654,104 | |
| | | | | 1,340,000 | | | 3.94%, 09/25/2049(1)(4) | | | 1,373,418 | |
| | | | | 2,850,000 | | | 3.97%, 07/25/2049(1)(4) | | | 2,886,346 | |
| | | | | 1,200,000 | | | 3.98%, 03/25/2027(1)(4) | | | 1,213,472 | |
| | | | | 2,226,000 | | | 4.03%, 07/25/2027(1)(4) | | | 2,276,519 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Commercial Mortgage-Backed Securities -
6.8% - (continued) | |
| | | | FREMF Mortgage Trust - (continued) | |
| | $ | | | | 2,535,000 | | | 4.07%, 05/25/2027(1)(4) | | $ | 2,604,891 | |
| | | | | 5,485,000 | | | 5.28%, 09/25/2043(1)(4) | | | 5,800,345 | |
| | | | | 1,485,827 | | | GE Business Loan Trust
1 mo. USD LIBOR + 1.000%, 2.48%, 05/15/2034(1)(2) | | | 1,381,150 | |
| | | | | 4,340,000 | | | GS Mortgage Securities Corp.
2.95%, 11/05/2034(1) | | | 4,324,906 | |
| | | | | 1,165,000 | | | GS Mortgage Securities Trust
3.67%, 03/10/2050 | | | 1,219,240 | |
| | | | GS Mortgage Securities Trust | |
| | | | | 47,304,089 | | | 0.11%, 07/10/2046(4)(6) | | | 217,802 | |
| | | | | 6,722,099 | | | 1.35%, 08/10/2044(1)(4)(6) | | | 261,543 | |
| | | | | 1,580,166 | | | 3.67%, 04/10/2047(1) | | | 590,303 | |
| | | | | 785,121 | | | 4.07%, 01/10/2047 | | | 833,311 | |
| | | | | 2,215,000 | | | 4.86%, 04/10/2047(1)(4) | | | 1,465,941 | |
| | | | JP Morgan Chase Commercial Mortgage Securities Trust | | | | |
| | | | | 2,185,000 | | | 2.73%, 10/15/2045(1)(4) | | | 968,982 | |
| | | | | 1,997,014 | | | 1 mo. USD LIBOR + 1.500%, 2.94%, 02/12/2051(2) | | | 1,985,423 | |
| | | | | 1,290,924 | | | 4.37%, 12/15/2047(1)(4) | | | 1,026,064 | |
| | | | | 1,135,000 | | | JPMBB Commercial Mortgage Securities Trust
3.36%, 07/15/2045 | | | 1,168,413 | |
| | | | JPMBB Commercial Mortgage Securities Trust | | | | |
| | | | | 29,177,750 | | | 0.83%, 09/15/2047(4)(6) | | | 884,751 | |
| | | | | 8,186,314 | | | 0.93%, 05/15/2048(4)(6) | | | 285,161 | |
| | | | | 825,000 | | | 2.91%, 10/15/2048 | | | 819,929 | |
| | | | | 810,060 | | | 3.61%, 05/15/2048 | | | 839,179 | |
| | | | | 615,224 | | | LB-UBS Commercial Mortgage Trust
6.32%, 04/15/2041(4) | | | 616,270 | |
| | | | | 104,333 | | | Lehman Brothers Small Balance Commercial Mortgage Trust
5.52%, 09/25/2030(1)(4) | | | 103,239 | |
| | | | Morgan Stanley Bank of America Merrill Lynch Trust | | | | |
| | | | | 1,596,406 | | | 1.11%, 10/15/2048(4)(6) | | | 100,717 | |
| | | | | 15,965,628 | | | 1.13%, 12/15/2047(4)(6) | | | 754,960 | |
| | | | | 1,530,000 | | | 3.13%, 12/15/2048 | | | 1,556,732 | |
| | | | | 1,320,000 | | | 3.18%, 08/15/2045 | | | 1,344,812 | |
| | | | | 795,172 | | | 4.26%, 10/15/2046(4) | | | 851,094 | |
| | | | | 695,000 | | | 4.50%, 08/15/2045(1) | | | 499,432 | |
| | | | Morgan Stanley Capital Trust | |
| | | | | 35,688,424 | | | 0.40%, 09/15/2047(1)(4)(6) | | | 325,382 | |
| | | | | 8,291,651 | | | 1.46%, 06/15/2050(4)(6) | | | 785,187 | |
| | | | | 625,000 | | | 2.78%, 08/15/2049 | | | 609,299 | |
| | | | | 590,000 | | | 3.34%, 12/15/2049 | | | 600,741 | |
| | | | | 4,920,000 | | | 3.47%, 08/11/2033(1) | | | 5,036,864 | |
| | | | | 770,000 | | | 3.60%, 12/15/2049 | | | 798,110 | |
| | | | | 1,460,000 | | | 5.16%, 07/15/2049(1)(4) | | | 1,270,290 | |
| | | | | 920,000 | | | 5.33%, 10/12/2052(1)(4) | | | 411,520 | |
| | | | | 790,000 | | | SFAVE Commercial Mortgage Securities Trust
3.87%, 01/05/2043(1)(4) | | | 794,347 | |
| | | | | 4,968,102 | | | UBS Commercial Mortgage Trust
1.16%, 08/15/2050(4)(6) | | | 402,491 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Commercial Mortgage-Backed Securities -
6.8% - (continued) | |
| | | | UBS-Barclays Commercial Mortgage Trust | | | | |
| | $ | | | | 2,295,000 | | | 3.09%, 08/10/2049 | | $ | 2,331,840 | |
| | | | | 2,065,000 | | | 3.19%, 03/10/2046 | | | 2,102,271 | |
| | | | | 775,000 | | | 3.24%, 04/10/2046 | | | 789,922 | |
| | | | Wells Fargo Commercial Mortgage Trust | |
| | | | | 21,396,678 | | | 1.18%, 05/15/2048(4)(6) | | | 1,217,584 | |
| | | | | 1,174,109 | | | 2.92%, 10/15/2045 | | | 1,183,349 | |
| | | | | 419,000 | | | 2.92%, 11/15/2049 | | | 413,230 | |
| | | | | 345,000 | | | 2.94%, 10/15/2049 | | | 340,782 | |
| | | | | 805,000 | | | 3.29%, 05/15/2048 | | | 820,242 | |
| | | | | 440,000 | | | 3.41%, 12/15/2047 | | | 450,625 | |
| | | | | 775,000 | | | 3.45%, 07/15/2050 | | | 792,411 | |
| | | | | 790,000 | | | 3.56%, 01/15/2059 | | | 816,143 | |
| | | | | 1,145,000 | | | 3.62%, 09/15/2057 | | | 1,188,379 | |
| | | | | 430,000 | | | 4.10%, 05/15/2048(4) | | | 381,983 | |
| | | | WF-RBS Commercial Mortgage Trust | |
| | | | | 255,115 | | | 2.88%, 12/15/2045 | | | 256,079 | |
| | | | | 1,150,000 | | | 3.07%, 03/15/2045 | | | 1,166,756 | |
| | | | | 450,000 | | | 3.35%, 05/15/2045 | | | 454,625 | |
| | | | | 1,015,000 | | | 3.61%, 11/15/2047 | | | 1,051,686 | |
| | | | | 990,000 | | | 3.72%, 05/15/2047 | | | 1,033,114 | |
| | | | | 925,000 | | | 4.00%, 05/15/2047 | | | 979,514 | |
| | | | | 230,000 | | | 4.05%, 03/15/2047 | | | 243,964 | |
| | | | | 755,286 | | | 4.10%, 03/15/2047 | | | 803,418 | |
| | | | | 710,000 | | | 5.00%, 06/15/2044(1)(4) | | | 515,475 | |
| | | | | 1,045,000 | | | 5.58%, 04/15/2045(1)(4) | | | 1,029,744 | |
| | | | | | | | | | | | |
| | | | 163,832,443 | |
| | | | | | | | | | | | |
| | | | Whole Loan Collateral CMO - 6.6% | |
| | | | Alternative Loan Trust | |
| | | | | 1,338,582 | | | 1 mo. USD LIBOR + 0.320%,
1.65%, 11/25/2035(2) | | | 1,207,893 | |
| | | | | 269,119 | | | 1 mo. USD LIBOR + 0.270%,
1.82%, 01/25/2036(2) | | | 255,249 | |
| | | | | 1,248,464 | | | 5.75%, 05/25/2036 | | | 985,819 | |
| | | | Angel Oak Mortgage Trust LLC | |
| | | | | 3,125,180 | | | 2.48%, 07/25/2047(1)(4) | | | 3,097,543 | |
| | | | | 2,732,929 | | | 2.71%, 11/25/2047(1)(4) | | | 2,714,440 | |
| | | | | 985,131 | | | 2.81%, 01/25/2047(1)(4) | | | 978,326 | |
| | | | Banc of America Funding Trust | |
| | | | | 1,862,320 | | | 1 mo. USD LIBOR + 0.300%,
1.80%, 05/20/2047(2) | | | 1,705,142 | |
| | | | | 5,140,109 | | | 5.77%, 05/25/2037(4) | | | 5,114,565 | |
| | | | | 192,204 | | | 5.85%, 01/25/2037(3) | | | 175,904 | |
| | | | | 1,174,513 | | | BCAP LLC Trust
1 mo. USD LIBOR + 0.180%, 1.73%, 03/25/2037(2) | | | 1,120,601 | |
| | | | | 611,237 | | | Bear Stearns Adjustable Rate Mortgage Trust
1 year CMT + 2.300%, 3.52%, 10/25/2035(2) | | | 622,375 | |
| | | | | 1,543,436 | | | Bear Stearns Alt-A Trust
1 mo. USD LIBOR + 0.500%, 2.05%, 01/25/2036(2) | | | 1,591,315 | |
| | | | | 521,964 | | | Bear Stearns Mortgage Funding Trust
1 mo. USD LIBOR + 0.180%, 1.73%, 10/25/2036(2) | | | 511,898 | |
| | | | CHL Mortgage Pass-Through Trust | |
| | | | | 651,863 | | | 3.28%, 11/20/2035(4) | | | 592,101 | |
| | | | | 3,449,809 | | | 3.48%, 09/25/2047(4) | | | 3,220,903 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Whole Loan Collateral CMO - 6.6% - (continued) | |
| | $ | | | | 7,806,283 | | | CIM Trust
3.00%, 04/25/2057(1)(4) | | $ | 7,830,403 | |
| | | | | 2,504,813 | | | Credit Suisse First Boston Mortgage Securities Corp.
5.50%, 06/25/2035 | | | 2,455,506 | |
| | | | | 2,853,173 | | | CSMC Trust
3.25%, 04/25/2047(1)(4) | | | 2,885,271 | |
| | | | Deephaven Residential Mortgage Trust | |
| | | | | 2,507,052 | | | 2.45%, 06/25/2047(1)(4) | | | 2,479,128 | |
| | | | | 3,202,856 | | | 2.58%, 10/25/2047(1)(4) | | | 3,202,657 | |
| | | | | 1,576,236 | | | 2.73%, 12/26/2046(1)(4) | | | 1,568,237 | |
| | | | Fannie Mae Connecticut Avenue Securities | |
| | | | | 2,025,000 | | | 1 mo. USD LIBOR + 3.550%,
5.10%, 07/25/2029(2) | | | 2,200,634 | |
| | | | | 4,065,143 | | | 1 mo. USD LIBOR + 4.350%,
5.90%, 05/25/2029(2) | | | 4,506,254 | |
| | | | | 1,530,296 | | | 1 mo. USD LIBOR + 4.900%,
6.45%, 11/25/2024(2) | | | 1,750,902 | |
| | | | | 861,099 | | | 1 mo. USD LIBOR + 5.700%,
7.25%, 04/25/2028(2) | | | 990,463 | |
| | | | | 616,000 | | | 1 mo. USD LIBOR + 6.000%,
7.55%, 09/25/2028(2) | | | 731,246 | |
| | | | | 43,041 | | | GMACM Mortgage Loan Trust
3.84%, 04/19/2036(4) | | | 40,424 | |
| | | | GSR Mortgage Loan Trust | |
| | | | | 1,507,808 | | | 1 mo. USD LIBOR + 0.300%,
1.85%, 01/25/2037(2) | | | 862,472 | |
| | | | | 3,027,077 | | | 3.64%, 01/25/2036(4) | | | 3,029,739 | |
| | | | HarborView Mortgage Loan Trust | |
| | | | | 1,282,858 | | | 1 mo. USD LIBOR + 0.190%,
1.69%, 01/19/2038(2) | | | 1,205,887 | |
| | | | | 4,795,739 | | | 1 mo. USD LIBOR + 0.240%,
1.74%, 12/19/2036(2) | | | 4,204,549 | |
| | | | | 1,510,955 | | | IndyMac Index Mortgage Loan Trust
3.32%, 03/25/2036(4) | | | 1,356,719 | |
| | | | | 410,741 | | | JP Morgan Mortgage Trust
3.64%, 04/25/2037(4) | | | 399,704 | |
| | | | | 1,650,548 | | | Lehman XS Trust
1 mo. USD LIBOR + 0.210%, 1.76%, 07/25/2046(2) | | | 1,568,016 | |
| | | | LSTAR Securities Investment Ltd. | |
| | | | | 3,338,719 | | | 3 mo. USD LIBOR + 1.650%,
3.22%, 11/01/2022(1)(2) | | | 3,322,619 | |
| | | | | 2,431,497 | | | 1 mo. USD LIBOR + 1.750%,
3.32%, 09/01/2022(1)(2) | | | 2,431,575 | |
| | | | | 5,995,113 | | | 1 mo. USD LIBOR + 1.750%,
3.32%, 10/01/2022(1)(2) | | | 5,967,625 | |
| | | | | 882,071 | | | 1 mo. USD LIBOR + 2.000%,
3.57%, 04/01/2022(1)(2) | | | 883,081 | |
| | | | | 3,116,639 | | | LSTAR Securities Investment Trust
1 mo. USD LIBOR + 2.000%, 3.57%, 02/01/2022(1)(2) | | | 3,120,092 | |
| | | | | 1,020,345 | | | Luminent Mortgage Trust
1 mo. USD LIBOR + 0.260%, 1.81%, 11/25/2035(2) | | | 987,120 | |
| | | | | 757,409 | | | MASTR Adjustable Rate Mortgages Trust
3.47%, 11/21/2034(4) | | | 775,909 | |
| | | | | 2,005,115 | | | MFA Trust
2.59%, 02/25/2057(1)(4) | | | 1,981,295 | |
| | | | New Residential Mortgage Loan Trust | |
| | | | | 5,753,493 | | | 3.75%, 11/26/2035(1)(4) | | | 5,881,652 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 36.1% - (continued) | |
| | | | Whole Loan Collateral CMO - 6.6% - (continued) | |
| | | | New Residential Mortgage Loan Trust - (continued) | |
| | $ | | | | 5,102,942 | | | 3.75%, 11/25/2056(1)(4) | | $ | 5,214,139 | |
| | | | | 9,672,770 | | | 4.00%, 03/25/2057(1)(4) | | | 9,997,831 | |
| | | | | 7,661,796 | | | 4.00%, 04/25/2057(1)(4) | | | 7,890,065 | |
| | | | | 6,437,857 | | | 4.00%, 05/25/2057(1)(4) | | | 6,636,237 | |
| | | | | 1,825,200 | | | RBSGC Mortgage Loan Trust
6.25%, 01/25/2037 | | | 1,800,410 | |
| | | | Residential Accredit Loans, Inc. | |
| | | | | 4,049,796 | | | 2.39%, 11/25/2037(4) | | | 3,520,331 | |
| | | | | 1,016,649 | | | 6.00%, 12/25/2035 | | | 990,090 | |
| | | | | 534,956 | | | Sequoia Mortgage Trust
3.53%, 07/20/2037(4) | | | 515,016 | |
| | | | Towd Point Mortgage Trust | |
| | | | | 7,382,202 | | | 1 mo. USD LIBOR + 0.600%, 2.15%, 02/25/2057(1)(2) | | | 7,355,035 | |
| | | | | 4,893,847 | | | 2.25%, 04/25/2056(1)(4) | | | 4,847,059 | |
| | | | | 1,200,345 | | | 2.75%, 02/25/2055(1)(4) | | | 1,200,632 | |
| | | | | 4,041,545 | | | 2.75%, 08/25/2055(1)(4) | | | 4,040,375 | |
| | | | | 977,206 | | | 3.00%, 03/25/2054(1)(4) | | | 981,435 | |
| | | | WaMu Mortgage Pass-Through Certificates Trust | |
| | | | | 4,173,313 | | | 12 mo. MTA + 0.820%,
1.82%, 12/25/2046(2) | | | 3,765,959 | |
| | | | | 907,121 | | | 1 mo. USD LIBOR + 0.420%,
1.97%, 06/25/2044(2) | | | 879,389 | |
| | | | | 1,591,265 | | | 3.11%, 06/25/2037(4) | | | 1,496,789 | |
| | | | Wells Fargo Commercial Mortgage Trust | |
| | | | | 46,162,242 | | | 1.17%, 09/15/2057(4)(6) | | | 2,532,724 | |
| | | | | 1,915,000 | | | 2.88%, 05/15/2048(1)(4) | | | 1,227,474 | |
| | | | | 1,015,000 | | | 3.84%, 09/15/2058 | | | 1,068,577 | |
| | | | | | | | | | | | |
| | | | 158,472,820 | |
| | | | | | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $865,577,482) | | $ | 867,906,424 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 25.2% | |
| | | | Aerospace/Defense - 0.1% | |
| | | | DAE Funding LLC | |
| | | | | 75,000 | | | 4.50%, 08/01/2022(1) | | $ | 73,687 | |
| | | | | 80,000 | | | 5.00%, 08/01/2024(1) | | | 79,000 | |
| | | | | 1,942,000 | | | Lockheed Martin Corp.
4.09%, 09/15/2052 | | | 2,032,898 | |
| | | | | | | | | | | | |
| | | | 2,185,585 | |
| | | | | | | | | | | | |
| | | | Agriculture - 0.8% | |
| | | | | 945,000 | | | Altria Group, Inc.
3.88%, 09/16/2046 | | | 937,734 | |
| | | | BAT Capital Corp. | |
| | | | | 2,175,000 | | | 2.30%, 08/14/2020(1) | | | 2,163,036 | |
| | | | | 2,200,000 | | | 4.39%, 08/15/2037(1) | | | 2,310,226 | |
| | | | | 2,010,000 | | | BAT International Finance plc
2.75%, 06/15/2020(1) | | | 2,019,831 | |
| | | | Imperial Brands Finance plc | |
| | | | | 1,420,000 | | | 2.05%, 07/20/2018(1) | | | 1,418,720 | |
| | | | | 1,950,000 | | | 2.95%, 07/21/2020(1) | | | 1,968,825 | |
| | | | | 1,300,000 | | | 3.75%, 07/21/2022(1) | | | 1,343,422 | |
| | | | | 3,730,000 | | | Philip Morris International, Inc.
3.13%, 08/17/2027 | | | 3,722,514 | |
| | | | | 2,640,000 | | | Reynolds American, Inc.
3.25%, 06/12/2020 | | | 2,682,491 | |
| | | | | | | | | | | | |
| | | | 18,566,799 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Airlines - 0.1% | |
| | $ | | | | 1,425,000 | | | Delta Air Lines, Inc.
3.63%, 03/15/2022 | | $ | 1,449,621 | |
| | | | | | | | | | | | |
| | | | Auto Manufacturers - 0.6% | |
| | EUR | | | | 1,245,000 | | | BMW Finance N.V.
3.63%, 01/29/2018 | | | 1,497,974 | |
| | CAD | | | | 375,000 | | | Daimler Canada Finance, Inc.
2.27%, 03/26/2018 | | | 298,798 | |
| | $ | | | | 1,710,000 | | | Ford Motor Co.
5.29%, 12/08/2046 | | | 1,860,837 | |
| | | | General Motors Co. | |
| | | | | 2,220,000 | | | 5.40%, 04/01/2048 | | | 2,421,428 | |
| | | | | 1,000,000 | | | 6.25%, 10/02/2043 | | | 1,184,469 | |
| | | | | 1,635,000 | | | 6.75%, 04/01/2046 | | | 2,058,579 | |
| | | | General Motors Financial Co., Inc. | |
| | | | | 500,000 | | | 3.70%, 05/09/2023 | | | 509,962 | |
| | | | | 1,760,000 | | | 3.95%, 04/13/2024 | | | 1,811,902 | |
| | EUR | | | | 830,000 | | | General Motors Financial International B.V.
0.85%, 02/23/2018(7) | | | 997,303 | |
| | AUD | | | | 250,000 | | | Mercedes-Benz Australia/Pacific Pty Ltd.
2.75%, 01/16/2018 | | | 195,121 | |
| | | | | 620,000 | | | Toyota Motor Finance Netherlands B.V.
3.74%, 01/24/2018(7) | | | 484,237 | |
| | | | | | | | | | | | |
| | | | 13,320,610 | |
| | | | | | | | | | | | |
| | | | Auto Parts & Equipment - 0.1% | |
| | $ | | | | 245,000 | | | Adient Global Holdings Ltd.
4.88%, 08/15/2026(1) | | | 251,737 | |
| | | | | 2,540,000 | | | Lear Corp.
3.80%, 09/15/2027 | | | 2,542,183 | |
| | | | | | | | | | | | |
| | | | 2,793,920 | |
| | | | | | | | | | | | |
| | |
| | | | | | | Beverages - 0.5% | |
| | | | | | | | Anheuser-Busch InBev Finance, Inc. | | | | |
| | CAD | | | | 1,384,000 | | | 2.38%, 01/25/2018 | | | 1,101,453 | |
| | $ | | | | 3,090,000 | | | 3.30%, 02/01/2023 | | | 3,161,976 | |
| | | | | 125,000 | | | 3.65%, 02/01/2026 | | | 128,997 | |
| | | | | 415,000 | | | 4.70%, 02/01/2036 | | | 464,032 | |
| | | | | 795,000 | | | 4.90%, 02/01/2046 | | | 921,396 | |
| | | | | 2,220,000 | | | Anheuser-Busch InBev Worldwide, Inc.
3.75%, 07/15/2042 | | | 2,159,100 | |
| | | | Constellation Brands, Inc. | | | | |
| | | | | 2,295,000 | | | 2.65%, 11/07/2022 | | | 2,270,595 | |
| | | | | 380,000 | | | 2.70%, 05/09/2022 | | | 378,140 | |
| | | | | 245,000 | | | 4.50%, 05/09/2047 | | | 268,735 | |
| | | | | | | | | | | | |
| | | | 10,854,424 | |
| | | | | | | | | | | | |
| | | | | | | Biotechnology - 0.2% | |
| | | | | 1,815,000 | | | Amgen, Inc.
2.65%, 05/11/2022 | | | 1,810,116 | |
| | | | | 1,065,000 | | | Celgene Corp.
4.63%, 05/15/2044 | | | 1,136,274 | |
| | | | Gilead Sciences, Inc. | |
| | | | | 615,000 | | | 2.50%, 09/01/2023 | | | 607,142 | |
| | | | | 835,000 | | | 3.25%, 09/01/2022 | | | 859,399 | |
| | | | | | | | | | | | |
| | | | 4,412,931 | |
| | | | | | | | | | | | |
| | | | | | | Chemicals - 0.1% | |
| | | | | | | | Methanex Corp. | | | | |
| | | | | 1,590,000 | | | 4.25%, 12/01/2024 | | | 1,607,373 | |
| | | | | 355,000 | | | 5.65%, 12/01/2044 | | | 368,892 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Chemicals - 0.1% - (continued) | |
| | $ | | | | 875,000 | | | Sherwin-Williams Co.
3.13%, 06/01/2024 | | $ | 879,824 | |
| | | | | 265,000 | | | Versum Materials, Inc.
5.50%, 09/30/2024(1) | | | 283,550 | |
| | | | | | | | | | | | |
| | | | 3,139,639 | |
| | | | | | | | | | | | |
| | | | Commercial Banks - 8.6% | |
| | EUR | | | | 350,000 | | | Achmea Bank N.V.
2.00%, 01/23/2018 | | | 420,450 | |
| | | | | | | | Banco Bilbao Vizcaya Argentaria S.A. | | | | |
| | $ | | | | 3,600,000 | | | 5 year EUR Swap + 3.870%, 6.13%, 11/16/2027(2)(8) | | | 3,712,500 | |
| | EUR | | | | 1,200,000 | | | 5 year EUR Swap + 6.155%, 7.00%, 02/19/2019(2)(7)(8) | | | 1,513,017 | |
| | | | | 600,000 | | | 5 year EUR Swap + 9.177%, 8.88%, 04/14/2021(2)(7)(8) | | | 853,093 | |
| | $ | | | | 200,000 | | | 5 year USD Swap + 8.262%, 9.00%, 05/09/2018(2)(7)(8) | | | 204,500 | |
| | EUR | | | | 2,600,000 | | | Banco de Sabadell S.A.
5 year EUR Swap + 6.414%, 6.50%, 05/18/2022(2)(7)(8) | | | 3,268,351 | |
| | $ | | | | 3,600,000 | | | Banco Santander S.A.
3.80%, 02/23/2028 | | | 3,600,504 | |
| | | | | | | | Bank of America Corp. | |
| | | | | 3,075,000 | | | 2.50%, 10/21/2022 | | | 3,042,286 | |
| | | | | 985,000 | | | 3 mo. USD LIBOR + 1.070%, 2.73%, 03/22/2018(2) | | | 986,856 | |
| | | | | 6,260,000 | | | 3 mo. USD LIBOR + 1.160%, 3.12%, 01/20/2023(2) | | | 6,350,164 | |
| | | | | 4,620,000 | | | 3 mo. USD LIBOR + 1.512%, 3.71%, 04/24/2028(2) | | | 4,741,940 | |
| | | | | 1,020,000 | | | 4.00%, 01/22/2025 | | | 1,061,169 | |
| | | | | 40,000 | | | 4.18%, 11/25/2027 | | | 41,771 | |
| | | | | 2,285,000 | | | 4.20%, 08/26/2024 | | | 2,406,267 | |
| | | | | 3,345,000 | | | 7.75%, 05/14/2038 | | | 5,012,101 | |
| | EUR | | | | 525,000 | | | Barclays Bank plc
6.00%, 01/23/2018 | | | 632,031 | |
| | $ | | | | 1,450,000 | | | Barclays plc
5 year USD Swap + 6.772%, 7.88%, 03/15/2022(2)(7)(8) | | | 1,589,563 | |
| | | | | | | | BNP Paribas S.A. | |
| | | | | 1,065,000 | | | 2.95%, 05/23/2022(1) | | | 1,067,317 | |
| | | | | 1,505,000 | | | 5 year USD Swap + 2.838%, 5.13%, 11/15/2027(1)(2)(8) | | | 1,505,000 | |
| | | | | 1,940,000 | | | 5 year USD Swap + 6.314%, 7.63%, 03/30/2021(1)(2)(8) | | | 2,134,000 | |
| | | | | 1,245,000 | | | BPCE S.A.
3.00%, 05/22/2022(1) | | | 1,244,310 | |
| | EUR | | | | 400,000 | | | Caixa Geral de Depositos S.A.
5 year EUR Swap + 10.925%, 10.75%, 03/30/2022(2)(7)(8) | | | 552,555 | |
| | | | | 1,200,000 | | | CaixaBank S.A.
5 year EUR Swap + 6.498%, 6.75%, 06/13/2024(2)(7)(8) | | | 1,597,609 | |
| | | | Citigroup, Inc. | |
| | | | | 510,000 | | | 1.75%, 01/29/2018(7) | | | 612,836 | |
| | $ | | | | 1,025,000 | | | 2.50%, 09/26/2018 | | | 1,027,938 | |
| | | | | 2,960,000 | | | 3 mo. USD LIBOR + 1.100%, 2.52%, 05/17/2024(2) | | | 3,005,532 | |
| | | | | 2,675,000 | | | 2.70%, 03/30/2021 | | | 2,683,125 | |
| | | | | 1,300,000 | | | 2.70%, 10/27/2022 | | | 1,286,111 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Commercial Banks - 8.6% - (continued) | |
| | | | Citigroup, Inc. - (continued) | |
| | $ | | | | 1,085,000 | | | 3 mo. USD LIBOR + 1.151%, 3.52%, 10/27/2028(2) | | $ | 1,090,119 | |
| | | | | 5,320,000 | | | 4.45%, 09/29/2027 | | | 5,632,298 | |
| | | | | 486,000 | | | 4.65%, 07/30/2045 | | | 553,151 | |
| | | | | 5,250,000 | | | Credit Agricole S.A.
5 year USD Swap + 6.185%, 8.13%, 12/23/2025(1)(2)(8) | | | 6,295,863 | |
| | | | | 5,760,000 | | | Credit Suisse Group AG
5 year USD Swap + 3.455%, 6.25%, 12/18/2024(1)(2)(8) | | | 6,242,400 | |
| | | | Deutsche Bank AG | |
| | | | | 3,185,000 | | | 2.70%, 07/13/2020 | | | 3,169,401 | |
| | | | | 1,800,000 | | | 3.30%, 11/16/2022 | | | 1,790,826 | |
| | | | Goldman Sachs Group, Inc. | |
| | | | | 590,000 | | | 2.00%, 04/25/2019 | | | 588,221 | |
| | | | | 1,340,000 | | | 2.35%, 11/15/2021 | | | 1,319,685 | |
| | | | | 1,290,000 | | | 2.38%, 01/22/2018 | | | 1,290,264 | |
| | | | | 550,000 | | | 3 mo. USD LIBOR + 1.160%, 2.52%, 04/23/2020(2) | | | 558,474 | |
| | | | | 2,720,000 | | | 2.88%, 02/25/2021 | | | 2,740,111 | |
| | | | | 2,235,000 | | | 3 mo. USD LIBOR + 0.821%, 2.88%, 10/31/2022(2) | | | 2,228,595 | |
| | | | | 3,040,000 | | | 3 mo. USD LIBOR + 0.990%, 2.91%, 07/24/2023(2) | | | 3,018,771 | |
| | CAD | | | | 410,000 | | | 3.38%, 02/01/2018 | | | 326,611 | |
| | $ | | | | 4,430,000 | | | 3 mo. USD LIBOR + 1.510%, 3.69%, 06/05/2028(2) | | | 4,494,048 | |
| | | | | 3,687,000 | | | 6.00%, 06/15/2020 | | | 3,986,443 | |
| | | | | 2,105,000 | | | 6.25%, 02/01/2041 | | | 2,836,695 | |
| | | | | 2,170,000 | | | 6.75%, 10/01/2037 | | | 2,904,856 | |
| | | | HSBC Holdings plc | |
| | | | | 1,305,000 | | | 2.95%, 05/25/2021 | | | 1,313,968 | |
| | | | | 3,095,000 | | | 3.40%, 03/08/2021 | | | 3,163,391 | |
| | | | | 3,010,000 | | | 4.25%, 08/18/2025 | | | 3,121,450 | |
| | | | | 2,925,000 | | | 5 year USD ICE Swap + 3.746%, 6.00%, 05/22/2027(2)(8) | | | 3,074,906 | |
| | | | Intesa Sanpaolo S.p.A. | |
| | | | | 2,025,000 | | | 5 year USD Swap + 5.462%, 7.70%, 09/17/2025(1)(2)(8) | | | 2,192,063 | |
| | EUR | | | | 525,000 | | | 5 year EUR Swap + 7.192%, 7.75%, 01/11/2027(2)(7)(8) | | | 766,110 | |
| | | | JP Morgan Chase & Co. | |
| | $ | | | | 1,840,000 | | | 2.30%, 08/15/2021 | | | 1,823,522 | |
| | | | | 6,670,000 | | | 2.40%, 06/07/2021 | | | 6,634,192 | |
| | | | | 275,000 | | | 2.55%, 10/29/2020 | | | 275,809 | |
| | | | | 955,000 | | | 3 mo. USD LIBOR + 1.230%, 2.60%, 10/24/2023(2) | | | 979,726 | |
| | | | | 2,890,000 | | | 2.70%, 05/18/2023 | | | 2,871,053 | |
| | | | | 2,665,000 | | | 3 mo. USD LIBOR + 1.155%, 3.22%, 03/01/2025(2) | | | 2,685,780 | |
| | | | | 1,260,000 | | | 4.25%, 10/01/2027 | | | 1,339,193 | |
| | | | Morgan Stanley | |
| | | | | 1,255,000 | | | 3 mo. USD LIBOR + 0.850%, 2.22%, 01/24/2019(2) | | | 1,261,541 | |
| | | | | 3,220,000 | | | 2.50%, 04/21/2021 | | | 3,214,609 | |
| | | | | 3,240,000 | | | 2.75%, 05/19/2022 | | | 3,228,107 | |
| | | | | 370,000 | | | 3.13%, 07/27/2026 | | | 364,942 | |
| | | | | 5,935,000 | | | 3 mo. USD LIBOR + 1.340%, 3.59%, 07/22/2028(2) | | | 5,989,624 | |
| | | | | 2,120,000 | | | 3.63%, 01/20/2027 | | | 2,169,723 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Commercial Banks - 8.6% - (continued) | |
| | | | Morgan Stanley - (continued) | |
| | $ | | | | 2,110,000 | | | 3.95%, 04/23/2027 | | $ | 2,142,663 | |
| | | | | 3,275,000 | | | 4.00%, 07/23/2025 | | | 3,429,091 | |
| | | | | 4,900,000 | | | Royal Bank of Canada
2.15%, 10/26/2020 | | | 4,868,361 | |
| | | | | 685,000 | | | Royal Bank of Scotland Group plc
5 year USD Swap + 7.598%, 8.63%, 08/15/2021(2)(8) | | | 771,481 | |
| | | | | 3,650,000 | | | Santander Holdings USA, Inc.
3.70%, 03/28/2022(1) | | | 3,693,924 | |
| | | | | 3,275,000 | | | Societe Generale S.A.
5 year USD Swap + 6.238%, 7.38%, 09/13/2021(1)(2)(8) | | | 3,549,445 | |
| | | | | 3,655,000 | | | UBS AG
2.45%, 12/01/2020(1) | | | 3,643,984 | |
| | | | UBS Group AG | |
| | | | | 3,950,000 | | | 5 year USD ICE Swap + 5.497%, 6.88%, 03/22/2021(2)(7)(8) | | | 4,230,450 | |
| | | | | 2,520,000 | | | 5 year USD Swap + 5.464%, 7.13%, 02/19/2020(2)(7)(8) | | | 2,675,736 | |
| | | | | 3,045,000 | | | UBS Group Funding Switzerland AG
2.65%, 02/01/2022(1) | | | 3,010,520 | |
| | | | | | | | UniCredit S.p.A. | |
| | EUR | | | | 575,000 | | | 5 year EUR Swap + 6.387%, 6.63%, 06/03/2023(2)(7)(8) | | | 748,556 | |
| | $ | | | | 400,000 | | | 5 year USD Swap + 5.180%, 8.00%, 06/03/2024(2)(7)(8) | | | 437,758 | |
| | | | | | | | Wells Fargo & Co. | |
| | | | | 1,795,000 | | | 2.63%, 07/22/2022 | | | 1,785,345 | |
| | | | | 1,655,000 | | | 3.00%, 04/22/2026 | | | 1,623,719 | |
| | | | | 1,200,000 | | | 3.00%, 10/23/2026 | | | 1,176,188 | |
| | | | | 4,800,000 | | | 3.07%, 01/24/2023 | | | 4,836,022 | |
| | | | | 4,485,000 | | | 3 mo. USD LIBOR + 1.310%, 3.58%, 05/22/2028(2) | | | 4,572,265 | |
| | | | | 1,370,000 | | | 4.40%, 06/14/2046 | | | 1,444,858 | |
| | | | | 2,440,000 | | | 4.90%, 11/17/2045 | | | 2,761,552 | |
| | | | | 1,170,000 | | | 5.61%, 01/15/2044 | | | 1,442,488 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 206,533,843 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Services - 0.3% | |
| | | | | 6,128,000 | | | Acwa Power Management And Investments One Ltd.
5.95%, 12/15/2039(1) | | | 6,273,234 | |
| | | | | | | | Ashtead Capital, Inc. | | | | |
| | | | | 200,000 | | | 4.13%, 08/15/2025(1) | | | 202,000 | |
| | | | | 200,000 | | | 4.38%, 08/15/2027(1) | | | 203,000 | |
| | | | | 670,000 | | | Cardtronics, Inc.
5.13%, 08/01/2022 | | | 636,500 | |
| | | | | 155,000 | | | IHS Markit Ltd.
4.00%, 03/01/2026(1) | | | 154,806 | |
| | | | | | | | United Rentals North America, Inc. | | | | |
| | | | | 470,000 | | | 4.63%, 07/15/2023 | | | 485,919 | |
| | | | | 400,000 | | | 5.50%, 07/15/2025 | | | 424,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,379,459 | |
| | | | | | | | | | | | |
| | | | | | | Construction Materials - 0.1% | |
| | | | | 490,000 | | | Eagle Materials, Inc.
4.50%, 08/01/2026 | | | 510,825 | |
| | | | | | | | Standard Industries, Inc. | |
| | | | | 60,000 | | | 5.38%, 11/15/2024(1) | | | 62,718 | |
| | | | | 930,000 | | | 6.00%, 10/15/2025(1) | | | 992,775 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,566,318 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Diversified Financial Services - 0.2% | |
| | $ | | | | 2,100,000 | | | Cboe Global Markets, Inc.
3.65%, 01/12/2027 | | $ | 2,162,944 | |
| | AUD | | | | 210,000 | | | GE Capital Australia Funding Pty Ltd.
4.50%, 01/30/2018 | | | 164,202 | |
| | $ | | | | 1,800,000 | | | Intercontinental Exchange, Inc.
2.75%, 12/01/2020 | | | 1,817,462 | |
| | | | | | | | Navient Corp. | |
| | | | | 660,000 | | | 5.88%, 03/25/2021 | | | 681,450 | |
| | | | | 390,000 | | | 7.25%, 01/25/2022 | | | 417,788 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,243,846 | |
| | | | | | | | | | | | |
| | | | | | | Electric - 1.1% | |
| | | | | | | | AES Corp. | |
| | | | | 620,000 | | | 4.88%, 05/15/2023 | | | 631,625 | |
| | | | | 300,000 | | | 5.50%, 03/15/2024 | | | 312,000 | |
| | | | | 1,605,000 | | | DTE Energy Co.
1.50%, 10/01/2019 | | | 1,579,541 | |
| | | | | 1,525,000 | | | Duke Energy Carolinas LLC
4.25%, 12/15/2041 | | | 1,678,472 | |
| | | | | 3,180,000 | | | Duke Energy Corp.
3.75%, 09/01/2046 | | | 3,144,737 | |
| | | | | 1,525,000 | | | Duke Energy Florida LLC
3.40%, 10/01/2046 | | | 1,474,925 | |
| | | | | 1,495,000 | | | Duke Energy Progress LLC
4.38%, 03/30/2044 | | | 1,698,931 | |
| | | | | 125,000 | | | Emera U.S. Finance L.P.
4.75%, 06/15/2046 | | | 136,853 | |
| | EUR | | | | 795,000 | | | Enel S.p.A.
4.88%, 02/20/2018 | | | 960,309 | |
| | $ | | | | 3,000,000 | | | Exelon Corp.
2.85%, 06/15/2020 | | | 3,027,973 | |
| | | | | | | | FirstEnergy Corp. | | | | |
| | | | | 2,415,000 | | | 3.90%, 07/15/2027 | | | 2,474,520 | |
| | | | | 510,000 | | | 4.25%, 03/15/2023 | | | 532,673 | |
| | | | | 645,000 | | | Fortis, Inc.
2.10%, 10/04/2021 | | | 629,599 | |
| | | | | 1,590,000 | | | IPALCO Enterprises, Inc.
3.70%, 09/01/2024(1) | | | 1,588,556 | |
| | | | | | | | NextEra Energy Operating Partners L.P. | | | | |
| | | | | 30,000 | | | 4.25%, 09/15/2024(1) | | | 30,525 | |
| | | | | 30,000 | | | 4.50%, 09/15/2027(1) | | | 29,850 | |
| | | | | 565,000 | | | Oncor Electric Delivery Co. LLC
7.00%, 09/01/2022 | | | 667,616 | |
| | | | | 2,760,000 | | | Pacific Gas & Electric Co.
6.05%, 03/01/2034 | | | 3,478,817 | |
| | | | | | | | Southern Co. | | | | |
| | | | | 1,360,000 | | | 1.85%, 07/01/2019 | | | 1,351,772 | |
| | | | | 625,000 | | | 2.95%, 07/01/2023 | | | 625,306 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,054,600 | |
| | | | | | | | | | | | |
| | | | | | | Electronics - 0.1% | |
| | | | | 1,375,000 | | | Fortive Corp.
2.35%, 06/15/2021 | | | 1,362,969 | |
| | | | | | | | | | | | |
| | | | | | | Engineering & Construction - 0.6% | |
| | | | | 1,215,000 | | | Mexico City Airport Trust
3.88%, 04/30/2028(1) | | | 1,198,294 | |
| | | | | | | | SBA Tower Trust | | | | |
| | | | | 4,815,000 | | | 3.17%, 04/09/2047(1) | | | 4,793,051 | |
| | | | | 7,645,000 | | | 3.60%, 04/09/2043(1) | | | 7,641,439 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,632,784 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Entertainment - 0.0% | |
| | | | | | | | WMG Acquisition Corp. | | | | |
| | $ | | | | 445,000 | | | 4.88%, 11/01/2024(1) | | $ | 458,350 | |
| | | | | 260,000 | | | 5.00%, 08/01/2023(1) | | | 269,100 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 727,450 | |
| | | | | | | | | | | | |
| | | | | | | Environmental Control - 0.0% | |
| | | | | | | | Clean Harbors, Inc. | | | | |
| | | | | 40,000 | | | 5.13%, 06/01/2021 | | | 40,400 | |
| | | | | 274,000 | | | 5.25%, 08/01/2020 | | | 278,110 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 318,510 | |
| | | | | | | | | | | | |
| | | | | | | Food - 0.3% | |
| | | | | 3,360,000 | | | Danone S.A.
1.69%, 10/30/2019(1) | | | 3,319,595 | |
| | | | | 985,000 | | | Kraft Heinz Foods Co.
4.38%, 06/01/2046 | | | 975,691 | |
| | | | | 1,730,000 | | | Sysco Corp.
2.50%, 07/15/2021 | | | 1,725,322 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,020,608 | |
| | | | | | | | | | | | |
| | | | | | | Gas - 0.0% | |
| | | | | | | | AmeriGas Partners L.P. / AmeriGas Finance Corp. | | | | |
| | | | | 70,000 | | | 5.63%, 05/20/2024 | | | 72,800 | |
| | | | | 375,000 | | | 5.88%, 08/20/2026 | | | 386,250 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 459,050 | |
| | | | | | | | | | | | |
| | | | | | | Healthcare-Products - 0.3% | |
| | | | | 4,645,000 | | | Becton Dickinson and Co.
3.36%, 06/06/2024 | | | 4,657,977 | |
| | | | | 2,430,000 | | | Thermo Fisher Scientific, Inc.
3.00%, 04/15/2023 | | | 2,444,983 | |
| | | | | | | | | | | | |
| | | | 7,102,960 | |
| | | | | | | | | | | | |
| | | | Healthcare-Services - 0.5% | |
| | | | | 855,000 | | | Aetna, Inc.
2.80%, 06/15/2023 | | | 841,475 | |
| | | | | | | | Anthem, Inc. | | | | |
| | | | | 3,625,000 | | | 3.50%, 08/15/2024 | | | 3,695,828 | |
| | | | | 2,305,000 | | | 3.65%, 12/01/2027 | | | 2,349,550 | |
| | | | | 720,000 | | | 4.63%, 05/15/2042 | | | 784,446 | |
| | | | Community Health Systems, Inc. | |
| | | | | 535,000 | | | 5.13%, 08/01/2021 | | | 481,500 | |
| | | | | 90,000 | | | 6.25%, 03/31/2023 | | | 81,000 | |
| | | | | 430,000 | | | LifePoint Health, Inc.
5.88%, 12/01/2023 | | | 434,300 | |
| | | | | 280,000 | | | Tenet Healthcare Corp.
6.00%, 10/01/2020 | | | 296,044 | |
| | | | | | | | UnitedHealth Group, Inc. | | | | |
| | | | | 2,255,000 | | | 3.75%, 07/15/2025 | | | 2,376,826 | |
| | | | | 370,000 | | | 4.25%, 04/15/2047 | | | 407,217 | |
| | | | | 670,000 | | | 4.75%, 07/15/2045 | | | 791,407 | |
| | | | | | | | | | | | |
| | | | 12,539,593 | |
| | | | | | | | | | | | |
| | | | Home Builders - 0.0% | |
| | | | | 280,000 | | | Meritage Homes Corp.
6.00%, 06/01/2025 | | | 299,600 | |
| | | | | 575,000 | | | Toll Brothers Finance Corp.
4.88%, 11/15/2025 | | | 600,875 | |
| | | | | | | | | | | | |
| | | | 900,475 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Insurance - 0.2% | |
| | $ | | | | 1,335,000 | | | American International Group, Inc.
4.70%, 07/10/2035 | | $ | 1,476,487 | |
| | | | CNO Financial Group, Inc. | |
| | | | | 55,000 | | | 4.50%, 05/30/2020 | | | 56,650 | |
| | | | | 835,000 | | | 5.25%, 05/30/2025 | | | 880,925 | |
| | | | Genworth Holdings, Inc. | |
| | | | | 20,000 | | | 4.80%, 02/15/2024 | | | 17,000 | |
| | | | | 380,000 | | | 4.90%, 08/15/2023 | | | 323,950 | |
| | | | | 15,000 | | | 7.63%, 09/24/2021 | | | 14,662 | |
| | | | | 338,000 | | | Massachusetts Mutual Life Insurance Co.
8.88%, 06/01/2039(1) | | | 560,123 | |
| | | | | 440,000 | | | MGIC Investment Corp.
5.75%, 08/15/2023 | | | 481,250 | |
| | GBP | | | | 520,000 | | | Prudential plc
1.38%, 01/19/2018(7) | | | 702,163 | |
| | $ | | | | 1,035,000 | | | Willis North America, Inc.
3.60%, 05/15/2024 | | | 1,052,184 | |
| | | | | | | | | | | | |
| | | | 5,565,394 | |
| | | | | | | | | | | | |
| | | | Internet - 0.4% | |
| | | | Alibaba Group Holding Ltd. | |
| | | | | 3,400,000 | | | 3.40%, 12/06/2027 | | | 3,399,142 | |
| | | | | 630,000 | | | 4.00%, 12/06/2037 | | | 651,957 | |
| | | | | 1,050,000 | | | 4.20%, 12/06/2047 | | | 1,093,246 | |
| | | | Amazon.com, Inc. | |
| | | | | 1,170,000 | | | 1.90%, 08/21/2020(1) | | | 1,160,410 | |
| | | | | 730,000 | | | 2.80%, 08/22/2024(1) | | | 727,781 | |
| | | | | 2,885,000 | | | 3.88%, 08/22/2037(1) | | | 3,061,271 | |
| | | | | | | | | | | | |
| | | | 10,093,807 | |
| | | | | | | | | | | | |
| | | | Iron/Steel - 0.3% | |
| | | | | 525,000 | | | ArcelorMittal
6.13%, 06/01/2025 | | | 604,406 | |
| | | | Steel Dynamics, Inc. | |
| | | | | 785,000 | | | 4.13%, 09/15/2025(1) | | | 790,888 | |
| | | | | 275,000 | | | 5.50%, 10/01/2024 | | | 292,188 | |
| | | | | | | | Vale Overseas Ltd. | | | | |
| | | | | 3,310,000 | | | 6.25%, 08/10/2026 | | | 3,834,635 | |
| | | | | 405,000 | | | 6.88%, 11/10/2039 | | | 496,631 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,018,748 | |
| | | | | | | | | | | | |
| | | | | | | IT Services - 0.3% | |
| | | | | | | | Apple, Inc. | | | | |
| | | | | 865,000 | | | 3.35%, 02/09/2027 | | | 886,083 | |
| | | | | 2,520,000 | | | 3.45%, 02/09/2045 | | | 2,459,339 | |
| | | | | 250,000 | | | 3.85%, 08/04/2046 | | | 260,542 | |
| | | | | 290,000 | | | Dell International LLC / EMC Corp.
8.35%, 07/15/2046(1) | | | 373,678 | |
| | | | | 3,125,000 | | | Hewlett Packard Enterprise Co.
4.90%, 10/15/2025 | | | 3,299,178 | |
| | | | | 150,000 | | | NCR Corp.
5.00%, 07/15/2022 | | | 152,625 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,431,445 | |
| | | | | | | | | | | | |
| | | | | | | Machinery - Construction & Mining - 0.0% | |
| | | | | 365,000 | | | Oshkosh Corp.
5.38%, 03/01/2025 | | | 387,356 | |
| | | | | | | | | | | | |
| | | | | | | Machinery-Diversified - 0.0% | |
| | | | | 435,000 | | | CNH Industrial N.V.
4.50%, 08/15/2023 | | | 452,478 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Media - 1.7% | |
| | | | | | | | 21st Century Fox America, Inc. | | | | |
| | $ | | | | 1,225,000 | | | 6.15%, 03/01/2037 | | $ | 1,604,313 | |
| | | | | 1,175,000 | | | 6.20%, 12/15/2034 | | | 1,517,334 | |
| | | | | 430,000 | | | Altice U.S. Finance Corp.
5.50%, 05/15/2026(1) | | | 438,063 | |
| | | | CCO Holdings LLC / CCO Holdings Capital Corp. | |
| | | | | 40,000 | | | 5.13%, 02/15/2023 | | | 40,900 | |
| | | | | 145,000 | | | 5.75%, 02/15/2026(1) | | | 150,619 | |
| | | | Charter Communications Operating LLC / Charter Communications Operating Capital | |
| | | | | 7,620,000 | | | 4.20%, 03/15/2028 | | | 7,563,380 | |
| | | | | 3,420,000 | | | 6.48%, 10/23/2045 | | | 3,987,480 | |
| | | | | 195,000 | | | Comcast Corp.
3.40%, 07/15/2046 | | | 184,500 | |
| | | | Cox Communications, Inc. | |
| | | | | 3,425,000 | | | 3.15%, 08/15/2024(1) | | | 3,373,229 | |
| | | | | 415,000 | | | 3.25%, 12/15/2022(1) | | | 415,817 | |
| | | | | 45,000 | | | 3.85%, 02/01/2025(1) | | | 46,049 | |
| | | | | 600,000 | | | 4.80%, 02/01/2035(1) | | | 611,434 | |
| | | | | 430,000 | | | CSC Holdings LLC
5.50%, 04/15/2027(1) | | | 438,600 | |
| | | | Discovery Communications LLC | |
| | | | | 1,590,000 | | | 3.80%, 03/13/2024 | | | 1,612,970 | |
| | | | | 895,000 | | | 4.90%, 03/11/2026 | | | 954,790 | |
| | | | | 555,000 | | | DISH DBS Corp.
5.88%, 11/15/2024 | | | 540,431 | |
| | | | | 545,000 | | | Liberty Interactive LLC
8.25%, 02/01/2030 | | | 591,325 | |
| | | | | 1,715,000 | | | NBCUniversal Media LLC
5.95%, 04/01/2041 | | | 2,235,459 | |
| | | | | 1,057,000 | | | Scripps Networks Interactive, Inc.
3.95%, 06/15/2025 | | | 1,071,701 | |
| | | | | 340,000 | | | SFR Group S.A.
7.38%, 05/01/2026(1) | | | 348,925 | |
| | | | TEGNA, Inc. | |
| | | | | 55,000 | | | 5.13%, 07/15/2020 | | | 56,306 | |
| | | | | 520,000 | | | 5.50%, 09/15/2024(1) | | | 545,350 | |
| | | | | 1,350,000 | | | Time Warner Cable LLC
8.75%, 02/14/2019 | | | 1,439,407 | |
| | | | | 5,520,000 | | | Time Warner Entertainment Co. L.P.
8.38%, 07/15/2033 | | | 7,594,959 | |
| | | | Time Warner, Inc. | |
| | | | | 165,000 | | | 2.95%, 07/15/2026 | | | 156,059 | |
| | | | | 165,000 | | | 3.88%, 01/15/2026 | | | 166,574 | |
| | | | | | | | Viacom, Inc. | |
| | | | | 2,495,000 | | | 4.25%, 09/01/2023 | | | 2,547,360 | |
| | | | | 875,000 | | | 4.38%, 03/15/2043 | | | 757,475 | |
| | | | | 65,000 | | | 3 mo. USD LIBOR + 3.895%,
5.88%, 02/28/2057(2) | | | 63,944 | |
| | | | | 100,000 | | | 3 mo. USD LIBOR + 3.899%, 6.25%, 02/28/2057(2) | | | 97,625 | |
| | | | | 550,000 | | | Videotron Ltd.
5.38%, 06/15/2024(1) | | | 592,625 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 41,745,003 | |
| | | | | | | | | | | | |
| | | | | | | Mining - 0.2% | |
| | | | Anglo American Capital plc | |
| | | | | 1,835,000 | | | 3.75%, 04/10/2022(1) | | | 1,864,654 | |
| | | | | 1,805,000 | | | 4.13%, 09/27/2022(1) | | | 1,865,762 | |
| | | | | 940,000 | | | Corp. Nacional del Cobre de Chile
3.63%, 08/01/2027(1) | | | 941,025 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Mining - 0.2% - (continued) | |
| | $ | | | | 560,000 | | | Kaiser Aluminum Corp.
5.88%, 05/15/2024 | | $ | 595,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,266,441 | |
| | | | | | | | | | | | |
| | | | | | | Miscellaneous Manufacturing - 0.1% | |
| | NZD | | | | 2,745,000 | | | General Electric Co.
4.25%, 01/17/2018 | | | 1,946,744 | |
| | |
| | | | | | | Office/Business Equipment - 0.2% | |
| | $ | | | | 2,845,000 | | | Pitney Bowes, Inc.
4.70%, 04/01/2023 | | | 2,610,259 | |
| | | | | 3,245,000 | | | Xerox Corp.
3.63%, 03/15/2023 | | | 3,165,555 | |
| | | | | | | | | | | | |
| | | | 5,775,814 | |
| | | | | | | | | | | | |
| | | | | | | Oil & Gas - 1.7% | |
| | | | | | | | Anadarko Petroleum Corp. | | | | |
| | | | | 1,935,000 | | | 3.45%, 07/15/2024 | | | 1,926,993 | |
| | | | | 1,250,000 | | | 4.50%, 07/15/2044 | | | 1,245,642 | |
| | | | | 270,000 | | | 6.60%, 03/15/2046 | | | 347,295 | |
| | | | | 500,000 | | | Andeavor
3.80%, 04/01/2028 | | | 501,195 | |
| | | | | 170,000 | �� | | Apache Corp.
4.25%, 01/15/2044 | | | 164,692 | |
| | | | | | | | Canadian Natural Resources Ltd. | | | | |
| | | | | 475,000 | | | 3.85%, 06/01/2027 | | | 484,818 | |
| | | | | 1,235,000 | | | 6.25%, 03/15/2038 | | | 1,542,259 | |
| | | | | | | | Cenovus Energy, Inc. | | | | |
| | | | | 295,000 | | | 4.25%, 04/15/2027 | | | 294,289 | |
| | | | | 100,000 | | | 6.75%, 11/15/2039 | | | 119,748 | |
| | | | | 220,000 | | | Concho Resources, Inc.
3.75%, 10/01/2027 | | | 222,872 | |
| | | | | | | | Continental Resources, Inc. | | | | |
| | | | | 35,000 | | | 3.80%, 06/01/2024 | | | 34,606 | |
| | | | | 3,310,000 | | | 4.38%, 01/15/2028(1) | | | 3,267,632 | |
| | | | | 395,000 | | | 4.50%, 04/15/2023 | | | 402,900 | |
| | | | | 80,000 | | | 4.90%, 06/01/2044 | | | 76,400 | |
| | | | | 110,000 | | | 5.00%, 09/15/2022 | | | 111,650 | |
| | | | | 540,000 | | | Devon Financing Co. LLC
7.88%, 09/30/2031 | | | 741,315 | |
| | | | | 1,335,000 | | | EnCana Corp.
3.90%, 11/15/2021 | | | 1,372,044 | |
| | | | | | | | Hess Corp. | | | | |
| | | | | 1,505,000 | | | 4.30%, 04/01/2027 | | | 1,508,684 | |
| | | | | 515,000 | | | 5.60%, 02/15/2041 | | | 555,357 | |
| | | | | 1,370,000 | | | 6.00%, 01/15/2040 | | | 1,513,927 | |
| | | | | 2,425,000 | | | Kerr-McGee Corp.
6.95%, 07/01/2024 | | | 2,858,535 | |
| | | | Marathon Oil Corp. | |
| | | | | 1,005,000 | | | 2.70%, 06/01/2020 | | | 1,005,140 | |
| | | | | 610,000 | | | 2.80%, 11/01/2022 | | | 604,057 | |
| | | | | 1,325,000 | | | 4.40%, 07/15/2027 | | | 1,384,712 | |
| | | | | 245,000 | | | MEG Energy Corp.
6.50%, 01/15/2025(1) | | | 241,938 | |
| | | | | | | | Petroleos Mexicanos | | | | |
| | | | | 45,000 | | | 6.50%, 03/13/2027(1) | | | 49,185 | |
| | | | | 2,730,000 | | | 6.63%, 06/15/2035 | | | 2,916,568 | |
| | | | | 3,630,000 | | | 6.75%, 09/21/2047(1) | | | 3,789,176 | |
| | | | | 2,090,000 | | | Pioneer Natural Resources Co.
7.50%, 01/15/2020 | | | 2,292,354 | |
| | | | QEP Resources, Inc. | |
| | | | | 385,000 | | | 5.25%, 05/01/2023 | | | 389,566 | |
| | | | | 10,000 | | | 5.38%, 10/01/2022 | | | 10,225 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Oil & Gas - 1.7% - (continued) | |
| | $ | | | | 1,840,000 | | | Shell International Finance B.V.
4.38%, 05/11/2045 | | $ | 2,068,846 | |
| | | | | 255,000 | | | SM Energy Co.
6.13%, 11/15/2022 | | | 259,781 | |
| | | | | 2,415,000 | | | Valero Energy Corp.
3.40%, 09/15/2026 | | | 2,424,818 | |
| | | | | | | | WPX Energy, Inc. | |
| | | | | 190,000 | | | 5.25%, 09/15/2024 | | | 189,345 | |
| | | | | 265,000 | | | 6.00%, 01/15/2022 | | | 276,925 | |
| | ARS | | | | 93,580,252 | | | YPF S.A.
16.50%, 05/09/2022(1) | | | 4,732,523 | |
| | |
| | | | 41,928,012 | |
| | |
| | | | Packaging & Containers - 0.0% | |
| | $ | | | | 555,000 | | | Owens-Brockway Glass Container, Inc.
5.88%, 08/15/2023(1) | | | 598,013 | |
| | | | | 295,000 | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu
5.13%, 07/15/2023(1) | | | 305,325 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 903,338 | |
| | | | | | | | | | | | |
| | | | Pharmaceuticals - 0.9% | |
| | | | Allergan Funding SCS | |
| | | | | 1,460,000 | | | 3 mo. USD LIBOR + 1.080%,
2.63%, 03/12/2018(2) | | | 1,462,132 | |
| | | | | 2,090,000 | | | 3.45%, 03/15/2022 | | | 2,123,553 | |
| | | | | 2,105,000 | | | 3.80%, 03/15/2025 | | | 2,142,988 | |
| | | | | 316,000 | | | Baxalta, Inc.
3.60%, 06/23/2022 | | | 323,187 | |
| | | | | 6,145,000 | | | Cardinal Health, Inc.
2.62%, 06/15/2022 | | | 6,042,308 | |
| | | | | | | | Mylan N.V. | |
| | | | | 990,000 | | | 3.00%, 12/15/2018 | | | 995,294 | |
| | | | | 1,040,000 | | | 3.15%, 06/15/2021 | | | 1,045,806 | |
| | | | | 1,705,000 | | | 3.75%, 12/15/2020 | | | 1,742,266 | |
| | | | | 465,000 | | | Quintiles IMS, Inc.
4.88%, 05/15/2023(1) | | | 478,950 | |
| | | | | 2,440,000 | | | Shire Acquisitions Investments Ireland DAC
2.40%, 09/23/2021 | | | 2,401,597 | |
| | | | | 2,150,000 | | | Teva Pharmaceutical Finance Netherlands B.V.
2.80%, 07/21/2023 | | | 1,872,243 | |
| | | | Valeant Pharmaceuticals International, Inc. | |
| | | | | 315,000 | | | 6.50%, 03/15/2022(1) | | | 330,750 | |
| | | | | 140,000 | | | 7.00%, 03/15/2024(1) | | | 149,800 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,110,874 | |
| | | | | | | | | | | | |
| | | | Pipelines - 0.9% | |
| | | | | | | | Andeavor Logistics L.P. / Tesoro Logistics Finance Corp. | | | | |
| | | | | 225,000 | | | 3.50%, 12/01/2022 | | | 224,573 | |
| | | | | 1,410,000 | | | 4.25%, 12/01/2027 | | | 1,422,102 | |
| | | | | 211,000 | | | 6.25%, 10/15/2022 | | | 223,865 | |
| | | | | | | | DCP Midstream Operating L.P. | |
| | | | | 241,000 | | | 4.95%, 04/01/2022 | | | 250,339 | |
| | | | | 215,000 | | | 5.60%, 04/01/2044 | | | 213,387 | |
| | | | | 995,000 | | | Enbridge, Inc.
3.70%, 07/15/2027 | | | 999,195 | |
| | | | | 527,000 | | | Energy Transfer Equity L.P.
7.50%, 10/15/2020 | | | 579,700 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | Pipelines - 0.9% - (continued) | |
| | | | | | | | Energy Transfer L.P. | | | | |
| | $ | | | | 455,000 | | | 4.05%, 03/15/2025 | | $ | 454,660 | |
| | | | | 175,000 | | | 5.95%, 10/01/2043 | | | 186,065 | |
| | | | | | | | Kinder Morgan, Inc. | | | | |
| | | | | 335,000 | | | 3.15%, 01/15/2023 | | | 332,960 | |
| | | | | 2,415,000 | | | 5.55%, 06/01/2045 | | | 2,642,962 | |
| | | | MPLX L.P. | |
| | | | | 1,740,000 | | | 4.13%, 03/01/2027 | | | 1,782,175 | |
| | | | | 325,000 | | | 5.20%, 03/01/2047 | | | 356,664 | |
| | | | | 65,000 | | | NGPL PipeCo LLC
4.88%, 08/15/2027(1) | | | 67,437 | |
| | | | | | | | Phillips 66 Partners L.P. | |
| | | | | 595,000 | | | 3.55%, 10/01/2026 | | | 589,716 | |
| | | | | 205,000 | | | 3.75%, 03/01/2028 | | | 205,094 | |
| | | | | 750,000 | | | Plains All American Pipeline L.P. / PAA Finance Corp.
4.50%, 12/15/2026 | | | 760,275 | |
| | | | | 845,000 | | | Sabine Pass Liquefaction LLC
4.20%, 03/15/2028 | | | 854,954 | |
| | | | Sunoco Logistics Partners Operations L.P. | |
| | | | | 1,550,000 | | | 4.25%, 04/01/2024 | | | 1,580,187 | |
| | | | | 175,000 | | | 5.30%, 04/01/2044 | | | 172,707 | |
| | | | | 180,000 | | | 5.35%, 05/15/2045 | | | 178,868 | |
| | | | | 3,145,000 | | | 5.40%, 10/01/2047 | | | 3,166,239 | |
| | | | | 2,080,000 | | | Texas Eastern Transmission L.P.
2.80%, 10/15/2022(1) | | | 2,066,701 | |
| | | | | | | | Williams Cos., Inc. | |
| | | | | 385,000 | | | 3.70%, 01/15/2023 | | | 383,075 | |
| | | | | 70,000 | | | 4.55%, 06/24/2024 | | | 72,625 | |
| | | | | 65,000 | | | 7.88%, 09/01/2021 | | | 75,075 | |
| | | | | | | | Williams Partners L.P. | |
| | | | | 1,125,000 | | | 4.00%, 11/15/2021 | | | 1,163,431 | |
| | | | | 1,140,000 | | | 4.30%, 03/04/2024 | | | 1,193,983 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 22,199,014 | |
| | | | | | | | | | | | |
| | | | | | | Real Estate Investment Trusts - 0.1% | |
| | | | | | | | Crown Castle International Corp. | |
| | | | | 600,000 | | | 3.20%, 09/01/2024 | | | 593,779 | |
| | | | | 340,000 | | | 3.40%, 02/15/2021 | | | 347,221 | |
| | | | | 650,000 | | | Equinix, Inc.
5.88%, 01/15/2026 | | | 697,937 | |
| | | | | 95,856 | | | VICI Properties LLC / VICI FC, Inc.
8.00%, 10/15/2023 | | | 107,100 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,746,037 | |
| | | | | | | | | | | | |
| | | | Retail - 0.4% | |
| | | | CVS Health Corp. | |
| | | | | 4,043,000 | | | 2.80%, 07/20/2020 | | | 4,059,842 | |
| | | | | 883,000 | | | 3.88%, 07/20/2025 | | | 909,374 | |
| | | | | 1,690,000 | | | 5.13%, 07/20/2045 | | | 1,936,899 | |
| | | | | 1,810,000 | | | Home Depot, Inc.
3.50%, 09/15/2056 | | | 1,741,192 | |
| | | | | 70,000 | | | Lithia Motors, Inc.
5.25%, 08/01/2025(1) | | | 72,975 | |
| | | | | 270,000 | | | Lowe’s Cos., Inc.
3.70%, 04/15/2046 | | | 271,105 | |
| | | | | 315,000 | | | Suburban Propane Partners L.P. / Suburban Energy Finance Corp.
5.88%, 03/01/2027 | | | 307,913 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,299,300 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Semiconductors - 0.5% | |
| | | | Broadcom Corp. / Broadcom Cayman Finance Ltd. | |
| | $ | | | | 6,585,000 | | | 3.00%, 01/15/2022(1) | | $ | 6,529,223 | |
| | | | | 2,305,000 | | | 3.63%, 01/15/2024(1) | | | 2,292,057 | |
| | | | | 1,115,000 | | | Intel Corp.
4.10%, 05/19/2046 | | | 1,229,537 | |
| | | | | 1,895,000 | | | Lam Research Corp.
2.80%, 06/15/2021 | | | 1,906,893 | |
| | | | | 525,000 | | | Sensata Technologies B.V.
5.00%, 10/01/2025(1) | | | 555,187 | |
| | | | | 310,000 | | | Sensata Technologies UK Financing Co. plc
6.25%, 02/15/2026(1) | | | 337,125 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,850,022 | |
| | | | | | | | | | | | |
| | | | | | | Software - 0.4% | |
| | | | First Data Corp. | |
| | | | | 100,000 | | | 5.00%, 01/15/2024(1) | | | 102,875 | |
| | | | | 480,000 | | | 5.38%, 08/15/2023(1) | | | 499,632 | |
| | | | Microsoft Corp. | |
| | | | | 900,000 | | | 3.30%, 02/06/2027 | | | 928,351 | |
| | | | | 1,620,000 | | | 3.70%, 08/08/2046 | | | 1,688,868 | |
| | | | | 1,795,000 | | | 3.95%, 08/08/2056 | | | 1,915,969 | |
| | | | | 465,000 | | | MSCI, Inc.
5.75%, 08/15/2025(1) | | | 499,294 | |
| | | | Open Text Corp. | |
| | | | | 350,000 | | | 5.63%, 01/15/2023(1) | | | 364,437 | |
| | | | | 50,000 | | | 5.88%, 06/01/2026(1) | | | 53,875 | |
| | | | Oracle Corp. | |
| | | | | 2,620,000 | | | 2.95%, 11/15/2024 | | | 2,638,775 | |
| | | | | 945,000 | | | 4.00%, 11/15/2047 | | | 1,006,315 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,698,391 | |
| | | | | | | | | | | | |
| | | | | | | Telecommunications - 2.0% | |
| | | | | 345,000 | | | Altice Financing S.A.
6.63%, 02/15/2023(1) | | | 361,249 | |
| | | | AT&T, Inc. | |
| | | | | 3,805,000 | | | 3.40%, 08/14/2024 | | | 3,824,536 | |
| | | | | 4,895,000 | | | 3.90%, 08/14/2027 | | | 4,927,707 | |
| | | | | 120,000 | | | 4.13%, 02/17/2026 | | | 122,743 | |
| | | | | 4,889,000 | | | 4.30%, 02/15/2030(1) | | | 4,875,334 | |
| | | | | 945,000 | | | 4.50%, 05/15/2035 | | | 939,392 | |
| | | | | 3,640,000 | | | 4.75%, 05/15/2046 | | | 3,560,091 | |
| | | | | 5,525,000 | | | 5.15%, 02/14/2050 | | | 5,593,865 | |
| | | | | 205,000 | | | 5.80%, 02/15/2019 | | | 212,736 | |
| | | | | 7,400,000 | | | GTP Acquisition Partners LLC
3.48%, 06/15/2050(1) | | | 7,343,982 | |
| | | | Nokia Oyj | |
| | | | | 1,935,000 | | | 4.38%, 06/12/2027 | | | 1,912,747 | |
| | | | | 575,000 | | | 6.63%, 05/15/2039 | | | 635,375 | |
| | | | | 420,000 | | | Sprint Communications, Inc.
7.00%, 03/01/2020(1) | | | 449,400 | |
| | | | | 425,000 | | | Sprint Corp.
7.13%, 06/15/2024 | | | 432,437 | |
| | | | | 1,162,500 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC
3.36%, 03/20/2023(1) | | | 1,169,766 | |
| | | | | | | | Telecom Italia Capital S.A. | | | | |
| | | | | 265,000 | | | 6.00%, 09/30/2034 | | | 297,463 | |
| | | | | 160,000 | | | 7.72%, 06/04/2038 | | | 206,400 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 25.2% - (continued) | |
| | | | | | | Telecommunications - 2.0% - (continued) | |
| | | | | | | | Verizon Communications, Inc. | | | | |
| | $ | | | | 3,353,000 | | | 4.27%, 01/15/2036 | | $ | 3,335,571 | |
| | | | | 3,185,000 | | | 4.40%, 11/01/2034 | | | 3,245,640 | |
| | | | | 1,280,000 | | | 4.50%, 08/10/2033 | | | 1,342,502 | |
| | | | | 1,645,000 | | | 4.52%, 09/15/2048 | | | 1,619,746 | |
| | | | | 100,000 | | | 4.81%, 03/15/2039 | | | 104,621 | |
| | | | | 1,715,000 | | | 4.86%, 08/21/2046 | | | 1,786,384 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 48,299,687 | |
| | | | | | | | | | | | |
| | | | | | | Transportation - 0.3% | |
| | | | | 620,000 | | | Canadian Pacific Railway Co.
9.45%, 08/01/2021 | | | 753,119 | |
| | | | | 2,980,000 | | | CSX Corp.
3.25%, 06/01/2027 | | | 2,977,091 | |
| | | | FedEx Corp. | |
| | | | | 1,650,000 | | | 4.55%, 04/01/2046 | | | 1,812,048 | |
| | | | | 395,000 | | | 4.75%, 11/15/2045 | | | 442,313 | |
| | | | | 1,735,000 | | | Norfolk Southern Corp.
2.90%, 06/15/2026 | | | 1,706,617 | |
| | | | | | | | | | | | |
| | | | 7,691,188 | |
| | | | | | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $594,163,314) | | $ | 607,975,087 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| FOREIGN GOVERNMENT OBLIGATIONS - 2.0% | |
| | | | Argentina - 0.7% | |
| | | | Argentina Treasury Bill | |
| | | | | 1,401,360 | | | 2.69%, 01/26/2018 | | $ | 1,398,589 | |
| | | | | 6,706,744 | | | 3.06%, 06/15/2018 | | | 6,608,021 | |
| | | | | 2,019,886 | | | 3.14%, 05/24/2018 | | | 1,994,462 | |
| | | | | 3,644,774 | | | 3.28%, 04/27/2018 | | | 3,607,645 | |
| | EUR | | | | 1,780,000 | | | Argentine Republic Government International Bond
5.25%, 01/15/2028 | | | 2,220,178 | |
| | | | | | | | | | | | |
| | | | 15,828,895 | |
| | | | | | | | | | | | |
| | | | Italy - 0.2% | |
| | | | Italy Buoni Poliennali Del Tesoro | |
| | | | | 2,140,000 | | | 0.75%, 01/15/2018 | | | 2,568,700 | |
| | | | | 2,445,000 | | | 4.50%, 02/01/2018 | | | 2,944,955 | |
| | | | | | | | | | | | |
| | | | 5,513,655 | |
| | | | | | | | | | | | |
| | | | Mexico - 0.1% | |
| | $ | | | | 2,818,000 | | | Mexico Government International Bond
5.75%, 10/12/2110 | | | 3,001,170 | |
| | | | | | | | | | | | |
| | | | Oman - 0.2% | |
| | | | | 3,700,000 | | | Oman Government International Bond
6.50%, 03/08/2047(1) | | | 3,705,365 | |
| | | | | | | | | | | | |
| | | | Saudi Arabia - 0.3% | |
| | | | | 6,055,000 | | | Saudi Government International Bond
4.63%, 10/04/2047(1) | | | 6,183,996 | |
| | | | | | | | | | | | |
| | | | Slovenia - 0.0% | |
| | EUR | | | | 980,000 | | | Slovenia Government Bond
4.00%, 03/22/2018(7) | | | 1,185,529 | |
| | | | | | | | | | | | |
| | | | Spain - 0.1% | |
| | | | | 1,585,000 | | | Spain Government Bond
4.50%, 01/31/2018 | | | 1,908,608 | |
| | | | | 1,430,000 | | | Spain Letras del Tesoro
0.00%, 01/19/2018 | | | 1,716,239 | |
| | | | | | | | | | | | |
| | | | 3,624,847 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 2.0% - (continued) | |
| | | | Supranational - 0.0% | |
| | GBP | | | | 125,000 | | | European Investment Bank
1.38%, 01/15/2018 | | $ | 168,828 | |
| | | | | | | | | | | | |
| | | | United Arab Emirates - 0.4% | |
| | | | Abu Dhabi Government International Bond | |
| | $ | | | | 1,395,000 | | | 3.13%, 10/11/2027(1) | | | 1,363,975 | |
| | | | | 7,260,000 | | | 4.13%, 10/11/2047(1) | | | 7,181,011 | |
| | | | | | | | | | | | |
| | | | 8,544,986 | |
| | | | | | | | | | | | |
| | |
| | | | Total Foreign Government Obligations
(cost $47,139,897) | | $ | 47,757,271 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| MUNICIPAL BONDS - 1.7% | |
| | | | Development - 0.1% | |
| | | | | 765,000 | | | California State, GO Taxable
7.60%, 11/01/2040 | | $ | 1,221,652 | |
| | | | | | | | | | | | |
| | | | Education - 0.1% | |
| | | | | 740,000 | | | Chicago, IL, Board of Education
6.14%, 12/01/2039 | | | 705,220 | |
| | | | | 1,750,000 | | | Chicago. IL, Board of Education
5.48%, 12/01/2024 | | | 1,725,710 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,430,930 | |
| | | | | | | | | | | | |
| | | | General - 0.4% | |
| | | | | 4,560,000 | | | Chicago, IL, Transit Auth
6.90%, 12/01/2040 | | | 6,182,859 | |
| | | | Puerto Rico Commonwealth Government Employees Retirement System | | | | |
| | | | | 4,575,000 | | | 6.15%, 07/01/2038* | | | 1,704,187 | |
| | | | | 6,705,000 | | | 6.30%, 07/01/2043* | | | 2,497,612 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,384,658 | |
| | | | | | | | | | | | |
| | | | General Obligation - 1.1% | |
| | | | California State, GO Taxable | |
| | | | | 3,735,000 | | | 7.35%, 11/01/2039 | | | 5,605,189 | |
| | | | | 3,520,000 | | | 7.55%, 04/01/2039 | | | 5,539,107 | |
| | | | City of Chicago, IL, GO | |
| | | | | 2,670,000 | | | 7.05%, 01/01/2029 | | | 2,950,884 | |
| | | | | 2,305,000 | | | 7.38%, 01/01/2033 | | | 2,666,839 | |
| | | | Illinois State, GO | |
| | | | | 405,000 | | | 5.16%, 02/01/2018 | | | 405,895 | |
| | | | | 2,270,000 | | | 5.38%, 07/01/2018 | | | 2,300,691 | |
| | | | | 5,120,000 | | | 5.67%, 03/01/2018 | | | 5,147,853 | |
| | | | | 1,540,000 | | | 5.88%, 03/01/2019 | | | 1,587,986 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,204,444 | |
| | | | | | | | | | | | |
| | | | Utility - Electric - 0.0% | |
| | | | | 215,000 | | | Municipal Electric Auth Georgia
6.64%, 04/01/2057 | | | 275,596 | |
| | | | | | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $40,704,509) | | $ | 40,517,280 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) | |
| | | | Advertising - 0.0% | |
| | | | | 607,729 | | | Acosta Holdco, Inc.
1 mo. USD LIBOR + 3.250%, 4.82%, 09/26/2021 | | $ | 531,763 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Aerospace/Defense - 0.0% | |
| | $ | | | | 579,514 | | | TransDigm, Inc.
1 mo. USD LIBOR + 2.750%, 4.36%, 06/09/2023 | | $ | 580,157 | |
| | | | | | | | | | | | |
| | | | Agriculture - 0.0% | |
| | | | | 724,494 | | | Pinnacle Operating Corp.
1 mo. USD LIBOR + 7.250%, 8.82%, 11/15/2021 | | | 679,213 | |
| | | | | | | | | | | | |
| | | | Auto Manufacturers - 0.0% | |
| | | | | 690,177 | | | Jaguar Holding Co.
3 mo. USD LIBOR + 2.750%, 4.38%, 08/18/2022 | | | 690,805 | |
| | | | | | | | | | | | |
| | | | Biotechnology - 0.0% | |
| | | | | 772,636 | | | Sterigenics-Nordion Holdings LLC
1 mo. USD LIBOR + 3.000%, 4.57%, 05/15/2022 | | | 771,995 | |
| | | | | | | | | | | | |
| | | | Chemicals - 0.1% | |
| | | | | 275,000 | | | Avantor, Inc.
3 mo. USD LIBOR + 4.000%, 5.51%, 11/21/2024 | | | 276,147 | |
| | | | | 727,698 | | | Chemours Co.
1 mo. USD LIBOR + 2.500%, 4.07%, 05/12/2022 | | | 732,850 | |
| | | | | 554,422 | | | Univar, Inc.
1 mo. USD LIBOR + 2.500%, 4.07%, 07/01/2024 | | | 556,202 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,565,199 | |
| | | | | | | | | | | | |
| | | | Coal - 0.1% | |
| | | | | 510,064 | | | Ascent Resources - Marcellus LLC
1 mo. USD LIBOR + 4.250%, 5.71%, 08/04/2020 | | | 376,596 | |
| | | | | 1,027,238 | | | Foresight Energy LLC
3 mo. USD LIBOR + 5.750%, 7.44%, 03/28/2022 | | | 961,751 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,338,347 | |
| | | | | | | | | | | | |
| | | | Commercial Services - 0.2% | |
| | | | | 124,688 | | | Ascend Learning LLC
1 mo. USD LIBOR + 3.250%, 4.57%, 07/12/2024 | | | 125,311 | |
| | | | | 168,558 | | | Capital Automotive L.P.
1 mo. USD LIBOR + 6.000%, 7.57%, 03/24/2025 | | | 172,772 | |
| | | | | 900,932 | | | PSAV Holdings LLC
3 mo. USD LIBOR + 3.500%, 4.87%, 04/27/2024 | | | 908,816 | |
| | | | | 605,769 | | | Quikrete Holdings, Inc.
1 mo. USD LIBOR + 2.750%, 4.32%, 11/15/2023 | | | 606,526 | |
| | EUR | | | | 200,000 | | | Techem GmbH
0.00%, 10/02/2024(10) | | | 239,603 | |
| | $ | | | | 1,024,850 | | | Tempo Acquisition LLC
1 mo. USD LIBOR + 3.000%, 4.57%, 05/01/2024 | | | 1,020,576 | |
| | | | | 145,000 | | | Weight Watchers International, Inc.
1 mo. USD LIBOR + 4.750%, 6.23%, 11/29/2024 | | | 145,605 | |
| | | | | 524,700 | | | Xerox Business Services LLC
1 mo. USD LIBOR + 3.000%, 4.57%, 12/07/2023 | | | 527,979 | |
| | | | | | | | | | | | |
| | | | 3,747,188 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Distribution/Wholesale - 0.0% | |
| | $ | | | | 991,954 | | | American Builders & Contractors Supply Co., Inc.
1 mo. USD LIBOR + 2.500%, 4.07%, 10/31/2023 | | $ | 995,485 | |
| | | | | | | | | | | | |
| | | | Diversified Financial Services - 0.1% | |
| | | | | 466,475 | | | AlixPartners LLP
3 mo. USD LIBOR + 2.750%, 4.44%, 04/04/2024 | | | 468,639 | |
| | | | | 2,329,646 | | | First Data Corp.
1 mo. USD LIBOR + 2.250%, 3.80%, 04/26/2024 | | | 2,330,065 | |
| | EUR | | | | 210,000 | | | Nets Holding A/S
0.00%, 11/27/2024(10) | | | 252,165 | |
| | $ | | | | 282,150 | | | RP Crown Parent LLC
1 mo. USD LIBOR + 3.000%, 4.57%, 10/12/2023 | | | 283,208 | |
| | | | | | | | | | | | |
| | | | 3,334,077 | |
| | | | | | | | | | | | |
| | | | Electric - 0.1% | |
| | | | | 625,000 | | | Chief Exploration & Development LLC
3 mo. USD LIBOR + 6.500%, 7.96%, 05/16/2021 | | | 613,544 | |
| | | | | 231,626 | | | Helix Gen Funding LLC
3 mo. USD LIBOR + 3.750%, 5.44%, 06/02/2024 | | | 232,156 | |
| | | | | 342,109 | | | Seadrill Partners Finco LLC
3 mo. USD LIBOR + 3.000%, 4.69%, 02/21/2021 | | | 275,398 | |
| | | | | | | | | | | | |
| | | | 1,121,098 | |
| | | | | | | | | | | | |
| | | | Energy-Alternate Sources - 0.0% | |
| | | | | 265,000 | | | BCP Renaissance Parent LLC
3 mo. USD LIBOR + 4.000%, 5.38%, 10/31/2024 | | | 268,048 | |
| | | | | 360,000 | | | Circor International, Inc.
3 mo. USD LIBOR + 3.500%, 4.93%, 12/11/2024 | | | 358,650 | |
| | | | | 100,000 | | | Medallion Midland Acquisition LLC
1 mo. USD LIBOR + 3.250%, 4.82%, 10/30/2024 | | | 100,125 | |
| | | | | | | | | | | | |
| | | | 726,823 | |
| | | | | | | | | | | | |
| | | | Engineering & Construction - 0.0% | |
| | | | | 746,250 | | | Brand Energy & Infrastructure Services, Inc.
3 mo. USD LIBOR + 4.250%, 5.62%, 06/21/2024 | | | 748,675 | |
| | | | | | | | | | | | |
| | | | Entertainment - 0.1% | |
| | | | | 557,966 | | | Camelot UK Holdco Ltd.
1 mo. USD LIBOR + 3.250%, 4.82%, 10/03/2023 | | | 560,956 | |
| | | | | 433,913 | | | Scientific Games International, Inc.
2 mo. USD LIBOR + 3.250%, 4.70%, 08/14/2024 | | | 437,167 | |
| | | | | | | | | | | | |
| | | | 998,123 | |
| | | | | | | | | | | | |
| | | | Food - 0.1% | |
| | | | | 500,930 | | | Hostess Brands LLC
1 mo. USD LIBOR + 2.250%, 3.82%, 08/03/2022 | | | 501,010 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Food - 0.1% - (continued) | |
| | $ | | | | 786,050 | | | Post Holdings, Inc.
1 mo. USD LIBOR + 2.250%, 3.82%, 05/24/2024 | | $ | 788,440 | |
| | | | | | | | | | | | |
| | | | 1,289,450 | |
| | | | | | | | | | | | |
| | | | Food Service - 0.0% | |
| | | | | 120,000 | | | Aramark Services, Inc.
0.00%, 03/11/2025(10) | | | 120,563 | |
| | | | | | | | | | | | |
| | | | Healthcare-Products - 0.1% | |
| | | | | 313,161 | | | Air Medical Group Holdings, Inc.
1 mo. USD LIBOR + 4.000%, 5.68%, 04/28/2022 | | | 312,926 | |
| | | | | 392,344 | | | INC Research LLC
1 mo. USD LIBOR + 2.250%, 3.82%, 08/01/2024 | | | 392,591 | |
| | | | | 353,225 | | | Kinetic Concepts, Inc.
3 mo. USD LIBOR + 3.250%, 4.94%, 02/02/2024 | | | 351,370 | |
| | | | | 234,413 | | | Parexel International Corp.
3 mo. USD LIBOR + 3.000%, 4.57%, 09/27/2024 | | | 235,341 | |
| | | | | 296,250 | | | Revlon Consumer Products Corp.
1 mo. USD LIBOR + 3.500%, 5.07%, 09/07/2023 | | | 219,317 | |
| | | | | | | | | | | | |
| | | | 1,511,545 | |
| | | | | | | | | | | | |
| | | | Healthcare-Services - 0.1% | |
| | | | | 362,812 | | | CDRH Parent, Inc.
3 mo. USD LIBOR + 4.250%, 5.75%, 07/01/2021 | | | 314,921 | |
| | | | | 180,058 | | | Community Health Systems, Inc.
3 mo. USD LIBOR + 2.750%, 4.23%, 12/31/2019 | | | 174,145 | |
| | | | | 533,313 | | | Envision Healthcare Corp.
1 mo. USD LIBOR + 3.000%, 4.57%, 12/01/2023 | | | 534,422 | |
| | | | | 513,122 | | | MPH Acquisition Holdings LLC
3 mo. USD LIBOR + 3.000%, 4.69%, 06/07/2023 | | | 513,835 | |
| | | | | 295,902 | | | Opal Acquisition, Inc.
3 mo. USD LIBOR + 4.000%, 5.53%, 11/27/2020 | | | 276,914 | |
| | | | | 1,020,635 | | | U.S. Renal Care, Inc.
3 mo. USD LIBOR + 4.250%, 5.94%, 12/31/2022 | | | 1,004,479 | |
| | | | | | | | | | | | |
| | | | 2,818,716 | |
| | | | | | | | | | | | |
| | | | Household Products - 0.0% | |
| | | | | 295,000 | | | Diamond (BC) B.V.
2 mo. USD LIBOR + 3.000%, 4.42%, 09/06/2024 | | | 295,177 | |
| | | | | | | | | | | | |
| | | | Household Products/Wares - 0.0% | |
| | | | | 408,975 | | | Galleria Co.
1 mo. USD LIBOR + 3.000%, 4.38%, 09/29/2023 | | | 410,766 | |
| | | | | | | | | | | | |
| | | | Insurance - 0.2% | |
| | | | Asurion LLC | |
| | | | | 930,652 | | | 1 mo. USD LIBOR + 2.750%, 4.32%, 08/04/2022 | | | 934,868 | |
| | | | | 240,000 | | | 1 mo. USD LIBOR + 6.000%, 7.57%, 08/04/2025 | | | 246,374 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Insurance - 0.2% - (continued) | |
| | $ | | | | 429,938 | | | Evertec Group LLC
1 mo. USD LIBOR + 2.500%, 3.96%, 04/17/2020 | | $ | 416,859 | |
| | | | | 123,716 | | | HUB International Ltd.
3 mo. USD LIBOR + 3.000%, 4.41%, 10/02/2020 | | | 124,225 | |
| | | | Sedgwick Claims Management Services, Inc. | | | | |
| | | | | 898,177 | | | 1 mo. USD LIBOR + 2.750%, 4.32%, 03/01/2021 | | | 897,333 | |
| | | | | 1,250,000 | | | 1 mo. USD LIBOR + 5.750%, 7.32%, 02/28/2022 | | | 1,254,688 | |
| | | | | 533,663 | | | USI Holdings Corp.
3 mo. USD LIBOR + 3.000%, 4.69%, 05/16/2024 | | | 532,552 | |
| | | | | | | | | | | | |
| | | | 4,406,899 | |
| | | | | | | | | | | | |
| | | | Internet - 0.0% | |
| | | | | 617,093 | | | Lands’ End, Inc.
1 mo. USD LIBOR + 3.250%, 4.82%, 04/04/2021 | | | 548,250 | |
| | | | | | | | | | | | |
| | | | Leisure Time - 0.1% | |
| | | | | 230,000 | | | Aristocrat Leisure Ltd.
0.00%, 10/19/2024(10) | | | 230,287 | |
| | | | | 445,161 | | | Caesars Resort Collection LLC
3 mo. USD LIBOR + 2.750%, 4.34%, 12/22/2024 | | | 446,911 | |
| | | | | 1,275,000 | | | Delta 2 (LUX) S.a.r.l.
1 mo. USD LIBOR + 3.000%, 4.57%, 02/01/2024 | | | 1,281,107 | |
| | | | | 760,000 | | | Golden Entertainment, Inc.
1 mo. USD LIBOR + 3.000%, 4.51%, 10/21/2024 | | | 760,631 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,718,936 | |
| | | | | | | | | | | | |
| | | | Lodging - 0.0% | |
| | | | | 254,452 | | | Boyd Gaming Corp.
1 Week USD LIBOR + 2.500%, 3.98%, 09/15/2023 | | | 255,724 | |
| | | | | 665,000 | | | Caesars Entertainment Operating Co.
1 mo. USD LIBOR + 2.500%, 4.07%, 10/06/2024 | | | 665,313 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 921,037 | |
| | | | | | | | | | | | |
| | | | Machinery-Diversified - 0.1% | |
| | | | | 1,319,613 | | | Gates Global LLC
3 mo. USD LIBOR + 3.000%, 4.69%, 04/01/2024 | | | 1,326,026 | |
| | | | | | | | | | | | |
| | | | Media - 0.2% | |
| | | | | 195,000 | | | Altice Financing S.A.
3 mo. USD LIBOR + 2.750%, 4.11%, 07/15/2025 | | | 190,710 | |
| | | | | 1,551,585 | | | Charter Communications Operating LLC
0.00%, 04/30/2025(10) | | | 1,552,144 | |
| | | | Lumos Networks Operating Co. | |
| | | | | 133,685 | | | 0.00%, 10/16/2024(10) | | | 133,461 | |
| | | | | 136,499 | | | 3 mo. USD LIBOR + 3.250%, 4.82%, 10/16/2024 | | | 136,969 | |
| | | | | 704,675 | | | Numericable Group S.A.
3 mo. USD LIBOR + 3.000%, 4.35%, 01/31/2026 | | | 677,587 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Media - 0.2% - (continued) | |
| | $ | | | | 395,000 | | | Sinclair Television Group, Inc.
0.00%, 05/10/2024(10) | | $ | 394,261 | |
| | | | | 120,000 | | | Telenet International Finance S.a.r.l.
0.00%, 03/02/2026(10) | | | 120,312 | |
| | | | | 525,000 | | | UPC Financing Partnership
1 mo. USD LIBOR + 2.500%, 3.98%, 01/15/2026 | | | 524,564 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,730,008 | |
| | | | | | | | | | | | |
| | | | Metal Fabricate/Hardware - 0.0% | |
| | | | | 298,561 | | | Rexnord LLC
1 mo. USD LIBOR + 2.250%, 3.80%, 08/21/2024 | | | 299,681 | |
| | | | | | | | | | | | |
| | | | Miscellaneous Manufacturing - 0.0% | |
| | EUR | | | | 200,000 | | | CeramTec Group GmbH
0.00%, 11/29/2024(10) | | | 240,133 | |
| | $ | | | | 159,600 | | | H.B. Fuller Co.
1 mo. USD LIBOR + 2.250%, 3.75%, 10/20/2024 | | | 160,021 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 400,154 | |
| | | | | | | | | | | | |
| | | | Oil & Gas - 0.1% | |
| | | | | 258,700 | | | BCP Raptor LLC
1 Week USD LIBOR + 4.250%, 5.73%, 06/24/2024 | | | 259,510 | |
| | | | | 455,000 | | | California Resources Corp.
1 mo. USD LIBOR + 10.375%, 11.88%, 12/31/2021 | | | 498,794 | |
| | | | | 470,000 | | | Chesapeake Energy Corp.
3 mo. USD LIBOR + 7.500%, 8.95%, 08/23/2021 | | | 499,610 | |
| | | | | 764,040 | | | Fieldwood Energy LLC
3 mo. USD LIBOR + 2.875%, 4.57%, 09/28/2018 | | | 736,022 | |
| | | | | 176,055 | | | Peabody Energy Corp.
1 mo. USD LIBOR + 3.500%, 5.07%, 03/31/2022 | | | 178,310 | |
| | | | | 120,000 | | | Traverse Midstream Partners LLC
3 mo. USD LIBOR + 4.000%, 5.85%, 09/27/2024 | | | 121,560 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,293,806 | |
| | | | | | | | | | | | |
| | | | Packaging & Containers - 0.1% | |
| | | | | 1,327,486 | | | Berry Plastics Group, Inc.
3 mo. USD LIBOR + 2.000%, 3.41%, 02/08/2020 | | | 1,332,252 | |
| | | | | 407,950 | | | Flex Acquisition Co., Inc.
3 mo. USD LIBOR + 3.000%, 4.34%, 12/29/2023 | | | 409,737 | |
| | | | | 203,463 | | | Proampac PG Borrower LLC
1 mo. USD LIBOR + 4.000%, 4.95%, 11/18/2023 | | | 204,925 | |
| | | | | 1,204,199 | | | Reynolds Group Holdings, Inc.
1 mo. USD LIBOR + 2.750%, 4.32%, 02/05/2023 | | | 1,209,197 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,156,111 | |
| | | | | | | | | | | | |
| | | | Pharmaceuticals - 0.1% | |
| | | | | 815,900 | | | Endo Luxembourg Finance Co. I S.a r.l.
1 mo. USD LIBOR + 4.250%, 5.88%, 04/29/2024 | | | 819,980 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Pharmaceuticals - 0.1% - (continued) | |
| | $ | | | | 422,787 | | | Valeant Pharmaceuticals International, Inc.
1 mo. USD LIBOR + 4.750%, 4.94%, 04/01/2022 | | $ | 428,503 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,248,483 | |
| | | | | | | | | | | | |
| | | | Pipelines - 0.0% | |
| | | | | 790,575 | | | Philadelphia Energy Solutions LLC
3 mo. USD LIBOR + 5.000%, 8.50%, 04/04/2018 | | | 588,978 | |
| | | | | | | | | | | | |
| | | | Real Estate - 0.1% | |
| | | | DTZ U.S. Borrower LLC | |
| | | | | 1,224,883 | | | 3 mo. USD LIBOR + 3.250%, 4.71%, 11/04/2021 | | | 1,207,820 | |
| | | | | 35,319 | | | 3 mo. USD LIBOR + 8.250%, 9.63%, 11/04/2022 | | | 35,231 | |
| | | | | 300,000 | | | VICI Properties LLC
0.00%, 10/14/2022(10) | | | 300,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,543,051 | |
| | | | | | | | | | | | |
| | | | Retail - 0.2% | |
| | | | Albertsons LLC | |
| | | | | 626,605 | | | 1 mo. USD LIBOR + 2.750%, 4.32%, 08/25/2021 | | | 613,572 | |
| | | | | 306,142 | | | 3 mo. USD LIBOR + 3.000%, 4.68%, 12/21/2022 | | | 299,670 | |
| | | | | 668,325 | | | Bass Pro Group LLC
1 mo. USD LIBOR + 5.000%, 6.57%, 09/25/2024 | | | 665,819 | |
| | | | | 500,581 | | | Harbor Freight Tools USA, Inc.
1 mo. USD LIBOR + 3.250%, 4.82%, 08/18/2023 | | | 503,595 | |
| | | | | 954,270 | | | Neiman Marcus Group Ltd. LLC
1 mo. USD LIBOR + 3.250%, 4.64%, 10/25/2020 | | | 776,900 | |
| | | | | 250,000 | | | Rite Aid Corp.
1 mo. USD LIBOR + 4.750%, 6.24%, 08/21/2020 | | | 250,730 | |
| | | | | 391,000 | | | Staples, Inc.
3 mo. USD LIBOR + 4.000%, 5.49%, 09/12/2024 | | | 382,984 | |
| | | | | 505,967 | | | U.S. Foods, Inc.
1 mo. USD LIBOR + 2.750%, 4.07%, 06/27/2023 | | | 508,497 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,001,767 | |
| | | | | | | | | | | | |
| | | | Software - 0.2% | |
| | | | | 548,625 | | | Almonde, Inc.
3 mo. USD LIBOR + 3.500%, 4.98%, 06/13/2024 | | | 549,958 | |
| | | | | 744,375 | | | Change Healthcare Holdings, Inc.
1 mo. USD LIBOR + 2.750%, 4.32%, 03/01/2024 | | | 745,402 | |
| | | | | 348,624 | | | Epicor Software Corp.
1 mo. USD LIBOR + 3.750%, 5.32%, 06/01/2022 | | | 349,248 | |
| | | | | 820,893 | | | Hyland Software, Inc.
1 mo. USD LIBOR + 3.250%, 4.82%, 07/01/2022 | | | 825,515 | |
| | | | | 1,187,854 | | | Infor U.S., Inc.
3 mo. USD LIBOR + 2.750%, 4.44%, 02/01/2022 | | | 1,191,572 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(9) - (continued) | |
| | | | Software - 0.2% - (continued) | |
| | $ | | | | 100,000 | | | Quest Software US Holdings, Inc.
3 mo. USD LIBOR + 5.500%, 6.92%, 10/31/2022 | | $ | 101,482 | |
| | | | | 1,659,725 | | | WEX, Inc.
3 mo. USD LIBOR + 2.750%, 4.32%, 06/30/2023 | | | 1,665,949 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,429,126 | |
| | | | | | | | | | | | |
| | | | Telecommunications - 0.1% | |
| | | | | 300,000 | | | Level 3 Financing, Inc.
1 mo. USD LIBOR + 2.250%, 3.70%, 02/22/2024 | | | 300,000 | |
| | | | | 1,012,350 | | | Sprint Communications, Inc.
1 mo. USD LIBOR + 2.500%, 4.13%, 02/02/2024 | | | 1,011,591 | |
| | | | | 440,000 | | | Unitymedia Finance LLC
1 mo. USD LIBOR + 2.250%, 3.73%, 09/30/2025 | | | 440,167 | |
| | | | | 667,759 | | | Univision Communications, Inc.
1 mo. USD LIBOR + 2.750%, 4.32%, 03/15/2024 | | | 665,162 | |
| | | | | 361,056 | | | Zayo Group LLC
1 mo. USD LIBOR + 2.250%, 3.80%, 01/19/2024 | | | 362,157 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,779,077 | |
| | | | | | | | | | | | |
| | | | Transportation - 0.0% | |
| | | | | 155,000 | | | Navistar International Corp.
1 mo. USD LIBOR + 3.500%, 4.90%, 11/01/2024 | | | 155,436 | |
| | | | | | | | | | | | |
| | | | Trucking & Leasing - 0.0% | |
| | | | | 307,453 | | | Avolon TLB Borrower 1 (Luxembourg) S.a.r.l.
1 mo. USD LIBOR + 2.250%, 3.75%, 04/03/2022 | | | 304,984 | |
| | | | | | | | | | | | |
| | |
| | | | Total Senior Floating Rate Interests
(cost $60,874,255) | | $ | 60,126,975 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 43.1% | |
| | | | FHLMC - 14.7% | |
| | | | | 160,677 | | | 0.00%, 11/15/2036(11) | | $ | 149,559 | |
| | | | | 55,521,274 | | | 0.17%, 10/25/2020(4)(6) | | | 256,969 | |
| | | | | 21,156,779 | | | 0.61%, 03/25/2027(4)(6) | | | 1,006,695 | |
| | | | | 29,962,061 | | | 1.96%, 08/25/2018(4)(6) | | | 186,804 | |
| | | | | 1,100,225 | | | 2.50%, 05/15/2028(6) | | | 81,291 | |
| | | | | 3,675,020 | | | 3.00%, 03/15/2028(6) | | | 310,200 | |
| | | | | 3,281,245 | | | 3.00%, 08/01/2029 | | | 3,349,577 | |
| | | | | 1,594,966 | | | 3.00%, 05/15/2032(6) | | | 133,152 | |
| | | | | 59,175,000 | | | 3.00%, 01/01/2033(5)(12) | | | 60,252,056 | |
| | | | | 1,079,567 | | | 3.00%, 03/15/2033(6) | | | 139,709 | |
| | | | | 6,674,797 | | | 3.00%, 11/01/2036 | | | 6,792,410 | |
| | | | | 4,262,099 | | | 3.00%, 01/01/2037 | | | 4,326,649 | |
| | | | | 3,023,428 | | | 3.00%, 06/15/2041 | | | 3,066,091 | |
| | | | | 7,201,396 | | | 3.00%, 07/15/2041 | | | 7,289,362 | |
| | | | | 10,500,845 | | | 3.00%, 11/01/2046 | | | 10,521,479 | |
| | | | | 1,944,644 | | | 3.00%, 12/01/2046 | | | 1,951,010 | |
| | | | | 49,975,000 | | | 3.00%, 01/01/2048(5)(12) | | | 49,967,169 | |
| | | | | 3,400,000 | | | 3.43%, 01/25/2027(4) | | | 3,555,244 | |
| | | | | 1,964,975 | | | 3.50%, 06/15/2026(6) | | | 143,960 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | FHLMC - 14.7% - (continued) | |
| | $ | | | | 660,525 | | | 3.50%, 09/15/2026(6) | | $ | 63,093 | |
| | | | | 1,147,982 | | | 3.50%, 03/15/2027(6) | | | 106,363 | |
| | | | | 9,200,000 | | | 3.50%, 01/01/2033(5)(12) | | | 9,504,571 | |
| | | | | 6,006,996 | | | 3.50%, 08/01/2034 | | | 6,248,668 | |
| | | | | 3,979,507 | | | 3.50%, 03/15/2041(6) | | | 488,442 | |
| | | | | 1,683,078 | | | 3.50%, 06/01/2046 | | | 1,731,023 | |
| | | | | 48,095,000 | | | 3.50%, 01/01/2048(5)(12) | | | 49,390,073 | |
| | | | | 5,651,846 | | | 4.00%, 08/01/2025 | | | 5,913,551 | |
| | | | | 2,588,162 | | | 4.00%, 12/15/2026(6) | | | 244,840 | |
| | | | | 4,543,643 | | | 4.00%, 07/15/2027(6) | | | 455,637 | |
| | | | | 1,918,139 | | | 4.00%, 03/15/2028(6) | | | 183,809 | |
| | | | | 1,002,220 | | | 4.00%, 06/15/2028(6) | | | 106,879 | |
| | | | | 4,743,174 | | | 4.00%, 05/01/2042 | | | 4,979,376 | |
| | | | | 1,436,386 | | | 4.00%, 08/01/2042 | | | 1,512,952 | |
| | | | | 2,074,248 | | | 4.00%, 09/01/2042 | | | 2,184,821 | |
| | | | | 479,718 | | | 4.00%, 07/01/2044 | | | 504,048 | |
| | | | | 387,680 | | | 4.00%, 06/01/2045 | | | 406,075 | |
| | | | | 1,828,152 | | | 4.00%, 02/01/2046 | | | 1,912,030 | |
| | | | | 7,415,130 | | | 4.00%, 09/01/2047 | | | 7,759,507 | |
| | | | | 10,110,000 | | | 4.00%, 01/01/2048(5)(12) | | | 10,572,058 | |
| | | | | 1,726,850 | | | 4.50%, 03/15/2041 | | | 1,926,080 | |
| | | | | 1,077,964 | | | 4.50%, 09/01/2044 | | | 1,146,790 | |
| | | | | 44,875,000 | | | 4.50%, 01/01/2048(5)(12) | | | 47,700,725 | |
| | | | | 3,238,003 | | | 4.75%, 07/15/2039 | | | 3,504,751 | |
| | | | | 216,834 | | | 5.00%, 04/01/2023 | | | 233,007 | |
| | | | | 728,833 | | | 5.00%, 05/01/2023 | | | 783,195 | |
| | | | | 355,035 | | | 5.00%, 07/01/2023 | | | 381,516 | |
| | | | | 2,537,145 | | | 5.00%, 09/01/2023 | | | 2,726,387 | |
| | | | | 114,156 | | | 5.00%, 01/01/2024 | | | 122,671 | |
| | | | | 20,825 | | | 5.00%, 05/01/2024 | | | 22,378 | |
| | | | | 1,928,844 | | | 5.00%, 06/01/2024 | | | 2,072,713 | |
| | | | | 74,852 | | | 5.00%, 12/01/2024 | | | 80,435 | |
| | | | | 1,533,757 | | | 5.00%, 01/01/2025 | | | 1,648,156 | |
| | | | | 409,734 | | | 5.00%, 04/01/2025 | | | 440,295 | |
| | | | | 2,424,504 | | | 5.00%, 06/01/2025 | | | 2,605,343 | |
| | | | | 1,520,867 | | | 5.00%, 07/01/2025 | | | 1,634,306 | |
| | | | | 1,192,429 | | | 5.00%, 09/01/2025 | | | 1,281,370 | |
| | | | | 75,000 | | | 5.00%, 02/01/2026 | | | 80,594 | |
| | | | | 545,771 | | | 5.00%, 03/01/2027 | | | 586,479 | |
| | | | | 125,526 | | | 5.00%, 03/01/2028 | | | 134,889 | |
| | | | | 20,803 | | | 5.00%, 09/01/2029 | | | 22,354 | |
| | | | | 481,345 | | | 5.00%, 03/01/2031 | | | 520,290 | |
| | | | | 783,266 | | | 5.00%, 05/01/2031 | | | 846,344 | |
| | | | | 1,159,885 | | | 5.00%, 09/01/2031 | | | 1,246,399 | |
| | | | | 956,815 | | | 5.00%, 11/01/2031 | | | 1,028,989 | |
| | | | | 271,267 | | | 5.00%, 07/01/2032 | | | 291,946 | |
| | | | | 1,460,721 | | | 5.00%, 09/15/2033(6) | | | 303,378 | |
| | | | | 17,850 | | | 5.00%, 12/01/2034 | | | 19,182 | |
| | | | | 22,785 | | | 5.00%, 11/01/2035 | | | 24,659 | |
| | | | | 37,487 | | | 5.00%, 03/01/2039 | | | 40,783 | |
| | | | | 485,000 | | | 5.00%, 08/01/2039 | | | 528,333 | |
| | | | | 21,172 | | | 5.00%, 09/01/2039 | | | 23,063 | |
| | | | | 17,855 | | | 5.00%, 12/01/2039 | | | 19,498 | |
| | | | | 20,401 | | | 5.00%, 04/01/2041 | | | 22,029 | |
| | | | | 49,280 | | | 5.00%, 04/01/2044 | | | 53,605 | |
| | | | | 25,918 | | | 5.00%, 05/01/2044 | | | 27,952 | |
| | | | | 1,000,000 | | | 5.00%, 12/01/2047(5)(12) | | | 1,074,588 | |
| | | | | 204 | | | 5.50%, 10/01/2018 | | | 205 | |
| | | | | 62,588 | | | 5.50%, 03/01/2028 | | | 68,365 | |
| | | | | 100,858 | | | 5.50%, 04/01/2033 | | | 111,737 | |
| | | | | 1,194,936 | | | 5.50%, 05/01/2034 | | | 1,324,551 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | FHLMC - 14.7% - (continued) | |
| | $ | | | | 1,590 | | | 5.50%, 11/01/2035 | | $ | 1,762 | |
| | | | | 25,177 | | | 5.50%, 05/01/2037 | | | 27,823 | |
| | | | | 63,421 | | | 5.50%, 11/01/2037 | | | 70,129 | |
| | | | | 111,673 | | | 5.50%, 02/01/2038 | | | 123,336 | |
| | | | | 47,828 | | | 5.50%, 04/01/2038 | | | 52,877 | |
| | | | | 57,236 | | | 5.50%, 06/01/2038 | | | 63,237 | |
| | | | | 6,496,402 | | | 5.50%, 08/01/2038 | | | 7,183,437 | |
| | | | | 640,190 | | | 5.50%, 09/01/2038 | | | 707,476 | |
| | | | | 12,752 | | | 5.50%, 12/01/2039 | | | 14,092 | |
| | | | | 166,293 | | | 5.50%, 02/01/2040 | | | 183,840 | |
| | | | | 545,281 | | | 5.50%, 05/01/2040 | | | 602,458 | |
| | | | | 550,218 | | | 5.50%, 08/01/2040 | | | 608,068 | |
| | | | | 2,308,211 | | | 5.50%, 06/01/2041 | | | 2,552,534 | |
| | | | | 1,587 | | | 6.00%, 07/01/2029 | | | 1,773 | |
| | | | | 293,766 | | | 6.00%, 10/01/2032 | | | 332,587 | |
| | | | | 326,488 | | | 6.00%, 11/01/2032 | | | 366,323 | |
| | | | | 358,613 | | | 6.00%, 12/01/2032 | | | 406,173 | |
| | | | | 23,928 | | | 6.00%, 11/01/2033 | | | 27,012 | |
| | | | | 44,992 | | | 6.00%, 01/01/2034 | | | 50,792 | |
| | | | | 27,618 | | | 6.00%, 02/01/2034 | | | 31,178 | |
| | | | | 306,712 | | | 6.00%, 08/01/2034 | | | 346,253 | |
| | | | | 318,523 | | | 6.00%, 09/01/2034 | | | 359,103 | |
| | | | | 283,355 | | | 6.00%, 01/01/2035 | | | 316,611 | |
| | | | | 2,403,065 | | | 6.00%, 11/01/2037 | | | 2,712,775 | |
| | | | | 111 | | | 6.50%, 07/01/2031 | | | 123 | |
| | | | | 348 | | | 6.50%, 08/01/2032 | | | 386 | |
| | | | | 1,105,168 | | | 6.50%, 07/15/2036 | | | 1,221,521 | |
| | | | | 201,491 | | | 6.50%, 12/01/2037 | | | 223,185 | |
| | | | | 120 | | | 7.50%, 09/01/2029 | | | 127 | |
| | | | | 2,561 | | | 7.50%, 11/01/2031 | | | 2,842 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 353,047,365 | |
| | | | | | | | | | | | |
| | | | FNMA - 16.5% | |
| | | | | 178,412 | | | 0.00%, 03/25/2036(11) | | | 150,041 | |
| | | | | 1,487,723 | | | 0.00%, 06/25/2036(11) | | | 1,293,108 | |
| | | | | 5,009,695 | | | 1.70%, 04/25/2055(4)(6) | | | 244,246 | |
| | | | | 5,283,614 | | | 1.77%, 05/25/2046(4)(6) | | | 230,187 | |
| | | | | 4,997,588 | | | 1.87%, 08/25/2044(4)(6) | | | 221,013 | |
| | | | | 3,800,943 | | | 1.92%, 06/25/2055(4)(6) | | | 185,250 | |
| | | | | 2,443,544 | | | 2.00%, 09/25/2039 | | | 2,340,483 | |
| | | | | 1,167,710 | | | 2.50%, 06/25/2028(6) | | | 91,543 | |
| | | | | 8,500,000 | | | 2.50%, 01/01/2033(5)(12) | | | 8,486,719 | |
| | | | | 271,469 | | | 2.50%, 01/01/2043 | | | 263,230 | |
| | | | | 5,300,711 | | | 2.50%, 02/01/2043 | | | 5,140,169 | |
| | | | | 2,046,566 | | | 2.50%, 03/01/2043 | | | 1,984,453 | |
| | | | | 4,284,805 | | | 2.50%, 05/01/2043 | | | 4,154,847 | |
| | | | | 2,855,985 | | | 2.50%, 06/01/2043 | | | 2,766,423 | |
| | | | | 2,107,988 | | | 2.50%, 04/01/2045 | | | 2,035,490 | |
| | | | | 908,028 | | | 2.50%, 08/01/2046 | | | 876,794 | |
| | | | | 576,937 | | | 2.50%, 09/01/2046 | | | 557,092 | |
| | | | | 477,062 | | | 2.50%, 10/01/2046 | | | 460,652 | |
| | | | | 8,026,553 | | | 2.50%, 11/01/2046 | | | 7,750,475 | |
| | | | | 13,879,378 | | | 2.50%, 12/01/2046 | | | 13,402,008 | |
| | | | | 17,916,164 | | | 2.50%, 01/01/2047 | | | 17,299,891 | |
| | | | | 17,570,000 | | | 2.50%, 01/01/2048(5)(12) | | | 16,955,779 | |
| | | | | 9,780,000 | | | 2.65%, 06/01/2025 | | | 9,789,713 | |
| | | | | 4,400,000 | | | 2.78%, 11/01/2027 | | | 4,357,510 | |
| | | | | 1,550,366 | | | 2.85%, 12/01/2027 | | | 1,545,423 | |
| | | | | 6,110,000 | | | 2.88%, 12/01/2027 | | | 6,105,214 | |
| | | | | 4,851,400 | | | 2.93%, 01/01/2027 | | | 4,887,602 | |
| | | | | 2,749,113 | | | 3.00%, 02/25/2027(6) | | | 221,377 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | FNMA - 16.5% - (continued) | |
| | $ | | | | 1,052,559 | | | 3.00%, 09/25/2027(6) | | $ | 108,127 | |
| | | | | 7,519,421 | | | 3.00%, 01/25/2028(6) | | | 669,671 | |
| | | | | 2,510,511 | | | 3.00%, 02/25/2028(6) | | | 230,704 | |
| | | | | 3,274,401 | | | 3.00%, 04/25/2028(6) | | | 311,090 | |
| | | | | 32,807,000 | | | 3.00%, 01/01/2033(5)(12) | | | 33,415,724 | |
| | | | | 4,284,149 | | | 3.00%, 03/01/2037 | | | 4,352,367 | |
| | | | | 1,881,586 | | | 3.02%, 03/01/2027 | | | 1,907,860 | |
| | | | | 9,020,317 | | | 3.11%, 04/01/2027 | | | 9,198,763 | |
| | | | | 3,810,768 | | | 3.15%, 04/01/2027 | | | 3,895,751 | |
| | | | | 2,905,000 | | | 3.16%, 04/01/2027 | | | 2,972,736 | |
| | | | | 1,380,211 | | | 3.21%, 01/01/2027 | | | 1,416,556 | |
| | | | | 489,483 | | | 3.24%, 12/01/2026 | | | 504,974 | |
| | | | | 290,000 | | | 3.29%, 06/01/2029 | | | 297,903 | |
| | | | | 1,202,093 | | | 3.50%, 05/25/2027(6) | | | 124,577 | |
| | | | | 1,836,001 | | | 3.50%, 10/25/2027(6) | | | 194,620 | |
| | | | | 1,963,129 | | | 3.50%, 05/25/2030(6) | | | 243,909 | |
| | | | | 609,392 | | | 3.50%, 08/25/2030(6) | | | 71,771 | |
| | | | | 1,402,701 | | | 3.50%, 02/25/2031(6) | | | 133,382 | |
| | | | | 1,132,335 | | | 3.50%, 09/25/2035(6) | | | 173,493 | |
| | | | | 2,339,801 | | | 3.50%, 10/01/2044 | | | 2,416,908 | |
| | | | | 2,737,886 | | | 3.50%, 02/01/2045 | | | 2,812,546 | |
| | | | | 5,082,509 | | | 3.50%, 09/01/2046 | | | 5,221,106 | |
| | | | | 2,308,608 | | | 3.50%, 10/01/2046 | | | 2,371,562 | |
| | | | | 907,110 | | | 3.50%, 10/25/2046(6) | | | 208,088 | |
| | | | | 1,706,679 | | | 3.50%, 11/01/2046 | | | 1,763,202 | |
| | | | | 94,930,000 | | | 3.50%, 01/01/2048(5)(12) | | | 97,466,416 | |
| | | | | 1,986,906 | | | 3.74%, 06/01/2026 | | | 2,113,016 | |
| | | | | 6,700,000 | | | 3.77%, 12/01/2025 | | | 7,165,659 | |
| | | | | 315,000 | | | 3.86%, 12/01/2025 | | | 338,921 | |
| | | | | 525,170 | | | 3.87%, 10/01/2025 | | | 563,814 | |
| | | | | 679,156 | | | 3.89%, 05/01/2030 | | | 729,450 | |
| | | | | 294,342 | | | 3.96%, 05/01/2034 | | | 318,537 | |
| | | | | 190,724 | | | 3.97%, 05/01/2029 | | | 205,125 | |
| | | | | 2,695,277 | | | 4.00%, 06/01/2025 | | | 2,819,977 | |
| | | | | 784,695 | | | 4.00%, 10/01/2025 | | | 817,384 | |
| | | | | 5,098,285 | | | 4.00%, 10/01/2040 | | | 5,356,158 | |
| | | | | 2,244,870 | | | 4.00%, 11/01/2040 | | | 2,358,676 | |
| | | | | 1,645,748 | | | 4.00%, 12/01/2040 | | | 1,729,127 | |
| | | | | 801,740 | | | 4.00%, 02/01/2041 | | | 842,704 | |
| | | | | 1,833,242 | | | 4.00%, 03/01/2041 | | | 1,924,951 | |
| | | | | 855,182 | | | 4.00%, 03/25/2042(6) | | | 123,578 | |
| | | | | 857,645 | | | 4.00%, 08/01/2042 | | | 900,742 | |
| | | | | 1,727,066 | | | 4.00%, 09/01/2042 | | | 1,813,847 | |
| | | | | 491,246 | | | 4.00%, 11/25/2042(6) | | | 72,479 | |
| | | | | 395,675 | | | 4.00%, 03/01/2045 | | | 414,119 | |
| | | | | 1,517,085 | | | 4.00%, 07/01/2045 | | | 1,603,547 | |
| | | | | 909,737 | | | 4.00%, 05/01/2046 | | | 951,786 | |
| | | | | 1,883,135 | | | 4.00%, 06/01/2046 | | | 1,970,165 | |
| | | | | 1,775,084 | | | 4.00%, 04/01/2047 | | | 1,876,286 | |
| | | | | 32,620,000 | | | 4.00%, 01/01/2048(5)(12) | | | 34,112,003 | |
| | | | | 432,422 | | | 4.06%, 10/01/2028 | | | 468,866 | |
| | | | | 738,300 | | | 4.50%, 04/01/2025 | | | 761,009 | |
| | | | | 993,287 | | | 4.50%, 07/25/2027(6) | | | 106,733 | |
| | | | | 1,336,303 | | | 4.50%, 09/01/2035 | | | 1,427,900 | |
| | | | | 5,055,195 | | | 4.50%, 08/01/2040 | | | 5,448,399 | |
| | | | | 4,598,714 | | | 4.50%, 10/01/2040 | | | 4,921,113 | |
| | | | | 2,047,882 | | | 4.50%, 10/01/2041 | | | 2,194,795 | |
| | | | | 1,820,529 | | | 4.50%, 09/01/2043 | | | 1,947,680 | |
| | | | | 15 | | | 5.00%, 02/01/2018 | | | 15 | |
| | | | | 6,475 | | | 5.00%, 04/01/2018 | | | 6,592 | |
| | | | | 38,685 | | | 5.00%, 05/01/2018 | | | 39,382 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | FNMA - 16.5% - (continued) | |
| | $ | | | | 58,804 | | | 5.00%, 06/01/2018 | | $ | 59,862 | |
| | | | | 1,881 | | | 5.00%, 07/01/2018 | | | 1,915 | |
| | | | | 19,660 | | | 5.00%, 09/01/2018 | | | 19,734 | |
| | | | | 121,690 | | | 5.00%, 01/01/2020 | | | 123,882 | |
| | | | | 944,213 | | | 5.00%, 06/01/2022 | | | 989,005 | |
| | | | | 344,751 | | | 5.00%, 06/01/2025 | | | 366,012 | |
| | | | | 778,890 | | | 5.00%, 04/25/2038 | | | 827,168 | |
| | | | | 564,931 | | | 5.46%, 05/25/2042(4)(6) | | | 61,393 | |
| | | | | 1,955 | | | 5.50%, 02/01/2018 | | | 1,954 | |
| | | | | 212 | | | 5.50%, 06/01/2018 | | | 213 | |
| | | | | 583 | | | 5.50%, 11/01/2018 | | | 585 | |
| | | | | 32,744 | | | 5.50%, 08/01/2019 | | | 33,180 | |
| | | | | 57,047 | | | 5.50%, 09/01/2019 | | | 57,801 | |
| | | | | 12,115 | | | 5.50%, 10/01/2019 | | | 12,278 | |
| | | | | 7,076 | | | 5.50%, 01/01/2020 | | | 7,185 | |
| | | | | 1,545 | | | 5.50%, 03/01/2020 | | | 1,573 | |
| | | | | 280,686 | | | 5.50%, 05/01/2020 | | | 286,507 | |
| | | | | 198,447 | | | 5.50%, 06/01/2022 | | | 207,290 | |
| | | | | 290,625 | | | 5.50%, 06/01/2033 | | | 323,019 | |
| | | | | 248,755 | | | 5.50%, 08/01/2033 | | | 274,788 | |
| | | | | 1,446,030 | | | 5.50%, 09/01/2033 | | | 1,604,066 | |
| | | | | 1,301,060 | | | 5.50%, 12/01/2033 | | | 1,451,548 | |
| | | | | 1,084,038 | | | 5.50%, 01/01/2034 | | | 1,201,701 | |
| | | | | 4,936,802 | | | 5.50%, 11/01/2035 | | | 5,478,138 | |
| | | | | 1,503,424 | | | 5.50%, 04/01/2036 | | | 1,666,893 | |
| | | | | 1,202,004 | | | 5.50%, 09/01/2036 | | | 1,333,831 | |
| | | | | 113,168 | | | 5.50%, 01/01/2037 | | | 124,923 | |
| | | | | 789,830 | | | 5.50%, 04/25/2037 | | | 869,441 | |
| | | | | 3,252,540 | | | 5.50%, 06/25/2042(6) | | | 705,779 | |
| | | | | 3,287 | | | 6.00%, 03/01/2022 | | | 3,318 | |
| | | | | 495,229 | | | 6.00%, 12/01/2032 | | | 562,704 | |
| | | | | 610,537 | | | 6.00%, 01/01/2033 | | | 686,940 | |
| | | | | 78,861 | | | 6.00%, 02/01/2033 | | | 88,097 | |
| | | | | 659,084 | | | 6.00%, 03/01/2033 | | | 746,317 | |
| | | | | 1,432,930 | | | 6.00%, 02/01/2037 | | | 1,621,748 | |
| | | | | 2,215,299 | | | 6.00%, 09/25/2047(6) | | | 526,863 | |
| | | | | 1,370 | | | 6.50%, 05/01/2031 | | | 1,519 | |
| | | | | 1,201 | | | 6.50%, 09/01/2031 | | | 1,348 | |
| | | | | 1,895 | | | 6.50%, 07/01/2032 | | | 2,165 | |
| | | | | 1,710 | | | 7.00%, 07/01/2029 | | | 1,950 | |
| | | | | 96 | | | 7.00%, 12/01/2030 | | | 98 | |
| | | | | 748 | | | 7.00%, 02/01/2032 | | | 803 | |
| | | | | 290 | | | 7.00%, 03/01/2032 | | | 332 | |
| | | | | 2,017 | | | 7.00%, 09/01/2032 | | | 2,134 | |
| | | | | 2,534 | | | 7.50%, 10/01/2022 | | | 2,768 | |
| | | | | 1,963 | | | 7.50%, 06/01/2027 | | | 2,265 | |
| | | | | 2,275 | | | 7.50%, 10/01/2029 | | | 2,323 | |
| | | | | 16,648 | | | 7.50%, 03/01/2030 | | | 18,396 | |
| | | | | 8,680 | | | 7.50%, 04/01/2030 | | | 9,187 | |
| | | | | 1,159 | | | 7.50%, 06/01/2030 | | | 1,305 | |
| | | | | 2,092 | | | 7.50%, 07/01/2030 | | | 2,326 | |
| | | | | 610 | | | 7.50%, 08/01/2030 | | | 673 | |
| | | | | 5,858 | | | 7.50%, 10/01/2030 | | | 5,924 | |
| | | | | 7,991 | | | 7.50%, 01/01/2031 | | | 8,159 | |
| | | | | 29,469 | | | 7.50%, 05/01/2031 | | | 33,748 | |
| | | | | 8,165 | | | 7.50%, 06/01/2031 | | | 8,432 | |
| | | | | 1,981 | | | 7.50%, 08/01/2031 | | | 2,195 | |
| | | | | 40,184 | | | 7.50%, 09/01/2031 | | | 41,814 | |
| | | | | 335 | | | 7.50%, 05/01/2032 | | | 391 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 397,202,979 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | GNMA - 11.9% | |
| | $ | | | | 576,845 | | | 1.75%, 09/20/2043 | | $ | 556,596 | |
| | | | | 2,422,884 | | | 2.50%, 12/16/2039 | | | 2,409,368 | |
| | | | | 1,342,059 | | | 3.00%, 09/20/2028(6) | | | 119,986 | |
| | | | | 711,273 | | | 3.00%, 02/16/2043(6) | | | 127,152 | |
| | | | | 8,917,419 | | | 3.00%, 03/15/2045 | | | 8,993,617 | |
| | | | | 435,413 | | | 3.00%, 04/15/2045 | | | 439,133 | |
| | | | | 5,229,865 | | | 3.00%, 07/15/2045 | | | 5,274,553 | |
| | | | | 126,323 | | | 3.00%, 08/15/2045 | | | 127,403 | |
| | | | | 451,511 | | | 3.00%, 03/20/2047 | | | 417,586 | |
| | | | | 1,093,954 | | | 3.00%, 05/20/2047 | | | 1,016,940 | |
| | | | | 1,290,013 | | | 3.00%, 07/16/2047 | | | 1,253,249 | |
| | | | | 63,840,092 | | | 3.00%, 11/20/2047 | | | 64,481,379 | |
| | | | | 33,900,000 | | | 3.00%, 01/01/2048(5)(12) | | | 34,207,219 | |
| | | | | 590,882 | | | 3.50%, 02/16/2027(6) | | | 56,307 | |
| | | | | 1,439,933 | | | 3.50%, 03/20/2027(6) | | | 147,895 | |
| | | | | 1,237,411 | | | 3.50%, 07/20/2040(6) | | | 137,972 | |
| | | | | 1,772,965 | | | 3.50%, 02/20/2041(6) | | | 212,340 | |
| | | | | 2,976,959 | | | 3.50%, 04/20/2042(6) | | | 371,496 | |
| | | | | 4,406,057 | | | 3.50%, 10/20/2042(6) | | | 886,879 | |
| | | | | 499,332 | | | 3.50%, 11/15/2042 | | | 519,994 | |
| | | | | 14,261 | | | 3.50%, 12/15/2042 | | | 14,799 | |
| | | | | 354,528 | | | 3.50%, 02/15/2043 | | | 367,880 | |
| | | | | 15,358 | | | 3.50%, 03/15/2043 | | | 15,937 | |
| | | | | 2,012,164 | | | 3.50%, 04/15/2043 | | | 2,088,085 | |
| | | | | 6,106,264 | | | 3.50%, 05/15/2043 | | | 6,336,761 | |
| | | | | 328,692 | | | 3.50%, 05/20/2043(6) | | | 60,171 | |
| | | | | 2,674,542 | | | 3.50%, 07/20/2043(6) | | | 410,041 | |
| | | | | 13,323,525 | | | 3.50%, 08/20/2047 | | | 13,787,049 | |
| | | | | 9,417,394 | | | 3.50%, 09/20/2047 | | | 9,745,024 | |
| | | | | 15,535,000 | | | 3.50%, 01/01/2048(5)(12) | | | 16,059,306 | |
| | | | | 444,139 | | | 4.00%, 12/16/2026(6) | | | 46,513 | |
| | | | | 5,944,178 | | | 4.00%, 05/20/2029(6) | | | 611,189 | |
| | | | | 6,341,113 | | | 4.00%, 07/20/2040 | | | 6,674,862 | |
| | | | | 7,480,580 | | | 4.00%, 09/20/2040 | | | 7,872,938 | |
| | | | | 11,211,536 | | | 4.00%, 10/20/2040 | | | 11,797,243 | |
| | | | | 1,802,417 | | | 4.00%, 12/20/2040 | | | 1,911,781 | |
| | | | | 594,594 | | | 4.00%, 05/16/2042(6) | | | 97,090 | |
| | | | | 816,300 | | | 4.00%, 03/20/2043(6) | | | 176,282 | |
| | | | | 375,964 | | | 4.00%, 01/20/2044(6) | | | 80,686 | |
| | | | | 2,759,969 | | | 4.00%, 03/20/2047(6) | | | 523,390 | |
| | | | | 4,232,139 | | | 4.00%, 07/20/2047(6) | | | 838,838 | |
| | | | | 6,315,585 | | | 4.00%, 10/20/2047 | | | 6,611,285 | |
| | | | | 6,086,408 | | | 4.00%, 11/20/2047 | | | 6,377,408 | |
| | | | | 26,491,000 | | | 4.00%, 01/01/2048(5)(12) | | | 27,614,799 | |
| | | | | 282,883 | | | 4.50%, 11/15/2039 | | | 299,011 | |
| | | | | 2,363,743 | | | 4.50%, 05/15/2040 | | | 2,529,958 | |
| | | | | 7,583,972 | | | 4.50%, 05/20/2040 | | | 8,043,524 | |
| | | | | 410,138 | | | 4.50%, 07/15/2041 | | | 439,372 | |
| | | | | 1,413,092 | | | 4.50%, 04/20/2045(6) | | | 314,165 | |
| | | | | 740,990 | | | 4.50%, 01/20/2046 | | | 782,108 | |
| | | | | 1,800,000 | | | 4.50%, 01/01/2048(5)(12) | | | 1,888,031 | |
| | | | | 3,504,341 | | | 5.00%, 02/16/2040(6) | | | 822,554 | |
| | | | | 827,159 | | | 5.00%, 05/20/2040 | | | 899,258 | |
| | | | | 2,003,052 | | | 5.00%, 06/15/2041 | | | 2,172,086 | |
| | | | | 2,616,892 | | | 5.00%, 10/16/2041(6) | | | 446,969 | |
| | | | | 3,104,237 | | | 5.00%, 03/15/2044 | | | 3,366,764 | |
| | | | | 882,402 | | | 5.00%, 01/16/2047(6) | | | 204,712 | |
| | | | | 4,400,000 | | | 5.00%, 01/01/2048(5)(12) | | | 4,729,055 | |
| | | | | 644,581 | | | 5.50%, 03/15/2033 | | | 728,567 | |
| | | | | 870,738 | | | 5.50%, 04/15/2033 | | | 969,127 | |
| | | | | 989,348 | | | 5.50%, 05/15/2033 | | | 1,112,703 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | GNMA - 11.9% - (continued) | |
| | $ | | | | 1,396,576 | | | 5.50%, 10/20/2034 | | $ | 1,547,923 | |
| | | | | 3,010,505 | | | 5.50%, 03/20/2039(6) | | | 678,936 | |
| | | | | 2,627,356 | | | 5.50%, 02/16/2047(6) | | | 578,619 | |
| | | | | 1,580,719 | | | 5.50%, 02/20/2047(6) | | | 328,261 | |
| | | | | 1,840 | | | 6.00%, 12/15/2023 | | | 2,057 | |
| | | | | 1,147 | | | 6.00%, 01/15/2029 | | | 1,282 | |
| | | | | 1,643 | | | 6.00%, 04/15/2029 | | | 1,857 | |
| | | | | 58,448 | | | 6.00%, 12/15/2031 | | | 65,922 | |
| | | | | 1,067 | | | 6.00%, 10/15/2032 | | | 1,212 | |
| | | | | 26,963 | | | 6.00%, 06/15/2033 | | | 30,490 | |
| | | | | 2,760 | | | 6.00%, 03/15/2034 | | | 3,151 | |
| | | | | 64,771 | | | 6.00%, 08/15/2034 | | | 72,976 | |
| | | | | 86,824 | | | 6.00%, 09/15/2034 | | | 97,818 | |
| | | | | 48,775 | | | 6.00%, 02/15/2035 | | | 54,627 | |
| | | | | 298,583 | | | 6.00%, 12/15/2035 | | | 335,532 | |
| | | | | 66,355 | | | 6.00%, 02/15/2036 | | | 74,186 | |
| | | | | 218,622 | | | 6.00%, 03/15/2036 | | | 246,649 | |
| | | | | 32,727 | | | 6.00%, 04/15/2036 | | | 36,590 | |
| | | | | 169,388 | | | 6.00%, 05/15/2036 | | | 190,390 | |
| | | | | 300,213 | | | 6.00%, 06/15/2036 | | | 337,757 | |
| | | | | 73,264 | | | 6.00%, 07/15/2036 | | | 81,925 | |
| | | | | 43,137 | | | 6.00%, 08/15/2036 | | | 48,536 | |
| | | | | 207,701 | | | 6.00%, 02/15/2037 | | | 233,403 | |
| | | | | 660 | | | 6.00%, 05/15/2037 | | | 738 | |
| | | | | 473,689 | | | 6.00%, 06/15/2037 | | | 533,876 | |
| | | | | 336,185 | | | 6.00%, 07/15/2037 | | | 375,862 | |
| | | | | 96,308 | | | 6.00%, 08/15/2037 | | | 108,679 | |
| | | | | 116,600 | | | 6.00%, 10/15/2037 | | | 130,361 | |
| | | | | 105,328 | | | 6.00%, 11/15/2037 | | | 117,759 | |
| | | | | 117,957 | | | 6.00%, 12/15/2037 | | | 133,905 | |
| | | | | 201,158 | | | 6.00%, 01/15/2038 | | | 226,115 | |
| | | | | 16,267 | | | 6.00%, 02/15/2038 | | | 18,192 | |
| | | | | 39,835 | | | 6.00%, 05/15/2038 | | | 44,564 | |
| | | | | 9,506 | | | 6.00%, 06/15/2038 | | | 10,628 | |
| | | | | 53,665 | | | 6.00%, 08/15/2038 | | | 60,051 | |
| | | | | 111,041 | | | 6.00%, 09/15/2038 | | | 124,146 | |
| | | | | 176,022 | | | 6.00%, 10/15/2038 | | | 203,709 | |
| | | | | 320,414 | | | 6.00%, 11/15/2038 | | | 358,229 | |
| | | | | 234,380 | | | 6.00%, 12/15/2038 | | | 262,159 | |
| | | | | 2,188 | | | 6.00%, 01/15/2039 | | | 2,446 | |
| | | | | 42,118 | | | 6.00%, 08/15/2039 | | | 47,089 | |
| | | | | 91,705 | | | 6.00%, 11/15/2039 | | | 102,528 | |
| | | | | 138,514 | | | 6.00%, 02/15/2040 | | | 154,862 | |
| | | | | 1,100,751 | | | 6.00%, 06/15/2040 | | | 1,230,663 | |
| | | | | 205,018 | | | 6.00%, 07/15/2040 | | | 229,215 | |
| | | | | 2,316,921 | | | 6.00%, 09/20/2040(6) | | | 554,726 | |
| | | | | 1,174,358 | | | 6.00%, 06/15/2041 | | | 1,314,792 | |
| | | | | 2,317,786 | | | 6.00%, 02/20/2046(6) | | | 537,355 | |
| | | | | 25,282 | | | 6.50%, 06/15/2028 | | | 28,048 | |
| | | | | 529 | | | 6.50%, 07/15/2028 | | | 586 | |
| | | | | 2,669 | | | 6.50%, 08/15/2028 | | | 2,961 | |
| | | | | 18,059 | | | 6.50%, 09/15/2028 | | | 20,034 | |
| | | | | 1,567 | | | 6.50%, 10/15/2028 | | | 1,738 | |
| | | | | 4,442 | | | 6.50%, 11/15/2028 | | | 4,928 | |
| | | | | 9,083 | | | 6.50%, 12/15/2028 | | | 10,077 | |
| | | | | 9,366 | | | 6.50%, 01/15/2029 | | | 10,391 | |
| | | | | 26,310 | | | 6.50%, 02/15/2029 | | | 29,188 | |
| | | | | 256,796 | | | 6.50%, 03/15/2029 | | | 284,890 | |
| | | | | 42,260 | | | 6.50%, 04/15/2029 | | | 46,883 | |
| | | | | 28,075 | | | 6.50%, 05/15/2029 | | | 31,147 | |
| | | | | 184,808 | | | 6.50%, 06/15/2029 | | | 205,028 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 43.1% - (continued) | |
| | | | GNMA - 11.9% - (continued) | |
| | $ | | | | 8,717 | | | 6.50%, 07/15/2029 | | $ | 9,671 | |
| | | | | 343 | | | 6.50%, 03/15/2031 | | | 380 | |
| | | | | 236,352 | | | 6.50%, 04/15/2031 | | | 262,213 | |
| | | | | 60,554 | | | 6.50%, 05/15/2031 | | | 68,697 | |
| | | | | 9,309 | | | 6.50%, 06/15/2031 | | | 10,574 | |
| | | | | 203,737 | | | 6.50%, 07/15/2031 | | | 226,030 | |
| | | | | 105,803 | | | 6.50%, 08/15/2031 | | | 117,379 | |
| | | | | 143,997 | | | 6.50%, 09/15/2031 | | | 159,750 | |
| | | | | 158,310 | | | 6.50%, 10/15/2031 | | | 175,632 | |
| | | | | 450,556 | | | 6.50%, 11/15/2031 | | | 499,853 | |
| | | | | 85,636 | | | 6.50%, 12/15/2031 | | | 95,005 | |
| | | | | 326,655 | | | 6.50%, 01/15/2032 | | | 362,534 | |
| | | | | 66,217 | | | 6.50%, 02/15/2032 | | | 75,404 | |
| | | | | 48,283 | | | 6.50%, 03/15/2032 | | | 53,565 | |
| | | | | 260,395 | | | 6.50%, 04/15/2032 | | | 296,295 | |
| | | | | 762 | | | 6.50%, 05/15/2032 | | | 845 | |
| | | | | 38,054 | | | 6.50%, 06/15/2032 | | | 42,217 | |
| | | | | 5,974 | | | 7.00%, 06/20/2030 | | | 6,405 | |
| | | | | 732 | | | 7.00%, 02/15/2031 | | | 796 | |
| | | | | 200 | | | 7.00%, 06/15/2031 | | | 211 | |
| | | | | 192 | | | 7.00%, 08/15/2031 | | | 213 | |
| | | | | 735 | | | 8.50%, 11/15/2024 | | | 738 | |
| | | | | | | | | | | | |
| | | | 286,697,439 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $1,033,920,536) | | $ | 1,036,947,783 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 6.2% | |
| | | | U.S. Treasury Securities - 6.2% | |
| | | | U.S. Treasury Bonds - 1.7% | |
| | | | | 7,439,000 | | | 2.50%, 02/15/2046(13) | | $ | 7,078,964 | |
| | | | | 16,279,000 | | | 2.88%, 11/15/2046(13) | | | 16,699,329 | |
| | | | | 5,595,000 | | | 3.00%, 05/15/2045(14) | | | 5,875,843 | |
| | | | | 1,534,000 | | | 3.00%, 11/15/2045 | | | 1,611,000 | |
| | | | | 9,260,000 | | | 3.13%, 08/15/2044(13)(14) | | | 9,952,691 | |
| | | | | | | | | | | | |
| | | | 41,217,827 | |
| | | | | | | | | | | | |
| | | | U.S. Treasury Notes - 4.5% | |
| | | | | 44,872,094 | | | 0.25%, 01/15/2025(15) | | | 44,474,892 | |
| | | | | 65,146,390 | | | 0.38%, 07/15/2027(15) | | | 64,799,528 | |
| | | | | | | | | | | | |
| | | | 109,274,420 | |
| | | | | | | | | | | | |
| | | | 150,492,247 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $150,575,339) | | $ | 150,492,247 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| COMMON STOCKS - 0.0% | |
| | | | Energy - 0.0% | |
| | | | | 14,557 | | | Templar Energy LLC Class A* | | $ | 30,570 | |
| | | | | | | | | | | | |
| | | | Utilities - 0.0% | |
| | | | | 800,000 | | | TCEH Corp.*(16)(17)(18) | | | 1 | |
| | | | | | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $124,644) | | $ | 30,571 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| PREFERRED STOCKS - 0.1% | |
| | | | Banks - 0.1% | |
| | $ | | | | 2,242 | | | U.S. Bancorp Series A
3 mo. USD LIBOR + 1.020%, 3.50%(2)(8) | | $ | 1,993,777 | |
| | | | | | | | | | | | |
| | | | Diversified Financials - 0.0% | |
| | | | | 20,000 | | | Citigroup Capital
3 mo. USD LIBOR + 6.370%, 7.75%(2) | | | 549,600 | |
| | | | | | | | | | | | |
| | |
| | | | Total Preferred Stocks
(cost $2,148,420) | | $ | 2,543,377 | |
| | | | | | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $2,795,228,396) | | $ | 2,814,297,015 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| SHORT-TERM INVESTMENTS - 3.7% | |
| | | | Commercial Paper - 0.0% | |
| | | | Commercial Banks - 0.0% | |
| | | | | | | | Toronto Dominion Bank | | | | |
| | CAD | | | | 315,000 | | | 0.80%, 01/03/2018(19) | | $ | 250,580 | |
| | | | | 315,000 | | | 0.91%, 01/05/2018(19) | | | 250,565 | |
| | | | | | | | | | | | |
| | | | 501,145 | |
| | | | | | | | | | | | |
| | | | Foreign Government Obligations - 1.0% | |
| | | | Sovereign - 1.0% | |
| | EUR | | | | 250,000 | | | France Treasury Bill
0.27%, 01/10/2018(7)(19) | | | 300,034 | |
| | | | Japan Treasury Discount Bill | |
| | JPY | | | | 335,000,000 | | | 0.00%, 01/15/2018(19) | | | 2,973,345 | |
| | | | | 680,000,000 | | | 0.00%, 01/11/2018(19) | | | 6,035,862 | |
| | | | | 330,000,000 | | | 0.00%, 02/13/2018(19) | | | 2,929,622 | |
| | | | | 522,400,000 | | | 0.13%, 03/05/2018(19) | | | 4,637,484 | |
| | | | | 295,600,000 | | | 0.16%, 03/19/2018(19) | | | 2,624,272 | |
| | | | | 39,400,000 | | | 0.17%, 01/29/2018(19) | | | 349,745 | |
| | EUR | | | | 1,830,000 | | | Spain Letras del Tesoro
0.43%, 02/16/2018(19) | | | 2,197,407 | |
| | SEK | | | | 4,500,000 | | | Sweden Treasury Bill
0.69%, 01/17/2018(19) | | | 548,742 | |
| | GBP | | | | 910,000 | | | United Kingdom Treasury Bill
0.03%, 01/15/2018(19) | | | 1,228,623 | |
| | | | | | | | | | | | |
| | | | 23,825,136 | |
| | | | | | | | | | | | |
| | | | 23,825,136 | |
| | | | | | | | | | | | |
| | | | Other Investment Pools & Funds - 1.2% | |
| | | | | 27,606,119 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.21%(20) | | | 27,606,119 | |
| | | | | | | | | | | | |
| | | | U.S. Treasury - 1.5% | |
| | | | Sovereign - 1.5% | |
| | | | | | | | U.S. Treasury Bills | | | | |
| | | | | 3,607,000 | | | 1.08%, 01/11/2018(19) | | | 3,605,831 | |
| | | | | 11,100,000 | | | 1.12%, 01/11/2018(19) | | | 11,096,245 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 3.7% - (continued) | |
| | | | U.S. Treasury - 1.5% - (continued) | |
| | | | Sovereign - 1.5% - (continued) | |
| | | | | | | | U.S. Treasury Bills - (continued) | |
| | | | | 11,100,000 | | | 1.16%, 01/25/2018(19) | | $ | 11,091,194 | |
| | | | | 11,100,000 | | | 1.22%, 02/08/2018(19) | | | 11,085,530 | |
| | | | | | | | | | | | |
| | | | 36,878,800 | |
| | | | | | | | | | | | |
| | | | 36,878,800 | |
| | | | | | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $88,757,988) | | $ | 88,811,200 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | Total Investments Excluding Purchased Options
(cost $2,883,986,384) | | | 120.6 | % | | $ | 2,903,108,215 | |
| | | | |
| | | | | | | | Total Purchased Options
(cost $4,775,400) | | | 0.2 | % | | $ | 4,184,607 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | Total Investments
(cost $2,888,761,784) | | | 120.8 | % | | $ | 2,907,292,822 | |
| | | | | | | | Other Assets and Liabilities | | | (20.8 | )% | | | (501,001,595 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | Total Net Assets | | | 100.0 | % | | $ | 2,406,291,227 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $857,212,075, which represented 35.6% of total net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2017. |
| (3) | Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (4) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (5) | 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 $505,338,909 at December 31, 2017. |
| (6) | Securities disclosed are interest-only strips. |
| (7) | 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 December 31, 2017, the aggregate value of these securities was $22,719,400, which represented 0.9% of total net assets. |
| (8) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (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 rate in effect as of December 31, 2017. |
| (10) | Represents an unsettled loan commitment. The coupon rate will be determined at time of settlement. |
| (11) | Securities disclosed are principal-only strips. |
| (12) | Represents or includes a TBA transaction. |
| (13) | This security, or a portion of this security, has been pledged as collateral in connection with OTC swap contracts. |
| (14) | This security, or a portion of this security, has been pledged as collateral in connection with futures contracts. |
| (15) | The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (16) | 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 December 31, 2017, the aggregate fair value of these securities was $1, which represented 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. |
| (17) | Investment valued using significant unobservable inputs. |
| (18) | This security has been identified as 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. The identification of illiquid securities is unaudited. At December 31, 2017, the aggregate value of these securities was $1, which represents 0.0% of total net assets. |
| (19) | The rate shown represents current yield to maturity. |
| (20) | Current yield as of period end. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Swaption Contracts Outstanding at December 31, 2017 | |
Description | | Counter-
party | | | Exercise Price/
FX Rate/Rate | | | Pay/Receive
Floating Rate | | | Expiration
Date | | | Notional
Amount | | | Number of
Contracts | | | Market
Value† | | | Premiums
Paid
(Received)
by Fund | | | Unrealized
Appreciation/
(Depreciation) | |
Purchased swaption contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Calls | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57 | | | BCLY | | | | 2.45% | | | | Receive | | | | 08/02/27 | | | | USD | | | | 14,000,000 | | | | 14,000,000 | | | $ | 1,919,077 | | | $ | 2,018,642 | | | $ | (99,565 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Puts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57 | | | BCLY | | | | 2.45% | | | | Pay | | | | 08/02/27 | | | | USD | | | | 14,000,000 | | | | 14,000,000 | | | $ | 2,265,530 | | | $ | 2,756,758 | | | $ | (491,228 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total purchased swaption contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | 28,000,000 | | | $ | 4,184,607 | | | $ | 4,775,400 | | | $ | (590,793 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2017 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note Future | | | 14 | | | | 03/20/2018 | | | $ | 1,869,875 | | | $ | 14,006 | |
U.S. Treasury 10-Year Note Future | | | 193 | | | | 03/20/2018 | | | | 23,941,047 | | | | 16,575 | |
U.S. Treasury 2-Year Note Future | | | 651 | | | | 03/29/2018 | | | | 139,385,204 | | | | (317,668 | ) |
U.S. Treasury 5-Year Note Future | | | 4,040 | | | | 03/29/2018 | | | | 469,302,815 | | | | (2,193,443 | ) |
U.S. Treasury Long Bond Future | | | 180 | | | | 03/20/2018 | | | | 27,540,000 | | | | (57,466 | ) |
U.S. Ultra Bond Future | | | 954 | | | | 03/20/2018 | | | | 159,944,062 | | | | 1,035,607 | |
| | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | (1,502,389 | ) |
| | | | | | | | | | | | | | | | |
Short position contracts: | | | | | | | | | | | | | | | | |
Australian 10-Year Bond Future | | | 152 | | | | 03/15/2018 | | | $ | 15,317,878 | | | $ | (23,664 | ) |
Canadian Government 10-Year Bond Future | | | 162 | | | | 03/20/2018 | | | | 17,370,215 | | | | 246,039 | |
Long Gilt Future | | | 348 | | | | 03/27/2018 | | | | 58,806,737 | | | | (368,434 | ) |
| | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | (146,059 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | | | | | | | | | | | | $ | (1,648,448 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TBA Sale Commitments Outstanding at December 31, 2017 | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
FHLMC, 5.50% | | $ | 5,100,000 | | | | 01/01/2048 | | | $ | (5,576,081 | ) | | $ | (16,284 | ) |
FNMA, 2.50% | | | 40,510,000 | | | | 01/01/2033 | | | | (40,446,703 | ) | | | (16,097 | ) |
FNMA, 2.50% | | | 60,370,000 | | | | 01/01/2048 | | | | (58,259,555 | ) | | | 64,005 | |
FNMA, 3.00% | | | 46,884,000 | | | | 01/01/2048 | | | | (46,884,000 | ) | | | (192,156 | ) |
FNMA, 3.50% | | | 6,600,000 | | | | 01/01/2033 | | | | (6,812,302 | ) | | | (1,669 | ) |
FNMA, 4.00% | | | 9,400,000 | | | | 01/01/2033 | | | | (9,667,120 | ) | | | 1,661 | |
FNMA, 4.50% | | | 29,150,000 | | | | 01/01/2048 | | | | (31,012,866 | ) | | | 69,689 | |
FNMA, 5.50% | | | 13,400,000 | | | | 01/01/2048 | | | | (14,682,873 | ) | | | 29,908 | |
FNMA, 6.00% | | | 3,300,000 | | | | 01/01/2048 | | | | (3,690,715 | ) | | | 7,348 | |
GNMA, 3.00% | | | 41,225,000 | | | | 01/01/2048 | | | | (41,598,602 | ) | | | 49,921 | |
GNMA, 3.50% | | | 33,000,000 | | | | 01/01/2048 | | | | (34,113,750 | ) | | | (123,750 | ) |
| | | | | | | | | | | | | | | | |
Total (proceeds receivable $292,617,143) | | | | | | | | | | $ | (292,744,567 | ) | | $ | (127,424 | ) |
| | | | | | | | | | | | | | | | |
At December 31, 2017, the aggregate market value of TBA Sale Commitments represents (12.2)% 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)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2017 | |
| | | Counter-
party | | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Reference Entity | | | | | | | | | |
Credit default swaps on indices: | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ABX.HE.AAA.07 | | | GSC | | | USD | | | 1,513,769 | | | | (0.09 | %) | | | 08/25/37 | | | | Monthly | | | $ | 328,804 | | | $ | — | | | $ | 71,882 | | | $ | (256,922 | ) |
ABX.HE.AAA.07 | | | CSI | | | USD | | | 3,679,674 | | | | (0.09 | %) | | | 08/25/37 | | | | Monthly | | | | 919,000 | | | | — | | | | 174,729 | | | | (744,271 | ) |
ABX.HE.PENAAA.06 | | | MSC | | | USD | | | 888,078 | | | | (0.11 | %) | | | 05/25/46 | | | | Monthly | | | | 99,130 | | | | — | | | | 56,598 | | | | (42,532 | ) |
ABX.HE.PENAAA.06 | | | JPM | | | USD | | | 2,027,413 | | | | (0.11 | %) | | | 05/25/46 | | | | Monthly | | | | 225,769 | | | | — | | | | 129,203 | | | | (96,566 | ) |
ABX.HE.PENAAA.06 | | | GSC | | | USD | | | 832,185 | | | | (0.11 | %) | | | 05/25/46 | | | | Monthly | | | | 208,046 | | | | — | | | | 53,036 | | | | (155,010 | ) |
CMBX.NA.A.7 | | | JPM | | | USD | | | 1,880,000 | | | | (2.00 | %) | | | 01/17/47 | | | | Monthly | | | | 70,868 | | | | — | | | | 61,611 | | | | (9,257 | ) |
CMBX.NA.A.9 | | | MSC | | | USD | | | 3,155,000 | | | | (2.00 | %) | | | 09/17/58 | | | | Monthly | | | | 109,025 | | | | — | | | | 112,022 | | | | 2,997 | |
CMBX.NA.A.9 | | | MSC | | | USD | | | 1,405,000 | | | | (2.00 | %) | | | 09/17/58 | | | | Monthly | | | | 61,251 | | | | — | | | | 50,143 | | | | (11,108 | ) |
CMBX.NA.A.9 | | | DEUT | | | USD | | | 955,000 | | | | (2.00 | %) | | | 09/17/58 | | | | Monthly | | | | 47,563 | | | | — | | | | 34,031 | | | | (13,532 | ) |
CMBX.NA.AA.8 | | | MSC | | | USD | | | 1,410,000 | | | | (1.50 | %) | | | 10/17/57 | | | | Monthly | | | | 55,716 | | | | — | | | | 20,197 | | | | (35,519 | ) |
CMBX.NA.AAA.8 | | | MSC | | | USD | | | 1,550,000 | | | | (0.50 | %) | | | 10/17/57 | | | | Monthly | | | | 13,520 | | | | — | | | | (6,859 | ) | | | (20,379 | ) |
CMBX.NA.AAA.9 | | | MSC | | | USD | | | 1,555,000 | | | | (0.50 | %) | | | 09/17/58 | | | | Monthly | | | | 22,171 | | | | — | | | | (2,964 | ) | | | (25,135 | ) |
CMBX.NA.AS.7 | | | CSI | | | USD | | | 600,000 | | | | (1.00 | %) | | | 01/17/47 | | | | Monthly | | | | 10,642 | | | | — | | | | (4,317 | ) | | | (14,959 | ) |
CMBX.NA.AS.8 | | | DEUT | | | USD | | | 1,115,000 | | | | (1.00 | %) | | | 10/17/57 | | | | Monthly | | | | 80,127 | | | | — | | | | (8,872 | ) | | | (88,999 | ) |
CMBX.NA.BBB.10 | | | MSC | | | USD | | | 1,000,000 | | | | (3.00 | %) | | | 11/17/59 | | | | Monthly | | | | 64,476 | | | | — | | | | 100,492 | | | | 36,016 | |
CMBX.NA.BBB.10 | | | MSC | | | USD | | | 1,725,000 | | | | (3.00 | %) | | | 11/17/59 | | | | Monthly | | | | 132,871 | | | | — | | | | 173,350 | | | | 40,479 | |
CMBX.NA.BBB.10 | | | MSC | | | USD | | | 670,000 | | | | (3.00 | %) | | | 11/17/59 | | | | Monthly | | | | 64,928 | | | | — | | | | 67,330 | | | | 2,402 | |
CMBX.NA.BBB.10 | | | MSC | | | USD | | | 8,785,000 | | | | (3.00 | %) | | | 11/17/59 | | | | Monthly | | | | 904,107 | | | | — | | | | 882,827 | | | | (21,280 | ) |
CMBX.NA.BBB.10 | | | MSC | | | USD | | | 5,715,000 | | | | (3.00 | %) | | | 11/17/59 | | | | Monthly | | | | 640,073 | | | | — | | | | 574,315 | | | | (65,758 | ) |
CMBX.NA.BBB.7 | | | CSI | | | USD | | | 1,985,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 187,525 | | | | — | | | | 230,661 | | | | 43,136 | |
CMBX.NA.BBB.7 | | | CSI | | | USD | | | 1,700,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 160,601 | | | | — | | | | 197,544 | | | | 36,943 | |
CMBX.NA.BBB.7 | | | MSC | | | USD | | | 2,075,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 207,562 | | | | — | | | | 241,119 | | | | 33,557 | |
CMBX.NA.BBB.7 | | | MSC | | | USD | | | 1,965,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 143,103 | | | | — | | | | 228,665 | | | | 85,562 | |
CMBX.NA.BBB.7 | | | MSC | | | USD | | | 2,900,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 273,991 | | | | — | | | | 336,986 | | | | 62,995 | |
CMBX.NA.BBB.7 | | | CSI | | | USD | | | 875,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 76,343 | | | | — | | | | 101,677 | | | | 25,334 | |
CMBX.NA.BBB.7 | | | GSC | | | USD | | | 25,000 | | | | (3.00 | %) | | | 01/17/47 | | | | Monthly | | | | 2,268 | | | | — | | | | 2,905 | | | | 637 | |
CMBX.NA.BBB.9 | | | MSC | | | USD | | | 950,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 102,117 | | | | — | | | | 104,997 | | | | 2,880 | |
CMBX.NA.BBB.9 | | | MSC | | | USD | | | 435,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 49,802 | | | | — | | | | 48,005 | | | | (1,797 | ) |
CMBX.NA.BBB.9 | | | GSC | | | USD | | | 955,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 107,956 | | | | — | | | | 105,550 | | | | (2,406 | ) |
CMBX.NA.BBB.9 | | | MSC | | | USD | | | 1,540,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 181,052 | | | | — | | | | 169,949 | | | | (11,103 | ) |
CMBX.NA.BBB.9 | | | DEUT | | | USD | | | 2,730,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 329,749 | | | | — | | | | 301,730 | | | | (28,019 | ) |
CMBX.NA.BBB.9 | | | JPM | | | USD | | | 2,950,000 | | | | (3.00 | %) | | | 09/17/58 | | | | Monthly | | | | 362,572 | | | | — | | | | 326,044 | | | | (36,528 | ) |
CMBX.NA.BBB.9 | | | MSC | | | USD | | | 5,785,000 | | | | (0.50 | %) | | | 09/17/58 | | | | Monthly | | | | 71,599 | | | | — | | | | (11,027 | ) | | | (82,626 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 6,314,327 | | | $ | — | | | $ | 4,923,559 | | | $ | (1,390,768 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ABX.HE.AAA.07 | | | MSC | | | USD | | | 1,516,022 | | | | 0.09 | % | | | 08/25/37 | | | | Monthly | | | $ | 14,837 | | | $ | — | | | $ | (71,868 | ) | | $ | (86,705 | ) |
ABX.HE.AAA.07 | | | MSCC | | | USD | | | 3,679,672 | | | | 0.09 | % | | | 08/25/37 | | | | Monthly | | | | 36,067 | | | | — | | | | (174,435 | ) | | | (210,502 | ) |
ABX.HE.PENAAA.06 | | | BCLY | | | USD | | | 3,747,681 | | | | 0.11 | % | | | 05/25/46 | | | | Monthly | | | | — | | | | (101,115 | ) | | | (238,846 | ) | | | (137,731 | ) |
CMBX.NA.A.6 | | | GSC | | | USD | | | 1,915,000 | | | | 2.00 | % | | | 05/11/63 | | | | Monthly | | | | 24,998 | | | | — | | | | (84,424 | ) | | | (109,422 | ) |
CMBX.NA.BB.6 | | | MSC | | | USD | | | 1,065,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (192,850 | ) | | | (252,176 | ) | | | (59,326 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 1,825,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (364,625 | ) | | | (432,639 | ) | | | (68,014 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 965,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (141,075 | ) | | | (228,765 | ) | | | (87,690 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 3,270,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (676,929 | ) | | | (775,195 | ) | | | (98,266 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 2,671,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (483,635 | ) | | | (632,452 | ) | | | (148,817 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 2,795,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (506,088 | ) | | | (661,814 | ) | | | (155,726 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 2,795,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (506,088 | ) | | | (661,814 | ) | | | (155,726 | ) |
CMBX.NA.BB.6 | | | CSI | | | USD | | | 2,800,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (506,993 | ) | | | (662,998 | ) | | | (156,005 | ) |
CMBX.NA.BB.6 | | | GSC | | | USD | | | 2,855,000 | | | | 5.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (307,371 | ) | | | (676,021 | ) | | | (368,650 | ) |
CMBX.NA.BB.8 | | | DEUT | | | USD | | | 1,455,000 | | | | 5.00 | % | | | 10/17/57 | | | | Monthly | | | | — | | | | (359,844 | ) | | | (351,135 | ) | | | 8,709 | |
CMBX.NA.BB.8 | | | MSC | | | USD | | | 5,083,000 | | | | 5.00 | % | | | 10/17/57 | | | | Monthly | | | | — | | | | (1,397,865 | ) | | | (1,225,267 | ) | | | 172,598 | |
CMBX.NA.BB.8 | | | CSI | | | USD | | | 2,507,000 | | | | 5.00 | % | | | 10/17/57 | | | | Monthly | | | | — | | | | (689,399 | ) | | | (604,317 | ) | | | 85,082 | |
CMBX.NA.BB.8 | | | GSC | | | USD | | | 3,445,000 | | | | 5.00 | % | | | 10/17/57 | | | | Monthly | | | | — | | | | (848,237 | ) | | | (831,381 | ) | | | 16,856 | |
CMBX.NA.BB.8 | | | GSC | | | USD | | | 240,000 | | | | 5.00 | % | | | 10/17/57 | | | | Monthly | | | | — | | | | (27,369 | ) | | | (57,853 | ) | | | (30,484 | ) |
CMBX.NA.BBB.6 | | | MSC | | | USD | | | 465,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (40,320 | ) | | | (67,767 | ) | | | (27,447 | ) |
CMBX.NA.BBB.6 | | | MSC | | | USD | | | 2,265,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (372,256 | ) | | | (330,469 | ) | | | 41,787 | |
CMBX.NA.BBB.6 | | | GSC | | | USD | | | 1,255,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (211,928 | ) | | | (183,124 | ) | | | 28,804 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2017 - (continued) | |
| | | Counter-
party | | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Reference Entity | | | | | | | | | |
Credit default swaps on indices: - (continued) | |
Sell protection: - (continued) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.BBB.6 | | | MSC | | | | USD | | | | 1,000,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | $ | — | | | $ | (170,281 | ) | | $ | (145,915 | ) | | $ | 24,366 | |
CMBX.NA.BBB.6 | | | DEUT | | | | USD | | | | 1,005,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (170,889 | ) | | | (146,632 | ) | | | 24,257 | |
CMBX.NA.BBB.6 | | | MSC | | | | USD | | | | 1,130,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (188,819 | ) | | | (164,870 | ) | | | 23,949 | |
CMBX.NA.BBB.6 | | | MSC | | | | USD | | | | 4,245,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (633,902 | ) | | | (618,648 | ) | | | 15,254 | |
CMBX.NA.BBB.6 | | | MSC | | | | USD | | | | 610,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (103,924 | ) | | | (89,000 | ) | | | 14,924 | |
CMBX.NA.BBB.6 | | | DEUT | | | | USD | | | | 2,180,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (328,982 | ) | | | (317,703 | ) | | | 11,279 | |
CMBX.NA.BBB.6 | | | CSI | | | | USD | | | | 2,060,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (300,826 | ) | | | (300,216 | ) | | | 610 | |
CMBX.NA.BBB.6 | | | CSI | | | | USD | | | | 920,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (129,598 | ) | | | (134,230 | ) | | | (4,632 | ) |
CMBX.NA.BBB.6 | | | GSC | | | | USD | | | | 2,725,000 | | | | 3.00 | % | | | 05/11/63 | | | | Monthly | | | | — | | | | (305,491 | ) | | | (397,357 | ) | | | (91,866 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | $ | 75,902 | | | $ | (10,066,699 | ) | | $ | (11,519,331 | ) | | $ | (1,528,534 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total traded indices | | | | | | | | | | | | | | | | | | | $ | 6,390,229 | | | $ | (10,066,699 | ) | | $ | (6,595,772 | ) | | $ | (2,919,302 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swaps on single-name issues: | |
Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
South Africa (Republic of) | | | MSC | | | | USD | | | | 3,120,000 | | | | 1.00 | % | | | 12/20/22 | | | | Quarterly | | | $ | — | | | $ | (104,200 | ) | | $ | (80,641 | ) | | $ | 23,559 | |
United Mexican States | | | MSC | | | | USD | | | | 3,005,000 | | | | 1.00 | % | | | 12/20/22 | | | | Quarterly | | | | 1,390 | | | | — | | | | (8,435 | ) | | | (9,825 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,390 | | | $ | (104,200 | ) | �� | $ | (89,076 | ) | | $ | 13,734 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total single-name issues | | | | | | | | | | | | | | | | | | | | | | | $ | 1,390 | | | $ | (104,200 | ) | | $ | (89,076 | ) | | $ | 13,734 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC contracts | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 6,391,619 | | | $ | (10,170,899 | ) | | $ | (6,684,848 | ) | | $ | (2,905,568 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts Outstanding at December 31, 2017 | |
Reference Entity | | Notional
Amount(a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Cost Basis | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX.EM.28 | | | USD | | | | 15,486,050 | | | | (1.00 | %) | | | 12/20/22 | | | | Quarterly | | | $ | 531,435 | | | $ | 129,955 | | | $ | (401,480 | ) |
CDX.NA.HY.29 | | | USD | | | | 13,720,000 | | | | (5.00 | %) | | | 12/20/22 | | | | Quarterly | | | | 1,021,652 | | | | 1,134,882 | | | | 113,230 | |
CDX.NA.HY.29 | | | USD | | | | 24,390,000 | | | | (5.00 | %) | | | 12/20/22 | | | | Quarterly | | | | (1,951,709 | ) | | | (2,017,477 | ) | | | (65,768 | ) |
CDX.NA.IG.29 | | | USD | | | | 44,580,000 | | | | (1.00 | %) | | | 12/20/22 | | | | Quarterly | | | | 963,728 | | | | 1,068,602 | | | | 104,874 | |
ITRAXX.EUR.28 | | | EUR | | | | 14,775,000 | | | | (1.00 | %) | | | 12/20/22 | | | | Quarterly | | | | 437,380 | | | | 483,498 | | | | 46,118 | |
ITRAXX.XOVER.28 | | | EUR | | | | 2,365,000 | | | | (5.00 | %) | | | 12/20/22 | | | | Quarterly | | | | 310,422 | | | | 344,951 | | | | 34,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 1,312,908 | | | $ | 1,144,411 | | | $ | (168,497 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 1,312,908 | | | $ | 1,144,411 | | | $ | (168,497 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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 December 31, 2017 | |
Counterparty | | Payments
made
by Fund | | Payments
received
by Fund | | Notional
Amount | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
BOA | | 1.82% Fixed | | CPURNSA | | | USD | | | | 14,525,000 | | | | 09/22/25 | | | | At maturity | | | $ | — | | | $ | — | | | $ | 305,827 | | | $ | 305,827 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Interest Rate Swap Contracts Outstanding at December 31, 2017 | |
Payments made by Fund | | Payments received
by Fund | | | Notional
Amount | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
12M Federal Funds Rate | | | 1.62% Fixed | | | | USD | | | | 13,700,000 | | | | 11/14/26 | | | | Annual | | | $ | — | | | $ | — | | | $ | 479,038 | | | $ | 479,038 | |
3M USD LIBOR | | | 2.00% Fixed | | | | USD | | | | 17,550,000 | | | | 03/21/23 | | | | Semi-Annual | | | | 89,961 | | | | — | | | | 227,602 | | | | 137,641 | |
3M USD LIBOR | | | 2.27% Fixed | | | | USD | | | | 20,325,000 | | | | 07/14/27 | | | | Semi-Annual | | | | — | | | | — | | | | 31,004 | | | | 31,004 | |
3M USD LIBOR | | | 2.25% Fixed | | | | USD | | | | 16,275,000 | | | | 03/21/28 | | | | Semi-Annual | | | | 219,373 | | | | — | | | | 246,280 | | | | 26,907 | |
3M USD LIBOR | | | 2.54% Fixed | | | | USD | | | | 3,500,000 | | | | 11/15/43 | | | | Semi-Annual | | | | 14,893 | | | | — | | | | (2,932 | ) | | | (17,825 | ) |
3M USD LIBOR | | | 2.68% Fixed | | | | USD | | | | 5,375,000 | | | | 11/15/43 | | | | Semi-Annual | | | | — | | | | — | | | | (154,021 | ) | | | (154,021 | ) |
3M USD LIBOR | | | 2.55% Fixed | | | | USD | | | | 1,750,000 | | | | 08/03/47 | | | | Semi-Annual | | | | — | | | | — | | | | (19,688 | ) | | | (19,688 | ) |
3M USD LIBOR | | | 2.75% Fixed | | | | USD | | | | 22,395,000 | | | | 12/20/47 | | | | Semi-Annual | | | | — | | | | (505,130 | ) | | | (1,059,023 | ) | | | (553,893 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 324,227 | | | $ | (505,130 | ) | | $ | (251,740 | ) | | $ | (70,837 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2017 | |
Amount and Description
of Currency to be
Purchased | | | Amount and Description
of Currency to be
Sold | | | Counterparty | | Settlement
Date | | Appreciation | | | Depreciation | |
| | 6,939,000 | | | | EGP | | | | 374,070 | | | | USD | | | CBK | | 03/06/18 | | $ | 9,287 | | | $ | — | |
| | 3,154,000 | | | | EGP | | | | 166,438 | | | | USD | | | GSC | | 03/06/18 | | | 7,810 | | | | — | |
| | 2,523,000 | | | | EGP | | | | 132,789 | | | | USD | | | GSC | | 03/06/18 | | | 6,598 | | | | — | |
| | 18,730,000 | | | | EGP | | | | 954,152 | | | | USD | | | CBK | | 03/29/18 | | | 75,822 | | | | — | |
| | 190,227 | | | | USD | | | | 250,000 | | | | AUD | | | NAB | | 01/16/18 | | | — | | | | (4,836 | ) |
| | 484,559 | | | | USD | | | | 620,000 | | | | AUD | | | DEUT | | 01/24/18 | | | 796 | | | | — | |
| | 159,779 | | | | USD | | | | 210,000 | | | | AUD | | | NAB | | 01/30/18 | | | — | | | | (4,078 | ) |
| | 248,057 | | | | USD | | | | 315,000 | | | | CAD | | | GSC | | 01/03/18 | | | — | | | | (2,559 | ) |
| | 244,136 | | | | USD | | | | 315,000 | | | | CAD | | | DEUT | | 01/05/18 | | | — | | | | (6,494 | ) |
| | 1,108,800 | | | | USD | | | | 1,384,000 | | | | CAD | | | JPM | | 01/25/18 | | | 7,317 | | | | — | |
| | 328,160 | | | | USD | | | | 410,000 | | | | CAD | | | BOA | | 02/01/18 | | | 1,830 | | | | — | |
| | 300,720 | | | | USD | | | | 375,000 | | | | CAD | | | SSG | | 03/26/18 | | | 2,055 | | | | — | |
| | 649,305 | | | | USD | | | | 12,616,000 | | | | EGP | | | GSC | | 03/06/18 | | | — | | | | (47,688 | ) |
| | 958,547 | | | | USD | | | | 18,730,000 | | | | EGP | | | GSC | | 03/29/18 | | | — | | | | (71,427 | ) |
| | 295,783 | | | | USD | | | | 250,000 | | | | EUR | | | CBK | | 01/10/18 | | | — | | | | (4,362 | ) |
| | 2,548,881 | | | | USD | | | | 2,140,000 | | | | EUR | | | JPM | | 01/16/18 | | | — | | | | (21,355 | ) |
| | 1,681,105 | | | | USD | | | | 1,430,000 | | | | EUR | | | CBK | | 01/19/18 | | | — | | | | (36,722 | ) |
| | 416,893 | | | | USD | | | | 350,000 | | | | EUR | | | DEUT | | 01/23/18 | | | — | | | | (3,663 | ) |
| | 615,613 | | | | USD | | | | 525,000 | | | | EUR | | | NAB | | 01/23/18 | | | — | | | | (15,220 | ) |
| | 165,237 | | | | USD | | | | 140,000 | | | | EUR | | | SSG | | 01/29/18 | | | — | | | | (3,050 | ) |
| | 626,474 | | | | USD | | | | 525,000 | | | | EUR | | | SSG | | 01/29/18 | | | — | | | | (4,603 | ) |
| | 437,706 | | | | USD | | | | 370,000 | | | | EUR | | | SSG | | 01/29/18 | | | — | | | | (7,053 | ) |
| | 850,902 | | | | USD | | | | 720,000 | | | | EUR | | | WEST | | 01/29/18 | | | — | | | | (14,575 | ) |
| | 1,864,651 | | | | USD | | | | 1,585,000 | | | | EUR | | | MSC | | 01/31/18 | | | — | | | | (40,724 | ) |
| | 5,016,881 | | | | USD | | | | 4,217,000 | | | | EUR | | | CBK | | 01/31/18 | | | — | | | | (52,499 | ) |
| | 4,998,516 | | | | USD | | | | 4,217,000 | | | | EUR | | | BOA | | 01/31/18 | | | — | | | | (70,864 | ) |
| | 2,853,354 | | | | USD | | | | 2,445,000 | | | | EUR | | | JPM | | 02/01/18 | | | — | | | | (86,010 | ) |
| | 2,163,205 | | | | USD | | | | 1,830,000 | | | | EUR | | | SSG | | 02/16/18 | | | — | | | | (38,583 | ) |
| | 47,435 | | | | USD | | | | 40,000 | | | | EUR | | | HSBC | | 02/20/18 | | | — | | | | (702 | ) |
| | 941,652 | | | | USD | | | | 795,000 | | | | EUR | | | JPM | | 02/20/18 | | | — | | | | (15,068 | ) |
| | 973,964 | | | | USD | | | | 830,000 | | | | EUR | | | CSFB | | 02/23/18 | | | — | | | | (25,038 | ) |
| | 2,112,110 | | | | USD | | | | 1,773,000 | | | | EUR | | | HSBC | | 03/21/18 | | | — | | | | (25,731 | ) |
| | 47,518 | | | | USD | | | | 40,000 | | | | EUR | | | HSBC | | 03/22/18 | | | — | | | | (717 | ) |
| | 1,153,025 | | | | USD | | | | 980,000 | | | | EUR | | | SCB | | 03/22/18 | | | — | | | | (28,716 | ) |
| | 167,616 | | | | USD | | | | 125,000 | | | | GBP | | | SSG | | 01/16/18 | | | — | | | | (1,246 | ) |
| | 1,222,956 | | | | USD | | | | 910,000 | | | | GBP | | | JPM | | 01/16/18 | | | — | | | | (6,354 | ) |
| | 701,406 | | | | USD | | | | 520,000 | | | | GBP | | | SSG | | 01/19/18 | | | — | | | | (1,135 | ) |
| | 2,986,884 | | | | USD | | | | 335,000,000 | | | | JPY | | | CBK | | 01/16/18 | | | 11,327 | | | | — | |
| | 3,131,277 | | | | USD | | | | 350,000,000 | | | | JPY | | | GSC | | 01/22/18 | | | 21,545 | | | | — | |
| | 2,919,160 | | | | USD | | | | 330,000,000 | | | | JPY | | | BOA | | 01/22/18 | | | — | | | | (12,873 | ) |
| | 347,794 | | | | USD | | | | 39,400,000 | | | | JPY | | | JPM | | 01/29/18 | | | — | | | | (2,396 | ) |
| | 2,950,607 | | | | USD | | | | 330,000,000 | | | | JPY | | | ANZ | | 02/05/18 | | | 16,727 | | | | — | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2017 - (continued) | |
Amount and Description
of Currency to be
Purchased | | | Amount and Description
of Currency to be
Sold | | | Counterparty | | Settlement
Date | | Appreciation | | | Depreciation | |
| | 4,647,567 | | | | USD | | | | 522,400,000 | | | | JPY | | | JPM | | 03/05/18 | | $ | — | | | $ | (3,590 | ) |
| | 2,620,498 | | | | USD | | | | 295,600,000 | | | | JPY | | | BCLY | | 03/19/18 | | | — | | | | (13,700 | ) |
| | 1,963,475 | | | | USD | | | | 2,745,000 | | | | NZD | | | SSG | | 01/17/18 | | | 18,533 | | | | — | |
| | 561,453 | | | | USD | | | | 4,500,000 | | | | SEK | | | MSC | | 01/17/18 | | | 12,290 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | $ | 191,937 | | | $ | (673,631 | ) |
| | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
ANZ | | Australia and New Zealand Banking Group |
BCLY | | Barclays |
BOA | | Banc of America Securities LLC |
CBK | | Citibank NA |
CSFB | | Credit Suisse First Boston Corp. |
CSI | | Credit Suisse International |
DEUT | | Deutsche Bank Securities, Inc. |
GSC | | Goldman Sachs & Co. |
HSBC | | HSBC Bank USA |
JPM | | JP Morgan Chase & Co. |
MSC | | Morgan Stanley |
NAB | | National Australia Bank Limited |
SCB | | Standard Chartered Bank |
SSG | | State Street Global Markets LLC |
WEST | | Westpac International |
|
| Currency Abbreviations: |
ARS | | Argentine Peso |
AUD | | Australian Dollar |
CAD | | Canadian Dollar |
EGP | | Egyptian Pound |
EUR | | Euro |
GBP | | British Pound |
JPY | | Japanese Yen |
NZD | | New Zealand Dollar |
SEK | | Swedish Krona |
USD | | United States Dollar |
| | |
| 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 iTraxx - Europe |
ITRAXX.XOV | | Markit iTraxx Index - Europe Crossover |
|
| Other Abbreviations: |
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 |
MTA | | Monthly Treasury Average |
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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | 867,906,424 | | | $ | — | | | $ | 867,906,424 | | | $ | — | |
Corporate Bonds | | | 607,975,087 | | | | — | | | | 607,975,087 | | | | — | |
Foreign Government Obligations | | | 47,757,271 | | | | — | | | | 47,757,271 | | | | — | |
Municipal Bonds | | | 40,517,280 | | | | — | | | | 40,517,280 | | | | — | |
Senior Floating Rate Interests | | | 60,126,975 | | | | — | | | | 60,126,975 | | | | — | |
U.S. Government Agencies | | | 1,036,947,783 | | | | — | | | | 1,036,947,783 | | | | — | |
U.S. Government Securities | | | 150,492,247 | | | | — | | | | 150,492,247 | | | | — | |
Common Stocks | | | | | | | | | | | | | | | | |
Energy | | | 30,570 | | | | — | | | | 30,570 | | | | — | |
Utilities | | | 1 | | | | — | | | | — | | | | 1 | |
Preferred Stocks | | | 2,543,377 | | | | 2,543,377 | | | | — | | | | — | |
Short-Term Investments | | | 88,811,200 | | | | 27,606,119 | | | | 61,205,081 | | | | — | |
Purchased Swaptions | | | 4,184,607 | | | | — | | | | 4,184,607 | | | | — | |
Foreign Currency Contracts(2) | | | 191,937 | | | | — | | | | 191,937 | | | | — | |
Futures Contracts(2) | | | 1,312,227 | | | | 1,312,227 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 1,163,723 | | | | — | | | | 1,163,723 | | | | — | |
Swaps - Interest Rate(2) | | | 980,417 | | | | — | | | | 980,417 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,910,941,126 | | | $ | 31,461,723 | | | $ | 2,879,479,402 | | | $ | 1 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Foreign Currency Contracts(2) | | $ | (673,631 | ) | | $ | — | | | $ | (673,631 | ) | | $ | — | |
Futures Contracts(2) | | | (2,960,675 | ) | | | (2,960,675 | ) | | | — | | | | — | |
Swaps - Credit Default(2) | | | (4,237,788 | ) | | | — | | | | (4,237,788 | ) | | | — | |
Swaps - Interest Rate(2) | | | (745,427 | ) | | | — | | | | (745,427 | ) | | | — | |
TBA Sale Commitments | | | (292,744,567 | ) | | | — | | | | (292,744,567 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (301,362,088 | ) | | $ | (2,960,675 | ) | | $ | (298,401,413 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between Level 1 and Level 2, and investments valued at $145,572 were transferred from Level 3 to Level 2 due to the expiration of trading restrictions. |
| (2) | Derivative instruments (excluding purchased and written options, if applicable) are valued at the unrealized appreciation/(depreciation) on the investments. |
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2017 is not presented.
| 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
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 28.6% | |
| | | | Asset-Backed - Automobile - 12.8% | |
| | | | Ally Auto Receivables Trust | |
| | $ | | | | 1,743,661 | | | 1.38%, 10/15/2019 | | $ | 1,741,385 | |
| | | | | 2,850,000 | | | 1.53%, 03/16/2020 | | | 2,845,860 | |
| | | | American Credit Acceptance Receivables Trust | |
| | | | | 801,908 | | | 1.72%, 06/15/2020(1) | | | 801,119 | |
| | | | | 1,454,523 | | | 1.84%, 07/13/2020(1) | | | 1,453,285 | |
| | | | AmeriCredit Automobile Receivables Trust | |
| | | | | 25,851 | | | 1.26%, 11/08/2019 | | | 25,848 | |
| | | | | 145,930 | | | 1.42%, 10/08/2019 | | | 145,891 | |
| | | | | 505,000 | | | 1.46%, 05/10/2021 | | | 502,679 | |
| | | | | 345,934 | | | 1.51%, 05/18/2020 | | | 345,377 | |
| | | | | 732,292 | | | 1.65%, 09/18/2020 | | | 731,173 | |
| | | | | 770,000 | | | 1.69%, 12/18/2020 | | | 768,929 | |
| | | | | 635,000 | | | ARI Fleet Lease Trust
1.91%, 04/15/2026(1) | | | 633,585 | |
| | | | | 884,362 | | | BMW Vehicle Lease Trust
1.64%, 07/22/2019 | | | 883,537 | |
| | | | | 320,000 | | | Canadian Pacer Auto Receivables Trust
2.05%, 03/19/2021(1) | | | 318,456 | |
| | | | Capital Auto Receivables Asset Trust | |
| | | | | 206,907 | | | 1.62%, 03/20/2019 | | | 206,889 | |
| | | | | 1,240,000 | | | 1.86%, 10/21/2019 | | | 1,239,941 | |
| | | | | 335,000 | | | 2.02%, 08/20/2021(1) | | | 334,093 | |
| | | | CarMax Auto Owner Trust | |
| | | | | 167,709 | | | 1.24%, 06/17/2019 | | | 167,654 | |
| | | | | 1,084,992 | | | 1.32%, 07/15/2019 | | | 1,084,225 | |
| | | | | 2,000,000 | | | 1.40%, 08/15/2021 | | | 1,979,838 | |
| | | | | 915,460 | | | 1.54%, 02/18/2020 | | | 914,252 | |
| | | | | 2,887,100 | | | 1.56%, 11/16/2020 | | | 2,878,631 | |
| | | | Chesapeake Funding LLC | |
| | | | | 1,255,000 | | | 1.91%, 08/15/2029(1) | | | 1,248,632 | |
| | | | | 700,000 | | | 1 mo. USD LIBOR + 1.000%, 1.93%, 05/15/2029(1)(2) | | | 701,509 | |
| | | | | 1,520,000 | | | 2.12%, 11/15/2029(1) | | | 1,515,820 | |
| | | | | 980,497 | | | 1 mo. USD LIBOR + 1.150%, 2.63%, 03/15/2028(1)(2) | | | 984,870 | |
| | | | Chrysler Capital Auto Receivables Trust | |
| | | | | 286,362 | | | 1.36%, 01/15/2020(1) | | | 286,030 | |
| | | | | 1,759,766 | | | 1.76%, 12/16/2019(1) | | | 1,759,596 | |
| | | | | 199,386 | | | CPS Auto Receivables Trust
1.78%, 09/15/2020(1) | | | 199,071 | |
| | | | | 576,975 | | | CPS Auto Trust
1.87%, 03/15/2021(1) | | | 573,582 | |
| | | | | 267,376 | | | Drive Auto Receivables Trust
1.63%, 08/15/2019 | | | 267,280 | |
| | | | Enterprise Fleet Financing LLC | |
| | | | | 1,975,563 | | | 1.74%, 02/22/2022(1) | | | 1,971,643 | |
| | | | | 815,000 | | | 1.97%, 01/20/2023(1) | | | 813,365 | |
| | | | | 940,000 | | | 2.13%, 05/22/2023(1) | | | 938,332 | |
| | | | | 902,425 | | | Fifth Third Auto Trust
1.42%, 03/16/2020 | | | 900,657 | |
| | | | First Investors Auto Owner Trust | |
| | | | | 391,208 | | | 1.69%, 04/15/2021(1) | | | 390,277 | |
| | | | | 414,608 | | | 1.86%, 10/15/2021(1) | | | 414,082 | |
| | | | Flagship Credit Auto Trust | |
| | | | | 668,781 | | | 1.85%, 07/15/2021(1) | | | 667,161 | |
| | | | | 2,478,112 | | | 1.88%, 10/15/2021(1) | | | 2,463,712 | |
| | | | | 922,468 | | | Ford Credit Auto Lease Trust
1.56%, 11/15/2019 | | | 921,213 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 28.6% - (continued) | |
| | | | Asset-Backed - Automobile - 12.8% - (continued) | |
| | | | Ford Credit Auto Owner Trust | |
| | $ | | | | 1,125,123 | | | 1.04%, 09/15/2019 | | $ | 1,122,257 | |
| | | | | 1,000,000 | | | 2.12%, 07/15/2026(1) | | | 997,961 | |
| | | | | 1,500,000 | | | 2.26%, 11/15/2025(1) | | | 1,503,049 | |
| | | | GM Financial Automobile Leasing Trust | |
| | | | | 167,609 | | | 1.28%, 10/22/2018 | | | 167,543 | |
| | | | | 590,000 | | | 1.61%, 12/20/2019 | | | 588,037 | |
| | | | | 605,997 | | | 1.67%, 09/20/2019 | | | 605,230 | |
| | | | | 293,407 | | | 1.68%, 12/20/2018 | | | 293,351 | |
| | | | GM Financial Consumer Automobile | |
| | | | | 398,867 | | | 1.51%, 03/16/2020(1) | | | 398,263 | |
| | | | | 465,344 | | | 1 mo. USD LIBOR + 0.120%, 1.61%, 03/16/2020(1)(2) | | | 465,489 | |
| | | | | 1,000,000 | | | GM Financial Consumer Automobile Receivables Trust
1.71%, 09/16/2020(1) | | | 997,384 | |
| | | | | 883,687 | | | Harley-Davidson Motorcycle Trust
1.41%, 06/15/2020 | | | 882,251 | |
| | | | | 586,626 | | | Huntington Auto Trust
1.29%, 05/15/2019 | | | 586,246 | |
| | | | Hyundai Auto Lease Securitization Trust | |
| | | | | 810,000 | | | 1.52%, 10/15/2019(1) | | | 808,729 | |
| | | | | 3,040,000 | | | 1.88%, 08/17/2020(1) | | | 3,031,454 | |
| | | | | 1,608,245 | | | Hyundai Auto Receivables Trust
1.48%, 02/18/2020 | | | 1,605,714 | |
| | | | Mercedes-Benz Auto Lease Trust | |
| | | | | 417,684 | | | 1.15%, 01/15/2019 | | | 417,311 | |
| | | | | 2,633,294 | | | 1.53%, 08/15/2019 | | | 2,629,025 | |
| | | | | 1,205,000 | | | Mercedes-Benz Auto Receivables Trust
1.26%, 02/16/2021 | | | 1,196,813 | |
| | | | | 12,778 | | | Nissan Auto Lease Trust
1.22%, 08/15/2018 | | | 12,776 | |
| | | | | 262,954 | | | Nissan Auto Receivables Owner Trust
1.05%, 04/15/2019 | | | 262,849 | |
| | | | | 1,960,000 | | | OneMain Direct Auto Receivables Trust
2.31%, 12/14/2021(1) | | | 1,958,522 | |
| | | | Prestige Auto Receivables Trust | |
| | | | | 864,908 | | | 1.46%, 07/15/2020(1) | | | 862,888 | |
| | | | | 102,564 | | | 1.78%, 08/15/2019(1) | | | 102,564 | |
| | | | | 1,390,000 | | | 1.80%, 11/16/2020(1) | | | 1,388,889 | |
| | | | | 341,474 | | | Santander Drive Auto Receivables Trust
1.49%, 02/18/2020 | | | 341,136 | |
| | | | Securitized Term Auto Receivables Trust | |
| | | | | 593,017 | | | 1.51%, 04/25/2019(1) | | | 592,220 | |
| | | | | 640,000 | | | 1.78%, 01/27/2020(1) | | | 638,645 | |
| | | | | 1,500,000 | | | 2.21%, 06/25/2021(1) | | | 1,491,272 | |
| | | | | 438,674 | | | Toyota Auto Receivables Owner Trust
1.30%, 04/15/2020 | | | 437,026 | |
| | | | Westlake Automobile Receivables Trust | |
| | | | | 724,255 | | | 1.57%, 06/17/2019(1) | | | 723,971 | |
| | | | | 881,016 | | | 1.78%, 04/15/2020(1) | | | 880,419 | |
| | | | | 875,000 | | | 1.80%, 07/15/2020(1) | | | 873,605 | |
| | | | Wheels SPV LLC | |
| | | | | 284,979 | | | 1.59%, 05/20/2025(1) | | | 284,219 | |
| | | | | 540,000 | | | 1.88%, 04/20/2026(1) | | | 537,792 | |
| | | | | 859,323 | | | World Omni Automobile Lease Securitization Trust
1.68%, 12/16/2019 | | | 857,332 | |
| | | | | | | | | | | | |
| | | | 67,561,711 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 28.6% - (continued) | |
| | | | Asset-Backed - Credit Card - 7.5% | |
| | $ | | | | 2,995,000 | | | BA Credit Card Trust
1 mo. USD LIBOR + 0.380%, 1.86%, 06/15/2021(2) | | $ | 3,003,365 | |
| | | | | 915,000 | | | Barclays Dryrock Issuance Trust
1 mo. USD LIBOR + 0.330%, 1.81%, 03/15/2023(2) | | | 917,557 | |
| | | | Cabela’s Credit Card Master Note Trust | |
| | | | | 1,785,000 | | | 1.78%, 06/15/2022 | | | 1,774,592 | |
| | | | | 3,000,000 | | | 1 mo. USD LIBOR + 0.450%, 1.93%, 07/15/2022(2) | | | 3,010,243 | |
| | | | | 2,500,000 | | | Capital One Multi-Asset Execution Trust
1 mo. USD LIBOR + 0.450%, 1.93%, 02/15/2022(2) | | | 2,511,840 | |
| | | | CARDS Trust | |
| | | | | 1,815,000 | | | 1 mo. USD LIBOR + 0.370%, 1.85%, 04/18/2022(1)(2) | | | 1,819,205 | |
| | | | | 2,480,000 | | | 1 mo. USD LIBOR + 0.700%, 2.18%, 07/15/2021(1)(2) | | | 2,487,253 | |
| | | | Chase Issuance Trust | |
| | | | | 2,250,000 | | | 1.27%, 07/15/2021 | | | 2,223,526 | |
| | | | | 6,000,000 | | | 1 mo. USD LIBOR + 0.420%, 1.90%, 11/16/2020(2) | | | 6,016,288 | |
| | | | | 4,750,000 | | | Evergreen Credit Card Trust
1 mo. USD LIBOR + 0.720%, 2.20%, 04/15/2020(1)(2) | | | 4,758,846 | |
| | | | | 3,650,000 | | | Master Credit Card Trust
1 mo. USD LIBOR + 0.750%, 2.26%, 09/23/2019(1)(2) | | | 3,655,709 | |
| | | | | 2,000,000 | | | Penarth Master Issuer plc
1 mo. USD LIBOR + 0.650%, 2.14%, 03/18/2020(1)(2) | | | 2,001,824 | |
| | | | | 2,855,000 | | | Synchrony Credit Card Master Note Trust
1.60%, 04/15/2021 | | | 2,853,181 | |
| | | | | 2,380,000 | | | Trillium Credit Card Trust
1 mo. USD LIBOR + 0.720%, 2.27%, 05/26/2021(1)(2) | | | 2,385,991 | |
| | | | | | | | | | | | |
| | | | 39,419,420 | |
| | | | | | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 5.8% | |
| | | | CNH Equipment Trust | |
| | | | | 763,039 | | | 1.26%, 02/18/2020 | | | 761,580 | |
| | | | | 395,164 | | | 1.31%, 10/15/2019 | | | 394,847 | |
| | | | | 2,006,978 | | | 1.64%, 07/15/2020 | | | 2,004,059 | |
| | | | | 1,625,000 | | | 1.84%, 03/15/2021 | | | 1,622,552 | |
| | | | | 860,000 | | | DLL Securitization Trust
1.89%, 07/15/2020(1) | | | 858,453 | |
| | | | Ford Credit Floorplan Master Owner Trust | |
| | | | | 1,745,000 | | | 1 mo. USD LIBOR + 0.530%, 2.01%, 07/15/2020(2) | | | 1,748,094 | |
| | | | | 1,380,000 | | | 1 mo. USD LIBOR + 0.600%, 2.08%, 08/15/2020(2) | | | 1,383,710 | |
| | | | GMF Floorplan Owner Revolving Trust | |
| | | | | 2,675,000 | | | 1 mo. USD LIBOR + 0.430%, 1.91%, 07/15/2022(1)(2) | | | 2,684,388 | |
| | | | | 1,150,000 | | | 1 mo. USD LIBOR + 0.500%, 1.98%, 05/15/2020(1)(2) | | | 1,151,480 | |
| | | | | 1,440,000 | | | 1 mo. USD LIBOR + 0.570%, 2.05%, 01/18/2022(1)(2) | | | 1,448,624 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 28.6% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 5.8% - (continued) | |
| | $ | | | | 826,200 | | | GreatAmerica Leasing Receivables Funding LLC
1.72%, 04/22/2019(1) | | $ | 825,505 | |
| | | | John Deere Owner Trust | |
| | | | | 397,989 | | | 1.09%, 02/15/2019 | | | 397,743 | |
| | | | | 823,621 | | | 1.50%, 10/15/2019 | | | 822,542 | |
| | | | | 455,000 | | | 1.59%, 04/15/2020 | | | 453,870 | |
| | | | | 291,322 | | | Kubota Credit Owner Trust
1.25%, 04/15/2019(1) | | | 290,873 | |
| | | | MMAF Equipment Finance LLC | |
| | | | | 944,562 | | | 1.39%, 10/16/2019(1) | | | 943,696 | |
| | | | | 827,634 | | | 1.73%, 05/18/2020(1) | | | 826,485 | |
| | | | | 1,880,000 | | | 1.93%, 10/15/2020(1) | | | 1,876,731 | |
| | | | New York City Tax Lien | |
| | | | | 185,542 | | | 1.47%, 11/10/2029(1) | | | 185,078 | |
| | | | | 1,617,222 | | | 1.87%, 11/10/2030(1) | | | 1,611,033 | |
| | | | Verizon Owner Trust | |
| | | | | 2,250,000 | | | 1.42%, 01/20/2021(1) | | | 2,235,221 | |
| | | | | 730,000 | | | 1.92%, 12/20/2021(1) | | | 725,157 | |
| | | | | 905,000 | | | 2.06%, 09/20/2021(1) | | | 902,730 | |
| | | | | 3,965,000 | | | Volvo Financial Equipment LLC
1.55%, 10/15/2019(1) | | | 3,958,572 | |
| | | | | 230,000 | | | Volvo Financial Equipment Master Owner Trust
1 mo. USD LIBOR + 0.500%, 1.98%, 11/15/2022(1)(2) | | | 230,654 | |
| | | | | | | | | | | | |
| | | | 30,343,677 | |
| | | | | | | | | | | | |
| | | | Asset-Backed - Home Equity - 0.3% | |
| | | | | 1,562,570 | | | New Residential Mortgage Loan Trust
4.00%, 08/27/2057(1)(3) | | | 1,603,538 | |
| | | | | | | | | | | | |
| | | | Asset-Backed - Student Loan - 1.4% | |
| | | | Navient Student Loan Trust | |
| | | | | 1,099,088 | | | 1 mo. USD LIBOR + 0.400%, 1.95%, 07/26/2066(1)(2) | | | 1,100,277 | |
| | | �� | | 413,218 | | | 1 mo. USD LIBOR + 0.480%, 2.03%, 03/25/2066(1)(2) | | | 413,942 | |
| | | | SLM Student Loan Trust | |
| | | | | 1,117,734 | | | 3 mo. USD LIBOR + 0.090%, 1.46%, 10/25/2024(2) | | | 1,116,673 | |
| | | | | 890,094 | | | 3 mo. USD LIBOR + 0.120%, 1.49%, 01/25/2027(2) | | | 885,999 | |
| | | | | 82,734 | | | 1 mo. USD LIBOR + 0.350%, 1.68%, 10/25/2021(2) | | | 82,770 | |
| | | | | 1,139,475 | | | 1 mo. USD LIBOR + 0.520%, 1.85%, 03/25/2026(2) | | | 1,143,637 | |
| | | | | 1,782,564 | | | 1 mo. USD LIBOR + 0.600%, 1.93%, 11/25/2027(2) | | | 1,794,196 | |
| | | | | 735,167 | | | SoFi Professional Loan Program LLC
1 mo. USD LIBOR + 1.600%, 2.84%, 06/25/2025(1)(2) | | | 745,573 | |
| | | | | | | | | | | | |
| | | | 7,283,067 | |
| | | | | | | | | | | | |
| | | | Commercial Mortgage-Backed Securities - 0.8% | |
| | | | | 112,384 | | | Community or Commercial Mortgage Trust
1.91%, 01/10/2046 | | | 112,327 | |
| | | | | 1,365,000 | | | FREMF Mortgage Trust
1 mo. USD LIBOR + 0.320%, 1.56%, 02/25/2020(2) | | | 1,368,354 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 28.6% - (continued) | |
| | | | Commercial Mortgage-Backed Securities - 0.8% - (continued) | |
| | $ | | | | 800,000 | | | GS Mortgage Securities Corp. Trust
1 mo. USD LIBOR + 0.700%, 2.18%, 07/15/2032(1)(2) | | $ | 800,808 | |
| | | | | 2,081,615 | | | LB-UBS Commercial Mortgage Trust
6.32%, 04/15/2041(3) | | | 2,085,154 | |
| | | | | | | | | | | | |
| | | | 4,366,643 | |
| | | | | | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $150,867,967) | | $ | 150,578,056 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| CORPORATE BONDS - 45.4% | |
| | | | Agriculture - 1.0% | |
| | | | | 2,000,000 | | | BAT International Finance plc
3 mo. USD LIBOR + 0.510%, 2.10%, 06/15/2018(1)(2) | | $ | 2,001,544 | |
| | | | | 1,750,000 | | | Philip Morris International, Inc.
3 mo. USD LIBOR + 0.420%, 1.86%, 02/21/2020(2) | | | 1,758,461 | |
| | | | | 1,425,000 | | | Reynolds American, Inc.
2.30%, 06/12/2018 | | | 1,426,671 | |
| | | | | | | | | | | | |
| | | | 5,186,676 | |
| | | | | | | | | | | | |
| | | | Auto Manufacturers - 4.3% | |
| | | | | 2,000,000 | | | American Honda Finance Corp.
2.00%, 11/13/2019 | | | 1,993,152 | |
| | | | Daimler Finance North America LLC | |
| | | | | 1,750,000 | | | 1.50%, 07/05/2019(1) | | | 1,729,527 | |
| | | | | 2,000,000 | | | 1.65%, 05/18/2018(1) | | | 1,998,237 | |
| | | | Ford Motor Credit Co. LLC | |
| | | | | 1,500,000 | | | 2.26%, 03/28/2019 | | | 1,497,746 | |
| | | | | 2,500,000 | | | 3 mo. USD LIBOR + 0.830%, 2.38%, 03/12/2019(2) | | | 2,512,587 | |
| | | | | 1,500,000 | | | Harley-Davidson Financial Services, Inc.
2.25%, 01/15/2019(1) | | | 1,500,240 | |
| | | | Nissan Motor Acceptance Corp. | |
| | | | | 2,000,000 | | | 1.50%, 03/02/2018(1) | | | 1,998,839 | |
| | | | | 1,900,000 | | | 3 mo. USD LIBOR + 0.390%, 2.08%, 09/28/2020(1)(2) | | | 1,903,035 | |
| | | | PACCAR Financial Corp. | |
| | | | | 1,000,000 | | | 1.40%, 05/18/2018 | | | 997,928 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.600%, 2.11%, 12/06/2018(2) | | | 1,506,772 | |
| | | | | 2,000,000 | | | Toyota Motor Credit Corp.
3 mo. USD LIBOR + 0.260%, 1.61%, 04/17/2020(2) | | | 2,003,913 | |
| | | | | 3,000,000 | | | Volkswagen Group of America Finance LLC
3 mo. USD LIBOR + 0.470%, 1.92%, 05/22/2018(1)(2) | | | 3,000,542 | |
| | | | | | | | | | | | |
| | | | 22,642,518 | |
| | | | | | | | | | | | |
| | | | Beverages - 2.3% | |
| | | | | 5,000,000 | | | Anheuser-Busch InBev Finance, Inc.
3 mo. USD LIBOR + 0.400%, 1.78%, 02/01/2019(2) | | | 5,013,779 | |
| | | | | 6,000,000 | | | Anheuser-Busch InBev Worldwide, Inc.
3 mo. USD LIBOR + 0.690%, 2.07%, 08/01/2018(2) | | | 6,018,222 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Beverages - 2.3% - (continued) | |
| | $ | | | | 1,250,000 | | | PepsiCo, Inc.
3 mo. USD LIBOR + 0.040%, 1.42%, 05/02/2019(2) | | $ | 1,248,731 | |
| | | | | | | | | | | | |
| | | | 12,280,732 | |
| | | | | | | | | | | | |
| | | | Biotechnology - 0.6% | |
| | | | | 2,000,000 | | | Amgen, Inc.
3 mo. USD LIBOR + 0.320%, 1.73%, 05/10/2019(2) | | | 2,003,353 | |
| | | | | 1,205,000 | | | Gilead Sciences, Inc.
1.85%, 09/20/2019 | | | 1,199,993 | |
| | | | | | | | | | | | |
| | | | 3,203,346 | |
| | | | | | | | | | | | |
| | | | Chemicals - 0.5% | |
| | | | | 1,250,000 | | | Air Liquide Finance S.A.
1.38%, 09/27/2019(1) | | | 1,230,463 | |
| | | | | 1,450,000 | | | EI du Pont de Nemours & Co.
3 mo. USD LIBOR + 0.530%, 1.91%, 05/01/2020(2) | | | 1,459,107 | |
| | | | | | | | | | | | |
| | | | 2,689,570 | |
| | | | | | | | | | | | |
| | | | Commercial Banks - 19.2% | |
| | | | | 2,200,000 | | | ABN Amro Bank N.V.
3 mo. USD LIBOR + 0.640%, 1.99%, 01/18/2019(1)(2) | | | 2,209,086 | |
| | | | Bank of America Corp. | |
| | | | | 1,280,000 | | | 2.00%, 01/11/2018 | | | 1,280,026 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.650%, 2.35%, 10/01/2021(2) | | | 1,506,963 | |
| | | | | 2,000,000 | | | 3 mo. USD LIBOR + 1.040%, 2.40%, 01/15/2019(2) | | | 2,016,600 | |
| | | | | 720,000 | | | 5.65%, 05/01/2018 | | | 728,592 | |
| | | | | 1,350,000 | | | Bank of Montreal
1.35%, 08/28/2018 | | | 1,345,687 | |
| | | | | 1,750,000 | | | Bank of Nova Scotia
1.65%, 06/14/2019 | | | 1,736,299 | |
| | | | BB&T Corp. | |
| | | | | 2,500,000 | | | 3 mo. USD LIBOR + 0.660%, 2.04%, 02/01/2019(2) | | | 2,513,041 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.570%, 2.16%, 06/15/2020(2) | | | 1,508,563 | |
| | | | Capital One Financial Corp. | |
| | | | | 1,250,000 | | | 3 mo. USD LIBOR + 0.760%, 2.17%, 05/12/2020(2) | | | 1,255,740 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.950%, 2.49%, 03/09/2022(2) | | | 1,504,352 | |
| | | | | 4,000,000 | | | Citigroup, Inc.
3 mo. USD LIBOR + 0.770%, 2.12%, 04/08/2019(2) | | | 4,022,048 | |
| | | | | 1,500,000 | | | Citizens Bank NA
3 mo. USD LIBOR + 0.540%, 2.03%, 03/02/2020(2) | | | 1,502,941 | |
| | | | | 2,070,000 | | | Commonwealth Bank of Australia
3 mo. USD LIBOR + 0.640%, 2.03%, 11/07/2019(1)(2) | | | 2,086,192 | |
| | | | | 2,500,000 | | | Credit Agricole S.A.
3 mo. USD LIBOR + 0.970%, 2.51%, 06/10/2020(1)(2) | | | 2,535,555 | |
| | | | Credit Suisse AG | |
| | | | | 2,250,000 | | | 1.70%, 04/27/2018 | | | 2,248,326 | |
| | | | | 2,250,000 | | | 3 mo. USD LIBOR + 0.680%, 2.05%, 04/27/2018(2) | | | 2,253,301 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Commercial Banks - 19.2% - (continued) | |
| | | | Danske Bank A/S | |
| | $ | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.510%, 2.00%, 03/02/2020(1)(2) | | $ | 1,505,054 | |
| | | | | 2,000,000 | | | 3 mo. USD LIBOR + 0.580%, 2.09%, 09/06/2019(1)(2) | | | 2,011,474 | |
| | | | | 1,500,000 | | | Deutsche Bank AG
3 mo. USD LIBOR + 0.970%, 2.33%, 07/13/2020(2) | | | 1,502,651 | |
| | | | | 1,500,000 | | | DNB Bank ASA
3 mo. USD LIBOR + 0.370%, 2.07%, 10/02/2020(1)(2) | | | 1,501,300 | |
| | | | Fifth Third Bank | |
| | | | | 1,000,000 | | | 3 mo. USD LIBOR + 0.250%, 1.63%, 10/30/2020(2) | | | 998,583 | |
| | | | | 500,000 | | | 2.20%, 10/30/2020 | | | 496,918 | |
| | | | | 2,350,000 | | | 3 mo. USD LIBOR + 0.590%, 2.27%, 09/27/2019(2) | | | 2,364,877 | |
| | | | Goldman Sachs Group, Inc. | |
| | | | | 2,000,000 | | | 3 mo. USD LIBOR + 1.160%, 2.52%, 04/23/2020(2) | | | 2,030,814 | |
| | | | | 1,000,000 | | | 3 mo. USD LIBOR + 1.200%, 2.58%, 04/30/2018(2) | | | 1,002,979 | |
| | | | | 3,500,000 | | | 3 mo. USD LIBOR + 1.170%, 2.59%, 11/15/2021(2) | | | 3,551,160 | |
| | | | | 3,000,000 | | | HSBC Bank plc
3 mo. USD LIBOR + 0.640%, 2.06%, 05/15/2018(1)(2) | | | 3,004,966 | |
| | | | Huntington National Bank | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.510%, 2.05%, 03/10/2020(2) | | | 1,506,999 | |
| | | | | 1,500,000 | | | 2.20%, 11/06/2018 | | | 1,501,333 | |
| | | | ING Bank N.V. | |
| | | | | 1,000,000 | | | 1.65%, 08/15/2019(1) | | | 988,581 | |
| | | | | 2,300,000 | | | 3 mo. USD LIBOR + 0.550%, 2.15%, 03/16/2018(1)(2) | | | 2,301,678 | |
| | | | JP Morgan Chase & Co. | |
| | | | | 3,000,000 | | | 3 mo. USD LIBOR + 0.630%, 2.01%, 01/28/2019(2) | | | 3,013,939 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.680%, 2.16%, 06/01/2021(2) | | | 1,508,435 | |
| | | | KeyBank NA | |
| | | | | 1,000,000 | | | 1.60%, 08/22/2019 | | | 989,074 | |
| | | | | 1,600,000 | | | 3 mo. USD LIBOR + 0.520%, 2.00%, 06/01/2018(2) | | | 1,602,593 | |
| | | | | 3,000,000 | | | Morgan Stanley
3 mo. USD LIBOR + 0.850%, 2.22%, 01/24/2019(2) | | | 3,015,635 | |
| | | | PNC Bank NA | |
| | | | | 2,000,000 | | | 1.45%, 07/29/2019 | | | 1,974,876 | |
| | | | | 870,000 | | | 1.70%, 12/07/2018 | | | 867,422 | |
| | | | | 3,000,000 | | | Royal Bank of Canada
3 mo. USD LIBOR + 0.450%, 1.80%, 01/10/2019(2) | | | 3,009,425 | |
| | | | | 2,500,000 | | | Santander UK plc
3 mo. USD LIBOR + 0.850%, 2.31%, 08/24/2018(2) | | | 2,509,638 | |
| | | | | 3,000,000 | | | Societe Generale S.A.
3 mo. USD LIBOR + 1.080%, 2.78%, 10/01/2018(2) | | | 3,020,979 | |
| | | | | 2,000,000 | | | Standard Chartered plc
3 mo. USD LIBOR + 0.640%, 1.99%, 04/17/2018(1)(2) | | | 2,002,140 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Commercial Banks - 19.2% - (continued) | |
| | $ | | | | 1,250,000 | | | Sumitomo Mitsui Banking Corp.
3 mo. USD LIBOR + 0.670%, 2.03%, 10/19/2018(2) | | $ | 1,254,609 | |
| | | | | 3,000,000 | | | SunTrust Bank
3 mo. USD LIBOR + 0.530%, 1.91%, 01/31/2020(2) | | | 3,016,476 | |
| | | | Svenska Handelsbanken AB | |
| | | | | 1,250,000 | | | 3 mo. USD LIBOR + 0.360%, 1.88%, 09/08/2020(2) | | | 1,251,974 | |
| | | | | 1,665,000 | | | 3 mo. USD LIBOR + 0.490%, 2.00%, 09/06/2019(2) | | | 1,672,966 | |
| | | | | 2,250,000 | | | Toronto-Dominion Bank
1.45%, 08/13/2019 | | | 2,223,803 | |
| | | | | 875,000 | | | U.S. Bancorp
3 mo. USD LIBOR + 0.490%, 1.91%, 11/15/2018(2) | | | 877,576 | |
| | | | | 1,250,000 | | | U.S. Bank NA
3 mo. USD LIBOR + 0.320%, 1.69%, 01/24/2020(2) | | | 1,253,472 | |
| | | | UBS AG | |
| | | | | 1,250,000 | | | 3 mo. USD LIBOR + 0.320%, 1.84%, 12/07/2018(1)(2) | | | 1,251,136 | |
| | | | | 800,000 | | | 3 mo. USD LIBOR + 0.580%, 2.10%, 06/08/2020(1)(2) | | | 803,490 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.700%, 2.38%, 03/26/2018(2) | | | 1,502,142 | |
| | | | | 715,000 | | | 2.45%, 12/01/2020(1) | | | 712,845 | |
| | | | | 1,000,000 | | | US Bank NA
2.05%, 10/23/2020 | | | 992,796 | |
| | | | | 2,000,000 | | | Wells Fargo Bank NA
3 mo. USD LIBOR + 0.650%, 2.16%, 12/06/2019(2) | | | 2,018,655 | |
| | | | | | | | | | | | |
| | | | 100,868,775 | |
| | | | | | | | | | | | |
| | | | Diversified Financial Services - 2.1% | |
| | | | American Express Credit Corp. | |
| | | | | 1,000,000 | | | 3 mo. USD LIBOR + 0.330%, 1.72%, 05/03/2019(2) | | | 1,001,933 | |
| | | | | 2,500,000 | | | 3 mo. USD LIBOR + 0.550%, 2.15%, 03/18/2019(2) | | | 2,509,852 | |
| | | | | 3,000,000 | | | General Electric Co.
3 mo. USD LIBOR + 0.710%, 2.41%, 04/02/2018(2) | | | 3,004,503 | |
| | | | | 1,395,000 | | | Private Export Funding Corp.
2.10%, 12/19/2019(1) | | | 1,393,136 | |
| | | | | 1,465,000 | | | Protective Life Global Funding
1.72%, 04/15/2019(1) | | | 1,457,265 | |
| | | | | 1,700,000 | | | Synchrony Financial
3 mo. USD LIBOR + 1.230%, 2.62%, 02/03/2020(2) | | | 1,723,925 | |
| | | | | | | | | | | | |
| | | | 11,090,614 | |
| | | | | | | | | | | | |
| | | | Electric - 1.3% | |
| | | | | 1,250,000 | | | American Electric Power Co., Inc.
2.15%, 11/13/2020 | | | 1,244,176 | |
| | | | | 2,000,000 | | | Duke Energy Florida LLC
2.10%, 12/15/2019 | | | 1,998,379 | |
| | | | | 3,475,000 | | | Pacific Gas & Electric Co.
3 mo. USD LIBOR + 0.230%, 1.71%, 11/28/2018(1)(2) | | | 3,472,910 | |
| | | | | | | | | | | | |
| | | | 6,715,465 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Electronics - 0.6% | |
| | | | Honeywell International, Inc. | |
| | $ | | | | 2,000,000 | | | 3 mo. USD LIBOR + 0.280%, 1.66%, 10/30/2019(2) | | $ | 2,006,217 | |
| | | | | 1,000,000 | | | 1.80%, 10/30/2019 | | | 994,714 | |
| | | | | | | | | | | | |
| | | | 3,000,931 | |
| | | | | | | | | | | | |
| | | | Food - 0.6% | |
| | | | | 1,500,000 | | | JM Smucker Co.
2.20%, 12/06/2019 | | | 1,497,863 | |
| | | | | 1,500,000 | | | Kraft Heinz Foods Co.
3 mo. USD LIBOR + 0.570%, 1.98%, 02/10/2021(2) | | | 1,503,769 | |
| | | | | | | | | | | | |
| | | | 3,001,632 | |
| | | | | | | | | | | | |
| | | | Healthcare-Services - 0.7% | |
| | | | | 2,500,000 | | | Roche Holdings, Inc.
3 mo. USD LIBOR + 0.340%, 2.03%, 09/30/2019(1)(2) | | | 2,508,591 | |
| | | | | 1,000,000 | | | UnitedHealth Group, Inc.
1.95%, 10/15/2020 | | | 990,860 | |
| | | | | | | | | | | | |
| | | | 3,499,451 | |
| | | | | | | | | | | | |
| | | | Insurance - 2.7% | |
| | | | | 2,000,000 | | | Berkshire Hathaway, Inc.
1.15%, 08/15/2018 | | | 1,995,059 | |
| | | | | 1,400,000 | | | Jackson National Life Global Funding
3 mo. USD LIBOR + 0.250%, 1.93%, 12/27/2018(1)(2) | | | 1,400,008 | |
| | | | MassMutual Global Funding II | |
| | | | | 1,500,000 | | | 1.55%, 10/11/2019(1) | | | 1,482,062 | |
| | | | | 704,000 | | | 1.95%, 09/22/2020(1) | | | 695,950 | |
| | | | | 2,460,000 | | | Metropolitan Life Global Funding I
1.75%, 12/19/2018(1) | | | 2,454,942 | |
| | | | | 2,000,000 | | | New York Life Global Funding
3 mo. USD LIBOR + 0.270%, 1.62%, 04/09/2020(1)(2) | | | 2,003,933 | |
| | | | | 4,000,000 | | | Prudential Financial, Inc.
3 mo. USD LIBOR + 0.780%, 2.20%, 08/15/2018(2) | | | 4,015,285 | |
| | | | | | | | | | | | |
| | | | 14,047,239 | |
| | | | | | | | | | | | |
| | | | IT Services - 0.6% | |
| | | | | 1,425,000 | | | Apple, Inc.
3 mo. USD LIBOR + 0.070%, 1.48%, 05/11/2020(2) | | | 1,423,356 | |
| | | | | 2,000,000 | | | Hewlett Packard Enterprise Co.
2.10%, 10/04/2019(1) | | | 1,986,311 | |
| | | | | | | | | | | | |
| | | | 3,409,667 | |
| | | | | | | | | | | | |
| | | | Machinery - Construction & Mining - 0.5% | |
| | | | Caterpillar Financial Services Corp. | |
| | | | | 1,750,000 | | | 3 mo. USD LIBOR + 0.280%, 1.94%, 03/22/2019(2) | | | 1,753,822 | |
| | | | | 1,000,000 | | | 2.00%, 11/29/2019 | | | 997,849 | |
| | | | | | | | | | | | |
| | | | 2,751,671 | |
| | | | | | | | | | | | |
| | | | Machinery - Diversified - 1.1% | |
| | | | John Deere Capital Corp. | |
| | | | | 2,000,000 | | | 3 mo. USD LIBOR + 0.300%, 1.86%, 03/13/2020(2) | | | 2,005,659 | |
| | | | | 1,125,000 | | | 3 mo. USD LIBOR + 0.290%, 1.95%, 06/22/2020(2) | | | 1,126,190 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Machinery - Diversified - 1.1% - (continued) | |
| | $ | | | | 2,500,000 | | | Roper Technologies, Inc.
2.05%, 10/01/2018 | | $ | 2,499,736 | |
| | | | | | | | | | | | |
| | | | 5,631,585 | |
| | | | | | | | | | | | |
| | | | Media - 1.0% | |
| | | | NBCUniversal Enterprise, Inc. | |
| | | | | 3,000,000 | | | 3 mo. USD LIBOR + 0.685%, 2.04%, 04/15/2018(1)(2) | | | 3,004,886 | |
| | | | | 1,125,000 | | | 3 mo. USD LIBOR + 0.400%, 2.10%, 04/01/2021(1)(2) | | | 1,128,530 | |
| | | | | 1,315,000 | | | Walt Disney Co.
0.88%, 07/12/2019 | | | 1,291,078 | |
| | | | | | | | | | | | |
| | | | 5,424,494 | |
| | | | | | | | | | | | |
| | | | Miscellaneous Manufacturing - 0.6% | |
| | | | Siemens Financieringsmaatschappij N.V. | |
| | | | | 1,700,000 | | | 3 mo. USD LIBOR + 0.320%, 1.88%, 09/13/2019(1)(2) | | | 1,707,390 | |
| | | | | 1,500,000 | | | 3 mo. USD LIBOR + 0.340%, 1.94%, 03/16/2020(1)(2) | | | 1,505,445 | |
| | | | | | | | | | | | |
| | | | 3,212,835 | |
| | | | | | | | | | | | |
| | | | Oil & Gas - 2.7% | |
| | | | BP Capital Markets plc | |
| | | | | 980,000 | | | 1.77%, 09/19/2019 | | | 974,439 | |
| | | | | 4,000,000 | | | 3 mo. USD LIBOR + 0.630%, 2.31%, 09/26/2018(2) | | | 4,014,916 | |
| | | | | 1,500,000 | | | Chevron Corp.
3 mo. USD LIBOR + 0.210%, 1.70%, 03/03/2020(2) | | | 1,505,139 | |
| | | | | 3,000,000 | | | ConocoPhillips Co.
3 mo. USD LIBOR + 0.330%, 1.75%, 05/15/2018(2) | | | 3,000,392 | |
| | | | | 1,660,000 | | | Phillips 66
3 mo. USD LIBOR + 0.750%, 2.11%, 04/15/2020(1)(2) | | | 1,661,751 | |
| | | | | 3,000,000 | | | Statoil ASA
3 mo. USD LIBOR + 0.460%, 1.86%, 11/08/2018(2) | | | 3,007,655 | |
| | | | | | | | | | | | |
| | | | 14,164,292 | |
| | | | | | | | | | | | |
| | | | Oil & Gas Services - 0.2% | |
| | | | | 1,250,000 | | | Schlumberger Finance Canada Ltd.
2.20%, 11/20/2020(1) | | | 1,242,696 | |
| | | | | | | | | | | | |
| | | | Pharmaceuticals - 1.5% | |
| | | | | 4,700,000 | | | Allergan Funding SCS
3 mo. USD LIBOR + 1.080%, 2.63%, 03/12/2018(2) | | | 4,706,864 | |
| | | | | 1,750,000 | | | Baxalta, Inc.
3 mo. USD LIBOR + 0.780%, 2.44%, 06/22/2018(2) | | | 1,753,673 | |
| | | | | 1,425,000 | | | Cardinal Health, Inc.
1.95%, 06/14/2019 | | | 1,416,238 | |
| | | | | | | | | | | | |
| | | | 7,876,775 | |
| | | | | | | | | | | | |
| | | | Retail - 0.9% | |
| | | | | 2,000,000 | | | Alimentation Couche-Tard, Inc.
2.35%, 12/13/2019(1) | | | 1,999,879 | |
| | | | | 1,500,000 | | | CVS Health Corp.
1.90%, 07/20/2018 | | | 1,499,548 | |
| | | | | 1,500,000 | | | Home Depot, Inc.
3 mo. USD LIBOR + 0.150%, 1.65%, 06/05/2020(2) | | | 1,502,565 | |
| | | | | | | | | | | | |
| | | | 5,001,992 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 45.4% - (continued) | |
| | | | Semiconductors - 0.4% | |
| | $ | | | | 2,000,000 | | | QUALCOMM, Inc.
3 mo. USD LIBOR + 0.450%, 1.89%, 05/20/2020(2) | | $ | 2,000,856 | |
| | | | | | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $238,610,607) | | $ | 238,943,812 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| MUNICIPAL BONDS - 0.0% | |
| | | | General - 0.0% | |
| | | | | 170,000 | | | Fresno County, CA
4.66%, 08/15/2018 | | $ | 172,689 | |
| | | | | | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $171,760) | | $ | 172,689 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 8.2% | |
| | | | FHLB - 7.1% | |
| | | | | 15,000,000 | | | 0.88%, 01/30/2018 | | $ | 14,996,700 | |
| | | | | 7,250,000 | | | 1.25%, 01/16/2019 | | | 7,204,448 | |
| | | | | 15,000,000 | | | 1.38%, 05/28/2019 | | | 14,897,970 | |
| | | | | | | | | | | | |
| | | | 37,099,118 | |
| | | | | | | | | | | | |
| | | | FHLMC - 1.1% | |
| | | | | 3,825,000 | | | 0.75%, 04/09/2018 | | | 3,817,958 | |
| | | | | 2,000,000 | | | 1 mo. USD LIBOR + 0.200%, 1.55%, 10/25/2019(2) | | | 2,002,536 | |
| | | | | | | | | | | | |
| | | | 5,820,494 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $43,022,248) | | $ | 42,919,612 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 17.3% | |
| | | | U.S. Treasury Securities - 17.3% | |
| | | | U.S. Treasury Notes - 17.3% | |
| | | | | 25,000,000 | | | 0.75%, 07/31/2018 | | $ | 24,876,953 | |
| | | | | 25,000,000 | | | 0.88%, 01/31/2018 | | | 24,992,924 | |
| | | | | 27,500,000 | | | 0.88%, 10/15/2018 | | | 27,321,679 | |
| | | | | 7,500,000 | | | 1.00%, 02/15/2018 | | | 7,497,270 | |
| | | | | 6,250,000 | | | 1.00%, 03/15/2019 | | | 6,187,256 | |
| | | | | | | | | | | | |
| | | | 90,876,082 | |
| | | | | | | | | | | | |
| | | | 90,876,082 | |
| | | | | | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $91,016,002) | | $ | 90,876,082 | |
| | | | | | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $523,688,584) | | $ | 523,490,251 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 0.3% | |
| | | | | | | Other Investment Pools & Funds - 0.3% | | | |
| | | | | 1,400,242 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(4) | | $ | 1,400,242 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $1,400,242) | | $ | 1,400,242 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | Total Investments
(cost $525,088,826) | | | 99.8 | % | | $ | 524,890,493 | |
| | | | | | | | Other Assets and Liabilities | | | 0.2 | % | | | 1,176,587 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | Total Net Assets | | | 100.0 | % | | $ | 526,067,080 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $148,914,810, which represented 28.3% of total net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2017. |
| (3) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (4) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Other Abbreviations: |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corp. |
LIBOR | | London Interbank Offered Rate |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage Backed Securities | | $ | 150,578,056 | | | $ | — | | | $ | 150,578,056 | | | $ | — | |
Corporate Bonds | | | 238,943,812 | | | | — | | | | 238,943,812 | | | | — | |
Municipal Bonds | | | 172,689 | | | | — | | | | 172,689 | | | | — | |
U.S. Government Agencies | | | 42,919,612 | | | | — | | | | 42,919,612 | | | | — | |
U.S. Government Securities | | | 90,876,082 | | | | — | | | | 90,876,082 | | | | — | |
Short-Term Investments | | | 1,400,242 | | | | 1,400,242 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 524,890,493 | | | $ | 1,400,242 | | | $ | 523,490,251 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 16.9% | |
| | | | | | | Asset-Backed - Automobile - 1.7% | |
| | $ | | | | 350,000 | | | Avis Budget Rental Car Funding AESOP LLC
2.99%, 06/20/2022(1) | | $ | 352,174 | |
| | | | | 2,907,000 | | | Capital Auto Receivables Asset Trust
3.62%, 05/20/2021 | | | 2,958,803 | |
| | | | | 3,350,000 | | | Westlake Automobile Receivables Trust
3.40%, 01/15/2021(1) | | | 3,363,965 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,674,942 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Finance & Insurance - 3.4% | |
| | | | | 2,990,000 | | | Ares CLO Ltd.
3 mo. USD LIBOR + 1.190%,
2.54%, 04/17/2026(1)(2) | | | 3,006,170 | |
| | | | | 1,482,399 | | | Cent CLO Ltd.
3 mo. USD LIBOR + 1.120%,
2.48%, 07/23/2025(1)(2) | | | 1,484,311 | |
| | | | | 1,700,000 | | | Limerock CLO Ltd.
3 mo. USD LIBOR + 1.300%,
2.65%, 04/18/2026(1)(2) | | | 1,710,625 | |
| | | | | 1,285,000 | | | Shackleton CLO Ltd.
3 mo. USD LIBOR + 1.950%,
3.31%, 04/15/2027(1)(2) | | | 1,283,937 | |
| | | | | 4,720,000 | | | Springleaf Funding Trust
3.16%, 11/15/2024(1) | | | 4,738,743 | |
| | | | | 647,035 | | | Structured Asset Securities Corp.
1 mo. USD LIBOR + 1.500%,
3.05%, 02/25/2033(2) | | | 642,389 | |
| | | | | 739,468 | | | Towd Point Mortgage Trust
2.75%, 04/25/2057(1)(3) | | | 738,910 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,605,085 | |
| | | | | | | | | | | | |
| | | | | | | Asset-Backed - Home Equity - 1.1% | |
| | | | | 745,271 | | | Morgan Stanley Asset Backed Securities Capital I, Inc. Trust
1 mo. USD LIBOR + 1.500%,
3.05%, 11/25/2032(2) | | | 741,557 | |
| | | | | 3,606,000 | | | NRZ Advance Receivables Trust
2.58%, 10/15/2049(1) | | | 3,571,563 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,313,120 | |
| | | | | | | | | | | | |
| | | | | | | Commercial Mortgage-Backed Securities - 5.2% | |
| | | | | 3,400,000 | | | CSMC Trust
2.76%, 04/05/2033(1) | | | 3,408,154 | |
| | | | | | | | FREMF Mortgage Trust | |
| | | | | 5,845,000 | | | 1 mo. USD LIBOR + 0.320%,
1.56%, 02/25/2020(2) | | | 5,859,362 | |
| | | | | 435,000 | | | 3.36%, 05/25/2045(1)(3) | | | 438,870 | |
| | | | | 955,000 | | | 3.65%, 09/25/2024(1)(3) | | | 965,772 | |
| | | | | 1,225,000 | | | 3.70%, 04/25/2048(1)(3) | | | 1,233,483 | |
| | | | | 1,325,000 | | | 3.73%, 10/25/2049(1)(3) | | | 1,302,875 | |
| | | | | 2,645,000 | | | 3.81%, 06/25/2047(1)(3) | | | 2,687,384 | |
| | | | | 700,000 | | | 3.84%, 08/25/2027(1)(3) | | | 695,100 | |
| | | | | 660,000 | | | 3.94%, 09/25/2049(1)(3) | | | 676,460 | |
| | | | | 1,665,000 | | | 4.03%, 11/25/2044(1)(3) | | | 1,680,734 | |
| | | | | 1,990,000 | | | 5.69%, 04/25/2020(1)(3) | | | 2,100,921 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,049,115 | |
| | | | | | | | | | | | |
| | | | | | | Whole Loan Collateral CMO - 5.5% | |
| | | | | 373,011 | | | Angel Oak Mortgage Trust LLC
2.81%, 01/25/2047(1)(3) | | | 370,434 | |
| | | | | 3,772,405 | | | CIM Trust
3.00%, 04/25/2057(1)(3) | | | 3,784,062 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 16.9% - (continued) | |
| | | | | | | Whole Loan Collateral CMO - 5.5% - (continued) | |
| | $ | | | | 794,578 | | | Deephaven Residential Mortgage Trust
2.73%, 12/26/2046(1)(3) | | $ | 790,546 | |
| | | | | | | | LSTAR Securities Investment Ltd. | |
| | | | | 1,542,620 | | | 1 mo. USD LIBOR + 1.750%,
3.32%, 10/01/2022(1)(2) | | | 1,535,547 | |
| | | | | 586,012 | | | 1 mo. USD LIBOR + 2.000%,
3.57%, 04/01/2022(1)(2) | | | 586,683 | |
| | | | | 596,249 | | | Mill City Mortgage Loan Trust
2.50%, 04/25/2057(1)(3) | | | 592,590 | |
| | | | | | | | New Residential Mortgage Loan Trust | |
| | | | | 1,324,425 | | | 3.25%, 09/25/2056(1)(3) | | | 1,334,758 | |
| | | | | 1,645,744 | | | 3.75%, 03/25/2056(1)(3) | | | 1,674,279 | |
| | | | | 1,080,754 | | | Sequoia Mortgage Trust
1 mo. USD LIBOR + 0.460%,
1.96%, 02/20/2035(2) | | | 1,072,061 | |
| | | | | 1,805,678 | | | Thornburg Mortgage Securities Trust
3.19%, 04/25/2045(3) | | | 1,813,293 | |
| | | | | | | | Towd Point Mortgage Trust | |
| | | | | 64,147 | | | 2.75%, 04/25/2055(1)(3) | | | 64,079 | |
| | | | | 76,499 | | | 2.75%, 05/25/2055(1)(3) | | | 76,517 | |
| | | | | 1,797,689 | | | 3.00%, 03/25/2054(1)(3) | | | 1,805,469 | |
| | | | | 2,399,000 | | | 3.75%, 04/25/2055(1)(3) | | | 2,484,575 | |
| | | | | | | | WaMu Mortgage Pass-Through Certificates Trust | |
| | | | | 1,569,702 | | | 2.77%, 03/25/2033(3) | | | 1,577,883 | |
| | | | | 1,551,139 | | | 3.21%, 10/25/2035(3) | | | 1,559,489 | |
| | | | | 1,118,619 | | | Wells Fargo Mortgage Backed Securities Trust
3.38%, 09/25/2033(3) | | | 1,141,922 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 22,264,187 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $67,599,907) | | $ | 67,906,449 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT AGENCIES - 65.3% | |
| | | | | | | FHLMC - 35.9% | |
| | | | | 68,450,000 | | | 1.38%, 05/01/2020 | | $ | 67,426,604 | |
| | | | | 7,900,778 | | | 1.57%, 01/25/2022 | | | 7,778,643 | |
| | | | | 4,009,905 | | | 1 mo. USD LIBOR + 0.380%,
1.75%, 04/25/2020(2) | | | 4,014,890 | |
| | | | | 1,018,364 | | | 2.50%, 12/15/2026(4) | | | 54,025 | |
| | | | | 960,114 | | | 2.50%, 03/15/2028(4) | | | 77,648 | |
| | | | | 676,687 | | | 2.50%, 05/15/2028(4) | | | 49,997 | |
| | | | | 1,239,787 | | | 3.00%, 04/15/2028(4) | | | 112,281 | |
| | | | | 980,608 | | | 3.00%, 05/15/2032(4) | | | 81,864 | |
| | | | | 685,826 | | | 3.00%, 03/15/2033(4) | | | 88,754 | |
| | | | | 4,356,576 | | | 3.00%, 11/01/2036 | | | 4,433,341 | |
| | | | | 1,900,958 | | | 3.00%, 06/15/2041 | | | 1,927,782 | |
| | | | | 4,378,996 | | | 3.00%, 07/15/2041 | | | 4,432,486 | |
| | | | | 153,161 | | | 3.00%, 09/01/2045 | | | 153,420 | |
| | | | | 3,976,180 | | | 3.00%, 05/15/2046 | | | 4,013,070 | |
| | | | | 1,098,731 | | | 3.00%, 08/15/2047 | | | 1,109,982 | |
| | | | | 5,400,000 | | | 3.19%, 07/25/2027 | | | 5,544,594 | |
| | | | | 6,205,000 | | | 3.50%, 11/15/2025 | | | 6,460,258 | |
| | | | | 1,206,437 | | | 3.50%, 06/15/2026(4) | | | 88,387 | |
| | | | | 412,097 | | | 3.50%, 09/15/2026(4) | | | 39,363 | |
| | | | | 716,122 | | | 3.50%, 03/15/2027(4) | | | 66,350 | |
| | | | | 2,209,699 | | | 3.50%, 01/15/2028(4) | | | 219,073 | |
| | | | | 409,662 | | | 4.00%, 07/15/2027(4) | | | 43,329 | |
| | | | | 1,216,091 | | | 4.00%, 03/15/2028(4) | | | 116,534 | |
| | | | | 631,027 | | | 4.00%, 06/15/2028(4) | | | 67,294 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 65.3% - (continued) | |
| | | | | | | FHLMC - 35.9% - (continued) | |
| | $ | | | | 279,913 | | | 4.00%, 06/01/2044 | | $ | 292,869 | |
| | | | | 800,000 | | | 4.00%, 01/01/2048(5)(6) | | | 836,562 | |
| | | | | 13,549 | | | 4.50%, 12/01/2018 | | | 13,740 | |
| | | | | 2,385,871 | | | 4.50%, 02/15/2027(4) | | | 265,750 | |
| | | | | 2,565,100 | | | 4.50%, 05/15/2034 | | | 2,663,835 | |
| | | | | 20,800,000 | | | 4.50%, 01/01/2048(5)(6) | | | 22,109,751 | |
| | | | | 891,809 | | | 5.00%, 09/15/2033(4) | | | 185,220 | |
| | | | | 4,215 | | | 5.50%, 06/01/2034 | | | 4,627 | |
| | | | | 36,526 | | | 5.50%, 10/01/2035 | | | 40,561 | |
| | | | | 58,066 | | | 5.50%, 04/01/2037 | | | 64,200 | |
| | | | | 781,590 | | | 5.50%, 12/01/2037 | | | 863,544 | |
| | | | | 293,143 | | | 5.50%, 04/01/2038 | | | 323,405 | |
| | | | | 17,797 | | | 5.50%, 05/01/2038 | | | 19,635 | |
| | | | | 1,455,955 | | | 5.50%, 08/01/2038 | | | 1,609,997 | |
| | | | | 2,910 | | | 5.50%, 12/01/2039 | | | 3,215 | |
| | | | | 36,442 | | | 6.00%, 10/01/2021 | | | 40,705 | |
| | | | | 50,227 | | | 6.00%, 10/01/2022 | | | 56,103 | |
| | | | | 75,118 | | | 6.00%, 01/01/2028 | | | 84,114 | |
| | | | | 19,429 | | | 6.00%, 04/15/2028 | | | 21,814 | |
| | | | | 43,077 | | | 6.00%, 05/15/2028(7) | | | 47,306 | |
| | | | | 50,226 | | | 6.00%, 11/15/2028 | | | 55,013 | |
| | | | | 90,665 | | | 6.00%, 12/15/2028 | | | 99,106 | |
| | | | | 204,008 | | | 6.00%, 01/15/2029 | | �� | 228,408 | |
| | | | | 45,637 | | | 6.00%, 02/15/2029 | | | 50,057 | |
| | | | | 54,358 | | | 6.00%, 03/15/2029 | | | 61,034 | |
| | | | | 33,542 | | | 6.00%, 05/15/2029 | | | 36,710 | |
| | | | | 7,984 | | | 6.00%, 06/15/2029 | | | 8,709 | |
| | | | | 2,254 | | | 6.00%, 03/15/2031 | | | 2,552 | |
| | | | | 90,219 | | | 6.00%, 04/15/2031 | | | 101,494 | |
| | | | | 40,287 | | | 6.00%, 10/15/2031 | | | 44,786 | |
| | | | | 53,013 | | | 6.00%, 12/01/2031 | | | 60,100 | |
| | | | | 322,578 | | | 6.00%, 12/15/2031(7) | | | 365,059 | |
| | | | | 422,768 | | | 6.00%, 12/15/2031 | | | 477,424 | |
| | | | | 15,909 | | | 6.00%, 05/15/2032 | | | 17,864 | |
| | | | | 926,137 | | | 6.00%, 06/15/2032 | | | 1,040,015 | |
| | | | | 762,882 | | | 6.00%, 09/15/2032 | | | 847,295 | |
| | | | | 72,156 | | | 6.00%, 10/15/2032 | | | 82,656 | |
| | | | | 542 | | | 6.00%, 11/01/2032 | | | 612 | |
| | | | | 50,625 | | | 6.00%, 11/15/2032 | | | 56,353 | |
| | | | | 15,189 | | | 6.00%, 04/01/2033 | | | 16,966 | |
| | | | | 16,923 | | | 6.00%, 09/01/2034 | | | 18,968 | |
| | | | | 6,434 | | | 6.50%, 04/01/2028 | | | 7,127 | |
| | | | | 302,041 | | | 6.50%, 08/15/2028 | | | 335,249 | |
| | | | | 649,753 | | | 6.50%, 05/15/2032 | | | 701,459 | |
| | | | | 103,400 | | | 6.50%, 08/01/2032 | | | 115,443 | |
| | | | | 236,987 | | | 6.50%, 09/01/2032 | | | 268,148 | |
| | | | | 25,008 | | | 7.00%, 10/01/2026 | | | 25,720 | |
| | | | | 3,859 | | | 7.00%, 03/01/2027 | | | 4,170 | |
| | | | | 1,884 | | | 7.00%, 12/01/2027 | | | 1,888 | |
| | | | | 1,055 | | | 7.00%, 02/01/2029 | | | 1,194 | |
| | | | | 632 | | | 7.00%, 05/01/2029 | | | 714 | |
| | | | | 1,589 | | | 7.00%, 09/01/2029 | | | 1,733 | |
| | | | | 567 | | | 7.00%, 02/01/2031 | | | 647 | |
| | | | | 84,077 | | | 7.00%, 04/01/2032 | | | 96,534 | |
| | | | | 59,198 | | | 7.00%, 05/01/2032 | | | 60,413 | |
| | | | | 58,389 | | | 7.00%, 06/01/2032 | | | 67,336 | |
| | | | | 92,346 | | | 7.00%, 11/01/2032 | | | 102,739 | |
| | | | | 2,922 | | | 7.50%, 05/01/2024 | | | 3,161 | |
| | | | | 489 | | | 7.50%, 06/01/2024 | | | 490 | |
| | | | | 1,134 | | | 7.50%, 06/01/2025 | | | 1,215 | |
| | | | | 4,720 | | | 8.00%, 08/01/2024 | | | 4,838 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 65.3% - (continued) | |
| | | | | | | FHLMC - 35.9% - (continued) | |
| | | | $ | 4,840 | | | 8.00%, 09/01/2024 | | $ | 4,977 | |
| | | | | 6,960 | | | 8.00%, 10/01/2024 | | | 7,175 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 143,430,473 | |
| | | | | | | | | | | | |
| | | | | | | FNMA - 26.0% | |
| | | | | 1,729,195 | | | 1 mo. USD LIBOR + 0.400%, 1.64%, 10/25/2024(2) | | | 1,728,197 | |
| | | | | 1,884,836 | | | 1.70%, 04/25/2055(3)(4) | | | 91,894 | |
| | | | | 2,467,529 | | | 1 mo. USD LIBOR + 0.490%, 1.73%, 04/25/2024(2) | | | 2,469,993 | |
| | | | | 3,303,062 | | | 1.87%, 08/25/2044(3)(4) | | | 146,075 | |
| | | | | 2,462,714 | | | 1.92%, 06/25/2055(3)(4) | | | 120,028 | |
| | | | | 6,400,000 | | | 1.97%, 11/01/2023 | | | 6,197,442 | |
| | | | | 1,492,598 | | | 2.00%, 09/25/2039 | | | 1,429,645 | |
| | | | | 686,099 | | | 2.05%, 11/01/2023 | | | 667,781 | |
| | | | | 3,400,559 | | | 2.22%, 10/01/2022 | | | 3,359,144 | |
| | | | | 2,300,000 | | | 2.23%, 11/01/2023 | | | 2,255,193 | |
| | | | | 6,046,830 | | | 2.25%, 10/01/2022 | | | 5,981,323 | |
| | | | | 3,425,577 | | | 2.31%, 10/01/2022 | | | 3,402,920 | |
| | | | | 200,000 | | | 2.45%, 11/01/2022 | | | 199,825 | |
| | | | | 26,374 | | | 2.50%, 01/01/2043 | | | 25,573 | |
| | | | | 274,406 | | | 2.54%, 03/01/2023 | | | 275,243 | |
| | | | | 1,949,059 | | | 2.56%, 01/01/2019(8) | | | 1,956,511 | |
| | | | | 2,500,000 | | | 2.68%, 05/01/2025 | | | 2,506,656 | |
| | | | | 96,089 | | | 2.74%, 04/01/2022 | | | 97,245 | |
| | | | | 89,314 | | | 2.83%, 06/01/2022 | | | 90,650 | |
| | | | | 2,017,910 | | | 2.85%, 06/01/2027 | | | 2,021,560 | |
| | | | | 1,825,366 | | | 2.85%, 12/01/2027 | | | 1,819,546 | |
| | | | | 1,290,286 | | | 2.88%, 12/01/2027 | | | 1,289,275 | |
| | | | | 247,868 | | | 2.94%, 06/01/2022 | | | 252,526 | |
| | | | | 3,880,666 | | | 2.97%, 06/01/2027 | | | 3,914,745 | |
| | | | | 1,716,990 | | | 3.00%, 02/25/2027(4) | | | 138,264 | |
| | | | | 1,878,489 | | | 3.00%, 07/25/2027(4) | | | 164,731 | |
| | | | | 684,232 | | | 3.00%, 09/25/2027(4) | | | 70,290 | |
| | | | | 1,539,780 | | | 3.00%, 02/25/2028(4) | | | 141,498 | |
| | | | | 72,192 | | | 3.00%, 12/01/2030 | | | 73,571 | |
| | | | | 1,631,215 | | | 3.00%, 06/25/2043 | | | 1,653,983 | |
| | | | | 181,539 | | | 3.02%, 04/01/2022 | | | 183,929 | |
| | | | | 515,000 | | | 3.07%, 06/01/2027 | | | 523,747 | |
| | | | | 2,100,000 | | | 3.08%, 11/01/2027 | | | 2,133,588 | |
| | | | | 1,885,000 | | | 3.10%, 10/01/2027 | | | 1,918,219 | |
| | | | | 7,494,239 | | | 3.11%, 10/01/2021 | | | 7,664,658 | |
| | | | | 583,036 | | | 3.25%, 12/01/2021 | | | 599,599 | |
| | | | | 434,768 | | | 3.26%, 01/01/2022 | | | 446,408 | |
| | | | | 262,635 | | | 3.41%, 11/01/2020 | | | 269,591 | |
| | | | | 220,987 | | | 3.50%, 11/01/2020 | | | 227,571 | |
| | | | | 4,264,469 | | | 3.50%, 04/25/2027(4) | | | 422,322 | |
| | | | | 746,398 | | | 3.50%, 05/25/2027(4) | | | 77,352 | |
| | | | | 1,227,439 | | | 3.50%, 10/25/2027(4) | | | 130,111 | |
| | | | | 380,645 | | | 3.50%, 08/25/2030(4) | | | 44,830 | |
| | | | | 874,802 | | | 3.50%, 02/25/2031(4) | | | 83,184 | |
| | | | | 701,206 | | | 3.50%, 09/25/2035(4) | | | 107,437 | |
| | | | | 12,504,283 | | | 3.50%, 04/25/2044 | | | 12,819,331 | |
| | | | | 553,116 | | | 3.50%, 10/25/2046(4) | | | 126,883 | |
| | | | | 490,596 | | | 3.51%, 11/01/2021 | | | 508,820 | |
| | | | | 1,035,050 | | | 3.59%, 09/01/2030 | | | 1,088,950 | |
| | | | | 1,755,796 | | | 3.65%, 11/01/2021 | | | 1,829,799 | |
| | | | | 84,514 | | | 3.65%, 08/01/2023 | | | 88,701 | |
| | | | | 1,217,141 | | | 3.73%, 07/01/2022 | | | 1,268,915 | |
| | | | | 2,908,575 | | | 3.75%, 06/01/2018 | | | 2,912,785 | |
| | | | | 1,025,095 | | | 3.75%, 09/01/2023 | | | 1,081,358 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 65.3% - (continued) | |
| | | | | | | FNMA - 26.0% - (continued) | |
| | $ | | | | 93,998 | | | 3.81%, 11/01/2023 | | $ | 99,580 | |
| | | | | 189,746 | | | 3.83%, 07/01/2021 | | | 198,150 | |
| | | | | 284,391 | | | 3.85%, 01/01/2024 | | | 302,311 | |
| | | | | 377,830 | | | 3.87%, 01/01/2024 | | | 401,981 | |
| | | | | 384,223 | | | 3.89%, 10/01/2023 | | | 406,134 | |
| | | | | 2,700,000 | | | 3.98%, 07/01/2021 | | | 2,834,204 | |
| | | | | 177,842 | | | 3.99%, 07/01/2021 | | | 186,746 | |
| | | | | 1,243,588 | | | 4.00%, 05/25/2027(4) | | | 124,714 | |
| | | | | 539,407 | | | 4.01%, 08/01/2021 | | | 567,411 | |
| | | | | 1,472,791 | | | 4.50%, 10/01/2040 | | | 1,576,043 | |
| | | | | 655,858 | | | 4.50%, 10/01/2041 | | | 702,908 | |
| | | | | 1,898,964 | | | 4.50%, 01/01/2043 | | | 2,035,873 | |
| | | | | 583,045 | | | 4.50%, 09/01/2043 | | | 623,767 | |
| | | | | 1,873,460 | | | 4.50%, 08/01/2044 | | | 2,006,430 | |
| | | | | 600,000 | | | 4.50%, 01/01/2048(5)(6) | | | 638,344 | |
| | | | | 11,778 | | | 5.00%, 08/01/2018 | | | 11,990 | |
| | | | | 33,651 | | | 5.00%, 10/01/2018 | | | 34,258 | |
| | | | | 140,781 | | | 5.00%, 06/01/2025 | | | 149,463 | |
| | | | | 265,866 | | | 5.24%, 07/01/2019 | | | 275,813 | |
| | | | | 357,465 | | | 5.46%, 05/25/2042(3)(4) | | | 38,847 | |
| | | | | 2,698 | | | 5.50%, 04/01/2018 | | | 2,697 | |
| | | | | 4,221 | | | 5.50%, 06/01/2018 | | | 4,224 | |
| | | | | 743 | | | 5.50%, 07/01/2018 | | | 745 | |
| | | | | 324,482 | | | 5.50%, 08/01/2019 | | | 330,386 | |
| | | | | 222,716 | | | 6.00%, 10/01/2023 | | | 248,802 | |
| | | | | 31,145 | | | 6.00%, 10/25/2028 | | | 34,802 | |
| | | | | 11,134 | | | 6.00%, 11/25/2028 | | | 12,270 | |
| | | | | 41,729 | | | 6.00%, 04/25/2029 | | | 45,694 | |
| | | | | 773 | | | 6.00%, 05/01/2029 | | | 873 | |
| | | | | 37,145 | | | 6.00%, 05/25/2029 | | | 40,807 | |
| | | | | 28,185 | | | 6.00%, 06/25/2029 | | | 31,507 | |
| | | | | 68,555 | | | 6.00%, 07/25/2029 | | | 75,472 | |
| | | | | 63,688 | | | 6.00%, 05/25/2031(7) | | | 71,143 | |
| | | | | 282,107 | | | 6.00%, 05/25/2031(7) | | | 309,665 | |
| | | | | 112,746 | | | 6.00%, 09/25/2031 | | | 127,014 | |
| | | | | 27,118 | | | 6.00%, 11/25/2031 | | | 30,305 | |
| | | | | 505,004 | | | 6.00%, 12/25/2031 | | | 557,045 | |
| | | | | 230,171 | | | 6.00%, 01/01/2032 | | | 259,052 | |
| | | | | 246 | | | 6.00%, 04/01/2032 | | | 275 | |
| | | | | 378 | | | 6.00%, 05/01/2032 | | | 427 | |
| | | | | 1,768 | | | 6.00%, 09/25/2032 | | | 1,943 | |
| | | | | 92,104 | | | 6.00%, 11/01/2032 | | | 102,900 | |
| | | | | 43,889 | | | 6.00%, 02/01/2033 | | | 49,672 | |
| | | | | 246,763 | | | 6.00%, 03/01/2033 | | | 279,552 | |
| | | | | 803,380 | | | 6.00%, 05/01/2033 | | | 909,572 | |
| | | | | 8,012 | | | 6.00%, 08/01/2034 | | | 8,953 | |
| | | | | 168,294 | | | 6.00%, 01/01/2035 | | | 190,515 | |
| | | | | 2,561,217 | | | 6.00%, 02/01/2037 | | | 2,898,711 | |
| | | | | 1,345,204 | | | 6.00%, 09/25/2047(4) | | | 319,929 | |
| | | | | 30 | | | 6.50%, 04/01/2024 | | | 33 | |
| | | | | 201 | | | 6.50%, 04/01/2027 | | | 222 | |
| | | | | 15,194 | | | 6.50%, 04/01/2028 | | | 16,842 | |
| | | | | 124 | | | 6.50%, 05/01/2028 | | | 137 | |
| | | | | 7,875 | | | 6.50%, 10/01/2028 | | | 8,798 | |
| | | | | 131,398 | | | 6.50%, 11/01/2028 | | | 146,653 | |
| | | | | 73,141 | | | 6.50%, 12/01/2028 | | | 82,071 | |
| | | | | 361,620 | | | 6.50%, 06/25/2029(7) | | | 387,258 | |
| | | | | 218,255 | | | 6.50%, 08/01/2029 | | | 244,588 | |
| | | | | 878 | | | 6.50%, 11/01/2030 | | | 973 | |
| | | | | 5,013 | | | 6.50%, 05/01/2031 | | | 5,697 | |
| | | | | 188,967 | | | 6.50%, 10/25/2031 | | | 212,119 | |
| | | | | 1,127,903 | | | 6.50%, 08/01/2032 | | | 1,274,554 | |
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 65.3% - (continued) | |
| | | | | | | FNMA - 26.0% - (continued) | |
| | $ | | | | 53,547 | | | 6.50%, 09/01/2032 | | $ | 59,354 | |
| | | | | 215 | | | 7.00%, 11/01/2031 | | | 219 | |
| | | | | 327 | | | 7.00%, 12/01/2031 | | | 334 | |
| | | | | 245,511 | | | 7.00%, 02/01/2032 | | | 278,678 | |
| | | | | 5,744 | | | 7.50%, 06/01/2023 | | | 6,118 | |
| | | | | 1,833 | | | 8.00%, 10/01/2029 | | | 2,082 | |
| | | | | 94 | | | 8.00%, 03/01/2030 | | | 95 | |
| | | | | 5,923 | | | 8.00%, 04/01/2030 | | | 6,957 | |
| | | | | 23 | | | 8.00%, 06/01/2030 | | | 23 | |
| | | | | 15,702 | | | 8.00%, 10/01/2030 | | | 18,580 | |
| | | | | 26,567 | | | 8.00%, 12/01/2030 | | | 29,710 | |
| | | | | 121 | | | 9.00%, 08/01/2020 | | | 127 | |
| | | | | 15,618 | | | 9.00%, 09/01/2021 | | | 15,708 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 104,057,264 | |
| | | | | | | | | | | | |
| | | | | | | GNMA - 3.4% | |
| | | | | 337,665 | | | 1.75%, 09/20/2043 | | | 325,812 | |
| | | | | 2,440,569 | | | 2.50%, 12/16/2039 | | | 2,426,954 | |
| | | | | 845,681 | | | 3.00%, 09/20/2028(4) | | | 75,608 | |
| | | | | 449,989 | | | 3.00%, 02/16/2043(4) | | | 80,443 | |
| | | | | 365,784 | | | 3.50%, 02/16/2027(4) | | | 34,856 | |
| | | | | 880,374 | | | 3.50%, 03/20/2027(4) | | | 90,423 | |
| | | | | 759,814 | | | 3.50%, 07/20/2040(4) | | | 84,719 | |
| | | | | 1,108,103 | | | 3.50%, 02/20/2041(4) | | | 132,713 | |
| | | | | 1,860,599 | | | 3.50%, 04/20/2042(4) | | | 232,185 | |
| | | | | 2,660,527 | | | 3.50%, 10/20/2042(4) | | | 535,528 | |
| | | | | 213,650 | | | 3.50%, 05/20/2043(4) | | | 39,111 | |
| | | | | 1,692,458 | | | 3.50%, 07/20/2043(4) | | | 259,475 | |
| | | | | 274,321 | | | 4.00%, 12/16/2026(4) | | | 28,729 | |
| | | | | 3,765,772 | | | 4.00%, 05/20/2029(4) | | | 387,202 | |
| | | | | 506,669 | | | 4.00%, 03/20/2043(4) | | | 109,416 | |
| | | | | 250,642 | | | 4.00%, 01/20/2044(4) | | | 53,791 | |
| | | | | 1,660,857 | | | 4.00%, 03/20/2047(4) | | | 314,958 | |
| | | | | 2,544,176 | | | 4.00%, 07/20/2047(4) | | | 504,273 | |
| | | | | 732,362 | | | 4.50%, 04/20/2045(4) | | | 162,822 | |
| | | | | 814,762 | | | 5.00%, 01/20/2034 | | | 885,208 | |
| | | | | 2,145,957 | | | 5.00%, 02/16/2040(4) | | | 503,708 | |
| | | | | 626,206 | | | 5.00%, 05/20/2040(4) | | | 150,871 | |
| | | | | 525,239 | | | 5.00%, 01/16/2047(4) | | | 121,852 | |
| | | | | 1,039,962 | | | 5.50%, 09/20/2033 | | | 1,141,093 | |
| | | | | 1,629,502 | | | 5.50%, 03/20/2039(4) | | | 367,489 | |
| | | | | 1,618,451 | | | 5.50%, 02/16/2047(4) | | | 356,430 | |
| | | | | 977,550 | | | 5.50%, 02/20/2047(4) | | | 203,004 | |
| | | | | 461,026 | | | 6.00%, 01/15/2033 | | | 520,961 | |
| | | | | 338,743 | | | 6.00%, 02/15/2033 | | | 384,150 | |
| | | | | 1,701,104 | | | 6.00%, 09/20/2040(4) | | | 407,285 | |
| | | | | 1,417,351 | | | 6.00%, 02/20/2046(4) | | | 328,599 | |
| | | | | 37,809 | | | 6.50%, 12/15/2028 | | | 42,980 | |
| | | | | 30,100 | | | 6.50%, 05/15/2029 | | | 34,301 | |
| | | | | 451,217 | | | 6.50%, 05/16/2031 | | | 503,731 | |
| | | | | 29,061 | | | 6.50%, 09/15/2031 | | | 32,240 | |
| | | | | 233,600 | | | 6.50%, 10/15/2031 | | | 259,159 | |
| | | | | 239,493 | | | 6.50%, 11/15/2031 | | | 265,697 | |
| | | | | 252,017 | | | 6.50%, 01/15/2032 | | | 279,591 | |
| | | | | 11,040 | | | 7.00%, 06/20/2030 | | | 11,836 | |
| | | | | 15,928 | | | 7.00%, 05/15/2032 | | | 18,865 | |
| | | | | 45,549 | | | 7.00%, 07/15/2032 | | | 49,773 | |
| | | | | 104,528 | | | 7.00%, 09/15/2032 | | | 109,815 | |
| | | | | 619,612 | | | 7.00%, 10/15/2032 | | | 692,998 | |
| | | | | 1,276 | | | 7.50%, 04/15/2022 | | | 1,280 | |
| | | | | 3,287 | | | 7.50%, 01/15/2023 | | | 3,296 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 65.3% - (continued) | |
| | | | | | | GNMA - 3.4% - (continued) | |
| | $ | | | | 667 | | | 7.50%, 05/15/2023 | | $ | 701 | |
| | | | | 4,888 | | | 7.50%, 06/15/2023 | | | 5,168 | |
| | | | | 1,303 | | | 7.50%, 07/15/2023 | | | 1,307 | |
| | | | | 14,096 | | | 7.50%, 08/15/2023 | | | 14,216 | |
| | | | | 6,074 | | | 7.50%, 09/15/2023 | | | 6,091 | |
| | | | | 9,278 | | | 7.50%, 10/15/2023 | | | 9,564 | |
| | | | | 13,773 | | | 7.50%, 11/15/2023 | | | 14,352 | |
| | | | | 2,102 | | | 7.50%, 12/15/2023 | | | 2,107 | |
| | | | | 8,192 | | | 7.50%, 02/15/2024 | | | 8,415 | |
| | | | | 157 | | | 7.50%, 05/15/2024 | | | 168 | |
| | | | | 52,082 | | | 7.50%, 07/15/2027 | | | 56,250 | |
| | | | | 36,042 | | | 7.50%, 04/20/2030 | | | 42,016 | |
| | | | | 40 | | | 8.50%, 09/15/2019 | | | 40 | |
| | | | | 8,627 | | | 8.50%, 09/15/2024 | | | 9,413 | |
| | | | | 1,041 | | | 8.50%, 06/15/2029 | | | 1,080 | |
| | | | | 82 | | | 8.50%, 09/15/2029 | | | 82 | |
| | | | | 3,687 | | | 8.50%, 10/15/2029 | | | 3,782 | |
| | | | | 2,446 | | | 8.50%, 01/15/2030 | | | 2,730 | |
| | | | | 8,233 | | | 8.50%, 02/15/2030 | | | 8,308 | |
| | | | | 893 | | | 8.50%, 03/15/2030 | | | 944 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,741,964 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Agencies
(cost $262,024,380) | | $ | 261,229,701 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| U.S. GOVERNMENT SECURITIES - 22.5% | |
| | | | | | | Other Direct Federal Obligations - 1.2% | |
| | | | | | | FHLB - 1.2% | |
| | | | | 4,825,000 | | | 1.88%, 08/01/2019 | | $ | 4,818,824 | |
| | | | | | | | | | | | |
| | | | | | | U.S. Treasury Securities - 21.3% | |
| | | | | | | U.S. Treasury Notes - 21.3% | |
| | | | | 15,432,692 | | | 0.63%, 01/15/2026(9) | | | 15,679,709 | |
| | | | | 16,560,000 | | | 1.88%, 07/31/2022 | | | 16,335,534 | |
| | | | | 15,850,000 | | | 2.25%, 11/15/2025 | | | 15,710,694 | |
| | | | | 1,900,000 | | | 2.38%, 05/15/2027 | | | 1,894,582 | |
| | | | | 34,550,000 | | | 2.75%, 11/15/2023 | | | 35,485,279 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 85,105,798 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total U.S. Government Securities
(cost $90,483,912) | | $ | 89,924,622 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Long-Term Investments
(cost $420,108,199) | | $ | 419,060,772 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 0.5% | | | |
| | | | | | | Other Investment Pools & Funds - 0.5% | |
| | | | | 1,994,506 | | | Fidelity Institutional Government Fund, Institutional Class, 1.16%(10) | | $ | 1,994,506 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | Total Short-Term Investments
(cost $1,994,506) | | $ | 1,994,506 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $422,102,705) | | | 105.2 | % | | $ | 421,055,278 | |
| | | | Other Assets and Liabilities | | | (5.2 | )% | | | (20,981,277 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 400,074,001 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| 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 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. |
| (1) | Securities issued within terms of a private placement memorandum and exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be sold to qualified institutional buyers. Unless otherwise indicated, these holdings are determined to be liquid. At December 31, 2017, the aggregate value of these securities was $50,539,690, which represented 12.6% of total net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2017. |
| (3) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (4) | Securities disclosed are interest-only strips. |
| (5) | Represents or includes a TBA transaction. |
| (6) | 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 $23,639,378 at December 31, 2017. |
| (7) | These securities pay no principal or interest during their initial accrual period, but accrue additional principal at a specified coupon rate. |
| (8) | This security, or a portion of this security, has been pledged as collateral in connection with futures contracts. |
| (9) | The principal amount for this security is adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (10) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2017 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
Long position contracts: | |
U.S. Treasury 10-Year Note Future | | | 156 | | | | 03/20/2018 | | | $ | 20,835,750 | | | $ | (23,612 | ) |
U.S. Treasury 2-Year Note Future | | | 134 | | | | 03/29/2018 | | | | 28,690,656 | | | | (56,541 | ) |
U.S. Treasury 5-Year Note Future | | | 536 | | | | 03/29/2018 | | | | 62,263,938 | | | | (321,783 | ) |
U.S. Ultra Bond Future | | | 51 | | | | 03/20/2018 | | | | 8,550,469 | | | | 44,077 | |
| | | | | | | | | | | | | | | | |
Total | | | $ | (357,859 | ) |
| | | | | | | | | | | | | | | | |
Short position contracts: | |
U.S. Treasury 10-Year Note Future | | | 112 | | | | 03/20/2018 | | | $ | 13,893,250 | | | $ | (7,864 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | (365,723 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TBA Sale Commitments Outstanding at December 31, 2017 | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
FHLMC, 3.00% | | $ | 200,000 | | | | 01/01/2048 | | | $ | (199,969 | ) | | $ | (125 | ) |
FHLMC, 4.00% | | | 200,000 | | | | 01/01/2048 | | | | (209,141 | ) | | | 109 | |
FNMA, 4.50% | | | 27,650,000 | | | | 01/01/2048 | | | | (29,417,006 | ) | | | 64,326 | |
| | | | | | | | | | | | | | | | |
Total (proceeds receivable $29,890,426) | | | | | | | | | | $ | (29,826,116 | ) | | $ | 64,310 | |
| | | | | | | | | | | | | | | | |
At December 31, 2017, the aggregate market value of TBA Sale Commitments represents (7.5)% of total net assets.
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2017 | |
Reference Entity | | Counter-
party | | | Notional
Amount (a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
Credit default swaps on indices: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Buy protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.AAA.9 | | | MSC | | | | USD | | | | 25,345,000 | | | | (0.50%) | | | | 09/17/58 | | | | Monthly | | | $ | — | | | $ | (22,200 | ) | | $ | (47,958 | ) | | $ | (25,758 | ) |
CMBX.NA.AAA.9 | | | MSC | | | | USD | | | | 15,980,000 | | | | (0.50%) | | | | 09/17/58 | | | | Monthly | | | | — | | | | (1,996 | ) | | | (30,238 | ) | | | (28,242 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | $ | — | | | $ | (24,196 | ) | | $ | (78,196 | ) | | $ | (54,000 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.AAA.10 | | | MSC | | | | USD | | | | 25,345,000 | | | | 0.50% | | | | 11/17/59 | | | | Monthly | | | $ | — | | | $ | (96,599 | ) | | $ | (50,303 | ) | | $ | 46,296 | |
CMBX.NA.AAA.10 | | | MSC | | | | USD | | | | 15,980,000 | | | | 0.50% | | | | 11/17/59 | | | | Monthly | | | | — | | | | (84,509 | ) | | | (31,716 | ) | | | 52,793 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | (181,108 | ) | | $ | (82,019 | ) | | $ | 99,089 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total traded indices | | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | (205,304 | ) | | $ | (160,215 | ) | | $ | 45,089 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC contracts | | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | (205,304 | ) | | $ | (160,215 | ) | | $ | 45,089 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Interest Rate Swap Contracts Outstanding at December 31, 2017 | |
Payments
made by Fund | | Payments
received
by Fund | | Notional
Amount | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
3M USD LIBOR | | 2.25% Fixed | | | USD | | | | 28,850,000 | | | | 03/21/28 | | | | Semi-Annual | | | $ | 434,240 | | | $ | — | | | $ | 436,571 | | | $ | 2,331 | |
3M USD LIBOR | | 2.54% Fixed | | | USD | | | | 2,100,000 | | | | 11/15/43 | | | | Semi-Annual | | | | 8,896 | | | | — | | | | (1,462 | ) | | | (10,358 | ) |
3M USD LIBOR | | 2.69% Fixed | | | USD | | | | 3,275,000 | | | | 11/15/43 | | | | Semi-Annual | | | | — | | | | — | | | | (93,357 | ) | | | (93,357 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | $ | 443,136 | | | $ | — | | | $ | 341,752 | | | $ | (101,384 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
| | |
| GLOSSARY: (abbreviations used in preceding Schedule of Investments) |
|
| Counterparty Abbreviations: |
GSC | | Goldman Sachs & Co. |
MSC | | Morgan Stanley |
|
| Index Abbreviations: |
CMBX.NA | | Markit Commercial Mortgage Backed North American |
|
| 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 |
LIBOR | | London Interbank Offered Rate |
OTC | | Over-the-Counter |
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)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage Backed Securities | | $ | 67,906,449 | | | $ | — | | | $ | 67,906,449 | | | $ | — | |
U.S. Government Agencies | | | 261,229,701 | | | | — | | | | 261,229,701 | | | | — | |
U.S. Government Securities | | | 89,924,622 | | | | — | | | | 89,924,622 | | | | — | |
Short-Term Investments | | | 1,994,506 | | | | 1,994,506 | | | | — | | | | — | |
Futures Contracts(2) | | | 44,077 | | | | 44,077 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 99,089 | | | | — | | | | 99,089 | | | | — | |
Swaps - Interest Rate(2) | | | 2,331 | | | | — | | | | 2,331 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 421,200,775 | | | $ | 2,038,583 | | | $ | 419,162,192 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Futures Contracts(2) | | $ | (409,800 | ) | | $ | (409,800 | ) | | $ | — | | | $ | — | |
Swaps - Credit Default(2) | | | (54,000 | ) | | | — | | | | (54,000 | ) | | | — | |
Swaps - Interest Rate(2) | | | (103,715 | ) | | | — | | | | (103,715 | ) | | | — | |
TBA Sale Commitments | | | (29,826,116 | ) | | | — | | | | (29,826,116 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (30,393,631 | ) | | $ | (409,800 | ) | | $ | (29,983,831 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017 , there were no transfers between Level 1 and Level 2, and investments valued at $1,285,000 were transferred from Level 3 to Level 2 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable inputs. |
| (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
December 31, 2017
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.9% | | | |
| | | | Banks - 16.5% | | | |
| | 376,820 | | | Bank of America Corp. | | $ | 11,123,726 | |
| | 197,415 | | | Citigroup, Inc. | | | 14,689,650 | |
| | 225,642 | | | JP Morgan Chase & Co. | | | 24,130,155 | |
| | 42,050 | | | M&T Bank Corp. | | | 7,190,130 | |
| | 89,130 | | | PNC Financial Services Group, Inc. | | | 12,860,568 | |
| | 277,015 | | | Wells Fargo & Co. | | | 16,806,500 | |
| | | | | | | | |
| | | | | | | 86,800,729 | |
| | | | | | | | |
| | | | Capital Goods - 8.8% | | | |
| | 22,665 | | | 3M Co. | | | 5,334,661 | |
| | 36,420 | | | Caterpillar, Inc. | | | 5,739,064 | |
| | 105,335 | | | Eaton Corp. plc | | | 8,322,518 | |
| | 81,940 | | | Fortune Brands Home & Security, Inc. | | | 5,607,974 | |
| | 226,660 | | | General Electric Co. | | | 3,955,217 | |
| | 85,015 | | | Ingersoll-Rand plc | | | 7,582,488 | |
| | 72,580 | | | Triumph Group, Inc. | | | 1,974,176 | |
| | 61,260 | | | United Technologies Corp. | | | 7,814,938 | |
| | | | | | | | |
| | | | | | | 46,331,036 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 0.6% | | | |
| | 89,230 | | | Nielsen Holdings plc | | | 3,247,972 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.0% | | | |
| | 154,315 | | | PulteGroup, Inc. | | | 5,130,974 | |
| | | | | | | | |
| | | | Consumer Services - 2.1% | | | |
| | 79,013 | | | Hilton Worldwide Holdings, Inc. | | | 6,309,978 | |
| | 88,530 | | | Norwegian Cruise Line Holdings Ltd.* | | | 4,714,223 | |
| | | | | | | | |
| | | | | | | 11,024,201 | |
| | | | | | | | |
| | | | Diversified Financials - 5.2% | | | |
| | 12,695 | | | BlackRock, Inc. | | | 6,521,549 | |
| | 25,670 | | | Goldman Sachs Group, Inc. | | | 6,539,689 | |
| | 177,610 | | | Invesco Ltd. | | | 6,489,869 | |
| | 71,400 | | | Nasdaq, Inc. | | | 5,485,662 | |
| | 59,290 | | | Thomson Reuters Corp. | | | 2,584,451 | |
| | | | | | | | |
| | | | | | | 27,621,220 | |
| | | | | | | | |
| | | | Energy - 10.3% | | | |
| | 167,060 | | | Canadian Natural Resources Ltd. | | | 5,967,383 | |
| | 99,805 | | | Chevron Corp. | | | 12,494,588 | |
| | 71,360 | | | EOG Resources, Inc. | | | 7,700,458 | |
| | 80,285 | | | Exxon Mobil Corp. | | | 6,715,037 | |
| | 131,985 | | | Halliburton Co. | | | 6,450,107 | |
| | 342,709 | | | Marathon Oil Corp. | | | 5,802,063 | |
| | 45,030 | | | Occidental Petroleum Corp. | | | 3,316,910 | |
| | 27,640 | | | Pioneer Natural Resources Co. | | | 4,777,574 | |
| | 198,350 | | | Southwestern Energy Co.* | | | 1,106,793 | |
| | | | | | | | |
| | | | | | | 54,330,913 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 4.0% | | | |
| | 75,480 | | | British American Tobacco plc | | | 5,102,358 | |
| | 43,413 | | | Kraft Heinz Co. | | | 3,375,795 | |
| | 109,180 | | | Mondelez International, Inc. Class A | | | 4,672,904 | |
| | 74,380 | | | Philip Morris International, Inc. | | | 7,858,247 | |
| | | | | | | | |
| | | | | | | 21,009,304 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 3.4% | | | |
| | 89,466 | | | Medtronic plc | | | 7,224,379 | |
| | 35,745 | | | UnitedHealth Group, Inc. | | | 7,880,343 | |
| | 21,700 | | | Zimmer Biomet Holdings, Inc. | | | 2,618,539 | |
| | | | | | | | |
| | | | | | | 17,723,261 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.9% - (continued) | | | |
| | | | Household & Personal Products - 0.7% | | | |
| | 70,450 | | | Unilever N.V. | | $ | 3,967,744 | |
| | | | | | | | |
| | | | Insurance - 6.7% | | | |
| | 74,795 | | | American International Group, Inc. | | | 4,456,286 | |
| | 55,020 | | | Chubb Ltd. | | | 8,040,072 | |
| | 75,170 | | | Marsh & McLennan Cos., Inc. | | | 6,118,086 | |
| | 107,080 | | | MetLife, Inc. | | | 5,413,965 | |
| | 43,915 | | | Principal Financial Group, Inc. | | | 3,098,642 | |
| | 69,875 | | | Unum Group | | | 3,835,439 | |
| | 122,210 | | | XL Group Ltd. | | | 4,296,904 | |
| | | | | | | | |
| | | | | | | 35,259,394 | |
| | | | | | | | |
| | | | Materials - 3.0% | | | |
| | 118,760 | | | DowDuPont, Inc. | | | 8,458,087 | |
| | 123,275 | | | International Paper Co. | | | 7,142,554 | |
| | | | | | | | |
| | | | | | | 15,600,641 | |
| | | | | | | | |
| | | | Media - 2.6% | | | |
| | 71,820 | | | CBS Corp. Class B | | | 4,237,380 | |
| | 149,080 | | | Comcast Corp. Class A | | | 5,970,654 | |
| | 106,070 | | | Viacom, Inc. Class B | | | 3,268,017 | |
| | | | | | | | |
| | | | | | | 13,476,051 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.7% | |
| | 34,680 | | | Allergan plc | | | 5,672,954 | |
| | 27,410 | | | Amgen, Inc. | | | 4,766,599 | |
| | 154,730 | | | AstraZeneca plc ADR | | | 5,369,131 | |
| | 113,840 | | | Bristol-Myers Squibb Co. | | | 6,976,115 | |
| | 182,020 | | | Merck & Co., Inc. | | | 10,242,266 | |
| | 29,157 | | | Roche Holding AG | | | 7,372,499 | |
| | | | | | | | |
| | | | | | | 40,399,564 | |
| | | | | | | | |
| | | | Real Estate - 1.0% | | | |
| | 182,090 | | | Park Hotels & Resorts, Inc. REIT | | | 5,235,087 | |
| | | | | | | | |
| | | | Retailing - 4.1% | | | |
| | 29,680 | | | Home Depot, Inc. | | | 5,625,251 | |
| | 82,760 | | | L Brands, Inc. | | | 4,983,807 | |
| | 228,450 | | | Liberty Interactive Corp. QVC Group Class A* | | | 5,578,749 | |
| | 69,140 | | | TJX Cos., Inc. | | | 5,286,444 | |
| | | | | | | | |
| | | | | | | 21,474,251 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.5% | |
| | 37,780 | | | Analog Devices, Inc. | | | 3,363,553 | |
| | 291,430 | | | Intel Corp. | | | 13,452,409 | |
| | 91,395 | | | Maxim Integrated Products, Inc. | | | 4,778,130 | |
| | 115,240 | | | QUALCOMM, Inc. | | | 7,377,665 | |
| | | | | | | | |
| | | | | | | 28,971,757 | |
| | | | | | | | |
| | | | Software & Services - 3.0% | | | |
| | 70,500 | | | Cognizant Technology Solutions Corp. Class A | | | 5,006,910 | |
| | 126,310 | | | eBay, Inc.* | | | 4,766,940 | |
| | 67,895 | | | Microsoft Corp. | | | 5,807,738 | |
| | | | | | | | |
| | | | | | | 15,581,588 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 4.6% | | | |
| | 387,970 | | | Cisco Systems, Inc. | | | 14,859,251 | |
| | 111,070 | | | NetApp, Inc. | | | 6,144,392 | |
| | 682,960 | | | Nokia Oyj ADR | | | 3,182,594 | |
| | | | | | | | |
| | | | | | | 24,186,237 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.6% | | | |
| | 162,120 | | | Verizon Communications, Inc. | | | 8,581,012 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2017
| | | | | | | | | | | | |
| Shares or Principal Amount | | | | | Market Value† | |
| COMMON STOCKS - 97.9% - (continued) | | | | | | |
| | | | Transportation - 2.1% | | | | | | |
| | 131,615 | | | Schneider National, Inc. Class B | | | | | | $ | 3,758,924 | |
| | 55,820 | | | Union Pacific Corp. | | | | | | | 7,485,462 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,244,386 | |
| | | | | | | | | | | | |
| | | | Utilities - 3.4% | | | | | | |
| | 40,040 | | | Dominion Energy, Inc. | | | | | | | 3,245,642 | |
| | 76,100 | | | Edison International | | | | | | | 4,812,564 | |
| | 103,905 | | | Eversource Energy | | | | | | | 6,564,718 | |
| | 22,835 | | | NextEra Energy, Inc. | | | | | | | 3,566,599 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,189,523 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Common Stocks
(cost $368,024,641) | | | | | | $ | 515,386,845 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Long-Term Investments
(cost $368,024,641) | | | | | | $ | 515,386,845 | |
| | | | | | | | | | | | |
| | |
| SHORT-TERM INVESTMENTS - 2.1% | | | | | | |
| | | | Other Investment Pools & Funds - 2.1% | |
| | 11,323,351 | | | BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 1.17%(1) | | | | | | $ | 11,323,351 | |
| | | | | | | | | | | | |
| | | |
| | | | Total Short-Term Investments
(cost $11,323,351) | | | | | | $ | 11,323,351 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $379,347,992) | | | 100.0 | % | | $ | 526,710,196 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | (224,387 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 526,485,809 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2017
| 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. |
| (1) | Current yield as of period end. |
| † | 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.
Schedule of Investments – (continued)
December 31, 2017
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
| | | Total | | | Level 1(1) | | | Level 2(1) | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 86,800,729 | | | $ | 86,800,729 | | | $ | — | | | $ | — | |
Capital Goods | | | 46,331,036 | | | | 46,331,036 | | | | — | | | | — | |
Commercial & Professional Services | | | 3,247,972 | | | | 3,247,972 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 5,130,974 | | | | 5,130,974 | | | | — | | | | — | |
Consumer Services | | | 11,024,201 | | | | 11,024,201 | | | | — | | | | — | |
Diversified Financials | | | 27,621,220 | | | | 27,621,220 | | | | — | | | | — | |
Energy | | | 54,330,913 | | | | 54,330,913 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 21,009,304 | | | | 15,906,946 | | | | 5,102,358 | | | | — | |
Health Care Equipment & Services | | | 17,723,261 | | | | 17,723,261 | | | | — | | | | — | |
Household & Personal Products | | | 3,967,744 | | | | 3,967,744 | | | | — | | | | — | |
Insurance | | | 35,259,394 | | | | 35,259,394 | | | | — | | | | — | |
Materials | | | 15,600,641 | | | | 15,600,641 | | | | — | | | | — | |
Media | | | 13,476,051 | | | | 13,476,051 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 40,399,564 | | | | 33,027,065 | | | | 7,372,499 | | | | — | |
Real Estate | | | 5,235,087 | | | | 5,235,087 | | | | — | | | | — | |
Retailing | | | 21,474,251 | | | | 21,474,251 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 28,971,757 | | | | 28,971,757 | | | | — | | | | — | |
Software & Services | | | 15,581,588 | | | | 15,581,588 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 24,186,237 | | | | 24,186,237 | | | | — | | | | — | |
Telecommunication Services | | | 8,581,012 | | | | 8,581,012 | | | | — | | | | — | |
Transportation | | | 11,244,386 | | | | 11,244,386 | | | | — | | | | — | |
Utilities | | | 18,189,523 | | | | 18,189,523 | | | | — | | | | — | |
Short-Term Investments | | | 11,323,351 | | | | 11,323,351 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 526,710,196 | | | $ | 514,235,339 | | | $ | 12,474,857 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2017, there were no transfers between any levels. |
The accompanying notes are an integral part of these financial statements.
[This page is intentionally left blank]
Statements of Assets and Liabilities
December 31, 2017
| | | | | | | | | | | | |
| | |
Hartford
Balanced HLS
Fund | | | Hartford
Capital Appreciation
HLS Fund | | | Hartford
Disciplined Equity
HLS Fund | |
Assets: | | | | | | | | | | | | |
Investments in securities, at market value | | $ | 2,368,734,743 | | | $ | 5,059,977,537 | | | $ | 698,894,399 | |
Cash | | | 37,161 | | | | — | | | | — | |
Foreign currency | | | — | | | | 159,103 | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 22,177 | | | | — | |
Receivables: | | | | | | | | | | | | |
Investment securities sold | | | 1,507,543 | | | | 8,984,036 | | | | — | |
Fund shares sold | | | 55,140 | | | | 559,466 | | | | 1,879 | |
Dividends and interest | | | 7,751,592 | | | | 4,517,178 | | | | 673,090 | |
Tax reclaims | | | 658,452 | | | | 1,194,590 | | | | — | |
Other assets | | | 8,256 | | | | 657 | | | | 15,957 | |
| | | | | | | | | | | | |
Total assets | | | 2,378,752,887 | | | | 5,075,414,744 | | | | 699,585,325 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | | — | | | | 252,380 | | | | — | |
Cash collateral due to broker on futures contracts | | | — | | | | — | | | | 39 | |
Payables: | | | | | | | | | | | | |
Investment securities purchased | | | 3,142,817 | | | | 11,850,787 | | | | 668,251 | |
Fund shares redeemed | | | 1,074,625 | | | | 2,722,629 | | | | 910,478 | |
Investment management fees | | | 1,190,170 | | | | 2,751,574 | | | | 434,416 | |
Transfer agent fees | | | 935 | | | | 1,405 | | | | 911 | |
Accounting services fees | | | 36,260 | | | | 72,111 | | | | 8,350 | |
Board of Directors’ fees | | | 12,371 | | | | 27,297 | | | | 3,588 | |
Variation margin on futures contracts | | | 44,302 | | | | — | | | | — | |
Distribution fees | | | 58,903 | | | | 127,426 | | | | 17,981 | |
Accrued expenses | | | 211,466 | | | | 413,121 | | | | 126,834 | |
| | | | | | | | | | | | |
Total liabilities | | | 5,771,849 | | | | 18,218,730 | | | | 2,170,848 | |
| | | | | | | | | | | | |
Net assets | | $ | 2,372,981,038 | | | $ | 5,057,196,014 | | | $ | 697,414,477 | |
| | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | |
Capital stock and paid-in-capital | | $ | 1,770,568,523 | | | $ | 4,036,526,632 | | | $ | 451,860,008 | |
Undistributed (distributions in excess of) net investment income | | | 975,147 | | | | 3,396,603 | | | | 490,218 | |
Accumulated net realized gain (loss) | | | 79,654,428 | | | | 366,799,103 | | | | 59,083,624 | |
Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency | | | 521,782,940 | | | | 650,473,676 | | | | 185,980,627 | |
| | | | | | | | | | | | |
Net assets | | $ | 2,372,981,038 | | | $ | 5,057,196,014 | | | $ | 697,414,477 | |
| | | | | | | | | | | | |
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 | | $ | 31.02 | | | $ | 48.16 | | | $ | 15.43 | |
| | | | | | | | | | | | |
Shares outstanding | | | 67,538,360 | | | | 92,565,115 | | | | 39,718,890 | |
| | | | | | | | | | | | |
Net Assets | | $ | 2,095,245,783 | | | $ | 4,457,602,510 | | | $ | 613,037,362 | |
| | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 31.48 | | | $ | 47.48 | | | $ | 15.27 | |
| | | | | | | | | | | | |
Shares outstanding | | | 8,822,728 | | | | 11,996,612 | | | | 5,524,279 | |
| | | | | | | | | | | | |
Net Assets | | $ | 277,735,255 | | | $ | 569,614,550 | | | $ | 84,377,115 | |
| | | | | | | | | | | | |
Class IC: Net asset value per share | | $ | — | | | $ | 47.76 | | | $ | — | |
| | | | | | | | | | | | |
Shares outstanding | | | — | | | | 627,641 | | | | — | |
| | | | | | | | | | | | |
Net Assets | | $ | — | | | $ | 29,978,954 | | | $ | — | |
| | | | | | | | | | | | |
Cost of investments | | $ | 1,847,130,645 | | | $ | 4,409,247,535 | | | $ | 512,913,772 | |
Cost of foreign currency | | $ | — | | | $ | 159,101 | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,619,178,097 | | | $ | 519,801,452 | | | $ | 1,511,732,659 | | | $ | 335,411,660 | | | $ | 295,088,282 | | | $ | 1,587,085,047 | | | $ | 2,221,817,095 | |
| | — | | | | — | | | | — | | | | — | | | | 2,160,435 | | | | — | | | | — | |
| | — | | | | 34,495 | | | | — | | | | — | | | | — | | | | 142,773 | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 9,997,379 | | | | — | | | | 4,978 | | | | 1,267,848 | | | | — | |
| | 486,452 | | | | 97,474 | | | | 80,303 | | | | 179,399 | | | | 6,183 | | | | 873,126 | | | | 1,486,061 | |
| | 4,696,011 | | | | 171,231 | | | | 211,699 | | | | 200,073 | | | | 4,688,563 | | | | 1,050,668 | | | | 1,163,575 | |
| | 530,123 | | | | 566,194 | | | | 166,949 | | | | 18,567 | | | | — | | | | 2,868,424 | | | | — | |
| | 5,504 | | | | 17,163 | | | | 20,703 | | | | 14,937 | | | | 16,995 | | | | 16,058 | | | | 21,240 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 3,624,896,187 | | | | 520,688,009 | | | | 1,522,209,692 | | | | 335,824,636 | | | | 301,965,436 | | | | 1,593,303,944 | | | | 2,224,487,971 | |
| | | | | | | | | | | �� | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | 60,543 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,012,507 | | | | — | | | | 10,887,330 | | | | 72,057 | | | | — | | | | — | | | | 6,822,331 | |
| | 1,818,137 | | | | 3,191,766 | | | | 814,303 | | | | 52,660 | | | | 115,710 | | | | 11,578,391 | | | | 1,385,208 | |
| | 1,991,121 | | | | 328,858 | | | | 780,558 | | | | 238,690 | | | | 179,129 | | | | 911,421 | | | | 1,239,571 | |
| | 987 | | | | 918 | | | | 1,351 | | | | 937 | | | | 872 | | | | 1,202 | | | | 1,333 | |
| | 42,839 | | | | 6,160 | | | | 23,162 | | | | 3,991 | | | | 3,583 | | | | 18,751 | | | | 26,102 | |
| | 18,219 | | | | 2,562 | | | | 7,635 | | | | 1,855 | | | | 1,665 | | | | 7,571 | | | | 10,587 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | 93,587 | | | | 17,890 | | | | 39,046 | | | | 9,622 | | | | 15,160 | | | | 34,261 | | | | 19,911 | |
| | 268,008 | | | | 117,334 | | | | 211,044 | | | | 46,623 | | | | 98,904 | | | | 232,127 | | | | 88,887 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5,245,405 | | | | 3,665,488 | | | | 12,764,429 | | | | 426,435 | | | | 475,566 | | | | 12,783,724 | | | | 9,593,930 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,619,650,782 | | | $ | 517,022,521 | | | $ | 1,509,445,263 | | | $ | 335,398,201 | | | $ | 301,489,870 | | | $ | 1,580,520,220 | | | $ | 2,214,894,041 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 2,103,025,703 | | | $ | 331,246,334 | | | $ | 1,039,632,858 | | | $ | 260,926,914 | | | $ | 297,568,113 | | | $ | 1,346,859,296 | | | $ | 1,422,817,402 | |
| | 4,161,698 | | | | 2,472,553 | | | | (1,183,092 | ) | | | (135,601 | ) | | | 16,495,652 | | | | 26,985,652 | | | | (201,237 | ) |
| | 354,850,035 | | | | 43,440,474 | | | | 201,460,558 | | | | 14,622,725 | | | | (15,707,586 | ) | | | (5,858,578 | ) | | | 197,872,061 | |
| 1,157,613,346 | | | | 139,863,160 | | | | 269,534,939 | | | | 59,984,163 | | | | 3,133,691 | | | | 212,533,850 | | | | 594,405,815 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,619,650,782 | | | $ | 517,022,521 | | | $ | 1,509,445,263 | | | $ | 335,398,201 | | | $ | 301,489,870 | | | $ | 1,580,520,220 | | | $ | 2,214,894,041 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 23.95 | | | $ | 27.89 | | | $ | 38.42 | | | $ | 22.46 | | | $ | 8.20 | | | $ | 17.46 | | | $ | 40.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 132,731,332 | | | | 15,507,747 | | | | 34,520,690 | | | | 12,941,237 | | | | 28,072,576 | | | | 81,218,711 | | | | 53,773,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,179,539,708 | | | $ | 432,580,806 | | | $ | 1,326,200,871 | | | $ | 290,602,516 | | | $ | 230,100,781 | | | $ | 1,418,078,488 | | | $ | 2,156,044,044 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 23.85 | | | $ | 27.63 | | | $ | 36.91 | | | $ | 21.35 | | | $ | 8.06 | | | $ | 17.68 | | | $ | 39.18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 18,453,539 | | | | 3,055,863 | | | | 4,042,360 | | | | 2,098,640 | | | | 8,858,877 | | | | 9,189,317 | | | | 1,502,149 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 440,111,074 | | | $ | 84,441,715 | | | $ | 149,211,681 | | | $ | 44,795,685 | | | $ | 71,389,089 | | | $ | 162,441,732 | | | $ | 58,849,997 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | — | | | $ | 37.71 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 902,495 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | — | | | $ | 34,032,711 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 2,461,575,086 | | | $ | 379,936,381 | | | $ | 1,242,189,372 | | | $ | 275,427,248 | | | $ | 291,895,071 | | | $ | 1,374,575,062 | | | $ | 1,627,411,280 | |
| $ | — | | | $ | 34,495 | | | $ | — | | | $ | — | | | $ | — | | | $ | 142,774 | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2017
| | | | | | | | | | | | |
| | |
Hartford
MidCap Value
HLS Fund | | | Hartford
Small Cap Growth
HLS Fund | | | Hartford
Small Company
HLS Fund | |
Assets: | |
Investments in securities, at market value | | $ | 375,179,361 | | | $ | 1,331,543,910 | | | $ | 609,041,703 | |
Cash | | | — | | | | — | | | | — | |
Cash collateral due from broker on swap contracts | | | — | | | | — | | | | — | |
Foreign currency | | | 12 | | | | — | | | | 5 | |
Unrealized appreciation on OTC swap contracts | | | — | | | | — | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | — | | | | — | |
Receivables: | |
Investment securities sold | | | 797,093 | | | | 1,021,343 | | | | 4,394,535 | |
Fund shares sold | | | 1,471 | | | | 4,011,831 | | | | 90,197 | |
Dividends and interest | | | 326,718 | | | | 834,830 | | | | 355,052 | |
Tax reclaims | | | 7,475 | | | | — | | | | — | |
Variation margin on futures contracts | | | — | | | | — | | | | — | |
OTC swap contracts premiums paid | | | — | | | | — | | | | — | |
Other assets | | | 17,501 | | | | 17,214 | | | | 14,859 | |
| | | | | | | | | | | | |
Total assets | | | 376,329,631 | | | | 1,337,429,128 | | | | 613,896,351 | |
| | | | | | | | | | | | |
Liabilities: | |
Unrealized depreciation on foreign currency contracts | | | — | | | | — | | | | — | |
Bank overdraft | | | — | | | | — | | | | — | |
Unrealized depreciation on OTC swap contracts | | | — | | | | — | | | | — | |
Cash collateral due to broker on swap contracts | | | — | | | | — | | | | — | |
TBA sale commitments, at market value | | | — | | | | — | | | | — | |
Payables: | |
Investment securities purchased | | | 979,247 | | | | 340,903 | | | | 5,131,503 | |
Fund shares redeemed | | | 152,011 | | | | 1,152,965 | | | | 60,549 | |
Investment management fees | | | 254,003 | | | | 690,391 | | | | 379,855 | |
Transfer agent fees | | | 852 | | | | 1,298 | | | | 961 | |
Accounting services fees | | | 4,445 | | | | 20,457 | | | | 9,280 | |
Board of Directors’ fees | | | 1,921 | | | | 6,725 | | | | 3,687 | |
Variation margin on centrally cleared swap contracts | | | — | | | | — | | | | — | |
Distribution fees | | | 18,454 | | | | 77,807 | | | | 12,086 | |
Accrued expenses | | | 81,228 | | | | 106,260 | | | | 95,702 | |
OTC swap contracts premiums received | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Total liabilities | | | 1,492,161 | | | | 2,396,806 | | | | 5,693,623 | |
| | | | | | | | | | | | |
Net assets | | $ | 374,837,470 | | | $ | 1,335,032,322 | | | $ | 608,202,728 | |
| | | | | | | | | | | | |
Summary of Net Assets: | |
Capital stock and paid-in-capital | | $ | 265,466,671 | | | $ | 964,681,101 | | | $ | 454,258,288 | |
Undistributed (distributions in excess of) net investment income | | | 1,237,586 | | | | — | | | | — | |
Accumulated net realized gain (loss) | | | 22,208,472 | | | | 82,092,358 | | | | 39,018,893 | |
Unrealized appreciation (depreciation) of investments and the translation of assets and liabilities denominated in foreign currency | | | 85,924,741 | | | | 288,258,863 | | | | 114,925,547 | |
| | | | | | | | | | | | |
Net assets | | $ | 374,837,470 | | | $ | 1,335,032,322 | | | $ | 608,202,728 | |
| | | | | | | | | | | | |
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 | | $ | 12.60 | | | $ | 32.13 | | | $ | 20.42 | |
| | | | | | | | | | | | |
Shares outstanding | | | 22,826,474 | | | | 29,902,932 | | | | 26,987,660 | |
| | | | | | | | | | | | |
Net Assets | | $ | 287,688,287 | | | $ | 960,689,933 | | | $ | 551,010,202 | |
| | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 12.50 | | | $ | 31.28 | | | $ | 18.97 | |
| | | | | | | | | | | | |
Shares outstanding | | | 6,969,589 | | | | 11,966,318 | | | | 3,015,219 | |
| | | | | | | | | | | | |
Net Assets | | $ | 87,149,183 | | | $ | 374,342,389 | | | $ | 57,192,526 | |
| | | | | | | | | | | | |
Cost of investments | | $ | 289,253,445 | | | $ | 1,043,285,047 | | | $ | 494,116,156 | |
Cost of foreign currency | | $ | 12 | | | $ | — | | | $ | 5 | |
Proceeds receivable of TBA sale commitments | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 98,897,520 | | | $ | 1,526,577,264 | | | $ | 2,907,292,822 | | | $ | 524,890,493 | | | $ | 421,055,278 | | | $ | 526,710,196 | |
| | — | | | | — | | | | 577,837 | | | | 18,865 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 1,941,071 | | | | — | |
| | — | | | | 128,037 | | | | 725,630 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 1,170,799 | | | | — | | | | 99,089 | | | | — | |
| | — | | | | — | | | | 191,937 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 1,822,652 | | | | 343,925,599 | | | | — | | | | 30,581,005 | | | | — | |
| | 20,709 | | | | 18,030 | | | | 382,429 | | | | 553,302 | | | | 5,023 | | | | 66,966 | |
| | 176,686 | | | | 2,208,151 | | | | 12,920,128 | | | | 1,228,516 | | | | 1,379,363 | | | | 656,893 | |
| | — | | | | 934,718 | | | | 3,200 | | | | 277 | | | | — | | | | 208,725 | |
| | — | | | | — | | | | 924,397 | | | | — | | | | 96,219 | | | | — | |
| | — | | | | — | | | | 6,391,619 | | | | — | | | | — | | | | — | |
| | 19,132 | | | | 11,497 | | | | 19,643 | | | | 16,286 | | | | 26,183 | | | | 18,818 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 99,114,047 | | | | 1,531,700,349 | | | | 3,274,526,040 | | | | 526,707,739 | | | | 455,183,231 | | | | 527,661,598 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 673,631 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 13,246 | | | | — | |
| | — | | | | — | | | | 3,770,540 | | | | — | | | | 54,000 | | | | — | |
| | — | | | | — | | | | 910,000 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 292,744,567 | | | | — | | | | 29,826,116 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 2,935,079 | | | | 557,219,976 | | | | — | | | | 24,267,453 | | | | — | |
| | 4,528 | | | | 6,298,279 | | | | 1,218,418 | | | | 331,792 | | | | 396,109 | | | | 724,281 | |
| | 67,437 | | | | 620,639 | | | | 953,619 | | | | 179,870 | | | | 154,074 | | | | 334,169 | |
| | 833 | | | | 895 | | | | 954 | | | | 913 | | | | 869 | | | | 938 | |
| | 1,180 | | | | 18,153 | | | | 36,658 | | | | 6,295 | | | | 4,793 | | | | 6,270 | |
| | 502 | | | | 7,894 | | | | 13,112 | | | | 3,013 | | | | 2,302 | | | | 2,706 | |
| | — | | | | — | | | | 198,019 | | | | — | | | | 66,491 | | | | — | |
| | 3,179 | | | | 30,440 | | | | 52,928 | | | | 13,950 | | | | 15,085 | | | | 16,054 | |
| | 40,651 | | | | 173,094 | | | | 271,492 | | | | 104,826 | | | | 103,388 | | | | 91,371 | |
| | — | | | | — | | | | 10,170,899 | | | | — | | | | 205,304 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 118,310 | | | | 10,084,473 | | | | 868,234,813 | | | | 640,659 | | | | 55,109,230 | | | | 1,175,789 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 98,995,737 | | | $ | 1,521,615,876 | | | $ | 2,406,291,227 | | | $ | 526,067,080 | | | $ | 400,074,001 | | | $ | 526,485,809 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 71,449,625 | | | $ | 1,162,071,543 | | | $ | 2,293,527,914 | | | $ | 521,395,828 | | | $ | 479,046,958 | | | $ | 339,877,679 | |
| | 923,002 | | | | 893,471 | | | | 89,462,062 | | | | 5,554,675 | | | | 8,420,308 | | | | — | |
| | 8,503,426 | | | | (5,371,524 | ) | | | 9,867,013 | | | | (685,090 | ) | | | (85,988,130 | ) | | | 39,245,256 | |
| 18,119,684 | | | | 364,022,386 | | | | 13,434,238 | | | | (198,333 | ) | | | (1,405,135 | ) | | | 147,362,874 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 98,995,737 | | | $ | 1,521,615,876 | | | $ | 2,406,291,227 | | | $ | 526,067,080 | | | $ | 400,074,001 | | | $ | 526,485,809 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 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 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.81 | | | $ | 79.57 | | | $ | 11.32 | | | $ | 10.06 | | | $ | 10.21 | | | $ | 16.05 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 9,552,233 | | | | 17,321,328 | | | | 190,661,950 | | | | 45,802,427 | | | | 32,296,415 | | | | 28,095,078 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 84,144,386 | | | $ | 1,378,245,403 | | | $ | 2,157,506,384 | | | $ | 460,643,248 | | | $ | 329,888,945 | | | $ | 450,787,579 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.75 | | | $ | 79.54 | | | $ | 11.25 | | | $ | 10.05 | | | $ | 10.20 | | | $ | 16.02 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,696,389 | | | | 1,802,447 | | | | 22,105,040 | | | | 6,511,960 | | | | 6,881,854 | | | | 4,723,828 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 14,851,351 | | | $ | 143,370,473 | | | $ | 248,784,843 | | | $ | 65,423,832 | | | $ | 70,185,056 | | | $ | 75,698,230 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 80,777,836 | | | $ | 1,162,540,840 | | | $ | 2,888,761,784 | | | $ | 525,088,826 | | | $ | 422,102,705 | | | $ | 379,347,992 | |
| $ | — | | | $ | 128,451 | | | $ | 738,500 | | | $ | — | | | $ | — | | | $ | — | |
| $ | — | | | $ | — | | | $ | 292,617,143 | | | $ | — | | | $ | 29,890,426 | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
For the Year Ended December 31, 2017
| | | | | | | | | | | | |
| | |
Hartford
Balanced HLS
Fund | | | Hartford
Capital Appreciation
HLS Fund | | | Hartford
Disciplined Equity
HLS Fund | |
Investment Income: | |
Dividends | | $ | 31,592,637 | | | $ | 81,786,307 | | | $ | 12,081,442 | |
Non-cash dividends | | | 693,402 | | | | 1,112,374 | | | | — | |
Interest | | | 26,060,936 | | | | 623,398 | | | | 53,247 | |
Other income | | | — | | | | — | | | | — | |
Less: Foreign tax withheld | | | (305,610 | ) | | | (1,861,680 | ) | | | — | |
| | | | | | | | | | | | |
Total investment income, net | | | 58,041,365 | | | | 81,660,399 | | | | 12,134,689 | |
| | | | | | | | | | | | |
Expenses: | |
Investment management fees | | | 14,497,948 | | | | 32,835,730 | | | | 4,969,384 | |
Administrative services fees | | | | | | | | | | | | |
Class IC | | | — | | | | 64,462 | | | | — | |
Transfer agent fees | | | | | | | | | | | | |
Class IA | | | 5,018 | | | | 7,555 | | | | 4,806 | |
Class IB | | | 671 | | | | 945 | | | | 663 | |
Class IC | | | — | | | | 43 | | | | — | |
Distribution fees | | | | | | | | | | | | |
Class IB | | | 687,736 | | | | 1,421,681 | | | | 206,318 | |
Class IC | | | — | | | | 64,462 | | | | — | |
Custodian fees | | | 18,697 | | | | 195,152 | | | | 2,592 | |
Registration and filing fees | | | 33,059 | | | | 47,105 | | | | 31,287 | |
Accounting services fees | | | 420,064 | | | | 859,032 | | | | 95,291 | |
Board of Directors’ fees | | | 66,412 | | | | 147,466 | | | | 19,326 | |
Audit fees | | | 37,667 | | | | 43,092 | | | | 27,332 | |
Other expenses | | | 282,009 | | | | 680,904 | | | | 158,666 | |
| | | | | | | | | | | | |
Total expenses (before waivers and fees paid indirectly) | | | 16,049,281 | | | | 36,367,629 | | | | 5,515,665 | |
| | | | | | | | | | | | |
Management fee waivers | | | (700,107 | ) | | | — | | | | — | |
Commission recapture | | | (645 | ) | | | (131,862 | ) | | | (4,732 | ) |
| | | | | | | | | | | | |
Total waivers and fees paid indirectly | | | (700,752 | ) | | | (131,862 | ) | | | (4,732 | ) |
| | | | | | | | | | | | |
Total expenses, net | | | 15,348,529 | | | | 36,235,767 | | | | 5,510,933 | |
| | | | | | | | | | | | |
Net Investment Income (Loss) | | | 42,692,836 | | | | 45,424,632 | | | | 6,623,756 | |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 174,056,659 | | | | 645,819,225 | | | | 66,444,070 | |
Net realized gain (loss) on futures contracts | | | (687,189 | ) | | | — | | | | (37,464 | ) |
Net realized gain (loss) on swap contracts | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (3,400,588 | ) | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | 16,339 | | | | (496,772 | ) | | | — | |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 173,385,809 | | | | 641,921,865 | | | | 66,406,606 | |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 121,580,459 | | | | 341,688,741 | | | | 61,943,262 | |
Net unrealized appreciation (depreciation) of futures contracts | | | 349,426 | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of swap contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (1,220,777 | ) | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 72,387 | | | | 244,396 | | | | — | |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 122,002,272 | | | | 340,712,360 | | | | 61,943,262 | |
| | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 295,388,081 | | | | 982,634,225 | | | | 128,349,868 | |
| | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 338,080,917 | | | $ | 1,028,058,857 | | | $ | 134,973,624 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 85,854,523 | | | $ | 6,806,860 | | | $ | 7,318,512 | | | $ | 3,060,635 | | | $ | 17,734 | | | $ | 32,044,197 | | | $ | 14,534,662 | |
| | — | | | | 18,377 | | | | — | | | | — | | | | — | | | | 2,434,701 | | | | — | |
| | 453,483 | | | | 49,974 | | | | 37,248 | | | | 76,245 | | | | 19,322,213 | | | | 277,952 | | | | 40,860 | |
| | — | | | | — | | | | 176 | | | | — | | | | — | | | | — | | | | — | |
| | (1,171,789 | ) | | | (321,411 | ) | | | (24,198 | ) | | | (27,400 | ) | | | — | | | | (3,555,519 | ) | | | (84,107 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 85,136,217 | | | | 6,553,800 | | | | 7,331,738 | | | | 3,109,480 | | | | 19,339,947 | | | | 31,201,331 | | | | 14,491,415 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 22,726,532 | | | | 3,598,446 | | | | 8,765,796 | | | | 2,797,868 | | | | 2,189,266 | | | | 9,731,119 | | | | 13,511,146 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | 76,659 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5,307 | | | | 4,600 | | | | 7,170 | | | | 4,803 | | | | 4,033 | | | | 6,556 | | | | 7,509 | |
| | 750 | | | | 928 | | | | 811 | | | | 790 | | | | 1,267 | | | | 820 | | | | 389 | |
| | — | | | | — | | | | 173 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,083,554 | | | | 200,920 | | | | 359,181 | | | | 117,923 | | | | 186,810 | | | | 391,972 | | | | 250,085 | |
| | — | | | | — | | | | 76,659 | | | | — | | | | — | | | | — | | | | — | |
| | 18,118 | | | | 15,366 | | | | 16,170 | | | | 10,283 | | | | 2,159 | | | | 87,988 | | | | 10,095 | |
| | 33,919 | | | | 31,094 | | | | 62,957 | | | | 31,936 | | | | 30,385 | | | | 32,657 | | | | 38,193 | |
| | 490,134 | | | | 67,112 | | | | 259,974 | | | | 46,775 | | | | 43,785 | | | | 198,377 | | | | 283,050 | |
| | 99,124 | | | | 13,362 | | | | 40,401 | | | | 9,511 | | | | 8,954 | | | | 39,072 | | | | 56,398 | |
| | 31,255 | | | | 28,917 | | | | 24,668 | | | | 29,555 | | | | 34,676 | | | | 44,290 | | | | 28,878 | |
| | 436,389 | | | | 135,677 | | | | 333,313 | | | | 39,042 | | | | 85,775 | | | | 260,579 | | | | 168,833 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 24,925,082 | | | | 4,096,422 | | | | 10,023,932 | | | | 3,088,486 | | | | 2,587,110 | | | | 10,793,430 | | | | 14,354,576 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (29,650 | ) | | | (7,787 | ) | | | (48,831 | ) | | | (710 | ) | | | — | | | | (39,278 | ) | | | (24,553 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (29,650 | ) | | | (7,787 | ) | | | (48,831 | ) | | | (710 | ) | | | — | | | | (39,278 | ) | | | (24,553 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 24,895,432 | | | | 4,088,635 | | | | 9,975,101 | | | | 3,087,776 | | | | 2,587,110 | | | | 10,754,152 | | | | 14,330,023 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 60,240,785 | | | | 2,465,165 | | | | (2,643,363 | ) | | | 21,704 | | | | 16,752,837 | | | | 20,447,179 | | | | 161,392 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 372,551,956 | | | | 43,990,724 | | | | 216,018,084 | | | | 20,678,390 | | | | 4,652,066 | | | | 113,758,326 | | | | 232,241,888 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | 748,401 | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | (258,036 | ) | | | (1,419,611 | ) | | | — | |
| | 18,412 | | | | (32,206 | ) | | | (50,326 | ) | | | (152 | ) | | | (9,626 | ) | | | 57,368 | | | | (612 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
372,570,368 |
| | | 43,958,518 | | | | 215,967,758 | | | | 20,678,238 | | | | 5,132,805 | | | | 112,396,083 | | | | 232,241,276 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 160,613,300 | | | | 86,396,905 | | | | 164,600,072 | | | | 42,616,676 | | | | 1,088,808 | | | | 178,471,070 | | | | 210,733,817 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | (302,502 | ) | | | — | | | | — | |
| | — | | | | — | | | | — | | | | — | | | | (19,105 | ) | | | — | | | | — | |
| | 9,509 | | | | 55,897 | | | | 5,189 | | | | 1,267 | | | | 2,519 | | | | 343,076 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
160,622,809 |
| | | 86,452,802 | | | | 164,605,261 | | | | 42,617,943 | | | | 769,720 | | | | 178,814,146 | | | | 210,733,817 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 533,193,177 | | | | 130,411,320 | | | | 380,573,019 | | | | 63,296,181 | | | | 5,902,525 | | | | 291,210,229 | | | | 442,975,093 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 593,433,962 | | | $ | 132,876,485 | | | $ | 377,929,656 | | | $ | 63,317,885 | | | $ | 22,655,362 | | | $ | 311,657,408 | | | $ | 443,136,485 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2017
| | | | | | | | | | | | |
| | | Hartford
MidCap Value
HLS Fund | | | Hartford
Small Cap Growth
HLS Fund | | |
Hartford
Small Company
HLS Fund | |
Investment Income: | |
Dividends | | $ | 4,666,525 | | | $ | 7,473,630 | | | $ | 3,079,923 | |
Non-cash dividends | | | — | | | | — | | | | — | |
Interest | | | 40,398 | | | | 92,360 | | | | 49,395 | |
Other income | | | — | | | | — | | | | — | |
Less: Foreign tax withheld | | | (46,691 | ) | | | — | | | | — | |
| | | | | | | | | | | | |
Total investment income, net | | | 4,660,232 | | | | 7,565,990 | | | | 3,129,318 | |
| | | | | | | | | | | | |
Expenses: | |
Investment management fees | | | 2,988,263 | | | | 7,834,554 | | | | 5,166,179 | |
Transfer agent fees | |
Class IA | | | 3,922 | | | | 6,184 | | | | 5,306 | |
Class IB | | | 1,196 | | | | 1,595 | | | | 511 | |
Class IC | | | — | | | | — | | | | — | |
Distribution fees | |
Class IB | | | 218,170 | | | | 665,382 | | | | 155,616 | |
Custodian fees | | | 8,657 | | | | 9,066 | | | | 11,302 | |
Registration and filing fees | | | 30,600 | | | | 39,032 | | | | 32,588 | |
Accounting services fees | | | 52,295 | | | | 232,037 | | | | 127,765 | |
Board of Directors’ fees | | | 10,654 | | | | 36,272 | | | | 21,242 | |
Audit fees | | | 26,645 | | | | 26,395 | | | | 30,661 | |
Other expenses | | | 86,642 | | | | 180,028 | | | | 117,903 | |
| | | | | | | | | | | | |
Total expenses (before waivers and fees paid indirectly) | | | 3,427,044 | | | | 9,030,545 | | | | 5,669,073 | |
| | | | | | | | | | | | |
Commission recapture | | | (6,521 | ) | | | (9,676 | ) | | | (28,490 | ) |
| | | | | | | | | | | | |
Total waivers and fees paid indirectly | | | (6,521 | ) | | | (9,676 | ) | | | (28,490 | ) |
| | | | | | | | | | | | |
Total expenses, net | | | 3,420,523 | | | | 9,020,869 | | | | 5,640,583 | |
| | | | | | | | | | | | |
Net Investment Income (Loss) | | | 1,239,709 | | | | (1,454,879 | ) | | | (2,511,265 | ) |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 23,405,710 | | | | 99,838,478 | | | | 136,476,941 | |
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 | | | (4,447 | ) | | | — | | | | (8,291 | ) |
| | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 23,401,263 | | | | 99,838,478 | | | | 136,468,650 | |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 22,238,716 | | | | 137,585,826 | | | | 35,311,309 | |
Net unrealized appreciation (depreciation) of purchased options contracts | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of futures 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 | | | 904 | | | | — | | | | — | |
| | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 22,239,620 | | | | 137,585,826 | | | | 35,311,309 | |
| | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 45,640,883 | | | | 237,424,304 | | | | 171,779,959 | |
| | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 46,880,592 | | | $ | 235,969,425 | | | $ | 169,268,694 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,716,026 | | | $ | 33,914,226 | | | $ | 136,233 | | | $ | — | | | $ | — | | | $ | 12,057,618 | |
| | 83,903 | | | | — | | | | — | | | | — | | | | — | | | | 257,948 | |
| | 5,704 | | | | 186,479 | | | | 85,426,226 | | | | 8,144,189 | | | | 9,779,219 | | | | 39,612 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | (3,315 | ) | | | (172,989 | ) | | | (70,130 | ) | | | (132 | ) | | | — | | | | (102,918 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 1,802,318 | | | | 33,927,716 | | | | 85,492,329 | | | | 8,144,057 | | | | 9,779,219 | | | | 12,252,260 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 791,188 | | | | 7,128,322 | | | | 11,446,948 | | | | 2,249,710 | | | | 1,915,320 | | | | 3,881,396 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 4,226 | | | | 4,853 | | | | 5,211 | | | | 4,789 | | | | 4,301 | | | | 4,862 | |
| | 778 | | | | 512 | | | | 608 | | | | 705 | | | | 927 | | | | 833 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 38,478 | | | | 354,470 | | | | 639,322 | | | | 180,574 | | | | 188,661 | | | | 189,884 | |
| | — | | | | 8,571 | | | | 36,954 | | | | 2,862 | | | | 2,895 | | | | 3,634 | |
| | 33,046 | | | | 31,459 | | | | 33,448 | | | | 31,559 | | | | 32,986 | | | | 32,097 | |
| | 13,846 | | | | 208,159 | | | | 440,380 | | | | 78,740 | | | | 59,588 | | | | 72,726 | |
| | 2,816 | | | | 42,270 | | | | 70,025 | | | | 16,324 | | | | 12,322 | | | | 14,797 | |
| | 24,715 | | | | 28,474 | | | | 41,172 | | | | 43,796 | | | | 21,483 | | | | 27,034 | |
| | 35,860 | | | | 242,450 | | | | 380,471 | | | | 108,023 | | | | 107,687 | | | | 106,742 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 944,953 | | | | 8,049,540 | | | | 13,094,539 | | | | 2,717,082 | | | | 2,346,170 | | | | 4,334,005 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (17 | ) | | | — | | | | — | | | | — | | | | (908 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (17 | ) | | | — | | | | — | | | | — | | | | (908 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | 944,953 | | | | 8,049,523 | | | | 13,094,539 | | | | 2,717,082 | | | | 2,346,170 | | | | 4,333,097 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 857,365 | | | | 25,878,193 | | | | 72,397,790 | | | | 5,426,975 | | | | 7,433,049 | | | | 7,919,163 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 8,513,724 | | | | 127,970,955 | | | | 34,119,755 | | | | 110,447 | | | | (1,943,451 | ) | | | 43,231,817 | |
| | — | | | | — | | | | 479,287 | | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 7,587,676 | | | | — | | | | (1,128,902 | ) | | | — | |
| | — | | | | — | | | | (55,730 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | 3,831,610 | | | | — | | | | 543,143 | | | | — | |
| | — | | | | — | | | | 330,232 | | | | — | | | | — | | | | — | |
| | — | | | | (16,885 | ) | | | 631,908 | | | | — | | | | — | | | | 336 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 8,513,724 | | | | 127,954,070 | | | | 46,924,738 | | | | 110,447 | | | | (2,529,210 | ) | | | 43,232,153 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 3,773,225 | | | | 115,280,500 | | | | 17,228,200 | | | | (117,494 | ) | | | 1,221,230 | | | | 23,105,297 | |
| | — | | | | — | | | | (469,059 | ) | | | — | | | | — | | | | — | |
| | — | | | | — | | | | (1,652,213 | ) | | | — | | | | 10,785 | | | | — | |
| | — | | | | — | | | | (8,050,546 | ) | | | — | | | | (482,589 | ) | | | — | |
| | — | | | | — | | | | (3,976,407 | ) | | | — | | | | — | | | | — | |
| | — | | | | 81,360 | | | | (16,231 | ) | | | — | | | | — | | | | 16,224 | |
| | | | | | | | | | | | | | | | | | | | | | |
| 3,773,225 | | | | 115,361,860 | | | | 3,063,744 | | | | (117,494 | ) | | | 749,426 | | | | 23,121,521 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 12,286,949 | | | | 243,315,930 | | | | 49,988,482 | | | | (7,047 | ) | | | (1,779,784 | ) | | | 66,353,674 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 13,144,314 | | | $ | 269,194,123 | | | $ | 122,386,272 | | | $ | 5,419,928 | | | $ | 5,653,265 | | | $ | 74,272,837 | |
| | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | | | | | | |
| | | Hartford Balanced
HLS Fund | |
| | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
Operations: | |
Net investment income (loss) | | $ | 42,692,836 | | | $ | 48,507,412 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 173,385,809 | | | | 121,535,739 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 122,002,272 | | | | (31,380,933 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 338,080,917 | | | | 138,662,218 | |
| | | | | | | | |
Distributions to Shareholders: | |
From net investment income | |
Class IA | | | (47,464,119 | ) | | | (57,374,388 | ) |
Class IB | | | (5,534,060 | ) | | | (6,967,476 | ) |
Class IC | | | — | | | | — | |
| | | | | | | | |
Total from net investment income | | | (52,998,179 | ) | | | (64,341,864 | ) |
| | | | | | | | |
From net realized gain on investments | |
Class IA | | | — | | | | — | |
Class IB | | | — | | | | — | |
Class IC | | | — | | | | — | |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | — | |
| | | | | | | | |
Total distributions | | | (52,998,179 | ) | | | (64,341,864 | ) |
| | | | | | | | |
Capital Share Transactions: | |
Sold | | | 27,191,961 | | | | 16,656,289 | |
Issued on reinvestment of distributions | | | 52,998,179 | | | | 64,341,864 | |
Redeemed | | | (311,772,955 | ) | | | (347,720,604 | ) |
| | | | | | | | |
Net (decrease) from capital share transactions | | | (231,582,815 | ) | | | (266,722,451 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 53,499,923 | | | | (192,402,097 | ) |
| | | | | | | | |
Net Assets: | |
Beginning of period | | | 2,319,481,115 | | | | 2,511,883,212 | |
| | | | | | | | |
End of period | | $ | 2,372,981,038 | | | $ | 2,319,481,115 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 975,147 | | | $ | 11,750,519 | |
| | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 45,424,632 | | | $ | 53,795,941 | | | $ | 6,623,756 | | | $ | 5,052,429 | | | $ | 60,240,785 | | | $ | 63,831,553 | | | $ | 2,465,165 | | | $ | 2,220,012 | |
| | 641,921,865 | | | | 79,277,863 | | | | 66,406,606 | | | | 65,702,486 | | | | 372,570,368 | | | | 221,827,116 | | | | 43,958,518 | | | | 22,209,878 | |
| | 340,712,360 | | | | 145,100,780 | | | | 61,943,262 | | | | (33,370,153 | ) | | | 160,622,809 | | | | 165,887,284 | | | | 86,452,802 | | | | (17,164,817 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,028,058,857 | | | | 278,174,584 | | | | 134,973,624 | | | | 37,384,762 | | | | 593,433,962 | | | | 451,545,953 | | | | 132,876,485 | | | | 7,265,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (47,670,675 | ) | | | (50,908,581 | ) | | | (5,455,397 | ) | | | (5,255,939 | ) | | | (50,138,723 | ) | | | (58,859,706 | ) | | | (2,060,335 | ) | | | (2,421,454 | ) |
| | (4,773,231 | ) | | | (4,835,762 | ) | | | (551,499 | ) | | | (523,839 | ) | | | (5,905,716 | ) | | | (7,559,424 | ) | | | (217,828 | ) | | | (298,138 | ) |
| | (188,398 | ) | | | (145,082 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (52,632,304 | ) | | | (55,889,425 | ) | | | (6,006,896 | ) | | | (5,779,778 | ) | | | (56,044,439 | ) | | | (66,419,130 | ) | | | (2,278,163 | ) | | | (2,719,592 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (232,329,918 | ) | | | (479,266,149 | ) | | | (63,822,541 | ) | | | (75,833,496 | ) | | | (211,321,994 | ) | | | (321,363,600 | ) | | | (18,738,294 | ) | | | (38,316,082 | ) |
| | (30,241,181 | ) | | | (55,348,578 | ) | | | (8,899,981 | ) | | | (10,746,897 | ) | | | (29,746,780 | ) | | | (48,363,667 | ) | | | (3,764,027 | ) | | | (8,316,510 | ) |
| | (1,534,584 | ) | | | (1,930,573 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (264,105,683 | ) | | | (536,545,300 | ) | | | (72,722,522 | ) | | | (86,580,393 | ) | | | (241,068,774 | ) | | | (369,727,267 | ) | | | (22,502,321 | ) | | | (46,632,592 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (316,737,987 | ) | | | (592,434,725 | ) | | | (78,729,418 | ) | | | (92,360,171 | ) | | | (297,113,213 | ) | | | (436,146,397 | ) | | | (24,780,484 | ) | | | (49,352,184 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 80,762,993 | | | | 92,295,115 | | | | 6,573,433 | | | | 20,699,516 | | | | 104,640,250 | | | | 134,212,828 | | | | 35,466,468 | | | | 16,810,513 | |
| | 316,737,987 | | | | 592,434,725 | | | | 78,729,418 | | | | 92,360,171 | | | | 297,113,212 | | | | 436,146,397 | | | | 24,780,485 | | | | 49,352,184 | |
| | (1,186,680,309 | ) | | | (1,594,446,333 | ) | | | (112,526,090 | ) | | | (130,281,451 | ) | | | (530,411,682 | ) | | | (575,274,237 | ) | | | (71,226,539 | ) | | | (83,230,273 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (789,179,329 | ) | | | (909,716,493 | ) | | | (27,223,239 | ) | | | (17,221,764 | ) | | | (128,658,220 | ) | | | (4,915,012 | ) | | | (10,979,586 | ) | | | (17,067,576 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (77,858,459 | ) | | | (1,223,976,634 | ) | | | 29,020,967 | | | | (72,197,173 | ) | | | 167,662,529 | | | | 10,484,544 | | | | 97,116,415 | | | | (59,154,687 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 5,135,054,473 | | | | 6,359,031,107 | | | | 668,393,510 | | | | 740,590,683 | | | | 3,451,988,253 | | | | 3,441,503,709 | | | | 419,906,106 | | | | 479,060,793 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 5,057,196,014 | | | $ | 5,135,054,473 | | | $ | 697,414,477 | | | $ | 668,393,510 | | | $ | 3,619,650,782 | | | $ | 3,451,988,253 | | | $ | 517,022,521 | | | $ | 419,906,106 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 3,396,603 | | | $ | 9,234,251 | | | $ | 490,218 | | | $ | 181,803 | | | $ | 4,161,698 | | | $ | 406,191 | | | $ | 2,472,553 | | | $ | 2,331,234 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | (2,643,363 | ) | | $ | (1,888,178 | ) |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 215,967,758 | | | | 13,129,951 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 164,605,261 | | | | (18,177,806 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 377,929,656 | | | | (6,936,033 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | — | | | | (5,137,102 | ) |
Class IB | | | — | | | | (207,347 | ) |
Class IC | | | — | | | | (63,822 | ) |
| | | | | | | | |
Total from net investment income | | | — | | | | (5,408,271 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | (16,106,762 | ) | | | (169,379,777 | ) |
Class IB | | | (1,881,415 | ) | | | (20,295,840 | ) |
Class IC | | | (403,653 | ) | | | (3,608,835 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | (18,391,830 | ) | | | (193,284,452 | ) |
| | | | | | | | |
Total distributions | | | (18,391,830 | ) | | | (198,692,723 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 46,904,728 | | | | 160,464,745 | |
Issued on reinvestment of distributions | | | 18,391,829 | | | | 198,692,723 | |
Redeemed | | | (218,264,877 | ) | | | (226,639,753 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | (152,968,320 | ) | | | 132,517,715 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 206,569,506 | | | | (73,111,041 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 1,302,875,757 | | | | 1,375,986,798 | |
| | | | | | | | |
End of period | | $ | 1,509,445,263 | | | $ | 1,302,875,757 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | (1,183,092 | ) | | $ | (341,766 | ) |
| | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,704 | | | $ | 43,282 | | | $ | 16,752,837 | | | $ | 17,926,201 | | | $ | 20,447,179 | | | $ | 21,375,189 | | | $ | 161,392 | | | $ | 2,544,912 | |
| | 20,678,238 | | | | 51,905,351 | | | | 5,132,805 | | | | (8,357,888 | ) | | | 112,396,083 | | | | (17,553,005 | ) | | | 232,241,276 | | | | 67,772,211 | |
| | 42,617,943 | | | | (87,833,573 | ) | | | 769,720 | | | | 33,937,976 | | | | 178,814,146 | | | | 9,302,116 | | | | 210,733,817 | | | | 125,224,671 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 63,317,885 | | | | (35,884,940 | ) | | | 22,655,362 | | | | 43,506,289 | | | | 311,657,408 | | | | 13,124,300 | | | | 443,136,485 | | | | 195,541,794 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (3,196 | ) | | | (9,786,913 | ) | | | (14,107,895 | ) | | | (15,598,376 | ) | | | (19,083,304 | ) | | | (17,922,412 | ) | | | — | | | | (2,990,801 | ) |
| | — | | | | (1,640,493 | ) | | | (4,345,488 | ) | | | (4,574,775 | ) | | | (1,824,269 | ) | | | (2,012,534 | ) | | | — | | | | (27,743 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (3,196 | ) | | | (11,427,406 | ) | | | (18,453,383 | ) | | | (20,173,151 | ) | | | (20,907,573 | ) | | | (19,934,946 | ) | | | — | | | | (3,018,544 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (42,554,097 | ) | | | (54,644,064 | ) | | | — | | | | — | | | | — | | | | — | | | | (94,658,887 | ) | | | (170,188,177 | ) |
| | (7,184,474 | ) | | | (10,078,753 | ) | | | — | | | | — | | | | — | | | | — | | | | (5,084,893 | ) | | | (9,620,889 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (49,738,571 | ) | | | (64,722,817 | ) | | | — | | | | — | | | | — | | | | — | | | | (99,743,780 | ) | | | (179,809,066 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (49,741,767 | ) | | | (76,150,223 | ) | | | (18,453,383 | ) | | | (20,173,151 | ) | | | (20,907,573 | ) | | | (19,934,946 | ) | | | (99,743,780 | ) | | | (182,827,610 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 47,830,448 | | | | 39,480,807 | | | | 16,051,926 | | | | 30,368,396 | | | | 238,539,464 | | | | 118,384,245 | | | | 371,154,622 | | | | 147,356,841 | |
| | 49,741,767 | | | | 76,150,223 | | | | 18,453,383 | | | | 20,173,151 | | | | 20,907,573 | | | | 19,934,946 | | | | 99,743,781 | | | | 182,827,610 | |
| | (66,393,210 | ) | | | (136,380,062 | ) | | | (59,002,412 | ) | | | (80,415,801 | ) | | | (203,781,844 | ) | | | (215,191,291 | ) | | | (413,993,325 | ) | | | (280,412,628 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 31,179,005 | | | | (20,749,032 | ) | | | (24,497,103 | ) | | | (29,874,254 | ) | | | 55,665,193 | | | | (76,872,100 | ) | | | 56,905,078 | | | | 49,771,823 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 44,755,123 | | | | (132,784,195 | ) | | | (20,295,124 | ) | | | (6,541,116 | ) | | | 346,415,028 | | | | (83,682,746 | ) | | | 400,297,783 | | | | 62,486,007 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 290,643,078 | | | | 423,427,273 | | | | 321,784,994 | | | | 328,326,110 | | | | 1,234,105,192 | | | | 1,317,787,938 | | | | 1,814,596,258 | | | | 1,752,110,251 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 335,398,201 | | | $ | 290,643,078 | | | $ | 301,489,870 | | | $ | 321,784,994 | | | $ | 1,580,520,220 | | | $ | 1,234,105,192 | | | $ | 2,214,894,041 | | | $ | 1,814,596,258 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | (135,601 | ) | | $ | (207,735 | ) | | $ | 16,495,652 | | | $ | 18,064,801 | | | $ | 26,985,652 | | | $ | 20,907,509 | | | $ | (201,237 | ) | | $ | 20,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | 1,239,709 | | | $ | 1,996,770 | |
Net realized gain (loss) on investments and foreign currency transactions | | | 23,401,263 | | | | 25,084,498 | |
Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | 22,239,620 | | | | 16,075,619 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 46,880,592 | | | | 43,156,887 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
From net investment income | | | | | | | | |
Class IA | | | (1,563,056 | ) | | | (1,470,383 | ) |
Class IB | | | (264,904 | ) | | | (198,851 | ) |
| | | | | | | | |
Total from net investment income | | | (1,827,960 | ) | | | (1,669,234 | ) |
| | | | | | | | |
From net realized gain on investments | | | | | | | | |
Class IA | | | (18,745,883 | ) | | | (37,432,863 | ) |
Class IB | | | (5,766,845 | ) | | | (11,765,923 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | (24,512,728 | ) | | | (49,198,786 | ) |
| | | | | | | | |
Total distributions | | | (26,340,688 | ) | | | (50,868,020 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 6,974,933 | | | | 6,844,502 | |
Issued on reinvestment of distributions | | | 26,340,688 | | | | 50,868,020 | |
Redeemed | | | (58,594,091 | ) | | | (53,319,463 | ) |
| | | | | | | | |
Net increase (decrease) from capital share transactions | | | (25,278,470 | ) | | | 4,393,059 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (4,738,566 | ) | | | (3,318,074 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 379,576,036 | | | | 382,894,110 | |
| | | | | | | | |
End of period | | $ | 374,837,470 | | | $ | 379,576,036 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 1,237,586 | | | $ | 1,962,506 | |
| | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | (1,454,879 | ) | | $ | 1,334,994 | | | $ | (2,511,265 | ) | | $ | (1,080,338 | ) | | $ | 857,365 | | | $ | 1,102,714 | | | $ | 25,878,193 | | | $ | 25,417,540 | |
| | 99,838,478 | | | | (13,449,629 | ) | | | 136,468,650 | | | | (87,580,547 | ) | | | 8,513,724 | | | | 2,737,265 | | | | 127,954,070 | | | | 123,117,444 | |
| | 137,585,826 | | | | 143,613,864 | | | | 35,311,309 | | | | 85,596,013 | | | | 3,773,225 | | | | 9,923,513 | | | | 115,361,860 | | | | (42,576,110 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 235,969,425 | | | | 131,499,229 | | | | 169,268,694 | | | | (3,064,872 | ) | | | 13,144,314 | | | | 13,763,492 | | | | 269,194,123 | | | | 105,958,874 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (446,628 | ) | | | (1,321,239 | ) | | | — | | | | — | | | | (703,323 | ) | | | (1,054,630 | ) | | | (23,707,000 | ) | | | (24,394,377 | ) |
| | — | | | | — | | | | — | | | | — | | | | (87,957 | ) | | | (154,757 | ) | | | (2,111,519 | ) | | | (2,241,103 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (446,628 | ) | | | (1,321,239 | ) | | | — | | | | — | | | | (791,280 | ) | | | (1,209,387 | ) | | | (25,818,519 | ) | | | (26,635,480 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (40,160,906 | ) | | | — | | | | (87,123,722 | ) | | | (2,584,547 | ) | | | (4,735,022 | ) | | | — | | | | — | |
| | — | | | | (9,586,481 | ) | | | — | | | | (9,078,306 | ) | | | (462,535 | ) | | | (928,660 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (49,747,387 | ) | | | — | | | | (96,202,028 | ) | | | (3,047,082 | ) | | | (5,663,682 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (446,628 | ) | | | (51,068,626 | ) | | | — | | | | (96,202,028 | ) | | | (3,838,362 | ) | | | (6,873,069 | ) | | | (25,818,519 | ) | | | (26,635,480 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 341,821,699 | | | | 187,804,800 | | | | 35,844,453 | | | | 83,849,278 | | | | 6,228,487 | | | | 13,915,582 | | | | 7,902,822 | | | | 17,279,764 | |
| | 391,968 | | | | 45,817,119 | | | | — | | | | 96,202,028 | | | | 3,838,362 | | | | 6,873,069 | | | | 25,818,519 | | | | 26,635,480 | |
| | (441,836,449 | ) | | | (238,282,637 | ) | | | (504,062,833 | ) | | | (389,910,318 | ) | | | (25,253,892 | ) | | | (18,682,136 | ) | | | (208,424,356 | ) | | | (214,128,274 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (99,622,782 | ) | | | (4,660,718 | ) | | | (468,218,380 | ) | | | (209,859,012 | ) | | | (15,187,043 | ) | | | 2,106,515 | | | | (174,703,015 | ) | | | (170,213,030 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 135,900,015 | | | | 75,769,885 | | | | (298,949,686 | ) | | | (309,125,912 | ) | | | (5,881,091 | ) | | | 8,996,938 | | | | 68,672,589 | | | | (90,889,636 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,199,132,307 | | | | 1,123,362,422 | | | | 907,152,414 | | | | 1,216,278,326 | | | | 104,876,828 | | | | 95,879,890 | | | | 1,452,943,287 | | | | 1,543,832,923 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 1,335,032,322 | | | $ | 1,199,132,307 | | | $ | 608,202,728 | | | $ | 907,152,414 | | | $ | 98,995,737 | | | $ | 104,876,828 | | | $ | 1,521,615,876 | | | $ | 1,452,943,287 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | 1,097,782 | | | $ | — | | | $ | — | | | $ | 923,002 | | | $ | 1,102,708 | | | $ | 893,471 | | | $ | 724,929 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
Operations: | |
Net investment income (loss) | | $ | 72,397,790 | | | $ | 82,471,555 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 46,924,738 | | | | (32,141,795 | ) |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 3,063,744 | | | | 67,926,043 | |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 122,386,272 | | | | 118,255,803 | |
| | | | | | | | |
Distributions to Shareholders: | |
From net investment income | |
Class IA | | | (64,104,099 | ) | | | (59,076,184 | ) |
Class IB | | | (6,840,084 | ) | | | (6,394,079 | ) |
| | | | | | | | |
Total from net investment income | | | (70,944,183 | ) | | | (65,470,263 | ) |
| | | | | | | | |
From net realized gain on investments | |
Class IA | | | — | | | | (8,917,940 | ) |
Class IB | | | — | | | | (1,089,963 | ) |
| | | | | | | | |
Total from net realized gain on investments | | | — | | | | (10,007,903 | ) |
| | | | | | | | |
Total distributions | | | (70,944,183 | ) | | | (75,478,166 | ) |
| | | | | | | | |
Capital Share Transactions: | |
Sold | | | 133,249,068 | | | | 108,664,980 | |
Issued on reinvestment of distributions | | | 70,944,183 | | | | 75,478,166 | |
Redeemed | | | (356,036,471 | ) | | | (463,514,702 | ) |
| | | | | | | | |
Net (decrease) from capital share transactions | | | (151,843,220 | ) | | | (279,371,556 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (100,401,131 | ) | | | (236,593,919 | ) |
| | | | | | | | |
Net Assets: | |
Beginning of period | | | 2,506,692,358 | | | | 2,743,286,277 | |
| | | | | | | | |
End of period | | $ | 2,406,291,227 | | | $ | 2,506,692,358 | |
| | | | | | | | |
Undistributed (distributions in excess of) net investment income | | $ | 89,462,062 | | | $ | 69,347,138 | |
| | | | | | | | |
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
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | | | For the
Year Ended
December 31,
2017 | | | For the
Year Ended
December 31,
2016 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 5,426,975 | | | $ | 3,758,059 | | | $ | 7,433,049 | | | $ | 8,073,460 | | | $ | 7,919,163 | | | $ | 9,222,617 | |
| | 110,447 | | | | 133,001 | | | | (2,529,210 | ) | | | 6,902,934 | | | | 43,232,153 | | | | 35,938,666 | |
| | (117,494 | ) | | | 1,981,446 | | | | 749,426 | | | | (6,553,709 | ) | | | 23,121,521 | | | | 20,356,805 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 5,419,928 | | | | 5,872,506 | | | | 5,653,265 | | | | 8,422,685 | | | | 74,272,837 | | | | 65,518,088 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (3,863,181 | ) | | | (2,551,645 | ) | | | (7,516,833 | ) | | | (7,582,207 | ) | | | (7,642,825 | ) | | | (7,538,457 | ) |
| | (353,222 | ) | | | (120,504 | ) | | | (1,395,249 | ) | | | (1,447,270 | ) | | | (1,096,859 | ) | | | (1,123,156 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (4,216,403 | ) | | | (2,672,149 | ) | | | (8,912,082 | ) | | | (9,029,477 | ) | | | (8,739,684 | ) | | | (8,661,613 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | (31,542,050 | ) | | | (55,148,630 | ) |
| | — | | | | — | | | | — | | | | — | | | | (5,401,252 | ) | | | (9,603,547 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | (36,943,302 | ) | | | (64,752,177 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (4,216,403 | ) | | | (2,672,149 | ) | | | (8,912,082 | ) | | | (9,029,477 | ) | | | (45,682,986 | ) | | | (73,413,790 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 40,599,916 | | | | 50,997,507 | | | | 25,399,365 | | | | 51,813,891 | | | | 12,186,616 | | | | 14,794,864 | |
| | 4,216,403 | | | | 2,672,149 | | | | 8,912,083 | | | | 9,029,477 | | | | 45,682,987 | | | | 73,413,790 | |
| | (131,702,061 | ) | | | (153,178,306 | ) | | | (79,206,757 | ) | | | (114,156,260 | ) | | | (84,180,318 | ) | | | (91,871,378 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (86,885,742 | ) | | | (99,508,650 | ) | | | (44,895,309 | ) | | | (53,312,892 | ) | | | (26,310,715 | ) | | | (3,662,724 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | (85,682,217 | ) | | | (96,308,293 | ) | | | (48,154,126 | ) | | | (53,919,684 | ) | | | 2,279,136 | | | | (11,558,426 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 611,749,297 | | | | 708,057,590 | | | | 448,228,127 | | | | 502,147,811 | | | | 524,206,673 | | | | 535,765,099 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 526,067,080 | | | $ | 611,749,297 | | | $ | 400,074,001 | | | $ | 448,228,127 | | | $ | 526,485,809 | | | $ | 524,206,673 | |
| | | | | | | | | | | | | | | | | | | | | | |
| $ | 5,554,675 | | | $ | 4,216,358 | | | $ | 8,420,308 | | | $ | 8,912,051 | | | $ | — | | | $ | 879,487 | |
| | | | | | | | | | | | | | | | | | | | | | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Balanced HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 27.46 | | | $ | 0.55 | | | $ | 3.72 | | | $ | 4.27 | | | $ | (0.71 | ) | | $ | — | | | $ | (0.71 | ) | | $ | 31.02 | | | | 15.59 | % | | $ | 2,095,246 | | | | 0.66 | % | | | 0.63 | % | | | 1.86 | % | | | 26 | % |
IB | | | 27.86 | | | | 0.48 | | | | 3.77 | | | | 4.25 | | | | (0.63 | ) | | | — | | | | (0.63 | ) | | | 31.48 | | | | 15.30 | | | | 277,735 | | | | 0.91 | | | | 0.88 | | | | 1.61 | | | | 26 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 26.62 | | | $ | 0.56 | | | $ | 1.05 | | | $ | 1.61 | | | $ | (0.77 | ) | | $ | — | | | $ | (0.77 | ) | | $ | 27.46 | | | | 6.04 | % | | $ | 2,043,556 | | | | 0.66 | % | | | 0.64 | % | | | 2.05 | % | | | 25 | % |
IB | | | 26.99 | | | | 0.50 | | | | 1.07 | | | | 1.57 | | | | (0.70 | ) | | | — | | | | (0.70 | ) | | | 27.86 | | | | 5.79 | | | | 275,925 | | | | 0.91 | | | | 0.89 | | | | 1.80 | | | | 25 | |
|
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 | | | | 0.65 | % | | | 0.63 | % | | | 1.87 | % | | | 18 | % |
IB | | | 27.45 | | | | 0.45 | | | | (0.47 | ) | | | (0.02 | ) | | | (0.44 | ) | | | — | | | | (0.44 | ) | | | 26.99 | | | | (0.07 | ) | | | 300,945 | | | | 0.90 | | | | 0.88 | | | | 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 | |
|
| Hartford Capital Appreciation HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 42.05 | | | $ | 0.43 | | | $ | 8.83 | | | $ | 9.26 | | | $ | (0.54 | ) | | $ | (2.61 | ) | | $ | (3.15 | ) | | $ | 48.16 | | | | 22.14 | % | | $ | 4,457,603 | | | | 0.68 | % | | | 0.68 | % | | | 0.91 | % | | | 75 | % |
IB | | | 41.50 | | | | 0.30 | | | | 8.70 | | | | 9.00 | | | | (0.41 | ) | | | (2.61 | ) | | | (3.02 | ) | | | 47.48 | | | | 21.82 | | | | 569,615 | | | | 0.93 | | | | 0.93 | | | | 0.66 | | | | 75 | |
IC | | | 41.76 | | | | 0.19 | | | | 8.74 | | | | 8.93 | | | | (0.32 | ) | | | (2.61 | ) | | | (2.93 | ) | | | 47.76 | | | | 21.50 | | | | 29,979 | | | | 1.18 | | | | 1.18 | | | | 0.41 | | | | 75 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 44.44 | | | $ | 0.41 | | | $ | 1.94 | | | $ | 2.35 | | | $ | (0.47 | ) | | $ | (4.27 | ) | | $ | (4.74 | ) | | $ | 42.05 | | | | 5.52 | % | | $ | 4,555,454 | | | | 0.68 | % | | | 0.68 | % | | | 0.97 | % | | | 103 | % |
IB | | | 43.93 | | | | 0.30 | | | | 1.90 | | | | 2.20 | | | | (0.36 | ) | | | (4.27 | ) | | | (4.63 | ) | | | 41.50 | | | | 5.24 | | | | 558,022 | | | | 0.93 | | | | 0.93 | | | | 0.72 | | | | 103 | |
IC | | | 44.21 | | | | 0.19 | | | | 1.92 | | | | 2.11 | | | | (0.29 | ) | | | (4.27 | ) | | | (4.56 | ) | | | 41.76 | | | | 4.99 | | | | 21,579 | | | | 1.18 | | | | 1.18 | | | | 0.46 | | | | 103 | |
|
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(4) | | | 60.21 | | | | 0.09 | | | | 3.53 | | | | 3.62 | | | | (0.43 | ) | | | (8.81 | ) | | | (9.24 | ) | | | 54.59 | | | | 5.97 | (5) | | | 3,453 | | | | 1.16 | (6) | | | 1.16 | (6) | | | 0.23 | (6) | | | 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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Disciplined Equity HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 14.30 | | | $ | 0.15 | | | $ | 2.83 | | | $ | 2.98 | | | $ | (0.14 | ) | | $ | (1.71 | ) | | $ | (1.85 | ) | | $ | 15.43 | | | | 21.92 | % | | $ | 613,037 | | | | 0.78 | % | | | 0.78 | % | | | 1.00 | % | | | 30 | % |
IB | | | 14.17 | | | | 0.11 | | | | 2.80 | | | | 2.91 | | | | (0.10 | ) | | | (1.71 | ) | | | (1.81 | ) | | | 15.27 | | | | 21.63 | | | | 84,377 | | | | 1.03 | | | | 1.03 | | | | 0.76 | | | | 30 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 15.58 | | | $ | 0.11 | | | $ | 0.77 | | | $ | 0.88 | | | $ | (0.13 | ) | | $ | (2.03 | ) | | $ | (2.16 | ) | | $ | 14.30 | | | | 5.76 | % | | $ | 587,089 | | | | 0.79 | % | | | 0.79 | % | | | 0.76 | % | | | 33 | % |
IB | | | 15.46 | | | | 0.08 | | | | 0.75 | | | | 0.83 | | | | (0.09 | ) | | | (2.03 | ) | | | (2.12 | ) | | | 14.17 | | | | 5.49 | | | | 81,304 | | | | 1.04 | | | | 1.04 | | | | 0.51 | | | | 33 | |
|
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 | |
|
| Hartford Dividend and Growth HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 22.10 | | | $ | 0.41 | | | $ | 3.48 | | | $ | 3.89 | | | $ | (0.38 | ) | | $ | (1.66 | ) | | $ | (2.04 | ) | | $ | 23.95 | | | | 18.36 | % | | $ | 3,179,540 | | | | 0.68 | % | | | 0.68 | % | | | 1.75 | % | | | 25 | % |
IB | | | 22.01 | | | | 0.35 | | | | 3.47 | | | | 3.82 | | | | (0.32 | ) | | | (1.66 | ) | | | (1.98 | ) | | | 23.85 | | | | 18.11 | | | | 440,111 | | | | 0.93 | | | | 0.93 | | | | 1.50 | | | | 25 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 22.09 | | | $ | 0.43 | | | $ | 2.67 | | | $ | 3.10 | | | $ | (0.44 | ) | | $ | (2.65 | ) | | $ | (3.09 | ) | | $ | 22.10 | | | | 14.89 | % | | $ | 3,013,788 | | | | 0.69 | % | | | 0.69 | % | | | 1.98 | % | | | 20 | % |
IB | | | 22.02 | | | | 0.38 | | | | 2.65 | | | | 3.03 | | | | (0.39 | ) | | | (2.65 | ) | | | (3.04 | ) | | | 22.01 | | | | 14.58 | | | | 438,200 | | | | 0.94 | | | | 0.94 | | | | 1.73 | | | | 20 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Global Growth HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 22.14 | | | $ | 0.14 | | | $ | 6.99 | | | $ | 7.13 | | | $ | (0.14 | ) | | $ | (1.24 | ) | | $ | (1.38 | ) | | $ | 27.89 | | | | 32.73 | % | | $ | 432,581 | | | | 0.81 | % | | | 0.81 | % | | | 0.56 | % | | | 58 | % |
IB | | | 21.95 | | | | 0.08 | | | | 6.91 | | | | 6.99 | | | | (0.07 | ) | | | (1.24 | ) | | | (1.31 | ) | | | 27.63 | | | | 32.37 | | | | 84,442 | | | | 1.06 | | | | 1.06 | | | | 0.31 | | | | 58 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 24.39 | | | $ | 0.13 | | | $ | 0.40 | | | $ | 0.53 | | | $ | (0.17 | ) | | $ | (2.61 | ) | | $ | (2.78 | ) | | $ | 22.14 | | | | 1.95 | % | | $ | 347,375 | | | | 0.82 | % | | | 0.82 | % | | | 0.55 | % | | | 65 | % |
IB | | | 24.19 | | | | 0.07 | | | | 0.39 | | | | 0.46 | | | | (0.09 | ) | | | (2.61 | ) | | | (2.70 | ) | | | 21.95 | | | | 1.71 | | | | 72,531 | | | | 1.07 | | | | 1.07 | | | | 0.30 | | | | 65 | |
|
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 | %(7) |
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 | (7) |
|
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 | |
|
| Hartford Growth Opportunities HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 29.83 | | | $ | (0.05 | ) | | $ | 9.09 | | | $ | 9.04 | | | $ | — | | | $ | (0.45 | ) | | $ | (0.45 | ) | | $ | 38.42 | | | | 30.45 | % | | $ | 1,326,201 | | | | 0.66 | % | | | 0.66 | % | | | (0.15 | )% | | | 99 | % |
IB | | | 28.74 | | | | (0.13 | ) | | | 8.75 | | | | 8.62 | | | | — | | | | (0.45 | ) | | | (0.45 | ) | | | 36.91 | | | | 30.14 | | | | 149,212 | | | | 0.91 | | | | 0.91 | | | | (0.40 | ) | | | 99 | |
IC | | | 29.43 | | | | (0.22 | ) | | | 8.95 | | | | 8.73 | | | | — | | | | (0.45 | ) | | | (0.45 | ) | | | 37.71 | | | | 29.80 | | | | 34,033 | | | | 1.16 | | | | 1.16 | | | | (0.65 | ) | | | 99 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 34.86 | | | $ | (0.04 | ) | | $ | 0.06 | (8) | | $ | 0.02 | | | $ | (0.15 | ) | | $ | (4.90 | ) | | $ | (5.05 | ) | | $ | 29.83 | | | | (0.49 | )% | | $ | 1,145,176 | | | | 0.65 | % | | | 0.65 | % | | | (0.11 | )% | | | 138 | % |
IB | | | 33.76 | | | | (0.11 | ) | | | 0.04 | (8) | | | (0.07 | ) | | | (0.05 | ) | | | (4.90 | ) | | | (4.95 | ) | | | 28.74 | | | | (0.77 | ) | | | 132,149 | | | | 0.90 | | | | 0.90 | | | | (0.35 | ) | | | 138 | |
IC | | | 34.57 | | | | (0.19 | ) | | | 0.04 | (8) | | | (0.15 | ) | | | (0.09 | ) | | | (4.90 | ) | | | (4.99 | ) | | | 29.43 | | | | (1.01 | ) | | | 25,550 | | | | 1.15 | | | | 1.15 | | | | (0.61 | ) | | | 138 | |
|
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 | %(9) |
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 | (9) |
IC(4) | | | 40.23 | | | | (0.10 | ) | | | 5.69 | | | | 5.59 | | | | (0.07 | ) | | | (7.00 | ) | | | (7.07 | ) | | | 38.75 | | | | 14.79 | (5) | | | 1,717 | | | | 1.14 | (6) | | | 1.14 | (6) | | | (0.37 | )(6) | | | 145 | (9) |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Healthcare HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 21.46 | | | $ | 0.01 | | | $ | 4.69 | | | $ | 4.70 | | | $ | — | | | $ | (3.70 | ) | | $ | (3.70 | ) | | $ | 22.46 | | | | 22.26 | % | | $ | 290,603 | | | | 0.89 | % | | | 0.89 | % | | | 0.04 | % | | | 18 | % |
IB | | | 20.60 | | | | (0.05 | ) | | | 4.50 | | | | 4.45 | | | | — | | | | (3.70 | ) | | | (3.70 | ) | | | 21.35 | | | | 21.96 | | | | 44,796 | | | | 1.14 | | | | 1.14 | | | | (0.21 | ) | | | 18 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 30.32 | | | $ | 0.01 | | | $ | (2.37 | ) | | $ | (2.36 | ) | | $ | (0.99 | ) | | $ | (5.51 | ) | | $ | (6.50 | ) | | $ | 21.46 | | | | (8.39 | )% | | $ | 246,494 | | | | 0.89 | % | | | 0.89 | % | | | 0.05 | % | | | 36 | % |
IB | | | 29.36 | | | | (0.05 | ) | | | (2.30 | ) | | | (2.35 | ) | | | (0.90 | ) | | | (5.51 | ) | | | (6.41 | ) | | | 20.60 | | | | (8.64 | ) | | | 44,149 | | | | 1.14 | | | | 1.14 | | | | (0.20 | ) | | | 36 | |
|
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 | |
|
| Hartford High Yield HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 8.11 | | | $ | 0.45 | | | $ | 0.15 | | | $ | 0.60 | | | $ | (0.51 | ) | | $ | — | | | $ | (0.51 | ) | | $ | 8.20 | | | | 7.60 | % | | $ | 230,101 | | | | 0.77 | % | | | 0.77 | % | | | 5.42 | % | | | 43 | % |
IB | | | 7.98 | | | | 0.42 | | | | 0.15 | | | | 0.57 | | | | (0.49 | ) | | | — | | | | (0.49 | ) | | | 8.06 | | | | 7.31 | | | | 71,389 | | | | 1.02 | | | | 1.02 | | | | 5.17 | | | | 43 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 7.55 | | | $ | 0.44 | | | $ | 0.62 | | | $ | 1.06 | | | $ | (0.50 | ) | | $ | — | | | $ | (0.50 | ) | | $ | 8.11 | | | | 14.25 | % | | $ | 244,212 | | | | 0.79 | % | | | 0.79 | % | | | 5.52 | % | | | 41 | % |
IB | | | 7.43 | | | | 0.41 | | | | 0.62 | | | | 1.03 | | | | (0.48 | ) | | | — | | | | (0.48 | ) | | | 7.98 | | | | 13.99 | | | | 77,573 | | | | 1.04 | | | | 1.04 | | | | 5.27 | | | | 41 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford International Opportunities HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 14.14 | | | $ | 0.24 | | | $ | 3.31 | | | $ | 3.55 | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 17.46 | | | | 25.25 | % | | $ | 1,418,078 | | | | 0.73 | % | | | 0.73 | % | | | 1.46 | % | | | 91 | % |
IB | | | 14.31 | | | | 0.21 | | | | 3.35 | | | | 3.56 | | | | (0.19 | ) | | | — | | | | (0.19 | ) | | | 17.68 | | | | 24.99 | | | | 162,442 | | | | 0.98 | | | | 0.98 | | | | 1.28 | | | | 91 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 14.19 | | | $ | 0.24 | | | $ | (0.06 | ) | | $ | 0.18 | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 14.14 | | | | 1.26 | % | | $ | 1,086,762 | | | | 0.76 | % | | | 0.76 | % | | | 1.74 | % | | | 95 | % |
IB | | | 14.36 | | | | 0.21 | | | | (0.07 | ) | | | 0.14 | | | | (0.19 | ) | | | — | | | | (0.19 | ) | | | 14.31 | | | | 0.94 | | | | 147,343 | | | | 1.01 | | | | 1.01 | | | | 1.50 | | | | 95 | |
|
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 | |
|
| Hartford MidCap HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 33.83 | | | $ | 0.01 | | | $ | 8.11 | | | $ | 8.12 | | | $ | — | | | $ | (1.85 | ) | | $ | (1.85 | ) | | $ | 40.10 | | | | 24.47 | % | | $ | 2,156,044 | | | | 0.70 | % | | | 0.70 | % | | | 0.02 | % | | | 36 | % |
IB | | | 33.17 | | | | (0.08 | ) | | | 7.94 | | | | 7.86 | | | | — | | | | (1.85 | ) | | | (1.85 | ) | | | 39.18 | | | | 24.17 | | | | 58,850 | | | | 0.95 | | | | 0.95 | | | �� | (0.23 | ) | | | 36 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 33.66 | | | $ | 0.05 | | | $ | 3.80 | | | $ | 3.85 | | | $ | (0.06 | ) | | $ | (3.62 | ) | | $ | (3.68 | ) | | $ | 33.83 | | | | 11.98 | % | | $ | 1,721,029 | | | | 0.71 | % | | | 0.71 | % | | | 0.16 | % | | | 32 | % |
IB | | | 33.11 | | | | (0.03 | ) | | | 3.72 | | | | 3.69 | | | | (0.01 | ) | | | (3.62 | ) | | | (3.63 | ) | | | 33.17 | | | | 11.69 | | | | 93,567 | | | | 0.96 | | | | 0.96 | | | | (0.09 | ) | | | 32 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford MidCap Value HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 12.00 | | | $ | 0.05 | | | $ | 1.47 | | | $ | 1.52 | | | $ | (0.07 | ) | | $ | (0.85 | ) | | $ | (0.92 | ) | | $ | 12.60 | | | | 13.47 | % | | $ | 287,688 | | | | 0.86 | % | | | 0.86 | % | | | 0.39 | % | | | 32 | % |
IB | | | 11.91 | | | | 0.02 | | | | 1.46 | | | | 1.48 | | | | (0.04 | ) | | | (0.85 | ) | | | (0.89 | ) | | | 12.50 | | | | 13.18 | | | | 87,149 | | | | 1.11 | | | | 1.11 | | | | 0.14 | | | | 32 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 12.33 | | | $ | 0.07 | | | $ | 1.40 | | | $ | 1.47 | | | $ | (0.07 | ) | | $ | (1.73 | ) | | $ | (1.80 | ) | | $ | 12.00 | | | | 12.82 | % | | $ | 289,872 | | | | 0.86 | % | | | 0.86 | % | | | 0.61 | % | | | 38 | % |
IB | | | 12.24 | | | | 0.04 | | | | 1.39 | | | | 1.43 | | | | (0.03 | ) | | | (1.73 | ) | | | (1.76 | ) | | | 11.91 | | | | 12.56 | | | | 89,704 | | | | 1.11 | | | | 1.11 | | | | 0.36 | | | | 38 | |
|
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 | |
|
| Hartford Small Cap Growth HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 26.77 | | | $ | (0.02 | ) | | $ | 5.39 | | | $ | 5.37 | | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) | | $ | 32.13 | | | | 20.07 | % | | $ | 960,690 | | | | 0.65 | % | | | 0.65 | % | | | (0.06 | )% | | | 51 | % |
IB | | | 26.12 | | | | (0.09 | ) | | | 5.25 | | | | 5.16 | | | | — | | | | — | | | | — | | | | 31.28 | | | | 19.75 | | | | 374,342 | | | | 0.90 | | | | 0.90 | | | | (0.31 | ) | | | 51 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 24.93 | | | $ | 0.04 | | | $ | 2.98 | | | $ | 3.02 | | | $ | (0.04 | ) | | $ | (1.14 | ) | | $ | (1.18 | ) | | $ | 26.77 | | | | 12.37 | % | | $ | 972,576 | | | | 0.65 | % | | | 0.65 | % | | | 0.17 | % | | | 51 | % |
IB | | | 24.38 | | | | (0.02 | ) | | | 2.90 | | | | 2.88 | | | | — | | | | (1.14 | ) | | | (1.14 | ) | | | 26.12 | | | | 12.08 | | | | 226,557 | | | | 0.90 | | | | 0.90 | | | | (0.08 | ) | | | 51 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Small Company HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 16.16 | | | $ | (0.06 | ) | | $ | 4.32 | | | $ | 4.26 | | | $ | — | | | $ | — | | | $ | — | | | $ | 20.42 | | | | 26.36 | % | | $ | 551,010 | | | | 0.78 | % | | | 0.78 | % | | | (0.33 | )% | | | 107 | % |
IB | | | 15.05 | | | | (0.10 | ) | | | 4.02 | | | | 3.92 | | | | — | | | | — | | | | — | | | | 18.97 | | | | 26.05 | | | | 57,193 | | | | 1.03 | | | | 1.03 | | | | (0.58 | ) | | | 107 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 17.52 | | | $ | (0.01 | ) | | $ | 0.33 | (8) | | $ | 0.32 | | | $ | — | | | $ | (1.68 | ) | | $ | (1.68 | ) | | $ | 16.16 | | | | 2.04 | % | | $ | 834,044 | | | | 0.76 | % | | | 0.76 | % | | | (0.08 | )% | | | 94 | % |
IB | | | 16.47 | | | | (0.05 | ) | | | 0.31 | (8) | | | 0.26 | | | | — | | | | (1.68 | ) | | | (1.68 | ) | | | 15.05 | | | | 1.81 | | | | 73,108 | | | | 1.01 | | | | 1.01 | | | | (0.34 | ) | | | 94 | |
|
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 | |
|
| Hartford Small/Mid Cap Equity HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 8.03 | | | $ | 0.08 | | | $ | 1.04 | | | $ | 1.12 | | | $ | (0.07 | ) | | $ | (0.27 | ) | | $ | (0.34 | ) | | $ | 8.81 | | | | 14.43 | % | | $ | 84,144 | | | | 0.92 | % | | | 0.92 | % | | | 0.91 | % | | | 82 | % |
IB | | | 7.99 | | | | 0.05 | | | | 1.03 | | | | 1.08 | | | | (0.05 | ) | | | (0.27 | ) | | | (0.32 | ) | | | 8.75 | | | | 13.94 | | | | 14,851 | | | | 1.17 | | | | 1.17 | | | | 0.66 | | | | 82 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 7.45 | | | $ | 0.09 | | | $ | 1.09 | | | $ | 1.18 | | | $ | (0.11 | ) | | $ | (0.49 | ) | | $ | (0.60 | ) | | $ | 8.03 | | | | 16.48 | % | | $ | 87,752 | | | | 0.92 | % | | | 0.92 | % | | | 1.25 | % | | | 96 | % |
IB | | | 7.40 | | | | 0.07 | | | | 1.09 | | | | 1.16 | | | | (0.08 | ) | | | (0.49 | ) | | | (0.57 | ) | | | 7.99 | | | | 16.33 | | | | 17,125 | | | | 1.17 | | | | 1.17 | | | | 1.01 | | | | 96 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Stock HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 67.55 | | | $ | 1.30 | | | $ | 12.10 | | | $ | 13.40 | | | $ | (1.38 | ) | | $ | — | | | $ | (1.38 | ) | | $ | 79.57 | | | | 19.85 | % | | $ | 1,378,245 | | | | 0.52 | % | | | 0.52 | % | | | 1.76 | % | | | 14 | % |
IB | | | 67.53 | | | | 1.11 | | | | 12.08 | | | | 13.19 | | | | (1.18 | ) | | | — | | | | (1.18 | ) | | | 79.54 | | | | 19.54 | | | | 143,370 | | | | 0.77 | | | | 0.77 | | | | 1.51 | | | | 14 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 64.06 | | | $ | 1.14 | | | $ | 3.61 | | | $ | 4.75 | | | $ | (1.26 | ) | | $ | — | | | $ | (1.26 | ) | | $ | 67.55 | | | | 7.41 | % | | $ | 1,312,626 | | | | 0.52 | % | | | 0.52 | % | | | 1.72 | % | | | 29 | % |
IB | | | 64.03 | | | | 0.97 | | | | 3.61 | | | | 4.58 | | | | (1.08 | ) | | | — | | | | (1.08 | ) | | | 67.53 | | | | 7.14 | | | | 140,317 | | | | 0.77 | | | | 0.77 | | | | 1.47 | | | | 29 | |
|
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 | |
|
| Hartford Total Return Bond HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 11.09 | | | $ | 0.34 | | | $ | 0.23 | | | $ | 0.57 | | | $ | (0.34 | ) | | $ | — | | | $ | (0.34 | ) | | $ | 11.32 | | | | 5.16 | % | | $ | 2,157,506 | | | | 0.51 | % | | | 0.51 | % | | | 2.99 | % | | | 89 | % |
IB | | | 11.03 | | | | 0.31 | | | | 0.22 | | | | 0.53 | | | | (0.31 | ) | | | — | | | | (0.31 | ) | | | 11.25 | | | | 4.80 | | | | 248,785 | | | | 0.76 | | | | 0.76 | | | | 2.74 | | | | 89 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 10.93 | | | $ | 0.36 | | | $ | 0.13 | | | $ | 0.49 | | | $ | (0.29 | ) | | $ | (0.04 | ) | | $ | (0.33 | ) | | $ | 11.09 | | | | 4.49 | % | | $ | 2,244,505 | | | | 0.52 | % | | | 0.52 | % | | | 3.16 | % | | | 36 | % |
IB | | | 10.87 | | | | 0.33 | | | | 0.13 | | | | 0.46 | | | | (0.26 | ) | | | (0.04 | ) | | | (0.30 | ) | | | 11.03 | | | | 4.22 | | | | 262,187 | | | | 0.77 | | | | 0.77 | | | | 2.91 | | | | 36 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Ultrashort Bond HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 10.04 | | | $ | 0.10 | | | $ | — | (8) | | $ | 0.10 | | | $ | (0.08 | ) | | $ | — | | | $ | (0.08 | ) | | $ | 10.06 | | | | 1.01 | % | | $ | 460,643 | | | | 0.45 | % | | | 0.45 | % | | | 1.00 | % | | | 60 | % |
IB | | | 10.02 | | | | 0.07 | | | | 0.01 | (8) | | | 0.08 | | | | (0.05 | ) | | | — | | | | (0.05 | ) | | | 10.05 | | | | 0.80 | | | | 65,424 | | | | 0.70 | | | | 0.70 | | | | 0.75 | | | | 60 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 9.99 | | | $ | 0.06 | | | $ | 0.04 | | | $ | 0.10 | | | $ | (0.05 | ) | | $ | — | | | $ | (0.05 | ) | | $ | 10.04 | | | | 0.97 | % | | $ | 533,091 | | | | 0.45 | % | | | 0.45 | % | | | 0.61 | % | | | 51 | % |
IB | | | 9.97 | | | | 0.04 | | | | 0.02 | | | | 0.06 | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | 10.02 | | | | 0.64 | | | | 78,658 | | | | 0.70 | | | | 0.70 | | | | 0.35 | | | | 51 | |
|
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(10)(11) | |
IA | | $ | 10.00 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.00 | | | | — | % | | $ | 1,013,110 | | | | 0.45 | % | | | 0.21 | % | | | (0.02 | )% | | | 6 | %(12) |
IB | | | 10.00 | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | — | | | | — | | | | — | | | | 9.99 | | | | (0.10 | ) | | | 163,058 | | | | 0.49 | | | | 0.25 | | | | (0.06 | ) | | | 6 | (12) |
|
| Hartford U.S. Government Securities HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 10.30 | | | $ | 0.19 | | | $ | (0.05 | ) | | $ | 0.14 | | | $ | (0.23 | ) | | $ | — | | | $ | (0.23 | ) | | $ | 10.21 | | | | 1.32 | % | | $ | 329,889 | | | | 0.51 | % | | | 0.51 | % | | | 1.79 | % | | | 109 | % |
IB | | | 10.28 | | | | 0.16 | | | | (0.04 | ) | | | 0.12 | | | | (0.20 | ) | | | — | | | | (0.20 | ) | | | 10.20 | | | | 1.11 | | | | 70,185 | | | | 0.76 | | | | 0.76 | | | | 1.54 | | | | 109 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 10.34 | | | $ | 0.18 | | | $ | (0.02 | )(8) | | $ | 0.16 | | | $ | (0.20 | ) | | $ | — | | | $ | (0.20 | ) | | $ | 10.30 | | | | 1.54 | % | | $ | 368,740 | | | | 0.51 | % | | | 0.51 | % | | | 1.67 | % | | | 81 | % |
IB | | | 10.32 | | | | 0.15 | | | | (0.02 | )(8) | | | 0.13 | | | | (0.17 | ) | | | — | | | | (0.17 | ) | | | 10.28 | | | | 1.27 | | | | 79,489 | | | | 0.76 | | | | 0.76 | | | | 1.42 | | | | 81 | |
|
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 | |
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
Capital
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
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
| Hartford Value HLS Fund | |
For the Year Ended December 31, 2017 | |
IA | | $ | 15.27 | | | $ | 0.25 | | | $ | 1.98 | | | $ | 2.23 | | | $ | (0.28 | ) | | $ | (1.17 | ) | | $ | (1.45 | ) | | $ | 16.05 | | | | 15.44 | % | | $ | 450,788 | | | | 0.80 | % | | | 0.80 | % | | | 1.56 | % | | | 14 | % |
IB | | | 15.26 | | | | 0.21 | | | | 1.96 | | | | 2.17 | | | | (0.24 | ) | | | (1.17 | ) | | | (1.41 | ) | | | 16.02 | | | | 15.04 | | | | 75,698 | | | | 1.05 | | | | 1.05 | | | | 1.31 | | | | 14 | |
|
For the Year Ended December 31, 2016 | |
IA | | $ | 15.58 | | | $ | 0.28 | | | $ | 1.75 | | | $ | 2.03 | | | $ | (0.26 | ) | | $ | (2.08 | ) | | $ | (2.34 | ) | | $ | 15.27 | | | | 13.69 | % | | $ | 446,411 | | | | 0.80 | % | | | 0.80 | % | | | 1.83 | % | | | 15 | % |
IB | | | 15.57 | | | | 0.24 | | | | 1.75 | | | | 1.99 | | | | (0.22 | ) | | | (2.08 | ) | | | (2.30 | ) | | | 15.26 | | | | 13.46 | | | | 77,796 | | | | 1.05 | | | | 1.05 | | | | 1.58 | | | | 15 | |
|
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 | |
| (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 contract level or by a qualified pension or retirement plan. 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). |
| (4) | Commenced operations on April 30, 2014. |
| (7) | 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. |
| (8) | Per share amount was not in accord with the net realized and unrealized gain (loss) for the period because of the timing of transactions in shares of the Fund and the amount and timing of per-share net realized and unrealized gain (loss) on such shares. |
| (9) | 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. |
| (10) | Net investment income (loss) per share amounts have been calculated using the Securities and Exchange Commission method. |
| (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. |
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
December 31, 2017
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 December 31, 2017. 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 (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 pension or 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 if permitted in the variable insurance contract prospectus. In addition, participants in certain qualified pension or retirement plans may choose the Funds if permitted by their plans.
Each Fund is a diversified open-end management investment company. Each Fund applies specialized accounting and reporting standards under Accounting Standards 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. Each of 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/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 and Hartford Value HLS Fund is closed to new qualified pension and retirement plans until further notice, subject to certain exceptions. Small Cap Growth HLS Fund and Small Company HLS Fund are closed to new investors until further notice,
Notes to Financial Statements – (continued)
December 31, 2017
subject to certain exceptions. 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 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 interests), 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 options privately negotiated in the OTC market (“OTC options”) and such instruments that do not trade on an
Notes to Financial Statements – (continued)
December 31, 2017
exchange, values may be supplied by a pricing 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 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 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.
Notes to Financial Statements – (continued)
December 31, 2017
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
Quantitative Information about Level 3 Fair Value Measurements:
| | | | | | | | | | |
Security Type / Valuation Technique* | | Unobservable Input | | Input Value(s)
Range | | | Fair Value at
December 31, 2017 | |
Common Stock | | | | | | | | | | |
Cost | | Trade Price | | | $0.00 to $117.38 | | | $ | 7,842,309 | |
Model | | EV/Estimated Revenue | | | 3.08x to 3.77x | | | | 2,614,504 | |
Model | | EV/EBITDA | | | 9.1x | | | | 1,908,819 | |
| | | |
Preferred Stock | | | | | | | | | | |
Model | | EV/Estimated Revenue | | | 2.2x to 7.6x | | | | 19,967,174 | |
Cost | | Trade Price | | | $4.98 to $51.81 | | | | 60,939,379 | |
| | | |
Convertible Preferred Stock | | | | | | | | | | |
Cost | | Trade Price | | | $30.52 | | | | 3,114,261 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 96,386,446 | |
| | | | | | | | | | |
| | * | 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
Quantitative Information about Level 3 Fair Value Measurements:
| | | | | | | | | | |
Security Type /Valuation Technique* | | Unobservable Input | | Input Value(s)
Range | | | Fair Value at
December 31, 2017 | |
Common Stock | | | | | | | | | | |
Cost | | Trade Price | | | $4.02 | | | $ | 631,232 | |
Model | | EV/EBITDA | | | 5.8x to 9.1x | | | | 3,123,075 | |
Model | | EV/Estimated Revenue | | | 3.08x | | | | 1,291,858 | |
| | | |
Preferred Stock | | | | | | | | | | |
Model | | EV/Estimated Revenue | | | 2.2x to 7.6x | | | | 9,772,105 | |
Cost | | Trade Price | | | $35.37 | | | | 2,617,521 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 17,435,791 | |
| | | | | | | | | | |
| | * | 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, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts, inflation adjustments and
Notes to Financial Statements – (continued)
December 31, 2017
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. A Fund may also be subject to taxes withheld on foreign dividends from securities in which the Fund invests. The amount of any foreign taxes withheld and foreign tax expense is included on the accompanying Statements of Operations as a reduction to net investment income or 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 of the Fund. 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) | 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 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 December 31, 2017. |
Notes to Financial Statements – (continued)
December 31, 2017
| | b) | 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 December 31, 2017. |
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. These transactions are excluded from a Fund’s portfolio turnover rate. See each Fund’s Schedule of Investments, if applicable, for TBA commitments as of December 31, 2017.
| | c) | Senior Floating Rate Interests – Certain Funds may invest in senior floating rate interests. Senior floating rate interests generally 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 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 December 31, 2017.
| | d) | Mortgage Related and Other Asset Backed Securities – A Fund 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 December 31, 2017. |
Notes to Financial Statements – (continued)
December 31, 2017
| | e) | Inflation Indexed Bonds – A Fund 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 December 31, 2017. |
| 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 may be used in connection with settling purchases or sales of securities 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. Upon entering into a foreign currency contract, a Fund may be required to post margin equal to its outstanding exposure thereunder.
During the fiscal year ended December 31, 2017, Capital Appreciation HLS Fund, High Yield HLS Fund, International Opportunities HLS Fund, Total Return Bond HLS Fund and Value HLS Fund had engaged in Foreign Currency Contracts.
| | 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 risk 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 and an appropriate amount equal to the change in value (“variation margin”) is paid or received 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. |
During the fiscal year ended December 31, 2017, Balanced HLS Fund, Disciplined Equity HLS Fund, Total Return Bond HLS Fund and U.S. Government Securities HLS Fund had engaged in Futures Contracts.
| | 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 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 segregate or earmark cash or other liquid investments having, for written call options, a value equal to the greater of the exercise price or the market value of the underlying instrument and, for written put options, a value equal to the exercise price. Writing put options may increase a Fund’s exposure to the underlying instrument. Writing call options may decrease a Fund’s exposure to the underlying instrument. Premiums received from writing options that expire are |
Notes to Financial Statements – (continued)
December 31, 2017
| | 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 may increase a Fund’s exposure to the underlying instrument. Purchasing put options may decrease 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 OTC 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. |
During the fiscal year ended December 31, 2017, Total Return Bond HLS Fund had engaged in Options Contracts.
| | 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 through a central counterparty or derivatives clearing organization (“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 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. However, the Fund is still exposed to a certain amount of counterparty risk through the clearing broker and clearinghouse. The clearinghouse attempts to minimize this risk to its
Notes to Financial Statements – (continued)
December 31, 2017
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 credit risk through buying and selling credit protection on a specific issuer, asset or basket of assets. 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 year-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.
During the fiscal year ended December 31, 2017, High Yield HLS Fund, Total Return Bond HLS Fund and U.S. Government Securities HLS Fund had engaged in Credit Default Swap Contracts.
Interest Rate Swap Contracts – Certain Funds are subject to interest rate risk exposure in the normal course of pursuing its investment objectives. A Fund may use interest rate swaps to hedge interest rate and duration risk across a portfolio at particular duration points to maintain its ability to generate income at prevailing market rates. 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.
During the fiscal year ended December 31, 2017, Total Return Bond HLS Fund and U.S. Government Securities HLS Fund had engaged in Interest Rate Swap Contracts.
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
Notes to Financial Statements – (continued)
December 31, 2017
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.
During the fiscal year ended December 31, 2017, Total Return Bond HLS Fund had engaged in Cross Currency Swap Contracts.
| | e) | Additional Derivative Instrument Information: |
Balanced HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | | $ | 188,302 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 188,302 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 188,302 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 188,302 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | (687,189 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (687,189 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (687,189 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (687,189 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | 349,426 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 349,426 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 349,426 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 349,426 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, 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 at Number of Contracts | | | 4 | |
Futures Contracts Short at Number of Contracts | | | (221 | ) |
Capital Appreciation HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | 22,177 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 22,177 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 22,177 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 22,177 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Liabilities: | |
Unrealized depreciation on foreign currency contracts | | $ | — | | | $ | 252,380 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 252,380 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 252,380 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 252,380 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
Capital Appreciation HLS Fund – (continued)
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 foreign currency contracts | | $ | — | | | $ | (3,400,588 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (3,400,588 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (3,400,588 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (3,400,588 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | $ | — | | | $ | (1,220,777 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,220,777 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (1,220,777 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,220,777 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts
or Face Amount | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 48,488,374 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 61,675,987 | |
Disciplined Equity HLS Fund
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | — | | | $ | — | | | $ | (37,464) | | | $ | — | | | $ | — | | | $ | (37,464) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | (37,464) | | | $ | — | | | $ | — | | | $ | (37,464) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, 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 at Number of Contracts | | | 49 | |
High Yield HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Liabilities: | |
Unrealized depreciation on foreign currency contracts | | $ | — | | | $ | 60,543 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,543 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 60,543 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,543 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
High Yield HLS Fund – (continued)
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | — | | | $ | 748,401 | | | $ | — | | | $ | — | | | $ | — | | | $ | 748,401 | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | (258,036 | ) | | | — | | | | — | | | | — | | | | — | | | | (258,036 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (258,036 | ) | | $ | 748,401 | | | $ | — | | | $ | — | | | $ | — | | | $ | 490,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | |
Net change in unrealized appreciation (depreciation) of swap contracts | | $ | — | | | $ | — | | | $ | (302,502 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (302,502 | ) |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (19,105 | ) | | | — | | | | — | | | | — | | | | — | | | | (19,105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (19,105 | ) | | $ | (302,502 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (321,607 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, 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 at Notional Amount | | $ | 6,276,910 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 951,867 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 3,355,845 | |
International Opportunities HLS Fund
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 foreign currency contracts | | $ | — | | | $ | (1,419,611 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,419,611 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (1,419,611 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,419,611 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
International Opportunities HLS Fund – (continued)
For the year ended December 31, 2017, the average amount or number per contract outstanding for each derivative type was as follows:
| | | | |
Derivative Description | | Average Notional
Par, Contracts
or Face Amount | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 101,702,773 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 100,283,163 | |
Notes to Financial Statements – (continued)
December 31, 2017
Total Return Bond HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | |
Investments in securities, at value (purchased options), market value | | $ | 4,184,607 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 4,184,607 | |
Unrealized appreciation on futures contracts(1) | | | 1,312,227 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,312,227 | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 191,937 | | | | — | | | | — | | | | — | | | | — | | | | 191,937 | |
Unrealized appreciation on swap contracts(2) | | | 980,417 | | | | — | | | | 1,163,723 | | | | — | | | | — | | | | — | | | | 2,144,140 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 6,477,251 | | | $ | 191,937 | | | $ | 1,163,723 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,832,911 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Liabilities: | |
Unrealized depreciation on futures contracts(1) | | $ | 2,960,675 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,960,675 | |
Unrealized depreciation on foreign currency contracts | | | — | | | | 673,631 | | | | — | | | | — | | | | — | | | | — | | | | 673,631 | |
Unrealized depreciation on swap contracts(2) | | | 745,427 | | | | — | | | | 4,237,788 | | | | — | | | | — | | | | — | | | | 4,983,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,706,102 | | | $ | 673,631 | | | $ | 4,237,788 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,617,521 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 267,703 | | | $ | 211,584 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 479,287 | |
Net realized gain (loss) on futures contracts | | | 7,587,676 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 7,587,676 | |
Net realized gain (loss) on written options contracts | | | (101,264 | ) | | | 45,534 | | | | — | | | | — | | | | — | | | | — | | | | (55,730 | ) |
Net realized gain (loss) on swap contracts | | | 2,607,126 | | | | (123,338 | ) | | | 1,347,822 | | | | — | | | | — | | | | — | | | | 3,831,610 | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 330,232 | | | | — | | | | — | | | | — | | | | — | | | | 330,232 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 10,361,241 | | | $ | 464,012 | | | $ | 1,347,822 | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,173,075 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
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 | | $ | (590,793 | ) | | $ | 121,734 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (469,059 | ) |
Net change in unrealized appreciation (depreciation) of futures contracts | | | (1,652,213 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,652,213 | ) |
Net change in unrealized appreciation (depreciation) of swap contracts | | | (3,408,844 | ) | | | — | | | | (4,641,702 | ) | | | — | | | | — | | | | — | | | | (8,050,546 | ) |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (3,976,407 | ) | | | — | | | | — | | | | — | | | | — | | | | (3,976,407 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (5,651,850 | ) | | $ | (3,854,673 | ) | | $ | (4,641,702 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (14,148,225 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, 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 at Number of Contracts | | | 22,799,545 | |
Futures Contracts Long at Number of Contracts | | | 4,250 | |
Futures Contracts Short at Number of Contracts | | | (2,293 | ) |
Swap Contracts at Notional Amount | | $ | 504,713,405 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 36,879,036 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 90,710,423 | |
Notes to Financial Statements – (continued)
December 31, 2017
U.S. Government Securities HLS Fund
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | | $ | 44,077 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 44,077 | |
Unrealized appreciation on swap contracts(2) | | | 2,331 | | | | — | | | | 99,089 | | | | — | | | | — | | | | — | | | | 101,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 46,408 | | | $ | — | | | $ | 99,089 | | | $ | — | | | $ | — | | | $ | — | | | $ | 145,497 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 409,800 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 409,800 | |
Unrealized depreciation on swap contracts(2) | | | 103,715 | | | | — | | | | 54,000 | | | | — | | | | — | | | | — | | | | 157,715 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 513,515 | | | $ | — | | | $ | 54,000 | | | $ | — | | | $ | — | | | $ | — | | | $ | 567,515 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | (1,128,902 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,128,902 | ) |
Net realized gain (loss) on swap contracts | | | 543,143 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 543,143 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (585,759 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (585,759 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | 10,785 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10,785 | |
Net change in unrealized appreciation (depreciation) of swap contracts | | | (527,678 | ) | | | — | | | | 45,089 | | | | — | | | | — | | | | — | | | | (482,589 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (516,893 | ) | | $ | — | | | $ | 45,089 | | | $ | — | | | $ | — | | | $ | — | | | $ | (471,804 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2017, 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 at Number of Contracts | | | 937 | |
Futures Contracts Short at Number of Contracts | | | (168 | ) |
Swap Contracts at Notional Amount | | $ | 38,583,889 | |
| | (1) | Amount represents the cumulative appreciation (depreciation) on futures contracts as disclosed within the Schedule of Investments under the open “Futures Contracts” section. Only current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities. |
| | (2) | Amount represents the cumulative appreciation (depreciation) on centrally cleared swaps, if applicable, as 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. |
| | 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. |
Notes to Financial Statements – (continued)
December 31, 2017
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 December 31, 2017:
| | | | | | | | |
| Balanced HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 188,302 | | | $ | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 188,302 | | | | — | |
| | | | | | | | |
Derivatives not subject to a MNA | | | (188,302 | ) | | | — | |
| | | | | | | | |
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 | | $ | 22,177 | | | $ | (252,380 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 22,177 | | | | (252,380 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 22,177 | | | $ | (252,380 | ) |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Assets | | | Financial
Instruments
and Derivatives
Available for
Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of Assets | |
Credit Suisse First Boston Corp. | | $ | 22,177 | | | $ | — | | | $ | — | | | $ | — | | | $ | 22,177 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Counterparty | | Gross Amount
of Liabilities | | | Financial
Instruments
and Derivatives
Available for
Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of Liabilities | |
Morgan Stanley | | $ | (252,380 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (252,380 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
| | | | | | | | |
| High Yield HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | — | | | $ | (60,543 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | — | | | | (60,543 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | (60,543 | ) |
| | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | |
| High Yield HLS Fund | |
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 | | $ | (34,785 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (34,785 | ) |
Citibank NA | | | (25,758 | ) | | | — | | | | — | | | | — | | | | (25,758 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (60,543 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (60,543 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | 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 | | $ | 191,937 | | | $ | (673,631 | ) |
Futures contracts | | | 1,312,227 | | | | (2,960,675 | ) |
Purchased options | | | — | | | | (590,793 | ) |
Swap contracts | | | 2,144,140 | | | | (4,983,215 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 3,648,304 | | | | (9,208,314 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (2,285,568 | ) | | | 4,173,350 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 1,362,736 | | | $ | (5,034,964 | ) |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Assets | | | Financial
Instruments
and Derivatives
Available for
Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of Assets | |
Australia and New Zealand Banking Group | | $ | 16,727 | | | $ | — | | | $ | — | | | $ | — | | | $ | 16,727 | |
Banc of America Securities LLC | | | 307,657 | | | | (83,737 | ) | | | — | | | | (223,920 | ) | | | — | |
Citibank NA | | | 96,436 | | | | (93,583 | ) | | | — | | | | (2,853 | ) | | | — | |
Credit Suisse International | | | 191,105 | | | | (191,105 | ) | | | — | | | | — | | | | — | |
Deutsche Bank Securities, Inc. | | | 45,041 | | | | (45,041 | ) | | | — | | | | — | | | | — | |
Goldman Sachs & Co. | | | 82,250 | | | | (82,250 | ) | | | — | | | | — | | | | — | |
JP Morgan Chase & Co. | | | 7,317 | | | | (7,317 | ) | | | — | | | | — | | | | — | |
Morgan Stanley | | | 595,615 | | | | (595,615 | ) | | | — | | | | — | | | | — | |
State Street Global Markets LLC | | | 20,588 | | | | (20,588 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,362,736 | | | $ | (1,119,236 | ) | | $ | — | | | $ | (226,773 | ) | | $ | 16,727 | |
| | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | |
| Total Return Bond HLS Fund | |
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 | | $ | (83,737 | ) | | $ | 83,737 | | | $ | — | | | $ | — | | | $ | — | |
Barclays | | | (742,224 | ) | | | — | | | | 742,224 | | | | — | | | | — | |
Citibank NA | | | (93,583 | ) | | | 93,583 | | | | — | | | | — | | | | — | |
Credit Suisse International | | | (1,659,144 | ) | | | 191,105 | | | | 1,468,039 | | | | — | | | | — | |
Deutsche Bank Securities, Inc. | | | (140,707 | ) | | | 45,041 | | | | 95,666 | | | | — | | | | — | |
Goldman Sachs & Co. | | | (1,136,434 | ) | | | 82,250 | | | | 1,054,184 | | | | — | | | | — | |
HSBC Bank USA | | | (27,150 | ) | | | — | | | | — | | | | — | | | | (27,150 | ) |
JP Morgan Chase & Co. | | | (277,124 | ) | | | 7,317 | | | | — | | | | — | | | | (269,807 | ) |
Morgan Stanley | | | (751,766 | ) | | | 595,615 | | | | 156,151 | | | | — | | | | — | |
National Australia Bank Limited | | | (24,134 | ) | | | — | | | | — | | | | — | | | | (24,134 | ) |
Standard Chartered Bank | | | (28,716 | ) | | | — | | | | — | | | | — | | | | (28,716 | ) |
State Street Global Markets LLC | | | (55,670 | ) | | | 20,588 | | | | — | | | | — | | | | (35,082 | ) |
Westpac International | | | (14,575 | ) | | | — | | | | — | | | | — | | | | (14,575 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (5,034,964 | ) | | $ | 1,119,236 | | | $ | 3,516,264 | | | $ | — | | | $ | (399,464 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
| | | | | | | | |
| U.S. Government Securities HLS Fund | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 44,077 | | | $ | (409,800 | ) |
Swap contracts | | | 101,420 | | | | (157,715 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 145,497 | | | | (567,515 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (46,408 | ) | | | 513,515 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 99,089 | | | $ | (54,000 | ) |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Assets | | | Financial
Instruments
and Derivatives
Available for
Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of Assets | |
Morgan Stanley | | $ | 99,089 | | | $ | (54,000 | ) | | $ | — | | | $ | — | | | $ | 45,089 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Liabilities | | | Financial
Instruments
and Derivatives
Available for
Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of Liabilities | |
Morgan Stanley | | $ | (54,000 | ) | | $ | 54,000 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
Notes to Financial Statements – (continued)
December 31, 2017
A Fund’s investments expose it to various types of risks associated with financial instruments and the markets. A Fund may be exposed to the risks described below. Each Fund’s prospectus provides details of its principal risks.
The market values of equity securities, such as common stocks and preferred stocks, or equity related derivative 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. The extent of each Fund’s exposure to market risk is the market value of the investments held as shown in the Fund’s Schedule of Investments.
Certain investments held by a Fund expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, and extension 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.
Investing in the securities of non-U.S. issuers, whether directly or indirectly, involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations; imposition of restrictions on the expatriation of funds or other protectionist measures; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; and greater social, economic and political uncertainties. These risks are heightened for investments in issuers from countries with less developed markets.
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. 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.
| | 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 year. 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, 2017. 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. |
| | 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 |
Notes to Financial Statements – (continued)
December 31, 2017
| | 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 each Fund. |
| | c) | Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended December 31, 2017 and December 31, 2016 are as follows (as adjusted for dividends payable, if applicable): |
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
Fund | | Ordinary
Income | | | Long-Term
Capital Gains(1) | | | Ordinary
Income | | | Long-Term
Capital Gains(1) | |
Balanced HLS Fund | | $ | 52,998,179 | | | $ | — | | | $ | 64,341,864 | | | $ | — | |
Capital Appreciation HLS Fund | | | 256,975,919 | | | | 59,762,068 | | | | 109,413,745 | | | | 483,020,980 | |
Disciplined Equity HLS Fund | | | 13,006,932 | | | | 65,722,486 | | | | 5,779,778 | | | | 86,580,392 | |
Dividend and Growth HLS Fund | | | 74,944,481 | | | | 222,168,732 | | | | 67,340,704 | | | | 368,805,693 | |
Global Growth HLS Fund | | | 2,278,163 | | | | 22,502,321 | | | | 2,719,592 | | | | 46,632,592 | |
Growth Opportunities HLS Fund | | | — | | | | 18,391,830 | | | | 63,046,538 | | | | 135,646,185 | |
Healthcare HLS Fund | | | 3,196 | | | | 49,738,571 | | | | 16,501,827 | | | | 59,648,396 | |
High Yield HLS Fund | | | 18,453,383 | | | | — | | | | 20,173,151 | | | | — | |
International Opportunities HLS Fund | | | 20,907,573 | | | | — | | | | 19,934,946 | | | | — | |
MidCap HLS Fund | | | 32,145,069 | | | | 67,598,711 | | | | 3,018,544 | | | | 179,809,066 | |
MidCap Value HLS Fund | | | 1,827,960 | | | | 24,512,728 | | | | 3,944,532 | | | | 46,923,488 | |
Small Cap Growth HLS Fund | | | 446,623 | | | | 5 | | | | 3,674,250 | | | | 47,394,376 | |
Small Company HLS Fund | | | — | | | | — | | | | — | | | | 96,202,028 | |
Small/Mid Cap Equity HLS Fund | | | 791,280 | | | | 3,047,082 | | | | 1,209,387 | | | | 5,663,682 | |
Stock HLS Fund | | | 25,818,519 | | | | — | | | | 26,635,480 | | | | — | |
Total Return Bond HLS Fund | | | 70,944,183 | | | | — | | | | 65,470,345 | | | | 10,007,821 | |
Ultrashort Bond HLS Fund | | | 4,216,403 | | | | — | | | | 2,672,149 | | | | — | |
U.S. Government Securities HLS Fund | | | 8,912,082 | | | | — | | | | 9,029,477 | | | | — | |
Value HLS Fund | | | 10,800,129 | | | | 34,882,857 | | | | 10,899,057 | | | | 62,514,733 | |
| | (1) | The Funds designate these distributions as long-term capital gain dividends pursuant to IRC Sec. 852(b)(3)(c). |
As of December 31, 2017, 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) | | | Other
Temporary
Differences | | | Unrealized
Appreciation
(Depreciation)
on
Investments(2) | | | Total
Accumulated
Earnings
(Deficit) | |
Balanced HLS Fund | | $ | 975,147 | | | $ | 89,763,832 | | | $ | — | | | $ | (16,601 | ) | | $ | 511,690,137 | | | $ | 602,412,515 | |
Capital Appreciation HLS Fund | | | 44,533,236 | | | | 356,458,423 | | | | — | | | | — | | | | 619,677,723 | | | | 1,020,669,382 | |
Disciplined Equity HLS Fund | | | 2,053,006 | | | | 57,940,757 | | | | — | | | | — | | | | 185,560,706 | | | | 245,554,469 | |
Dividend and Growth HLS Fund | | | 4,161,698 | | | | 354,668,890 | | | | — | | | | — | | | | 1,157,794,491 | | | | 1,516,625,079 | |
Global Growth HLS Fund | | | 4,474,835 | | | | 41,743,435 | | | | — | | | | — | | | | 139,557,917 | | | | 185,776,187 | |
Growth Opportunities HLS Fund | | | 87,904,788 | | | | 121,869,089 | | | | — | | | | — | | | | 260,038,528 | | | | 469,812,405 | |
Healthcare HLS Fund | | | 6,465,216 | | | | 13,897,518 | | | | — | | | | — | | | | 54,108,553 | | | | 74,471,287 | |
High Yield HLS Fund | | | 16,556,069 | | | | — | | | | (15,682,222 | ) | | | — | | | | 3,047,910 | | | | 3,921,757 | |
International Opportunities HLS Fund | | | 26,985,652 | | | | — | | | | — | | | | — | | | | 206,675,272 | | | | 233,660,924 | |
MidCap HLS Fund | | | 7,302,796 | | | | 193,159,703 | | | | — | | | | — | | | | 591,614,140 | | | | 792,076,639 | |
MidCap Value HLS Fund | | | 1,413,321 | | | | 22,813,006 | | | | — | | | | — | | | | 85,144,472 | | | | 109,370,799 | |
Small Cap Growth HLS Fund | | | — | | | | 83,406,237 | | | | — | | | | — | | | | 286,944,984 | | | | 370,351,221 | |
Small Company HLS Fund | | | — | | | | 40,858,715 | | | | — | | | | — | | | | 113,085,725 | | | | 153,944,440 | |
Small/Mid Cap Equity HLS Fund | | | 923,003 | | | | 8,535,279 | | | | — | | | | — | | | | 18,087,830 | | | | 27,546,112 | |
Stock HLS Fund | | | 894,608 | | | | — | | | | — | | | | — | | | | 358,649,725 | | | | 359,544,333 | |
Total Return Bond HLS Fund | | | 86,244,144 | | | | 7,741,822 | | | | — | | | | 10,236 | | | | 18,767,111 | | | | 112,763,313 | |
Ultrashort Bond HLS Fund | | | 5,554,675 | | | | — | | | | (685,090 | ) | | | — | | | | (198,333 | ) | | | 4,671,252 | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gain | | | Accumulated
Capital and
Other Losses(1) | | | Other
Temporary
Differences | | | Unrealized
Appreciation
(Depreciation)
on
Investments(2) | | | Total
Accumulated
Earnings
(Deficit) | |
U.S. Government Securities HLS Fund | | $ | 8,467,367 | | | $ | — | | | $ | (86,084,126 | ) | | $ | (262,058 | ) | | $ | (1,094,140 | ) | | $ | (78,972,957 | ) |
Value HLS Fund | | | 412,733 | | | | 40,768,371 | | | | — | | | | — | | | | 145,427,026 | | | | 186,608,130 | |
| | (1) | The Funds have 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 partnerships, REITs, return of capital from corporate stock, foreign currency, redesignation of distributions, PFICs, expiration of capital loss carryforwards or utilization of 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, 2017, 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 | | $ | (9,506 | ) | | $ | (470,029 | ) | | $ | 479,535 | |
Capital Appreciation HLS Fund | | | (94,744 | ) | | | 1,370,024 | | | | (1,275,280 | ) |
Disciplined Equity HLS Fund | | | — | | | | (308,445 | ) | | | 308,445 | |
Dividend and Growth HLS Fund | | | — | | | | (440,839 | ) | | | 440,839 | |
Global Growth HLS Fund | | | (1 | ) | | | (45,683 | ) | | | 45,684 | |
Growth Opportunities HLS Fund | | | (104,306 | ) | | | 1,802,037 | | | | (1,697,731 | ) |
Healthcare HLS Fund | | | — | | | | 53,626 | | | | (53,626 | ) |
High Yield HLS Fund | | | (9,709,378 | ) | | | 131,397 | | | | 9,577,981 | |
International Opportunities HLS Fund | | | (195,309,854) | | | | 6,538,537 | | | | 188,771,317 | |
MidCap HLS Fund | | | (1 | ) | | | (383,481 | ) | | | 383,482 | |
MidCap Value HLS Fund | | | — | | | | (136,669 | ) | | | 136,669 | |
Small Cap Growth HLS Fund | | | (1,464,555 | ) | | | 803,725 | | | | 660,830 | |
Small Company HLS Fund | | | (4,824,347 | ) | | | 2,511,265 | | | | 2,313,082 | |
Small/Mid Cap Equity HLS Fund | | | — | | | | (245,791 | ) | | | 245,791 | |
Stock HLS Fund | | | (5,476,238 | ) | | | 108,868 | | | | 5,367,370 | |
Total Return Bond HLS Fund | | | (1 | ) | | | 18,661,317 | | | | (18,661,316 | ) |
Ultrashort Bond HLS Fund | | | — | | | | 127,745 | | | | (127,745 | ) |
U.S. Government Securities HLS Fund | | | (25,163,378 | ) | | | 987,290 | | | | 24,176,088 | |
Value HLS Fund | | | — | | | | (58,966 | ) | | | 58,966 | |
| | 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)
December 31, 2017
At December 31, 2017 (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 | | 2018 | | | |
High Yield HLS Fund | | $ | — | | | $ | 2,204,643 | | | $ | 13,477,579 | |
Ultrashort Bond HLS Fund | | | — | | | | 309,366 | | | | 375,724 | |
U.S. Government Securities HLS Fund | | | 58,149,395 | | | | 2,231,528 | | | | 25,703,203 | |
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, 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 and Value HLS Fund had no capital loss carryforwards for U.S. federal income tax purposes as of December 31, 2017.
During the fiscal year ended December 31, 2017, the Balanced HLS Fund, High Yield HLS Fund, International Opportunities HLS Fund, Small Cap Growth HLS Fund, Small Company HLS Fund, Stock HLS Fund and Total Return Bond HLS Fund utilized $81,394,802, $5,006,208, $104,728,215, $14,202,092, $91,646,492, $128,342,761 and $13,673,254 of prior year capital loss carryforwards, respectively.
During the year ended December 31, 2017, High Yield HLS Fund, International Opportunities HLS Fund, Stock HLS Fund and U.S. Government Securities HLS Fund had expired $9,709,378, $195,309,855, $5,476,238 and $25,163,377 of prior year capital loss carryforwards, respectively.
| | f) | Tax Basis of Investments – The aggregate cost of investments for federal income tax purposes at December 31, 2017 was substantially the same for book purposes. The net unrealized appreciation/(depreciation) on investments, which consists of gross unrealized appreciation and depreciation, is disclosed below: |
| | | | | | | | | | | | | | | | |
Fund | | Tax Cost | | | Gross
Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net
Unrealized
Appreciation/
(Depreciation) | |
Balanced HLS Fund | | $ | 1,857,035,146 | | | $ | 549,405,694 | | | $ | (37,706,097 | ) | | $ | 511,699,597 | |
Capital Appreciation HLS Fund | | | 4,440,280,557 | | | | 721,692,592 | | | | (101,996,013 | ) | | | 619,696,579 | |
Disciplined Equity HLS Fund | | | 513,333,693 | | | | 186,312,014 | | | | (751,308 | ) | | | 185,560,706 | |
Dividend and Growth HLS Fund | | | 2,461,393,941 | | | | 1,183,687,610 | | | | (25,903,454 | ) | | | 1,157,784,156 | |
Global Growth HLS Fund | | | 380,241,624 | | | | 141,650,407 | | | | (2,090,589 | ) | | | 139,559,818 | |
Growth Opportunities HLS Fund | | | 1,251,685,783 | | | | 271,202,281 | | | | (11,155,405 | ) | | | 260,046,876 | |
Healthcare HLS Fund | | | 281,302,777 | | | | 76,795,802 | | | | (22,686,919 | ) | | | 54,108,883 | |
High Yield HLS Fund | | | 292,041,395 | | | | 12,125,215 | | | | (9,078,329 | ) | | | 3,046,886 | |
International Opportunities HLS Fund | | | 1,380,438,180 | | | | 220,930,111 | | | | (14,283,589 | ) | | | 206,646,522 | |
MidCap HLS Fund | | | 1,630,202,955 | | | | 626,708,240 | | | | (35,094,100 | ) | | | 591,614,140 | |
MidCap Value HLS Fund | | | 290,033,777 | | | | 96,560,553 | | | | (11,414,969 | ) | | | 85,145,584 | |
Small Cap Growth HLS Fund | | | 1,044,598,926 | | | | 327,745,736 | | | | (40,800,752 | ) | | | 286,944,984 | |
Small Company HLS Fund | | | 495,955,978 | | | | 125,774,472 | | | | (12,688,747 | ) | | | 113,085,725 | |
Small/Mid Cap Equity HLS Fund | | | 80,809,690 | | | | 20,653,440 | | | | (2,565,610 | ) | | | 18,087,830 | |
Stock HLS Fund | | | 1,167,912,594 | | | | 374,639,981 | | | | (15,975,645 | ) | | | 358,664,336 | |
Total Return Bond HLS Fund | | | 2,888,858,723 | | | | 44,898,554 | | | | (25,964,239 | ) | | | 18,934,315 | |
Ultrashort Bond HLS Fund | | | 525,088,826 | | | | 726,137 | | | | (924,470 | ) | | | (198,333 | ) |
U.S. Government Securities HLS Fund | | | 422,112,344 | | | | 2,812,716 | | | | (3,906,856 | ) | | | (1,094,140 | ) |
Value HLS Fund | | | 381,283,840 | | | | 160,844,518 | | | | (15,418,162 | ) | | | 145,426,356 | |
| | g) | Accounting for Uncertainty in Income Taxes – Pursuant to provisions set forth by U.S. GAAP, management reviews each Fund’s tax positions for all open tax years. As of December 31, 2017, management 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. |
Notes to Financial Statements – (continued)
December 31, 2017
| | 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. Management 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 – Hartford Funds Management Company, LLC (“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 December 31, 2017; 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 |
| |
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 |
Notes to Financial Statements – (continued)
December 31, 2017
| | |
Fund | | Management Fee Rates |
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 |
| |
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 |
Notes to Financial Statements – (continued)
December 31, 2017
| | |
Fund | | Management Fee Rates |
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 |
| |
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 0.03% of average daily net assets until December 31, 2017, 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 | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
Notes to Financial Statements – (continued)
December 31, 2017
| | |
Fund | | Accounting Services Fee Rates |
Capital Appreciation HLS Fund | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Disciplined Equity HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Dividend and Growth HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Global Growth HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Growth Opportunities HLS Fund | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Healthcare HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
High Yield HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
International Opportunities HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
MidCap HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
MidCap Value HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Small Cap Growth HLS Fund | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Small Company HLS Fund | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Small/Mid Cap Equity HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Stock HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
Notes to Financial Statements – (continued)
December 31, 2017
| | |
Fund | | Accounting Services Fee Rates |
Total Return Bond HLS Fund | | 0.018% on first $3.5 billion and; |
| | 0.014% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Ultrashort Bond HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
U.S. Government Securities HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
| |
Value HLS Fund | | 0.014% on first $3.5 billion and; |
| | 0.012% on next $3.5 billion and; |
| | 0.010% over $7 billion |
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 a Company are allocated to each series within such Company, and allocated to classes within each such series, in proportion to the average daily net assets of such series and classes, except where allocation of certain expenses is more fairly made directly to a 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 fiscal year ended December 31, 2017, 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 | | | 0.63 | % | | | 0.88 | % | | | — | |
Capital Appreciation HLS Fund | | | 0.68 | % | | | 0.93 | % | | | 1.18 | % |
Disciplined Equity HLS Fund | | | 0.78 | % | | | 1.03 | % | | | — | |
Dividend and Growth HLS Fund | | | 0.68 | % | | | 0.93 | % | | | — | |
Global Growth HLS Fund | | | 0.81 | % | | | 1.06 | % | | | — | |
Growth Opportunities HLS Fund | | | 0.66 | % | | | 0.91 | % | | | 1.16 | % |
Healthcare HLS Fund | | | 0.89 | % | | | 1.14 | % | | | — | |
High Yield HLS Fund | | | 0.77 | % | | | 1.02 | % | | | — | |
International Opportunities HLS Fund | | | 0.73 | % | | | 0.98 | % | | | — | |
MidCap HLS Fund | | | 0.70 | % | | | 0.95 | % | | | — | |
MidCap Value HLS Fund | | | 0.86 | % | | | 1.11 | % | | | — | |
Small Cap Growth HLS Fund | | | 0.65 | % | | | 0.90 | % | | | — | |
Small Company HLS Fund | | | 0.77 | % | | | 1.02 | % | | | — | |
Small/Mid Cap Equity HLS Fund | | | 0.92 | % | | | 1.17 | % | | | — | |
Stock HLS Fund | | | 0.52 | % | | | 0.77 | % | | | — | |
Total Return Bond HLS Fund | | | 0.51 | % | | | 0.76 | % | | | — | |
Ultrashort Bond HLS Fund | | | 0.45 | % | | | 0.70 | % | | | — | |
U.S. Government Securities HLS Fund | | | 0.51 | % | | | 0.76 | % | | | — | |
Value HLS Fund | | | 0.80 | % | | | 1.05 | % | | | — | |
Notes to Financial Statements – (continued)
December 31, 2017
| | 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 year ended December 31, 2017, a portion of each Company’s Chief Compliance Officer’s (“CCO”) 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 Statements of Operations, is outlined in the table below. |
| | | | |
Fund | | CCO Compensation
Paid by Fund | |
Balanced HLS Fund | | $ | 4,923 | |
Capital Appreciation HLS Fund | | | 10,835 | |
Disciplined Equity HLS Fund | | | 1,436 | |
Dividend and Growth HLS Fund | | | 7,393 | |
Global Growth HLS Fund | | | 1,011 | |
Growth Opportunities HLS Fund | | | 3,047 | |
Healthcare HLS Fund | | | 705 | |
High Yield HLS Fund | | | 660 | |
International Opportunities HLS Fund | | | 2,989 | |
MidCap HLS Fund | | | 4,265 | |
MidCap Value HLS Fund | | | 788 | |
Small Cap Growth HLS Fund | | | 2,720 | |
Small Company HLS Fund | | | 1,498 | |
Small/Mid Cap Equity HLS Fund | | | 209 | |
Stock HLS Fund | | | 3,137 | |
Total Return Bond HLS Fund | | | 5,162 | |
Ultrashort Bond HLS Fund | | | 1,187 | |
U.S. Government Securities HLS Fund | | | 898 | |
Value HLS Fund | | | 1,096 | |
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. The costs and expenses of such delegation are borne by HASCO, not by the Funds. Each Fund pays HASCO a fixed fee annually, plus out of pocket expenses for providing such services. The accrued amount shown in the Statements of Operations reflects the amounts charged by HASCO. These fees are accrued daily and paid monthly.
Notes to Financial Statements – (continued)
December 31, 2017
For the fiscal year ended December 31, 2017, the effective rate of compensation paid to HASCO for transfer agency services on a gross and net basis as a percentage of each Class’s average daily net assets is as follows:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Capital Appreciation HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | 0.00 | %* |
Disciplined Equity HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Dividend and Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Global Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Growth Opportunities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | 0.00 | %* |
Healthcare HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
High Yield HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
International Opportunities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
MidCap HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
MidCap Value HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Small Cap Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Small Company HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Small/Mid Cap Equity HLS Fund | | | 0.01 | % | | | 0.01 | % | | | — | |
Stock HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Total Return Bond HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Ultrashort Bond HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
U.S. Government Securities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
Value HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | — | |
| | * | Percentage rounds to zero. |
As of December 31, 2017, affiliates of The Hartford had ownership of shares in each Fund as follows:
Percentage of a Class:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | — | | | | — | | | | — | |
Capital Appreciation HLS Fund | | | — | | | | — | | | | 0.04 | % |
Disciplined Equity HLS Fund | | | — | | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | | | | — | |
Global Growth HLS Fund | | | — | | | | — | | | | — | |
Growth Opportunities HLS Fund | | | — | | | | — | | | | 0.04 | % |
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 | | | — | | | | — | | | | — | |
Notes to Financial Statements – (continued)
December 31, 2017
Percentage of Fund by Class:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | — | | | | — | | | | — | |
Capital Appreciation HLS Fund | | | — | | | | — | | | | 0.00 | %* |
Disciplined Equity HLS Fund | | | — | | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | | | | — | |
Global Growth HLS Fund | | | — | | | | — | | | | — | |
Growth Opportunities HLS Fund | | | — | | | | — | | | | 0.00 | %* |
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. |
| 9. | Investment Transactions: |
For the year ended December 31, 2017, 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 | | $ | 529,592,234 | | | $ | 643,522,627 | |
Capital Appreciation HLS Fund | | | 3,790,814,750 | | | | 4,825,855,194 | |
Disciplined Equity HLS Fund | | | 203,418,014 | | | | 306,542,431 | |
Dividend and Growth HLS Fund | | | 872,139,874 | | | | 1,190,860,707 | |
Global Growth HLS Fund | | | 274,948,659 | | | | 306,356,517 | |
Growth Opportunities HLS Fund | | | 1,414,501,977 | | | | 1,586,863,920 | |
Healthcare HLS Fund | | | 59,310,123 | | | | 77,507,515 | |
High Yield HLS Fund | | | 128,331,124 | | | | 151,438,808 | |
International Opportunities HLS Fund | | | 1,305,598,984 | | | | 1,246,913,352 | |
MidCap HLS Fund | | | 718,525,186 | | | | 759,773,145 | |
MidCap Value HLS Fund | | | 119,060,423 | | | | 168,054,747 | |
Small Cap Growth HLS Fund | | | 647,231,101 | | | | 751,029,481 | |
Small Company HLS Fund | | | 761,753,654 | | | | 1,221,919,316 | |
Small/Mid Cap Equity HLS Fund | | | 80,316,872 | | | | 97,537,630 | |
Stock HLS Fund | | | 201,376,152 | | | | 362,737,760 | |
Total Return Bond HLS Fund | | | 1,381,544,873 | | | | 1,597,735,770 | |
Ultrashort Bond HLS Fund | | | 209,934,045 | | | | 243,689,097 | |
U.S. Government Securities HLS Fund | | | 80,028,960 | | | | 42,105,072 | |
Value HLS Fund | | | 70,405,420 | | | | 139,936,102 | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | |
Fund | | Cost of Purchases
For U.S.
Government
Obligations | | | Sales Proceeds
For U.S.
Government
Obligations | |
Balanced HLS Fund | | $ | 69,525,690 | | | $ | 159,937,437 | |
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 | | | 717,166,834 | | | | 551,707,493 | |
Ultrashort Bond HLS Fund | | | 119,470,507 | | | | 144,284,181 | |
U.S. Government Securities HLS Fund | | | 390,221,946 | | | | 410,383,324 | |
Value HLS Fund | | | — | | | | — | |
| | | | | | | | |
Fund | | Total Cost of
Purchases | | | Total Sales
Proceeds | |
Balanced HLS Fund | | $ | 599,117,924 | | | $ | 803,460,064 | |
Capital Appreciation HLS Fund | | | 3,790,814,750 | | | | 4,825,855,194 | |
Disciplined Equity HLS Fund | | | 203,418,014 | | | | 306,542,431 | |
Dividend and Growth HLS Fund | | | 872,139,874 | | | | 1,190,860,707 | |
Global Growth HLS Fund | | | 274,948,659 | | | | 306,356,517 | |
Growth Opportunities HLS Fund | | | 1,414,501,977 | | | | 1,586,863,920 | |
Healthcare HLS Fund | | | 59,310,123 | | | | 77,507,515 | |
High Yield HLS Fund | | | 128,331,124 | | | | 151,438,808 | |
International Opportunities HLS Fund | | | 1,305,598,984 | | | | 1,246,913,352 | |
MidCap HLS Fund | | | 718,525,186 | | | | 759,773,145 | |
MidCap Value HLS Fund | | | 119,060,423 | | | | 168,054,747 | |
Small Cap Growth HLS Fund | | | 647,231,101 | | | | 751,029,481 | |
Small Company HLS Fund | | | 761,753,654 | | | | 1,221,919,316 | |
Small/Mid Cap Equity HLS Fund | | | 80,316,872 | | | | 97,537,630 | |
Stock HLS Fund | | | 201,376,152 | | | | 362,737,760 | |
Total Return Bond HLS Fund | | | 2,098,711,707 | | | | 2,149,443,263 | |
Ultrashort Bond HLS Fund | | | 329,404,552 | | | | 387,973,278 | |
U.S. Government Securities HLS Fund | | | 470,250,906 | | | | 452,488,396 | |
Value HLS Fund | | | 70,405,420 | | | | 139,936,102 | |
Notes to Financial Statements – (continued)
December 31, 2017
| 10. | Capital Share Transactions: |
The following information is for the year ended December 31, 2017, and the year ended December 31, 2016:
| | | | | | | | | | | | | | | | |
| Balanced HLS Fund | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 806,404 | | | $ | 24,243,642 | | | | 432,134 | | | $ | 11,762,594 | |
Shares Issued for Reinvested Dividends | | | 1,550,612 | | | | 47,464,119 | | | | 2,066,809 | | | | 57,374,388 | |
Shares Redeemed | | | (9,237,441 | ) | | | (271,385,497 | ) | | | (11,127,409 | ) | | | (301,710,149 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (6,880,425 | ) | | | (199,677,736 | ) | | | (8,628,466 | ) | | | (232,573,167 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 98,155 | | | $ | 2,948,319 | | | | 183,197 | | | $ | 4,893,695 | |
Shares Issued for Reinvested Dividends | | | 178,485 | | | | 5,534,060 | | | | 247,482 | | | | 6,967,476 | |
Shares Redeemed | | | (1,359,464 | ) | | | (40,387,458 | ) | | | (1,673,760 | ) | | | (46,010,455 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,082,824 | ) | | | (31,905,079 | ) | | | (1,243,081 | ) | | | (34,149,284 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (7,963,249 | ) | | $ | (231,582,815 | ) | | | (9,871,547 | ) | | $ | (266,722,451 | ) |
| | | | | | | | | | | | | | | | |
|
| Capital Appreciation HLS Fund | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,520,224 | | | $ | 69,676,765 | | | | 1,890,996 | | | $ | 80,924,245 | |
Shares Issued for Reinvested Dividends | | | 5,849,271 | | | | 280,000,593 | | | | 12,769,224 | | | | 530,174,730 | |
Shares Redeemed | | | (23,141,724 | ) | | | (1,078,423,340 | ) | | | (34,600,429 | ) | | | (1,476,715,307 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (15,772,229 | ) | | | (728,745,982 | ) | | | (19,940,209 | ) | | | (865,616,332 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 111,613 | | | $ | 5,150,495 | | | | 115,545 | | | $ | 4,798,062 | |
Shares Issued for Reinvested Dividends | | | 742,165 | | | | 35,014,412 | | | | 1,471,280 | | | | 60,184,340 | |
Shares Redeemed | | | (2,304,465 | ) | | | (105,783,037 | ) | | | (2,744,732 | ) | | | (115,383,323 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,450,687 | ) | | | (65,618,130 | ) | | | (1,157,907 | ) | | | (50,400,921 | ) |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 127,654 | | | $ | 5,935,733 | | | | 155,349 | | | $ | 6,572,808 | |
Shares Issued for Reinvested Dividends | | | 36,298 | | | | 1,722,982 | | | | 50,492 | | | | 2,075,655 | |
Shares Redeemed | | | (53,091 | ) | | | (2,473,932 | ) | | | (55,844 | ) | | | (2,347,703 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 110,861 | | | | 5,184,783 | | | | 149,997 | | | | 6,300,760 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (17,112,055 | ) | | $ | (789,179,329 | ) | | | (20,948,119 | ) | | $ | (909,716,493 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| Disciplined Equity HLS Fund | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 283,728 | | | $ | 4,383,156 | | | | 1,162,708 | | | $ | 17,069,443 | |
Shares Issued for Reinvested Dividends | | | 4,779,020 | | | | 69,277,938 | | | | 5,685,375 | | | | 81,089,435 | |
Shares Redeemed | | | (6,394,841 | ) | | | (97,244,218 | ) | | | (7,445,491 | ) | | | (111,694,506 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,332,093 | ) | | | (23,583,124 | ) | | | (597,408 | ) | | | (13,535,628 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 144,937 | | | $ | 2,190,277 | | | | 244,068 | | | $ | 3,630,073 | |
Shares Issued for Reinvested Dividends | | | 660,646 | | | | 9,451,480 | | | | 798,826 | | | | 11,270,736 | |
Shares Redeemed | | | (1,017,854 | ) | | | (15,281,872 | ) | | | (1,248,004 | ) | | | (18,586,945 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (212,271 | ) | | | (3,640,115 | ) | | | (205,110 | ) | | | (3,686,136 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,544,364 | ) | | $ | (27,223,239 | ) | | | (802,518 | ) | | $ | (17,221,764 | ) |
| | | | | | | | | | | | | | | | |
|
| Dividend and Growth HLS Fund | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 4,155,891 | | | $ | 95,954,389 | | | | 5,495,742 | | | $ | 123,287,564 | |
Shares Issued for Reinvested Dividends | | | 11,597,227 | | | | 261,460,717 | | | | 17,932,886 | | | | 380,223,306 | |
Shares Redeemed | | | (19,421,429 | ) | | | (451,326,930 | ) | | | (22,492,815 | ) | | | (495,062,146 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,668,311 | ) | | | (93,911,824 | ) | | | 935,813 | | | | 8,448,724 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 375,911 | | | $ | 8,685,861 | | | | 499,749 | | | $ | 10,925,264 | |
Shares Issued for Reinvested Dividends | | | 1,593,174 | | | | 35,652,495 | | | | 2,654,218 | | | | 55,923,091 | |
Shares Redeemed | | | (3,425,042 | ) | | | (79,084,752 | ) | | | (3,669,262 | ) | | | (80,212,091 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,455,957 | ) | | | (34,746,396 | ) | | | (515,295 | ) | | | (13,363,736 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (5,124,268 | ) | | $ | (128,658,220 | ) | | | 420,518 | | | $ | (4,915,012 | ) |
| | | | | | | | | | | | | | | | |
|
| Global Growth HLS Fund | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,167,362 | | | $ | 30,260,457 | | | | 543,460 | | | $ | 12,675,555 | |
Shares Issued for Reinvested Dividends | | | 811,179 | | | | 20,798,629 | | | | 1,805,742 | | | | 40,737,536 | |
Shares Redeemed | | | (2,159,005 | ) | | | (55,663,972 | ) | | | (2,745,818 | ) | | | (63,750,555 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (180,464 | ) | | | (4,604,886 | ) | | | (396,616 | ) | | | (10,337,464 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 205,454 | | | $ | 5,206,011 | | | | 181,152 | | | $ | 4,134,958 | |
Shares Issued for Reinvested Dividends | | | 156,643 | | | | 3,981,856 | | | | 384,926 | | | | 8,614,648 | |
Shares Redeemed | | | (611,170 | ) | | | (15,562,567 | ) | | | (848,234 | ) | | | (19,479,718 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (249,073 | ) | | | (6,374,700 | ) | | | (282,156 | ) | | | (6,730,112 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (429,537 | ) | | $ | (10,979,586 | ) | | | (678,772 | ) | | $ | (17,067,576 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| Growth Opportunities HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,055,813 | | | $ | 35,715,356 | | | | 4,317,826 | | | $ | 143,218,022 | |
Shares Issued for Reinvested Dividends | | | 456,670 | | | | 16,106,761 | | | | 5,633,211 | | | | 174,516,879 | |
Shares Redeemed | | | (5,385,187 | ) | | | (187,447,545 | ) | | | (5,899,305 | ) | | | (190,123,880 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,872,704 | ) | | | (135,625,428 | ) | | | 4,051,732 | | | | 127,611,021 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 226,887 | | | $ | 7,648,732 | | | | 288,529 | | | $ | 9,169,198 | |
Shares Issued for Reinvested Dividends | | | 55,466 | | | | 1,881,415 | | | | 686,184 | | | | 20,503,187 | |
Shares Redeemed | | | (837,366 | ) | | | (27,997,475 | ) | | | (1,066,677 | ) | | | (33,338,544 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (555,013 | ) | | | (18,467,328 | ) | | | (91,964 | ) | | | (3,666,159 | ) |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 104,552 | | | $ | 3,540,640 | | | | 254,301 | | | $ | 8,077,525 | |
Shares Issued for Reinvested Dividends | | | 11,639 | | | | 403,653 | | | | 119,944 | | | | 3,672,657 | |
Shares Redeemed | | | (81,843 | ) | | | (2,819,857 | ) | | | (99,012 | ) | | | (3,177,329 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 34,348 | | | | 1,124,436 | | | | 275,233 | | | | 8,572,853 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (4,393,369 | ) | | $ | (152,968,320 | ) | | | 4,235,001 | | | $ | 132,517,715 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Healthcare HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,841,982 | | | $ | 44,835,798 | | | | 1,315,220 | | | $ | 34,964,722 | |
Shares Issued for Reinvested Dividends | | | 1,933,544 | | | | 42,557,293 | | | | 2,918,070 | | | | 64,430,977 | |
Shares Redeemed | | | (2,322,554 | ) | | | (54,827,732 | ) | | | (4,642,420 | ) | | | (118,901,866 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,452,972 | | | | 32,565,359 | | | | (409,130 | ) | | | (19,506,167 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 129,384 | | | $ | 2,994,650 | | | | 177,850 | | | $ | 4,516,085 | |
Shares Issued for Reinvested Dividends | | | 343,098 | | | | 7,184,474 | | | | 552,534 | | | | 11,719,246 | |
Shares Redeemed | | | (517,395 | ) | | | (11,565,478 | ) | | | (720,634 | ) | | | (17,478,196 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (44,913 | ) | | | (1,386,354 | ) | | | 9,750 | | | | (1,242,865 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 1,408,059 | | | $ | 31,179,005 | | | | (399,380 | ) | | $ | (20,749,032 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| High Yield HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,551,820 | | | $ | 12,802,783 | | | | 2,932,807 | | | $ | 23,188,946 | |
Shares Issued for Reinvested Dividends | | | 1,763,487 | | | | 14,107,895 | | | | 1,967,008 | | | | 15,598,376 | |
Shares Redeemed | | | (5,352,490 | ) | | | (44,291,170 | ) | | | (8,071,995 | ) | | | (63,756,161 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,037,183 | ) | | | (17,380,492 | ) | | | (3,172,180 | ) | | | (24,968,839 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| High Yield HLS Fund – (continued) | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 398,161 | | | $ | 3,249,143 | | | | 922,611 | | | $ | 7,179,450 | |
Shares Issued for Reinvested Dividends | | | 551,458 | | | | 4,345,488 | | | | 585,759 | | | | 4,574,775 | |
Shares Redeemed | | | (1,811,097 | ) | | | (14,711,242 | ) | | | (2,149,503 | ) | | | (16,659,640 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (861,478 | ) | | | (7,116,611 | ) | | | (641,133 | ) | | | (4,905,415 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,898,661 | ) | | $ | (24,497,103 | ) | | | (3,813,313 | ) | | $ | (29,874,254 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| International Opportunities HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 14,013,729 | | | $ | 228,923,920 | | | | 7,789,062 | | | $ | 108,119,671 | |
Shares Issued for Reinvested Dividends | | | 1,165,749 | | | | 19,083,304 | | | | 1,261,253 | | | | 17,922,412 | |
Shares Redeemed | | | (10,831,010 | ) | | | (174,609,123 | ) | | | (12,946,295 | ) | | | (179,842,398 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 4,348,468 | | | | 73,398,101 | | | | (3,895,980 | ) | | | (53,800,315 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 595,017 | | | $ | 9,615,544 | | | | 744,796 | | | $ | 10,264,574 | |
Shares Issued for Reinvested Dividends | | | 109,962 | | | | 1,824,269 | | | | 139,856 | | | | 2,012,534 | |
Shares Redeemed | | | (1,810,973 | ) | | | (29,172,721 | ) | | | (2,536,882 | ) | | | (35,348,893 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,105,994 | ) | | | (17,732,908 | ) | | | (1,652,230 | ) | | | (23,071,785 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 3,242,474 | | | $ | 55,665,193 | | | | (5,548,210 | ) | | $ | (76,872,100 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| MidCap HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 9,676,572 | | | $ | 363,623,668 | | | | 4,162,036 | | | $ | 140,508,393 | |
Shares Issued for Reinvested Dividends | | | 2,534,154 | | | | 94,658,888 | | | | 5,366,836 | | | | 173,178,978 | |
Shares Redeemed | | | (9,315,330 | ) | | | (349,644,474 | ) | | | (7,604,846 | ) | | | (252,673,800 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 2,895,396 | | | | 108,638,082 | | | | 1,924,026 | | | | 61,013,571 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 203,031 | | | $ | 7,530,954 | | | | 208,879 | | | $ | 6,848,448 | |
Shares Issued for Reinvested Dividends | | | 139,137 | | | | 5,084,893 | | | | 305,433 | | | | 9,648,632 | |
Shares Redeemed | | | (1,660,894 | ) | | | (64,348,851 | ) | | | (846,524 | ) | | | (27,738,828 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,318,726 | ) | | | (51,733,004 | ) | | | (332,212 | ) | | | (11,241,748 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 1,576,670 | | | $ | 56,905,078 | | | | 1,591,814 | | | $ | 49,771,823 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| MidCap Value HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 474,578 | | | $ | 5,861,095 | | | | 389,348 | | | $ | 4,658,326 | |
Shares Issued for Reinvested Dividends | | | 1,786,186 | | | | 20,308,940 | | | | 3,439,721 | | | | 38,903,246 | |
Shares Redeemed | | | (3,597,010 | ) | | | (44,123,512 | ) | | | (3,280,710 | ) | | | (39,074,053 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,336,246 | ) | | | (17,953,477 | ) | | | 548,359 | | | | 4,487,519 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 91,141 | | | $ | 1,113,838 | | | | 185,352 | | | $ | 2,186,176 | |
Shares Issued for Reinvested Dividends | | | 534,256 | | | | 6,031,748 | | | | 1,064,482 | | | | 11,964,774 | |
Shares Redeemed | | | (1,189,202 | ) | | | (14,470,579 | ) | | | (1,207,760 | ) | | | (14,245,410 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (563,805 | ) | | | (7,324,993 | ) | | | 42,074 | | | | (94,460 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,900,051 | ) | | $ | (25,278,470 | ) | | | 590,433 | | | $ | 4,393,059 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Small Cap Growth HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 5,723,808 | | | $ | 165,058,843 | | | | 6,146,285 | | | $ | 150,379,245 | |
Shares Issued for Reinvested Dividends | | | 13,629 | | | | 391,968 | | | | 1,433,174 | | | | 36,230,638 | |
Shares Redeemed | | | (12,168,321 | ) | | | (365,607,978 | ) | | | (7,881,231 | ) | | | (192,825,988 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (6,430,884 | ) | | | (200,157,167 | ) | | | (301,772 | ) | | | (6,216,105 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 5,928,739 | | | $ | 176,762,856 | | | | 1,573,648 | | | $ | 37,425,555 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 388,274 | | | | 9,586,481 | |
Shares Redeemed | | | (2,636,397 | ) | | | (76,228,471 | ) | | | (1,899,579 | ) | | | (45,456,649 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 3,292,342 | | | | 100,534,385 | | | | 62,343 | | | | 1,555,387 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (3,138,542 | ) | | $ | (99,622,782 | ) | | | (239,429 | ) | | $ | (4,660,718 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Small Company HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,793,489 | | | $ | 32,075,623 | | | | 4,320,930 | | | $ | 69,407,503 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 5,503,709 | | | | 87,123,722 | |
Shares Redeemed | | | (26,402,292 | ) | | | (469,703,430 | ) | | | (22,041,377 | ) | | | (349,251,002 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (24,608,803 | ) | | | (437,627,807 | ) | | | (12,216,738 | ) | | | (192,719,777 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| Small Company HLS Fund – (continued) | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 223,321 | | | $ | 3,768,830 | | | | 955,330 | | | $ | 14,441,775 | |
Shares Issued for Reinvested Dividends | | | — | | | | — | | | | 615,478 | | | | 9,078,306 | |
Shares Redeemed | | | (2,064,656 | ) | | | (34,359,403 | ) | | | (2,695,510 | ) | | | (40,659,316 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,841,335 | ) | | | (30,590,573 | ) | | | (1,124,702 | ) | | | (17,139,235 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (26,450,138 | ) | | $ | (468,218,380 | ) | | | (13,341,440 | ) | | $ | (209,859,012 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Small/Mid Cap Equity HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 546,142 | | | $ | 4,524,831 | | | | 1,366,914 | | | $ | 10,705,912 | |
Shares Issued for Reinvested Dividends | | | 415,135 | | | | 3,287,870 | | | | 781,330 | | | | 5,789,652 | |
Shares Redeemed | | | (2,330,941 | ) | | | (19,299,802 | ) | | | (1,886,188 | ) | | | (13,863,228 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,369,664 | ) | | | (11,487,101 | ) | | | 262,056 | | | | 2,632,336 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 206,491 | | | $ | 1,703,656 | | | | 424,789 | | | $ | 3,209,670 | |
Shares Issued for Reinvested Dividends | | | 69,948 | | | | 550,492 | | | | 147,003 | | | | 1,083,417 | |
Shares Redeemed | | | (724,359 | ) | | | (5,954,090 | ) | | | (658,111 | ) | | | (4,818,908 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (447,920 | ) | | | (3,699,942 | ) | | | (86,319 | ) | | | (525,821 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,817,584 | ) | | $ | (15,187,043 | ) | | | 175,737 | | | $ | 2,106,515 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Stock HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 82,347 | | | $ | 6,102,812 | | | | 199,184 | | | $ | 13,343,315 | |
Shares Issued for Reinvested Dividends | | | 299,255 | | | | 23,707,000 | | | | 356,943 | | | | 24,394,377 | |
Shares Redeemed | | | (2,491,889 | ) | | | (184,342,341 | ) | | | (2,794,292 | ) | | | (184,659,241 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,110,287 | ) | | | (154,532,529 | ) | | | (2,238,165 | ) | | | (146,921,549 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 24,541 | | | $ | 1,800,010 | | | | 59,518 | | | $ | 3,936,449 | |
Shares Issued for Reinvested Dividends | | | 26,673 | | | | 2,111,519 | | | | 32,802 | | | | 2,241,103 | |
Shares Redeemed | | | (326,619 | ) | | | (24,082,015 | ) | | | (446,429 | ) | | | (29,469,033 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (275,405 | ) | | | (20,170,486 | ) | | | (354,109 | ) | | | (23,291,481 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,385,692 | ) | | $ | (174,703,015 | ) | | | (2,592,274 | ) | | $ | (170,213,030 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| Total Return Bond HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 10,804,579 | | | $ | 121,912,379 | | | | 8,946,264 | | | $ | 100,688,213 | |
Shares Issued for Reinvested Dividends | | | 5,703,212 | | | | 64,104,099 | | | | 5,995,954 | | | | 67,994,124 | |
Shares Redeemed | | | (28,263,945 | ) | | | (319,063,315 | ) | | | (36,538,628 | ) | | | (410,475,319 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (11,756,154 | ) | | | (133,046,837 | ) | | | (21,596,410 | ) | | | (241,792,982 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,007,204 | | | $ | 11,336,689 | | | | 711,513 | | | $ | 7,976,767 | |
Shares Issued for Reinvested Dividends | | | 611,268 | | | | 6,840,084 | | | | 663,479 | | | | 7,484,042 | |
Shares Redeemed | | | (3,290,538 | ) | | | (36,973,156 | ) | | | (4,748,050 | ) | | | (53,039,383 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,672,066 | ) | | | (18,796,383 | ) | | | (3,373,058 | ) | | | (37,578,574 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (13,428,220 | ) | | $ | (151,843,220 | ) | | | (24,969,468 | ) | | $ | (279,371,556 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Ultrashort Bond HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,269,464 | | | $ | 32,898,341 | | | | 3,997,140 | | | $ | 40,076,556 | |
Shares Issued for Reinvested Dividends | | | 385,163 | | | | 3,863,181 | | | | 254,655 | | | | 2,551,645 | |
Shares Redeemed | | | (10,954,529 | ) | | | (110,225,740 | ) | | | (12,302,990 | ) | | | (123,344,159 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (7,299,902 | ) | | | (73,464,218 | ) | | | (8,051,195 | ) | | | (80,715,958 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 766,654 | | | $ | 7,701,575 | | | | 1,092,356 | | | $ | 10,920,951 | |
Shares Issued for Reinvested Dividends | | | 35,217 | | | | 353,222 | | | | 12,039 | | | | 120,504 | |
Shares Redeemed | | | (2,138,208 | ) | | | (21,476,321 | ) | | | (2,982,859 | ) | | | (29,834,147 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,336,337 | ) | | | (13,421,524 | ) | | | (1,878,464 | ) | | | (18,792,692 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (8,636,239 | ) | | $ | (86,885,742 | ) | | | (9,929,659 | ) | | $ | (99,508,650 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| U.S. Government Securities HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 2,103,061 | | | $ | 21,772,509 | | | | 4,083,858 | | | $ | 42,855,959 | |
Shares Issued for Reinvested Dividends | | | 729,790 | | | | 7,516,833 | | | | 722,114 | | | | 7,582,207 | |
Shares Redeemed | | | (6,323,266 | ) | | | (65,421,205 | ) | | | (8,875,818 | ) | | | (93,215,231 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,490,415 | ) | | | (36,131,863 | ) | | | (4,069,846 | ) | | | (42,777,065 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 351,226 | | | $ | 3,626,856 | | | | 855,371 | | | $ | 8,957,933 | |
Shares Issued for Reinvested Dividends | | | 135,593 | | | | 1,395,250 | | | | 137,967 | | | | 1,447,269 | |
Shares Redeemed | | | (1,335,009 | ) | | | (13,785,552 | ) | | | (1,996,389 | ) | | | (20,941,029 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (848,190 | ) | | | (8,763,446 | ) | | | (1,003,051 | ) | | | (10,535,827 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (4,338,605 | ) | | $ | (44,895,309 | ) | | | (5,072,897 | ) | | $ | (53,312,892 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2017
| | | | | | | | | | | | | | | | |
| Value HLS Fund | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2017 | | | For the Year Ended
December 31, 2016 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 695,794 | | | $ | 10,990,889 | | | | 776,955 | | | $ | 11,933,096 | |
Shares Issued for Reinvested Dividends | | | 2,611,798 | | | | 39,184,876 | | | | 4,222,098 | | | | 62,687,087 | |
Shares Redeemed | | | (4,444,508 | ) | | | (70,230,330 | ) | | | (5,017,607 | ) | | | (77,099,704 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,136,916 | ) | | | (20,054,565 | ) | | | (18,554 | ) | | | (2,479,521 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 75,796 | | | $ | 1,195,727 | | | | 189,127 | | | $ | 2,861,768 | |
Shares Issued for Reinvested Dividends | | | 435,092 | | | | 6,498,111 | | | | 724,814 | | | | 10,726,703 | |
Shares Redeemed | | | (886,742 | ) | | | (13,949,988 | ) | | | (955,721 | ) | | | (14,771,674 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (375,854 | ) | | | (6,256,150 | ) | | | (41,780 | ) | | | (1,183,203 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,512,770 | ) | | $ | (26,310,715 | ) | | | (60,334 | ) | | $ | (3,662,724 | ) |
| | | | | | | | | | | | | | | | |
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 $375 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 year ended December 31, 2017, 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, among other things, added as new plaintiffs The Hartford Floating Rate Fund and The Hartford Small Company Fund and named as a defendant Hartford Funds Management Company, LLC (“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
Notes to Financial Statements – (continued)
December 31, 2017
applicable legal standard. A bench trial on the issue of liability was held in November 2016. On February 28, 2017, the court granted judgment for HIFSCO and HFMC as to all claims. On March 23, 2017, plaintiffs appealed to the United States Court of Appeals for the Third Circuit.
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.
At its meeting held on August 2, 2017, the Board of Directors of Hartford Series Fund, Inc. (“Board of Directors”) approved an extension of the current 0.03% management fee waiver for Balanced HLS Fund, effective January 1, 2018 through December 31, 2018. In addition, the Board of Directors approved a reduction in Value HLS Fund’s contractual management fee rate. Effective January 1, 2018, Value HLS Fund’s revised management fee schedule will be as follows: 0.6900% of the first $250 million, 0.6425% of the next $250 million, 0.6325% of the next $500 million, 0.6250% of the next $1.5 billion, 0.6200% of the next $2.5 billion, 0.6150% of the next $5 billion, and 0.6100% in excess of $10 billion annually of the Value HLS Fund’s average daily net assets.
On January 1, 2018, the name of the Funds’ sub-transfer agent changed from Boston Financial Data Services, Inc. to DST Asset Manager Solutions, Inc.
|
| Report of Independent Registered Public Accounting Firm |
The Shareholders and Board of Directors of
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc.
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (the “Companies”) (Hartford Series Fund, Inc. comprising 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 Healthcare HLS Fund, Hartford High Yield HLS Fund, Hartford International Opportunities HLS Fund, Hartford MidCap HLS Fund, Hartford MidCap Value HLS Fund, Hartford Small Company HLS Fund, Hartford Stock HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Ultrashort Bond HLS Fund, and Hartford Value HLS Fund and Hartford HLS Series Fund II, Inc. comprising Hartford Growth Opportunities HLS Fund, Hartford Small/Mid Cap Equity HLS Fund, Hartford Small Cap Growth HLS Fund, and Hartford U.S. Government Securities HLS Fund (collectively referred to as the “Funds”)), including the schedules of investments, as of December 31, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising the Companies at December 31, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Companies’ management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Companies in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Companies are not required to have, nor were we engaged to perform, audits of the Companies’ internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Companies’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Hartford investment companies since 2002.
Philadelphia, Pennsylvania
February 20, 2018
Directors and Officers of the Companies
Each of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each a, “Company” and collectively, the “Companies”) is governed by a Board of Directors (the “Directors”). The following tables present certain information regarding the Directors and officers of the Companies. For more information regarding the Directors and officers, please refer to the Statement of Additional Information, which is available, without charge, upon request by calling 1-888-843-7824.
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
| NON-INTERESTED DIRECTORS | | | | | | | | |
| | | | | |
HILARY E. ACKERMANN (1956) | | Director | | Since 2014 | | Ms. Ackermann served as Chief Risk Officer at Goldman Sachs Bank USA from October 2008 to November 2011. Ms. Ackermann has served as a Director of Dynegy, Inc. (an independent power company) from October 2012 to present and as a Director of Credit Suisse Holdings (USA), Inc. from January 2017 to present. | | 89 | | Ms. Ackermann serves as a Director of Dynegy, Inc. (a power company) (October 2012 to present) and as a Director of Credit Suisse Holdings (USA), Inc. from January 2017 to present. |
| | | | | |
ROBIN C. BEERY (1967) | | Director | | Since 2017 | | Ms. Beery has served as a Consultant of Arrowpoint Partners (an alternative asset manager) since March 2015. Previously, she was Executive Vice President, Head of Distribution, for Janus Capital Group, and Chief Executive Officer and President of the Janus Mutual Funds (a global asset manager) from September 2009 to August 2014. | | 89 | | Ms. Beery serves as a Director of UMB Financial Corporation (January 2015 to present). |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
LYNN S. BIRDSONG (1946) | | Director | | Since 2003 | | Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment funds) (September 2014 to present) and Aberdeen Islamic SICAV and Aberdeen Liquidity Fund (investment funds) (2016 to present). Mr. Birdsong served as an Independent Director of Nomura Partners Funds, Inc. (formerly, The Japan Fund) (April 2003 to February 2015) and as a Director of the Sovereign High Yield Investment Company (April 2010 to June 2014). From 2003 to March 2005, Mr. Birdsong was an Independent Director of the Atlantic Whitehall Funds. From 1979 to 2002, Mr. Birdsong was a Managing Director of Zurich Scudder Investments, an investment management firm. During his employment with Scudder, Mr. Birdsong was an Interested Director of The Japan Fund. From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm. | | 89 | | None |
| | | | | |
CHRISTINE R. DETRICK (1958) | | Director | | Since 2016 | | Ms. Detrick has served as a Director of Reinsurance Group of America since January 2014 and Forest City Realty Trust (a real estate company) since November 2014. Previously, she was a Director of Forethought Financial Group, Inc. (a financial services company) from January 2012 to January 2014 and a Senior Partner/ Advisor at Bain & Company (a management consulting firm) from September 2002 to December 2012. | | 89 | | Ms. Detrick serves as a Director of Reinsurance Group of America (January 2014 to present) and Forest City Realty Trust (a real estate company) (November 2014 to present). |
| | | | | |
DUANE E. HILL (1945) | | Director | | Since 2001(4) Since 2002(5) | | Mr. Hill is a Partner of TSG Ventures L.P., a private equity investment company. Mr. Hill is a former partner of TSG Capital Group, a private equity investment firm that served as sponsor and lead investor in leveraged buyouts of middle market companies. | | 89 | | None |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
WILLIAM P. JOHNSTON (1944) | | Director and Chairman of the Board | | Director since 2005 and Chairman of the Board since 2015 | | In June 2006, Mr. Johnston was appointed as Senior Advisor to The Carlyle Group, a global private equity and other alternative asset investment firm and currently serves as an Operating Executive. In July 2006, Mr. Johnston was elected to the Board of Directors of MultiPlan, Inc. and served as a Director (July 2006 to August 2010). In August 2007, Mr. Johnston was elected to the Board of Directors of LifeCare Holdings, Inc. and served as a Director (August 2007 to June 2013). In February 2008, Mr. Johnston was elected to the Board of Directors of HCR-ManorCare, Inc. In May 2006, Mr. Johnston was elected to the Supervisory Board of Fresenius Medical Care AG & Co. KGaA, after its acquisition of Renal Care Group, Inc. in March 2006. Mr. Johnston joined Renal Care Group in November 2002 as a member of the Board of Directors and served as Chairman of the Board from March 2003 through March 2006. From 2002 through 2013, Mr. Johnston served as a Board member of the Georgia O’Keefe Museum. From September 1987 to December 2002, Mr. Johnston was with Equitable Securities Corporation (and its successors, SunTrust Equitable Securities and SunTrust Robinson Humphrey) serving in various investment banking and managerial positions, including Managing Director and Head of Investment Banking, Chief Executive Officer and Vice Chairman. | | 89 | | None |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
PHILLIP O. PETERSON (1944) | | Director | | Since 2002(4) Since 2000(5) | | Mr. Peterson is a mutual fund industry consultant. He was a partner of KPMG LLP (an accounting firm) until July 1999. Mr. Peterson joined William Blair Funds in February 2007 as a member of the Board of Trustees. From February 2012 to February 2014, Mr. Peterson served as a Trustee of Symetra Variable Mutual Funds. From January 2004 to April 2005, Mr. Peterson served as Independent President of the Strong Mutual Funds. | | 89 | | Mr. Peterson is a Trustee of the William Blair Funds (February 2007 to current) (22 funds overseen). |
| | | | | |
LEMMA W. SENBET (1946) | | Director | | Since 2005 | | Dr. Senbet is the William E. Mayer Chair Professor of Finance and Founding Director, Center for Financial Policy, at the University of Maryland, Robert H. Smith School of Business. He was chair of the Finance Department of the University of Maryland, Robert H. Smith School of Business from 1998 to 2006. Since June 2013, he has been on leave from the University to serve as Executive Director of the African Economic Research Consortium which focuses on economic policy research and training. Previously, he was a chaired professor of finance at the University of Wisconsin-Madison. Also, he was a Director of the Fortis Funds from March 2000 to July 2002. Dr. Senbet served as Director of the American Finance Association and President of the Western Finance Association. In 2006, Dr. Senbet was inducted Fellow of Financial Management Association International for his career-long distinguished scholarship and professional service. | | 89 | | None |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
DAVID SUNG (1953) | | Director | | Since 2017 | | Mr. Sung has served as a Director of Nippon Wealth Bank since April 2015 and CITIC-Prudential Fund Management Company, Inc. since January 2016. Mr. Sung is a Director of four private investment pools. Previously, he was a Partner at Ernst & Young LLP from October 1995 to July 2014. | | 89 | | Mr. Sung serves as a Trustee of Ironwood Institutional Multi-Strategy Fund, LLC and Ironwood Multi-Strategy Fund, LLC (October 2015 to present) (2 portfolios). |
| OFFICERS AND INTERESTED DIRECTORS |
| | | | | |
JAMES E. DAVEY(6) (1964) | | Director, President and Chief Executive Officer | | President
and Chief Executive Officer since 2010; Director since 2012 | | Mr. Davey serves as Executive Vice President of The Hartford Financial Services Group, Inc. Additionally, Mr. Davey serves as Chairman of the Board, Manager and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”). He also currently serves as Director, Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”). Mr. Davey also serves as President, Manager, Chairman of the Board and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”) and Director, Chairman of the Board and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey also serves as Chairman of the Board, President and Manager of Lattice Strategies LLC effective July 30, 2016. Mr. Davey has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Davey joined The Hartford in 2002. | | 89 | | N/A |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
ANDREW S. DECKER (1963) | | AML Compliance Officer | | Since 2015 | | Mr. Decker currently serves as Chief Compliance Officer and AML Compliance Officer of HASCO and as AML Officer of HFD. Prior to joining The Hartford, Mr. Decker served as Vice President and AML Officer at Janney Montgomery Scott (a broker dealer) from April 2011 to January 2015. Mr. Decker served as AML Compliance and Sanctions Enforcement Officer at SEI Investments from December 2007 to April 2011. | | N/A | | N/A |
| | | | | |
WALTER F. GARGER (1965) | | Vice President and Chief Legal Officer | | Since 2016 | | Mr. Garger currently serves as Secretary, Managing Director and General Counsel of HFD, HASCO, HFMC and HFMG. Mr. Garger also serves as Secretary and General Counsel of Lattice Strategies LLC effective July 30, 2016. Mr. Garger has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Garger joined The Hartford in 1995. | | N/A | | N/A |
| | | | | |
ALBERT Y. LEE (1979) | | Vice President and Assistant Treasurer | | Since 2017 | | Mr. Lee serves as Head of Systemic Strategies and ETF Operations and Senior Vice President at Hartford Funds Management Group, Inc. (“HFMG”) since 2016. Mr. Lee also serves as Senior Vice President of Lattice Strategies LLC since 2017 and served as Managing Director & Chief Operating Officer, Lattice Strategies LLC (2009-2016); Chief Operating Officer, Avicenna Capital Management (2007-2009); Chief Financial Officer, Steeple Capital LP (2005-2007). | | N/A | | N/A |
| | | | | |
THEODORE J. LUCAS (1966) | | Vice President | | Since 2017 | | Mr. Lucas serves as Executive Vice President of HFMG since 2016 and as Executive Vice President of Lattice Strategies LLC since 2017. Mr. Lucas served as Managing Partner, Lattice Strategies LLC (2003 to 2016). | | N/A | | N/A |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
JOSEPH G. MELCHER (1973) | | Vice President and Chief Compliance Officer | | Since 2013 | | Mr. Melcher currently serves as Executive Vice President of HFD, HFMG and HASCO. Mr. Melcher also currently serves as Executive Vice President and Chief Compliance Officer of HFMC, Lattice Strategies, LLC and the Hartford Funds Exchange-Traded Trust. Mr. Melcher has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds since joining The Hartford in 2012. Prior to joining The Hartford, Mr. Melcher worked at Touchstone Investments, a member of the Western & Southern Financial Group, where he held the position of Vice President and Chief Compliance Officer from 2010 through 2012 and Assistant Vice President, Compliance from 2005 to 2010. | | N/A | | N/A |
| | | | | |
VERNON J. MEYER (1964) | | Vice President | | Since 2006 | | Mr. Meyer currently serves as Senior Vice President of Hartford Life Insurance Company (“HLIC”). He also currently serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG. Mr. Meyer has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Mr. Meyer joined The Hartford in 2004. | | N/A | | N/A |
| | | | | |
ALICE A. PELLEGRINO (1960) | | Vice President | | Since 2016 | | Ms. Pellegrino currently serves as Vice President of HLIC and HFMG. Ms. Pellegrino is a Senior Counsel and has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Pellegrino joined The Hartford in 2007. | | N/A | | N/A |
Directors and Officers of the Companies – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
THE COMPANIES | | TERM OF
OFFICE(2) AND
LENGTH OF
TIME SERVED | | PRINCIPAL OCCUPATION(S)
DURING PAST 5 YEARS | | NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX(3)
OVERSEEN
BY DIRECTOR | | OTHER DIRECTORSHIPS
FOR PUBLIC COMPANIES
AND OTHER REGISTERED
INVESTMENT COMPANIES
HELD BY DIRECTOR |
| THOMAS R. PHILLIPS (1960) | | Vice President and Secretary | | Since 2017 | | Mr. Phillips currently serves as Vice President and Senior Counsel for HFMG. Prior to joining HFMG in 2017, Mr. Phillips was a Director and Chief Legal Officer of Saturna Capital Corporation from 2014–2016. Prior to that Mr. Phillips was a Partner and Deputy General Counsel of Lord, Abbett & Co. LLC. | | N/A | | N/A |
| | | | | |
LAURA S. QUADE(7) (1969) | | Vice President | | Since 2012 | | Ms. Quade currently serves as Vice President of HASCO, HFD and HFMG. She is the Head of Operations of HASCO and formerly served as Director, Enterprise Operations of HLIC. Ms. Quade has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Quade joined The Hartford in 2001. | | N/A | | N/A |
| (1) | The address for each officer and Director is c/o Hartford Funds 690 Lee Road, Wayne, PA 19087. |
| (2) | Each Director holds an indefinite term until the earlier of (i) the election and qualification of his or her successor or (ii) when the Director turns 75 years of age. Each officer shall serve until his or her successor is elected and qualifies. |
| (3) | The portfolios of the “Fund Complex” are series of The Hartford Mutual Funds, Inc., The Hartford Mutual Funds II, Inc., Hartford Series Fund, Inc., Hartford HLS Series Fund II, Inc., Hartford Funds Master Fund, Lattice Strategies Trust, Hartford Funds Exchange-Traded Trust, and Hartford Funds NextShares Trust. Information presented is as of December 31, 2017. |
| (4) | For Hartford Series Fund, Inc. |
| (5) | For Hartford HLS Series Fund II, Inc. |
| (6) | “Interested person,” as defined in the 1940 Act, of each Company because of the person’s affiliation with, or equity ownership of, HFMC, HFD or affiliated companies. |
| (7) | Effective February 2018, Ms. Quade became the Treasurer of each Company. |
General Information (Unaudited)
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 Investment Management and Investment Sub-Advisory Agreements (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”), annually review and consider the continuation of the mutual fund’s investment advisory and sub-advisory agreements. At their meeting held on August 1-2, 2017, the Boards of Directors (collectively, the “Board”) of Hartford Series Fund, Inc. (“HLS”) and Hartford HLS Series Fund II, Inc. (“HLS II”), including each of the Independent Directors, unanimously voted to approve (i) the continuation of an investment management agreement (the “Management Agreement”) by and between HLS, HLS II, on behalf of each of their respective funds listed above (each a “Fund” and collectively, the “Funds”), and Hartford Funds Management Company, LLC (“HFMC”); and (ii) new investment sub-advisory agreements (each, a “Sub-Advisory Agreement” and collectively with the Management Agreement, the “Agreements”) between HFMC and each Fund’s sub-adviser, Wellington Management Company LLP (the “Sub-adviser,” and together with HFMC, the “Advisers”) on behalf of each of HLS and HLS II, as applicable.
In the months preceding the August 1-2, 2017 meeting, the Board requested and reviewed written responses from the Advisers to questions posed to the Advisers on behalf of the Independent Directors and supporting materials relating to those questions and responses. In addition, the Board considered such additional information as it deemed reasonably necessary to evaluate the Agreements, as applicable, with respect to each Fund, 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 Agreements that was presented at the Board’s meetings held on June 20-21, 2017 and August 1-2, 2017. Information provided to the Board at its meetings throughout the year included, among other things, reports on Fund performance, legal, compliance and risk management matters, sales and marketing activity, shareholder services, and the other services provided to each Fund by the Advisers and their 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 20-21, 2017 and August 1-2, 2017 concerning the Agreements.
The Independent Directors, advised by independent legal counsel, engaged service providers to assist them with evaluating the Agreements with respect to each Fund, as applicable. Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, was retained to provide the Board with reports on how each Fund’s contractual management fees, actual management fees, other non-management fees, overall expense ratios and investment performance compared to those of comparable mutual funds with similar investment objectives. The Independent Directors also engaged an independent financial services consultant (the “Consultant”) to assist them in evaluating the Funds’ respective management fees, sub-advisory fees, other non-management fees, overall expense ratios and investment performance. In addition, the Consultant reviewed the profitability calculations utilized by HFMC in connection with the continuation of the Management Agreement.
In determining whether to approve the Agreements for a Fund, 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
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
to approve the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the approval of the Agreements. The Board was also furnished with an analysis of its fiduciary obligations in connection with its evaluation of the Agreements and, throughout the evaluation process, the Board was assisted by counsel for the Funds. The Independent Directors were also separately assisted by independent legal counsel. A more detailed summary of the important, but not necessarily all, factors the Board considered with respect to its approval of the Agreements is provided below.
Nature, Extent and Quality of Services Provided by the Advisers
The Board requested and considered information concerning the nature, extent and quality of the services provided to each Fund by the Advisers. The Board considered, among other things, the terms of the Agreements and the range of services provided by the Advisers. The Board considered the Advisers’ professional personnel who provide services to the Funds, including each Adviser’s ability and experience in attracting and retaining qualified personnel to service the Funds. The Board considered each Adviser’s reputation and overall financial strength, as well as its willingness to consider and implement organizational and operational changes designed to enhance services to the Hartford Funds. In addition, the Board considered the quality of each Adviser’s communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Funds and other Hartford Funds.
The Board also requested and evaluated information concerning each Adviser’s regulatory and compliance environment. In this regard, the Board requested and reviewed information about each Adviser’s compliance policies and procedures, compliance history, and a report from the Funds’ Chief Compliance Officer about each Adviser’s compliance with applicable laws and regulations, including responses to regulatory developments and compliance issues raised by regulators, as well as each Adviser’s commitment to implement rulemaking initiatives of the U.S. Securities and Exchange Commission. The Board also noted the Advisers’ support of the Funds’ compliance control structure, as applicable, and, in particular, the resources devoted by the Advisers in support of the Funds’ obligations pursuant to Rule 38a-1 under the 1940 Act, as well as the efforts of the Advisers to combat cybersecurity risks and invest in business continuity planning.
With respect to HFMC, the Board noted that, under the Management Agreement, HFMC is responsible for the management of the Funds, including oversight of fund operations and service providers, and the provision of administrative and investment advisory services in connection with selecting, monitoring and supervising the Sub-adviser. The Board considered HFMC’s ongoing monitoring of people, process and performance, including its quarterly reviews of each of the Hartford Funds, semi-annual meetings with the leaders of each Fund’s portfolio management team, and oversight of the Funds’ portfolio managers. The Board recognized that HFMC has demonstrated a record of making changes to the management and/or strategies of the Hartford Funds when warranted. The Board considered HFMC’s periodic due diligence reviews of the Sub-adviser and ongoing oversight of the Sub-adviser’s investment approach and results, process for monitoring best execution of portfolio trades and other trading operations by the Sub-adviser, and approach to risk management with respect to the Funds and the service providers to the Funds. The Board also considered HFMC’s day-to-day oversight of each Fund’s compliance with its objective and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led to an increase in the scope of HFMC’s services in this regard. Moreover, the Board considered HFMC’s oversight of potential conflicts of interest between the Funds’ investments and those of other funds or accounts managed by the Funds’ portfolio management personnel.
In addition, the Board considered HFMC’s ongoing commitment to review and rationalize the Hartford Funds product line-up. The Board considered that HFMC is responsible for providing the Funds’ officers. The Board also noted that Hartford Life Insurance Company (“HLIC”), an affiliate of HFMC, provides administrative services to the Funds. The Board considered its experiences with HFMC and HLIC with respect to each of these services.
With respect to the Sub-adviser, which provides certain day-to-day portfolio management services for the Funds, subject to oversight by HFMC, the Board considered, among other things, the quality of each Fund’s portfolio manager(s), the Sub-adviser’s other investment personnel, its investment philosophy and process, its investment research capabilities and resources, its performance record, its trade execution capabilities and its experience. The Board considered the experience of each Fund’s portfolio manager(s), the number of accounts managed by the portfolio manager(s), and the Sub-adviser’s method for compensating the portfolio manager(s).
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to each Fund by HFMC and the Sub-adviser.
Performance of each Fund and the Advisers
The Board considered the investment performance of each Fund. In this regard, the Board reviewed the performance of each Fund over different time periods presented in the materials and evaluated HFMC’s analysis of the Fund’s performance for these time periods. The Board
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
considered information and materials provided to the Board by the Advisers concerning Fund performance, as well as information from Broadridge comparing the investment performance of each Fund to an appropriate universe of peer funds. For details regarding each Fund’s performance, see the fund-by-fund synopsis below.
The Board considered the detailed investment analytics reports provided by HFMC’s Investment Advisory Group throughout the year, including in connection with the approval of the Agreements. These reports include, among other things, information on each Fund’s gross returns and net returns, the Fund’s investment performance relative to an appropriate benchmark and peer group (if available), various statistics concerning the Fund’s portfolio, and a narrative summary of various factors affecting Fund performance. The Board considered the Advisers’ cooperation with the Investment Committee, which assists the Board in evaluating the performance of each Fund at periodic meetings throughout the year and specifically with respect to the approval of the Agreements. The Board also considered the analysis provided by the Consultant relating to each Fund’s performance track record.
In light of all the considerations noted above, the Board concluded that it had continued confidence in HFMC’s and the Sub-adviser’s overall capabilities to manage the Funds.
Costs of the Services and Profitability of the Advisers
The Board reviewed information regarding HFMC’s cost to provide investment management and related services to each Fund and HFMC’s profitability, both overall and for each Fund, on a pre-tax basis without regard to distribution expenses. The Board also requested and reviewed information about the profitability to HFMC and its affiliates from all services provided to each Fund and all aspects of their relationship with the Fund, including information regarding profitability trends over time. The Board also requested and received information relating to the operations and profitability of the Sub-adviser. The Board considered representations from HFMC and the Sub-adviser that the Sub-adviser’s fees were negotiated at arm’s length on a fund-by-fund basis and that the sub-advisory fees would be paid by HFMC and not the Funds. Accordingly, the Board concluded that the profitability of the Sub-adviser is a less relevant factor with respect to the Board’s consideration of the Sub-Advisory Agreements.
The Board considered the Consultant’s review of the methodologies and estimates used by HFMC in calculating profitability in connection with the continuation of the Management Agreement, noting the Consultant’s view that HFMC’s process for calculating and reporting Fund profitability is reasonable and consistent with the process previously reviewed by the Consultant. In this regard, the Board noted that the Consultant had previously performed a full review of this process and reported that such process is sound and consistent with common industry practice.
Based on these considerations, the Board concluded that the profits anticipated to be realized by the Advisers and their affiliates from their relationships with the Funds would not be excessive.
Comparison of Fees and Services Provided by the Advisers
The Board considered the comparative information that had been provided at meetings on June 20-21, 2017 and August 1-2, 2017 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 also considered comparative information with respect to the sub-advisory fees to be paid by HFMC to the Sub-adviser with respect to each Fund. In this regard, the Board requested and reviewed information from HFMC and the Sub-adviser relating to the management and sub-advisory fees, including the sub-advisory fee schedule for each Fund, and total operating expenses for each Fund. The Board considered that HFMC compensates HLIC for providing certain administrative services to the Funds. The Board also reviewed information from Broadridge comparing each Fund’s contractual management fees, actual management fees and overall expense ratios relative to an appropriate group of funds selected by Broadridge, in consultation with the Consultant. For details regarding each Fund’s expenses, see the fund-by-fund synopsis below.
While the Board recognized that comparisons between a Fund and its peer funds may be imprecise, given the different service levels and characteristics of mutual funds and the different business models and cost structures of the Advisers, the comparative information provided by Broadridge assisted the Board in evaluating the reasonableness of each Fund’s fees and total operating expenses. In addition, the Board considered the analysis and recommendations of the Consultant relating to each Fund’s fees and total operating expenses.
Based on these considerations, 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, were reasonable in light of the services provided.
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
Economies of Scale
The Board considered information regarding the extent to which economies of scale may 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 reviewed the breakpoints in the management fee schedule for each Fund, if any, which reduce fee rates as the Fund’s assets grow over time. The Board recognized that a fund with assets beyond the highest breakpoint level will continue to benefit from economies of scale because additional assets are charged the lowest breakpoint fee resulting in lower overall effective management fee rates. The Board also recognized that a fee schedule that reaches a lower breakpoint quickly provides shareholders with the benefit of anticipated or potential economies of scale. In addition, the Board considered that initially setting competitive fee rates and pricing the Funds to scale at inception are other means of sharing potential economies of scale with shareholders. The Board also considered that HFMC has been active in managing expenses, which has resulted in benefits being realized by shareholders as assets within the Hartford Funds family of funds have grown over time, including through lower operating expenses. The Board noted the effect of the run-off of the variable annuity business on the HLS Funds and also noted that, for Hartford Small/Mid Cap Equity HLS Fund, the Fund’s current low asset levels have kept the Fund from fully realizing the benefits of anticipated or potential economies of scale.
The Board reviewed and evaluated materials from Broadridge and the Consultant showing how management fee schedules of peer funds reflect economies of scale for the benefit of shareholders as a peer fund’s assets hypothetically increase over time. Based on information provided by HFMC, Broadridge, and the Consultant, the Board recognized that there is no uniform methodology for establishing breakpoints or uniform pattern in asset levels that trigger breakpoints or the amounts of breakpoints triggered.
After considering all of the information available to it, the Board 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. The Board noted, however, that it would continue to monitor future growth in each Fund’s assets and the appropriateness of additional breakpoints.
Other Benefits
The Board considered other benefits to the Advisers and their affiliates from their relationships with the Funds, including the role of each Fund in supporting the variable life insurance and variable annuity products offered by The Hartford.
The Board noted that HLIC, an affiliate of HFMC, receives fees for providing certain administrative services to the Funds and that HFMC receives fees for fund accounting and related services from the Funds. The Board considered information on profits to HLIC and HFMC for such services. The Board also noted that new Fund accounting and administration fees were implemented in 2017 for each Fund. The Board also considered that Hartford Administrative Services Company (“HASCO”), the Funds’ transfer agent and an affiliate of HFMC, receives transfer agency compensation from the Funds, and the Board reviewed information about the profitability to HASCO of the Funds’ transfer agency function. The Board considered information regarding the transfer agency services provided by HASCO to the Funds and the transfer agency fees received therefor. The Board also noted that HFMC and HASCO had delegated certain fund accounting services and transfer agency services, respectively, to external service providers.
The Board also considered that Hartford Funds Distributors, LLC (“HFD”), an affiliate of HFMC, serves as principal underwriter of the Funds. As principal underwriter, HFD receives distribution and service fees from the Funds. The Board also noted that certain affiliates of HFD receive compensation from HFD, including affiliated insurance companies that offer the Funds as investment options under their contracts.
The Board considered the benefits, if any, to the Sub-adviser from any use of a Fund’s brokerage commissions to obtain soft dollar research, and representations from HFMC and the Sub-adviser that the Sub-adviser does not make any revenue-sharing payments or any other type of distribution payments to HFMC or its affiliates.
The Board considered the benefits to shareholders of being part of the Hartford Funds family of funds. The Board considered HFMC’s efforts to provide investors in the fund family with a broad range of investment styles and asset classes.
Fund-by-Fund factors
Hartford Balanced HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1-year period, the 1st quintile for the 3-year period and the 2nd quintile for the 5-year period. The Board also noted that the Fund’s performance was below its custom blended benchmark for the 1- and 3-year periods and in line with its custom blended benchmark for the 5-year period. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
| • | | The Board noted that the Fund’s contractual management fee was in the 4th quintile of its expense group, while its actual management fee and its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. In considering the Fund’s expenses, the Board also noted the shareholder savings expected to result from a temporary fee reduction, which was implemented in 2017. |
Hartford Capital Appreciation HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-, 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3- and 5-year periods. The Board considered that, in response to questions concerning the Fund’s performance, HFMC stated that it has confidence in the Fund’s portfolio management team and investment strategy. The Board noted recent and upcoming changes to the Fund’s portfolio management team. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group, while its actual management fee was in the 4th quintile. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford Disciplined Equity HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-year period and above its benchmark for the 3- and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee and its actual management fee were in the 4th quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford Dividend and Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was in-line with its benchmark for the 1- and 5-year periods and below its benchmark for the 3-year period. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford Global Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-, 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee was in the 5th quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford Growth Opportunities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was in line with its benchmark for the 1-year period and above its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 2nd quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
Hartford Healthcare HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1- and 3-year periods and the 2nd quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3- and 5-year periods. The Board noted upcoming changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford High Yield HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1- and 5-year periods and the 2nd quintile for the 3-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-year period and in line with its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee, its actual management fee and its total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile of its expense group. |
Hartford International Opportunities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below with its benchmark for the 1-year period and above its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 1st quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. In considering the Fund’s expenses, the Board noted that the Sub-adviser has limited capacity with respect to the Fund’s strategy which may impact the Fund’s sub-advisory fee levels. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford MidCap HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-year period, in line with its benchmark for the 3-year period and above its benchmark for the 5-year period. |
| • | | The Board noted that the Fund’s contractual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group, while its actual management fee was in the 2nd quintile. |
Hartford MidCap Value HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1- and 3-year periods and the 3rd quintile for the 5-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. |
Hartford Small Cap Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period, the 2nd quintile for the 3-year period and the 1st quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3- and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
Hartford Small Company HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1- and 5-year periods and the 5th quintile for the 3-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3- and 5-year periods. The Board considered that, in response to questions concerning the Fund’s performance, HFMC stated that it has confidence in the Fund’s portfolio management team and investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Small/Mid Cap Equity HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1- and 5-year periods and the 4th quintile for the 3-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. In considering the Fund’s performance record, the Board noted that the Fund had transitioned to the Sub-adviser in 2012. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group, while its actual management fee was in the 4th quintile. |
Hartford Stock HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1-year period and the 4th quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3- and 5-year periods. The Board considered that, in response to questions concerning the Fund’s performance, HFMC stated that it has confidence in the Fund’s portfolio management team and investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Total Return Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the 1-, 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3- and 5-year periods. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee, its actual management fee and its total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile of its expense group. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. |
Hartford Ultrashort Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period and the 4th quintile for the 3-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and in line with its benchmark for the 3-year period. |
| • | | The Board noted that the Fund’s contractual management fee and its actual management fee were in the 2nd quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford U.S. Government Securities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 3rd quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3- and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee and its total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group, while its actual management fee was in the 2nd quintile. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
Hartford Value HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1- and 5-year periods and the 3rd quintile for the 3-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1-year period and in line with its benchmark for the 3- and 5-year periods. The Board considered that, in response to questions concerning the Fund’s performance, HFMC stated that it has confidence in the Fund’s portfolio management team and investment strategy. |
| • | | The Board noted that the Fund’s contractual management fee was in the 4th quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 5th quintile. The Board noted the potential impact of the Fund’s declining assets under management on the Fund’s overall expense ratio. In considering the Fund’s expenses, the Board also noted the shareholder savings expected to result from a permanent fee reduction, which will be implemented in 2018. |
* * * *
Based upon its review of these various factors, among others, the Board concluded that it is in the best interests of each Fund and its shareholders for the Board to approve the Agreements for an additional year. 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. In connection with their deliberations, the Independent Directors met separately in executive session on several occasions, with independent legal counsel and the Consultant, to review the relevant materials and consider their responsibilities under relevant laws and regulations.
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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, our Online Privacy Policy, which governs information we collect on our website and our affiliate websites, is available at 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 policies and procedures may be subject to discipline, which may include termination of their employment 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 Customer Privacy Notice is being provided on behalf of The Hartford Financial Services Group, Inc. and its affiliates, to the extent required by the Gramm-Leach-Bliley Act and implementing regulations.
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 Group Benefits Holding Company; 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); Lattice Strategies LLC; Maxum Casualty Insurance Company; Maxum Indemnity Company; Maxum Specialty Services Corporation; MPC Resolution Company LLC; New England Insurance Company; New England Reinsurance Corporation; Northern Homelands Company; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company.
Revised March 2017
Series of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each a “Fund” and collectively, the “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 Funds are not guaranteed by The Hartford or any other entity.
This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Fund. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any 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 a Fund. This and other important information is contained in a Fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.
The Funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Hartford Funds Management Company, LLC (HFMC) is the Funds’ investment manager. The Funds are sub-advised by Wellington Management Company LLP. HFD and HFMC are not affiliated with Wellington Management Company LLP.
HLSAR17 2-18 204763 Printed in U.S.A.
Item 2. Code of Ethics.
The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. A copy of the code of ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The Board of Directors of the registrant (the “Board”) has designated Phillip O. Peterson as an Audit Committee Financial Expert. Mr. Peterson is considered by the Board to be an independent director.
Item 4. Principal Accountant Fees and Services.
| | (a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were: |
$77,620 for the fiscal year ended December 31, 2016; $79,865 for the fiscal year ended December 31, 2017.
| | (b) | Audit Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were: |
$0 for the fiscal year ended December 31, 2016; $0 for the fiscal year ended December 31, 2017. Audit-related services are principally in connection with Rule 17Ad-13 under the Securities Exchange Act of 1934.
| | (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were: |
$22,721 for the fiscal year ended December 31, 2016; $18,487 for the fiscal year ended December 31, 2017. Tax-related services are principally in connection with, but not limited to, general tax services, excise tax, and Passive Foreign Investment Company (PFIC) analysis.
| | (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for |
| | products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were: |
$0 for the fiscal year ended December 31, 2016; $0 for the fiscal year ended December 31, 2017.
| | (e) | (1) The Pre-Approval Policies and Procedures (the “Policy”) adopted by the Audit Committee of the registrant (also, the “Fund”) sets forth the procedures pursuant to which services performed by the independent registered public accounting firm for the registrant may be pre-approved. The following are some main provisions from the Policy. |
| | 1. | The Audit Committee must pre-approve all audit services and non-audit services that the independent registered public accounting firm provides to the Fund. |
| | 2. | The Audit Committee must pre-approve any engagement of the independent registered public accounting firm to provide non-audit services to any Service Affiliate (which is defined to include any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund) during the period of the independent registered public accounting firm’s engagement to provide audit services to the Fund, if the non-audit services to the Service Affiliate directly impact the Fund’s operations and financial reporting. |
| | 3. | The Audit Committee shall pre-approve certain non-audit services to the Fund and its Service Affiliates pursuant to procedures set forth in the Policy. |
| | 4. | The Audit Committee, from time to time, may designate one or more of its members who are Independent Directors (each a “Designated Member”) to consider, on the Audit Committee’s behalf, any non-audit services, whether to the Fund or to any Service Affiliate, that have not been pre-approved by the Audit Committee. The Designated Member also shall review, on the Audit Committee’s behalf, any proposed material change in the nature or extent of any non-audit services previously approved. In considering any requested non-audit services or proposed material change in such services, the Designated Member shall not authorize services which would exceed $50,000 in fees for such services. |
| | 5. | The independent registered public accounting firm may not provide specified prohibited non-audit services set forth in the Policy to the Fund, the Fund’s investment adviser, the Service Affiliates or any other member of the investment company complex. |
| | (e) | (2) One hundred percent of the services described in items 4(b) through 4(d) were approved in accordance with the Audit Committee’s Pre-Approval Policy. As a result, none of such services was approved pursuant to paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X. |
| | (f) | None of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the fiscal year ended December 31, 2017, were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees. |
| | (g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity |
| | controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were: |
$62,721 for the fiscal year ended December 31, 2016; $58,487 for the fiscal year ended December 31, 2017.
| | (h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
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 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 the 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 registrant’s 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Code of Ethics is filed herewith.
(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.
(a)(4) 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: March 1, 2018 | | 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: March 1, 2018 | | By: | | /s/ James E. Davey |
| | | | James E. Davey, President and |
| | | | Chief Executive Officer |
| | | | |
Date: March 1, 2018 | | By: | | /s/ Laura S. Quade |
| | | | Laura S. Quade, Treasurer |
