UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-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 R. 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, 2019
FormN-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 underRule 30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-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.
1
Item 1. Reports to Stockholders.
A MESSAGE FROM THE PRESIDENT
Dear Shareholders:
Thank you for investing in Hartford HLS Funds. The following is the Funds’ Annual Report covering the period from January 1, 2019 to December 31, 2019.
Market Review
During the 12 months ended December 31, 2019, U.S. stocks, as measured by the S&P 500 Index1, gained a healthy 31.49%, as U.S. consumers continued their strong
support for a domestic economic expansion lasting longer than any on record, according to the National Bureau of Economic Research.
The past year witnessed spasms of market volatility that seemed to come and go. In early August, 2019, for example, concerns about U.S.-China trade policy caused the Chicago Board Options Exchange’s VIX Volatility Index2 to more than double. For the remainder of the year, volatility receded, despite persistent U.S.-China trade tensions, ongoing uncertainty surrounding the 2020 U.S. elections, and the still unknown impact of President Trump’s impeachment by the U.S. House of Representatives.
Significantly, an agreement in December 2019 between the U.S. and China to delay implementation of U.S. tariffs calmed markets for the remaining portion of the period. In addition, the Brexit crisis (the United Kingdom’s exit from the European Union) appears headed for resolution, which appears to have reduced global market uncertainty to some degree. That said, economic data continues to reflect signs of a slowing global economy, freeing most central banks to continue pursuing a more accommodative monetary policy.
By contrast, after three rate cuts during 2019, the U.S. Federal Reserve is expected to pause further reductions, signaling reduced fears of an imminent U.S. recession. As of November, the U.S. unemployment rate stood at 3.5%, reflecting job gains in healthcare, professional and technical services, and in manufacturing.
Unforeseen political surprises at home, combined with other potential economic and geopolitical risks abroad, spell caution as we move through the late cycle of the current economic expansion. For this reason, 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 find a fit within our family of funds as you work toward your unique investment 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. |
| 2 | “VIX,” commonly referred to as the “Fear Index,” is the ticker symbol for the Chicago Board Options Exchange (Cboe) Volatility Index and measures the market’s expectation of 30-day volatility. |
Hartford HLS Funds
Table of Contents
The views expressed in each Fund’s Manager Discussion contained in the Fund Overview section are views of that Fund’ssub-adviser and portfolio management team through the end of the period and are subject to change based on market and other conditions. Each Fund’s Manager Discussion is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described, if any, do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable. Holdings and characteristics are subject to change. Fund performance reflected in each Fund’s Manager Discussion reflects the returns of such Fund’s Class IA shares. Returns for such Fund’s other classes differ only to the extent that the classes do not have the same expenses.
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| Hartford Balanced HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 3/31/1983 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 22.80% | | | | 7.40% | | | | 9.30% | |
Class IB | | | 22.47% | | | | 7.13% | | | | 9.02% | |
60% S&P 500 Index/ 35% Bloomberg Barclays
Government/Credit Bond Index/ 5% ICE
BofAML US3-Month Treasury Bill Index1 | | | 22.20% | | | | 8.34% | | | | 9.68% | |
S&P 500 Index | | | 31.49% | | | | 11.70% | | | | 13.56% | |
Bloomberg Barclays Government/Credit
Bond Index | | | 9.71% | | | | 3.23% | | | | 3.96% | |
ICE BofAML US3-Month Treasury Bill Index | | | 2.28% | | | | 1.07% | | | | 0.58% | |
| 1 | Calculated by Hartford Funds Management Company, LLC |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
Performance information may reflect historical or current waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.
As shown in the Fund’s current prospectus, the gross expense ratios are as follows: 0.66% (Class IA) and 0.91% (Class IB). The net expense ratios as shown in the Fund’s current prospectus are as follows: 0.63% (Class IA) and 0.88% (Class IB). Gross expenses do not reflect fee waiver arrangements. Net expenses reflect such arrangements, which remain in effect until April 30, 2020 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Adam H. Illfelder, CFA
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
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Balanced HLS Fund returned 22.80% for the twelve-month period ended December 31, 2019, outperforming the Fund’s custom benchmark, which is comprised of 60% S&P 500 Index, 35% Bloomberg Barclays Government/Credit Bond Index, and 5% ICE BofAML US3-Month Treasury Bill Index, which returned 22.20% for the same period. Individually, the S&P 500 Index, Bloomberg Barclays Government/Credit Bond Index, and ICE BofAML US3-Month Treasury Bill Index returned 31.49%, 9.71%, and 2.28%, respectively, during the period. For the same period, the Class IA shares of the Fund outperformed the 20.51% average return of the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a group of funds that hold between60%-80% in equity securities, with the remainder invested in bonds, cash, and cash equivalents.
Why did the Fund perform this way?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. U.S. equity markets surged in the fourth quarter, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies.
During the twelve-month period, all of the eleven sectors within the S&P 500 Index posted positive returns, led by the Information Technology (+50%), Communication Services (+33%), and Financials (+32%) sectors, while the Energy (+12%) and Healthcare (+21%) sectors lagged on a relative basis.
Over the period, global fixed-income markets generated largely positive total returns, driven by a decline in sovereign debt yields across most markets, particularly in the first three quarters of 2019. At the end of the period, yields increased across most markets amid stabilizing global activity indicators and progress on trade talks, despite continued accommodative global central bank policies. Geopolitical uncertainty remained elevated amid ongoing trade talks between the U.S. and China, negotiations surrounding the U.K.’s exit from the EU (also known as “Brexit”), and U.S. presidential impeachment proceedings. Despite these concerns, corporate bond spreads tightened over optimism that
monetary accommodation could offset the drag on global growth from restrictive trade policies. The U.S. dollar cemented its safe-haven status, strengthening versus most currencies amid trade frictions and slowing global growth prospects. Inflation showed no meaningful acceleration even as wage growth edged higher.
For much of the year, sovereign debt yields fell due to global economic uncertainty, accommodative shifts by central banks, and escalating trade tensions. Most major credit risk sectors posted positive returns over the period. Higher-yielding sectors outperformed investment-grade credit, benefiting from continued investor demand for yield-producing assets.
During the period, asset allocation decisions drove benchmark-relative outperformance. The Fund was generally overweight equities and underweight fixed income and cash relative to its 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 sector allocation, which is a residual of ourbottom-up security selection process. The Fund’s underweight allocation to the Information Technology sector and overweight to the Healthcare sector detracted most from performance. This was partially offset by the Fund’s underweight allocation in the Consumer Staples and Utilities sectors. Security selection also detracted from relative results, primarily within the Information Technology, Communication Services, and Consumer Staples sectors. Strong selection within the Financials, Industrials, and Healthcare sectors partially offset these results.
Stocks that detracted the most from returns relative to the S&P 500 Index in the equity portion of the Fund during the period were Apple (Information Technology), Facebook (Communication Services), and Tapestry (Consumer Discretionary). We sold out of Apple, a provider of consumer electronics, at the beginning of the year. Over the course of the year, the stock returned more than 80% on the back of strong earnings and a surge in sales in its wearable segment. In particular, sales of Apple Watch, AirPods, and Beats headphones nearly tripled in the fourth quarter of 2019 on a year-over-year basis. We initiated a position in Facebook halfway through the year after the stock had already risen significantly from its starting point at the beginning of the year. Shares climbed in the latter half of the year after the company reported steady user growth and strong revenue in the third quarter. Although the Fund’s position ended the period with a gain, it detracted
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| Hartford Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
from results relative to the S&P 500 Index, as the Fund did not hold the name earlier in the year. Shares of Tapestry, a luxury goods company formerly known as Coach, fell after the company missed on earnings and cut guidance early in the year, citing a volatile macroeconomic and geopolitical backdrop. In the second half of the year the stock was weighed down when the Kate Spade line did not return to sales growth as predicted, prompting the company to pull back on store openings for the brand. TD Ameritrade (Financials), Nektar Therapeutics (Healthcare), and Tapestry (Consumer Discretionary) were the top detractors from absolute returns during the period.
Top contributors to performance relative to the S&P 500 Index in the equity portion of the Fund during the period included KLA (Information Technology), Qualcomm (Information Technology), and Fortune Brands Home (Industrials). Shares of KLA, a semiconductor equipment company, traded higher on strong earnings and an upward revision in guidance. Some analysts see profit increasing due to advanced chips for 5G smartphones and artificial intelligence devices boosting demand for KLA’s chip-inspection equipment in the next few years. The stock also benefited from secular tailwinds from expectations around improved memory-chip prices and a return to growth for the industry. Shares of Qualcomm jumped early in the year after announcing it had reached a settlement with Apple ending a long-running legal dispute over royalty payments. In the fourth quarter of 2019, the company raised guidance on expectations of increased demand for its 5G technology as the market continues to accelerate. Shares of Fortune Brands Home, a U.S.-based provider of home and security products, rose after the stock was upgraded by some analysts on the outlook that exposure to repair and remodeling may offset concerns about a cyclical peak in homebuilding. Microsoft (Information Technology), Alphabet (Communication Services), and JPMorgan Chase (Financials) 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 credit was the largest contributor to outperformance relative to the Bloomberg Barclays Government/Credit Bond Index, particularly selection within the Industrials, Financials and Taxable Municipals sectors. An overweight to investment-grade credit was a modestly positive contributor overall, as positive impacts from an overweight to the Financials and Taxable Municipals sectors were largely offset by a negative impact from an underweight to the Industrials and Sovereign Bonds.Out-of-benchmark allocations to securitized sectors such as agency mortgage-backed securities (MBS) pass-throughs, collateralized loan obligations (CLOs),non-agency mortgage backed securities (NA MBS), and commercial mortgage-backed securities (CMBS) all contributed positively to performance. Duration/yield curve positioning contributed modestly over the period, particularly long positioning in the intermediate region of the yield curve. A modestout-of-benchmark allocation to Treasury Inflation-Protected Securities (TIPS) also contributed positively to performance.
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 of the end of the period?
The U.S. economy grew 2.1% in the third quarter of 2019, with healthy consumer spending serving as the key driver of economic growth. The labor market remained strong, with job growth consistently exceeding
expectations, wage growth hovering around 3%, and unemployment falling to a historic low of 3.5%. U.S. small business sentiment rose in November 2019, adding to signs that a key part of the economy is on positive footing. The Conference Board reported that consumer confidence remained elevated but eased throughout the quarter as expectations and optimism moderated amid a volatile global environment.
On the fixed income side, we believe credit valuations are modestly high given risks around geopolitics, trade tensions, and elections; however, supportive global central banks may continue to support asset valuations. We expect global inflation to remain benign, making it unlikely that we see a sustained move higher in global interest rates in 2020. We have positioned the fixed income portion of the Fund to be slightly overweight to duration relative to the Bloomberg Barclays Government/Credit Bond Index.
While we are increasingly cautious around the cycle and believe that credit fundamentals have deteriorated in part due to slowing earning growth, credit remains the main investment focus of the portfolio and we continue to look for opportunities within the sector. The Fund is overweight corporate credit relative to the Bloomberg Barclays Government/Credit Bond Index and has a bias towards more defensive sectors like Utilities and Telecommunications. We believe that the Taxable Municipals sector remains fairly valued and a high-quality diversifier relative to our corporate bond risk. We remain overweight to the sector, but have slightly reduced it recently, particularly within thenot-for-profit hospitals space given secular challenges and tight valuations.
Within equities, the Fund ended the period with the Healthcare sector as its largest overweight and the Consumer Staples sector as its largest underweight. Within fixed income, we had a moderatelypro-cyclical risk posture as of the end of the period, continuing to favor investment-grade credit. As of the end of the period, we increased the Fund’sout-of-benchmark mortgage allocation and favored low to mid coupon agency pass-throughs and collateralized mortgage obligations (CMOs) for their favorable prepayment profile. As of the end of the period, the Fund held a modestout-of-benchmark allocation to prime, NA MBS. As of the end of the period, the Fund also held anout-of-benchmark allocations to the securitized sectors such as asset backed securities, CLOs, and CMBS, which we believe offer attractive value and diversification relative to corporates. However, we are focused on acquiring high-quality issuance and senior portions of the capital structure in the securitized space.
At the end of the period, the Fund’s equity exposure was at 68.5% compared to 60% in its custom benchmark.
Important Risks
Investing involves risk, including the possible loss of principal. The Fund seeks to achieve its investment objective by allocating assets among different asset classes. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.•Mortgage related- and asset-backed securities’ risks include credit, interest-rate, prepayment,
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| Hartford Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
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(1)
as of December 31, 2019
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | |
Common Stocks | | | 67.7 | % |
| | | | |
Total | | | 67.7 | % |
| | | | |
Fixed Income Securities | |
Asset & Commercial Mortgage Backed Securities | | | 2.7 | % |
Corporate Bonds | | | 17.6 | |
Foreign Government Obligations | | | 0.5 | |
Municipal Bonds | | | 0.9 | |
U.S. Government Agencies(2) | | | 2.3 | |
U.S. Government Securities | | | 7.1 | |
| | | | |
Total | | | 31.1 | % |
| | | | |
Short-Term Investments | | | 1.0 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
| (2) | All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of December 31, 2019. |
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| Hartford Capital Appreciation HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 4/02/1984 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 31.28% | | | | 9.72% | | | | 11.23% | |
Class IB | | | 30.96% | | | | 9.45% | | | | 10.95% | |
Class IC | | | 30.63% | | | | 9.17% | | | | 10.68% | |
Russell 3000 Index | | | 31.02% | | | | 11.24% | | | | 13.42% | |
S&P 500 Index | | | 31.49% | | | | 11.70% | | | | 13.56% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 the12b-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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.67%, 0.92% and 1.17%, respectively. Gross and net
expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
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| Hartford Capital Appreciation HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Gregg R. Thomas, CFA
Senior Managing Director and Director of Investment Strategy
Wellington Management Company LLP
Tom S. Simon, CFA, FRM
Senior Managing Director and Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Capital Appreciation HLS Fund returned 31.28% for the twelve-month period ended December 31, 2019, outperforming one of its benchmarks, the Russell 3000 Index, which returned 31.02% for the same period. For the same period, Class IA shares of the Fund underperformed its other benchmark, the S&P 500 Index, which returned 31.49% for the same period. For the same period, the Class IA shares of the Fund outperformed the 28.15% average return of the LipperMulti-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?
United States (U.S.) equities, as measured by the Russell 3000 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved trade tensions between the U.S. and its trading partners unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, as the U.S. economy remained resilient despite elevated geopolitical uncertainties and slowing global growth. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions continued to be volatile during the fourth quarter of 2019, but eased in December after the U.S. and China reached a phase one trade agreement.
Returns varied by market cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. All eleven sectors in the Russell 3000 Index had positive returns during the period. The Information Technology (+49%), Communication Services (+32%), and Financials (+31%) sectors were the top performers, while the Energy (+10), Healthcare (+22%), and Materials (+24%) sectors lagged on a relative basis.
Sector allocation, a result of ourbottom-up security selection process, detracted from performance relative to the Russell 3000 Index during the period. Underweight exposure to the Information Technology sector detracted the most and was only partially offset by an underweight exposure to the Energy sector, which contributed positively. Security selection contributed positively to performance relative to the Russell 3000 Index during the period. Strong stock selection in the Healthcare, Consumer Discretionary, and Materials sectors was only partially offset by weaker selection in the Communication Services, Information Technology, and Consumer Staples sectors, which detracted from relative performance.
Strategies included in the Fund are chosen based on extensive analysis of qualitative and quantitative factors. Risk factors managed within the overall portfolio include but are not limited to: growth, value, momentum, contrarian, high volatility, low volatility, quality and leverage. The Fund’s style factor exposures detracted from performance led by exposure to higher volatility factors; this was partially offset by the Fund’s smaller capitalization footprint and exposure to momentum and value factors. International exposure (country and currency) contributed positively to performance, with the Fund’s exposure within North America (United States) and Europe (Belgium and Germany) contributing the most to relative performance, and exposure to Japan detracting from relative performance.
The largest detractors from performance relative to the Russell 3000 Index over the period were underweight exposures to Apple (Information Technology) and Microsoft (Information Technology) as well as anout-of-benchmark exposure to Uber Technologies (Industrials). Apple engages in designing, manufacturing, and marketing mobile communication, media devices, personal computers, and portable digital music players. Apple’s stock was up during the period as the company repeatedly announced above-consensus earnings. Towards the end of the year, the services segment reaccelerated and iPhone volume forecasts improved leading to a stronger outlook for the company moving forward. We initiated a position in the stock during the period but the Fund remains underweight. The Fund’s underweight exposure to Microsoft, relative to the Russell 3000 Index, was another top detractor from relative performance. Strong earnings throughout the year propelled the stock higher during the year. In particular, growth in Azure, the company’s commercial cloud offering, helped overcome some of the weakness within the company’s gaming unit. We remain underweight relative to the benchmark and trimmed the Fund’s position during the period. Uber Technologies, a technology platform for people and things mobility, also detracted from relative performance. During the period, the valuation of the Fund’s private placement in the company declined amid well publicized negative events and the ultimate departure of its CEO. Following the initial public offering (IPO), the company delivered mixed
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| Hartford Capital Appreciation HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
results which drove the stock price down. As of the end of the period, the Fund continued to own the stock. 2U (Information Technology) and Pinterest (Communication Services) were among the top absolute detractors from performance during the period.
The largest contributors during the period to performance relative to the Russell 3000 Index were CoStar Group (Industrials), lack of exposure to Berkshire Hathaway (Financials), and Advanced Micro Devices (Information Technology). Costar Group is a provider of data and analytics for the commercial real estate industry. Shares of the company trended higher throughout the year as the company consistently met or exceeded market expectations for quarterly results during the year. We reduced the Fund’s exposure during the period; however, we still believe the stock is well positioned to benefit from continued positive company-specific and macro conditions. Berkshire Hathaway is a diversified company operating in property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing, and services. Not holding the stock contributed positively to performance as the share price moved higher during the period but underperformed relative to the broader market. As of the end of the period, the Fund did not hold the stock. Advanced Micro Devices, a semiconductor manufacturer, reported strong results throughout the period that were in line with consensus estimates. Results were driven by strong sales of new client and server CPU business in addition to benefiting from a recovering gaming GPU market. As of the end of the period, the Fund continued to hold the stock. American Tower (Real Estate) and Microsoft (Information Technology) were among the top absolute contributors during the period.
During the period, the Fund, at times, uses derivative instruments such as currency forwards to hedge currency risk and/or equity index futures to hedge the market risk. During the period, the use of currency forwards did not have a significant impact on performance, while the use of equity index futures contributed modestly to results.
What is the outlook as of the end of the period?
At the end of the period, macro challenges created a volatile backdrop for the market in 2019, and we expect this to persist into the new year. We note an unusual lack of consensus across the industry around the macroeconomic outlook as of the end of the period, which leads to a wide range of potential outcomes from our perspective. As a result, we seek to balance the Fund’s risk allocations in an effort to guard against a possible downturn without giving up the potential for participating in the event of a market reacceleration. In our capital allocation framework, we seek to balance risk factor exposure in the Fund by allocating to underlying managers with varying investment styles, but all of whom focus on growth of capital as an objective.
In addition to persistent market volatility, we believe there could also be persistence in the factor volatility that we saw in 2019. We monitor the portfolio for meaningful changes in risk characteristics and seek to actively manage allocations with respect to a changing risk landscape. To that end, we seek to balance risk relative to various potential market outcomes.
At the end of the period, the Fund’s largest overweights were to the Healthcare and Industrials sectors, while the Fund’s largest underweights were to the Information Technology and Financials sectors, relative to the Russell 3000 Index.
Important Risks
Investing involves risk, including the possible loss of principal. The Fund seeks to achieve its investment objective by allocating assets among different portfolio management teams. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Small- andmid-cap securities can have greater risks and volatility thanlarge-cap securities.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks are generally greater for investments in emerging markets.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 8.0 | % |
Consumer Discretionary | | | 11.5 | |
Consumer Staples | | | 6.5 | |
Energy | | | 2.9 | |
Financials | | | 11.7 | |
Health Care | | | 17.8 | |
Industrials | | | 12.2 | |
Information Technology | | | 16.8 | |
Materials | | | 2.5 | |
Real Estate | | | 4.9 | |
Utilities | | | 3.3 | |
| | | | |
Total | | | 98.1 | % |
| | | | |
Short-Term Investments | | | 2.8 | |
Other Assets & Liabilities | | | (0.9 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 5/29/1998 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 34.12% | | | | 12.61% | | | | 14.51% | |
Class IB | | | 33.76% | | | | 12.33% | | | | 14.22% | |
S&P 500 Index | | | 31.49% | | | | 11.70% | | | | 13.56% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s prospectus dated May 1, 2019, the total annual fund operating expense ratios for Class IA and Class IB were 0.78% and 1.03%, respectively. The Fund filed a supplement to its prospectus, dated November 27, 2019, with the U.S. Securities and Exchange Commission that updated the Fund’s total annual fund operating expense table effective January 1, 2020. However, the information in this annual report is as of December 31, 2019 and does not reflect any changes made to the total annual fund operating expense table in the prospectus, as supplemented. The total annual fund
operating expense ratios shown in the supplement are as follows: 0.73% (Class IA) and 0.98% (Class IB). Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Disciplined Equity HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Mammen Chally, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Douglas W. McLane, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
David A. Siegle, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Disciplined Equity HLS Fund returned 34.12% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the S&P 500 Index, which returned 31.49% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 29.61% average return of the LipperLarge-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected given that theRepublican-led Senate is unlikely to support his impeachment.
Returns varied by market cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, all eleven sectors within the S&P 500 Index rose, led by the Information Technology (+50%), Communication Services (+33%), and Financials (+32%) sectors.
Security selection was the primary contributor to returns relative to the S&P 500 Index during the period, primarily within the Industrials, Healthcare, and Financials sectors, which more than offset weaker selection within the Energy and Communication Services sectors, which detracted from relative performance. Sector allocation, which is a residual of ourbottom-up security selection process, detracted from relative results driven by an overweight to the Healthcare sector and an underweight to the Information Technology sector. This was partially offset by an underweight allocation to the Energy sector, which contributed positively to relative performance.
Top contributors to performance relative to the S&P 500 Index over the period were Leidos Holdings (Information Technology), Teradyne (Information Technology), and not owning Pfizer (Healthcare). Shares of Leidos advanced during the period, fueled by strong earnings. More recently, the company announced a $1.65 billion deal to acquire cybersecurity firm Dynetics. The purchase is expected to add both sales growth and margins. Shares of the chip maker Teradyne also rose during the period. Due to strength in China for smartphone testing and base station testing, the company finished 2019 on a very strong note with an aggressive 5G base station camp. Pfizer is a U.S.-based biopharmaceutical company. The stock underperformed on the announcement of the company’s plans to merge itsoff-patent drugs business with generic drug manufacturer Mylan, which the market did not like. Apple (Information Technology) was the top absolute contributor to performance during the period.
The largest detractors from performance relative to the S&P 500 Index over the period were Apple (Information Technology), NetApp (Information Technology), and GoDaddy (Information Technology). Shares of the tech giant Apple advanced during the period. The company recently reported positive fourth-quarter 2019 results, beating consensus estimates and benefiting from a surge in sales in its wearable market. The Fund’s underweight position in the company’s stock detracted from relative results. GoDaddy, one of the global leaders in domain name registry and web hosting and business applications, was
|
| Hartford Disciplined Equity HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
among the top detractors from relative performance. Shares of the company underperformed after a slowdown in growth in the company’s web hosting business and a CEO transition. Shares of NetApp declined during the period after the company announced disappointing first-quarter fiscal year results and revised its previously issued guidance for full year 2020. NetApp was the top absolute detractor during the period, and we eliminated the Fund’s position.
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 of the end of the period?
As we look ahead to 2020, many of the constructive fundamental drivers of U.S. economic growth in 2019 persist. We believe labor markets remain healthy, and wage gains continue to bolster consumer confidence, but may not trigger outsized inflation due to continued productivity improvements. In our view, the U.S. housing market has turned the corner after six quarters of negative growth, responding to rate cuts by the Fed. Moving forward, Fed action is likely to be more gradual, having now achieved targeted levels of inflation. This may also result in less volatility for the U.S. dollar.
We believe trade negotiations between the U.S. and China will remain vitally important to markets. In our view, the year ended with encouraging progress; the “List 4” tariffs slated for December implementation were delayed, and indications that forward progress for a phase one agreement were in place. Additionally, the U.S. House of Representatives passed thetri-party United States-Mexico-Canada Agreement (USMCA), a replacement for the North American Free Trade Agreement (NAFTA), which is expected to be ratified by the U.S. Senate. The ratification of this trade agreement is expected to provide important certainty to North American supply chains. As the new year begins, we believe that U.S. politics will first be dominated by a historic presidential impeachment trial in the U.S. Senate, before yielding to a rapid succession of Democratic primaries which will provide more certainty into both the eventual Democratic candidate as well as the main platform issues to be put forward by that party in the presidential election. The outcome at the ballot box could warrant future action in the Fund, but given the wide range of possible outcomes at this point, we believe that this bears more monitoring than action at this time.
At the end of the period, the Fund’s largest overweights relative to the S&P 500 Index were to the Healthcare, Consumer Staples, and Industrials sectors, while the Fund’s largest underweights relative to the S&P 500 Index were to the Communication Services, Energy, and Information Technology sectors.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 7.1 | % |
Consumer Discretionary | | | 9.1 | |
Consumer Staples | | | 10.4 | |
Energy | | | 1.6 | |
Financials | | | 13.7 | |
Health Care | | | 17.6 | |
Industrials | | | 10.5 | |
Information Technology | | | 20.8 | |
Materials | | | 1.9 | |
Real Estate | | | 2.4 | |
Utilities | | | 4.6 | |
| | | | |
Total | | | 99.7 | % |
| | | | |
Short-Term Investments | | | 0.4 | |
Other Assets & Liabilities | | | (0.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 3/09/1994 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 28.60% | | | | 10.35% | | | | 12.26% | |
Class IB | | | 28.30% | | | | 10.08% | | | | 11.98% | |
S&P 500 Index | | | 31.49% | | | | 11.70% | | | | 13.56% | |
Russell 1000 Value Index | | | 26.54% | | | | 8.29% | | | | 11.80% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.68% and 0.93%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Dividend and Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
Nataliya Kofman
Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
* Edward P. Bousa, CFA announced his plan to retire, and effective June 30, 2020, he will no longer serve as a portfolio manager for the Fund.
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Dividend and Growth HLS Fund returned 28.60% for the twelve-month period ended December 31, 2019, underperforming one of its benchmarks, the S&P 500 Index, which returned 31.49% for the same period. For the same period, Class IA shares of the Fund outperformed its other benchmark, the Russell 1000 Value Index, which returned 26.54% for the same period. For the same period, the Class IA shares of the Fund outperformed the 24.43% 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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed
policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected given that the Republican-led Senate is unlikely to support his impeachment.
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, all eleven sectors within the S&P 500 Index posted positive returns, led by the Information Technology (+50%), Communication Services (+33%), and Financials (+32%) sectors. The Energy (+12%), Healthcare (+21%), and Materials (+25%) sectors lagged on a relative basis.
Sector allocation, a result of our bottom-up stock selection process, was the primary driver of underperformance relative to the S&P 500 Index during the period. An underweight to the Information Technology sector and an overweight to the Energy sector detracted from relative performance. This was partially offset by underweights to the Consumer Discretionary and Consumer Staples sectors, which contributed positively to relative performance. Additionally, security selection positively contributed to relative performance during the period. Strong selection within the Energy, Financials, and Industrials sectors were partially offset by weaker selection within the Information Technology and Communication Services sectors, which detracted from relative performance.
The Fund’s top detractor from performance relative to the S&P 500 Index was the Fund’s underweight to Apple (Information Technology). Returns were also held back by overweights to Verizon Communications (Communication Services) and Pfizer (Healthcare). Shares of Apple gained throughout the year, following the company’s strong services acceleration, in addition to strength in the company’s wearables division, which includes watches, AirPods, and Beats headphones. Despite reporting strong wireless service revenue, coupled with a positive
|
| Hartford Dividend and Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
outlook, Verizon’s stock price faltered during the period as net customer additions were a bit weaker than anticipated. Pfizer’s share price declined after the company announced its Upjohn business merger with Mylan.
Top contributors to performance relative to the S&P 500 Index over the period included overweight allocations to Hess (Energy) and KLA (Information Technology), as well as not holding benchmark constituent Berkshire Hathaway (Financials). Hess traded well due to higher oil prices over the period, and we believe the company remains well positioned over the next several years due to its significant oil discovery in Guyana. KLA continued to outperform its semiconductor equipment peer group with strong fourth-quarter 2019 earnings and guidance for September that beat consensus expectations. The Fund’s overweight position in KLA also contributed positively to relative performance during the period. Not holding Berkshire Hathaway contributed positively to performance as the share price moved higher during the period but underperformed relative to the broader market. As of the end of the period, we do not hold Berkshire Hathaway in the Fund.
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 of the end of the period?
Despite much volatility and changes in market leadership throughout 2019, the combination of stabilizing economic data, accommodative central banks, and continued optimism around an eventual trade deal between the U.S. and China provided a favorable backdrop for equities. We expect that 2020 will be somewhat more challenging for robust stock returns due to higher valuations at the start of the year, limited room for further easing by central banks, and the many uncertainties related to geopolitics.
Notably, the consumer was particularly strong in 2019 as low unemployment, tax rebates, and solid spending helped propel the economy forward. While we believe the economy will still benefit from strong consumer support, it will likely be less significant. We are enthusiastic about the prospects for many individual businesses.
At the end of the period, the Fund’s largest overweights relative to the S&P 500 Index were to the Financials, Energy, and Healthcare sectors, while the Fund’s largest underweights were to the Information Technology and Consumer Discretionary sectors.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•For dividend-paying stocks, dividends are not guaranteed and may decrease without notice.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 9.5 | % |
Consumer Discretionary | | | 5.4 | |
Consumer Staples | | | 5.6 | |
Energy | | | 7.7 | |
Financials | | | 20.7 | |
Health Care | | | 16.2 | |
Industrials | | | 8.7 | |
Information Technology | | | 14.5 | |
Materials | | | 3.1 | |
Real Estate | | | 3.1 | |
Utilities | | | 3.9 | |
| | | | |
Total | | | 98.4 | % |
| | | | |
Short-Term Investments | | | 1.6 | |
Other Assets & Liabilities | | | 0.0 | * |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 9/30/1998 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 32.61% | | | | 13.28% | | | | 12.67% | |
Class IB | | | 32.29% | | | | 12.98% | | | | 12.38% | |
MSCI World Growth Index (Net) | | | 33.68% | | | | 11.09% | | | | 11.08% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.80% and 1.05%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Global Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
John A. Boselli, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Matthew D. Hudson, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Global Growth HLS Fund returned 32.61% for the twelve-month period ended December 31, 2019, underperforming its benchmark, the MSCI World Growth Index (Net), which returned 33.68% for the same period. For the same period, the Class IA shares of the Fund outperformed the 29.19% average return of the Lipper GlobalMulti-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?
For the twelve-month period ended December 31, 2019, global equities rose more than 26.6% as measured by the MSCI ACWI Index. In the first quarter of 2019, global markets recovered and surged due to productive trade negotiations between the U.S. and China, and due to accommodative rhetoric and policy actions from the major central banks. In the second quarter of 2019, global equities rose for the second straight quarter. Trade tensions between China and the U.S. escalated in May but eased at the end of the quarter after the two countries agreed to resume trade negotiations at the G20 summit. The United Kingdom’s (U.K.’s) exit from the European Union (EU), also known as Brexit, was a major concern, with the U.K. avoiding an abruptno-deal departure after the EU leaders granted the U.K. a flexible extension. U.K. Prime Minister Theresa May announced that she would resign after failing to secure a Brexit deal. In the third quarter of 2019, Boris Johnson was appointed as the new prime minister of the U.K. after his victory in the Conservative Party leadership contest. U.K. opposition parties vowed to block Prime Minister Johnson’s bid for a general election and Parliament passed legislation requiring him to request an additional extension to the Brexit process if he failed to secure an acceptable deal. On the monetary front, the U.S. Federal Reserve (Fed) cut interest rates in July, September, and October to extend the U.S. economic expansion amid a slowdown in growth and trade uncertainty. The European Central Bank (ECB) unveiled a sweeping, long-term economic stimulus package to bolster the Eurozone economy against slowing growth and trade frictions, including an open-ended asset purchase program and more favorable bank lending conditions. In the fourth quarter, waning recession fears and forecasts for improving global growth in 2020 helped to bolster risk sentiment, while geopolitics and trade disputes continued to be major drivers of market volatility. The U.S. canceled tariffs that were scheduled to take effect in an effort to secure a phase one trade deal with China. U.K. equities rose after the Conservative Party’s victory in the general election lifted the uncertainty about the country’s departure from the EU and eliminated concerns about the Labor Party’s plans to nationalize large swaths of the nation’s economy.
During the period, U.S. equities outperformednon-U.S. equities, as measured by the S&P 500 Index and MSCI EAFE Index, respectively, and emerging-market equities underperformed their developed-market counterparts, as measured by the MSCI Emerging Markets Index and MSCI World Index, respectively. Within the MSCI World Growth Index (Net), all sectors posted positive returns during the period. The Information Technology (54%), Materials (34%), and Communication Services (33%) sectors gained the most during the period.
The Fund slightly underperformed the MSCI World Growth Index (Net) during the period. In particular, selection in the Information Technology, Communication Services, and Consumer Staples sectors detracted most from relative performance, which was partially offset by stronger selection in the Financials, Real Estate, and Industrials sectors, all of which contributed positively to relative performance. The Fund’s overweight to the Healthcare, Financials, and Communication Services sectors detracted most from relative performance. However, this was partially offset by an overweight to the Information Technology sector, which contributed positively to relative performance.
The top detractors from the Fund’s performance relative to the MSCI World Growth Index (Net) were an underweight position in Apple (Information Technology), and overweight positions in TD Ameritrade (Financials) and Uber (Industrials). Shares of Apple, which specializes in mobile devices and digital content distribution, outperformed over the period. In Apple management’s second-quarter release, the company announced strong guidance ahead of expectations as iPhone results were not as bad as feared, services remained strong, and wearables surprised to the upside. TD Ameritrade, a U.S.-based online securities broker, announced the departure of CEO Tim Hockey. The news surprised investors and put pressure on the stock price. We sold this position in the Fund in order to invest in more attractive opportunities in our view. The shares of Uber, a technology platform offering transportation and food ordering services, experienced material regulatory and competitive pressures amid inconsistent operating results. Top absolute detractors from Fund performance included Eisai (Healthcare) and Micron Technology (Information Technology).
Top contributors to the Fund’s performance relative to the MSCI World Growth Index (Net) during the period were Advanced Micro Devices (Information Technology), Seattle Genetics (Healthcare), and MediaTek (Information Technology). Shares of Advanced Micro Devices, a semiconductor manufacturer, performed well as the company continued to grow market share across desktop, mobile, and server CPUs. Seattle Genetics, a biotechnology firm focused on developing treatments for cancer, saw its stock price rise during the period after reporting positive Phase 3 results for a drug that treats metastatic breast cancer. Semiconductor chip designer, MediaTek, posted positive results amid
|
| Hartford Global Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
rising demand for next generation technologies, such as connected consumer products and 5G internet. Microsoft (Information Technology) was a top absolute contributor to Fund 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 of the end of the period?
Looking ahead, we expect that our focus will remain on stock selection driven bybottom-up, fundamental research, regular meetings with the management of leading companies globally, and leveraging the deep research capabilities of our firm. However, we believe that risks remain on the horizon, including the upcoming U.S. elections, trade negotiations between the U.S. and China, and increased geopolitical tensions globally. We remain focused on seeking companies with improving fundamentals and catalysts that we think should lead to accelerating earnings growth above consensus expectations.
At the end of the period, the Fund’s largest sector overweights were to the Information Technology, Communication Services, and Financials sectors, while the Fund’s largest underweights were to the Industrials, Healthcare and Materials sectors, relative to the MSCI World Growth Index (Net).
Important Risks
Investing involves risk, including the possible loss of principal. The Fund seeks to achieve its investment objective by allocating assets among different portfolio management teams. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.•Mid-cap securities can have greater risk and volatility thanlarge-cap securities.•Different investment styles may go in and out of favor, which may cause the Fund to underperform the broader stock market.
Composition by Country(1)
as of December 31, 2019
| | | | |
| Country | | Percentage of
Net Assets | |
Bermuda | | | 0.7 | % |
Brazil | | | 0.4 | |
Canada | | | 1.1 | |
China | | | 4.3 | |
France | | | 2.0 | |
Germany | | | 0.6 | |
Hong Kong | | | 1.3 | |
India | | | 0.5 | |
Ireland | | | 0.5 | |
Italy | | | 1.2 | |
Japan | | | 2.0 | |
Netherlands | | | 1.4 | |
Portugal | | | 0.5 | |
Russia | | | 0.5 | |
South Korea | | | 0.5 | |
Spain | | | 0.5 | |
Sweden | | | 1.6 | |
Switzerland | | | 4.0 | |
Taiwan | | | 1.8 | |
United Kingdom | | | 5.8 | |
United States | | | 68.5 | |
Short-Term Investments | | | 1.1 | |
Other Assets & Liabilities | | | (0.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | The table above is based on Bloomberg’s country of risk classifications. For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
|
| Hartford Growth Opportunities HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 3/24/1987 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 30.68% | | | | 13.76% | | | | 14.91% | |
Class IB | | | 30.35% | | | | 13.48% | | | | 14.62% | |
Class IC | | | 30.04% | | | | 13.20% | | | | 14.34% | |
Russell 3000 Growth Index | | | 35.85% | | | | 14.23% | | | | 15.05% | |
Russell 1000 Growth Index | | | 36.39% | | | | 14.63% | | | | 15.22% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 the12b-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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA, Class IB and Class IC were 0.65%, 0.90% and 1.15%, respectively. Gross and net
expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Growth Opportunities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Michael T. Carmen, CFA*
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Stephen Mortimer
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
* Effective March 1, 2020, Michael T. Carmen, CFA will no longer serve as a portfolio manager for the Fund.
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Growth Opportunities HLS Fund returned 30.68% for the twelve-month period ended December 31, 2019, underperforming its benchmarks, the Russell 3000 Growth Index and the Russell 1000 Growth Index, which returned 35.85% and 36.39%, respectively, for the same period. For the same period, the Class IA shares of the Fund also underperformed the 31.17% average return of the LipperMulti-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during most of the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected given that theRepublican-led Senate is unlikely to support his impeachment.
Returns varied bymarket-cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, all sectors within the Russell 3000 Growth Index rose, led by the Information Technology (+51%) and Communication Services (+34%) sectors. The Energy (+6%) sector lagged on a relative basis.
The Fund’s underperformance versus the Russell 3000 Growth Index was primarily driven by adverse security selection within the Communication Services, Information Technology, and Industrials sectors. Favorable selection within the Healthcare and Consumer Discretionary sectors partially offset negative results. Sector allocation, a residual of thebottom-up stock selection process, also detracted from returns relative to the Russell 3000 Growth Index during the period, due primarily to an underweight allocation to the Information Technology sector and an overweight allocation to the Consumer Discretionary sector.
Top detractors from performance relative to the Russell 3000 Growth Index during the period included Apple (Information Technology), WeWork (Industrials), and Uber Technologies (Industrials). Shares of Apple, a provider of consumer electronics, rose over the year on strong earnings and an increase in sales in its wearable market. Sales of Apple Watch, AirPods, and Beats headphones nearly tripled in the fourth quarter of 2019 on a year-over-year basis. The Fund’s underweight to Apple relative to the Russell 3000 Growth Index detracted from relative performance. WeWork is a real estate company that provides shared workspaces. The company had filed itsS-1 registration ahead of an upcoming initial public offering (IPO) which was subsequently pulled. Investor concerns over the CEO and business model viability caused valuations to decline. Shares of Uber, a ride-hailing company, traded lower after the company reported second-quarter revenue that missed expectations and fears of a global slowdown posed difficult conditions. Pinterest (Communication Services) was a top absolute detractor from performance during the period.
Stocks that contributed the most to performance relative to the Russell 3000 Growth Index during the period were Insulet (Healthcare), Advanced Micro Devices (Information Technology), and Shopify (Information Technology). Insulet, a U.S.-based medical device company, performed well during the period. The company reported
|
| Hartford Growth Opportunities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
stronger–than-expected third-quarter 2019 results, beating consensus estimates. Furthermore, Insulet gained Federal Drug Administration (FDA) approval for the use of Novo Nordisk’s Fiasp, a fast-acting insulin. Shares of Advanced Micro Devices (AMD), a semiconductor company, rose towards the end of the period after Microsoft unveiled several new Surface laptops using AMD CPU chips. This was viewed by investors as a positive for AMD’s latest CPUs and its competitive positioning against its competitor, Intel. The company also benefited from the announcement of a phase one trade deal between the U.S. and China. Shares of Shopify, a global commerce company, rose during the period. The company reported better-than-expected results driven by international expansion and increased its 2019 income forecast guidance. Amazon (Consumer Discretionary) was a top absolute contributor to performance.
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 of the end of the period?
Looking ahead, we have a slightly more positive outlook from a macro standpoint as we begin 2020. We believe U.S. economic fundamentals remain solid, and we believe valuations are reasonable. U.S.-China trade tensions have eased, and, barring anyre-escalation or additional tariffs, we believe growth may resume. Though the upcoming U.S. election creates some uncertainty, the chances of a morepro-market outcome have increased. Across the Fund, we seek to take a balanced view and weigh potential risk and reward.
At the end of the period, ourbottom-up investment approach resulted in the Fund’s overweight exposures to the Consumer Discretionary, Healthcare, and Financials sectors, relative to the Russell 3000 Growth Index. The Fund’s largest underweights relative to the Russell 3000 Growth Index were to the Information Technology, Consumer Staples, and Real Estate sectors, at the end of the period.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•Mid-cap securities can have greater risk and volatility thanlarge-cap securities.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 10.9 | % |
Consumer Discretionary | | | 23.6 | |
Consumer Staples | | | 1.0 | |
Financials | | | 3.6 | |
Health Care | | | 19.6 | |
Industrials | | | 10.1 | |
Information Technology | | | 29.8 | |
Real Estate | | | 0.2 | |
| | | | |
Total | | | 98.8 | % |
| | | | |
Short-Term Investments | | | 3.7 | |
Other Assets & Liabilities | | | (2.5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 5/01/2000 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 33.95% | | | | 10.58% | | | | 16.19% | |
Class IB | | | 33.68% | | | | 10.31% | | | | 15.90% | |
S&P Composite 1500 Health Care Index | | | 20.87% | | | | 10.69% | | | | 15.17% | |
S&P 500 Index | | | 31.49% | | | | 11.70% | | | | 13.56% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.89% and 1.14%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Healthcare HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Healthcare HLS Fund returned 33.95% for the twelve-month period ended December 31, 2019, outperforming the Fund’s benchmarks, the S&P Composite 1500 Health Care Index, which returned 20.87%, and the S&P 500 Index, which returned 31.49%, for the same period. For the same period, the Class IA shares of the Fund outperformed the 26.24% 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?
U.S. healthcare equities (+21%) underperformed the broader U.S. equity market (+31%) and global equity market (+28%) during the period, as measured by the S&P Composite 1500 Healthcare Index, S&P 500 Index, and the MSCI World Index, respectively. Within the S&P Composite 1500 Health Care Index, the Medical Technology sector returned +29%, the Healthcare Services sector returned +21%, theLarge-cap Biopharma sector returned +16%, theMid-cap Biopharma sector returned +9%, and theSmall-cap Biopharma sector returned-5%.
The Fund outperformed the S&P Composite 1500 Health Care Index over the period due primarily to favorable security selection decisions. Security selection was strongest in the Small- andMid-cap Biopharma sectors. Sector allocation detracted from performance relative to the S&P Composite 1500 Health Care Index during the period. An overweight to the Small- andMid-cap Biopharma sectors detracted from relative results during the period, more than offsetting positive results from an underweight to theLarge-cap Biopharma sector.
Medicines Co.(Mid-cap Biopharma), Seattle Genetics(Mid-cap Biopharma), and Loxo Oncology(Mid-cap Biopharma) were the top contributors to performance relative to the S&P Composite 1500 Health Care Index during the period. Medicines Co. and Novartis announced an agreement in which Novartis would acquire Medicines Co. for $9.7 billion, or $85 per share, reflecting a 41% premium to the stock’s30-day volume weighted average price prior to the announcement. Upon this news, we eliminated the position to take profits. Seattle Genetics is a biopharmaceutical company that develops monoclonal antibody-based targeted therapies for the treatment of cancer and autoimmune diseases. Shares outperformed over the period, most notably driven by positive trial results of the drug tucatinib, which met the primary endpoint of progression-free survival in treating patients with certain types of
breast cancer. Loxo Oncology, a U.S.-based oncology-focused biopharmaceutical company, agreed to be acquired by Eli Lilly at a 68% premium in January 2019, and we subsequently eliminated the position in the Fund to take profits. The three names above were also the top contributors to absolute performance during the period.
Alkermes(Mid-cap Biopharma), Celgene(Large-cap Biopharma), and Wave Life Sciences(Small-cap Biopharma) detracted most from results relative to the S&P Composite 1500 Health Care Index over the period. Shares of Alkermes, a biopharmaceutical company commercializing neuropsychiatric drugs, detracted from relative returns, as the company reported disappointing first-quarter sales for one of its key growth products, Aristada. However, the company has a phase III drug, which is anticipated to be a safer version of the generic drug Zyprexa, used for treating schizophrenia and bipolar 1 disorder. The drug has shown positive results and a new drug application was submitted to the Food and Drug Administration (FDA) in November. The Fund’s underweight position in Celgene detracted from relative performance as shares traded higher on news that Bristol-Myers Squibb was acquiring the firm at a significant premium. Subsequently, we eliminated the position in the Fund after the news was reflected in the stock price. Wave Life Sciences is developing drugs for neurological and neuromuscular disorders. The stock’s price went down sharply on the surprise announcement that the company would be discontinuing its Duchenne muscular dystrophy program due to lack of efficacy. Additionally, the company released data for its drug being studied for use in treating Huntington’s disease, which showed disappointing efficacy and a dose-dependent response. Amneal Pharmaceuticals (biopharma) was a top detractor 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 of the end of the period?
Looking ahead to 2020, we are cautiously optimistic about the sector’s prospects, despite the upcoming presidential elections and potential macro overhang. Key focus areas for investors include the proposed nationalization of healthcare in the form of “Medicare for All,” as proposed by several leading Democratic candidates for president, and the potential for greater governmental involvement in drug pricing, some form of which seems to enjoy bipartisan support. Despite the heightened election-year rhetoric, we continue to believe that fundamental structural reform of the U.S. healthcare system is unlikely. We believe “Medicare
|
| Hartford Healthcare HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
for All” has little chance of becoming law regardless of the outcome of the 2020 elections. As for drug pricing, the biotech and pharma industry groups have stated that they would willingly relinquish some of their profits in order to reduce patientout-of-pocket drug costs and thus hopefully avoid the worst-case outcome of drug price-setting by the government. Whether any drug pricing legislation or regulation comes to pass remains to be seen, as politicians in Washington D.C. are currently preoccupied with other issues in our view.
In selecting stocks for the Fund, we seek companies that develop innovative products designed to address important unmet medical needs. Over the long term, we believe that innovation, an aging population, and the globalization of demand for cutting-edge Western-style medicines may continue to drive growth of the sector.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Risks of focusing investments on the healthcare related sector include regulatory and legal developments, patent considerations, intense competitive pressures, rapid technological changes, potential product obsolescence, and liquidity risk.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.•Small- andmid-cap securities can have greater risk and volatility thanlarge-cap securities.
Composition by Subsector(1)
as of December 31, 2019
| | | | |
| Subsector | | Percentage of
Net Assets | |
Equity Securities | |
Biotechnology | | | 23.5 | % |
Health Care Equipment & Supplies | | | 23.7 | |
Health Care Providers & Services | | | 15.4 | |
Health Care Technology | | | 1.2 | |
Life Sciences Tools & Services | | | 8.4 | |
Pharmaceuticals | | | 26.8 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 2.7 | |
Other Assets & Liabilities | | | (1.7 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These subsector classifications are used for financial reporting purposes. |
|
| Hartford High Yield HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 9/30/1998 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 15.06% | | | | 5.50% | | | | 7.09% | |
Class IB | | | 14.73% | | | | 5.23% | | | | 6.82% | |
Bloomberg Barclays U.S. Corporate High Yield Bond Index | | | 14.32% | | | | 6.13% | | | | 7.57% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 prior to March 5, 2012 represents performance of the Fund’s previoussub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012 HIMCO no longer served as thesub-adviser to the Fund.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.78% and 1.03%, respectively. Gross and net expenses are the same. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford High Yield HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Manager
Christopher A. Jones, CFA
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford High Yield HLS Fund returned 15.06% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Bloomberg Barclays U.S. Corporate High Yield Index, which returned 14.32% for the same period. For the same period, the Class IA shares of the Fund outperformed the 13.65% 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 largely positive total returns, driven by a decline in sovereign debt yields across most markets – particularly in the first three quarters of 2019. By the end of the period, yields increased across most markets amid stabilizing global activity indicators and progress on trade talks, despite continued accommodative global central bank policies. Geopolitical uncertainty remained elevated amid ongoing trade talks between the United States (U.S.) and China, negotiations surrounding the United Kingdom’s (U.K.’s) exit from the European Union (EU), also known as “Brexit”, and U.S. presidential impeachment proceedings. Despite these concerns, corporate bond spreads tightened due to optimism that monetary accommodation could offset the drag on global growth from restrictive trade policies. The U.S. dollar cemented its safe-haven status, strengthening versus most currencies amid trade frictions and slowing global growth prospects. Inflation showed no meaningful acceleration even as wage growth edged higher.
Global monetary policies continued along a more accommodative path, in aggregate. The U.S. Federal Reserve (Fed) cut interest rates three times before deciding to take a more patient approach on future adjustments. Meanwhile, the European Central Bank (ECB) launched a package of stimulus measures, including an interest rate cut, resumption of asset purchases that the central bank plans to continue “as long as necessary,” and the introduction of tiered deposit rates to exempt banks from negative interest rates. The Bank of Japan (BoJ) maintained its short-term negative interest rate policy, while pledging to guide10-year government bonds to around 0.0%. The Norges Bank, an outlier among major central banks this year, increased interest rates three times but trimmed the projected path for interest rate increases, citing global uncertainties.
For much of 2019, sovereign debt yields fell due to global economic uncertainty, accommodative shifts by central banks, and escalating trade tensions. However, yields began to increase as U.S.-China trade tensions softened later in the year. A flight to safe-haven assets earlier in the year – in addition to accommodative Fed policy – led to a decline in U.S. yields. As German bund yields fell to record lows over the year – and the entire German yield curve fell into negative territory by August – investors seeking yield put their money to work in the U.S. Persistent Brexit uncertainty contributed positively to lower yields in the U.K., while
Australian yields also dipped over the period, due to accommodative rhetoric from the Reserve Bank of Australia and weak economic data.
The Canadian dollar outperformed all major currencies in 2019, as solid economic data and higher interest rates relative to the rest of the world supported the currency. The U.S. dollar performed well against most currencies throughout the year but slid in the final months of 2019 following favorable trade policy developments. After a volatile year filled with concerns over Brexit negotiations, the British pound finished the year as the second-best performing major currency. Slowing Eurozone economic data and political uncertainty prompted weakness in the euro. The Chinese renminbi declined amid U.S.-China trade tensions and an easing of monetary policy.
Most major credit risk sectors posted positive returns over the period, against a backdrop of accommodative global central bank policies and improvements in U.S.-China trade talks. Higher-yielding sectors outperformed investment-grade credit, benefiting from continued investor demand for yield-producing assets.
The Bloomberg Barclays U.S. Corporate High Yield Index returned 14.32% for the twelve months ended December 31, 2019 and outperformed duration-equivalent Treasuries by 9.34%. The option-adjusted spread (OAS) of the index was 3.36% on December 31, 2019, which was tighter than it was twelve months ago (5.26%).
During the period, sector allocation decisions modestly detracted from the Fund’s returns relative to the Bloomberg Barclays U.S. Corporate High Yield Index, mainly driven by the Fund’s overweight allocation to the Energy sector and underweight to the Retail sector. This was partially offset by overweights to the Gaming and Financial Institutions sectors, which contributed positively to relative returns.
However, security selection decisions were strong contributors to returns relative to the Bloomberg Barclays U.S. Corporate High Yield Index, primarily driven by selection within the Energy and Financial Institutions sectors. This was partially offset by weaker selection in the Metals and Mining and Home Construction sectors, which detracted from relative performance.
Positioning in securities with higher credit quality detracted from performance relative to the Bloomberg Barclays U.S. Corporate High Yield Index during the period, primarily due to an underweight to BB rated securities.
Over the period, the Fund had a small position in the High Yield Credit Default Swap Index (CDX). The Fund’s CDX position was used for liquidity purposes and for tactically adjusting the risk posture of the Fund. This position had a positive impact on performance during the period.
The Fund also used other types of derivatives on a limited basis during the period for risk management purposes. Over the trailing twelve months, the Fund employed currency forwards to minimize active
|
| Hartford High Yield HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
currency risk from investments innon-dollar-denominated securities. Although we typically view currency forwards in conjunction with the securities intended to be hedged, on a standalone basis the currency forwards contributed positively to performance relative to the Bloomberg Barclays U.S. Corporate High Yield Index over the period.
What is the outlook as of the end of the period?
We expect range-bound high-yield spreads in 2020 with pockets of volatility presenting attractive opportunities in our view. We assign a low probability of U.S. and euro area recession in 2020, but the longer-term macro outlook remains unclear. We believe that issuer fundamentals across high-yield issuers remain solid overall as of the end of the period, but have been weakening modestly. We view spreads onCCC-rated debt as attractive and believe selectively increasing exposure to CCC rated issuers with improving credit profiles is prudent. While we believe selectively owning CCC rated bonds presents good total return opportunities, we also expect bouts of spread widening around developments on the U.S. presidential campaign, Brexit, Italian politics, and emerging markets growth that we believe will present attractive investment opportunities. We favor the Gaming sector due to favorable consumer trends and low expected supply growth; however, we remain cautious on the Retail sector, which suffers from secular decline, asbrick-and-mortar stores continue to lose market share toe-commerce companies.
The Fund ended the period with the largest overweights to the Technology and Gaming sectors and the largest underweights to the Retail and Media and Entertainment sectors. From a credit quality perspective, the Fund was overweight B rated and underweight BB rated and CCC and below-rated securities.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.•Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities.•Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.•Restricted securities may be more difficult to sell and price than other securities.
Composition by Security Type(1)
as of December 31, 2019
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 0.9 | % |
Escrows | | | 0.9 | |
| | | | |
Total | | | 1.8 | % |
| | | | |
Fixed Income Securities | | | | |
Convertible Bonds | | | 1.1 | % |
Corporate Bonds | | | 89.1 | |
Senior Floating Rate Interests | | | 5.2 | |
| | | | |
Total | | | 95.4 | % |
| | | | |
Short-Term Investments | | | 1.5 | |
Other Assets & Liabilities | | | 1.3 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
|
| Hartford International Opportunities HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 7/02/1990 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 26.43% | | | | 5.83% | | | | 6.26% | |
Class IB | | | 26.14% | | | | 5.57% | | | | 6.00% | |
MSCI ACWI ex USA Index (Net) | | | 21.51% | | | | 5.51% | | | | 4.97% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.73% and 0.98%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford International Opportunities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA of the Hartford International Opportunities HLS Fund returned 26.43% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the MSCI All Country World (ACWI) ex USA Index (Net), which returned 21.51% for the same period. For the same period, the Class IA shares of the Fund underperformed the 26.82% average return of the Lipper InternationalLarge-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?
For the twelve-month period ended December 31, 2019, international equities rose 21.51%, as measured by the MSCI ACWI ex USA Index (Net). In the first quarter of 2019, both United States (U.S.) and international markets recovered from a weak fourth quarter 2019 and surged due to productive trade negotiations between the U.S. and China, as well as by accommodative rhetoric and policy actions from the major central banks. The United Kingdom’s (U.K.’s) plan to leave the European Union (EU), also known as “Brexit,” remained a key area of concern with the British Parliament rejecting U.K. Prime Minister Theresa May’s deal for the third time. Oil prices benefited equity markets in a number of emerging markets countries, including Colombia and Russia. In the second quarter of 2019, trade tensions between China and the U.S. escalated in May but eased at the end of the quarter after the two countries agreed at the G20 summit to resume trade negotiations. Brexit was a major concern for the markets, with the U.K. avoiding an abruptno-deal departure after the EU leaders granted the U.K. a flexible extension until October 31, 2019. U.K. Prime Minister Theresa May announced that she would resign on June 7, 2019 after failing to secure a Brexit deal. In the third quarter of 2019, Boris Johnson was appointed as the new Prime Minister of the U.K. after his victory in the Conservative Party leadership contest. U.K. opposition parties vowed to block Prime Minister Johnson’s bid for a general election, and Parliament passed legislation requiring him to request an extension to the Brexit process if he failed to secure an acceptable deal. On the monetary front, the European Central Bank (ECB) unveiled a sweeping, long-term economic stimulus package to bolster the Eurozone economy against slowing growth and trade frictions, including an open-ended asset purchase program and more favorable bank lending conditions.
Emerging-markets equities lagged in the third quarter as Chinese equities were affected by trade tensions and slowing economic growth. Argentina’s stock market collapsed in August 2019 following President Mauricio Macri’s unexpected defeat byleft-wing opposition leader Alberto Fernandez in the national primary elections. In the fourth quarter of 2019, waning recession fears and forecasts for improving global
growth in 2020 helped to bolster risk sentiment among investors, while geopolitics and trade disputes continued to be major drivers of market volatility. The U.S. canceled tariffs that were scheduled to take effect on December 15, 2019 in an effort to secure a phase one trade deal with China. U.S. President Donald Trump subsequently announced that the first phase of a trade agreement would be signed on January 15, 2020, providing significant relief to global markets. U.K. equities rose after the Conservative Party’s victory in the general election lifted the uncertainty about the country’s departure from the EU and eliminated concerns about the Labor Party’s plans to nationalize large swaths of the nation’s economy. Chinese equities rebounded strongly during the fourth quarter of 2019, rebounding from the third quarter of 2019 amid the renewed trade optimism. Brazil also saw strong equity performance amidst signs of steady growth, declining inflation, and accommodative monetary policy. Finally, Argentina also recovered some of its prior quarter losses, bolstered by greater transparency into the new government’s plans to renegotiate public debt and alleviate pressing social issues.
During the period, U.S. equities outperformednon-U.S. equities, as measured by the S&P 500 Index and MSCI EAFE Index, respectively, and developed-market equities outperformed their emerging-market counterparts, as measured by the MSCI World Index and MSCI Emerging Markets Index, respectively. Within the MSCI ACWI ex USA Index (Net), all of the eleven sectors posted positive returns during the period; the Information Technology (+41%), Healthcare (+28%), and Consumer Discretionary (+28%) sectors were the top performers.
Security selection effects drove the Fund’s outperformance relative to the MSCI ACWI ex USA Index (Net) during the period. Selection was strongest within the Consumer Discretionary, Communication Services, and Financials sectors. This was partially offset by weaker selection within the Information Technology sector, which detracted from relative performance during the period. Sector allocation, a result of ourbottom-up security selection process, was a slight contributor to performance relative to the MSCI ACWI ex USA Index (Net) during the period. Relative underweights to the Energy and Financials sectors benefited results, while an overweight to the Communication Services sector partially detracted from relative performance. On a regional basis, security selection within Europe and Emerging Markets made notable positive contributions.
New Oriental Education (Consumer Discretionary), Cellnex Telecom (Communication Services), and Ferrari (Consumer Discretionary) were among the top contributors to the Fund’s performance relative to the MSCI ACWI ex USA Index (Net) during the period. New Oriental Education is a China-based educational services provider. The stock price rose following the company’s release of its fiscal year second quarter 2019 earnings in which revenue, margin, and guidance came in
|
| Hartford International Opportunities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
ahead of expectations thanks to strong momentum from the K12 segment. Shares of Cellnex, the largest independent European wireless tower operator, performed strongly after it announced the acquisition of a portfolio of towers in Italy, France, and Switzerland. Mergers & acquisitions (M&A) is a part of our investment thesis for Cellnex, and we expect the company to create value for shareholders over time by increasing tenancy ratios and driving asset efficiency from its growing asset base. The stock price for Ferrari performed well in the latter part of the twelve-month period as the Italy-based luxury sports car manufacturer posted strong first-quarter 2019 earnings which exceeded consensus expectations.
Top detractors from performance relative to the MSCI ACWI ex USA Index (Net) during the period included Unilever (Consumer Staples), Sony (Consumer Discretionary), and EnCana (Energy). Shares of Unilever fell during the latter half of the period as management announced sales were expected to miss their target for the 2019 fiscal year, citing a slowdown in the South Asia region which had been a growth driver for the company. Weakness in North America and West Africa also weighed on expectations. Sony’s stock price dropped after reporting lower-than-expected quarterly revenue led by losses within the company’s financial services division. We sold this position early in the period in favor of other opportunities. Encana is a Canadian based exploration and production (E&P) company. The company’s stock price fell over the period following the company’s mixed first-quarter 2019 earnings release, in which production came in below consensus.
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 of the end of the period?
We continue to look for indications of a stronger rebound in an environment of weakening global economic data and increasing trade-related tensions. Major central banks have signaled their willingness to pursue further accommodative policy measures to support the expansion. While we believe the economic backdrop may be supportive for some parts of the equity market, there remain unresolved risks, like the U.S.-China trade dispute, which we continue to closely monitor. In our view, this issue is likely to remain unresolved in the near-term given the multitude of issues that need to be addressed. While China remains a large component of the Fund’s opportunity set, we remain mindful that economic and political uncertainty may continue to weigh on sentiment and cause further bouts of volatility. Currently, the majority of the Fund’s exposure in China continues to be in business models that are less tied to the economic cycle and have compelling valuation in our view. We believe the Brexit issue will have broader implications for economic progress in Europe as a whole. The Fund’s positioning is a result of ourbottom-up stock selection, and we will continue to monitor any future developments for potential opportunities and risks. While the environment is not supportive of an aggressive shift, we continue to look for opportunities in economically sensitive names that are attractively valued in our view. Across sectors, we continue to seek companies that are able to exploit technologies to bring significant positive change for the market they are addressing. This could be in terms of a company’s unique business model, differentiated process, or a new product. Overall, our investment approach leads us to seek companies with the potential to improve or sustain return on invested capital to a degree that the market underestimates. At the end of the period, the Fund’s largest
overweights were in the Industrials and Communication Services sectors. The Fund was most underweight to the Materials and Financials sectors. From a regional perspective, the Fund’s largest overweight was to developed markets across Europe and the Middle East (ex U.K.), and the Fund was most underweight to Developed Asia Pacific ex Japan.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.•Mid-cap securities can have greater risks and volatility thanlarge-cap securities.•The Fund’s focus on investments in particular sectors, geographic regions or countries may increase its volatility and risk of loss if adverse developments occur.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 9.2 | % |
Consumer Discretionary | | | 11.5 | |
Consumer Staples | | | 7.9 | |
Energy | | | 4.9 | |
Financials | | | 19.5 | |
Health Care | | | 9.6 | |
Industrials | | | 14.5 | |
Information Technology | | | 9.3 | |
Materials | | | 3.7 | |
Real Estate | | | 3.9 | |
Utilities | | | 4.7 | |
| | | | |
Total | | | 98.7 | % |
| | | | |
Short-Term Investments | | | 1.4 | |
Other Assets & Liabilities | | | (0.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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. |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 7/14/1997 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 32.87% | | | | 11.73% | | | | 13.92% | |
Class IB | | | 32.49% | | | | 11.45% | | | | 13.63% | |
S&P MidCap 400 Index | | | 26.20% | | | | 9.03% | | | | 12.72% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.69% and 0.94%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
Fund Overview – (continued)
December 31, 2019 (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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap HLS Fund returned 32.87% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the S&P MidCap 400 Index, which returned 26.20% for the same period. For the same period, the Class IA shares of the Fund underperformed the 33.39% average return of the LipperMid-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose as the U.S. economy remained resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as aRepublican-led Senate is unlikely to support his impeachment.
Returns during the period varied by market cap. Small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively, underperformedlarge-cap equities, as measured by the S&P 500 Index. Ten of the eleven sectors within the S&P MidCap 400 Index posted positive returns during the period, led by the
Information Technology (+43%), Industrials (+34%), and Consumer Discretionary (+27%) sectors. The Energy(-12%), Consumer Staples (+11%), and Utilities (+13%) sectors were the worst performers.
Both selection and allocation effects contributed positively to the Fund’s performance during the period relative to the S&P MidCap 400 Index. From a selection standpoint, positive results were driven by strong selection in the Healthcare, Consumer Discretionary, and Industrials sectors. This more than offset weaker selection in the Information Technology, Communication Services, and Utilities sectors. Sector allocation, a result of thebottom-up security selection process, also contributed positively to relative performance over the period. An overweight to the Information Technology sector contributed the most to relative returns, followed by an underweight to the Energy sector. Additionally, a relative underweight to the Healthcare sector partially offset results.
Top contributors to the Fund’s performance relative to the S&P MidCap 400 Index during the period included Roku (Communication Services), Seattle Genetics (Healthcare), and Fair Isaac (Information Technology). Roku is a manufacturer of a variety of digital media players that allow customers to access internet-streamed video or audio services through televisions. The stock price rose on the back of strong quarterly results. Seattle Genetics is a biotechnology company focused on developing and commercializing innovative, empowered monoclonal antibody-based therapies for the treatment of cancer. The share price rose due to sales growth of the company’s blood cancer drug and positive trial results for a first-line treatment of bladder cancer. Fair Isaac, a provider of analytics, software and data management products, rose after reporting strong, broad-based, fiscal fourth-quarter revenue and earnings as well as solid cash flow generation. As of the end of the period, the Fund continued to hold all three positions.
Top detractors from the Fund’s returns relative to the S&P MidCap 400 Index during the period included Teradata (Information Technology), TripAdvisor (Communication Services), and 2U (Information Technology). Teradata declined throughout the year as the company experienced revenue challenges, cut its full-year adjusted earnings outlook and announced that its chief executive officer was leaving. As of the end of the period, the Fund continued to hold a position in this company. Shares of TripAdvisor fell after reporting revenue and earnings misses in the first and second quarter of 2019, respectively. The effects were compounded by negative market sentiment regarding the company’s hotels and auction businesses. We eliminated the Fund’s position late in the period in favor of other ideas. Shares of 2U, the education technology company that enables the online delivery of university graduate programs andnon-degree offerings, declined as the company lowered guidance for the full year due to a slowdown in the
Fund Overview – (continued)
December 31, 2019 (Unaudited)
revenue growth for the graduate program segment. We eliminated the Fund’s position on concerns for rising competitive intensity in that segment.
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 of the end of the period?
We believe the Fed’s accommodative policy stance has enhanced confidence that the U.S. economy can continue to grow. However, volatility in equity markets will likely remain driven by geopolitical risks. We anticipate slower growth in 2020 than we saw in 2019.
Based on ourbottom-up, company-specific research and stock selection, as of the end of the period, the Fund was most overweight to the Information Technology, Healthcare, and Industrials sectors and most underweight to the Real Estate, Materials, and Financials sectors relative to the S&P MidCap 400 Index.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Mid-cap securities can have greater risk and volatility thanlarge-cap securities.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.
Composition by Sector(1)
as of December 31, 2019
| | | | |
Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 2.5 | % |
Consumer Discretionary | | | 11.2 | |
Consumer Staples | | | 0.2 | |
Energy | | | 0.4 | |
Financials | | | 13.2 | |
Health Care | | | 19.4 | |
Industrials | | | 16.6 | |
Information Technology | | | 28.6 | |
Materials | | | 2.7 | |
Real Estate | | | 2.2 | |
Utilities | | | 2.2 | |
| | | | |
Total | | | 99.2 | % |
| | | | |
Short-Term Investments | | | 0.7 | |
Other Assets & Liabilities | | | 0.1 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 Growth HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 5/01/1998 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 39.79% | | | | 9.81% | | | | 12.78% | |
Class IB | | | 39.56% | | | | 9.55% | | | | 12.51% | |
Russell Midcap Growth Index | | | 35.47% | | | | 11.60% | | | | 14.24% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 prior to June 4, 2012 represents performance of the Fund’s previoussub-adviser, Hartford Investment Management Company (“HIMCO”). As of June 4, 2012, HIMCO no longer served as thesub-adviser to the Fund.
Performance information prior to November 1, 2018, includes the Fund’s performance when it pursued different strategies. For more information, please see the Fund’s statutory prospectus.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.91% and 1.16%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford MidCap Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Manager
Timothy N. Manning
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap Growth HLS Fund returned 39.79% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Russell Midcap Growth Index, which returned 35.47%. For the same period, the Class IA shares of the Fund also outperformed the 33.39% average return of the LipperMid-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ended December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose as the U.S. economy remained resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as aRepublican-led Senate is unlikely to support his impeachment.
Returns varied by market cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. All eleven sectors in the Russell Midcap Growth Index posted positive absolute returns during the period. The Information Technology (+44%), Real Estate (+39%), and Industrials (+38%) sectors rose the most, while the Energy (+8%) and Consumer Staples (+21%) sectors lagged the broader Russell Midcap Growth Index during the period.
The Fund’s outperformance relative to the Russell Midcap Growth Index during the period was driven by strong stock selection, particularly in the Information Technology, Industrials, and Communication Services sectors. This was partially offset by weak selection in the Consumer Discretionary sector. Sector allocation, a product of the Fund’sbottom-up stock-selection process, slightly aided relative returns during the period. An underweight to the Energy and Consumer Staples was the largest contributor to relative performance, although it was partially offset by the negative impact from the Fund’s overweight allocations to the Healthcare and Consumer Discretionary sectors.
The largest contributors to the Fund’s performance relative to the Russell Midcap Growth Index during the period were Ceridian (Information Technology), DocuSign (Information Technology), and Global Payments (Information Technology). Shares of Ceridian, a human capital management (HCM) software company, rose on strong margin improvement that was driven by longer-tenured customers which have significantly lower cost of service. Docusign, an electronic signature solutions company, rose in price after management announced reacceleratingtop-line growth and raised forward guidance in its second-quarter 2019 earnings release. Shares of Global Payments, a provider of payment technology services, have benefited from stable organic revenue growth across its three geographies despite foreign exchange challenges. IHS Markit (Industrials) was among the top absolute contributors to performance during the period.
The largest detractors from the Fund’s performance relative to the Russell Midcap Growth Index during the period were Expedia Group (Consumer Discretionary), Bluebird Bio (Healthcare), and Elanco Animal Health (Healthcare). Expedia, an online travel services company that offers a range of travel shopping and reservation services, detracted after management reported a modestly weaker quarter than expected and significantly lowered their guidance for 2019 in the fourth quarter. We used this as an opportunity to modestly add to the position. The stock for Bluebird Bio has been a weak performer in the last quarter of the period, primarily related to concerns about increasing competition in multiple myeloma and beta-thalassemia. Although we acknowledge that the competitive environment is intensifying, the markets are large, and as of the end of the period, we continued to hold the position in the Fund as we continue to believe in our investment thesis. Elanco Animal Health, a U.S.-based animal health business spun out from Eli Lilly, declined due to negative sentiment surrounding an agreement to buy Bayer’s Animal Health business, making Elanco the second-largest player in Animal Health behind Zoetis. We were disappointed with this pivot in strategy and eliminated the Fund’s position during the period. 2U (Information Technology) was among the top absolute detractors 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.
|
| Hartford MidCap Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
What is the outlook as of the end of the period?
For the first few months of 2019, the broad markets were generally strong. As we entered the summer, geopolitical concerns such as tariffs and an inverted yield curve stoked fears of possible recession if not slowing global growth. Later in the year, the mood shifted yet again with the market expressing more risk appetite. As we begin 2020, we continue to believe the U.S. economy is on solid footing and that accommodative policy from global central banks and improving trade relations between the U.S. and China may provide a solid backdrop.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Mid-cap securities can have greater risk and volatility thanlarge-cap securities.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 5.9 | % |
Consumer Discretionary | | | 22.8 | |
Financials | | | 3.4 | |
Health Care | | | 13.2 | |
Industrials | | | 14.8 | |
Information Technology | | | 36.6 | |
Real Estate | | | 2.3 | |
| | | | |
Total | | | 99.0 | % |
| | | | |
Short-Term Investments | | | 1.8 | |
Other Assets & Liabilities | | | (0.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 4/30/2001 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 31.20% | | | | 7.23% | | | | 11.40% | |
Class IB | | | 30.88% | | | | 6.97% | | | | 11.12% | |
Russell Midcap Value Index | | | 27.06% | | | | 7.62% | | | | 12.41% | |
Russell 2500 Value Index | | | 23.56% | | | | 7.18% | | | | 11.25% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 3/31/19, the Russell 2500 Value Index is no longer one of the Fund’s benchmarks. Hartford Funds Management Company, LLC, the investment manager, believes that the Russell MidCap Value Index better reflects the Fund’s investment strategy.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
Performance information may reflect historical or current waivers/reimbursements without which performance would have been lower. For information on current expense waivers/reimbursements, please see the prospectus.
As shown in the Fund’s current prospectus, the gross expense ratios are as follows: 0.85% (Class IA) and 1.10% (Class IB). The net expense ratios are as shown in the Fund’s current prospectus as follows: 0.81% (Class IA) and 1.06% (Class IB). Gross expenses do not reflect fee waiver arrangements. Net expenses reflect such arrangements, which remain in effect until April 30, 2020 unless the Fund’s Board of Directors approves an earlier termination. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford MidCap Value HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Manager
Gregory J. Garabedian
Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford MidCap Value HLS Fund returned 31.20% for the twelve-month period ended December 31, 2019, outperforming the Fund’s benchmarks, the Russell Midcap Value Index, which returned 27.06%, and the Russell 2500 Value Index, which returned 23.56% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 24.76% average return of the Lipper Mid-Cap Value Fund peer group, a group of funds with investment strategies similar to those of the Fund. Effective March 31, 2019, the Russell 2500 Value Index is no longer one of the Fund’s benchmarks.
Why did the Fund perform this way?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as a Republican-led Senate is unlikely to support his impeachment.
The Fund’s outperformance relative to the Russell Midcap Value Index was largely driven by security selection. Positive stock selection within the Information Technology, Industrials and Materials sectors more than offset negative stock selection within the Financials, Consumer Discretionary, and Utilities sectors. Sector allocation, a result of the bottom-up security selection process, also contributed positively to relative results over the period, primarily due to the Fund’s overweight to
the Information Technology sector and underweight to Utilities and Consumer Discretionary sectors. This was partially offset by the Fund’s overweight to the Energy and Materials sectors.
The largest contributors to the Fund’s performance relative to the Russell Midcap Value Index included Leidos Holdings (Information Technology), Clean Harbors (Industrials), and Itron (Information Technology). Leidos Holdings is a U.S.-based defense, aviation, Information Technology and biomedical research company. Shares of Leidos advanced during the period fueled by strong earnings. More recently, the company announced its $1.65 billion deal to acquire cybersecurity firm Dynetics, which is expected to boost sales growth and margins. Clean Harbors is a provider of environmental, energy, and industrial services, including hazardous waste disposal and used oil recycling. The company has benefited from renewed investment in the domestic petrochemical industry that is expected to bring new chemical plants to the U.S. and drive higher-value waste streams to Clean Harbors. Additionally, a combination of regulatory changes and favorable industry dynamics are supportive of margin expansion and modest growth looking ahead. Itron is a U.S.-based smart-metering technology company focused on the modernization of the infrastructure grid. The company’s stock price advanced during the period due to the company’s strong earnings. Itron is expected to benefit from the growth of smart meters and intelligent infrastructure demand. Leidos Holdings was a top absolute contributor to performance during the period.
The largest detractors from returns relative to the Russell Midcap Value Index included UGI (Utilities), Millicom International Cellular (Telecom & Media), and Encana (Energy). Shares of UGI, a natural gas and electric power distribution company, declined on the back of earnings weakness and some doubts around recent merger & acquisition (M&A) activity which has called into question the quality of UGI’s assets. Shares of Millicom International Cellular, an international telecommunications and media company, declined during the period. The stock reacted very negatively to the company’s disappointing third-quarter 2019 results, which was driven by weakness in Columbia, Paraguay, Bolivia, and Honduras. The company also reduced its fiscal year 2019 guidance. Encana, a Canadian-based oil company, saw its stock price fall during the period, as oil prices came under pressure due to increased concerns around weaker global economic growth as well as rising pessimism over the U.S.-China trade deal. UGI 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 as of the end of the period?
The labor market has remained strong, with job growth consistently exceeding expectations, wage growth hovering around 3%, and unemployment falling to a historic low of 3.5%. U.S. small business sentiment rose by the most in a year in November 2019, adding to our
|
| Hartford MidCap Value HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
belief that a key part of the economy is on positive footing. The housing market gained momentum, fueled by strong job and income growth and historically low interest rates. Housing permits surged to a twelve-year high, new home sales realized their best three-month performance since 2007, and homebuilder sentiment was at its highest level since 1999. Manufacturing remained in contractionary territory for the fourth consecutive month in November 2019, as trade policy uncertainty continued to weigh on business investment. The services sector slowed but remained in expansionary territory. Although consumer confidence remained elevated, it eased later in the year as expectations and optimism moderated amid a volatile global environment.
While we expect continued volatility in the near term, we continue to seek cyclical opportunities where stock prices appear attractively valued in multiple economic scenarios.
The Fund ended the year with the largest over weights to the Information Technology, Materials, and Financials sectors relative to the Russell Midcap Value Index, and the largest underweights to the Utilities, Real Estate and Consumer Discretionary sectors, relative to the Russell Midcap Value Index.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Mid-cap securities can have greater risk and volatility thanlarge-cap securities.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 3.9 | % |
Consumer Discretionary | | | 6.7 | |
Consumer Staples | | | 2.3 | |
Energy | | | 6.1 | |
Financials | | | 20.1 | |
Health Care | | | 7.4 | |
Industrials | | | 12.9 | |
Information Technology | | | 13.1 | |
Materials | | | 8.9 | |
Real Estate | | | 11.5 | |
Utilities | | | 5.8 | |
| | | | |
Total | | | 98.7 | % |
| | | | |
Short-Term Investments | | | 2.2 | |
Other Assets & Liabilities | | | (0.9 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 5/02/1994 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 35.81% | | | | 9.98% | | | | 14.90% | |
Class IB | | | 35.45% | | | | 9.70% | | | | 14.61% | |
Russell 2000 Growth Index | | | 28.48% | | | | 9.34% | | | | 13.01% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
Performance information prior to July 21, 2010 represents performance of the Fund’s previous additionalsub-adviser, Hartford Investment Management Company (“HIMCO”). As of July 21, 2010, HIMCO no longer serves as an additionalsub-adviser to the Fund.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.65% and 0.90%, respectively. Gross and net expenses are the same. Expenses shown include acquired fund fees and expenses. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to new investors, subject to certain exceptions. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Small Cap Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Small Cap Growth HLS Fund returned 35.81% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Russell 2000 Growth Index, which returned 28.48%. For the same period, the Class IA shares of the Fund also outperformed the 28.15% 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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected given that the Republican-led Senate is unlikely to support his impeachment.
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. The Information Technology (+35%), Industrials (+32%), and Healthcare (+31%) sectors rose during the period, while the Energy (-6%) sector lagged the broader Russell 2000 Growth Index.
Security selection was the primary contributor to the Fund’s performance relative to the Russell 2000 Growth Index during the period. Selection was strongest within the Consumer Discretionary, Industrials, and Information Technology sectors, which was partially offset by weaker selection within the Communication Services and Real Estate sectors, which detracted from relative performance. Sector allocation (a result of our bottom-up security selection process) had no material impact on relative performance for the period.
Top contributors to performance relative to the Russell 2000 Growth Index during the period included Kodiak Sciences (Healthcare), Insulet (Healthcare), and TopBuild (Consumer Discretionary). Shares of Kodiak Sciences, a U.S.-based biopharmaceutical company, surged towards the end of the period after the company announced that it has commenced an underwritten public offering of 6 million shares of common stock at $46 per share. Insulet shares, a U.S.-based medical device company rose during the period. The company reported stronger-than-expected third-quarter 2019 results, beating consensus estimates. Furthermore, Insulet had some favorable news on the regulatory front, gaining Federal Drug Administration (FDA) approval for the use of Novo Nordisk’s Fiasp, a fast-acting insulin. We eliminated the position in the Fund during the period. TopBuild is a U.S.-based installer and distributor of insulation products. The company’s stock price rose during the period due to strong earnings, and it raised its revenue forecast for the full year. TopBuild (Consumer Discretionary) was the top absolute contributor to performance during the period.
Among the top detractors from performance relative to the Russell 2000 Growth Index during the period were Merit Medical Systems (Healthcare), not owning Arrowhead Pharmaceuticals (Healthcare), and 2U (Information Technology). Merit Medical Systems is a U.S.-based manufacturer of products used in diagnostic and interventional cardiology and radiology procedures. Shares of the company’s stock declined during the period primarily due to disappointing second quarter results, missing consensus estimates. The Fund eliminated the position
|
| Hartford Small Cap Growth HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
in the stock during the period. Shares of Arrowhead Pharmaceuticals, a U.S.-based pharmaceuticals company, rose during the period. The company recently announced strong fiscal year 2019 operating results and plans to offer 4 million common shares in a public offering. We continued to not hold Arrowhead Pharmaceuticals in the Fund as of the end of the period. 2U is a U.S.-based online educational services company. The company’s stock declined during the period after it sharply widened its full-year adjusted loss expectation. We eliminated the Fund’s position in the stock. Merit Medical Systems (Healthcare) was the top absolute detractor 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 of the end of the period?
As we look into 2020, many of the constructive fundamental drivers of U.S. economic growth in 2019 persist. We believe that labor markets remain healthy, as wage gains continue to bolster consumer confidence but are not expected to trigger outsized inflation due to continued productivity improvements. In our view, the U.S. housing market has turned the corner after six quarters of negative growth, responding to interest rate cuts by the Fed. Moving forward, we believe that Fed action is likely to be more gradual, having now achieved targeted levels of inflation. This may also result in less volatility for the U.S. dollar (U.S. Dollar).
We believe that trade negotiations between the U.S. and China will remain vitally important to markets. In our view, the year ended with encouraging progress, as the “List 4” tariffs slated for December 2019 implementation were delayed, and indications that forward progress for a phase one agreement were in place. Additionally, the U.S. House of Representatives passed the tri-party United States-Mexico-Canada Agreement (USMCA), a replacement for the North American Free Trade Agreement (NAFTA) which is expected to be ratified by the U.S. Senate. The ratification of this trade agreement is expected to provide important certainty to North American supply chains.
As we begin 2020, we believe U.S. politics will first be dominated by a historic presidential impeachment trial in the U.S. Senate, before yielding to a rapid succession of Democratic primaries which will provide more certainty into both the eventual Democratic candidate as well as the main platform issues to be put forward by that party in the presidential election. The outcome at the ballot box could warrant future action in the Fund, but given the wide range of possible outcomes at this point, we believe this bears more monitoring than action at this time.
At the end of the period, the Fund’s largest overweights were to the Financials, Consumer Discretionary, and Consumer Staples sectors, while the Fund’s largest underweights were to the Real Estate, Utilities, and Communication Services sectors, relative to the Russell 2000 Growth Index.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Small-cap securities can have greater risk and volatility thanlarge-cap securities.•The Fund’s focus on investments in particular sectors may increase its
volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 1.2 | % |
Consumer Discretionary | | | 13.5 | |
Consumer Staples | | | 4.0 | |
Energy | | | 0.6 | |
Financials | | | 7.9 | |
Health Care | | | 29.0 | |
Industrials | | | 18.6 | |
Information Technology | | | 17.0 | |
Materials | | | 3.6 | |
Real Estate | | | 2.9 | |
| | | | |
Total | | | 98.3 | % |
| | | | |
Short-Term Investments | | | 1.3 | |
Other Assets & Liabilities | | | 0.4 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 8/09/1996 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 37.00% | | | | 9.20% | | | | 12.78% | |
Class IB | | | 36.77% | | | | 8.94% | | | | 12.51% | |
Russell 2000 Growth Index | | | 28.48% | | | | 9.34% | | | | 13.01% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
Performance information prior to July 21, 2010 represents performance of the Fund’s previous additionalsub-adviser, Hartford Investment Management Company (“HIMCO”). As of July 21, 2010, HIMCO no longer serves as an additionalsub-adviser to the Fund.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.78% and 1.03%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to new investors, subject to certain exceptions. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Small Company HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Steven C. Angeli, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
John V. Schneider, CFA
Vice President and Equity Research Analyst
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Small Company HLS Fund returned 37.00% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Russell 2000 Growth Index which returned 28.48% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 28.15% average return of the LipperSmall-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose as the U.S. economy remained resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Therefore, there were reasons to expect a protracted trade war and for a longer-term decoupling of the world’s two largest economies, which eroded consumer and business confidence as well as curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as aRepublican-led Senate is unlikely to support his impeachment.
Returns varied by market cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-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. The Information
Technology (+35%), Industrials (+32%), Healthcare (+31%) sectors rose the most, while the Energy(-6%) and Communication Services (+6%) sectors lagged the Russell 2000 Growth Index during the period.
Stock selection was the main driver of outperformance versus the Russell 2000 Growth Index during the period, primarily due to selection within the Consumer Discretionary, Information Technology, and Healthcare sectors. This was partially offset by weaker selection in the Financials, Energy, and Materials sectors, which detracted from relative performance. Sector allocation, which is the result ofbottom-up stock selection, slightly detracted from relative returns during the period, primarily due to an underweight to the Healthcare sector and an overweight to the Consumer Discretionary sector. This was partially offset by an underweight allocation to the Communication Services sector, which contributed positively to relative performance during the period.
Top contributors to performance relative to the Russell 2000 Growth Index during the period included Insulet (Healthcare), Wayfair (Consumer Discretionary), and Galapagos (Healthcare). Shares of Insulet, a medical device maker, rose after the company reported quarterly earnings that exceeded both management guidance and market expectations as all three revenue segments outperformed. Notably, adoption rates of the company’s Omnipod DASH system showed signs of growth. Shares of Wayfair, ane-commerce home furnishings company, rose after the company reported strong fourth quarter 2018 results driven by customer growth and higher gross margins. We eliminated the Fund’s position early in the period as the stock moved above our market cap range. Galapagos, a clinical stage biopharma company, traded higher after announcing that partner Gilead will invest $5.1B, raising Gilead’s stake in the company. Furthermore, Galapagos also indicated it will seek shareholder approval for Gilead to further increase its ownership in the company, bolstering investor confidence in the long-term opportunity of the company’s therapeutic assets. Marriott Vacations (Consumer Discretionary) was a top absolute contributor to performance during the period.
Top detractors from performance relative to the Russell 2000 Growth Index during the period included Merit Medical Systems (Healthcare), EnerSys (Industrials), and 2U (Information Technology). Shares of Merit Medical Systems, a manufacturer of disposable medical devices, declined after releasing results that were below analyst expectations and lowering its 2019 guidance. The company also revised its fiscal year 2019 earnings per share (EPS) lower amid concerns over the pace of integrating recent acquisitions. The share price of EnerSys, an industrial battery maker, fell as earnings and forward guidance disappointed with management pointing to weak U.S. telecommunication sales and higher-than-projected freight costs early in the period. Shares of 2U, a provider
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| Hartford Small Company HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
of cloud-based software for online education courses, traded down after management meaningfully lowered full year guidance and turned their focus away fromtop-line growth towards profitability. The company cited increasing competition in its graduate degree segment as a headwind totop-line growth. Green Dot (Financials) 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 as of the end of the period?
As measured by the Russell 2000 Growth Index, the U.S. small cap growth asset class started strong in 2019 (+17.2% in 1Q19) and ended the year much the same way (+11.4%). In between those two strong periods of performance, the asset class weakened on the back of a combination of recessionary fears and geopolitical/tariff-related concerns. Additionally, investors expressed concerns over elevated valuations particularly in the software industry, and as a result,price-to-earnings ratios generally contracted. We used this heightened volatility as an opportunity to trim and eliminate some of the Fund’s exposures as we entered the summer. Our fair value targets were met, and we observed a more attractive upside/downside profile inre-emerging growers. As a result, we introduced more balance into the Fund and added exposure to holdings in sectors such as Industrials, Consumer Discretionary, and Financials, while reducing exposure to the Information Technology and Healthcare sectors. As we approach the new year, we anticipate a more challenging, late cycle macro environment.
At the end of the period, the Fund’s largest overweights were to the Consumer Discretionary, Financials, and Information Technology sectors, while the Fund’s largest underweights were to the Industrials, Real Estate, and Utilities sectors, relative to the Russell 2000 Growth Index.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Small-cap securities can have greater risk and volatility thanlarge-cap securities.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 1.3 | % |
Consumer Discretionary | | | 19.4 | |
Consumer Staples | | | 2.0 | |
Energy | | | 0.5 | |
Financials | | | 6.9 | |
Health Care | | | 29.4 | |
Industrials | | | 16.4 | |
Information Technology | | | 17.2 | |
Materials | | | 3.2 | |
Real Estate | | | 2.5 | |
| | | | |
Total | | | 98.8 | % |
| | | | |
Short-Term Investments | | | 2.8 | |
Other Assets & Liabilities | | | (1.6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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. |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 8/31/1977 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 31.22% | | | | 11.63% | | | | 12.73% | |
Class IB | | | 30.89% | | | | 11.35% | | | | 12.45% | |
Russell 1000 Index | | | 31.43% | | | | 11.48% | | | | 13.54% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.51% and 0.76%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Manager
Donald J. Kilbride
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Stock HLS Fund returned 31.22% for the twelve-month period ended December 31, 2019, underperforming the Fund’s benchmark, the Russell 1000 Index, which returned 31.43% for the same period. For the same period, the Class IA shares of the Fund also underperformed the 29.61% average return of the LipperLarge-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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as aRepublican-led Senate is unlikely to support his impeachment.
Returns varied by market cap during the period, aslarge-cap equities, as measured by the S&P 500 Index, outperformed both small- andmid-cap equities, as measured by the Russell 2000 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, all eleven sectors within the Russell 1000 Index rose, led by the Information Technology (+50%) and Communication Services (+33%) sectors. Alternatively, the Energy (+11%), Healthcare (+21%), and Materials (+24%) sectors lagged on a relative basis.
The Fund’s underperformance versus the Russell 1000 Index during the period was primarily driven by sector allocation, a residual of thebottom-up stock selection process, due primarily to an underweight allocation to the Information Technology sector and an overweight to the Consumer Staples sector. Strong security selection within the Healthcare, Consumer Discretionary, and Materials sectors contributed positively to relative performance, while weaker selection in the Energy sector detracted from relative performance.
The Fund’s positions in McDonald’s (Consumer Discretionary) and Public Storage (Real Estate), as well as not holding Apple (Information Technology) were among the top detractors relative to the Russell 1000 Index during the period. Shares of McDonald’s, a multinational fast food restaurant chain, gained on strong earnings in the first two quarters of 2019 and solid growth in same-store revenue. However, the stock declined in the fourth quarter of 2019 after CEO Steve Easterbrook was fired. Prior to his termination, Mr. Easterbrook had driven innovation to boost same-store sales through smartphone apps, online pay, and food delivery. Shares of Public Storage, a self-storage facilities provider, gained over the first half of 2019, but then slid on disappointing quarterly results and same-store sales that were lower than projected, causing the company to cut its full-year outlook. Shares of Apple, a provider of consumer electronics, rose over the year on strong earnings and a surge in sales within its wearable market. Sales of Apple Watch, AirPods and Beats headphones nearly tripled in the fourth quarter of 2019 on a year-over-year basis. 3M (Industrials) was a top absolute detractor from Fund performance.
Top contributors to performance relative to the Russell 1000 Index during the period included American Tower (Real Estate), Danaher (Healthcare), and Lockheed Martin (Industrials). Shares of American Tower, a leading independent owner, operator, and developer of multitenant communications real estate, traded higher on strong earnings over the last three quarters of 2019. Earlier in 2019, the company acquired Eaton Towers in a push to take advantage of accelerating mobile phone usage and the rollout of 4G technology in Africa. In September, AT&T signed a new master lease agreement with American Tower, pushing share prices up another 3%. Shares of Danaher, a provider of medical equipment, climbed early in 2019 on the announcement of a deal to acquire General Electric’s biopharma unit, putting Danaher at the forefront of biotech equipment makers. Strong earnings and the announcedsplit-off of dental business Envista further benefited the stock. The share price for Lockheed Martin, a U.S.-based aerospace and defense company, climbed after the company raised its profit and sales forecasts for 2019. Higher production of itsF-35 fighter jet and an increase in arms sales boosted the business outlook. This, along with a missile defense deal with Saudi Arabia, grew Lockheed’s order backlog to record highs. The stock has also benefited from a rebound in defense spending under the Trump administration. Microsoft (Information Technology) was a top absolute contributor to Fund performance during the period.
Fund Overview – (continued)
December 31, 2019 (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 as of the end of the period?
As we look at 2020, we see a likely continuation of good economic conditions in the U.S. The labor market appears healthy and consumer confidence is strong, in our view. And while we expect to see further accommodative policy from global central banks, we view this loose monetary posture as a potential source of dislocation, as the inevitable shift to higher rates is expected to have a dampening effect on asset prices.
We see uncertainties on the horizon, including U.S. elections and impeachment proceedings, evolving U.S.-China trade relations, and other global geopolitical risks. As a result, we anticipate volatility around near-term events and remain mindful of the longer-term risks. In the near term, however, we continue to have a positive backdrop against which to invest.
At the end of the period, the Fund’sbottom-up investment approach resulted in overweight exposures to the Industrials, Consumer Staples, and Healthcare sectors, relative to the Russell 1000 Index. The Fund’s largest underweights at the end of the period relative to the Russell 1000 Index were to the Information Technology, Communication Services, and Utilities sectors.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Consumer Discretionary | | | 13.4 | % |
Consumer Staples | | | 15.2 | |
Energy | | | 1.4 | |
Financials | | | 12.5 | |
Health Care | | | 19.6 | |
Industrials | | | 20.0 | |
Information Technology | | | 9.3 | |
Materials | | | 4.0 | |
Real Estate | | | 4.0 | |
| | | | |
Total | | | 99.4 | % |
| | | | |
Short-Term Investments | | | 1.1 | |
Other Assets & Liabilities | | | (0.5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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 |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 8/31/1977 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 10.65% | | | | 3.70% | | | | 4.47% | |
Class IB | | | 10.32% | | | | 3.44% | | | | 4.21% | |
Bloomberg Barclays U.S. Aggregate Bond Index | | | 8.72% | | | | 3.05% | | | | 3.75% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 prior to March 5, 2012 represents performance of the Fund’s previoussub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012, HIMCO no longer served as thesub-adviser to the Fund.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.51% and 0.76%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Total Return Bond HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Total Return Bond HLS Fund returned 10.65% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 8.72% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 8.79% 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 largely positive total returns, driven by a decline in sovereign debt yields across most markets – particularly in the first three quarters of 2019. By the end of the period, yields increased across most markets amid stabilizing global activity indicators and progress on trade talks, despite continued accommodative global central bank policies. Geopolitical uncertainty remained elevated amid ongoing trade talks between the United States (U.S.) and China, negotiations surrounding the United Kingdom’s (U.K.’s) exit from the European Union EU, also known as “Brexit”, and U.S. presidential impeachment proceedings. Despite these concerns, corporate bond spreads tightened due to optimism that monetary accommodation could offset the drag on global growth from restrictive trade policies. The U.S. dollar cemented its safe-haven status, strengthening versus most currencies amid trade frictions and slowing global growth prospects. Inflation showed no meaningful acceleration even as wage growth edged higher.
Global monetary policies continued along a more accommodative path, in aggregate. The U.S. Federal Reserve (Fed) cut interest rates three times before deciding to take a more patient approach on future adjustments. Meanwhile, the European Central Bank (ECB) launched a package of stimulus measures, including an interest rate cut, resumption of asset purchases that the central bank plans to continue “as long as necessary,” and the introduction of tiered deposit rates to exempt banks from negative interest rates. The Bank of Japan (BoJ) maintained its short-term negative interest rate policy, while pledging to guide10-year government bonds to around 0.0%. The Norges Bank, an outlier among major central banks this year, increased interest rates three times but trimmed the projected path for interest rate increases, citing global uncertainties.
For much of 2019, sovereign debt yields fell due to global economic uncertainty, accommodative shifts by central banks, and escalating trade tensions. However, yields began to increase as U.S.-China trade tensions softened later in the year. A flight to safe-haven assets earlier in the year – in addition to accommodative Fed policy – led to a decline in U.S. yields. As German bund yields fell to record lows over the year – and the entire German yield curve fell into negative territory by August – investors seeking yield put their money to work in the U.S. Persistent Brexit uncertainty contributed positively to lower yields in the U.K., while Australian yields also dipped over the period, due to accommodative rhetoric from the Reserve Bank of Australia and weak economic data.
The Canadian dollar outperformed all major currencies in 2019, as solid economic data and higher interest rates relative to the rest of the world supported the currency. The U.S. dollar performed well against most currencies throughout the year but slid in the final months of 2019 following favorable trade policy developments. After a volatile year filled with concerns over Brexit negotiations, the British pound finished the year as the second-best performing major currency. Slowing Eurozone economic data and political uncertainty prompted weakness in the euro. The Chinese renminbi declined amid U.S.-China trade tensions and an easing of monetary policy.
Absolute returns were positive for most fixed-income sectors over the period, against a backdrop of accommodative global central bank policies and improved U.S.-China trade talks. On an excess return basis, lower-rated sectors were among the top performers, benefiting from continued investor demand for yield-producing assets.
The primary drivers of the Fund’s outperformance versus the Bloomberg Barclays U.S. Aggregate Bond Index were allocations to higher-yielding credit and securitized sectors. The Fund held an underweight to investment-grade credit in favor of bank loans and high yield. Allocations to high-yield credit and bank loans had a positive impact on results, as those higher-yielding sectors outperformed investment-grade credit. Positioning within investment-grade credit was also additive to relative performance over the period, led by positive security selection within the Industrials and Financials sectors.
The Fund’s allocations to commercial mortgage-backed securities (CMBS), collateralized loan obligations (CLOs),non-agency mortgage-backed securities (RMBS), and positioning within agency mortgage-backed securities (MBS) pass-throughs had a positive impact on returns versus the Bloomberg Barclays U.S. Aggregate Bond Index during the period.
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| Hartford Total Return Bond HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
The Fund implemented tactical duration and yield curve positions during the period, which detracted from performance relative to the Bloomberg Barclays U.S. Aggregate Bond Index. The Fund maintained exposure to Treasury Inflation-Protected Securities (TIPS), which had a slightly positive impact on relative performance during the period as TIPS outperformed duration-equivalent nominal U.S. Treasuries in the fourth quarter of 2019.
During the period, the Fund used Treasury futures, swaps, and options to manage duration and yield curve positioning. The Fund also used currency forwards, futures, and options to implementnon-U.S. rate and currency positions. Credit default swaps (CDS) were used to manage credit exposure and Investment Grade and High Yield CDS index positions were used to seek liquidity and to manage overall portfolio risk. The use of derivatives in general slightly contributed to overall performance. In particular, the High Yield hedges were additive to performance relative to the Bloomberg Barclays U.S. Aggregate Bond Index during the period, and the Investment Grade CDS positions also had a small positive impact on relative performance.
What is the outlook as of the end of the period?
As of the end of the period, we continue to position the Fund with a moderatelypro-cyclical risk posture, consistent with our expectation for continued positive U.S. economic fundamentals. Inflation expectations remain stubbornly below central banks’ targets, but a material upside inflation surprise remains a risk to our outlook. Inflation breakeven positioning is near neutral, but we would consider adding to the position if the interest rate environment stabilizes.
We ended the period with an underweight positioning in the Fund to investment-grade credit in favor of holding anout-of-benchmark allocation to high yield and bank loans. The Fund held an overweight to agency MBS and maintained anout-of-benchmark exposure to selectnon-agency RMBS. The Fund also held CMBS and CLOs based on what we consider to be attractive valuations. The Fund also continued to hold select exposure to emerging markets (EM) corporate debt where valuations were attractive, in our view.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended.•Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.•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.•The risks associated with mortgage related- and asset-backed securities as well as collateralized loan obligations (CLOs) include credit, interest-rate, prepayment, liquidity, default and extension risk.•The purchase of securities in theTo-Be-Announced (TBA) market can result in additional price and counterparty risk.•Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency
fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.•Restricted securities may be more difficult to sell and price than other securities.
Composition by Security Type(1)
as of December 31, 2019
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 0.0 | %* |
Preferred Stocks | | | 0.1 | |
Warrants | | | 0.0 | * |
| | | | |
Total | | | 0.1 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 26.5 | % |
Corporate Bonds | | | 27.7 | |
Foreign Government Obligations | | | 4.3 | |
Municipal Bonds | | | 1.0 | |
Senior Floating Rate Interests | | | 2.5 | |
U.S. Government Agencies(2) | | | 53.5 | |
U.S. Government Securities | | | 13.2 | |
| | | | |
Total | | | 128.7 | % |
| | | | |
Short-Term Investments | | | 3.7 | |
Purchased Options | | | 0.1 | |
Other Assets & Liabilities | | | (32.6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| * | Percentage rounds to zero. |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
| (2) | All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of December 31, 2019. |
|
| Hartford Ultrashort Bond HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 8/31/1977 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | Since
Inception1 | |
Class IA | | | 2.81% | | | | 1.29% | | | | 1.06% | |
Class IB | | | 2.54% | | | | 1.03% | | | | 0.80% | |
Bloomberg Barclays Short Treasury
9-12 Month Index | | | 2.88% | | | | 1.29% | | | | 1.07% | |
| 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, 2019. |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 calling1-888-843-7824.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.45% and 0.70%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford Ultrashort Bond HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Manager
Timothy E. Smith
Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Ultrashort Bond HLS Fund returned 2.81% for the twelve-month period ended December 31, 2019, underperforming its benchmark, the Bloomberg Barclays Short Treasury9-12 Month Index, which returned 2.88% for the same period. For the same period, the Class IA shares of the Fund underperformed the 4.41% 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, U.S. fixed income markets generated positive total returns, driven by a decline in yields across the Treasury yield curve, particularly in the first three quarters of the year. By the end of the period, yields increased amid stabilizing economic indicators and progress on trade talks, despite continued accommodative central bank policies. The U.S. Federal Reserve (Fed) cut interest rates three times in the second half of 2019 before deciding to take a more patient approach on future adjustments. Geopolitical uncertainty remained elevated amid ongoing trade talks between the U.S. and China, negotiations surrounding the United Kingdom’s (U.K.’s) plan to leave the European Union (EU), also known as “Brexit,” and U.S. presidential impeachment proceedings. Despite these concerns, U.S. corporate bond spreads tightened over optimism that monetary accommodation could offset the drag on global growth from restrictive trade policies.
During the first quarter of 2019, U.S. Treasury yields declined sharply due to an accommodative shift in Fed policy and guidance amid signs of a global growth slowdown. Geopolitical uncertainty remained elevated amid an elusive U.S.-China trade agreement despite ongoing negotiations. Yields declined further in the second quarter of 2019 as the Fed left interest rates unchanged but set the stage for rate cuts later in the year, indicating it sees additional risks to its outlook from trade policy, investment intentions, and manufacturing. The Fed cut interest rates as expected in the third quarter of 2019 and also conducted short-term operations to alleviate funding pressures. Political uncertainty remained high, though corporate bond markets appeared to shrug off those concerns. Fixed income returns were more mixed in the fourth quarter of 2019. Intermediate- and longer-term Treasury yields rose as economic data showed some improvement and corporate bond spreads tightened over optimism that a phase one trade deal between the U.S. and China would help ease global growth concerns. Consumer confidence weakened during the year as a result of economic uncertainty and manufacturing activity contracted, though the housing market remained resilient as lower rates boosted activity.
Absolute returns were positive for most U.S. fixed income sectors over the period, led by the significant decline in Treasury yields prompted by a flight to safe-haven assets early in the year, in addition to accommodative Fed policy. The agency mortgage-backed securities
market performed well thanks to the Fed’s embrace of accommodative monetary policy early in the year when it effectively took interest rate hikes off the table and volatility plunged, further supporting mortgage performance. The substantial rally in rates triggered fears of rising prepayments, which later subsided as prepayment speeds declined from peak level. The securitized credit sectors(non-agency residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, collateralized loan obligations) also produced positive excess returns as spreads largely tightened over the period; lower-rated sectors benefitted from continued demand for yield-producing assets.
The Fund underperformed the Bloomberg Barclays Short Treasury9-12 Month Index, primarily driven by a short duration posture as yields fell over the period. Anout-of-benchmark allocation to investment-grade credit had a positive impact on relative performance, particularly on account of exposure to the financials and industrials sectors. Additionally, exposure to securitized sectors was additive to performance relative to the Bloomberg Barclays Short Treasury9-12 Month Index; an allocation to consumer asset-backed securities (ABS) benefited relative performance and an allocation to select mortgage-backed securities (MBS) had a slightly positive impact on relative performance.
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 of the end of the period?
As of the end of the period, the Fund is positioned with a moderatelypro-cyclical risk posture, favoring the credit and securitized sectors. We believe that U.S. economic growth momentum has turned positive heading into 2020. In our view, the manufacturing sector has stabilized, while the consumer and housing activity are still showing signs of resilience. Additionally, global growth appears to be bottoming and two major geopolitical risks (the U.K.’s exit from the EU and U.S.-China trade negotiations) have been reduced as of the end of the period.
The Fed is on hold for the foreseeable future. The Fed’s policy path will likely be dictated by the evolution of economic data and developments on trade dynamics; however, the Fed has indicated that the bar to increase interest rates is higher than the bar to ease them. We believe the Fed is unlikely to raise interest rates in the absence of sustained inflation. The Fed is forecasting no change in interest rates for 2020, while the market continues to price in the probability of further interest rate cuts. As of the end of the period, the Fund’s duration posture is close to neutral.
At the end of the period, the Fund continued to be positioned without-of-benchmark allocations to investment-grade corporates, ABS, and MBS. Within investment-grade corporates, we favor U.S. banks, as we believe their balance sheets are less risky on improved capital ratios and regulation, and ratings are on an upward trend. We are also positive on
|
| Hartford Ultrashort Bond HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
the ABS sector based on what we consider to be strong U.S. consumer fundamentals, although we are being selective given the later stage of the credit cycle. Within the sector, we favor auto, credit card, and equipment ABS deals.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.•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.•The risks associated with mortgage related- and asset-backed securities include credit, interest-rate, prepayment, liquidity, default and extension risk.•Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk.•Restricted securities may be more difficult to sell and price than other securities.•Repurchase agreements may increase the Fund’s risk and volatility.
Composition by Security Type(1)
as of December 31, 2019
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 40.4 | % |
Corporate Bonds | | | 28.2 | |
U.S. Government Agencies(2) | | | 1.8 | |
U.S. Government Securities | | | 27.8 | |
| | | | |
Total | | | 98.2 | % |
| | | | |
Short-Term Investments | | | 3.3 | |
Other Assets & Liabilities | | | (1.5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
| (2) | All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of December 31, 2019. |
|
| Hartford U.S. Government Securities HLS Fund |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 3/24/1987 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 5.22% | | | | 2.09% | | | | 2.38% | |
Class IB | | | 4.93% | | | | 1.83% | | | | 2.12% | |
Bloomberg Barclays Intermediate Government Bond Index | | | 5.20% | | | | 1.99% | | | | 2.38% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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 prior to March 5, 2012 represents performance of the Fund’s previoussub-adviser, Hartford Investment Management Company (“HIMCO”). As of March 5, 2012, HIMCO no longer served as thesub-adviser to the Fund.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.53% and 0.78%, respectively. Gross and net expenses are the same. Expenses shown include acquired fund fees and expenses. Actual expenses may be
higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
|
| Hartford U.S. Government Securities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (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
* Michael F. Garrett announced his plan to withdraw from the partnership of Wellington Management Company LLP’s parent company, and effective June 30, 2020, he will no longer serve as a portfolio manager for the Hartford U.S. Government Securities HLS Fund.
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford U.S. Government Securities HLS Fund returned 5.22% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Bloomberg Barclays Intermediate Government Bond Index, which returned 5.20% for the same period. For the same period, the Class IA shares of the Fund underperformed the 5.88% average return of the Lipper Intermediate US Government Funds peer group, a group of funds that invest primarily in United States (U.S.) government and agency issues.
Why did the Fund perform this way?
Over the period, U.S. fixed income markets generated positive total returns, driven by a decline in yields across the Treasury yield curve, particularly in the first three quarters of the year. By the end of the period, yields increased amid stabilizing economic indicators and progress on trade talks, despite continued accommodative central bank policies. The U.S. Federal Reserve (Fed) cut interest rates three times in the second half of 2019 before deciding to take a more patient approach on future adjustments. Geopolitical uncertainty remained elevated amid ongoing trade talks between the U.S. and China, negotiations surrounding the United Kingdom’s (U.K.’s) plan to leave the European Union (EU), also known as “Brexit,” and U.S. presidential impeachment proceedings. Despite these concerns, U.S. corporate bond spreads tightened over optimism that monetary accommodation could offset the drag on global growth from restrictive trade policies.
During the first quarter of 2019, U.S. Treasury yields declined sharply due to an accommodative shift in Fed policy and guidance amid signs of a global growth slowdown. Geopolitical uncertainty remained elevated amid an elusive U.S.-China trade agreement despite ongoing negotiations. Yields declined further in the second quarter of 2019 as the Fed left interest rates unchanged but set the stage for rate cuts later in the year, indicating it sees additional risks to its outlook from trade policy, investment intentions, and manufacturing. The Fed cut interest rates as expected in the third quarter of 2019 and also conducted short-term operations to alleviate funding pressures. Political uncertainty remained high, though corporate bond markets appeared to shrug off those concerns. Fixed income returns were more mixed in the fourth quarter of 2019. Intermediate- and longer-term Treasury yields rose as economic data showed some improvement and corporate bond spreads tightened over optimism that a phase one trade deal between the U.S. and China would help ease global growth concerns. Consumer confidence weakened during the year as a result of economic uncertainty and manufacturing activity contracted, though the housing market remained resilient as lower rates boosted activity.
Absolute returns were positive for most U.S. fixed income sectors over the period, led by the significant decline in Treasury yields prompted by a flight to safe-haven assets early in the year, in addition to accommodative Fed policy. The agency mortgage-backed securities market performed well thanks to the Fed’s embrace of accommodative monetary policy early in the year when it effectively took interest rate hikes off the table and volatility plunged, further supporting mortgage performance. The substantial rally in rates triggered fears of rising prepayments, which later subsided as prepayment speeds declined from peak level.
Out-of-benchmark allocations to agency mortgage-backed securities (MBS) pass-throughs, agency collateralized mortgage obligations (CMOs), agency commercial mortgage-backed securities (CMBS),non-agency residential mortgage-backed securities (RMBS), and multi-family Fannie Mae Delegated Underwriting and Servicing Bonds (FNMA DUS) were the primary drivers of outperformance relative to the Bloomberg Barclays Intermediate Government Bond Index over the period. Allocations to asset-backed securities (ABS) also contributed positively to relative performance.
During the period, we used derivatives, such as Treasury futures and interest rate swaps, within the Fund to manage duration and yield curve exposures. Overall, the use of these derivatives had a negative impact on absolute performance over the period.
What is the outlook as of the end of the period?
At the end of the period, the Fund was overweight to agency MBS with a bias toward assets that generate income and provide more stable cash flows in our view, such as agency CMOs and securitized credit such as CMBS,non-agency RMBS, and ABS.
The substantial rally in interest rates during 2019 introduced prepayment risk back into the agency MBS market; however, the uncertainty is primarily concentrated in new production pools. We believe current spreads compensate investors for the increased prepayment risk, and, as of the end of the period, we maintained our constructive outlook on longer-term MBS fundamentals. The Fed’swait-and-see approach may keep interest rate volatility relatively contained in the near-term, which is a good environment for mortgages to earn their income, in our view. However, we do not want to have too large of an overweight to mortgages given the looming potential for political risks. While risks surrounding the U.K.’s exit from the EU and U.S.-China trade relations have moderated for now, anyflare-up on the political front or big surprises in economic data could push interest rates outside of their recent ranges, potentially pressuring agency MBS.
|
| Hartford U.S. Government Securities HLS Fund |
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Our outlook for CMBS is positive. Commercial real estate fundamentals are generally healthy, supported by a growing U.S. economy and low unemployment with some pockets of concern. We have a positive outlook on the ABS sector based on the strength of the U.S. consumer, but we are being selective as the credit cycle matures. The strong consumer environment (low unemployment, increasing wages, benign inflation, moderate gas prices) is expected to continue to be supportive of collateral performance. As of the end of the period, we maintained
the Fund’s allocations to the traditional ABS sectors given our favorable view of the U.S. consumer.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.•The purchase of securities in theTo-Be-Announced (TBA) market can result in additional price and counterparty risk.•Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, and counterparty risk.•The risks associated with mortgage related- and asset-backed securities include credit, interest-rate, prepayment, liquidity, default 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.•Restricted securities may be more difficult to sell and price than other securities.
Composition by Security Type(1)
as of December 31, 2019
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage Backed Securities | | | 19.9 | % |
U.S. Government Agencies(2) | | | 70.9 | |
U.S. Government Securities | | | 17.2 | |
| | | | |
Total | | | 108.0 | % |
| | | | |
Short-Term Investments | | | 8.1 | |
Other Assets & Liabilities | | | (16.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | For Fund compliance purposes, the Fund may not use the same classification system. These classifications are used for financial reporting purposes. |
| (2) | All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage backed securities as of December 31, 2019. |
Fund Overview
December 31, 2019 (Unaudited)
| | |
Inception 4/30/2001 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
for the Periods Ending 12/31/19
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 27.71% | | | | 7.85% | | | | 10.92% | |
Class IB | | | 27.46% | | | | 7.57% | | | | 10.65% | |
Russell 1000 Value Index | | | 26.54% | | | | 8.29% | | | | 11.80% | |
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. 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. Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recentmonth-end, please visit our website 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, 2019, 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.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus, the total annual fund operating expense ratios for Class IA and Class IB were 0.71% and 0.96%, respectively. Gross and net expenses are the same. Actual expenses may be higher or lower. Please see the accompanying Financial Highlights for expense ratios for the period ended December 31, 2019.
The Fund is closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus.
Fund Overview – (continued)
December 31, 2019 (Unaudited)
Portfolio Managers
Adam H. Illfelder, CFA
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
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Value HLS Fund returned 27.71% for the twelve-month period ended December 31, 2019, outperforming its benchmark, the Russell 1000 Value Index, which returned 26.54% for the same period. For the same period, the Class IA shares of the Fund outperformed the 26.31% 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?
United States (U.S.) equities, as measured by the S&P 500 Index, posted positive results over the trailing twelve-month period ending December 31, 2019. During the first quarter of 2019, U.S. equities rallied to their largest quarterly gain since 2009, buoyed by an accommodative shift in U.S. Federal Reserve (Fed) policy and guidance, optimism for a U.S.-China trade deal, relatively strong fourth-quarter 2018 earnings, and corporate buybacks. By the summer of 2019, unresolved U.S. trade frictions with China, Mexico, Japan, and the European Union (EU) unsettled markets and raised concerns about the potential risks to U.S. economic growth from increasing cost pressures, supply chain disruptions, and waning business confidence and investment plans. In the third quarter of 2019, U.S. equities rose for the third consecutive quarter, with the U.S. economy remaining resilient despite elevated geopolitical uncertainties and slowing global growth. U.S.-China trade relations were particularly volatile in the absence of meaningful compromises on key structural issues. Expectations for a protracted trade war between the U.S. and China and the potential for a longer-term decoupling of the world’s two largest economies eroded consumer and business confidence and curtailed capital spending. The Fed lowered its benchmark interest rate in July and September by a combined 0.50% in an effort to sustain the U.S. economic expansion and mitigate the risks of moderating growth and trade frictions. U.S. equity markets surged in the fourth quarter of 2019, as equities benefited from waning recession fears, improved trade sentiment, and accommodative Fed policies. In October, the Fed lowered interest rates for the final time in 2019, cutting rates by 0.25%. Trade tensions were volatile during the fourth quarter of 2019 but eased in December after the U.S. and China reached a phase one trade agreement. The U.S. House of Representatives voted to impeach President Trump; however, markets were unaffected as a Republican-led Senate is unlikely to support his impeachment.
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, all eleven sectors within the Russell 1000 Value Index rose, led by the Information Technology (+40%) and Industrials (+35%) sectors. The Energy (+11%), Healthcare (+20%), and Materials (+21%) sectors lagged on a relative basis.
The Fund’s outperformance versus the Russell 1000 Value Index during the period was primarily driven by strong security selection within the Financials, Healthcare, and Real Estate sectors. This was partially offset by weak selection within the Energy, Consumer Staples, and Information Technology sectors. Sector allocation, a residual of the bottom up stock selection process, was benefited by an overweight position in the Information Technology sector and an underweight position in the Energy sector. The Fund’s underweight to Communication Services was a slight detractor from relative performance during the period.
The top contributors to returns relative to the Russell 1000 Value Index over the period were KLA (Information Technology), Fortune Brands Home (Industrials), and JPMorgan Chase (Financials). Shares of KLA, a semiconductor equipment company, traded higher on strong earnings and an upward revision in guidance. The stock also benefited from longer-term tailwinds from expectations around improved memory-chip prices and a return to growth for the industry. Shares of Fortune Brands Home, a U.S.-based provider of home and security products, rose after the stock was upgraded by some analysts on the outlook that exposure to repair and remodeling may offset concerns about a cyclical peak in homebuilding. Shares of JPMorgan Chase (JPM), a financial services company, climbed at the end of the second quarter when the Fed agreed to increased payouts. JPM, along with other banks, said it would boost payouts through dividends and stock buybacks. The company’s stock price was driven higher through the end of 2019 on strong earnings and revised guidance around investment banking fees, up from prior projections of a year-over-year decline. Top absolute contributors to performance during the period included JPMorgan Chase (Financials) and Bank of America (Financials).
The largest detractors from returns relative to the Russell 1000 Value Index during the period were TD Ameritrade (Financials), Concho Resources (Energy), and Tapestry (Consumer Discretionary). Shares of TD Ameritrade, a provider of securities brokerage services, slid after Charles Schwab announced it was planning to eliminate online trading commissions on certain products. During the period, we sold the Fund’s position in TD Ameritrade. While TD Ameritrade eventually agreed to be acquired by Schwab, this was not in our consideration set at the time when we sold the Fund’s position. Oil prices faced pressure throughout the year from escalated trade tensions between the U.S. and China. In the second half of 2019, shares of Concho Resources, an independent oil and natural gas company, fell when the company had to cut its rig count by almost half and slowed oil production growth for the year due to well-spacing problems in the Permian Basin. Shares of Tapestry, a luxury goods company, fell after the company missed on earnings and cut guidance early in 2019, citing a volatile macroeconomic and geopolitical backdrop. In the second half of 2019 the stock was weighed down when the Kate Spade line did not return to sales growth as predicted, prompting the company to pull back on store openings for the
Fund Overview – (continued)
December 31, 2019 (Unaudited)
brand. Top absolute detractors from performance during the period included TD Ameritrade (Financials) and Tapestry (Consumer Discretionary).
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 of the end of the period?
Economic data released during the period was mixed, but optimism improved as the period progressed, particularly as trade friction eased between the U.S. and China and as election results in the U.K. provided more definition to the process surrounding the U.K.’s exit from the EU (also known as Brexit). Looking forward, we project modest gross domestic product (GDP) growth for the U.S., and some early indicators have begun to bottom or improve recently, supporting expectations for moderate economic growth in 2020. Balanced against this tentative increase in fundamentals is the offset that the Fed will likely taper its bond-buying program, which in 2019 injected billions of dollars of liquidity into the fixed-income markets. While we are encouraged by the more positive early indicators, we continue to be mindful of the Fund’s aggregate exposure to the most economically sensitive segments of the economy at this later stage of the current market cycle. We continue to be selective in the companies in which we invest, seeking compelling valuation opportunities across sectors in companies demonstrating characteristics that, in addition to discounted valuations, also include attractive quality elements and capital return in our view.
Based on individual stock decisions, the Fund ended the period with the largest overweights in the Information Technology, Healthcare, and Financials sectors, and the largest underweights in the Consumer Staples, Communication Services, and Real Estate sectors, relative to the Russell 1000 Value Index.
Important Risks
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies.•Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments.•The Fund’s focus on investments in particular sectors may increase its volatility and risk of loss if adverse developments occur.•Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market.
Composition by Sector(1)
as of December 31, 2019
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 4.6 | % |
Consumer Discretionary | | | 6.5 | |
Consumer Staples | | | 3.2 | |
Energy | | | 6.7 | |
Financials | | | 25.7 | |
Health Care | | | 18.0 | |
Industrials | | | 9.8 | |
Information Technology | | | 11.8 | |
Materials | | | 5.2 | |
Real Estate | | | 3.6 | |
Utilities | | | 5.1 | |
| | | | |
Total | | | 100.2 | % |
| | | | |
Short-Term Investments | | | 0.8 | |
Other Assets & Liabilities | | | (1.0 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| (1) | 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. |
Benchmark Glossary (Unaudited)
Bloomberg Barclays Government/Credit Bond Index(reflects no deduction for fees, expenses or taxes)is designed to measure thenon-securitized component of the U.S. Aggregate Index. It includes investment grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities.
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.
Bloomberg Barclays Short Treasury9-12 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.
Bloomberg Barclays U.S. Aggregate Bond Index(reflects no deduction for fees, expenses or taxes) is composed of securities that are Securities and Exchange Commission registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
Bloomberg Barclays U.S. Corporate High Yield Bond Index(reflects no deduction for fees, expenses or taxes)is a market-value-weighted index that tracks the total return performance ofnon-investment grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.
ICE BofAML US3-Month Treasury Bill Index(reflects no deduction for fees, expenses or taxes)is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at eachmonth-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before themonth-end rebalancing date.
MSCI ACWI ex USA Index (Net)(reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid cap representation across developed markets (excluding the United States) and emerging market countries.
MSCI World Growth Index (Net)(reflects reinvested dividends net of withholding taxes but reflects no deduction for fees, expenses or other taxes) is designed to capture large and mid cap securities exhibiting overall growth style characteristics across developed markets.
Russell Midcap Growth Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of themid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higherprice-to-book ratios and higher forecasted growth values.
Russell MidCap Value Index(reflects no deduction for fees, expenses or taxes)is designed to measure the performance of themid-cap value segment of the U.S. equity universe. It includes those Russell MidCap Index companies with lowerprice-to-book ratios and lower forecasted growth values.
Russell 1000 Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of the 1,000 largest companies in the Russell 3000 Index which is designed to measure the performance of the 3,000 largest U.S. companies based on total market capitalizations.
Russell 3000 Index(reflects no deduction for fees, expenses or taxes) is designed to measure 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 designed to measure the performance of those Russell 1000 Index companies with higherprice-to-book ratios and higher forecasted growth values. The Russell 1000 Index is designed to measure the performance of the 1,000 largest companies in the Russell 3000 Index based on their market capitalization and current index membership.
Russell 2000 Growth Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 2000 Index companies with higherprice-to-book ratios and higher forecasted growth values. The Russell 2000 Index is an 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.
Russell 3000 Growth Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 3000 Index companies with higherprice-to-book ratios and higher forecasted growth values. The Russell 3000 Index is designed to measure the performance of the 3,000 largest U.S. companies based on total market capitalization.
Russell 1000 Value Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 1000 Index companies with lowerprice-to-book ratios and lower forecasted growth values. The Russell 1000 Index is designed to measure the performance of the 1,000 largest companies in the Russell 3000 Index based on their market capitalization and current index membership.
Russell 2500 Value Index(reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 2500 Index companies with lowerprice-to-book ratios and lower forecasted growth values. The Russell 2500 Index is designed to measure the performance of the 2,500 smallest U.S. companies based on their market capitalization and current index membership.
S&P Composite 1500 Health Care Index(reflects no deduction for fees, expenses or taxes)is a float-adjusted market 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 MidCap 400 Index(reflects no deduction for fees, expenses or taxes) is a float-adjusted market capitalization-weighted index designed to measure the performance of themid-cap segment of the market. The index is composed of 400 constituent companies.
S&P 500 Index(reflects no deduction for fees, expenses or taxes)is a float-adjusted market capitalization-weighted index composed of 500 widely held common stocks.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its
Benchmark Glossary (Unaudited) – (continued)
affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.
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, 2019 through December 31, 2019. 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 ratios 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 The Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second set of columns of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or fees which may be applied at the variable life insurance, variable annuity, or qualified retirement plan product level. Therefore, the second set of columns of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Expenses for a class of a Fund are equal to the class’ annualized expense ratio multiplied by average account value over the period, multiplied by 184/365 (to reflect theone-half year period).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | |
| | | Beginning
Account Value
July 1, 2019 | | | Ending
Account Value
December 31, 2019 | | | Expenses paid
during the period
July 1, 2019
through
December 31, 2019 | | | Beginning
Account Value
July 1, 2019 | | | Ending
Account Value
December 31, 2019 | | | Expenses paid
during the period
July 1, 2019
through
December 31, 2019 | | | Annualized
expense
ratio | |
Hartford Balanced HLS Fund | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,082.20 | | | $ | 3.31 | | | $ | 1,000.00 | | | $ | 1,022.03 | | | $ | 3.21 | | | | 0.63 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,080.40 | | | $ | 4.61 | | | $ | 1,000.00 | | | $ | 1,020.77 | | | $ | 4.48 | | | | 0.88 | % |
| | | | | | |
Hartford Capital Appreciation HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,080.60 | | | $ | 3.51 | | | $ | 1,000.00 | | | $ | 1,021.83 | | | $ | 3.41 | | | | 0.67 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,079.30 | | | $ | 4.82 | | | $ | 1,000.00 | | | $ | 1,020.57 | | | $ | 4.69 | | | | 0.92 | % |
Class IC | | $ | 1,000.00 | | | $ | 1,077.90 | | | $ | 6.13 | | | $ | 1,000.00 | | | $ | 1,019.31 | | | $ | 5.96 | | | | 1.17 | % |
| | | | | | |
Hartford Disciplined Equity HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,118.90 | | | $ | 4.17 | | | $ | 1,000.00 | | | $ | 1,021.27 | | | $ | 3.97 | | | | 0.78 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,117.30 | | | $ | 5.50 | | | $ | 1,000.00 | | | $ | 1,020.01 | | | $ | 5.24 | | | | 1.03 | % |
| | | | | | |
Hartford Dividend and Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,112.80 | | | $ | 3.62 | | | $ | 1,000.00 | | | $ | 1,021.78 | | | $ | 3.47 | | | | 0.68 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,111.90 | | | $ | 4.95 | | | $ | 1,000.00 | | | $ | 1,020.52 | | | $ | 4.74 | | | | 0.93 | % |
| | | | | | |
Hartford Global Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,080.50 | | | $ | 4.20 | | | $ | 1,000.00 | | | $ | 1,021.17 | | | $ | 4.08 | | | | 0.80 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,078.90 | | | $ | 5.50 | | | $ | 1,000.00 | | | $ | 1,019.91 | | | $ | 5.35 | | | | 1.05 | % |
| | | | | | |
Hartford Growth Opportunities HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,016.50 | | | $ | 3.30 | | | $ | 1,000.00 | | | $ | 1,021.93 | | | $ | 3.31 | | | | 0.65 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,015.20 | | | $ | 4.57 | | | $ | 1,000.00 | | | $ | 1,020.67 | | | $ | 4.58 | | | | 0.90 | % |
Class IC | | $ | 1,000.00 | | | $ | 1,014.10 | | | $ | 5.84 | | | $ | 1,000.00 | | | $ | 1,019.41 | | | $ | 5.85 | | | | 1.15 | % |
| | | | | | |
Hartford Healthcare HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,152.80 | | | $ | 4.94 | | | $ | 1,000.00 | | | $ | 1,020.62 | | | $ | 4.63 | | | | 0.91 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,151.40 | | | $ | 6.29 | | | $ | 1,000.00 | | | $ | 1,019.36 | | | $ | 5.90 | | | | 1.16 | % |
Expense Examples (Unaudited) – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | |
| | | Beginning
Account Value
July 1, 2019 | | | Ending
Account Value
December 31, 2019 | | | Expenses paid
during the period
July 1, 2019
through
December 31, 2019 | | | Beginning
Account Value
July 1, 2019 | | | Ending
Account Value
December 31, 2019 | | | Expenses paid
during the period
July 1, 2019
through
December 31, 2019 | | | Annualized
expense
ratio | |
Hartford High Yield HLS Fund | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,045.40 | | | $ | 3.97 | | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.92 | | | | 0.77 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,043.20 | | | $ | 5.25 | | | $ | 1,000.00 | | | $ | 1,020.06 | | | $ | 5.19 | | | | 1.02 | % |
| | | | |
Hartford International Opportunities HLS Fund | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,064.50 | | | $ | 3.85 | | | $ | 1,000.00 | | | $ | 1,021.48 | | | $ | 3.77 | | | | 0.74 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,063.60 | | | $ | 5.15 | | | $ | 1,000.00 | | | $ | 1,020.22 | | | $ | 5.04 | | | | 0.99 | % |
| | | | | | |
Hartford MidCap HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,054.20 | | | $ | 3.57 | | | $ | 1,000.00 | | | $ | 1,021.73 | | | $ | 3.52 | | | | 0.69 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,052.80 | | | $ | 4.86 | | | $ | 1,000.00 | | | $ | 1,020.47 | | | $ | 4.79 | | | | 0.94 | % |
| | | | | | |
Hartford MidCap Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,094.20 | | | $ | 4.80 | | | $ | 1,000.00 | | | $ | 1,020.62 | | | $ | 4.63 | | | | 0.91 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,094.40 | | | $ | 6.12 | | | $ | 1,000.00 | | | $ | 1,019.36 | | | $ | 5.90 | | | | 1.16 | % |
| | | | | | |
Hartford MidCap Value HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,117.40 | | | $ | 4.32 | | | $ | 1,000.00 | | | $ | 1,021.12 | | | $ | 4.13 | | | | 0.81 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,116.60 | | | $ | 5.66 | | | $ | 1,000.00 | | | $ | 1,019.86 | | | $ | 5.40 | | | | 1.06 | % |
| | | | | | |
Hartford Small Cap Growth HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,097.70 | | | $ | 3.38 | | | $ | 1,000.00 | | | $ | 1,021.98 | | | $ | 3.26 | | | | 0.64 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,096.00 | | | $ | 4.70 | | | $ | 1,000.00 | | | $ | 1,020.72 | | | $ | 4.53 | | | | 0.89 | % |
| | | | | | |
Hartford Small Company HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,070.10 | | | $ | 4.12 | | | $ | 1,000.00 | | | $ | 1,021.22 | | | $ | 4.02 | | | | 0.79 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,069.20 | | | $ | 5.42 | | | $ | 1,000.00 | | | $ | 1,019.96 | | | $ | 5.30 | | | | 1.04 | % |
| | | | | | |
Hartford Stock HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,085.40 | | | $ | 2.68 | | | $ | 1,000.00 | | | $ | 1,022.64 | | | $ | 2.60 | | | | 0.51 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,084.10 | | | $ | 3.99 | | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | | | | 0.76 | % |
| | | | | | |
Hartford Total Return Bond HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,031.70 | | | $ | 2.61 | | | $ | 1,000.00 | | | $ | 1,022.64 | | | $ | 2.60 | | | | 0.51 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,030.90 | | | $ | 3.89 | | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.87 | | | | 0.76 | % |
| | | | | | |
Hartford Ultrashort Bond HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,011.10 | | | $ | 2.28 | | | $ | 1,000.00 | | | $ | 1,022.94 | | | $ | 2.29 | | | | 0.45 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,009.40 | | | $ | 3.55 | | | $ | 1,000.00 | | | $ | 1,021.68 | | | $ | 3.57 | | | | 0.70 | % |
| | | |
Hartford U.S. Government Securities HLS Fund | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,011.90 | | | $ | 2.54 | | | $ | 1,000.00 | | | $ | 1,022.69 | | | $ | 2.55 | | | | 0.50 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,010.10 | | | $ | 3.80 | | | $ | 1,000.00 | | | $ | 1,021.43 | | | $ | 3.82 | | | | 0.75 | % |
| | | | | | |
Hartford Value HLS Fund
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,095.80 | | | $ | 3.80 | | | $ | 1,000.00 | | | $ | 1,021.58 | | | $ | 3.67 | | | | 0.72 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,094.10 | | | $ | 5.12 | | | $ | 1,000.00 | | | $ | 1,020.32 | | | $ | 4.94 | | | | 0.97 | % |
|
| Hartford Balanced HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 67.7% | | | |
| | | | Automobiles & Components - 0.7% | |
| | 488,680 | | | Gentex Corp. | | $ | 14,161,946 | |
| | | | | | | | |
| | | | Banks - 7.0% | |
| | 1,030,430 | | | Bank of America Corp. | | | 36,291,745 | |
| | 349,370 | | | Citigroup, Inc. | | | 27,911,169 | |
| | 318,460 | | | JP Morgan Chase & Co. | | | 44,393,324 | |
| | 125,840 | | | PNC Financial Services Group, Inc. | | | 20,087,839 | |
| | 324,000 | | | Truist Financial Corp. | | | 18,247,680 | |
| | | | | | | | |
| | | | | | | 146,931,757 | |
| | | | | | | | |
| | | | Capital Goods - 6.4% | |
| | 112,970 | | | Deere & Co. | | | 19,573,182 | |
| | 229,460 | | | Fortune Brands Home & Security, Inc. | | | 14,992,916 | |
| | 122,930 | | | Ingersoll-Rand plc | | | 16,339,856 | |
| | 100,410 | | | L3Harris Technologies, Inc. | | | 19,868,127 | |
| | 61,120 | | | Lockheed Martin Corp. | | | 23,798,905 | |
| | 671,370 | | | nVent Electric plc | | | 17,173,645 | |
| | 151,280 | | | United Technologies Corp. | | | 22,655,693 | |
| | | | | | | | |
| | | | | | | 134,402,324 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.2% | |
| | 248,800 | | | Lennar Corp. Class A | | | 13,880,552 | |
| | 398,720 | | | Tapestry, Inc. | | | 10,753,478 | |
| | | | | | | | |
| | | | | | | 24,634,030 | |
| | | | | | | | |
| | | | Consumer Services - 0.8% | |
| | 148,086 | | | Hilton Worldwide Holdings, Inc. | | | 16,424,218 | |
| | | | | | | | |
| | | | Diversified Financials - 0.3% | |
| | 132,340 | | | Blackstone Group, Inc. Class A | | | 7,403,100 | |
| | | | | | | | |
| | | | Energy - 3.1% | |
| | 130,650 | | | Concho Resources, Inc. | | | 11,441,020 | |
| | 295,400 | | | Exxon Mobil Corp. | | | 20,613,012 | |
| | 696,090 | | | Noble Energy, Inc. | | | 17,290,876 | |
| | 100,970 | | | Pioneer Natural Resources Co. | | | 15,283,829 | |
| | | | | | | | |
| | | | | | | 64,628,737 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.7% | |
| | 343,500 | | | US Foods Holding Corp.* | | | 14,389,215 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 0.8% | |
| | 314,770 | | | Mondelez International, Inc. Class A | | | 17,337,532 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 5.2% | |
| | 93,370 | | | Anthem, Inc. | | | 28,200,541 | |
| | 322,075 | | | Koninklijke Philips N.V. | | | 15,744,218 | |
| | 235,185 | | | Medtronic plc | | | 26,681,738 | |
| | 130,360 | | | UnitedHealth Group, Inc. | | | 38,323,233 | |
| | | | | | | | |
| | | | | | | 108,949,730 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.7% | |
| | 253,930 | | | Unilever N.V. | | | 14,590,818 | |
| | | | | | | | |
| | | | Insurance - 3.7% | |
| | 363,170 | | | American International Group, Inc. | | | 18,641,516 | |
| | 126,710 | | | Assurant, Inc. | | | 16,609,147 | |
| | 160,110 | | | Intact Financial Corp. | | | 17,313,655 | |
| | 344,090 | | | Progressive Corp. | | | 24,908,675 | |
| | | | | | | | |
| | | | | | | 77,472,993 | |
| | | | | | | | |
| | | | Materials - 3.4% | |
| | 183,520 | | | Celanese Corp. | | | 22,594,982 | |
| | 266,386 | | | Dow, Inc.* | | | 14,579,306 | |
| | 179,600 | | | FMC Corp. | | | 17,927,672 | |
| | 398,130 | | | Sealed Air Corp. | | | 15,857,518 | |
| | | | | | | | |
| | | | | | | 70,959,478 | |
| | | | | | | | |
| | | | Media & Entertainment - 6.7% | |
| | 52,345 | | | Alphabet, Inc. Class C* | | | 69,986,312 | |
| | 655,340 | | | Comcast Corp. Class A | | | 29,470,640 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 67.7% - (continued) | | | |
| | | | Media & Entertainment - 6.7% - (continued) | |
| | 203,420 | | | Facebook, Inc. Class A* | | $ | 41,751,955 | |
| | | | | | | | |
| | | | | | | 141,208,907 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.8% | |
| | 439,430 | | | AstraZeneca plc ADR | | | 21,909,980 | |
| | 35,220 | | | Biogen, Inc.* | | | 10,450,830 | |
| | 212,190 | | | Eli Lilly & Co. | | | 27,888,132 | |
| | 177,513 | | | Novartis AG | | | 16,808,629 | |
| | 738,960 | | | Pfizer, Inc. | | | 28,952,453 | |
| | 62,930 | | | Roche Holding AG | | | 20,452,417 | |
| | 69,800 | | | Vertex Pharmaceuticals, Inc.* | | | 15,282,710 | |
| | | | | | | | |
| | | | | | | 141,745,151 | |
| | | | | | | | |
| | | | Real Estate - 0.9% | |
| | 129,870 | | | Crown Castle International Corp. REIT | | | 18,461,020 | |
| | | | | | | | |
| | | | Retailing - 2.8% | |
| | 11,702,200 | | | Allstar Co.*(1)(2)(3) | | | 4,680,880 | |
| | 127,280 | | | Home Depot, Inc. | | | 27,795,406 | |
| | 346,590 | | | TJX Cos., Inc. | | | 21,162,785 | |
| | 67,006 | | | Tory Burch LLC*(1)(2)(3) | | | 4,348,701 | |
| | | | | | | | |
| | | | | | | 57,987,772 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.2% | |
| | 175,420 | | | Analog Devices, Inc. | | | 20,846,913 | |
| | 557,900 | | | Intel Corp. | | | 33,390,315 | |
| | 95,640 | | | KLA Corp. | | | 17,040,179 | |
| | 311,880 | | | Micron Technology, Inc.* | | | 16,772,906 | |
| | | | | | | | |
| | | | | | | 88,050,313 | |
| | | | | | | | |
| | | | Software & Services - 6.4% | |
| | 60,110 | | | Adobe, Inc.* | | | 19,824,879 | |
| | 207,170 | | | Amdocs Ltd. | | | 14,955,603 | |
| | 133,080 | | | Fidelity National Information Services, Inc. | | | 18,510,097 | |
| | 516,070 | | | Microsoft Corp. | | | 81,384,239 | |
| | | | | | | | |
| | | | | | | 134,674,818 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 2.9% | |
| | 584,300 | | | Cisco Systems, Inc. | | | 28,023,028 | |
| | 625,080 | | | Corning, Inc. | | | 18,196,079 | |
| | 236,260 | | | NetApp, Inc. | | | 14,707,185 | |
| | | | | | | | |
| | | | | | | 60,926,292 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.2% | |
| | 415,260 | | | Verizon Communications, Inc. | | | 25,496,964 | |
| | | | | | | | |
| | | | Transportation - 1.0% | |
| | 120,110 | | | Union Pacific Corp. | | | 21,714,687 | |
| | | | | | | | |
| | | | Utilities - 0.8% | |
| | 390,520 | | | Exelon Corp. | | | 17,803,807 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $975,044,859) | | $ | 1,420,355,609 | |
| | | | | | | | |
|
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 2.7% | |
| | | | Asset-Backed - Automobile - 0.1% | |
| $ | 55,618 | | | ARI Fleet Lease Trust 1.91%, 04/15/2026(4) | | $ | 55,561 | |
| | 165,945 | | | Canadian Pacer Auto Receivables Trust 2.05%, 03/19/2021(4) | | | 165,931 | |
| | | | Chesapeake Funding LLC | |
| | 497,199 | | | 1.91%, 08/15/2029(4) | | | 496,703 | |
| | 340,246 | | | 2.19%, 05/15/2029, 1 mo. USD LIBOR + 0.450%(4)(5) | | | 340,505 | |
| | | | Enterprise Fleet Financing LLC | |
| | 189,181 | | | 1.97%, 01/20/2023(4) | | | 189,108 | |
| | 44,446 | | | 2.13%, 07/20/2022(4) | | | 44,446 | |
| | 339,126 | | | 2.13%, 05/22/2023(4) | | | 339,021 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 2.7% - (continued) | |
| | | | Asset-Backed - Automobile - 0.1% - (continued) | |
| $ | 321,350 | | | First Investors Auto Owner Trust 3.41%, 04/18/2022(4) | | $ | 321,926 | |
| | 37,434 | | | OneMain Direct Auto Receivables Trust 2.31%, 12/14/2021(4) | | | 37,426 | |
| | 183,125 | | | Securitized Term Auto Receivables Trust 2.04%, 04/26/2021(4) | | | 183,101 | |
| | 89,777 | | | Wheels SPV LLC 1.88%, 04/20/2026(4) | | | 89,753 | |
| | | | | | | | |
| | | | | | | 2,263,481 | |
| | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 1.5% | |
| | 293,570 | | | AASET Trust 3.84%, 05/15/2039(4) | | | 295,552 | |
| | 2,012,497 | | | Ajax Mortgage Loan Trust
3.16%, 09/25/2056(4)(6) | | | 2,013,341 | |
| | 3,480,000 | | | Atlas Senior Loan Fund Ltd. 3.30%, 01/16/2030, 3 mo. USD LIBOR + 1.300%(4)(5) | | | 3,476,339 | |
| | 911,124 | | | Bayview Koitere Fund Trust 3.50%, 07/28/2057(4)(6) | | | 926,737 | |
| | | | Bayview Opportunity Master Fund Trust | |
| | 476,146 | | | 3.50%, 01/28/2055(4)(6) | | | 481,476 | |
| | 501,277 | | | 3.50%, 06/28/2057(4)(6) | | | 509,139 | |
| | 475,854 | | | 4.00%, 11/28/2053(4)(6) | | | 487,137 | |
| | 667,309 | | | 4.00%, 10/28/2064(4)(6) | | | 682,836 | |
| | 1,705,000 | | | CIFC Funding Ltd. 2.99%, 04/24/2030, 3 mo. USD LIBOR + 1.050%(4)(5) | | | 1,699,970 | |
| | | | DB Master Finance LLC | |
| | 313,425 | | | 3.79%, 05/20/2049(4) | | | 320,117 | |
| | 278,600 | | | 4.02%, 05/20/2049(4) | | | 285,426 | |
| | | | Ford Credit Floorplan Master Owner Trust | |
| | 430,000 | | | 2.09%, 03/15/2022(4) | | | 429,989 | |
| | 505,000 | | | 2.44%, 09/15/2026 | | | 506,317 | |
| | | | GreatAmerica Leasing Receivables Funding LLC | |
| | 1,000,243 | | | 2.36%, 01/20/2023(4) | | | 1,001,559 | |
| | 398,095 | | | 2.60%, 06/15/2021(4) | | | 399,023 | |
| | 332,000 | | | 2.83%, 06/17/2024(4) | | | 334,816 | |
| | | | Horizon Aircraft Finance Ltd. | |
| | 303,185 | | | 3.43%, 11/15/2039(4) | | | 301,400 | |
| | 241,987 | | | 3.72%, 07/15/2039(4) | | | 241,689 | |
| | 1,465,000 | | | KKR CLO Ltd. 3.34%, 04/15/2029, 3 mo. USD LIBOR + 1.340%(4)(5) | | | 1,464,672 | |
| | 2,635,000 | | | Madison Park Funding Ltd. 2.75%, 04/15/2029, 3 mo. USD LIBOR +
0.750%(4)(5) | | | 2,615,459 | |
| | 2,690,000 | | | Magnetite VII Ltd. 2.80%, 01/15/2028, 3 mo. USD LIBOR + 0.800%(4)(5) | | | 2,681,981 | |
| | 1,615,000 | | | Magnetite XVIII Ltd. 3.41%, 11/15/2028, 3 mo. USD LIBOR + 1.500%(4)(5) | | | 1,611,725 | |
| | | | MMAF Equipment Finance LLC | |
| | 564,086 | | | 2.21%, 10/17/2022(4) | | | 564,448 | |
| | 1,000,000 | | | 2.21%, 12/15/2032(4) | | | 1,001,229 | |
| | 66,845 | | | OneMain Financial Issuance Trust 3.66%, 02/20/2029(4) | | | 66,978 | |
| | | | Springleaf Funding Trust | |
| | 92,611 | | | 2.90%, 11/15/2029(4) | | | 92,645 | |
| | 755,000 | | | 3.48%, 05/15/2028(4) | | | 756,779 | |
| | | | Towd Point Mortgage Trust | |
| | 862,815 | | | 2.75%, 10/25/2056(4)(6) | | | 868,703 | |
| | 214,696 | | | 2.75%, 04/25/2057(4)(6) | | | 216,108 | |
| | 654,299 | | | 2.75%, 06/25/2057(4)(6) | | | 658,154 | |
| | 312,179 | | | 3.00%, 01/25/2058(4)(6) | | | 315,479 | |
| | 2,635,000 | | | Treman Park CLO Ltd. 3.04%, 10/20/2028, 3 mo. USD LIBOR + 1.070%(4)(5) | | | 2,633,659 | |
| | | | Vantage Data Centers Issuer LLC | |
| | 338,867 | | | 3.19%, 07/15/2044(4) | | | 341,004 | |
| | 800,058 | | | 4.07%, 02/16/2043(4) | | | 825,023 | |
| | | | | | | | |
| | | | | | | 31,106,909 | |
| | | | | | | | |
| | | | Commercial Mortgage - Backed Securities - 0.4% | |
| | 840,000 | | | BAMLL Commercial Mortgage Securities Trust 4.09%, 08/10/2038(4)(6) | | | 930,363 | |
| | 2,220,000 | | | CSMC Trust 2.76%, 04/05/2033(4) | | | 2,223,104 | |
| | | | FREMF Mortgage Trust | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 2.7% - (continued) | |
| | | | Commercial Mortgage - Backed Securities - 0.4% - (continued) | |
| $ | 230,000 | | | 3.17%, 04/25/2046(4)(6) | | $ | 229,814 | |
| | 160,000 | | | 3.50%, 11/25/2045(4)(6) | | | 163,060 | |
| | 285,000 | | | 3.68%, 01/25/2048(4)(6) | | | 292,763 | |
| | 160,000 | | | 3.70%, 04/25/2048(4)(6) | | | 164,823 | |
| | 810,000 | | | 3.77%, 09/25/2029(4)(6) | | | 814,542 | |
| | 200,000 | | | 3.78%, 10/25/2048(4)(6) | | | 206,987 | |
| | 160,000 | | | 3.88%, 02/25/2050(4)(6) | | | 165,407 | |
| | 1,015,000 | | | 4.08%, 09/25/2025(4)(6) | | | 1,055,579 | |
| | 260,000 | | | 4.16%, 04/25/2049(4)(6) | | | 274,028 | |
| | 525,000 | | | 5.52%, 04/25/2020(4)(6) | | | 525,584 | |
| | 1,000,000 | | | SFAVE Commercial Mortgage Securities Trust 4.14%, 01/05/2043(4)(6) | | | 1,034,653 | |
| | | | | | | | |
| | | | | | | 8,080,707 | |
| | | | | | | | |
| | | | Other ABS - 0.3% | |
| | 1,113,867 | | | AASET U.S. Ltd. 4.45%, 11/18/2038(4) | | | 1,135,239 | |
| | 1,225,000 | | | BlueMountain CLO Ltd. 3.35%, 11/20/2028, 3 mo. USD LIBOR + 1.450%(4)(5) | | | 1,215,455 | |
| | 578,293 | | | Castlelake Aircraft Securitization Trust 3.97%, 04/15/2039(4) | | | 583,787 | |
| | 1,695,000 | | | Hertz Fleet Lease Funding L.P. 2.70%, 01/10/2033(4) | | | 1,707,256 | |
| | 246,745 | | | Mach I 3.47%, 10/15/2039(4) | | | 245,049 | |
| | 232,997 | | | MAPS Ltd. 4.46%, 03/15/2044(4) | | | 239,840 | |
| | 865,037 | | | SoFi Consumer Loan Program Trust 3.54%, 11/26/2027(4) | | | 871,995 | |
| | | | START Ireland | |
| | 248,500 | | | 3.54%, 11/15/2044(4) | | | 248,495 | |
| | 288,661 | | | 4.09%, 03/15/2044(4) | | | 292,387 | |
| | | | | | | | |
| | | | | | | 6,539,503 | |
| | | | | | | | |
| | | | Whole Loan Collateral CMO - 0.4% | |
| | | | Angel Oak Mortgage Trust LLC | |
| | 581,817 | | | 2.62%, 11/25/2059(4)(6) | | | 580,823 | |
| | 173,667 | | | 2.71%, 11/25/2047(4)(6) | | | 173,488 | |
| | 267,572 | | | 3.63%, 03/25/2049(4)(6) | | | 270,600 | |
| | | | COLT Mortgage Loan Trust | |
| | 259,058 | | | 2.93%, 02/25/2048(4)(6) | | | 259,197 | |
| | 276,515 | | | 3.69%, 10/26/2048(4)(6) | | | 277,966 | |
| | | | Deephaven Residential Mortgage Trust | |
| | 238,723 | | | 2.45%, 06/25/2047(4)(6) | | | 238,348 | |
| | 188,624 | | | 2.58%, 10/25/2047(4)(6) | | | 188,509 | |
| | 84,577 | | | 2.73%, 12/26/2046(4)(6) | | | 84,273 | |
| | 324,980 | | | 2.98%, 12/25/2057(4)(6) | | | 324,773 | |
| | 259,680 | | | 3.56%, 04/25/2059(4)(6) | | | 261,416 | |
| | 534,582 | | | Fannie Mae Connecticut Avenue Securities 7.69%, 10/25/2028, 1 mo. USD LIBOR + 5.900%(5) | | | 577,352 | |
| | 629,123 | | | MetLife Securitization Trust
3.00%, 04/25/2055(4)(6) | | | 636,161 | |
| | | | Mill City Mortgage Loan Trust | |
| | 226,661 | | | 2.50%, 04/25/2057(4)(6) | | | 226,239 | |
| | 663,328 | | | 2.75%, 01/25/2061(4)(6) | | | 666,289 | |
| | 818,374 | | | New Residential Mortgage Loan Trust
4.00%, 04/25/2057(4)(6) | | | 850,343 | |
| | | | Seasoned Credit Risk Transfer Trust | |
| | 837,415 | | | 3.50%, 03/25/2058 | | | 867,862 | |
| | 820,079 | | | 3.50%, 07/25/2058 | | | 846,752 | |
| | 1,083,041 | | | 3.50%, 10/25/2058 | | | 1,125,809 | |
| | 543,886 | | | Towd Point Mortgage Trust
2.25%, 04/25/2056(4)(6) | | | 542,526 | |
| | 687,515 | | | Verus Securitization Trust
3.21%, 05/25/2059(4)(6) | | | 691,730 | |
| | | | | | | | |
| | | | | | | 9,690,456 | |
| | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage Backed Securities
(cost $57,571,843) | | $ | 57,681,056 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% | |
| | | | Aerospace/Defense - 0.3% | |
| $ | 850,000 | | | BAE Systems Holdings, Inc. 3.85%, 12/15/2025(4) | | $ | 902,297 | |
| | 540,000 | | | Boeing Co. 2.70%, 02/01/2027 | | | 547,511 | |
| | | | Lockheed Martin Corp. | |
| | 500,000 | | | 4.07%, 12/15/2042 | | | 570,993 | |
| | 256,000 | | | 4.50%, 05/15/2036 | | | 303,637 | |
| | 560,000 | | | 4.85%, 09/15/2041 | | | 673,582 | |
| | | | United Technologies Corp. | |
| | 685,000 | | | 3.95%, 08/16/2025 | | | 747,046 | |
| | 1,500,000 | | | 4.13%, 11/16/2028 | | | 1,687,641 | |
| | | | | | | | |
| | | | | | | 5,432,707 | |
| | | | | | | | |
| | | | Agriculture - 0.5% | |
| | | | Altria Group, Inc. | |
| | 560,000 | | | 4.50%, 05/02/2043 | | | 572,346 | |
| | 1,995,000 | | | 4.75%, 05/05/2021 | | | 2,067,532 | |
| | 280,000 | | | 5.80%, 02/14/2039 | | | 329,424 | |
| | 3,160,000 | | | BAT Capital Corp. 3.56%, 08/15/2027 | | | 3,226,442 | |
| | | | BAT International Finance plc | |
| | 2,775,000 | | | 3.25%, 06/07/2022(4) | | | 2,836,582 | |
| | 290,000 | | | 3.50%, 06/15/2022(4) | | | 297,968 | |
| | 1,065,000 | | | Imperial Brands Finance plc
3.75%, 07/21/2022(4) | | | 1,096,571 | |
| | 325,000 | | | Philip Morris International, Inc.
4.88%, 11/15/2043 | | | 388,642 | |
| | | | | | | | |
| | | | | | | 10,815,507 | |
| | | | | | | | |
| | | | Airlines - 0.2% | |
| | 2,679,447 | | | Continental Airlines, Inc. 5.98%, 10/19/2023 | | | 2,818,697 | |
| | 1,410,595 | | | Southwest Airlines Co. 6.15%, 02/01/2024 | | | 1,485,995 | |
| | 156,201 | | | United Airlines Class B Pass Through Trust 4.60%, 09/01/2027 | | | 161,535 | |
| | | | | | | | |
| | | | | | | 4,466,227 | |
| | | | | | | | |
| | | | Auto Manufacturers - 0.5% | |
| | 1,440,000 | | | Daimler Finance North America LLC 2.30%, 02/12/2021(4) | | | 1,442,722 | |
| | | | Ford Motor Credit Co. LLC | |
| | 4,200,000 | | | 3.10%, 05/04/2023 | | | 4,196,860 | |
| | 1,030,000 | | | 3.82%, 11/02/2027 | | | 998,843 | |
| | | | General Motors Financial Co., Inc. | |
| | 3,185,000 | | | 3.70%, 05/09/2023 | | | 3,283,704 | |
| | 1,245,000 | | | 3.95%, 04/13/2024 | | | 1,301,591 | |
| | | | | | | | |
| | | | | | | 11,223,720 | |
| | | | | | | | |
| | | | Beverages - 0.6% | |
| | | | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. | | | | |
| | 1,750,000 | | | 3.65%, 02/01/2026 | | | 1,866,484 | |
| | 310,000 | | | 4.70%, 02/01/2036 | | | 359,214 | |
| | 280,000 | | | 4.90%, 02/01/2046 | | | 332,114 | |
| | | | Anheuser-Busch InBev Worldwide, Inc. | |
| | 1,125,000 | | | 3.50%, 01/12/2024 | | | 1,185,580 | |
| | 220,000 | | | 4.38%, 04/15/2038 | | | 247,144 | |
| | 2,515,000 | | | 4.75%, 01/23/2029 | | | 2,915,311 | |
| | 1,300,000 | | | Coca-Cola Femsa S.A.B. de C.V. 3.88%, 11/26/2023 | | | 1,373,555 | |
| | | | Molson Coors Brewing Co. | |
| | 2,725,000 | | | 3.00%, 07/15/2026 | | | 2,758,925 | |
| | 765,000 | | | 3.50%, 05/01/2022 | | | 786,490 | |
| | | | | | | | |
| | | | | | | 11,824,817 | |
| | | | | | | | |
| | | | Biotechnology - 0.1% | |
| | 1,340,000 | | | Biogen, Inc. 2.90%, 09/15/2020 | | | 1,349,849 | |
| | 335,000 | | | Gilead Sciences, Inc. 2.55%, 09/01/2020 | | | 336,428 | |
| | | | | | | | |
| | | | | | | 1,686,277 | |
| | | | | | | | |
| | | | Chemicals - 0.1% | |
| | 2,740,000 | | | CNAC HK Synbridge Co., Ltd. 5.00%, 05/05/2020 | | | 2,761,208 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Commercial Banks - 4.1% | |
| | | | Banco Santander S.A. | |
| $ | 1,200,000 | | | 3.13%, 02/23/2023 | | $ | 1,224,909 | |
| | 600,000 | | | 3.85%, 04/12/2023 | | | 625,935 | |
| | | | Bank of America Corp. | |
| | 1,220,000 | | | 2.63%, 10/19/2020 | | | 1,226,984 | |
| | 1,799,000 | | | 3.42%, 12/20/2028, (3.42% fixed rate until 12/20/2027; 3 mo. USD LIBOR + 1.040% thereafter)(7) | | | 1,889,209 | |
| | 1,610,000 | | | 3.59%, 07/21/2028, (3.59% fixed rate until 07/21/2027; 3 mo. USD LIBOR + 1.370% thereafter)(7) | | | 1,706,725 | |
| | 4,225,000 | | | 4.20%, 08/26/2024 | | | 4,536,865 | |
| | 2,380,000 | | | Bank of Nova Scotia 2.70%, 08/03/2026 | | | 2,422,433 | |
| | | | Barclays plc | |
| | 2,740,000 | | | 3.20%, 08/10/2021 | | | 2,777,176 | |
| | 1,000,000 | | | 3.93%, 05/07/2025, (3.93% fixed rate until 05/07/2024; 3 mo. USD LIBOR + 1.610% thereafter)(7) | | | 1,051,250 | |
| | 1,660,000 | | | BB&T Corp. 3.20%, 09/03/2021 | | | 1,691,897 | |
| | | | BNP Paribas S.A. | |
| | 830,000 | | | 2.82%, 11/19/2025, (2.82% fixed rate until 11/19/2024; 3 mo. USD LIBOR + 1.111% thereafter)(4)(7) | | | 839,858 | |
| | 1,000,000 | | | 3.38%, 01/09/2025(4) | | | 1,038,636 | |
| | | | BPCE S.A. | |
| | 450,000 | | | 3.50%, 10/23/2027(4) | | | 465,025 | |
| | 2,225,000 | | | 5.15%, 07/21/2024(4) | | | 2,441,824 | |
| | 3,625,000 | | | 5.70%, 10/22/2023(4) | | | 4,003,486 | |
| | 1,875,000 | | | Capital One Financial Corp. 3.75%, 04/24/2024 | | | 1,974,785 | |
| | | | Citigroup, Inc. | |
| | 533,000 | | | 5.30%, 05/06/2044 | | | 680,013 | |
| | 290,000 | | | 8.13%, 07/15/2039 | | | 484,142 | |
| | 1,695,000 | | | Citizens Bank NA 2.55%, 05/13/2021 | | | 1,708,034 | |
| | | | Credit Agricole S.A. | |
| | 1,025,000 | | | 3.25%, 10/04/2024(4) | | | 1,062,507 | |
| | 535,000 | | | 3.75%, 04/24/2023(4) | | | 559,665 | |
| | 790,000 | | | 4.38%, 03/17/2025(4) | | | 846,939 | |
| | | | Credit Suisse AG | |
| | 855,000 | | | 3.00%, 10/29/2021 | | | 872,165 | |
| | 250,000 | | | 3.63%, 09/09/2024 | | | 265,977 | |
| | | | Credit Suisse Group AG | |
| | 345,000 | | | 3.13%, 06/12/2024, 3 mo. USD LIBOR + 1.240%(4)(5) | | | 349,131 | |
| | 530,000 | | | 3.57%, 01/09/2023(4) | | | 544,602 | |
| | 260,000 | | | 3.87%, 01/12/2029, (3.87% fixed rate until 01/12/2028; 3 mo. USD LIBOR + 1.410% thereafter)(4)(7) | | | 277,049 | |
| | | | Credit Suisse Group Funding Guernsey Ltd. | |
| | 1,425,000 | | | 3.75%, 03/26/2025 | | | 1,508,437 | |
| | 1,885,000 | | | 3.80%, 09/15/2022 | | | 1,962,562 | |
| | | | Danske Bank A/S | |
| | 775,000 | | | 3.88%, 09/12/2023(4) | | | 804,821 | |
| | 440,000 | | | 5.00%, 01/12/2022(4) | | | 462,173 | |
| | 575,000 | | | 5.38%, 01/12/2024(4) | | | 629,415 | |
| | 785,000 | | | Deutsche Bank AG 4.25%, 10/14/2021 | | | 807,390 | |
| | | | Goldman Sachs Group, Inc. | |
| | 250,000 | | | 3.81%, 04/23/2029, (3.81% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.158% thereafter)(7) | | | 268,220 | |
| | 2,000,000 | | | 6.25%, 02/01/2041 | | | 2,796,716 | |
| | | | HSBC Holdings plc | |
| | 1,030,000 | | | 3.40%, 03/08/2021 | | | 1,046,365 | |
| | 3,625,000 | | | 3.60%, 05/25/2023 | | | 3,781,908 | |
| | 1,490,000 | | | Huntington National Bank 2.40%, 04/01/2020 | | | 1,491,040 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Commercial Banks - 4.1% - (continued) | |
| | | | ING Groep N.V. | |
| $ | 345,000 | | | 3.15%, 03/29/2022 | | $ | 352,747 | |
| | 1,100,000 | | | 3.95%, 03/29/2027 | | | 1,186,186 | |
| | | | JP Morgan Chase & Co. | |
| | 2,240,000 | | | 3.25%, 09/23/2022 | | | 2,317,607 | |
| | 1,660,000 | | | 3.70%, 05/06/2030, (3.70% fixed rate until 05/06/2029; 3 mo. USD LIBOR + 1.160% thereafter)(7) | | | 1,788,453 | |
| | 2,775,000 | | | 4.45%, 12/05/2029, (4.45% fixed rate until 12/05/2028; 3 mo. USD LIBOR + 1.330% thereafter)(7) | | | 3,158,203 | |
| | 470,000 | | | Macquarie Bank Ltd. 2.40%, 01/21/2020(4) | | | 470,054 | |
| | 1,500,000 | | | Macquarie Group Ltd. 4.15%, 03/27/2024, (4.15% fixed rate until 03/27/2023; 3 mo. USD LIBOR + 1.330% thereafter)(4)(7) | | | 1,576,467 | |
| | | | Morgan Stanley | |
| | 1,450,000 | | | 3.13%, 07/27/2026 | | | 1,497,184 | |
| | 2,450,000 | | | 3.63%, 01/20/2027 | | | 2,608,795 | |
| | 1,000,000 | | | 3.70%, 10/23/2024 | | | 1,062,304 | |
| | 4,905,000 | | | NBK SPC Ltd. 2.75%, 05/30/2022(4) | | | 4,937,726 | |
| | 1,755,000 | | | Santander Holdings USA, Inc. 3.40%, 01/18/2023 | | | 1,799,482 | |
| | 685,000 | | | UBS Group AG 3.13%, 08/13/2030, (3.13% fixed rate until 08/13/2029; 3 mo. USD LIBOR + 1.468% thereafter)(4)(7) | | | 696,830 | |
| | | | UBS Group Funding Switzerland AG | |
| | 1,665,000 | | | 2.95%, 09/24/2020(4) | | | 1,676,644 | |
| | 1,900,000 | | | 3.00%, 04/15/2021(4) | | | 1,924,748 | |
| | | | Wells Fargo & Co. | |
| | 4,344,000 | | | 4.48%, 01/16/2024 | | | 4,691,621 | |
| | 850,000 | | | 4.75%, 12/07/2046 | | | 1,020,761 | |
| | | | | | | | |
| | | | | | | 85,892,080 | |
| | | | | | | | |
| | | | Commercial Services - 0.3% | |
| | | | CommonSpirit Health | |
| | 1,854,000 | | | 2.95%, 11/01/2022 | | | 1,889,103 | |
| | 245,000 | | | 4.35%, 11/01/2042 | | | 251,648 | |
| | | | ERAC USA Finance LLC | |
| | 1,800,000 | | | 4.50%, 08/16/2021(4) | | | 1,869,363 | |
| | 1,500,000 | | | 5.63%, 03/15/2042(4) | | | 1,903,452 | |
| | | | | | | | |
| | | | | | | 5,913,566 | |
| | | | | | | | |
| | | | Diversified Financial Services - 0.3% | |
| | 4,610,520 | | | Postal Square L.P. 8.95%, 06/15/2022 | | | 5,075,053 | |
| | 1,220,000 | | | Societe Generale S.A. 3.25%, 01/12/2022(4) | | | 1,245,209 | |
| | | | | | | | |
| | | | | | | 6,320,262 | |
| | | | | | | | |
| | | | Electric - 1.9% | |
| | | | Cleco Corporate Holdings LLC | |
| | 650,000 | | | 3.38%, 09/15/2029(4) | | | 652,800 | |
| | 1,294,000 | | | 3.74%, 05/01/2026 | | | 1,337,195 | |
| | 875,000 | | | 4.97%, 05/01/2046 | | | 971,047 | |
| | 1,960,000 | | | Cleveland Electric Illuminating Co. 3.50%, 04/01/2028(4) | | | 2,041,574 | |
| | | | Dominion Energy South Carolina, Inc. | |
| | 205,000 | | | 4.60%, 06/15/2043 | | | 243,454 | |
| | 1,180,000 | | | 6.05%, 01/15/2038 | | | 1,607,145 | |
| | 360,000 | | | 6.63%, 02/01/2032 | | | 488,324 | |
| | | | Dominion Energy, Inc. | |
| | 2,090,000 | | | 2.45%, 01/15/2023(4) | | | 2,097,304 | |
| | 310,000 | | | 2.72%, 08/15/2021(8) | | | 312,376 | |
| | 1,750,000 | | | 4.10%, 04/01/2021(8) | | | 1,793,604 | |
| | 1,200,000 | | | Duke Energy Carolinas LLC
6.10%, 06/01/2037 | | | 1,632,688 | |
| | 265,000 | | | Duke Energy Corp. 3.40%, 06/15/2029 | | | 277,006 | |
| | 1,375,000 | | | Electricite de France S.A. 5.63%, 12/29/2049, (5.63% fixed rate until 01/22/2024; 10 year USD Swap + 3.041% thereafter)(4)(7)(9) | | | 1,457,500 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Electric - 1.9% - (continued) | |
| $ | 365,000 | | | Emera U.S. Finance L.P. 2.70%, 06/15/2021 | | $ | 368,397 | |
| | 1,165,000 | | | Evergy, Inc. 2.90%, 09/15/2029 | | | 1,159,527 | |
| | 1,000,000 | | | FirstEnergy Corp. 3.90%, 07/15/2027 | | | 1,069,674 | |
| | 2,405,000 | | | Fortis, Inc. 3.06%, 10/04/2026 | | | 2,456,528 | |
| | | | Georgia Power Co. | |
| | 845,000 | | | 4.30%, 03/15/2042 | | | 927,236 | |
| | 245,000 | | | 4.75%, 09/01/2040 | | | 277,909 | |
| | 1,275,000 | | | Indianapolis Power and Light Co. 6.60%, 06/01/2037(4) | | | 1,758,606 | |
| | 515,000 | | | Infraestructura Energetica Nova S.A.B. de C.V. 4.88%, 01/14/2048(4) | | | 490,537 | |
| | | | NextEra Energy Capital Holdings, Inc. | |
| | 630,000 | | | 2.75%, 11/01/2029 | | | 633,361 | |
| | 215,000 | | | 3.25%, 04/01/2026 | | | 223,978 | |
| | 335,000 | | | 3.50%, 04/01/2029 | | | 356,627 | |
| | 645,000 | | | Niagara Mohawk Power Corp. 4.28%, 12/15/2028(4) | | | 719,582 | |
| | 1,325,000 | | | Oglethorpe Power Corp. 5.25%, 09/01/2050 | | | 1,592,554 | |
| | | | Oncor Electric Delivery Co. LLC | |
| | 385,000 | | | 2.95%, 04/01/2025 | | | 393,805 | |
| | 1,185,000 | | | 4.10%, 06/01/2022 | | | 1,238,954 | |
| | 2,300,000 | | | PPL Capital Funding, Inc. 3.10%, 05/15/2026 | | | 2,341,695 | |
| | | | SCANA Corp. | |
| | 893,000 | | | 4.13%, 02/01/2022 | | | 917,733 | |
| | 1,222,000 | | | 4.75%, 05/15/2021 | | | 1,249,478 | |
| | 484,000 | | | 6.25%, 04/01/2020 | | | 487,674 | |
| | 2,000,000 | | | Southern California Edison Co.
5.55%, 01/15/2037 | | | 2,416,666 | |
| | | | Southern Co. | |
| | 1,450,000 | | | 2.75%, 06/15/2020 | | | 1,453,453 | |
| | 2,050,000 | | | 2.95%, 07/01/2023 | | | 2,102,909 | |
| | 385,000 | | | 4.40%, 07/01/2046 | | | 426,990 | |
| | | | | | | | |
| | | | | | | 39,975,890 | |
| | | | | | | | |
| | | | Engineering & Construction - 0.1% | |
| | | | SBA Tower Trust | |
| | 1,235,000 | | | 2.88%, 07/15/2046(4) | | | 1,239,117 | |
| | 225,000 | | | 3.45%, 03/15/2048(4) | | | 231,812 | |
| | | | | | | | |
| | | | | | | 1,470,929 | |
| | | | | | | | |
| | | | Food - 0.3% | |
| | | | Conagra Brands, Inc. | |
| | 455,000 | | | 4.60%, 11/01/2025 | | | 502,694 | |
| | 530,000 | | | 5.30%, 11/01/2038 | | | 629,441 | |
| | 1,255,000 | | | Danone S.A. 2.95%, 11/02/2026(4) | | | 1,282,100 | |
| | 505,000 | | | Kraft Heinz Foods Co. 4.38%, 06/01/2046 | | | 497,814 | |
| | 1,065,000 | | | Kroger Co. 4.00%, 02/01/2024 | | | 1,135,264 | |
| | 480,000 | | | Sigma Alimentos S.A. de C.V. 4.13%, 05/02/2026(4) | | | 502,205 | |
| | 675,000 | | | Tyson Foods, Inc. 5.10%, 09/28/2048 | | | 849,932 | |
| | | | | | | | |
| | | | | | | 5,399,450 | |
| | | | | | | | |
| | | | Gas - 0.2% | |
| | 330,000 | | | Boston Gas Co. 3.15%, 08/01/2027(4) | | | 341,265 | |
| | 1,145,000 | | | Dominion Energy Gas Holdings LLC 3.00%, 11/15/2029 | | | 1,141,145 | |
| | 1,870,000 | | | KeySpan Gas East Corp. 2.74%, 08/15/2026(4) | | | 1,874,619 | |
| | 350,000 | | | Sempra Energy 3.40%, 02/01/2028 | | | 362,839 | |
| | | | | | | | |
| | | | | | | 3,719,868 | |
| | | | | | | | |
| | | | Healthcare-Products - 0.0% | |
| | 400,000 | | | Alcon Finance Corp. 3.80%, 09/23/2049(4) | | | 419,698 | |
| | 135,000 | | | Boston Scientific Corp. 4.00%, 03/01/2029 | | | 149,409 | |
| | 305,000 | | | Medtronic, Inc. 3.15%, 03/15/2022 | | | 313,698 | |
| | | | | | | | |
| | | | | | | 882,805 | |
| | | | | | | | |
| | | | Healthcare - Services - 0.6% | |
| | | | Anthem, Inc. | |
| | 421,000 | | | 3.30%, 01/15/2023 | | | 435,636 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Healthcare - Services - 0.6% - (continued) | |
| $ | 1,360,000 | | | 4.10%, 03/01/2028 | | $ | 1,477,775 | |
| | 475,000 | | | 4.65%, 08/15/2044 | | | 538,437 | |
| | | | CommonSpirit Health | |
| | 125,000 | | | 4.19%, 10/01/2049 | | | 124,978 | |
| | 590,000 | | | 4.20%, 08/01/2023 | | | 623,286 | |
| | | | Dignity Health | |
| | 714,000 | | | 3.81%, 11/01/2024 | | | 753,863 | |
| | 1,353,000 | | | 4.50%, 11/01/2042 | | | 1,406,996 | |
| | 425,000 | | | HCA, Inc. 5.25%, 06/15/2049 | | | 475,120 | |
| | 1,770,000 | | | Humana, Inc. 2.90%, 12/15/2022 | | | 1,803,596 | |
| | | | Mercy Health | |
| | 1,400,000 | | | 3.56%, 08/01/2027 | | | 1,448,731 | |
| | 1,210,000 | | | 4.30%, 07/01/2028 | | | 1,355,606 | |
| | | | UnitedHealth Group, Inc. | |
| | 920,000 | | | 3.35%, 07/15/2022 | | | 952,950 | |
| | 1,440,000 | | | 3.75%, 07/15/2025 | | | 1,555,575 | |
| | | | | | | | |
| | | | | | | 12,952,549 | |
| | | | | | | | |
| | | | Household Products - 0.1% | |
| | 2,240,640 | | | Procter & Gamble - Esop 9.36%, 01/01/2021 | | | 2,303,522 | |
| | | | | | | | |
| | | | Insurance - 0.5% | |
| | 1,255,000 | | | American International Group, Inc. 4.25%, 03/15/2029 | | | 1,397,101 | |
| | 1,000,000 | | | Berkshire Hathaway, Inc. 2.75%, 03/15/2023 | | | 1,025,424 | |
| | | | Chubb INA Holdings, Inc. | |
| | 495,000 | | | 2.30%, 11/03/2020 | | | 496,753 | |
| | 840,000 | | | 3.35%, 05/15/2024 | | | 885,114 | |
| | 200,000 | | | Five Corners Funding Trust 4.42%, 11/15/2023(4) | | | 217,133 | |
| | | | Liberty Mutual Group, Inc. | |
| | 122,000 | | | 4.25%, 06/15/2023(4) | | | 129,649 | |
| | 428,000 | | | 4.57%, 02/01/2029(4) | | | 478,313 | |
| | 705,000 | | | Marsh & McLennan Cos., Inc. 4.38%, 03/15/2029 | | | 803,799 | |
| | | | MetLife, Inc. | |
| | 2,205,000 | | | 3.60%, 04/10/2024 | | | 2,349,605 | |
| | 795,000 | | | 4.88%, 11/13/2043 | | | 985,855 | |
| | 132,000 | | | Northwestern Mutual Life Insurance Co. 3.63%, 09/30/2059(4) | | | 132,388 | |
| | 2,220,000 | | | Trinity Acquisition plc 4.40%, 03/15/2026 | | | 2,413,985 | |
| | | | | | | | |
| | | | | | | 11,315,119 | |
| | | | | | | | |
| | | | Internet - 0.3% | |
| | 1,775,000 | | | Alibaba Group Holding Ltd. 3.40%, 12/06/2027 | | | 1,849,394 | |
| | | | Amazon.com, Inc. | |
| | 1,250,000 | | | 2.50%, 11/29/2022 | | | 1,274,875 | |
| | 1,020,000 | | | 4.80%, 12/05/2034 | | | 1,287,170 | |
| | | | Tencent Holdings Ltd. | |
| | 1,095,000 | | | 3.60%, 01/19/2028(4) | | | 1,144,689 | |
| | 470,000 | | | 3.98%, 04/11/2029(4) | | | 507,580 | |
| | | | | | | | |
| | | | | | | 6,063,708 | |
| | | | | | | | |
| | | | IT Services - 0.2% | |
| | | | Apple, Inc. | |
| | 546,000 | | | 3.25%, 02/23/2026 | | | 578,255 | |
| | 1,360,000 | | | 3.45%, 05/06/2024 | | | 1,444,370 | |
| | 1,675,000 | | | International Business Machines Corp. 3.30%, 05/15/2026 | | | 1,768,228 | |
| | | | | | | | |
| | | | | | | 3,790,853 | |
| | | | | | | | |
| | | | Machinery - Construction & Mining - 0.1% | |
| | 1,500,000 | | | Caterpillar Financial Services Corp. 3.30%, 06/09/2024 | | | 1,577,286 | |
| | | | | | | | |
| | | | Media - 0.8% | |
| | 570,000 | | | CBS Corp. 3.70%, 06/01/2028 | | | 597,752 | |
| | 485,000 | | | Charter Communications Operating LLC / Charter Communications Operating Capital 5.38%, 05/01/2047 | | | 544,125 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Media - 0.8% - (continued) | |
| | | | Comcast Corp. | |
| $ | 1,140,000 | | | 3.95%, 10/15/2025 | | $ | 1,244,210 | |
| | 2,050,000 | | | 4.40%, 08/15/2035 | | | 2,404,708 | |
| | 585,000 | | | 4.60%, 10/15/2038 | | | 697,476 | |
| | | | Cox Communications, Inc. | |
| | 80,000 | | | 4.60%, 08/15/2047(4) | | | 88,839 | |
| | 2,320,000 | | | 4.80%, 02/01/2035(4) | | | 2,569,988 | |
| | 365,000 | | | Fox Corp. 4.03%, 01/25/2024(4) | | | 388,965 | |
| | 2,386,000 | | | Sky Ltd. 3.75%, 09/16/2024(4) | | | 2,555,964 | |
| | | | Time Warner Cable LLC | |
| | 395,000 | | | 6.55%, 05/01/2037 | | | 484,564 | |
| | 250,000 | | | 7.30%, 07/01/2038 | | | 326,122 | |
| | 130,000 | | | Time Warner Entertainment Co., L.P. 8.38%, 03/15/2023 | | | 153,448 | |
| | | | Viacom, Inc. | |
| | 835,000 | | | 3.88%, 12/15/2021 | | | 863,899 | |
| | 2,175,000 | | | 4.25%, 09/01/2023 | | | 2,316,537 | |
| | 400,000 | | | 5.85%, 09/01/2043 | | | 501,165 | |
| | | | Walt Disney Co. | |
| | 385,000 | | | 4.00%, 10/01/2023 | | | 412,908 | |
| | 1,275,000 | | | 4.50%, 02/15/2021 | | | 1,313,950 | |
| | | | | | | | |
| | | | | | | 17,464,620 | |
| | | | | | | | |
| | | | Mining - 0.1% | |
| | 1,575,000 | | | Glencore Finance Canada Ltd. 4.25%, 10/25/2022(4) | | | 1,649,066 | |
| | | | | | | | |
| | | | Oil & Gas - 0.8% | |
| | 1,200,000 | | | BG Energy Capital plc 4.00%, 10/15/2021(4) | | | 1,239,679 | |
| | 655,000 | | | BP Capital Markets America, Inc. 3.25%, 05/06/2022 | | | 676,096 | |
| | 2,080,000 | | | Cimarex Energy Co. 4.38%, 06/01/2024 | | | 2,197,084 | |
| | 130,000 | | | ConocoPhillips Co. 4.95%, 03/15/2026 | | | 149,604 | |
| | | | Equinor ASA | |
| | 160,000 | | | 2.45%, 01/17/2023 | | | 162,518 | |
| | 1,850,000 | | | 2.90%, 11/08/2020 | | | 1,865,421 | |
| | 210,000 | | | 3.25%, 11/10/2024 | | | 221,303 | |
| | 45,000 | | | 3.70%, 03/01/2024 | | | 47,947 | |
| | 1,290,000 | | | Hess Corp. 7.30%, 08/15/2031 | | | 1,644,103 | |
| | | | Occidental Petroleum Corp. | |
| | 1,326,000 | | | 4.85%, 03/15/2021 | | | 1,365,888 | |
| | 330,000 | | | 7.50%, 05/01/2031 | | | 429,390 | |
| | 3,540,000 | | | Pioneer Natural Resources Co. 7.50%, 01/15/2020 | | | 3,545,876 | |
| | 815,000 | | | Saudi Arabian Oil Co. 3.50%, 04/16/2029(4) | | | 844,977 | |
| | 1,375,000 | | | Total Capital International S.A. 2.70%, 01/25/2023 | | | 1,405,098 | |
| | | | | | | | |
| | | | | | | 15,794,984 | |
| | | | | | | | |
| | | | Oil & Gas Services - 0.0% | |
| | 948,000 | | | Schlumberger Holdings Corp. 3.90%, 05/17/2028(4) | | | 1,010,003 | |
| | | | | | | | |
| | | | Pharmaceuticals - 0.9% | |
| | | | AbbVie, Inc. | |
| | 490,000 | | | 4.05%, 11/21/2039(4) | | | 515,018 | |
| | 805,000 | | | 4.25%, 11/21/2049(4) | | | 854,764 | |
| | | | Allergan Funding SCS | |
| | 645,000 | | | 3.45%, 03/15/2022 | | | 659,812 | |
| | 975,000 | | | 3.80%, 03/15/2025 | | | 1,024,635 | |
| | 600,000 | | | 4.85%, 06/15/2044 | | | 653,929 | |
| | | | Allergan Sales LLC | |
| | 142,000 | | | 4.88%, 02/15/2021(4) | | | 146,142 | |
| | 800,000 | | | 5.00%, 12/15/2021(4) | | | 836,744 | |
| | | | Bayer U.S. Finance LLC | |
| | 955,000 | | | 3.38%, 10/08/2024(4) | | | 984,443 | |
| | 2,230,000 | | | 4.25%, 12/15/2025(4) | | | 2,406,728 | |
| | 770,000 | | | Bristol-Myers Squibb Co. 3.55%, 08/15/2022(4) | | | 800,264 | |
| | 955,000 | | | Cigna Corp. 4.38%, 10/15/2028 | | | 1,058,033 | |
| | 3,130,000 | | | CVS Health Corp. 4.10%, 03/25/2025 | | | 3,360,569 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Pharmaceuticals - 0.9% - (continued) | |
| $ | 2,015,000 | | | EMD Finance LLC 2.95%, 03/19/2022(4) | | $ | 2,042,342 | |
| | | | Merck & Co., Inc. | |
| | 1,960,000 | | | 2.75%, 02/10/2025 | | | 2,033,705 | |
| | 1,640,000 | | | 2.80%, 05/18/2023 | | | 1,689,817 | |
| | | | | | | | |
| | | | | | | 19,066,945 | |
| | | | | | | | |
| | | | Pipelines - 0.7% | |
| | 872,000 | | | Energy Transfer Operating L.P. 7.60%, 02/01/2024 | | | 1,010,988 | |
| | 375,000 | | | Energy Transfer Partners L.P.
4.50%, 11/01/2023 | | | 397,333 | |
| | 2,395,000 | | | EQM Midstream Partners L.P.
4.75%, 07/15/2023 | | | 2,402,644 | |
| | | | MPLX L.P. | |
| | 485,000 | | | 4.00%, 03/15/2028 | | | 502,350 | |
| | 1,280,000 | | | 4.13%, 03/01/2027 | | | 1,344,562 | |
| | | | Phillips 66 Partners L.P. | |
| | 2,425,000 | | | 3.61%, 02/15/2025 | | | 2,542,184 | |
| | 650,000 | | | 3.75%, 03/01/2028 | | | 677,073 | |
| | | | Sunoco Logistics Partners Operations L.P. | |
| | 1,775,000 | | | 3.90%, 07/15/2026 | | | 1,844,035 | |
| | 509,000 | | | 4.40%, 04/01/2021 | | | 521,280 | |
| | 1,075,000 | | | 5.35%, 05/15/2045 | | | 1,156,103 | |
| | 2,470,000 | | | Western Midstream Operating L.P. 4.00%, 07/01/2022 | | | 2,531,906 | |
| | | | | | | | |
| | | | | | | 14,930,458 | |
| | | | | | | | |
| | | | Real Estate - 0.2% | |
| | 1,920,000 | | | WEA Finance LLC 4.13%, 09/20/2028(4) | | | 2,079,219 | |
| | 1,400,000 | | | WEA Finance LLC / Westfield UK & Europe Finance plc 3.25%, 10/05/2020(4) | | | 1,411,274 | |
| | | | | | | | |
| | | | | | | 3,490,493 | |
| | | | | | | | |
| | | | Real Estate Investment Trusts - 0.6% | |
| | | | American Tower Corp. | |
| | 975,000 | | | 3.45%, 09/15/2021 | | | 997,210 | |
| | 1,346,000 | | | 3.80%, 08/15/2029 | | | 1,439,048 | |
| | 375,000 | | | 4.40%, 02/15/2026 | | | 409,228 | |
| | 400,000 | | | 5.00%, 02/15/2024 | | | 439,947 | |
| | 760,000 | | | AvalonBay Communities, Inc.
3.63%, 10/01/2020 | | | 766,095 | |
| | 1,950,000 | | | Brandywine Operating Partnership L.P. 3.95%, 11/15/2027 | | | 2,038,824 | |
| | | | Crown Castle International Corp. | |
| | 635,000 | | | 3.65%, 09/01/2027 | | | 672,031 | |
| | 525,000 | | | 3.80%, 02/15/2028 | | | 559,645 | |
| | 2,960,000 | | | HCP, Inc. 4.00%, 06/01/2025 | | | 3,182,652 | |
| | 980,000 | | | Healthpeak Properties, Inc.
3.00%, 01/15/2030 | | | 983,871 | |
| | 470,000 | | | SBA Tower Trust 2.84%, 01/15/2025(4) | | | 474,791 | |
| | 745,000 | | | Simon Property Group L.P.
2.45%, 09/13/2029 | | | 733,438 | |
| | | | | | | | |
| | | | | | | 12,696,780 | |
| | | | | | | | |
| | | | Retail - 0.3% | |
| | 1,325,000 | | | AutoZone, Inc. 3.25%, 04/15/2025 | | | 1,381,597 | |
| | | | CVS Health Corp. | |
| | 2,100,000 | | | 4.00%, 12/05/2023 | | | 2,222,438 | |
| | 685,000 | | | 4.88%, 07/20/2035 | | | 787,893 | |
| | 945,000 | | | Lowe’s Cos., Inc. 4.55%, 04/05/2049 | | | 1,115,741 | |
| | | | | | | | |
| | | | | | | 5,507,669 | |
| | | | | | | | |
| | | | Savings & Loans - 0.0% | |
| | 540,000 | | | Nationwide Building Society 3.62%, 04/26/2023, (3.62% fixed rate until 04/26/2022; 3 mo. USD LIBOR + 1.181% thereafter)(4)(7) | | | 555,481 | |
| | | | | | | | |
| | | | Semiconductors - 0.2% | |
| | | | Broadcom Corp. / Broadcom Cayman Finance Ltd. | | | | |
| | 1,855,000 | | | 3.63%, 01/15/2024 | | | 1,922,568 | |
| | 935,000 | | | 3.88%, 01/15/2027 | | | 971,239 | |
| | 110,000 | | | Broadcom, Inc. 4.25%, 04/15/2026(4) | | | 116,839 | |
| | 810,000 | | | Microchip Technology, Inc.
3.92%, 06/01/2021 | | | 828,371 | |
| | | | | | | | |
| | | | | | | 3,839,017 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 17.6% - (continued) | |
| | | | Software - 0.3% | |
| $ | 1,820,000 | | | Fiserv, Inc. 3.20%, 07/01/2026 | | $ | 1,884,875 | |
| | | | Microsoft Corp. | |
| | 1,605,000 | | | 2.40%, 08/08/2026 | | | 1,624,011 | |
| | 1,000,000 | | | 3.70%, 08/08/2046 | | | 1,130,754 | |
| | 2,300,000 | | | Oracle Corp. 3.25%, 11/15/2027 | | | 2,437,711 | |
| | | | | | | | |
| | | | | | | 7,077,351 | |
| | | | | | | | |
| | | | Telecommunications - 1.0% | |
| | 635,000 | | | America Movil S.A.B. de C.V.
3.13%, 07/16/2022 | | | 649,618 | |
| | | | AT&T, Inc. | |
| | 2,325,000 | | | 3.60%, 07/15/2025 | | | 2,461,136 | |
| | 355,000 | | | 3.95%, 01/15/2025 | | | 380,525 | |
| | 800,000 | | | 4.13%, 02/17/2026 | | | 867,150 | |
| | 2,185,000 | | | 4.45%, 04/01/2024 | | | 2,368,671 | |
| | 1,125,000 | | | British Telecommunications plc 3.25%, 11/08/2029(4) | | | 1,124,171 | |
| | | | Deutsche Telekom International Finance B.V. | |
| | 450,000 | | | 3.60%, 01/19/2027(4) | | | 473,919 | |
| | 665,000 | | | 4.38%, 06/21/2028(4) | | | 742,689 | |
| | 715,000 | | | GTP Acquisition Partners LLC 2.35%, 06/15/2045(4) | | | 715,115 | |
| | 576,000 | | | Orange S.A. 9.00%, 03/01/2031 | | | 892,242 | |
| | 2,440,000 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 4.74%, 09/20/2029(4) | | | 2,583,911 | |
| | | | Telefonica Emisiones S.A. | |
| | 1,035,000 | | | 5.21%, 03/08/2047 | | | 1,228,447 | |
| | 300,000 | | | 5.52%, 03/01/2049 | | | 376,372 | |
| | | | Verizon Communications, Inc. | |
| | 2,300,000 | | | 2.95%, 03/15/2022 | | | 2,352,649 | |
| | 2,086,000 | | | 4.52%, 09/15/2048 | | | 2,503,086 | |
| | 222,000 | | | 4.67%, 03/15/2055 | | | 274,299 | |
| | 715,000 | | | 4.75%, 11/01/2041 | | | 865,325 | |
| | 283,000 | | | 4.81%, 03/15/2039 | | | 341,628 | |
| | | | | | | | |
| | | | | | | 21,200,953 | |
| | | | | | | | |
| | | | Transportation - 0.4% | |
| | | | FedEx Corp. | |
| | 62,000 | | | 4.05%, 02/15/2048 | | | 59,906 | |
| | 155,000 | | | 4.10%, 02/01/2045 | | | 150,439 | |
| | 211,000 | | | 4.55%, 04/01/2046 | | | 217,038 | |
| | 425,000 | | | 4.75%, 11/15/2045 | | | 447,583 | |
| | 397,000 | | | 4.95%, 10/17/2048 | | | 434,024 | |
| | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | 155,000 | | | 2.70%, 11/01/2024(4) | | | 156,109 | |
| | 1,685,000 | | | 3.20%, 07/15/2020(4) | | | 1,692,228 | |
| | 1,100,000 | | | 3.38%, 02/01/2022(4) | | | 1,123,415 | |
| | 2,850,000 | | | 3.95%, 03/10/2025(4) | | | 3,028,089 | |
| | | | | | | | |
| | | | | | | 7,308,831 | |
| | | | | | | | |
| | | | Water - 0.0% | |
| | 625,000 | | | American Water Capital Corp. 2.95%, 09/01/2027 | | | 638,889 | |
| | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $348,583,247) | | $ | 368,019,890 | |
| | | | | | | | |
|
| FOREIGN GOVERNMENT OBLIGATIONS - 0.5% | |
| | | | Qatar - 0.4% | |
| | | | Qatar Government International Bond | |
| $ | 4,990,000 | | | 2.38%, 06/02/2021(4) | | $ | 5,002,934 | |
| | 1,680,000 | | | 3.88%, 04/23/2023(4) | | | 1,773,512 | |
| | 636,000 | | | 4.00%, 03/14/2029(4) | | | 709,779 | |
| | | | | | | | |
| | | | | | | 7,486,225 | |
| | | | | | | | |
| | | | Saudi Arabia - 0.1% | |
| | | �� | Saudi Government International Bond | |
| | 935,000 | | | 2.38%, 10/26/2021(4) | | | 937,992 | |
| | 1,385,000 | | | 2.88%, 03/04/2023(4) | | | 1,409,348 | |
| | | | | | | | |
| | | | | | | 2,347,340 | |
| | | | | | | | |
| | |
| | | | Total Foreign Government Obligations
(cost $9,553,224) | | $ | 9,833,565 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 0.9% | |
| | | | Airport - 0.0% | |
| $ | 190,000 | | | Broward County, FL, Airport System Rev 3.48%, 10/01/2043 | | $ | 190,844 | |
| | | | | | | | |
| | | | Education - 0.0% | |
| | 310,000 | | | Massachusetts School Building Auth 3.40%, 10/15/2040 | | | 309,907 | |
| | | | | | | | |
| | | | General - 0.4% | |
| | | | Chicago, IL, Transit Auth | |
| | 140,000 | | | 6.30%, 12/01/2021 | | | 147,414 | |
| | 1,000,000 | | | 6.90%, 12/01/2040 | | | 1,350,920 | |
| | 365,000 | | | City of Sacramento, CA 6.42%, 08/01/2023 | | | 414,815 | |
| | 375,000 | | | Metropolitan Transportation Auth, NY, Rev 6.67%, 11/15/2039 | | | 532,241 | |
| | 2,205,000 | | | New York State Urban Dev Corp. Rev 2.10%, 03/15/2022 | | | 2,209,807 | |
| | 1,250,000 | | | Philadelphia Auth for Industrial Dev 6.55%, 10/15/2028 | | | 1,559,838 | |
| | 1,355,000 | | | Sales Tax Securitization Corp., IL 4.79%, 01/01/2048 | | | 1,574,171 | |
| | | | | | | | |
| | | | | | | 7,789,206 | |
| | | | | | | | |
| | | | General Obligation - 0.2% | |
| | | | California State, GO Taxable | |
| | 420,000 | | | 7.35%, 11/01/2039 | | | 645,170 | |
| | 220,000 | | | 7.55%, 04/01/2039 | | | 352,884 | |
| | 685,000 | | | Chicago, IL, Metropolitan Water Reclamation Dist, GO 5.72%, 12/01/2038 | | | 896,199 | |
| | 1,180,000 | | | State of Illinois, GO 5.10%, 06/01/2033(10) | | | 1,272,076 | |
| | | | | | | | |
| | | | | | | 3,166,329 | |
| | | | | | | | |
| | | | Power - 0.0% | |
| | 485,000 | | | New York, Utility Debt Securitization Auth 3.44%, 12/15/2025 | | | 499,453 | |
| | | | | | | | |
| | | | Transportation - 0.1% | |
| | 225,000 | | | Bay Area Toll Auth, CA 2.57%, 04/01/2031 | | | 223,693 | |
| | | | Foothill-Eastern Transportation Corridor Agency | |
| | 620,000 | | | 3.92%, 01/15/2053 | | | 611,655 | |
| | 180,000 | | | 4.09%, 01/15/2049 | | | 179,703 | |
| | 875,000 | | | Illinois State Toll Highway Auth
6.18%, 01/01/2034 | | | 1,161,492 | |
| | 570,000 | | | New York and New Jersey Port Auth, Taxable Rev 6.04%, 12/01/2029 | | | 733,978 | |
| | | | | | | | |
| | | | | | | 2,910,521 | |
| | | | | | | | |
| | | | Utility - Electric - 0.2% | |
| | 785,000 | | | Illinois Municipal Electric Agency
6.83%, 02/01/2035 | | | 1,017,313 | |
| | | | Municipal Electric Auth, GA | |
| | 1,596,000 | | | 6.64%, 04/01/2057 | | | 2,148,982 | |
| | 412,000 | | | 6.66%, 04/01/2057 | | | 567,493 | |
| | | | | | | | |
| | | | | | | 3,733,788 | |
| | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $16,738,916) | | $ | 18,600,048 | |
| | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 2.3% | |
| | | | Mortgage-Backed Agencies - 2.3% | |
| | | | FHLMC - 1.6% | |
| $ | 570,000 | | | 2.28%, 07/25/2026 | | $ | 570,742 | |
| | 194,703 | | | 2.50%, 10/01/2049 | | | 192,558 | |
| | 10,688,623 | | | 2.50%, 11/01/2049 | | | 10,570,866 | |
| | 3,916,829 | | | 2.50%, 12/01/2049 | | | 3,873,677 | |
| | 3,374,672 | | | 3.00%, 11/01/2049 | | | 3,424,057 | |
| | 1,730,508 | | | 3.00%, 12/01/2049 | | | 1,756,024 | |
| | 3,693,900 | | | 3.00%, 01/01/2050 | | | 3,749,650 | |
| | 8,339,585 | | | 3.50%, 08/01/2048 | | | 8,580,541 | |
| | 24,764 | | | 4.00%, 03/01/2041 | | | 26,577 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 2.3% - (continued) | |
| | | | Mortgage-Backed Agencies - 2.3% - (continued) | |
| | | | FHLMC - 1.6% - (continued) | |
| $ | 17,324 | | | 4.62%, 04/01/2029, 12 mo. USD CMT + 2.252%(5) | | $ | 18,003 | |
| | | | | | | | |
| | | | | | | 32,762,695 | |
| | | | | | | | |
| | | | FNMA - 0.6% | |
| | 487,778 | | | 2.25%, 10/25/2024, 1 mo. USD LIBOR + 0.400%(5) | | | 486,873 | |
| | 1,735,461 | | | 2.50%, 12/01/2049 | | | 1,716,342 | |
| | 650,000 | | | 2.78%, 06/01/2026 | | | 668,360 | |
| | 1,143,411 | | | 3.00%, 03/01/2049 | | | 1,159,754 | |
| | 1,580,232 | | | 3.00%, 03/25/2053 | | | 1,620,115 | |
| | 325,000 | | | 3.07%, 02/01/2025 | | | 338,396 | |
| | 1,590,602 | | | 3.50%, 12/01/2048 | | | 1,637,699 | |
| | 3,229,204 | | | 3.50%, 06/25/2059 | | | 3,390,642 | |
| | 38,086 | | | 4.50%, 11/01/2023 | | | 40,053 | |
| | 117,783 | | | 4.50%, 03/01/2038 | | | 127,821 | |
| | 60,213 | | | 4.50%, 11/01/2039 | | | 65,322 | |
| | 41,747 | | | 4.50%, 04/01/2040 | | | 45,333 | |
| | 90,869 | | | 4.50%, 08/01/2040 | | | 97,775 | |
| | 35,635 | | | 4.50%, 02/01/2041 | | | 38,697 | |
| | 507,839 | | | 4.50%, 04/01/2041 | | | 551,315 | |
| | 307,031 | | | 4.50%, 06/01/2041 | | | 333,443 | |
| | 418,505 | | | 4.50%, 07/01/2041 | | | 454,536 | |
| | 150,500 | | | 4.50%, 09/01/2041 | | | 163,462 | |
| | 58,963 | | | 4.50%, 07/01/2044 | | | 62,737 | |
| | | | | | | | |
| | | | | | | 12,998,675 | |
| | | | | | | | |
| | | | GNMA - 0.1% | |
| | 75,056 | | | 5.00%, 07/15/2037 | | | 83,553 | |
| | 7,811 | | | 6.00%, 06/15/2024 | | | 8,599 | |
| | 4,239 | | | 6.00%, 07/15/2026 | | | 4,667 | |
| | 2,925 | | | 6.00%, 01/15/2028 | | | 3,221 | |
| | 1,698 | | | 6.00%, 03/15/2028 | | | 1,880 | |
| | 42,683 | | | 6.00%, 04/15/2028 | | | 47,065 | |
| | 62,019 | | | 6.00%, 05/15/2028 | | | 68,281 | |
| | 17,491 | | | 6.00%, 06/15/2028 | | | 19,257 | |
| | 38,201 | | | 6.00%, 07/15/2028 | | | 42,059 | |
| | 15,381 | | | 6.00%, 08/15/2028 | | | 16,935 | |
| | 41,026 | | | 6.00%, 09/15/2028 | | | 45,169 | |
| | 87,930 | | | 6.00%, 10/15/2028 | | | 96,809 | |
| | 80,598 | | | 6.00%, 11/15/2028 | | | 88,736 | |
| | 82,752 | | | 6.00%, 12/15/2028 | | | 91,116 | |
| | 2,097 | | | 6.00%, 12/15/2031 | | | 2,357 | |
| | 20,638 | | | 6.00%, 09/15/2032 | | | 23,575 | |
| | 7,643 | | | 6.00%, 11/15/2032 | | | 8,568 | |
| | 1,882 | | | 6.00%, 04/15/2033 | | | 2,072 | |
| | 78,019 | | | 6.00%, 06/15/2033 | | | 87,283 | |
| | 28,222 | | | 6.00%, 10/15/2033 | | | 32,232 | |
| | 3,631 | | | 6.00%, 11/15/2033 | | | 4,146 | |
| | 58,653 | | | 6.00%, 10/15/2034 | | | 65,307 | |
| | 55,889 | | | 6.00%, 01/15/2035 | | | 61,652 | |
| | 6,984 | | | 6.00%, 05/15/2035 | | | 7,689 | |
| | 11,012 | | | 6.00%, 06/15/2035 | | | 12,223 | |
| | 471 | | | 6.50%, 03/15/2026 | | | 520 | |
| | 3,946 | | | 6.50%, 01/15/2028 | | | 4,352 | |
| | 40,636 | | | 6.50%, 03/15/2028 | | | 44,827 | |
| | 93,434 | | | 6.50%, 04/15/2028 | | | 103,070 | |
| | 27,933 | | | 6.50%, 05/15/2028 | | | 30,814 | |
| | 140,937 | | | 6.50%, 06/15/2028 | | | 155,471 | |
| | 6,194 | | | 6.50%, 10/15/2028 | | | 6,832 | |
| | 2,374 | | | 6.50%, 02/15/2035 | | | 2,688 | |
| | 13,145 | | | 7.00%, 11/15/2031 | | | 14,521 | |
| | 6,572 | | | 7.00%, 03/15/2032 | | | 7,269 | |
| | 990,840 | | | 7.00%, 11/15/2032 | | | 1,166,090 | |
| | 130,870 | | | 7.00%, 01/15/2033 | | | 150,916 | |
| | 140,081 | | | 7.00%, 05/15/2033 | | | 160,759 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 2.3% - (continued) | |
| | | | GNMA - 0.1% - (continued) | |
| $ | 23,986 | | | 7.00%, 07/15/2033 | | $ | 27,221 | |
| | 166,147 | | | 7.00%, 11/15/2033 | | | 190,873 | |
| | 65,186 | | | 7.50%, 09/16/2035 | | | 74,622 | |
| | 115 | | | 8.00%, 09/15/2026 | | | 125 | |
| | 87 | | | 8.00%, 11/15/2026 | | | 91 | |
| | 7,316 | | | 8.00%, 12/15/2026 | | | 8,246 | |
| | 115 | | | 8.00%, 09/15/2027 | | | 119 | |
| | 4,730 | | | 8.00%, 07/15/2029 | | | 5,436 | |
| | 1,846 | | | 8.00%, 11/15/2029 | | | 1,850 | |
| | 9,780 | | | 8.00%, 12/15/2029 | | | 10,116 | |
| | 3,857 | | | 8.00%, 01/15/2030 | | | 3,960 | |
| | 3,599 | | | 8.00%, 02/15/2030 | | | 3,621 | |
| | 825 | | | 8.00%, 03/15/2030 | | | 834 | |
| | 20,622 | | | 8.00%, 04/15/2030 | | | 20,807 | |
| | 4,316 | | | 8.00%, 05/15/2030 | | | 4,463 | |
| | 35,648 | | | 8.00%, 06/15/2030 | | | 37,741 | |
| | 2,054 | | | 8.00%, 07/15/2030 | | | 2,133 | |
| | 59,139 | | | 8.00%, 08/15/2030 | | | 60,663 | |
| | 14,684 | | | 8.00%, 09/15/2030 | | | 15,060 | |
| | 7,104 | | | 8.00%, 11/15/2030 | | | 7,189 | |
| | 119,586 | | | 8.00%, 12/15/2030 | | | 133,103 | |
| | | | | | | | |
| | | | | | | 3,380,853 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $48,381,097) | | $ | 49,142,223 | |
| | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 7.1% | |
| | | | U.S. Treasury Securities - 7.1% | |
| | | | U.S. Treasury Bonds - 4.5% | |
| $ | 1,325,000 | | | 2.25%, 08/15/2049 | | $ | 1,288,977 | |
| | 19,250,000 | | | 2.50%, 02/15/2045(11) | | | 19,687,637 | |
| | 2,280,000 | | | 2.50%, 05/15/2046 | | | 2,333,527 | |
| | 960,000 | | | 2.75%, 08/15/2047 | | | 1,032,112 | |
| | 6,214,000 | | | 2.75%, 11/15/2047 | | | 6,680,778 | |
| | 10,070,800 | | | 2.88%, 05/15/2043 | | | 10,994,874 | |
| | 5,410,000 | | | 3.00%, 08/15/2048 | | | 6,108,439 | |
| | 3,485,000 | | | 3.00%, 02/15/2049 | | | 3,941,862 | |
| | 7,895,000 | | | 3.13%, 08/15/2044 | | | 9,000,608 | |
| | 4,630,000 | | | 3.38%, 05/15/2044 | | | 5,490,891 | |
| | 21,300,000 | | | 4.38%, 02/15/2038 | | | 28,372,266 | |
| | | | | | | | |
| | | | | | | 94,931,971 | |
| | | | | | | | |
| | | | U.S. Treasury Notes - 2.6% | |
| | 9,820,000 | | | 1.63%, 10/31/2026 | | | 9,697,633 | |
| | 5,000,000 | | | 1.63%, 08/15/2029 | | | 4,874,805 | |
| | 2,725,000 | | | 1.75%, 11/15/2029 | | | 2,686,041 | |
| | 17,305,000 | | | 2.13%, 03/31/2024 | | | 17,626,765 | |
| | 4,750,000 | | | 2.38%, 05/15/2029 | | | 4,940,557 | |
| | 13,350,000 | | | 2.63%, 12/31/2023 | | | 13,848,017 | |
| | | | | | | | |
| | | | | | | 53,673,818 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $132,900,226) | | $ | 148,605,789 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,588,773,412) | | $ | 2,072,238,180 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.0% | |
| | | | Other Investment Pools & Funds - 0.9% | |
| | 19,612,070 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(12) | | $ | 19,612,070 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.1% | |
| | 64,824 | | | Citibank NA DDCA, 1.54%, 1/2/2020(12) | | | 64,824 | |
| | 314,336 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(12) | | | 314,336 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| SHORT-TERM INVESTMENTS - 1.0% - (continued) | |
| | | | Securities Lending Collateral - 0.1% - (continued) | |
| | 289,680 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(12) | | $ | 289,680 | |
| | 144,840 | | | JPMorgan Prime Money Market Fund, 1.69%(12) | | | 144,840 | |
| | 386,240 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(12) | | | 386,240 | |
| | 96,560 | | | State Street Institutional Liquid Reserves Fund, 1.70%(12) | | | 96,560 | |
| | | | | | | | |
| | | | | | | 1,296,480 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $20,908,550) | | $ | 20,908,550 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,609,681,962) | | | 99.8 | % | | $ | 2,093,146,730 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 3,699,571 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,096,846,301 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Investment valued using significant unobservable inputs. |
| (2) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At December 31, 2019, the aggregate fair value of these securities was $9,029,581, 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. |
| (3) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $9,029,581 or 0.4% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 08/2011 | | | Allstar Co. | | | 11,702,200 | | | $ | 5,090,681 | | | $ | 4,680,880 | |
| | 11/2013 | | | Tory Burch LLC | | | 67,006 | | | | 5,251,707 | | | | 4,348,701 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 10,342,388 | | | $ | 9,029,581 | |
| | | | | | | | | | | | | | | | |
| (4) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $153,721,940, representing 7.3% of net assets. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| (5) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2019. Base lending rates may be subject to a floor or cap. |
| (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) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2019. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (8) | Security is a“step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (9) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (10) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (11) | All, or a portion of the security, was pledged as collateral in connection with futures contracts. As of December 31, 2019, the market value of securities pledged was $567,618. |
| (12) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2019 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
U.S. Treasury2-Year Note Future | | | 43 | | | | 03/31/2020 | | | $ | 9,266,500 | | | $ | (3,453 | ) |
U.S. Treasury5-Year Note Future | | | 240 | | | | 03/31/2020 | | | | 28,466,250 | | | | (103,648 | ) |
U.S. Treasury10-Year Note Future | | | 54 | | | | 03/20/2020 | | | | 6,934,781 | | | | (41,068 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | (148,169 | ) |
| | | | | | | | | | | | | | | | |
| † | 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, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 14,161,946 | | | $ | 14,161,946 | | | $ | — | | | $ | — | |
Banks | | | 146,931,757 | | | | 146,931,757 | | | | — | | | | — | |
Capital Goods | | | 134,402,324 | | | | 134,402,324 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 24,634,030 | | | | 24,634,030 | | | | — | | | | — | |
Consumer Services | | | 16,424,218 | | | | 16,424,218 | | | | — | | | | — | |
Diversified Financials | | | 7,403,100 | | | | 7,403,100 | | | | — | | | | — | |
Energy | | | 64,628,737 | | | | 64,628,737 | | | | — | | | | — | |
Food & Staples Retailing | | | 14,389,215 | | | | 14,389,215 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 17,337,532 | | | | 17,337,532 | | | | — | | | | — | |
Health Care Equipment & Services | | | 108,949,730 | | | | 93,205,512 | | | | 15,744,218 | | | | — | |
Household & Personal Products | | | 14,590,818 | | | | 14,590,818 | | | | — | | | | — | |
Insurance | | | 77,472,993 | | | | 77,472,993 | | | | — | | | | — | |
Materials | | | 70,959,478 | | | | 70,959,478 | | | | — | | | | — | |
Media & Entertainment | | | 141,208,907 | | | | 141,208,907 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 141,745,151 | | | | 104,484,105 | | | | 37,261,046 | | | | — | |
Real Estate | | | 18,461,020 | | | | 18,461,020 | | | | — | | | | — | |
Retailing | | | 57,987,772 | | | | 48,958,191 | | | | — | | | | 9,029,581 | |
Semiconductors & Semiconductor Equipment | | | 88,050,313 | | | | 88,050,313 | | | | — | | | | — | |
Software & Services | | | 134,674,818 | | | | 134,674,818 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 60,926,292 | | | | 60,926,292 | | | | — | | | | — | |
Telecommunication Services | | | 25,496,964 | | | | 25,496,964 | | | | — | | | | — | |
Transportation | | | 21,714,687 | | | | 21,714,687 | | | | — | | | | — | |
Utilities | | | 17,803,807 | | | | 17,803,807 | | | | — | | | | — | |
Asset & Commercial Mortgage Backed Securities | | | 57,681,056 | | | | — | | | | 57,681,056 | | | | — | |
Corporate Bonds | | | 368,019,890 | | | | — | | | | 368,019,890 | | | | — | |
Foreign Government Obligations | | | 9,833,565 | | | | — | | | | 9,833,565 | | | | — | |
Municipal Bonds | | | 18,600,048 | | | | — | | | | 18,600,048 | | | | — | |
U.S. Government Agencies | | | 49,142,223 | | | | — | | | | 49,142,223 | | | | — | |
U.S. Government Securities | | | 148,605,789 | | | | — | | | | 148,605,789 | | | | — | |
Short-Term Investments | | | 20,908,550 | | | | 20,908,550 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,093,146,730 | | | $ | 1,379,229,314 | | | $ | 704,887,835 | | | $ | 9,029,581 | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Futures Contracts(2) | | $ | (148,169 | ) | | $ | (148,169 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (148,169 | ) | | $ | (148,169 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
| (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, 2019 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.8% | |
| | | | Automobiles & Components - 0.4% | |
| | 13,873 | | | Ferrari N.V. | | $ | 2,303,412 | |
| | 418,744 | | | General Motors Co. | | | 15,326,031 | |
| | | | | | | | |
| | | | | | | 17,629,443 | |
| | | | | | | | |
| | | | Banks - 3.3% | |
| | 240,952 | | | Atlantic Union Bankshares Corp. | | | 9,047,748 | |
| | 1,739,894 | | | Banco Santander S.A. | | | 7,294,936 | |
| | 749,878 | | | Bank of America Corp. | | | 26,410,703 | |
| | 368,529 | | | Bank OZK | | | 11,241,977 | |
| | 335,303 | | | Citigroup, Inc. | | | 26,787,357 | |
| | 59,839 | | | HDFC Bank Ltd. ADR | | | 3,791,997 | |
| | 158,588 | | | HDFC Bank Ltd. | | | 2,829,772 | |
| | 1,539,433 | | | People’s United Financial, Inc. | | | 26,016,418 | |
| | 147,375 | | | PNC Financial Services Group, Inc. | | | 23,525,471 | |
| | 464,522 | | | UniCredit S.p.A. | | | 6,789,900 | |
| | | | | | | | |
| | | | | | | 143,736,279 | |
| | | | | | | | |
| | | | Capital Goods - 5.9% | |
| | 244,966 | | | A.O. Smith Corp. | | | 11,670,180 | |
| | 42,471 | | | Airbus SE | | | 6,233,261 | |
| | 45,289 | | | Deere & Co. | | | 7,846,772 | |
| | 78,075 | | | Dover Corp. | | | 8,998,925 | |
| | 207,256 | | | Fortune Brands Home & Security, Inc. | | | 13,542,107 | |
| | 199,922 | | | General Dynamics Corp. | | | 35,256,245 | |
| | 350,600 | | | HF Global, Inc.*(1)(2)(3) | | | 5,826,972 | |
| | 73,006 | | | Honeywell International, Inc. | | | 12,922,062 | |
| | 266,837 | | | Ingersoll-Rand plc | | | 35,467,974 | |
| | 157,911 | | | L3Harris Technologies, Inc. | | | 31,245,850 | |
| | 40,359 | | | Lockheed Martin Corp. | | | 15,714,987 | |
| | 166,151 | | | Pentair plc | | | 7,621,346 | |
| | 44,283 | | | Raytheon Co. | | | 9,730,746 | |
| | 27,962 | | | Rockwell Automation, Inc. | | | 5,667,059 | |
| | 21,088 | | | Safran S.A. | | | 3,257,237 | |
| | 970,130 | | | Sanwa Holdings Corp. | | | 10,871,021 | |
| | 51,210 | | | United Technologies Corp. | | | 7,669,210 | |
| | 64,904 | | | Vinci S.A. | | | 7,228,589 | |
| | 280,586 | | | Wabtec Corp. | | | 21,829,591 | |
| | | | | | | | |
| | | | | | | 258,600,134 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 3.1% | |
| | 221,852 | | | Copart, Inc.* | | | 20,175,221 | |
| | 26,041 | | | CoStar Group, Inc.* | | | 15,580,330 | |
| | 47,376 | | | Equifax, Inc. | | | 6,638,325 | |
| | 247,483 | | | Herman Miller, Inc. | | | 10,307,667 | |
| | 78,831 | | | Intertek Group plc | | | 6,108,468 | |
| | 134,810 | | | Recruit Holdings Co., Ltd. | | | 5,049,353 | |
| | 262,576 | | | Republic Services, Inc. | | | 23,534,687 | |
| | 571,364 | | | Steelcase, Inc. Class A | | | 11,690,107 | |
| | 256,186 | | | TransUnion | | | 21,932,083 | |
| | 167,977 | | | Waste Connections, Inc. | | | 15,250,632 | |
| | | | | | | | |
| | | | | | | 136,266,873 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.2% | |
| | 223,322 | | | Carter’s, Inc. | | | 24,418,028 | |
| | 158,279 | | | Lennar Corp. Class A | | | 8,830,385 | |
| | 353,730 | | | NIKE, Inc. Class B | | | 35,836,386 | |
| | 228,438 | | | Peloton Interactive, Inc. Class A* | | | 6,487,639 | |
| | 196,208 | | | Steven Madden Ltd. | | | 8,438,906 | |
| | 302,392 | | | Under Armour, Inc. Class A*(4) | | | 6,531,667 | |
| | 219,776 | | | Under Armour, Inc. Class C* | | | 4,215,304 | |
| | | | | | | | |
| | | | | | | 94,758,315 | |
| | | | | | | | |
| | | | Consumer Services - 2.5% | |
| | 11,814 | | | Domino’s Pizza, Inc. | | | 3,470,717 | |
| | 514,432 | | | DraftKings, Inc.*(1)(2)(3) | | | 1,760,386 | |
| | 96,081 | | | Grand Canyon Education, Inc.* | | | 9,203,599 | |
| | 62,700 | | | Marriott International, Inc. Class A | | | 9,494,661 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.8% - (continued) | |
| | | | Consumer Services - 2.5% - (continued) | |
| | 102,451 | | | Marriott Vacations Worldwide Corp. | | $ | 13,191,591 | |
| | 210,908 | | | McDonald’s Corp. | | | 41,677,530 | |
| | 19,533 | | | New Oriental Education & Technology Group, Inc. ADR* | | | 2,368,376 | |
| | 147,355 | | | Norwegian Cruise Line Holdings Ltd.* | | | 8,607,005 | |
| | 135,757 | | | Planet Fitness, Inc. Class A* | | | 10,138,333 | |
| | 34,659 | | | Vail Resorts, Inc. | | | 8,312,268 | |
| | | | | | | | |
| | | | | | | 108,224,466 | |
| | | | | | | | |
| | | | Diversified Financials - 4.3% | |
| | 345,818 | | | American Express Co. | | | 43,050,883 | |
| | 79,499 | | | Ameriprise Financial, Inc. | | | 13,242,943 | |
| | 382,135 | | | AXA Equitable Holdings, Inc. | | | 9,469,305 | |
| | 330,200 | | | B3 S.A. - Brasil Bolsa Balcao | | | 3,527,157 | |
| | 304,460 | | | Blackstone Group, Inc. Class A | | | 17,031,492 | |
| | 37,770 | | | Intercontinental Exchange, Inc. | | | 3,495,614 | |
| | 96,656 | | | London Stock Exchange Group plc | | | 9,933,528 | |
| | 471,954 | | | Morgan Stanley | | | 24,126,288 | |
| | 295,410 | | | Raymond James Financial, Inc. | | | 26,427,379 | |
| | 1,392,829 | | | SLM Corp. | | | 12,410,106 | |
| | 213,456 | | | TD Ameritrade Holding Corp. | | | 10,608,763 | |
| | 195,018 | | | Voya Financial, Inc. | | | 11,892,198 | |
| | | | | | | | |
| | | | | �� | | 185,215,656 | |
| | | | | | | | |
| | | | Energy - 2.9% | |
| | 662,599 | | | Canadian Natural Resources Ltd. | | | 21,435,078 | |
| | 194,736 | | | Chevron Corp. | | | 23,467,635 | |
| | 131,287 | | | Cimarex Energy Co. | | | 6,891,255 | |
| | 194,798 | | | Concho Resources, Inc. | | | 17,058,461 | |
| | 116,946 | | | Diamondback Energy, Inc. | | | 10,859,605 | |
| | 226,048 | | | Enbridge, Inc. | | | 8,989,929 | |
| | 361,458 | | | Halliburton Co. | | | 8,844,877 | |
| | 109,764 | | | Phillips 66 | | | 12,228,807 | |
| | 201,718 | | | Schlumberger Ltd. | | | 8,109,064 | |
| | 344,564 | | | Tenaris S.A. ADR | | | 7,800,929 | |
| | | | | | | | |
| | | | | | | 125,685,640 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.6% | |
| | 768,447 | | | Kroger Co. | | | 22,277,278 | |
| | 47,633 | | | Walmart, Inc. | | | 5,660,706 | |
| | | | | | | | |
| | | | | | | 27,937,984 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 5.0% | |
| | 626,096 | | | Altria Group, Inc. | | | 31,248,451 | |
| | 240,314 | | | Archer-Daniels-Midland Co. | | | 11,138,554 | |
| | 755,389 | | | Coca-Cola Co. | | | 41,810,781 | |
| | 709,257 | | | Diageo plc | | | 29,885,718 | |
| | 75,658 | | | Hershey Co. | | | 11,120,213 | |
| | 95,691 | | | Lamb Weston Holdings, Inc. | | | 8,232,297 | |
| | 299,253 | | | Monster Beverage Corp.* | | | 19,017,528 | |
| | 246,141 | | | PepsiCo., Inc. | | | 33,640,090 | |
| | 396,235 | | | Philip Morris International, Inc. | | | 33,715,636 | |
| | | | | | | | |
| | | | | | | 219,809,268 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.0% | |
| | 51,530 | | | ABIOMED, Inc.* | | | 8,790,503 | |
| | 281,625 | | | Baxter International, Inc. | | | 23,549,482 | |
| | 29,377 | | | Becton Dickinson and Co. | | | 7,989,663 | |
| | 321,334 | | | Centene Corp.* | | | 20,202,269 | |
| | 494,598 | | | CVS Health Corp. | | | 36,743,685 | |
| | 181,978 | | | Danaher Corp. | | | 27,929,983 | |
| | 82,541 | | | DexCom, Inc.* | | | 18,055,018 | |
| | 85,963 | | | Encompass Health Corp. | | | 5,954,657 | |
| | 124,870 | | | Haemonetics Corp.* | | | 14,347,563 | |
| | 42,393 | | | Humana, Inc. | | | 15,537,882 | |
| | 184,344 | | | Insulet Corp.* | | | 31,559,693 | |
| | 38,827 | | | Intuitive Surgical, Inc.* | | | 22,952,581 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.8% - (continued) | |
| | | | Health Care Equipment & Services - 10.0% - (continued) | |
| | 329,951 | | | Koninklijke Philips N.V. ADR(4) | | $ | 16,101,609 | |
| | 72,382 | | | Koninklijke Philips N.V. | | | 3,538,300 | |
| | 75,636 | | | McKesson Corp. | | | 10,461,972 | |
| | 369,173 | | | Medtronic plc | | | 41,882,677 | |
| | 108,970 | | | Stryker Corp. | | | 22,877,162 | |
| | 54,371 | | | Teleflex, Inc. | | | 20,467,419 | |
| | 180,634 | | | UnitedHealth Group, Inc. | | | 53,102,783 | |
| | 112,247 | | | Veeva Systems, Inc. Class A* | | | 15,788,663 | |
| | 50,722 | | | WellCare Health Plans, Inc.* | | | 16,748,912 | |
| | | | | | | | |
| | | | | | | 434,582,476 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.9% | |
| | 461,737 | | | Colgate-Palmolive Co. | | | 31,785,975 | |
| | 97,205 | | | Shiseido Co., Ltd. | | | 6,902,524 | |
| | | | | | | | |
| | | | | | | 38,688,499 | |
| | | | | | | | |
| | | | Insurance - 4.0% | |
| | 346,079 | | | Athene Holding Ltd. Class A* | | | 16,276,096 | |
| | 230,205 | | | Chubb Ltd. | | | 35,833,710 | |
| | 699,529 | | | CNO Financial Group, Inc. | | | 12,682,461 | |
| | 206,863 | | | Fidelity National Financial, Inc. | | | 9,381,237 | |
| | 212,352 | | | Marsh & McLennan Cos., Inc. | | | 23,658,136 | |
| | 582,507 | | | MetLife, Inc. | | | 29,690,382 | |
| | 528,270 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 6,251,262 | |
| | 1,463,568 | | | Unum Group | | | 42,677,643 | |
| | | | | | | | |
| | | | | | | 176,450,927 | |
| | | | | | | | |
| | | | Materials - 2.5% | |
| | 183,257 | | | Cabot Corp. | | | 8,708,373 | |
| | 122,941 | | | Celanese Corp. | | | 15,136,496 | |
| | 259,788 | | | CRH plc | | | 10,477,738 | |
| | 190,011 | | | FMC Corp. | | | 18,966,898 | |
| | 130,236 | | | Linde plc | | | 27,727,245 | |
| | 138,094 | | | Nutrien Ltd. | | | 6,611,454 | |
| | 174,537 | | | Reliance Steel & Aluminum Co. | | | 20,902,551 | |
| | | | | | | | |
| | | | | | | 108,530,755 | |
| | | | | | | | |
| | | | Media & Entertainment - 5.8% | |
| | 156,717 | | | Activision Blizzard, Inc. | | | 9,312,124 | |
| | 7,400 | | | Alphabet, Inc. Class A* | | | 9,911,486 | |
| | 37,324 | | | Charter Communications, Inc. Class A* | | | 18,105,126 | |
| | 265,600 | | | Cinemark Holdings, Inc. | | | 8,990,560 | |
| | 805,181 | | | Comcast Corp. Class A | | | 36,208,990 | |
| | 125,060 | | | Electronic Arts, Inc.* | | | 13,445,201 | |
| | 102,329 | | | Facebook, Inc. Class A* | | | 21,003,027 | |
| | 1,148,412 | | | Interpublic Group of Cos., Inc. | | | 26,528,317 | |
| | 19,010 | | | Netflix, Inc.* | | | 6,151,066 | |
| | 1,368,874 | | | Pinterest, Inc. Class A* | | | 25,515,811 | |
| | 190,475 | | | Roku, Inc.* | | | 25,504,602 | |
| | 148,441 | | | Spotify Technology S.A.* | | | 22,199,352 | |
| | 163,115 | | | Tencent Holdings Ltd. | | | 7,858,248 | |
| | 148,198 | | | Walt Disney Co. | | | 21,433,877 | |
| | | | | | | | |
| | | | | | | 252,167,787 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.8% | |
| | 208,111 | | | Agilent Technologies, Inc. | | | 17,753,949 | |
| | 227,427 | | | Alnylam Pharmaceuticals, Inc.* | | | 26,192,768 | |
| | 383,949 | | | AstraZeneca plc ADR | | | 19,143,697 | |
| | 203,246 | | | Bristol-Myers Squibb Co. | | | 13,046,361 | |
| | 415,528 | | | Elanco Animal Health, Inc.* | | | 12,237,300 | |
| | 85,699 | | | Eli Lilly & Co. | | | 11,263,420 | |
| | 100,610 | | | Exact Sciences Corp.* | | | 9,304,413 | |
| | 7,239 | | | Galapagos N.V. ADR*(4) | | | 1,497,242 | |
| | 45,053 | | | Galapagos N.V.* | | | 9,382,175 | |
| | 156,722 | | | Gilead Sciences, Inc. | | | 10,183,796 | |
| | 329,586 | | | Ionis Pharmaceuticals, Inc.* | | | 19,910,290 | |
| | 425,028 | | | Johnson & Johnson | | | 61,998,834 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.8% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.8% - (continued) | |
| | 280,535 | | | Merck & Co., Inc. | | $ | 25,514,658 | |
| | 23,608 | | | Mettler-Toledo International, Inc.* | | | 18,727,754 | |
| | 764,267 | | | Pfizer, Inc. | | | 29,943,981 | |
| | 23,008 | | | Regeneron Pharmaceuticals, Inc.* | | | 8,639,044 | |
| | 153,239 | | | Seattle Genetics, Inc.* | | | 17,509,088 | |
| | 83,261 | | | Thermo Fisher Scientific, Inc. | | | 27,049,001 | |
| | | | | | | | |
| | | | | | | 339,297,771 | |
| | | | | | | | |
| | | | Real Estate - 4.9% | |
| | 264,017 | | | Acadia Realty Trust REIT | | | 6,845,961 | |
| | 88,782 | | | Alexandria Real Estate Equities, Inc. REIT | | | 14,345,395 | |
| | 110,635 | | | American Tower Corp. REIT | | | 25,426,136 | |
| | 461,030 | | | Americold Realty Trust REIT | | | 16,163,712 | |
| | 82,157 | | | AvalonBay Communities, Inc. REIT | | | 17,228,323 | |
| | 149,785 | | | Boston Properties, Inc. REIT | | | 20,649,360 | |
| | 435,382 | | | Columbia Property Trust, Inc. REIT | | | 9,103,837 | |
| | 54,097 | | | Equinix, Inc. REIT | | | 31,576,419 | |
| | 880,825 | | | Host Hotels & Resorts, Inc. REIT | | | 16,339,304 | |
| | 63,666 | | | Jones Lang LaSalle, Inc. REIT | | | 11,083,614 | |
| | 207,485 | | | Mitsui Fudosan Co., Ltd. REIT | | | 5,070,916 | |
| | 131,092 | | | Public Storage REIT | | | 27,917,352 | |
| | 69,050 | | | Simon Property Group, Inc. REIT | | | 10,285,688 | |
| | | | | | | | |
| | | | | | | 212,036,017 | |
| | | | | | | | |
| | | | Retailing - 6.3% | |
| | 133,376 | | | Alibaba Group Holding Ltd. ADR* | | | 28,289,050 | |
| | 8,451,700 | | | Allstar Co.*(1)(2)(3) | | | 3,380,680 | |
| | 35,983 | | | Amazon.com, Inc.* | | | 66,490,827 | |
| | 42,194 | | | Burlington Stores, Inc.* | | | 9,621,498 | |
| | 136,000 | | | Dollar Tree, Inc.* | | | 12,790,800 | |
| | 164,859 | | | Expedia Group, Inc. | | | 17,827,852 | |
| | 50,134 | | | Five Below, Inc.* | | | 6,410,133 | |
| | 215,288 | | | Floor & Decor Holdings, Inc. Class A* | | | 10,938,783 | |
| | 65,592 | | | Genuine Parts Co. | | | 6,967,838 | |
| | 100,079 | | | Home Depot, Inc. | | | 21,855,252 | |
| | 373,990 | | | Kohl’s Corp. | | | 19,054,791 | |
| | 134,587 | | | Lowe’s Cos., Inc. | | | 16,118,139 | |
| | 74,451 | | | Ross Stores, Inc. | | | 8,667,585 | |
| | 520,650 | | | TJX Cos., Inc. | | | 31,790,889 | |
| | 115,140 | | | Tory Burch LLC*(1)(2)(3) | | | 7,472,566 | |
| | 82,495 | | | Wayfair, Inc. Class A* | | | 7,455,073 | |
| | | | | | | | |
| | | | | | | 275,131,756 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.0% | |
| | 643,977 | | | Advanced Micro Devices, Inc.* | | | 29,532,785 | |
| | 57,599 | | | Broadcom, Inc. | | | 18,202,436 | |
| | 270,936 | | | Infineon Technologies AG | | | 6,121,622 | |
| | 484,819 | | | Intel Corp. | | | 29,016,417 | |
| | 89,206 | | | KLA Corp. | | | 15,893,833 | |
| | 660,630 | | | Marvell Technology Group Ltd. | | | 17,546,333 | |
| | 200,191 | | | Micron Technology, Inc.* | | | 10,766,272 | |
| | 29,651 | | | Texas Instruments, Inc. | | | 3,803,927 | |
| | | | | | | | |
| | | | | | | 130,883,625 | |
| | | | | | | | |
| | | | Software & Services - 10.2% | |
| | 93,333 | | | Accenture plc Class A | | | 19,653,130 | |
| | 17,065 | | | Adobe, Inc.* | | | 5,628,208 | |
| | 82,137 | | | Alteryx, Inc. Class A* | | | 8,219,450 | |
| | 201,809 | | | Amdocs Ltd. | | | 14,568,592 | |
| | 40,487 | | | Capgemini SE | | | 4,951,756 | |
| | 26,050 | | | DocuSign, Inc.* | | | 1,930,566 | |
| | 32,335 | | | Fair Isaac Corp.* | | | 12,115,278 | |
| | 51,291 | | | Fidelity National Information Services, Inc. | | | 7,134,065 | |
| | 68,464 | | | FleetCor Technologies, Inc.* | | | 19,698,462 | |
| | 908,192 | | | Genpact Ltd. | | | 38,298,457 | |
| | 146,515 | | | Global Payments, Inc. | | | 26,747,778 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.8% - (continued) | |
| | | | Software & Services - 10.2% - (continued) | |
| | 486,624 | | | GoDaddy, Inc. Class A* | | $ | 33,051,502 | |
| | 188,868 | | | Guidewire Software, Inc.* | | | 20,732,040 | |
| | 21,737 | | | Intuit, Inc. | | | 5,693,572 | |
| | 212,044 | | | Microsoft Corp. | | | 33,439,339 | |
| | 113,927 | | | Pagseguro Digital Ltd. Class A* | | | 3,891,746 | |
| | 169,904 | | | PayPal Holdings, Inc.* | | | 18,378,516 | |
| | 141,724 | | | ServiceNow, Inc.* | | | 40,011,520 | |
| | 992,978 | | | Slack Technologies, Inc. Class A*(4) | | | 22,322,145 | |
| | 171,679 | | | Splunk, Inc.* | | | 25,712,364 | |
| | 103,304 | | | VeriSign, Inc.* | | | 19,904,615 | |
| | 83,701 | | | Visa, Inc. Class A | | | 15,727,418 | |
| | 68,464 | | | WEX, Inc.* | | | 14,340,469 | |
| | 148,616 | | | Workday, Inc. Class A* | | | 24,439,901 | |
| | 120,834 | | | Zoom Video Communications, Inc. Class A*(4) | | | 8,221,545 | |
| | | | | | | | |
| | | | | | | 444,812,434 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.5% | |
| | 109,433 | | | Apple, Inc. | | | 32,135,001 | |
| | 134,710 | | | CDW Corp. | | | 19,241,976 | |
| | 65,257 | | | Coherent, Inc.* | | | 10,855,502 | |
| | 14,670 | | | Keyence Corp. | | | 5,151,200 | |
| | 212,559 | | | Lumentum Holdings, Inc.* | | | 16,855,929 | |
| | 38,914 | | | Motorola Solutions, Inc. | | | 6,270,602 | |
| | 364,072 | | | Samsung Electronics Co., Ltd. | | | 17,543,480 | |
| | 133,170 | | | TE Connectivity Ltd. | | | 12,763,013 | |
| | 319,095 | | | Western Digital Corp. | | | 20,252,960 | |
| | 42,800 | | | Zebra Technologies Corp. Class A* | | | 10,932,832 | |
| | | | | | | | |
| | | | | | | 152,002,495 | |
| | | | | | | | |
| | | | Telecommunication Services - 2.2% | |
| | 732,333 | | | AT&T, Inc. | | | 28,619,574 | |
| | 106,817 | | | Cellnex Telecom S.A.*(5) | | | 4,607,616 | |
| | 32,370,504 | | | China Tower Corp. Ltd. Class H(5) | | | 7,151,616 | |
| | 130,800 | | | SoftBank Group Corp. | | | 5,678,946 | |
| | 293,200 | | | T-Mobile US, Inc.* | | | 22,992,744 | |
| | 407,895 | | | Verizon Communications, Inc. | | | 25,044,753 | |
| | | | | | | | |
| | | | | | | 94,095,249 | |
| | | | | | | | |
| | | | Transportation - 3.2% | |
| | 373,013 | | | Canadian National Railway Co. | | | 33,743,666 | |
| | 229,980 | | | Delta Air Lines, Inc. | | | 13,449,231 | |
| | 59,709 | | | J.B. Hunt Transport Services, Inc. | | | 6,972,817 | |
| | 299,084 | | | Southwest Airlines Co. | | | 16,144,554 | |
| | 204,138 | | | Spirit Airlines, Inc.* | | | 8,228,803 | |
| | 1,156,419 | | | Uber Technologies, Inc.* | | | 34,391,901 | |
| | 153,242 | | | Union Pacific Corp. | | | 27,704,621 | |
| | | | | | | | |
| | | | | | | 140,635,593 | |
| | | | | | | | |
| | | | Utilities - 3.3% | |
| | 252,651 | | | American Electric Power Co., Inc. | | | 23,878,046 | |
| | 194,268 | | | Dominion Energy, Inc. | | | 16,089,276 | |
| | 409,121 | | | Duke Energy Corp. | | | 37,315,926 | |
| | 465,650 | | | Exelon Corp. | | | 21,228,983 | |
| | 1,203,828 | | | Iberdrola S.A. | | | 12,406,130 | |
| | 464,738 | | | Southern Co. | | | 29,603,811 | |
| | 114,426 | | | UGI Corp. | | | 5,167,478 | |
| | | | | | | | |
| | | | | | | 145,689,650 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $3,531,764,446) | | $ | 4,262,869,092 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.3% | |
| | | | Consumer Services - 0.1% | |
| | 16,619 | | | Airbnb, Inc. Series E*(1)(2)(3) | | $ | 2,171,106 | |
| | | | | | | | |
| | | | Diversified Financials - 0.1% | |
| | 85,350 | | | Social Finance, Inc. Series F*(1)(2)(3) | | | 1,328,046 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.3% - (continued) | |
| | | | Retailing - 0.0% | | | |
| | 40,566 | | | Honest Co., Inc. Series C*(1)(2)(3) | | $ | 1,336,244 | |
| | | | | | | | |
| | | | Software & Services - 0.1% | |
| | 29,504 | | | Magic Leap, Inc. Series C*(1)(2)(3) | | | 738,190 | |
| | 50,200 | | | Nanigans, Inc. Series D*(1)(2)(3) | | | 56,224 | |
| | 20,891 | | | Sharecare, Inc. Series B2*(1)(2)(3) | | | 4,763,984 | |
| | | | | | | | |
| | | | | | | 5,558,398 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $10,438,958) | | $ | 10,393,794 | |
| | | | | | | | |
|
| ESCROWS - 0.0%(6) | |
| | | | Consumer Durables & Apparel - 0.0% | |
| | 127,917 | | | One Kings Lane, Inc.*(1)(2)(3) | | $ | 20,467 | |
| | | | | | | | |
| | |
| | | | Total Escrows
(cost $—) | | $ | 20,467 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $3,542,203,404) | | $ | 4,273,283,353 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.8% | |
| | | | Other Investment Pools & Funds - 2.0% | |
| | 87,207,899 | | | BlackRock Liquidity Funds, FedFund Portfolio, Institutional Class,1.58%(7) | | $ | 87,207,899 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.8% | |
| | 1,845,222 | | | Citibank NA DDCA, 1.54%, 1/2/2020(7) | | | 1,845,222 | |
| | 8,947,604 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(7) | | | 8,947,604 | |
| | 8,245,774 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(7) | | | 8,245,774 | |
| | 4,122,887 | | | JPMorgan Prime Money Market Fund,
1.69%(7) | | | 4,122,887 | |
| | 10,994,365 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class,
1.72%(7) | | | 10,994,365 | |
| | 2,748,591 | | | State Street Institutional Liquid Reserves Fund, 1.70%(7) | | | 2,748,591 | |
| | | | | | | | |
| | | | | | | 36,904,443 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $124,112,342) | | $ | 124,112,342 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $3,666,315,746) | | | 100.9 | % | | $ | 4,397,395,695 | |
| | | | Other Assets and Liabilities | | | (0.9 | )% | | | (39,520,066 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 4,357,875,629 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| (1) | Investment valued using significant unobservable inputs. |
| (2) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At December 31, 2019, the aggregate fair value of these securities was $28,854,865, which represented 0.7% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (3) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $28,854,865 or 0.7% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 06/2015 | | | Airbnb, Inc. Series E Convertible Preferred | | | 16,619 | | | $ | 1,547,136 | | | $ | 2,171,106 | |
| | 08/2011 | | | Allstar Co. | | | 8,451,700 | | | | 3,676,649 | | | | 3,380,680 | |
| | 07/2015 | | | DraftKings, Inc. | | | 514,432 | | | | 1,938,195 | | | | 1,760,386 | |
| | 06/2015 | | | HF Global, Inc. | | | 350,600 | | | | 4,713,607 | | | | 5,826,972 | |
| | 08/2014 | | | Honest Co., Inc. Series C Convertible Preferred | | | 40,566 | | | | 1,097,606 | | | | 1,336,244 | |
| | 12/2015 | | | Magic Leap, Inc. Series C Convertible Preferred | | | 29,504 | | | | 679,566 | | | | 738,190 | |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 03/2015 | | | Nanigans, Inc. Series D Convertible Preferred | | | 50,200 | | | $ | 548,109 | | | $ | 56,224 | |
| | 01/2014 | | | One Kings Lane, Inc. | | | 127,917 | | | | — | | | | 20,467 | |
| | 03/2015 | | | Sharecare, Inc. Series B2 Convertible Preferred | | | 20,891 | | | | 5,220,034 | | | | 4,763,984 | |
| | 09/2015 | | | Social Finance, Inc. Series F Convertible Preferred | | | 85,350 | | | | 1,346,507 | | | | 1,328,046 | |
| | 11/2013 | | | Tory Burch LLC | | | 115,140 | | | | 9,024,247 | | | | 7,472,566 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 29,791,656 | | | $ | 28,854,865 | |
| | | | | | | | | | | | | | | | |
| (4) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (5) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $11,759,232, representing 0.3% of net assets. |
| (6) | Share amount represents shares of the issuer previously held that resulted in receipt of the escrow. |
| (7) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2019 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | | | | | | | | | | | | |
S&P 500(E-Mini) Future | | | 337 | | | | 03/20/2020 | | | $ | 54,444,035 | | | $ | (182,173 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | | | | | | | | | | | | $ | (182,173 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2019 | |
Amount and Description of
Currency to be Purchased | | | Amount and Description of
Currency to be Sold | | | Counterparty | | | Settlement
Date | | | Appreciation | | | (Depreciation) | |
| | 1,035,944,000 | | | | JPY | | | | 9,500,157 | | | | USD | | | | CBK | | | | 03/18/20 | | | $ | 76,704 | | | $ | — | |
| | 9,593,069 | | | | USD | | | | 1,035,944,000 | | | | JPY | | | | RBC | | | | 03/18/20 | | | | 16,208 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | | | | | | | | | | | | | | | | | | | | | | $ | 92,912 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | 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 Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 17,629,443 | | | $ | 15,326,031 | | | $ | 2,303,412 | | | $ | — | |
Banks | | | 143,736,279 | | | | 126,821,671 | | | | 16,914,608 | | | | — | |
Capital Goods | | | 258,600,134 | | | | 225,183,054 | | | | 27,590,108 | | | | 5,826,972 | |
Commercial & Professional Services | | | 136,266,873 | | | | 125,109,052 | | | | 11,157,821 | | | | — | |
Consumer Durables & Apparel | | | 94,758,315 | | | | 94,758,315 | | | | — | | | | — | |
Consumer Services | | | 108,224,466 | | | | 106,464,080 | | | | — | | | | 1,760,386 | |
Diversified Financials | | | 185,215,656 | | | | 175,282,128 | | | | 9,933,528 | | | | — | |
Energy | | | 125,685,640 | | | | 125,685,640 | | | | — | | | | — | |
Food & Staples Retailing | | | 27,937,984 | | | | 27,937,984 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 219,809,268 | | | | 189,923,550 | | | | 29,885,718 | | | | — | |
Health Care Equipment & Services | | | 434,582,476 | | | | 431,044,176 | | | | 3,538,300 | | | | — | |
Household & Personal Products | | | 38,688,499 | | | | 31,785,975 | | | | 6,902,524 | | | | — | |
Insurance | | | 176,450,927 | | | | 170,199,665 | | | | 6,251,262 | | | | — | |
Materials | | | 108,530,755 | | | | 98,053,017 | | | | 10,477,738 | | | | — | |
Media & Entertainment | | | 252,167,787 | | | | 244,309,539 | | | | 7,858,248 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 339,297,771 | | | | 329,915,596 | | | | 9,382,175 | | | | — | |
Real Estate | | | 212,036,017 | | | | 206,965,101 | | | | 5,070,916 | | | | — | |
Retailing | | | 275,131,756 | | | | 264,278,510 | | | | — | | | | 10,853,246 | |
Semiconductors & Semiconductor Equipment | | | 130,883,625 | | | | 124,762,003 | | | | 6,121,622 | | | | — | |
Software & Services | | | 444,812,434 | | | | 439,860,678 | | | | 4,951,756 | | | | — | |
Technology Hardware & Equipment | | | 152,002,495 | | | | 129,307,815 | | | | 22,694,680 | | | | — | |
Telecommunication Services | | | 94,095,249 | | | | 76,657,071 | | | | 17,438,178 | | | | — | |
Transportation | | | 140,635,593 | | | | 140,635,593 | | | | — | | | | — | |
Utilities | | | 145,689,650 | | | | 133,283,520 | | | | 12,406,130 | | | | — | |
Convertible Preferred Stocks | | | 10,393,794 | | | | — | | | | — | | | | 10,393,794 | |
Escrows | | | 20,467 | | | | — | | | | — | | | | 20,467 | |
Short-Term Investments | | | 124,112,342 | | | | 124,112,342 | | | | — | | | | — | |
Foreign Currency Contracts(2) | | | 92,912 | | | | — | | | | 92,912 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 4,397,488,607 | | | $ | 4,157,662,106 | | | $ | 210,971,636 | | | $ | 28,854,865 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts(2) | | $ | (182,173 | ) | | $ | (182,173 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (182,173 | ) | | $ | (182,173 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, investments valued at $36,435,982 were transferred out of Level 3 due to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input. There were no transfers in to Level 3. |
| (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, 2019 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% | |
| | | | Banks - 8.1% | |
| | 488,045 | | | Bank of America Corp. | | $ | 17,188,945 | |
| | 189,853 | | | Fifth Third Bancorp | | | 5,836,081 | |
| | 132,788 | | | JP Morgan Chase & Co. | | | 18,510,647 | |
| | 72,099 | | | PNC Financial Services Group, Inc. | | | 11,509,164 | |
| | | | | | | | |
| | | | | | | 53,044,837 | |
| | | | | | | | |
| | | | Capital Goods - 6.2% | |
| | 78,501 | | | AMETEK, Inc. | | | 7,829,690 | |
| | 132,172 | | | Fortune Brands Home & Security, Inc. | | | 8,636,118 | |
| | 47,949 | | | Illinois Tool Works, Inc. | | | 8,613,079 | |
| | 45,638 | | | Raytheon Co. | | | 10,028,494 | |
| | 33,748 | | | Snap-on, Inc. | | | 5,716,911 | |
| | | | | | | | |
| | | | | | | 40,824,292 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 2.8% | |
| | 36,711 | | | Equifax, Inc. | | | 5,143,945 | |
| | 79,194 | | | IHS Markit Ltd.* | | | 5,967,268 | |
| | 78,504 | | | Republic Services, Inc. | | | 7,036,314 | |
| | | | | | | | |
| | | | | | | 18,147,527 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.7% | |
| | 89,946 | | | NIKE, Inc. Class B | | | 9,112,429 | |
| | 70,483 | | | PVH Corp. | | | 7,411,287 | |
| | 79,378 | | | VF Corp. | | | 7,910,812 | |
| | | | | | | | |
| | | | | | | 24,434,528 | |
| | | | | | | | |
| | | | Consumer Services - 2.9% | |
| | 71,033 | | | Hilton Worldwide Holdings, Inc. | | | 7,878,270 | |
| | 55,894 | | | McDonald’s Corp. | | | 11,045,213 | |
| | | | | | | | |
| | | | | | | 18,923,483 | |
| | | | | | | | |
| | | | Diversified Financials - 2.2% | |
| | 56,228 | | | American Express Co. | | | 6,999,824 | |
| | 72,664 | | | Capital One Financial Corp. | | | 7,477,852 | |
| | | | | | | | |
| | | | | | | 14,477,676 | |
| | | | | | | | |
| | | | Energy - 1.6% | |
| | 107,321 | | | Continental Resources, Inc. | | | 3,681,110 | |
| | 78,257 | | | EOG Resources, Inc. | | | 6,554,807 | |
| | | | | | | | |
| | | | | | | 10,235,917 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 3.0% | |
| | 29,461 | | | Costco Wholesale Corp. | | | 8,659,177 | |
| | 94,028 | | | Walmart, Inc. | | | 11,174,288 | |
| | | | | | | | |
| | | | | | | 19,833,465 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.5% | |
| | 38,892 | | | Constellation Brands, Inc. Class A | | | 7,379,757 | |
| | 130,906 | | | Kellogg Co. | | | 9,053,459 | |
| | 104,129 | | | Monster Beverage Corp.* | | | 6,617,398 | |
| | | | | | | | |
| | | | | | | 23,050,614 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 11.8% | |
| | 99,197 | | | Abbott Laboratories | | | 8,616,251 | |
| | 29,667 | | | Anthem, Inc. | | | 8,960,324 | |
| | 125,071 | | | Baxter International, Inc. | | | 10,458,437 | |
| | 19,773 | | | Becton Dickinson and Co. | | | 5,377,663 | |
| | 44,050 | | | Danaher Corp. | | | 6,760,794 | |
| | 137,155 | | | Hologic, Inc.* | | | 7,160,863 | |
| | 40,277 | | | Laboratory Corp. of America Holdings* | | | 6,813,660 | |
| | 98,960 | | | Medtronic plc | | | 11,227,012 | |
| | 40,870 | | | UnitedHealth Group, Inc. | | | 12,014,963 | |
| | | | | | | | |
| | | | | | | 77,389,967 | |
| | | | | | | | |
| | | | Household & Personal Products - 3.9% | |
| | 137,851 | | | Colgate-Palmolive Co. | | | 9,489,663 | |
| | 127,136 | | | Procter & Gamble Co. | | | 15,879,286 | |
| | | | | | | | |
| | | | | | | 25,368,949 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% - (continued) | |
| | | | Insurance - 3.4% | |
| | 66,402 | | | Allstate Corp. | | $ | 7,466,905 | |
| | 93,966 | | | Athene Holding Ltd. Class A* | | | 4,419,221 | |
| | 67,619 | | | Chubb Ltd. | | | 10,525,573 | |
| | | | | | | | |
| | | | | | | 22,411,699 | |
| | | | | | | | |
| | | | Materials - 1.9% | |
| | 29,424 | | | Ecolab, Inc. | | | 5,678,538 | |
| | 50,764 | | | PPG Industries, Inc. | | | 6,776,486 | |
| | | | | | | | |
| | | | | | | 12,455,024 | |
| | | | | | | | |
| | | | Media & Entertainment - 5.4% | |
| | 12,895 | | | Alphabet, Inc. Class A* | | | 17,271,434 | |
| | 32,182 | | | Facebook, Inc. Class A* | | | 6,605,356 | |
| | 77,678 | | | Walt Disney Co. | | | 11,234,569 | |
| | | | | | | | |
| | | | | | | 35,111,359 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 5.8% | |
| | 32,861 | | | Allergan plc | | | 6,282,037 | |
| | 85,227 | | | Eli Lilly & Co. | | | 11,201,385 | |
| | 110,935 | | | Merck & Co., Inc. | | | 10,089,538 | |
| | 31,114 | | | Thermo Fisher Scientific, Inc. | | | 10,108,005 | |
| | | | | | | | |
| | | | | | | 37,680,965 | |
| | | | | | | | |
| | | | Real Estate - 2.4% | |
| | 34,044 | | | American Tower Corp. REIT | | | 7,823,992 | |
| | 56,750 | | | Boston Properties, Inc. REIT | | | 7,823,555 | |
| | | | | | | | |
| | | | | | | 15,647,547 | |
| | | | | | | | |
| | | | Retailing - 2.5% | |
| | 4,428 | | | Amazon.com, Inc.* | | | 8,182,235 | |
| | 133,162 | | | TJX Cos., Inc. | | | 8,130,872 | |
| | | | | | | | |
| | | | | | | 16,313,107 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.4% | |
| | 103,652 | | | Micron Technology, Inc.* | | | 5,574,405 | |
| | 183,303 | | | ON Semiconductor Corp.* | | | 4,468,927 | |
| | 46,076 | | | QUALCOMM, Inc. | | | 4,065,285 | |
| | 114,799 | | | Teradyne, Inc. | | | 7,828,144 | |
| | | | | | | | |
| | | | | | | 21,936,761 | |
| | | | | | | | |
| | | | Software & Services - 11.4% | |
| | 47,909 | | | Global Payments, Inc. | | | 8,746,267 | |
| | 82,708 | | | GoDaddy, Inc. Class A* | | | 5,617,527 | |
| | 99,644 | | | Leidos Holdings, Inc. | | | 9,754,151 | |
| | 43,577 | | | Mastercard, Inc. Class A | | | 13,011,656 | |
| | 134,231 | | | Microsoft Corp. | | | 21,168,229 | |
| | 45,409 | | | salesforce.com, Inc.* | | | 7,385,320 | |
| | 87,110 | | | SS&C Technologies Holdings, Inc. | | | 5,348,554 | |
| | 20,857 | | | Workday, Inc. Class A* | | | 3,429,934 | |
| | | | | | | | |
| | | | | | | 74,461,638 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 6.0% | |
| | 80,992 | | | Apple, Inc. | | | 23,783,301 | |
| | 47,881 | | | CDW Corp. | | | 6,839,322 | |
| | 54,856 | | | Motorola Solutions, Inc. | | | 8,839,496 | |
| | | | | | | | |
| | | | | | | 39,462,119 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.7% | |
| | 182,376 | | | Verizon Communications, Inc. | | | 11,197,886 | |
| | | | | | | | |
| | | | Transportation - 1.5% | |
| | 33,667 | | | Norfolk Southern Corp. | | | 6,535,775 | |
| | 98,851 | | | Uber Technologies, Inc.* | | | 2,939,829 | |
| | | | | | | | |
| | | | | | | 9,475,604 | |
| | | | | | | | |
| | | | Utilities - 4.6% | |
| | 114,576 | | | American Electric Power Co., Inc. | | | 10,828,578 | |
| | 51,406 | | | NextEra Energy, Inc. | | | 12,448,477 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% - (continued) | |
| | | | Utilities - 4.6% - (continued) | |
| | 75,996 | | | Pinnacle West Capital Corp. | | $ | 6,834,320 | |
| | | | | | | | |
| | | | | | | 30,111,375 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $422,087,452) | | $ | 651,996,339 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.4% | |
| | | | Other Investment Pools & Funds - 0.4% | |
| | 2,288,713 | | | BlackRock Liquidity Funds, FedFund Portfolio, Institutional Class,1.58%(1) | | $ | 2,288,713 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $2,288,713) | | $ | 2,288,713 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $424,376,165) | | | 100.1 | % | | $ | 654,285,052 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (372,243 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 653,912,809 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 53,044,837 | | | $ | 53,044,837 | | | $ | — | | | $ | — | |
Capital Goods | | | 40,824,292 | | | | 40,824,292 | | | | — | | | | — | |
Commercial & Professional Services | | | 18,147,527 | | | | 18,147,527 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 24,434,528 | | | | 24,434,528 | | | | — | | | | — | |
Consumer Services | | | 18,923,483 | | | | 18,923,483 | | | | — | | | | — | |
Diversified Financials | | | 14,477,676 | | | | 14,477,676 | | | | — | | | | — | |
Energy | | | 10,235,917 | | | | 10,235,917 | | | | — | | | | — | |
Food & Staples Retailing | | | 19,833,465 | | | | 19,833,465 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 23,050,614 | | | | 23,050,614 | | | | — | | | | — | |
Health Care Equipment & Services | | | 77,389,967 | | | | 77,389,967 | | | | — | | | | — | |
Household & Personal Products | | | 25,368,949 | | | | 25,368,949 | | | | — | | | | — | |
Insurance | | | 22,411,699 | | | | 22,411,699 | | | | — | | | | — | |
Materials | | | 12,455,024 | | | | 12,455,024 | | | | — | | | | — | |
Media & Entertainment | | | 35,111,359 | | | | 35,111,359 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 37,680,965 | | | | 37,680,965 | | | | — | | | | — | |
Real Estate | | | 15,647,547 | | | | 15,647,547 | | | | — | | | | — | |
Retailing | | | 16,313,107 | | | | 16,313,107 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 21,936,761 | | | | 21,936,761 | | | | — | | | | — | |
Software & Services | | | 74,461,638 | | | | 74,461,638 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 39,462,119 | | | | 39,462,119 | | | | — | | | | — | |
Telecommunication Services | | | 11,197,886 | | | | 11,197,886 | | | | — | | | | — | |
Transportation | | | 9,475,604 | | | | 9,475,604 | | | | — | | | | — | |
Utilities | | | 30,111,375 | | | | 30,111,375 | | | | — | | | | — | |
Short-Term Investments | | | 2,288,713 | | | | 2,288,713 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 654,285,052 | | | $ | 654,285,052 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.4% | |
| | | | Automobiles & Components - 0.5% | |
| | 203,415 | | | Autoliv, Inc. | | $ | 17,170,260 | |
| | | | | | | | |
| | | | Banks - 10.0% | |
| | 3,738,713 | | | Bank of America Corp. | | | 131,677,472 | |
| | 420,387 | | | Bank of Nova Scotia | | | 23,747,662 | |
| | 976,171 | | | JP Morgan Chase & Co. | | | 136,078,237 | |
| | 243,725 | | | PNC Financial Services Group, Inc. | | | 38,905,822 | |
| | | | | | | | |
| | | | | | | 330,409,193 | |
| | | | | | | | |
| | | | Capital Goods - 6.7% | |
| | 255,581 | | | Deere & Co. | | | 44,281,964 | |
| | 208,652 | | | Eaton Corp. plc | | | 19,763,518 | |
| | 190,749 | | | General Dynamics Corp. | | | 33,638,586 | |
| | 714,096 | | | Johnson Controls International plc | | | 29,070,848 | |
| | 65,506 | | | Lockheed Martin Corp. | | | 25,506,726 | |
| | 107,611 | | | Raytheon Co. | | | 23,646,441 | |
| | 306,381 | | | United Technologies Corp. | | | 45,883,619 | |
| | | | | | | | |
| | | | | | | 221,791,702 | |
| | | | | | | | |
| | | | Consumer Services - 1.6% | |
| | 282,231 | | | Hilton Worldwide Holdings, Inc. | | | 31,302,240 | |
| | 117,124 | | | McDonald’s Corp. | | | 23,144,874 | |
| | | | | | | | |
| | | | | | | 54,447,114 | |
| | | | | | | | |
| | | | Diversified Financials - 4.3% | |
| | 290,185 | | | American Express Co. | | | 36,125,131 | |
| | 57,564 | | | BlackRock, Inc. | | | 28,937,423 | |
| | 241,087 | | | Charles Schwab Corp. | | | 11,466,098 | |
| | 340,093 | | | Intercontinental Exchange, Inc. | | | 31,475,607 | |
| | 340,818 | | | Northern Trust Corp. | | | 36,208,504 | |
| | | | | | | | |
| | | | | | | 144,212,763 | |
| | | | | | | | |
| | | | Energy - 7.7% | |
| | 158,218 | | | BP plc ADR | | | 5,971,147 | |
| | 617,122 | | | Chevron Corp. | | | 74,369,372 | |
| | 490,448 | | | ConocoPhillips | | | 31,893,834 | |
| | 2,367,596 | | | Encana Corp. | | | 11,104,025 | |
| | 174,949 | | | Exxon Mobil Corp. | | | 12,207,941 | |
| | 297,983 | | | Hess Corp. | | | 19,908,244 | |
| | 302,711 | | | Marathon Petroleum Corp. | | | 18,238,338 | |
| | 849,599 | | | Noble Energy, Inc. | | | 21,104,039 | |
| | 1,055,407 | | | Suncor Energy, Inc. | | | 34,617,350 | |
| | 436,085 | | | Total S.A. ADR | | | 24,115,501 | |
| | | | | | | | |
| | | | | | | 253,529,791 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.1% | |
| | 423,574 | | | Sysco Corp. | | | 36,232,520 | |
| | 279,961 | | | Walmart, Inc. | | | 33,270,565 | |
| | | | | | | | |
| | | | | | | 69,503,085 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.3% | |
| | 756,485 | | | Coca-Cola Co. | | | 41,871,445 | |
| | 425,739 | | | Kellogg Co. | | | 29,444,109 | |
| | 282,459 | | | PepsiCo., Inc. | | | 38,603,671 | |
| | | | | | | | |
| | | | | | | 109,919,225 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 6.4% | |
| | 256,423 | | | Abbott Laboratories | | | 22,272,902 | |
| | 24,908 | | | Becton Dickinson and Co. | | | 6,774,229 | |
| | 532,628 | | | CVS Health Corp. | | | 39,568,934 | |
| | 142,281 | | | HCA Healthcare, Inc. | | | 21,030,554 | |
| | 457,173 | | | Medtronic plc | | | 51,866,277 | |
| | 236,378 | | | UnitedHealth Group, Inc. | | | 69,490,404 | |
| | | | | | | | |
| | | | | | | 211,003,300 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.2% | |
| | 102,374 | | | Unilever N.V. | | | 5,882,410 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.4% - (continued) | |
| | | | Insurance - 6.4% | |
| | 635,534 | | | American International Group, Inc. | | $ | 32,621,960 | |
| | 375,009 | | | Chubb Ltd. | | | 58,373,901 | |
| | 172,261 | | | Marsh & McLennan Cos., Inc. | | | 19,191,598 | |
| | 484,023 | | | Principal Financial Group, Inc. | | | 26,621,265 | |
| | 221,658 | | | Progressive Corp. | | | 16,045,823 | |
| | 627,298 | | | Prudential Financial, Inc. | | | 58,802,914 | |
| | | | | | | | |
| | | | | | | 211,657,461 | |
| | | | | | | | |
| | | | Materials - 3.1% | |
| | 197,257 | | | Celanese Corp. | | | 24,286,282 | |
| | 296,929 | | | FMC Corp. | | | 29,639,453 | |
| | 608,291 | | | International Paper Co. | | | 28,011,801 | |
| | 266,637 | | | Livent Corp.* | | | 2,279,746 | |
| | 144,194 | | | PPG Industries, Inc. | | | 19,248,457 | |
| | | | | | | | |
| | | | | | | 103,465,739 | |
| | | | | | | | |
| | | | Media & Entertainment - 5.4% | |
| | 73,475 | | | Alphabet, Inc. Class A* | | | 98,411,680 | |
| | 1,774,951 | | | Comcast Corp. Class A | | | 79,819,547 | |
| | | | | | | | |
| | | | | | | 178,231,227 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 9.8% | |
| | 369,836 | | | Agilent Technologies, Inc. | | | 31,550,709 | |
| | 1,072,098 | | | AstraZeneca plc ADR | | | 53,454,806 | |
| | 439,883 | | | Bristol-Myers Squibb Co. | | | 28,236,090 | |
| | 348,136 | | | Eli Lilly & Co. | | | 45,755,515 | |
| | 536,873 | | | Merck & Co., Inc. | | | 48,828,599 | |
| | 412,585 | | | Novartis AG ADR | | | 39,067,674 | |
| | 1,989,751 | | | Pfizer, Inc. | | | 77,958,444 | |
| | | | | | | | |
| | | | | | | 324,851,837 | |
| | | | | | | | |
| | | | Real Estate - 3.1% | |
| | 127,136 | | | American Tower Corp. REIT | | | 29,218,396 | |
| | 147,951 | | | Boston Properties, Inc. REIT | | | 20,396,525 | |
| | 21,585 | | | Essex Property Trust, Inc. REIT | | | 6,494,063 | |
| | 943,002 | | | Host Hotels & Resorts, Inc. REIT | | | 17,492,687 | |
| | 200,943 | | | Simon Property Group, Inc. REIT | | | 29,932,469 | |
| | | | | | | | |
| | | | | | | 103,534,140 | |
| | | | | | | | |
| | | | Retailing - 3.3% | |
| | 190,524 | | | Home Depot, Inc. | | | 41,606,631 | |
| | 293,100 | | | Lowe’s Cos., Inc. | | | 35,101,656 | |
| | 510,549 | | | TJX Cos., Inc. | | | 31,174,122 | |
| | | | | | | | |
| | | | | | | 107,882,409 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.9% | |
| | 875,676 | | | Intel Corp. | | | 52,409,209 | |
| | 59,690 | | | KLA Corp. | | | 10,634,967 | |
| | 341,173 | | | Micron Technology, Inc.* | | | 18,348,284 | |
| | 110,291 | | | Texas Instruments, Inc. | | | 14,149,232 | |
| | | | | | | | |
| | | | | | | 95,541,692 | |
| | | | | | | | |
| | | | Software & Services - 6.4% | |
| | 79,356 | | | Accenture plc Class A | | | 16,709,993 | |
| | 165,789 | | | International Business Machines Corp. | | | 22,222,357 | |
| | 1,097,671 | | | Microsoft Corp. | | | 173,102,717 | |
| | | | | | | | |
| | | | | | | 212,035,067 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 5.2% | |
| | 196,771 | | | Apple, Inc. | | | 57,781,804 | |
| | 976,742 | | | Cisco Systems, Inc. | | | 46,844,546 | |
| | 228,700 | | | Corning, Inc. | | | 6,657,457 | |
| | 804,209 | | | HP, Inc. | | | 16,526,495 | |
| | 273,217 | | | Motorola Solutions, Inc. | | | 44,026,188 | |
| | | | | | | | |
| | | | | | | 171,836,490 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.4% - (continued) | |
| | | | Telecommunication Services - 4.1% | |
| | 555,266 | | | AT&T, Inc. | | $ | 21,699,795 | |
| | 1,863,014 | | | Verizon Communications, Inc. | | | 114,389,060 | |
| | | | | | | | |
| | | | | | | 136,088,855 | |
| | | | | | | | |
| | | | Transportation - 2.0% | |
| | 408,838 | | | Delta Air Lines, Inc. | | | 23,908,846 | |
| | 234,740 | | | Union Pacific Corp. | | | 42,438,645 | |
| | | | | | | | |
| | | | | | | 66,347,491 | |
| | | | | | | | |
| | | | Utilities - 3.9% | |
| | 560,380 | | | Dominion Energy, Inc. | | | 46,410,671 | |
| | 824,246 | | | Exelon Corp. | | | 37,577,375 | |
| | 180,449 | | | NextEra Energy, Inc. | | | 43,697,530 | |
| | | | | | | | |
| | | | | | | 127,685,576 | |
| | | | | | | | |
| | | | Total Common Stocks
(cost $2,106,705,037) | | $ | 3,257,026,827 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.6% | |
| | | | Other Investment Pools & Funds - 1.6% | |
| | 52,118,561 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(1) | | $ | 52,118,561 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $52,118,561) | | $ | 52,118,561 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | | Total Investments
(cost $2,158,823,598) | | | 100.0 | % | | $ | 3,309,145,388 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | 410,836 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 3,309,556,224 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 17,170,260 | | | $ | 17,170,260 | | | $ | — | | | $ | — | |
Banks | | | 330,409,193 | | | | 330,409,193 | | | | — | | | | — | |
Capital Goods | | | 221,791,702 | | | | 221,791,702 | | | | — | | | | — | |
Consumer Services | | | 54,447,114 | | | | 54,447,114 | | | | — | | | | — | |
Diversified Financials | | | 144,212,763 | | | | 144,212,763 | | | | — | | | | — | |
Energy | | | 253,529,791 | | | | 253,529,791 | | | | — | | | | — | |
Food & Staples Retailing | | | 69,503,085 | | | | 69,503,085 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 109,919,225 | | | | 109,919,225 | | | | — | | | | — | |
Health Care Equipment & Services | | | 211,003,300 | | | | 211,003,300 | | | | — | | | | — | |
Household & Personal Products | | | 5,882,410 | | | | 5,882,410 | | | | — | | | | — | |
Insurance | | | 211,657,461 | | | | 211,657,461 | | | | — | | | | — | |
Materials | | | 103,465,739 | | | | 103,465,739 | | | | — | | | | — | |
Media & Entertainment | | | 178,231,227 | | | | 178,231,227 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 324,851,837 | | | | 324,851,837 | | | | — | | | | — | |
Real Estate | | | 103,534,140 | | | | 103,534,140 | | | | — | | | | — | |
Retailing | | | 107,882,409 | | | | 107,882,409 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 95,541,692 | | | | 95,541,692 | | | | — | | | | — | |
Software & Services | | | 212,035,067 | | | | 212,035,067 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 171,836,490 | | | | 171,836,490 | | | | — | | | | — | |
Telecommunication Services | | | 136,088,855 | | | | 136,088,855 | | | | — | | | | — | |
Transportation | | | 66,347,491 | | | | 66,347,491 | | | | — | | | | — | |
Utilities | | | 127,685,576 | | | | 127,685,576 | | | | — | | | | — | |
Short-Term Investments | | | 52,118,561 | | | | 52,118,561 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,309,145,388 | | | $ | 3,309,145,388 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% | |
| | | | Automobiles & Components - 0.6% | |
| | 20,490 | | | Ferrari N.V. | | $ | 3,402,070 | |
| | | | | | | | |
| | | | Banks - 1.0% | |
| | 41,480 | | | HDFC Bank Ltd. ADR | | | 2,628,587 | |
| | 18,382 | | | JP Morgan Chase & Co. | | | 2,562,451 | |
| | | | | | | | |
| | | | | | | 5,191,038 | |
| | | | | | | | |
| | | | Capital Goods - 5.5% | |
| | 27,536 | | | Airbus SE | | | 4,041,324 | |
| | 109,498 | | | Assa Abloy AB Class B | | | 2,559,565 | |
| | 49,780 | | | Atlas Copco AB Class A | | | 1,987,002 | |
| | 16,913 | | | General Dynamics Corp. | | | 2,982,608 | |
| | 13,096 | | | L3Harris Technologies, Inc. | | | 2,591,305 | |
| | 20,950 | | | Lockheed Martin Corp. | | | 8,157,511 | |
| | 18,370 | | | Nidec Corp. | | | 2,509,042 | |
| | 23,771 | | | Safran S.A. | | | 3,671,652 | |
| | | | | | | | |
| | | | | | | 28,500,009 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.6% | |
| | 54,714 | | | Edenred | | | 2,835,522 | |
| | 17,726 | | | Equifax, Inc. | | | 2,483,767 | |
| | 39,810 | | | IHS Markit Ltd.* | | | 2,999,684 | |
| | | | | | | | |
| | | | | | | 8,318,973 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.4% | |
| | 32,002 | | | NIKE, Inc. Class B | | | 3,242,123 | |
| | 713 | | | NVR, Inc.* | | | 2,715,396 | |
| | 36,530 | | | Sony Corp. | | | 2,480,301 | |
| | 176,931 | | | Under Armour, Inc. Class A* | | | 3,821,710 | |
| | | | | | | | |
| | | | | | | 12,259,530 | |
| | | | | | | | |
| | | | Consumer Services - 1.9% | |
| | 64,941 | | | Hilton Worldwide Holdings, Inc. | | | 7,202,606 | |
| | 498,012 | | | Sands China Ltd. | | | 2,660,913 | |
| | | | | | | | |
| | | | | | | 9,863,519 | |
| | | | | | | | |
| | | | Diversified Financials - 4.1% | |
| | 64,149 | | | American Express Co. | | | 7,985,909 | |
| | 113,928 | | | Blackstone Group, Inc. Class A | | | 6,373,132 | |
| | 60,134 | | | Julius Baer Group Ltd.* | | | 3,100,083 | |
| | 4,074 | | | Partners Group Holding AG | | | 3,733,931 | |
| | | | | | | | |
| | | | | | | 21,193,055 | |
| | | | | | | | |
| | | | Energy - 1.2% | |
| | 163,199 | | | Galp Energia SGPS S.A. | | | 2,739,793 | |
| | 86,893 | | | Schlumberger Ltd. | | | 3,493,099 | |
| | | | | | | | |
| | | | | | | 6,232,892 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.6% | |
| | 36,400 | | | Sysco Corp. | | | 3,113,656 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 5.3% | |
| | 18,196 | | | Constellation Brands, Inc. Class A | | | 3,452,691 | |
| | 316,097 | | | Davide Campari-Milano S.p.A.(1) | | | 2,888,271 | |
| | 188,432 | | | Diageo plc | | | 7,939,894 | |
| | 30,503 | | | Heineken N.V. | | | 3,255,519 | |
| | 54,075 | | | Monster Beverage Corp.* | | | 3,436,466 | |
| | 59,043 | | | Nestle S.A. | | | 6,392,302 | |
| | | | | | | | |
| | | | | | | 27,365,143 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 5.3% | |
| | 11,829 | | | Anthem, Inc. | | | 3,572,713 | |
| | 35,090 | | | Baxter International, Inc. | | | 2,934,226 | |
| | 10,937 | | | Becton Dickinson and Co. | | | 2,974,536 | |
| | 15,764 | | | Edwards Lifesciences Corp.* | | | 3,677,584 | |
| | 5,982 | | | Intuitive Surgical, Inc.* | | | 3,536,259 | |
| | 26,097 | | | Medtronic plc | | | 2,960,705 | |
| | 12,076 | | | Penumbra, Inc.* | | | 1,983,724 | |
| | 19,962 | | | UnitedHealth Group, Inc. | | | 5,868,429 | |
| | | | | | | | |
| | | | | | | 27,508,176 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% - (continued) | |
| | | | Household & Personal Products - 0.8% | |
| | 72,752 | | | Unilever N.V. | | $ | 4,175,286 | |
| | | | | | | | |
| | | | Insurance - 3.2% | |
| | 410,000 | | | AIA Group Ltd. | | | 4,312,364 | |
| | 15,067 | | | Aon plc | | | 3,138,305 | |
| | 501,898 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 5,939,190 | |
| | 43,715 | | | Progressive Corp. | | | 3,164,529 | |
| | | | | | | | |
| | | | | | | 16,554,388 | |
| | | | | | | | |
| | | | Materials - 1.7% | |
| | 139,733 | | | BHP Group plc | | | 3,274,490 | |
| | 28,252 | | | FMC Corp. | | | 2,820,115 | |
| | 25,080 | | | Shin-Etsu Chemical Co., Ltd. | | | 2,758,124 | |
| | | | | | | | |
| | | | | | | 8,852,729 | |
| | | | | | | | |
| | | | Media & Entertainment - 10.6% | |
| | 13,301 | | | Alphabet, Inc. Class C* | | | 17,783,703 | |
| | 34,677 | | | Electronic Arts, Inc.* | | | 3,728,124 | |
| | 69,351 | | | Facebook, Inc. Class A* | | | 14,234,293 | |
| | 8,420 | | | Netflix, Inc.* | | | 2,724,459 | |
| | 5,800 | | | Nintendo Co., Ltd. | | | 2,319,769 | |
| | 107,160 | | | Pinterest, Inc. Class A* | | | 1,997,462 | |
| | 22,437 | | | Spotify Technology S.A.* | | | 3,355,453 | |
| | 130,850 | | | Tencent Holdings Ltd. | | | 6,303,846 | |
| | 62,809 | | | Yandex N.V. Class A* | | | 2,731,564 | |
| | | | | | | | |
| | | | | | | 55,178,673 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.6% | |
| | 41,695 | | | Agilent Technologies, Inc. | | | 3,557,000 | |
| | 88,128 | | | AstraZeneca plc | | | 8,820,902 | |
| | 8,120 | | | Biogen, Inc.* | | | 2,409,448 | |
| | 20,215 | | | Bluebird Bio, Inc.* | | | 1,773,866 | |
| | 31,208 | | | Eli Lilly & Co. | | | 4,101,667 | |
| | 15,409 | | | ICON plc* | | | 2,653,892 | |
| | 83,550 | | | Novartis AG | | | 7,911,314 | |
| | 25,118 | | | Seattle Genetics, Inc.* | | | 2,869,983 | |
| | | | | | | | |
| | | | | | | 34,098,072 | |
| | | | | | | | |
| | | | Real Estate - 1.7% | |
| | 38,499 | | | American Tower Corp. REIT | | | 8,847,840 | |
| | | | | | | | |
| | | | Retailing - 7.7% | |
| | 34,238 | | | Alibaba Group Holding Ltd. ADR* | | | 7,261,880 | |
| | 5,646 | | | Amazon.com, Inc.* | | | 10,432,905 | |
| | 79,083 | | | Dollarama, Inc. | | | 2,718,012 | |
| | 43,795 | | | Home Depot, Inc. | | | 9,563,952 | |
| | 26,026 | | | Ross Stores, Inc. | | | 3,029,947 | |
| | 116,105 | | | TJX Cos., Inc. | | | 7,089,371 | |
| | | | | | | | |
| | | | | | | 40,096,067 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 6.0% | |
| | 114,674 | | | Advanced Micro Devices, Inc.* | | | 5,258,950 | |
| | 14,037 | | | ASML Holding N.V. | | | 4,155,744 | |
| | 142,772 | | | Infineon Technologies AG | | | 3,225,840 | |
| | 17,243 | | | KLA Corp. | | | 3,072,185 | |
| | 129,263 | | | Marvell Technology Group Ltd. | | | 3,433,225 | |
| | 403,650 | | | MediaTek, Inc. | | | 5,980,912 | |
| | 321,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 3,552,772 | |
| | 40,274 | | | Teradyne, Inc. | | | 2,746,284 | |
| | | | | | | | |
| | | | | | | 31,425,912 | |
| | | | | | | | |
| | | | Software & Services - 22.3% | |
| | 20,623 | | | Accenture plc Class A | | | 4,342,585 | |
| | 32,058 | | | Adobe, Inc.* | | | 10,573,049 | |
| | 20,310 | | | Automatic Data Processing, Inc. | | | 3,462,855 | |
| | 41,605 | | | DocuSign, Inc.* | | | 3,083,347 | |
| | 21,149 | | | Fidelity National Information Services, Inc. | | | 2,941,614 | |
| | 29,304 | | | Fiserv, Inc.* | | | 3,388,421 | |
| | 11,887 | | | FleetCor Technologies, Inc.* | | | 3,420,128 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Global Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.7% - (continued) | |
| | | | Software & Services - 22.3% - (continued) | |
| | 21,900 | | | Global Payments, Inc. | | $ | 3,998,064 | |
| | 12,325 | | | Intuit, Inc. | | | 3,228,287 | |
| | 38,084 | | | Mastercard, Inc. Class A | | | 11,371,502 | |
| | 177,499 | | | Microsoft Corp. | | | 27,991,592 | |
| | 61,317 | | | Pagseguro Digital Ltd. Class A* | | | 2,094,589 | |
| | 80,737 | | | PayPal Holdings, Inc.* | | | 8,733,321 | |
| | 58,536 | | | salesforce.com, Inc.* | | | 9,520,295 | |
| | 13,640 | | | ServiceNow, Inc.* | | | 3,850,845 | |
| | 121,260 | | | Slack Technologies, Inc. Class A*(1) | | | 2,725,925 | |
| | 27,556 | | | Splunk, Inc.* | | | 4,127,062 | |
| | 38,149 | | | Visa, Inc. Class A | | | 7,168,197 | |
| | | | | | | | |
| | | | | | | 116,021,678 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 6.2% | |
| | 79,555 | | | Apple, Inc. | | | 23,361,326 | |
| | 25,567 | | | CDW Corp. | | | 3,651,990 | |
| | 57,955 | | | Samsung Electronics Co., Ltd. | | | 2,792,669 | |
| | 151,313 | | | Sunny Optical Technology Group Co., Ltd. | | | 2,621,665 | |
| | | | | | | | |
| | | | | | | 32,427,650 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.3% | | | |
| | 62,466 | | | Cellnex Telecom S.A.*(2) | | | 2,694,509 | |
| | 51,336 | | | T-Mobile US, Inc.* | | | 4,025,769 | |
| | | | | | | | |
| | | | | | | 6,720,278 | |
| | | | | | | | |
| | | | Transportation - 2.1% | | | |
| | 33,896 | | | Canadian National Railway Co. | | | 3,066,315 | |
| | 20,700 | | | J.B. Hunt Transport Services, Inc. | | | 2,417,346 | |
| | 13,202 | | | Norfolk Southern Corp. | | | 2,562,904 | |
| | 93,141 | | | Uber Technologies, Inc.* | | | 2,770,013 | |
| | | | | | | | |
| | | | | | | 10,816,578 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $365,921,354) | | $ | 518,163,212 | |
| | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 1.1% | | | |
| | | | Other Investment Pools & Funds - 0.6% | | | |
| | 3,239,455 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(3) | | $ | 3,239,455 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.5% | | | |
| | 120,863 | | | Citibank NA DDCA, 1.54%, 1/2/2020(3) | | | 120,863 | |
| | 586,070 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(3) | | | 586,070 | |
| | 540,100 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(3) | | | 540,100 | |
| | 270,050 | | | JPMorgan Prime Money Market Fund, 1.69%(3) | | | 270,050 | |
| | 720,134 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class,
1.72%(3) | | | 720,134 | |
| | 180,033 | | | State Street Institutional Liquid Reserves Fund, 1.70%(3) | | | 180,033 | |
| | | | | | | | |
| | | | | | | 2,417,250 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $5,656,705) | | $ | 5,656,705 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $371,578,059) | | | 100.8 | % | | $ | 523,819,917 | |
| | | | Other Assets and Liabilities | | | (0.8 | )% | | | (4,371,114 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 519,448,803 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of this security was $2,694,509, representing 0.5% of net assets. |
| (3) | 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 Global Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 3,402,070 | | | $ | — | | | $ | 3,402,070 | | | $ | — | |
Banks | | | 5,191,038 | | | | 5,191,038 | | | | — | | | | — | |
Capital Goods | | | 28,500,009 | | | | 13,731,424 | | | | 14,768,585 | | | | — | |
Commercial & Professional Services | | | 8,318,973 | | | | 5,483,451 | | | | 2,835,522 | | | | — | |
Consumer Durables & Apparel | | | 12,259,530 | | | | 9,779,229 | | | | 2,480,301 | | | | — | |
Consumer Services | | | 9,863,519 | | | | 7,202,606 | | | | 2,660,913 | | | | — | |
Diversified Financials | | | 21,193,055 | | | | 14,359,041 | | | | 6,834,014 | | | | — | |
Energy | | | 6,232,892 | | | | 3,493,099 | | | | 2,739,793 | | | | — | |
Food & Staples Retailing | | | 3,113,656 | | | | 3,113,656 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 27,365,143 | | | | 6,889,157 | | | | 20,475,986 | | | | — | |
Health Care Equipment & Services | | | 27,508,176 | | | | 27,508,176 | | | | — | | | | — | |
Household & Personal Products | | | 4,175,286 | | | | — | | | | 4,175,286 | | | | — | |
Insurance | | | 16,554,388 | | | | 6,302,834 | | | | 10,251,554 | | | | — | |
Materials | | | 8,852,729 | | | | 2,820,115 | | | | 6,032,614 | | | | — | |
Media & Entertainment | | | 55,178,673 | | | | 46,555,058 | | | | 8,623,615 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 34,098,072 | | | | 17,365,856 | | | | 16,732,216 | | | | — | |
Real Estate | | | 8,847,840 | | | | 8,847,840 | | | | — | | | | — | |
Retailing | | | 40,096,067 | | | | 40,096,067 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 31,425,912 | | | | 14,510,644 | | | | 16,915,268 | | | | — | |
Software & Services | | | 116,021,678 | | | | 116,021,678 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 32,427,650 | | | | 27,013,316 | | | | 5,414,334 | | | | — | |
Telecommunication Services | | | 6,720,278 | | | | 4,025,769 | | | | 2,694,509 | | | | — | |
Transportation | | | 10,816,578 | | | | 10,816,578 | | | | — | | | | — | |
Short-Term Investments | | | 5,656,705 | | | | 5,656,705 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 523,819,917 | | | $ | 396,783,337 | | | $ | 127,036,580 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.0% | |
| | | | Capital Goods - 6.7% | |
| | 1,299,766 | | | API Group Corp.*(1)(2)(3) | | $ | 13,712,531 | |
| | 157,874 | | | Dover Corp. | | | 18,196,557 | |
| | 254,377 | | | Ingersoll-Rand plc | | | 33,811,791 | |
| | 109,323 | | | L3Harris Technologies, Inc. | | | 21,631,742 | |
| | 88,536 | | | Raytheon Co. | | | 19,454,901 | |
| | | | | | | | |
| | | | | | | 106,807,522 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.6% | |
| | 204,451 | | | Copart, Inc.* | | | 18,592,774 | |
| | 18,785 | | | Klarna Holding AB*(2)(3)(4) | | | 4,540,642 | |
| | 182,167 | | | Landscape Acquisition Holdings Ltd.*(2)(3) | | | 1,589,407 | |
| | | | | | | | |
| | | | | | | 24,722,823 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.2% | |
| | 471,000 | | | Peloton Interactive, Inc. Class A* | | | 13,376,400 | |
| | 456,644 | | | Under Armour, Inc. Class A* | | | 9,863,510 | |
| | 599,917 | | | Under Armour, Inc. Class C* | | | 11,506,408 | |
| | | | | | | | |
| | | | | | | 34,746,318 | |
| | | | | | | | |
| | | | Consumer Services - 6.4% | |
| | 1,556,596 | | | DraftKings, Inc.*(2)(3)(4) | | | 5,326,671 | |
| | 203,286 | | | Grand Canyon Education, Inc.* | | | 19,472,766 | |
| | 161,468 | | | Marriott Vacations Worldwide Corp. | | | 20,790,620 | |
| | 294,343 | | | Norwegian Cruise Line Holdings Ltd.* | | | 17,192,574 | |
| | 272,129 | | | Planet Fitness, Inc. Class A* | | | 20,322,594 | |
| | 577,000 | | | Target Hospitality Corp.* | | | 2,885,000 | |
| | 69,876 | | | Vail Resorts, Inc. | | | 16,758,361 | |
| | | | | | | | |
| | | | | | | 102,748,586 | |
| | | | | | | | |
| | | | Diversified Financials - 3.6% | |
| | 317,003 | | | American Express Co. | | | 39,463,703 | |
| | 333,741 | | | Blackstone Group, Inc. Class A | | | 18,669,472 | |
| | | | | | | | |
| | | | | | | 58,133,175 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.0% | |
| | 184,947 | | | Lamb Weston Holdings, Inc. | | | 15,910,990 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.5% | |
| | 85,622 | | | ABIOMED, Inc.* | | | 14,606,257 | |
| | 157,226 | | | DexCom, Inc.* | | | 34,391,615 | |
| | 270,852 | | | Haemonetics Corp.* | | | 31,120,895 | |
| | 185,013 | | | Insulet Corp.* | | | 31,674,226 | |
| | 101,485 | | | Novocure Ltd.* | | | 8,552,141 | |
| | | | | | | | |
| | | | | | | 120,345,134 | |
| | | | | | | | |
| | | | Media & Entertainment - 10.9% | |
| | 306,702 | | | Activision Blizzard, Inc. | | | 18,224,233 | |
| | 120,868 | | | Facebook, Inc. Class A* | | | 24,808,157 | |
| | 403,854 | | | Ocean Outdoor Ltd.*(1) | | | 2,907,749 | |
| | 1,303,454 | | | Pinterest, Inc. Class A* | | | 24,296,383 | |
| | 125,506 | | | Roku, Inc.* | | | 16,805,253 | |
| | 297,389 | | | Spotify Technology S.A.* | | | 44,474,525 | |
| | 292,835 | | | Walt Disney Co. | | | 42,352,726 | |
| | | | | | | | |
| | | | | | | 173,869,026 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 12.1% | |
| | 75,242 | | | Ascendis Pharma AS ADR* | | | 10,467,667 | |
| | 438,208 | | | AstraZeneca plc ADR | | | 21,849,051 | |
| | 35,734 | | | Biogen, Inc.* | | | 10,603,350 | |
| | 854,923 | | | Elanco Animal Health, Inc.* | | | 25,177,482 | |
| | 206,508 | | | Exact Sciences Corp.* | | | 19,097,860 | |
| | 12,354 | | | Galapagos N.V. ADR*(5) | | | 2,555,178 | |
| | 106,843 | | | Galapagos N.V.* | | | 22,249,787 | |
| | 153,888 | | | Ionis Pharmaceuticals, Inc.* | | | 9,296,374 | |
| | 41,067 | | | Reata Pharmaceuticals, Inc. Class A* | | | 8,395,327 | |
| | 76,169 | | | Sage Therapeutics, Inc.* | | | 5,498,640 | |
| | 95,081 | | | Seattle Genetics, Inc.* | | | 10,863,955 | |
| | 142,696 | | | Thermo Fisher Scientific, Inc. | | | 46,357,650 | |
| | | | | | | | |
| | | | | | | 192,412,321 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.0% - (continued) | |
| | | | Real Estate - 0.0% | | | |
| | 10,657 | | | We Co. Class A*(2)(3)(4) | | $ | 133,591 | |
| | | | | | | | |
| | | | Retailing - 14.0% | | | |
| | 66,906 | | | Amazon.com, Inc.* | | | 123,631,583 | |
| | 87,690 | | | Burlington Stores, Inc.* | | | 19,995,951 | |
| | 95,134 | | | Five Below, Inc.* | | | 12,163,833 | |
| | 448,001 | | | Floor & Decor Holdings, Inc. Class A* | | | 22,762,931 | |
| | 41,578 | | | JAND, Inc. Class A*(2)(3)(4) | | | 674,811 | |
| | 209,347 | | | Lowe’s Cos., Inc. | | | 25,071,397 | |
| | 38,805 | | | Tory Burch LLC*(2)(3)(4) | | | 2,518,446 | |
| | 174,620 | | | Wayfair, Inc. Class A* | | | 15,780,409 | |
| | | | | | | | |
| | | | | | | 222,599,361 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.8% | |
| | 1,146,612 | | | Advanced Micro Devices, Inc.* | | | 52,583,626 | |
| | 900,792 | | | Marvell Technology Group Ltd. | | | 23,925,036 | |
| | | | | | | | |
| | | | | | | 76,508,662 | |
| | | | | | | | |
| | | | Software & Services - 20.6% | | | |
| | 217,586 | | | 2U, Inc.*(5) | | | 5,219,888 | |
| | 153,829 | | | Alteryx, Inc. Class A*(5) | | | 15,393,668 | |
| | 11,900 | | | DocuSign, Inc.* | | | 881,909 | |
| | 66,999 | | | Fair Isaac Corp.* | | | 25,103,185 | |
| | 434,416 | | | GoDaddy, Inc. Class A* | | | 29,505,535 | |
| | 309,164 | | | Guidewire Software, Inc.* | | | 33,936,932 | |
| | 351,869 | | | PayPal Holdings, Inc.* | | | 38,061,670 | |
| | 147,529 | | | ServiceNow, Inc.* | | | 41,650,387 | |
| | 961,481 | | | Slack Technologies, Inc. Class A*(5) | | | 21,614,093 | |
| | 359,278 | | | Splunk, Inc.* | | | 53,809,066 | |
| | 295,649 | | | Workday, Inc. Class A* | | | 48,619,478 | |
| | 226,115 | | | Zoom Video Communications, Inc. Class A*(5) | | | 15,384,865 | |
| | | | | | | | |
| | | | | | | 329,180,676 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.4% | | | |
| | 113,571 | | | Apple, Inc. | | | 33,350,124 | |
| | 81,346 | | | Zebra Technologies Corp. Class A* | | | 20,779,022 | |
| | | | | | | | |
| | | | | | | 54,129,146 | |
| | | | | | | | |
| | | | Transportation - 2.2% | | | |
| | 111,836 | | | J.B. Hunt Transport Services, Inc. | | | 13,060,208 | |
| | 736,209 | | | Uber Technologies, Inc.* | | | 21,894,856 | |
| | | | | | | | |
| | | | | | | 34,955,064 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,284,564,788) | | $ | 1,547,202,395 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 1.8% | |
| | | | Real Estate - 0.2% | | | |
| | 145,709 | | | We Co. Series D1*(2)(3)(4) | | $ | 2,125,949 | |
| | 114,486 | | | We Co. Series D2*(2)(3)(4) | | | 1,670,390 | |
| | | | | | | | |
| | | | | | | 3,796,339 | |
| | | | | | | | |
| | | | Retailing - 0.9% | | | |
| | 1,605,750 | | | Coupang LLC*(2)(3)(4) | | | 9,361,522 | |
| | 102,040 | | | Honest Co., Inc. Series C*(2)(3)(4) | | | 3,361,198 | |
| | 92,843 | | | JAND, Inc. Series D*(2)(3)(4) | | | 1,513,341 | |
| | | | | | | | |
| | | | | | | 14,236,061 | |
| | | | | | | | |
| | | | Software & Services - 0.7% | | | |
| | 1,871,878 | | | Essence Group Holdings Corp.
Series 3*(2)(3)(4) | | | 4,717,133 | |
| | 366,944 | | | MarkLogic Corp. Series F*(2)(3)(4) | | | 3,511,654 | |
| | 287,204 | | | Lookout, Inc. Series F*(2)(3)(4) | | | 2,237,319 | |
| | | | | | | | |
| | | | | | | 10,466,106 | |
| | | | | | | | |
| | | | Total Convertible Preferred Stocks
(cost $23,661,221) | | $ | 28,498,506 | |
| | | | | | | | |
|
| ESCROWS - 0.0%(6) | |
| | | | Capital Goods - 0.0% | | | |
| | 1,458,400 | | | Lithium Technology Corp.*(2)(3)(4) | | $ | 14,584 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ESCROWS - 0.0%(6) - (continued) | |
| | | | Software & Services - 0.0% | | | |
| | 210,735 | | | Veracode, Inc.*(2)(3)(4) | | $ | 114,640 | |
| | | | | | | | |
| | |
| | | | Total Escrows
(cost $—) | | $ | 129,224 | |
| | | | | | | | |
|
| WARRANTS - 0.0% | |
| | | | Commercial & Professional Services - 0.0% | |
| | 516,400 | | | Landscape Acquisition Holdings Ltd. Expires 11/23/22*(2)(3) | | $ | 25,820 | |
| | | | | | | | |
| | | | Consumer Services - 0.0% | | | |
| | 192,333 | | | Target Hospitality Corp. Expires 3/15/24* | | | 100,013 | |
| | | | | | | | |
| | |
| | | | Total Warrants
(cost $264,992) | | $ | 125,833 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,308,491,001) | | $ | 1,575,955,958 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 3.7% | |
| | | | Other Investment Pools & Funds - 1.5% | | | |
| | 24,182,578 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(7) | | $ | 24,182,578 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 2.2% | | | |
| | 1,749,295 | | | Citibank NA DDCA, 1.54%, 1/2/2020(7) | | | 1,749,295 | |
| | 8,482,449 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(7) | | | 8,482,449 | |
| | 7,817,104 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(7) | | | 7,817,104 | |
| | 3,908,552 | | | JPMorgan Prime Money Market Fund, 1.69%(7) | | | 3,908,552 | |
| | 10,422,805 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(7) | | | 10,422,805 | |
| | 2,605,701 | | | State Street Institutional Liquid Reserves Fund, 1.70%(7) | | | 2,605,701 | |
| | | | | | | | |
| | | | | | | 34,985,906 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $59,168,484) | | $ | 59,168,484 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,367,659,485) | | | 102.5 | % | | $ | 1,635,124,442 | |
| | | | Other Assets and Liabilities | | | (2.5 | )% | | | (40,450,895 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,594,673,547 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $16,620,280, representing 1.0% of net assets. |
| (2) | These securities are valued in good faith at fair value as determined under policies and procedures established by and under the supervision of the Board of Directors. At December 31, 2019, the aggregate fair value of these securities was $57,149,649, which represented 3.6% 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. |
| (3) | Investment valued using significant unobservable inputs. |
| (4) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $41,821,891 or 2.6% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 11/2014 | | | Coupang LLC Convertible Preferred | | | 1,605,750 | | | $ | 4,998,894 | | | $ | 9,361,522 | |
| | 12/2014 | | | DraftKings, Inc. | | | 1,556,596 | | | | 2,280,348 | | | | 5,326,671 | |
| | 05/2014 | | | Essence Group Holdings Corp.
Series 3 Convertible Preferred | | | 1,871,878 | | | | 2,960,001 | | | | 4,717,133 | |
| | 08/2014 | | | Honest Co., Inc.
Series C Convertible Preferred | | | 102,040 | | | | 2,760,927 | | | | 3,361,198 | |
| | 04/2015 | | | JAND, Inc. Class A | | | 41,578 | | | | 477,536 | | | | 674,811 | |
| | 04/2015 | | | JAND, Inc. Series D Convertible Preferred | | | 92,843 | | | | 1,066,330 | | | | 1,513,341 | |
| | 08/2015 | | | Klarna Holding AB | | | 18,785 | | | | 2,060,349 | | | | 4,540,642 | |
| | 08/2013 | | | Lithium Technology Corp. | | | 1,458,400 | | | | — | | | | 14,584 | |
| | 07/2014 | | | Lookout, Inc.
Series F Convertible Preferred | | | 287,204 | | | | 3,280,760 | | | | 2,237,319 | |
| | 04/2015 | | | MarkLogic Corp.
Series F Convertible Preferred | | | 366,944 | | | | 4,261,761 | | | | 3,511,654 | |
| | 11/2013 | | | Tory Burch LLC | | | 38,805 | | | | 3,041,403 | | | | 2,518,446 | |
| | 04/2017 | | | Veracode, Inc. | | | 210,735 | | | | — | | | | 114,640 | |
| | 12/2014 | | | We Co. Class A | | | 10,657 | | | | 177,451 | | | | 133,591 | |
| | 12/2014 | | | We Co.
Series D1 Convertible Preferred | | | 145,709 | | | | 2,426,224 | | | | 2,125,949 | |
| | 12/2014 | | | We Co.
Series D2 Convertible Preferred | | | 114,486 | | | | 1,906,324 | | | | 1,670,390 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 31,698,308 | | | $ | 41,821,891 | |
| | | | | | | | | | | | | | | | |
| (5) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (6) | Share amount represents shares of the issuer previously held that resulted in receipt of the escrow. |
| (7) | 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 Growth Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Capital Goods | | $ | 106,807,522 | | | $ | 93,094,991 | | | $ | — | | | $ | 13,712,531 | |
Commercial & Professional Services | | | 24,722,823 | | | | 18,592,774 | | | | — | | | | 6,130,049 | |
Consumer Durables & Apparel | | | 34,746,318 | | | | 34,746,318 | | | | — | | | | — | |
Consumer Services | | | 102,748,586 | | | | 97,421,915 | | | | — | | | | 5,326,671 | |
Diversified Financials | | | 58,133,175 | | | | 58,133,175 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 15,910,990 | | | | 15,910,990 | | | | — | | | | — | |
Health Care Equipment & Services | | | 120,345,134 | | | | 120,345,134 | | | | — | | | | — | |
Media & Entertainment | | | 173,869,026 | | | | 173,869,026 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 192,412,321 | | | | 170,162,534 | | | | 22,249,787 | | | | — | |
Real Estate | | | 133,591 | | | | — | | | | — | | | | 133,591 | |
Retailing | | | 222,599,361 | | | | 219,406,104 | | | | — | | | | 3,193,257 | |
Semiconductors & Semiconductor Equipment | | | 76,508,662 | | | | 76,508,662 | | | | — | | | | — | |
Software & Services | | | 329,180,676 | | | | 329,180,676 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 54,129,146 | | | | 54,129,146 | | | | — | | | | — | |
Transportation | | | 34,955,064 | | | | 34,955,064 | | | | — | | | | — | |
Convertible Preferred Stocks | | | 28,498,506 | | | | — | | | | — | | | | 28,498,506 | |
Escrows | | | 129,224 | | | | — | | | | — | | | | 129,224 | |
Warrants | | | 125,833 | | | | 100,013 | | | | — | | | | 25,820 | |
Short-Term Investments | | | 59,168,484 | | | | 59,168,484 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,635,124,442 | | | $ | 1,555,725,006 | | | $ | 22,249,787 | | | $ | 57,149,649 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, investments valued at $34,516,192 were transferred out of Level 3 due to the expiration of trading restrictions and to the initiation of a vendor providing prices that are based on market activity which has been determined to be significant observable input. Investments valued at $14,811,788 were transferred into Level 3 due to the unavailability of active market pricing. |
The following is a roll-forward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Convertible
Preferred
Stocks | | | Escrows | | | Warrants | | | Total | |
Beginning balance | | $ | 16,246,182 | | | $ | 67,704,294 | | | $ | 267,585 | | | $ | — | | | $ | 84,218,061 | |
Purchases | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales | | | — | | | | — | | | | (179,573 | ) | | | — | | | | (179,573 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | 179,573 | | | | — | | | | 179,573 | |
Net change in unrealized appreciation/depreciation | | | 4,083,677 | | | | (11,206,044 | ) | | | (138,361 | ) | | | (103,280 | ) | | | (7,364,008 | ) |
Transfers into Level 3 | | | 14,682,688 | | | | — | | | | — | | | | 129,100 | | | | 14,811,788 | |
Transfers out of Level 3 | | | (6,516,448 | ) | | | (27,999,744 | ) | | | — | | | | — | | | | (34,516,192 | ) |
| | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 28,496,099 | | | $ | 28,498,506 | | | $ | 129,224 | | | $ | 25,820 | | | $ | 57,149,649 | |
| | | | | | | | | | | | | | | | | | | | |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2019 was $(7,225,648).
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% | |
| | | | Biotechnology - 23.5% | |
| | 18,800 | | | 89bio, Inc.*(1) | | $ | 494,252 | |
| | 16,942 | | | Aimmune Therapeutics, Inc.* | | | 567,049 | |
| | 124,441 | | | Alkermes plc* | | | 2,538,596 | |
| | 18,777 | | | Alnylam Pharmaceuticals, Inc.* | | | 2,162,547 | |
| | 30,549 | | | Apellis Pharmaceuticals, Inc.* | | | 935,410 | |
| | 27,162 | | | Arena Pharmaceuticals, Inc.* | | | 1,233,698 | |
| | 3,200 | | | Argenx SE ADR* | | | 513,664 | |
| | 29,403 | | | Assembly Biosciences, Inc.* | | | 601,585 | |
| | 12,478 | | | Audentes Therapeutics, Inc.* | | | 746,684 | |
| | 8,595 | | | Biogen, Inc.* | | | 2,550,394 | |
| | 19,940 | | | Bluebird Bio, Inc.* | | | 1,749,735 | |
| | 45,283 | | | Coherus Biosciences, Inc.* | | | 815,320 | |
| | 23,800 | | | Constellation Pharmaceuticals, Inc.*(1) | | | 1,121,218 | |
| | 89,365 | | | Forty Seven, Inc.* | | | 3,518,300 | |
| | 58,907 | | | G1 Therapeutics, Inc.* | | | 1,556,912 | |
| | 6,005 | | | Galapagos N.V.* | | | 1,250,526 | |
| | 9,321 | | | Genmab A/S* | | | 2,073,023 | |
| | 26,676 | | | Genus plc | | | 1,123,608 | |
| | 34,097 | | | Global Blood Therapeutics, Inc.* | | | 2,710,371 | |
| | 70,077 | | | GlycoMimetics, Inc.*(1) | | | 370,707 | |
| | 34,700 | | | Heron Therapeutics, Inc.* | | | 815,450 | |
| | 16,727 | | | Incyte Corp.* | | | 1,460,602 | |
| | 144,560 | | | Ironwood Pharmaceuticals, Inc.* | | | 1,924,094 | |
| | 16,600 | | | Kodiak Sciences, Inc.* | | | 1,194,370 | |
| | 14,897 | | | Madrigal Pharmaceuticals, Inc.* | | | 1,357,266 | |
| | 102,883 | | | Momenta Pharmaceuticals, Inc.* | | | 2,029,882 | |
| | 38,566 | | | Myovant Sciences Ltd.* | | | 598,544 | |
| | 79,777 | | | PhaseBio Pharmaceuticals, Inc.*(1) | | | 487,437 | |
| | 85,232 | | | Portola Pharmaceuticals, Inc.* | | | 2,035,340 | |
| | 23,544 | | | Radius Health, Inc.* | | | 474,647 | |
| | 308,230 | | | Rigel Pharmaceuticals, Inc.* | | | 659,612 | |
| | 34,340 | | | Seattle Genetics, Inc.* | | | 3,923,688 | |
| | 129,420 | | | Syndax Pharmaceuticals, Inc.* | | | 1,136,308 | |
| | 29,943 | | | UroGen Pharma Ltd.*(1) | | | 999,198 | |
| | 23,788 | | | Vertex Pharmaceuticals, Inc.* | | | 5,208,383 | |
| | 36,147 | | | Zai Lab Ltd. ADR* | | | 1,503,354 | |
| | 10,903 | | | Zealand Pharma A/S ADR*(1) | | | 361,980 | |
| | | | | | | | |
| | | | | | | 54,803,754 | |
| | | | | | | | |
| | | | Health Care Distributors - 0.5% | |
| | 305,600 | | | Sinopharm Group Co., Ltd. Class H | | | 1,115,099 | |
| | | | | | | | |
| | | | Health Care Equipment - 23.6% | |
| | 120,128 | | | Abbott Laboratories | | | 10,434,318 | |
| | 37,567 | | | AtriCure, Inc.* | | | 1,221,303 | |
| | 38,446 | | | Baxter International, Inc. | | | 3,214,855 | |
| | 8,261 | | | Becton Dickinson and Co. | | | 2,246,744 | |
| | 168,437 | | | Boston Scientific Corp.* | | | 7,616,721 | |
| | 39,497 | | | Danaher Corp. | | | 6,062,000 | |
| | 17,719 | | | Edwards Lifesciences Corp.* | | | 4,133,665 | |
| | 17,204 | | | Envista Holdings Corp. | | | 509,920 | |
| | 10,064 | | | Hill-Rom Holdings, Inc. | | | 1,142,566 | |
| | 85,203 | | | Medtronic plc | | | 9,666,280 | |
| | 31,538 | | | NuVasive, Inc.* | | | 2,439,149 | |
| | 12,800 | | | Shockwave Medical, Inc.*(1) | | | 562,176 | |
| | 133,687 | | | Smith & Nephew plc | | | 3,221,955 | |
| | 33,500 | | | Venus MedTech Hangzhou, Inc. Class H*(4) | | | 161,217 | |
| | 15,582 | | | Zimmer Biomet Holdings, Inc. | | | 2,332,314 | |
| | | | | | | | |
| | | | | | | 54,965,183 | |
| | | | | | | | |
| | | | Health Care Facilities - 3.9% | |
| | 51,299 | | | Acadia Healthcare Co., Inc.* | | | 1,704,153 | |
| | 24,542 | | | Encompass Health Corp. | | | 1,700,024 | |
| | 32,468 | | | HCA Healthcare, Inc. | | | 4,799,095 | |
| | 41,357 | | | NMC Health plc | | | 968,968 | |
| | | | | | | | |
| | | | | | | 9,172,240 | |
| | | | | | | | |
| | | | Health Care Services - 0.9% | |
| | 6,930 | | | Amedisys, Inc.* | | | 1,156,756 | |
| | 69,972 | | | R1 RCM, Inc.* | | | 908,236 | |
| | | | | | | | |
| | | | | | | 2,064,992 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Health Care Supplies - 0.1% | |
| | 3,236 | | | Alcon, Inc.* | | $ | 183,292 | |
| | | | | | | | |
| | | | Health Care Technology - 1.2% | |
| | 53,545 | | | HMS Holdings Corp.* | | | 1,584,932 | |
| | 15,590 | | | Teladoc Health, Inc.* | | | 1,305,195 | |
| | | | | | | | |
| | | | | | | 2,890,127 | |
| | | | | | | | |
| | | | Life Sciences Tools & Services - 8.4% | |
| | 8,203 | | | Bio-Techne Corp. | | | 1,800,641 | |
| | 13,155 | | | ICON plc* | | | 2,265,686 | |
| | 164,900 | | | Pharmaron Beijing Co., Ltd. Class H*(4) | | | 920,543 | |
| | 17,500 | | | PRA Health Sciences, Inc.* | | | 1,945,125 | |
| | 48,900 | | | QIAGEN N.V.* | | | 1,666,184 | |
| | 4,892 | | | Tecan Group AG | | | 1,374,387 | |
| | 26,076 | | | Thermo Fisher Scientific, Inc. | | | 8,471,310 | |
| | 90,102 | | | WuXi AppTec Co., Ltd. Class H(4) | | | 1,117,109 | |
| | | | | | | | |
| | | | | | | 19,560,985 | |
| | | | | | | | |
| | | | Managed Health Care - 10.1% | |
| | 21,952 | | | Anthem, Inc. | | | 6,630,163 | |
| | 10,452 | | | Humana, Inc. | | | 3,830,867 | |
| | 7,080 | | | Molina Healthcare, Inc.* | | | 960,685 | |
| | 75,000 | | | Notre Dame Intermedica Participacoes S.A. | | | 1,272,466 | |
| | 24,679 | | | UnitedHealth Group, Inc. | | | 7,255,133 | |
| | 10,773 | | | WellCare Health Plans, Inc.* | | | 3,557,352 | |
| | | | | | | | |
| | | | | | | 23,506,666 | |
| | | | | | | | |
| | | | Pharmaceuticals - 26.8% | |
| | 90,430 | | | Amneal Pharmaceuticals, Inc.* | | | 435,873 | |
| | 127,100 | | | AstraZeneca plc ADR | | | 6,337,206 | |
| | 160,414 | | | Bristol-Myers Squibb Co. | | | 10,296,975 | |
| | 15,395 | | | Chugai Pharmaceutical Co., Ltd. | | | 1,417,806 | |
| | 33,445 | | | Daiichi Sankyo Co., Ltd. | | | 2,208,850 | |
| | 33,577 | | | Dermira, Inc.*(1) | | | 509,027 | |
| | 39,709 | | | Eisai Co., Ltd. | | | 2,971,264 | |
| | 40,788 | | | Elanco Animal Health, Inc.* | | | 1,201,207 | |
| | 63,045 | | | Eli Lilly & Co. | | | 8,286,004 | |
| | 8,400 | | | Hikma Pharmaceuticals plc | | | 221,526 | |
| | 18,608 | | | Hutchison China MediTech Ltd. ADR* | | | 466,503 | |
| | 21,711 | | | Laboratorios Farmaceuticos Rovi S.A. | | | 594,219 | |
| | 152,273 | | | MediWound Ltd.* | | | 472,046 | |
| | 101,495 | | | Mylan N.V.* | | | 2,040,050 | |
| | 26,849 | | | MyoKardia, Inc.* | | | 1,956,889 | |
| | 15,472 | | | Novartis AG | | | 1,465,037 | |
| | 45,983 | | | Odonate Therapeutics, Inc.* | | | 1,492,148 | |
| | 48,376 | | | Ono Pharmaceutical Co., Ltd. | | | 1,104,439 | |
| | 323,708 | | | Pfizer, Inc. | | | 12,682,880 | |
| | 45,723 | | | Revance Therapeutics, Inc.* | | | 742,084 | |
| | 21,718 | | | Satsuma Pharmaceuticals, Inc.* | | | 427,410 | |
| | 12,719 | | | Takeda Pharmaceutical Co., Ltd. | | | 503,064 | |
| | 60,083 | | | Teva Pharmaceutical Industries Ltd. ADR* | | | 588,813 | |
| | 32,764 | | | Theravance Biopharma, Inc.* | | | 848,260 | |
| | 41,042 | | | Tricida, Inc.* | | | 1,548,925 | |
| | 19,057 | | | UCB S.A. | | | 1,516,453 | |
| | 36,134 | | | WaVe Life Sciences Ltd.*(1) | | | 289,614 | |
| | | | | | | | |
| | | | | | | 62,624,572 | |
| | | | | | | | |
| | | | Total Common Stocks
(cost $175,068,460) | | $ | 230,886,910 | |
| | | | | | | | |
|
| RIGHTS - 0.0% | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 0.0% | |
| | 11,725 | | | Clementia Pharmaceuticals, Inc.*(2)(3) | | $ | 15,829 | |
| | | | | | | | |
| | |
| | | | Total Rights
(cost $15,829) | | $ | 15,829 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $175,084,289) | | $ | 230,902,739 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| SHORT-TERM INVESTMENTS - 2.7% | |
| | | | Other Investment Pools & Funds - 1.4% | |
| | 3,380,267 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(5) | | $ | 3,380,267 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 1.3% | |
| | 148,927 | | | Citibank NA DDCA, 1.54%, 1/2/2020(5) | | | 148,927 | |
| | 722,155 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(5) | | | 722,155 | |
| | 665,511 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class,
1.75%(5) | | | 665,511 | |
| | 332,756 | | | JPMorgan Prime Money Market Fund, 1.69%(5) | | | 332,756 | |
| | 887,348 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(5) | | | 887,348 | |
| | 221,837 | | | State Street Institutional Liquid Reserves Fund, 1.70%(5) | | | 221,837 | |
| | | | | | | | |
| | | | | | | 2,978,534 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $6,358,801) | | $ | 6,358,801 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $181,443,090) | | | 101.7 | % | | $ | 237,261,540 | |
| | | | Other Assets and Liabilities | | | (1.7 | )% | | | (4,009,815 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 233,251,725 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Investment valued using significant unobservable inputs. |
| (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, 2019, the aggregate fair value of this security was $15,829, 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. |
| (4) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $2,198,869, representing 0.9% of net assets. |
| (5) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Biotechnology | | $ | 54,803,754 | | | $ | 50,356,597 | | | $ | 4,447,157 | | | $ | — | |
Health Care Distributors | | | 1,115,099 | | | | — | | | | 1,115,099 | | | | — | |
Health Care Equipment | | | 54,965,183 | | | | 51,743,228 | | | | 3,221,955 | | | | — | |
Health Care Facilities | | | 9,172,240 | | | | 8,203,272 | | | | 968,968 | | | | — | |
Health Care Services | | | 2,064,992 | | | | 2,064,992 | | | | — | | | | — | |
Health Care Supplies | | | 183,292 | | | | — | | | | 183,292 | | | | — | |
Health Care Technology | | | 2,890,127 | | | | 2,890,127 | | | | — | | | | — | |
Life Sciences Tools & Services | | | 19,560,985 | | | | 15,403,305 | | | | 4,157,680 | | | | — | |
Managed Health Care | | | 23,506,666 | | | | 23,506,666 | | | | — | | | | — | |
Pharmaceuticals | | | 62,624,572 | | | | 51,216,133 | | | | 11,408,439 | | | | — | |
Rights | | | 15,829 | | | | — | | | | — | | | | 15,829 | |
Short-Term Investments | | | 6,358,801 | | | | 6,358,801 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 237,261,540 | | | $ | 211,743,121 | | | $ | 25,502,590 | | | $ | 15,829 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
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, 2019 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 0.9% | |
| | | | Consumer Services - 0.3% | |
| | | 58,800 | | | Caesars Entertainment Corp.* | | $ | 799,680 | |
| | | | | | | | | | |
| | | | Diversified Financials - 0.3% | |
| | | 16,000 | | | OneMain Holdings, Inc. | | | 674,400 | |
| | | | | | | | | | |
| | | | Energy - 0.3% | |
| | | 206,275,142 | | | KCA Deutag*(1)(2)(3) | | | 801,379 | |
| | | | | | | | | | |
| | |
| | | Total Common Stocks
(cost $4,146,614) | | $ | 2,275,459 | |
| | | | | | | | | | |
|
| CORPORATE BONDS - 89.1% | |
| | | | Advertising - 0.1% | |
| $ | | | 135,000 | | | Outfront Media Capital LLC
4.63%, 03/15/2030(4) | | $ | 137,363 | |
| | | | | | | | | | |
| | | | Aerospace/Defense - 1.9% | |
| | | DAE Funding LLC | |
| | | 370,000 | | | 4.50%, 08/01/2022(4) | | | 375,550 | |
| | | 760,000 | | | 5.00%, 08/01/2024(4) | | | 797,955 | |
| | | TransDigm, Inc. | |
| | | 1,265,000 | | | 5.50%, 11/15/2027(4) | | | 1,279,206 | |
| | | 2,205,000 | | | 6.25%, 03/15/2026(4) | | | 2,387,155 | |
| | | | | | | | | | |
| | | 4,839,866 | |
| | | | | | | | | | |
| | | | Airlines - 1.1% | |
| | | Bombardier, Inc. | |
| | | 1,785,000 | | | 6.13%, 01/15/2023(4) | | | 1,830,517 | |
| | | 870,000 | | | 7.88%, 04/15/2027(4) | | | 895,013 | |
| | | | | | | | | | |
| | | 2,725,530 | |
| | | | | | | | | | |
| | | | Auto Parts & Equipment - 1.1% | |
| | | Adient Global Holdings Ltd. | |
| EUR | | | 950,000 | | | 3.50%, 08/15/2024(5) | | | 1,007,307 | |
| $ | | | 400,000 | | | 4.88%, 08/15/2026(4) | | | 357,000 | |
| | | 200,000 | | | Adient U.S. LLC
7.00%, 05/15/2026(4) | | | 218,000 | |
| | | American Axle & Manufacturing, Inc. | |
| | | 155,000 | | | 6.25%, 04/01/2025 | | | 161,394 | |
| | | 420,000 | | | 6.50%, 04/01/2027 | | | 435,750 | |
| | | 625,000 | | | Panther BF Aggregator 2 L.P. / Panther Finance Co., Inc. 8.50%, 05/15/2027(4) | | | 664,062 | |
| | | | | | | | | | |
| | | 2,843,513 | |
| | | | | | | | | | |
| | | | Chemicals - 0.5% | |
| | | CF Industries, Inc. | |
| | | 140,000 | | | 4.95%, 06/01/2043 | | | 145,950 | |
| | | 767,000 | | | 5.15%, 03/15/2034 | | | 857,123 | |
| | | 220,000 | | | 5.38%, 03/15/2044 | | | 239,800 | |
| | | | | | | | | | |
| | | 1,242,873 | |
| | | | | | | | | | |
| | | | Coal - 0.0% | |
| | | 1,520,000 | | | Foresight Energy LLC / Foresight Energy Finance Corp. 11.50%, 04/01/2023(4) | | | 53,200 | |
| | | | | | | | | | |
| | | | Commercial Banks - 2.1% | |
| EUR | | | 1,400,000 | | | Banco de Sabadell S.A.
6.50%, 05/18/2022, (6.50% fixed rate until 05/18/2022; 5 year EUR Swap + 6.414% thereafter)(5)(6)(7) | | | 1,641,047 | |
| $ | | | 2,135,000 | | | Credit Suisse Group AG
6.25%, 12/18/2024, (6.25% fixed rate until 12/18/2024; 5 year USD Swap + 3.455% thereafter)(5)(6)(7) | | | 2,322,346 | |
| | | 1,265,000 | | | Freedom Mortgage Corp.
8.13%, 11/15/2024(4) | | | 1,242,888 | |
| | | | | | | | | | |
| | | | | | | | | 5,206,281 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | | | Commercial Services - 2.8% | |
| | | | | | APX Group, Inc. | |
| $ | | | 1,415,000 | | | 7.63%, 09/01/2023 | | $ | 1,330,100 | |
| | | 860,000 | | | 7.88%, 12/01/2022 | | | 867,525 | |
| | | 1,190,000 | | | Ashtead Capital, Inc.4.00%, 05/01/2028(4) | | | 1,201,900 | |
| | | 614,000 | | | Brand Industrial Services, Inc.
8.50%, 07/15/2025(4) | | | 629,350 | |
| | | 75,000 | | | Cardtronics, Inc. / Cardtronics USA, Inc.
5.50%, 05/01/2025(4) | | | 77,813 | |
| | | 1,240,000 | | | Herc Holdings, Inc.5.50%, 07/15/2027(4) | | | 1,305,100 | |
| | | | | | Service Corp. International | |
| | | 385,000 | | | 4.63%, 12/15/2027 | | | 401,362 | |
| | | 270,000 | | | 5.13%, 06/01/2029 | | | 286,875 | |
| | | | | | United Rentals North America, Inc. | |
| | | 440,000 | | | 4.63%, 10/15/2025 | | | 452,364 | |
| | | 555,000 | | | 5.88%, 09/15/2026 | | | 595,376 | |
| | | | | | | | | | |
| | | | | | | | | 7,147,765 | |
| | | | | | | | | | |
| | | | | | Construction Materials - 0.9% | |
| | | 615,000 | | | Norbord, Inc.5.75%, 07/15/2027(4) | | | 638,063 | |
| | | 1,605,000 | | | Standard Industries, Inc.5.38%, 11/15/2024(4) | | | 1,649,137 | |
| | | | | | | | | | |
| | | | | | | | | 2,287,200 | |
| | | | | | | | | | |
| | | | | | Distribution/Wholesale - 1.0% | |
| | | 853,000 | | | American Builders & Contractors Supply Co., Inc. 4.00%, 01/15/2028(4) | | | 865,795 | |
| | | 735,000 | | | Core & Main Holdings L.P. (8.63% Cash, 9.38% PIK) 8.63%, 09/15/2024(4)(8) | | | 764,400 | |
| | | 465,000 | | | IAA, Inc. 5.50%, 06/15/2027(4) | | | 494,063 | |
| | | 395,000 | | | Performance Food Group, Inc.
5.50%, 10/15/2027(4) | | | 422,156 | |
| | | | | | | | | | |
| | | | | | | | | 2,546,414 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 4.5% | |
| | | 1,145,000 | | | Ally Financial, Inc. 3.88%, 05/21/2024 | | | 1,199,387 | |
| | | | | | Credit Acceptance Corp. | |
| | | 685,000 | | | 5.13%, 12/31/2024(4) | | | 711,345 | |
| | | 655,000 | | | 6.63%, 03/15/2026(4) | | | 708,219 | |
| | | 620,000 | | | Fly Leasing Ltd. 5.25%, 10/15/2024 | | | 646,350 | |
| | | 935,000 | | | goeasy Ltd. 5.38%, 12/01/2024(4) | | | 952,139 | |
| | | | | | Navient Corp. | |
| | | 331,000 | | | 5.88%, 10/25/2024 | | | 354,170 | |
| | | 240,000 | | | 6.13%, 03/25/2024 | | | 260,400 | |
| | | 815,000 | | | 6.50%, 06/15/2022 | | | 883,256 | |
| | | 197,000 | | | 7.25%, 09/25/2023 | | | 222,616 | |
| | | | | | Springleaf Finance Corp. | |
| | | 300,000 | | | 6.13%, 03/15/2024 | | | 328,500 | |
| | | 410,000 | | | 6.88%, 03/15/2025 | | | 466,375 | |
| | | 675,000 | | | 7.75%, 10/01/2021 | | | 733,219 | |
| | | 1,730,000 | | | 8.25%, 12/15/2020 | | | 1,815,202 | |
| | | 2,040,000 | | | Tempo Acquisition LLC / Tempo Acquisition Finance Corp. 6.75%, 06/01/2025(4) | | | 2,106,300 | |
| | | | | | | | | | |
| | | | | | | | | 11,387,478 | |
| | | | | | | | | | |
| | | | | | Electric - 1.2% | |
| | | 1,730,000 | | | AES Corp. 5.13%, 09/01/2027 | | | 1,846,775 | |
| | | 555,000 | | | Clearway Energy Operating LLC
4.75%, 03/15/2028(4) | | | 562,631 | |
| | | 700,000 | | | NextEra Energy Operating Partners L.P.
4.25%, 07/15/2024(4) | | | 728,875 | |
| | | | | | | | | | |
| | | | | | | | | 3,138,281 | |
| | | | | | | | | | |
| | | | | | Entertainment - 3.0% | |
| | | 1,150,000 | | | Caesars Resort Collection LLC / CRC Finco, Inc. 5.25%, 10/15/2025(4) | | | 1,190,250 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | | | Entertainment - 3.0% - (continued) | |
| | | | | | Eldorado Resorts, Inc. | |
| $ | | | 1,350,000 | | | 6.00%, 04/01/2025 | | $ | 1,417,500 | |
| | | 195,000 | | | 6.00%, 09/15/2026 | | | 214,744 | |
| | | 650,000 | | | Golden Entertainment, Inc. 7.63%, 04/15/2026(4) | | | 689,000 | |
| | | 1,655,000 | | | Jacobs Entertainment, Inc. 7.88%, 02/01/2024(4) | | | 1,758,437 | |
| | | 1,880,000 | | | Penn National Gaming, Inc. 5.63%, 01/15/2027(4) | | | 1,986,793 | |
| | | 325,000 | | | WMG Acquisition Corp. 5.00%,
08/01/2023(4) | | | 332,313 | |
| | | | | | | | | | |
| | | | | | | | | 7,589,037 | |
| | | | | | | | | | |
| | | | | | Environmental Control - 1.8% | |
| | | | | | Clean Harbors, Inc. | |
| | | 984,000 | | | 4.88%, 07/15/2027(4) | | | 1,035,660 | |
| | | 442,000 | | | 5.13%, 07/15/2029(4) | | | 474,089 | |
| | | 745,000 | | | Stericycle, Inc. 5.38%, 07/15/2024(4) | | | 782,250 | |
| | | 2,107,000 | | | Tervita Corp. 7.63%, 12/01/2021(4) | | | 2,120,169 | |
| | | | | | | | | | |
| | | | | | | | | 4,412,168 | |
| | | | | | | | | | |
| | | | | | Food - 2.4% | |
| | | 535,000 | | | B&G Foods, Inc. 5.25%, 09/15/2027 | | | 540,350 | |
| | | | | | Post Holdings, Inc. | |
| | | 1,705,000 | | | 5.00%, 08/15/2026(4) | | | 1,800,906 | |
| | | 1,151,000 | | | 5.63%, 01/15/2028(4) | | | 1,240,202 | |
| | | 660,000 | | | 5.75%, 03/01/2027(4) | | | 707,850 | |
| | | 1,665,000 | | | TreeHouse Foods, Inc. 4.88%, 03/15/2022 | | | 1,671,244 | |
| | | | | | | | | | |
| | | | | | | | | 5,960,552 | |
| | | | | | | | | | |
| | | | | | Gas - 0.8% | |
| | | | | | AmeriGas Partners L.P. / AmeriGas Finance Corp. | | | | |
| | | 307,000 | | | 5.50%, 05/20/2025 | | | 331,560 | |
| | | 364,000 | | | 5.75%, 05/20/2027 | | | 399,490 | |
| | | 1,219,000 | | | 5.88%, 08/20/2026 | | | 1,343,947 | |
| | | | | | | | | | |
| | | | | | | | | 2,074,997 | |
| | | | | | | | | | |
| | | | | | Healthcare-Products - 1.3% | |
| | | 2,380,000 | | | Avantor, Inc. 6.00%, 10/01/2024(4) | | | 2,537,627 | |
| | | 750,000 | | | Hill-Rom Holdings, Inc. 4.38%,
09/15/2027(4) | | | 771,563 | |
| | | | | | | | | | |
| | | | | | | | | 3,309,190 | |
| | | | | | | | | | |
| | | | | | Healthcare-Services - 3.8% | |
| | | 195,000 | | | Catalent Pharma Solutions, Inc. 5.00%, 07/15/2027(4) | | | 204,263 | |
| | | | | | Centene Corp. | |
| | | 340,000 | | | 4.25%, 12/15/2027(4) | | | 349,775 | |
| | | 360,000 | | | 4.63%, 12/15/2029(4) | | | 378,486 | |
| | | 230,000 | | | Charles River Laboratories International, Inc. 4.25%, 05/01/2028(4) | | | 234,312 | |
| | | 700,000 | | | CHS/Community Health Systems, Inc.
8.13%, 06/30/2024(4) | | | 574,000 | |
| | | 1,835,000 | | | HCA Healthcare, Inc. 6.25%, 02/15/2021 | | | 1,912,987 | |
| | | HCA, Inc. | |
| | | 670,000 | | | 5.25%, 06/15/2026 | | | 750,623 | |
| | | 1,085,000 | | | 5.38%, 02/01/2025 | | | 1,199,826 | |
| | | 1,430,000 | | | 5.38%, 09/01/2026 | | | 1,592,662 | |
| | | 130,000 | | | 5.63%, 09/01/2028 | | | 148,148 | |
| | | 105,000 | | | 5.88%, 02/01/2029 | | | 121,406 | |
| | | 754,000 | | | 7.50%, 11/15/2095 | | | 878,410 | |
| | | 1,150,000 | | | West Street Merger Sub, Inc.
6.38%, 09/01/2025(4) | | | 1,147,125 | |
| | | | | | | | | | |
| | | 9,492,023 | |
| | | | | | | | | | |
| | | | Home Builders - 1.6% | |
| | | 290,000 | | | KB Home 4.80%, 11/15/2029 | | | 296,525 | |
| | | M/I Homes, Inc. | |
| | | 150,000 | | | 5.63%, 08/01/2025 | | | 157,125 | |
| | | 2,115,000 | | | 6.75%, 01/15/2021 | | | 2,117,644 | |
| | | 1,325,000 | | | Taylor Morrison Communities, Inc.
5.75%, 01/15/2028(4) | | | 1,444,250 | |
| | | | | | | | | | |
| | | 4,015,544 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | Household Products - 0.2% | |
| $ | | | 1,170,000 | | | Revlon Consumer Products Corp.
6.25%, 08/01/2024 | | $ | 555,750 | |
| | | | | | | | | | |
| | | | Household Products/Wares - 0.8% | |
| EUR | | | 1,320,000 | | | Diamond (BC) B.V. 5.63%, 08/15/2025(5) | | | 1,453,992 | |
| $ | | | 465,000 | | | Prestige Brands, Inc. 5.13%,
01/15/2028(4) | | | 487,088 | |
| | | | | | | | | | |
| | | 1,941,080 | |
| | | | | | | | | | |
| | | | Insurance - 2.0% | |
| | | Acrisure LLC / Acrisure Finance, Inc. | |
| | | 1,225,000 | | | 7.00%, 11/15/2025(4) | | | 1,182,125 | |
| | | 1,090,000 | | | 8.13%, 02/15/2024(4) | | | 1,185,375 | |
| | | 650,000 | | | 10.13%, 08/01/2026(4) | | | 700,375 | |
| | | 410,000 | | | CNO Financial Group, Inc. 5.25%, 05/30/2029 | | | 457,662 | |
| | | Genworth Holdings, Inc. | |
| | | 110,000 | | | 4.80%, 02/15/2024 | | | 107,504 | |
| | | 770,000 | | | 4.90%, 08/15/2023 | | | 762,300 | |
| | | 440,000 | | | 7.20%, 02/15/2021 | | | 453,200 | |
| | | 245,000 | | | 7.63%, 09/24/2021 | | | 258,083 | |
| | | 35,000 | | | 7.70%, 06/15/2020 | | | 35,796 | |
| | | | | | | | | | |
| | | 5,142,420 | |
| | | | | | | | | | |
| | | | Iron/Steel - 0.6% | |
| | | Steel Dynamics, Inc. | |
| | | 230,000 | | | 4.13%, 09/15/2025 | | | 236,363 | |
| | | 1,130,000 | | | 5.50%, 10/01/2024 | | | 1,164,023 | |
| | | | | | | | | | |
| | | 1,400,386 | |
| | | | | | | | | | |
| | | | Lodging - 3.4% | |
| | | Boyd Gaming Corp. | |
| | | 105,000 | | | 4.75%, 12/01/2027(4) | | | 109,069 | |
| | | 790,000 | | | 6.00%, 08/15/2026 | | | 847,275 | |
| | | 920,000 | | | 6.38%, 04/01/2026 | | | 989,862 | |
| | | 1,935,000 | | | FelCor Lodging L.P. 6.00%, 06/01/2025 | | | 2,022,075 | |
| | | 1,587,000 | | | Hilton Domestic Operating Co., Inc.
4.25%, 09/01/2024 | | | 1,616,756 | |
| | | 116,000 | | | Jack Ohio Finance LLC / Jack Ohio Finance Corp.
6.75%, 11/15/2021(4) | | | 118,320 | |
| | | 1,585,000 | | | Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp.
5.88%, 05/15/2025(4) | | | 1,585,000 | |
| | | 1,280,000 | | | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.5.50%, 03/01/2025(4) | | | 1,369,600 | |
| | | | | | | | | | |
| | | 8,657,957 | |
| | | | | | | | | | |
| | | | Media - 9.5% | |
| | | Altice France S.A. | |
| | | 2,370,000 | | | 7.38%, 05/01/2026(4) | | | 2,544,527 | |
| | | 1,040,000 | | | 8.13%, 02/01/2027(4) | | | 1,171,300 | |
| | | Altice Luxembourg S.A. | |
| | | 1,000,000 | | | 7.63%, 02/15/2025(4) | | | 1,038,750 | |
| EUR | | | 645,000 | | | 8.00%, 05/15/2027(5) | | | 810,316 | |
| | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| $ | | | 120,000 | | | 5.13%, 02/15/2023 | | | 121,350 | |
| | | 245,000 | | | 5.13%, 05/01/2023(4) | | | 250,054 | |
| | | 95,000 | | | 5.25%, 09/30/2022 | | | 96,069 | |
| | | 545,000 | | | 5.75%, 09/01/2023 | | | 555,219 | |
| | | 16,000 | | | 5.75%, 01/15/2024 | | | 16,280 | |
| | | 3,000,000 | | | 5.75%, 02/15/2026(4) | | | 3,165,060 | |
| | | CSC Holdings LLC | |
| | | 1,195,000 | | | 5.25%, 06/01/2024 | | | 1,287,612 | |
| | | 585,000 | | | 5.50%, 04/15/2027(4) | | | 628,202 | |
| | | 1,490,000 | | | 6.50%, 02/01/2029(4) | | | 1,661,350 | |
| | | DISH DBS Corp. | |
| | | 905,000 | | | 5.00%, 03/15/2023 | | | 928,394 | |
| | | 595,000 | | | 5.88%, 07/15/2022 | | | 630,700 | |
| | | 435,000 | | | 5.88%, 11/15/2024 | | | 444,516 | |
| | | 945,000 | | | 6.75%, 06/01/2021 | | | 994,565 | |
| | | 380,000 | | | 7.75%, 07/01/2026 | | | 402,568 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | Media - 9.5% - (continued) | |
| | | Gray Television, Inc. | |
| $ | | | 1,255,000 | | | 5.13%, 10/15/2024(4) | | $ | 1,302,062 | |
| | | 380,000 | | | 5.88%, 07/15/2026(4) | | | 404,225 | |
| | | 645,000 | | | iHeartCommunications, Inc. 5.25%, 08/15/2027(4) | | | 674,864 | |
| | | 310,000 | | | LCPR Senior Secured Financing DAC
6.75%, 10/15/2027(4) | | | 328,600 | |
| | | 270,000 | | | Sinclair Television Group, Inc. 5.63%, 08/01/2024(4) | | | 277,763 | |
| | | Sirius XM Radio, Inc. | |
| | | 520,000 | | | 4.63%, 07/15/2024(4) | | | 546,000 | |
| | | 1,120,000 | | | 5.50%, 07/01/2029(4) | | | 1,210,989 | |
| | | 817,000 | | | WMG Acquisition Corp.
5.50%, 04/15/2026(4) | | | 859,893 | |
| | | 1,328,000 | | | Ziggo B.V. 5.50%, 01/15/2027(4) | | | 1,411,000 | |
| | | | | | | | | | |
| | | 23,762,228 | |
| | | | | | | | | | |
| | | | Metal Fabricate/Hardware - 0.8% | |
| | | 215,000 | | | Advanced Drainage Systems, Inc.
5.00%, 09/30/2027(4) | | | 221,719 | |
| | | Novelis Corp. | |
| | | 605,000 | | | 5.88%, 09/30/2026(4) | | | 643,784 | |
| | | 1,115,000 | | | 6.25%, 08/15/2024(4) | | | 1,169,356 | |
| | | | | | | | | | |
| | | 2,034,859 | |
| | | | | | | | | | |
| | | | Mining - 0.2% | |
| | | 520,000 | | | Constellium SE 5.88%, 02/15/2026(4) | | | 549,900 | |
| | | | | | | | | | |
| | | | Office/Business Equipment - 0.8% | |
| | | Xerox Corp. | |
| | | 1,600,000 | | | 4.13%, 03/15/2023 | | | 1,658,000 | |
| | | 65,000 | | | 4.80%, 03/01/2035 | | | 59,971 | |
| | | 275,000 | | | 6.75%, 12/15/2039 | | | 290,125 | |
| | | | | | | | | | |
| | | 2,008,096 | |
| | | | | | | | | | |
| | | | | | Oil & Gas - 7.5% | |
| | | 875,000 | | | California Resources Corp. 8.00%, 12/15/2022(4) | | | 376,250 | |
| | | 725,000 | | | Centennial Resource Production LLC
5.38%, 01/15/2026(4) | | | 712,313 | |
| | | 2,156,000 | | | Chesapeake Energy Corp. 11.50%, 01/01/2025(4) | | | 2,037,420 | |
| | | 1,225,000 | | | Energen Corp. 4.63%, 09/01/2021 | | | 1,253,775 | |
| | | 1,355,000 | | | Jagged Peak Energy LLC 5.88%, 05/01/2026 | | | 1,399,010 | |
| | | 1,120,000 | | | Matador Resources Co. 5.88%, 09/15/2026 | | | 1,122,800 | |
| | | | | | MEG Energy Corp. | |
| | | 220,000 | | | 6.38%, 01/30/2023(4) | | | 220,550 | |
| | | 1,090,000 | | | 6.50%, 01/15/2025(4) | | | 1,133,709 | |
| | | 685,000 | | | 7.00%, 03/31/2024(4) | | | 689,281 | |
| | | 600,000 | | | Noble Holding International Ltd. 7.88%, 02/01/2026(4) | | | 435,000 | |
| | | | | | QEP Resources, Inc. | |
| | | 1,895,000 | | | 5.25%, 05/01/2023 | | | 1,876,050 | |
| | | 205,000 | | | 5.38%, 10/01/2022 | | | 206,025 | |
| | | 150,000 | | | 5.63%, 03/01/2026 | | | 146,288 | |
| | | | | | SM Energy Co. | |
| | | 1,340,000 | | | 5.00%, 01/15/2024 | | | 1,276,350 | |
| | | 275,000 | | | 5.63%, 06/01/2025 | | | 261,022 | |
| | | 240,000 | | | 6.13%, 11/15/2022 | | | 242,400 | |
| | | 420,000 | | | 6.63%, 01/15/2027 | | | 412,799 | |
| | | 945,000 | | | Sunoco L.P. / Sunoco Finance Corp. 6.00%, 04/15/2027 | | | 1,008,788 | |
| | | 1,945,000 | | | Transocean, Inc. 6.80%, 03/15/2038 | | | 1,380,950 | |
| | | 1,275,000 | | | Vine Oil & Gas L.P. / Vine Oil & Gas Finance Corp. 8.75%, 04/15/2023(4) | | | 624,750 | |
| | | | | | WPX Energy, Inc. | |
| | | 1,225,000 | | | 5.25%, 09/15/2024 | | | 1,301,562 | |
| | | 270,000 | | | 5.75%, 06/01/2026 | | | 288,225 | |
| | | 295,000 | | | 8.25%, 08/01/2023 | | | 339,250 | |
| | | | | | | | | | |
| | | | | | | | | 18,744,567 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | | | Packaging & Containers - 4.4% | |
| $ | | | 1,450,000 | | | ARD Finance S.A. (6.50% Cash, 7.25% PIK) 6.50%, 06/30/2027(4)(8) | | $ | 1,499,227 | |
| | | | | | Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. | | | | |
| | | 495,000 | | | 4.13%, 08/15/2026(4) | | | 507,375 | |
| | | 1,440,000 | | | 5.25%, 08/15/2027(4) | | | 1,515,629 | |
| | | 340,000 | | | 6.00%, 02/15/2025(4) | | | 356,575 | |
| | | 949,000 | | | Berry Global, Inc. 6.00%, 10/15/2022 | | | 966,794 | |
| | | 1,015,000 | | | Crown Americas LLC / Crown Americas Capital Corp. 4.75%, 02/01/2026 | | | 1,072,094 | |
| | | | | | Flex Acquisition Co., Inc. | |
| | | 1,875,000 | | | 6.88%, 01/15/2025(4) | | | 1,889,062 | |
| | | 575,000 | | | 7.88%, 07/15/2026(4) | | | 579,313 | |
| | | 535,000 | | | OI European Group B.V. 4.00%,
03/15/2023(4) | | | 539,013 | |
| | | | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu | | | | |
| | | 1,250,000 | | | 5.13%, 07/15/2023(4) | | | 1,279,687 | |
| | | 600,000 | | | 7.00%, 07/15/2024(4) | | | 620,250 | |
| | | 200,000 | | | Trivium Packaging Finance B.V. 5.50%, 08/15/2026(4) | | | 210,750 | |
| | | | | | | | | | |
| | | | | | | | | 11,035,769 | |
| | | | | | | | | | |
| | | | | | Pharmaceuticals - 3.7% | |
| | | | | | Bausch Health Cos., Inc. | |
| | | 1,340,000 | | | 5.00%, 01/30/2028(4) | | | 1,375,363 | |
| | | 690,000 | | | 5.50%, 03/01/2023(4) | | | 693,450 | |
| | | 1,490,000 | | | 5.88%, 05/15/2023(4) | | | 1,503,037 | |
| | | 700,000 | | | 6.13%, 04/15/2025(4) | | | 723,261 | |
| | | 1,225,000 | | | 7.00%, 01/15/2028(4) | | | 1,352,155 | |
| | | 280,000 | | | Catalent Pharma Solutions, Inc. 4.88%, 01/15/2026(4) | | | 289,800 | |
| | | | | | Endo Dac / Endo Finance LLC / Endo Finco, Inc. | | | | |
| | | 725,000 | | | 6.00%, 07/15/2023(4) | | | 523,812 | |
| | | 1,665,000 | | | 6.00%, 02/01/2025(4) | | | 1,122,843 | |
| | | | | | Teva Pharmaceutical Finance Netherlands B.V. | | | | |
| | | 860,000 | | | 3.15%, 10/01/2026 | | | 715,950 | |
| | | 900,000 | | | 6.75%, 03/01/2028 | | | 913,689 | |
| | | | | | | | | | |
| | | | | | | | | 9,213,360 | |
| | | | | | | | | | |
| | | | | | Pipelines - 3.8% | |
| | | 1,684,000 | | | Cheniere Corpus Christi Holdings LLC
5.13%, 06/30/2027 | | | 1,861,123 | |
| | | 530,000 | | | Cheniere Energy Partners L.P. 4.50%, 10/01/2029(4) | | | 544,628 | |
| | | 1,660,000 | | | DCP Midstream Operating L.P. 5.38%, 07/15/2025 | | | 1,805,250 | |
| | | | | | Energy Transfer Operating L.P. | |
| | | 230,000 | | | 4.25%, 03/15/2023 | | | 240,238 | |
| | | 1,773,000 | | | 7.50%, 10/15/2020 | | | 1,842,554 | |
| | | 765,000 | | | Tallgrass Energy Partners L.P. / Tallgrass Energy Finance Corp. 4.75%, 10/01/2023(4) | | | 763,088 | |
| | | 2,280,000 | | | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 6.50%, 07/15/2027(4) | | | 2,496,600 | |
| | | | | | | | | | |
| | | | | | | | | 9,553,481 | |
| | | | | | | | | | |
| | | | | | Real Estate Investment Trusts - 1.1% | |
| | | 1,735,000 | | | Iron Mountain, Inc. 4.88%, 09/15/2029(4) | | | 1,762,413 | |
| | | | | | VICI Properties L.P. / VICI Note Co., Inc. | |
| | | 545,000 | | | 4.25%, 12/01/2026(4) | | | 561,350 | |
| | | 455,000 | | | 4.63%, 12/01/2029(4) | | | 474,337 | |
| | | | | | | | | | |
| | | | | | | | | 2,798,100 | |
| | | | | | | | | | |
| | | | | | Retail - 4.1% | |
| | | | | | 1011778 BC ULC / New Red Finance, Inc. | | | | |
| | | 90,000 | | | 3.88%, 01/15/2028(4) | | | 90,225 | |
| | | 450,000 | | | 4.38%, 01/15/2028(4) | | | 451,125 | |
| | | 2,885,000 | | | 5.00%, 10/15/2025(4) | | | 2,978,762 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | | | Retail - 4.1% - (continued) | |
| | | | | | Beacon Roofing Supply, Inc. | |
| $ | | | 130,000 | | | 4.50%, 11/15/2026(4) | | $ | 133,900 | |
| | | 895,000 | | | 4.88%, 11/01/2025(4) | | | 899,475 | |
| | | 1,465,000 | | | Ferrellgas L.P. / Ferrellgas Finance Corp.
6.75%, 06/15/2023 | | | 1,237,925 | |
| | | | | | KFC Holding Co. / Pizza Hut Holdings LLC / Taco Bell of America LLC | | | | |
| | | 620,000 | | | 4.75%, 06/01/2027(4) | | | 652,550 | |
| | | 750,000 | | | 5.25%, 06/01/2026(4) | | | 791,250 | |
| | | 620,000 | | | Lithia Motors, Inc. 4.63%, 12/15/2027(4) | | | 637,273 | |
| | | 495,000 | | | Party City Holdings, Inc. 6.63%, 08/01/2026(4) | | | 348,975 | |
| | | 1,820,000 | | | United Rentals North America, Inc. 4.88%, 01/15/2028 | | | 1,895,039 | |
| | | 300,000 | | | Yum! Brands, Inc. 4.75%, 01/15/2030(4) | | | 314,250 | |
| | | | | | | | | | |
| | | | | | | | | 10,430,749 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 2.6% | |
| | | 1,345,000 | | | Entegris, Inc. 4.63%, 02/10/2026(4) | | | 1,392,075 | |
| | | | | | Micron Technology, Inc. | |
| | | 185,000 | | | 4.64%, 02/06/2024 | | | 200,779 | |
| | | 910,000 | | | 4.98%, 02/06/2026 | | | 1,010,392 | |
| | | Qorvo, Inc. | |
| | | 795,000 | | | 4.38%, 10/15/2029(4) | | | 832,762 | |
| | | 1,400,000 | | | 5.50%, 07/15/2026 | | | 1,491,000 | |
| | | Sensata Technologies B.V. | |
| | | 1,221,000 | | | 5.00%, 10/01/2025(4) | | | 1,326,311 | |
| | | 235,000 | | | 5.63%, 11/01/2024(4) | | | 261,438 | |
| | | | | | | | | | |
| | | 6,514,757 | |
| | | | | | | | | | |
| | | | Software - 3.4% | |
| | | 595,000 | | | CDK Global, Inc. 5.25%, 05/15/2029(4) | | | 638,138 | |
| | | 980,000 | | | Change Healthcare Holdings LLC / Change Healthcare Finance, Inc. 5.75%, 03/01/2025(4) | | | 1,006,950 | |
| | | 2,075,000 | | | Infor U.S., Inc. 6.50%, 05/15/2022 | | | 2,106,125 | |
| | | IQVIA, Inc. | |
| EUR | | | 390,000 | | | 2.25%, 01/15/2028(4) | | | 451,644 | |
| $ | | | 680,000 | | | 5.00%, 05/15/2027(4) | | | 719,341 | |
| | | 1,460,000 | | | MSCI, Inc. 4.00%, 11/15/2029(4) | | | 1,480,075 | |
| | | 1,370,000 | | | SS&C Technologies, Inc. 5.50%, 09/30/2027(4) | | | 1,462,475 | |
| | | 548,000 | | | Western Digital Corp. 4.75%, 02/15/2026 | | | 571,290 | |
| | | | | | | | | | |
| | | 8,436,038 | |
| | | | | | | | | | |
| | | | Telecommunications - 7.0% | |
| | | Altice Financing S.A. | |
| | | 380,000 | | | 6.63%, 02/15/2023(4) | | | 386,650 | |
| | | 1,725,000 | | | 7.50%, 05/15/2026(4) | | | 1,854,375 | |
| | | 215,000 | | | Altice France S.A. 5.50%, 01/15/2028(4) | | | 220,923 | |
| | | CenturyLink, Inc. | |
| | | 704,000 | | | 5.63%, 04/01/2025 | | | 748,035 | |
| | | 466,000 | | | 7.50%, 04/01/2024 | | | 525,415 | |
| | | 855,000 | | | Embarq Corp. 8.00%, 06/01/2036 | | | 904,163 | |
| | | Frontier Communications Corp. | |
| | | 940,000 | | | 6.88%, 01/15/2025 | | | 455,900 | |
| | | 1,275,000 | | | 8.50%, 04/01/2026(4) | | | 1,290,937 | |
| | | 570,000 | | | 10.50%, 09/15/2022 | | | 277,875 | |
| | | Intelsat Jackson Holdings S.A. | |
| | | 1,450,000 | | | 5.50%, 08/01/2023 | | | 1,245,608 | |
| | | 2,115,000 | | | 8.50%, 10/15/2024(4) | | | 1,926,405 | |
| | | 550,000 | | | Sprint Capital Corp. 8.75%, 03/15/2032 | | | 667,563 | |
| | | Sprint Corp. | |
| | | 2,495,000 | | | 7.25%, 09/15/2021 | | | 2,638,462 | |
| | | 10,000 | | | 7.63%, 02/15/2025 | | | 10,974 | |
| | | 2,694,000 | | | 7.88%, 09/15/2023 | | | 2,972,371 | |
| | | 480,000 | | | Telecom Italia Capital S.A. 7.20%, 07/18/2036 | | | 568,704 | |
| | | 725,000 | | | Telecom Italia S.p.A. 5.30%, 05/30/2024(4) | | | 779,375 | |
| | | | | | | | | | |
| | | 17,473,735 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 89.1% - (continued) | |
| | | | Toys/Games/Hobbies - 0.7% | |
| | | Mattel, Inc. | |
| $ | | | 420,000 | | | 5.88%, 12/15/2027(4) | | $ | 442,575 | |
| | | 1,250,000 | | | 6.75%, 12/31/2025(4) | | | 1,343,500 | |
| | | | | | | | | | |
| | | 1,786,075 | |
| | | | | | | | | | |
| | | | | | Trucking & Leasing - 0.6% | |
| | | | | | Avolon Holdings Funding Ltd. | |
| | | 335,000 | | | 3.95%, 07/01/2024(4) | | | 349,104 | |
| | | 140,000 | | | 4.38%, 05/01/2026(4) | | | 147,882 | |
| | | 945,000 | | | 5.25%, 05/15/2024(4) | | | 1,031,543 | |
| | | | | | | | | | |
| | | | | | | | | 1,528,529 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Corporate Bonds
(cost $218,200,200) | | $ | 223,977,111 | |
| | | | | | | | | | |
|
| SENIOR FLOATING RATE INTERESTS - 5.2%(9) | |
| | | | | | Auto Parts & Equipment - 0.3% | |
| | | 788,025 | | | Panther BF Aggregator L.P. 5.31%, 04/30/2026, 1 mo. USD LIBOR + 3.500% | | $ | 789,507 | |
| | | | | | | | | | |
| | | | | | Commercial Services - 1.1% | |
| | | 758,450 | | | Blackhawk Network Holdings, Inc. 4.80%, 06/15/2025, 1 mo. USD LIBOR + 3.000% | | | 757,661 | |
| | | 2,125,000 | | | Dun & Bradstreet Corp. 6.79%, 02/06/2026, 1 mo. USD LIBOR + 5.000% | | | 2,141,830 | |
| | | | | | | | | | |
| | | | | | | | | 2,899,491 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 0.3% | |
| | | 706,780 | | | Crown Finance U.S., Inc. 4.05%, 02/28/2025, 1 mo. USD LIBOR + 2.250% | | | 705,812 | |
| | | | | | | | | | |
| | | | | | Electronics - 0.4% | |
| | | 915,000 | | | Pitney Bowes, Inc. 0.00%, 12/05/2026, 1 mo. USD LIBOR + 4.000%(10) | | | 903,846 | |
| | | | | | | | | | |
| | | | | | Food Service - 0.1% | |
| | | 246,250 | | | CHG PPC Parent LLC 4.55%, 03/31/2025, 1 mo. USD LIBOR + 2.750% | | | 246,558 | |
| | | | | | | | | | |
| | | | | | Gas - 0.1% | |
| | | 272,938 | | | Messer Industries GmbH 4.45%, 03/01/2026, 1 mo. USD LIBOR + 2.500% | | | 274,226 | |
| | | | | | | | | | |
| | | | | | Healthcare-Services - 0.2% | |
| | | 591,701 | | | Syneos Health, Inc. 3.80%, 08/01/2024, 1 mo. USD LIBOR + 2.000% | | | 594,659 | |
| | | | | | | | | | |
| | | | | | Household Products - 0.2% | |
| | | 470,400 | | | Diamond (BC) B.V. 4.93%, 09/06/2024, 2 mo. USD LIBOR + 3.000% | | | 459,581 | |
| | | | | | | | | | |
| | | | | | Insurance - 1.0% | |
| | | 1,758,225 | | | Asurion LLC 4.80%, 11/03/2024, 1 mo. USD LIBOR + 3.000% | | | 1,767,332 | |
| | | 778,150 | | | Hub International Ltd. 4.69%, 04/25/2025, 2 mo. USD LIBOR + 3.000% | | | 777,123 | |
| | | | | | | | | | |
| | | | | | | | | 2,544,455 | |
| | | | | | | | | | |
| | | | | | Leisure Time - 0.5% | |
| | | 1,251,050 | | | Golden Entertainment, Inc. 4.80%, 10/21/2024, 1 mo. USD LIBOR + 3.000% | | | 1,254,178 | |
| | | | | | | | | | |
| | | | | | Media - 0.6% | |
| | | 1,404,975 | | | AVSC Holding Corp. 5.09%, 03/03/2025, 3 mo. USD LIBOR + 3.250% | | | 1,397,950 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 0.1% | |
| | | 365,056 | | | Microchip Technology, Inc. 3.80%, 05/29/2025, 1 mo. USD LIBOR + 2.000% | | | 366,881 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| SENIOR FLOATING RATE INTERESTS - 5.2%(9) - (continued) | |
| | | | | | Software - 0.3% | |
| $ | | | 199,103 | | | SS&C Technologies Holdings Europe S.a.r.l.
4.05%, 04/16/2025, 1 mo. USD LIBOR + 2.250% | | $ | 200,384 | |
| | | 450,075 | | | SS&C Technologies, Inc.
4.05%, 04/16/2025, 1 mo. USD LIBOR + 2.250% | | | 452,927 | |
| | | | | | | | | | |
| | | | | | | | | 653,311 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Senior Floating Rate Interests
(cost $13,008,103) | | $ | 13,090,455 | |
| | | | | | | | | | |
|
| CONVERTIBLE BONDS - 1.1% | |
| | | | | | Commercial Services - 0.3% | |
| | | 690,000 | | | Cardtronics, Inc. 1.00%, 12/01/2020 | | $ | 734,455 | |
| | | | | | | | | | |
| | | | | | Media - 0.4% | | | |
| | | 985,000 | | | Scripps Escrow, Inc. 5.88%, 07/15/2027(4) | | | 1,031,787 | |
| | | | | | | | | | |
| | | | | | Software - 0.4% | | | |
| | | 1,052,000 | | | Western Digital Corp. 1.50%, 02/01/2024 | | | 1,030,303 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Convertible Bonds
(cost $2,762,997) | | $ | 2,796,545 | |
| | | | | | | | | | |
|
| ESCROWS - 0.9%(11) | |
| | | | | | Media - 0.8% | | | |
| | | 1,785,000 | | | Nexstar Broadcasting, Inc.
5.63%, 07/15/2027*(4) | | $ | 1,881,033 | |
| | | | | | | | | | |
| | | | | | Packaging & Containers - 0.1% | | | |
| | | 305,000 | | | Berry Global, Inc. 5.63%, 07/15/2027*(4) | | | 327,113 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Escrows
(cost $2,138,398) | | $ | 2,208,146 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Long-Term Investments
(cost $240,256,312) | | $ | 244,347,716 | |
| | | | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.5% | |
| | | | | | Other Investment Pools & Funds - 1.5% | |
| | | 3,738,849 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(12) | | $ | 3,738,849 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Short-Term Investments
(cost $3,738,849) | | $ | 3,738,849 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments
(cost $243,995,161) | | | 98.7 | % | | $ | 248,086,565 | |
| | | | | | Other Assets and Liabilities | | | 1.3 | % | | | 3,179,634 | |
| | | | | | | | | | | | | | |
| | | | | | Total Net Assets | | | 100.0 | % | | $ | 251,266,199 | |
| | | | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Investment valued using significant unobservable inputs. |
| (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, 2019, the aggregate fair value of this security was $801,379, which represented 0.3% 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) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $801,379 or 0.3% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 03/2011 | | | KCA Deutag | | | 206,275,142 | | | $ | 2,795,441 | | | $ | 801,379 | |
| (4) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $131,905,352, representing 52.5% of net assets. |
| (5) | Security is exempt from registration under Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $7,235,008, representing 2.9% of net assets. |
| (6) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (7) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2019. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (8) | Security has the ability to pay in kind (“PIK”) or pay income in cash. When applicable, separate rates of such payments are disclosed. |
| (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. Base lending rates may be subject to a floor or cap. Unless otherwise noted, the interest rate disclosed for these securities represents the rate in effect as of December 31, 2019. |
| (10) | Represents an unsettled loan commitment. The coupon rate will be determined at time of settlement. |
| (11) | Share amount represents shares of the issuer previously held that resulted in receipt of the escrow. |
| (12) | Current yield as of period end. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford High Yield HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Credit Default Swap Contracts Outstanding at December 31, 2019 | |
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: | | | | | | | | | | | | | | | | | | | | | | | | |
| Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | |
CDX.NA.HY.33.V2 | | | USD | | | | 4,700,000 | | | | 5.00 | % | | | 12/20/24 | | | | Quarterly | | | $ | 333,752 | | | $ | 456,060 | | | $ | 122,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 333,752 | | | $ | 456,060 | | | $ | 122,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2019 | |
Amount and Description of
Currency to be Purchased | | | Amount and Description of
Currency to be Sold | | | Counterparty | | | Settlement
Date | | | Appreciation | | | (Depreciation) | |
| | 613,799 | | | | USD | | | | 552,000 | | | | EUR | | | | BMO | | | | 01/31/20 | | | $ | — | | | $ | (6,571 | ) |
| | 4,784,528 | | | | USD | | | | 4,287,000 | | | | EUR | | | | CBK | | | | 01/31/20 | | | | — | | | | (33,460 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | (40,031 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Consumer Services | | $ | 799,680 | | | $ | 799,680 | | | $ | — | | | $ | — | |
Diversified Financials | | | 674,400 | | | | 674,400 | | | | — | | | | — | |
Energy | | | 801,379 | | | | — | | | | — | | | | 801,379 | |
Corporate Bonds | | | 223,977,111 | | | | — | | | | 223,977,111 | | | | — | |
Senior Floating Rate Interests | | | 13,090,455 | | | | — | | | | 13,090,455 | | | | — | |
Convertible Bonds | | | 2,796,545 | | | | — | | | | 2,796,545 | | | | — | |
Escrows | | | 2,208,146 | | | | — | | | | 2,208,146 | | | | — | |
Short-Term Investments | | | 3,738,849 | | | | 3,738,849 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 122,308 | | | | — | | | | 122,308 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 248,208,873 | | | $ | 5,212,929 | | | $ | 242,194,565 | | | $ | 801,379 | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Foreign Currency Contracts(2) | | $ | (40,031 | ) | | $ | — | | | $ | (40,031 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (40,031 | ) | | $ | — | | | $ | (40,031 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
| (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, 2019 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.7% | |
| | | | Argentina - 0.4% | |
| | 9,138 | | | MercadoLibre, Inc.* | | $ | 5,226,388 | |
| | | | | | | | |
| | | | Brazil - 4.2% | |
| | 596,215 | | | B3 S.A. - Brasil Bolsa Balcao | | | 6,368,697 | |
| | 410,390 | | | Banco do Brasil S.A. | | | 5,388,620 | |
| | 603,200 | | | BR Malls Participacoes S.A. | | | 2,708,080 | |
| | 553,812 | | | Localiza Rent a Car S.A. | | | 6,527,016 | |
| | 177,300 | | | Lojas Renner S.A. | | | 2,476,567 | |
| | 111,040 | | | Magazine Luiza S.A. | | | 1,316,680 | |
| | 148,000 | | | Notre Dame Intermedica Participacoes S.A. | | | 2,511,000 | |
| | 137,281 | | | Pagseguro Digital Ltd. Class A* | | | 4,689,519 | |
| | 797,045 | | | Petrobras Distribuidora S.A. | | | 5,957,974 | |
| | 771,515 | | | Vale S.A. ADR | | | 10,183,998 | |
| | 80,400 | | | XP, Inc. Class A*(1) | | | 3,097,008 | |
| | | | | | | | |
| | | | | | | 51,225,159 | |
| | | | | | | | |
| | | | Canada - 5.5% | |
| | 227,431 | | | Alimentation Couche-Tard, Inc. Class B | | | 7,217,613 | |
| | 278,479 | | | Canadian National Railway Co. | | | 25,191,890 | |
| | 235,061 | | | Canadian Natural Resources Ltd. | | | 7,602,758 | |
| | 211,106 | | | Dollarama, Inc. | | | 7,255,524 | |
| | 2,288,669 | | | Encana Corp. | | | 10,715,881 | |
| | 42,516 | | | Intact Financial Corp. | | | 4,597,510 | |
| | 100,043 | | | TC Energy Corp. | | | 5,328,231 | |
| | | | | | | | |
| | | | | | | 67,909,407 | |
| | | | | | | | |
| | | | China - 14.5% | |
| | 132,132 | | | 58.com, Inc. ADR* | | | 8,552,904 | |
| | 187,520 | | | Alibaba Group Holding Ltd. ADR* | | | 39,772,992 | |
| | 683,834 | | | China National Accord Medicines Corp. Ltd. Class A | | | 4,456,101 | |
| | 98,359,314 | | | China Tower Corp. Ltd. Class H(2) | | | 21,730,525 | |
| | 1,243,426 | | | ENN Energy Holdings Ltd. | | | 13,584,668 | |
| | 2,266,900 | | | Great Wall Motor Co., Ltd. Class H | | | 1,677,290 | |
| | 1,627,760 | | | Guangzhou Automobile Group Co., Ltd. Class H | | | 2,026,548 | |
| | 435,820 | | | Hangzhou Tigermed Consulting Co., Ltd. Class A | | | 3,955,896 | |
| | 2,993,920 | | | Kingdee International Software Group Co., Ltd. | | | 2,995,236 | |
| | 86,225 | | | New Oriental Education & Technology Group, Inc. ADR* | | | 10,454,781 | |
| | 77,400 | | | Pharmaron Beijing Co., Ltd. Class H*(2) | | | 432,080 | |
| | 1,542,525 | | | Ping An Insurance Group Co. of China Ltd. Class H | | | 18,253,409 | |
| | 135,676 | | | TAL Education Group ADR* | | | 6,539,583 | |
| | 758,034 | | | Tencent Holdings Ltd. | | | 36,519,140 | |
| | 106,484 | | | Trip.com Group Ltd. ADR* | | | 3,571,473 | |
| | 291,775 | | | WuXi AppTec Co., Ltd. Class H(2) | | | 3,617,506 | |
| | | | | | | | |
| | | | | | | 178,140,132 | |
| | | | | | | | |
| | | | Denmark - 1.5% | |
| | 59,280 | | | Carlsberg A/S Class B | | | 8,846,708 | |
| | 87,224 | | | DSV A/S | | | 10,052,851 | |
| | | | | | | | |
| | | | | | | 18,899,559 | |
| | | | | | | | |
| | | | France - 14.3% | |
| | 157,847 | | | Airbus SE | | | 23,166,434 | |
| | 987,846 | | | AXA S.A. | | | 27,912,815 | |
| | 139,445 | | | Capgemini SE | | | 17,054,798 | |
| | 1,223,719 | | | Engie S.A. | | | 19,822,192 | |
| | 8,228 | | | Kering S.A.(1) | | | 5,421,549 | |
| | 9,008 | | | LVMH Moet Hennessy Louis Vuitton SE | | | 4,197,310 | |
| | 85,719 | | | Safran S.A. | | | 13,240,095 | |
| | 601,743 | | | Total S.A. | | | 33,391,024 | |
| | 189,483 | | | Vinci S.A. | | | 21,103,395 | |
| | 155,049 | | | Worldline S.A.*(1)(2) | | | 10,991,572 | |
| | | | | | | | |
| | | | | | | 176,301,184 | |
| | | | | | | | |
| | | | Germany - 3.5% | |
| | 46,849 | | | Allianz SE | | | 11,479,306 | |
| | 883,466 | | | Infineon Technologies AG | | | 19,961,337 | |
| | 126,532 | | | Vonovia SE | | | 6,795,953 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.7% - (continued) | |
| | | | Germany - 3.5% - (continued) | |
| | 91,636 | | | Zalando SE*(2) | | $ | 4,621,215 | |
| | | | | | | | |
| | | | | | | 42,857,811 | |
| | | | | | | | |
| | | | Hong Kong - 1.4% | |
| | 1,651,445 | | | AIA Group Ltd. | | | 17,369,833 | |
| | | | | | | | |
| | | | India - 2.0% | |
| | 1,080,057 | | | HDFC Bank Ltd. | | | 19,272,046 | |
| | 617,350 | | | ICICI Bank Ltd. | | | 4,681,835 | |
| | | | | | | | |
| | | | | | | 23,953,881 | |
| | | | | | | | |
| | | | Israel - 0.3% | |
| | 435,816 | | | Teva Pharmaceutical Industries Ltd. ADR* | | | 4,270,997 | |
| | | | | | | | |
| | | | Italy - 2.3% | |
| | 49,905 | | | Ferrari N.V. | | | 8,286,008 | |
| | 1,610,448 | | | Pirelli & C. S.p.A.(2) | | | 9,294,976 | |
| | 697,694 | | | UniCredit S.p.A. | | | 10,198,167 | |
| | | | | | | | |
| | | | | | | 27,779,151 | |
| | | | | | | | |
| | | | Japan - 14.1% | |
| | 97,825 | | | Daikin Industries Ltd. | | | 13,802,106 | |
| | 75,500 | | | Eisai Co., Ltd. | | | 5,649,359 | |
| | 88,888 | | | FANUC Corp. | | | 16,414,485 | |
| | 10,000 | | | Fast Retailing Co., Ltd. | | | 5,940,738 | |
| | 3,000 | | | Japan Airlines Co., Ltd. | | | 93,408 | |
| | 43,702 | | | Keyence Corp. | | | 15,345,450 | |
| | 639,223 | | | Mitsui Fudosan Co., Ltd. REIT | | | 15,622,557 | |
| | 412,640 | | | Nexon Co., Ltd.* | | | 5,473,786 | |
| | 307,715 | | | Recruit Holdings Co., Ltd. | | | 11,525,566 | |
| | 205,453 | | | Shiseido Co., Ltd. | | | 14,589,212 | |
| | 303,900 | | | SoftBank Group Corp. | | | 13,194,433 | |
| | 471,037 | | | Sony Financial Holdings, Inc. | | | 11,307,177 | |
| | 398,775 | | | Sumitomo Mitsui Financial Group, Inc. | | | 14,728,895 | |
| | 91,387 | | | Sysmex Corp. | | | 6,222,075 | |
| | 309,900 | | | T&D Holdings, Inc. | | | 3,918,904 | |
| | 137,250 | | | Terumo Corp. | | | 4,868,848 | |
| | 253,346 | | | Tokio Marine Holdings, Inc. | | | 14,184,533 | |
| | | | | | | | |
| | | | | | | 172,881,532 | |
| | | | | | | | |
| | | | Netherlands - 2.6% | |
| | 150,865 | | | AerCap Holdings N.V.* | | | 9,273,671 | |
| | 505,443 | | | ING Groep N.V. | | | 6,076,640 | |
| | 335,704 | | | Koninklijke Philips N.V. | | | 16,410,454 | |
| | | | | | | | |
| | | | | | | 31,760,765 | |
| | | | | | | | |
| | | | Norway - 0.2% | |
| | 765,178 | | | Norsk Hydro ASA | | | 2,845,398 | |
| | | | | | | | |
| | | | Philippines - 0.3% | |
| | 3,985,870 | | | Ayala Land, Inc. | | | 3,574,967 | |
| | | | | | | | |
| | | | Portugal - 0.3% | |
| | 215,836 | | | Galp Energia SGPS S.A. | | | 3,623,466 | |
| | | | | | | | |
| | | | Russia - 0.7% | |
| | 189,167 | | | Yandex N.V. Class A* | | | 8,226,873 | |
| | | | | | | | |
| | | | South Korea - 2.5% | |
| | 5,411 | | | LG Household & Health Care Ltd. | | | 5,877,707 | |
| | 509,452 | | | Samsung Electronics Co., Ltd. | | | 24,548,884 | |
| | | | | | | | |
| | | | | | | 30,426,591 | |
| | | | | | | | |
| | | | Spain - 4.7% | |
| | 6,027,582 | | | Banco Santander S.A. | | | 25,272,128 | |
| | 4,373,601 | | | CaixaBank S.A. | | | 13,772,724 | |
| | 363,864 | | | Cellnex Telecom S.A.*(2) | | | 15,695,494 | |
| | 306,150 | | | Iberdrola S.A. | | | 3,155,050 | |
| | | | | | | | |
| | | | | | | 57,895,396 | |
| | | | | | | | |
| | | | Sweden - 1.4% | |
| | 784,395 | | | Sandvik AB | | | 15,277,940 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.7% - (continued) | |
| | | | Sweden - 1.4% - (continued) | |
| | 12,967 | | | Spotify Technology S.A.* | | $ | 1,939,215 | |
| | | | | | | | |
| | | | | | | 17,217,155 | |
| | | | | | | | |
| | | | Switzerland - 6.1% | |
| | 146,849 | | | Alcon, Inc.* | | | 8,317,764 | |
| | 16,902 | | | Lonza Group AG* | | | 6,165,973 | |
| | 297,215 | | | Nestle S.A. | | | 32,178,040 | |
| | 257,760 | | | Novartis AG | | | 24,407,184 | |
| | 30,530 | | | PSP Swiss Property AG | | | 4,215,417 | |
| | | | | | | | |
| | | | | | | 75,284,378 | |
| | | | | | | | |
| | | | Taiwan - 1.5% | |
| | 297,585 | | | MediaTek, Inc. | | | 4,409,339 | |
| | 1,221,865 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 13,523,387 | |
| | | | | | | | |
| | | | | | | 17,932,726 | |
| | | | | | | | |
| | | | United Kingdom - 14.0% | |
| | 539,682 | | | Anglo American plc | | | 15,503,938 | |
| | 178,112 | | | AstraZeneca plc | | | 17,827,575 | |
| | 131,825 | | | Berkeley Group Holdings plc | | | 8,484,561 | |
| | 367,360 | | | Compass Group plc | | | 9,206,693 | |
| | 275,149 | | | Derwent London plc REIT | | | 14,614,939 | |
| | 277,038 | | | Diageo plc | | | 11,673,454 | |
| | 184,880 | | | Intertek Group plc | | | 14,326,007 | |
| | 106,571 | | | London Stock Exchange Group plc | | | 10,952,512 | |
| | 1,682,647 | | | National Grid plc | | | 21,028,314 | |
| | 298,670 | | | Rio Tinto plc | | | 17,679,760 | |
| | 169,864 | | | Smith & Nephew plc | | | 4,093,847 | |
| | 1,102,754 | | | Standard Chartered plc | | | 10,391,346 | |
| | 275,504 | | | Unilever N.V. | | | 15,811,360 | |
| | | | | | | | |
| | | | | | | 171,594,306 | |
| | | | | | | | |
| | | | United States - 0.4% | |
| | 168,101 | | | Bausch Health Cos., Inc.* | | | 5,029,582 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,047,318,677) | | $ | 1,212,226,637 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.4% | |
| | | | Other Investment Pools & Funds - 0.8% | |
| | 9,735,878 | | | BlackRock Liquidity Funds, FedFund Portfolio, Institutional Class,1.58%(3) | | $ | 9,735,878 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.6% | |
| | 378,646 | | | Citibank NA DDCA, 1.54%, 1/2/2020(3) | | | 378,646 | |
| | 1,836,079 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(3) | | | 1,836,079 | |
| | 1,692,061 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(3) | | | 1,692,061 | |
| | 846,031 | | | JPMorgan Prime Money Market Fund, 1.69%(3) | | | 846,031 | |
| | 2,256,081 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(3) | | | 2,256,081 | |
| | 564,020 | | | State Street Institutional Liquid Reserves Fund, 1.70%(3) | | | 564,020 | |
| | | | | | | | |
| | | | | | | 7,572,918 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $17,308,796) | | $ | 17,308,796 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,064,627,473) | | | 100.1 | % | | $ | 1,229,535,433 | |
| | | | Other Assets and Liabilities | | | (0.1 | )% | | | (850,469 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,228,684,964 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $66,383,368, representing 5.4% of net assets. |
| (3) | 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 International Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Argentina | | $ | 5,226,388 | | | $ | 5,226,388 | | | $ | — | | | $ | — | |
Brazil | | | 51,225,159 | | | | 51,225,159 | | | | — | | | | — | |
Canada | | | 67,909,407 | | | | 67,909,407 | | | | — | | | | — | |
China | | | 178,140,132 | | | | 69,323,813 | | | | 108,816,319 | | | | — | |
Denmark | | | 18,899,559 | | | | 10,052,851 | | | | 8,846,708 | | | | — | |
France | | | 176,301,184 | | | | — | | | | 176,301,184 | | | | — | |
Germany | | | 42,857,811 | | | | — | | | | 42,857,811 | | | | — | |
Hong Kong | | | 17,369,833 | | | | — | | | | 17,369,833 | | | | — | |
India | | | 23,953,881 | | | | — | | | | 23,953,881 | | | | — | |
Israel | | | 4,270,997 | | | | 4,270,997 | | | | — | | | | — | |
Italy | | | 27,779,151 | | | | — | | | | 27,779,151 | | | | — | |
Japan | | | 172,881,532 | | | | — | | | | 172,881,532 | | | | — | |
Netherlands | | | 31,760,765 | | | | 9,273,671 | | | | 22,487,094 | | | | — | |
Norway | | | 2,845,398 | | | | — | | | | 2,845,398 | | | | — | |
Philippines | | | 3,574,967 | | | | — | | | | 3,574,967 | | | | — | |
Portugal | | | 3,623,466 | | | | — | | | | 3,623,466 | | | | — | |
Russia | | | 8,226,873 | | | | 8,226,873 | | | | — | | | | — | |
South Korea | | | 30,426,591 | | | | — | | | | 30,426,591 | | | | — | |
Spain | | | 57,895,396 | | | | — | | | | 57,895,396 | | | | — | |
Sweden | | | 17,217,155 | | | | 1,939,215 | | | | 15,277,940 | | | | — | |
Switzerland | | | 75,284,378 | | | | — | | | | 75,284,378 | | | | — | |
Taiwan | | | 17,932,726 | | | | — | | | | 17,932,726 | | | | — | |
United Kingdom | | | 171,594,306 | | | | 23,099,500 | | | | 148,494,806 | | | | — | |
United States | | | 5,029,582 | | | | 5,029,582 | | | | — | | | | — | |
Short-Term Investments | | | 17,308,796 | | | | 17,308,796 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,229,535,433 | | | $ | 272,886,252 | | | $ | 956,649,181 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.2% | |
| | | | Banks - 5.6% | |
| | 204,778 | | | Cullen/Frost Bankers, Inc. | | $ | 20,023,193 | |
| | 32,270 | | | First Citizens BancShares, Inc. Class A | | | 17,174,417 | |
| | 223,150 | | | First Republic Bank | | | 26,208,967 | |
| | 125,767 | | | M&T Bank Corp. | | | 21,348,948 | |
| | 265,358 | | | Prosperity Bancshares, Inc. | | | 19,076,587 | |
| | 148,686 | | | South State Corp. | | | 12,898,510 | |
| | | | | | | | |
| | | | | | | 116,730,622 | |
| | | | | | | | |
| | | | Capital Goods - 10.1% | |
| | 402,028 | | | Axon Enterprise, Inc.* | | | 29,460,612 | |
| | 577,984 | | | Fastenal Co. | | | 21,356,509 | |
| | 726,279 | | | Gardner Denver Holdings, Inc.* | | | 26,639,914 | |
| | 130,601 | | | HEICO Corp. Class A | | | 11,692,707 | |
| | 206,058 | | | IDEX Corp. | | | 35,441,976 | |
| | 127,815 | | | Lennox International, Inc. | | | 31,183,025 | |
| | 237,094 | | | Lincoln Electric Holdings, Inc. | | | 22,934,103 | |
| | 229,564 | | | PACCAR, Inc. | | | 18,158,512 | |
| | 90,380 | | | Watsco, Inc. | | | 16,281,957 | |
| | | | | | | | |
| | | | | | | 213,149,315 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 5.6% | |
| | 48,714 | | | Cintas Corp. | | | 13,107,963 | |
| | 32,315 | | | CoStar Group, Inc.* | | | 19,334,065 | |
| | 411,590 | | | Healthcare Services Group, Inc.(1) | | | 10,009,869 | |
| | 479,066 | | | IAA, Inc.* | | | 22,544,846 | |
| | 868,542 | | | KAR Auction Services, Inc. | | | 18,925,530 | |
| | 268,776 | | | TransUnion | | | 23,009,913 | |
| | 112,275 | | | Waste Connections, Inc. | | | 10,193,447 | |
| | | | | | | | |
| | | | | | | 117,125,633 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.5% | |
| | 237,711 | | | Carter’s, Inc. | | | 25,991,321 | |
| | 9,472 | | | NVR, Inc.* | | | 36,073,259 | |
| | 210,741 | | | PVH Corp. | | | 22,159,416 | |
| | 666,181 | | | Under Armour, Inc. Class C* | | | 12,777,352 | |
| | 543,019 | | | YETI Holdings, Inc.* | | | 18,886,201 | |
| | | | | | | | |
| | | | | | | 115,887,549 | |
| | | | | | | | |
| | | | Consumer Services - 3.2% | |
| | 334,928 | | | Choice Hotels International, Inc. | | | 34,641,603 | |
| | 703,661 | | | Service Corp. International | | | 32,389,516 | |
| | | | | | | | |
| | | | | | | 67,031,119 | |
| | | | | | | | |
| | | | Diversified Financials - 2.8% | |
| | 53,261 | | | Credit Acceptance Corp.* | | | 23,558,938 | |
| | 54,767 | | | FactSet Research Systems, Inc. | | | 14,693,986 | |
| | 190,458 | | | Northern Trust Corp. | | | 20,234,258 | |
| | | | | | | | |
| | | | | | | 58,487,182 | |
| | | | | | | | |
| | | | Energy - 0.4% | |
| | 659,375 | | | WPX Energy, Inc.* | | | 9,059,813 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.2% | |
| | 68,500 | | | Performance Food Group Co.* | | | 3,526,380 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.6% | |
| | 301,694 | | | Encompass Health Corp. | | | 20,898,344 | |
| | 229,489 | | | Hill-Rom Holdings, Inc. | | | 26,053,886 | |
| | 412,508 | | | Integra LifeSciences Holdings Corp.* | | | 24,040,966 | |
| | 167,991 | | | Masimo Corp.* | | | 26,552,658 | |
| | 383,295 | | | NuVasive, Inc.* | | | 29,644,035 | |
| | 135,555 | | | STERIS plc | | | 20,661,293 | |
| | 69,539 | | | Teleflex, Inc. | | | 26,177,261 | |
| | 203,077 | | | Varian Medical Systems, Inc.* | | | 28,838,965 | |
| | 141,744 | | | Veeva Systems, Inc. Class A* | | | 19,937,711 | |
| | | | | | | | |
| | | | | | | 222,805,119 | |
| | | | | | | | |
| | | | Insurance - 4.8% | |
| | 20,645 | | | Alleghany Corp.* | | | 16,507,122 | |
| | 350,242 | | | Fidelity National Financial, Inc. | | | 15,883,475 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.2% - (continued) | |
| | | | Insurance - 4.8% - (continued) | |
| | 29,093 | | | Markel Corp.* | | $ | 33,258,245 | |
| | 16,308 | | | White Mountains Insurance Group Ltd. | | | 18,191,737 | |
| | 231,567 | | | WR Berkley Corp. | | | 16,001,280 | |
| | | | | | | | |
| | | | | | | 99,841,859 | |
| | | | | | | | |
| | | | Materials - 2.7% | |
| | 438,559 | | | Ball Corp. | | | 28,361,610 | |
| | 170,701 | | | Packaging Corp. of America | | | 19,116,805 | |
| | 311,045 | | | Silgan Holdings, Inc. | | | 9,667,279 | |
| | | | | | | | |
| | | | | | | 57,145,694 | |
| | | | | | | | |
| | | | Media & Entertainment - 2.5% | |
| | 16,022 | | | Cable One, Inc. | | | 23,848,266 | |
| | 423,892 | | | Cargurus, Inc.* | | | 14,912,521 | |
| | 103,059 | | | Roku, Inc.* | | | 13,799,600 | |
| | | | | | | | |
| | | | | | | 52,560,387 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.8% | |
| | 389,860 | | | Aerie Pharmaceuticals, Inc.* | | | 9,422,916 | |
| | 245,617 | | | Alnylam Pharmaceuticals, Inc.* | | | 28,287,710 | |
| | 119,232 | | | Bio-Techne Corp. | | | 26,172,616 | |
| | 417,598 | | | Ionis Pharmaceuticals, Inc.* | | | 25,227,095 | |
| | 21,308 | | | Mettler-Toledo International, Inc.* | | | 16,903,210 | |
| | 249,999 | | | PRA Health Sciences, Inc.* | | | 27,787,389 | |
| | 84,776 | | | Reata Pharmaceuticals, Inc. Class A* | | | 17,330,758 | |
| | 171,635 | | | Repligen Corp.* | | | 15,876,238 | |
| | 152,044 | | | Seattle Genetics, Inc.* | | | 17,372,547 | |
| | | | | | | | |
| | | | | | | 184,380,479 | |
| | | | | | | | |
| | | | Real Estate - 2.2% | |
| | 353,856 | | | Douglas Emmett, Inc. REIT | | | 15,534,278 | |
| | 476,310 | | | Equity Commonwealth REIT | | | 15,637,257 | |
| | 704,018 | | | Redfin Corp.* | | | 14,882,941 | |
| | | | | | | | |
| | | | | | | 46,054,476 | |
| | | | | | | | |
| | | | Retailing - 2.5% | |
| | 202,715 | | | CarMax, Inc.* | | | 17,772,024 | |
| | 352,315 | | | Etsy, Inc.* | | | 15,607,555 | |
| | 177,764 | | | GrubHub, Inc.*(1) | | | 8,646,441 | |
| | 119,066 | | | Wayfair, Inc. Class A*(1) | | | 10,759,994 | |
| | | | | | | | |
| | | | | | | 52,786,014 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.5% | |
| | 235,347 | | | MKS Instruments, Inc. | | | 25,890,524 | |
| | 142,723 | | | Monolithic Power Systems, Inc. | | | 25,407,548 | |
| | 192,822 | | | Silicon Laboratories, Inc.* | | | 22,363,496 | |
| | | | | | | | |
| | | | | | | 73,661,568 | |
| | | | | | | | |
| | | | Software & Services - 16.5% | |
| | 220,499 | | | Akamai Technologies, Inc.* | | | 19,046,704 | |
| | 132,875 | | | Aspen Technology, Inc.* | | | 16,068,574 | |
| | 389,785 | | | Black Knight, Inc.* | | | 25,133,337 | |
| | 294,315 | | | Blackbaud, Inc. | | | 23,427,474 | |
| | 97,518 | | | EPAM Systems, Inc.* | | | 20,689,419 | |
| | 82,475 | | | Fair Isaac Corp.* | | | 30,901,733 | |
| | 1,271,647 | | | Genpact Ltd. | | | 53,625,354 | |
| | 234,760 | | | Guidewire Software, Inc.* | | | 25,769,605 | |
| | 272,390 | | | PTC, Inc.* | | | 20,399,287 | |
| | 202,429 | | | Q2 Holdings, Inc.* | | | 16,412,943 | |
| | 934,129 | | | Teradata Corp.* | | | 25,006,633 | |
| | 105,499 | | | VeriSign, Inc.* | | | 20,327,547 | |
| | 238,414 | | | WEX, Inc.* | | | 49,938,197 | |
| | | | | | | | |
| | | | | | | 346,746,807 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 8.6% | |
| | 146,909 | | | CDW Corp. | | | 20,984,482 | |
| | 144,455 | | | Coherent, Inc.* | | | 24,030,089 | |
| | 1,132,448 | | | CommScope Holding Co., Inc.* | | | 16,069,437 | |
| | 170,822 | | | F5 Networks, Inc.* | | | 23,855,292 | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.2% - (continued) | |
| | | | Technology Hardware & Equipment - 8.6% - (continued) | |
| | 865,960 | | | II-VI, Inc.* | | $ | 29,156,873 | |
| | 130,465 | | | Keysight Technologies, Inc.* | | | 13,389,623 | |
| | 410,159 | | | Lumentum Holdings, Inc.* | | | 32,525,609 | |
| | 501,879 | | | National Instruments Corp. | | | 21,249,557 | |
| | | | | | | | |
| | | | | | | 181,260,962 | |
| | | | | | | | |
| | | | Transportation - 0.9% | |
| | 48,714 | | | AMERCO | | | 18,307,695 | |
| | | | | | | | |
| | | | Utilities - 2.2% | |
| | 146,563 | | | Black Hills Corp. | | | 11,511,058 | |
| | 293,442 | | | NiSource, Inc. | | | 8,169,425 | |
| | 602,846 | | | UGI Corp. | | | 27,224,526 | |
| | | | | | | | |
| | | | | | | 46,905,009 | |
| | | | | | | | |
| | | | Total Common Stocks
(cost $1,514,136,684) | | $ | 2,083,453,682 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.7% | |
| | | | Other Investment Pools & Funds - 0.2% | |
| | 5,519,305 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(2) | | $ | 5,519,305 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.5% | |
| | 489,248 | | | Citibank NA DDCA, 1.54%, 1/2/2020(2) | | | 489,248 | |
| | 2,372,394 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(2) | | | 2,372,394 | |
| | 2,186,308 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(2) | | | 2,186,308 | |
| | 1,093,154 | | | JPMorgan Prime Money Market Fund, 1.69%(2) | | | 1,093,154 | |
| | 2,915,078 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(2) | | | 2,915,078 | |
| | 728,769 | | | State Street Institutional Liquid Reserves Fund, 1.70%(2) | | | 728,769 | |
| | | | | | | | |
| | | | | | | 9,784,951 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $15,304,256) | | $ | 15,304,256 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,529,440,940) | | | 99.9 | % | | $ | 2,098,757,938 | |
| | | | Other Assets and Liabilities | | | 0.1 | % | | | 1,447,712 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,100,205,650 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | 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.
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 116,730,622 | | | $ | 116,730,622 | | | $ | — | | | $ | — | |
Capital Goods | | | 213,149,315 | | | | 213,149,315 | | | | — | | | | — | |
Commercial & Professional Services | | | 117,125,633 | | | | 117,125,633 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 115,887,549 | | | | 115,887,549 | | | | — | | | | — | |
Consumer Services | | | 67,031,119 | | | | 67,031,119 | | | | — | | | | — | |
Diversified Financials | | | 58,487,182 | | | | 58,487,182 | | | | — | | | | — | |
Energy | | | 9,059,813 | | | | 9,059,813 | | | | — | | | | — | |
Food & Staples Retailing | | | 3,526,380 | | | | 3,526,380 | | | | — | | | | — | |
Health Care Equipment & Services | | | 222,805,119 | | | | 222,805,119 | | | | — | | | | — | |
Insurance | | | 99,841,859 | | | | 99,841,859 | | | | — | | | | — | |
Materials | | | 57,145,694 | | | | 57,145,694 | | | | — | | | | — | |
Media & Entertainment | | | 52,560,387 | | | | 52,560,387 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 184,380,479 | | | | 184,380,479 | | | | — | | | | — | |
Real Estate | | | 46,054,476 | | | | 46,054,476 | | | | — | | | | — | |
Retailing | | | 52,786,014 | | | | 52,786,014 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 73,661,568 | | | | 73,661,568 | | | | — | | | | — | |
Software & Services | | | 346,746,807 | | | | 346,746,807 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 181,260,962 | | | | 181,260,962 | | | | — | | | | — | |
Transportation | | | 18,307,695 | | | | 18,307,695 | | | | — | | | | — | |
Utilities | | | 46,905,009 | | | | 46,905,009 | | | | — | | | | — | |
Short-Term Investments | | | 15,304,256 | | | | 15,304,256 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,098,757,938 | | | $ | 2,098,757,938 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Growth HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% | |
| | | | Banks - 1.5% | |
| | 13,032 | | | First Republic Bank | | $ | 1,530,608 | |
| | | | | | | | |
| | | | Capital Goods - 7.0% | |
| | 3,852 | | | Albany International Corp. Class A | | | 292,444 | |
| | 43,714 | | | BWX Technologies, Inc. | | | 2,713,765 | |
| | 36,041 | | | Hexcel Corp. | | | 2,642,166 | |
| | 15,511 | | | Lincoln Electric Holdings, Inc. | | | 1,500,379 | |
| | | | | | | | |
| | | | | | | 7,148,754 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 6.5% | |
| | 6,630 | | | Equifax, Inc. | | | 928,995 | |
| | 44,465 | | | IHS Markit Ltd.* | | | 3,350,438 | |
| | 16,956 | | | TransUnion | | | 1,451,603 | |
| | 15,506 | | | TriNet Group, Inc.* | | | 877,795 | |
| | | | | | | | |
| | | | | | | 6,608,831 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.0% | |
| | 93,978 | | | Under Armour, Inc. Class A* | | | 2,029,925 | |
| | | | | | | | |
| | | | Consumer Services - 13.2% | |
| | 70,403 | | | Aramark | | | 3,055,490 | |
| | 24,206 | | | Bright Horizons Family Solutions, Inc.* | | | 3,637,920 | |
| | 3,756 | | | Domino’s Pizza, Inc. | | | 1,103,438 | |
| | 95,270 | | | Extended Stay America, Inc. | | | 1,415,712 | |
| | 16,520 | | | Grand Canyon Education, Inc.* | | | 1,582,451 | |
| | 4,589 | | | Hilton Worldwide Holdings, Inc. | | | 508,966 | |
| | 9,098 | | | Vail Resorts, Inc. | | | 2,181,973 | |
| | | | | | | | |
| | | | | | | 13,485,950 | |
| | | | | | | | |
| | | | Diversified Financials - 1.9% | |
| | 9,570 | | | Hamilton Lane, Inc. Class A | | | 570,372 | |
| | 2,336 | | | MarketAxess Holdings, Inc. | | | 885,601 | |
| | 1,854 | | | MSCI, Inc. | | | 478,666 | |
| | | | | | | | |
| | | | | | | 1,934,639 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 5.5% | |
| | 9,217 | | | ABIOMED, Inc.* | | | 1,572,328 | |
| | 32,107 | | | Centene Corp.* | | | 2,018,567 | |
| | 12,508 | | | Penumbra, Inc.* | | | 2,054,689 | |
| | | | | | | | |
| | | | | | | 5,645,584 | |
| | | | | | | | |
| | | | Media & Entertainment - 5.9% | |
| | 14,740 | | | Electronic Arts, Inc.* | | | 1,584,697 | |
| | 39,368 | | | Liberty Media Corp-Liberty Formula One Class C* | | | 1,809,550 | |
| | 5,155 | | | Roku, Inc.* | | | 690,255 | |
| | 16,042 | | | Take-Two Interactive Software, Inc.* | | | 1,964,022 | |
| | | | | | | | |
| | | | | | | 6,048,524 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.7% | |
| | 11,278 | | | Bluebird Bio, Inc.* | | | 989,645 | |
| | 11,892 | | | ICON plc* | | | 2,048,159 | |
| | 18,426 | | | Incyte Corp.* | | | 1,608,958 | |
| | 2,782 | | | Mettler-Toledo International, Inc.* | | | 2,206,905 | |
| | 9,192 | | | Seattle Genetics, Inc.* | | | 1,050,278 | |
| | | | | | | | |
| | | | | | | 7,903,945 | |
| | | | | | | | |
| | | | Real Estate - 2.3% | |
| | 9,723 | | | SBA Communications Corp. REIT | | | 2,343,146 | |
| | | | | | | | |
| | | | Retailing - 7.6% | |
| | 12,250 | | | Burlington Stores, Inc.* | | | 2,793,367 | |
| | 29,114 | | | Etsy, Inc.* | | | 1,289,750 | |
| | 26,470 | | | Expedia Group, Inc. | | | 2,862,466 | |
| | 1,934 | | | O’Reilly Automotive, Inc.* | | | 847,595 | |
| | | | | | | | |
| | | | | | | 7,793,178 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 7.8% | |
| | 34,364 | | | Advanced Micro Devices, Inc.* | | | 1,575,933 | |
| | 11,723 | | | First Solar, Inc.* | | | 656,019 | |
| | 11,275 | | | KLA Corp. | | | 2,008,867 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.0% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment - 7.8% - (continued) | |
| | 6,530 | | | Microchip Technology, Inc. | | $ | 683,822 | |
| | 10,373 | | | Monolithic Power Systems, Inc. | | | 1,846,601 | |
| | 17,785 | | | Teradyne, Inc. | | | 1,212,759 | |
| | | | | | | | |
| | | | | | | 7,984,001 | |
| | | | | | | | |
| | | | Software & Services - 24.9% | |
| | 28,014 | | | Black Knight, Inc.* | | | 1,806,343 | |
| | 21,293 | | | Blackbaud, Inc. | | | 1,694,923 | |
| | 34,104 | | | Ceridian HCM Holding, Inc.* | | | 2,314,980 | |
| | 21,541 | | | DocuSign, Inc.* | | | 1,596,403 | |
| | 23,225 | | | Gartner, Inc.* | | | 3,578,972 | |
| | 12,904 | | | Global Payments, Inc. | | | 2,355,754 | |
| | 24,661 | | | GoDaddy, Inc. Class A* | | | 1,674,975 | |
| | 19,104 | | | Guidewire Software, Inc.* | | | 2,097,046 | |
| | 31,131 | | | Slack Technologies, Inc. Class A*(1) | | | 699,825 | |
| | 12,631 | | | Splunk, Inc.* | | | 1,891,745 | |
| | 59,609 | | | SS&C Technologies Holdings, Inc. | | | 3,659,993 | |
| | 7,045 | | | Tyler Technologies, Inc.* | | | 2,113,641 | |
| | | | | | | | |
| | | | | | | 25,484,600 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.9% | |
| | 10,537 | | | CDW Corp. | | | 1,505,105 | |
| | 5,386 | | | Coherent, Inc.* | | | 895,961 | |
| | 42,771 | | | Flex Ltd.* | | | 539,770 | |
| | 12,191 | | | Itron, Inc.* | | | 1,023,435 | |
| | | | | | | | |
| | | | | | | 3,964,271 | |
| | | | | | | | |
| | | | Transportation - 1.3% | |
| | 11,086 | | | J.B. Hunt Transport Services, Inc. | | | 1,294,623 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $83,548,152) | | $ | 101,200,579 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.8% | |
| | | | Other Investment Pools & Funds - 1.1% | |
| | 1,135,279 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(2) | | $ | 1,135,279 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.7% | |
| | 34,980 | | | Citibank NA DDCA, 1.54%, 1/2/2020(2) | | | 34,980 | |
| | 169,618 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(2) | | | 169,618 | |
| | 156,314 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class,
1.75%(2) | | | 156,314 | |
| | 78,157 | | | JPMorgan Prime Money Market Fund, 1.69%(2) | | | 78,157 | |
| | 208,418 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(2) | | | 208,418 | |
| | 52,104 | | | State Street Institutional Liquid Reserves Fund, 1.70%(2) | | | 52,104 | |
| | | | | | | | |
| | | | | | | 699,591 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $1,834,870) | | $ | 1,834,870 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $85,383,022) | | | 100.8 | % | | $ | 103,035,449 | |
| | | | Other Assets and Liabilities | | | (0.8 | )% | | | (771,173 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 102,264,276 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 1,530,608 | | | $ | 1,530,608 | | | $ | — | | | $ | — | |
Capital Goods | | | 7,148,754 | | | | 7,148,754 | | | | — | | | | — | |
Commercial & Professional Services | | | 6,608,831 | | | | 6,608,831 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 2,029,925 | | | | 2,029,925 | | | | — | | | | — | |
Consumer Services | | | 13,485,950 | | | | 13,485,950 | | | | — | | | | — | |
Diversified Financials | | | 1,934,639 | | | | 1,934,639 | | | | — | | | | — | |
Health Care Equipment & Services | | | 5,645,584 | | | | 5,645,584 | | | | — | | | | — | |
Media & Entertainment | | | 6,048,524 | | | | 6,048,524 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 7,903,945 | | | | 7,903,945 | | | | — | | | | — | |
Real Estate | | | 2,343,146 | | | | 2,343,146 | | | | — | | | | — | |
Retailing | | | 7,793,178 | | | | 7,793,178 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 7,984,001 | | | | 7,984,001 | | | | — | | | | — | |
Software & Services | | | 25,484,600 | | | | 25,484,600 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 3,964,271 | | | | 3,964,271 | | | | — | | | | — | |
Transportation | | | 1,294,623 | | | | 1,294,623 | | | | — | | | | — | |
Short-Term Investments | | | 1,834,870 | | | | 1,834,870 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 103,035,449 | | | $ | 103,035,449 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.7% | | | |
| | | | Banks - 9.5% | |
| | 54,924 | | | Comerica, Inc. | | $ | 3,940,797 | |
| | 38,944 | | | IBERIABANK Corp. | | | 2,914,180 | |
| | 30,609 | | | M&T Bank Corp. | | | 5,195,878 | |
| | 185,860 | | | Sterling Bancorp | | | 3,917,929 | |
| | 113,302 | | | Synovus Financial Corp. | | | 4,441,438 | |
| | 77,557 | | | Western Alliance Bancorp | | | 4,420,749 | |
| | 105,185 | | | Zions Bancorp NA | | | 5,461,205 | |
| | | | | | | | |
| | | | | | | 30,292,176 | |
| | | | | | | | |
| | | | Capital Goods - 10.5% | |
| | 70,439 | | | Colfax Corp.* | | | 2,562,571 | |
| | 38,934 | | | EnerSys | | | 2,913,431 | |
| | 77,629 | | | Fortune Brands Home & Security, Inc. | | | 5,072,279 | |
| | 138,191 | | | Gardner Denver Holdings, Inc.* | | | 5,068,846 | |
| | 131,195 | | | JELD-WEN Holding, Inc.* | | | 3,071,275 | |
| | 26,176 | | | L3Harris Technologies, Inc. | | | 5,179,445 | |
| | 37,847 | | | Moog, Inc. Class A | | | 3,229,485 | |
| | 52,904 | | | Sensata Technologies Holding plc* | | | 2,849,938 | |
| | 46,625 | | | Wabtec Corp. | | | 3,627,425 | |
| | | | | | | | |
| | | | | | | 33,574,695 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.4% | |
| | 52,737 | | | Clean Harbors, Inc.* | | | 4,522,198 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.4% | |
| | 65,575 | | | Lennar Corp. Class A | | | 3,658,429 | |
| | 95,639 | | | Steven Madden Ltd. | | | 4,113,434 | |
| | | | | | | | |
| | | | | | | 7,771,863 | |
| | | | | | | | |
| | | | Consumer Services - 2.5% | |
| | 48,988 | | | Norwegian Cruise Line Holdings Ltd.* | | | 2,861,389 | |
| | 82,684 | | | Wyndham Hotels & Resorts, Inc. | | | 5,193,382 | |
| | | | | | | | |
| | | | | | | 8,054,771 | |
| | | | | | | | |
| | | | Diversified Financials - 1.1% | |
| | 397,526 | | | SLM Corp. | | | 3,541,957 | |
| | | | | | | | |
| | | | Energy - 6.1% | |
| | 92,566 | | | Delek U.S. Holdings, Inc. | | | 3,103,738 | |
| | 60,155 | | | Diamondback Energy, Inc. | | | 5,585,993 | |
| | 622,239 | | | Encana Corp. | | | 2,918,301 | |
| | 239,302 | | | Noble Energy, Inc. | | | 5,944,262 | |
| | 83,108 | | | Viper Energy Partners L.P. | | | 2,049,443 | |
| | | | | | | | |
| | | | | | | 19,601,737 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.4% | |
| | 105,422 | | | US Foods Holding Corp.* | | | 4,416,128 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 0.9% | |
| | 25,993 | | | Post Holdings, Inc.* | | | 2,835,836 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.4% | |
| | 70,787 | | | Acadia Healthcare Co., Inc.* | | | 2,351,544 | |
| | 89,799 | | | Centene Corp.* | | | 5,645,663 | |
| | 68,938 | | | Encompass Health Corp. | | | 4,775,335 | |
| | 39,476 | | | Hill-Rom Holdings, Inc. | | | 4,481,710 | |
| | 9,431 | | | STERIS plc | | | 1,437,473 | |
| | 33,023 | | | Zimmer Biomet Holdings, Inc. | | | 4,942,883 | |
| | | | | | | | |
| | | | | | | 23,634,608 | |
| | | | | | | | |
| | | | Insurance - 9.5% | |
| | 52,439 | | | Arthur J Gallagher & Co. | | | 4,993,766 | |
| | 38,231 | | | Assurant, Inc. | | | 5,011,319 | |
| | 251,886 | | | CNO Financial Group, Inc. | | | 4,566,693 | |
| | 32,403 | | | Hanover Insurance Group, Inc. | | | 4,428,518 | |
| | 57,075 | | | Kemper Corp. | | | 4,423,313 | |
| | 211,808 | | | Lancashire Holdings Ltd. | | | 2,157,774 | |
| | 30,292 | | | Reinsurance Group of America, Inc. | | | 4,939,414 | |
| | | | | | | | |
| | | | | | | 30,520,797 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.7% - (continued) | | | |
| | | | Materials - 8.9% | |
| | 95,084 | | | Buzzi Unicem S.p.A. | | $ | 2,396,772 | |
| | 70,077 | | | Cabot Corp. | | | 3,330,059 | |
| | 64,009 | | | Carpenter Technology Corp. | | | 3,186,368 | |
| | 49,474 | | | Celanese Corp. | | | 6,091,239 | |
| | 58,578 | | | Crown Holdings, Inc.* | | | 4,249,248 | |
| | 58,600 | | | FMC Corp. | | | 5,849,452 | |
| | 29,767 | | | Reliance Steel & Aluminum Co. | | | 3,564,896 | |
| | | | | | | | |
| | | | | | | 28,668,034 | |
| | | | | | | | |
| | | | Media & Entertainment - 2.9% | |
| | 103,772 | | | Cinemark Holdings, Inc. | | | 3,512,682 | |
| | 31,227 | | | Electronic Arts, Inc.* | | | 3,357,215 | |
| | 149,783 | | | TEGNA, Inc. | | | 2,499,878 | |
| | | | | | | | |
| | | | | | | 9,369,775 | |
| | | | | | | | |
| | | | Real Estate - 11.5% | |
| | 28,931 | | | Boston Properties, Inc. REIT | | | 3,988,428 | |
| | 149,566 | | | Brixmor Property Group, Inc. REIT | | | 3,232,121 | |
| | 137,800 | | | Corporate Office Properties Trust REIT | | | 4,048,564 | |
| | 85,667 | | | First Industrial Realty Trust, Inc. REIT | | | 3,556,037 | |
| | 111,239 | | | Gaming and Leisure Properties, Inc. REIT | | | 4,788,839 | |
| | 101,388 | | | Highwoods Properties, Inc. REIT | | | 4,958,887 | |
| | 36,875 | | | Life Storage, Inc. REIT | | | 3,992,825 | |
| | 76,711 | | | Park Hotels & Resorts, Inc. REIT | | | 1,984,514 | |
| | 177,354 | | | Physicians Realty Trust REIT | | | 3,359,085 | |
| | 83,164 | | | STORE Capital Corp. REIT | | | 3,097,027 | |
| | | | | | | | |
| | | | | | | 37,006,327 | |
| | | | | | | | |
| | | | Retailing - 1.8% | |
| | 30,453 | | | Dollar Tree, Inc.* | | | 2,864,105 | |
| | 27,860 | | | Expedia Group, Inc. | | | 3,012,780 | |
| | | | | | | | |
| | | | | | | 5,876,885 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.8% | |
| | 17,064 | | | KLA Corp. | | | 3,040,293 | |
| | 13,129 | | | Lam Research Corp. | | | 3,838,919 | |
| | 34,672 | | | MKS Instruments, Inc. | | | 3,814,267 | |
| | 31,330 | | | Silicon Motion Technology Corp. ADR | | | 1,588,744 | |
| | | | | | | | |
| | | | | | | 12,282,223 | |
| | | | | | | | |
| | | | Software & Services - 3.4% | |
| | 57,089 | | | Amdocs Ltd. | | | 4,121,255 | |
| | 41,813 | | | Leidos Holdings, Inc. | | | 4,093,074 | |
| | 45,475 | | | SS&C Technologies Holdings, Inc. | | | 2,792,165 | |
| | | | | | | | |
| | | | | | | 11,006,494 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 5.9% | |
| | 27,758 | | | Arrow Electronics, Inc.* | | | 2,352,213 | |
| | 21,153 | | | Coherent, Inc.* | | | 3,518,802 | |
| | 33,930 | | | Itron, Inc.* | | | 2,848,423 | |
| | 69,449 | | | Lumentum Holdings, Inc.* | | | 5,507,306 | |
| | 71,249 | | | Western Digital Corp. | | | 4,522,174 | |
| | | | | | | | |
| | | | | | | 18,748,918 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.0% | |
| | 67,978 | | | Millicom International Cellular S.A.(1) | | | 3,264,568 | |
| | | | | | | | |
| | | | Transportation - 1.0% | |
| | 160,749 | | | JetBlue Airways Corp.* | | | 3,009,221 | |
| | | | | | | | |
| | | | Utilities - 5.8% | |
| | 92,582 | | | Alliant Energy Corp. | | | 5,066,087 | |
| | 43,857 | | | Evergy, Inc. | | | 2,854,652 | |
| | 35,485 | | | Sempra Energy | | | 5,375,268 | |
| | 117,739 | | | UGI Corp. | | | 5,317,093 | |
| | | | | | | | |
| | | | | | | 18,613,100 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $260,175,619) | | $ | 316,612,311 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford MidCap Value HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 2.2% | | | |
| | | | Other Investment Pools & Funds - 1.2% | |
| | 3,758,482 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(2) | | $ | 3,758,482 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 1.0% | |
| | 170,096 | | | Citibank NA DDCA, 1.54%, 1/2/2020(2) | | | 170,096 | |
| | 824,805 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(2) | | | 824,805 | |
| | 760,109 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(2) | | | 760,109 | |
| | 380,055 | | | JPMorgan Prime Money Market Fund,
1.69%(2) | | | 380,055 | |
| | 1,013,479 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(2) | | | 1,013,479 | |
| | 253,370 | | | State Street Institutional Liquid Reserves Fund, 1.70%(2) | | | 253,370 | |
| | | | | | | | |
| | | | | | | 3,401,914 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $7,160,396) | | $ | 7,160,396 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $267,336,015) | | | 100.9 | % | | $ | 323,772,707 | |
| | | | Other Assets and Liabilities | | | (0.9 | )% | | | (2,943,015 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 320,829,692 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 30,292,176 | | | $ | 30,292,176 | | | $ | — | | | $ | — | |
Capital Goods | | | 33,574,695 | | | | 33,574,695 | | | | — | | | | — | |
Commercial & Professional Services | | | 4,522,198 | | | | 4,522,198 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 7,771,863 | | | | 7,771,863 | | | | — | | | | — | |
Consumer Services | | | 8,054,771 | | | | 8,054,771 | | | | — | | | | — | |
Diversified Financials | | | 3,541,957 | | | | 3,541,957 | | | | — | | | | — | |
Energy | | | 19,601,737 | | | | 19,601,737 | | | | — | | | | — | |
Food & Staples Retailing | | | 4,416,128 | | | | 4,416,128 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 2,835,836 | | | | 2,835,836 | | | | — | | | | — | |
Health Care Equipment & Services | | | 23,634,608 | | | | 23,634,608 | | | | — | | | | — | |
Insurance | | | 30,520,797 | | | | 28,363,023 | | | | 2,157,774 | | | | — | |
Materials | | | 28,668,034 | | | | 26,271,262 | | | | 2,396,772 | | | | — | |
Media & Entertainment | | | 9,369,775 | | | | 9,369,775 | | | | — | | | | — | |
Real Estate | | | 37,006,327 | | | | 37,006,327 | | | | — | | | | — | |
Retailing | | | 5,876,885 | | | | 5,876,885 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 12,282,223 | | | | 12,282,223 | | | | — | | | | — | |
Software & Services | | | 11,006,494 | | | | 11,006,494 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 18,748,918 | | | | 18,748,918 | | | | — | | | | — | |
Telecommunication Services | | | 3,264,568 | | | | — | | | | 3,264,568 | | | | — | |
Transportation | | | 3,009,221 | | | | 3,009,221 | | | | — | | | | — | |
Utilities | | | 18,613,100 | | | | 18,613,100 | | | | — | | | | — | |
Short-Term Investments | | | 7,160,396 | | | | 7,160,396 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 323,772,707 | | | $ | 315,953,593 | | | $ | 7,819,114 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% | |
| | | | Automobiles & Components - 1.2% | |
| | 140,026 | | | Thor Industries, Inc. | | $ | 10,402,531 | |
| | 66,132 | | | Visteon Corp.* | | | 5,726,370 | |
| | | | | | | | |
| | | | | | | 16,128,901 | |
| | | | | | | | |
| | | | Banks - 4.2% | |
| | 224,328 | | | First Busey Corp. | | | 6,169,020 | |
| | 269,394 | | | First Hawaiian, Inc. | | | 7,772,017 | |
| | 849,199 | | | MGIC Investment Corp. | | | 12,033,150 | |
| | 235,637 | | | Seacoast Banking Corp. of Florida* | | | 7,203,423 | |
| | 442,831 | | | Sterling Bancorp | | | 9,334,877 | |
| | 200,125 | | | Triumph Bancorp, Inc.* | | | 7,608,753 | |
| | 94,427 | | | Western Alliance Bancorp | | | 5,382,339 | |
| | | | | | | | |
| | | | | | | 55,503,579 | |
| | | | | | | | |
| | | | Capital Goods - 12.9% | |
| | 264,627 | | | Aerojet Rocketdyne Holdings, Inc.* | | | 12,082,869 | |
| | 275,085 | | | Altra Industrial Motion Corp. | | | 9,960,828 | |
| | 71,402 | | | American Woodmark Corp.* | | | 7,462,223 | |
| | 195,309 | | | Applied Industrial Technologies, Inc. | | | 13,025,157 | |
| | 68,994 | | | Armstrong World Industries, Inc. | | | 6,483,366 | |
| | 116,940 | | | Axon Enterprise, Inc.* | | | 8,569,363 | |
| | 133,290 | | | AZZ, Inc. | | | 6,124,675 | |
| | 76,045 | | | Curtiss-Wright Corp. | | | 10,713,980 | |
| | 138,094 | | | EnerSys | | | 10,333,574 | |
| | 142,601 | | | Generac Holdings, Inc.* | | | 14,344,235 | |
| | 178,712 | | | ITT, Inc. | | | 13,208,604 | |
| | 137,552 | | | John Bean Technologies Corp. | | | 15,496,608 | |
| | 103,300 | | | Mercury Systems, Inc.* | | | 7,139,063 | |
| | 195,181 | | | Patrick Industries, Inc. | | | 10,233,340 | |
| | 294,573 | | | Rexnord Corp.* | | | 9,608,971 | |
| | 194,818 | | | SPX Corp.* | | | 9,912,340 | |
| | 153,810 | | | SPX FLOW, Inc.* | | | 7,516,695 | |
| | | | | | | | |
| | | | | | | 172,215,891 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 5.3% | |
| | 221,133 | | | ASGN, Inc.* | | | 15,693,809 | |
| | 129,092 | | | Clean Harbors, Inc.* | | | 11,069,639 | |
| | 182,081 | | | Exponent, Inc. | | | 12,565,410 | |
| | 90,273 | | | Huron Consulting Group, Inc.* | | | 6,203,561 | |
| | 112,451 | | | Insperity, Inc. | | | 9,675,284 | |
| | 91,574 | | | MSA Safety, Inc. | | | 11,571,291 | |
| | 50,623 | | | Viad Corp. | | | 3,417,052 | |
| | | | | | | | |
| | | | | | | 70,196,046 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 6.2% | |
| | 651,050 | | | American Outdoor Brands Corp.* | | | 6,041,744 | |
| | 82,873 | | | Carter’s, Inc. | | | 9,061,334 | |
| | 146,317 | | | Oxford Industries, Inc. | | | 11,035,228 | |
| | 385,563 | | | Steven Madden Ltd. | | | 16,583,065 | |
| | 142,625 | | | TopBuild Corp.* | | | 14,701,785 | |
| | 439,956 | | | Wolverine World Wide, Inc. | | | 14,844,115 | |
| | 287,017 | | | YETI Holdings, Inc.* | | | 9,982,451 | |
| | | | | | | | |
| | | | | | | 82,249,722 | |
| | | | | | | | |
| | | | Consumer Services - 2.2% | |
| | 94,792 | | | Dunkin’ Brands Group, Inc. | | | 7,160,588 | |
| | 89,765 | | | Marriott Vacations Worldwide Corp. | | | 11,558,141 | |
| | 122,753 | | | Wingstop, Inc. | | | 10,584,991 | |
| | | | | | | | |
| | | | | | | 29,303,720 | |
| | | | | | | | |
| | | | Diversified Financials - 2.3% | |
| | 258,472 | | | Blucora, Inc.* | | | 6,756,458 | |
| | 108,969 | | | Evercore, Inc. Class A | | | 8,146,523 | |
| | 177,422 | | | OneMain Holdings, Inc. | | | 7,478,337 | |
| | 973,009 | | | SLM Corp. | | | 8,669,510 | |
| | | | | | | | |
| | | | | | | 31,050,828 | |
| | | | | | | | �� |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Energy - 0.6% | |
| | 878,728 | | | Kosmos Energy Ltd. | | $ | 5,008,750 | |
| | 133,450 | | | PDC Energy, Inc.* | | | 3,492,386 | |
| | | | | | | | |
| | | | | | | 8,501,136 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.5% | |
| | 28,014 | | | Casey’s General Stores, Inc. | | | 4,453,946 | |
| | 313,787 | | | Performance Food Group Co.* | | | 16,153,755 | |
| | | | | | | | |
| | | | | | | 20,607,701 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.1% | |
| | 224,588 | | | B&G Foods, Inc.(1) | | | 4,026,863 | |
| | 159,560 | | | Freshpet, Inc.* | | | 9,428,400 | |
| | 717,456 | | | Hostess Brands, Inc.* | | | 10,431,810 | |
| | 41,226 | | | Post Holdings, Inc.* | | | 4,497,757 | |
| | | | | | | | |
| | | | | | | 28,384,830 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 12.1% | |
| | 68,162 | | | Addus HomeCare Corp.* | | | 6,626,710 | |
| | 240,697 | | | AtriCure, Inc.* | | | 7,825,059 | |
| | 167,526 | | | Cardiovascular Systems, Inc.* | | | 8,140,088 | |
| | 245,064 | | | Globus Medical, Inc. Class A* | | | 14,429,368 | |
| | 108,822 | | | Haemonetics Corp.* | | | 12,503,648 | |
| | 365,056 | | | HMS Holdings Corp.* | | | 10,805,658 | |
| | 15,642 | | | ICU Medical, Inc.* | | | 2,926,931 | |
| | 130,616 | | | Integer Holdings Corp.* | | | 10,505,445 | |
| | 164,130 | | | Integra LifeSciences Holdings Corp.* | | | 9,565,496 | |
| | 70,766 | | | iRhythm Technologies, Inc.* | | | 4,818,457 | |
| | 79,559 | | | LHC Group, Inc.* | | | 10,960,048 | |
| | 75,294 | | | NuVasive, Inc.* | | | 5,823,238 | |
| | 201,083 | | | Omnicell, Inc.* | | | 16,432,503 | |
| | 372,262 | | | OraSure Technologies, Inc.* | | | 2,989,264 | |
| | 72,851 | | | Providence Service Corp.* | | | 4,311,322 | |
| | 814,162 | | | R1 RCM, Inc.* | | | 10,567,823 | |
| | 139,189 | | | Tandem Diabetes Care, Inc.* | | | 8,297,056 | |
| | 111,439 | | | Teladoc Health, Inc.*(1) | | | 9,329,673 | |
| | 41,405 | | | U.S. Physical Therapy, Inc. | | | 4,734,662 | |
| | | | | | | | |
| | | | | | | 161,592,449 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.4% | |
| | 258,873 | | | BellRing Brands, Inc. Class A* | | | 5,511,406 | |
| | | | | | | | |
| | | | Insurance - 1.4% | |
| | 243,148 | | | James River Group Holdings Ltd. | | | 10,020,129 | |
| | 106,462 | | | Kemper Corp. | | | 8,250,805 | |
| | | | | | | | |
| | | | | | | 18,270,934 | |
| | | | | | | | |
| | | | Materials - 3.6% | |
| | 214,106 | | | Boise Cascade Co. | | | 7,821,292 | |
| | 588,385 | | | Graphic Packaging Holding Co. | | | 9,796,610 | |
| | 114,473 | | | Ingevity Corp.* | | | 10,002,651 | |
| | 615,658 | | | Livent Corp.* | | | 5,263,876 | |
| | 224,106 | | | Louisiana-Pacific Corp. | | | 6,649,225 | |
| | 242,681 | | | PolyOne Corp. | | | 8,928,234 | |
| | | | | | | | |
| | | | | | | 48,461,888 | |
| | | | | | | | |
| | | | Media & Entertainment - 0.9% | |
| | 113,307 | | | Cardlytics, Inc.* | | | 7,122,478 | |
| | 152,891 | | | Cargurus, Inc.* | | | 5,378,705 | |
| | | | | | | | |
| | | | | | | 12,501,183 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 16.9% | |
| | 227,314 | | | Abeona Therapeutics, Inc.*(1) | | | 743,317 | |
| | 118,256 | | | ACADIA Pharmaceuticals, Inc.* | | | 5,058,992 | |
| | 135,087 | | | Acceleron Pharma, Inc.* | | | 7,162,313 | |
| | 145,720 | | | Aerie Pharmaceuticals, Inc.* | | | 3,522,052 | |
| | 172,818 | | | Aimmune Therapeutics, Inc.* | | | 5,784,218 | |
| | 67,841 | | | Allakos, Inc.*(1) | | | 6,469,318 | |
| | 280,863 | | | Apellis Pharmaceuticals, Inc.* | | | 8,600,025 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 16.9% - (continued) | |
| | 186,620 | | | Arena Pharmaceuticals, Inc.* | | $ | 8,476,280 | |
| | 120,621 | | | Biohaven Pharmaceutical Holding Co., Ltd.* | | | 6,566,607 | |
| | 133,662 | | | Blueprint Medicines Corp.* | | | 10,707,663 | |
| | 113,343 | | | Catalent, Inc.* | | | 6,381,211 | |
| | 110,394 | | | Constellation Pharmaceuticals, Inc.* | | | 5,200,661 | |
| | 132,463 | | | G1 Therapeutics, Inc.* | | | 3,500,997 | |
| | 109,015 | | | Global Blood Therapeutics, Inc.* | | | 8,665,602 | |
| | 356,351 | | | Heron Therapeutics, Inc.* | | | 8,374,249 | |
| | 72,576 | | | Intercept Pharmaceuticals, Inc.*(1) | | | 8,993,618 | |
| | 183,319 | | | Intersect ENT, Inc.* | | | 4,564,643 | |
| | 298,588 | | | Iovance Biotherapeutics, Inc.* | | | 8,264,916 | |
| | 112,700 | | | Karyopharm Therapeutics, Inc.* | | | 2,160,459 | |
| | 125,992 | | | Kodiak Sciences, Inc.* | | | 9,065,124 | |
| | 45,147 | | | Ligand Pharmaceuticals, Inc.*(1) | | | 4,708,381 | |
| | 42,005 | | | Madrigal Pharmaceuticals, Inc.* | | | 3,827,076 | |
| | 54,498 | | | Mirati Therapeutics, Inc.* | | | 7,022,612 | |
| | 149,805 | | | MyoKardia, Inc.* | | | 10,918,537 | |
| | 195,545 | | | NanoString Technologies, Inc.* | | | 5,440,062 | |
| | 158,430 | | | Portola Pharmaceuticals, Inc.* | | | 3,783,308 | |
| | 156,611 | | | Principia Biopharma, Inc.* | | | 8,579,151 | |
| | 183,345 | | | Radius Health, Inc.* | | | 3,696,235 | |
| | 35,985 | | | Reata Pharmaceuticals, Inc. Class A* | | | 7,356,414 | |
| | 97,714 | | | REGENXBIO, Inc.* | | | 4,003,343 | |
| | 52,562 | | | Repligen Corp.* | | | 4,861,985 | |
| | 267,912 | | | Revance Therapeutics, Inc.* | | | 4,348,212 | |
| | 228,667 | | | Rhythm Pharmaceuticals, Inc.* | | | 5,250,194 | |
| | 293,872 | | | Spectrum Pharmaceuticals, Inc.* | | | 1,069,694 | |
| | 142,704 | | | Syneos Health, Inc.* | | | 8,487,320 | |
| | 129,332 | | | Theravance Biopharma, Inc.* | | | 3,348,405 | |
| | 150,256 | | | Ultragenyx Pharmaceutical, Inc.* | | | 6,417,434 | |
| | 139,375 | | | Y-mAbs Therapeutics, Inc.* | | | 4,355,469 | |
| | | | | | | | |
| | | | | | | 225,736,097 | |
| | | | | | | | |
| | | | Real Estate - 2.9% | | | |
| | 298,772 | | | Columbia Property Trust, Inc. REIT | | | 6,247,323 | |
| | 61,454 | | | Coresite Realty Corp. REIT | | | 6,890,222 | |
| | 227,697 | | | Corporate Office Properties Trust REIT | | | 6,689,738 | |
| | 153,758 | | | Independence Realty Trust, Inc. REIT | | | 2,164,913 | |
| | 241,305 | | | Pebblebrook Hotel Trust REIT | | | 6,469,387 | |
| | 62,237 | | | PS Business Parks, Inc. REIT | | | 10,261,014 | |
| | | | | | | | |
| | | | | | | 38,722,597 | |
| | | | | | | | |
| | | | Retailing - 3.9% | | | |
| | 567,606 | | | American Eagle Outfitters, Inc. | | | 8,343,808 | |
| | 446,784 | | | Caleres, Inc. | | | 10,611,120 | |
| | 130,217 | | | Core-Mark Holding Co., Inc. | | | 3,540,600 | |
| | 179,777 | | | Floor & Decor Holdings, Inc. Class A* | | | 9,134,469 | |
| | 186,693 | | | Foot Locker, Inc. | | | 7,279,160 | |
| | 165,604 | | | Nordstrom, Inc. | | | 6,778,172 | |
| | 221,133 | | | Urban Outfitters, Inc.* | | | 6,140,864 | |
| | | | | | | | |
| | | | | | | 51,828,193 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 3.0% | |
| | 398,583 | | | Cohu, Inc. | | | 9,107,622 | |
| | 236,342 | | | Entegris, Inc. | | | 11,838,371 | |
| | 514,699 | | | FormFactor, Inc.* | | | 13,366,733 | |
| | 140,156 | | | Onto Innovation, Inc.* | | | 5,121,300 | |
| | | | | | | | |
| | | | | | | 39,434,026 | |
| | | | | | | | |
| | | | Software & Services - 10.7% | | | |
| | 297,052 | | | 8x8, Inc.* | | | 5,436,052 | |
| | 153,196 | | | Blackbaud, Inc. | | | 12,194,402 | |
| | 42,363 | | | CACI International, Inc. Class A* | | | 10,590,326 | |
| | 119,240 | | | Everbridge, Inc.* | | | 9,310,259 | |
| | 261,816 | | | Five9, Inc.* | | | 17,169,893 | |
| | 181,715 | | | ForeScout Technologies, Inc.* | | | 5,960,252 | |
| | 92,408 | | | Instructure, Inc.* | | | 4,454,990 | |
| | 136,923 | | | LiveRamp Holdings, Inc.* | | | 6,581,889 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Software & Services - 10.7% - (continued) | | | |
| | 82,458 | | | Paylocity Holding Corp.* | | $ | 9,962,575 | |
| | 102,655 | | | Pegasystems, Inc. | | | 8,176,471 | |
| | 127,312 | | | PROS Holdings, Inc.* | | | 7,628,535 | |
| | 90,546 | | | Q2 Holdings, Inc.* | | | 7,341,470 | |
| | 146,070 | | | Rapid7, Inc.* | | | 8,182,841 | |
| | 214,202 | | | SailPoint Technologies Holding, Inc.* | | | 5,055,167 | |
| | 201,157 | | | Science Applications International Corp. | | | 17,504,682 | |
| | 430,812 | | | SVMK, Inc.* | | | 7,698,610 | |
| | | | | | | | |
| | | | | | | 143,248,414 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.3% | | | |
| | 251,294 | | | CTS Corp. | | | 7,541,333 | |
| | 162,803 | | | Itron, Inc.* | | | 13,667,312 | |
| | 145,235 | | | Lumentum Holdings, Inc.* | | | 11,517,136 | |
| | 320,692 | | | Pure Storage, Inc. Class A* | | | 5,487,040 | |
| | 51,303 | | | Rogers Corp.* | | | 6,399,023 | |
| | | | | | | | |
| | | | | | | 44,611,844 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.3% | | | |
| | 16,132 | | | Bandwidth, Inc. Class A* | | | 1,033,255 | |
| | 605,081 | | | ORBCOMM, Inc.* | | | 2,547,391 | |
| | | | | | | | |
| | | | | | | 3,580,646 | |
| | | | | | | | |
| | | | Transportation - 0.4% | | | |
| | 246,116 | | | Marten Transport Ltd. | | | 5,289,033 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,052,940,242) | | $ | 1,312,931,064 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.3% | |
| | | | Other Investment Pools & Funds - 0.4% | | | |
| | 4,552,239 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(2) | | $ | 4,552,239 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.9% | | | |
| | 616,115 | | | Citibank NA DDCA, 1.54%, 1/2/2020(2) | | | 616,115 | |
| | 2,987,584 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(2) | | | 2,987,584 | |
| | 2,753,244 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(2) | | | 2,753,244 | |
| | 1,376,622 | | | JPMorgan Prime Money Market Fund,
1.69%(2) | | | 1,376,622 | |
| | 3,670,992 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(2) | | | 3,670,992 | |
| | 917,748 | | | State Street Institutional Liquid Reserves Fund, 1.70%(2) | | | 917,748 | |
| | | | | | | | |
| | | | | | | 12,322,305 | |
| | | | | | | | |
| | | | Total Short-Term Investments
(cost $16,874,544) | | $ | 16,874,544 | |
| | | | | | | | |
| | | | | | | | | | |
| | | |
| | Total Investments
(cost $1,069,814,786) | | | 99.6 | % | | $ | 1,329,805,608 | |
| | Other Assets and Liabilities | | | 0.4 | % | | | 5,314,304 | |
| | | | | | | | | | |
| | Total Net Assets | | | 100.0 | % | | $ | 1,335,119,912 | |
| | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (2) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 16,128,901 | | | $ | 16,128,901 | | | $ | — | | | $ | — | |
Banks | | | 55,503,579 | | | | 55,503,579 | | | | — | | | | — | |
Capital Goods | | | 172,215,891 | | | | 172,215,891 | | | | — | | | | — | |
Commercial & Professional Services | | | 70,196,046 | | | | 70,196,046 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 82,249,722 | | | | 82,249,722 | | | | — | | | | — | |
Consumer Services | | | 29,303,720 | | | | 29,303,720 | | | | — | | | | — | |
Diversified Financials | | | 31,050,828 | | | | 31,050,828 | | | | — | | | | — | |
Energy | | | 8,501,136 | | | | 8,501,136 | | | | — | | | | — | |
Food & Staples Retailing | | | 20,607,701 | | | | 20,607,701 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 28,384,830 | | | | 28,384,830 | | | | — | | | | — | |
Health Care Equipment & Services | | | 161,592,449 | | | | 161,592,449 | | | | — | | | | — | |
Household & Personal Products | | | 5,511,406 | | | | 5,511,406 | | | | — | | | | — | |
Insurance | | | 18,270,934 | | | | 18,270,934 | | | | — | | | | — | |
Materials | | | 48,461,888 | | | | 48,461,888 | | | | — | | | | — | |
Media & Entertainment | | | 12,501,183 | | | | 12,501,183 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 225,736,097 | | | | 225,736,097 | | | | — | | | | — | |
Real Estate | | | 38,722,597 | | | | 38,722,597 | | | | — | | | | — | |
Retailing | | | 51,828,193 | | | | 51,828,193 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 39,434,026 | | | | 39,434,026 | | | | — | | | | — | |
Software & Services | | | 143,248,414 | | | | 143,248,414 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 44,611,844 | | | | 44,611,844 | | | | — | | | | — | |
Telecommunication Services | | | 3,580,646 | | | | 3,580,646 | | | | — | | | | — | |
Transportation | | | 5,289,033 | | | | 5,289,033 | | | | — | | | | — | |
Short-Term Investments | | | 16,874,544 | | | | 16,874,544 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,329,805,608 | | | $ | 1,329,805,608 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% | |
| | | | Banks - 4.7% | |
| | 108,150 | | | Ameris Bancorp | | $ | 4,600,701 | |
| | 136,401 | | | Atlantic Union Bankshares Corp. | | | 5,121,858 | |
| | 209,061 | | | BancorpSouth Bank | | | 6,566,606 | |
| | 333,125 | | | MGIC Investment Corp. | | | 4,720,381 | |
| | 407,419 | | | Sterling Bancorp | | | 8,588,392 | |
| | | | | | | | |
| | | | | | | 29,597,938 | |
| | | | | | | | |
| | | | Capital Goods - 12.0% | |
| | 222,796 | | | Advanced Drainage Systems, Inc. | | | 8,653,397 | |
| | 106,620 | | | Aerojet Rocketdyne Holdings, Inc.* | | | 4,868,269 | |
| | 37,538 | | | Applied Industrial Technologies, Inc. | | | 2,503,409 | |
| | 138,432 | | | Argan, Inc. | | | 5,556,661 | |
| | 57,075 | | | Axon Enterprise, Inc.* | | | 4,182,456 | |
| | 89,954 | | | Chart Industries, Inc.* | | | 6,070,995 | |
| | 57,874 | | | Curtiss-Wright Corp. | | | 8,153,868 | |
| | 84,605 | | | EnerSys | | | 6,330,992 | |
| | 160,597 | | | ITT, Inc. | | | 11,869,724 | |
| | 380,229 | | | Rexnord Corp.* | | | 12,403,070 | |
| | 89,055 | | | Rush Enterprises, Inc. Class A | | | 4,141,058 | |
| | | | | | | | |
| | | | | | | 74,733,899 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 3.7% | |
| | 78,451 | | | Brink’s Co. | | | 7,113,937 | |
| | 102,515 | | | McGrath Rent Corp. | | | 7,846,498 | |
| | 141,924 | | | TriNet Group, Inc.* | | | 8,034,317 | |
| | | | | | | | |
| | | | | | | 22,994,752 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 9.0% | |
| | 165,128 | | | Acushnet Holdings Corp. | | | 5,366,660 | |
| | 213,116 | | | BRP, Inc. | | | 9,709,247 | |
| | 81,834 | | | Carter’s, Inc. | | | 8,947,730 | |
| | 34,189 | | | Cavco Industries, Inc.* | | | 6,679,847 | |
| | 149,880 | | | Peloton Interactive, Inc. Class A* | | | 4,256,592 | |
| | 309,022 | | | Skyline Champion Corp.* | | | 9,795,997 | |
| | 267,365 | | | Under Armour, Inc. Class C* | | | 5,128,061 | |
| | 181,748 | | | YETI Holdings, Inc.* | | | 6,321,195 | |
| | | | | | | | |
| | | | | | | 56,205,329 | |
| | | | | | | | |
| | | | Consumer Services - 7.0% | |
| | 155,980 | | | Cheesecake Factory, Inc.(1) | | | 6,061,383 | |
| | 197,625 | | | Chegg, Inc.* | | | 7,491,964 | |
| | 909,759 | | | DraftKings, Inc.*(2)(3)(4) | | | 3,113,195 | |
| | 35,478 | | | Grand Canyon Education, Inc.* | | | 3,398,438 | |
| | 99,493 | | | Marriott Vacations Worldwide Corp. | | | 12,810,719 | |
| | 144,764 | | | Planet Fitness, Inc. Class A* | | | 10,810,975 | |
| | | | | | | | |
| | | | | | | 43,686,674 | |
| | | | | | | | |
| | | | Diversified Financials - 1.4% | |
| | 122,606 | | | Ares Management Corp. Class A | | | 4,375,808 | |
| | 125,835 | | | PRA Group, Inc.* | | | 4,567,811 | |
| | | | | | | | |
| | | | | | | 8,943,619 | |
| | | | | | | | |
| | | | Energy - 0.5% | |
| | 138,732 | | | Viper Energy Partners L.P. | | | 3,421,131 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.3% | |
| | 163,013 | | | Performance Food Group Co.* | | | 8,391,909 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 0.7% | |
| | 191,283 | | | Nomad Foods Ltd.* | | | 4,279,001 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 12.4% | |
| | 55,793 | | | Amedisys, Inc.* | | | 9,312,968 | |
| | 117,836 | | | Globus Medical, Inc. Class A* | | | 6,938,184 | |
| | 81,498 | | | Haemonetics Corp.* | | | 9,364,120 | |
| | 77,880 | | | Hill-Rom Holdings, Inc. | | | 8,841,716 | |
| | 184,858 | | | HMS Holdings Corp.* | | | 5,471,797 | |
| | 57,735 | | | Insulet Corp.* | | | 9,884,232 | |
| | 30,501 | | | Novocure Ltd.* | | | 2,570,319 | |
| | 166,000 | | | Omnicell, Inc.* | | | 13,565,520 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% - (continued) | |
| | | | Health Care Equipment & Services - 12.4% - (continued) | |
| | 154,437 | | | Tandem Diabetes Care, Inc.* | | $ | 9,205,990 | |
| | 26,031 | | | Teladoc Health, Inc.* | | | 2,179,315 | |
| | | | | | | | |
| | | | | | | 77,334,161 | |
| | | | | | | | |
| | | | Insurance - 0.8% | |
| | 115,765 | | | James River Group Holdings Ltd. | | | 4,770,676 | |
| | | | | | | | |
| | | | Materials - 3.2% | |
| | 150,808 | | | Carpenter Technology Corp. | | | 7,507,222 | |
| | 89,292 | | | Ingevity Corp.* | | | 7,802,335 | |
| | 152,888 | | | Louisiana-Pacific Corp. | | | 4,536,187 | |
| | | | | | | | |
| | | | | | | 19,845,744 | |
| | | | | | | | |
| | | | Media & Entertainment - 0.7% | |
| | 70,211 | | | Cardlytics, Inc.* | | | 4,413,463 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 17.0% | |
| | 69,830 | | | ACADIA Pharmaceuticals, Inc.* | | | 2,987,327 | |
| | 63,382 | | | Acceleron Pharma, Inc.* | | | 3,360,514 | |
| | 103,345 | | | Aerie Pharmaceuticals, Inc.* | | | 2,497,849 | |
| | 408,085 | | | Amicus Therapeutics, Inc.* | | | 3,974,748 | |
| | 114,315 | | | Apellis Pharmaceuticals, Inc.* | | | 3,500,325 | |
| | 110,444 | | | Arena Pharmaceuticals, Inc.* | | | 5,016,366 | |
| | 24,876 | | | Ascendis Pharma AS ADR* | | | 3,460,749 | |
| | 66,353 | | | Blueprint Medicines Corp.* | | | 5,315,539 | |
| | 69,110 | | | Forty Seven, Inc.* | | | 2,720,861 | |
| | 100,335 | | | G1 Therapeutics, Inc.* | | | 2,651,854 | |
| | 37,181 | | | Galapagos N.V. ADR*(1) | | | 7,690,146 | |
| | 43,829 | | | Global Blood Therapeutics, Inc.* | | | 3,483,967 | |
| | 152,515 | | | Heron Therapeutics, Inc.* | | | 3,584,102 | |
| | 241,180 | | | Iovance Biotherapeutics, Inc.* | | | 6,675,862 | |
| | 178,654 | | | Karyopharm Therapeutics, Inc.* | | | 3,424,797 | |
| | 33,842 | | | Kodiak Sciences, Inc.* | | | 2,434,932 | |
| | 90,524 | | | MyoKardia, Inc.* | | | 6,597,842 | |
| | 216,206 | | | Orchard Therapeutics plc* | | | 2,972,833 | |
| | 66,564 | | | PRA Health Sciences, Inc.* | | | 7,398,589 | |
| | 82,967 | | | Principia Biopharma, Inc.* | | | 4,544,932 | |
| | 65,293 | | | PTC Therapeutics, Inc.* | | | 3,136,023 | |
| | 18,899 | | | Reata Pharmaceuticals, Inc. Class A* | | | 3,863,523 | |
| | 204,564 | | | Revance Therapeutics, Inc.* | | | 3,320,074 | |
| | 132,252 | | | Rhythm Pharmaceuticals, Inc.* | | | 3,036,506 | |
| | 36,665 | | | Sage Therapeutics, Inc.* | | | 2,646,846 | |
| | 220,082 | | | Sangamo Therapeutics, Inc.* | | | 1,842,086 | |
| | 129,248 | | | Y-mAbs Therapeutics, Inc.* | | | 4,039,000 | |
| | | | | | | | |
| | | | | | | 106,178,192 | |
| | | | | | | | |
| | | | Real Estate - 2.5% | |
| | 166,167 | | | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | | | 5,347,254 | |
| | 93,147 | | | NexPoint Residential Trust, Inc. REIT | | | 4,191,615 | |
| | 277,012 | | | Xenia Hotels & Resorts, Inc. REIT | | | 5,986,229 | |
| | | | | | | | |
| | | | | | | 15,525,098 | |
| | | | | | | | |
| | | | Retailing - 3.4% | |
| | 5,016,400 | | | Allstar Co.*(2)(3)(4) | | | 2,006,560 | |
| | 50,257 | | | Five Below, Inc.* | | | 6,425,860 | |
| | 136,215 | | | Floor & Decor Holdings, Inc. Class A* | | | 6,921,084 | |
| | 48,785 | | | Ollie’s Bargain Outlet Holdings, Inc.* | | | 3,186,148 | |
| | 43,094 | | | Tory Burch LLC*(2)(3)(4) | | | 2,796,803 | |
| | | | | | | | |
| | | | | | | 21,336,455 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.9% | |
| | 116,397 | | | Entegris, Inc. | | | 5,830,326 | |
| | 499,441 | | | Tower Semiconductor Ltd.* | | | 12,016,550 | |
| | | | | | | | |
| | | | | | | 17,846,876 | |
| | | | | | | | |
| | | | Software & Services - 10.5% | |
| | 92,001 | | | Endava plc ADR* | | | 4,287,247 | |
| | 16,745 | | | EPAM Systems, Inc.* | | | 3,552,619 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.7% - (continued) | |
| | | | Software & Services - 10.5% - (continued) | |
| | 10,080 | | | Fair Isaac Corp.* | | $ | 3,776,774 | |
| | 91,811 | | | Five9, Inc.* | | | 6,020,965 | |
| | 57,997 | | | Guidewire Software, Inc.* | | | 6,366,331 | |
| | 31,993 | | | HubSpot, Inc.* | | | 5,070,891 | |
| | 149,774 | | | LiveRamp Holdings, Inc.* | | | 7,199,636 | |
| | 234,080 | | | Mimecast Ltd.* | | | 10,154,390 | |
| | 69,843 | | | PROS Holdings, Inc.* | | | 4,184,993 | |
| | 142,795 | | | Rapid7, Inc.* | | | 7,999,376 | |
| | 80,054 | | | Science Applications International Corp. | | | 6,966,299 | |
| | | | | | | | |
| | | | | | | 65,579,521 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 2.7% | |
| | 55,817 | | | Lumentum Holdings, Inc.* | | | 4,426,288 | |
| | 51,408 | | | Novanta, Inc.* | | | 4,546,524 | |
| | 30,519 | | | Zebra Technologies Corp. Class A* | | | 7,795,773 | |
| | | | | | | | |
| | | | | | | 16,768,585 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.6% | |
| | 55,590 | | | Bandwidth, Inc. Class A* | | | 3,560,540 | |
| | | | | | | | |
| | | | Transportation - 0.7% | |
| | 46,063 | | | Saia, Inc.* | | | 4,289,387 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $500,797,895) | | $ | 609,702,950 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 1.1% | |
| | | | Retailing - 0.5% | |
| | 74,004 | | | Honest Co., Inc. Series E*(2)(3)(4) | | $ | 2,884,676 | |
| | | | | | | | |
| | | | Software & Services - 0.6% | |
| | 410,300 | | | MarkLogic Corp. Series F*(2)(3)(4) | | $ | 3,926,571 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $8,151,359) | | $ | 6,811,247 | |
| | | | | | | | |
|
| ESCROWS - 0.0%(5) | |
| | | | Software & Services - 0.0% | |
| | 157,023 | | | Veracode, Inc.*(2)(3)(4) | | $ | 85,420 | |
| | | | | | | | |
| | |
| | | | Total Escrows
(cost $— ) | | $ | 85,420 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $508,949,254) | | $ | 616,599,617 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.8% | |
| | | | Other Investment Pools & Funds - 1.4% | |
| | 9,017,284 | | | BlackRock Liquidity Funds, FedFund Portfolio, Institutional Class,1.58%(6) | | $ | 9,017,284 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 1.4% | |
| | 430,451 | | | Citibank NA DDCA, 1.54%, 1/2/2020(6) | | | 430,451 | |
| | 2,087,286 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(6) | | | 2,087,286 | |
| | 1,923,564 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(6) | | | 1,923,564 | |
| | 961,782 | | | JPMorgan Prime Money Market Fund,
1.69%(6) | | | 961,782 | |
| | 2,564,751 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(6) | | | 2,564,751 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| SHORT-TERM INVESTMENTS - 2.8% - (continued) | |
| | | | Securities Lending Collateral - 1.4% - (continued) | |
| | 641,188 | | | State Street Institutional Liquid Reserves Fund, 1.70%(6) | | $ | 641,188 | |
| | | | | | | | |
| | | | | | | 8,609,022 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $17,626,306) | | $ | 17,626,306 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $526,575,560) | | | 101.6 | % | | $ | 634,225,923 | |
| | | | Other Assets and Liabilities | | | (1.6 | )% | | | (9,892,769 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 624,333,154 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (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, 2019, the aggregate fair value of these securities was $14,813,225, which represented 2.4% 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) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $14,813,225 or 2.4% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 08/2011 | | | Allstar Co. | | | 5,016,400 | | | $ | 2,182,229 | | | $ | 2,006,560 | |
| | 07/2015 | | | DraftKings, Inc. | | | 909,759 | | | | 3,430,143 | | | | 3,113,195 | |
| | 08/2015 | | | Honest Co., Inc. Series E Convertible Preferred | | | 74,004 | | | | 3,386,053 | | | | 2,884,676 | |
| | 04/2015 | | | MarkLogic Corp. Series F Convertible Preferred | | | 410,300 | | | | 4,765,306 | | | | 3,926,571 | |
| | 11/2013 | | | Tory Burch LLC | | | 43,094 | | | | 3,377,559 | | | | 2,796,803 | |
| | 04/2017 | | | Veracode, Inc. | | | 157,023 | | | | — | | | | 85,420 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 17,141,290 | | | $ | 14,813,225 | |
| | | | | | | | | | | | | | | | |
| (5) | Share amount represents shares of the issuer previously held that resulted in receipt of the escrow. |
| (6) | 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 Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 29,597,938 | | | $ | 29,597,938 | | | $ | — | | | $ | — | |
Capital Goods | | | 74,733,899 | | | | 74,733,899 | | | | — | | | | — | |
Commercial & Professional Services | | | 22,994,752 | | | | 22,994,752 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 56,205,329 | | | | 56,205,329 | | | | — | | | | — | |
Consumer Services | | | 43,686,674 | | | | 40,573,479 | | | | — | | | | 3,113,195 | |
Diversified Financials | | | 8,943,619 | | | | 8,943,619 | | | | — | | | | — | |
Energy | | | 3,421,131 | | | | 3,421,131 | | | | — | | | | — | |
Food & Staples Retailing | | | 8,391,909 | | | | 8,391,909 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 4,279,001 | | | | 4,279,001 | | | | — | | | | — | |
Health Care Equipment & Services | | | 77,334,161 | | | | 77,334,161 | | | | — | | | | — | |
Insurance | | | 4,770,676 | | | | 4,770,676 | | | | — | | | | — | |
Materials | | | 19,845,744 | | | | 19,845,744 | | | | — | | | | — | |
Media & Entertainment | | | 4,413,463 | | | | 4,413,463 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 106,178,192 | | | | 106,178,192 | | | | — | | | | — | |
Real Estate | | | 15,525,098 | | | | 15,525,098 | | | | — | | | | — | |
Retailing | | | 21,336,455 | | | | 16,533,092 | | | | — | | | | 4,803,363 | |
Semiconductors & Semiconductor Equipment | | | 17,846,876 | | | | 17,846,876 | | | | — | | | | — | |
Software & Services | | | 65,579,521 | | | | 65,579,521 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 16,768,585 | | | | 16,768,585 | | | | — | | | | — | |
Telecommunication Services | | | 3,560,540 | | | | 3,560,540 | | | | — | | | | — | |
Transportation | | | 4,289,387 | | | | 4,289,387 | | | | — | | | | — | |
Convertible Preferred Stocks | �� | | 6,811,247 | | | | — | | | | — | | | | 6,811,247 | |
Escrows | | | 85,420 | | | | — | | | | — | | | | 85,420 | |
Short-Term Investments | | | 17,626,306 | | | | 17,626,306 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 634,225,923 | | | $ | 619,412,698 | | | $ | — | | | $ | 14,813,225 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The following is a roll-forward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Convertable
Preferred
Stocks | | | Escrows | | | Total | |
Beginning balance | | $ | 5,772,836 | | | $ | 6,821,907 | | | $ | 178,845 | | | $ | 12,773,588 | |
Purchases | | | — | | | | — | | | | — | | | | — | |
Sales | | | — | | | | — | | | | (103,805 | ) | | | (103,805 | ) |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | 103,805 | | | | 103,805 | |
Net change in unrealized appreciation/depreciation | | | 2,143,722 | | | | (10,660 | ) | | | (93,425 | ) | | | 2,039,637 | |
Transfers into Level 3 | | | — | | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Ending balance | | $ | 7,916,558 | | | $ | 6,811,247 | | | $ | 85,420 | | | $ | 14,813,225 | |
| | | | | | | | | | | | | | | | |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2019 was $2,133,062.
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.4% | | | |
| | | | Banks - 2.5% | |
| | 232,544 | | | PNC Financial Services Group, Inc. | | $ | 37,120,999 | |
| | | | | | | | |
| | | | Capital Goods - 13.0% | |
| | 108,733 | | | 3M Co. | | | 19,182,676 | |
| | 132,233 | | | Deere & Co. | | | 22,910,690 | |
| | 214,945 | | | General Dynamics Corp. | | | 37,905,551 | |
| | 174,353 | | | Honeywell International, Inc. | | | 30,860,481 | |
| | 74,790 | | | Lockheed Martin Corp. | | | 29,121,730 | |
| | 69,120 | | | Northrop Grumman Corp. | | | 23,775,206 | |
| | 213,462 | | | United Technologies Corp. | | | 31,968,069 | |
| | | | | | | | |
| | | | | | | 195,724,403 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 4.5% | |
| | 470,114 | | | NIKE, Inc. Class B | | | 47,627,249 | |
| | 209,411 | | | VF Corp. | | | 20,869,900 | |
| | | | | | | | |
| | | | | | | 68,497,149 | |
| | | | | | | | |
| | | | Consumer Services - 3.6% | |
| | 275,153 | | | McDonald’s Corp. | | | 54,372,984 | |
| | | | | | | | |
| | | | Diversified Financials - 4.5% | |
| | 311,970 | | | American Express Co. | | | 38,837,145 | |
| | 57,594 | | | BlackRock, Inc. | | | 28,952,504 | |
| | | | | | | | |
| | | | | | | 67,789,649 | |
| | | | | | | | |
| | | | Energy - 1.4% | |
| | 304,559 | | | Exxon Mobil Corp. | | | 21,252,127 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.7% | |
| | 89,003 | | | Costco Wholesale Corp. | | | 26,159,762 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 8.4% | |
| | 1,011,028 | | | Coca-Cola Co. | | | 55,960,400 | |
| | 820,813 | | | Diageo plc | | | 34,586,314 | |
| | 271,407 | | | PepsiCo., Inc. | | | 37,093,195 | |
| | | | | | | | |
| | | | | | | 127,639,909 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 12.0% | |
| | 418,246 | | | Baxter International, Inc. | | | 34,973,730 | |
| | 224,797 | | | Danaher Corp. | | | 34,501,844 | |
| | 495,259 | | | Medtronic plc | | | 56,187,134 | |
| | 188,293 | | | UnitedHealth Group, Inc. | | | 55,354,376 | |
| | | | | | | | |
| | | | | | | 181,017,084 | |
| | | | | | | | |
| | | | Household & Personal Products - 5.1% | |
| | 567,186 | | | Colgate-Palmolive Co. | | | 39,045,084 | |
| | 299,640 | | | Procter & Gamble Co. | | | 37,425,036 | |
| | | | | | | | |
| | | | | | | 76,470,120 | |
| | | | | | | | |
| | | | Insurance - 5.5% | |
| | 278,183 | | | Chubb Ltd. | | | 43,301,966 | |
| | 359,739 | | | Marsh & McLennan Cos., Inc. | | | 40,078,522 | |
| | | | | | | | |
| | | | | | | 83,380,488 | |
| | | | | | | | |
| | | | Materials - 4.0% | |
| | 149,108 | | | Ecolab, Inc. | | | 28,776,353 | |
| | 150,914 | | | Linde plc | | | 32,129,590 | |
| | | | | | | | |
| | | | | | | 60,905,943 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 7.6% | |
| | 92,535 | | | Amgen, Inc. | | | 22,307,413 | |
| | 362,177 | | | Johnson & Johnson | | | 52,830,759 | |
| | 430,135 | | | Merck & Co., Inc. | | | 39,120,778 | |
| | | | | | | | |
| | | | | | | 114,258,950 | |
| | | | | | | | |
| | | | Real Estate - 4.0% | |
| | 130,063 | | | American Tower Corp. REIT | | | 29,891,079 | |
| | 146,022 | | | Public Storage REIT | | | 31,096,845 | |
| | | | | | | | |
| | | | | | | 60,987,924 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.4% - (continued) | | | |
| | | | Retailing - 5.3% | |
| | 9,440,100 | | | Allstar Co.*(1)(2)(3) | | $ | 3,776,040 | |
| | 127,892 | | | Home Depot, Inc. | | | 27,929,055 | |
| | 786,154 | | | TJX Cos., Inc. | | | 48,002,563 | |
| | | | | | | | |
| | | | | | | 79,707,658 | |
| | | | | | | | |
| | | | Software & Services - 9.3% | |
| | 169,901 | | | Accenture plc Class A | | | 35,776,054 | |
| | 137,041 | | | Automatic Data Processing, Inc. | | | 23,365,490 | |
| | 288,560 | | | Microsoft Corp. | | | 45,505,912 | |
| | 187,723 | | | Visa, Inc. Class A | | | 35,273,152 | |
| | | | | | | | |
| | | | | | | 139,920,608 | |
| | | | | | | | |
| | | | Transportation - 7.0% | |
| | 366,417 | | | Canadian National Railway Co. | | | 33,146,975 | |
| | 241,645 | | | Union Pacific Corp. | | | 43,687,000 | |
| | 243,006 | | | United Parcel Service, Inc. Class B | | | 28,446,282 | |
| | | | | | | | |
| | | | | | | 105,280,257 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,005,070,713) | | $ | 1,500,486,014 | |
| | | | | | | | |
| |
| SHORT-TERM INVESTMENTS - 1.1% | | | |
| | | | Other Investment Pools & Funds - 1.1% | |
| | 16,116,158 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(4) | | $ | 16,116,158 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $16,116,158) | | $ | 16,116,158 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,021,186,871) | | | 100.5 | % | | $ | 1,516,602,172 | |
| | | | Other Assets and Liabilities | | | (0.5 | )% | | | (7,008,037 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,509,594,135 | |
| | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Investment valued using significant unobservable inputs. |
| (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, 2019, the aggregate fair value of this security was $3,776,040, which represented 0.3% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2019
| (3) | Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). At the end of the period, the value of such restricted securities amounted to $3,776,040 or 0.3% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Base
Total Cost | | | Base
Market Value | |
| | 08/2011 | | | Allstar Co. | | | 9,440,100 | | | $ | 4,106,619 | | | $ | 3,776,040 | |
| (4) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 37,120,999 | | | $ | 37,120,999 | | | $ | — | | | $ | — | |
Capital Goods | | | 195,724,403 | | | | 195,724,403 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 68,497,149 | | | | 68,497,149 | | | | — | | | | — | |
Consumer Services | | | 54,372,984 | | | | 54,372,984 | | | | — | | | | — | |
Diversified Financials | | | 67,789,649 | | | | 67,789,649 | | | | — | | | | — | |
Energy | | | 21,252,127 | | | | 21,252,127 | | | | — | | | | — | |
Food & Staples Retailing | | | 26,159,762 | | | | 26,159,762 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 127,639,909 | | | | 93,053,595 | | | | 34,586,314 | | | | — | |
Health Care Equipment & Services | | | 181,017,084 | | | | 181,017,084 | | | | — | | | | — | |
Household & Personal Products | | | 76,470,120 | | | | 76,470,120 | | | | — | | | | — | |
Insurance | | | 83,380,488 | | | | 83,380,488 | | | | — | | | | — | |
Materials | | | 60,905,943 | | | | 60,905,943 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 114,258,950 | | | | 114,258,950 | | | | — | | | | — | |
Real Estate | | | 60,987,924 | | | | 60,987,924 | | | | — | | | | — | |
Retailing | | | 79,707,658 | | | | 75,931,618 | | | | — | | | | 3,776,040 | |
Software & Services | | | 139,920,608 | | | | 139,920,608 | | | | — | | | | — | |
Transportation | | | 105,280,257 | | | | 105,280,257 | | | | — | | | | — | |
Short-Term Investments | | | 16,116,158 | | | | 16,116,158 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,516,602,172 | | | $ | 1,478,239,818 | | | $ | 34,586,314 | | | $ | 3,776,040 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
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, 2019 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, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% | |
| | | | | | Asset-Backed - Automobile - 0.9% | |
| $ | | | 2,375,000 | | | AmeriCredit Automobile Receivables Trust 2.58%, 09/18/2025 | | $ | 2,351,558 | |
| | | 235,138 | | | CIG Automobile Receivables Trust 2.71%, 05/15/2023(1) | | | 235,397 | |
| | | 2,099,642 | | | Credit Acceptance Auto Loan Trust 2.65%, 06/15/2026(1) | | | 2,103,943 | |
| | | 2,045,000 | | | Drive Auto Receivables Trust 2.70%, 02/16/2027 | | | 2,030,442 | |
| | | 4,595,000 | | | Exeter Automobile Receivables Trust 2.58%, 09/15/2025(1) | | | 4,552,116 | |
| | | | | | Westlake Automobile Receivables Trust | |
| | | 3,365,000 | | | 2.72%, 11/15/2024(1) | | | 3,359,822 | |
| | | 4,810,000 | | | 3.28%, 12/15/2022(1) | | | 4,852,281 | |
| | | | | | | | | | |
| | | | | | | | | 19,485,559 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Finance & Insurance - 6.3% | |
| | | 4,805,951 | | | Avery Point CLO Ltd. 3.04%, 04/25/2026, 3 mo. USD LIBOR + 1.100%(1)(2) | | | 4,803,750 | |
| | | 975,519 | | | Babson CLO Ltd. 3.12%, 07/20/2025, 3 mo. USD LIBOR + 1.150%(1)(2) | | | 975,075 | |
| | | 5,130,655 | | | Bayview Koitere Fund Trust 3.50%, 07/28/2057(1)(3) | | | 5,218,571 | |
| | | | | | Bayview Opportunity Master Fund Trust | |
| | | 2,272,766 | | | 3.50%, 01/28/2055(1)(3) | | | 2,298,210 | |
| | | 2,674,426 | | | 3.50%, 06/28/2057(1)(3) | | | 2,716,373 | |
| | | 3,487,192 | | | 3.50%, 01/28/2058(1)(3) | | | 3,516,940 | |
| | | 2,055,347 | | | 4.00%, 11/28/2053(1)(3) | | | 2,104,081 | |
| | | 4,146,643 | | | 4.00%, 10/28/2064(1)(3) | | | 4,243,125 | |
| | | 1,445,337 | | | Bellemeade Re Ltd. 2.89%, 07/25/2029, 1 mo. USD LIBOR + 1.100%(1)(2) | | | 1,446,576 | |
| | | 579,417 | | | Cal Funding Ltd. 3.47%, 10/25/2027(1) | | | 580,211 | |
| | | 7,079,164 | | | Carlyle Global Market Strategies CLO Ltd. 2.72%, 04/27/2027, 3 mo. USD LIBOR + 0.780%(1)(2) | | | 7,062,174 | |
| | | 258,509 | | | CIFC Funding Ltd. 2.85%, 07/16/2030, 3 mo. USD LIBOR + 0.850%(1)(2) | | | 258,527 | |
| | | 4,175,000 | | | Cirrus Funding Ltd. 4.80%, 01/25/2037(1) | | | 4,370,628 | |
| | | 3,234,063 | | | Domino’s Pizza Master Issuer LLC 4.12%, 07/25/2048(1) | | | 3,325,975 | |
| | | 2,008,609 | | | Eagle RE Ltd. 3.49%, 11/25/2028, 1 mo. USD LIBOR + 1.700%(1)(2) | | | 2,011,400 | |
| | | 1,178,335 | | | Fieldstone Mortgage Investment Trust 2.06%, 05/25/2036, 1 mo. USD LIBOR + 0.270%(2) | | | 899,264 | |
| | | 3,267,261 | | | First Franklin Mortgage Loan Trust 2.03%, 04/25/2036, 1 mo. USD LIBOR + 0.240%(2) | | | 3,050,331 | |
| | | 3,291,374 | | | GSAMP Trust 1.88%, 01/25/2037, 1 mo. USD LIBOR + 0.090%(2) | | | 2,185,960 | |
| | | 4,275,061 | | | Madison Park Funding Ltd. 3.23%, 07/20/2026, 3 mo. USD LIBOR + 1.260%(1)(2) | | | 4,277,237 | |
| | | 4,034,185 | | | MFA Trust 3.35%, 11/25/2047(1)(4) | | | 4,033,785 | |
| | | | | | NRZ Excess Spread-Collateralized Notes | |
| | | 3,481,107 | | | 3.19%, 01/25/2023(1) | | | 3,491,928 | |
| | | 2,179,423 | | | 3.27%, 02/25/2023(1) | | | 2,181,159 | |
| | | 4,919,789 | | | OCP CLO Ltd. 2.85%, 04/17/2027, 3 mo. USD LIBOR + 0.850%(1)(2) | | | 4,917,295 | |
| | | 6,340,434 | | | OneMain Financial Issuance Trust 2.37%, 09/14/2032(1) | | | 6,339,428 | |
| | | 2,931,288 | | | Pretium Mortgage Credit Partners LLC 3.72%, 01/25/2059(1)(4) | | | 2,921,802 | |
| | | 1,475,765 | | | Radnor RE Ltd. 3.04%, 02/25/2029, 1 mo. USD LIBOR + 1.250%(1)(2) | | | 1,475,242 | |
| | | 1,115,723 | | | Seasoned Credit Risk Transfer Trust 3.50%, 08/25/2058 | | | 1,170,435 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Asset-Backed - Finance & Insurance - 6.3% - (continued) | |
| $ | | | 429,378 | | | Securitized Asset Backed Receivables LLC Trust 1.88%, 07/25/2036, 1 mo. USD LIBOR + 0.090%(2) | | $ | 218,353 | |
| | | | | | SoFi Consumer Loan Program LLC | |
| | | 691,923 | | | 2.50%, 05/26/2026(1) | | | 693,050 | |
| | | 350,158 | | | 2.77%, 05/25/2026(1) | | | 351,383 | |
| | | 555,256 | | | 3.05%, 12/26/2025(1) | | | 556,189 | |
| | | 442,113 | | | 3.09%, 10/27/2025(1) | | | 443,174 | |
| | | 518,688 | | | 3.28%, 01/26/2026(1) | | | 520,281 | |
| | | | | | Springleaf Funding Trust | |
| | | 8,130,000 | | | 2.68%, 07/15/2030(1) | | | 8,134,743 | |
| | | 1,049,245 | | | 2.90%, 11/15/2029(1) | | | 1,049,632 | |
| | | 8,660,000 | | | Symphony CLO Ltd. 2.95%, 07/14/2026, 3 mo. USD LIBOR + 0.950%(1)(2) | | | 8,660,303 | |
| | | | | | Towd Point Mortgage Trust | |
| | | 589,206 | | | 2.75%, 02/25/2055(1)(3) | | | 589,481 | |
| | | 6,454,274 | | | 2.75%, 10/25/2056(1)(3) | | | 6,498,314 | |
| | | 1,649,133 | | | 2.75%, 04/25/2057(1)(3) | | | 1,659,982 | |
| | | 4,663,958 | | | 2.75%, 06/25/2057(1)(3) | | | 4,691,444 | |
| | | 3,103,505 | | | 2.75%, 07/25/2057(1)(3) | | | 3,115,824 | |
| | | 7,550,000 | | | Voya CLO Ltd. 2.90%, 01/18/2029, 3 mo. USD LIBOR + 0.900%(1)(2) | | | 7,515,987 | |
| | | 2,038,400 | | | Wendy’s Funding LLC 3.88%, 03/15/2048(1) | | | 2,072,808 | |
| | | 1,796,425 | | | Wingstop Funding LLC 4.97%, 12/05/2048(1) | | | 1,849,132 | |
| | | | | | | | | | |
| | | | | | | | | 130,495,562 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Home Equity - 1.4% | |
| | | 5,450,000 | | | CPT Mortgage Trust 2.87%, 11/13/2039(1) | | | 5,474,379 | |
| | | | | | GSAA Home Equity Trust | |
| | | 5,529,396 | | | 1.87%, 02/25/2037, 1 mo. USD LIBOR + 0.080%(2) | | | 2,579,705 | |
| | | 3,219,441 | | | 1.89%, 03/25/2037, 1 mo. USD LIBOR + 0.100%(2) | | | 1,452,367 | |
| | | 2,412,204 | | | 1.97%, 11/25/2036, 1 mo. USD LIBOR + 0.180%(2) | | | 1,047,283 | |
| | | 103,236 | | | 2.03%, 11/25/2036, 1 mo. USD LIBOR + 0.240%(2) | | | 55,087 | |
| | | 605,067 | | | 5.99%, 06/25/2036(3) | | | 263,848 | |
| | | | | | Legacy Mortgage Asset Trust | |
| | | 3,646,716 | | | 3.00%, 06/25/2059(1)(4) | | | 3,641,266 | |
| | | 4,484,885 | | | 3.25%, 11/25/2059(1)(4) | | | 4,488,199 | |
| | | 7,006,794 | | | 4.00%, 03/25/2058(1)(4) | | | 7,074,355 | |
| | | 86,178 | | | Morgan Stanley Asset-Backed Securities Capital, Inc. Trust 1.94%, 06/25/2036, 1 mo. USD LIBOR + 0.150%(2) | | | 73,846 | |
| | | 1,394,024 | | | Morgan Stanley Mortgage Loan Trust 1.96%, 11/25/2036, 1 mo. USD LIBOR + 0.170%(2) | | | 603,934 | |
| | | | | | Soundview Home Loan Trust | |
| | | 2,631,020 | | | 1.97%, 07/25/2037, 1 mo. USD LIBOR + 0.180%(2) | | | 2,386,181 | |
| | | 435,000 | | | 2.04%, 11/25/2036, 1 mo. USD LIBOR + 0.250%(2) | | | 408,546 | |
| | | | | | | | | | |
| | | | | | | | 29,548,996 | |
| | | | | | | | | | |
| | | | | | Collateralized - Mortgage Obligations - 0.0% | |
| | | 62,876 | | | Consumer Loan Underlying Bond Credit Trust 2.61%, 01/15/2024(1) | | | 62,880 | |
| | | | | | | | | | |
| | | | | | Commercial Mortgage - Backed Securities - 5.9% | |
| | | | | | Banc of America Commercial Mortgage Trust | |
| | | 39,769,236 | | | 0.74%, 11/15/2050(3)(5) | | | 1,943,256 | |
| | | 4,680,902 | | | 0.81%, 11/15/2054(3)(5) | | | 241,685 | |
| | | | | | BBCMS Mortgage Trust | |
| | | 28,651,883 | | | 1.50%, 02/15/2050(3)(5) | | | 2,352,119 | |
| | | 8,553,000 | | | 2.59%, 08/15/2036, 1 mo. USD LIBOR + 0.850%(1)(2) | | | 8,520,782 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Commercial Mortgage - Backed Securities - 5.9% - (continued) | |
| | | | | | Benchmark Mortgage Trust | |
| $ | | | 11,962,863 | | | 0.52%, 01/15/2051(3)(5) | | $ | 403,714 | |
| | | 20,246,245 | | | 0.54%, 07/15/2051(3)(5) | | | 692,023 | |
| | | 8,981,776 | | | 1.07%, 08/15/2052(3)(5) | | | 663,567 | |
| | | 5,305,000 | | | BX Commercial Mortgage Trust 2.66%, 10/15/2036, 1 mo. USD LIBOR + 0.920%(1)(2) | | | 5,309,252 | |
| | | 2,920,000 | | | CAMB Commercial Mortgage Trust 4.29%, 12/15/2037, 1 mo. USD LIBOR + 2.550%(1)(2) | | | 2,933,721 | |
| | | 3,855,000 | | | CD Commercial Mortgage Trust 2.46%, 08/10/2049 | | | 3,850,022 | |
| | | | | | Citigroup Commercial Mortgage Trust | |
| | | 20,622,034 | | | 0.95%, 07/10/2047(3)(5) | | | 795,120 | |
| | | 25,887,241 | | | 1.09%, 04/10/2048(3)(5) | | | 1,032,062 | |
| | | | | | Commercial Mortgage Trust | |
| | | 7,294,856 | | | 0.62%, 02/10/2047(3)(5) | | | 157,621 | |
| | | 3,992,476 | | | 0.67%, 08/10/2046(3)(5) | | | 86,297 | |
| | | 5,999,685 | | | 1.90%, 07/10/2046(1)(3)(5) | | | 23,908 | |
| | | 1,035,000 | | | 2.54%, 12/10/2045 | | | 1,044,322 | |
| | | 4,475,000 | | | 2.64%, 10/15/2036, 1 mo. USD LIBOR + 0.900%(1)(2) | | | 4,474,994 | |
| | | 948,544 | | | 2.82%, 10/15/2045 | | | 959,801 | |
| | | 1,659,863 | | | 2.85%, 10/15/2045 | | | 1,680,361 | |
| | | 1,145,000 | | | 3.10%, 03/10/2046 | | | 1,173,051 | |
| | | 689,898 | | | 3.21%, 03/10/2046 | | | 708,027 | |
| | | 6,780,000 | | | 3.42%, 03/10/2031(1) | | | 7,048,717 | |
| | | 1,260,000 | | | 3.61%, 06/10/2046(3) | | | 1,312,476 | |
| | | 1,032,661 | | | 4.02%, 07/10/2045 | | | 1,074,108 | |
| | | 630,000 | | | 4.07%, 02/10/2047(3) | | | 669,805 | |
| | | 1,045,000 | | | 4.21%, 08/10/2046(3) | | | 1,112,289 | |
| | | 615,085 | | | 4.22%, 07/10/2045(3) | | | 651,446 | |
| | | 535,000 | | | 4.24%, 02/10/2047(3) | | | 570,900 | |
| | | 720,000 | | | 4.59%, 10/15/2045(1)(3) | | | 36,000 | |
| | | 1,920,000 | | | 4.75%, 10/15/2045(1)(3) | | | 1,429,171 | |
| | | 44,454 | | | Credit Suisse First Boston Mortgage Securities Corp. 4.88%, 04/15/2037 | | | 44,232 | |
| | | | | | CSAIL Commercial Mortgage Trust | |
| | | 59,772,546 | | | 0.76%, 06/15/2057(3)(5) | | | 1,977,712 | |
| | | 3,330,390 | | | 0.95%, 11/15/2048(3)(5) | | | 122,739 | |
| | | 8,750,057 | | | 1.90%, 01/15/2049(3)(5) | | | 746,538 | |
| | | 4,810,306 | | | DBUBS Mortgage Trust 0.70%, 11/10/2046(1)(3)(5) | | | 15,962 | |
| | | 2,945,113 | | | Four Times Square Trust Commercial Mortgage Pass-Through Certificates 5.40%, 12/13/2028(1) | | | 3,012,477 | |
| | | 5,485,000 | | | FREMF Mortgage Trust 5.28%, 09/25/2043(1)(3) | | | 5,532,209 | |
| | | 971,617 | | | GE Business Loan Trust 2.74%, 05/15/2034, 1 mo. USD LIBOR + 1.000%(1)(2) | | | 916,287 | |
| | | 4,340,000 | | | GS Mortgage Securities Corp. 2.95%, 11/05/2034(1) | | | 4,397,065 | |
| | | | | | GS Mortgage Securities Trust | |
| | | 44,697,194 | | | 0.08%, 07/10/2046(3)(5) | | | 126,730 | |
| | | 6,346,675 | | | 1.33%, 08/10/2044(1)(3)(5) | | | 97,295 | |
| | | 1,580,166 | | | 3.67%, 04/10/2047(1) | | | 571,703 | |
| | | 785,121 | | | 4.07%, 01/10/2047 | | | 834,235 | |
| | | 2,215,000 | | | 4.97%, 04/10/2047(1)(3) | | | 1,993,156 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Trust | |
| | | 2,185,000 | | | 2.73%, 10/15/2045(1)(3) | | | 1,345,064 | |
| | | 608,397 | | | 2.84%, 12/15/2047 | | | 617,253 | |
| | | 1,290,924 | | | 4.42%, 12/15/2047(1)(3) | | | 1,221,153 | |
| | | | | | JPMBB Commercial Mortgage Securities Trust | |
| | | 21,213,815 | | | 0.64%, 09/15/2047(3)(5) | | | 519,946 | |
| | | 7,081,439 | | | 0.76%, 05/15/2048(3)(5) | | | 163,998 | |
| | | 855,054 | | | 3.36%, 07/15/2045 | | | 883,729 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Commercial Mortgage - Backed Securities - 5.9% - (continued) | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust | |
| $ | | | 11,039,195 | | | 1.00%, 12/15/2047(3)(5) | | $ | 425,831 | |
| | | 1,512,192 | | | 1.03%, 10/15/2048(3)(5) | | | 70,301 | |
| | | 1,530,000 | | | 3.13%, 12/15/2048 | | | 1,566,649 | |
| | | 1,320,000 | | | 3.18%, 08/15/2045 | | | 1,348,115 | |
| | | 795,172 | | | 4.26%, 10/15/2046(3) | | | 846,753 | |
| | | | | | Morgan Stanley Capital Trust | |
| | | 30,871,139 | | | 0.34%, 09/15/2047(1)(3)(5) | | | 74,418 | |
| | | 8,159,511 | | | 1.44%, 06/15/2050(3)(5) | | | 595,922 | |
| | | 4,920,000 | | | 3.47%, 08/11/2033(1) | | | 5,011,694 | |
| | | 1,460,000 | | | 5.25%, 07/15/2049(1)(3) | | | 1,346,012 | |
| | | 82,680 | | | 5.67%, 10/12/2052(1)(3) | | | 20,654 | |
| | | 2,475,000 | | | MTRO Commercial Mortgage Trust 3.54%, 12/15/2033, 1 mo. USD LIBOR + 1.800%(1)(2) | | | 2,470,357 | |
| | | 1,370,000 | | | Natixis Commercial Mortgage Securities Trust 2.91%, 10/15/2036(1) | | | 1,358,680 | |
| | | 2,261,645 | | | Oaktown Re II Ltd. 3.34%, 07/25/2028, 1 mo. USD LIBOR + 1.550%(1)(2) | | | 2,262,091 | |
| | | 790,000 | | | SFAVE Commercial Mortgage Securities Trust 3.87%, 01/05/2043(1)(3) | | | 800,956 | |
| | | 6,462,426 | | | Stanwich Mortgage Loan Trust 3.48%, 11/16/2024(1)(4) | | | 6,451,697 | |
| | | 4,640,708 | | | UBS Commercial Mortgage Trust 1.09%, 08/15/2050(3)(5) | | | 293,671 | |
| | | | | | UBS-Barclays Commercial Mortgage Trust | |
| | | 790,000 | | | 2.85%, 12/10/2045 | | | 802,932 | |
| | | 2,295,000 | | | 3.09%, 08/10/2049 | | | 2,340,638 | |
| | | 2,065,000 | | | 3.19%, 03/10/2046 | | | 2,118,152 | |
| | | 775,000 | | | 3.24%, 04/10/2046 | | | 797,306 | |
| | | | | | Wells Fargo Commercial Mortgage Trust | |
| | | 17,888,043 | | | 1.13%, 05/15/2048(3)(5) | | | 800,939 | |
| | | 1,125,554 | | | 2.92%, 10/15/2045 | | | 1,144,793 | |
| | | 430,000 | | | 4.15%, 05/15/2048(3) | | | 435,959 | |
| | | | | | Wells Fargo N.A. | |
| | | 20,173,558 | | | 0.61%, 11/15/2062(3)(5) | | | 1,015,002 | |
| | | 9,830,000 | | | 0.77%, 11/15/2062(3)(5) | | | 538,318 | |
| | | 19,869,832 | | | 0.84%, 09/15/2062(3)(5) | | | 1,333,701 | |
| | | 12,838,575 | | | 0.91%, 05/15/2062(3)(5) | | | 903,697 | |
| | | | | | WF-RBS Commercial Mortgage Trust | |
| | | 255,115 | | | 2.88%, 12/15/2045 | | | 259,384 | |
| | | 1,215,000 | | | 3.00%, 08/15/2045 | | | 1,237,368 | |
| | | 1,150,000 | | | 3.07%, 03/15/2045 | | | 1,176,541 | |
| | | 450,000 | | | 3.35%, 05/15/2045 | | | 462,468 | |
| | | 990,000 | | | 3.72%, 05/15/2047 | | | 1,036,152 | |
| | | 230,000 | | | 4.05%, 03/15/2047 | | | 244,681 | |
| | | 1,095,000 | | | 4.15%, 08/15/2046(3) | | | 1,159,017 | |
| | | 710,000 | | | 5.00%, 06/15/2044(1)(3) | | | 600,025 | |
| | | 790,000 | | | 5.58%, 04/15/2045(1)(3) | | | 828,930 | |
| | | | | | | | | | |
| | | | | | | | | 122,269,904 | |
| | | | | | | | | | |
| | | | | | Other ABS - 2.1% | |
| | | 1,450,000 | | | Domino’s Pizza Master Issuer LLC 3.67%, 10/25/2049(1) | | | 1,450,247 | |
| | | 6,739,745 | | | Galaxy CLO Ltd. 2.70%, 11/15/2026, 3 mo. USD LIBOR + 0.790%(1)(2) | | | 6,736,287 | |
| | | 4,075,000 | | | OnDeck Asset Securitization Trust LLC 2.65%, 11/18/2024(1) | | | 4,079,890 | |
| | | 4,808,095 | | | Pretium Mortgage Credit Partners LLC 3.11%, 07/27/2059(1)(4) | | | 4,803,568 | |
| | | 5,806,065 | | | Seasoned Credit Risk Transfer Trust 3.50%, 03/25/2058 | | | 6,120,660 | |
| | | | | | Vericrest Opportunity Loan Trust | |
| | | 1,941,778 | | | 3.35%, 08/25/2049(1)(4) | | | 1,938,426 | |
| | | 1,978,797 | | | 3.97%, 03/25/2049(1)(4) | | | 1,988,953 | |
| | | 807,936 | | | VOLT LXII LLC 3.13%, 09/25/2047(1)(4) | | | 808,694 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Other ABS - 2.1% - (continued) | |
| $ | | | 2,605,970 | | | VOLT LXIV LLC 3.38%, 10/25/2047(1)(4) | | $ | 2,607,558 | |
| | | 4,945,989 | | | VOLT LXXX LLC 3.23%, 10/25/2049(1)(4) | | | 4,945,940 | |
| | | 2,002,341 | | | VOLT LXXXIII LLC 3.33%, 11/26/2049(1)(4) | | | 2,001,354 | |
| | | 7,210,000 | | | VOLT LXXXIV LLC 3.43%, 12/27/2049(1)(4) | | | 7,206,510 | |
| | | | | | | | | | |
| | | | | | | | | 44,688,087 | |
| | | | | | | | | | |
| | | | | | Whole Loan Collateral CMO - 9.9% | |
| | | | | | Alternative Loan Trust | |
| | | 966,979 | | | 2.11%, 11/25/2035, 1 mo. USD LIBOR + 0.320%(2) | | | 884,468 | |
| | | 208,472 | | | 2.33%, 01/25/2036, 1 mo. USD LIBOR + 0.540%(2) | | | 201,166 | |
| | | 916,315 | | | 5.75%, 05/25/2036 | | | 661,336 | |
| | | 1,455,228 | | | Angel Oak Mortgage Trust LLC 3.63%, 03/25/2049(1)(3) | | | 1,471,699 | |
| | | 6,402,443 | | | Arroyo Mortgage Trust 3.35%, 04/25/2049(1)(3) | | | 6,479,831 | |
| | | | | | Banc of America Funding Trust | |
| | | 1,116,387 | | | 2.07%, 05/20/2047, 1 mo. USD LIBOR + 0.300%(2) | | | 1,100,678 | |
| | | 3,737,496 | | | 5.77%, 05/25/2037(3) | | | 3,675,571 | |
| | | 141,882 | | | 5.85%, 01/25/2037(4) | | | 140,700 | |
| | | 847,017 | | | BCAP LLC Trust 1.97%, 03/25/2037, 1 mo. USD LIBOR + 0.180%(2) | | | 808,030 | |
| | | 292,862 | | | Bear Stearns Adjustable Rate Mortgage Trust 4.27%, 10/25/2035, 12 mo. USD CMT + 2.300%(2) | | | 300,265 | |
| | | 1,021,231 | | | Bear Stearns Alt-A Trust 2.29%, 01/25/2036, 1 mo. USD LIBOR + 0.500%(2) | | | 1,171,405 | |
| | | 399,444 | | | Bear Stearns Mortgage Funding Trust 1.97%, 10/25/2036, 1 mo. USD LIBOR + 0.180%(2) | | | 382,775 | |
| | | | | | Bellemeade Re Ltd. | |
| | | 1,514,401 | | | 2.99%, 10/25/2028, 1 mo. USD LIBOR + 1.200%(1)(2) | | | 1,514,729 | |
| | | 1,734,033 | | | 3.09%, 03/25/2029, 1 mo. USD LIBOR + 1.300%(1)(2) | | | 1,735,440 | |
| | | 7,465,000 | | | 3.19%, 10/25/2029, 1 mo. USD LIBOR + 1.400%(1)(2) | | | 7,467,324 | |
| | | | | | CHL Mortgage Pass-Through Trust | |
| | | 480,762 | | | 3.43%, 11/20/2035(3) | | | 439,525 | |
| | | 1,956,962 | | | 3.79%, 09/25/2047(3) | | | 1,866,999 | |
| | | 4,717,389 | | | CIM Trust 3.00%, 04/25/2057(1)(3) | | | 4,735,847 | |
| | | 1,752,034 | | | Citigroup Mortgage Loan Trust 3.23%, 11/25/2070(1)(4) | | | 1,751,059 | |
| | | 4,485,000 | | | Colombia Cent CLO Ltd. 3.09%, 10/25/2028, 3 mo. USD LIBOR + 1.150%(1)(2) | | | 4,483,771 | |
| | | 2,646,466 | | | COLT Mortgage Loan Trust 3.34%, 05/25/2049(1)(3) | | | 2,650,687 | |
| | | 1,646,182 | | | Connecticut Avenue Securities Trust 3.86%, 11/25/2039, 1 mo. USD LIBOR + 2.150%(1)(2) | | | 1,653,587 | |
| | | 1,808,386 | | | Credit Suisse First Boston Mortgage Securities Corp. 5.50%, 06/25/2035 | | | 1,738,770 | |
| | | 2,294,366 | | | CSMC Trust 3.25%, 04/25/2047(1)(3) | | | 2,293,172 | |
| | | 744,391 | | | Deephaven Residential Mortgage Trust 2.45%, 06/25/2047(1)(3) | | | 743,224 | |
| | | | | | Fannie Mae Connecticut Avenue Securities | |
| | | 2,025,000 | | | 5.34%, 07/25/2029, 1 mo. USD LIBOR + 3.550%(2) | | | 2,143,025 | |
| | | 3,409,579 | | | 6.14%, 05/25/2029, 1 mo. USD LIBOR + 4.350%(2) | | | 3,594,274 | |
| | | 1,121,316 | | | 6.69%, 11/25/2024, 1 mo. USD LIBOR + 4.900%(2) | | | 1,231,527 | |
| | | 590,739 | | | 7.49%, 04/25/2028, 1 mo. USD LIBOR + 5.700%(2) | | | 655,943 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Whole Loan Collateral CMO - 9.9% - (continued) | |
| $ | | | 503,557 | | | 7.79%, 09/25/2028, 1 mo. USD LIBOR + 6.000%(2) | | $ | 554,085 | |
| | | 27,750 | | | GMACM Mortgage Loan Trust 4.16%, 04/19/2036(3) | | | 25,767 | |
| | | | | | GSR Mortgage Loan Trust | |
| | | 1,097,212 | | | 2.09%, 01/25/2037, 1 mo. USD LIBOR + 0.300%(2) | | | 429,356 | |
| | | 1,734,749 | | | 3.96%, 01/25/2036(3) | | | 1,755,827 | |
| | | | | | HarborView Mortgage Loan Trust | |
| | | 1,013,391 | | | 1.95%, 01/19/2038, 1 mo. USD LIBOR + 0.190%(2) | | | 958,998 | |
| | | 3,530,945 | | | 2.00%, 12/19/2036, 1 mo. USD LIBOR + 0.240%(2) | | | 3,359,205 | |
| | | 2,003,444 | | | Home Re Ltd. 3.39%, 10/25/2028, 1 mo. USD LIBOR + 1.600%(1)(2) | | | 2,004,051 | |
| | | 1,112,887 | | | IndyMac Index Mortgage Loan Trust 3.85%, 03/25/2036(3) | | | 1,010,284 | |
| | | 245,785 | | | JP Morgan Mortgage Trust 4.32%, 04/25/2037(3) | | | 229,046 | |
| | | 2,735,000 | | | LCM XX L.P. 3.01%, 10/20/2027, 3 mo. USD LIBOR + 1.040%(1)(2) | | | 2,736,477 | |
| | | 1,145,462 | | | Lehman XS Trust 2.00%, 07/25/2046, 1 mo. USD LIBOR + 0.210%(2) | | | 1,137,679 | |
| | | | | | LSTAR Securities Investment Ltd. | |
| | | 2,097,574 | | | 3.21%, 04/01/2024, 1 mo. USD LIBOR + 1.500%(1)(2) | | | 2,093,585 | |
| | | 4,788,743 | | | 3.21%, 05/01/2024, 1 mo. USD LIBOR + 1.500%(1)(2) | | | 4,783,206 | |
| | | | | | LSTAR Securities Investment Trust | |
| | | 641,659 | | | 3.21%, 04/01/2024, 1 mo. USD LIBOR + 1.500%(1)(2) | | | 640,252 | |
| | | 2,140,727 | | | 3.41%, 03/01/2024, 1 mo. USD LIBOR + 1.700%(1)(2) | | | 2,136,499 | |
| | | 369,999 | | | MASTR Adjustable Rate Mortgages Trust 4.70%, 11/21/2034(3) | | | 378,835 | |
| | | 1,018,808 | | | MFA Trust 2.59%, 02/25/2057(1)(3) | | | 1,011,883 | |
| | | 3,363,000 | | | Mortgage Insurance-Linked Notes 3.67%, 11/26/2029, 1 mo. USD LIBOR + 1.900%(1)(2) | | | 3,375,197 | |
| | | 4,995,000 | | | New Residential Advance Receivables Trust 2.33%, 10/15/2051(1) | | | 4,987,942 | |
| | | | | | New Residential Mortgage Loan Trust | |
| | | 2,166,584 | | | 2.49%, 09/25/2059(1)(3) | | | 2,156,970 | |
| | | 4,925,574 | | | 2.54%, 01/25/2048, 1 mo. USD LIBOR + 0.750%(1)(2) | | | 4,912,163 | |
| | | 4,122,699 | | | 3.29%, 06/25/2057, 1 mo. USD LIBOR + 1.500%(1)(2) | | | 4,173,869 | |
| | | 3,507,782 | | | 3.50%, 08/25/2059(1)(3) | | | 3,574,948 | |
| | | 3,855,801 | | | 3.75%, 11/26/2035(1)(3) | | | 3,979,753 | |
| | | 3,443,449 | | | 3.75%, 11/25/2056(1)(3) | | | 3,556,292 | |
| | | 6,389,719 | | | 4.00%, 02/25/2057(1)(3) | | | 6,634,760 | |
| | | 6,314,277 | | | 4.00%, 03/25/2057(1)(3) | | | 6,586,792 | |
| | | 4,978,156 | | | 4.00%, 04/25/2057(1)(3) | | | 5,172,625 | |
| | | 4,001,621 | | | 4.00%, 05/25/2057(1)(3) | | | 4,171,498 | |
| | | 5,313,704 | | | 4.00%, 08/27/2057(1)(3) | | | 5,518,186 | |
| | | 2,306,492 | | | 4.00%, 12/25/2057(1)(3) | | | 2,390,715 | |
| | | 4,565,020 | | | Oaktown Re III Ltd. 3.19%, 07/25/2029, 1 mo. USD LIBOR + 1.400%(1)(2) | | | 4,570,785 | |
| | | 7,485,000 | | | OZLM Ltd. 2.99%, 04/30/2027, 3 mo. USD LIBOR + 1.050%(1)(2) | | | 7,484,903 | |
| | | 3,111,559 | | | PMT Credit Risk Transfer Trust 3.70%, 03/27/2024, 1 mo. USD LIBOR + 2.000%(1)(2) | | | 3,108,724 | |
| | | 1,684,218 | | | Preston Ridge Partners Mortgage Trust LLC 3.50%, 10/25/2024(1)(3) | | | 1,682,895 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 26.5% - (continued) | |
| | | | | | Whole Loan Collateral CMO - 9.9% - (continued) | |
| $ | | | 1,213,020 | | | RBSGC Mortgage Loan Trust 6.25%, 01/25/2037 | | $ | 1,201,285 | |
| | | | | | Residential Accredit Loans, Inc. | |
| | | 2,937,771 | | | 3.47%, 11/25/2037(3) | | | 2,741,038 | |
| | | 776,394 | | | 6.00%, 12/25/2035 | | | 757,345 | |
| | | | | | Seasoned Credit Risk Transfer Trust | |
| | | 2,121,985 | | | 3.50%, 11/25/2057 | | | 2,221,680 | |
| | | 5,628,596 | | | 3.50%, 07/25/2058 | | | 5,900,900 | |
| | | 6,071,423 | | | 3.50%, 10/25/2058 | | | 6,394,618 | |
| | | 1,081,108 | | | Structured Agency Credit Risk Trust 3.44%, 04/25/2043, 1 mo. USD LIBOR + 1.650%(1)(2) | | | 1,084,509 | |
| | | | | | Towd Point Mortgage Trust | |
| | | 2,629,699 | | | 2.25%, 04/25/2056(1)(3) | | | 2,623,120 | |
| | | 4,886,406 | | | 2.39%, 02/25/2057, 1 mo. USD LIBOR + 0.600%(1)(2) | | | 4,874,333 | |
| | | 2,421,491 | | | 2.75%, 08/25/2055(1)(3) | | | 2,431,493 | |
| | | 411,277 | | | 3.00%, 03/25/2054(1)(3) | | | 411,814 | |
| | | | | | Vericrest Opportunity Loan Trust | |
| | | 4,275,125 | | | 3.18%, 10/25/2049(1)(4) | | | 4,258,668 | |
| | | 4,975,315 | | | 3.28%, 11/25/2049(1)(4) | | | 4,963,282 | |
| | | | | | WaMu Mortgage Pass-Through Certificates Trust | |
| | | 606,401 | | | 2.21%, 06/25/2044, 1 mo. USD LIBOR + 0.420%(2) | | | 589,146 | |
| | | 2,968,121 | | | 3.15%, 12/25/2046, 12 mo. USD MTA + 0.820%(2) | | | 2,781,630 | |
| | | 1,095,662 | | | 3.74%, 06/25/2037(3) | | | 1,040,140 | |
| | | 45,080,983 | | | Wells Fargo Commercial Mortgage Trust 1.12%, 09/15/2057(3)(5) | | | 1,576,590 | |
| | | | | | | | | | |
| | | | | | | | | 207,112,470 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $552,861,066) | | $ | 553,663,458 | |
| | | | | | | | | | |
| CORPORATE BONDS - 27.7% | | | |
| | | | | | Aerospace/Defense - 0.6% | |
| $ | | | 2,075,000 | | | Boeing Co. 3.25%, 02/01/2035 | | $ | 2,123,686 | |
| | | | | | L3Harris Technologies, Inc. | |
| | | 2,405,000 | | | 2.90%, 12/15/2029 | | | 2,443,176 | |
| | | 2,127,000 | | | 3.85%, 06/15/2023(1) | | | 2,239,400 | |
| | | 1,157,000 | | | Lockheed Martin Corp. 4.09%, 09/15/2052 | | | 1,357,615 | |
| | | | | | United Technologies Corp. | |
| | | 140,000 | | | 2.80%, 05/04/2024 | | | 143,912 | |
| | | 940,000 | | | 3.65%, 08/16/2023 | | | 991,143 | |
| | | 1,565,000 | | | 3.95%, 08/16/2025 | | | 1,706,754 | |
| | | 1,220,000 | | | 4.45%, 11/16/2038 | | | 1,443,707 | |
| | | 400,000 | | | 4.63%, 11/16/2048 | | | 501,271 | |
| | | | | | | | | | |
| | | | | | | | | 12,950,664 | |
| | | | | | | | | | |
| | | | | | Agriculture - 0.5% | |
| | | | | | Altria Group, Inc. | |
| | | 405,000 | | | 2.63%, 09/16/2026 | | | 400,713 | |
| | | 765,000 | | | 3.88%, 09/16/2046 | | | 706,241 | |
| | | 810,000 | | | 4.40%, 02/14/2026 | | | 880,588 | |
| | | 635,000 | | | 4.80%, 02/14/2029 | | | 707,812 | |
| | | 1,605,000 | | | 5.38%, 01/31/2044 | | | 1,813,518 | |
| | | 310,000 | | | 5.80%, 02/14/2039 | | | 364,720 | |
| | | 680,000 | | | 5.95%, 02/14/2049 | | | 824,479 | |
| | | | | | BAT Capital Corp. | |
| | | 2,395,000 | | | 2.79%, 09/06/2024 | | | 2,406,722 | |
| | | 3,025,000 | | | 4.39%, 08/15/2037 | | | 3,063,299 | |
| | | | | | | | | | |
| | | | | | | | | 11,168,092 | |
| | | | | | | | | | |
| | | | | | Auto Manufacturers - 0.4% | |
| | | 850,000 | | | Daimler Finance North America LLC 2.45%, 05/04/2021, 3 mo. USD LIBOR + 0.550%(1)(2) | | | 851,112 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Auto Manufacturers - 0.4% - (continued) | |
| $ | | | 635,000 | | | Ford Motor Co. 5.29%, 12/08/2046 | | $ | 605,087 | |
| | | | | | Ford Motor Credit Co. LLC | |
| | | 540,000 | | | 3.82%, 11/02/2027 | | | 523,665 | |
| | | 1,400,000 | | | 4.54%, 08/01/2026 | | | 1,432,636 | |
| | | 545,000 | | | 5.11%, 05/03/2029 | | | 561,675 | |
| | | | | | General Motors Co. | |
| | | 1,260,000 | | | 5.20%, 04/01/2045 | | | 1,272,603 | |
| | | 630,000 | | | 5.95%, 04/01/2049 | | | 698,426 | |
| | | 1,000,000 | | | 6.25%, 10/02/2043 | | | 1,123,536 | |
| | | 1,035,000 | | | 6.75%, 04/01/2046 | | | 1,214,187 | |
| | | | | | | | | | |
| | | | | | | | 8,282,927 | |
| | | | | | | | | | |
| | | | | | Auto Parts & Equipment - 0.0% | |
| | | 450,000 | | | Adient Global Holdings Ltd. 4.88%, 08/15/2026(1) | | | 401,625 | |
| | | 290,000 | | | Goodyear Tire & Rubber Co. 5.00%, 05/31/2026(6) | | | 301,600 | |
| | | | | | | | | | |
| | | | | | | | 703,225 | |
| | | | | | | | | | |
| | | | | | Beverages - 0.8% | |
| | | | | | Anheuser-Busch InBev Worldwide, Inc. | |
| | | 2,549,000 | | | 3.75%, 07/15/2042 | | | 2,635,699 | |
| | | 1,145,000 | | | 4.60%, 04/15/2048 | | | 1,310,342 | |
| | | 1,575,000 | | | 4.75%, 04/15/2058 | | | 1,842,108 | |
| | | 5,114,000 | | | 5.45%, 01/23/2039 | | | 6,435,621 | |
| | | 1,275,000 | | | Constellation Brands, Inc. 2.65%, 11/07/2022 | | | 1,292,945 | |
| | | 2,200,000 | | | Molson Coors Brewing Co. 3.00%, 07/15/2026 | | | 2,227,389 | |
| | | | | | | | | | |
| | | | | | | | | 15,744,104 | |
| | | | | | | | | | |
| | | | | | Biotechnology - 0.1% | |
| | | 1,315,000 | | | Amgen, Inc. 2.65%, 05/11/2022 | | | 1,334,699 | |
| | | | | | | | | | |
| | | | | | Chemicals - 0.6% | |
| | | 1,490,000 | | | Alpek S.A.B. de C.V. 4.25%, 09/18/2029(1) | | | 1,519,800 | |
| | | 4,175,000 | | | Braskem Netherlands Finance B.V. 4.50%, 01/31/2030(1) | | | 4,156,212 | |
| | | 290,000 | | | Chemours Co. 5.38%, 05/15/2027 | | | 256,650 | |
| | | 3,005,000 | | | DuPont de Nemours, Inc. 4.21%, 11/15/2023 | | | 3,215,195 | |
| | | 531,000 | | | Methanex Corp. 5.65%, 12/01/2044 | | | 509,353 | |
| | | 290,000 | | | Olin Corp. 5.13%, 09/15/2027 | | | 302,325 | |
| | | | | | Sherwin-Williams Co. | |
| | | 1,200,000 | | | 2.95%, 08/15/2029 | | | 1,212,035 | |
| | | 50,000 | | | 3.45%, 06/01/2027 | | | 52,907 | |
| | | 1,810,000 | | | Syngenta Finance N.V. 4.89%, 04/24/2025(1) | | | 1,937,625 | |
| | | | | | | | | | |
| | | | | | | | 13,162,102 | |
| | | | | | | | | | |
| | | | | | Commercial Banks - 7.1% | |
| | | | | | Bank of America Corp. | |
| | | 2,140,000 | | | 2.46%, 10/22/2025, (2.46% fixed rate until 10/22/2024; 3 mo. USD LIBOR + 0.870% thereafter)(7) | | | 2,154,317 | |
| | | 5,880,000 | | | 3.19%, 07/23/2030, (3.19% fixed rate until 07/23/2029; 3 mo. USD LIBOR + 1.180% thereafter)(7) | | | 6,083,354 | |
| | | 6,005,000 | | | 3.37%, 01/23/2026, (3.37% fixed rate until 01/23/2025; 3 mo. USD LIBOR + 0.810% thereafter)(7) | | | 6,281,222 | |
| | | 4,620,000 | | | 3.71%, 04/24/2028, (3.71% fixed rate until 04/24/2027; 3 mo. USD LIBOR + 1.512% thereafter)(7) | | | 4,939,958 | |
| | | 1,785,000 | | | 3.97%, 02/07/2030, (3.97% fixed rate until 02/07/2029; 3 mo. USD LIBOR + 1.210% thereafter)(7) | | | 1,959,694 | |
| | | 2,150,000 | | | 7.75%, 05/14/2038 | | | 3,389,270 | |
| | | 3,445,000 | | | Bank of New York Mellon Corp. 2.10%, 10/24/2024 | | | 3,449,497 | |
| AUD | | | 7,470,000 | | | BNG Bank N.V. 1.90%, 11/26/2025(8) | | | 5,328,431 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Commercial Banks - 7.1% - (continued) | |
| $ | | | 1,725,000 | | | Capital One Financial Corp. 3.90%, 01/29/2024 | | $ | 1,829,685 | |
| | | | | | Citigroup, Inc. | |
| | | 3,565,000 | | | 2.31%, 11/04/2022, (2.31% fixed rate until 11/04/2021; 3 mo. SOFRRATE + 0.867% thereafter)(7) | | | 3,576,099 | |
| | | 2,960,000 | | | 3.00%, 05/17/2024, 3 mo. USD LIBOR + 1.100%(2) | | | 2,999,264 | |
| | | 1,340,000 | | | 3.20%, 10/21/2026 | | | 1,390,369 | |
| | | 2,475,000 | | | 3.35%, 04/24/2025, (3.35% fixed rate until 04/24/2024; 3 mo. USD LIBOR + 0.897% thereafter)(7) | | | 2,575,992 | |
| | | 1,085,000 | | | 3.52%, 10/27/2028, (3.52% fixed rate until 10/27/2027; 3 mo. USD LIBOR + 1.151% thereafter)(7) | | | 1,142,393 | |
| | | 5,135,000 | | | 3.98%, 03/20/2030, (3.98% fixed rate until 03/20/2029; 3 mo. USD LIBOR + 1.338% thereafter)(7) | | | 5,621,850 | |
| | | 1,025,000 | | | 4.08%, 04/23/2029, (4.08% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.192% thereafter)(7) | | | 1,122,045 | |
| | | 940,000 | | | 4.45%, 09/29/2027 | | | 1,035,675 | |
| | | 3,285,000 | | | Credit Suisse Group AG 6.25%, 12/18/2024, (6.25% fixed rate until 12/18/2024; 5 year USD Swap + 3.455% thereafter)(1)(7)(9) | | | 3,573,259 | |
| | | | | | Danske Bank A/S | |
| | | 1,890,000 | | | 5.00%, 01/12/2022(1) | | | 1,985,242 | |
| | | 1,970,000 | | | 5.38%, 01/12/2024(1) | | | 2,156,429 | |
| | | 1,640,000 | | | Fifth Third Bancorp 2.38%, 01/28/2025 | | | 1,642,877 | |
| | | | | | Goldman Sachs Group, Inc. | |
| | | 965,000 | | | 2.91%, 07/24/2023, (2.91% fixed rate until 07/24/2022; 3 mo. USD LIBOR + 0.990% thereafter)(7) | | | 982,420 | |
| | | 2,410,000 | | | 3.69%, 06/05/2028, (3.69% fixed rate until 06/05/2027; 3 mo. USD LIBOR + 1.510% thereafter)(7) | | | 2,564,204 | |
| | | 3,860,000 | | | 3.81%, 04/23/2029, (3.81% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.158% thereafter)(7) | | | 4,141,310 | |
| | | 1,250,000 | | | 4.22%, 05/01/2029, (4.22% fixed rate until 05/01/2028; 3 mo. USD LIBOR + 1.301% thereafter)(7) | | | 1,378,224 | |
| | | 65,000 | | | 6.25%, 02/01/2041 | | | 90,893 | |
| | | 1,890,000 | | | 6.75%, 10/01/2037 | | | 2,625,453 | |
| | | | | | HSBC Holdings plc | |
| | | 1,305,000 | | | 2.95%, 05/25/2021 | | | 1,321,577 | |
| | | 2,370,000 | | | 3.40%, 03/08/2021 | | | 2,407,656 | |
| | | 1,200,000 | | | 4.58%, 06/19/2029, (4.58% fixed rate until 06/19/2028; 3 mo. USD LIBOR + 1.535% thereafter)(7) | | | 1,341,891 | |
| | | | | | JP Morgan Chase & Co. | |
| | | 955,000 | | | 3.17%, 10/24/2023, 3 mo. USD LIBOR + 1.230%(2) | | | 971,242 | |
| | | 2,160,000 | | | 3.22%, 03/01/2025, (3.22% fixed rate until 03/01/2024; 3 mo. USD LIBOR + 1.155% thereafter)(7) | | | 2,239,443 | |
| | | 2,500,000 | | | 3.51%, 01/23/2029, (3.51% fixed rate until 01/23/2028; 3 mo. USD LIBOR + 0.945% thereafter)(7) | | | 2,657,287 | |
| | | 1,655,000 | | | 3.70%, 05/06/2030, (3.70% fixed rate until 05/06/2029; 3 mo. USD LIBOR + 1.160% thereafter)(7) | | | 1,783,066 | |
| | | 1,990,000 | | | 3.80%, 07/23/2024, (3.80% fixed rate until 07/23/2023; 3 mo. USD LIBOR + 0.890% thereafter)(7) | | | 2,097,559 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Commercial Banks - 7.1% - (continued) | |
| $ | | | 4,480,000 | | | 3.96%, 01/29/2027, (3.96% fixed rate until 01/29/2026; 3 mo. USD LIBOR + 1.245% thereafter)(7) | | $ | 4,862,278 | |
| | | 2,230,000 | | | 4.01%, 04/23/2029, (4.01% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.120% thereafter)(7) | | | 2,449,507 | |
| | | 1,790,000 | | | KeyCorp. 2.55%, 10/01/2029 | | | 1,750,499 | |
| GBP | | | 2,035,000 | | | Metro Bank plc 5.50%, 06/26/2028, (5.50% fixed rate until 06/26/2023; GUKG5 + 4.458% thereafter)(7)(8)(9) | | | 2,190,143 | |
| | | | | | Morgan Stanley | |
| $ | | | 2,725,000 | | | 2.50%, 04/21/2021 | | | 2,745,663 | |
| | | 100,000 | | | 2.75%, 05/19/2022 | | | 101,847 | |
| | | 4,895,000 | | | 3.59%, 07/22/2028, (3.59% fixed rate until 07/22/2027; 3 mo. USD LIBOR + 1.340% thereafter)(7) | | | 5,204,919 | |
| | | 2,120,000 | | | 3.63%, 01/20/2027 | | | 2,257,406 | |
| | | 2,775,000 | | | 4.00%, 07/23/2025 | | | 3,002,728 | |
| | | 750,000 | | | 4.43%, 01/23/2030, (4.43% fixed rate until 01/23/2029; 3 mo. USD LIBOR + 1.628% thereafter)(7) | | | 848,307 | |
| | | 600,000 | | | PNC Bank NA 2.70%, 10/22/2029 | | | 599,262 | |
| | | 2,725,000 | | | PNC Financial Services Group, Inc. 2.20%, 11/01/2024 | | | 2,735,128 | |
| | | 2,060,000 | | | Royal Bank of Canada 2.55%, 07/16/2024 | | | 2,091,701 | |
| | | 1,435,000 | | | Santander Holdings USA, Inc. 3.70%, 03/28/2022 | | | 1,474,966 | |
| | | 2,150,000 | | | State Street Corp. 2.35%, 11/01/2025, (2.35% fixed rate until 11/01/2024; 3 mo. SOFR + 0.940% thereafter)(7) | | | 2,159,475 | |
| | | 1,273,000 | | | UBS Group Funding Switzerland AG 2.65%, 02/01/2022(1) | | | 1,286,091 | |
| | | 2,685,000 | | | UniCredit S.p.A. 6.57%, 01/14/2022(1) | | | 2,883,763 | |
| | | | | | Wells Fargo & Co. | |
| | | 3,075,000 | | | 2.41%, 10/30/2025, (2.41% fixed rate until 10/30/2024; 3 mo. USD LIBOR + 0.825% thereafter)(7) | | | 3,077,898 | |
| | | 1,795,000 | | | 2.63%, 07/22/2022 | | | 1,821,825 | |
| | | 1,655,000 | | | 3.00%, 04/22/2026 | | | 1,702,475 | |
| | | 665,000 | | | 3.00%, 10/23/2026 | | | 681,561 | |
| | | 4,800,000 | | | 3.07%, 01/24/2023 | | | 4,899,053 | |
| | | 2,485,000 | | | 3.58%, 05/22/2028, (3.58% fixed rate until 05/22/2027; 3 mo. USD LIBOR + 1.310% thereafter)(7) | | | 2,641,720 | |
| | | 2,885,000 | | | 3.75%, 01/24/2024 | | | 3,050,385 | |
| | | 155,000 | | | 4.90%, 11/17/2045 | | | 189,609 | |
| | | 890,000 | | | 5.61%, 01/15/2044 | | | 1,172,884 | |
| | | | | | | | | | |
| | | | | | | | 148,720,240 | |
| | | | | | | | | | |
| | | | | | Commercial Services - 0.3% | |
| | | | | | Ashtead Capital, Inc. | |
| | | 200,000 | | | 4.13%, 08/15/2025(1) | | | 205,500 | |
| | | 200,000 | | | 4.38%, 08/15/2027(1) | | | 207,250 | |
| | | 655,000 | | | Global Payments, Inc. 3.20%, 08/15/2029 | | | 667,582 | |
| | | 4,150,000 | | | IHS Markit Ltd. 4.13%, 08/01/2023 | | | 4,409,666 | |
| | | 530,000 | | | Service Corp. International 5.13%, 06/01/2029 | | | 563,125 | |
| | | 400,000 | | | United Rentals North America, Inc. 5.50%, 07/15/2025 | | | 415,625 | |
| | | | | | | | | | |
| | | | | | | | 6,468,748 | |
| | | | | | | | | | |
| | | | | | Construction Materials - 0.1% | |
| | | | | | Standard Industries, Inc. | |
| | | 60,000 | | | 5.38%, 11/15/2024(1) | | | 61,650 | |
| | | 930,000 | | | 6.00%, 10/15/2025(1) | | | 977,662 | |
| | | | | | | | | | |
| | | | | | | | 1,039,312 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Diversified Financial Services - 0.1% | |
| $ | | | 1,045,000 | | | ICBCIL Finance Co., Ltd. 3.00%, 04/05/2020(8) | | $ | 1,045,738 | |
| | | | | | Navient Corp. | |
| | | 460,000 | | | 5.88%, 03/25/2021 | | | 475,180 | |
| | | 390,000 | | | 7.25%, 01/25/2022 | | | 423,712 | |
| | | | | | | | | | |
| | | | | | | | 1,944,630 | |
| | | | | | | | | | |
| | | | | | Electric - 2.0% | |
| | | | | | AES Corp. | |
| | | 220,000 | | | 4.50%, 03/15/2023 | | | 225,500 | |
| | | 284,000 | | | 4.88%, 05/15/2023 | | | 288,260 | |
| | | 50,000 | | | 5.13%, 09/01/2027 | | | 53,375 | |
| | | 1,180,000 | | | Berkshire Hathaway Energy Co. 3.25%, 04/15/2028 | | | 1,247,626 | |
| | | | | | Cleco Corporate Holdings LLC | |
| | | 1,130,000 | | | 3.38%, 09/15/2029(1) | | | 1,134,868 | |
| | | 457,000 | | | 3.74%, 05/01/2026 | | | 472,255 | |
| | | 75,000 | | | 4.97%, 05/01/2046 | | | 83,233 | |
| | | | | | Commonwealth Edison Co. | |
| | | 1,420,000 | | | 3.65%, 06/15/2046 | | | 1,508,243 | |
| | | 370,000 | | | 4.00%, 03/01/2048 | | | 416,388 | |
| | | 375,000 | | | Connecticut Light & Power Co. 4.00%, 04/01/2048 | | | 430,676 | |
| | | 415,000 | | | Dominion Energy South Carolina, Inc. 5.10%, 06/01/2065 | | | 539,833 | |
| | | 1,525,000 | | | Duke Energy Carolinas LLC 4.25%, 12/15/2041 | | | 1,743,760 | |
| | | 970,000 | | | Duke Energy Florida LLC 3.40%, 10/01/2046 | | | 988,406 | |
| | | 1,245,000 | | | Duke Energy Indiana LLC 3.25%, 10/01/2049 | | | 1,245,167 | |
| | | 1,495,000 | | | Duke Energy Progress LLC 4.38%, 03/30/2044 | | | 1,737,040 | |
| | | | | | Evergy, Inc. | |
| | | 730,000 | | | 2.45%, 09/15/2024 | | | 734,335 | |
| | | 1,805,000 | | | 2.90%, 09/15/2029 | | | 1,796,520 | |
| | | | | | Exelon Corp. | |
| | | 2,275,000 | | | 2.85%, 06/15/2020 | | | 2,280,232 | |
| | | 2,745,000 | | | 3.95%, 06/15/2025 | | | 2,953,229 | |
| | | 360,000 | | | Florida Power & Light Co. 3.99%, 03/01/2049 | | | 413,156 | |
| | | 1,835,000 | | | Georgia Power Co. 4.30%, 03/15/2042 | | | 2,013,585 | |
| | | 1,465,000 | | | IPALCO Enterprises, Inc. 3.70%, 09/01/2024 | | | 1,515,597 | |
| | | | | | MidAmerican Energy Co. | |
| | | 925,000 | | | 3.15%, 04/15/2050 | | | 913,728 | |
| | | 380,000 | | | 3.65%, 08/01/2048 | | | 410,979 | |
| | | 2,580,000 | | | NextEra Energy Capital Holdings, Inc. 3.15%, 04/01/2024 | | | 2,675,670 | |
| | | 395,000 | | | Northern States Power Co. 2.90%, 03/01/2050(6) | | | 377,368 | |
| | | 1,130,000 | | | Oglethorpe Power Corp. 5.05%, 10/01/2048 | | | 1,331,269 | |
| | | | | | Oncor Electric Delivery Co. LLC | |
| | | 360,000 | | | 3.10%, 09/15/2049 | | | 351,879 | |
| | | 565,000 | | | 5.75%, 03/15/2029 | | | 697,709 | |
| | | 360,000 | | | PacifiCorp. 4.15%, 02/15/2050 | | | 413,748 | |
| | | 395,000 | | | Public Service Electric & Gas Co. 3.80%, 03/01/2046 | | | 435,714 | |
| | | 1,820,000 | | | Public Service Enterprise Group, Inc. 2.88%, 06/15/2024 | | | 1,860,620 | |
| | | 2,070,000 | | | Puget Energy, Inc. 3.65%, 05/15/2025 | | | 2,144,229 | |
| | | 205,000 | | | Sempra Energy 4.00%, 02/01/2048 | | | 215,478 | |
| | | | | | Southern California Edison Co. | |
| | | 1,380,000 | | | 2.85%, 08/01/2029(6) | | | 1,378,746 | |
| | | 511,000 | | | 4.00%, 04/01/2047 | | | 538,008 | |
| | | 299,000 | | | 4.13%, 03/01/2048 | | | 319,483 | |
| | | | | | Southern Co. | |
| | | 625,000 | | | 2.95%, 07/01/2023 | | | 641,131 | |
| | | 1,495,000 | | | 3.25%, 07/01/2026 | | | 1,557,630 | |
| | | 35,000 | | | 4.40%, 07/01/2046 | | | 38,817 | |
| | | 380,000 | | | Union Electric Co. 4.00%, 04/01/2048 | | | 421,753 | |
| | | 700,000 | | | Xcel Energy, Inc. 3.50%, 12/01/2049 | | | 711,694 | |
| | | | | | | | | | |
| | | | | | | | | 41,256,937 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Engineering & Construction - 0.8% | |
| $ | | | 2,250,000 | | | Fluor Corp. 4.25%, 09/15/2028 | | $ | 2,265,873 | |
| | | 4,250,000 | | | International Airport Finance S.A. 12.00%, 03/15/2033(1)(6) | | | 4,664,375 | |
| | | | | | SBA Tower Trust | |
| | | 4,815,000 | | | 3.17%, 04/09/2047(1) | | | 4,864,299 | |
| | | 4,540,000 | | | 3.45%, 03/15/2048(1) | | | 4,677,446 | |
| | | | | | | | | | |
| | | | | | | | | 16,471,993 | |
| | | | | | | | | | |
| | | | | | Entertainment - 0.1% | |
| | | | | | GLP Capital L.P. / GLP Financing II, Inc. | |
| | | 1,260,000 | | | 5.30%, 01/15/2029 | | | 1,399,482 | |
| | | 275,000 | | | 5.38%, 04/15/2026 | | | 303,985 | |
| | | | | | WMG Acquisition Corp. | |
| | | 445,000 | | | 4.88%, 11/01/2024(1) | | | 460,575 | |
| | | 260,000 | | | 5.00%, 08/01/2023(1) | | | 265,850 | |
| | | | | | | | | | |
| | | | | | | | 2,429,892 | |
| | | | | | | | | | |
| | | | | | Environmental Control - 0.1% | |
| | | | | | Clean Harbors, Inc. | |
| | | 144,000 | | | 4.88%, 07/15/2027(1) | | | 151,560 | |
| | | 116,000 | | | 5.13%, 07/15/2029(1) | | | 124,422 | |
| | | | | | Waste Management, Inc. | |
| | | 1,100,000 | | | 3.20%, 06/15/2026 | | | 1,152,450 | |
| | | 430,000 | | | 3.45%, 06/15/2029 | | | 460,511 | |
| | | 160,000 | | | 4.15%, 07/15/2049 | | | 183,078 | |
| | | | | | | | | | |
| | | | | | | | | 2,072,021 | |
| | | | | | | | | | |
| | | | | | Food - 0.3% | |
| | | | | | Conagra Brands, Inc. | |
| | | 775,000 | | | 4.30%, 05/01/2024 | | | 834,680 | |
| | | 240,000 | | | 4.60%, 11/01/2025 | | | 265,157 | |
| | | 5,270,000 | | | NBM U.S. Holdings, Inc. 7.00%, 05/14/2026(1) | | | 5,707,463 | |
| | | 285,000 | | | TreeHouse Foods, Inc. 6.00%, 02/15/2024(1) | | | 295,331 | |
| | | | | | | | | | |
| | | | | | | | | 7,102,631 | |
| | | | | | | | | | |
| | | | | | Food Service - 0.0% | |
| | | 585,000 | | | Aramark Services, Inc. 5.00%, 02/01/2028(1) | | | 616,444 | |
| | | | | | | | | | |
| | | | | | Forest Products & Paper - 0.2% | |
| | | 4,120,000 | | | Suzano Austria GmbH 5.00%, 01/15/2030 | | | 4,331,026 | |
| | | | | | | | | | |
| | | | | | Gas - 0.3% | |
| | | | | | AmeriGas Partners L.P. / AmeriGas Finance Corp. | |
| | | 70,000 | | | 5.63%, 05/20/2024 | | | 75,600 | |
| | | 375,000 | | | 5.88%, 08/20/2026 | | | 413,437 | |
| | | 2,000,000 | | | Dominion Energy Gas Holdings LLC 2.50%, 11/15/2024 | | | 2,009,371 | |
| | | | | | Sempra Energy | |
| | | 1,445,000 | | | 2.40%, 02/01/2020 | | | 1,445,099 | |
| | | 1,615,000 | | | 3.40%, 02/01/2028 | | | 1,674,242 | |
| | | 720,000 | | | 3.80%, 02/01/2038 | | | 752,894 | |
| | | | | | | | | | |
| | | | | | | | | 6,370,643 | |
| | | | | | | | | | |
| | | | | | Healthcare-Products - 0.3% | |
| | | 1,145,000 | | | Alcon Finance Corp. 3.00%, 09/23/2029(1) | | | 1,164,930 | |
| | | 3,925,000 | | | Becton Dickinson and Co. 3.36%, 06/06/2024 | | | 4,088,050 | |
| | | 140,000 | | | Hill-Rom Holdings, Inc. 4.38%, 09/15/2027(1) | | | 144,025 | |
| | | 255,000 | | | Thermo Fisher Scientific, Inc. 3.00%, 04/15/2023 | | | 262,210 | |
| | | | | | | | | | |
| | | | | | | | | 5,659,215 | |
| | | | | | | | | | |
| | | | | | Healthcare-Services - 0.7% | |
| | | 700,000 | | | Aetna, Inc. 2.80%, 06/15/2023 | | | 711,377 | |
| | | | | | Anthem, Inc. | |
| | | 1,780,000 | | | 2.88%, 09/15/2029 | | | 1,773,275 | |
| | | 1,960,000 | | | 3.50%, 08/15/2024 | | | 2,055,009 | |
| | | 285,000 | | | 4.38%, 12/01/2047 | | | 314,675 | |
| | | 410,000 | | | 4.63%, 05/15/2042 | | | 462,662 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Healthcare-Services - 0.7% - (continued) | |
| | | | | | Centene Corp. | |
| $ | | | 85,000 | | | 4.25%, 12/15/2027(1) | | $ | 87,444 | |
| | | 90,000 | | | 4.63%, 12/15/2029(1) | | | 94,621 | |
| | | 535,000 | | | CHS/Community Health Systems, Inc. 5.13%, 08/01/2021 | | | 535,000 | |
| | | 1,210,000 | | | CommonSpirit Health 3.35%, 10/01/2029 | | | 1,217,426 | |
| | | 1,095,000 | | | HCA, Inc. 4.13%, 06/15/2029 | | | 1,161,882 | |
| | | | | | UnitedHealth Group, Inc. | |
| | | 1,420,000 | | | 2.38%, 08/15/2024 | | | 1,438,842 | |
| | | 1,205,000 | | | 2.88%, 08/15/2029 | | | 1,240,294 | |
| | | 830,000 | | | 3.50%, 08/15/2039 | | | 871,657 | |
| | | 860,000 | | | 3.70%, 12/15/2025 | | | 930,842 | |
| | | 350,000 | | | 3.70%, 08/15/2049 | | | 376,204 | |
| | | 405,000 | | | 4.75%, 07/15/2045 | | | 498,734 | |
| | | | | | | | | | |
| | | | | | | | | 13,769,944 | |
| | | | | | | | | | |
| | | | | | Home Builders - 0.1% | |
| | | 595,000 | | | Lennar Corp. 4.75%, 11/29/2027 | | | 641,112 | |
| | | 285,000 | | | PulteGroup, Inc. 5.50%, 03/01/2026 | | | 318,488 | |
| | | 575,000 | | | Toll Brothers Finance Corp. 4.88%, 11/15/2025 | | | 626,750 | |
| | | | | | | | | | |
| | | | | | | | | 1,586,350 | |
| | | | | | | | | | |
| | | | | | Insurance - 0.6% | |
| | | 1,515,000 | | | Aon Corp. 2.20%, 11/15/2022 | | | 1,522,131 | |
| | | 835,000 | | | CNO Financial Group, Inc. 5.25%, 05/30/2025 | | | 924,763 | |
| | | | | | Genworth Holdings, Inc. | |
| | | 20,000 | | | 4.80%, 02/15/2024 | | | 19,546 | |
| | | 380,000 | | | 4.90%, 08/15/2023 | | | 376,200 | |
| | | | | | Marsh & McLennan Cos., Inc. | |
| | | 1,480,000 | | | 3.88%, 03/15/2024 | | | 1,578,860 | |
| | | 660,000 | | | 4.38%, 03/15/2029 | | | 752,493 | |
| | | 1,035,000 | | | 4.75%, 03/15/2039 | | | 1,251,413 | |
| | | 415,000 | | | Massachusetts Mutual Life Insurance Co. 3.73%, 10/15/2070(1) | | | 401,330 | |
| | | 345,000 | | | MGIC Investment Corp. 5.75%, 08/15/2023 | | | 381,225 | |
| | | | | | Unum Group | |
| | | 640,000 | | | 4.00%, 06/15/2029 | | | 672,218 | |
| | | 1,040,000 | | | 4.50%, 12/15/2049 | | | 1,015,688 | |
| | | | | | Willis North America, Inc. | |
| | | 740,000 | | | 2.95%, 09/15/2029 | | | 733,458 | |
| | | 1,035,000 | | | 3.60%, 05/15/2024 | | | 1,081,418 | |
| | | 1,340,000 | | | 4.50%, 09/15/2028 | | | 1,477,723 | |
| | | | | | | | | | |
| | | | | | | | | 12,188,466 | |
| | | | | | | | | | |
| | | | | | Internet - 0.6% | |
| | | | | | Alibaba Group Holding Ltd. | |
| | | 2,975,000 | | | 3.40%, 12/06/2027 | | | 3,099,689 | |
| | | 630,000 | | | 4.00%, 12/06/2037 | | | 674,368 | |
| | | 790,000 | | | 4.20%, 12/06/2047 | | | 877,717 | |
| | | 2,245,000 | | | Amazon.com, Inc. 3.88%, 08/22/2037 | | | 2,551,632 | |
| | | 150,000 | | | Symantec Corp. 5.00%, 04/15/2025(1) | | | 153,259 | |
| | | | | | Tencent Holdings Ltd. | |
| | | 1,210,000 | | | 3.60%, 01/19/2028(1) | | | 1,264,907 | |
| | | 2,765,000 | | | 3.98%, 04/11/2029(1) | | | 2,986,082 | |
| | | | | | | | | | |
| | | | | | | | | 11,607,654 | |
| | | | | | | | | | |
| | | | | | Iron/Steel - 0.3% | |
| | | 285,000 | | | Commercial Metals Co. 5.38%, 07/15/2027 | | | 299,250 | |
| | | | | | Metinvest B.V. | |
| EUR | | | 1,755,000 | | | 5.63%, 06/17/2025(1) | | | 1,999,372 | |
| $ | | | 2,865,000 | | | 7.75%, 10/17/2029(1) | | | 2,927,199 | |
| | | 275,000 | | | Steel Dynamics, Inc. 5.50%, 10/01/2024 | | | 283,280 | |
| | | | | | | | | | |
| | | | | | | | | 5,509,101 | |
| | | | | | | | | | |
| | | | | | IT Services - 0.7% | |
| �� | | | | | Apple, Inc. | | | | |
| | | 5,360,000 | | | 2.20%, 09/11/2029 | | | 5,259,373 | |
| | | 885,000 | | | 3.45%, 02/09/2045 | | | 932,891 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | IT Services - 0.7% - (continued) | |
| | | | | | International Business Machines Corp. | | | | |
| $ | | | 2,005,000 | | | 3.00%, 05/15/2024 | | $ | 2,080,625 | |
| | | 3,115,000 | | | 3.30%, 05/15/2026 | | | 3,288,377 | |
| | | 2,885,000 | | | 3.50%, 05/15/2029 | | | 3,103,994 | |
| | | | | | | | | | |
| | | | | | | | | 14,665,260 | |
| | | | | | | | | | |
| | | | | | Leisure Time - 0.0% | |
| | | 150,000 | | | VOC Escrow Ltd. 5.00%, 02/15/2028(1) | | | 157,125 | |
| | | | | | | | | | |
| | | | | | Lodging - 0.1% | | | |
| | | 290,000 | | | Hilton Domestic Operating Co., Inc. 5.13%, 05/01/2026 | | | 305,225 | |
| | | 975,000 | | | Las Vegas Sands Corp. 3.50%, 08/18/2026 | | | 1,003,073 | |
| | | | | | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. | | | | |
| | | 59,000 | | | 5.25%, 05/15/2027(1) | | | 62,687 | |
| | | 91,000 | | | 5.50%, 03/01/2025(1) | | | 97,370 | |
| | | | | | | | | | |
| | | | | | | | | 1,468,355 | |
| | | | | | | | | | |
| | | | | | Machinery - Construction & Mining - 0.0% | |
| | | 365,000 | | | Oshkosh Corp. 5.38%, 03/01/2025 | | | 376,406 | |
| | | | | | | | | | |
| | | | | | Media - 1.5% | |
| | | | | | CBS Corp. | | | | |
| | | 850,000 | | | 3.70%, 06/01/2028 | | | 891,384 | |
| | | 1,030,000 | | | 4.20%, 06/01/2029 | | | 1,122,547 | |
| | | | | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| | | 150,000 | | | 5.13%, 05/01/2027(1) | | | 158,250 | |
| | | 145,000 | | | 5.75%, 02/15/2026(1) | | | 152,978 | |
| | | | | | Charter Communications Operating LLC / Charter Communications Operating Capital | | | | |
| | | 815,000 | | | 4.80%, 03/01/2050 | | | 859,421 | |
| | | 1,245,000 | | | 5.13%, 07/01/2049 | | | 1,354,997 | |
| | | 1,090,000 | | | 6.48%, 10/23/2045 | | | 1,351,302 | |
| | | | | | Comcast Corp. | | | | |
| | | 490,000 | | | 3.20%, 07/15/2036 | | | 501,668 | |
| | | 2,055,000 | | | 3.25%, 11/01/2039 | | | 2,087,611 | |
| | | 745,000 | | | 3.95%, 10/15/2025 | | | 813,102 | |
| | | 95,000 | | | 4.05%, 11/01/2052 | | | 106,435 | |
| | | 725,000 | | | 4.15%, 10/15/2028 | | | 816,599 | |
| | | 70,000 | | | 4.25%, 10/15/2030 | | | 80,070 | |
| | | 645,000 | | | 4.60%, 10/15/2038 | | | 769,012 | |
| | | 440,000 | | | 4.95%, 10/15/2058 | | | 573,417 | |
| | | | | | Cox Communications, Inc. | | | | |
| | | 3,952,000 | | | 3.15%, 08/15/2024(1) | | | 4,063,995 | |
| | | 480,000 | | | 4.80%, 02/01/2035(1) | | | 531,722 | |
| | | 430,000 | | | CSC Holdings LLC 5.50%, 04/15/2027(1) | | | 461,755 | |
| | | | | | Discovery Communications LLC | | | | |
| | | 840,000 | | | 3.80%, 03/13/2024 | | | 886,738 | |
| | | 19,000 | | | 3.95%, 06/15/2025 | | | 20,286 | |
| | | 905,000 | | | 5.00%, 09/20/2037 | | | 1,022,818 | |
| | | 1,470,000 | | | 6.35%, 06/01/2040 | | | 1,870,531 | |
| | | 555,000 | | | DISH DBS Corp. 5.88%, 11/15/2024 | | | 567,141 | |
| | | 1,500,000 | | | NBCUniversal Media LLC 5.95%, 04/01/2041 | | | 2,064,026 | |
| | | 220,000 | | | TEGNA, Inc. 5.50%, 09/15/2024(1) | | | 227,700 | |
| | | 4,665,000 | | | Time Warner Entertainment Co. L.P. 8.38%, 07/15/2033 | | | 6,543,424 | |
| | | | | | Viacom, Inc. | |
| | | 1,480,000 | | | 4.25%, 09/01/2023 | | | 1,576,310 | |
| | | 55,000 | | | 5.88%, 02/28/2057, (5.88% fixed rate until 02/28/2022; 3 mo. USD LIBOR + 3.895% thereafter)(7) | | | 57,200 | |
| | | 79,000 | | | 6.25%, 02/28/2057, (6.25% fixed rate until 02/28/2027; 3 mo. USD LIBOR + 3.899% thereafter)(7) | | | 87,611 | |
| | | 550,000 | | | Videotron Ltd. 5.38%, 06/15/2024(1) | | | 605,000 | |
| | | | | | | | | | |
| | | | | | | | | 32,225,050 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Mining - 0.2% | |
| | | | | | Anglo American Capital plc | |
| $ | | | 775,000 | | | 4.50%, 03/15/2028(1)(6) | | $ | 830,620 | |
| | | 850,000 | | | 4.75%, 04/10/2027(1) | | | 929,799 | |
| | | 1,945,000 | | | 4.88%, 05/14/2025(1) | | | 2,137,311 | |
| | | 135,000 | | | Kaiser Aluminum Corp. 4.63%, 03/01/2028(1) | | | 138,510 | |
| | | | | | | | | | |
| | | | | | | | | 4,036,240 | |
| | | | | | | | | | |
| | | | | | Miscellaneous Manufacturing - 0.0% | |
| | | 930,000 | | | Ingersoll-Rand Global Holding Co., Ltd. 2.90%, 02/21/2021 | | | 938,545 | |
| | | | | | | | | | |
| | | | | | Office/Business Equipment - 0.0% | |
| | | 280,000 | | | CDW LLC / CDW Finance Corp. 4.25%, 04/01/2028 | | | 293,650 | |
| | | | | | | | | | |
| | | | | | Oil & Gas - 1.3% | |
| | | 150,000 | | | Aker BP ASA 5.88%, 03/31/2025(1) | | | 159,375 | |
| | | 685,000 | | | Apache Corp. 4.25%, 01/15/2030(6) | | | 710,495 | |
| CAD | | | 1,300,000 | | | Canadian Natural Resources Ltd. 2.05%, 06/01/2020 | | | 1,000,796 | |
| $ | | | 965,000 | | | Continental Resources, Inc. 4.38%, 01/15/2028 | | | 1,026,162 | |
| | | 860,000 | | | EnCana Corp. 3.90%, 11/15/2021 | | | 880,765 | |
| | | | | | Hess Corp. | |
| | | 105,000 | | | 6.00%, 01/15/2040 | | | 124,074 | |
| | | 2,397,000 | | | 7.13%, 03/15/2033 | | | 3,031,811 | |
| | | 860,000 | | | 7.30%, 08/15/2031 | | | 1,096,069 | |
| | | 850,000 | | | Medco Oak Tree Pte Ltd. 7.38%, 05/14/2026(1) | | | 866,072 | |
| | | 295,000 | | | MEG Energy Corp. 6.50%, 01/15/2025(1) | | | 306,829 | |
| | | 150,000 | | | Nabors Industries, Inc. 4.63%, 09/15/2021 | | | 149,063 | |
| | | 930,000 | | | Noble Energy, Inc. 5.05%, 11/15/2044 | | | 1,034,180 | |
| | | | | | Occidental Petroleum Corp. | |
| | | 1,035,000 | | | 3.16%, 08/13/2021, 3 mo. USD LIBOR + 1.250%(2) | | | 1,040,495 | |
| | | 65,000 | | | 4.50%, 07/15/2044 | | | 65,669 | |
| | | 1,415,000 | | | 6.95%, 07/01/2024 | | | 1,667,010 | |
| | | | | | Petroleos Mexicanos | |
| | | 1,650,000 | | | 6.63%, 06/15/2035 | | | 1,690,425 | |
| | | 3,745,000 | | | 6.84%, 01/23/2030(1) | | | 3,993,443 | |
| | | 405,000 | | | 7.69%, 01/23/2050(1) | | | 441,993 | |
| | | 2,090,000 | | | Pioneer Natural Resources Co. 7.50%, 01/15/2020 | | | 2,093,469 | |
| | | | | | QEP Resources, Inc. | |
| | | 385,000 | | | 5.25%, 05/01/2023 | | | 381,150 | |
| | | 10,000 | | | 5.38%, 10/01/2022 | | | 10,050 | |
| | | 814,000 | | | Saudi Arabian Oil Co. 2.88%, 04/16/2024(1) | | | 826,291 | |
| | | | | | SM Energy Co. | | | | |
| | | 255,000 | | | 6.13%, 11/15/2022 | | | 257,550 | |
| | | 70,000 | | | 6.75%, 09/15/2026 | | | 68,600 | |
| | | 295,000 | | | Sunoco L.P. / Sunoco Finance Corp. 5.50%, 02/15/2026 | | | 306,063 | |
| | | 2,320,000 | | | Tullow Oil plc 7.00%, 03/01/2025(1) | | | 1,953,022 | |
| | | 315,000 | | | Valero Energy Corp. 4.35%, 06/01/2028 | | | 347,094 | |
| | | 190,000 | | | WPX Energy, Inc. 5.25%, 09/15/2024 | | | 201,875 | |
| ARS | | | 93,580,252 | | | YPF S.A. 16.50%, 05/09/2022(1) | | | 765,875 | |
| | | | | | | | | | |
| | | | | | | | | 26,495,765 | |
| | | | | | | | | | |
| | | | | | Packaging & Containers - 0.1% | |
| $ | | | 200,000 | | | Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. 4.13%, 08/15/2026(1) | | | 205,000 | |
| | | 695,000 | | | Owens-Brockway Glass Container, Inc. 5.88%, 08/15/2023(1) | | | 741,913 | |
| | | 295,000 | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu 5.13%, 07/15/2023(1) | | | 302,006 | |
| | | | | | | | | | |
| | | | | | | | | 1,248,919 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Pharmaceuticals - 1.6% | |
| | | | | | AbbVie, Inc. | | | | |
| $ | | | 2,500,000 | | | 2.95%, 11/21/2026(1) | | $ | 2,545,409 | |
| | | 4,235,000 | | | 3.20%, 11/21/2029(1) | | | 4,308,496 | |
| | | 2,450,000 | | | 4.25%, 11/21/2049(1) | | | 2,601,455 | |
| | | 1,115,000 | | | Allergan Finance LLC 4.63%, 10/01/2042 | | | 1,167,343 | |
| | | | | | Bausch Health Cos., Inc. | | | | |
| | | 315,000 | | | 6.50%, 03/15/2022(1) | | | 322,088 | |
| | | 140,000 | | | 7.00%, 03/15/2024(1) | | | 145,600 | |
| | | 95,000 | | | Baxalta, Inc. 3.60%, 06/23/2022 | | | 97,530 | |
| | | | | | Bayer U.S. Finance LLC | | | | |
| | | 835,000 | | | 2.58%, 06/25/2021, 3 mo. USD LIBOR + 0.630%(8) | | | 837,635 | |
| | | 2,515,000 | | | 4.25%, 12/15/2025(1) | | | 2,714,314 | |
| | | 1,395,000 | | | Bristol-Myers Squibb Co. 3.40%, 07/26/2029(1) | | | 1,492,962 | |
| | | 5,365,000 | | | Cigna Corp. 4.38%, 10/15/2028 | | | 5,943,819 | |
| | | | | | CVS Health Corp. | | | | |
| | | 1,640,000 | | | 5.05%, 03/25/2048 | | | 1,943,443 | |
| | | 1,485,000 | | | 5.13%, 07/20/2045 | | | 1,761,679 | |
| | | 2,360,000 | | | GlaxoSmithKline Capital, Inc. 3.63%, 05/15/2025 | | | 2,533,903 | |
| | | 275,000 | | | Mylan N.V. 5.25%, 06/15/2046 | | | 309,309 | |
| | | 1,080,000 | | | Mylan, Inc. 4.55%, 04/15/2028 | | | 1,162,693 | |
| | | 1,525,000 | | | Shire Acquisitions Investments Ireland DAC 2.40%, 09/23/2021 | | | 1,533,674 | |
| | | 2,965,000 | | | Teva Pharmaceutical Finance Netherlands B.V. 3.15%, 10/01/2026 | | | 2,468,362 | |
| | | | | | | | | | |
| | | | | | | | | 33,889,714 | |
| | | | | | | | | | |
| | | | | | Pipelines - 1.2% | |
| | | 280,000 | | | Cheniere Corpus Christi Holdings LLC 5.88%, 03/31/2025 | | | 314,849 | |
| | | 65,000 | | | Cheniere Energy Partners L.P. 4.50%, 10/01/2029(1) | | | 66,794 | |
| | | 215,000 | | | DCP Midstream Operating L.P. 5.60%, 04/01/2044 | | | 208,012 | |
| CAD | | | 1,300,000 | | | Enbridge, Inc. 4.53%, 03/09/2020 | | | 1,005,301 | |
| | | | | | Energy Transfer Operating L.P. | | | | |
| $ | | | 650,000 | | | 4.50%, 04/15/2024 | | | 692,018 | |
| | | 1,205,000 | | | 4.95%, 06/15/2028 | | | 1,320,457 | |
| | | 1,390,000 | | | 5.25%, 04/15/2029 | | | 1,561,957 | |
| | | 555,000 | | | 5.50%, 06/01/2027 | | | 623,962 | |
| | | 940,000 | | | 6.13%, 12/15/2045 | | | 1,090,142 | |
| | | 380,000 | | | 6.25%, 04/15/2049 | | | 458,589 | |
| | | | | | EQM Midstream Partners L.P. | | | | |
| | | 1,066,000 | | | 4.13%, 12/01/2026 | | | 1,005,490 | |
| | | 1,005,000 | | | 5.50%, 07/15/2028 | | | 987,848 | |
| | | | | | MPLX L.P. | | | | |
| | | 1,120,000 | | | 4.25%, 12/01/2027(1) | | | 1,179,263 | |
| | | 1,135,000 | | | 4.70%, 04/15/2048 | | | 1,156,495 | |
| | | 325,000 | | | 5.20%, 03/01/2047 | | | 351,394 | |
| | | 335,000 | | | 5.20%, 12/01/2047(1) | | | 356,758 | |
| | | 155,000 | | | 5.50%, 02/15/2049 | | | 176,093 | |
| | | 211,000 | | | 6.25%, 10/15/2022(1) | | | 215,161 | |
| | | 825,000 | | | ONEOK, Inc. 3.40%, 09/01/2029 | | | 838,313 | |
| | | 625,000 | | | Phillips 66 Partners L.P. 3.15%, 12/15/2029 | | | 622,814 | |
| | | | | | Sabine Pass Liquefaction LLC | | | | |
| | | 625,000 | | | 4.20%, 03/15/2028 | | | 662,530 | |
| | | 287,000 | | | 5.63%, 03/01/2025 | | | 323,251 | |
| | | | | | Sunoco Logistics Partners Operations L.P. | | | | |
| | | 960,000 | | | 4.00%, 10/01/2027 | | | 993,262 | |
| | | 175,000 | | | 5.30%, 04/01/2044 | | | 186,257 | |
| | | 180,000 | | | 5.35%, 05/15/2045 | | | 193,580 | |
| | | | | | Texas Eastern Transmission L.P. | | | | |
| | | 785,000 | | | 2.80%, 10/15/2022(1) | | | 792,848 | |
| | | 165,000 | | | 3.50%, 01/15/2028(1) | | | 169,518 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Pipelines - 1.2% - (continued) | |
| | | | | | TransCanada PipeLines Ltd. | | | | |
| $ | | | 1,810,000 | | | 4.63%, 03/01/2034 | | $ | 2,064,629 | |
| | | 45,000 | | | 6.10%, 06/01/2040 | | | 59,579 | |
| | | 825,000 | | | Valero Energy Partners L.P. 4.50%, 03/15/2028 | | | 909,022 | |
| | | | | | Western Midstream Operating L.P. | | | | |
| | | 2,155,000 | | | 4.50%, 03/01/2028 | | | 2,127,601 | |
| | | 1,165,000 | | | 4.75%, 08/15/2028 | | | 1,175,509 | |
| | | 110,000 | | | 5.50%, 08/15/2048 | | | 96,758 | |
| | | | | | Williams Cos., Inc. | | | | |
| | | 72,000 | | | 4.90%, 01/15/2045 | | | 77,741 | |
| | | 430,000 | | | 5.10%, 09/15/2045 | | | 479,500 | |
| | | 265,000 | | | 5.80%, 11/15/2043 | | | 315,617 | |
| | | 243,000 | | | 6.30%, 04/15/2040 | | | 301,492 | |
| | | | | | | | | | |
| | | | | | | | | 25,160,404 | |
| | | | | | | | | | |
| | | | | | Real Estate Investment Trusts - 0.1% | |
| | | 570,000 | | | Equinix, Inc. 5.88%, 01/15/2026 | | | 604,918 | |
| | | 2,240,000 | | | SBA Tower Trust 2.84%, 01/15/2025(1) | | | 2,262,832 | |
| | | 160,000 | | | VICI Properties L.P. / VICI Note Co., Inc. 4.25%, 12/01/2026(1) | | | 164,800 | |
| | | | | | | | | | |
| | | | | | | | | 3,032,550 | |
| | | | | | | | | | |
| | | | | | Retail - 0.3% | |
| | | 150,000 | | | 1011778 BC ULC / New Red Finance, Inc. 4.25%, 05/15/2024(1) | | | 153,750 | |
| | | | | | Lowe’s Cos., Inc. | | | | |
| | | 3,075,000 | | | 3.38%, 09/15/2025 | | | 3,248,784 | |
| | | 95,000 | | | 3.70%, 04/15/2046 | | | 96,911 | |
| | | 1,035,000 | | | McDonald’s Corp. 3.35%, 04/01/2023 | | | 1,078,060 | |
| CAD | | | 1,715,000 | | | Nissan Canada, Inc. 1.75%, 04/09/2020 | | | 1,319,476 | |
| $ | | | 315,000 | | | Suburban Propane Partners L.P. / Suburban Energy Finance Corp. 5.88%, 03/01/2027 | | | 327,600 | |
| | | 445,000 | | | United Rentals North America, Inc. 4.88%, 01/15/2028 | | | 463,347 | |
| | | 230,000 | | | William Carter Co. 5.63%, 03/15/2027(1) | | | 247,250 | |
| | | | | | | | | | |
| | | | | | | | | 6,935,178 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 0.6% | |
| | | 4,990,000 | | | Broadcom Corp. / Broadcom Cayman Finance Ltd. 3.88%, 01/15/2027 | | | 5,183,402 | |
| | | 1,615,000 | | | Broadcom, Inc. 4.75%, 04/15/2029(1) | | | 1,765,975 | |
| | | 272,000 | | | Entegris, Inc. 4.63%, 02/10/2026(1) | | | 281,520 | |
| | | 745,000 | | | Intel Corp. 4.10%, 05/19/2046 | | | 860,115 | |
| | | 2,725,000 | | | NXP B.V. / NXP Funding LLC 4.88%, 03/01/2024(1) | | | 2,972,079 | |
| | | 270,000 | | | Qorvo, Inc. 5.50%, 07/15/2026 | | | 287,550 | |
| | | 355,000 | | | Sensata Technologies B.V. 5.00%, 10/01/2025(1) | | | 385,619 | |
| | | 310,000 | | | Sensata Technologies UK Financing Co. plc 6.25%, 02/15/2026(1) | | | 334,025 | |
| | | | | | | | | | |
| | | | | | | | | 12,070,285 | |
| | | | | | | | | | |
| | | | | | Software - 0.3% | |
| | | | | | CDK Global, Inc. | | | | |
| | | 150,000 | | | 4.88%, 06/01/2027 | | | 158,438 | |
| | | 30,000 | | | 5.88%, 06/15/2026 | | | 32,048 | |
| | | 500,000 | | | Fidelity National Information Services, Inc. 4.25%, 05/15/2028 | | | 560,465 | |
| | | 1,710,000 | | | Fiserv, Inc. 3.20%, 07/01/2026 | | | 1,770,954 | |
| | | 200,000 | | | IQVIA, Inc. 5.00%, 05/15/2027(1) | | | 211,571 | |
| | | | | | Microsoft Corp. | | | | |
| | | 1,160,000 | | | 3.70%, 08/08/2046 | | | 1,311,674 | |
| | | 750,000 | | | 3.95%, 08/08/2056 | | | 888,871 | |
| | | 465,000 | | | MSCI, Inc. 5.75%, 08/15/2025(1) | | | 487,669 | |
| | | 260,000 | | | Open Text Corp. 5.88%, 06/01/2026(1) | | | 278,200 | |
| | | 795,000 | | | Oracle Corp. 4.00%, 11/15/2047 | | | 889,422 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 27.7% - (continued) | | | |
| | | | | | Software - 0.3% - (continued) | |
| $ | | | 310,000 | | | Western Digital Corp. 4.75%, 02/15/2026 | | $ | 323,175 | |
| | | | | | | | | | |
| | | | | | | | | 6,912,487 | |
| | | | | | | | | | |
| | | | | | Telecommunications - 2.3% | |
| | | | | | AT&T, Inc. | | | | |
| | | 2,035,000 | | | 2.80%, 02/17/2021 | | | 2,053,328 | |
| | | 165,000 | | | 2.95%, 07/15/2026 | | | 168,215 | |
| | | 2,380,000 | | | 3.80%, 02/15/2027 | | | 2,537,158 | |
| | | 165,000 | | | 3.88%, 01/15/2026 | | | 176,831 | |
| | | 120,000 | | | 4.13%, 02/17/2026 | | | 130,072 | |
| | | 4,444,000 | | | 4.30%, 02/15/2030 | | | 4,938,133 | |
| | | 1,970,000 | | | 4.35%, 03/01/2029 | | | 2,191,650 | |
| | | 390,000 | | | 4.35%, 06/15/2045 | | | 421,049 | |
| | | 7,400,000 | | | GTP Acquisition Partners LLC 3.48%, 06/15/2050(1) | | | 7,594,746 | |
| | | | | | Nokia Oyj | | | | |
| | | 5,000 | | | 4.38%, 06/12/2027 | | | 5,213 | |
| | | 575,000 | | | 6.63%, 05/15/2039 | | | 665,866 | |
| | | 4,375,000 | | | SoftBank Group Corp. 6.00%, 07/19/2023, (6.00% fixed rate until 07/19/2023; 5 year USD ICE Swap + 4.226% thereafter)(7)(8)(9) | | | 4,189,062 | |
| | | 425,000 | | | Sprint Corp. 7.13%, 06/15/2024 | | | 458,469 | |
| | | 2,375,000 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 5.15%, 09/20/2029(1) | | | 2,588,750 | |
| | | | | | Telecom Italia Capital S.A. | | | | |
| | | 265,000 | | | 6.00%, 09/30/2034 | | | 284,213 | |
| | | 160,000 | | | 7.72%, 06/04/2038 | | | 196,800 | |
| | | 2,310,000 | | | Telefonica Celular del Paraguay S.A. 5.88%, 04/15/2027(1) | | | 2,468,813 | |
| | | | | | Telefonica Emisiones S.A. | | | | |
| | | 555,000 | | | 4.67%, 03/06/2038 | | | 620,931 | |
| | | 925,000 | | | 4.90%, 03/06/2048 | | | 1,059,159 | |
| | | 825,000 | | | 5.21%, 03/08/2047 | | | 979,197 | |
| | | 1,000,000 | | | 5.52%, 03/01/2049 | | | 1,254,572 | |
| | | | | | Verizon Communications, Inc. | | | | |
| | | 915,000 | | | 3.88%, 02/08/2029 | | | 1,009,349 | |
| | | 965,000 | | | 4.02%, 12/03/2029 | | | 1,075,729 | |
| | | 2,603,000 | | | 4.27%, 01/15/2036 | | | 2,948,036 | |
| | | 3,185,000 | | | 4.40%, 11/01/2034 | | | 3,692,232 | |
| | | 1,735,000 | | | 4.50%, 08/10/2033 | | | 2,025,283 | |
| | | 100,000 | | | 4.81%, 03/15/2039 | | | 120,716 | |
| | | 420,000 | | | 5.01%, 08/21/2054 | | | 541,795 | |
| | | 230,000 | | | 5.25%, 03/16/2037 | | | 288,864 | |
| | | 820,000 | | | Vodafone Group plc 4.25%, 09/17/2050 | | | 855,918 | |
| | | | | | | | | | |
| | | | | | | | | 47,540,149 | |
| | | | | | | | | | |
| | | | | | Transportation - 0.4% | |
| | | | | | CSX Corp. | | | | |
| | | 1,065,000 | | | 2.40%, 02/15/2030 | | | 1,042,061 | |
| | | 1,400,000 | | | 3.25%, 06/01/2027 | | | 1,472,819 | |
| | | 415,000 | | | 3.35%, 09/15/2049 | | | 409,336 | |
| | | 405,000 | | | 4.30%, 03/01/2048 | | | 460,111 | |
| | | 170,000 | | | 4.50%, 03/15/2049 | | | 199,247 | |
| | | 400,000 | | | Norfolk Southern Corp. 3.40%, 11/01/2049 | | | 397,405 | |
| | | 2,975,000 | | | Union Pacific Corp. 4.38%, 09/10/2038 | | | 3,411,056 | |
| | | | | | | | | | |
| | | | | | | | | 7,392,035 | |
| | | | | | | | | | |
| | | | | | Water - 0.0% | |
| | | 905,000 | | | American Water Capital Corp. 4.15%, 06/01/2049 | | | 1,025,213 | |
| | | | | | | | | | |
| | |
| | | Total Corporate Bonds
(cost $551,590,629) | | $ | 578,354,390 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 4.3% | |
| | | | Argentina - 0.0% | |
| EUR | | | 1,780,000 | | | Argentine Republic Government International Bond 5.25%, 01/15/2028(8) | | $ | 857,950 | |
| | | | | | | | | | |
| | | | Dominican Republic - 0.3% | |
| $ | | | 4,890,000 | | | Dominican Republic International Bond 6.40%, 06/05/2049(1) | | | 5,360,662 | |
| | | | | | | | | | |
| | | | Egypt - 0.0% | |
| | | 720,000 | | | Egypt Government International Bond 8.50%, 01/31/2047(8) | | | 798,754 | |
| | | | | | | | | | |
| | | | Ghana - 0.1% | |
| | | 2,135,000 | | | Ghana Government International Bond 7.63%, 05/16/2029(8) | | | 2,174,177 | |
| | | | | | | | | | |
| | | | | | Hungary - 0.0% | | | |
| | | 710,000 | | | Hungary Government International Bond 6.38%, 03/29/2021 | | | 748,205 | |
| | | | | | | | | | |
| | | | Italy - 0.1% | |
| | | | | | Italy Buoni Ordinari del Tesoro BOT | | | | |
| EUR | | | 755,000 | | | 0.30%, 02/28/2020(8)(10) | | | 847,302 | |
| | | 1,135,000 | | | 0.36%, 01/14/2020(8)(10) | | | 1,273,223 | |
| | | | | | | | | | |
| | | | | | | | | 2,120,525 | |
| | | | | | | | | | |
| | | | | | Japan - 1.0% | |
| | | | | | Japan Treasury Discount Bill | | | | |
| JPY | | | 548,500,000 | | | 0.15%, 02/17/2020(10) | | | 5,049,117 | |
| | | 457,850,000 | | | 0.15%, 05/11/2020(10) | | | 4,216,083 | |
| | | 686,800,000 | | | 0.17%, 02/10/2020(10) | | | 6,322,039 | |
| | | 285,650,000 | | | 0.22%, 01/27/2020(10) | | | 2,629,259 | |
| | | 228,950,000 | | | 0.30%, 01/08/2020(10) | | | 2,107,176 | |
| | | | | | | | | | |
| | | | | | | | | 20,323,674 | |
| | | | | | | | | | |
| | | | | | Panama - 0.1% | |
| $ | | | 1,110,000 | | | Panama Government International Bond 3.16%, 01/23/2030 | | | 1,143,300 | |
| | | | | | | | | | |
| | | | Romania - 0.5% | |
| | | | | | Romanian Government International Bond | | | | |
| EUR | | | 785,000 | | | 3.88%, 10/29/2035(8) | | | 1,022,212 | |
| | | 4,440,000 | | | 4.63%, 04/03/2049(8) | | | 6,141,649 | |
| | | 1,222,000 | | | 4.63%, 04/03/2049(1) | | | 1,690,337 | |
| $ | | | 1,176,000 | | | 6.13%, 01/22/2044(8) | | | 1,521,847 | |
| | | | | | | | | | |
| | | | | | | | | 10,376,045 | |
| | | | | | | | | | |
| | | | | | Senegal - 0.1% | |
| | | 2,115,000 | | | Senegal Government International Bond 6.25%, 05/23/2033(8) | | | 2,221,736 | |
| | | | | | | | | | |
| | | | | | Supranational - 1.8% | | | |
| NZD | | | 15,745,000 | | | Asian Development Bank 3.00%, 01/17/2023 | | | 11,020,088 | |
| | | | | | Inter-American Development Bank | | | | |
| CAD | | | 14,175,000 | | | 1.70%, 10/10/2024 | | | 10,757,739 | |
| AUD | | | 14,230,000 | | | 2.75%, 10/30/2025(8) | | | 10,652,155 | |
| CAD | | | 7,200,000 | | | International Finance Corp. 1.38%, 09/13/2024 | | | 5,385,182 | |
| | | | | | | | | | |
| | | | | | | | | 37,815,164 | |
| | | | | | | | | | |
| | | | | | Tunisia - 0.2% | |
| | | | | | Banque Centrale de Tunisie International Bond | | | | |
| EUR | | | 1,405,000 | | | 6.38%, 07/15/2026(1) | | | 1,562,107 | |
| | | 1,805,000 | | | 6.75%, 10/31/2023(1) | | | 2,091,106 | |
| | | | | | | | | | |
| | | | | | | | | 3,653,213 | |
| | | | | | | | | | |
| | | | | | United Arab Emirates - 0.1% | |
| $ | | | 2,665,000 | | | Abu Dhabi Government International Bond 3.13%, 09/30/2049(1) | | | 2,598,375 | |
| | | | | | | | | | |
| | | | | | Uruguay - 0.0% | | | |
| | | 205,000 | | | Uruguay Government International Bond 4.98%, 04/20/2055 | | | 241,551 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Foreign Government Obligations
(cost $89,858,655) | | $ | 90,433,331 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 1.0% | |
| | | | Development - 0.0% | |
| | | | | | California State, GO Taxable | | | | |
| $ | | | 110,000 | | | 7.30%, 10/01/2039 | | $ | 167,972 | |
| | | 105,000 | | | 7.60%, 11/01/2040 | | | 173,325 | |
| | | 175,000 | | | 7.63%, 03/01/2040 | | | 280,215 | |
| | | | | | | | | | |
| | | | | | | | | 621,512 | |
| | | | | | | | | | |
| | | | | | Education - 0.2% | |
| | | | | | Chicago, IL, Board of Education, GO | | | | |
| | | 365,000 | | | 6.04%, 12/01/2029 | | | 395,653 | |
| | | 985,000 | | | 6.14%, 12/01/2039 | | | 1,069,927 | |
| | | 1,750,000 | | | 6.32%, 11/01/2029 | | | 1,951,827 | |
| | | | | | | | | | |
| | | | | | | | | 3,417,407 | |
| | | | | | | | | | |
| | | | | | General - 0.3% | |
| | | 5,445,000 | | | Philadelphia Auth for Industrial Dev 6.55%, 10/15/2028 | | | 6,794,652 | |
| | | | | | | | | | |
| | | | | | General Obligation - 0.4% | |
| | | | | | California State, GO Taxable | |
| | | 115,000 | | | 7.35%, 11/01/2039 | | | 176,654 | |
| | | 1,570,000 | | | 7.55%, 04/01/2039 | | | 2,518,312 | |
| | | | | | State of Illinois, GO | |
| | | 3,345,164 | | | 4.95%, 06/01/2023(6) | | | 3,490,979 | |
| | | 280,000 | | | 5.00%, 01/01/2023 | | | 294,179 | |
| | | 610,000 | | | 5.56%, 02/01/2021 | | | 626,848 | |
| | | 980,000 | | | 5.95%, 04/01/2022 | | | 1,044,004 | |
| | | | | | | | | | |
| | | | | | | | | 8,150,976 | |
| | | | | | | | | | |
| | | | | | Utility - Electric - 0.1% | |
| | | 1,577,000 | | | Municipal Electric Auth, GA 6.64%, 04/01/2057 | | | 2,123,399 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Municipal Bonds
(cost $20,110,699) | | $ | 21,107,946 | |
| | | | | | | | | | |
|
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) | |
| | | | Advertising - 0.0% | |
| $ | | | 349,484 | | | Acosta, Inc. 7.00%, 09/26/2021, 1 mo. USD LIBOR + 3.250% | | $ | 81,954 | |
| | | 309,225 | | | Clear Channel Outdoor Holdings, Inc. 5.30%, 08/21/2026, 1 mo. USD LIBOR + 3.500% | | | 310,660 | |
| | | | | | | | | | |
| | | | | | | | | 392,614 | |
| | | | | | | | | | |
| | | | | | Aerospace/Defense - 0.1% | |
| | | 299,855 | | | Circor International, Inc. 5.24%, 12/11/2024, 1 mo. USD LIBOR + 3.500% | | | 300,754 | |
| | | 567,946 | | | TransDigm, Inc. 4.30%, 06/09/2023, 1 mo. USD LIBOR + 2.500% | | | 569,485 | |
| | | | | | | | | | |
| | | | | | | | | 870,239 | |
| | | | | | | | | | |
| | | | | | Agriculture - 0.0% | |
| | | 750,718 | | | Pinnacle Operating Corp. 7.30%, 11/15/2021, 1 mo. USD LIBOR + 5.500% | | | 739,457 | |
| | | | | | | | | | |
| | | | | | Airlines - 0.0% | |
| | | 280,000 | | | WestJet Airlines Ltd. 0.00%, 12/11/2026, 1 mo. USD LIBOR + 3.000%(12) | | | 282,251 | |
| | | | | | | | | | |
| | | | | | Auto Manufacturers - 0.0% | |
| | | 152,288 | | | Navistar International Corp. 5.24%, 11/06/2024, 1 mo. USD LIBOR + 3.500% | | | 151,652 | |
| | | | | | | | | | |
| | | | | | Auto Parts & Equipment - 0.1% | |
| | | 233,825 | | | Adient U.S. LLC 6.18%, 05/06/2024, 1 mo. USD LIBOR + 4.250% | | | 234,936 | |
| | | 199,813 | | | Altra Industrial Motion Corp. 3.80%, 10/01/2025, 1 mo. USD LIBOR + 2.000% | | | 200,229 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Auto Parts & Equipment - 0.1% - (continued) | |
| | | | | | Panther BF Aggregator L.P. | | | | |
| EUR | | | 710,000 | | | 3.75%, 04/30/2026, 1 mo. EURIBOR + 3.750% | | $ | 799,147 | |
| $ | | | 473,813 | | | 5.31%, 04/30/2026, 1 mo. USD LIBOR + 3.500% | | | 474,703 | |
| | | | | | | | | | |
| | | | | | | | | 1,709,015 | |
| | | | | | | | | | |
| | | | | | Biotechnology - 0.0% | |
| EUR | | | 100,000 | | | Grifols S.A. 2.25%, 11/15/2027 | | | 113,067 | |
| | | | | | | | | | |
| | | | | | Chemicals - 0.1% | |
| | | 185,986 | | | CTC AcquiCo GmbH 2.50%, 03/07/2025, 3 mo. EURIBOR + 2.500% | | | 206,772 | |
| $ | | | 119,400 | | | Hexion, Inc. 5.60%, 07/01/2026, 1 mo. USD LIBOR + 3.500% | | | 119,848 | |
| | | 123,438 | | | LTI Holdings, Inc. 5.30%, 09/06/2025, 1 mo. USD LIBOR + 3.500% | | | 110,521 | |
| | | | | | Starfruit Finco B.V. | |
| EUR | | | 100,000 | | | 3.75%, 10/01/2025, 3 mo. EURIBOR + 3.750% | | | 112,824 | |
| $ | | | 96,715 | | | 4.96%, 10/01/2025, 1 mo. USD LIBOR + 3.250% | | | 96,635 | |
| | | | | | Univar, Inc. | |
| | | 100,000 | | | 0.00%, 07/01/2026(12) | | | 100,350 | |
| | | 350,013 | | | 4.05%, 07/01/2024, 1 mo. USD LIBOR + 2.250% | | | 351,238 | |
| | | | | | | | | | |
| | | | | | | | | 1,098,188 | |
| | | | | | | | | | |
| | | | | | Coal - 0.0% | |
| | | 686,686 | | | Foresight Energy LLC 7.66%, 03/28/2022, 3 mo. USD LIBOR + 5.750% | | $ | 292,824 | |
| | | | | | | | | | |
| | | | | | Commercial Services - 0.2% | |
| | | | | | Allied Universal Holdco LLC | |
| | | 189,565 | | | 6.05%, 07/10/2026, 3 mo. USD LIBOR + 4.250% | | | 190,513 | |
| | | 18,768 | | | 6.06%, 07/10/2026, 1 mo. USD LIBOR + 4.250%(13) | | | 18,862 | |
| | | 276,500 | | | APX Group, Inc. 6.85%, 04/01/2024, 2 mo. USD LIBOR + 5.000% | | | 276,586 | |
| | | 122,188 | | | Ascend Learning LLC 4.80%, 07/12/2024, 1 mo. USD LIBOR + 3.000% | | | 122,875 | |
| | | 100,000 | | | Belron Finance U.S. LLC 4.44%, 11/07/2026, 1 mo. USD LIBOR + 2.500% | | | 100,313 | |
| | | 375,166 | | | Blackhawk Network Holdings, Inc. 4.80%, 06/15/2025, 1 mo. USD LIBOR + 3.000% | | | 374,776 | |
| | | 123,023 | | | Capital Automotive L.P. 7.80%, 03/24/2025, 1 mo. USD LIBOR + 6.000% | | | 123,208 | |
| | | 415,000 | | | Dun & Bradstreet Corp. 6.79%, 02/06/2026, 1 mo. USD LIBOR + 5.000% | | | 418,287 | |
| | | 66,000 | | | Energizer Holdings, Inc. 4.00%, 12/17/2025, 1 mo. USD LIBOR + 2.250% | | | 66,274 | |
| | | 105,000 | | | Garda World Security Corp. 6.66%, 10/30/2026, 1 mo. USD LIBOR + 4.750% | | | 105,591 | |
| | | 605,769 | | | Quikrete Holdings, Inc. 4.55%, 11/15/2023, 1 mo. USD LIBOR + 2.750% | | | 607,823 | |
| EUR | | | 211,950 | | | Techem GmbH 3.50%, 07/31/2025, 3 mo. EURIBOR + 3.500% | | | 238,735 | |
| $ | | | 1,004,250 | | | Tempo Acquisition LLC 4.55%, 05/01/2024, 1 mo. USD LIBOR + 3.000% | | | 1,009,482 | |
| EUR | | | 135,000 | | | Verisure Holding AB 3.50%, 10/21/2022, 3 mo. EURIBOR + 3.500% | | | 152,064 | |
| $ | | | 121,084 | | | Weight Watchers International, Inc. 6.72%, 11/29/2024, 3 mo. USD LIBOR + 4.750% | | | 121,236 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Commercial Services - 0.2% - (continued) | |
| $ | | | 414,357 | | | Xerox Business Services LLC 4.30%, 12/07/2023, 1 mo. USD LIBOR + 2.500% | | $ | 412,285 | |
| | | | | | | | | | |
| | | | | | | | | 4,338,910 | |
| | | | | | | | | | |
| | | | | | Construction Materials - 0.0% | |
| | | 265,950 | | | NCI Building Systems, Inc. 5.49%, 04/12/2025, 3 mo. USD LIBOR + 3.750% | | | 265,035 | |
| | | | | | | | | | |
| | | | | | Distribution/Wholesale - 0.1% | |
| | | 972,563 | | | American Builders & Contractors Supply Co., Inc. 3.80%, 01/15/2027, 1 mo. USD LIBOR + 2.000% | | | 976,822 | |
| | | 175,000 | | | SRS Distribution, Inc. 0.00%, 05/23/2025, 1 mo. USD LIBOR + 4.500%(12) | | | 175,219 | |
| | | | | | | | | | |
| | | | | | | | | 1,152,041 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 0.1% | |
| | | | | | AlixPartners LLP | |
| EUR | | | 99,250 | | | 3.25%, 04/04/2024, 3 mo. EURIBOR + 3.250% | | | 111,839 | |
| $ | | | 457,075 | | | 4.55%, 04/04/2024, 3 mo. USD LIBOR + 2.750% | | | 459,219 | |
| | | 153,450 | | | Aretec Group, Inc. 6.05%, 10/01/2025, 3 mo. USD LIBOR + 4.250% | | | 151,245 | |
| | | | | | Crown Finance U.S., Inc. | |
| EUR | | | 33,186 | | | 2.38%, 02/28/2025, 1 mo. EURIBOR + 2.375% | | | 37,280 | |
| $ | | | 183,844 | | | 4.05%, 02/28/2025, 1 mo. USD LIBOR + 2.250% | | | 183,593 | |
| | | 227,700 | | | Financial & Risk U.S. Holdings, Inc. 5.05%, 10/01/2025, 1 mo. USD LIBOR + 3.750% | | | 229,635 | |
| | | 138,950 | | | Minotaur Acquisition, Inc. 6.80%, 03/27/2026, 1 mo. USD LIBOR + 5.000% | | | 136,171 | |
| EUR | | | 185,208 | | | Nets Holding A/S 3.25%, 02/06/2025, 3 mo. EURIBOR + 3.250% | | | 206,857 | |
| $ | | | 276,450 | | | RP Crown Parent LLC 4.56%, 10/12/2023, 1 mo. USD LIBOR + 2.750% | | | 278,006 | |
| | | 99,486 | | | UFC Holdings LLC 5.05%, 04/29/2026, 1 mo. USD LIBOR + 3.250% | | | 100,066 | |
| | | 207,709 | | | Victory Capital Holdings, Inc. 5.35%, 07/01/2026, 1 mo. USD LIBOR + 3.250% | | | 209,007 | |
| | | | | | | | | | |
| | | | | | | | | 2,102,918 | |
| | | | | | | | | | |
| | | | | | Electric - 0.0% | |
| | | 320,150 | | | Seadrill Partners Finco LLC 7.95%, 02/21/2021, 3 mo. USD LIBOR + 6.000% | | | 159,374 | |
| | | | | | | | | | |
| | | | | | Electronics - 0.0% | |
| | | 125,000 | | | Pitney Bowes, Inc. 0.00%, 12/05/2026, 1 mo. USD LIBOR + 4.000%(12) | | | 123,476 | |
| | | | | | | | | | |
| | | | | | Energy - Alternate Sources - 0.0% | |
| | | 261,025 | | | BCP Renaissance Parent LLC 5.45%, 10/31/2024, 3 mo. USD LIBOR + 3.500% | | | 230,681 | |
| | | 98,000 | | | Medallion Midland Acquisition LLC 5.05%, 10/30/2024, 1 mo. USD LIBOR + 3.250% | | | 96,775 | |
| | | | | | | | | | |
| | | | | | | | | 327,456 | |
| | | | | | | | | | |
| | | | | | Engineering & Construction - 0.0% | |
| | | 731,250 | | | Brand Energy & Infrastructure Services, Inc. 6.24%, 06/21/2024, 3 mo. USD LIBOR + 4.250% | | | 728,508 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Entertainment - 0.0% | |
| $ | | | 426,319 | | | Scientific Games International, Inc. 4.55%, 08/14/2024, 2 mo. USD LIBOR + 2.750% | | $ | 427,031 | |
| | | 118,500 | | | Wyndham Hotels & Resorts, Inc. 3.55%, 05/30/2025, 1 mo. USD LIBOR + 1.750% | | | 119,029 | |
| | | | | | | | | | |
| | | | | | | | | 546,060 | |
| | | | | | | | | | |
| | | | | | Food - 0.1% | |
| | | 99,750 | | | B&G Foods, Inc. 4.30%, 10/10/2026, 1 mo. USD LIBOR + 2.500% | | | 100,456 | |
| | | 490,934 | | | Hostess Brands LLC 4.14%, 08/03/2025, 1 mo. USD LIBOR + 2.250% | | | 492,529 | |
| | | 249,375 | | | U.S. Foods, Inc. 3.80%, 09/13/2026, 1 mo. USD LIBOR + 2.000% | | | 250,233 | |
| | | | | | | | | | |
| | | | | | | | | 843,218 | |
| | | | | | | | | | |
| | | | | | Food Service - 0.0% | |
| | | 99,000 | | | 8th Avenue Food & Provisions, Inc. 5.49%, 10/01/2025, 3 mo. USD LIBOR + 3.750% | | | 99,330 | |
| | | Aramark Services, Inc. | |
| | | 110,000 | | | 0.00%, 01/27/2027(12) | | | 110,516 | |
| | | 111,920 | | | 3.55%, 03/11/2025, 3 mo. USD LIBOR + 1.750% | | | 112,304 | |
| | | | | | | | | | |
| | | | | | | | | 322,150 | |
| | | | | | | | | | |
| | | | | | Gas - 0.0% | |
| | | 104,213 | | | Messer Industries GmbH 4.45%, 03/01/2026, 1 mo. USD LIBOR + 2.500% | | | 104,704 | |
| | | | | | | | | | |
| | | | Healthcare - Products - 0.0% | |
| | | 209,250 | | | Lifescan Global Corp. 8.06%, 10/01/2024, 3 mo. USD LIBOR + 6.000% | | | 198,699 | |
| | | 206,952 | | | Parexel International Corp. 4.55%, 09/27/2024, 1 mo. USD LIBOR + 2.750% | | | 202,739 | |
| | | | | | | | | | |
| | | | | | | | | 401,438 | |
| | | | | | | | | | |
| | | | | | Healthcare - Services - 0.2% | |
| | | 355,312 | | | CDRH Parent, Inc. 6.15%, 07/01/2021, 3 mo. USD LIBOR + 4.250% | | | 257,527 | |
| | | 100,000 | | | CPI Holdco LLC 6.20%, 11/04/2026, 1 mo. USD LIBOR + 4.250% | | | 100,250 | |
| | | 130,212 | | | DentalCorp Perfect Smile ULC 5.55%, 06/06/2025, 1 mo. USD LIBOR + 3.750% | | | 129,343 | |
| | | 272,250 | | | Envision Healthcare Corp. 5.55%, 10/10/2025, 1 mo. USD LIBOR + 3.750% | | | 231,549 | |
| | | 306,898 | | | Global Medical Response, Inc. 5.04%, 04/28/2022, 1 mo. USD LIBOR + 3.250% | | | 299,943 | |
| EUR | | | 216,700 | | | IQVIA, Inc. 2.00%, 06/11/2025, 3 mo. EURIBOR + 2.000% | | | 243,750 | |
| $ | | | 676,019 | | | Jaguar Holding Co. 4.30%, 08/18/2022, 3 mo. USD LIBOR + 2.500% | | | 679,170 | |
| | | | | | MED ParentCo L.P. | |
| | | 60,069 | | | 1.68%, 08/31/2026, 1 mo. USD LIBOR + 4.250%(13) | | | 59,976 | |
| | | 240,088 | | | 6.05%, 08/31/2026, 1 mo. USD LIBOR + 4.250% | | | 239,714 | |
| | | 455,175 | | | MPH Acquisition Holdings LLC 4.70%, 06/07/2023, 3 mo. USD LIBOR + 2.750% | | | 448,102 | |
| | | 201,377 | | | Syneos Health, Inc. 3.80%, 08/01/2024, 1 mo. USD LIBOR + 2.000% | | | 202,384 | |
| | | 550,000 | | | Zelis Healthcare Corp. 6.55%, 09/30/2026, 1 mo. USD LIBOR + 4.750% | | | 552,293 | |
| | | | | | | | | | |
| | | | | | | | | 3,444,001 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Household Products - 0.0% | |
| $ | | | 289,100 | | | Diamond (BC) B.V. 4.93%, 09/06/2024, 2 mo. USD LIBOR + 3.000% | | $ | 282,451 | |
| | | 290,250 | | | Revlon Consumer Products Corp. 5.41%, 09/07/2023, 1 mo. USD LIBOR + 3.500% | | | 221,405 | |
| | | | | | | | | | |
| | | | | | | | | 503,856 | |
| | | | | | | | | | |
| | | | | | Insurance - 0.1% | |
| | | | | | Asurion LLC | |
| | | 735,864 | | | 4.80%, 08/04/2022, 1 mo. USD LIBOR + 3.000% | | | 739,698 | |
| | | 548,558 | | | 4.80%, 11/03/2023, 1 mo. USD LIBOR + 3.000% | | | 551,399 | |
| | | 375,000 | | | 8.30%, 08/04/2025, 1 mo. USD LIBOR + 6.500% | | | 379,313 | |
| | | 221,625 | | | Hub International Ltd. 4.69%, 04/25/2025, 2 mo. USD LIBOR + 3.000% | | | 221,332 | |
| | | | | | Sedgwick Claims Management Services, Inc. | |
| | | 282,150 | | | 5.05%, 12/31/2025, 1 mo. USD LIBOR + 3.250% | | | 282,063 | |
| | | 547,250 | | | 5.80%, 09/03/2026, 1 mo. USD LIBOR + 4.000% | | | 551,699 | |
| | | | | | | | | | |
| | | | | | | | | 2,725,504 | |
| | | | | | | | | | |
| | | | | | Leisure Time - 0.1% | |
| | | 436,258 | | | Caesars Resort Collection LLC 4.55%, 12/23/2024, 1 mo. USD LIBOR + 2.750% | | | 436,712 | |
| | | 795,546 | | | Delta (LUX) S.a.r.l. 4.30%, 02/01/2024, 1 mo. USD LIBOR + 2.500% | | | 798,282 | |
| | | 733,400 | | | Golden Entertainment, Inc. 4.80%, 10/21/2024, 1 mo. USD LIBOR + 3.000% | | | 735,234 | |
| | | 143,550 | | | Penn National Gaming, Inc. 4.05%, 10/15/2025, 3 mo. USD LIBOR + 2.250% | | | 143,998 | |
| | | | | | | | | | |
| | | | | | | | | 2,114,226 | |
| | | | | | | | | | |
| | | | | | Lodging - 0.0% | |
| | | 172,902 | | | Boyd Gaming Corp. 3.85%, 09/15/2023, 1 week USD LIBOR + 2.250% | | | 173,934 | |
| | | 540,867 | | | Caesars Entertainment Operating Co. 3.80%, 10/07/2024, 1 mo. USD LIBOR + 2.000% | | | 543,668 | |
| | | | | | | | | | |
| | | | | | | | | 717,602 | |
| | | | | | | | | | |
| | | | | | Machinery - Construction & Mining - 0.0% | |
| | | 267,300 | | | Brookfield WEC Holdings, Inc. 5.30%, 08/01/2025, 1 mo. USD LIBOR + 3.500% | | | 268,928 | |
| | | 84,887 | | | Pike Corp. 5.05%, 07/24/2026, 1 mo. USD LIBOR + 3.250% | | | 85,283 | |
| | | | | | | | | | |
| | | | | | | | | 354,211 | |
| | | | | | | | | | |
| | | | | | Machinery - Diversified - 0.0% | |
| | | 262,106 | | | Gates Global LLC 4.55%, 04/01/2024, 3 mo. USD LIBOR + 2.750% | | | 262,106 | |
| | | | | | | | | | |
| | | | | | Media - 0.3% | |
| | | 191,100 | | | Altice Financing S.A. 4.52%, 01/31/2026, 3 mo. USD LIBOR + 2.750% | | | 189,787 | |
| | | 487,076 | | | AVSC Holding Corp. 5.09%, 03/03/2025, 3 mo. USD LIBOR + 3.250% | | | 484,641 | |
| | | 1,520,621 | | | Charter Communications Operating LLC 3.55%, 02/01/2027, 3 mo. USD LIBOR + 1.750% | | | 1,529,182 | |
| | | 442,250 | | | CSC Holdings LLC 4.24%, 04/15/2027, 1 mo. USD LIBOR + 2.500% | | | 443,723 | |
| | | 161,432 | | | Gray Television, Inc. 4.20%, 01/02/2026, 1 mo. ICE LIBOR + 2.500% | | | 162,341 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Media - 0.3% - (continued) | |
| $ | | | 275,000 | | | Houghton Mifflin Harcourt Publishing Co. 0.00%, 11/22/2024(12) | | $ | 273,166 | |
| | | 650,903 | | | ION Media Networks, Inc. 4.81%, 12/18/2024, 1 mo. USD LIBOR + 3.000% | | | 652,804 | |
| | | 265,455 | | | MTN Infrastructure TopCo, Inc. 4.80%, 11/15/2024, 1 mo. USD LIBOR + 3.000% | | | 265,190 | |
| | | 94,574 | | | NASCAR Holdings, Inc. 4.50%, 10/19/2026, 1 mo. USD LIBOR + 2.750% | | | 95,556 | |
| | | 290,000 | | | Nexstar Broadcasting, Inc. 4.45%, 09/18/2026, 1 mo. USD LIBOR + 2.750% | | | 291,351 | |
| | | 275,000 | | | Shutterfly, Inc. 7.93%, 10/01/2026, 1 mo. USD LIBOR + 6.000% | | | 257,353 | |
| | | 187,031 | | | Sinclair Television Group, Inc. 4.24%, 09/30/2026, 1 mo. USD LIBOR + 2.500% | | | 187,499 | |
| | | 220,000 | | | Telenet Financing USD LLC 3.99%, 08/15/2026, 1 mo. USD LIBOR + 2.250% | | | 221,054 | |
| | | 230,000 | | | Terrier Media Buyer, Inc. 0.00%, 12/17/2026(12) | | | 232,157 | |
| | | 90,868 | | | Web.com Group, Inc. 5.50%, 10/10/2025, 3 mo. USD LIBOR + 3.750% | | | 90,733 | |
| | | 124,407 | | | William Morris Endeavor Entertainment LLC 4.61%, 05/18/2025, 1 mo. USD LIBOR + 2.750% | | | 123,656 | |
| | | | | | | | | | |
| | | | | | | | | 5,500,193 | |
| | | | | | | | | | |
| | | | | | Metal Fabricate/Hardware - 0.0% | |
| | | 233,251 | | | Rexnord LLC 3.54%, 08/21/2024, 1 mo. USD LIBOR + 1.750% | | | 234,214 | |
| | | | | | | | | | |
| | | | | | Miscellaneous Manufacturing - 0.1% | |
| | | 124,700 | | | H.B. Fuller Co. 3.77%, 10/20/2024, 1 mo. USD LIBOR + 2.000% | | | 124,985 | |
| | | 99,750 | | | Tamko Building Products, Inc. 5.14%, 06/01/2026, 1 mo. USD LIBOR + 3.250% | | | 100,498 | |
| | | 522,963 | | | USI, Inc. 4.95%, 05/16/2024, 3 mo. USD LIBOR + 3.000% | | | 522,440 | |
| | | | | | | | | | |
| | | | | | | | | 747,923 | |
| | | | | | | | | | |
| | | | | | Oil & Gas - 0.1% | |
| | | | | | BCP Raptor LLC | |
| | | 154,766 | | | 6.05%, 06/24/2024, 2 mo. USD LIBOR + 4.250% | | | 142,384 | |
| | | 114,425 | | | 6.55%, 11/03/2025, 1 mo. USD LIBOR + 4.750% | | | 105,271 | |
| | | 455,000 | | | California Resources Corp. 12.18%, 12/31/2021, 1 mo. USD LIBOR + 10.375% | | | 337,460 | |
| | | 764,040 | | | Fieldwood Energy LLC 7.18%, 04/11/2022, 1 mo. USD LIBOR + 5.250% | | | 635,849 | |
| | | 212,313 | | | NorthRiver Midstream Finance LP 5.35%, 10/01/2025, 3 mo. USD LIBOR + 3.250% | | | 212,402 | |
| | | 690,293 | | | PES Holdings LLC 6.62%, 12/31/2022, 1 mo. USD LIBOR + 6.990%(14) | | | 260,013 | |
| | | 118,500 | | | Traverse Midstream Partners LLC 5.80%, 09/27/2024, 3 mo. USD LIBOR + 4.000% | | | 106,413 | |
| | | | | | | | | | |
| | | | | | | | | 1,799,792 | |
| | | | | | | | | | |
| | | | | | Oil & Gas Services - 0.0% | |
| | | 149,250 | | | Lower Cadence Holdings LLC 5.80%, 05/22/2026, 1 mo. USD LIBOR + 4.000% | | | 147,292 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Oil & Gas Services - 0.0% - (continued) | |
| $ | | | 532,325 | | | UGI Energy Services LLC 5.55%, 08/13/2026, 1 mo. USD LIBOR + 3.750% | | $ | 534,987 | |
| | | | | | | | | | |
| | | | | | | | | 682,279 | |
| | | | | | | | | | |
| | | | | | Packaging & Containers - 0.1% | |
| | | | | | Berry Global, Inc. | |
| EUR | | | 134,325 | | | 2.50%, 07/01/2026, 3 mo. EURIBOR + 2.500% | | | 150,888 | |
| $ | | | 398,000 | | | 4.22%, 07/01/2026, 3 mo. USD LIBOR + 2.500% | | | 398,665 | |
| | | 361,864 | | | Flex Acquisition Co., Inc. 5.09%, 12/29/2023, 3 mo. USD LIBOR + 3.000% | | | 358,397 | |
| | | 198,850 | | | Proampac PG Borrower LLC 5.38%, 11/20/2023, 1 mo. USD LIBOR + 3.500% | | | 195,495 | |
| | | 538,142 | | | Reynolds Group Holdings, Inc. 4.55%, 02/05/2023, 1 mo. USD LIBOR + 2.750% | | | 539,406 | |
| | | | | | | | | | |
| | | | | | | | | 1,642,851 | |
| | | | | | | | | | |
| | | | | | Pharmaceuticals - 0.1% | |
| | | 439,150 | | | Bausch Health Cos., Inc. 4.74%, 06/02/2025, 1 mo. USD LIBOR + 3.000% | | | 441,345 | |
| | | 114,138 | | | Catalent Pharma Solutions, Inc. 4.05%, 05/18/2026, 1 mo. USD LIBOR + 2.250% | | | 114,458 | |
| | | 799,500 | | | Endo Luxembourg Finance Co., S.a r.l. 6.06%, 04/29/2024, 1 mo. USD LIBOR + 4.250% | | | 763,523 | |
| | | 545,000 | | | Sunshine Luxembourg S.a.r.l. 6.20%, 10/01/2026, 1 mo. USD LIBOR + 4.250% | | | 549,573 | |
| | | | | | | | | | |
| | | | | | | | | 1,868,899 | |
| | | | | | | | | | |
| | | | | | Real Estate - 0.0% | |
| | | 286,364 | | | VICI Properties LLC 3.79%, 12/20/2024, 1 mo. USD LIBOR + 2.000% | | | 287,546 | |
| | | | | | | | | | |
| | | | | | Retail - 0.1% | |
| | | 654,925 | | | Bass Pro Group LLC 6.80%, 09/25/2024, 1 mo. USD LIBOR + 5.000% | | | 652,469 | |
| | | 388,409 | | | Coty, Inc. 3.96%, 04/07/2025, 1 mo. USD LIBOR + 2.250% | | | 379,992 | |
| | | 490,155 | | | Harbor Freight Tools USA, Inc. 4.30%, 08/18/2023, 1 mo. USD LIBOR + 2.500% | | | 487,876 | |
| | | 314,866 | | | Neiman Marcus Group Ltd. LLC 7.71%, 10/25/2023, 1 mo. USD LIBOR + 6.000% | | | 258,977 | |
| | | 133,313 | | | Rodan & Fields LLC 5.74%, 06/16/2025, 1 mo. USD LIBOR + 4.000% | | | 77,321 | |
| | | 384,182 | | | Staples, Inc. 6.69%, 04/16/2026, 3 mo. USD LIBOR + 5.000% | | | 377,125 | |
| | | 495,694 | | | U.S. Foods, Inc. 3.55%, 06/27/2023, 1 mo. USD LIBOR + 2.000% | | | 497,037 | |
| | | | | | | | | | |
| | | | | | | | | 2,730,797 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 0.0% | |
| | | 89,610 | | | Cabot Microelectronics Corp. 3.81%, 11/14/2025, 1 mo. USD LIBOR + 2.000% | | | 89,946 | |
| | | 120,727 | | | Microchip Technology, Inc. 3.80%, 05/29/2025, 1 mo. USD LIBOR + 2.000% | | | 121,331 | |
| | | | | | | | | | |
| | | | | | | | | 211,277 | |
| | | | | | | | | | |
| | | | | | Software - 0.3% | |
| | | 510,701 | | | Almonde, Inc. 5.70%, 06/13/2024, 3 mo. USD LIBOR + 3.500% | | | 506,447 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 2.5%(11) - (continued) | |
| | | | | | Software - 0.3% - (continued) | |
| $ | | | 565,184 | | | Change Healthcare Holdings LLC 4.30%, 03/01/2024, 1 mo. USD LIBOR + 2.500% | | $ | 566,687 | |
| | | 285,000 | | | DCert Buyer, Inc. 5.80%, 10/16/2026, 1 mo. USD LIBOR + 4.000% | | | 285,641 | |
| | | 341,416 | | | Epicor Software Corp. 5.05%, 06/01/2022, 1 mo. USD LIBOR + 3.250% | | | 342,953 | |
| | | 804,506 | | | Hyland Software, Inc. 5.30%, 07/01/2024, 1 mo. USD LIBOR + 3.250% | | | 808,030 | |
| | | 719,723 | | | Infor U.S., Inc. 4.70%, 02/01/2022, 1 mo. USD LIBOR + 2.750% | | | 722,551 | |
| | | 390,000 | | | Playtika Holding Corp. 0.00%, 12/10/2024(12) | | | 393,705 | |
| | | 138,600 | | | Quest Software U.S. Holdings, Inc. 6.18%, 05/16/2025, 3 mo. USD LIBOR + 4.250% | | | 137,128 | |
| | | 57,564 | | | SS&C Technologies Holdings Europe S.a.r.l. 4.05%, 04/16/2025, 1 mo. USD LIBOR + 2.250% | | | 57,934 | |
| | | 408,853 | | | SS&C Technologies, Inc. 4.05%, 04/16/2025, 1 mo. USD LIBOR + 2.250% | | | 411,391 | |
| | | 139,650 | | | Ultimate Software Group, Inc. 5.55%, 05/04/2026, 1 mo. USD LIBOR + 3.750% | | | 140,457 | |
| | | 1,330,146 | | | WEX, Inc. 4.05%, 05/15/2026, 1 mo. USD LIBOR + 2.250% | | | 1,337,355 | |
| | | | | | | | | | |
| | | | | | | | | 5,710,279 | |
| | | | | | | | | | |
| | | | | | Telecommunications - 0.2% | |
| | | 690,581 | | | Altice France S.A. 5.43%, 01/31/2026, 3 mo. USD LIBOR + 3.688% | | | 690,581 | |
| | | 197,980 | | | CenturyLink, Inc. 4.55%, 01/31/2025, 1 mo. USD LIBOR + 2.750% | | | 198,673 | |
| | | 202,397 | | | Level 3 Financing Inc. 3.55%, 03/01/2027, 1 mo. USD LIBOR + 1.750% | | | 203,030 | |
| | | 135,000 | | | Liberty Latin America Ltd. 6.74%, 10/22/2026, 1 mo. USD LIBOR + 5.000% | | | 136,519 | |
| | | | | | Sprint Communications, Inc. | |
| | | 991,950 | | | 4.31%, 02/02/2024, 1 mo. USD LIBOR + 2.500% | | | 982,279 | |
| | | 99,000 | | | 4.81%, 02/02/2024, 1 mo. USD LIBOR + 3.000% | | | 98,505 | |
| | | 642,416 | | | Univision Communications, Inc. 4.55%, 03/15/2024, 1 mo. USD LIBOR + 2.750% | | | 633,435 | |
| | | 158,000 | | | Zacapa LLC 6.95%, 07/02/2025, 1 mo. USD LIBOR + 5.000% | | | 159,054 | |
| | | 361,056 | | | Zayo Group LLC 4.05%, 01/19/2024, 1 mo. USD LIBOR + 2.250% | | | 361,977 | |
| | | | | | | | | | |
| | | | | | | | | 3,464,053 | |
| | | | | | | | | | |
| | | | | | Transportation - 0.0% | |
| | | 221,250 | | | Savage Enterprises LLC 5.74%, 08/01/2025, 1 mo. USD LIBOR + 4.000% | | | 223,699 | |
| | | | | | | | | | |
| | |
| | | Total Senior Floating Rate Interests
(cost $53,935,565) | | $ | 52,289,903 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 53.5% | |
| | | | | | Mortgage-Backed Agencies - 53.5% | |
| | | | | | FHLMC - 7.8% | |
| $ | | | 115,551 | | | 0.00%, 11/15/2036(15)(16) | | $ | 103,790 | |
| | | 52,532,115 | | | 0.13%, 10/25/2020(3)(5) | | | 30,563 | |
| | | 20,978,853 | | | 0.61%, 03/25/2027(3)(5) | | | 804,726 | |
| | | 1,856,418 | | | 1.75%, 10/15/2042 | | | 1,821,727 | |
| | | 719,095 | | | 2.50%, 05/15/2028(5) | | | 49,858 | |
| | | 2,071,519 | | | 3.00%, 03/15/2028(5) | | | 143,069 | |
| | | 2,068,870 | | | 3.00%, 08/01/2029 | | | 2,144,011 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | FHLMC - 7.8% - (continued) | |
| $ | | | 923,933 | | | 3.00%, 05/15/2032(5) | | $ | 52,732 | |
| | | 753,379 | | | 3.00%, 03/15/2033(5) | | | 80,384 | |
| | | 5,421,693 | | | 3.00%, 04/01/2033 | | | 5,575,842 | |
| | | 5,218,556 | | | 3.00%, 11/01/2036 | | | 5,346,152 | |
| | | 3,464,643 | | | 3.00%, 01/01/2037 | | | 3,549,341 | |
| | | 4,225,000 | | | 3.00%, 08/15/2043 | | | 4,285,755 | |
| | | 1,154,423 | | | 3.00%, 05/15/2046 | | | 1,189,067 | |
| | | 8,355,556 | | | 3.00%, 11/01/2046 | | | 8,581,040 | |
| | | 2,225,530 | | | 3.00%, 12/01/2046 | | | 2,288,070 | |
| | | 36,023 | | | 3.00%, 02/01/2048 | | | 36,719 | |
| | | 1,064,470 | | | 3.25%, 11/15/2041 | | | 1,102,962 | |
| | | 969,925 | | | 3.50%, 06/15/2026(5) | | | 42,440 | |
| | | 388,759 | | | 3.50%, 09/15/2026(5) | | | 30,659 | |
| | | 635,813 | | | 3.50%, 03/15/2027(5) | | | 43,652 | |
| | | 4,316,460 | | | 3.50%, 08/01/2034 | | | 4,519,891 | |
| | | 2,676,130 | | | 3.50%, 03/15/2041(5) | | | 225,563 | |
| | | 1,219,756 | | | 3.50%, 06/01/2046 | | | 1,272,159 | |
| | | 5,046,062 | | | 3.50%, 10/01/2047 | | | 5,243,225 | |
| | | 55,670,421 | | | 3.50%, 03/01/2048 | | | 57,866,354 | |
| | | 234,831 | | | 3.50%, 08/01/2048 | | | 243,909 | |
| | | 3,118,856 | | | 4.00%, 08/01/2025 | | | 3,254,775 | |
| | | 1,398,169 | | | 4.00%, 12/15/2026(5) | | | 103,391 | |
| | | 2,381,480 | | | 4.00%, 07/15/2027(5) | | | 170,943 | |
| | | 1,076,492 | | | 4.00%, 03/15/2028(5) | | | 79,517 | |
| | | 604,253 | | | 4.00%, 06/15/2028(5) | | | 49,297 | |
| | | 1,341,808 | | | 4.00%, 07/15/2030(5) | | | 137,237 | |
| | | 997,616 | | | 4.00%, 11/15/2040 | | | 1,079,800 | |
| | | 3,522,919 | | | 4.00%, 05/01/2042 | | | 3,780,110 | |
| | | 1,095,589 | | | 4.00%, 08/01/2042 | | | 1,173,061 | |
| | | 1,459,194 | | | 4.00%, 09/01/2042 | | | 1,562,010 | |
| | | 282,160 | | | 4.00%, 07/01/2044 | | | 296,435 | |
| | | 264,373 | | | 4.00%, 06/01/2045 | | | 280,337 | |
| | | 1,444,357 | | | 4.00%, 02/01/2046 | | | 1,530,680 | |
| | | 593,467 | | | 4.00%, 09/01/2048 | | | 620,653 | |
| | | 3,890,413 | | | 4.00%, 11/01/2049 | | | 4,054,850 | |
| | | 764,630 | | | 4.00%, 12/01/2049 | | | 799,679 | |
| | | 711,278 | | | 4.50%, 09/01/2044 | | | 765,077 | |
| | | 2,189,358 | | | 4.75%, 07/15/2039 | | | 2,421,884 | |
| | | 59,537 | | | 5.00%, 02/01/2023 | | | 63,558 | |
| | | 125,327 | | | 5.00%, 08/01/2023 | | | 133,760 | |
| | | 78,788 | | | 5.00%, 03/01/2028 | | | 84,135 | |
| | | 35,610 | | | 5.00%, 08/01/2029 | | | 38,301 | |
| | | 65,512 | | | 5.00%, 07/01/2030 | | | 70,457 | |
| | | 330,508 | | | 5.00%, 03/01/2031 | | | 355,841 | |
| | | 512,690 | | | 5.00%, 05/01/2031 | | | 551,687 | |
| | | 847,042 | | | 5.00%, 09/01/2031 | | | 909,923 | |
| | | 627,216 | | | 5.00%, 11/01/2031 | | | 672,694 | |
| | | 186,140 | | | 5.00%, 07/01/2032 | | | 200,253 | |
| | | 1,008,746 | | | 5.00%, 09/15/2033(5) | | | 181,312 | |
| | | 16,509 | | | 5.00%, 12/01/2034 | | | 17,643 | |
| | | 16,171 | | | 5.00%, 11/01/2035 | | | 17,842 | |
| | | 33,972 | | | 5.00%, 03/01/2039 | | | 37,418 | |
| | | 333,667 | | | 5.00%, 08/01/2039 | | | 368,159 | |
| | | 15,148 | | | 5.00%, 09/01/2039 | | | 16,714 | |
| | | 14,374 | | | 5.00%, 12/01/2039 | | | 15,861 | |
| | | 12,295 | | | 5.00%, 04/01/2041 | | | 13,360 | |
| | | 34,190 | | | 5.00%, 04/01/2044 | | | 37,664 | |
| | | 18,304 | | | 5.00%, 05/01/2044 | | | 19,688 | |
| | | 28,288 | | | 5.00%, 05/01/2047 | | | 30,349 | |
| | | 1,286,036 | | | 5.00%, 02/15/2048(5) | | | 258,622 | |
| | | 79,512 | | | 5.00%, 08/01/2048 | | | 85,089 | |
| | | 28,180 | | | 5.00%, 11/01/2048 | | | 30,152 | |
| | | 143,950 | | | 5.00%, 01/01/2049 | | | 153,938 | |
| | | 830,346 | | | 5.00%, 02/01/2049 | | | 888,472 | |
| | | 4,209,953 | | | 5.00%, 03/01/2049 | | | 4,498,842 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | FHLMC - 7.8% - (continued) | |
| $ | | | 9,093,189 | | | 5.00%, 10/01/2049 | | $ | 9,708,380 | |
| | | 39,339 | | | 5.50%, 03/01/2028 | | | 42,397 | |
| | | 85,550 | | | 5.50%, 04/01/2033 | | | 95,349 | |
| | | 820,308 | | | 5.50%, 05/01/2034 | | | 923,871 | |
| | | 981 | | | 5.50%, 11/01/2035 | | | 1,073 | |
| | | 16,316 | | | 5.50%, 05/01/2037 | | | 18,316 | |
| | | 42,870 | | | 5.50%, 11/01/2037 | | | 48,189 | |
| | | 77,867 | | | 5.50%, 02/01/2038 | | | 87,489 | |
| | | 32,155 | | | 5.50%, 04/01/2038 | | | 36,096 | |
| | | 40,473 | | | 5.50%, 06/01/2038 | | | 45,453 | |
| | | 4,385,204 | | | 5.50%, 08/01/2038 | | | 4,927,390 | |
| | | 444,222 | | | 5.50%, 09/01/2038 | | | 498,742 | |
| | | 8,741 | | | 5.50%, 12/01/2039 | | | 9,846 | |
| | | 113,669 | | | 5.50%, 02/01/2040 | | | 127,620 | |
| | | 369,455 | | | 5.50%, 05/01/2040 | | | 414,813 | |
| | | 365,166 | | | 5.50%, 08/01/2040 | | | 409,936 | |
| | | 1,603,902 | | | 5.50%, 06/01/2041 | | | 1,799,649 | |
| | | 1,350 | | | 6.00%, 07/01/2029 | | | 1,487 | |
| | | 198,050 | | | 6.00%, 10/01/2032 | | | 227,200 | |
| | | 181,532 | | | 6.00%, 11/01/2032 | | | 202,641 | |
| | | 246,325 | | | 6.00%, 12/01/2032 | | | 282,569 | |
| | | 17,867 | | | 6.00%, 11/01/2033 | | | 20,498 | |
| | | 32,519 | | | 6.00%, 01/01/2034 | | | 37,297 | |
| | | 18,911 | | | 6.00%, 02/01/2034 | | | 21,696 | |
| | | 207,770 | | | 6.00%, 08/01/2034 | | | 238,206 | |
| | | 215,296 | | | 6.00%, 09/01/2034 | | | 246,798 | |
| | | 222,494 | | | 6.00%, 01/01/2035 | | | 247,049 | |
| | | 1,525,771 | | | 6.00%, 11/01/2037 | | | 1,750,700 | |
| | | 250 | | | 6.50%, 08/01/2032 | | | 278 | |
| | | 761,165 | | | 6.50%, 07/15/2036 | | | 857,424 | |
| | | 158,078 | | | 6.50%, 12/01/2037 | | | 178,744 | |
| | | 97 | | | 7.50%, 09/01/2029 | | | 104 | |
| | | 674 | | | 7.50%, 11/01/2031 | | | 739 | |
| | | | | | | | | | |
| | | | | | | | | 162,093,169 | |
| | | | | | | | | | |
| | | | | | FNMA - 9.6% | |
| | | 124,580 | | | 0.00%, 03/25/2036(15)(16) | | | 107,221 | |
| | | 1,031,362 | | | 0.00%, 06/25/2036(15)(16) | | | 923,433 | |
| | | 11,894,253 | | | 1.57%, 05/25/2029(3)(5) | | | 1,239,205 | |
| | | 2,149,226 | | | 1.75%, 12/25/2042 | | | 2,107,514 | |
| | | 1,656,527 | | | 2.00%, 09/25/2039 | | | 1,611,927 | |
| | | 1,068,899 | | | 2.00%, 08/25/2043 | | | 1,053,734 | |
| | | 2,922,121 | | | 2.13%, 05/25/2046(3)(5) | | | 149,818 | |
| | | 2,851,874 | | | 2.26%, 04/25/2055(3)(5) | | | 176,699 | |
| | | 2,104,936 | | | 2.28%, 06/25/2055(3)(5) | | | 107,613 | |
| | | 741,039 | | | 2.50%, 06/25/2028(5) | | | 47,123 | |
| | | 209,311 | | | 2.50%, 01/01/2043 | | | 207,331 | |
| | | 4,325,811 | | | 2.50%, 02/01/2043 | | | 4,304,953 | |
| | | 1,754,682 | | | 2.50%, 03/01/2043 | | | 1,746,221 | |
| | | 3,404,654 | | | 2.50%, 05/01/2043 | | | 3,388,270 | |
| | | 2,413,081 | | | 2.50%, 06/01/2043 | | | 2,401,468 | |
| | | 1,394,520 | | | 2.50%, 04/01/2045 | | | 1,387,794 | |
| | | 2,579,898 | | | 2.51%, 08/25/2044(3)(5) | | | 139,791 | |
| | | 1,638,541 | | | 3.00%, 02/25/2027(5) | | | 95,629 | |
| | | 678,885 | | | 3.00%, 09/25/2027(5) | | | 49,574 | |
| | | 4,465,019 | | | 3.00%, 01/25/2028(5) | | | 311,942 | |
| | | 3,366,653 | | | 3.00%, 03/01/2037 | | | 3,456,259 | |
| | | 1,577,207 | | | 3.00%, 05/25/2047 | | | 1,611,178 | |
| | | 5,885,717 | | | 3.00%, 09/25/2047 | | | 6,001,016 | |
| | | 4,737,140 | | | 3.00%, 06/25/2048 | | | 4,851,111 | |
| | | 4,025,916 | | | 3.00%, 10/25/2048 | | | 4,147,898 | |
| | | 4,454,456 | | | 3.00%, 08/25/2049 | | | 4,569,813 | |
| | | 4,349,000 | | | 3.13%, 01/01/2030 | | | 4,565,271 | |
| | | 472,171 | | | 3.24%, 12/01/2026 | | | 498,109 | |
| | | 735,298 | | | 3.50%, 05/25/2027(5) | | | 58,699 | |
| | | 1,154,934 | | | 3.50%, 10/25/2027(5) | | | 94,842 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | FNMA - 9.6% - (continued) | |
| $ | | | 1,322,259 | | | 3.50%, 05/25/2030(5) | | $ | 129,416 | |
| | | 380,209 | | | 3.50%, 08/25/2030(5) | | | 35,534 | |
| | | 821,089 | | | 3.50%, 02/25/2031(5) | | | 59,551 | |
| | | 792,631 | | | 3.50%, 09/25/2035(5) | | | 97,860 | |
| | | 1,723,973 | | | 3.50%, 10/01/2044 | | | 1,823,921 | |
| | | 2,013,594 | | | 3.50%, 02/01/2045 | | | 2,103,426 | |
| | | 3,886,268 | | | 3.50%, 09/01/2046 | | | 4,040,372 | |
| | | 1,911,126 | | | 3.50%, 10/01/2046 | | | 1,987,618 | |
| | | 785,046 | | | 3.50%, 10/25/2046(5) | | | 159,345 | |
| | | 1,277,157 | | | 3.50%, 11/01/2046 | | | 1,351,234 | |
| | | 1,261,152 | | | 3.50%, 09/01/2047 | | | 1,323,863 | |
| | | 4,768,041 | | | 3.50%, 11/25/2047 | | | 5,006,529 | |
| | | 930,825 | | | 3.50%, 12/01/2047 | | | 980,589 | |
| | | 5,582,703 | | | 3.50%, 01/01/2048 | | | 5,796,669 | |
| | | 991,003 | | | 3.50%, 02/01/2048 | | | 1,038,609 | |
| | | 1,366,556 | | | 3.50%, 02/25/2048 | | | 1,413,622 | |
| | | 8,155,944 | | | 3.50%, 09/01/2057 | | | 8,581,123 | |
| | | 4,910,361 | | | 3.50%, 05/01/2058 | | | 5,157,342 | |
| | | 5,223,194 | | | 3.50%, 12/25/2058 | | | 5,465,221 | |
| | | 1,913,338 | | | 3.74%, 06/01/2026 | | | 2,066,554 | |
| | | 1,498,918 | | | 4.00%, 06/01/2025 | | | 1,562,696 | |
| | | 469,029 | | | 4.00%, 10/01/2025 | | | 489,295 | |
| | | 349,531 | | | 4.00%, 04/25/2032(5) | | | 45,152 | |
| | | 3,669,062 | | | 4.00%, 10/01/2040 | | | 3,935,320 | |
| | | 1,646,646 | | | 4.00%, 11/01/2040 | | | 1,766,109 | |
| | | 1,221,055 | | | 4.00%, 12/01/2040 | | | 1,309,523 | |
| | | 595,986 | | | 4.00%, 02/01/2041 | | | 639,227 | |
| | | 1,413,053 | | | 4.00%, 03/01/2041 | | | 1,515,740 | |
| | | 3,444,286 | | | 4.00%, 06/01/2041 | | | 3,668,234 | |
| | | 554,698 | | | 4.00%, 03/25/2042(5) | | | 59,453 | |
| | | 662,897 | | | 4.00%, 08/01/2042 | | | 709,169 | |
| | | 1,217,952 | | | 4.00%, 09/01/2042 | | | 1,303,589 | |
| | | 316,077 | | | 4.00%, 11/25/2042(5) | | | 44,889 | |
| | | 266,299 | | | 4.00%, 03/01/2045 | | | 282,188 | |
| | | 1,105,784 | | | 4.00%, 07/01/2045 | | | 1,188,458 | |
| | | 617,985 | | | 4.00%, 05/01/2046 | | | 652,657 | |
| | | 1,375,272 | | | 4.00%, 06/01/2046 | | | 1,448,737 | |
| | | 1,347,171 | | | 4.00%, 04/01/2047 | | | 1,447,646 | |
| | | 8,558,555 | | | 4.00%, 07/01/2048 | | | 8,922,055 | |
| | | 3,743,347 | | | 4.00%, 09/01/2048 | | | 3,906,081 | |
| | | 4,565,680 | | | 4.00%, 02/01/2049 | | | 4,759,601 | |
| | | 5,394,800 | | | 4.00%, 11/01/2049 | | | 5,633,910 | |
| | | 8,172,500 | | | 4.00%, 12/01/2049 | | | 8,517,931 | |
| | | 382,730 | | | 4.50%, 04/01/2025 | | | 402,578 | |
| | | 545,641 | | | 4.50%, 07/25/2027(5) | | | 43,034 | |
| | | 938,948 | | | 4.50%, 09/01/2035 | | | 1,017,700 | |
| | | 3,580,563 | | | 4.50%, 08/01/2040 | | | 3,897,499 | |
| | | 3,231,659 | | | 4.50%, 10/01/2040 | | | 3,508,965 | |
| | | 1,408,779 | | | 4.50%, 10/01/2041 | | | 1,529,075 | |
| | | 1,283,835 | | | 4.50%, 09/01/2043 | | | 1,393,759 | |
| | | 6,560,657 | | | 4.50%, 01/01/2051 | | | 7,033,583 | |
| | | 1,475 | | | 5.00%, 01/01/2020 | | | 1,522 | |
| | | 392,425 | | | 5.00%, 06/01/2022 | | | 406,295 | |
| | | 187,509 | | | 5.00%, 06/01/2025 | | | 195,017 | |
| | | 477,462 | | | 5.00%, 04/25/2038 | | | 514,388 | |
| | | 6,872,787 | | | 5.00%, 12/01/2048 | | | 7,342,403 | |
| | | 3,400,124 | | | 5.00%, 02/01/2049 | | | 3,633,265 | |
| | | 400,976 | | | 5.00%, 03/01/2049 | | | 428,795 | |
| | | 262,756 | | | 5.47%, 05/25/2042(3)(5) | | | 25,962 | |
| | | 56 | | | 5.50%, 01/01/2020 | | | 56 | |
| | | 1 | | | 5.50%, 03/01/2020 | | | 1 | |
| | | 29,881 | | | 5.50%, 05/01/2020 | | | 29,922 | |
| | | 76,428 | | | 5.50%, 06/01/2022 | | | 78,030 | |
| | | 199,287 | | | 5.50%, 06/01/2033 | | | 222,323 | |
| | | 152,614 | | | 5.50%, 08/01/2033 | | | 167,053 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | FNMA - 9.6% - (continued) | |
| $ | | | 1,001,704 | | | 5.50%, 09/01/2033 | | $ | 1,127,447 | |
| | | 997,088 | | | 5.50%, 12/01/2033 | | | 1,121,513 | |
| | | 676,349 | | | 5.50%, 01/01/2034 | | | 760,647 | |
| | | 3,498,384 | | | 5.50%, 11/01/2035 | | | 3,937,692 | |
| | | 1,006,445 | | | 5.50%, 04/01/2036 | | | 1,132,561 | |
| | | 808,571 | | | 5.50%, 09/01/2036 | | | 910,066 | |
| | | 66,125 | | | 5.50%, 01/01/2037 | | | 73,764 | |
| | | 550,591 | | | 5.50%, 04/25/2037 | | | 621,181 | |
| | | 2,244,370 | | | 5.50%, 06/25/2042(5) | | | 495,375 | |
| | | 2,658,038 | | | 5.50%, 08/25/2044(5) | | | 563,574 | |
| | | 754 | | | 6.00%, 03/01/2022 | | | 759 | |
| | | 360,267 | | | 6.00%, 12/01/2032 | | | 403,412 | |
| | | 341,117 | | | 6.00%, 01/01/2033 | | | 388,640 | |
| | | 70,507 | | | 6.00%, 02/01/2033 | | | 77,649 | |
| | | 445,001 | | | 6.00%, 03/01/2033 | | | 503,456 | |
| | | 884,419 | | | 6.00%, 02/01/2037 | | | 1,012,303 | |
| | | 2,214,983 | | | 6.00%, 01/25/2042(5) | | | 378,421 | |
| | | 1,560,548 | | | 6.00%, 09/25/2047(5) | | | 369,698 | |
| | | 564 | | | 6.50%, 05/01/2031 | | | 626 | |
| | | 959 | | | 6.50%, 09/01/2031 | | | 1,076 | |
| | | 1,314 | | | 6.50%, 07/01/2032 | | | 1,483 | |
| | | 1,169 | | | 7.00%, 07/01/2029 | | | 1,339 | |
| | | 86 | | | 7.00%, 12/01/2030 | | | 88 | |
| | | 611 | | | 7.00%, 02/01/2032 | | | 641 | |
| | | 172 | | | 7.00%, 03/01/2032 | | | 201 | |
| | | 1,758 | | | 7.00%, 09/01/2032 | | | 1,865 | |
| | | 975 | | | 7.50%, 10/01/2022 | | | 1,026 | |
| | | 1,385 | | | 7.50%, 06/01/2027 | | | 1,570 | |
| | | 1,984 | | | 7.50%, 10/01/2029 | | | 2,022 | |
| | | 12,628 | | | 7.50%, 03/01/2030 | | | 14,073 | |
| | | 7,797 | | | 7.50%, 04/01/2030 | | | 8,283 | |
| | | 998 | | | 7.50%, 06/01/2030 | | | 1,144 | |
| | | 1,700 | | | 7.50%, 07/01/2030 | | | 1,921 | |
| | | 439 | | | 7.50%, 08/01/2030 | | | 498 | |
| | | 5,183 | | | 7.50%, 10/01/2030 | | | 5,228 | |
| | | 7,153 | | | 7.50%, 01/01/2031 | | | 7,286 | |
| | | 18,033 | | | 7.50%, 05/01/2031 | | | 20,425 | |
| | | 6,141 | | | 7.50%, 06/01/2031 | | | 6,320 | |
| | | 1,463 | | | 7.50%, 08/01/2031 | | | 1,645 | |
| | | 32,383 | | | 7.50%, 09/01/2031 | | | 33,453 | |
| | | 209 | | | 7.50%, 05/01/2032 | | | 240 | |
| | | | | | | | | | |
| | | | | | | | | 199,699,350 | |
| | | | | | | | | | |
| | | | | | UMBS - 19.5% | |
| | | 44,960,000 | | | 2.50%, 01/16/2035(17) | | | 45,370,963 | |
| | | 19,000,000 | | | 3.00%, 01/16/2035(17) | | | 19,472,773 | |
| | | 277,738,000 | | | 3.00%, 01/14/2050(17) | | | 281,687,087 | |
| | | 8,731,000 | | | 3.50%, 01/14/2050(17) | | | 8,981,675 | |
| | | 6,650,000 | | | 4.00%, 01/14/2050(17) | | | 6,916,520 | |
| | | 37,690,000 | | | 4.50%, 01/14/2050(17) | | | 39,681,975 | |
| | | 4,890,500 | | | 5.00%, 01/14/2050(17) | | | 5,228,250 | |
| | | | | | | | | | |
| | | | | | | | | 407,339,243 | |
| | | | | | | | | | |
| | | | | | GNMA - 16.6% | |
| | | 1,729,260 | | | 1.75%, 09/20/2043 | | | 1,713,150 | |
| | | 1,626,222 | | | 2.00%, 01/20/2042 | | | 1,620,940 | |
| | | 1,574,162 | | | 2.50%, 12/16/2039 | | | 1,598,992 | |
| | | 2,405,879 | | | 2.50%, 07/20/2041 | | | 2,439,750 | |
| | | 821,299 | | | 3.00%, 09/20/2028(5) | | | 61,989 | |
| | | 545,562 | | | 3.00%, 02/16/2043(5) | | | 79,211 | |
| | | 5,518,469 | | | 3.00%, 03/15/2045 | | | 5,682,540 | |
| | | 326,499 | | | 3.00%, 04/15/2045 | | | 336,199 | |
| | | 3,785,095 | | | 3.00%, 07/15/2045 | | | 3,895,365 | |
| | | 80,504 | | | 3.00%, 08/15/2045 | | | 82,748 | |
| | | 1,373,473 | | | 3.00%, 10/20/2047 | | | 1,400,091 | |
| | | 123,950,000 | | | 3.00%, 01/01/2050(17) | | | 127,344,099 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | GNMA - 16.6% - (continued) | |
| $ | | | 335,605 | | | 3.50%, 02/16/2027(5) | | $ | 26,489 | |
| | | 849,924 | | | 3.50%, 03/20/2027(5) | | | 73,309 | |
| | | 779,164 | | | 3.50%, 07/20/2040(5) | | | 63,255 | |
| | | 1,185,653 | | | 3.50%, 02/20/2041(5) | | | 102,778 | |
| | | 2,078,877 | | | 3.50%, 04/20/2042(5) | | | 205,899 | |
| | | 3,214,194 | | | 3.50%, 10/20/2042(5) | | | 584,717 | |
| | | 369,564 | | | 3.50%, 11/15/2042 | | | 394,178 | |
| | | 10,618 | | | 3.50%, 12/15/2042 | | | 11,170 | |
| | | 221,230 | | | 3.50%, 02/15/2043 | | | 232,937 | |
| | | 13,511 | | | 3.50%, 03/15/2043 | | | 14,225 | |
| | | 1,582,294 | | | 3.50%, 04/15/2043 | | | 1,666,040 | |
| | | 4,068,363 | | | 3.50%, 05/15/2043 | | | 4,279,140 | |
| | | 332,435 | | | 3.50%, 05/20/2043(5) | | | 66,444 | |
| | | 1,747,475 | | | 3.50%, 07/20/2043(5) | | | 221,330 | |
| | | 1,984,217 | | | 3.50%, 08/20/2047 | | | 2,061,292 | |
| | | 78,256,000 | | | 3.50%, 01/01/2050(17) | | | 80,649,533 | |
| | | 242,086 | | | 4.00%, 12/16/2026(5) | | | 20,192 | |
| | | 3,478,393 | | | 4.00%, 05/20/2029(5) | | | 300,237 | |
| | | 4,521,477 | | | 4.00%, 07/20/2040 | | | 4,792,663 | |
| | | 5,260,118 | | | 4.00%, 09/20/2040 | | | 5,577,837 | |
| | | 7,861,959 | | | 4.00%, 10/20/2040 | | | 8,332,992 | |
| | | 1,323,680 | | | 4.00%, 12/20/2040 | | | 1,427,393 | |
| | | 389,848 | | | 4.00%, 05/16/2042(5) | | | 55,903 | |
| | | 611,019 | | | 4.00%, 03/20/2043(5) | | | 116,295 | |
| | | 275,263 | | | 4.00%, 01/20/2044(5) | | | 59,005 | |
| | | 2,540,314 | | | 4.00%, 01/16/2046(5) | | | 538,269 | |
| | | 2,147,444 | | | 4.00%, 03/20/2047(5) | | | 337,438 | |
| | | 3,377,958 | | | 4.00%, 07/20/2047(5) | | | 538,306 | |
| | | 1,032,395 | | | 4.00%, 11/20/2047 | | | 1,089,331 | |
| | | 4,418,563 | | | 4.00%, 03/20/2048 | | | 4,613,932 | |
| | | 48,881,000 | | | 4.00%, 01/01/2050(17) | | | 50,591,836 | |
| | | 239,840 | | | 4.50%, 11/15/2039 | | | 260,952 | |
| | | 1,716,017 | | | 4.50%, 05/15/2040 | | | 1,876,830 | |
| | | 5,152,437 | | | 4.50%, 05/20/2040 | | | 5,564,821 | |
| | | 213,480 | | | 4.50%, 07/15/2041 | | | 230,314 | |
| | | 1,019,962 | | | 4.50%, 04/20/2045(5) | | | 221,080 | |
| | | 453,459 | | | 4.50%, 01/20/2046 | | | 483,981 | |
| | | 80,000 | | | 4.50%, 01/01/2050(17) | | | 83,638 | |
| | | 2,526,009 | | | 5.00%, 02/16/2040(5) | | | 519,834 | |
| | | 555,120 | | | 5.00%, 05/20/2040 | | | 613,312 | |
| | | 1,379,421 | | | 5.00%, 06/15/2041 | | | 1,535,718 | |
| | | 1,569,210 | | | 5.00%, 10/16/2041(5) | | | 275,874 | |
| | | 2,113,786 | | | 5.00%, 03/15/2044 | | | 2,351,785 | |
| | | 602,076 | | | 5.00%, 01/16/2047(5) | | | 130,330 | |
| | | 4,400,000 | | | 5.00%, 01/01/2050(17) | | | 4,697,859 | |
| | | 458,277 | | | 5.50%, 03/15/2033 | | | 504,586 | |
| | | 649,198 | | | 5.50%, 04/15/2033 | | | 726,318 | |
| | | 749,683 | | | 5.50%, 05/15/2033 | | | 833,542 | |
| | | 1,018,679 | | | 5.50%, 10/20/2034 | | | 1,146,272 | |
| | | 2,126,294 | | | 5.50%, 03/20/2039(5) | | | 426,106 | |
| | | 1,843,081 | | | 5.50%, 02/16/2047(5) | | | 436,485 | |
| | | 1,113,388 | | | 5.50%, 02/20/2047(5) | | | 214,749 | |
| | | 1,301 | | | 6.00%, 12/15/2023 | | | 1,432 | |
| | | 990 | | | 6.00%, 01/15/2029 | | | 1,090 | |
| | | 1,077 | | | 6.00%, 04/15/2029 | | | 1,214 | |
| | | 42,561 | | | 6.00%, 12/15/2031 | | | 47,355 | |
| | | 809 | | | 6.00%, 10/15/2032 | | | 924 | |
| | | 18,173 | | | 6.00%, 06/15/2033 | | | 20,735 | |
| | | 1,167 | | | 6.00%, 03/15/2034 | | | 1,289 | |
| | | 48,158 | | | 6.00%, 08/15/2034 | | | 54,984 | |
| | | 74,116 | | | 6.00%, 09/15/2034 | | | 82,347 | |
| | | 39,601 | | | 6.00%, 02/15/2035 | | | 45,220 | |
| | | 217,237 | | | 6.00%, 12/15/2035 | | | 239,727 | |
| | | 24,810 | | | 6.00%, 02/15/2036 | | | 27,315 | |
| | | 168,915 | | | 6.00%, 03/15/2036 | | | 193,125 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | GNMA - 16.6% - (continued) | |
| $ | | | 16,999 | | | 6.00%, 04/15/2036 | | $ | 18,715 | |
| | | 100,794 | | | 6.00%, 05/15/2036 | | | 113,690 | |
| | | 191,464 | | | 6.00%, 06/15/2036 | | | 216,585 | |
| | | 63,338 | | | 6.00%, 07/15/2036 | | | 70,031 | |
| | | 18,940 | | | 6.00%, 08/15/2036 | | | 20,888 | |
| | | 154,504 | | | 6.00%, 02/15/2037 | | | 176,398 | |
| | | 587 | | | 6.00%, 05/15/2037 | | | 667 | |
| | | 324,556 | | | 6.00%, 06/15/2037 | | | 370,292 | |
| | | 249,560 | | | 6.00%, 07/15/2037 | | | 285,264 | |
| | | 64,233 | | | 6.00%, 08/15/2037 | | | 73,410 | |
| | | 86,411 | | | 6.00%, 10/15/2037 | | | 98,856 | |
| | | 47,207 | | | 6.00%, 11/15/2037 | | | 52,841 | |
| | | 78,323 | | | 6.00%, 12/15/2037 | | | 89,542 | |
| | | 154,280 | | | 6.00%, 01/15/2038 | | | 177,757 | |
| | | 10,705 | | | 6.00%, 02/15/2038 | | | 11,931 | |
| | | 24,818 | | | 6.00%, 05/15/2038 | | | 28,352 | |
| | | 7,470 | | | 6.00%, 06/15/2038 | | | 8,446 | |
| | | 28,120 | | | 6.00%, 08/15/2038 | | | 31,730 | |
| | | 91,476 | | | 6.00%, 09/15/2038 | | | 103,015 | |
| | | 107,938 | | | 6.00%, 10/15/2038 | | | 123,591 | |
| | | 228,595 | | | 6.00%, 11/15/2038 | | | 261,669 | |
| | | 67,777 | | | 6.00%, 12/15/2038 | | | 77,015 | |
| | | 1,399 | | | 6.00%, 01/15/2039 | | | 1,585 | |
| | | 35,282 | | | 6.00%, 08/15/2039 | | | 39,258 | |
| | | 58,310 | | | 6.00%, 11/15/2039 | | | 65,928 | |
| | | 13,580 | | | 6.00%, 02/15/2040 | | | 14,951 | |
| | | 763,916 | | | 6.00%, 06/15/2040 | | | 874,422 | |
| | | 140,385 | | | 6.00%, 07/15/2040 | | | 160,559 | |
| | | 1,681,444 | | | 6.00%, 09/20/2040(5) | | | 361,930 | |
| | | 791,538 | | | 6.00%, 06/15/2041 | | | 904,668 | |
| | | 1,637,838 | | | 6.00%, 02/20/2046(5) | | | 400,259 | |
| | | 21,183 | | | 6.50%, 06/15/2028 | | | 23,367 | |
| | | 455 | | | 6.50%, 07/15/2028 | | | 502 | |
| | | 1,768 | | | 6.50%, 08/15/2028 | | | 1,950 | |
| | | 14,371 | | | 6.50%, 09/15/2028 | | | 15,852 | |
| | | 898 | | | 6.50%, 10/15/2028 | | | 991 | |
| | | 2,791 | | | 6.50%, 11/15/2028 | | | 3,079 | |
| | | 4,572 | | | 6.50%, 12/15/2028 | | | 5,043 | |
| | | 5,494 | | | 6.50%, 01/15/2029 | | | 6,061 | |
| | | 20,413 | | | 6.50%, 02/15/2029 | | | 22,517 | |
| | | 149,204 | | | 6.50%, 03/15/2029 | | | 164,591 | |
| | | 30,311 | | | 6.50%, 04/15/2029 | | | 33,437 | |
| | | 19,307 | | | 6.50%, 05/15/2029 | | | 21,298 | |
| | | 153,150 | | | 6.50%, 06/15/2029 | | | 168,944 | |
| | | 6,162 | | | 6.50%, 07/15/2029 | | | 6,797 | |
| | | 201 | | | 6.50%, 03/15/2031 | | | 221 | |
| | | 181,707 | | | 6.50%, 04/15/2031 | | | 200,444 | |
| | | 41,940 | | | 6.50%, 05/15/2031 | | | 47,592 | |
| | | 7,456 | | | 6.50%, 06/15/2031 | | | 8,353 | |
| | | 166,729 | | | 6.50%, 07/15/2031 | | | 184,303 | |
| | | 89,210 | | | 6.50%, 08/15/2031 | | | 98,409 | |
| | | 122,823 | | | 6.50%, 09/15/2031 | | | 135,510 | |
| | | 143,160 | | | 6.50%, 10/15/2031 | | | 157,923 | |
| | | 276,551 | | | 6.50%, 11/15/2031 | | | 305,327 | |
| | | 57,514 | | | 6.50%, 12/15/2031 | | | 63,445 | |
| | | 195,967 | | | 6.50%, 01/15/2032 | | | 217,104 | |
| | | 49,916 | | | 6.50%, 02/15/2032 | | | 56,713 | |
| | | 39,150 | | | 6.50%, 03/15/2032 | | | 43,187 | |
| | | 177,954 | | | 6.50%, 04/15/2032 | | | 200,295 | |
| | | 666 | | | 6.50%, 05/15/2032 | | | 735 | |
| | | 34,692 | | | 6.50%, 06/15/2032 | | | 38,269 | |
| | | 2,452 | | | 7.00%, 06/20/2030 | | | 2,525 | |
| | | 588 | | | 7.00%, 02/15/2031 | | | 647 | |
| | | 180 | | | 7.00%, 06/15/2031 | | | 191 | |
| | | 146 | | | 7.00%, 08/15/2031 | | | 164 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 53.5% - (continued) | |
| | | | | | GNMA - 16.6% - (continued) | |
| $ | | | 544 | | | 8.50%, 11/15/2024 | | $ | 545 | |
| | | | | | | | | | |
| | | | | | | | | 346,621,158 | |
| | | | | | | | | | |
| | |
| | | Total U.S. Government Agencies
(cost $1,103,579,249) | | $ | 1,115,752,920 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 13.2% | |
| | | | | | U.S. Treasury Securities - 13.2% | |
| | | | | | U.S. Treasury Bonds - 8.6% | |
| $ | | | 5,119,000 | | | 2.50%, 02/15/2046 | | $ | 5,239,177 | |
| | | 13,709,000 | | | 2.88%, 11/15/2046(18) | | | 15,074,545 | |
| | | 1,095,000 | | | 3.00%, 05/15/2045 | | | 1,225,245 | |
| | | 6,430,000 | | | 3.00%, 02/15/2048(19) | | | 7,246,811 | |
| | | 15,000,000 | | | 3.00%, 08/15/2048 | | | 16,936,523 | |
| | | 5,365,000 | | | 3.00%, 02/15/2049 | | | 6,068,318 | |
| | | 8,770,000 | | | 3.13%, 02/15/2043 | | | 9,966,625 | |
| | | 47,195,000 | | | 3.13%, 08/15/2044(18)(19) | | | 53,804,144 | |
| | | 8,240,000 | | | 3.13%, 05/15/2048 | | | 9,512,050 | |
| | | 42,820,000 | | | 3.38%, 05/15/2044(20) | | | 50,781,844 | |
| | | 2,015,000 | | | 3.75%, 11/15/2043 | | | 2,524,968 | |
| | | | | | | | | | |
| | | | | | | | | 178,380,250 | |
| | | | | | | | | | |
| | | | | | U.S. Treasury Notes - 4.6% | |
| | | 10,950,201 | | | 0.25%, 07/15/2029(21) | | | 11,056,460 | |
| | | 27,419,077 | | | 0.38%, 07/15/2027(21) | | | 27,968,337 | |
| | | 16,244,550 | | | 0.63%, 01/15/2026(21) | | | 16,742,337 | |
| | | 11,001,292 | | | 0.88%, 01/15/2029(21) | | | 11,682,240 | |
| | | 3,650,753 | | | 1.00%, 02/15/2049(21) | | | 4,056,522 | |
| | | 23,310,000 | | | 2.63%, 02/15/2029 | | | 24,721,348 | |
| | | | | | | | | | |
| | | | | | | | | 96,227,244 | |
| | | | | | | | | | |
| | |
| | | Total U.S. Government Securities
(cost $262,143,129) | | $ | 274,607,494 | |
| | | | | | | | | | |
|
| COMMON STOCKS - 0.0% | |
| | | | | | Energy - 0.0% | |
| | | 64,657 | | | Ascent Resources - Marcellus LLC Class A*(22)(23) | | $ | 80,821 | |
| | | 30,559 | | | Philadelphia Energy Solutions Class A | | | 3,820 | |
| | | 14,557 | | | Templar Energy LLC Class A* | | | 146 | |
| | | | | | | | | | |
| | | | | | | | | 84,787 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Common Stocks
(cost $593,434) | | $ | 84,787 | |
| | | | | | | | | | |
|
| PREFERRED STOCKS - 0.1% | |
| | | | | | Banks - 0.1% | |
| | | 2,242 | | | U.S. Bancorp Series A, 3.50%(2)(9) | | $ | 1,972,960 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Preferred Stocks
(cost $1,591,820) | | $ | 1,972,960 | |
| | | | | | | | | | |
|
| WARRANTS - 0.0% | |
| | | | | | Energy - 0.0% | |
| | | 16,740 | | | Ascent Resources - Marcellus LLC Expires 3/30/23*(22)(23) | | $ | 167 | |
| | | | | | | | | | |
| | |
| | | Total Warrants
(cost $1,339) | | $ | 167 | |
| | | | | | | | | | |
| | |
| | | Total Long-Term Investments
(cost $2,636,265,585) | | $ | 2,688,267,356 | |
| | | | | | | | | | |
| SHORT-TERM INVESTMENTS - 3.7% | |
| | | | | | Commercial Paper - 0.5% | |
| | | | | | Bank of China Ltd. | |
| $ | | | 750,000 | | | 2.13%, 02/28/2020(10) | | $ | 747,426 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 3.7% - (continued) | |
| | | | | | Commercial Paper - 0.5% - (continued) | |
| $ | | | 250,000 | | | 2.19%, 02/28/2020(10) | | $ | 249,118 | |
| CAD | | | 70,000 | | | Bank of Nova Scotia 1.90%, 02/07/2020(10) | | | 53,800 | |
| | | 250,000 | | | Caterpillar Financial Services Corp. 1.73%, 01/13/2020(10) | | | 192,404 | |
| $ | | | 1,000,000 | | | Enel Finance America 2.01%, 01/23/2020(10) | | | 998,735 | |
| | | 1,000,000 | | | General Electric Co. 1.99%, 02/13/2020(10) | | | 997,611 | |
| | | | | | General Motors Financial Co., Inc. | |
| | | 250,000 | | | 1.79%, 01/06/2020(10) | | | 249,926 | |
| | | 1,000,000 | | | 2.13%, 01/21/2020(10) | | | 998,778 | |
| | | 510,000 | | | Intesa Funding LLC_ 2.28%, 06/08/2020(10) | | | 504,939 | |
| | | 1,000,000 | | | Korea Development Bank 1.92%, 05/07/2020(10) | | | 993,518 | |
| CAD | | | 1,660,000 | | | Royal Bank of Canada 1.77%, 02/04/2020(10) | | | 1,276,181 | |
| | | 2,000,000 | | | Suncor Energy 1.83%, 01/31/2020(10) | | | 1,537,787 | |
| | | 665,000 | | | Toronto-Dominion Bank 1.58%, 01/07/2020(10) | | | 511,954 | |
| | | | | | TransCanada PipeLines Ltd. | | | | |
| $ | | | 1,000,000 | | | 2.01%, 02/18/2020(10) | | | 997,307 | |
| | | 635,000 | | | 2.08%, 03/10/2020(10) | | | 632,361 | |
| | | | | | | | | | |
| | | | | | | | | 10,941,845 | |
| | | | | | | | | | |
| | | | | | Foreign Government Obligations - 0.1% | |
| | | | | | Provincial - 0.1% | | | |
| CAD | | | 2,200,000 | | | Newfoundland T-Bill 1.74%, 01/09/2020(10) | | | 1,693,541 | |
| | | | | | | | | | |
| | | | | | Other Investment Pools & Funds - 2.7% | | | |
| | | 57,349,753 | | | Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 1.52%(24) | | | 57,349,753 | |
| | | | | | | | | | |
| | | | | | Securities Lending Collateral - 0.4% | | | |
| | | 385,225 | | | Citibank NA DDCA, 1.54%, 1/2/2020(24) | | | 385,225 | |
| | | 1,867,979 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(24) | | | 1,867,979 | |
| | | 1,721,459 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(24) | | | 1,721,459 | |
| | | 860,729 | | | JPMorgan Prime Money Market Fund, 1.69%(24) | | | 860,729 | |
| | | 2,295,278 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(24) | | | 2,295,278 | |
| | | 573,820 | | | State Street Institutional Liquid Reserves Fund, 1.70%(24) | | | 573,820 | |
| | | | | | | | | | |
| | | | | | | | | 7,704,490 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Short-Term Investments
(cost $77,602,282) | | $ | 77,689,629 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments Excluding Purchased Options
(cost $2,713,867,867) | | | 132.5 | % | | $ | 2,765,956,985 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Purchased Options
(cost $2,813,962) | | | 0.1 | % | | $ | 2,626,843 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments
(cost $2,716,681,829) | | | 132.6 | % | | $ | 2,768,583,828 | |
| | | | | | Other Assets and Liabilities | | | (32.6 | )% | | | (681,063,684 | ) |
| | | | | | | | | | | | | | |
| | | | | | Total Net Assets | | | 100.0 | % | | $ | 2,087,520,144 | |
| | | | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $550,716,188, representing 26.4% of net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2019. Base lending rates may be subject to a floor or cap. |
| (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) | Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (5) | Securities disclosed are interest-only strips. |
| (6) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (7) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2019. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (8) | Security is exempt from registration under Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $41,102,014, representing 2.0% of net assets. |
| (9) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (10) | The rate shown represents current yield to maturity. |
| (11) | 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. Base lending rates may be subject to a floor or cap. Unless otherwise noted, the interest rate disclosed for these securities represents the rate in effect as of December 31, 2019. |
| (12) | Represents an unsettled loan commitment. The coupon rate will be determined at time of settlement. |
| (13) | This security, or a portion of this security, has unfunded loan commitments. As of December 31, 2019, the aggregate value of the unfunded commitment was $78,838, which rounds to 0.0% of total net assets. |
| (14) | Non-income producing. For long-term debt securities, items identified are in default as to payment of interest and/or principal. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| (15) | Securities disclosed are principal-only strips. |
| (16) | Security is a zero-coupon bond. |
| (17) | Represents or includes a TBA transaction. |
| (18) | All, or a portion of the security, was pledged as collateral in connection with OTC swap contracts. As of December 31, 2019, the market value of securities pledged was $3,355,824. |
| (19) | All, or a portion of the security, was pledged as collateral in connection with futures contracts. As of December 31, 2019, the market value of securities pledged was $2,581,660. |
| (20) | All, or a portion of the security, was pledged as collateral in connection with centrally cleared swap contracts. As of December 31, 2019, the market value of securities pledged was $11,385,000. |
| (21) | The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (22) | Investment valued using significant unobservable inputs. |
| (23) | 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, 2019, the aggregate fair value of these securities was $80,988, 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. |
| (24) | Current yield as of period end. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Swaption Contracts Outstanding at December 31, 2019 | |
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 07/20/48* | | CITI | | 2.91% | | | Pay | | | | 07/18/28 | | | USD | | | 3,200,000 | | | | 3,200,000 | | | $ | 530,560 | | | $ | 374,080 | | | $ | 156,480 | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57* | | BCLY | | 2.45% | | | Pay | | | | 08/02/27 | | | USD | | | 1,500,000 | | | | 1,500,000 | | | | 244,800 | | | | 216,283 | | | | 28,517 | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57* | | JPM | | 2.45% | | | Receive | | | | 08/02/27 | | | USD | | | 3,000,000 | | | | 3,000,000 | | | | 489,600 | | | | 308,100 | | | | 181,500 | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 09/24/59* | | DEUT | | 1.85% | | | Pay | | | | 09/20/29 | | | USD | | | 1,075,000 | | | | 1,075,000 | | | | 123,625 | | | | 175,763 | | | | (52,138 | ) |
| | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | |
Total Calls | | | | | | | | | | | | | | | | | | | | $ | 1,388,585 | | | $ | 1,074,226 | | | $ | 314,359 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Puts | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 07/20/48* | | CITI | | 2.91% | | | Receive | | | | 07/18/28 | | | USD | | | 3,200,000 | | | | 3,200,000 | | | $ | 178,752 | | | $ | 374,080 | | | $ | (195,328 | ) |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57* | | BOA | | 1.70% | | | Pay | | | | 11/23/20 | | | USD | | | 12,045,000 | | | | 12,045,000 | | | | 417,239 | | | | 301,727 | | | | 115,512 | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57* | | BCLY | | 2.45% | | | Receive | | | | 08/02/27 | | | USD | | | 1,500,000 | | | | 1,500,000 | | | | 149,625 | | | | 295,367 | | | | (145,742 | ) |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/04/57* | | JPM | | 2.45% | | | Pay | | | | 08/02/27 | | | USD | | | 3,000,000 | | | | 3,000,000 | | | | 299,250 | | | | 592,800 | | | | (293,550 | ) |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 09/24/59* | | DEUT | | 1.85% | | | Receive | | | | 09/20/29 | | | USD | | | 1,075,000 | | | | 1,075,000 | | | | 193,392 | | | | 175,762 | | | | 17,630 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Puts | | | | | | | | | | | | | | | | | | | | $ | 1,238,258 | | | $ | 1,739,736 | | | $ | (501,478 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total purchased swaption contracts | | | | | | | | | | | | | | | | | | | | $ | 2,626,843 | | | $ | 2,813,962 | | | $ | (187,119 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | Swaptions with forward premiums. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2019 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
U.S. Treasury 2-Year Note Future | | | 405 | | | | 03/31/2020 | | | $ | 87,277,500 | | | $ | (32,524 | ) |
U.S. Treasury 5-Year Note Future | | | 1,027 | | | | 03/31/2020 | | | | 121,811,828 | | | | (428,248 | ) |
U.S. Treasury 10-Year Note Future | | | 480 | | | | 03/20/2020 | | | | 61,642,500 | | | | (329,975 | ) |
U.S. Treasury Ultra Bond Future | | | 322 | | | | 03/20/2020 | | | | 58,493,312 | | | | (1,932,082 | ) |
| | | | | | | | | | | | | | | | |
Total | | | $ | (2,722,829 | ) |
| | | | | | | | | | | | | | | | |
| Short position contracts: | |
Euro BUXL 30-Year Bond Future | | | 11 | | | | 03/06/2020 | | | $ | 2,447,751 | | | $ | 60,696 | |
U.S. Treasury 10-Year Ultra Future | | | 308 | | | | 03/20/2020 | | | | 43,336,563 | | | | 521,893 | |
U.S. Treasury Long Bond Future | | | 258 | | | | 03/20/2020 | | | | 40,223,812 | | | | 802,070 | |
| | | | | | | | | | | | | | | | |
Total | | | $ | 1,384,659 | |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | (1,338,170 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TBA Sale Commitments Outstanding at December 31, 2019 | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
UMBS, 3.50% | | $ | 39,025,000 | | | | 1/14/2050 | | | $ | (40,145,444 | ) | | $ | (80,248 | ) |
UMBS, 4.00% | | | 3,200,000 | | | | 1/16/2035 | | | | (3,337,750 | ) | | | (5,750 | ) |
UMBS, 4.00% | | | 10,202,500 | | | | 1/14/2050 | | | | (10,611,397 | ) | | | (24,708 | ) |
UMBS, 5.50% | | | 13,400,000 | | | | 1/14/2050 | | | | (14,430,125 | ) | | | 31,406 | |
UMBS, 6.00% | | | 3,300,000 | | | | 1/14/2050 | | | | (3,636,188 | ) | | | (2,579 | ) |
| | | | | | | | | | | | | | | | |
Total (proceeds receivable $72,079,025) | | | | | | | | | | $ | (72,160,904 | ) | | $ | (81,879 | ) |
| | | | | | | | | | | | | | | | |
At December 31, 2019, the aggregate market value of TBA Sale Commitments represents (3.5)% of total net assets.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2019 | | | | |
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: | | | | | | | | | | | | | | | | | | | | | |
ABX.HE.AAA.07 | | GSC | | | USD | | | | 1,377,641 | | | (0.09%) | | | 08/25/37 | | | | Monthly | | | $ | 290,992 | | | $ | — | | | $ | 32,698 | | | $ | (258,294 | ) |
ABX.HE.AAA.07 | | CSI | | | USD | | | | 3,348,775 | | | (0.09%) | | | 08/25/37 | | | | Monthly | | | | 813,319 | | | | — | | | | 79,483 | | | | (733,836 | ) |
ABX.HE.PENAAA.06 | | MSC | | | USD | | | | 572,270 | | | (0.11%) | | | 05/25/46 | | | | Monthly | | | | 62,193 | | | | — | | | | 34,325 | | | | (27,868 | ) |
ABX.HE.PENAAA.06 | | JPM | | | USD | | | | 1,306,448 | | | (0.11%) | | | 05/25/46 | | | | Monthly | | | | 141,644 | | | | — | | | | 78,232 | | | | (63,412 | ) |
ABX.HE.PENAAA.06 | | GSC | | | USD | | | | 544,140 | | | (0.11%) | | | 05/25/46 | | | | Monthly | | | | 133,950 | | | | — | | | | 32,638 | | | | (101,312 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | $ | 1,442,098 | | | $ | — | | | $ | 257,376 | | | $ | (1,184,722 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sell protection: | | | | | | | | | | | | | | | | | | | | | |
ABX.HE.AAA.07 | | MSC | | | USD | | | | 1,377,640 | | | 0.09% | | | 08/25/37 | | | | Monthly | | | $ | 12,160 | | | $ | — | | | $ | (32,695 | ) | | $ | (44,855 | ) |
ABX.HE.AAA.07 | | MSC | | | USD | | | | 3,348,773 | | | 0.09% | | | 08/25/37 | | | | Monthly | | | | 29,746 | | | | — | | | | (79,474 | ) | | | (109,220 | ) |
ABX.HE.PENAAA.06 | | BCLY | | | USD | | | | 2,414,976 | | | 0.11% | | | 05/25/46 | | | | Monthly | | | | — | | | | (60,960 | ) | | | (144,852 | ) | | | (83,892 | ) |
CMBX.NA.AAA.12 | | MSC | | | USD | | | | 7,260,000 | | | 0.50% | | | 08/17/61 | | | | Monthly | | | | 1,358 | | | | — | | | | 5,642 | | | | 4,284 | |
CMBX.NA.BB.6 | | CSI | | | USD | | | | 3,270,000 | | | 5.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (647,099 | ) | | | (367,120 | ) | | | 279,979 | |
CMBX.NA.BB.6 | | CSI | | | USD | | | | 2,800,000 | | | 5.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (484,652 | ) | | | (314,354 | ) | | | 170,298 | |
CMBX.NA.BB.6 | | CSI | | | USD | | | | 1,566,000 | | | 5.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (271,059 | ) | | | (175,814 | ) | | | 95,245 | |
CMBX.NA.BB.6 | | GSC | | | USD | | | | 2,855,000 | | | 5.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (293,826 | ) | | | (320,528 | ) | | | (26,702 | ) |
CMBX.NA.BB.8 | | MSC | | | USD | | | | 5,083,000 | | | 5.00% | | | 10/17/57 | | | | Monthly | | | | — | | | | (1,327,654 | ) | | | (575,413 | ) | | | 752,241 | |
CMBX.NA.BB.8 | | GSC | | | USD | | | | 3,445,000 | | | 5.00% | | | 10/17/57 | | | | Monthly | | | | — | | | | (805,632 | ) | | | (389,985 | ) | | | 415,647 | |
CMBX.NA.BB.8 | | CSI | | | USD | | | | 2,507,000 | | | 5.00% | | | 10/17/57 | | | | Monthly | | | | — | | | | (654,772 | ) | | | (283,801 | ) | | | 370,971 | |
CMBX.NA.BB.8 | | DEUT | | | USD | | | | 1,455,000 | | | 5.00% | | | 10/17/57 | | | | Monthly | | | | — | | | | (341,770 | ) | | | (164,621 | ) | | | 177,149 | |
CMBX.NA.BB.8 | | GSC | | | USD | | | | 240,000 | | | 5.00% | | | 10/17/57 | | | | Monthly | | | | — | | | | (25,994 | ) | | | (27,169 | ) | | | (1,175 | ) |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2019 – (continued) | | | | |
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 – (continued): | | | | | | | | | | | | | | | | | | | | | |
| Sell protection – (continued): | | | | | | | | | | | | | | | | | | | | | |
CMBX.NA.BBB-.6 | | MSC | | | USD | | | | 465,000 | | | 3.00% | | | 05/11/63 | | | | Monthly | | | $ | — | | | $ | (38,544 | ) | | $ | (23,488 | ) | | $ | 15,056 | |
CMBX.NA.BBB-.6 | | MSC | | | USD | | | | 4,245,000 | | | 3.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (605,968 | ) | | | (214,415 | ) | | | 391,553 | |
CMBX.NA.BBB-.6 | | GSC | | | USD | | | | 2,725,000 | | | 3.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (292,029 | ) | | | (137,867 | ) | | | 154,162 | |
CMBX.NA.BBB-.6 | | CSI | | | USD | | | | 920,000 | | | 3.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (123,887 | ) | | | (46,469 | ) | | | 77,418 | |
CMBX.NA.BBB-.6 | | DEUT | | | USD | | | | 485,000 | | | 3.00% | | | 05/11/63 | | | | Monthly | | | | — | | | | (69,966 | ) | | | (24,498 | ) | | | 45,468 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | $ | 43,264 | | | $ | (6,043,812 | ) | | $ | (3,316,921 | ) | | $ | 2,683,627 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total traded indices | | | | | | | $ | 1,485,362 | | | $ | (6,043,812 | ) | | $ | (3,059,545 | ) | | $ | 1,498,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC contracts | | | | | | | | | | | | | | | | $ | 1,485,362 | | | $ | (6,043,812 | ) | | $ | (3,059,545 | ) | | $ | 1,498,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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, 2019 | |
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.NA.HY.33.V2 | | | USD | | | | 2,465,100 | | | | (5.00 | %) | | | 12/20/24 | | | | Quarterly | | | $ | (176,490 | ) | | $ | (241,651 | ) | | $ | (65,161 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Credit default swaps on indices: | | | | | | | | | | | | | | | | | | | | | | | | |
| Sell protection: | | | | | | | | | | | | | | | | | | | | | | | | |
CDX.EM.32.V1 | | | USD | | | | 7,955,000 | | | | 1.00 | % | | | 12/20/24 | | | | Quarterly | | | | $ (406,519 | ) | | | $ (264,727 | ) | | $ | 141,792 | |
CDX.NA.IG.33.V1 | | | USD | | | | 20,175,000 | | | | 1.00 | % | | | 12/20/24 | | | | Quarterly | | | | 524,917 | | | | 529,911 | | | | 4,994 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 118,398 | | | $ | 265,184 | | | $ | 146,786 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | (58,092 | ) | | $ | 23,533 | | | $ | 81,625 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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, 2019 | |
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) | |
12 Mo. Federal Funds Rate | | 1.63% Fixed | | USD | | | 13,700,000 | | | | 11/14/26 | | | Annual | | $ | — | | | $ | — | | | $ | (58,486 | ) | | $ | (58,486 | ) |
3 Mo. USD LIBOR | | 2.00% Fixed | | USD | | | 17,550,000 | | | | 03/21/23 | | | Semi-Annual | | | 53,251 | | | | — | | | | (262,457 | ) | | | (315,708 | ) |
3 Mo. USD LIBOR | | 2.36% Fixed | | USD | | | 26,540,000 | | | | 04/09/24 | | | Semi-Annual | | | — | | | | — | | | | (728,025 | ) | | | (728,025 | ) |
3 Mo. USD LIBOR | | 2.36% Fixed | | USD | | | 27,595,000 | | | | 04/09/24 | | | Semi-Annual | | | — | | | | — | | | | (761,169 | ) | | | (761,169 | ) |
3 Mo. USD LIBOR | | 2.36% Fixed | | USD | | | 28,350,000 | | | | 04/09/24 | | | Semi-Annual | | | — | | | | — | | | | (778,909 | ) | | | (778,909 | ) |
3 Mo. USD LIBOR | | 2.36% Fixed | | USD | | | 37,805,000 | | | | 04/09/24 | | | Semi-Annual | | | — | | | | — | | | | (1,035,392 | ) | | | (1,035,392 | ) |
3 Mo. USD LIBOR | | 1.73% Fixed | | USD | | | 11,710,000 | | | | 10/29/29 | | | Semi-Annual | | | — | | | | — | | | | 177,688 | | | | 177,688 | |
3 Mo. USD LIBOR | | 1.72% Fixed | | USD | | | 7,045,000 | | | | 10/29/29 | | | Semi-Annual | | | — | | | | — | | | | 110,808 | | | | 110,808 | |
3 Mo. USD LIBOR | | 1.72% Fixed | | USD | | | 3,630,000 | | | | 10/29/29 | | | Semi-Annual | | | — | | | | — | | | | 58,773 | | | | 58,773 | |
3 Mo. USD LIBOR | | 1.77% Fixed | | USD | | | 5,855,000 | | | | 10/30/29 | | | Semi-Annual | | | — | | | | — | | | | 68,416 | | | | 68,416 | |
3 Mo. USD LIBOR | | 1.77% Fixed | | USD | | | 5,855,000 | | | | 10/30/29 | | | Semi-Annual | | | — | | | | — | | | | 65,980 | | | | 65,980 | |
3 Mo. USD LIBOR | | 1.77% Fixed | | USD | | | 5,305,000 | | | | 10/30/29 | | | Semi-Annual | | | — | | | | — | | | | 61,498 | | | | 61,498 | |
3 Mo. USD LIBOR | | 1.77% Fixed | | USD | | | 5,370,000 | | | | 10/30/29 | | | Semi-Annual | | | — | | | | — | | | | 60,018 | | | | 60,018 | |
3 Mo. USD LIBOR | | 2.75% Fixed | | USD | | | 22,395,000 | | | | 12/20/47 | | | Semi-Annual | | | — | | | | (468,784 | ) | | | (3,233,740 | ) | | | (2,764,956 | ) |
3 Mo. USD LIBOR | | 2.88% Fixed | | USD | | | 1,350,000 | | | | 12/31/48 | | | Semi-Annual | | | — | | | | — | | | | (253,158 | ) | | | (253,158 | ) |
3 Mo. USD LIBOR | | 2.87% Fixed | | USD | | | 675,000 | | | | 01/28/49 | | | Semi-Annual | | | — | | | | — | | | | (124,722 | ) | | | (124,722 | ) |
3 Mo. USD LIBOR | | 2.39% Fixed | | USD | | | 1,625,000 | | | | 05/31/49 | | | Semi-Annual | | | — | | | | — | | | | (109,530 | ) | | | (109,530 | ) |
3 Mo. USD LIBOR | | 1.79% Fixed | | USD | | | 450,000 | | | | 09/24/49 | | | Semi-Annual | | | — | | | | — | | | | 29,351 | | | | 29,351 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | $ | 53,251 | | | $ | (468,784 | ) | | $ | (6,713,056 | ) | | $ | (6,297,523 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2019 | |
Amount and Description of
Currency to be Purchased | | | Amount and Description of
Currency to be Sold | | | Counterparty | | | Settlement
Date | | | Appreciation | | | (Depreciation) | |
| | 52,200,000 | | | | EGP | | | | 3,001,725 | | | | USD | | | | GSC | | | | 03/18/20 | | | $ | 208,054 | | | $ | — | |
| | 15,682,127 | | | | USD | | | | 22,854,000 | | | | AUD | | | | SSG | | | | 01/31/20 | | | | — | | | | (368,236 | ) |
| | 500,405 | | | | USD | | | | 665,000 | | | | CAD | | | | SSG | | | | 01/07/20 | | | | — | | | | (11,732 | ) |
| | 1,668,756 | | | | USD | | | | 2,200,000 | | | | CAD | | | | SSG | | | | 01/09/20 | | | | — | | | | (25,549 | ) |
| | 188,936 | | | | USD | | | | 250,000 | | | | CAD | | | | TDB | | | | 01/13/20 | | | | — | | | | (3,602 | ) |
| | 1,512,982 | | | | USD | | | | 2,000,000 | | | | CAD | | | | SCB | | | | 01/31/20 | | | | — | | | | (27,446 | ) |
| | 10,849,770 | | | | USD | | | | 14,150,000 | | | | CAD | | | | SSG | | | | 01/31/20 | | | | — | | | | (48,762 | ) |
| | 5,420,988 | | | | USD | | | | 7,135,000 | | | | CAD | | | | MSC | | | | 01/31/20 | | | | — | | | | (74,491 | ) |
| | 1,259,744 | | | | USD | | | | 1,660,000 | | | | CAD | | | | HSBC | | | | 02/04/20 | | | | — | | | | (18,822 | ) |
| | 53,355 | | | | USD | | | | 70,000 | | | | CAD | | | | HSBC | | | | 02/07/20 | | | | — | | | | (561 | ) |
| | 986,642 | | | | USD | | | | 1,300,000 | | | | CAD | | | | CIBC | | | | 03/09/20 | | | | — | | | | (14,724 | ) |
| | 378,279 | | | | USD | | | | 500,000 | | | | CAD | | | | HSBC | | | | 04/09/20 | | | | — | | | | (6,882 | ) |
| | 921,637 | | | | USD | | | | 1,215,000 | | | | CAD | | | | RBC | | | | 04/09/20 | | | | — | | | | (14,304 | ) |
| | 985,901 | | | | USD | | | | 1,300,000 | | | | CAD | | | | DEUT | | | | 06/01/20 | | | | — | | | | (15,482 | ) |
| | 1,264,119 | | | | USD | | | | 1,135,000 | | | | EUR | | | | SSG | | | | 01/14/20 | | | | — | | | | (10,142 | ) |
| | 2,456,437 | | | | USD | | | | 2,201,000 | | | | EUR | | | | CBK | | | | 01/31/20 | | | | — | | | | (17,179 | ) |
| | 843,234 | | | | USD | | | | 755,000 | | | | EUR | | | | CIBC | | | | 02/28/20 | | | | — | | | | (6,717 | ) |
| | 15,574,059 | | | | USD | | | | 13,951,000 | | | | EUR | | | | CBK | | | | 03/18/20 | | | | — | | | | (151,855 | ) |
| | 2,208,140 | | | | USD | | | | 1,688,000 | | | | GBP | | | | MSC | | | | 03/18/20 | | | | — | | | | (32,611 | ) |
| | 2,110,591 | | | | USD | | | | 228,950,000 | | | | JPY | | | | SSG | | | | 01/08/20 | | | | 2,470 | | | | — | |
| | 2,635,227 | | | | USD | | | | 285,650,000 | | | | JPY | | | | BNP | | | | 01/27/20 | | | | 2,241 | | | | — | |
| | 6,342,830 | | | | USD | | | | 686,800,000 | | | | JPY | | | | SSG | | | | 02/10/20 | | | | 7,584 | | | | — | |
| | 5,052,131 | | | | USD | | | | 548,500,000 | | | | JPY | | | | MSC | | | | 02/18/20 | | | | — | | | | (9,692 | ) |
| | 4,259,815 | | | | USD | | | | 457,850,000 | | | | JPY | | | | JPM | | | | 05/11/20 | | | | 14,427 | | | | — | |
| | 11,028,456 | | | | USD | | | | 16,767,000 | | | | NZD | | | | HSBC | | | | 01/31/20 | | | | — | | | | (264,284 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | | | | | | | | | | | | | | | | | | | | | | $ | 234,776 | | | $ | (1,123,073 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | 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 Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage Backed Securities | | $ | 553,663,458 | | | $ | — | | | $ | 553,663,458 | | | $ | — | |
Corporate Bonds | | | 578,354,390 | | | | — | | | | 578,354,390 | | | | — | |
Foreign Government Obligations | | | 90,433,331 | | | | — | | | | 90,433,331 | | | | — | |
Municipal Bonds | | | 21,107,946 | | | | — | | | | 21,107,946 | | | | — | |
Senior Floating Rate Interests | | | 52,289,903 | | | | — | | | | 52,289,903 | | | | — | |
U.S. Government Agencies | | | 1,115,752,920 | | | | — | | | | 1,115,752,920 | | | | — | |
U.S. Government Securities | | | 274,607,494 | | | | — | | | | 274,607,494 | | | | — | |
Common Stocks | | | | | | | | | | | | | | | | |
Energy | | | 84,787 | | | | — | | | | 3,966 | | | | 80,821 | |
Preferred Stocks | | | 1,972,960 | | | | 1,972,960 | | | | — | | | | — | |
Warrants | | | 167 | | | | — | | | | — | | | | 167 | |
Short-Term Investments | | | 77,689,629 | | | | 65,054,243 | | | | 12,635,386 | | | | — | |
Purchased Options | | | 2,626,843 | | | | — | | | | 2,626,843 | | | | — | |
Foreign Currency Contracts(2) | | | 234,776 | | | | — | | | | 234,776 | | | | — | |
Futures Contracts(2) | | | 1,384,659 | | | | 1,384,659 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 3,096,257 | | | | — | | | | 3,096,257 | | | | — | |
Swaps - Interest Rate(2) | | | 632,532 | | | | — | | | | 632,532 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,773,932,052 | | | $ | 68,411,862 | | | $ | 2,705,439,202 | | | $ | 80,988 | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Foreign Currency Contracts(2) | | $ | (1,123,073 | ) | | $ | — | | | $ | (1,123,073 | ) | | $ | — | |
Futures Contracts(2) | | | (2,722,829 | ) | | | (2,722,829 | ) | | | — | | | | — | |
Swaps - Credit Default(2) | | | (1,515,727 | ) | | | — | | | | (1,515,727 | ) | | | — | |
Swaps - Interest Rate(2) | | | (6,930,055 | ) | | | — | | | | (6,930,055 | ) | | | — | |
TBA Sale Commitments | | | (72,160,904 | ) | | | — | | | | (72,160,904 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (84,452,588 | ) | | $ | (2,722,829 | ) | | $ | (81,729,759 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
| (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, 2019 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 40.4% | |
| | | | | | Asset-Backed - Automobile - 27.7% | |
| | | | | | Ally Auto Receivables Trust | |
| $ | | | 2,275,000 | | | 1.93%, 10/17/2022 | | $ | 2,274,261 | |
| | | 100,747 | | | 2.72%, 05/17/2021 | | | 100,763 | |
| | | 847,189 | | | 2.85%, 03/15/2022 | | | 849,442 | |
| | | | | | American Credit Acceptance Receivables Trust | |
| | | 1,599,557 | | | 2.44%, 12/12/2022(1) | | | 1,601,736 | |
| | | 538,840 | | | 2.85%, 07/12/2022(1) | | | 539,921 | |
| | | 779,960 | | | 3.06%, 07/12/2022(1) | | | 781,774 | |
| | | | | | AmeriCredit Automobile Receivables Trust | |
| | | 1,445,000 | | | 2.06%, 04/18/2024 | | | 1,445,983 | |
| | | 410,000 | | | 2.17%, 01/18/2023 | | | 410,447 | |
| | | 6,295 | | | 2.71%, 07/19/2021 | | | 6,297 | |
| | | 361,852 | | | 2.86%, 11/18/2021 | | | 362,237 | |
| | | 532,516 | | | 2.93%, 06/20/2022 | | | 534,327 | |
| | | 2,390,000 | | | 2.97%, 11/20/2023 | | | 2,418,552 | |
| | | 601,117 | | | 3.11%, 01/18/2022 | | | 602,540 | |
| | | | | | ARI Fleet Lease Trust | |
| | | 217,637 | | | 1.91%, 04/15/2026(1) | | | 217,414 | |
| | | 2,450,000 | | | 2.28%, 04/15/2026(1) | | | 2,452,854 | |
| | | 268,245 | | | 2.55%, 10/15/2026(1) | | | 268,518 | |
| | | 614,010 | | | Bank of The West Auto Trust
2.40%, 10/17/2022(1) | | | 615,480 | |
| | | 565,000 | | | BMW Floorplan Master Owner Trust
2.06%, 05/15/2023, 1 mo. USD LIBOR + 0.320%(1)(2) | | | 565,836 | |
| | | 1,084,193 | | | BMW Vehicle Lease Trust
2.97%, 12/21/2020 | | | 1,085,941 | |
| | | | | | Canadian Pacer Auto Receivables Trust | |
| | | 81,072 | | | 2.05%, 03/19/2021(1) | | | 81,066 | |
| | | 1,442,964 | | | 2.78%, 03/21/2022(1) | | | 1,447,560 | |
| | | 390,982 | | | 3.00%, 06/21/2021(1) | | | 391,740 | |
| | | | | | Capital Auto Receivables Asset Trust | |
| | | 95,572 | | | 2.02%, 08/20/2021(1) | | | 95,554 | |
| | | 531,330 | | | 3.02%, 02/22/2021(1) | | | 532,029 | |
| | | | | | CarMax Auto Owner Trust | |
| | | 450,737 | | | 1.40%, 08/15/2021 | | | 450,006 | |
| | | 503,533 | | | 1.88%, 06/15/2021 | | | 503,377 | |
| | | 1,395,000 | | | 2.01%, 03/15/2023 | | | 1,395,747 | |
| | | 1,130,000 | | | 2.21%, 12/15/2022 | | | 1,132,532 | |
| | | 36,424 | | | 2.23%, 05/17/2021 | | | 36,424 | |
| | | 666,841 | | | 2.69%, 07/15/2022 | | | 669,246 | |
| | | 728,040 | | | 2.88%, 10/15/2021 | | | 729,453 | |
| | | 589,807 | | | 3.02%, 07/15/2022 | | | 592,346 | |
| | | 1,263,900 | | | 3.11%, 02/15/2022 | | | 1,268,889 | |
| | | 865,000 | | | Carvana Auto Receivables Trust
2.20%, 07/15/2022(1) | | | 864,713 | |
| | | | | | Chesapeake Funding LLC | |
| | | 478,149 | | | 1.91%, 08/15/2029(1) | | | 477,672 | |
| | | 2,500,806 | | | 1.95%, 09/15/2031(1) | | | 2,495,467 | |
| | | 1,086,919 | | | 2.11%, 08/15/2030, 1 mo. USD LIBOR + 0.370%(1)(2) | | | 1,085,853 | |
| | | 730,415 | | | 2.12%, 11/15/2029(1) | | | 730,595 | |
| | | 238,172 | | | 2.19%, 05/15/2029, 1 mo. USD LIBOR + 0.450%(1)(2) | | | 238,354 | |
| | | 1,262,384 | | | 2.94%, 04/15/2031(1) | | | 1,278,723 | |
| | | 587,998 | | | 3.04%, 04/15/2030(1) | | | 594,650 | |
| | | 822,018 | | | 3.39%, 01/15/2031(1) | | | 835,724 | |
| | | | | | CPS Auto Receivables Trust | |
| | | 469,984 | | | 2.17%, 12/15/2022(1) | | | 469,869 | |
| | | 1,168,694 | | | 2.55%, 09/15/2022(1) | | | 1,171,355 | |
| | | 360,386 | | | 2.89%, 05/16/2022(1) | | | 361,449 | |
| | | 336,129 | | | 3.06%, 01/18/2022(1) | | | 336,682 | |
| | | 580,353 | | | 3.18%, 06/15/2022(1) | | | 582,462 | |
| | | 123,178 | | | CPS Auto Trust
2.87%, 09/15/2021(1) | | | 123,249 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 40.4% - (continued) | |
| | | | | | Asset-Backed - Automobile - 27.7% - (continued) | |
| | | | | | Drive Auto Receivables Trust | |
| $ | | | 1,145,000 | | | 2.16%, 05/15/2023 | | $ | 1,144,258 | |
| | | 835,000 | | | 2.32%, 06/15/2022 | | | 835,866 | |
| | | 605,000 | | | 3.04%, 03/15/2023 | | | 608,607 | |
| | | 1,290,000 | | | 3.18%, 10/17/2022 | | | 1,293,157 | |
| | | 1,487,818 | | | 3.34%, 10/15/2022 | | | 1,490,656 | |
| | | | | | DT Auto Owner Trust | |
| | | 1,437,400 | | | 2.17%, 05/15/2023(1) | | | 1,437,944 | |
| | | 963,561 | | | 2.55%, 08/15/2022(1) | | | 965,801 | |
| | | 434,804 | | | 2.85%, 09/15/2022(1) | | | 436,243 | |
| | | 604,022 | | | 3.02%, 02/15/2022(1) | | | 605,251 | |
| | | 500,124 | | | 3.08%, 09/15/2022(1) | | | 501,921 | |
| | | | | | Enterprise Fleet Financing LLC | |
| | | 183,550 | | | 1.97%, 01/20/2023(1) | | | 183,479 | |
| | | 1,880,000 | | | 2.06%, 05/20/2025(1) | | | 1,878,172 | |
| | | 1,420,206 | | | 2.13%, 05/22/2023(1) | | | 1,419,768 | |
| | | 1,715,000 | | | 2.29%, 02/20/2025(1) | | | 1,720,777 | |
| | | 673,140 | | | 2.87%, 10/20/2023(1) | | | 675,985 | |
| | | 1,470,000 | | | 2.98%, 10/20/2024(1) | | | 1,484,143 | |
| | | 1,087,328 | | | 3.14%, 02/20/2024(1) | | | 1,095,850 | |
| | | 466,528 | | | 3.38%, 05/20/2024(1) | | | 472,824 | |
| | | | | | Exeter Automobile Receivables Trust | |
| | | 1,189,920 | | | 2.18%, 01/17/2023(1) | | | 1,190,280 | |
| | | 687,575 | | | 2.59%, 09/15/2022(1) | | | 688,801 | |
| | | 28,804 | | | 2.90%, 01/18/2022(1) | | | 28,811 | |
| | | 755,000 | | | 2.93%, 07/15/2022(1) | | | 757,371 | |
| | | 113,737 | | | 3.05%, 12/15/2021(1) | | | 113,794 | |
| | | 620,173 | | | 3.20%, 04/15/2022(1) | | | 621,418 | |
| | | | | | First Investors Auto Owner Trust | |
| | | 1,583,076 | | | 2.21%, 09/16/2024(1) | | | 1,582,524 | |
| | | 701,624 | | | 2.66%, 05/16/2022 | | | 703,835 | |
| | | 61,381 | | | 2.84%, 05/16/2022(1) | | | 61,408 | |
| | | 636,280 | | | 2.89%, 03/15/2024(1) | | | 640,876 | |
| | | 391,364 | | | 3.23%, 12/15/2022(1) | | | 392,898 | |
| | | | | | Flagship Credit Auto Trust | |
| | | 100,386 | | | 1.88%, 10/15/2021(1) | | | 100,323 | |
| | | 915,196 | | | 2.17%, 06/17/2024(1) | | | 915,509 | |
| | | 1,822,856 | | | 2.33%, 02/15/2024(1) | | | 1,826,228 | |
| | | 1,411,875 | | | 2.83%, 10/16/2023(1) | | | 1,420,364 | |
| | | 436,954 | | | 3.07%, 02/15/2023(1) | | | 438,934 | |
| | | 930,921 | | | 3.11%, 08/15/2023(1) | | | 938,810 | |
| | | 1,281,684 | | | 3.41%, 05/15/2023(1) | | | 1,293,284 | |
| | | | | | Ford Credit Auto Lease Trust | |
| | | 1,515,000 | | | 2.28%, 02/15/2022 | | | 1,519,639 | |
| | | 1,220,443 | | | 2.35%, 02/15/2022 | | | 1,222,608 | |
| | | 3,085 | | | 2.71%, 12/15/2020 | | | 3,086 | |
| | | 1,416,686 | | | 2.84%, 09/15/2021 | | | 1,420,808 | |
| | | 732,966 | | | 2.93%, 04/15/2021 | | | 733,551 | |
| | | | | | Ford Credit Auto Owner Trust | |
| | | 368,265 | | | 2.01%, 03/15/2022 | | | 368,437 | |
| | | 1,000,000 | | | 2.12%, 07/15/2026(1) | | | 999,941 | |
| | | 1,756,125 | | | 2.78%, 02/15/2022 | | | 1,762,201 | |
| | | | | | GM Financial Automobile Leasing Trust | |
| | | 1,185,000 | | | 2.03%, 06/20/2022 | | | 1,184,759 | |
| | | 1,320,000 | | | 2.09%, 10/20/2021 | | | 1,320,536 | |
| | | 490,000 | | | 2.67%, 03/21/2022 | | | 493,691 | |
| | | 66,583 | | | 2.89%, 09/21/2020 | | | 66,608 | |
| | | 693,825 | | | 2.91%, 04/20/2021 | | | 695,957 | |
| | | 805,000 | | | 2.98%, 12/20/2021 | | | 812,099 | |
| | | 1,122,067 | | | GM Financial Consumer Automobile
1.78%, 10/18/2021(1) | | | 1,121,482 | |
| | | | | | GM Financial Consumer Automobile Receivables Trust | | | | |
| | | 574,352 | | | 2.74%, 07/16/2021 | | | 574,835 | |
| | | 539,332 | | | 2.93%, 11/16/2021 | | | 540,305 | |
| | | 692,194 | | | 2.99%, 03/16/2022 | | | 693,880 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 40.4% - (continued) | |
| | | | | | Asset-Backed - Automobile - 27.7% - (continued) | |
| $ | | | 2,147,882 | | | Great American Auto Leasing, Inc. 2.97%, 06/15/2021(1) | | $ | 2,156,549 | |
| | | | | | Honda Auto Receivables Owner Trust | |
| | | 1,835,000 | | | 1.90%, 04/15/2022 | | | 1,834,637 | |
| | | 243,679 | | | 2.67%, 12/21/2020 | | | 243,885 | |
| | | 547,455 | | | 2.98%, 05/17/2021 | | | 549,164 | |
| | | 1,723,887 | | | Huntington Auto Trust 1.93%, 04/15/2022 | | | 1,723,023 | |
| | | | | | Hyundai Auto Lease Securitization Trust | |
| | | 1,645,000 | | | 2.08%, 12/15/2021(1) | | | 1,646,046 | |
| | | 571,199 | | | 2.81%, 12/15/2020(1) | | | 571,687 | |
| | | 1,747,931 | | | 2.92%, 07/15/2021(1) | | | 1,756,069 | |
| | | | | | Hyundai Auto Receivables Trust | |
| | | 81,788 | | | 2.55%, 04/15/2021 | | | 81,835 | |
| | | 796,394 | | | 2.55%, 11/15/2021 | | | 796,489 | |
| | | 719,699 | | | Mercedes-Benz Auto Lease Trust 3.01%, 02/16/2021 | | | 721,074 | |
| | | | | | Mercedes-Benz Auto Receivables Trust | |
| | | 27,718 | | | 1.26%, 02/16/2021 | | | 27,707 | |
| | | 286,928 | | | 2.71%, 04/15/2021 | | | 287,150 | |
| | | 1,240,204 | | | Nissan Auto Lease Trust 3.03%, 02/16/2021 | | | 1,242,496 | |
| | | | | | Nissan Auto Receivables Owner Trust | |
| | | 1,650,000 | | | 1.97%, 09/15/2022 | | | 1,650,936 | |
| | | 828,370 | | | 2.82%, 01/18/2022 | | | 831,159 | |
| | | 113,754 | | | OneMain Direct Auto Receivables Trust 2.31%, 12/14/2021(1) | | | 113,729 | |
| | | | | | Prestige Auto Receivables Trust | |
| | | 1,226,567 | | | 2.44%, 07/15/2022(1) | | | 1,227,966 | |
| | | 269,960 | | | 2.97%, 12/15/2021(1) | | | 270,206 | |
| | | | | | Santander Drive Auto Receivables Trust | |
| | | 900,000 | | | 3.00%, 12/15/2022 | | | 903,243 | |
| | | 9,252 | | | 3.03%, 02/15/2022 | | | 9,255 | |
| | | 596,554 | | | Santander Retail Auto Lease Trust 2.72%, 01/20/2022(1) | | | 599,790 | |
| | | | | | Securitized Term Auto Receivables Trust | |
| | | 1,113,998 | | | 2.21%, 06/25/2021(1) | | | 1,114,433 | |
| | | 295,451 | | | 2.81%, 12/29/2020(1) | | | 295,699 | |
| | | 2,280,000 | | | 2.99%, 02/27/2023(1) | | | 2,304,900 | |
| | | 758,469 | | | Toyota Auto Receivables Owner Trust 2.83%, 10/15/2021 | | | 761,124 | |
| | | 641,283 | | | United Auto Credit Securitization Trust 2.82%, 07/12/2021(1) | | | 642,348 | |
| | | 845,000 | | | USAA Auto Owner Trust 2.26%, 02/15/2022 | | | 846,344 | |
| | | | | | Volkswagen Auto Lease Trust | |
| | | 1,430,000 | | | 1.99%, 11/21/2022 | | | 1,431,385 | |
| | | 1,655,000 | | | 2.00%, 03/21/2022 | | | 1,654,760 | |
| | | 388,585 | | | Volkswagen Auto Loan Enhanced Trust 2.81%, 07/20/2021 | | | 389,290 | |
| | | | | | Westlake Automobile Receivables Trust | |
| | | 1,295,000 | | | 2.15%, 02/15/2023(1) | | | 1,295,056 | |
| | | 127,690 | | | 2.84%, 09/15/2021(1) | | | 127,743 | |
| | | 1,265,491 | | | 3.06%, 05/16/2022(1) | | | 1,270,017 | |
| | | | | | Wheels SPV LLC | |
| | | 63,372 | | | 1.88%, 04/20/2026(1) | | | 63,355 | |
| | | 442,051 | | | 2.37%, 06/22/2020(1) | | | 442,341 | |
| | | 1,383,868 | | | 3.06%, 04/20/2027(1) | | | 1,391,334 | |
| | | | | | World Omni Auto Receivables Trust | |
| | | 823,718 | | | 2.63%, 06/15/2022 | | | 826,213 | |
| | | 497,496 | | | 2.80%, 01/18/2022 | | | 498,259 | |
| | | 844,318 | | | 3.01%, 04/15/2022 | | | 846,745 | |
| | | 1,415,302 | | | 3.02%, 04/15/2022 | | | 1,420,703 | |
| | | | | | World Omni Automobile Lease Securitization Trust | |
| | | 100,186 | | | 2.59%, 11/16/2020 | | | 100,202 | |
| | | 702,218 | | | 2.96%, 06/15/2021 | | | 704,559 | |
| | | 1,480,000 | | | World Omni Select Auto Trust 2.06%, 08/15/2023 | | | 1,479,658 | |
| | | | | | | | | | |
| | | | | | | | | 124,758,265 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 40.4% - (continued) | |
| | | | | | Asset-Backed - Credit Card - 0.2% | |
| $ | | | 915,000 | | | Barclays Dryrock Issuance Trust 2.07%, 03/15/2023, 1 mo. USD LIBOR + 0.330%(2) | | $ | 915,601 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Finance & Insurance - 8.3% | |
| | | | | | CNH Equipment Trust | |
| | | 2,845,000 | | | 1.99%, 03/15/2023 | | | 2,844,648 | |
| | | 725,000 | | | 2.55%, 09/15/2022 | | | 727,568 | |
| | | 339,831 | | | 2.78%, 08/16/2021 | | | 339,998 | |
| | | 679,054 | | | 2.93%, 12/15/2021 | | | 680,479 | |
| | | 1,095,670 | | | 2.96%, 05/16/2022 | | | 1,100,125 | |
| | | | | | DLL LLC | |
| | | 2,280,000 | | | 2.13%, 01/20/2022(1) | | | 2,278,989 | |
| | | 640,899 | | | 2.79%, 11/22/2021(1) | | | 642,914 | |
| | | 1,225,000 | | | 2.89%, 04/20/2023(1) | | | 1,238,007 | |
| | | 312,925 | | | Ellington Financial Mortgage Trust 2.74%, 11/25/2059(1)(3) | | | 312,787 | |
| | | 1,150,000 | | | Evergreen Credit Card Trust 1.90%, 09/15/2024(1) | | | 1,144,933 | |
| | | | | | GMF Floorplan Owner Revolving Trust | |
| | | 2,675,000 | | | 2.17%, 07/15/2022, 1 mo. USD LIBOR + 0.430%(1)(2) | | | 2,677,034 | |
| | | 1,440,000 | | | 2.31%, 01/18/2022, 1 mo. USD LIBOR + 0.570%(1)(2) | | | 1,440,187 | |
| | | 742,000 | | | 2.70%, 04/15/2024(1) | | | 746,181 | |
| | | | | | HPEFS Equipment Trust | |
| | | 875,000 | | | 2.19%, 09/20/2029(1) | | | 875,759 | |
| | | 628,000 | | | 2.21%, 09/20/2029(1) | | | 628,512 | |
| | | 1,808,476 | | | John Deere Owner Trust 2.85%, 12/15/2021 | | | 1,814,359 | |
| | | | | | Kubota Credit Owner Trust | |
| | | 2,425,000 | | | 2.49%, 06/15/2022(1) | | | 2,434,181 | |
| | | 285,574 | | | 2.80%, 02/16/2021(1) | | | 285,842 | |
| | | | | | MMAF Equipment Finance LLC | |
| | | 735,000 | | | 2.07%, 10/12/2022(1) | | | 735,126 | |
| | | 1,253,749 | | | 2.84%, 01/10/2022(1) | | | 1,258,833 | |
| | | 456,617 | | | 2.92%, 07/12/2021(1) | | | 457,482 | |
| | | | | | New York City Tax Lien | |
| | | 1,541,000 | | | 2.19%, 11/10/2032(1) | | | 1,540,276 | |
| | | 1,353,781 | | | 3.22%, 11/10/2031(1) | | | 1,355,946 | |
| | | | | | SoFi Consumer Loan Program Trust | |
| | | 1,992,964 | | | 2.45%, 08/25/2028(1) | | | 1,995,969 | |
| | | 1,760,428 | | | 2.90%, 05/25/2028(1) | | | 1,771,393 | |
| | | | | | Verizon Owner Trust | |
| | | 315,457 | | | 1.92%, 12/20/2021(1) | | | 315,423 | |
| | | 213,961 | | | 2.06%, 09/20/2021(1) | | | 213,973 | |
| | | 2,235,000 | | | 2.33%, 12/20/2023 | | | 2,251,038 | |
| | | 1,060,000 | | | 3.23%, 04/20/2023 | | | 1,077,952 | |
| | | | | | Volvo Financial Equipment LLC | |
| | | 885,000 | | | 2.02%, 08/15/2022(1) | | | 884,854 | |
| | | 835,000 | | | 2.04%, 11/15/2023(1) | | | 835,483 | |
| | | 384,382 | | | 2.90%, 11/15/2021(1) | | | 385,780 | |
| | | 230,000 | | | Volvo Financial Equipment Master Owner Trust 2.24%, 11/15/2022, 1 mo. USD LIBOR + 0.500%(1)(2) | | | 230,524 | |
| | | | | | | | | | |
| | | | | | | | | 37,522,555 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Student Loan - 0.4% | |
| | | | | | SLM Student Loan Trust | |
| | | 195,222 | | | 2.03%, 10/25/2024, 3 mo. USD LIBOR + 0.090%(2) | | | 195,075 | |
| | | 533,223 | | | 2.06%, 01/25/2027, 3 mo. USD LIBOR + 0.120%(2) | | | 528,897 | |
| | | 201,263 | | | 2.31%, 03/25/2026, 1 mo. USD LIBOR + 0.520%(2) | | | 201,304 | |
| | | 762,770 | | | 2.39%, 11/25/2027, 1 mo. USD LIBOR + 0.600%(2) | | | 763,749 | |
| | | | | | | | | | |
| | | | | | | | | 1,689,025 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 40.4% - (continued) | |
| | | | | | Commercial Mortgage - Backed Securities - 0.3% | |
| $ | | | 800,000 | | | GS Mortgage Securities Corp. Trust 2.44%, 07/15/2032, 1 mo. USD LIBOR + 0.700%(1)(2) | | $ | 799,016 | |
| | | 608,917 | | | SG Residential Mortgage Trust 3.43%, 04/27/2048(1)(3) | | | 610,075 | |
| | | | | | | | | | |
| | | | | | | | | 1,409,091 | |
| | | | | | | | | | |
| | | | | | Other ABS - 1.7% | |
| | | 1,251,224 | | | Daimler Trucks Retail Trust 2.77%, 04/15/2021(1) | | | 1,253,843 | |
| | | 2,415,000 | | | Hertz Fleet Lease Funding L.P. 2.70%, 01/10/2033(1) | | | 2,432,462 | |
| | | 478,261 | | | Nationstar HECM Loan Trust 2.65%, 06/25/2029(1)(3) | | | 478,465 | |
| | | 1,490,000 | | | OnDeck Asset Securitization Trust LLC 2.65%, 11/18/2024(1) | | | 1,491,788 | |
| | | 2,235,000 | | | Transportation Finance Equipment Trust 1.90%, 01/24/2022(1) | | | 2,231,228 | |
| | | | | | | | | | |
| | | | | | | | | 7,887,786 | |
| | | | | | | | | | |
| | | | | | Whole Loan Collateral CMO - 1.8% | |
| | | 585,917 | | | Bunker Hill Loan Depositary Trust 3.61%, 10/26/2048(1)(4) | | | 592,106 | |
| | | 871,894 | | | COLT Mortgage Loan Trust 3.69%, 10/26/2048(1)(3) | | | 876,469 | |
| | | 1,033,795 | | | New Residential Mortgage Loan Trust 4.00%, 08/27/2057(1)(3) | | | 1,073,577 | |
| | | 121,975 | | | OBX Trust 2.44%, 06/25/2057, 1 mo. USD LIBOR + 0.650%(1)(2) | | | 121,319 | |
| | | 1,121,796 | | | Towd Point Mortgage Trust 2.39%, 02/25/2057, 1 mo. USD LIBOR + 0.600%(1)(2) | | | 1,119,025 | |
| | | | | | Verus Securitization Trust | |
| | | 1,243,171 | | | 2.64%, 11/25/2059(1)(4) | | | 1,242,570 | |
| | | 1,100,085 | | | 2.78%, 07/25/2059(1)(4) | | | 1,101,664 | |
| | | 287,382 | | | 2.93%, 02/25/2048(1)(3) | | | 287,407 | |
| | | 980,242 | | | 3.21%, 05/25/2059(1)(3) | | | 986,252 | |
| | | 624,800 | | | 3.68%, 06/01/2058(1)(3) | | | 628,368 | |
| | | | | | | | | | |
| | | | | | | | | 8,028,757 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Asset & Commercial Mortgage Backed Securities
(cost $181,745,652) | | $ | 182,211,080 | |
| | | | | | | | | | |
|
| CORPORATE BONDS - 28.2% | |
| | | | | | Aerospace/Defense - 0.3% | |
| $ | | | 1,500,000 | | | United Technologies Corp. 2.55%, 08/16/2021, 3 mo. USD LIBOR + 0.650%(2) | | $ | 1,500,193 | |
| | | | | | | | | | |
| | | | | | Agriculture - 0.4% | |
| | | 1,750,000 | | | Philip Morris International, Inc. 2.32%, 02/21/2020, 3 mo. USD LIBOR + 0.420%(2) | | | 1,750,844 | |
| | | | | | | | | | |
| | | | | | Auto Manufacturers - 2.0% | |
| | | 715,000 | | | Daimler Finance North America LLC 2.29%, 05/04/2020, 3 mo. USD LIBOR + 0.390%(1)(2) | | | 715,467 | |
| | | 1,000,000 | | | General Motors Financial Co., Inc. 2.86%, 04/09/2021, 3 mo. USD LIBOR + 0.850%(2) | | | 1,001,966 | |
| | | 1,250,000 | | | Hyundai Capital America 2.97%, 07/08/2021, 3 mo. USD LIBOR + 0.940%(1)(2) | | | 1,253,166 | |
| | | 1,900,000 | | | Nissan Motor Acceptance Corp. 2.35%, 09/28/2020, 3 mo. USD LIBOR + 0.390%(1)(2) | | | 1,900,594 | |
| | | | | | Toyota Motor Credit Corp. | |
| | | 1,000,000 | | | 2.20%, 01/10/2020 | | | 999,995 | |
| | | 2,000,000 | | | 2.26%, 04/17/2020, 3 mo. USD LIBOR + 0.260%(2) | | | 2,001,609 | |
| | | 1,195,000 | | | Volkswagen Group of America Finance LLC 3.88%, 11/13/2020(1) | | | 1,214,512 | |
| | | | | | | | | | |
| | | | | | | | | 9,087,309 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.2% - (continued) | |
| | | | | | Commercial Banks - 12.7% | |
| $ | | | 1,000,000 | | | ABN Amro Bank N.V. 2.49%, 08/27/2021, 3 mo. USD LIBOR + 0.570%(1)(2) | | $ | 1,004,166 | |
| | | 1,500,000 | | | Bank of America Corp. 2.75%, 10/01/2021, 3 mo. USD LIBOR + 0.650%(2) | | | 1,504,264 | |
| | | 640,000 | | | Bank of New York Mellon Corp. 1.95%, 08/23/2022 | | | 641,414 | |
| | | 1,500,000 | | | BB&T Corp. 2.46%, 06/15/2020, 3 mo. USD LIBOR + 0.570%(2) | | | 1,502,770 | |
| | | 718,000 | | | BPCE S.A. 2.25%, 01/27/2020 | | | 717,998 | |
| | | | | | Canadian Imperial Bank of Commerce | |
| | | 1,750,000 | | | 2.22%, 02/02/2021, 3 mo. USD LIBOR + 0.315%(2) | | | 1,752,751 | |
| | | 900,000 | | | 2.34%, 03/17/2023, 3 mo. USD SOFR SOFRRATE + 0.800%(2) | | | 902,933 | |
| | | | | | Capital One Financial Corp. | |
| | | 1,250,000 | | | 2.66%, 05/12/2020, 3 mo. USD LIBOR + 0.760%(2) | | | 1,252,344 | |
| | | 1,500,000 | | | 2.84%, 03/09/2022, 3 mo. USD LIBOR + 0.950%(2) | | | 1,515,454 | |
| | | 350,000 | | | Capital One NA 2.15%, 09/06/2022 | | | 350,594 | |
| | | 1,500,000 | | | Citibank NA 2.84%, 05/20/2022, (2.84% fixed rate until 05/20/2021; 3 mo. USD LIBOR + 0.596% thereafter)(5) | | | 1,518,217 | |
| | | 1,125,000 | | | Citigroup, Inc. 2.65%, 10/26/2020 | | | 1,131,141 | |
| | | 1,500,000 | | | Citizens Bank NA 2.45%, 03/02/2020, 3 mo. USD LIBOR + 0.540%(2) | | | 1,500,638 | |
| | | 2,500,000 | | | Credit Agricole S.A. 2.86%, 06/10/2020, 3 mo. USD LIBOR + 0.970%(1)(2) | | | 2,509,275 | |
| | | 1,945,000 | | | Credit Suisse AG 2.10%, 11/12/2021 | | | 1,954,205 | |
| | | | | | Danske Bank A/S | |
| | | 1,500,000 | | | 2.42%, 03/02/2020, 3 mo. USD LIBOR + 0.510%(1)(2) | | | 1,500,429 | |
| | | 1,250,000 | | | 3.00%, 09/20/2022, (3.00% fixed rate until 09/20/2021; 3 mo. USD LIBOR + 1.249% thereafter)(1)(5) | | | 1,261,080 | |
| | | 1,500,000 | | | Deutsche Bank AG 2.97%, 07/13/2020, 3 mo. USD LIBOR + 0.970%(2) | | | 1,501,245 | |
| | | 1,500,000 | | | DNB Bank ASA 2.28%, 10/02/2020, 3 mo. USD LIBOR + 0.370%(1)(2) | | | 1,502,490 | |
| | | | | | Fifth Third Bank | |
| | | 1,000,000 | | | 2.19%, 10/30/2020, 3 mo. USD LIBOR + 0.250%(2) | | | 1,000,732 | |
| | | 500,000 | | | 2.20%, 10/30/2020 | | | 500,855 | |
| | | | | | Goldman Sachs Group, Inc. | |
| | | 3,500,000 | | | 3.08%, 11/15/2021, 3 mo. USD LIBOR + 1.170%(2) | | | 3,527,237 | |
| | | 2,000,000 | | | 3.09%, 04/23/2020, 3 mo. USD LIBOR + 1.160%(2) | | | 2,004,504 | |
| | | | | | HSBC Holdings plc | |
| | | 1,785,000 | | | 2.50%, 05/18/2021, 3 mo. USD LIBOR + 0.600%(2) | | | 1,786,817 | |
| | | 750,000 | | | 2.54%, 09/11/2021, 3 mo. USD LIBOR + 0.650%(2) | | | 751,642 | |
| | | 1,500,000 | | | Huntington National Bank 2.40%, 03/10/2020, 3 mo. USD LIBOR + 0.510%(2) | | | 1,501,226 | |
| | | 1,500,000 | | | JP Morgan Chase & Co. 2.59%, 06/01/2021, 3 mo. USD LIBOR + 0.680%(2) | | | 1,502,435 | |
| | | 1,250,000 | | | Manufacturers & Traders Trust Co. 2.21%, 01/25/2021, 3 mo. USD LIBOR + 0.270%(2) | | | 1,250,559 | |
| | | 750,000 | | | PNC Bank NA 2.50%, 01/22/2021 | | | 754,466 | |
| | | | | | Regions Bank | |
| | | 1,500,000 | | | 2.29%, 04/01/2021, 3 mo. USD LIBOR + 0.380%(2) | | | 1,500,285 | |
| | | 1,000,000 | | | 2.41%, 08/13/2021, 3 mo. USD LIBOR + 0.500%(2) | | | 1,000,899 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.2% - (continued) | |
| | | | | | Commercial Banks - 12.7% - (continued) | |
| | | | | | Santander UK plc | |
| $ | | | 750,000 | | | 2.13%, 11/03/2020 | | $ | 750,894 | |
| | | 1,500,000 | | | 2.53%, 06/01/2021, 3 mo. USD LIBOR + 0.620%(2) | | | 1,505,167 | |
| | | 1,360,000 | | | Standard Chartered plc 2.74%, 09/10/2022, (2.74% fixed rate until 09/10/2021; 3 mo. USD LIBOR + 1.200% thereafter)(1)(5) | | | 1,368,494 | |
| | | | | | Sumitomo Mitsui Banking Corp. | |
| | | 1,000,000 | | | 2.35%, 01/17/2020, 3 mo. USD LIBOR + 0.350%(2) | | | 1,000,195 | |
| | | 1,000,000 | | | 2.51%, 01/17/2020 | | | 1,000,179 | |
| | | 1,000,000 | | | SunTrust Bank 2.59%, 01/29/2021, 3 mo. USD LIBOR + 0.298%(5) | | | 1,002,187 | |
| | | | | | Svenska Handelsbanken AB | |
| | | 1,250,000 | | | 2.25%, 09/08/2020, 3 mo. USD LIBOR + 0.360%(2) | | | 1,251,961 | |
| | | 1,250,000 | | | 2.38%, 05/24/2021, 3 mo. USD LIBOR + 0.470%(2) | | | 1,254,002 | |
| | | | | | U.S. Bank NA | |
| | | 1,000,000 | | | 2.05%, 10/23/2020(6) | | | 1,001,288 | |
| | | 1,775,000 | | | 2.19%, 05/21/2021, 3 mo. USD LIBOR + 0.290%(2) | | | 1,776,199 | |
| | | | | | UBS AG | |
| | | 715,000 | | | 2.45%, 12/01/2020(1) | | | 717,441 | |
| | | 800,000 | | | 2.47%, 06/08/2020, 3 mo. USD LIBOR + 0.580%(1)(2) | | | 801,324 | |
| | | 1,025,000 | | | Wells Fargo Bank NA 2.60%, 01/15/2021 | | | 1,032,188 | |
| | | | | | | | | | |
| | | | | | | | | 57,066,584 | |
| | | | | | | | | | |
| | | | | | Commercial Services - 0.2% | |
| | | 915,000 | | | Equifax, Inc. 2.78%, 08/15/2021, 3 mo. USD LIBOR + 0.870%(2) | | | 918,324 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 1.9% | |
| | | 1,250,000 | | | AIG Global Funding 2.41%, 06/25/2021, 3 mo. USD LIBOR + 0.460%(1)(2) | | | 1,254,689 | |
| | | 3,655,000 | | | Ally Financial, Inc. 4.13%, 03/30/2020 | | | 3,668,706 | |
| | | 1,000,000 | | | American Express Co. 2.43%, 05/17/2021, 3 mo. USD LIBOR + 0.525%(2) | | | 1,004,112 | |
| | | 1,700,000 | | | Synchrony Financial 3.13%, 02/03/2020, 3 mo. USD LIBOR + 1.230%(2) | | | 1,701,335 | |
| | | 945,000 | | | USAA Capital Corp. 2.63%, 06/01/2021(1) | | | 955,504 | |
| | | | | | | | | | |
| | | | | | | | | 8,584,346 | |
| | | | | | | | | | |
| | | | | | Electric - 0.8% | |
| | | 1,250,000 | | | American Electric Power Co., Inc. 2.15%, 11/13/2020 | | | 1,252,446 | |
| | | | | | NextEra Energy Capital Holdings, Inc. | |
| | | 990,000 | | | 2.40%, 09/01/2021 | | | 997,141 | |
| | | 1,500,000 | | | 3.34%, 09/01/2020 | | | 1,513,131 | |
| | | | | | | | | | |
| | | | | | | | | 3,762,718 | |
| | | | | | | | | | |
| | | | | | Electronics - 0.2% | |
| | | 1,000,000 | | | Honeywell International, Inc. 2.15%, 08/08/2022 | | | 1,009,207 | |
| | | | | | | | | | |
| | | | | | Food - 0.6% | |
| | | 1,250,000 | | | Conagra Brands, Inc. 2.70%, 10/22/2020, 3 mo. USD LIBOR + 0.750%(2) | | | 1,250,113 | |
| | | 1,500,000 | | | Kraft Heinz Foods Co. 2.47%, 02/10/2021, 3 mo. USD LIBOR + 0.570%(2) | | | 1,502,132 | |
| | | | | | | | | | |
| | | | | | | | | 2,752,245 | |
| | | | | | | | | | |
| | | | | | Healthcare-Services - 0.2% | |
| | | 1,000,000 | | | UnitedHealth Group, Inc. 1.95%, 10/15/2020 | | | 1,000,053 | |
| | | | | | | | | | |
| | | | | | Insurance - 1.6% | |
| | | 440,000 | | | Allstate Corp. 2.39%, 03/29/2021, 3 mo. USD LIBOR + 0.430%(2) | | | 441,032 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.2% - (continued) | |
| | | | | | Insurance - 1.6% - (continued) | |
| $ | | | 704,000 | | | MassMutual Global Funding II 1.95%, 09/22/2020(1) | | $ | 704,298 | |
| | | | | | Metropolitan Life Global Funding I | |
| | | 2,000,000 | | | 2.11%, 09/07/2020, 3 mo. USD SOFR + 0.570%(1)(2) | | | 2,003,830 | |
| | | 795,000 | | | 2.40%, 01/08/2021(1) | | | 798,932 | |
| | | | | | New York Life Global Funding | |
| | | 2,000,000 | | | 2.28%, 04/09/2020, 3 mo. USD LIBOR + 0.270%(1)(2) | | | 2,001,858 | |
| | | 325,000 | | | 2.95%, 01/28/2021(1) | | | 329,549 | |
| | | 1,000,000 | | | Protective Life Global Funding 2.48%, 06/28/2021, 3 mo. USD LIBOR + 0.520%(1)(2) | | | 1,004,577 | |
| | | | | | | | | | |
| | | | | | | | | 7,284,076 | |
| | | | | | | | | | |
| | | | | | IT Services - 1.4% | |
| | | 1,425,000 | | | Apple, Inc. 1.97%, 05/11/2020, 3 mo. USD LIBOR + 0.070%(2) | | | 1,425,590 | |
| | | | | | Hewlett Packard Enterprise Co. | |
| | | 1,250,000 | | | 2.57%, 03/12/2021, 3 mo. USD LIBOR + 0.680%(2) | | | 1,254,650 | |
| | | 1,000,000 | | | 2.76%, 10/05/2021, 3 mo. USD LIBOR + 0.720%(2) | | | 1,000,132 | |
| | | 1,500,000 | | | IBM Credit LLC 3.45%, 11/30/2020 | | | 1,523,155 | |
| | | 1,250,000 | | | International Business Machines Corp. 2.80%, 05/13/2021 | | | 1,266,780 | |
| | | | | | | | | | |
| | | | | | | | | 6,470,307 | |
| | | | | | | | | | |
| | | | | | Machinery-Diversified - 0.7% | |
| | | | | | John Deere Capital Corp. | | | | |
| | | 2,000,000 | | | 2.19%, 03/13/2020, 3 mo. USD LIBOR + 0.300%(2) | | | 2,000,887 | |
| | | 1,125,000 | | | 2.22%, 06/22/2020, 3 mo. USD LIBOR + 0.290%(2) | | | 1,126,104 | |
| | | | | | | | | | |
| | | | | | | | | 3,126,991 | |
| | | | | | | | | | |
| | | | | | Media - 0.7% | |
| | | 1,125,000 | | | NBCUniversal Enterprise, Inc. 2.31%, 04/01/2021, 3 mo. USD LIBOR + 0.400%(1)(2) | | | 1,127,813 | |
| | | 1,750,000 | | | Viacom, Inc. 4.50%, 03/01/2021 | | | 1,798,340 | |
| | | | | | | | | | |
| | | | | | | | | 2,926,153 | |
| | | | | | | | | | |
| | | | | | Miscellaneous Manufacturing - 0.3% | |
| | | 1,500,000 | | | Siemens Financieringsmaatschappij N.V. 2.23%, 03/16/2020, 3 mo. USD LIBOR + 0.340%(1)(2) | | | 1,500,693 | |
| | | | | | | | | | |
| | | | | | Oil & Gas - 0.8% | |
| | | | | | Occidental Petroleum Corp. | | | | |
| | | 775,000 | | | 2.60%, 08/13/2021 | | | 780,735 | |
| | | 1,000,000 | | | 3.16%, 08/13/2021, 3 mo. USD LIBOR + 1.250%(2) | | | 1,005,309 | |
| | | 1,660,000 | | | Phillips 66 2.75%, 04/15/2020, 3 mo. USD LIBOR + 0.750%(1)(2) | | | 1,660,686 | |
| | | | | | | | | | |
| | | | | | | | | 3,446,730 | |
| | | | | | | | | | |
| | | | | | Oil & Gas Services - 0.3% | |
| | | 1,250,000 | | | Schlumberger Finance Canada Ltd.
2.20%, 11/20/2020(1) | | | 1,251,869 | |
| | | | | | | | | | |
| | | | | | Pharmaceuticals - 1.7% | |
| | | 1,675,000 | | | AbbVie, Inc. 2.55%, 11/21/2022, 3 mo. USD LIBOR + 0.650%(1)(2) | | | 1,683,285 | |
| | | 1,500,000 | | | Bayer U.S. Finance LLC 2.58%, 06/25/2021, 3 mo. USD LIBOR + 0.630%(1)(2) | | | 1,504,733 | |
| | | 1,700,000 | | | Bristol-Myers Squibb Co. 2.55%, 05/14/2021(1) | | | 1,716,907 | |
| | | 2,000,000 | | | Cigna Corp. 3.20%, 09/17/2020 | | | 2,015,562 | |
| | | 700,000 | | | CVS Health Corp. 2.61%, 03/09/2021, 3 mo. USD LIBOR + 0.720%(2) | | | 704,292 | |
| | | | | | | | | | |
| | | | | | | | | 7,624,779 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.2% - (continued) | |
| | | | | | Pipelines - 0.1% | |
| $ | | | 330,000 | | | MPLX L.P. 2.79%, 09/09/2021, 3 mo. USD LIBOR + 0.900%(2) | | $ | 331,010 | |
| | | | | | | | | | |
| | | | | | Retail - 0.6% | |
| | | 1,100,000 | | | Dollar Tree, Inc. 2.70%, 04/17/2020, 3 mo. USD LIBOR + 0.700%(2) | | | 1,100,204 | |
| | | 1,500,000 | | | Home Depot, Inc. 2.04%, 06/05/2020, 3 mo. USD LIBOR + 0.150%(2) | | | 1,501,249 | |
| | | | | | | | | | |
| | | | | | | | | 2,601,453 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 0.4% | |
| | | 1,750,000 | | | Broadcom, Inc. 3.13%, 04/15/2021(1) | | | 1,771,246 | |
| | | | | | | | | | |
| | | | | | Trucking & Leasing - 0.3% | |
| | | 1,375,000 | | | Aviation Capital Group LLC 2.61%, 07/30/2021, 3 mo. USD LIBOR + 0.670%(1)(2) | | | 1,374,973 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Corporate Bonds
(cost $126,680,143) | | $ | 127,142,103 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 1.8% | |
| | | | | | Mortgage-Backed Agencies - 1.8% | |
| | | | | | FHLMC - 0.5% | |
| $ | | | 2,019,846 | | | FHLMC 3.00%, 05/15/2037 | | $ | 2,038,919 | |
| | | | | | | | | | |
| | | | | | GNMA - 1.3% | | | |
| | | 2,535,988 | | | 1.70%, 10/20/2045 | | $ | 2,514,495 | |
| | | 3,402,983 | | | 1.80%, 05/20/2041 | | | 3,382,991 | |
| | | | | | | | | | |
| | | | | | | | | 5,897,486 | |
| | | | | | | | | | |
| | | | | | Total U.S. Government Agencies
(cost $7,927,521) | | $ | 7,936,405 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 27.8% | |
| | | | | | Other Direct Federal Obligations - 3.2% | |
| $ | | | 1,050,000 | | | Federal Farm Credit Discount Notes 0.00%, 08/11/2020(7) | | $ | 1,039,899 | |
| | | 9,000,000 | | | FHLB 1.72%, 12/17/2020, 1 mo. USDLIBOR - 0.040%(2) | | | 8,998,288 | |
| | | 4,460,000 | | | FNMA 2.88%, 10/30/2020 | | | 4,504,902 | |
| | | | | | | | | | |
| | | | | | | | | 14,543,089 | |
| | | | | | | | | | |
| | | | | | U.S. Treasury Securities - 24.6% | |
| | | | | | U.S. Treasury Notes - 24.6% | |
| | | 10,000,000 | | | 1.38%, 04/30/2021 | | | 9,969,531 | |
| | | 8,625,000 | | | 1.50%, 05/15/2020 | | | 8,620,620 | |
| | | 10,000,000 | | | 1.63%, 06/30/2020 | | | 10,000,000 | |
| | | 14,050,000 | | | 1.63%, 07/31/2020 | | | 14,049,451 | |
| | | 11,500,000 | | | 1.63%, 10/15/2020(6) | | | 11,498,652 | |
| | | 10,000,000 | | | 1.63%, 11/30/2020 | | | 9,997,656 | |
| | | 14,650,000 | | | 1.64%, 01/31/2021, 3 mo. USTMMR + 0.115%(2) | | | 14,644,353 | |
| | | 4,800,000 | | | 1.67%, 04/30/2021, 3 mo. USTMMR + 0.139%(2) | | | 4,797,367 | |
| | | 22,625,000 | | | 1.75%, 11/30/2021 | | | 22,694,820 | |
| | | 4,425,000 | | | 2.88%, 10/15/2021 | | | 4,524,217 | |
| | | | | | | | | | |
| | | | | | | | | 110,796,667 | |
| | | | | | | | | | |
| | | |
| | | | | | Total U.S. Government Securities
(cost $125,144,771) | | $ | 125,339,756 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Long-Term Investments
(cost $441,498,087) | | $ | 442,629,344 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 3.3% | |
| | | | | | Commercial Paper - 0.2% | |
| | | 1,000,000 | | | ING U.S. Funding LLC 2.06%, 09/14/2020, 3 mo. USD LIBOR + 0.150%(2)(8) | | $ | 999,999 | |
| | | | | | | | | | |
| | | | | | Other Investment Pools & Funds - 1.4% | |
| | | 6,240,584 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(9) | | | 6,240,584 | |
| | | | | | | | | | |
| | | | | | Securities Lending Collateral - 1.7% | |
| | | 370,415 | | | Citibank NA DDCA, 1.54%, 1/2/2020(9) | | | 370,415 | |
| | | 1,796,167 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 1.52%(9) | | | 1,796,167 | |
| | | 1,655,279 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 1.75%(9) | | | 1,655,279 | |
| | | 827,640 | | | JPMorgan Prime Money Market Fund, 1.69%(9) | | | 827,640 | |
| | | 2,207,039 | | | Morgan Stanley Institutional Liquidity Funds, Prime Portfolio, Institutional Class, 1.72%(9) | | | 2,207,039 | |
| | | 551,760 | | | State Street Institutional Liquid Reserves Fund, 1.70%(9) | | | 551,760 | |
| | | | | | | | | | |
| | | | | | | | | 7,408,300 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Short-Term Investments
(cost $14,648,884) | | $ | 14,648,883 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments
(cost $456,146,971) | | | 101.5 | % | | $ | 457,278,227 | |
| | | | | | Other Assets and Liabilities | | | (1.5 | )% | | | (6,546,404 | ) |
| | | | | | | | | | | | | | |
| | | | | | Total Net Assets | | | 100.0 | % | | $ | 450,731,823 | |
| | | | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $148,944,683, representing 33.0% of net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2019. Base lending rates may be subject to a floor or cap. |
| (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) | Security is a“step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (5) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2019. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (6) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (7) | Security is azero-coupon bond. |
| (8) | The rate shown represents current yield to maturity. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| (9) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage Backed Securities | | $ | 182,211,080 | | | $ | — | | | $ | 182,211,080 | | | $ | — | |
Corporate Bonds | | | 127,142,103 | | | | — | | | | 127,142,103 | | | | — | |
U.S. Government Agencies | | | 7,936,405 | | | | — | | | | 7,936,405 | | | | — | |
U.S. Government Securities | | | 125,339,756 | | | | — | | | | 125,339,756 | | | | — | |
Short-Term Investments | | | 14,648,883 | | | | 13,648,884 | | | | 999,999 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 457,278,227 | | | $ | 13,648,884 | | | $ | 443,629,343 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 19.9% | |
| | | | Agency Collat PAC CMO - 0.1% | |
| $ | | | 1,392,841 | | | Freddie Mac Strips 5.00%, 09/15/2036(1) | | $ | 268,279 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Automobile - 1.0% | |
| | | 350,000 | | | Avis Budget Rental Car Funding AESOP LLC
2.99%, 06/20/2022(2) | | | 353,711 | |
| | | 1,890,265 | | | Capital Auto Receivables Asset Trust
3.62%, 05/20/2021 | | | 1,891,707 | |
| | | 1,020,000 | | | Toyota Auto Loan Extended Note Trust
2.56%, 11/25/2031(2) | | | 1,035,684 | |
| | | | | | | | | | |
| | | 3,281,102 | |
| | | | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 1.8% | |
| | | 1,157,386 | | | NRZ Excess Spread-Collateralized Notes
3.19%, 01/25/2023(2) | | | 1,160,983 | |
| | | 286,859 | | | Structured Asset Securities Corp. 3.29%, 02/25/2033, 1 mo. USD LIBOR + 1.500%(3) | | | 289,328 | |
| | | | | | Towd Point Mortgage Trust | |
| | | 2,186,032 | | | 3.75%, 03/25/2058(2)(4) | | | 2,269,597 | |
| | | 2,064,710 | | | 3.75%, 05/25/2058(2)(4) | | | 2,136,089 | |
| | | | | | | | | | |
| | | 5,855,997 | |
| | | | | | | | | | |
| | | | Asset-Backed - Home Equity - 0.3% | |
| | | 413,390 | | | Morgan Stanley Asset-Backed Securities Capital, Inc. Trust 3.29%, 11/25/2032, 1 mo. USD LIBOR + 1.500%(3) | | | 411,861 | |
| | | 7,585,784 | | | Morgan Stanley Capital Trust
0.84%, 07/15/2051(1)(4) | | | 418,907 | |
| | | | | | | | | | |
| | | 830,768 | |
| | | | | | | | | | |
| | | | Commercial Mortgage - Backed Securities - 5.7% | |
| | | 22,841,178 | | | Benchmark Mortgage Trust 0.54%, 07/15/2051(1)(4) | | | 780,718 | |
| | | 3,400,000 | | | CSMC Trust 2.76%, 04/05/2033(2) | | | 3,404,754 | |
| | | | | | FREMF Mortgage Trust | |
| | | 955,000 | | | 3.65%, 11/25/2050(2)(4) | | | 976,041 | |
| | | 1,515,000 | | | 3.70%, 04/25/2048(2)(4) | | | 1,560,668 | |
| | | 1,325,000 | | | 3.73%, 10/25/2049(2)(4) | | | 1,370,805 | |
| | | 1,005,000 | | | 3.80%, 02/25/2050(2)(4) | | | 1,032,984 | |
| | | 700,000 | | | 3.84%, 10/25/2049(2)(4) | | | 729,588 | |
| | | 660,000 | | | 3.94%, 09/25/2049(2)(4) | | | 692,349 | |
| | | 4,580,000 | | | 3.98%, 04/25/2051(2)(4) | | | 4,748,616 | |
| | | 1,990,000 | | | 5.52%, 04/25/2020(2)(4) | | | 1,992,212 | |
| | | 448,000 | | | Natixis Commercial Mortgage Securities Trust
4.40%, 06/17/2038(2) | | | 495,638 | |
| | | | | | Wells Fargo N.A. | |
| | | 3,315,000 | | | 0.76%, 12/15/2052(1)(4) | | | 193,687 | |
| | | 5,264,656 | | | 0.84%, 09/15/2062(1)(4) | | | 353,374 | |
| | | | | | | | | | |
| | | 18,331,434 | |
| | | | | | | | | | |
| | | | Other ABS - 1.2% | |
| | | 1,755,000 | | | MMAF Equipment Finance LLC
2.29%, 11/12/2041(2) | | | 1,732,184 | |
| | | 1,896,889 | | | United States Small Business Administration
3.07%, 05/01/2044 | | | 1,975,200 | |
| | | | | | | | | | |
| | | 3,707,384 | |
| | | | | | | | | | |
| | | | Real Estate - 0.2% | |
| | | 6,758,055 | | | Cantor Commercial Real Estate 1.14%, 05/15/2052(1)(4) | | | 562,082 | |
| | | | | | | | | | |
| | | | | | Whole Loan Collateral CMO - 9.6% | |
| | | | | | Angel Oak Mortgage Trust LLC | |
| | | 2,811,899 | | | 2.93%, 05/25/2059(2)(4) | | | 2,818,453 | |
| | | 3,797,918 | | | 3.63%, 03/25/2049(2)(4) | | | 3,840,906 | |
| | | 2,279,690 | | | CIM Trust 3.00%, 04/25/2057(2)(4) | | | 2,288,609 | |
| | | | | | COLT Mortgage Loan Trust | |
| | | 1,809,287 | | | 2.58%, 11/25/2049(2)(4) | | | 1,806,222 | |
| | | 1,207,644 | | | 3.34%, 05/25/2049(2)(4) | | | 1,209,570 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE BACKED SECURITIES - 19.9% - (continued) | |
| | | | | | Whole Loan Collateral CMO - 9.6% - (continued) | |
| | | | | | Deephaven Residential Mortgage Trust | |
| $ | | | 179,362 | | | 2.73%, 12/26/2046(2)(4) | | $ | 178,717 | |
| | | 1,252,741 | | | 3.56%, 04/25/2059(2)(4) | | | 1,261,115 | |
| | | 598,419 | | | LSTAR Securities Investment Trust
3.21%, 04/01/2024, 1 mo. USD LIBOR + 1.500%(2)(3) | | | 597,107 | |
| | | 1,519,970 | | | Mill City Mortgage Loan Trust 3.25%, 05/25/2062(2)(4) | | | 1,544,092 | |
| | | | | | New Residential Mortgage Loan Trust | |
| | | 858,052 | | | 3.25%, 09/25/2056(2)(4) | | | 873,225 | |
| | | 1,292,153 | | | 3.60%, 04/25/2049(2)(4) | | | 1,302,069 | |
| | | 1,055,969 | | | 3.75%, 03/25/2056(2)(4) | | | 1,088,336 | |
| | | 1,074,887 | | | Spruce Hill Mortgage Loan Trust 3.40%, 04/29/2049(2)(4) | | | 1,080,739 | |
| | | | | | Towd Point Mortgage Trust | |
| | | 3,146,812 | | | 2.39%, 02/25/2057, 1 mo. USD LIBOR + 0.600%(2)(3) | | | 3,139,038 | |
| | | 2,072,820 | | | 2.90%, 10/25/2059(2)(4) | | | 2,084,739 | |
| | | 488,704 | | | 3.00%, 11/25/2057(2)(4) | | | 489,925 | |
| | | 2,399,000 | | | 3.75%, 04/25/2055(2)(4) | | | 2,486,474 | |
| | | | | | Verus Securitization Trust | |
| | | 1,499,707 | | | 2.78%, 07/25/2059(2)(5) | | | 1,501,860 | |
| | | 1,350,504 | | | 3.21%, 05/25/2059(2)(4) | | | 1,358,783 | |
| | | | | | | | | | |
| | | 30,949,979 | |
| | | | | | | | | | |
| | |
| | | Total Asset & Commercial Mortgage Backed Securities
(cost $63,009,155) | | $ | 63,787,025 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 70.9% | |
| | | | | | Mortgage-Backed Agencies - 70.0% | |
| | | | | | FHLMC - 29.6% | |
| $ | | | 2,206,551 | | | 1.25%, 07/15/2042 | | $ | 2,137,056 | |
| | | 68,450,000 | | | 1.38%, 05/01/2020 | | | 68,386,855 | |
| | | 3,041,495 | | | 1.57%, 01/25/2022 | | | 3,027,884 | |
| | | 597,368 | | | 2.50%, 12/15/2026(1) | | | 25,718 | |
| | | 598,400 | | | 2.50%, 03/15/2028(1) | | | 37,241 | |
| | | 442,275 | | | 2.50%, 05/15/2028(1) | | | 30,665 | |
| | | 759,184 | | | 3.00%, 04/15/2028(1) | | | 58,440 | |
| | | 568,047 | | | 3.00%, 05/15/2032(1) | | | 32,420 | |
| | | 478,606 | | | 3.00%, 03/15/2033(1) | | | 51,066 | |
| | | 3,406,102 | | | 3.00%, 11/01/2036 | | | 3,489,382 | |
| | | 109,598 | | | 3.00%, 09/01/2045 | | | 111,894 | |
| | | 3,155,422 | | | 3.00%, 05/15/2046 | | | 3,250,118 | |
| | | 742,661 | | | 3.00%, 08/15/2047 | | | 762,136 | |
| | | 4,703,816 | | | 3.50%, 11/15/2025 | | | 4,847,778 | |
| | | 595,505 | | | 3.50%, 06/15/2026(1) | | | 26,057 | |
| | | 242,544 | | | 3.50%, 09/15/2026(1) | | | 19,128 | |
| | | 396,626 | | | 3.50%, 03/15/2027(1) | | | 27,230 | |
| | | 1,286,586 | | | 3.50%, 01/15/2028(1) | | | 106,847 | |
| | | 238,008 | | | 4.00%, 07/15/2027(1) | | | 21,493 | |
| | | 682,490 | | | 4.00%, 03/15/2028(1) | | | 50,413 | |
| | | 380,455 | | | 4.00%, 06/15/2028(1) | | | 31,039 | |
| | | 783,779 | | | 4.00%, 07/15/2030(1) | | | 80,163 | |
| | | 1,354,868 | | | 4.50%, 02/15/2027(1) | | | 123,182 | |
| | | 1,779,696 | | | 4.50%, 05/15/2034 | | | 1,883,443 | |
| | | 215,597 | | | 4.69%, 07/25/2028, 1 mo. USD LIBOR + 2.900%(3) | | | 216,493 | |
| | | 615,866 | | | 5.00%, 09/15/2033(1) | | | 110,696 | |
| | | 712,459 | | | 5.00%, 02/15/2048(1) | | | 143,275 | |
| | | 3,280 | | | 5.50%, 06/01/2034 | | | 3,626 | |
| | | 25,050 | | | 5.50%, 10/01/2035 | | | 28,186 | |
| | | 42,602 | | | 5.50%, 04/01/2037 | | | 47,826 | |
| | | 638,600 | | | 5.50%, 12/01/2037 | | | 716,462 | |
| | | 206,657 | | | 5.50%, 04/01/2038 | | | 232,282 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 70.9% - (continued) | |
| | | | | | Mortgage-Backed Agencies - 70.0% - (continued) | |
| | | | | | FHLMC - 29.6% - (continued) | |
| $ | | | 12,402 | | | 5.50%, 05/01/2038 | | $ | 13,940 | |
| | | 980,652 | | | 5.50%, 08/01/2038 | | | 1,101,716 | |
| | | 1,994 | | | 5.50%, 12/01/2039 | | | 2,247 | |
| | | 10,987 | | | 6.00%, 10/01/2021 | | | 12,086 | |
| | | 21,553 | | | 6.00%, 10/01/2022 | | | 23,710 | |
| | | 43,924 | | | 6.00%, 01/01/2028 | | | 48,471 | |
| | | 13,704 | | | 6.00%, 04/15/2028 | | | 15,055 | |
| | | 26,352 | | | 6.00%, 05/15/2028(6) | | | 29,060 | |
| | | 33,213 | | | 6.00%, 11/15/2028 | | | 36,509 | |
| | | 60,438 | | | 6.00%, 12/15/2028 | | | 66,886 | |
| | | 127,046 | | | 6.00%, 01/15/2029 | | | 140,927 | |
| | | 29,403 | | | 6.00%, 02/15/2029 | | | 32,351 | |
| | | 32,664 | | | 6.00%, 03/15/2029 | | | 36,274 | |
| | | 22,331 | | | 6.00%, 05/15/2029 | | | 24,548 | |
| | | 4,826 | | | 6.00%, 06/15/2029 | | | 5,324 | |
| | | 1,318 | | | 6.00%, 03/15/2031 | | | 1,487 | |
| | | 61,422 | | | 6.00%, 04/15/2031 | | | 68,527 | |
| | | 25,498 | | | 6.00%, 10/15/2031 | | | 28,562 | |
| | | 34,856 | | | 6.00%, 12/01/2031 | | | 39,983 | |
| | | 200,878 | | | 6.00%, 12/15/2031(6) | | | 228,497 | |
| | | 277,705 | | | 6.00%, 12/15/2031 | | | 313,724 | |
| | | 9,157 | | | 6.00%, 05/15/2032 | | | 10,175 | |
| | | 587,055 | | | 6.00%, 06/15/2032 | | | 652,412 | |
| | | 519,044 | | | 6.00%, 09/15/2032 | | | 583,652 | |
| | | 44,913 | | | 6.00%, 10/15/2032 | | | 51,854 | |
| | | 373 | | | 6.00%, 11/01/2032 | | | 428 | |
| | | 38,493 | | | 6.00%, 11/15/2032 | | | 43,493 | |
| | | 13,873 | | | 6.00%, 04/01/2033 | | | 15,274 | |
| | | 14,087 | | | 6.00%, 09/01/2034 | | | 16,117 | |
| | | 3,760 | | | 6.50%, 04/01/2028 | | | 4,176 | |
| | | 195,793 | | | 6.50%, 08/15/2028 | | | 217,686 | |
| | | 458,500 | | | 6.50%, 05/15/2032 | | | 524,860 | |
| | | 70,498 | | | 6.50%, 08/01/2032 | | | 78,600 | |
| | | 171,869 | | | 6.50%, 09/01/2032 | | | 196,201 | |
| | | 8,330 | | | 7.00%, 10/01/2026 | | | 8,344 | |
| | | 1,818 | | | 7.00%, 03/01/2027 | | | 1,929 | |
| | | 1,595 | | | 7.00%, 12/01/2027 | | | 1,598 | |
| | | 666 | | | 7.00%, 02/01/2029 | | | 759 | |
| | | 418 | | | 7.00%, 05/01/2029 | | | 480 | |
| | | 440 | | | 7.00%, 09/01/2029 | | | 458 | |
| | | 386 | | | 7.00%, 02/01/2031 | | | 445 | |
| | | 57,648 | | | 7.00%, 04/01/2032 | | | 66,025 | |
| | | 54,146 | | | 7.00%, 05/01/2032 | | | 55,235 | |
| | | 44,116 | | | 7.00%, 06/01/2032 | | | 51,304 | |
| | | 65,574 | | | 7.00%, 11/01/2032 | | | 74,380 | |
| | | 1,408 | | | 7.50%, 05/01/2024 | | | 1,493 | |
| | | 365 | | | 7.50%, 06/01/2024 | | | 366 | |
| | | 838 | | | 7.50%, 06/01/2025 | | | 894 | |
| | | 2,908 | | | 8.00%, 08/01/2024 | | | 2,926 | |
| | | 3,630 | | | 8.00%, 09/01/2024 | | | 3,712 | |
| | | 53 | | | 8.00%, 10/01/2024 | | | 56 | |
| | | | | | | | | | |
| | | 95,051,710 | |
| | | | | | | | | | |
| | | | FNMA - 19.6% | |
| | | 6,672,410 | | | 1.57%, 05/25/2029(1)(4) | | | 695,166 | |
| | | 1,011,862 | | | 2.00%, 09/25/2039 | | | 984,619 | |
| | | 658,992 | | | 2.05%, 11/01/2023 | | | 657,488 | |
| | | 596,420 | | | 2.13%, 08/25/2025, 1 mo. USD LIBOR + 0.400%(3) | | | 595,572 | |
| | | 3,256,406 | | | 2.22%, 10/01/2022 | | | 3,279,684 | |
| | | 774,180 | | | 2.25%, 10/25/2024, 1 mo. USD LIBOR + 0.400%(3) | | | 772,744 | |
| | | 1,072,982 | | | 2.26%, 04/25/2055(1)(4) | | | 66,481 | |
| | | 1,363,834 | | | 2.28%, 06/25/2055(1)(4) | | | 69,725 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 70.9% - (continued) | |
| | | | FNMA - 19.6% - (continued) | |
| $ | | | 526,504 | | | 2.34%, 04/25/2024, 1 mo. USD LIBOR + 0.490%(3) | | $ | 527,693 | |
| | | 199,672 | | | 2.45%, 11/01/2022 | | | 201,988 | |
| | | 22,691 | | | 2.50%, 01/01/2043 | | | 22,582 | |
| | | 1,705,135 | | | 2.51%, 08/25/2044(1)(4) | | | 92,392 | |
| | | 261,978 | | | 2.54%, 03/01/2023 | | | 265,447 | |
| | | 2,500,000 | | | 2.68%, 05/01/2025 | | | 2,553,960 | |
| | | 78,300 | | | 2.74%, 04/01/2022 | | | 79,200 | |
| | | 84,834 | | | 2.83%, 06/01/2022 | | | 86,777 | |
| | | 238,847 | | | 2.94%, 06/01/2022 | | | 244,328 | |
| | | 1,023,370 | | | 3.00%, 02/25/2027(1) | | | 59,726 | |
| | | 1,113,219 | | | 3.00%, 07/25/2027(1) | | | 72,447 | |
| | | 441,319 | | | 3.00%, 09/25/2027(1) | | | 32,226 | |
| | | 51,283 | | | 3.00%, 12/01/2030 | | | 52,802 | |
| | | 1,127,381 | | | 3.00%, 06/25/2043 | | | 1,161,064 | |
| | | 110,293 | | | 3.02%, 04/01/2022 | | | 110,424 | |
| | | 511,118 | | | 3.07%, 06/01/2027 | | | 533,117 | |
| | | 7,182,117 | | | 3.11%, 10/01/2021 | | | 7,293,188 | |
| | | 556,198 | | | 3.25%, 12/01/2021 | | | 567,152 | |
| | | 333,753 | | | 3.26%, 01/01/2022 | | | 343,255 | |
| | | 210,706 | | | 3.50%, 11/01/2020 | | | 211,590 | |
| | | 2,487,647 | | | 3.50%, 04/25/2027(1) | | | 188,740 | |
| | | 456,557 | | | 3.50%, 05/25/2027(1) | | | 36,447 | |
| | | 772,119 | | | 3.50%, 10/25/2027(1) | | | 63,406 | |
| | | 237,490 | | | 3.50%, 08/25/2030(1) | | | 22,196 | |
| | | 512,077 | | | 3.50%, 02/25/2031(1) | | | 37,139 | |
| | | 490,842 | | | 3.50%, 09/25/2035(1) | | | 60,601 | |
| | | 9,314,627 | | | 3.50%, 04/25/2044 | | | 9,789,043 | |
| | | 2,762,430 | | | 3.50%, 03/25/2045 | | | 2,820,545 | |
| | | 478,687 | | | 3.50%, 10/25/2046(1) | | | 97,162 | |
| | | 2,943,835 | | | 3.50%, 01/25/2047 | | | 3,069,415 | |
| | | 3,156,450 | | | 3.50%, 04/25/2053 | | | 3,250,138 | |
| | | 2,058,845 | | | 3.50%, 10/25/2056 | | | 2,155,701 | |
| | | 467,338 | | | 3.51%, 11/01/2021 | | | 477,663 | |
| | | 1,675,271 | | | 3.65%, 11/01/2021 | | | 1,715,566 | |
| | | 81,497 | | | 3.65%, 08/01/2023 | | | 85,669 | |
| | | 976,451 | | | 3.73%, 07/01/2022 | | | 1,004,491 | |
| | | 984,165 | | | 3.75%, 09/01/2023 | | | 1,038,812 | |
| | | 90,552 | | | 3.81%, 11/01/2023 | | | 96,584 | |
| | | 274,948 | | | 3.85%, 01/01/2024 | | | 292,595 | |
| | | 372,562 | | | 3.89%, 10/01/2023 | | | 395,824 | |
| | | 2,700,000 | | | 3.98%, 07/01/2021 | | | 2,771,830 | |
| | | 53,291 | | | 3.99%, 07/01/2021 | | | 54,442 | |
| | | 692,084 | | | 4.00%, 05/25/2027(1) | | | 54,077 | |
| | | 1,034,976 | | | 4.50%, 10/01/2040 | | | 1,123,786 | |
| | | 451,178 | | | 4.50%, 10/01/2041 | | | 489,704 | |
| | | 2,196,760 | | | 4.50%, 02/25/2042(1) | | | 257,826 | |
| | | 1,364,040 | | | 4.50%, 01/01/2043 | | | 1,480,623 | |
| | | 411,163 | | | 4.50%, 09/01/2043 | | | 446,367 | |
| | | 1,337,307 | | | 4.50%, 08/01/2044 | | | 1,451,850 | |
| | | 76,570 | | | 5.00%, 06/01/2025 | | | 79,637 | |
| | | 166,261 | | | 5.47%, 05/25/2042(1)(4) | | | 16,427 | |
| | | 120,833 | | | 6.00%, 10/01/2023 | | | 132,857 | |
| | | 18,599 | | | 6.00%, 10/25/2028 | | | 20,435 | |
| | | 7,087 | | | 6.00%, 11/25/2028 | | | 7,841 | |
| | | 26,986 | | | 6.00%, 04/25/2029 | | | 29,631 | |
| | | 434 | | | 6.00%, 05/01/2029 | | | 492 | |
| | | 20,924 | | | 6.00%, 05/25/2029 | | | 23,037 | |
| | | 19,032 | | | 6.00%, 06/25/2029(6) | | | 21,205 | |
| | | 45,461 | | | 6.00%, 07/25/2029 | | | 50,194 | |
| | | 219,334 | | | 6.00%, 05/25/2031(6) | | | 241,739 | |
| | | 74,658 | | | 6.00%, 09/25/2031 | | | 83,844 | |
| | | 19,048 | | | 6.00%, 11/25/2031 | | | 21,144 | |
| | | 342,344 | | | 6.00%, 12/25/2031 | | | 382,246 | |
| | | 197,983 | | | 6.00%, 01/01/2032 | | | 221,864 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 70.9% - (continued) | |
| | | | FNMA - 19.6% - (continued) | |
| $ | | | 206 | | | 6.00%, 04/01/2032 | | $ | 227 | |
| | | 253 | | | 6.00%, 05/01/2032 | | | 290 | |
| | | 1,316 | | | 6.00%, 09/25/2032 | | | 1,489 | |
| | | 72,816 | | | 6.00%, 11/01/2032 | | | 80,201 | |
| | | 34,535 | | | 6.00%, 02/01/2033 | | | 39,560 | |
| | | 170,881 | | | 6.00%, 03/01/2033 | | | 195,776 | |
| | | 552,940 | | | 6.00%, 05/01/2033 | | | 633,842 | |
| | | 4,439 | | | 6.00%, 08/01/2034 | | | 4,887 | |
| | | 117,032 | | | 6.00%, 01/01/2035 | | | 129,156 | |
| | | 1,580,809 | | | 6.00%, 02/01/2037 | | | 1,809,389 | |
| | | 1,307,685 | | | 6.00%, 01/25/2042(1) | | | 223,413 | |
| | | 947,617 | | | 6.00%, 09/25/2047(1) | | | 224,493 | |
| | | 15 | | | 6.50%, 04/01/2024 | | | 16 | |
| | | 95 | | | 6.50%, 04/01/2027 | | | 106 | |
| | | 11,147 | | | 6.50%, 04/01/2028 | | | 12,372 | |
| | | 96 | | | 6.50%, 05/01/2028 | | | 106 | |
| | | 5,560 | | | 6.50%, 10/01/2028 | | | 6,171 | |
| | | 99,247 | | | 6.50%, 11/01/2028 | | | 110,455 | |
| | | 48,104 | | | 6.50%, 12/01/2028 | | | 53,393 | |
| | | 218,570 | | | 6.50%, 06/25/2029 | | | 234,451 | |
| | | 149,993 | | | 6.50%, 08/01/2029 | | | 167,105 | |
| | | 751 | | | 6.50%, 11/01/2030 | | | 833 | |
| | | 3,360 | | | 6.50%, 05/01/2031 | | | 3,787 | |
| | | 102,979 | | | 6.50%, 10/25/2031 | | | 116,681 | |
| | | 711,939 | | | 6.50%, 08/01/2032 | | | 799,203 | |
| | | 48,887 | | | 6.50%, 09/01/2032 | | | 54,262 | |
| | | 195 | | | 7.00%, 11/01/2031 | | | 199 | |
| | | 142,980 | | | 7.00%, 02/01/2032 | | | 163,571 | |
| | | 2,709 | | | 7.50%, 06/01/2023 | | | 2,844 | |
| | | 1,277 | | | 8.00%, 10/01/2029 | | | 1,445 | |
| | | 60 | | | 8.00%, 03/01/2030 | | | 61 | |
| | | 3,975 | | | 8.00%, 04/01/2030 | | | 4,713 | |
| | | 9 | | | 8.00%, 06/01/2030 | | | 9 | |
| | | 11,213 | | | 8.00%, 10/01/2030 | | | 13,238 | |
| | | 23,954 | | | 8.00%, 12/01/2030 | | | 27,249 | |
| | | 13 | | | 9.00%, 08/01/2020 | | | 13 | |
| | | 7,660 | | | 9.00%, 09/01/2021 | | | 7,690 | |
| | | | | | | | | | |
| | | 62,916,368 | |
| | | | | | | | | | |
| | | | UMBS - 13.1% | |
| | | 14,950,000 | | | 2.50%, 01/16/2035(7) | | | 15,086,652 | |
| | | 19,325,000 | | | 3.00%, 01/16/2035(7) | | | 19,805,860 | |
| | | 1,348,000 | | | 3.50%, 01/14/2050(7) | | | 1,386,702 | |
| | | 5,600,000 | | | 4.00%, 01/14/2050(7) | | | 5,824,438 | |
| | | | | | | | | | |
| | | 42,103,652 | |
| | | | | | | | | | |
| | | | GNMA - 7.7% | |
| | | 216,158 | | | 1.75%, 09/20/2043 | | | 214,144 | |
| | | 1,585,652 | | | 2.50%, 12/16/2039 | | | 1,610,664 | |
| | | 517,531 | | | 3.00%, 09/20/2028(1) | | | 39,061 | |
| | | 345,152 | | | 3.00%, 02/16/2043(1) | | | 50,113 | |
| | | 2,381,090 | | | 3.00%, 04/20/2045 | | | 2,459,331 | |
| | | 10,225,000 | | | 3.00%, 01/01/2050(7) | | | 10,504,989 | |
| | | 207,756 | | | 3.50%, 02/16/2027(1) | | | 16,398 | |
| | | 519,643 | | | 3.50%, 03/20/2027(1) | | | 44,821 | |
| | | 478,434 | | | 3.50%, 07/20/2040(1) | | | 38,841 | |
| | | 741,033 | | | 3.50%, 02/20/2041(1) | | | 64,236 | |
| | | 1,299,298 | | | 3.50%, 04/20/2042(1) | | | 128,687 | |
| | | 1,940,839 | | | 3.50%, 10/20/2042(1) | | | 353,072 | |
| | | 154,345 | | | 3.50%, 05/20/2043(1) | | | 30,849 | |
| | | 1,105,808 | | | 3.50%, 07/20/2043(1) | | | 140,058 | |
| | | 2,818,021 | | | 3.50%, 01/20/2048 | | | 2,960,883 | |
| | | 10,000 | | | 3.50%, 01/01/2050(7) | | | 10,306 | |
| | | 149,524 | | | 4.00%, 12/16/2026(1) | | | 12,471 | |
| | | 2,203,641 | | | 4.00%, 05/20/2029(1) | | | 190,207 | |
| | | 379,253 | | | 4.00%, 03/20/2043(1) | | | 72,183 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 70.9% - (continued) | |
| | | | GNMA - 7.7% - (continued) | |
| $ | | | 183,509 | | | 4.00%, 01/20/2044(1) | | $ | 39,337 | |
| | | 1,292,260 | | | 4.00%, 03/20/2047(1) | | | 203,059 | |
| | | 2,030,680 | | | 4.00%, 07/20/2047(1) | | | 323,606 | |
| | | 60,000 | | | 4.00%, 01/01/2050(7) | | | 62,100 | |
| | | 528,615 | | | 4.50%, 04/20/2045(1) | | | 114,579 | |
| | | 559,409 | | | 5.00%, 01/20/2034 | | | 616,881 | |
| | | 1,546,855 | | | 5.00%, 02/16/2040(1) | | | 318,331 | |
| | | 456,385 | | | 5.00%, 05/20/2040(1) | | | 107,594 | |
| | | 1,350,156 | | | 5.00%, 03/16/2044(1) | | | 232,442 | |
| | | 358,379 | | | 5.00%, 01/16/2047(1) | | | 77,578 | |
| | | 725,167 | | | 5.50%, 09/20/2033 | | | 800,254 | |
| | | 1,150,904 | | | 5.50%, 03/20/2039(1) | | | 230,640 | |
| | | 1,135,338 | | | 5.50%, 02/16/2047(1) | | | 268,875 | |
| | | 688,543 | | | 5.50%, 02/20/2047(1) | | | 132,805 | |
| | | 299,556 | | | 6.00%, 01/15/2033 | | | 341,721 | |
| | | 227,832 | | | 6.00%, 02/15/2033 | | | 256,553 | |
| | | 1,234,531 | | | 6.00%, 09/20/2040(1) | | | 265,733 | |
| | | 1,001,556 | | | 6.00%, 02/20/2046(1) | | | 244,763 | |
| | | 25,571 | | | 6.50%, 12/15/2028 | | | 28,840 | |
| | | 20,951 | | | 6.50%, 05/15/2029 | | | 23,694 | |
| | | 11,523 | | | 6.50%, 09/15/2031 | | | 12,712 | |
| | | 176,951 | | | 6.50%, 10/15/2031 | | | 195,199 | |
| | | 175,880 | | | 6.50%, 11/15/2031 | | | 194,018 | |
| | | 125,235 | | | 6.50%, 01/15/2032 | | | 138,149 | |
| | | 4,531 | | | 7.00%, 06/20/2030 | | | 4,665 | |
| | | 10,419 | | | 7.00%, 05/15/2032 | | | 12,197 | |
| | | 41,615 | | | 7.00%, 07/15/2032 | | | 46,532 | |
| | | 72,124 | | | 7.00%, 09/15/2032 | | | 75,552 | |
| | | 428,073 | | | 7.00%, 10/15/2032(8) | | | 488,459 | |
| | | 2,001 | | | 7.50%, 01/15/2023 | | | 2,006 | |
| | | 372 | | | 7.50%, 05/15/2023 | | | 385 | |
| | | 2,008 | | | 7.50%, 06/15/2023 | | | 2,027 | |
| | | 80 | | | 7.50%, 07/15/2023 | | | 80 | |
| | | 2,048 | | | 7.50%, 08/15/2023 | | | 2,099 | |
| | | 4,065 | | | 7.50%, 09/15/2023 | | | 4,073 | |
| | | 2,504 | | | 7.50%, 10/15/2023 | | | 2,556 | |
| | | 5,396 | | | 7.50%, 11/15/2023 | | | 5,540 | |
| | | 717 | | | 7.50%, 12/15/2023 | | | 718 | |
| | | 876 | | | 7.50%, 02/15/2024 | | | 878 | |
| | | 113 | | | 7.50%, 05/15/2024 | | | 120 | |
| | | 31,137 | | | 7.50%, 07/15/2027 | | | 33,614 | |
| | | 30,836 | | | 7.50%, 04/20/2030 | | | 35,631 | |
| | | 6,558 | | | 8.50%, 09/15/2024 | | | 7,079 | |
| | | 763 | | | 8.50%, 06/15/2029 | | | 784 | |
| | | 3,293 | | | 8.50%, 10/15/2029 | | | 3,376 | |
| | | 1,989 | | | 8.50%, 01/15/2030 | | | 2,077 | |
| | | 7,391 | | | 8.50%, 02/15/2030 | | | 7,414 | |
| | | 655 | | | 8.50%, 03/15/2030 | | | 676 | |
| | | | | | | | | | |
| | | | | | | | | 24,909,315 | |
| | | | | | | | | | |
| | | | | | Other Direct Federal Obligations - 0.9% | |
| | | | | | SLM Student Loan Trust - 0.9% | |
| | | 2,884,215 | | | Nelnet Student Loan Trust 2.56%, 09/25/2065, 1 mo. USD LIBOR + 0.770%(2)(3) | | | 2,835,988 | |
| | | | | | | | | | |
| | | |
| | | | | | Total U.S. Government Agencies
(cost $226,611,817) | | $ | 227,817,033 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 17.2% | |
| | | | | | U.S. Treasury Securities - 17.2% | |
| | | | | | U.S. Treasury Notes - 17.2% | |
| $ | | | 8,907,000 | | | 1.88%, 07/31/2022 | | $ | 8,969,975 | |
| | | 9,666,000 | | | 2.38%, 05/15/2029 | | | 10,053,773 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT SECURITIES - 17.2% - (continued) | |
| | | | | | U.S. Treasury Securities - 17.2% - (continued) | |
| | | | | | U.S. Treasury Notes - 17.2% - (continued) | |
| $ | | | 21,962,000 | | | 2.75%, 08/31/2023 | | $ | 22,821,606 | |
| | | 12,991,000 | | | 2.75%, 11/15/2023(8)(9) | | | 13,521,297 | |
| | | | | | | | | | |
| | | | | | | | | 55,366,651 | |
| | | | | | | | | | |
| | | |
| | | | | | Total U.S. Government Securities
(cost $54,084,869) | | $ | 55,366,651 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Long-Term Investments
(cost $343,705,841) | | $ | 346,970,709 | |
| | | | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 8.1% | |
| | | | | | Other Investment Pools & Funds - 8.1% | | | |
| | | 26,140,693 | | | Fidelity Institutional Government Fund, Institutional Class, 1.49%(10) | | $ | 26,140,693 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Short-Term Investments
(cost $26,140,693) | | $ | 26,140,693 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments
(cost $369,846,534) | | | 116.1 | % | | $ | 373,111,402 | |
| | | | | | Other Assets and Liabilities | | | (16.1 | )% | | | (51,726,953 | ) |
| | | | | | | | | | | | | | |
| | | | | | Total Net Assets | | | 100.0 | % | | $ | 321,384,449 | |
| | | | | | | | | | | | | | |
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Securities disclosed are interest-only strips. |
| (2) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions that are exempt from registration (typically only to qualified institutional buyers) or in a public offering registered under the Securities Act of 1933. At December 31, 2019, the aggregate value of these securities was $59,477,870, representing 18.5% of net assets. |
| (3) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2019. Base lending rates may be subject to a floor or cap. |
| (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) | Security is a“step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (6) | These securities pay no principal or interest during their initial accrual period, but accrue additional principal at a specified coupon rate. |
| (7) | Represents or includes a TBA transaction. |
| (8) | All, or a portion of the security, was pledged as collateral in connection with futures contracts. As of December 31, 2019, the market value of securities pledged was $22,382,756. |
| (9) | All, or a portion of the security, was pledged as collateral in connection with centrally cleared swap contracts. As of December 31, 2019, the market value of securities pledged was $1,925,518. |
| (10) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2019 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
U.S. Treasury2-Year Note Future | | | 10 | | | | 03/31/2020 | | | $ | 2,155,000 | | | $ | (803 | ) |
U.S. Treasury5-Year Note Future | | | 454 | | | | 03/31/2020 | | | | 53,848,657 | | | | (178,807 | ) |
U.S. Treasury10-Year Note Future | | | 398 | | | | 03/20/2020 | | | | 51,111,906 | | | | (352,404 | ) |
U.S. Treasury10-Year Ultra Future | | | 32 | | | | 03/20/2020 | | | | 4,502,500 | | | | (56,074 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | (588,088 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TBA Sale Commitments Outstanding at December 31, 2019 | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
UMBS, 3.00% | | $ | 4,850,000 | | | | 1/14/2050 | | | $ | (4,918,961 | ) | | $ | (9,050 | ) |
UMBS, 4.50% | | | 2,300,000 | | | | 1/14/2050 | | | | (2,421,559 | ) | | | (2,246 | ) |
| | | | | | | | | | | | | | | | |
Total (proceeds receivable $7,329,224) | | | | | | | | | | $ | (7,340,520 | ) | | $ | (11,296 | ) |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford U.S. Government Securities HLS Fund |
Schedule of Investments – (continued)
December 31, 2019
At December 31, 2019, the aggregate market value of TBA Sale Commitments represents (2.3)% of total net assets.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Interest Rate Swap Contracts Outstanding at December 31, 2019 | |
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) | |
3 Mo. USD LIBOR | | 2.95% Fixed | | USD | | | 6,201,000 | | | | 06/18/23 | | | Semi-Annual | | $ | — | | | $ | — | | | $ | (265,815 | ) | | $ | (265,815 | ) |
3 Mo. USD LIBOR | | 3.00% Fixed | | USD | | | 4,916,000 | | | | 04/30/25 | | | Semi-Annual | | | — | | | | (37 | ) | | | (325,096 | ) | | | (325,059 | ) |
3 Mo. USD LIBOR | | 2.79% Fixed | | USD | | | 15,286,000 | | | | 09/30/25 | | | Semi-Annual | | | — | | | | — | | | | (891,876 | ) | | | (891,876 | ) |
3 Mo. USD LIBOR | | 2.25% Fixed | | USD | | | 4,492,000 | | | | 03/21/28 | | | Semi-Annual | | | 40,758 | | | | — | | | | (168,305 | ) | | | (209,063 | ) |
3 Mo. USD LIBOR | | 2.83% Fixed | | USD | | | 2,082,000 | | | | 12/21/28 | | | Semi-Annual | | | — | | | | — | | | | (168,314 | ) | | | (168,314 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | $ | 40,758 | | | $ | (37 | ) | | $ | (1,819,406 | ) | | $ | (1,860,127 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | | | | | | | | | | | | | | | | |
Asset & Commercial Mortgage Backed Securities | | $ | 63,787,025 | | | $ | — | | | $ | 63,787,025 | | | $ | — | |
U.S. Government Agencies | | | 227,817,033 | | | | — | | | | 227,817,033 | | | | — | |
U.S. Government Securities | | | 55,366,651 | | | | — | | | | 55,366,651 | | | | — | |
Short-Term Investments | | | 26,140,693 | | | | 26,140,693 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 373,111,402 | | | $ | 26,140,693 | | | $ | 346,970,709 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Futures Contracts(2) | | $ | (588,088 | ) | | $ | (588,088 | ) | | $ | — | | | $ | — | |
Swaps - Interest Rate(2) | | | (1,860,127 | ) | | | — | | | | (1,860,127 | ) | | | — | |
TBA Sale Commitments | | | (7,340,520 | ) | | | — | | | | (7,340,520 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (9,788,735 | ) | | $ | (588,088 | ) | | $ | (9,200,647 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and 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 accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2019
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 100.2% | |
| | | | Automobiles & Components - 1.1% | |
| | 168,630 | | | Gentex Corp. | | $ | 4,886,897 | |
| | | | | | | | |
| | | | Banks - 15.2% | |
| | 443,380 | | | Bank of America Corp. | | | 15,615,844 | |
| | 135,385 | | | Citigroup, Inc. | | | 10,815,908 | |
| | 147,722 | | | JP Morgan Chase & Co. | | | 20,592,447 | |
| | 34,070 | | | M&T Bank Corp. | | | 5,783,382 | |
| | 48,750 | | | PNC Financial Services Group, Inc. | | | 7,781,962 | |
| | 122,000 | | | Truist Financial Corp. | | | 6,871,040 | |
| | | | | | | | |
| | | | | | | 67,460,583 | |
| | | | | | | | |
| | | | Capital Goods - 8.8% | |
| | 35,400 | | | Deere & Co. | | | 6,133,404 | |
| | 71,650 | | | Fortune Brands Home & Security, Inc. | | | 4,681,611 | |
| | 34,275 | | | Ingersoll-Rand plc | | | 4,555,833 | |
| | 27,210 | | | L3Harris Technologies, Inc. | | | 5,384,043 | |
| | 14,110 | | | Lockheed Martin Corp. | | | 5,494,152 | |
| | 216,670 | | | nVent Electric plc | | | 5,542,418 | |
| | 49,480 | | | United Technologies Corp. | | | 7,410,125 | |
| | | | | | | | |
| | | | | | | 39,201,586 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.7% | |
| | 76,770 | | | Lennar Corp. Class A | | | 4,282,999 | |
| | 122,860 | | | Tapestry, Inc. | | | 3,313,534 | |
| | | | | | | | |
| | | | | | | 7,596,533 | |
| | | | | | | | |
| | | | Consumer Services - 1.0% | |
| | 38,643 | | | Hilton Worldwide Holdings, Inc. | | | 4,285,895 | |
| | | | | | | | |
| | | | Diversified Financials - 2.1% | |
| | 13,955 | | | BlackRock, Inc. | | | 7,015,178 | |
| | 41,290 | | | Blackstone Group, Inc. Class A | | | 2,309,763 | |
| | | | | | | | |
| | | | | | | 9,324,941 | |
| | | | | | | | |
| | | | Energy - 6.7% | |
| | 47,370 | | | Concho Resources, Inc. | | | 4,148,191 | |
| | 200,355 | | | Exxon Mobil Corp. | | | 13,980,772 | |
| | 251,590 | | | Noble Energy, Inc. | | | 6,249,496 | |
| | 36,730 | | | Pioneer Natural Resources Co. | | | 5,559,820 | |
| | | | | | | | |
| | | | | | | 29,938,279 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.0% | |
| | 106,770 | | | US Foods Holding Corp.* | | | 4,472,595 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.2% | |
| | 100,650 | | | Mondelez International, Inc. Class A | | | 5,543,802 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 8.6% | |
| | 29,960 | | | Anthem, Inc. | | | 9,048,819 | |
| | 119,016 | | | Koninklijke Philips N.V. | | | 5,817,942 | |
| | 96,426 | | | Medtronic plc | | | 10,939,530 | |
| | 25,415 | | | UnitedHealth Group, Inc. | | | 7,471,502 | |
| | 32,170 | | | Zimmer Biomet Holdings, Inc. | | | 4,815,205 | |
| | | | | | | | |
| | | | | | | 38,092,998 | |
| | | | | | | | |
| | | | Household & Personal Products - 1.0% | |
| | 75,190 | | | Unilever N.V. | | | 4,320,417 | |
| | | | | | | | |
| | | | Insurance - 8.4% | |
| | 99,295 | | | American International Group, Inc. | | | 5,096,812 | |
| | 40,530 | | | Assurant, Inc. | | | 5,312,672 | |
| | 47,740 | | | Chubb Ltd. | | | 7,431,209 | |
| | 48,090 | | | Intact Financial Corp. | | | 5,200,260 | |
| | 122,520 | | | MetLife, Inc. | | | 6,244,844 | |
| | 107,840 | | | Progressive Corp. | | | 7,806,538 | |
| | | | | | | | |
| | | | | | | 37,092,335 | |
| | | | | | | | |
| | | | Materials - 5.2% | |
| | 55,210 | | | Celanese Corp. | | | 6,797,455 | |
| | 107,363 | | | Dow, Inc.* | | | 5,875,977 | |
| | 56,370 | | | FMC Corp. | | | 5,626,853 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 100.2% - (continued) | |
| | | | Materials - 5.2% - (continued) | |
| | 121,860 | | | Sealed Air Corp. | | $ | 4,853,684 | |
| | | | | | | | |
| | | | | | | 23,153,969 | |
| | | | | | | | |
| | | | Media & Entertainment - 1.9% | |
| | 191,440 | | | Comcast Corp. Class A | | | 8,609,057 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 9.4% | |
| | 130,460 | | | AstraZeneca plc ADR | | | 6,504,736 | |
| | 11,040 | | | Biogen, Inc.* | | | 3,275,899 | |
| | 53,730 | | | Eli Lilly & Co. | | | 7,061,734 | |
| | 58,820 | | | Merck & Co., Inc. | | | 5,349,679 | |
| | 312,950 | | | Pfizer, Inc. | | | 12,261,381 | |
| | 22,043 | | | Roche Holding AG | | | 7,164,033 | |
| | | | | | | | |
| | | | | | | 41,617,462 | |
| | | | | | | | |
| | | | Real Estate - 3.6% | |
| | 33,760 | | | Crown Castle International Corp. REIT | | | 4,798,984 | |
| | 140,790 | | | Gaming and Leisure Properties, Inc. REIT | | | 6,061,010 | |
| | 102,300 | | | Highwoods Properties, Inc. REIT | | | 5,003,493 | |
| | | | | | | | |
| | | | | | | 15,863,487 | |
| | | | | | | | |
| | | | Retailing - 2.7% | |
| | 34,650 | | | Home Depot, Inc. | | | 7,566,867 | |
| | 74,900 | | | TJX Cos., Inc. | | | 4,573,394 | |
| | | | | | | | |
| | | | | | | 12,140,261 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 6.9% | |
| | 50,440 | | | Analog Devices, Inc. | | | 5,994,290 | |
| | 230,290 | | | Intel Corp. | | | 13,782,857 | |
| | 25,960 | | | KLA Corp. | | | 4,625,293 | |
| | 119,880 | | | Micron Technology, Inc.* | | | 6,447,146 | |
| | | | | | | | |
| | | | | | | 30,849,586 | |
| | | | | | | | |
| | | | Software & Services - 1.4% | |
| | 84,020 | | | Amdocs Ltd. | | | 6,065,404 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 3.5% | | | |
| | 109,720 | | | Cisco Systems, Inc. | | | 5,262,171 | |
| | 190,930 | | | Corning, Inc. | | | 5,557,972 | |
| | 77,250 | | | NetApp, Inc. | | | 4,808,813 | |
| | | | | | | | |
| | | | | | | 15,628,956 | |
| | | | | | | | |
| | | | Telecommunication Services - 2.7% | |
| | 192,470 | | | Verizon Communications, Inc. | | | 11,817,658 | |
| | | | | | | | |
| | | | Transportation - 1.0% | | | |
| | 23,990 | | | Union Pacific Corp. | | | 4,337,152 | |
| | | | | | | | |
| | | | Utilities - 5.1% | | | |
| | 82,230 | | | Dominion Energy, Inc. | | | 6,810,289 | |
| | 40,300 | | | Entergy Corp. | | | 4,827,940 | |
| | 130,900 | | | Exelon Corp. | | | 5,967,731 | |
| | 33,490 | | | Sempra Energy | | | 5,073,065 | |
| | | | | | | | |
| | | | | | | 22,679,025 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $334,875,883) | | $ | 444,978,878 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.8% | |
| | | | Other Investment Pools & Funds - 0.8% | | | |
| | 3,316,123 | | | BlackRock Liquidity Funds, FedFund Portfolio, Institutional Class,1.58%(1) | | $ | 3,316,123 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $3,316,123) | | $ | 3,316,123 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $338,192,006) | | | 101.0 | % | | $ | 448,295,001 | |
| | | | Other Assets and Liabilities | | | (1.0 | )% | | | (4,224,438 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | �� | $ | 444,070,563 | |
| | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2019
| 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. These classifications are used for financial reporting purposes. |
| | See “Glossary” for abbreviation descriptions. |
| (1) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Valuation Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2019 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 4,886,897 | | | $ | 4,886,897 | | | $ | — | | | $ | — | |
Banks | | | 67,460,583 | | | | 67,460,583 | | | | — | | | | — | |
Capital Goods | | | 39,201,586 | | | | 39,201,586 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 7,596,533 | | | | 7,596,533 | | | | — | | | | — | |
Consumer Services | | | 4,285,895 | | | | 4,285,895 | | | | — | | | | — | |
Diversified Financials | | | 9,324,941 | | | | 9,324,941 | | | | — | | | | — | |
Energy | | | 29,938,279 | | | | 29,938,279 | | | | — | | | | — | |
Food & Staples Retailing | | | 4,472,595 | | | | 4,472,595 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 5,543,802 | | | | 5,543,802 | | | | — | | | | — | |
Health Care Equipment & Services | | | 38,092,998 | | | | 32,275,056 | | | | 5,817,942 | | | | — | |
Household & Personal Products | | | 4,320,417 | | | | 4,320,417 | | | | — | | | | — | |
Insurance | | | 37,092,335 | | | | 37,092,335 | | | | — | | | | — | |
Materials | | | 23,153,969 | | | | 23,153,969 | | | | — | | | | — | |
Media & Entertainment | | | 8,609,057 | | | | 8,609,057 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 41,617,462 | | | | 34,453,429 | | | | 7,164,033 | | | | — | |
Real Estate | | | 15,863,487 | | | | 15,863,487 | | | | — | | | | — | |
Retailing | | | 12,140,261 | | | | 12,140,261 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 30,849,586 | | | | 30,849,586 | | | | — | | | | — | |
Software & Services | | | 6,065,404 | | | | 6,065,404 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 15,628,956 | | | | 15,628,956 | | | | — | | | | — | |
Telecommunication Services | | | 11,817,658 | | | | 11,817,658 | | | | — | | | | — | |
Transportation | | | 4,337,152 | | | | 4,337,152 | | | | — | | | | — | |
Utilities | | | 22,679,025 | | | | 22,679,025 | | | | — | | | | — | |
Short-Term Investments | | | 3,316,123 | | | | 3,316,123 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 448,295,001 | | | $ | 435,313,026 | | | $ | 12,981,975 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2019, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
GLOSSARY: (abbreviations used in preceding Schedule of Investments)
| | |
| Counterparty Abbreviations: |
BCLY | | Barclays |
BMO | | Bank of Montreal |
BNP | | BNP Paribas Securities Services |
BOA | | Banc of America Securities LLC |
CBK | | Citibank NA |
CIBC | | Canadian Imperial Bank of Commerce |
CITI | | Citigroup Global Markets, Inc. |
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 |
RBC | | RBC Dominion Securities, Inc. |
SCB | | Standard Chartered Bank |
SSG | | State Street Global Markets LLC |
TDB | | Toronto-Dominion Bank |
|
| 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 |
USD | | United States Dollar |
|
| Index Abbreviations: |
ABX.HE | | Markit Asset Backed Security Home Equity |
ABX.HE.PEN | | Markit Asset Backed Security Home Equity Penultimate |
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 |
CMT | | Constant Maturity Treasury Index |
CPI | | Consumer Price Index |
ICE | | Intercontinental Exchange, Inc. |
MSCI | | Morgan Stanley Capital International |
MTA | | Monthly Treasury Average Index |
S&P | | Standard & Poor’s |
|
| Municipal Abbreviations: |
Auth | | Authority |
Dev | | Development |
Dist | | District |
GO | | General Obligation |
Rev | | Revenue |
|
| Other Abbreviations: |
ADR | | American Depositary Receipt |
CD | | Certificate of Deposit |
CLO | | Collateralized Loan Obligation |
CMO | | Collateralized Mortgage Obligation |
DDCA | | Dollars on Deposit in Custody Account |
EM | | Emerging Markets |
EURIBOR | | Euro Interbank Offered Rate |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
GNMA | | Government National Mortgage Association |
GUKG5 | | UK Government Bonds 5 Year Note Generic Bid Yield |
LIBOR | | London Interbank Offered Rate |
OTC | | Over-the-Counter |
PIK | | Payment-in-kind |
PT | | Perseroan Terbatas |
SOFR | | Secured Overnight Financing Rate |
REIT | | Real Estate Investment Trust |
TBA | | To Be Announced |
UMBS | | Uniform Mortgage-Backed Securities |
USTMMR | | U.S. Treasury Money Market Rate |
Statements of Assets and Liabilities
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at market value(1) | | $ | 2,093,146,730 | | | $ | 4,397,395,695 | | | $ | 654,285,052 | | | $ | 3,309,145,388 | | | $ | 523,819,917 | | | $ | 1,635,124,442 | | | $ | 237,261,540 | |
Cash | | | — | | | | — | | | | — | | | | 37,890 | | | | — | | | | — | | | | — | |
Due from custodian | | | — | | | | 147,924 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Cash collateral due from broker on futures contracts | | | — | | | | 2,123,100 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign currency | | | 80,298 | | | | 68,428 | | | | — | | | | — | | | | 344 | | | | — | | | | 37 | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 92,912 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities sold | | | 124,044 | | | | 5,034,863 | | | | — | | | | — | | | | 140,460 | | | | 14,148,326 | | | | 159,559 | |
Fund shares sold | | | 391,449 | | | | 14,821 | | | | 10,365 | | | | 65,011 | | | | 84,602 | | | | 204,710 | | | | 140,324 | |
Dividends and interest | | | 5,855,433 | | | | 4,652,700 | | | | 661,865 | | | | 3,032,846 | | | | 185,782 | | | | 617,758 | | | | 94,059 | |
Securities lending income | | | 2,478 | | | | 53,470 | | | | 8,651 | | | | 166 | | | | 646 | | | | 9,590 | | | | 1,452 | |
Variation margin on futures contracts | | | — | | | | 129,745 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Tax reclaims | | | 825,383 | | | | 380,980 | | | | — | | | | 699,653 | | | | 396,559 | | | | 140,112 | | | | 25,373 | |
Other assets | | | 26,918 | | | | 42,744 | | | | 21,877 | | | | 35,128 | | | | 21,281 | | | | 33,688 | | | | 17,189 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 2,100,452,733 | | | | 4,410,137,382 | | | | 654,987,810 | | | | 3,313,016,082 | | | | 524,649,591 | | | | 1,650,278,626 | | | | 237,699,533 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligation to return securities lending collateral | | | 1,296,480 | | | | 36,904,443 | | | | — | | | | — | | | | 2,417,250 | | | | 34,985,906 | | | | 2,978,534 | |
Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased | | | — | | | | 10,357,447 | | | | — | | | | 180,460 | | | | — | | | | 18,444,489 | | | | 1,006,920 | |
Fund shares redeemed | | | 1,071,759 | | | | 2,213,554 | | | | 584,678 | | | | 1,251,694 | | | | 2,354,576 | | | | 1,152,091 | | | | 250,338 | |
Investment management fees | | | 1,048,760 | | | | 2,361,427 | | | | 402,030 | | | | 1,809,409 | | | | 326,491 | | | | 813,980 | | | | 166,755 | |
Transfer agent fees | | | 449 | | | | 693 | | | | 441 | | | | 496 | | | | 461 | | | | 662 | | | | 455 | |
Accounting services fees | | | 31,755 | | | | 63,295 | | | | 7,678 | | | | 38,940 | | | | 6,111 | | | | 24,165 | | | | 2,747 | |
Board of Directors’ fees | | | 4,477 | | | | 9,683 | | | | 1,374 | | | | 6,968 | | | | 1,089 | | | | 3,483 | | | | 616 | |
Variation margin on futures contracts | | | 9,480 | | | | 1 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign taxes | | | — | | | | 58,435 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distribution fees | | | 10,175 | | | | 21,037 | | | | 3,286 | | | | 16,207 | | | | 3,348 | | | | 8,456 | | | | 1,748 | |
Accrued expenses | | | 133,097 | | | | 271,738 | | | | 75,514 | | | | 155,684 | | | | 91,462 | | | | 171,847 | | | | 39,695 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 3,606,432 | | | | 52,261,753 | | | | 1,075,001 | | | | 3,459,858 | | | | 5,200,788 | | | | 55,605,079 | | | | 4,447,808 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,096,846,301 | | | $ | 4,357,875,629 | | | $ | 653,912,809 | | | $ | 3,309,556,224 | | | $ | 519,448,803 | | | $ | 1,594,673,547 | | | $ | 233,251,725 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital stock andpaid-in-capital | | $ | 1,531,832,256 | | | $ | 3,473,631,418 | | | $ | 376,769,347 | | | $ | 2,003,945,904 | | | $ | 326,721,708 | | | $ | 1,214,184,400 | | | $ | 139,230,606 | |
Distributable earnings (loss) | | | 565,014,045 | | | | 884,244,211 | | | | 277,143,462 | | | | 1,305,610,320 | | | | 192,727,095 | | | | 380,489,147 | | | | 94,021,119 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,096,846,301 | | | $ | 4,357,875,629 | | | $ | 653,912,809 | | | $ | 3,309,556,224 | | | $ | 519,448,803 | | | $ | 1,594,673,547 | | | $ | 233,251,725 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares authorized | | | 9,700,000,000 | | | | 5,450,000,000 | | �� | | 3,500,000,000 | | | | 4,200,000,000 | | | | 3,600,000,000 | | | | 900,000,000 | | | | 800,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 30.27 | | | $ | 46.05 | | | $ | 15.97 | | | $ | 22.08 | | | $ | 27.86 | | | $ | 35.44 | | | $ | 23.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 61,111,423 | | | | 83,556,594 | | | | 35,929,385 | | | | 132,062,066 | | | | 15,732,540 | | | | 39,208,158 | | | | 8,079,636 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 1,849,582,088 | | | $ | 3,847,849,848 | | | $ | 573,688,350 | | | $ | 2,916,542,439 | | | $ | 438,287,809 | | | $ | 1,389,571,255 | | | $ | 191,260,061 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 30.80 | | | $ | 45.24 | | | $ | 15.76 | | | $ | 21.96 | | | $ | 27.53 | | | $ | 33.25 | | | $ | 22.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 8,027,361 | | | | 10,499,283 | | | | 5,090,736 | | | | 17,898,220 | | | | 2,947,731 | | | | 4,588,742 | | | | 1,898,154 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 247,264,213 | | | $ | 474,982,324 | | | $ | 80,224,459 | | | $ | 393,013,785 | | | $ | 81,160,994 | | | $ | 152,577,378 | | | $ | 41,991,664 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IC: Net asset value per share | | $ | — | | | $ | 45.45 | | | $ | — | | | $ | — | | | $ | — | | | $ | 34.08 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | — | | | | 770,990 | | | | — | | | | — | | | | — | | | | 1,541,368 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | — | | | $ | 35,043,457 | | | $ | — | | | $ | — | | | $ | — | | | $ | 52,524,914 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of investments | | $ | 1,609,681,962 | | | $ | 3,666,315,746 | | | $ | 424,376,165 | | | $ | 2,158,823,598 | | | $ | 371,578,059 | | | $ | 1,367,659,485 | | | $ | 181,443,090 | |
Cost of foreign currency | | $ | 79,840 | | | $ | 68,432 | | | $ | — | | | $ | — | | | $ | 344 | | | $ | — | | | $ | 36 | |
| | | | | | | |
(1) Includes Investment in securities on loan, at market value | | $ | 1,259,139 | | | $ | 36,073,339 | | | $ | — | | | $ | — | | | $ | 2,354,301 | | | $ | 34,718,346 | | | $ | 2,857,063 | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
High Yield
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | | | Hartford
MidCap
HLS Fund | | | Hartford
MidCap
Growth
HLS Fund | | | Hartford
MidCap
Value
HLS Fund | | | Hartford
Small Cap
Growth
HLS Fund | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at market value(1) | | $ | 248,086,565 | | | $ | 1,229,535,433 | | | $ | 2,098,757,938 | | | $ | 103,035,449 | | | $ | 323,772,707 | | | $ | 1,329,805,608 | |
Cash | | | — | | | | — | | | | 11,284,224 | | | | — | | | | 10,399 | | | | 4,391,856 | |
Foreign currency | | | — | | | | 50,262 | | | | — | | | | — | | | | — | | | | — | |
Receivables: | | | 80,349 | | | | 6,194,083 | | | | 22,745,824 | | | | — | | | | 799,237 | | | | 18,744,822 | |
Investment securities sold | | | | | | | | | | | | | | | 21,957 | | | | 343 | | | | 331,543 | |
Fund shares sold | | | 34,104 | | | | 1,354,707 | | | | 262,935 | | | | 32,639 | | | | 425,656 | | | | 805,910 | |
Dividends and interest | | | 4,016,275 | | | | 882,939 | | | | 1,877,724 | | | | 310 | | | | 1,312 | | | | 18,955 | |
Securities lending income | | | — | | | | 1,912 | | | | 2,415 | | | | | | | | | | | | | |
Variation margin on centrally cleared swap contracts | | | 227,425 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Tax reclaims | | | 522 | | | | 2,571,939 | | | | — | | | | — | | | | — | | | | — | |
Other assets | | | 19,486 | | | | 26,551 | | | | 28,146 | | | | 20,458 | | | | 19,704 | | | | 27,851 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 252,464,726 | | | | 1,240,617,826 | | | | 2,134,959,206 | | | | 103,110,813 | | | | 325,029,358 | | | | 1,354,126,545 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | | 40,031 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Obligation to return securities lending collateral | | | — | | | | 7,572,918 | | | | 9,784,951 | | | | 699,591 | | | | 3,401,914 | | | | 12,322,305 | |
Payables: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased | | | 887,550 | | | | 2,496,586 | | | | — | | | | — | | | | 396,832 | | | | 334,699 | |
Fund shares redeemed | | | 54,802 | | | | 972,622 | | | | 23,670,166 | | | | 43,187 | | | | 138,680 | | | | 5,551,087 | |
Investment management fees | | | 148,550 | | | | 717,802 | | | | 1,197,446 | | | | 68,815 | | | | 204,423 | | | | 684,247 | |
Transfer agent fees | | | 428 | | | | 585 | | | | 767 | | | | 409 | | | | 416 | | | | 627 | |
Accounting services fees | | | 2,971 | | | | 14,414 | | | | 25,158 | | | | 1,204 | | | | 3,766 | | | | 20,273 | |
Board of Directors’ fees | | | 553 | | | | 2,617 | | | | 4,536 | | | | 207 | | | | 686 | | | | 2,932 | |
Distribution fees | | | 2,409 | | | | 5,608 | | | | 2,267 | | | | 636 | | | | 3,007 | | | | 15,985 | |
Accrued expenses | | | 61,233 | | | | 149,710 | | | | 68,265 | | | | 32,488 | | | | 49,942 | | | | 74,478 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,198,527 | | | | 11,932,862 | | | | 34,753,556 | | | | 846,537 | | | | 4,199,666 | | | | 19,006,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 251,266,199 | | | $ | 1,228,684,964 | | | $ | 2,100,205,650 | | | $ | 102,264,276 | | | $ | 320,829,692 | | | $ | 1,335,119,912 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital stock andpaid-in-capital | | $ | 252,932,549 | | | $ | 1,073,593,493 | | | $ | 1,393,276,968 | | | $ | 79,699,737 | | | $ | 246,013,118 | | | $ | 1,030,709,139 | |
Distributable earnings (loss) | | | (1,666,350 | ) | | | 155,091,471 | | | | 706,928,682 | | | | 22,564,539 | | | | 74,816,574 | | | | 304,410,773 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 251,266,199 | | | $ | 1,228,684,964 | | | $ | 2,100,205,650 | | | $ | 102,264,276 | | | $ | 320,829,692 | | | $ | 1,335,119,912 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares authorized | | | 2,800,000,000 | | | | 2,825,000,000 | | | | 2,600,000,000 | | | | 900,000,000 | | | | 1,200,000,000 | | | | 700,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 8.04 | | | $ | 16.56 | | | $ | 38.17 | | | $ | 8.17 | | | $ | 11.19 | | | $ | 29.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 23,953,808 | | | | 65,992,453 | | | | 53,586,100 | | | | 10,627,009 | | | | 22,150,576 | | | | 32,103,097 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 192,531,755 | | | $ | 1,093,030,024 | | | $ | 2,045,156,417 | | | $ | 86,859,376 | | | $ | 247,804,244 | | | $ | 954,063,016 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 7.89 | | | $ | 16.80 | | | $ | 36.90 | | | $ | 8.11 | | | $ | 11.12 | | | $ | 28.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 7,444,155 | | | | 8,075,537 | | | | 1,491,944 | | | | 1,899,579 | | | | 6,569,004 | | | | 13,355,890 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 58,734,444 | | | $ | 135,654,940 | | | $ | 55,049,233 | | | $ | 15,404,900 | | | $ | 73,025,448 | | | $ | 381,056,896 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of investments | | $ | 243,995,161 | | | $ | 1,064,627,473 | | | $ | 1,529,440,940 | | | $ | 85,383,022 | | | $ | 267,336,015 | | | $ | 1,069,814,786 | |
Cost of foreign currency | | $ | — | | | $ | 49,994 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | |
(1) Includes Investment in securities on loan, at market value | | $ | — | | | $ | 7,283,858 | | | $ | 9,661,255 | | | $ | 692,811 | | | $ | 3,231,912 | | | $ | 13,788,323 | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
Small
Company
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 | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at market value(1) | | $ | 634,225,923 | | | $ | 1,516,602,172 | | | $ | 2,768,583,828 | | | $ | 457,278,227 | | | $ | 373,111,402 | | | $ | 448,295,001 | |
Cash | | | 29,970 | | | | — | | | | 279,004 | | | | — | | | | — | | | | — | |
Foreign currency | | | 5 | | | | — | | | | 103,985 | | | | — | | | | — | | | | 26,013 | |
Unrealized appreciation on OTC swap contracts | | | — | | | | — | | | | 2,949,471 | | | | — | | | | — | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | — | | | | 234,776 | | | | — | | | | — | | | | — | |
Receivables: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities sold | | | 11,529,884 | | | | — | | | | 219,561,132 | | | | 16,875 | | | | 10,511,083 | | | | — | |
Fund shares sold | | | 1,025 | | | | 8,131 | | | | 120,884 | | | | 184,633 | | | | 27,922 | | | | 26,316 | |
Dividends and interest | | | 270,792 | | | | 1,698,501 | | | | 11,828,456 | | | | 1,140,440 | | | | 1,265,055 | | | | 290,291 | |
Securities lending income | | | 2,175 | | | | 55,573 | | | | 6,417 | | | | 243 | | | | — | | | | — | |
Variation margin on centrally cleared swap contracts | | | — | | | | — | | | | 548,553 | | | | — | | | | — | | | | — | |
Tax reclaims | | | — | | | | 646,761 | | | | 39,569 | | | | 1,946 | | | | — | | | | 201,506 | |
OTC swap contracts premiums paid | | | — | | | | — | | | | 1,485,362 | | | | — | | | | — | | | | — | |
Other assets | | | 23,262 | | | | 23,843 | | | | 41,236 | | | | 20,828 | | | | 70,920 | | | | 23,495 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 646,083,036 | | | | 1,519,034,981 | | | | 3,005,782,673 | | | | 458,643,192 | | | | 384,986,382 | | | | 448,862,622 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | | — | | | | — | | | | 1,123,073 | | | | — | | | | — | | | | — | |
Due to custodian | | | — | | | | — | | | | — | | | | — | | | | 45,293 | | | | — | |
Obligation to return securities lending collateral | | | 8,609,022 | | | | — | | | | 7,704,490 | | | | 7,408,300 | | | | — | | | | — | |
Unrealized depreciation on OTC swap contracts | | | — | | | | — | | | | 1,450,566 | | | | — | | | | — | | | | — | |
Cash collateral due to broker on futures contracts | | | — | | | | — | | | | 325,000 | | | | — | | | | — | | | | — | |
TBA sale commitments, at market value | | | — | | | | — | | | | 72,160,904 | | | | — | | | | 7,340,520 | | | | — | |
Unfunded loan commitments | | | — | | | | — | | | | 41,385 | | | | — | | | | — | | | | — | |
Payables: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased | | | 2,522,186 | | | | — | | | | 827,249,000 | | | | — | | | | 55,807,946 | | | | 445,149 | |
Fund shares redeemed | | | 10,125,403 | | | | 8,694,153 | | | | 833,305 | | | | 278,722 | | | | 112,185 | | | | 4,032,166 | |
Investment management fees | | | 391,598 | | | | 611,457 | | | | 830,728 | | | | 153,590 | | | | 123,397 | | | | 251,360 | |
Transfer agent fees | | | 452 | | | | 441 | | | | 489 | | | | 466 | | | | 430 | | | | 462 | |
Accounting services fees | | | 9,593 | | | | 17,867 | | | | 31,743 | | | | 5,376 | | | | 3,839 | | | | 5,257 | |
Board of Directors’ fees | | | 1,483 | | | | 3,127 | | | | 4,551 | | | | 1,017 | | | | 731 | | | | 959 | |
Variation margin on centrally cleared swap contracts | | | — | | | | — | | | | — | | | | — | | | | 32,795 | | | | — | |
Variation margin on futures contracts | | | — | | | | — | | | | 284,996 | | | | — | | | | 55,157 | | | | — | |
Distribution fees | | | 2,139 | | | | 5,535 | | | | 8,790 | | | | 2,350 | | | | 2,273 | | | | 2,553 | |
Accrued expenses | | | 88,006 | | | | 108,266 | | | | 169,697 | | | | 61,548 | | | | 77,367 | | | | 54,153 | |
OTC swap contracts premiums received | | | — | | | | — | | | | 6,043,812 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 21,749,882 | | | | 9,440,846 | | | | 918,262,529 | | | | 7,911,369 | | | | 63,601,933 | | | | 4,792,059 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 624,333,154 | | | $ | 1,509,594,135 | | | $ | 2,087,520,144 | | | $ | 450,731,823 | | | $ | 321,384,449 | | | $ | 444,070,563 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital stock andpaid-in-capital | | $ | 455,870,343 | | | $ | 922,026,504 | | | $ | 1,960,576,886 | | | $ | 439,656,056 | | | $ | 339,856,705 | | | $ | 302,745,328 | |
Distributable earnings (loss) | | | 168,462,811 | | | | 587,567,631 | | | | 126,943,258 | | | | 11,075,767 | | | | (18,472,256 | ) | | | 141,325,235 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 624,333,154 | | | $ | 1,509,594,135 | | | $ | 2,087,520,144 | | | $ | 450,731,823 | | | $ | 321,384,449 | | | $ | 444,070,563 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares authorized | | | 1,500,000,000 | | | | 4,200,000,000 | | | | 5,000,000,000 | | | | 14,000,000,000 | | | | 700,000,000 | | | | 800,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 20.45 | | | $ | 92.58 | | | $ | 11.44 | | | $ | 10.19 | | | $ | 10.31 | | | $ | 14.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 27,995,328 | | | | 14,858,863 | | | | 163,753,048 | | | | 38,639,573 | | | | 25,783,227 | | | | 26,603,583 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 572,642,431 | | | $ | 1,375,642,640 | | | $ | 1,873,181,714 | | | $ | 393,589,633 | | | $ | 265,860,329 | | | $ | 382,126,758 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 18.44 | | | $ | 92.57 | | | $ | 11.38 | | | $ | 10.18 | | | $ | 10.30 | | | $ | 14.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 2,803,763 | | | | 1,447,066 | | | | 18,838,969 | | | | 5,612,728 | | | | 5,389,184 | | | | 4,318,530 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 51,690,723 | | | $ | 133,951,495 | | | $ | 214,338,430 | | | $ | 57,142,190 | | | $ | 55,524,120 | | | $ | 61,943,805 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of investments | | $ | 526,575,560 | | | $ | 1,021,186,871 | | | $ | 2,716,681,829 | | | $ | 456,146,971 | | | $ | 369,846,534 | | | $ | 338,192,006 | |
Cost of foreign currency | | $ | 5 | | | $ | — | | | $ | 105,163 | | | $ | — | | | $ | — | | | $ | 26,049 | |
Proceeds of TBA sale commitments | | $ | — | | | $ | — | | | $ | 72,079,025 | | | $ | — | | | $ | 7,329,224 | | | $ | — | |
| | | | | | |
(1) Includes Investment in securities on loan, at market value | | $ | 8,365,526 | | | $ | — | | | $ | 7,460,798 | | | $ | 7,099,310 | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
For the Year Ended December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | $ | 27,509,943 | | | $ | 74,121,784 | | | $ | 9,784,846 | | | $ | 80,198,109 | | | $ | 6,105,064 | | | $ | 5,584,572 | | | $ | 2,249,989 | |
Interest | | | 22,501,249 | | | | 1,595,673 | | | | 94,481 | | | | 1,155,700 | | | | 114,177 | | | | 914,646 | | | | 178,144 | |
Securities lending | | | 252,427 | | | | 265,057 | | | | 110,112 | | | | 196,485 | | | | 56,952 | | | | 199,181 | | | | 62,387 | |
Less: Foreign tax withheld | | | (407,984 | ) | | | (892,612 | ) | | | — | | | | (802,011 | ) | | | (244,608 | ) | | | (22,712 | ) | | | (40,379 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income, net | | | 49,855,635 | | | | 75,089,902 | | | | 9,989,439 | | | | 80,748,283 | | | | 6,031,585 | | | | 6,675,687 | | | | 2,450,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fees | | | 12,786,411 | | | | 27,851,982 | | | | 4,584,984 | | | | 20,757,445 | | | | 3,762,027 | | | | 9,557,138 | | | | 2,045,917 | |
Administrative services fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IC | | | — | | | | 81,251 | | | | — | | | | — | | | | — | | | | 117,935 | | | | — | |
Transfer agent fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | 4,755 | | | | 7,304 | | | | 4,712 | | | | 5,271 | | | | 4,700 | | | | 7,078 | | | | 4,634 | |
Class IB | | | 634 | | | | 897 | | | | 648 | | | | 715 | | | | 881 | | | | 787 | | | | 917 | |
Class IC | | | — | | | | 62 | | | | — | | | | — | | | | — | | | | 243 | | | | — | |
Distribution fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IB | | | 601,769 | | | | 1,174,948 | | | | 188,679 | | | | 951,183 | | | | 198,192 | | | | 382,760 | | | | 97,710 | |
Class IC | | | — | | | | 81,251 | | | | — | | | | — | | | | — | | | | 117,935 | | | | — | |
Custodian fees | | | 20,755 | | | | 41,577 | | | | 7,922 | | | | 19,207 | | | | 19,189 | | | | 3,909 | | | | 12,844 | |
Registration and filing fees | | | 33,964 | | | | 45,303 | | | | 32,809 | | | | 34,041 | | | | 32,809 | | | | 47,783 | | | | 32,371 | |
Accounting services fees | | | 368,286 | | | | 746,335 | | | | 87,318 | | | | 446,136 | | | | 70,302 | | | | 283,714 | | | | 33,820 | |
Board of Directors’ fees | | | 65,354 | | | | 137,938 | | | | 19,860 | | | | 101,829 | | | | 15,973 | | | | 50,351 | | | | 7,901 | |
Audit fees | | | 30,894 | | | | 56,210 | | | | 21,013 | | | | 21,457 | | | | 36,993 | | | | 45,059 | | | | 26,252 | |
Other expenses | | | 226,411 | | | | 391,993 | | | | 116,240 | | | | 299,422 | | | | 89,112 | | | | 217,001 | | | | 22,925 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses (before waivers, reimbursements and fees paid indirectly) | | | 14,139,233 | | | | 30,617,051 | | | | 5,064,185 | | | | 22,636,706 | | | | 4,230,178 | | | | 10,831,693 | | | | 2,285,291 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management fee waivers | | | (613,810 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Commission recapture | | | (31,930 | ) | | | (24,615 | ) | | | (1,756 | ) | | | (18,468 | ) | | | (1,602 | ) | | | (6,780 | ) | | | (1,431 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total waivers, reimbursements and fees paid indirectly | | | (645,740 | ) | | | (24,615 | ) | | | (1,756 | ) | | | (18,468 | ) | | | (1,602 | ) | | | (6,780 | ) | | | (1,431 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses, net | | | 13,493,493 | | | | 30,592,436 | | | | 5,062,429 | | | | 22,618,238 | | | | 4,228,576 | | | | 10,824,913 | | | | 2,283,860 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | 36,362,142 | | | | 44,497,466 | | | | 4,927,010 | | | | 58,130,045 | | | | 1,803,009 | | | | (4,149,226 | ) | | | 166,281 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 88,220,800 | | | | 201,705,816 | | | | 49,562,302 | | | | 152,232,935 | | | | 39,490,050 | | | | 124,345,807 | | | | 41,453,427 | |
Less: Foreign taxes paid on realized capital gains | | | — | | | | (11,544 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on futures contracts | | | 688,365 | | | | 11,906,527 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 206,918 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | (18,868 | ) | | | (63,729 | ) | | | — | | | | 12,533 | | | | (16,604 | ) | | | 12,828 | | | | (11,470 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 88,890,297 | | | | 213,743,988 | | | | 49,562,302 | | | | 152,245,468 | | | | 39,473,446 | | | | 124,358,635 | | | | 41,441,957 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 292,627,098 | | | | 907,130,900 | | | | 127,301,596 | | | | 585,892,351 | | | | 97,750,659 | | | | 286,567,387 | | | | 33,386,503 | |
Net unrealized appreciation (depreciation) of futures contracts | | | (326,284 | ) | | | 2,474,753 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | 438,494 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 17,550 | | | | 33,428 | | | | — | | | | (92 | ) | | | 9,856 | | | | 3,637 | | | | 332 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 292,318,364 | | | | 910,077,575 | | | | 127,301,596 | | | | 585,892,259 | | | | 97,760,515 | | | | 286,571,024 | | | | 33,386,835 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 381,208,661 | | | | 1,123,821,563 | | | | 176,863,898 | | | | 738,137,727 | | | | 137,233,961 | | | | 410,929,659 | | | | 74,828,792 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 417,570,803 | | | $ | 1,168,319,029 | | | $ | 181,790,908 | | | $ | 796,267,772 | | | $ | 139,036,970 | | | $ | 406,780,433 | | | $ | 74,995,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
* Includes change in unrealized appreciation (depreciation) on deferred capital gains tax of | | $ | — | | | $ | (58,435 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
High Yield
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | | | Hartford
MidCap
HLS Fund | | | Hartford
MidCap
Growth
HLS Fund | | | Hartford
MidCap
Value
HLS Fund | | | Hartford
Small Cap
Growth
HLS Fund | |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | $ | 64,927 | | | $ | 32,318,708 | | | $ | 16,964,716 | | | $ | 471,923 | | | $ | 5,639,682 | | | $ | 8,633,143 | |
Interest | | | 15,628,712 | | | | 499,087 | | | | 46,660 | | | | 31,960 | | | | 89,636 | | | | 377,302 | |
Securities lending | | | — | | | | 359,582 | | | | 194,325 | | | | 20,823 | | | | 8,849 | | | | 564,287 | |
Less: Foreign tax withheld | | | — | | | | (3,497,636 | ) | | | (64,652 | ) | | | — | | | | (40,220 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income, net | | | 15,693,639 | | | | 29,679,741 | | | | 17,141,049 | | | | 524,706 | | | | 5,697,947 | | | | 9,574,732 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fees | | | 1,781,859 | | | | 8,346,731 | | | | 13,990,951 | | | | 746,229 | | | | 2,457,588 | | | | 7,729,686 | |
Transfer agent fees | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | 3,993 | | | | 6,166 | | | | 8,216 | | | | 4,250 | | | | 3,914 | | | | 5,183 | |
Class IB | | | 1,225 | | | | 762 | | | | 216 | | | | 742 | | | | 1,173 | | | | 2,028 | |
Distribution fees | | | | | | | | | | | | | | | | | | | | | | | | |
Class IB | | | 149,470 | | | | 328,931 | | | | 134,397 | | | | 34,646 | | | | 177,041 | | | | 894,540 | |
Custodian fees | | | 8,649 | | | | 47,397 | | | | 23,095 | | | | 4,958 | | | | 8,922 | | | | 14,983 | |
Registration and filing fees | | | 31,809 | | | | 33,906 | | | | 37,604 | | | | 36,728 | | | | 32,596 | | | | 36,708 | |
Accounting services fees | | | 35,637 | | | | 167,367 | | | | 293,797 | | | | 13,059 | | | | 43,008 | | | | 228,890 | |
Board of Directors’ fees | | | 8,164 | | | | 37,394 | | | | 66,523 | | | | 2,934 | | | | 9,721 | | | | 40,426 | |
Audit fees | | | 30,619 | | | | 46,608 | | | | 21,092 | | | | 21,473 | | | | 21,168 | | | | 21,416 | |
Other expenses | | | 63,308 | | | | 184,935 | | | | 125,149 | | | | 25,182 | | | | 50,605 | | | | 117,504 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses (before waivers, reimbursements and fees paid indirectly) | | | 2,114,733 | | | | 9,200,197 | | | | 14,701,040 | | | | 890,201 | | | | 2,805,736 | | | | 9,091,364 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Management fee waivers | | | — | | | | — | | | | — | | | | — | | | | (122,879 | ) | | | — | |
Commission recapture | | | — | | | | (9,702 | ) | | | (13,428 | ) | | | (279 | ) | | | (8,969 | ) | | | (19,495 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total waivers, reimbursements and fees paid indirectly | | | — | | | | (9,702 | ) | | | (13,428 | ) | | | (279 | ) | | | (131,848 | ) | | | (19,495 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses, net | | | 2,114,733 | | | | 9,190,495 | | | | 14,687,612 | | | | 889,922 | | | | 2,673,888 | | | | 9,071,869 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | 13,578,906 | | | | 20,489,246 | | | | 2,453,437 | | | | (365,216 | ) | | | 3,024,059 | | | | 502,863 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | (6,543,786 | ) | | | (25,575,550 | ) | | | 144,617,790 | | | | 5,337,071 | | | | 19,109,222 | | | | 44,683,578 | |
Net realized gain (loss) on swap contracts | | | (54,937 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency contracts | | | 281,939 | | | | (16,254 | ) | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | 1,237 | | | | (294,280 | ) | | | 4,794 | | | | — | | | | 1,915 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | (6,315,547 | ) | | | (25,886,084 | ) | | | 144,622,584 | | | | 5,337,071 | | | | 19,111,137 | | | | 44,683,578 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 28,053,727 | | | | 284,979,402 | | | | 428,817,893 | | | | 24,903,853 | | | | 60,456,988 | | | | 335,112,204 | |
Net unrealized appreciation (depreciation) of swap contracts | | | 122,308 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | (55,881 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 943 | | | | 55,446 | | | | — | | | | — | | | | (40 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 28,121,097 | | | | 285,034,848 | | | | 428,817,893 | | | | 24,903,853 | | | | 60,456,948 | | | | 335,112,204 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 21,805,550 | | | | 259,148,764 | | | | 573,440,477 | | | | 30,240,924 | | | | 79,568,085 | | | | 379,795,782 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 35,384,456 | | | $ | 279,638,010 | | | $ | 575,893,914 | | | $ | 29,875,708 | | | $ | 82,592,144 | | | $ | 380,298,645 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
Small
Company
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 | |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | $ | 3,056,425 | | | $ | 30,394,675 | | | $ | 81,944 | | | $ | — | | | $ | — | | | $ | 10,762,018 | |
Interest | | | 250,062 | | | | 449,874 | | | | 76,993,260 | | | | 12,810,133 | | | | 8,559,481 | | | | 103,194 | |
Securities lending | | | 59,327 | | | | 55,573 | | | | 56,184 | | | | 12,083 | | | | 7,700 | | | | 41,198 | |
Less: Foreign tax withheld | | | (4,849 | ) | | | (125,948 | ) | | | — | | | | — | | | | — | | | | (105,147 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income, net | | | 3,360,965 | | | | 30,774,174 | | | | 77,131,388 | | | | 12,822,216 | | | | 8,567,181 | | | | 10,801,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fees | | | 4,452,378 | | | | 7,025,084 | | | | 9,886,054 | | | | 1,928,688 | | | | 1,494,841 | | | | 2,918,601 | |
Transfer agent fees | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | 4,977 | | | | 4,865 | | | | 5,196 | | | | 4,841 | | | | 4,315 | | | | 4,762 | |
Class IB | | | 462 | | | | 479 | | | | 597 | | | | 700 | | | | 901 | | | | 778 | |
Distribution fees | | | | | | | | | | | | | | | | | | | | | | | | |
Class IB | | | 128,074 | | | | 328,072 | | | | 541,118 | | | | 152,240 | | | | 143,508 | | | | 152,956 | |
Custodian fees | | | 9,640 | | | | 10,876 | | | | 40,867 | | | | 9,272 | | | | 8,059 | | | | 7,189 | |
Registration and filing fees | | | 35,463 | | | | 33,546 | | | | 33,751 | | | | 33,538 | | | | 35,327 | | | | 33,771 | |
Accounting services fees | | | 108,730 | | | | 204,947 | | | | 377,942 | | | | 67,504 | | | | 46,506 | | | | 61,008 | |
Board of Directors’ fees | | | 19,273 | | | | 46,892 | | | | 67,427 | | | | 15,670 | | | | 10,670 | | | | 13,889 | |
Audit fees | | | 41,365 | | | | 30,725 | | | | 48,904 | | | | 30,603 | | | | 44,383 | | | | 21,241 | |
Other expenses | | | 99,473 | | | | 160,578 | | | | 267,956 | | | | 78,898 | | | | 59,001 | | | | 71,797 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses (before waivers, reimbursements and fees paid indirectly) | | | 4,899,835 | | | | 7,846,064 | | | | 11,269,812 | | | | 2,321,954 | | | | 1,847,511 | | | | 3,285,992 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Commission recapture | | | (10,035 | ) | | | (2,903 | ) | | | — | | | | — | | | | — | | | | (3,317 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total waivers, reimbursements and fees paid indirectly | | | (10,035 | ) | | | (2,903 | ) | | | — | | | | — | | | | — | | | | (3,317 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses, net | | | 4,889,800 | | | | 7,843,161 | | | | 11,269,812 | | | | 2,321,954 | | | | 1,847,511 | | | | 3,282,675 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | (1,528,835 | ) | | | 22,931,013 | | | | 65,861,576 | | | | 10,500,262 | | | | 6,719,670 | | | | 7,518,588 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 64,291,332 | | | | 98,284,076 | | | | 43,658,314 | | | | 294,254 | | | | 2,584,171 | | | | 32,466,142 | |
Net realized gain (loss) on purchased options contracts | | | — | | | | — | | | | (688,017 | ) | | | — | | | | — | | | | — | |
Net realized gain (loss) on futures contracts | | | — | | | | — | | | | 19,971,254 | | | | — | | | | 6,101,592 | | | | — | |
Net realized gain (loss) on written options contracts | | | — | | | | — | | | | 810,184 | | | | — | | | | — | | | | — | |
Net realized gain (loss) on swap contracts | | | — | | | | — | | | | (6,444,783 | ) | | | — | | | | (464,689 | ) | | | — | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | — | | | | 1,753,329 | | | | — | | | | — | | | | — | |
Net realized gain (loss) on other foreign currency transactions | | | (5,992 | ) | | | (21,429 | ) | | | (68,460 | ) | | | — | | | | — | | | | (1,728 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 64,285,340 | | | | 98,262,647 | | | | 58,991,821 | | | | 294,254 | | | | 8,221,074 | | | | 32,464,414 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions: | |
|
|
| | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments | | | 120,697,580 | | | | 269,913,296 | | | | 92,180,697 | | | | 2,390,882 | | | | 5,716,614 | | | | 66,130,114 | |
Net unrealized appreciation (depreciation) of purchased options contracts | | | — | | | | — | | | | 1,311,727 | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of futures contracts | | | — | | | | — | | | | (7,448,465 | ) | | | — | | | | (2,220,130 | ) | | | — | |
Net unrealized appreciation (depreciation) of written options contracts | | | — | | | | — | | | | 224,937 | | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of swap contracts | | | — | | | | — | | | | 473,661 | | | | — | | | | (1,514,095 | ) | | | — | |
Net unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | — | | | | (969,546 | ) | | | — | | | | — | | | | — | |
Net unrealized appreciation (depreciation) of translation of other assets and liabilities in foreign currencies | | | 163 | | | | 25,677 | | | | 31,635 | | | | — | | | | — | | | | 5,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 120,697,743 | | | | 269,938,973 | | | | 85,804,646 | | | | 2,390,882 | | | | 1,982,389 | | | | 66,135,187 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 184,983,083 | | | | 368,201,620 | | | | 144,796,467 | | | | 2,685,136 | | | | 10,203,463 | | | | 98,599,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 183,454,248 | | | $ | 391,132,633 | | | $ | 210,658,043 | | | $ | 13,185,398 | | | $ | 16,923,133 | | | $ | 106,118,189 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford Balanced
HLS Fund | | | Hartford Capital Appreciation
HLS Fund | | | Hartford Disciplined Equity
HLS Fund | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | |
Operations: | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 36,362,142 | | | $ | 42,139,010 | | | $ | 44,497,466 | | | $ | 47,501,815 | | | $ | 4,927,010 | | | $ | 4,594,725 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 88,890,297 | | | | 182,656,507 | | | | 213,743,988 | | | | 503,833,446 | | | | 49,562,302 | | | | 72,774,676 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 292,318,364 | | | | (330,783,578 | ) | | | 910,077,575 | | | | (829,651,424 | ) | | | 127,301,596 | | | | (83,373,336 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 417,570,803 | | | | (105,988,061 | ) | | | 1,168,319,029 | | | | (278,316,163 | ) | | | 181,790,908 | | | | (6,003,935 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | |
Class IA | | | (185,511,739 | ) | | | (123,979,008 | ) | | | (453,254,297 | ) | | | (454,718,791 | ) | | | (66,982,886 | ) | | | (59,926,122 | ) |
Class IB | | | (23,789,456 | ) | | | (15,722,695 | ) | | | (55,760,662 | ) | | | (55,433,183 | ) | | | (9,168,659 | ) | | | (8,120,313 | ) |
Class IC | | | — | | | | — | | | | (3,992,375 | ) | | | (3,306,481 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (209,301,195 | ) | | | (139,701,703 | ) | | | (513,007,334 | ) | | | (513,458,455 | ) | | | (76,151,545 | ) | | | (68,046,435 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | |
Sold | | | 13,809,419 | | | | 17,623,057 | | | | 27,135,599 | | | | 41,412,513 | | | | 11,880,527 | | | | 8,267,277 | |
Issued on reinvestment of distributions | | | 209,301,195 | | | | 139,701,703 | | | | 513,007,334 | | | | 513,458,455 | | | | 76,151,545 | | | | 68,046,434 | |
Redeemed | | | (282,083,299 | ) | | | (337,066,656 | ) | | | (840,778,982 | ) | | | (817,092,381 | ) | | | (109,938,872 | ) | | | (129,497,572 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (58,972,685 | ) | | | (179,741,896 | ) | | | (300,636,049 | ) | | | (262,221,413 | ) | | | (21,906,800 | ) | | | (53,183,861 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 149,296,923 | | | | (425,431,660 | ) | | | 354,675,646 | | | | (1,053,996,031 | ) | | | 83,732,563 | | | | (127,234,231 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | |
Beginning of period | | | 1,947,549,378 | | | | 2,372,981,038 | | | | 4,003,199,983 | | | | 5,057,196,014 | | | | 570,180,246 | | | | 697,414,477 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 2,096,846,301 | | | $ | 1,947,549,378 | | | $ | 4,357,875,629 | | | $ | 4,003,199,983 | | | $ | 653,912,809 | | | $ | 570,180,246 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford Dividend and Growth
HLS Fund | | | Hartford Global Growth
HLS Fund | | | Hartford Growth Opportunities
HLS Fund | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019
| | | For the
Year Ended
December 31,
2018
| |
Operations: | | | | | | | | | |
Net investment income (loss) | | $ | 58,130,045 | | | $ | 61,938,823 | | | $ | 1,803,009 | | | $ | 1,764,762 | | | $ | (4,149,226 | ) | | $ | (2,469,727 | ) |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 152,245,468 | | | | 372,873,247 | | | | 39,473,446 | | | | 68,672,082 | | | | 124,358,635 | | | | 314,646,983 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 585,892,259 | | | | (593,183,815 | ) | | | 97,760,515 | | | | (85,389,535 | ) | | | 286,571,024 | | | | (288,647,726 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 796,267,772 | | | | (158,371,745 | ) | | | 139,036,970 | | | | (14,952,691 | ) | | | 406,780,433 | | | | 23,529,530 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | |
Class IA | | | (380,717,264 | ) | | | (367,065,830 | ) | | | (59,823,693 | ) | | | (38,893,548 | ) | | | (268,390,103 | ) | | | (183,161,141 | ) |
Class IB | | | (51,049,426 | ) | | | (50,078,265 | ) | | | (11,091,398 | ) | | | (7,324,732 | ) | | | (31,584,595 | ) | | | (21,414,890 | ) |
Class IC | | | — | | | | — | | | | — | | | | — | | | | (9,866,813 | ) | | | (5,228,239 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (431,766,690 | ) | | | (417,144,095 | ) | | | (70,915,091 | ) | | | (46,218,280 | ) | | | (309,841,511 | ) | | | (209,804,270 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | |
Sold | | | 52,980,701 | | | | 61,469,849 | | | | 14,484,277 | | | | 36,885,058 | | | | 56,475,941 | | | | 50,069,414 | |
Issued on reinvestment of distributions | | | 431,766,690 | | | | 417,144,095 | | | | 70,915,091 | | | | 46,218,280 | | | | 309,841,511 | | | | 209,804,270 | |
Redeemed | | | (500,718,066 | ) | | | (561,723,069 | ) | | | (81,267,414 | ) | | | (91,759,918 | ) | | | (226,047,221 | ) | | | (225,579,813 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (15,970,675 | ) | | | (83,109,125 | ) | | | 4,131,954 | | | | (8,656,580 | ) | | | 140,270,231 | | | | 34,293,871 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 348,530,407 | | | | (658,624,965 | ) | | | 72,253,833 | | | | (69,827,551 | ) | | | 237,209,153 | | | | (151,980,869 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | |
Beginning of period | | | 2,961,025,817 | | | | 3,619,650,782 | | | | 447,194,970 | | | | 517,022,521 | | | | 1,357,464,394 | | | | 1,509,445,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 3,309,556,224 | | | $ | 2,961,025,817 | | | $ | 519,448,803 | | | $ | 447,194,970 | | | $ | 1,594,673,547 | | | $ | 1,357,464,394 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 166,281 | | | $ | (129,611 | ) | | $ | 13,578,906 | | | $ | 14,942,261 | | | $ | 20,489,246 | | | $ | 21,970,804 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 41,441,957 | | | | 31,460,608 | | | | (6,315,547 | ) | | | 3,129,099 | | | | (25,886,084 | ) | | | 45,857,314 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 33,386,835 | | | | (37,551,800 | ) | | | 28,121,097 | | | | (27,080,181 | ) | | | 285,034,848 | | | | (332,649,147 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 74,995,073 | | | | (6,220,803 | ) | | | 35,384,456 | | | | (9,008,821 | ) | | | 279,638,010 | | | | (264,821,029 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | (23,301,756 | ) | | | (17,636,397 | ) | | | (11,998,965 | ) | | | (12,607,847 | ) | | | (59,417,697 | ) | | | (24,591,559 | ) |
Class IB | | | (5,559,926 | ) | | | (2,726,361 | ) | | | (3,581,365 | ) | | | (3,775,566 | ) | | | (6,983,056 | ) | | | (2,394,120 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (28,861,682 | ) | | | (20,362,758 | ) | | | (15,580,330 | ) | | | (16,383,413 | ) | | | (66,400,753 | ) | | | (26,985,679 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Sold | | | 18,614,353 | | | | 31,276,586 | | | | 10,501,246 | | | | 13,407,636 | | | | 64,607,494 | | | | 144,483,508 | |
Issued on reinvestment of distributions | | | 28,861,682 | | | | 20,362,758 | | | | 15,580,330 | | | | 16,383,413 | | | | 66,400,753 | | | | 26,985,679 | |
Redeemed | | | (146,077,753 | ) | | | (74,733,932 | ) | | | (44,026,710 | ) | | | (56,481,478 | ) | | | (236,490,704 | ) | | | (339,252,535 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (98,601,718 | ) | | | (23,094,588 | ) | | | (17,945,134 | ) | | | (26,690,429 | ) | | | (105,482,457 | ) | | | (167,783,348 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (52,468,327 | ) | | | (49,678,149 | ) | | | 1,858,992 | | | | (52,082,663 | ) | | | 107,754,800 | | | | (459,590,056 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 285,720,052 | | | | 335,398,201 | | | | 249,407,207 | | | | 301,489,870 | | | | 1,120,930,164 | | | | 1,580,520,220 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 233,251,725 | | | $ | 285,720,052 | | | $ | 251,266,199 | | | $ | 249,407,207 | | | $ | 1,228,684,964 | | | $ | 1,120,930,164 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford MidCap
HLS Fund | | | Hartford MidCap Growth
HLS Fund | | | Hartford MidCap Value
HLS Fund | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019
| | | For the
Year Ended
December 31,
2018
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 2,453,437 | | | $ | 597,397 | | | $ | (365,216 | ) | | $ | 151,187 | | | $ | 3,024,059 | | | $ | 2,003,484 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 144,622,584 | | | | 313,601,069 | | | | 5,337,071 | | | | 16,823,323 | | | | 19,111,137 | | | | 39,094,355 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 428,817,893 | | | | (453,906,710 | ) | | | 24,903,853 | | | | (25,371,110 | ) | | | 60,456,948 | | | | (89,944,997 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 575,893,914 | | | | (139,708,244 | ) | | | 29,875,708 | | | | (8,396,600 | ) | | | 82,592,144 | | | | (48,847,158 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | (301,703,983 | ) | | | (206,009,765 | ) | | | (14,592,832 | ) | | | (7,929,782 | ) | | | (32,005,532 | ) | | | (20,921,640 | ) |
Class IB | | | (8,149,131 | ) | | | (5,470,747 | ) | | | (2,562,985 | ) | | | (1,375,082 | ) | | | (9,453,950 | ) | | | (5,918,091 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (309,853,114 | ) | | | (211,480,512 | ) | | | (17,155,817 | ) | | | (9,304,864 | ) | | | (41,459,482 | ) | | | (26,839,731 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Sold | | | 136,707,597 | | | | 268,177,739 | | | | 14,727,408 | | | | 4,772,590 | | | | 5,553,726 | | | | 5,167,853 | |
Issued on reinvestment of distributions | | | 309,853,114 | | | | 211,480,512 | | | | 17,155,817 | | | | 9,304,864 | | | | 41,459,482 | | | | 26,839,731 | |
Redeemed | | | (427,293,869 | ) | | | (528,465,528 | ) | | | (18,446,275 | ) | | | (19,264,292 | ) | | | (48,984,177 | ) | | | (49,490,166 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | 19,266,842 | | | | (48,807,277 | ) | | | 13,436,950 | | | | (5,186,838 | ) | | | (1,970,969 | ) | | | (17,482,582 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 285,307,642 | | | | (399,996,033 | ) | | | 26,156,841 | | | | (22,888,302 | ) | | | 39,161,693 | | | | (93,169,471 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 1,814,898,008 | | | | 2,214,894,041 | | | | 76,107,435 | | | | 98,995,737 | | | | 281,667,999 | | | | 374,837,470 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 2,100,205,650 | | | $ | 1,814,898,008 | | | $ | 102,264,276 | | | $ | 76,107,435 | | | $ | 320,829,692 | | | $ | 281,667,999 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 Stock
HLS Fund | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 502,863 | | | $ | (1,320,167 | ) | | $ | (1,528,835 | ) | | $ | (3,112,175 | ) | | $ | 22,931,013 | | | $ | 23,168,989 | |
Net realized gain (loss) on investments and foreign currency transactions | | | 44,683,578 | | | | 219,253,261 | | | | 64,285,340 | | | | 113,781,063 | | | | 98,262,647 | | | | 120,020,211 | |
Net changes in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | 335,112,204 | | | | (363,380,245 | ) | | | 120,697,743 | | | | (127,972,764 | ) | | | 269,938,973 | | | | (138,545,767 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 380,298,645 | | | | (145,447,151 | ) | | | 183,454,248 | | | | (17,303,876 | ) | | | 391,132,633 | | | | 4,643,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | (154,314,731 | ) | | | (60,365,921 | ) | | | (100,841,539 | ) | | | (37,253,096 | ) | | | (133,049,130 | ) | | | (20,294,819 | ) |
Class IB | | | (63,116,174 | ) | | | (23,243,803 | ) | | | (10,050,660 | ) | | | (4,017,068 | ) | | | (12,720,819 | ) | | | (1,685,834 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (217,430,905 | ) | | | (83,609,724 | ) | | | (110,892,199 | ) | | | (41,270,164 | ) | | | (145,769,949 | ) | | | (21,980,653 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Sold | | | 178,522,218 | | | | 200,210,026 | | | | 63,567,701 | | | | 55,281,428 | | | | 10,222,248 | | | | 8,126,181 | |
Issued on reinvestment of distributions | | | 193,713,157 | | | | 74,744,865 | | | | 110,892,199 | | | | 41,270,164 | | | | 145,769,949 | | | | 21,980,653 | |
Redeemed | | | (316,364,571 | ) | | | (264,548,970 | ) | | | (142,188,473 | ) | | | (126,680,602 | ) | | | (213,809,325 | ) | | | (212,336,911 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | 55,870,804 | | | | 10,405,921 | | | | 32,271,427 | | | | (30,129,010 | ) | | | (57,817,128 | ) | | | (182,230,077 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 218,738,544 | | | | (218,650,954 | ) | | | 104,833,476 | | | | (88,703,050 | ) | | | 187,545,556 | | | | (199,567,297 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 1,116,381,368 | | | | 1,335,032,322 | | | | 519,499,678 | | | | 608,202,728 | | | | 1,322,048,579 | | | | 1,521,615,876 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 1,335,119,912 | | | $ | 1,116,381,368 | | | $ | 624,333,154 | | | $ | 519,499,678 | | | $ | 1,509,594,135 | | | $ | 1,322,048,579 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford Total Return Bond
HLS Fund | | | Hartford Ultrashort Bond
HLS Fund | | | Hartford
U.S. Government Securities
HLS Fund | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 65,861,576 | | | $ | 71,823,626 | | | $ | 10,500,262 | | | $ | 8,766,837 | | | $ | 6,719,670 | | | $ | 7,546,931 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 58,991,821 | | | | (37,810,393 | ) | | | 294,254 | | | | (18,669 | ) | | | 8,221,074 | | | | (5,641,701 | ) |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 85,804,646 | | | | (54,351,601 | ) | | | 2,390,882 | | | | (1,061,293 | ) | | | 1,982,389 | | | | 228,103 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 210,658,043 | | | | (20,338,368 | ) | | | 13,185,398 | | | | 7,686,875 | | | | 16,923,133 | | | | 2,133,333 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | | (74,150,238 | ) | | | (84,804,607 | ) | | | (7,948,551 | ) | | | (5,018,413 | ) | | | (6,935,499 | ) | | | (7,134,442 | ) |
Class IB | | | (8,003,440 | ) | | | (9,181,448 | ) | | | (964,500 | ) | | | (536,294 | ) | | | (1,302,292 | ) | | | (1,332,927 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (82,153,678 | ) | | | (93,986,055 | ) | | | (8,913,051 | ) | | | (5,554,707 | ) | | | (8,237,791 | ) | | | (8,467,369 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Sold | | | 127,470,147 | | | | 106,840,708 | | | | 74,378,048 | | | | 73,505,332 | | | | 23,718,967 | | | | 21,420,796 | |
Issued on reinvestment of distributions | | | 82,153,678 | | | | 93,986,055 | | | | 8,913,051 | | | | 5,554,708 | | | | 8,237,791 | | | | 8,467,369 | |
Redeemed | | | (337,029,607 | ) | | | (406,372,006 | ) | | | (138,850,731 | ) | | | (105,240,180 | ) | | | (64,840,559 | ) | | | (78,045,222 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net (decrease) from capital share transactions | | | (127,405,782 | ) | | | (205,545,243 | ) | | | (55,559,632 | ) | | | (26,180,140 | ) | | | (32,883,801 | ) | | | (48,157,057 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 1,098,583 | | | | (319,869,666 | ) | | | (51,287,285 | ) | | | (24,047,972 | ) | | | (24,198,459 | ) | | | (54,491,093 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 2,086,421,561 | | | | 2,406,291,227 | | | | 502,019,108 | | | | 526,067,080 | | | | 345,582,908 | | | | 400,074,001 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 2,087,520,144 | | | $ | 2,086,421,561 | | | $ | 450,731,823 | | | $ | 502,019,108 | | | $ | 321,384,449 | | | $ | 345,582,908 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | |
| | | Hartford Value
HLS Fund | |
| | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2018 | |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | 7,518,588 | | | $ | 8,638,811 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 32,464,414 | | | | 48,079,686 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 66,135,187 | | | | (103,394,559 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 106,118,189 | | | | (46,676,062 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | |
Class IA | | | (44,489,654 | ) | | | (45,728,961 | ) |
Class IB | | | (7,088,517 | ) | | | (7,417,890 | ) |
| | | | | | | | |
Total distributions | | | (51,578,171 | ) | | | (53,146,851 | ) |
| | | | | | | | |
Capital Share Transactions: | | | | | | | | |
Sold | | | 13,103,074 | | | | 13,010,218 | |
Issued on reinvestment of distributions | | | 51,578,171 | | | | 53,146,851 | |
Redeemed | | | (86,395,094 | ) | | | (81,575,571 | ) |
| | | | | | | | |
Net (decrease) from capital share transactions | | | (21,713,849 | ) | | | (15,418,502 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 32,826,169 | | | | (115,241,415 | ) |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 411,244,394 | | | | 526,485,809 | |
| | | | | | | | |
End of period | | $ | 444,070,563 | | | $ | 411,244,394 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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, 2019 | |
IA | | $ | 27.47 | | | $ | 0.54 | (4) | | $ | 5.47 | (4) | | $ | 6.01 | | | $ | (0.56 | ) | | $ | (2.65 | ) | | $ | (3.21 | ) | | $ | 30.27 | | | | 22.80 | % | | $ | 1,849,582 | | | | 0.66 | % | | | 0.63 | % | | | 1.81 | %(4) | | | 38 | % |
IB | | | 27.91 | | | | 0.47 | (4) | | | 5.55 | (4) | | | 6.02 | | | | (0.48 | ) | | | (2.65 | ) | | | (3.13 | ) | | | 30.80 | | | | 22.47 | | | | 247,264 | | | | 0.91 | | | | 0.88 | | | | 1.56 | (4) | | | 38 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 31.02 | | | $ | 0.59 | | | $ | (2.12 | ) | | $ | (1.53 | ) | | $ | (0.61 | ) | | $ | (1.41 | ) | | $ | (2.02 | ) | | $ | 27.47 | | | | (5.24 | )% | | $ | 1,717,759 | | | | 0.66 | % | | | 0.63 | % | | | 1.92 | % | | | 31 | % |
IB | | | 31.48 | | | | 0.52 | | | | (2.15 | ) | | | (1.63 | ) | | | (0.53 | ) | | | (1.41 | ) | | | (1.94 | ) | | | 27.91 | | | | (5.50 | ) | | | 229,790 | | | | 0.91 | | | | 0.88 | | | | 1.67 | | | | 31 | |
|
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 | |
|
| Hartford Capital Appreciation HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 39.89 | | | $ | 0.48 | | | $ | 11.47 | | | $ | 11.95 | | | $ | (0.53 | ) | | $ | (5.26 | ) | | $ | (5.79 | ) | | $ | 46.05 | | | | 31.28 | % | | $ | 3,847,850 | | | | 0.68 | % | | | 0.68 | % | | | 1.06 | % | | | 56 | % |
IB | | | 39.28 | | | | 0.36 | | | | 11.28 | | | | 11.64 | | | | (0.42 | ) | | | (5.26 | ) | | | (5.68 | ) | | | 45.24 | | | | 30.96 | | | | 474,982 | | | | 0.93 | | | | 0.93 | | | | 0.81 | | | | 56 | |
IC | | | 39.54 | | | | 0.25 | | | | 11.34 | | | | 11.59 | | | | (0.42 | ) | | | (5.26 | ) | | | (5.68 | ) | | | 45.45 | | | | 30.63 | | | | 35,043 | | | | 1.18 | | | | 1.18 | | | | 0.56 | | | | 56 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 48.16 | | | $ | 0.49 | | | $ | (3.33 | ) | | $ | (2.84 | ) | | $ | (0.43 | ) | | $ | (5.00 | ) | | $ | (5.43 | ) | | $ | 39.89 | | | | (6.96 | )% | | $ | 3,543,187 | | | | 0.67 | % | | | 0.67 | % | | | 1.03 | % | | | 73 | % |
IB | | | 47.48 | | | | 0.37 | | | | (3.26 | ) | | | (2.89 | ) | | | (0.31 | ) | | | (5.00 | ) | | | (5.31 | ) | | | 39.28 | | | | (7.18 | ) | | | 432,334 | | | | 0.92 | | | | 0.92 | | | | 0.77 | | | | 73 | |
IC | | | 47.76 | | | | 0.25 | | | | (3.26 | ) | | | (3.01 | ) | | | (0.21 | ) | | | (5.00 | ) | | | (5.21 | ) | | | 39.54 | | | | (7.41 | ) | | | 27,679 | | | | 1.17 | | | | 1.17 | | | | 0.53 | | | | 73 | |
|
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 | |
|
| Hartford Disciplined Equity HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 13.59 | | | $ | 0.13 | | | $ | 4.26 | | | $ | 4.39 | | | $ | (0.14 | ) | | $ | (1.87 | ) | | $ | (2.01 | ) | | $ | 15.97 | | | | 34.12 | % | | $ | 573,688 | | | | 0.78 | % | | | 0.78 | % | | | 0.82 | % | | | 15 | % |
IB | | | 13.44 | | | | 0.09 | | | | 4.20 | | | | 4.29 | | | | (0.10 | ) | | | (1.87 | ) | | | (1.97 | ) | | | 15.76 | | | | 33.76 | | | | 80,224 | | | | 1.03 | | | | 1.03 | | | | 0.57 | | | | 15 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 15.43 | | | $ | 0.11 | | | $ | (0.27 | ) | | $ | (0.16 | ) | | $ | (0.11 | ) | | $ | (1.57 | ) | | $ | (1.68 | ) | | $ | 13.59 | | | | (1.99 | )% | | $ | 501,718 | | | | 0.78 | % | | | 0.78 | % | | | 0.72 | % | | | 22 | % |
IB | | | 15.27 | | | | 0.07 | | | | (0.26 | ) | | | (0.19 | ) | | | (0.07 | ) | | | (1.57 | ) | | | (1.64 | ) | | | 13.44 | | | | (2.23 | ) | | | 68,462 | | | | 1.03 | | | | 1.03 | | | | 0.47 | | | | 22 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 – (continued) | |
|
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 | |
|
| Hartford Dividend and Growth HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 19.91 | | | $ | 0.41 | | | $ | 4.91 | | | $ | 5.32 | | | $ | (0.40 | ) | | $ | (2.75 | ) | | $ | (3.15 | ) | | $ | 22.08 | | | | 28.60 | % | | $ | 2,916,542 | | | | 0.68 | % | | | 0.68 | % | | | 1.85 | % | | | 19 | % |
IB | | | 19.82 | | | | 0.35 | | | | 4.89 | | | | 5.24 | | | | (0.35 | ) | | | (2.75 | ) | | | (3.10 | ) | | | 21.96 | | | | 28.30 | | | | 393,014 | | | | 0.93 | | | | 0.93 | | | | 1.60 | | | | 19 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 23.95 | | | $ | 0.43 | | | $ | (1.45 | ) | | $ | (1.02 | ) | | $ | (0.44 | ) | | $ | (2.58 | ) | | $ | (3.02 | ) | | $ | 19.91 | | | | (5.32 | )% | | $ | 2,604,425 | | | | 0.68 | % | | | 0.68 | % | | | 1.84 | % | | | 28 | % |
IB | | | 23.85 | | | | 0.37 | | | | (1.44 | ) | | | (1.07 | ) | | | (0.38 | ) | | | (2.58 | ) | | | (2.96 | ) | | | 19.82 | | | | (5.56 | ) | | | 356,601 | | | | 0.93 | | | | 0.93 | | | | 1.59 | | | | 28 | |
|
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 | |
|
| Hartford Global Growth HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 24.54 | | | $ | 0.11 | | | $ | 7.46 | | | $ | 7.57 | | | $ | (0.12 | ) | | $ | (4.13 | ) | | $ | (4.25 | ) | | $ | 27.86 | | | | 32.61 | % | | $ | 438,288 | | | | 0.80 | % | | | 0.80 | % | | | 0.40 | % | | | 49 | % |
IB | | | 24.28 | | | | 0.04 | | | | 7.38 | | | | 7.42 | | | | (0.04 | ) | | | (4.13 | ) | | | (4.17 | ) | | | 27.53 | | | | 32.29 | | | | 81,161 | | | | 1.05 | | | | 1.05 | | | | 0.15 | | | | 49 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 27.89 | | | $ | 0.11 | | | $ | (0.83 | ) | | $ | (0.72 | ) | | $ | (0.15 | ) | | $ | (2.48 | ) | | $ | (2.63 | ) | | $ | 24.54 | | | | (3.81 | )% | | $ | 375,825 | | | | 0.80 | % | | | 0.80 | % | | | 0.37 | % | | | 55 | % |
IB | | | 27.63 | | | | 0.04 | | | | (0.83 | ) | | | (0.79 | ) | | | (0.08 | ) | | | (2.48 | ) | | | (2.56 | ) | | | 24.28 | | | | (4.07 | ) | | | 71,370 | | | | 1.05 | | | | 1.05 | | | | 0.12 | | | | 55 | |
|
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 | |
|
| Hartford Growth Opportunities HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 33.79 | | | $ | (0.09 | ) | | $ | 9.99 | | | $ | 9.90 | | | $ | — | | | $ | (8.25 | ) | | $ | (8.25 | ) | | $ | 35.44 | | | | 30.68 | % | | $ | 1,389,571 | | | | 0.65 | % | | | 0.65 | % | | | (0.22 | )% | | | 66 | % |
IB | | | 32.19 | | | | (0.17 | ) | | | 9.48 | | | | 9.31 | | | | — | | | | (8.25 | ) | | | (8.25 | ) | | | 33.25 | | | | 30.35 | | | | 152,577 | | | | 0.90 | | | | 0.90 | | | | (0.47 | ) | | | 66 | |
IC | | | 32.90 | | | | (0.27 | ) | | | 9.70 | | | | 9.43 | | | | — | | | | (8.25 | ) | | | (8.25 | ) | | | 34.08 | | | | 30.04 | | | | 52,525 | | | | 1.15 | | | | 1.15 | | | | (0.72 | ) | | | 66 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 Growth Opportunities HLS Fund – (continued) | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 38.42 | | | $ | (0.05 | ) | | $ | 1.17 | | | $ | 1.12 | | | $ | — | | | $ | (5.75 | ) | | $ | (5.75 | ) | | $ | 33.79 | | | | 0.53 | % | | $ | 1,188,514 | | | | 0.65 | % | | | 0.65 | % | | | (0.12 | )% | | | 118 | % |
IB | | | 36.91 | | | | (0.14 | ) | | | 1.17 | | | | 1.03 | | | | — | | | | (5.75 | ) | | | (5.75 | ) | | | 32.19 | | | | 0.29 | | | | 132,629 | | | | 0.90 | | | | 0.90 | | | | (0.37 | ) | | | 118 | |
IC | | | 37.71 | | | | (0.25 | ) | | | 1.19 | | | | 0.94 | | | | — | | | | (5.75 | ) | | | (5.75 | ) | | | 32.90 | | | | 0.04 | | | | 36,321 | | | | 1.15 | | | | 1.15 | | | | (0.62 | ) | | | 118 | |
|
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 | (5) | | $ | 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 | (5) | | | (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 | (5) | | | (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 | |
|
| Hartford Healthcare HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 20.56 | | | $ | 0.03 | | | $ | 6.31 | | | $ | 6.34 | | | $ | — | | | $ | (3.23 | ) | | $ | (3.23 | ) | | $ | 23.67 | | | | 33.95 | % | | $ | 191,260 | | | | 0.91 | % | | | 0.91 | % | | | 0.11 | % | | | 42 | % |
IB | | | 19.44 | | | | (0.03 | ) | | | 5.94 | | | | 5.91 | | | | — | | | | (3.23 | ) | | | (3.23 | ) | | | 22.12 | | | | 33.68 | | | | 41,992 | | | | 1.16 | | | | 1.16 | | | | (0.16 | ) | | | 42 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 22.46 | | | $ | — | | | $ | (0.41 | ) | | $ | (0.41 | ) | | $ | (0.02 | ) | | $ | (1.47 | ) | | $ | (1.49 | ) | | $ | 20.56 | | | | (2.67 | )% | | $ | 249,144 | | | | 0.89 | % | | | 0.89 | % | | | (0.01 | )% | | | 29 | % |
IB | | | 21.35 | | | | (0.06 | ) | | | (0.38 | ) | | | (0.44 | ) | | | — | | | | (1.47 | ) | | | (1.47 | ) | | | 19.44 | | | | (2.96 | ) | | | 36,576 | | | | 1.14 | | | | 1.14 | | | | (0.26 | ) | | | 29 | |
|
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 | |
|
| Hartford High Yield HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 7.45 | | | $ | 0.43 | (6) | | $ | 0.67 | (6) | | $ | 1.10 | | | $ | (0.51 | ) | | $ | — | | | $ | (0.51 | ) | | $ | 8.04 | | | | 15.06 | % | | $ | 192,532 | | | | 0.77 | % | | | 0.77 | % | | | 5.39 | %(6) | | | 41 | % |
IB | | | 7.32 | | | | 0.40 | (6) | | | 0.66 | (6) | | | 1.06 | | | | (0.49 | ) | | | — | | | | (0.49 | ) | | | 7.89 | | | | 14.73 | | | | 58,734 | | | | 1.02 | | | | 1.02 | | | | 5.14 | (6) | | | 41 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 8.20 | | | $ | 0.43 | | | $ | (0.69 | ) | | $ | (0.26 | ) | | $ | (0.49 | ) | | $ | — | | | $ | (0.49 | ) | | $ | 7.45 | | | | (3.44 | )% | | $ | 190,681 | | | | 0.77 | % | | | 0.77 | % | | | 5.39 | % | | | 26 | % |
IB | | | 8.06 | | | | 0.41 | | | | (0.68 | ) | | | (0.27 | ) | | | (0.47 | ) | | | — | | | | (0.47 | ) | | | 7.32 | | | | (3.66 | ) | | | 58,726 | | | | 1.02 | | | | 1.02 | | | | 5.14 | | | | 26 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 High Yield HLS Fund – (continued) | |
|
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 | |
|
| Hartford International Opportunities HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 13.91 | | | $ | 0.27 | | | $ | 3.30 | | | $ | 3.57 | | | $ | (0.30 | ) | | $ | (0.62 | ) | | $ | (0.92 | ) | | $ | 16.56 | | | | 26.43 | % | | $ | 1,093,030 | | | | 0.74 | % | | | 0.74 | % | | | 1.74 | % | | | 88 | % |
IB | | | 14.09 | | | | 0.24 | | | | 3.35 | | | | 3.59 | | | | (0.26 | ) | | | (0.62 | ) | | | (0.88 | ) | | | 16.80 | | | | 26.14 | | | | 135,655 | | | | 0.99 | | | | 0.99 | | | | 1.48 | | | | 88 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 17.46 | | | $ | 0.26 | | | $ | (3.49 | ) | | $ | (3.23 | ) | | $ | (0.32 | ) | | $ | — | | | $ | (0.32 | ) | | $ | 13.91 | | | | (18.74 | )% | | $ | 1,000,295 | | | | 0.73 | % | | | 0.73 | % | | | 1.55 | % | | | 80 | % |
IB | | | 17.68 | | | | 0.22 | | | | (3.53 | ) | | | (3.31 | ) | | | (0.28 | ) | | | — | | | | (0.28 | ) | | | 14.09 | | | | (18.96 | ) | | | 120,635 | | | | 0.98 | | | | 0.98 | | | | 1.28 | | | | 80 | |
|
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 | |
|
| Hartford MidCap HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 33.77 | | | $ | 0.05 | | | $ | 10.56 | | | $ | 10.61 | | | $ | (0.07 | ) | | $ | (6.14 | ) | | $ | (6.21 | ) | | $ | 38.17 | | | | 32.87 | % | | $ | 2,045,156 | | | | 0.69 | % | | | 0.69 | % | | | 0.12 | % | | | 29 | % |
IB | | | 32.85 | | | | (0.05 | ) | | | 10.24 | | | | 10.19 | | | | — | | | | (6.14 | ) | | | (6.14 | ) | | | 36.90 | | | | 32.49 | | | | 55,049 | | | | 0.94 | | | | 0.94 | | | | (0.12 | ) | | | 29 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 40.10 | | | $ | 0.01 | | | $ | (2.35 | ) | | $ | (2.34 | ) | | $ | (0.01 | ) | | $ | (3.98 | ) | | $ | (3.99 | ) | | $ | 33.77 | | | | (7.44 | )% | | $ | 1,768,712 | | | | 0.69 | % | | | 0.69 | % | | | 0.03 | % | | | 35 | % |
IB | | | 39.18 | | | | (0.09 | ) | | | (2.26 | ) | | | (2.35 | ) | | | — | | | | (3.98 | ) | | | (3.98 | ) | | | 32.85 | | | | (7.65 | ) | | | 46,186 | | | | 0.94 | | | | 0.94 | | | | (0.22 | ) | | | 35 | |
|
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 | |
|
| Hartford MidCap Growth HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 7.17 | | | $ | (0.03 | ) | | $ | 2.70 | | | $ | 2.67 | | | $ | (0.05 | ) | | $ | (1.62 | ) | | $ | (1.67 | ) | | $ | 8.17 | | | | 39.79 | % | | $ | 86,859 | | | | 0.92 | % | | | 0.92 | % | | | (0.35 | )% | | | 47 | % |
IB | | | 7.12 | | | | (0.05 | ) | | | 2.68 | | | | 2.63 | | | | (0.02 | ) | | | (1.62 | ) | | | (1.64 | ) | | | 8.11 | | | | 39.56 | | | | 15,405 | | | | 1.17 | | | | 1.17 | | | | (0.60 | ) | | | 47 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 8.81 | | | $ | 0.02 | | | $ | (0.74 | ) | | $ | (0.72 | ) | | $ | (0.06 | ) | | $ | (0.86 | ) | | $ | (0.92 | ) | | $ | 7.17 | | | | (10.05 | )% | | $ | 64,744 | | | | 0.91 | % | | | 0.91 | % | | | 0.20 | % | | | 160 | % |
IB | | | 8.75 | | | | — | | | | (0.73 | ) | | | (0.73 | ) | | | (0.04 | ) | | | (0.86 | ) | | | (0.90 | ) | | | 7.12 | | | | (10.25 | ) | | | 11,363 | | | | 1.16 | | | | 1.16 | | | | (0.05 | ) | | | 160 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 Growth HLS Fund – (continued) | |
|
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 | |
|
| Hartford MidCap Value HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 9.93 | | | $ | 0.12 | | | $ | 2.74 | | | $ | 2.86 | | | $ | (0.11 | ) | | $ | (1.49 | ) | | $ | (1.60 | ) | | $ | 11.19 | | | | 31.20 | % | | $ | 247,804 | | | | 0.86 | % | | | 0.82 | % | | | 1.04 | % | | | 51 | % |
IB | | | 9.88 | | | | 0.09 | | | | 2.72 | | | | 2.81 | | | | (0.08 | ) | | | (1.49 | ) | | | (1.57 | ) | | | 11.12 | | | | 30.88 | | | | 73,025 | | | | 1.11 | | | | 1.07 | | | | 0.79 | | | | 51 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 12.60 | | | $ | 0.08 | | | $ | (1.76 | ) | | $ | (1.68 | ) | | $ | (0.13 | ) | | $ | (0.86 | ) | | $ | (0.99 | ) | | $ | 9.93 | | | | (14.57 | )% | | $ | 216,868 | | | | 0.85 | % | | | 0.85 | % | | | 0.63 | % | | | 42 | % |
IB | | | 12.50 | | | | 0.05 | | | | (1.75 | ) | | | (1.70 | ) | | | (0.06 | ) | | | (0.86 | ) | | | (0.92 | ) | | | 9.88 | | | | (14.77 | ) | | | 64,800 | | | | 1.10 | | | | 1.10 | | | | 0.38 | | | | 42 | |
|
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 | |
|
| Hartford Small Cap Growth HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 26.76 | | | $ | 0.03 | | | $ | 8.61 | | | $ | 8.64 | | | $ | — | | | $ | (5.68 | ) | | $ | (5.68 | ) | | $ | 29.72 | | | | 35.81 | % | | $ | 954,063 | | | | 0.64 | % | | | 0.64 | % | | | 0.11 | % | | | 42 | % |
IB | | | 25.95 | | | | (0.04 | ) | | | 8.30 | | | | 8.26 | | | | — | | | | (5.68 | ) | | | (5.68 | ) | | | 28.53 | | | | 35.45 | | | | 381,057 | | | | 0.89 | | | | 0.89 | | | | (0.14 | ) | | | 42 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 32.13 | | | $ | (0.01 | ) | | $ | (3.27 | ) | | $ | (3.28 | ) | | $ | — | | | $ | (2.09 | ) | | $ | (2.09 | ) | | $ | 26.76 | | | | (11.70 | )% | | $ | 803,907 | | | | 0.64 | % | | | 0.64 | % | | | (0.03 | )% | | | 86 | % |
IB | | | 31.28 | | | | (0.09 | ) | | | (3.15 | ) | | | (3.24 | ) | | | — | | | | (2.09 | ) | | | (2.09 | ) | | | 25.95 | | | | (11.89 | ) | | | 312,475 | | | | 0.89 | | | | 0.89 | | | | (0.28 | ) | | | 86 | |
|
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 | |
|
| Hartford Small Company HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 18.38 | | | $ | (0.05 | ) | | $ | 6.36 | | | $ | 6.31 | | | $ | — | | | $ | (4.24 | ) | | $ | (4.24 | ) | | $ | 20.45 | | | | 37.00 | % | | $ | 572,642 | | | | 0.79 | % | | | 0.79 | % | | | (0.23 | )% | | | 79 | % |
IB | | | 16.94 | | | | (0.09 | ) | | | 5.83 | | | | 5.74 | | | | — | | | | (4.24 | ) | | | (4.24 | ) | | | 18.44 | | | | 36.77 | | | | 51,691 | | | | 1.04 | | | | 1.04 | | | | (0.49 | ) | | | 79 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 20.42 | | | $ | (0.10 | ) | | $ | (0.46 | ) | | $ | (0.56 | ) | | $ | — | | | $ | (1.48 | ) | | $ | (1.48 | ) | | $ | 18.38 | | | | (4.23 | )% | | $ | 473,098 | | | | 0.78 | % | | | 0.78 | % | | | (0.47 | )% | | | 100 | % |
IB | | | 18.97 | | | | (0.15 | ) | | | (0.40 | ) | | | (0.55 | ) | | | — | | | | (1.48 | ) | | | (1.48 | ) | | | 16.94 | | | | (4.51 | ) | | | 46,402 | | | | 1.03 | | | | 1.03 | | | | (0.73 | ) | | | 100 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 – (continued) | |
|
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 | (5) | | $ | 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 | (5) | | | 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 | |
|
| Hartford Stock HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 78.10 | | | $ | 1.43 | | | $ | 22.40 | | | $ | 23.83 | | | $ | (1.46 | ) | | $ | (7.89 | ) | | $ | (9.35 | ) | | $ | 92.58 | | | | 31.22 | % | | $ | 1,375,643 | | | | 0.51 | % | �� | | 0.51 | % | | | 1.59 | % | | | 15 | % |
IB | | | 78.11 | | | | 1.20 | | | | 22.39 | | | | 23.59 | | | | (1.24 | ) | | | (7.89 | ) | | | (9.13 | ) | | | 92.57 | | | | 30.89 | | | | 133,951 | | | | 0.76 | | | | 0.76 | | | | 1.34 | | | | 15 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 79.57 | | | $ | 1.31 | | | $ | (1.45 | ) | | $ | (0.14 | ) | | $ | (1.33 | ) | | $ | — | | | $ | (1.33 | ) | | $ | 78.10 | | | | (0.14 | )% | | $ | 1,201,873 | | | | 0.51 | % | | | 0.51 | % | | | 1.60 | % | | | 22 | % |
IB | | | 79.54 | | | | 1.10 | | | | (1.43 | ) | | | (0.33 | ) | | | (1.10 | ) | | | — | | | | (1.10 | ) | | | 78.11 | | | | (0.38 | ) | | | 120,176 | | | | 0.76 | | | | 0.76 | | | | 1.34 | | | | 22 | |
|
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 | |
|
| Hartford Total Return Bond HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 10.76 | | | $ | 0.36 | (7) | | $ | 0.77 | (7) | | $ | 1.13 | | | $ | (0.45 | ) | | $ | — | | | $ | (0.45 | ) | | $ | 11.44 | | | | 10.65 | % | | $ | 1,873,182 | | | | 0.51 | % | | | 0.51 | % | | | 3.16 | %(7) | | | 61 | % |
IB | | | 10.70 | | | | 0.33 | (7) | | | 0.77 | (7) | | | 1.10 | | | | (0.42 | ) | | | — | | | | (0.42 | ) | | | 11.38 | | | | 10.32 | | | | 214,338 | | | | 0.76 | | | | 0.76 | | | | 2.91 | (7) | | | 61 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 11.32 | | | $ | 0.35 | | | $ | (0.43 | ) | | $ | (0.08 | ) | | $ | (0.44 | ) | | $ | (0.04 | ) | | $ | (0.48 | ) | | $ | 10.76 | | | | (0.81 | )% | | $ | 1,871,299 | | | | 0.51 | % | | | 0.51 | % | | | 3.23 | % | | | 53 | % |
IB | | | 11.25 | | | | 0.33 | | | | (0.43 | ) | | | (0.10 | ) | | | (0.41 | ) | | | (0.04 | ) | | | (0.45 | ) | | | 10.70 | | | | (0.91 | ) | | | 215,123 | | | | 0.76 | | | | 0.76 | | | | 2.98 | | | | 53 | |
|
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 | |
|
| Hartford Ultrashort Bond HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 10.10 | | | $ | 0.23 | | | $ | 0.05 | | | $ | 0.28 | | | $ | (0.19 | ) | | $ | — | | | $ | (0.19 | ) | | $ | 10.19 | | | | 2.81 | % | | $ | 393,590 | | | | 0.45 | % | | | 0.45 | % | | | 2.21 | % | | | 70 | % |
IB | | | 10.09 | | | | 0.20 | | | | 0.06 | | | | 0.26 | | | | (0.17 | ) | | | — | | | | (0.17 | ) | | | 10.18 | | | | 2.54 | | | | 57,142 | | | | 0.70 | | | | 0.70 | | | | 1.96 | | | | 70 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — SelectedPer-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 – (continued) | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 10.06 | | | $ | 0.18 | | | $ | (0.02 | ) | | $ | 0.16 | | | $ | (0.12 | ) | | $ | — | | | $ | (0.12 | ) | | $ | 10.10 | | | | 1.57 | % | | $ | 437,160 | | | | 0.45 | % | | | 0.45 | % | | | 1.77 | % | | | 51 | % |
IB | | | 10.05 | | | | 0.15 | | | | (0.02 | ) | | | 0.13 | | | | (0.09 | ) | | | — | | | | (0.09 | ) | | | 10.09 | | | | 1.27 | | | | 64,859 | | | | 0.70 | | | | 0.70 | | | | 1.52 | | | | 51 | |
|
For the Year Ended December 31, 2017 | |
IA | | $ | 10.04 | | | $ | 0.10 | | | $ | — | (5) | | $ | 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 | (5) | | | 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 | |
|
| Hartford U.S. Government Securities HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 10.05 | | | $ | 0.21 | | | $ | 0.32 | | | $ | 0.53 | | | $ | (0.27 | ) | | $ | — | | | $ | (0.27 | ) | | $ | 10.31 | | | | 5.22 | % | | $ | 265,860 | | | | 0.51 | % | | | 0.51 | % | | | 2.07 | | | | 44 | % |
IB | | | 10.04 | | | | 0.19 | | | | 0.31 | | | | 0.50 | | | | (0.24 | ) | | | — | | | | (0.24 | ) | | | 10.30 | | | | 4.93 | | | | 55,524 | | | | 0.76 | | | | 0.76 | | | | 1.82 | | | | 44 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 10.21 | | | $ | 0.21 | | | $ | (0.13 | ) | | $ | 0.08 | | | $ | (0.24 | ) | | $ | — | | | $ | (0.24 | ) | | $ | 10.05 | | | | 0.85 | % | | $ | 286,243 | | | | 0.52 | % | | | 0.52 | % | | | 2.08 | % | | | 42 | % |
IB | | | 10.20 | | | | 0.18 | | | | (0.13 | ) | | | 0.05 | | | | (0.21 | ) | | | — | | | | (0.21 | ) | | | 10.04 | | | | 0.55 | | | | 59,340 | | | | 0.77 | | | | 0.77 | | | | 1.83 | | | | 42 | |
|
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 | )(5) | | $ | 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 | )(5) | | | 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 | |
|
| Hartford Value HLS Fund | |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 12.81 | | | $ | 0.25 | | | $ | 3.08 | | | $ | 3.33 | | | $ | (0.28 | ) | | $ | (1.50 | ) | | $ | (1.78 | ) | | $ | 14.36 | | | | 27.71 | % | | $ | 382,127 | | | | 0.72 | % | | | 0.72 | % | | | 1.76 | % | | | 43 | % |
IB | | | 12.79 | | | | 0.21 | | | | 3.08 | | | | 3.29 | | | | (0.24 | ) | | | (1.50 | ) | | | (1.74 | ) | | | 14.34 | | | | 27.46 | | | | 61,944 | | | | 0.97 | | | | 0.97 | | | | 1.51 | | | | 43 | |
|
For the Year Ended December 31, 2018 | |
IA | | $ | 16.05 | | | $ | 0.28 | | | $ | (1.75 | ) | | $ | (1.47 | ) | | $ | (0.25 | ) | | $ | (1.52 | ) | | $ | (1.77 | ) | | $ | 12.81 | | | | (10.18 | )% | | $ | 353,040 | | | | 0.71 | % | | | 0.71 | % | | | 1.80 | % | | | 28 | % |
IB | | | 16.02 | | | | 0.24 | | | | (1.74 | ) | | | (1.50 | ) | | | (0.21 | ) | | | (1.52 | ) | | | (1.73 | ) | | | 12.79 | | | | (10.40 | ) | | | 58,204 | | | | 0.96 | | | | 0.96 | | | | 1.55 | | | | 28 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| (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) | FASB issued ASU2017-08 to amend the amortization period to the earliest call date for purchased callable debt securities held at a premium. Effective January 1, 2019, the Fund amended its amortization policy and the effect of this change for the year ended December 31, 2019 was an increase to net investment income per share for less than $0.005, decrease to net realized and unrealized gain (loss) on investments for less than $(0.005) and an increase to ratio of net investment income to average net assets for less than 0.005% for each class of shares. Per share data and ratios for periods prior to December 31, 2019 have not been restated to reflect this change in presentation. |
| (5) | 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 ofper-share net realized and unrealized gain (loss) on such shares. |
| (6) | FASB issued ASU2017-08 to amend the amortization period to the earliest call date for purchased callable debt securities held at a premium. Effective January 1, 2019, the Fund amended its amortization policy and the effect of this change for the year ended December 31, 2019 was an increase to net investment income per share for $0.01, decrease to net realized and unrealized gain (loss) to investments for $(0.01) and an increase to ratio of net investment income to average net assets of 0.07% for each class of shares. Per share data and ratios for periods prior to December 31, 2019 have not been restated to reflect this change in presentation. |
| (7) | FASB issued ASU2017-08 to amend the amortization period to the earliest call date for purchased callable debt securities held at a premium. Effective January 1, 2019, the Fund amended its amortization policy and the effect of this change for the year ended December 31, 2019 was a decrease to net investment income per share for less than $(0.005), increase to net realized and unrealized gain (loss) on investments for less than $0.005 and a decrease to ratio of net investment income to average net assets of (0.01)% for each class of shares. Per share data and ratios for periods prior to December 31, 2019 have not been restated to reflect this change in presentation. |
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
December 31, 2019
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each, a “Company” and collectively, the “Companies”) are each anopen-end registered management investment company comprised of fifteen and four series, respectively, as of December 31, 2019. 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 MidCap Growth HLS Fund (the “MidCap Growth HLS Fund”)
Hartford Small Cap Growth HLS Fund (the “Small Cap Growth 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 insurance companies and certain qualified pension or retirement plans. 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 diversifiedopen-end management investment company. Each Fund applies specialized accounting and reporting standards under Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”
Each Fund has registered for sale Class IA and IB shares. Each of Capital Appreciation HLS Fund and Growth Opportunities HLS Fund also has registered for sale Class IC shares. Each Fund is closed to certain investors. For more information please see each Fund’s statutory 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 Rule12b-1 under the 1940 Act. Class IC shares are subject to distribution fees charged pursuant to a Distribution Plan adopted in accordance with Rule12b-1 under the 1940 Act and Class IC shares are also subject to an administrative services 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. |
Notes to Financial Statements – (continued)
December 31, 2019
| | b) | Investment Valuation and Fair Value Measurements– For purposes of calculating the NAV of each class 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 official close price or last reported trade price. If no trades were reported, market value is based on prices obtained from a quotation reporting system, established market makers (including evaluated prices), or independent pricing services. Pricing vendors may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data, credit quality information, general market conditions, news, and other factors and assumptions. |
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 Board of Directors of the respective Company (the “Board of Directors”) (“Valuation Procedures”). 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. 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.
Prices of foreign equities that are principally traded on certain foreign markets will generally be 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. 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.
Fixed income investments (other than short-term obligations) held by a Fund are normally valued at prices supplied by independent pricing services in accordance with the Valuation Procedures. 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 derivatives, such as options, futures and options on futures, are valued at the last sale price determined by the exchange where such instruments principally trade as of the close of such exchange (“Exchange Close”). If a last sale price is not available, the value will be the mean of the most recently quoted bid and ask prices as of the Exchange Close. If a mean of the bid and ask prices cannot be calculated for the day, the value will be the most recently quoted bid price as of the Exchange Close.Over-the-counter derivatives are normally valued based on prices supplied by independent pricing services in accordance with the Valuation Procedures.
Investments valued in currencies other than U.S. dollars are converted to U.S. dollars using the prevailing spot currency 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 Exchange 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 inopen-end mutual funds, if any, are valued at the respective NAV of eachopen-end mutual fund on the Valuation Date. Shares of investment companies listed and traded on an exchange are valued in the same manner as any exchange-listed equity security. Suchopen-end mutual funds and listed investment companies 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 the Valuation Procedures.
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. |
Notes to Financial Statements – (continued)
December 31, 2019
| | • | | 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 has delegated theday-to-day responsibility for implementing the Valuation Procedures to the Valuation Committee. The Valuation Committee will consider all relevant factors in determining an investment’s fair value, and may seek the advice of such Fund’ssub-adviser, knowledgeable brokers, and legal counsel in making such determination. The Valuation Committee reports to the Audit Committee of the Board of Directors.
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.
Growth Opportunities HLS Fund Level 3 Holdings on December 31, 2019
Quantitative Information about Level 3 Fair Value Measurements:
| | | | | | | | | | |
Security Type / Valuation Technique* | | Unobservable Input | | Input Value(s) Range
(Weighted Average) | | | Fair Value at
December 31, 2019 | |
| | | |
Common Stock | | | | | | | | | | |
Market Approach | | EV/EBITDA | | | 12.6x | | | $ | 2,518,446 | |
Market Approach | | EV/Revenue | | | 4.34x | | | | 674,811 | |
Target Event | | Trade Price | | | $3.42 - $19.19 ($3.71) | | | | 5,460,262 | |
Last Trade | | Trade Price | | | $8.72 - $241.72 ($63.30) | | | | 19,842,580 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 28,496,099 | |
| | | | | | | | | | |
| | | |
Escrows | | | | | | | | | | |
Future Cash Distribution | | Discount | | | 20.00% | | | $ | 129,224 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 129,224 | |
| | | | | | | | | | |
| | | |
Convertible Preferred Stock | | | | | | | | | | |
Market Approach | | EV/Revenue | | | 1.25x - 5.6x (2.37x) | | | $ | 22,343,601 | |
Market Approach | | EV/EBITDA | | | 8.9x | | | | 2,358,566 | |
Last Trade | | Trade Price | | | $11.60 - $19.19 ($15.39) | | | | 3,796,339 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 28,498,506 | |
| | | | | | | | | | |
| | | |
Warrant | | | | | | | | | | |
Last Trade | | Trade Price | | | 0.05 | | | $ | 25,820 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 25,820 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 57,149,649 | |
| | | | | | | | | | |
| | * | 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. |
Notes to Financial Statements – (continued)
December 31, 2019
Small Company HLS Fund Level 3 Holdings on December 31, 2019
Quantitative Information about Level 3 Fair Value Measurements:
| | | | | | | | | | |
Security Type / Valuation Technique* | | Unobservable Input | | Input Value(s) Range
(Weighted Average) | | | Fair Value at
December 31, 2019 | |
| | | |
Common Stock | | | | | | | | | | |
Market Approach | | EV/EBITDA | | | 6.2x - 12.6x (9.9x) | | | $ | 4,803,363 | |
Target Event | | Trade Price | | | $3.42 | | | | 3,113,195 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 7,916,558 | |
| | | | | | | | | | |
| | | |
Escrows | | | | | | | | | | |
Future Cash Distribution | | Discount | | | 20.00% | | | $ | 85,420 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 85,420 | |
| | | | | | | | | | |
| | | |
Convertible Preferred Stock | | | | | | | | | | |
Market Approach | | EV/Revenue | | | 1.25x - 2.75x (1.89x) | | | $ | 6,811,247 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 6,811,247 | |
| | | | | | | | | | |
Total | | | | | | | | $ | 14,813,225 | |
| | | | | | | | | | |
| | * | 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. |
The trade date for senior floating rate interests purchased in the primary loan market is considered the date on which the loan allocations are determined. The 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 theex-dividend date. In general, dividend income from foreign securities is recorded on theex-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 additional principal receivedin-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.
Please refer to Note 8 for Securities Lending information.
| | 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 and interest from securities in which a 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 class of each Fund’s shares are executed in accordance with the investment instructions of the contract holders and plan participants. The NAV of each class of each Fund’s shares is determined as |
Notes to Financial Statements – (continued)
December 31, 2019
| | 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 andnon-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 onex-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) | Restricted Securities – Each Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if applicable, is included at the end of each Fund’s Schedule of Investments. |
| | 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, 2019. |
In connection with a Fund’s ability to purchase investments on a when-issued or forward commitment basis, the Fund may enter intoto-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, 2019.
| | 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 debt holders 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 tonon-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 ofnon-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, 2019.
Notes to Financial Statements – (continued)
December 31, 2019
| | 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, 2019. |
| | 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, 2019. |
| 4. | Financial Derivative Instruments: |
The following disclosures contain information on how and why a Fund may use 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 ofperiod-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 year ended December 31, 2019, each of Capital Appreciation HLS Fund, High Yield HLS Fund, International Opportunities HLS Fund and Total Return Bond HLS Fund had used 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 may use 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 year ended December 31, 2019, each of Balanced HLS Fund, Capital Appreciation HLS Fund, Total Return Bond HLS Fund and U.S. Government Securities HLS Fund had used 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 |
Notes to Financial Statements – (continued)
December 31, 2019
| | contracts are eitherover-the-counter (“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 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, swaps, investments or currency transactions 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 year ended December 31, 2019, Total Return Bond HLS Fund had used 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 theover-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 in accordance with the Valuation Procedures. 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 swaps. 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 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.
Notes to Financial Statements – (continued)
December 31, 2019
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 ofyear-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 year ended December 31, 2019, each of High Yield HLS Fund and Total Return Bond HLS Fund had used 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 year ended December 31, 2019, each of Total Return Bond HLS Fund and U.S. Government Securities HLS Fund had used Interest Rate Swap Contracts.
Total Return Swap Contracts – Certain Funds may invest in total return swap contracts in pursuit of the Fund’s investment objective or for hedging purposes. An investment in a total return swap allows a Fund to gain or mitigate exposure to underlying reference assets. Total return swap contracts involve commitments where cash flows are exchanged based on the price of underlying reference assets and based on a fixed or variable interest rate. One party receives payments based on the price appreciation or depreciation of the underlying reference asset, in exchange for paying to or receiving from the counterparty seller an agreed-upon interest rate. A variable interest rate may be correlated to a base rate, such as the LIBOR, and is adjusted each reset period, which is defined at the beginning of the contract. Therefore, if interest rates increase over the term of the swap contract, the party paying the rate may be required to pay a higher rate at each swap reset date.
Total return swap contracts on indices involve commitments to pay interest in exchange for a market-linked return. One party pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund
Notes to Financial Statements – (continued)
December 31, 2019
will receive a payment from or make a payment to the counterparty. If the Fund is a payer in a total return swap, it may be subject to unlimited losses. They are also subject to counterparty risk. If the counterparty fails to meet its obligations, the Fund may lose money.
During the year ended December 31, 2019, Total Return Bond HLS Fund had used Total Return Swap Contracts.
| | e) | Additional Derivative Instrument Information: |
Balanced HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 148,169 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 148,169 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 148,169 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 148,169 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative 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 Statement of Assets and Liabilities. |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 688,365 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 688,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 688,365 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 688,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | (326,284 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (326,284 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (326,284 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (326,284 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019, 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 | | 204 |
Capital Appreciation HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | 92,912 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 92,912 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 92,912 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 92,912 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | — | | | $ | — | | | $ | — | | | $ | 182,173 | | | $ | — | | | $ | — | | | $ | 182,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | 182,173 | | | $ | — | | | $ | — | | | $ | 182,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative 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 Statement of Assets and Liabilities. |
Notes to Financial Statements – (continued)
December 31, 2019
Capital Appreciation HLS Fund – (continued)
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | — | | | $ | — | | | $ | 11,906,527 | | | $ | — | | | $ | — | | | $ | 11,906,527 | |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 206,918 | | | | — | | | | — | | | | — | | | | — | | | | 206,918 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 206,918 | | | $ | — | | | $ | 11,906,527 | | | $ | — | | | $ | — | | | $ | 12,113,445 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 2,474,753 | | | $ | — | | | $ | — | | | $ | 2,474,753 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | 438,494 | | | | — | | | | — | | | | — | | | | — | | | | 438,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 438,494 | | | $ | — | | | $ | 2,474,753 | | | $ | — | | | $ | — | | | $ | 2,913,247 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019, 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 | | | 398 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 5,756,887 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 13,694,499 | |
High Yield HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on swap contracts(1) | | $ | — | | | $ | — | | | $ | 122,308 | | | $ | — | | | $ | — | | | $ | — | | | $ | 122,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | 122,308 | | | $ | — | | | $ | — | | | $ | — | | | $ | 122,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on foreign currency contracts | | $ | — | | | $ | 40,031 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 40,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 40,031 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 40,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative appreciation 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 on OTC swap contracts, if applicable. |
Notes to Financial Statements – (continued)
December 31, 2019
High Yield HLS Fund – (continued)
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | — | | | $ | (54,937 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (54,937 | ) |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 281,939 | | | | — | | | | — | | | | — | | | | — | | | | 281,939 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 281,939 | | | $ | (54,937 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 227,002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of swap contracts | | $ | — | | | $ | — | | | $ | 122,308 | | | $ | — | | | $ | — | | | $ | — | | | $ | 122,308 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (55,881 | ) | | | — | | | | — | | | | — | | | | — | | | | (55,881 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (55,881 | ) | | $ | 122,308 | | | $ | — | | | $ | — | | | $ | — | | | $ | 66,427 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019, 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 | | $ | 3,212,000 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 612,225 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 4,791,212 | |
International Opportunities HLS Fund
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | $ | (16,254 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (16,254 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (16,254 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (16,254 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019, 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 Sold at Contract Amount | | $ | 730,498 | |
Notes to Financial Statements – (continued)
December 31, 2019
Total Return Bond HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 2,626,843 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,626,843 | |
Unrealized appreciation on futures contracts(1) | | | 1,384,659 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,384,659 | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 234,776 | | | | — | | | | — | | | | — | | | | — | | | | 234,776 | |
Unrealized appreciation on swap contracts(2) | | | 632,532 | | | | — | | | | 3,096,257 | | | | — | | | | — | | | | — | | | | 3,728,789 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,644,034 | | | $ | 234,776 | | | $ | 3,096,257 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,975,067 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 2,722,829 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,722,829 | |
Unrealized depreciation on foreign currency contracts | | | — | | | | 1,123,073 | | | | — | | | | — | | | | — | | | | — | | | | 1,123,073 | |
Unrealized depreciation on swap contracts(2) | | | 6,930,055 | | | | — | | | | 1,515,727 | | | | — | | | | — | | | | — | | | | 8,445,782 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 9,652,884 | | | $ | 1,123,073 | | | $ | 1,515,727 | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,291,684 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative appreciation and 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 Statement of Assets and Liabilities. |
| | (2) | Amount represents the cumulative appreciation and 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 and depreciation on OTC swap contracts, if applicable. |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | (688,017 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (688,017 | ) |
Net realized gain (loss) on futures contracts | | | 19,971,254 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 19,971,254 | |
Net realized gain (loss) on written options contracts | | | 810,184 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 810,184 | |
Net realized gain (loss) on swap contracts | | | (6,449,852 | ) | | | — | | | | 5,069 | | | | — | | | | — | | | | — | | | | (6,444,783 | ) |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 1,753,329 | | | | — | | | | — | | | | — | | | | — | | | | 1,753,329 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 13,643,569 | | | $ | 1,753,329 | | | $ | 5,069 | | | $ | — | | | $ | — | | | $ | — | | | $ | 15,401,967 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
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 | | $ | 1,311,727 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,311,727 | |
Net change in unrealized appreciation (depreciation) of futures contracts | | | (7,448,465 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (7,448,465 | ) |
Net change in unrealized appreciation (depreciation) of written options contracts | | | 224,937 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 224,937 | |
Net change in unrealized appreciation (depreciation) of swap contracts | | | (5,266,775 | ) | | | — | | | | 5,740,436 | | | | — | | | | — | | | | — | | | | 473,661 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (969,546 | ) | | | — | | | | — | | | | — | | | | — | | | | (969,546 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (11,178,576 | ) | | $ | (969,546 | ) | | $ | 5,740,436 | | | $ | — | | | $ | — | | | $ | — | | | $ | (6,407,686 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
Total Return Bond HLS Fund – (continued)
For the year ended December 31, 2019, 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 | | | 80,626,333 | |
Futures Contracts Long at Number of Contracts | | | 2,860 | |
Futures Contracts Short at Number of Contracts | | | (944 | ) |
Written Options Contracts at Number of Contracts | | | (320,560,004 | ) |
Swap Contracts at Notional Amount | | $ | 352,535,859 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 4,436,292 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 44,539,229 | |
U.S. Government Securities HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Exchange
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(1) | | $ | 588,088 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 588,088 | |
Unrealized depreciation on swap contracts(2) | | | 1,860,127 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,860,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 2,448,215 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,448,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative 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 Statement of Assets and Liabilities. |
| | (2) | Amount represents the cumulative 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 depreciation on OTC swap contracts, if applicable. |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 6,101,592 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 6,101,592 | |
Net realized gain (loss) on swap contracts | | | (464,689 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (464,689 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,636,903 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 5,636,903 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | (2,220,130 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (2,220,130 | ) |
Net change in unrealized appreciation (depreciation) of swap contracts | | | (1,514,095 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,514,095 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (3,734,225 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (3,734,225 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2019, 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 | | | 957 | |
Futures Contracts Short at Number of Contracts | | | (42 | ) |
Swap Contracts at Notional Amount | | $ | 35,828,083 | |
| | (1) | Amount represents the cumulative appreciation and 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 Statement of Assets and Liabilities. |
Notes to Financial Statements – (continued)
December 31, 2019
| | 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 a Fund, against any liabilities or payment obligations of a Fund to the clearing brokers. A Fund is required to deposit financial collateral (including cash collateral) at the Fund’s custodian on behalf of clearing brokers and counterparties to continually meet the original and maintenance requirements established by the clearing brokers and counterparties. Such requirements are specific to the respective clearing broker or counterparty. Certain master netting arrangements may not be enforceable in a bankruptcy. |
The following tables present a Fund’s 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 a Fund as of December 31, 2019:
Balanced HLS Fund
| | | | | | | | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | — | | | $ | (148,169 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | — | | | | (148,169 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | 148,169 | |
| | | | | | | | |
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 | | $ | 92,912 | | | $ | — | |
Futures contracts | | | — | | | | (182,173 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 92,912 | | | | (182,173 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | 182,173 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 92,912 | | | $ | — | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Assets | | | Financial
Instruments
and Derivatives
Available
for Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of Assets | |
Citibank NA | | $ | 76,704 | | | $ | — | | | $ | — | | | $ | — | | | $ | 76,704 | |
RBC Dominion Securities, Inc. | | | 16,208 | | | | — | | | | — | | | | — | | | | 16,208 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 92,912 | | | $ | — | | | $ | — | | | $ | — | | | $ | 92,912 | |
| | | | | | | | | | | | | | | | | | | | |
| | * | 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 | | $ | — | | | $ | (40,031 | ) |
Swap contracts | | | 122,308 | | | | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 122,308 | | | | (40,031 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (122,308 | ) | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | (40,031 | ) |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Liabilities | | | Financial
Instruments
and Derivatives
Available
for Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of Liabilities | |
Bank of Montreal | | $ | (6,571 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (6,571 | ) |
Citibank NA | | | (33,460 | ) | | | — | | | | — | | | | — | | | | (33,460 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (40,031 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (40,031 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
Notes to Financial Statements – (continued)
December 31, 2019
Total Return Bond HLS Fund
| | | | | | | | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | 234,776 | | | $ | (1,123,073 | ) |
Futures contracts | | | 1,384,659 | | | | (2,722,829 | ) |
Purchased options | | | 2,626,843 | | | | — | |
Swap contracts | | | 3,728,789 | | | | (8,445,782 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 7,975,067 | | | | (12,291,684 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (2,163,977 | ) | | | 9,718,045 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 5,811,090 | | | $ | (2,573,639 | ) |
| | | | | | | | |
Total Return Bond HLS Fund
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amount
of Assets | | | Financial
Instruments
and Derivatives
Available
for Offset | | | Non-cash
Collateral
Received* | | | Cash
Collateral
Received* | | | Net Amount
of Assets | |
Banc of America Securities LLC | | $ | 417,239 | | | $ | — | | | $ | — | | | $ | — | | | $ | 417,239 | |
Barclays | | | 394,425 | | | | (83,892 | ) | | | — | | | | — | | | | 310,533 | |
BNP Paribas Securities Services | | | 2,241 | | | | — | | | | — | | | | — | | | | 2,241 | |
Citibank NA | | | 709,312 | | | | (169,034 | ) | | | — | | | | — | | | | 540,278 | |
Credit Suisse International | | | 993,911 | | | | (733,836 | )�� | | | — | | | | — | | | | 260,075 | |
Deutsche Bank Securities, Inc. | | | 539,634 | | | | (15,482 | ) | | | — | | | | — | | | | 524,152 | |
Goldman Sachs & Co. | | | 777,863 | | | | (387,483 | ) | | | — | | | | — | | | | 390,380 | |
JP Morgan Chase & Co. | | | 803,277 | | | | (63,412 | ) | | | — | | | | (120,000 | ) | | | 619,865 | |
Morgan Stanley | | | 1,163,134 | | | | (298,737 | ) | | | — | | | | — | | | | 864,397 | |
State Street Global Markets LLC | | | 10,054 | | | | (10,054 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 5,811,090 | | | $ | (1,761,930 | ) | | $ | — | | | $ | (120,000 | ) | | $ | 3,929,160 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Counterparty | | Gross Amount
of Liabilities | | | Financial
Instruments
and Derivatives
Available
for Offset | | | Non-cash
Collateral
Pledged* | | | Cash
Collateral
Pledged* | | | Net Amount
of Liabilities | |
Barclays | | $ | (83,892 | ) | | $ | 83,892 | | | $ | — | | | $ | — | | | $ | — | |
Canadian Imperial Bank of Commerce | | | (21,441 | ) | | | — | | | | — | | | | — | | | | (21,441 | ) |
Citibank NA | | | (169,034 | ) | | | 169,034 | | | | — | | | | — | | | | — | |
Credit Suisse International | | | (733,836 | ) | | | 733,836 | | | | — | | | | — | | | | — | |
Deutsche Bank Securities, Inc. | | | (15,482 | ) | | | 15,482 | | | | — | | | | — | | | | — | |
Goldman Sachs & Co. | | | (387,483 | ) | | | 387,483 | | | | — | | | | — | | | | — | |
HSBC Bank USA | | | (290,549 | ) | | | — | | | | — | | | | — | | | | (290,549 | ) |
JP Morgan Chase & Co. | | | (63,412 | ) | | | 63,412 | | | | — | | | | — | | | | — | |
Morgan Stanley | | | (298,737 | ) | | | 298,737 | | | | — | | | | — | | | | — | |
RBC Dominion Securities, Inc. | | | (14,304 | ) | | | — | | | | — | | | | — | | | | (14,304 | ) |
Standard Chartered Bank | | | (27,446 | ) | | | — | | | | — | | | | — | | | | (27,446 | ) |
State Street Global Markets LLC | | | (464,421 | ) | | | 10,054 | | | | — | | | | — | | | | (454,367 | ) |
Toronto-Dominion Bank | | | (3,602 | ) | | | — | | | | — | | | | — | | | | (3,602 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (2,573,639 | ) | | $ | 1,761,930 | | | $ | — | | | $ | — | | | $ | (811,709 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | 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 | | $ | — | | | $ | (588,088 | ) |
Swap contracts | | | — | | | | (1,860,127 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | — | | | | (2,448,215 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | — | | | | 2,448,215 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
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 ofnon-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, 2019. 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 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. |
Notes to Financial Statements – (continued)
December 31, 2019
| | c) | Distributions and Components of Distributable Earnings– The tax character of distributions paid by each Fund for the years ended December 31, 2019 and December 31, 2018 are as follows: |
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
Fund | | Ordinary
Income | | | Long-Term
Capital Gains | | | Ordinary
Income | | | Long-Term
Capital Gains | |
Balanced HLS Fund | | $ | 42,007,653 | | | $ | 167,293,542 | | | $ | 49,937,858 | | | $ | 89,763,845 | |
Capital Appreciation HLS Fund | | | 99,015,169 | | | | 413,992,165 | | | | 155,684,592 | | | | 357,773,863 | |
Disciplined Equity HLS Fund | | | 8,181,434 | | | | 67,970,111 | | | | 10,105,656 | | | | 57,940,779 | |
Dividend and Growth HLS Fund | | | 58,525,929 | | | | 373,240,761 | | | | 62,479,436 | | | | 354,664,659 | |
Global Growth HLS Fund | | | 6,279,746 | | | | 64,635,345 | | | | 4,474,845 | | | | 41,743,435 | |
Growth Opportunities HLS Fund | | | 97,423,710 | | | | 212,417,801 | | | | 87,935,173 | | | | 121,869,097 | |
Healthcare HLS Fund | | | 136,553 | | | | 28,725,129 | | | | 6,465,231 | | | | 13,897,527 | |
High Yield HLS Fund | | | 15,580,330 | | | | — | | | | 16,383,413 | | | | — | |
International Opportunities HLS Fund | | | 21,562,148 | | | | 44,838,605 | | | | 26,985,679 | | | | — | |
MidCap HLS Fund | | | 4,865,029 | | | | 304,988,085 | | | | 18,326,031 | | | | 193,154,481 | |
MidCap Growth HLS Fund | | | 591,291 | | | | 16,564,526 | | | | 745,839 | | | | 8,559,025 | |
MidCap Value HLS Fund | | | 3,413,839 | | | | 38,045,643 | | | | 3,997,177 | | | | 22,842,554 | |
Small Cap Growth HLS Fund | | | 47,675,414 | | | | 169,755,491 | | | | — | | | | 83,609,724 | |
Small Company HLS Fund | | | 14,521,011 | | | | 96,371,188 | | | | — | | | | 41,270,164 | |
Stock HLS Fund | | | 29,221,971 | | | | 116,547,978 | | | | 21,980,653 | | | | — | |
Total Return Bond HLS Fund | | | 82,153,678 | | | | — | | | | 86,216,331 | | | | 7,769,724 | |
Ultrashort Bond HLS Fund | | | 8,913,051 | | | | — | | | | 5,554,707 | | | | — | |
U.S. Government Securities HLS Fund | | | 8,237,791 | | | | — | | | | 8,467,369 | | | | — | |
Value HLS Fund | | | 8,982,252 | | | | 42,595,919 | | | | 12,380,863 | | | | 40,765,988 | |
As of December 31, 2019, the components of distributable earnings (deficit) for each Fund on a tax basis are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gains | | | Accumulated
Capital and
Other Losses | | | Other
Temporary
Differences | | | Unrealized
Appreciation
on Investments | | | Total
Accumulated
Earnings
(Deficit) | |
Balanced HLS Fund | | $ | 6,715,207 | | | $ | 82,168,207 | | | $ | — | | | $ | (44,409 | ) | | $ | 476,175,040 | | | $ | 565,014,045 | |
Capital Appreciation HLS Fund | | | 32,753,308 | | | | 149,906,516 | | | | — | | | | (269 | ) | | | 701,584,656 | | | | 884,244,211 | |
Disciplined Equity HLS Fund | | | 661,603 | | | | 47,159,027 | | | | — | | | | — | | | | 229,322,832 | | | | 277,143,462 | |
Dividend and Growth HLS Fund | | | 3,203,463 | | | | 152,643,462 | | | | — | | | | — | | | | 1,149,763,395 | | | | 1,305,610,320 | |
Global Growth HLS Fund | | | 1,786,093 | | | | 39,766,533 | | | | — | | | | — | | | | 151,174,469 | | | | 192,727,095 | |
Growth Opportunities HLS Fund | | | 19,618,449 | | | | 97,818,987 | | | | — | | | | — | | | | 263,051,711 | | | | 380,489,147 | |
Healthcare HLS Fund | | | 5,101,502 | | | | 35,703,131 | | | | — | | | | — | | | | 53,216,486 | | | | 94,021,119 | |
High Yield HLS Fund | | | 13,585,736 | | | | — | | | | (19,434,433 | ) | | | — | | | | 4,182,347 | | | | (1,666,350 | ) |
International Opportunities HLS Fund | | | 20,163,115 | | | | — | | | | (22,796,193 | ) | | | — | | | | 157,724,549 | | | | 155,091,471 | |
MidCap HLS Fund | | | 3,900,010 | | | | 143,863,033 | | | | — | | | | — | | | | 559,165,639 | | | | 706,928,682 | |
MidCap Growth HLS Fund | | | 4,000,186 | | | | 1,232,011 | | | | — | | | | — | | | | 17,332,342 | | | | 22,564,539 | |
MidCap Value HLS Fund | | | 131,671 | | | | 20,270,395 | | | | — | | | | — | | | | 54,414,508 | | | | 74,816,574 | |
Small Cap Growth HLS Fund | | | 11,763,012 | | | | 34,103,879 | | | | — | | | | — | | | | 258,543,882 | | | | 304,410,773 | |
Small Company HLS Fund | | | 24,851,298 | | | | 41,113,203 | | | | — | | | | — | | | | 102,498,310 | | | | 168,462,811 | |
Stock HLS Fund | | | 4,320,924 | | | | 89,887,636 | | | | — | | | | — | | | | 493,359,071 | | | | 587,567,631 | |
Total Return Bond HLS Fund | | | 81,807,228 | | | | — | | | | — | | | | (683,034 | ) | | | 45,819,064 | | | | 126,943,258 | |
Ultrashort Bond HLS Fund | | | 10,522,305 | | | | — | | | | (577,794 | ) | | | — | | | | 1,131,256 | | | | 11,075,767 | |
U.S. Government Securities HLS Fund | | | 7,093,225 | | | | — | | | | (26,714,682 | ) | | | (303,857 | ) | | | 1,453,058 | | | | (18,472,256 | ) |
Value HLS Fund | | | 284,094 | | | | 31,554,266 | | | | — | | | | — | | | | 109,486,875 | | | | 141,325,235 | |
| | 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 prior year adjustments. 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 distributable earnings or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2019, the Funds recorded reclassifications to increase (decrease) the accounts listed below: |
| | | | | | | | |
Fund | | Paid-in-Capital | | | Distributable
Earnings | |
Balanced HLS Fund | | $ | (12,484 | ) | | $ | 12,484 | |
Capital Appreciation HLS Fund | | | (21,465 | ) | | | 21,465 | |
Growth Opportunities HLS Fund | | | (7,231 | ) | | | 7,231 | |
Small Company HLS Fund | | | (8,029 | ) | | | 8,029 | |
Notes to Financial Statements – (continued)
December 31, 2019
| | e) | Tax Basis of Investments– The aggregate cost of investments for federal income tax purposes at December 31, 2019 is different from book purposes primarily due to wash sale loss deferrals, passive foreign investment company (PFIC)mark-to-market adjustments, partnership adjustments andnon-taxable distributions from underlying investments. The net unrealized appreciation/(depreciation) on investments for tax purposes, which consists of gross unrealized appreciation and depreciation, was also different from book purposes primarily due to wash sale loss deferrals and mark-to-market adjustments on swaps, forwards, futures, options, PFICs, partnership adjustments and nontaxable distributions from underlying investments. Both the cost and unrealized appreciation and depreciation for federal income tax purposes are disclosed below: |
| | | | | | | | | | | | | | | | |
Fund | | Tax Cost | | | Gross Unrealized
Appreciation | | | Gross Unrealized
(Depreciation) | | | Net Unrealized
Appreciation
(Depreciation) | |
Balanced HLS Fund | | $ | 1,616,972,817 | | | $ | 495,208,139 | | | $ | (19,034,865 | ) | | $ | 476,173,274 | |
Capital Appreciation HLS Fund | | | 3,695,724,057 | | | | 773,049,590 | | | | (71,378,094 | ) | | | 701,671,496 | |
Disciplined Equity HLS Fund | | | 424,962,220 | | | | 233,986,856 | | | | (4,664,024 | ) | | | 229,322,832 | |
Dividend and Growth HLS Fund | | | 2,159,381,993 | | | | 1,175,687,713 | | | | (25,924,318 | ) | | | 1,149,763,395 | |
Global Growth HLS Fund | | | 372,637,730 | | | | 156,520,836 | | | | (5,338,649 | ) | | | 151,182,187 | |
Growth Opportunities HLS Fund | | | 1,372,066,011 | | | | 304,648,130 | | | | (41,589,699 | ) | | | 263,058,431 | |
Healthcare HLS Fund | | | 184,045,802 | | | | 62,510,963 | | | | (9,293,690 | ) | | | 53,217,273 | |
High Yield HLS Fund | | | 243,905,145 | | | | 11,521,541 | | | | (7,340,122 | ) | | | 4,181,419 | |
International Opportunities HLS Fund | | | 1,071,818,616 | | | | 166,670,690 | | | | (8,955,803 | ) | | | 157,714,887 | |
MidCap HLS Fund | | | 1,539,592,300 | | | | 609,350,151 | | | | (50,184,513 | ) | | | 559,165,638 | |
MidCap Growth HLS Fund | | | 85,703,107 | | | | 19,388,090 | | | | (2,055,748 | ) | | | 17,332,342 | |
MidCap Value HLS Fund | | | 269,358,199 | | | | 60,269,852 | | | | (5,855,344 | ) | | | 54,414,508 | |
Small Cap Growth HLS Fund | | | 1,071,261,726 | | | | 314,722,702 | | | | (56,178,820 | ) | | | 258,543,882 | |
Small Company HLS Fund | | | 531,727,776 | | | | 114,199,158 | | | | (11,701,033 | ) | | | 102,498,125 | |
Stock HLS Fund | | | 1,023,243,392 | | | | 499,285,354 | | | | (5,926,574 | ) | | | 493,358,780 | |
Total Return Bond HLS Fund | | | 2,716,781,342 | | | | 74,980,172 | | | | (29,171,732 | ) | | | 45,808,440 | |
Ultrashort Bond HLS Fund | | | 456,146,971 | | | | 1,189,805 | | | | (58,549 | ) | | | 1,131,256 | |
U.S. Government Securities HLS Fund | | | 369,846,793 | | | | 5,054,526 | | | | (3,601,468 | ) | | | 1,453,058 | |
Value HLS Fund | | | 338,808,633 | | | | 115,606,056 | | | | (6,119,896 | ) | | | 109,486,160 | |
| | f) | Capital Loss Carryforward– Under the Regulated Investment Company Modernization Act of 2010, funds are permitted to carry forward capital losses for an unlimited period of time. |
At December 31, 2019 (tax year end), each Fund’s capital loss carryforwards for U.S. federal income tax purposes were as follows:
| | | | | | | | |
Fund | | Short-Term
Capital Loss
Carryforward
with No Expiration | | | Long-Term
Capital Loss
Carryforward
with No Expiration | |
High Yield HLS Fund | | $ | 1,669,478 | | | $ | 17,764,955 | |
International Opportunities HLS Fund | | | 18,338,539 | | | | 4,457,654 | |
Ultrashort Bond HLS Fund | | | 96,680 | | | | 481,114 | |
U.S. Government Securities HLS Fund | | | 472,755 | | | | 26,241,927 | |
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, MidCap HLS Fund, MidCap Growth HLS Fund, MidCap Value HLS Fund, Small Cap Growth HLS Fund, Small Company 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, 2019.
During the year ended December 31, 2019, the Total Return Bond HLS Fund, Ultrashort Bond HLS Fund and U.S. Government Securities HLS Fund had utilized $39,899,100, $272,202 and $5,479,153 of prior year capital loss carryforwards, respectively.
| | g) | Accounting for Uncertainty in Income Taxes – Pursuant to provisions set forth by U.S. GAAP, Hartford Funds Management Company, LLC (“HFMC”) reviews each Fund’s tax positions for all open tax years. As of December 31, 2019, HFMC had reviewed the open tax years and concluded that there was no reason to record a liability for net unrecognized tax obligations relating to uncertain income tax positions. Each Fund files U.S. tax returns. Although the statute of limitations for examining a Fund’s U.S. tax returns remains open for 3 years, no examination is currently in progress. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended December 31, 2019, the Funds did not incur any interest or penalties. HFMC is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax obligations will significantly change in the next twelve months. |
| | a) | Investment Management Agreement – 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 |
Notes to Financial Statements – (continued)
December 31, 2019
| | 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 asub-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, 2019; 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 |
| |
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 |
Notes to Financial Statements – (continued)
December 31, 2019
| | |
Fund | | Management Fee Rates |
| |
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 Growth 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 |
| |
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 |
| |
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 | | 0.6900% on first $250 million and; |
| | 0.6425% on next $250 million and; |
| | 0.6325% 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% and 0.04% of average daily net assets until April 30, 2020, for the Balanced HLS Fund and MidCap Value HLS Fund, respectively. |
Notes to Financial Statements – (continued)
December 31, 2019
| | 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. |
| | | | |
Balanced HLS Fund, Capital Appreciation HLS Fund, Growth Opportunities HLS Fund, Small Cap Growth HLS Fund, Small Company HLS Fund
and Total Return Bond HLS Fund | |
| Average Daily Net Assets | | Annual Fees | |
First $3.5 billion and; | | | 0.018% | |
Next $3.5 billion and | | | 0.014% | |
Amount over $7 billion | | | 0.010% | |
| |
Disciplined Equity HLS Fund, Dividend and Growth HLS Fund, Global Growth HLS Fund, Healthcare HLS Fund, High Yield HLS Fund,
International Opportunities HLS Fund, MidCap HLS Fund, MidCap Growth HLS Fund, MidCap Value HLS Fund, Stock HLS Fund,
U.S. Government Securities HLS Fund, Ultrashort Bond HLS Fund and Value HLS Fund | |
| Average Daily Net Assets | | Annual Fees | |
First $3.5 billion and; | | | 0.014% | |
Next $3.5 billion and | | | 0.012% | |
Amount over $7 billion | | | 0.010% | |
HFMC has delegated certain accounting and administrative services functions to State Street Bank and Trust Company (“State Street”). The costs and expenses of such delegation are borne by HFMC, not by the Funds, and HFMC compensates State Street for its services out of its own resources.
| | c) | Operating Expenses– Allocable expenses incurred by each Company are allocated to each 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 recapturenon-discounted trade commissions. Such rebates are used to pay a portion of the Funds’ expenses. |
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 | % | | | N/A | |
Capital Appreciation HLS Fund | | | 0.68 | % | | | 0.93 | % | | | 1.18 | % |
Disciplined Equity HLS Fund | | | 0.78 | % | | | 1.03 | % | | | N/A | |
Dividend and Growth HLS Fund | | | 0.68 | % | | | 0.93 | % | | | N/A | |
Global Growth HLS Fund | | | 0.80 | % | | | 1.05 | % | | | N/A | |
Growth Opportunities HLS Fund | | | 0.65 | % | | | 0.90 | % | | | 1.15 | % |
Healthcare HLS Fund | | | 0.90 | % | | | 1.16 | % | | | N/A | |
High Yield HLS Fund | | | 0.77 | % | | | 1.02 | % | | | N/A | |
International Opportunities HLS Fund | | | 0.74 | % | | | 0.99 | % | | | N/A | |
MidCap HLS Fund | | | 0.69 | % | | | 0.94 | % | | | N/A | |
MidCap Growth HLS Fund | | | 0.92 | % | | | 1.17 | % | | | N/A | |
MidCap Value HLS Fund | | | 0.81 | % | | | 1.06 | % | | | N/A | |
Small Cap Growth HLS Fund | | | 0.64 | % | | | 0.89 | % | | | N/A | |
Small Company HLS Fund | | | 0.79 | % | | | 1.04 | % | | | N/A | |
Stock HLS Fund | | | 0.51 | % | | | 0.76 | % | | | N/A | |
Total Return Bond HLS Fund | | | 0.51 | % | | | 0.76 | % | | | N/A | |
Ultrashort Bond HLS Fund | | | 0.45 | % | | | 0.70 | % | | | N/A | |
U.S. Government Securities HLS Fund | | | 0.51 | % | | | 0.76 | % | | | N/A | |
Value HLS Fund | | | 0.72 | % | | | 0.97 | % | | | N/A | |
| | 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 Rule12b-1 of the 1940 Act for Class IB shares and each Company, on behalf of certain Funds, has adopted a Distribution Plan pursuant to Rule12b-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
Notes to Financial Statements – (continued)
December 31, 2019
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’s12b-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, 2019, 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 | | $ | 9,802 | |
Capital Appreciation HLS Fund | | | 20,871 | |
Disciplined Equity HLS Fund | | | 2,958 | |
Dividend and Growth HLS Fund | | | 15,171 | |
Global Growth HLS Fund | | | 2,365 | |
Growth Opportunities HLS Fund | | | 7,408 | |
Healthcare HLS Fund | | | 1,373 | |
High Yield HLS Fund | | | 1,241 | |
International Opportunities HLS Fund | | | 5,763 | |
MidCap HLS Fund | | | 9,820 | |
MidCap Growth HLS Fund | | | 418 | |
MidCap Value HLS Fund | | | 1,478 | |
Small Cap Growth HLS Fund | | | 6,088 | |
Small Company HLS Fund | | | 2,864 | |
Stock HLS Fund | | | 6,800 | |
Total Return Bond HLS Fund | | | 10,040 | |
Ultrashort Bond HLS Fund | | | 2,385 | |
U.S. Government Securities HLS Fund | | | 1,622 | |
Value HLS Fund | | | 2,104 | |
Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. Pursuant to asub-transfer agency agreement between HASCO and DST Asset Manager Solutions, Inc. (“DST”), HASCO has delegated certain transfer agent, dividend disbursing agent and shareholder servicing agent functions to DST. 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.
For the year ended December 31, 2019, the effective rate of compensation paid to HASCO for transfer agency services as a percentage of each Class’ average daily net assets is as follows:
| | | | | | | | | | | | |
Fund | | Class IA | | | Class IB | | | Class IC | |
Balanced HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Capital Appreciation HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | 0.00 | %* |
Disciplined Equity HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Dividend and Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Global Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Growth Opportunities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | 0.00 | %* |
Healthcare HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
High Yield HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
International Opportunities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
MidCap HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
MidCap Growth HLS Fund | | | 0.01 | % | | | 0.01 | % | | | N/A | |
MidCap Value HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Small Cap Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Small Company HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Stock HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Total Return Bond HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Ultrashort Bond HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
U.S. Government Securities HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Value HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
| | * | Percentage rounds to zero. |
Notes to Financial Statements – (continued)
December 31, 2019
Each Company has entered into a securities lending agency agreement (“lending agreement”) with Citibank, N.A. (“Citibank”). A Fund may lend portfolio securities to certain borrowers in U.S. andnon-U.S. markets in an amount not to exceedone-third (33 1/3%) of the value of its total assets. If a Fund security is on loan, under the lending agreement, the borrower is required to deposit cash or liquid securities as collateral at least equal to 100% of the market value of the loaned securities; cash collateral is invested for the benefit of the Fund by the Fund’s lending agent pursuant to collateral investment guidelines. The collateral is marked to market daily, in an amount at least equal to the current market value of the securities loaned.
A Fund is subject to certain risks while its securities are on loan, including the following: (i) the risk that the borrower defaults on the loan and the collateral is inadequate to cover the Fund’s loss; (ii) the risk that the earnings on the collateral invested are not sufficient to pay fees incurred in connection with the loan; (iii) the risk that the principal value of the collateral invested may decline; (iv) the risk that the borrower may use the loaned securities to cover a short sale, which may in turn place downward pressure on the market prices of the loaned securities; (v) the risk that return of loaned securities could be delayed and interfere with portfolio management decisions; and (vi) the risk that any efforts to restrict or recall the securities for purposes of voting may not be effective. These events could also trigger adverse tax consequences for the Fund.
The Funds retain loan fees and the interest on cash collateral investments but are required to pay the borrower a rebate for the use of cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Investment Income from securities lending. The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Investment Income from dividends or interest, respectively, on the Statements of Operations.
The following table presents the market value of the Funds’ securities on loan, net of amounts available for offset under the master netting arrangements and any related collateral received by the Funds as of December 31, 2019.
| | | | | | | | | | | | |
Fund | | Investment
Securities on
Loan, at market
value, Presented
on the Statement
of Assets and
Liabilities(1) | | | Collateral Posted
by Borrower | | | Net Amount(2) | |
Balanced HLS Fund | | $ | 1,259,139 | | | $ | (1,259,139 | ) | | $ | — | |
Capital Appreciation HLS Fund | | | 36,073,339 | | | | (36,073,339 | ) | | | — | |
Global Growth HLS Fund | | | 2,354,301 | | | | (2,354,301 | ) | | | — | |
Growth Opportunities HLS Fund | | | 34,718,346 | | | | (34,718,346 | ) | | | — | |
Healthcare HLS Fund | | | 2,857,063 | | | | (2,857,063 | ) | | | — | |
International Opportunities HLS Fund | | | 7,283,858 | | | | (7,283,858 | ) | | | — | |
MidCap HLS Fund | | | 9,661,255 | | | | (9,661,255 | ) | | | — | |
MidCap Growth HLS Fund | | | 692,811 | | | | (692,811 | ) | | | — | |
MidCap Value HLS Fund | | | 3,231,912 | | | | (3,231,912 | ) | | | — | |
Small Cap Growth HLS Fund | | | 13,788,323 | | | | (13,788,323 | ) | | | — | |
Small Company HLS Fund | | | 8,365,526 | | | | (8,365,526 | ) | | | — | |
Total Return Bond HLS Fund | | | 7,460,798 | | | | (7,460,798 | ) | | | — | |
Ultrashort Bond HLS Fund | | | 7,099,310 | | | | (7,099,310 | ) | | | — | |
| (1) | It is each Fund’s policy to obtain additional collateral from, or return excess collateral to, the borrower by the end of the next business day following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than that required under the lending contract. |
| (2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
Notes to Financial Statements – (continued)
December 31, 2019
The total cash and non-cash collateral received by each Fund in connection with securities lending transactions is presented below:
| | | | | | | | |
Fund | | Cash
Collateral | | | Non-Cash
Collateral | |
Balanced HLS Fund | | $ | 1,296,480 | | | $ | — | |
Capital Appreciation HLS Fund | | | 36,904,443 | | | | — | |
Global Growth HLS Fund | | | 2,417,250 | | | | — | |
Growth Opportunities HLS Fund | | | 34,985,906 | | | | 251,326 | |
Healthcare HLS Fund | | | 2,978,534 | | | | — | |
International Opportunities HLS Fund | | | 7,572,918 | | | | — | |
MidCap HLS Fund | | | 9,784,951 | | | | — | |
MidCap Growth HLS Fund | | | 699,591 | | | | — | |
MidCap Value HLS Fund | | | 3,401,914 | | | | 1 | |
Small Cap Growth HLS Fund | | | 12,322,305 | | | | 2,097,033 | |
Small Company HLS Fund | | | 8,609,022 | | | | — | |
Total Return Bond HLS Fund | | | 7,704,490 | | | | — | |
Ultrashort Bond HLS Fund | | | 7,408,300 | | | | — | |
The following tables reflect a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of December 31, 2019.
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
| | | | | | | | | | | | | | | | | | | | |
| | | Overnight and
Continuous | | | <30 days | | | Between
30 & 90 days | | | >90 days | | | Total | |
| Balanced HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Municipal Bonds | | $ | 1,296,480 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,296,480 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 1,296,480 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,296,480 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 1,296,480 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Capital Appreciation HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 36,904,443 | | | $ | — | | | $ | — | | | $ | — | | | $ | 36,904,443 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 36,904,443 | | | $ | — | | | $ | — | | | $ | — | | | $ | 36,904,443 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | | | | | | | | | | | | | | | | $ | 36,904,443 | |
| | | | | | | | | | | | | | | | | | | | |
| Global Growth HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 2,417,250 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,417,250 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 2,417,250 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,417,250 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | | | | | | | | | | | | | | | | $ | 2,417,250 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Growth Opportunities HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 34,985,906 | | | $ | — | | | $ | — | | | $ | — | | | $ | 34,985,906 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 34,985,906 | | | $ | — | | | $ | — | | | $ | — | | | $ | 34,985,906 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 34,985,906 | |
| | | | | | | | | | | | |
| | | | | |
| Healthcare HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 2,978,534 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,978,534 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 2,978,534 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,978,534 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 2,978,534 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| International Opportunities HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 7,572,918 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,572,918 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 7,572,918 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,572,918 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 7,572,918 | |
| | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | | | | | |
| | | Overnight and
Continuous | | | <30 days | | | Between
30 & 90 days | | | >90 days | | | Total | |
| | | | | |
| MidCap HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 9,784,951 | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,784,951 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 9,784,951 | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,784,951 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 9,784,951 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| MidCap Growth HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 699,591 | | | $ | — | | | $ | — | | | $ | — | | | $ | 699,591 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 699,591 | | | $ | — | | | $ | — | | | $ | — | | | $ | 699,591 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 699,591 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| MidCap Value HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 3,401,914 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,401,914 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 3,401,914 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,401,914 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 3,401,914 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Small Cap Growth HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 12,322,305 | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,322,305 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 12,322,305 | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,322,305 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 12,322,305 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Small Company HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 8,609,022 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,609,022 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 8,609,022 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,609,022 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 8,609,022 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total Return Bond HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Corporate Bonds | | $ | 3,748,498 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,748,498 | |
Municipal Bonds | | | 3,955,992 | | | | — | | | | — | | | | — | | | | 3,955,992 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 7,704,490 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,704,490 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 7,704,490 | |
| | | | | | | | | | | | | | | | | | | | |
| Ultrashort Bond HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Corporate Bonds | | $ | 104,671 | | | $ | — | | | $ | — | | | $ | — | | | $ | 104,671 | |
U.S. Government Securities | | | 7,303,629 | | | | — | | | | — | | | | — | | | | 7,303,629 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 7,408,300 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,408,300 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 7,408,300 | |
| | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the payable for cash collateral received on securities on loan. This will generally be in the “Overnight and Continuous” column as the securities are typically callable on demand. |
Notes to Financial Statements – (continued)
December 31, 2019
| 10. | Investment Transactions: |
For the year ended December 31, 2019, 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 | | | Cost of Purchases
For U.S.
Government
Obligations | | |
Sales Proceeds
For U.S.
Government
Obligations | | | Total Cost of
Purchases | | | Total Sales
Proceeds | |
Balanced HLS Fund | | $ | 585,000,672 | | | $ | 807,881,079 | | | $ | 180,690,691 | | | $ | 176,055,569 | | | $ | 765,691,363 | | | $ | 983,936,648 | |
Capital Appreciation HLS Fund | | | 2,360,107,579 | | | | 3,121,006,134 | | | | — | | | | — | | | | 2,360,107,579 | | | | 3,121,006,134 | |
Disciplined Equity HLS Fund | | | 93,165,615 | | | | 180,920,961 | | | | — | | | | — | | | | 93,165,615 | | | | 180,920,961 | |
Dividend and Growth HLS Fund | | | 578,822,176 | | | | 963,429,211 | | | | — | | | | — | | | | 578,822,176 | | | | 963,429,211 | |
Global Growth HLS Fund | | | 244,516,149 | | | | 306,251,691 | | | | — | | | | — | | | | 244,516,149 | | | | 306,251,691 | |
Growth Opportunities HLS Fund | | | 1,013,297,666 | | | | 1,201,317,708 | | | | — | | | | — | | | | 1,013,297,666 | | | | 1,201,317,708 | |
Healthcare HLS Fund | | | 98,753,252 | | | | 225,162,950 | | | | — | | | | — | | | | 98,753,252 | | | | 225,162,950 | |
High Yield HLS Fund | | | 101,209,310 | | | | 119,133,824 | | | | — | | | | — | | | | 101,209,310 | | | | 119,133,824 | |
International Opportunities HLS Fund | | | 1,022,511,582 | | | | 1,153,856,392 | | | | — | | | | — | | | | 1,022,511,582 | | | | 1,153,856,392 | |
MidCap HLS Fund | | | 606,067,665 | | | | 896,030,683 | | | | — | | | | — | | | | 606,067,665 | | | | 896,030,683 | |
MidCap Growth HLS Fund | | | 43,374,221 | | | | 47,042,111 | | | | — | | | | — | | | | 43,374,221 | | | | 47,042,111 | |
MidCap Value HLS Fund | | | 153,714,027 | | | | 193,556,261 | | | | — | | | | — | | | | 153,714,027 | | | | 193,556,261 | |
Small Cap Growth HLS Fund | | | 520,764,414 | | | | 681,846,346 | | | | — | | | | — | | | | 520,764,414 | | | | 681,846,346 | |
Small Company HLS Fund | | | 461,364,219 | | | | 533,748,244 | | | | — | | | | — | | | | 461,364,219 | | | | 533,748,244 | |
Stock HLS Fund | | | 217,216,076 | | | | 395,773,488 | | | | — | | | | — | | | | 217,216,076 | | | | 395,773,488 | |
Total Return Bond HLS Fund | | | 710,809,117 | | | | 951,020,966 | | | | 557,554,707 | | | | 516,959,202 | | | | 1,268,363,824 | | | | 1,467,980,168 | |
Ultrashort Bond HLS Fund | | | 194,001,669 | | | | 240,760,112 | | | | 118,214,602 | | | | 76,276,710 | | | | 312,216,271 | | | | 317,036,822 | |
U.S. Government Securities HLS Fund | | | 35,453,191 | | | | 30,807,540 | | | | 103,377,482 | | | | 153,390,264 | | | | 138,830,673 | | | | 184,197,804 | |
Value HLS Fund | | | 183,477,420 | | | | 241,659,676 | | | | — | | | | — | | | | 183,477,420 | | | | 241,659,676 | |
| 11. | Capital Share Transactions: |
The following information is for the year ended December 31, 2019, and the year ended December 31, 2018:
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Balanced HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 370,207 | | | $ | 11,072,683 | | | | 377,029 | | | $ | 11,576,568 | |
Shares Issued for Reinvested Dividends | | | 6,502,840 | | | | 185,511,739 | | | | 4,232,006 | | | | 123,979,008 | |
Shares Redeemed | | | (8,291,111 | ) | | | (248,180,201 | ) | | | (9,617,908 | ) | | | (296,172,690 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,418,064 | ) | | | (51,595,779 | ) | | | (5,008,873 | ) | | | (160,617,114 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 89,913 | | | $ | 2,736,736 | | | | 194,734 | | | $ | 6,046,489 | |
Shares Issued for Reinvested Dividends | | | 821,698 | | | | 23,789,456 | | | | 526,962 | | | | 15,722,695 | |
Shares Redeemed | | | (1,116,398 | ) | | | (33,903,098 | ) | | | (1,312,276 | ) | | | (40,893,966 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (204,787 | ) | | | (7,376,906 | ) | | | (590,580 | ) | | | (19,124,782 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,622,851 | ) | | $ | (58,972,685 | ) | | | (5,599,453 | ) | | $ | (179,741,896 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Capital Appreciation HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 442,603 | | | $ | 19,657,868 | | | | 711,578 | | | $ | 32,492,124 | |
Shares Issued for Reinvested Dividends | | | 10,575,503 | | | | 453,254,297 | | | | 10,121,562 | | | | 454,718,791 | |
Shares Redeemed | | | (16,294,013 | ) | | | (749,541,968 | ) | | | (14,565,754 | ) | | | (701,373,697 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (5,275,907 | ) | | | (276,629,803 | ) | | | (3,732,614 | ) | | | (214,162,782 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 89,487 | | | $ | 3,963,852 | | | | 110,197 | | | $ | 5,115,632 | |
Shares Issued for Reinvested Dividends | | | 1,327,697 | | | | 55,760,662 | | | | 1,249,788 | | | | 55,433,182 | |
Shares Redeemed | | | (1,925,404 | ) | | | (86,699,371 | ) | | | (2,349,094 | ) | | | (111,859,162 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (508,220 | ) | | | (26,974,857 | ) | | | (989,109 | ) | | | (51,310,348 | ) |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 77,205 | | | $ | 3,513,879 | | | | 79,629 | | | $ | 3,804,757 | |
Shares Issued for Reinvested Dividends | | | 94,517 | | | | 3,992,375 | | | | 74,019 | | | | 3,306,482 | |
Shares Redeemed | | | (100,769 | ) | | | (4,537,643 | ) | | | (81,252 | ) | | | (3,859,522 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 70,953 | | | | 2,968,611 | | | | 72,396 | | | | 3,251,717 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (5,713,174 | ) | | $ | (300,636,049 | ) | | | (4,649,327 | ) | | $ | (262,221,413 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Disciplined Equity HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 611,641 | | | $ | 8,940,276 | | | | 418,081 | | | $ | 6,351,289 | |
Shares Issued for Reinvested Dividends | | | 4,665,126 | | | | 66,982,886 | | | | 3,963,155 | | | | 59,926,121 | |
Shares Redeemed | | | (6,262,868 | ) | | | (96,972,372 | ) | | | (7,184,640 | ) | | | (112,570,690 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (986,101 | ) | | | (21,049,210 | ) | | | (2,803,404 | ) | | | (46,293,280 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 197,355 | | | $ | 2,940,251 | | | | 125,940 | | | $ | 1,915,988 | |
Shares Issued for Reinvested Dividends | | | 648,866 | | | | 9,168,659 | | | | 541,890 | | | | 8,120,313 | |
Shares Redeemed | | | (849,660 | ) | | | (12,966,500 | ) | | | (1,097,934 | ) | | | (16,926,882 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,439 | ) | | | (857,590 | ) | | | (430,104 | ) | | | (6,890,581 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (989,540 | ) | | $ | (21,906,800 | ) | | | (3,233,508 | ) | | $ | (53,183,861 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Dividend and Growth HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 2,171,062 | | | $ | 47,176,118 | | | | 2,238,948 | | | $ | 51,960,388 | |
Shares Issued for Reinvested Dividends | | | 18,976,398 | | | | 380,717,264 | | | | 16,643,249 | | | | 367,065,830 | |
Shares Redeemed | | | (19,882,805 | ) | | | (436,905,756 | ) | | | (20,816,118 | ) | | | (488,971,318 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,264,655 | | | | (9,012,374 | ) | | | (1,933,921 | ) | | | (69,945,100 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 268,745 | | | $ | 5,804,583 | | | | 410,222 | | | $ | 9,509,461 | |
Shares Issued for Reinvested Dividends | | | 2,566,659 | | | | 51,049,426 | | | | 2,277,912 | | | | 50,078,265 | |
Shares Redeemed | | | (2,930,032 | ) | | | (63,812,310 | ) | | | (3,148,825 | ) | | | (72,751,751 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (94,628 | ) | | | (6,958,301 | ) | | | (460,691 | ) | | | (13,164,025 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 1,170,027 | | | $ | (15,970,675 | ) | | | (2,394,612 | ) | | $ | (83,109,125 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Global Growth HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 443,578 | | | $ | 12,123,928 | | | | 1,078,775 | | | $ | 31,212,233 | |
Shares Issued for Reinvested Dividends | | | 2,366,444 | | | | 59,823,693 | | | | 1,375,789 | | | | 38,893,548 | |
Shares Redeemed | | | (2,394,067 | ) | | | (66,820,575 | ) | | | (2,645,726 | ) | | | (75,484,691 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 415,955 | | | | 5,127,046 | | | | (191,162 | ) | | | (5,378,910 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 88,756 | | | $ | 2,360,349 | | | | 195,826 | | | $ | 5,672,825 | |
Shares Issued for Reinvested Dividends | | | 443,479 | | | | 11,091,398 | | | | 261,598 | | | | 7,324,732 | |
Shares Redeemed | | | (523,698 | ) | | | (14,446,839 | ) | | | (574,093 | ) | | | (16,275,227 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 8,537 | | | | (995,092 | ) | | | (116,669 | ) | | | (3,277,670 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 424,492 | | | $ | 4,131,954 | | | | (307,831 | ) | | $ | (8,656,580 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Growth Opportunities HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,132,331 | | | $ | 41,806,606 | | | | 880,238 | | | $ | 34,499,287 | |
Shares Issued for Reinvested Dividends | | | 8,011,645 | | | | 268,390,103 | | | | 4,558,515 | | | | 183,161,141 | |
Shares Redeemed | | | (5,110,758 | ) | | | (197,194,177 | ) | | | (4,784,503 | ) | | | (194,145,164 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 4,033,218 | | | | 113,002,532 | | | | 654,250 | | | | 23,515,264 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 166,719 | | | $ | 6,052,405 | | | | 247,857 | | | $ | 9,559,584 | |
Shares Issued for Reinvested Dividends | | | 1,003,960 | | | | 31,584,595 | | | | 558,990 | | | | 21,414,890 | |
Shares Redeemed | | | (702,525 | ) | | | (25,289,417 | ) | | | (728,619 | ) | | | (28,067,244 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 468,154 | | | | 12,347,583 | | | | 78,228 | | | | 2,907,230 | |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 229,371 | | | $ | 8,616,930 | | | | 153,006 | | | $ | 6,010,543 | |
Shares Issued for Reinvested Dividends | | | 305,758 | | | | 9,866,813 | | | | 133,407 | | | | 5,228,239 | |
Shares Redeemed | | | (97,866 | ) | | | (3,563,627 | ) | | | (84,803 | ) | | | (3,367,405 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 437,263 | | | | 14,920,116 | | | | 201,610 | | | | 7,871,377 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 4,938,635 | | | $ | 140,270,231 | | | | 934,088 | | | $ | 34,293,871 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Healthcare HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 781,044 | | | $ | 17,515,748 | | | | 1,245,774 | | | $ | 29,306,376 | |
Shares Issued for Reinvested Dividends | | | 1,181,032 | | | | 23,301,756 | | | | 745,725 | | | | 17,636,397 | |
Shares Redeemed | | | (6,003,232 | ) | | | (139,008,140 | ) | | | (2,811,944 | ) | | | (65,218,731 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (4,041,156 | ) | | | (98,190,636 | ) | | | (820,445 | ) | | | (18,275,958 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 52,502 | | | $ | 1,098,605 | | | | 88,489 | | | $ | 1,970,210 | |
Shares Issued for Reinvested Dividends | | | 301,351 | | | | 5,559,926 | | | | 121,767 | | | | 2,726,361 | |
Shares Redeemed | | | (336,728 | ) | | | (7,069,613 | ) | | | (427,867 | ) | | | (9,515,201 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 17,125 | | | | (411,082 | ) | | | (217,611 | ) | | | (4,818,630 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (4,024,031 | ) | | $ | (98,601,718 | ) | | | (1,038,056 | ) | | $ | (23,094,588 | ) |
| | | | | | | | | | | | | | | | |
|
| High Yield HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 944,313 | | | $ | 7,498,944 | | | | 1,286,518 | | | $ | 10,403,608 | |
Shares Issued for Reinvested Dividends | | | 1,546,258 | | | | 11,998,965 | | | | 1,614,321 | | | | 12,607,847 | |
Shares Redeemed | | | (4,128,219 | ) | | | (32,826,806 | ) | | | (5,381,959 | ) | | | (43,050,250 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,637,648 | ) | | | (13,328,897 | ) | | | (2,481,120 | ) | | | (20,038,795 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 385,698 | | | $ | 3,002,302 | | | | 383,944 | | | $ | 3,004,028 | |
Shares Issued for Reinvested Dividends | | | 469,995 | | | | 3,581,365 | | | | 491,610 | | | | 3,775,566 | |
Shares Redeemed | | | (1,433,811 | ) | | | (11,199,904 | ) | | | (1,712,158 | ) | | | (13,431,228 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (578,118 | ) | | | (4,616,237 | ) | | | (836,604 | ) | | | (6,651,634 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (2,215,766 | ) | | $ | (17,945,134 | ) | | | (3,317,724 | ) | | $ | (26,690,429 | ) |
| | | | | | | | | | | | | | | | |
|
| International Opportunities HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,670,173 | | | $ | 57,219,180 | | | | 7,906,986 | | | $ | 133,045,266 | |
Shares Issued for Reinvested Dividends | | | 3,993,125 | | | | 59,417,697 | | | | 1,511,466 | | | | 24,591,559 | |
Shares Redeemed | | | (13,599,042 | ) | | | (213,803,290 | ) | | | (18,708,966 | ) | | | (314,533,972 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (5,935,744 | ) | | | (97,166,413 | ) | | | (9,290,514 | ) | | | (156,897,147 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 470,421 | | | $ | 7,388,314 | | | | 682,479 | | | $ | 11,438,242 | |
Shares Issued for Reinvested Dividends | | | 462,454 | | | | 6,983,056 | | | | 145,186 | | | | 2,394,120 | |
Shares Redeemed | | | (1,421,238 | ) | | | (22,687,414 | ) | | | (1,453,082 | ) | | | (24,718,563 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (488,363 | ) | | | (8,316,044 | ) | | | (625,417 | ) | | | (10,886,201 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (6,424,107 | ) | | $ | (105,482,457 | ) | | | (9,915,931 | ) | | $ | (167,783,348 | ) |
| | | | | | | | | | | | | | | | |
|
| MidCap HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,379,056 | | | $ | 132,078,823 | | | | 6,486,190 | | | $ | 264,741,334 | |
Shares Issued for Reinvested Dividends | | | 8,523,595 | | | | 301,703,983 | | | | 5,086,106 | | | | 206,009,765 | |
Shares Redeemed | | | (10,684,124 | ) | | | (416,937,937 | ) | | | (12,978,019 | ) | | | (515,877,276 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,218,527 | | | | 16,844,869 | | | | (1,405,723 | ) | | | (45,126,177 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 119,757 | | | $ | 4,628,774 | | | | 85,061 | | | $ | 3,436,405 | |
Shares Issued for Reinvested Dividends | | | 238,418 | | | | 8,149,131 | | | | 138,789 | | | | 5,470,747 | |
Shares Redeemed | | | (272,338 | ) | | | (10,355,932 | ) | | | (319,892 | ) | | | (12,588,252 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 85,837 | | | | 2,421,973 | | | | (96,042 | ) | | | (3,681,100 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 1,304,364 | | | $ | 19,266,842 | | | | (1,501,765 | ) | | $ | (48,807,277 | ) |
| | | | | | | | | | | | | | | | |
| MidCap Growth HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,431,378 | | | $ | 11,584,365 | | | | 443,078 | | | $ | 3,855,962 | |
Shares Issued for Reinvested Dividends | | | 1,990,837 | | | | 14,592,833 | | | | 907,298 | | | | 7,929,782 | |
Shares Redeemed | | | (1,823,366 | ) | | | (14,961,942 | ) | | | (1,874,449 | ) | | | (16,135,241 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,598,849 | | | | 11,215,256 | | | | (524,073 | ) | | | (4,349,497 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| MidCap Growth HLS Fund – (continued) | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 377,732 | | | $ | 3,143,043 | | | | 103,365 | | | $ | 916,628 | |
Shares Issued for Reinvested Dividends | | | 352,058 | | | | 2,562,984 | | | | 158,237 | | | | 1,375,082 | |
Shares Redeemed | | | (425,212 | ) | | | (3,484,333 | ) | | | (362,990 | ) | | | (3,129,051 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 304,578 | | | | 2,221,694 | | | | (101,388 | ) | | | (837,341 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 1,903,427 | | | $ | 13,436,950 | | | | (625,461 | ) | | $ | (5,186,838 | ) |
| | | | | | | | | | | | | | | | |
|
| MidCap Value HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 339,708 | | | $ | 3,765,204 | | | | 363,704 | | | $ | 4,488,869 | |
Shares Issued for Reinvested Dividends | | | 3,248,969 | | | | 32,005,532 | | | | 1,760,255 | | | | 20,921,640 | |
Shares Redeemed | | | (3,287,018 | ) | | | (36,580,549 | ) | | | (3,101,516 | ) | | | (37,927,053 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 301,659 | | | | (809,813 | ) | | | (977,557 | ) | | | (12,516,544 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 166,668 | | | $ | 1,788,522 | | | | 55,809 | | | $ | 678,984 | |
Shares Issued for Reinvested Dividends | | | 969,744 | | | | 9,453,950 | | | | 497,931 | | | | 5,918,091 | |
Shares Redeemed | | | (1,129,325 | ) | | | (12,403,628 | ) | | | (961,412 | ) | | | (11,563,113 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 7,087 | | | | (1,161,156 | ) | | | (407,672 | ) | | | (4,966,038 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 308,746 | | | $ | (1,970,969 | ) | | | (1,385,229 | ) | | $ | (17,482,582 | ) |
| | | | | | | | | | | | | | | | |
|
| Small Cap Growth HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 4,705,468 | | | $ | 138,725,195 | | | | 4,222,713 | | | $ | 140,276,410 | |
Shares Issued for Reinvested Dividends | | | 5,121,450 | | | | 130,596,983 | | | | 1,485,036 | | | | 51,501,062 | |
Shares Redeemed | | | (7,759,736 | ) | | | (238,252,546 | ) | | | (5,574,766 | ) | | | (183,058,917 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 2,067,182 | | | | 31,069,632 | | | | 132,983 | | | | 8,718,555 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,357,735 | | | $ | 39,797,023 | | | | 1,901,268 | | | $ | 59,933,616 | |
Shares Issued for Reinvested Dividends | | | 2,576,170 | | | | 63,116,174 | | | | 690,752 | | | | 23,243,803 | |
Shares Redeemed | | | (2,618,822 | ) | | | (78,112,025 | ) | | | (2,517,531 | ) | | | (81,490,053 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,315,083 | | | | 24,801,172 | | | | 74,489 | | | | 1,687,366 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 3,382,265 | | | $ | 55,870,804 | | | | 207,472 | | | $ | 10,405,921 | |
| | | | | | | | | | | | | | | | |
|
| Small Company HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 2,903,171 | | | $ | 59,916,505 | | | | 2,279,458 | | | $ | 49,529,365 | |
Shares Issued for Reinvested Dividends | | | 5,501,448 | | | | 100,841,539 | | | | 1,609,205 | | | | 37,253,096 | |
Shares Redeemed | | | (6,154,407 | ) | | | (128,043,271 | ) | | | (5,131,207 | ) | | | (111,785,237 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 2,250,212 | | | | 32,714,773 | | | | (1,242,544 | ) | | | (25,002,776 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 193,635 | | | $ | 3,651,196 | | | | 282,487 | | | $ | 5,752,063 | |
Shares Issued for Reinvested Dividends | | | 608,025 | | | | 10,050,660 | | | | 188,065 | | | | 4,017,068 | |
Shares Redeemed | | | (736,416 | ) | | | (14,145,202 | ) | | | (747,252 | ) | | | (14,895,365 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 65,244 | | | | (443,346 | ) | | | (276,700 | ) | | | (5,126,234 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 2,315,456 | | | $ | 32,271,427 | | | | (1,519,244 | ) | | $ | (30,129,010 | ) |
| | | | | | | | | | | | | | | | |
|
| Stock HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 88,143 | | | $ | 8,024,102 | | | | 72,515 | | | $ | 5,954,634 | |
Shares Issued for Reinvested Dividends | | | 1,498,758 | | | | 133,049,130 | | | | 265,343 | | | | 20,294,819 | |
Shares Redeemed | | | (2,116,151 | ) | | | (190,491,309 | ) | | | (2,271,073 | ) | | | (186,699,226 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (529,250 | ) | | | (49,418,077 | ) | | | (1,933,215 | ) | | | (160,449,773 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 24,363 | | | $ | 2,198,146 | | | | 25,748 | | | $ | 2,171,547 | |
Shares Issued for Reinvested Dividends | | | 143,656 | | | | 12,720,819 | | | | 22,018 | | | | 1,685,834 | |
Shares Redeemed | | | (259,517 | ) | | | (23,318,016 | ) | | | (311,649 | ) | | | (25,637,685 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (91,498 | ) | | | (8,399,051 | ) | | | (263,883 | ) | | | (21,780,304 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (620,748 | ) | | $ | (57,817,128 | ) | | | (2,197,098 | ) | | $ | (182,230,077 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2019
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2019 | | | For the Year Ended
December 31, 2018 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Total Return Bond HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 10,292,709 | | | $ | 115,993,996 | | | | 8,943,428 | | | $ | 98,737,562 | |
Shares Issued for Reinvested Dividends | | | 6,510,117 | | | | 74,150,238 | | | | 7,874,151 | | | | 84,804,607 | |
Shares Redeemed | | | (27,038,343 | ) | | | (303,528,466 | ) | | | (33,490,964 | ) | | | (367,229,305 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (10,235,517 | ) | | | (113,384,232 | ) | | | (16,673,385 | ) | | | (183,687,136 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,022,576 | | | $ | 11,476,151 | | | | 737,317 | | | $ | 8,103,146 | |
Shares Issued for Reinvested Dividends | | | 705,771 | | | | 8,003,440 | | | | 856,478 | | | | 9,181,448 | |
Shares Redeemed | | | (2,997,668 | ) | | | (33,501,141 | ) | | | (3,590,545 | ) | | | (39,142,701 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,269,321 | ) | | | (14,021,550 | ) | | | (1,996,750 | ) | | | (21,858,107 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (11,504,838 | ) | | $ | (127,405,782 | ) | | | (18,670,135 | ) | | $ | (205,545,243 | ) |
| | | | | | | | | | | | | | | | |
|
| Ultrashort Bond HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 6,425,360 | | | $ | 65,532,098 | | | | 5,794,419 | | | $ | 58,434,281 | |
Shares Issued for Reinvested Dividends | | | 785,430 | | | | 7,948,551 | | | | 499,842 | | | | 5,018,414 | |
Shares Redeemed | | | (11,863,152 | ) | | | (120,750,652 | ) | | | (8,804,753 | ) | | | (88,776,912 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (4,652,362 | ) | | | (47,270,003 | ) | | | (2,510,492 | ) | | | (25,324,217 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 867,804 | | | $ | 8,845,950 | | | | 1,496,586 | | | $ | 15,071,051 | |
Shares Issued for Reinvested Dividends | | | 95,306 | | | | 964,500 | | | | 53,416 | | | | 536,294 | |
Shares Redeemed | | | (1,777,491 | ) | | | (18,100,079 | ) | | | (1,634,853 | ) | | | (16,463,268 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (814,381 | ) | | | (8,289,629 | ) | | | (84,851 | ) | | | (855,923 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (5,466,743 | ) | | $ | (55,559,632 | ) | | | (2,595,343 | ) | | $ | (26,180,140 | ) |
| | | | | | | | | | | | | | | | |
|
| U.S. Government Securities HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,925,074 | | | $ | 19,785,036 | | | | 1,738,359 | | | $ | 17,500,321 | |
Shares Issued for Reinvested Dividends | | | 670,097 | | | | 6,935,500 | | | | 716,309 | | | | 7,134,442 | |
Shares Redeemed | | | (5,296,273 | ) | | | (54,286,696 | ) | | | (6,266,754 | ) | | | (63,056,532 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (2,701,102 | ) | | | (27,566,160 | ) | | | (3,812,086 | ) | | | (38,421,769 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 382,786 | | | $ | 3,933,931 | | | | 390,678 | | | $ | 3,920,475 | |
Shares Issued for Reinvested Dividends | | | 125,825 | | | | 1,302,291 | | | | 133,828 | | | | 1,332,927 | |
Shares Redeemed | | | (1,030,826 | ) | | | (10,553,863 | ) | | | (1,494,961 | ) | | | (14,988,690 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (522,215 | ) | | | (5,317,641 | ) | | | (970,455 | ) | | | (9,735,288 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (3,223,317 | ) | | $ | (32,883,801 | ) | | | (4,782,541 | ) | | $ | (48,157,057 | ) |
| | | | | | | | | | | | | | | | |
|
| Value HLS Fund | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 848,038 | | | $ | 12,206,211 | | | | 769,369 | | | $ | 11,763,745 | |
Shares Issued for Reinvested Dividends | | | 3,430,401 | | | | 44,489,654 | | | | 3,182,011 | | | | 45,728,961 | |
Shares Redeemed | | | (5,244,949 | ) | | | (74,374,262 | ) | | | (4,476,365 | ) | | | (69,613,039 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (966,510 | ) | | | (17,678,397 | ) | | | (524,985 | ) | | | (12,120,333 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 64,173 | | | $ | 896,863 | | | | 81,995 | | | $ | 1,246,473 | |
Shares Issued for Reinvested Dividends | | | 549,355 | | | | 7,088,517 | | | | 515,685 | | | | 7,417,890 | |
Shares Redeemed | | | (844,858 | ) | | | (12,020,832 | ) | | | (771,648 | ) | | | (11,962,532 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (231,330 | ) | | | (4,035,452 | ) | | | (173,968 | ) | | | (3,298,169 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (1,197,840 | ) | | $ | (21,713,849 | ) | | | (698,953 | ) | | $ | (15,418,502 | ) |
| | | | | | | | | | | | | | | | |
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 $370 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 and as of the year ended December 31, 2019, none of the Funds had borrowings under this facility.
Notes to Financial Statements – (continued)
December 31, 2019
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.
| 14. | Recent Accounting Pronouncement: |
The FASB issued ASU2017-08 (the “ASU” or “Update”) to amend the amortization period to the earliest call date for purchased callable debt securities held at a premium. The ASU is effective for public entities for fiscal years beginning after December 15, 2018, and will become effective for private entities one year later. Upon initial adoption, the impacted funds adjusted the cost of their callable debt securities by the cumulative amount of amortization that would have been recognized had the amortization period initially extended only to the earliest call date, with a corresponding reclassification between interest income and net realized gain (loss) on investments or net unrealized appreciation (depreciation) of investments in the Statements of Operations. The adoption of this Update does not affect the impacted funds’ net asset values and the cumulative effect to the impacted funds resulting from the adoption of amending the amortization period to the earliest call date for callable debt securities is as follows:
| | | | | | | | | | | | | | | | |
| | | As of
January 1, 2019 | | | For the Year Ended December 31, 2019 | |
Fund | | Cost of
Investments | | | Interest
Income | | | Net Unrealized
Appreciation
(Depreciation) of
Investments | | | Net Realized
Gain (Loss)
on Investments | |
Balanced HLS Fund | | $ | 318 | | | $ | (1 | ) | | $ | 1 | | | $ | — | |
High Yield HLS Fund | | | 121,132 | | | | 48,710 | | | | 31,116 | | | | (79,826 | ) |
Total Return Bond HLS Fund | | | (102,075 | ) | | | (84,529 | ) | | | (110,540 | ) | | | 195,069 | |
In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”). The update introduces new fair value disclosure requirements, eliminates some prior fair value disclosure requirements, and modifies certain existing fair value disclosure requirements.
ASU2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, however, an entity is permitted to early adopt either the entire standard or only the provisions that eliminate or modify requirements. Management has elected to early adopt the provisions of ASU2018-13 that eliminate disclosure requirements effective with the current reporting period. The impact of each Fund’s early adoption of these provisions was limited to changes in the Fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between Level 1 and Level 2 of the fair value hierarchy and the timing of transfers between levels of the fair value hierarchy. Management is currently evaluating the potential impact of adopting the additional provisions of ASU2018-13.
In connection with the preparation of the financial statements of the Funds as of and for the year ended December 31, 2019, events and transactions subsequent to December 31, 2019, through the date the financial statements were issued have been evaluated by the Funds’ management for possible adjustment and/or disclosure. The following subsequent events requiring financial statement disclosure have been identified.
HFMC agreed to extend the current contractual management fee waiver of 0.03% for the Balanced HLS Fund. This waiver will remain in effect until April 30, 2021 unless the Board of Directors approves its earlier termination.
Effective January 1, 2020, HFMC agreed to waive 0.03% of the High Yield HLS Fund’s contractual management fee. This waiver will remain in effect until December 31, 2020 unless the Board of Directors approves its earlier termination.
Effective January 1, 2020, the management fee of HFMC set forth in the investment management agreement with respect to the Disciplined Equity HLS Fund is as follows: 0.7500% of the first $250 million, 0.6500% of the next $250 million, 0.6000% of the next $500 million, 0.5800% of the next $4 billion, 0.5700% of the next $5 billion, and 0.5600% in excess of $10 billion annually of the Fund’s average daily net assets.
|
| Report of Independent Registered Public Accounting Firm |
To the Shareholders and the 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 MidCap Growth HLS Fund (formerly, 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, 2019, 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, 2019, 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, 2019, 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 25, 2020
Directors and Officers of Each Company
Each of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each a, “Company”) is governed by a Board of Directors (the “Directors”). The following tables present certain information regarding the Directors and officers of each Company as of December 31, 2019. For more information regarding the Directors and officers, please refer to the Statement of Additional Information, which is available, without charge, upon request by calling1-888-843-7824.
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
EACH COMPANY | | 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. from October 2012 through April 2018. Upon the merger of Dynegy, Inc. with Vistra Energy Corporation, Ms. Ackermann became a member of the Board of Directors of Vistra Energy Corporation effective May 2018. Ms. Ackerman also serves as a Director of Credit Suisse Holdings (USA), Inc. since January 2017. | | 81 | | Ms. Ackermann has served as a Director of as Dynegy, Inc. from October 2012 through April 2018. Upon the merger of Dynegy, Inc. with Vistra Energy Corporation, Ms. Ackermann became a member of the Board of Directors of Vistra Energy Corporation effective May 2018. Ms. Ackermann serves 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 to ArrowMark Partners (an alternative asset manager) since March of 2015 and since November 2018 has been employed by ArrowMark Partners as a Senior Advisor. 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. | | 81 | | Ms. Beery serves as a Director of UMB Financial Corporation (January 2015 to present). |
| | | | | |
LYNN S. BIRDSONG (1946) | | Director and Chair of the Board | | Director since 2003; Chair of the Board since August 2019 | | Mr. Birdsong currently serves as a Director of Aberdeen Global and Aberdeen Global II (investment funds) (since September 2014), Aberdeen Islamic SICAV and Aberdeen Liquidity Fund (investment funds) (since 2016), and Aberdeen Alpha Fund (since December 2017). 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. | | 81 | | None |
| | | | | |
CHRISTINE R. DETRICK (1958) | | Director | | Since 2016 | | Ms. Detrick has served as a Director of Reinsurance Group of America since January 2014. Previously, she was a director of Forest City Realty Trust (a real estate company) from November 2014 to March 2018, 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. | | 81 | | Ms. Detrick serves as a Director of Reinsurance Group of America (January 2014 to present). |
Directors and Officers of Each Company – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
EACH COMPANY | | 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 |
| | | | | |
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. | | 81 | | None |
| | | | | |
LEMMA W. SENBET (1946) | | Director | | Since 2005 | | Dr. Senbet currently serves as the William E. Mayer Chair Professor of Finance, and previously was the Founding Director, Center for Financial Policy, in the Robert H. Smith School of Business at the University of Maryland. He was chair of the Finance Department Robert H. Smith School of Business at the University of Maryland from 1998 to 2006. In June 2013, he began a sabbatical from the University to serve as Executive Director of the African Economic Research Consortium which focuses on economic policy research and training, which he completed in 2018. 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. | | 81 | | None |
| | | | | |
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 an Independent Director of six private investment funds, and twoclosed-end registered investment companies, sponsored by Ironwood Capital Management. Previously, he was a Partner at Ernst & Young LLP from October 1995 to July 2014. | | 81 | | 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 DIRECTOR |
| | | | | |
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, President, and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey also serves as Manager, Chairman of the Board, and President of Lattice Strategies LLC (since July 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. | | 81 | | None |
Directors and Officers of Each Company – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
EACH COMPANY | | 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 serves as Chief Compliance Officer and AML Compliance Officer of HASCO (since April 2015) and Vice President of HASCO (since April 2018). Mr. Decker serves as AML Officer of HFD (since May 2015). Mr. Decker also serves as Vice President of HFMG (since April 2018). 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 |
| | | | | |
AMY N. FURLONG (1979) | | Vice President and Treasurer | | Since 2018 | | Ms. Furlong serves as Vice President and Assistant Treasurer of HFMC (since September 2019). Ms. Furlong has served in various positions within The Hartford and its subsidiaries in connection with the operation of the Hartford Funds. Ms. Furlong joined The Hartford in 2004. Prior to joining The Hartford, Ms. Furlong worked at KPMG LLP in audit services. | | N/A | | N/A |
| | | | | |
WALTER F. GARGER (1965) | | Vice President and Chief Legal Officer | | Since 2016 | | Mr. Garger serves as Secretary, Managing Director and General Counsel of HFD, HASCO, HFMC and HFMG (since 2013). Mr. Garger also serves as Secretary and General Counsel of Lattice Strategies LLC (since July 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 of HFMG (since July 2016). Mr. Lee also serves as Senior Vice President of Lattice Strategies LLC (since June 2017). Previously, Mr. Lee served as Managing Director and Chief Operating Officer, Lattice Strategies LLC (2009–2016); Chief Operating Officer at Avicenna Capital Management (2007–2009); and Chief Financial Officer at 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 July 2016) and as Executive Vice President of Lattice Strategies LLC (since June 2017). Previously, Mr. Lucas served as Managing Partner of Lattice Strategies LLC (2003 to 2016). | | N/A | | N/A |
| | | | | |
JOSEPH G. MELCHER (1973) | | Vice President and Chief Compliance Officer | | Since 2013 | | Mr. Melcher serves as Executive Vice President of HFD (since December 2013) and has served as President (from April 2018 to June 2019) and Chief Executive Officer (from April 2018 to June 2019) of HFD. He also serves as Executive Vice President of HFMG and HASCO (since December 2013). Mr. Melcher also serves as Executive Vice President (since December 2013) and Chief Compliance Officer (since December 2012) of HFMC. Mr. Melcher also serves as Executive Vice President and Chief Compliance Officer of Lattice Strategies, LLC (since July 2016). 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 |
Directors and Officers of Each Company – (continued)
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
EACH COMPANY | | 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 |
| | | | | |
VERNON J. MEYER (1964) | | Vice President | | Since 2006 | | Mr. Meyer serves as Managing Director and Chief Investment Officer of HFMC and Managing Director of HFMG (since 2013). 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 and Assistant Secretary | | Since 2016 | | Ms. Pellegrino serves as Vice President of HFMG (since December 2013). Ms. Pellegrino also serves as Vice President and Assistant Secretary of Lattice Strategies LLC (since June 2017). 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 |
| | | | | |
THOMAS R. PHILLIPS (1960) | | Vice President and Secretary | | Since 2017 | | Mr. Phillips currently serves as Vice President (since February 2017) and Assistant Secretary (since June 2017) for HFMG. Mr. Phillips is Deputy General 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 |
| (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 operational 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, Hartford Schroders Opportunistic Income Fund and Hartford Funds NextShares Trust. |
| (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. |
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 its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT. Each Fund’s Form N-PORT reports are available (1) without charge, upon request, by calling888-843-7824 and (2) on the SEC’s website at http://www.sec.gov.
Approval of Investment Management and InvestmentSub-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 Growth HLS Fund
Hartford MidCap HLS Fund
Hartford MidCap Value HLS Fund
Hartford Small Cap Growth HLS Fund
Hartford Small Company 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 andsub-advisory agreements. At their meeting held on August6-7, 2019, 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 each of HLS and 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) the continuation of investmentsub-advisory agreements (each, a“Sub-Advisory Agreement” and collectively with the Management Agreement, the “Agreements”) between HFMC and each Fund’ssub-adviser, Wellington Management Company LLP (the“Sub-adviser,” and together with HFMC, the “Advisers”), with respect to each Fund.
In the months preceding the August6-7, 2019 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 continuation of the Agreements that was presented at the Board’s meetings held on June 18, 2019 and August6-7, 2019. 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 andin-person presentations by Fund officers and representatives of HFMC received at the Board’s meetings on June 18, 2019 and August6-7, 2019 concerning the Agreements.
The Independent Directors, advised by independent legal counsel throughout the evaluation process, 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, othernon-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 each Fund’s management fees, othernon-management fees, overall expense ratios and investment performance. In addition, the Consultant reviewed the profitability methodologies utilized by HFMC in connection with the continuation of the Management Agreement.
In determining whether to continue the Agreements for a Fund, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board’s determination to continue the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically with respect to the continuation 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 throughout the evaluation process. A more detailed summary of the important, but not necessarily all, factors the Board considered with respect to its approval of the continuation of the Agreements is provided below.
Approval of Investment Management and InvestmentSub-Advisory Agreements (Unaudited) – (continued)
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 funds managed by HFMC and its affiliates (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 any compliance or other issues raised by regulators. 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 Rule38a-1 under the 1940 Act and the Funds’ liquidity risk management program, 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 theSub-adviser. In this regard, the Board evaluated information about the nature and extent of responsibilities retained and risks assumed by HFMC that were not delegated to, or assumed by, theSub-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 initiating changes to the portfolio management and/or investment strategies of the Hartford Funds when warranted. The Board considered HFMC’s periodic due diligence reviews of theSub-adviser and ongoing oversight of theSub-adviser’s investment approach and results, process for monitoring best execution of portfolio trades and other trading operations by theSub-adviser, and approach to risk management with respect to the Funds and the service providers to the Funds. The Board considered HFMC’s oversight of the Funds’ securities lending program and noted the income earned by the Funds in connection with their participation in the program. The Board also considered HFMC’sday-to-day oversight of each Fund’s compliance with its investment 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 productline-up. The Board considered that HFMC is responsible for providing the Funds’ officers.
With respect to theSub-adviser, which provides certainday-to-day portfolio management services for the Funds, subject to oversight by HFMC, the Board considered, among other things, theSub-adviser’s 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 quality and experience of each Fund’s portfolio manager(s), the number of accounts managed by the portfolio manager(s), and theSub-adviser’s method for compensating the portfolio manager(s). The Board also considered theSub-adviser’s succession planning to ensure continuity of portfolio management services provided to the Funds.
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 Hartford Funds with a broad range of investment styles and asset classes.
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 theSub-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 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 theFund-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 continuation of the Agreements. These reports included, 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
Approval of Investment Management and InvestmentSub-Advisory Agreements (Unaudited) – (continued)
concerning the Fund’s portfolio, a narrative summary of various factors affecting Fund performance and commentary of the effect of current and recent market conditions. The Board also noted that, for each of the Hartford Capital Appreciation HLS Fund and the Hartford Global Growth HLS Fund, the Fund utilizes a multiple portfolio manager structure and considered the performance attributions of the underlying managers. The Board considered the Advisers’ work 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 continuation 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 theSub-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 apre-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 theSub-adviser. The Board considered representations from HFMC and theSub-adviser that theSub-adviser’s fees were negotiated at arm’s length on aFund-by-Fund basis and that the sub-advisory fees are paid by HFMC and not the Funds. Accordingly, the Board concluded that the profitability of theSub-adviser is a less relevant factor with respect to the Board’s consideration of theSub-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, including a description of the methodology used to allocate certain expenses. The Board noted 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 realized by the Advisers and their affiliates from their relationships with the Funds were not excessive.
Comparison of Fees and Services Provided by the Advisers
The Board considered the comparative information that had been provided at meetings on June 18, 2019 and August6-7, 2019 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 thesub-advisory fees to be paid by HFMC to theSub-adviser with respect to each Fund. In this regard, the Board requested and reviewed information from HFMC and theSub-adviser relating to the management andsub-advisory fees, including thesub-advisory fee schedule for each Fund and the amount of the management fee retained by HFMC, and total operating expenses for each Fund. The Board also reviewed information from Broadridge comparing each Fund’s contractual management fees, actual management fees and total 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 theFund-by-Fund synopsis below.
While the Board recognized that comparisons between a Fund and its peer funds may be imprecise given, among other differences, 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 considered, were reasonable in light of the services provided.
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 breakpoint at a lower asset level provides shareholders with the benefit of anticipated or potential economies of scale. The Board considered that fee waivers that reduce a Fund’s expenses at all asset levels can have the same effect as breakpoints in sharing economies of scale with shareholders and provide protection from an increase in expenses if the Fund’s assets decline. In addition, the Board considered that initially setting competitive fee rates, pricing the Funds to scale at inception and making additional investments intended to enhance services available to shareholders are other means of sharing anticipated or potential economies of scale with shareholders. The Board also considered that HFMC has been active in managing expenses. The Board noted the effect of therun-off of the variable annuity business on the Funds and also noted that, for Hartford MidCap Growth HLS Fund, the Fund’s current low
Approval of Investment Management and InvestmentSub-Advisory Agreements (Unaudited) – (continued)
asset levels have kept the Fund from fully realizing the benefits of anticipated or potential economies of scale. The Board also noted that the assets under management had declined for certain Funds and considered the potential impact of such declines on the expense ratios for such Funds. The Board noted the completed sale of the annuityrun-off business in 2018 and considered how the sale may impact the Funds’ asset levels going forward.
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 management fees and total expense ratios for the Fund at its current and reasonably anticipated asset levels. The Board noted, however, that it would continue to monitor any future growth in each Fund’s assets and the appropriateness of additional management fee breakpoints or other methods to share benefits from economies of scale.
Other Benefits
The Board considered other benefits to the Advisers and their affiliates from their relationships with the Funds.
The Board noted that HFMC receives fees for fund accounting and related services from the Funds. The Board considered information on profits to HFMC for such services. 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 for providing such services. 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. The Board noted that, as principal underwriter, HFD receives distribution and service fees from the Funds.
The Board considered the benefits, if any, to theSub-adviser from any use of a Fund’s brokerage commissions to obtain soft dollar research.
Fund-by-Fund Factors
For purposes of theFund-by-Fund discussion below, Fund performance is referred to as “in line with” a Fund’s benchmark where it was 0.5% above or below the benchmark return, and each Fund’s performance relative to its benchmark reflects the net performance of the Fund’s Class IA shares as of March 31, 2019.
Hartford Balanced HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the1- and5-year periods and the 3rd quintile for the3-year period. The Board also noted that the Fund’s performance was below its custom blended benchmark for the1-,3- and5-year periods. |
| • | | 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 its total expenses (less12b-1 and shareholder service fees) were in the 2nd quintile. The Board noted that the Fund has a contractual management fee waiver of 0.03% through April 30, 2021. |
Hartford Capital Appreciation HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the1- and3-year periods and the 3rd quintile for the5-year period. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. 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 3rdquintile of its expense group, while its actual management fee and total expenses (less12b-1 and shareholder service fees) were in the 2nd quintile. |
Hartford Disciplined Equity HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the1- and5-year periods and the 2nd quintile for the3-year period. The Board also noted that the Fund’s performance was above its benchmark for the1- and5-year periods and below its benchmark for the3-year period. |
Approval of Investment Management and InvestmentSub-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 (less12b-1 and shareholder service fees) were in the 5th quintile. In considering the Fund’s expenses, the Board noted the shareholder savings expected to result from a permanent fee reduction to be implemented on January 1, 2020. |
Hartford Dividend and Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1stquintile of its performance universe for the1-,3- and5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. The Board noted upcoming changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 3rdquintile of its expense group, while its total expenses (less12b-1 and shareholder service fees) were in the 4th quintile. |
Hartford Global Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1stquintile of its performance universe for the1-,3- and5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the1-,3- and5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 4th quintile of its expense group and its total expenses (less12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford Growth Opportunities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the1-,3- and5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the1-,3- and5-year periods. The Board noted upcoming changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee was in the 1stquintile of its expense group, while its actual management fee and its total expenses (less12b-1 and shareholder service fees) were in the 2nd quintile. |
Hartford Healthcare HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1-year period, the 3rd quintile for the3-year period and the 2nd quintile for the5-year period. The Board also noted that the Fund’s performance was below its benchmark for the1-and3-year periods and in line with its benchmark for the5-year period. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 2nd quintile of its expense group and its total expenses (less12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford High Yield HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2ndquintile of its performance universe for the1-,3- and5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. 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 3rdquintile of its expense group, while its actual management fee and its total expenses (less12b-1 and shareholder service fees) were in the 4th quintile. In considering the Fund’s expenses, the Board noted the shareholder savings expected to result from a contractual management fee waiver of 0.03% to be implemented on January 1, 2020 through December 31, 2020. |
Hartford International Opportunities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the1-year period, the 4th quintile for the3-year period and the 3rd quintile for the5-year period. The Board also noted that the Fund’s performance was below its benchmark for the1- and3-year periods and above its benchmark for the5-year period. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 2ndquintile of its expense group, while its total expenses (less12b-1 and shareholder service fees) were in the 1st quintile. |
Hartford MidCap Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4thquintile of its performance universe for the1-year period and the 5thquintile for the3- and5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy and portfolio management team. |
Approval of Investment Management and InvestmentSub-Advisory Agreements (Unaudited) – (continued)
| • | | The Board noted that the Fund’s contractual management fee was in the 2nd quintile of its expense group, while its actual management fee was in the 3rd quintile and its total expenses (less12b-1 and shareholder service fees) were in the 4th quintile. |
Hartford MidCap HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the1-year period, the 3rd quintile for the3-year period and the 1st quintile for the5-year period. The Board also noted that the Fund’s performance was above its benchmark for the1-, 3- and5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and its total expenses (less12b-1 and shareholder service fees) were in the 2nd quintile, while its actual management fee was in the 1st quintile. |
Hartford MidCap Value HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1- and3-year periods and the 5th quintile for the5-year period. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and total expenses (less12b-1 and shareholder service fees) were in the 3rd quintile of its expense group, while its actual management fee was in the 2ndquintile. The Board noted that the Fund has a contractual management fee waiver of 0.04% through April 30, 2020. |
Hartford Small Cap Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1- and3-year periods and the 3rd quintile for the5-year period. The Board also noted that the Fund’s performance was above its benchmark for the1-year period and in line with its benchmark for the3- and5-year periods. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy and portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee and total expenses (less12b-1 and shareholder service fees) were in the 1stquintile of its expense group. |
Hartford Small Company HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2ndquintile of its performance universe for the1- and3-year periods and the 4th quintile for the5-year period. The Board also noted that the Fund’s performance was above its benchmark for the1- and3-year periods and in line with its benchmark for the5-year period. The Board noted that certain changes had recently been made to the Fund’s principal investment strategy and 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 (less12b-1 and shareholder service fees) were in the 2nd quintile. |
Hartford Stock HLS Fund
| • | | The Board noted that the Fund’s performance was in the 1st quintile of its performance universe for the1-year period, the 3rdquintile for the3-year period and the 2nd quintile for the5-year period. The Board also noted that the Fund’s performance was above its benchmark for the1-year period, below its benchmark for the3-year period and in line with its benchmark for the5-year period. |
| • | | The Board noted that the Fund’s contractual management fee and total expenses (less12b-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 Total Return Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the1-year period and the 1st quintile for the3- and5-year periods. The Board also noted that the Fund’s performance was in line with its benchmark for the1- and5-year periods and above its benchmark for the3-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 (less12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford Ultrashort Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1- and5-year periods and the 3rd quintile for the3-year period. The Board also noted that the Fund’s performance was in line with its benchmark for the1-,3- and5-year periods. |
Approval of Investment Management and InvestmentSub-Advisory Agreements (Unaudited) – (continued)
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 2nd quintile of its expense group and its total expenses (less12b-1 and shareholder service fees) were in the 3rdquintile. |
Hartford U.S. Government Securities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1-year period and the 3rd quintile for the3- and5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the1-year period and in line with its benchmark for the3- and5-year periods. The Board noted upcoming changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee was in the 1st quintile of its expense group, while its actual management fee was in the 2nd quintile and its total expenses (less12b-1 and shareholder service fees) were in the 3rd quintile. |
Hartford Value HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the1- and3-year periods and 2nd quintile for the5-year period. The Board also noted that the Fund’s performance was below its benchmark for the1-,3- and5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 3rd quintile and its total expenses (less12b-1 and shareholder service fees) were in the 4th quintile. |
* * * *
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 continuation of 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.
THIS PRIVACY POLICY IS NOT PART OF THIS REPORT
CUSTOMER PRIVACY NOTICE
The Hartford Financial Services Group, Inc. and its Affiliates*
(herein called “we, our, and us”)
This Privacy Policy applies to our United States Operations
We value your trust. We are committed to the responsible:
a) management;
b) use; and
c) protection;
ofPersonal Information.
This notice describes how we collect, disclose, and protectPersonal Information.
We collectPersonal Information to:
a) service yourTransactionswith us; and
b) support our business functions.
We may obtainPersonal Information from:
a)You;
b) yourTransactionswith us; and
c) third parties such as a consumer-reporting agency.
Based on the type of product or serviceYou apply for or get from us,Personal Information such as:
a) your name;
b) your address;
c) your income;
d) your payment; or
e) your credit history;
may be gathered from sources such as applications,Transactions, and consumer reports.
To serveYou and service our business, we may share certainPersonal Information. We will sharePersonal Information, only as allowed by law, with affiliates such as:
a) our insurance companies;
b) our employee agents;
c) our brokerage firms; and
d) our administrators.
As allowed by law, we may sharePersonal Financial Information with our affiliates to:
a) market our products; or
b) market our services;
toYou without providingYou with an option to prevent these disclosures.
We may also sharePersonal Information, only as allowed by law, with unaffiliated third parties including:
a) independent agents;
b) brokerage firms;
c) insurance companies;
d) administrators; and
e) service providers;
who help us serveYou and service our business.
When allowed by law, we may share certainPersonal Financial Information with other unaffiliated third parties who assist us by performing services or functions such as:
a) taking surveys;
b) marketing our products or services; or
c) offering financial products or services under a joint agreement between us and one or more financial institutions.
We, and third parties we partner with, may track some of the pagesYou visit through the use of:
a) cookies;
b) pixel tagging; or
c) other technologies;
and currently do not process or comply with any web browser’s “do not track” signal or other similar mechanism that indicates a request to disable online tracking of individual users who visit our websites or use our services.
For more information, 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 yourPersonal Financial Information with anyone for purposes unrelated to our business functions without offeringYou the opportunity to:
a)“opt-out;” or
b)“opt-in;”
as required by law.
We only disclosePersonal Health Information with:
a) your authorization; or
b) as otherwise allowed or required by law.
Our employees have access toPersonal 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 protectPersonal 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; and
c) grant access to protected data only to those people who must use it in the performance of theirjob-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 regardingPersonal 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 Informationmay 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 identifiesYou 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) yourApplication;
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 usPersonal 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.
If you have any questions or comments about this privacy notice, please feel free to contact us at The Hartford – Law Department, Privacy Law, One Hartford Plaza, Hartford, CT 06155, or at CorporatePrivacyOffice@thehartford.com.
This Customer Privacy Notice is being provided on behalf of The Hartford Financial Services Group, Inc. and its affiliates (including the following as of March 2019), to the extent required by the Gramm-Leach-Bliley Act and implementing regulations.
1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; Business Management Group, Inc.; Cervus Claim Solutions, LLC; First State Insurance Company; 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 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 Insurance Company of Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company of the Southeast; Hartford Insurance, Ltd.; Hartford Integrated Technologies, Inc.; Hartford Investment Management Company; Hartford Life and Accident Insurance Company; Hartford Life, Ltd.; Hartford Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford Management, Ltd.; Hartford of Texas General Agency, Inc.; Hartford Residual Market, L.C.C.; Hartford Specialty Insurance Services of Texas, LLC; Hartford STAG Ventures LLC; Hartford Strategic Investments, LLC; Hartford Underwriters General Agency, Inc.; Hartford Underwriters Insurance Company; Heritage Holdings, Inc.; Heritage Reinsurance Company, Ltd.; HIMCO Distribution Services Company; HLA LLC; HL Investment Advisors, LLC; Horizon Management Group, LLC; HRA Brokerage Services, Inc.; 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; New Ocean Insurance Co., Ltd.; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Renato Acquisition Co.; Sentinel Insurance Company, Ltd; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company;Y-Risk, LLC.
Revised March 2019
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 aresub-advised by Wellington Management Company LLP. HFD and HFMC are not affiliated with Wellington Management Company LLP.
HLSAR19 02-20 214801 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 David Sung as an Audit Committee Financial Expert. Mr. Sung 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: |
$110,000 for the fiscal year ended December 31, 2018; $110,000 for the fiscal year ended December 31, 2019.
| | (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, 2018; $0 for the fiscal year ended December 31, 2019.
| | (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: |
$19,005 for the fiscal year ended December 31, 2018; $20,109 for the fiscal year ended December 31,2019. Tax-related services are principally in connection with, but not limited to, general tax services, excise tax, and Passive Foreign Investment Company (PFIC) analysis.
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| | (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, 2018; $0 for the fiscal year ended December 31, 2019.
| | (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 maybe pre-approved. The following are some main provisions from the Policy. |
| | 1. | The Audit Committeemust pre-approve all audit servicesand non-audit services that the independent registered public accounting firm provides to the Fund. |
| | 2. | The Audit Committeemust pre-approve any engagement of the independent registered public accounting firm toprovide 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, ifthe non-audit services to the Service Affiliate directly impact the Fund’s operations and financial reporting. |
| | 3. | The Audit Committeeshall 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 notbeen 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 ofany non-audit services previously approved. In considering anyrequested 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 specifiedprohibited 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 AuditCommittee’s Pre-Approval Policy. As a result, none of such services was approved pursuant to paragraph (c)(7)(i)(c) ofRule 2-01 ofRegulation S-X. |
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| | (g) | Theaggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not includingany 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: |
Non-Audit Fees: $59,005 for the fiscal year ended December 31, 2018; $20,109 for the fiscal year ended December 31, 2019.
| | (h) | The registrant’s audit committee of the board of directors has considered whether the provisionof non-audit services that were rendered to the registrant’s investment adviser (not includingany 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 werenot pre-approved pursuant to paragraph (c)(7)(ii) ofRule 2-01 ofRegulation 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 forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities byClosed-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 |
4
| | controls and procedures (as defined inRule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17CFR 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 byRule 30a-3(b) under the 1940 Act (17CFR 270.30a-3(b)) andRules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17CFR 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 Rule30a-3(d) under the 1940 Act (17 CFR270.30a-3(d)) that occurred during 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 forClosed-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 Rule30a-2(a) under the 1940 Act (17 CFR270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable
(a)(4) Response to Item 13(a)(4) is filed herewith.
(b) Certifications pursuant to Rule30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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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 6, 2020 | | 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 6, 2020 | | By: | | /s/ James E. Davey |
| | | | James E. Davey |
| | | | President and Chief Executive Officer |
| | | | |
Date: March 6, 2020 | | By: | | /s/ Amy N. Furlong |
| | | | Amy N. Furlong |
| | | | Treasurer |
| | | | (Principal Financial Officer and Principal Accounting Officer) |
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