UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-04615
HARTFORD HLS SERIES FUND II, INC.
(Exact name of registrant as specified in charter)
690 Lee Road, Wayne, Pennsylvania 19087
(Address of Principal Executive Offices) (Zip Code)
Thomas 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, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Hartford HLS Funds Annual Report December 31, 2020 Hartford Balanced HLS Fund Hartford Capital Appreciation HLS Fund Hartford Disciplined Equity HLS Fund Hartford Dividend and Growth HLS Fund Hartford Healthcare HLS Fund Hartford International Opportunities HLS Fund Hartford MidCap 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
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, 2020 to December 31, 2020.
Market Review
During the 12 months ended December 31, 2020, U.S. stocks, as measured by the S&P 500 Index,1 gained 18.40% – a stunning market-recovery story that few would have thought possible after the index dropped significantly in March 2020 in response to
the coronavirus (COVID-19) pandemic.
After all the ups and downs of a volatile year, it may be difficult to recall the initial flood of optimism that characterized the mood of early 2020 – a time of record-low unemployment, positive stock performances, and an improving global economy. That optimism faded in late January with the arrival of the novel coronavirus (COVID-19) pandemic, which quickly triggered a global recession and ended the longest bull market in U.S. economic history.
Almost overnight, economies shut down. Hospitals and healthcare providers struggled to care for the sick and the dying. Unemployment soared to 14.7%. Social distancing measures, business lockdowns, facemask requirements, and Zoom meetings upended lives.
To avert catastrophe, policymakers quickly swung into action. The U.S. Congress enacted the $2 trillion CARES Act in late March 2020 while the U.S. Federal Reserve (Fed) acted to reduce interest rates to near zero while pledging trillions in U.S. securities purchases. The combined fiscal and monetary support provided a lifeline to countless individuals and businesses. By late April 2020, the markets had largely recovered from their March losses. By November 2020, the U.S. unemployment rate had fallen to 6.7%.
The month of November was also notable for the election of Joseph R. Biden Jr. as the 46th President of the United States – ending a highly contentious political campaign that sharply divided the nation. In the days following the election, Pfizer and Moderna received federal approval for distribution of two COVID-19 vaccines that clinical trials showed were both safe and effective. The announcements set off yet another market rally and marked a major turning point that offered new hope for an eventual end to the pandemic, which by late December 2020 had taken the lives of more than 350,000 Americans.
As the period ended, the nation struggled to find efficient ways to distribute the vaccines to a nation racked by resurgent infections, localized lockdown measures, and continued dislocations in the travel, leisure, and service industries. A new $900 billion economic stimulus package fitfully made its way through Congress as the year drew to a close. Through it all, the stock market broke new records.
With two COVID-19 vaccines being distributed globally and the potential defeat of virus within sight, we look to a new year with a renewed sense of hopefulness. That said, a unified Democratic party in control of both the White House and Congress could prompt continued market volatility in the near term. In these unprecedented times, it is more important than ever to maintain a strong relationship with your financial professional.
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 does not guarantee future results. |
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’s portfolio manager(s) through the end of the period and are subject to change based on market and other conditions, and we disclaim any responsibility to update the views contained herein. These views may contain statements that are “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements. 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, 2020 (Unaudited)
| | |
Inception 03/31/1983 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term total return. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 11.62% | | | | 9.74% | | | | 9.24% | |
Class IB | | | 11.35% | | | | 9.47% | | | | 8.97% | |
60% S&P 500 Index/ 35% Bloomberg Barclays Government/Credit Bond Index/ 5% ICE BofA US 3-Month Treasury Bill Index1 | | | 14.87% | | | | 11.13% | | | | 9.98% | |
S&P 500 Index | | | 18.40% | | | | 15.22% | | | | 13.88% | |
Bloomberg Barclays US Government/Credit Bond Index | | | 8.92% | | | | 4.98% | | | | 4.19% | |
ICE BofA US 3-Month Treasury Bill Index2 | | | 0.67% | | | | 1.20% | | | | 0.64% | |
| 1 | Calculated by Hartford Funds Management Company, LLC |
| 2 | Effective 01/01/2020, the ICE BofAML US 3-Month Treasury Bill Index was rebranded as ICE BofA US 3-Month Treasury Bill Index. |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 were as follows: 0.66% (Class IA) and 0.91% (Class IB). As shown in the Fund’s current prospectus, the net expense ratios were 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 04/30/2021 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 12/31/2020.
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 Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
Adam H. Illfelder, CFA
Managing Director and Equity Research Analyst
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
Matthew C. Hand, CFA
Managing Director and Equity Research Analyst
* Michael E. Stack, CFA announced his plan to retire and withdraw from the partnership of Wellington Management Company LLP’s parent company, and effective June 30, 2021, he will no longer serve as a portfolio manager for the Fund. Mr. Stack’s portfolio management responsibilities for the fixed income portion of the Fund will transition to Ms. Moran in the months leading up to his departure.
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Balanced HLS Fund returned 11.62% for the twelve-month period ended December 31, 2020, underperforming the Fund’s blended benchmark, which is comprised of 60% S&P 500 Index, 35% Bloomberg Barclays Government/Credit Bond Index, and 5% ICE BofA US 3-Month Treasury Bill Index, which returned 14.87% for the same period. Individually, the S&P 500 Index, Bloomberg Barclays Government/Credit Bond Index, and ICE BofA US 3-Month Treasury Bill Index returned 18.40%, 8.92%, and 0.67%, respectively, during the period. For the same period, the Class IA shares of the Fund underperformed the 20.51% average return of the Lipper Mixed-Asset Target Allocation Growth Funds peer group, a group of funds that hold between 60%-80% in equity securities, with the remainder invested in bonds, cash, and cash equivalents.
Why did the Fund perform this way?
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, 2020. During the first quarter of 2020, U.S. equities ended lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third quarter earnings, economic resilience, substantial monetary support from the U.S. Federal Reserve (Fed), and optimism that vaccines will support a broad reopening of the U.S. economy in 2021.
During the twelve-month period, eight of the eleven sectors within the S&P 500 Index posted positive returns, led by the Information Technology (+44%), Consumer Discretionary (+33%), and Communication Services (+24%) sectors, while the Energy (-34%) and Real Estate (-2%) sectors lagged on a relative basis.
Over the period, most global fixed income sectors generated positive returns, driven by a decline in sovereign debt yields across most markets during the period, particularly in the earlier part of 2020 at the onset of
the pandemic. In March 2020, credit spreads widened over expectations that the decline in economic activity and supply chain disruptions would cause credit fundamentals to deteriorate. Credit spreads later recouped most of their widening, helped by central bank policies, support from fiscal policy and ultimately by encouraging vaccine developments. Through the rest of 2020, market volatility remained elevated as markets oscillated between the negative effects of virus containment measures and support provided by monetary and fiscal policy.
Global gross domestic product (GDP) releases indicated deep recessions in the second quarter of 2020 following various restrictions to business activity in order to combat the spread of the virus. By the end of period, global GDP sharply rebounded as economies emerged from lockdowns and labor data showed signs of improvement but remained strained by some metrics. By the end of the period, front-end yields remained anchored with the prospect of continued accommodative central bank policy while long-end yields rose with the prospect of additional fiscal stimulus. Global central banks maintained highly accommodative policy stances during the period. The Fed provided additional assurance that asset buying would continue for the foreseeable future. The European Central Bank (ECB) extended its pandemic emergency purchase program through at least March 2022.
During the period, asset allocation decisions contributed positively to the Fund’s performance relative to the blended benchmark. The Fund was generally overweight equities and underweight fixed income and cash relative to the blended benchmark. The equity portion of the Fund underperformed the S&P 500 Index, while the fixed income portion of the Fund outperformed the Bloomberg Barclays Government/Credit Bond Index.
Equity underperformance versus the S&P 500 Index was driven primarily by security selection. Weak selection within the Information Technology, Healthcare, and Consumer Discretionary sectors was partially offset by stronger selection in the Real Estate, Communication Services, and Financials sectors. Sector allocation, a residual of our bottom-up stock selection process, also detracted from results due to the Fund’s underweight allocation to the Information Technology sector and
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| Hartford Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
overweight allocation to the Financials sector. This was partially offset by the Fund’s underweight allocations to the Energy and Utilities sectors.
From an individual stock perspective within the equity portion of the Fund, not holding large benchmark constituents such as Apple (Information Technology) and Amazon (Consumer Discretionary), along with the Fund’s overweight position in Noble Energy (Energy), detracted the most from performance relative to the S&P 500 Index. Shares of Apple benefited from a strong iPhone cycle as 5G capabilities go mainstream, and the company also continued to see strength in its growing, high margin services segment (App Store, Apple Pay, and Apple TV+, among others). Shares of e-commerce giant Amazon also rose during 2020 on the back of strong e-commerce demand amid the global pandemic, as well as from the continued growth in its cloud business, Amazon Web Services. Noble Energy was down more than 70% over the course of 2020; the company’s share price rose in the fourth quarter of 2020 on the news that Chevron planned to acquire it.
Top contributors to performance relative to the S&P 500 Index in the equity portion of the Fund included not holding benchmark constituents Wells Fargo (Financials) and AT&T (Communication Services), as well as the Fund’s overweight position in Adobe. Shares of Adobe rose on strong earnings throughout 2020 and management released 2021 guidance that was above consensus estimates. In the fourth quarter of 2020, Adobe’s Digital Media annual recurring revenue grew 22% and Adobe’s Experience Cloud subscriptions grew 14%. Over the past year, Wells Fargo faced significant challenges after being charged with engaging in fraudulent sales practices for more than a decade. In February 2020, the bank announced that it had entered into a $3 billion dollar settlement agreement with the United States Department of Justice and the U.S. Securities and Exchange Commission (SEC). The coronavirus outbreak added further pressure, causing net interest income to fall and provisions for credit losses to rise. The company reported a loss in the second quarter of 2020 driven by large provisions which more than doubled first quarter levels. Finally, in the case of AT&T, the company came under pressure amid challenges in its media and video businesses related to the pandemic.
The fixed income portion of the Fund outperformed the Bloomberg Barclays Government/Credit Bond Index during the period. Security selection within investment-grade credit contributed positively to outperformance relative to the Bloomberg Barclays Government/Credit Bond Index, particularly selection within the Industrials and Financials sectors during the period. Within non-corporate credit, security selection and an underweight to local agency securities were the primary contributors. Out-of-benchmark allocations to agency mortgage-backed securities (MBS) pass-throughs and collateralized loan obligations (CLOs) contributed positively to relative performance. An out-of-benchmark allocation to commercial mortgage-backed securities (CMBS) moderately detracted from relative performance over the period. Duration/yield curve positioning also detracted from relative performance as the Fund was positioned with underweight positions to the short and long end of the yield curve 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?
We seek to consistently mitigate the downside risk of the Fund over a market cycle. We continue to favor companies that we believe have the potential to perform well in strong market environments.
On the fixed income side, we believe credit valuations are modestly high given near term uncertainty. We expect the Fed to hold short-term interest rates low while we believe long interest rates could rise over time as economic activity rebounds post vaccine rollout. We have positioned the fixed income portion of the Fund with a slight duration underweight relative to Bloomberg Barclays Government/Credit Bond Index.
While fundamentals are likely to remain strained for the medium term, credit markets continue as the main investment focus of the fixed income portion of the Fund and are well supported by global central bank policy, in our opinion. As of the end of the period, the Fund was overweight to corporate credit relative to the Bloomberg Barclays Government/Credit Bond Index in market value terms but underweight from a spread duration perspective, reflecting our more cautious view as valuations are less compelling given near-term uncertainty.
Within the equity portion of the Fund, the Fund ended the period with the Healthcare sector as its largest overweight and the Information Technology sector as its largest underweight. Within the fixed income portion of the Fund, the Fund is positioned overweight to the less cyclical sectors like the Communications and Utilities sectors as of the end of the period. We remain cautious on more cyclical sectors, such as the Energy sector, as of the end of the period. The fixed income portion of the Fund remains overweight to Taxable Municipals as of the end of the period given the diversification benefit and resilient underlying credit quality coupled with relatively attractive valuations in our view.
At the end of the period, the Fund’s equity exposure was at 67.8% compared to 60% in the blended 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. • Fixed income security risks include credit, liquidity, call, duration, event, and interest-rate risk. As interest rates rise, bond prices generally fall. • 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. • Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. • Mortgage-related and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk.
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| Hartford Balanced HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
Composition by Security Type(1)
as of 12/31/2020
| | | | |
| Category | | Percentage of
Net Assets | |
Equity Securities | | | | |
Common Stocks | | | 67.9 | % |
| | | | |
Total | | | 67.9 | % |
| | | | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage-Backed Securities | | | 2.2 | % |
Corporate Bonds | | | 14.7 | |
Foreign Government Obligations | | | 0.4 | |
Municipal Bonds | | | 0.9 | |
U.S. Government Agencies(2) | | | 0.7 | |
U.S. Government Securities | | | 11.2 | |
| | | | |
Total | | | 30.1 | % |
| | | | |
Short-Term Investments | | | 2.3 | |
Other Assets & Liabilities | | | (0.3 | ) |
| | | | |
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. |
| (2) | All or a portion of the securities categorized as U.S. Government Agencies were agency mortgage-backed securities as of December 31, 2020. |
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| Hartford Capital Appreciation HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 04/02/1984 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for the Fund’s other classes differ only to the extent that the classes do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 21.91% | | | | 13.93% | | | | 11.74% | |
Class IB | | | 21.62% | | | | 13.64% | | | | 11.46% | |
Class IC | | | 21.32% | | | | 13.36% | | | | 11.18% | |
Russell 3000 Index | | | 20.89% | | | | 15.43% | | | | 13.79% | |
S&P 500 Index | | | 18.40% | | | | 15.22% | | | | 13.88% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
Class IC shares commenced operations on 04/30/2014. Class IC shares performance prior to that date reflects Class IA shares performance adjusted to reflect the 12b-1 fee of 0.25% and the administrative services fee of 0.25% applicable to Class IC shares. The performance after such date reflects actual Class IC shares performance.
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 12/31/2020.
Class IA and IB shares of the Fund are 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, 2020 (Unaudited)
Gregg R. Thomas, CFA
Senior Managing Director and Director of Investment Strategy
Wellington Management Company LLP
Thomas 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 21.91% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmarks, the Russell 3000 Index, which returned 20.89% for the same period, and the S&P 500 Index, which returned 18.40% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 15.73% average return of the Lipper Multi-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
United States (U.S.) equities, as measured by the Russell 3000 Index, posted positive results over the trailing twelve-month period ending December 31, 2020. During the first quarter of 2020, U.S. equities ended lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market.
During the second quarter of 2020, U.S. equities finished higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Risk sentiment eased towards the end of the quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market’s rebound, and cautious comments from the Fed regarding the economic outlook.
In the third quarter of 2020, U.S. equities extended their strong rally, as markets were bolstered by ongoing monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.
U.S. equities rose again in the fourth quarter of 2020, bolstered by better-than-expected third-quarter 2020 earnings, economic resilience, substantial monetary support from the Fed and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the virus were overshadowed by highly
encouraging vaccine developments. In December 2020, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion, and the Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president after a closely contested election.
Returns were positive across market capitalizations during the period. Seven of the eleven sectors in the Russell 3000 Index had positive returns during the period. The Consumer Discretionary (+47.0), Information Technology (+46.1), and Communication Services (+25.8) sectors were the top performers, while the Energy (-33.2), Real Estate (-4.7%), and Financials (-2.1%) sectors lagged during the period.
Security selection was the primary contributor to Fund performance relative to the Russell 3000 Index during the period. Strong stock selection in the Communication Services, Healthcare, and Industrials sectors was only partially offset by weaker selection in the Consumer Discretionary, Consumer Staples, and Information Technology sectors, which detracted from performance during the period. Sector allocation, a residual of our bottom-up security selection process, detracted from performance relative to the Russell 3000 Index during the period. Underweight exposure to the Information Technology sector detracted most from performance and was only partially offset by underweight exposure to the Energy and Financials sectors and overweight exposure to the Consumer Discretionary sector, which contributed positively to performance.
The Fund employs a multiple portfolio manager structure. Allocations to the underlying portfolio managers who manage a portion of the Fund’s assets 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, volatility, quality and leverage. The Fund’s style factor exposures contributed positively to performance during the period, driven by the Fund’s exposure to stocks with greater volatility and a modest underweight exposure to dividend-paying stocks. This was partially offset by the Fund’s underweight exposure to higher momentum stocks and its smaller-cap footprint relative to the Russell 3000 Index.
The largest contributors to performance relative to the Russell 3000 Index during the period were Pinterest (Communication Services), Square (Information Technology), and Roku (Communication Services). Pinterest operates a pinboard-style photo-sharing website allowing users to create and manage theme-based image collections. Shares moved higher during the period following strong second-quarter revenue that exceeded analyst expectations and strong growth in monthly active users. The company continued its momentum into the third quarter of 2020, where it again reported revenue and user growth in excess of expectations. As of the end of the period, the Fund remained overweight in the stock relative to the Russell 3000 Index. During the period, the
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| Hartford Capital Appreciation HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
share price of Square, a credit card processing solutions company, surged higher as lockdown measures related to the spread of coronavirus continued the need for merchants to process transactions electronically. Strong momentum in the company’s Cash App also helped contribute to positive performance. As of the end of the period, the Fund remained overweight the stock relative to the Russell 3000 Index. Roku, a streaming platform for television, reported solid user growth in the first quarter of 2020 but it was only a slight acceleration from the prior quarter. Despite a surge in over-the-top (OTT) viewing during the period, advertiser spending weakened as a result of the global pandemic. The second quarter of 2020 resulted in revenue in excess of analyst estimates; however, the outlook for the resumption of advertiser spending remained uncertain, with expectations that it could take until 2021 to recover to pre-pandemic levels. Towards the end of the period, Roku reported strong third-quarter 2020 results as advertising revenue bounced back and drove growth. The company recognized over 40% growth in active accounts. During the period, we trimmed the Fund’s exposure to the company on share-price strength but as of the end of the period, the Fund remained overweight in the stock relative to the Russell 3000 Index.
The largest detractors from relative performance during the period were underweight exposures to Apple (Information Technology), Tesla (Consumer Discretionary), and Microsoft (Information Technology). Apple designs, manufactures, and sells personal computers, tablets, wearables, and a variety of related services. The share price of Apple moved higher during the period on quarterly earnings and revenue ahead of consensus estimates. The company participated in a four-for-one stock split during the period. As of the end of the period, we continued to hold an underweight position in the stock relative to the Russell 3000 Index. Tesla engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. Shares of the company moved higher during the period as the company reported its fourth consecutive quarter of profitability which many viewed as the last hurdle towards Tesla’s inclusion in the S&P 500 Index. The stock entered the S&P 500 Index at the end of 2020 and shares moved higher amid positive investor sentiment. We initiated a small position in the stock during the period, which we subsequently sold later in the period as we sought to capitalize on strength while pursuing other opportunities that we believed would provide better risk and return profiles. Microsoft, a company that engages in the development and support of software, services, devices, and solutions, performed well during the beginning of the period with stay-at-home and remote-work related businesses (Teams, Gaming, virtual desktop) gaining traction. The stock continued to move higher during the period before giving back some gains after it was announced that the company’s bid for video-sharing site TikTok was not accepted. In the fourth quarter of 2020, the company reported strong quarterly results with growth in its cloud business and acceleration in commercial bookings. The market reacted negatively, however, to management’s issued guidance for the upcoming quarter which noted expected weakness in personal computing and Xbox supply constraints. As of the end of the period, the Fund remained underweight to the stock relative to the Russell 3000 Index.
During the period, the Fund, at times, used 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 positively to results.
What is the outlook as of the end of the period?
At the end of the period, considerable macroeconomic challenges persist as markets balance long-term optimism with near-term challenges. Positive news surrounding the efficacy and distribution of coronavirus vaccines has fueled investor exuberance amid expectations for a post-pandemic economic recovery. Meanwhile, a new wave of coronavirus infections is impacting regions across the country, increasing the potential for broad shutdowns and their associated negative economic ramifications, including the risk of companies becoming insolvent. To that end, we expect continued market volatility and remain vigilant in seeking to manage risks in the Fund, seeking to ensure that security selection drives results.
At the end of the period, the Fund’s largest overweights were to the Consumer Staples and Consumer Discretionary sectors, while the Fund’s largest underweights were to the Information Technology and Communication Services sectors, relative to the Russell 3000 Index.
Important Risks
Investing involves risk, including the possible loss of principal. The Fund’s strategy for allocating assets among portfolio management teams may not work as intended. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. •Small- and mid-cap securities can have greater risks and volatility than large-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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 6.5 | % |
Consumer Discretionary | | | 16.7 | |
Consumer Staples | | | 10.4 | |
Energy | | | 1.0 | |
Financials | | | 10.0 | |
Health Care | | | 16.3 | |
Industrials | | | 8.6 | |
Information Technology | | | 20.3 | |
Materials | | | 2.8 | |
Real Estate | | | 3.6 | |
Utilities | | | 1.4 | |
| | | | |
Total | | | 97.6 | % |
| | | | |
Short-Term Investments | | | 2.2 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
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, 2020 (Unaudited)
| | |
Inception 05/29/1998 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for the Fund’s other classes differ only to the extent that the classes do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 18.04 | % | | | 14.88 | % | | | 14.91 | % |
Class IB | | | 17.78 | % | | | 14.60 | % | | | 14.62 | % |
Class IC | | | 17.46 | % | | | 14.31 | % | | | 14.34 | % |
S&P 500 Index | | | 18.40 | % | | | 15.22 | % | | | 13.88 | % |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
Class IC shares commenced operations on 09/18/2020. Class IC shares performance prior to that date reflects Class IA shares performance adjusted to reflect the 12b-1 fee of 0.25% and the administrative services fee of 0.25% applicable to Class IC shares. The performance after such date reflects actual Class IC shares performance.
You cannot invest directly in an index.
See “Benchmark Glossary” for benchmark descriptions.
As shown in the Fund’s current prospectus for Class IA and IB, the total annual fund operating expense ratios for Class IA and Class IB were 0.61% and 0.86, respectively. As shown in the Fund’s current prospectus for Class IC, the total annual fund operating expense ratio for Class IC shares was 1.11%. 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 12/31/2020.
Class IA and Class IB of the Fund are closed to certain qualified pension and retirement plans. For more information, please see the Fund’s statutory prospectus for Class IA and Class IB.
|
| Hartford Disciplined Equity HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
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
Senior 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 the Hartford Disciplined Equity HLS Fund returned 18.04% for the twelve-month period ended December 31, 2020, underperforming the Fund’s benchmark, the S&P 500 Index, which returned 18.40% for the same period. For the same period, the Class IA shares of the Fund slightly outperformed the 17.29% average return of the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
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, 2020. U.S. equities ended the first quarter of 2020 sharply lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market.
U.S. equities ended the second quarter of 2020 higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Risk sentiment eased at the end of the second quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market’s rebound, and cautious comments from the Fed regarding the economic outlook.
In the third quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus. In September, the S&P 500 Index declined for the first time in five months. The Fed signaled its expectation to hold interest rates near zero until inflation is on track to moderately exceed 2%.
During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third quarter earnings, economic resilience, substantial monetary support from the Fed, and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the virus were overshadowed by highly encouraging vaccine developments. In December 2020, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion, and the Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president, removing a key element of uncertainty for the market. Third-quarter earnings results for companies in the S&P 500 Index were significantly better than expected.
Returns varied by market capitalization during the period as large-cap equities, as measured by the S&P 500 Index, underperformed small-cap equities, as measured by the Russell 2000 Index, but outperformed mid-cap equities, as measured by the S&P MidCap 400 Index. During the twelve-month period, eight of the eleven sectors within the S&P 500 Index rose, led by the Information Technology (+44%), Consumer Discretionary (33%), and Communication Services (+24%) sectors. The Energy sector performed worst, down (-34%) during the period.
Security selection was the primary detractor from the Fund’s returns relative to the S&P 500 Index during the period. Selection within the Information Technology, Consumer Discretionary, and Real Estate sectors detracted most from relative performance, while selection within the Consumer Staples, Industrials, and Utilities sectors contributed positively to relative returns. Sector allocation, which is a residual of our bottom-up security selection process, contributed positively to relative performance driven by underweights to the Energy and Real Estate sectors, and an overweight to the Healthcare sector. This was partially offset by an underweight allocation to both the Information Technology and Communication Services sectors, and an overweight allocation to the Consumer Staples sector, which detracted from performance.
Top detractors from relative performance over the period were PVH (Consumer Discretionary), Boston Properties (Real Estate), and not owning NVIDIA (Information Technology), a constituent of the S&P 500 Index. Shares of PVH, a U.S.-based global apparel company, fell during the period as retail demand slowed globally in response to the coronavirus pandemic. Share prices, however, partially recovered towards the end of the twelve-month period after the company reported better-than-expected third-quarter fiscal results, citing strength in its international business, a solid e-commerce performance, and rising demand for casual wear. We sold this position in the Fund during the period. Shares of Boston Properties declined over the year; due to the
|
| Hartford Disciplined Equity HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
stay-at-home policies during the year, physical occupancy within the company’s properties was low. We sold this position in the Fund during the period. Shares of chip maker NVIDIA rose during the period after reporting consecutively strong quarterly results. NVIDIA has benefited from much of the world working and learning from home as sales of laptops and game consoles using NVIDIA chips lifted earnings for the company. Not owning the stock during the period was a detractor from Fund performance due to the stock’s strong performance.
The largest contributors to the Fund’s performance relative to the S&P 500 Index over the period were not owning both Exxon Mobil (Energy) and Wells Fargo (Financials), which are each constituents of the S&P 500 Index, as well as an overweight holding in Teradyne (Information Technology). Shares of the oil- and gas-producing company Exxon Mobil came under pressure the past year due to a decrease in crude oil and natural gas prices amid escalating concerns of a slowing macroeconomic environment. Not owning the stock was a positive contributor over the period due to poor performance. Shares of Wells Fargo declined over the year after reporting consecutive disappointing quarterly results. In July, the company announced it set aside a record $9.5 billion for credit losses. Executives warned they would earmark more for soured loans as the pandemic continued to rage throughout the U.S. and weigh on companies and workers. Falling yields have also negatively affected the bank. Not owning the stock was a positive contributor to Fund performance over the period due to the stock’s poor performance. Shares of Teradyne, an automated test equipment and industrial automation company, rose during the period. Towards the end of the period, the company released third-quarter earnings that beat consensus and guided revenue expectations for the fourth quarter higher.
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 are keeping an eye on the Georgia runoff election for the Senate, and whether control of the Senate will flip to the Democrats. Depending on the outcome, we will consider various policy implications from that event, including if there is alignment of majorities for both legislative houses and the presidency.
It is encouraging that there is an effort underway to vaccinate the population even if the pace of the initial rollout has been disappointing relative to earlier expectations. Despite worries about different strains, at least so far, we remain optimistic about the potential for putting the pandemic behind us this year. Given the efficacy of the various vaccines, there still may be some lasting lifestyle changes and we are mindful of this development. Despite these changes, we expect unemployment rates to come down in 2021 as a recovery takes hold, especially in some of the hardest-hit industries.
We remain cautious, being mindful of pockets of extreme speculation and valuations that are hard to justify. On the positive side, we believe the combination of a high savings rate, stimulus payments, and rehiring more recently implies a very healthy consumer when the economic recovery takes shape.
As always, we continue to focus on the long term. While we did make some changes to portfolio holdings in the Fund during the period, we continue to be incremental and mindful of the impact of volatility.
At the end of the period, the Fund’s largest overweights were to the Consumer Staples, Healthcare, and Financials sectors, while the Fund’s largest underweights were to the Energy, Real Estate, and Consumer Discretionary sectors, relative to the S&P 500 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.
Composition by Sector(1)
as of 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 10.7 | % |
Consumer Discretionary | | | 11.9 | |
Consumer Staples | | | 8.6 | |
Energy | | | 0.9 | |
Financials | | | 11.1 | |
Health Care | | | 13.9 | |
Industrials | | | 8.5 | |
Information Technology | | | 27.6 | |
Materials | | | 2.1 | |
Real Estate | | | 1.6 | |
Utilities | | | 2.6 | |
| | | | |
Total | | | 99.5 | % |
| | | | |
Short-Term Investments | | | 0.5 | |
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 Dividend and Growth HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 03/09/1994 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks a high level of current income consistent with growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 7.77% | | | | 12.28% | | | | 11.70% | |
Class IB | | | 7.45% | | | | 11.99% | | | | 11.42% | |
S&P 500 Index | | | 18.40% | | | | 15.22% | | | | 13.88% | |
Russell 1000 Value Index | | | 2.80% | | | | 9.74% | | | | 10.50% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.66% and 0.91%, 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 12/31/2020.
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, 2020 (Unaudited)
Matthew G. Baker
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Nataliya Kofman
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 Dividend and Growth HLS Fund returned 7.77% for the twelve-month period ended December 31, 2020, underperforming the Fund’s benchmark, the S&P 500 Index, which returned 18.40% for the same period, and outperforming the Fund’s other benchmark, the Russell 1000 Value Index, which returned 2.80% for the same period. For the same period, the Class IA shares of the Fund outperformed the 4.27% 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 ended December 31, 2020. U.S. equities ended the first quarter of 2020 sharply lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market.
U.S. equities ended the second quarter of 2020 higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Risk sentiment eased at the end of the second quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market’s rebound, and cautious comments from the Fed regarding the economic outlook.
In the third quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus. In September, the S&P 500 Index declined for the first time in five months. The Fed signaled its expectation to hold interest rates near zero until inflation is on track to moderately exceed 2%.
During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third quarter earnings, economic resilience, substantial monetary support from the Fed, and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the virus were overshadowed by highly encouraging vaccine developments. In December 2020, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion, and the Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president, removing a key element of uncertainty for the market. Third-quarter earnings results for companies in the S&P 500 Index were significantly better than expected.
Returns varied by market cap during the period, as small-cap equities, as measured by the Russell 2000 Index, outperformed both large- and mid-cap equities, as measured by the S&P 500 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, eight of the eleven sectors within the S&P 500 Index posted positive returns, led by Information Technology (+44%), Consumer Discretionary (+33%), and Communication Services (+24%). Energy (-34%), Real Estate (-2%) and Financials (-2%) lagged.
Sector allocation, a result of our bottom-up stock selection process, was the primary driver of the Fund’s underperformance relative to the S&P 500 Index during the period. An underweight to the Information Technology sector and overweights to the Energy and Financials sectors detracted from performance; however, this was partially offset by an overweight to the Industrials sector and an underweight to the Real Estate sector, both of which contributed positively. Security selection also detracted from relative performance over the period. Weak selection within the Information Technology, Consumer Discretionary, and Communication Services sectors was partially offset by stronger selection within the Energy and Financials sectors, which contributed positively to the Fund’s relative performance.
The Fund’s top detractors from performance relative to the S&P 500 Index included not owning Amazon (Consumer Discretionary), an underweight to Apple (Information Technology) and an overweight to Bank of America (Financials), as well as an allocation to Suncor Energy (Energy), which was outside of the benchmark. Not holding S&P 500 Index constituent Amazon (Consumer Discretionary) was a top relative detractor from performance during the period as shares of the company rose during the period. An underweight to Apple (Information Technology) was the other significant relative detractor from performance during the period as shares of Apple rose during the period. We maintained the Fund’s underweight in Apple stock due to what we viewed as a high valuation for relatively moderate growth. Shares of Bank of America fell as coronavirus worries sent U.S. Treasury yields lower. U.S. 30-year Treasury notes fell to a record low, and 10-year
|
| Hartford Dividend and Growth HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
Treasury notes fell to levels not seen since 2016, narrowing the spread on the bank’s longer-term assets funded with shorter-term liabilities. Broadly speaking, the Energy sector was the worst performing sector as the correction in oil prices was set off by the failed Organization of the Petroleum Exporting Countries Plus supply agreement and was further exacerbated by severe demand reduction due to restrictions on global economic activity. At the end of the period, shares of Suncor were under pressure driven by lower commodity prices and elevated costs and expenses. We eliminated the Fund’s position in the first quarter of 2020 as we preferred large integrated Energy companies.
Top contributors to Fund performance relative to the S&P 500 Index over the period included underweight allocations to Exxon Mobil (Energy) and Wells Fargo (Financials), as well as an overweight to Deere & Co (Industrials). ExxonMobil (Energy) was a top contributor to relative performance during the period, as we exited the position prior to the energy market collapse in March 2020. Not owning shares of Well Fargo contributed to relative performance as the company’s shares fell over the period after the chief financial officer predicted higher loan-loss provisions in addition to a sharp drop in interest income for the year. Deere & Co shares rose during the period as it reported strong earnings results and increased its sales outlook for the year as demand remained resilient despite the uncertainty related to the coronavirus pandemic.
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 market continued its positive trajectory in the fourth quarter of 2020, bolstered by enthusiasm around the positive vaccine announcements. Now that the U.S. Food and Drug Administration (FDA) has approved a number of vaccines, we believe a successful distribution and administration of the vaccine may allow the economy to regain some normalcy by the end of the year. Despite this clear positive, risks remain such as rising geopolitical uncertainty, new waves of the coronavirus, and massive debt. That being said, we believe that many areas of the market were overlooked in 2020. Our framework during these turbulent times has been to seek to avoid balance sheet risk while seeking to identify mispriced opportunities that have the potential to create enormous value on the other side of the pandemic.
At the end of the period, the Fund remained most overweight in the Financials and Energy sectors and most underweight in the Information Technology and Consumer Discretionary sectors, relative to the S&P 500 Index.
In the face of great uncertainty, we remain focused on seeking to invest the Fund’s assets in companies that we believe to have reasonable valuations, with attractive long-term free cash flow generation, solid balance sheets, and resilient fundamentals.
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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 8.8 | % |
Consumer Discretionary | | | 6.5 | |
Consumer Staples | | | 5.7 | |
Energy | | | 4.5 | |
Financials | | | 19.2 | |
Health Care | | | 15.3 | |
Industrials | | | 9.5 | |
Information Technology | | | 19.0 | |
Materials | | | 4.0 | |
Real Estate | | | 2.3 | |
Utilities | | | 3.5 | |
| | | | |
Total | | | 98.3 | % |
| | | | |
Short-Term Investments | | | 1.2 | |
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 Healthcare HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 05/01/2000 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 23.10% | | | | 12.44% | | | | 17.82% | |
Class IB | | | 22.79% | | | | 12.16% | | | | 17.52% | |
S&P Composite 1500 Health Care Index | | | 14.55% | | | | 12.12% | | | | 16.16% | |
S&P 500 Index | | | 18.40% | | | | 15.22% | | | | 13.88% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.92% and 1.17%, 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 12/31/2020.
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, 2020 (Unaudited)
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
Rebecca D. Sykes
Senior Managing Director and Global Industry Analyst
Wellington Management Company LLP
* Effective June 30, 2021, Ms. Hynes will no longer serve as a portfolio manager to the Fund. Through June 30, 2021, Ms. Hynes will transition her portfolio management responsibilities to Ms. Sykes.
Manager Discussion and Analysis
How did the Fund perform during the period?
The Class IA shares of Hartford Healthcare HLS Fund returned 23.10% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmarks, the S&P Composite 1500 Health Care Index, which returned 14.55% for the same period, and the S&P 500 Index, which returned 18.40% for the same period. For the same period, the Class IA shares of the Fund outperformed the 12.77% 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?
United States (U.S.) healthcare equities underperformed the broader U.S. market and global equity market during the period, as measured by the S&P Composite 1500 Health Care Index, S&P 500 Index, and the MSCI World Index, respectively. Within the S&P Composite 1500 Health Care Index, mid-cap biopharma returned 23%, medical technology returned 22%, healthcare services returned 15%, large-cap biopharma returned 8%, and small-cap biopharma returned 2% for the period.
The Fund outperformed the S&P Composite 1500 Health Care Index over the period primarily because of favorable security selection decisions. Security selection was strongest in mid- and small-cap biopharma. Sector allocation detracted from performance relative to the S&P Composite 1500 Health Care Index. An overweight to small-cap biopharma and the Fund’s cash position detracted from results relative to the S&P Composite 1500 Health Care Index during the period, offsetting positive results from an overweight to mid-cap biopharma and an underweight to large-cap biopharma.
Forty Seven (small-cap biopharma), Momenta Pharmaceuticals (mid-cap biopharma), and Zai Lab (mid-cap biopharma) were the top contributors to performance relative to the S&P Composite 1500 Health Care Index. In March, Forty Seven, a U.S.-based development-stage targeted oncology company, announced an agreement in which Gilead Sciences would acquire Forty Seven for $4.9 billion, a 60% premium to the stock’s February 2020 end-of-month closing price. Shares of Momenta Pharmaceuticals, a U.S.-based biopharmaceutical company focused on
developing drugs and biosimilars for cancer and autoimmune diseases,
rose sharply in August after the company announced it had been acquired by Johnson & Johnson for approximately $6.5 billion in cash, which is approximately a 70% premium over the stock’s prior closing price. Subsequently, we eliminated both positions (Forty Seven and Momenta Pharmaceuticals) in the Fund during the period after the respective announcements. Zai Lab, a Chinese biopharma focused on treatments for cancer, autoimmune, and infectious diseases traded higher following the March 2020 drawdown due to strong demand for the company’s products. More recently, the stock was up after the company’s partner, Macrogenics, announced U.S. Food & Drug Administration (FDA) approval of its drug for patients with pretreated metastatic HER2-positive breast cancer. Top absolute contributors relative to the S&P Composite 1500 Health Care Index during the period included Forty Seven, UnitedHealth Group, and Thermo Fisher Scientific.
Boston Scientific (medical technology), Tricida (small-cap biopharma), and not owning AbbVie (large-cap biopharma) detracted most from results relative to the S&P Composite 1500 Health Care Index over the period. Boston Scientific, a U.S.-based medical device company, was one of the first large healthcare companies to forecast a negative sales impact to Chinese operations from the coronavirus pandemic. While coronavirus spread throughout Europe and the U.S., shares slid further as investors anticipated additional business disruption. Towards the end of the period, the company reported that its Scope II trial missed the primary endpoint and that it has initiated a global, voluntary recall of all unused inventory of the LOTUS Edge Aortic Valve System due to complexities associated with the product delivery system. Shares of Tricida, a clinical-stage biopharma company that is focused on treatment of metabolic acidosis, declined during the period after the FDA issued a Complete Response Letter (CRL) to the company regarding its New Drug Application for veverimer, a treatment for metabolic acidosis in patients with chronic kidney disease. Based on more recent discussions with the FDA, the additional clinical data required is more robust than previously anticipated, creating a more challenging path forward for the company. We eliminated the Fund’s position during the period. Not owning strong-performing AbbVie detracted from performance relative to the S&P Composite 1500 Health Care Index. The company reported
|
| Hartford Healthcare HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
better-than-expected first- and third-quarter earnings results and maintained full year guidance, driven by sales of top arthritis drug Humira. Boston Scientific, Anthem, and Medtronic were top detractors from absolute performance during the period.
Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.
What is the outlook as of the end of the period?
We expect the human and economic impact of the coronavirus pandemic to remain challenging but remain optimistic about the rollout of effective vaccines underway. Essential workers and certain high-risk parts of the population have been prioritized to receive initial doses of the vaccine. We are closely monitoring the emergence of novel variants of the SARS-CoV-2 virus, which started in the United Kingdom and South Africa and has now spread globally. Based on available data and the design of the vaccines, we expect the vaccines targeting the viral spike protein may offer protection against the novel variants.
Beyond vaccine development, the coronavirus crisis highlighted the need for more significant testing infrastructure in developed and emerging markets, which we believe may continue to drive demand within the diagnostics industry. Furthermore, we anticipate medical device trends and hospital utilization to recover gradually, as many medical procedures cannot be deferred indefinitely, and we believe that vaccine availability should likely continue to restore patient confidence in accessing the system.
The biopharmaceutical industry has come together in response to this pandemic by spending Research & Development (R&D) dollars to develop treatments and vaccines for coronavirus, while seeking minimal profits. We expect the financial benefit of successful treatments to be minimal and short-term for the companies developing them, yet we anticipate the goodwill will create a halo-effect for the industry. Additionally, President-elect Joe Biden will take office in January 2021 and we believe he is likely to govern as a centrist. This would be a favorable outcome, as it would likely be supportive of more moderate healthcare policies in our view. This scenario increases the likelihood of manageable drug price legislation sometime in 2021 or 2022, which could remove the five-year overhang on the industry.
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 expect the tailwinds of innovation, an aging population, and the globalization of demand for cutting-edge Western-style medicines are likely to 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. •Small- and mid-cap securities can have greater risks and volatility than large-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 may be greater for investments in emerging markets.
Composition by Subsector(1)
as of 12/31/2020
| | | | |
| Subsector | | Percentage of
Net Assets | |
Equity Securities | |
Biotechnology | | | 21.2 | % |
Diversified Telecommunication Services | | | 0.3 | |
Electronic Equipment, Instruments & Components | | | 0.1 | |
Health Care Equipment & Supplies | | | 23.9 | |
Health Care Providers & Services | | | 17.2 | |
Life Sciences Tools & Services | | | 10.7 | |
Pharmaceuticals | | | 23.9 | |
| | | | |
Total | | | 97.3 | % |
| | | | |
Short-Term Investments | | | 2.5 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
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 International Opportunities HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 07/02/1990 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 20.45% | | | | 9.43% | | | | 6.80% | |
Class IB | | | 20.09% | | | | 9.14% | | | | 6.53% | |
MSCI ACWI ex USA Index (Net) | | | 10.65% | | | | 8.93% | | | | 4.92% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.74% and 0.99%, 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 12/31/2020.
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, 2020 (Unaudited)
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 20.45% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmark, the MSCI ACWI ex USA Index (Net), which returned 10.65% for the same period. For the same period, Class IA shares of the Fund outperformed the 14.42% average return of the Lipper International Large-Cap Growth Fund peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
For the twelve-month period ended December 31, 2020, international equities rose 10.65%, as measured by the MSCI ACWI ex USA Index (Net). In the first-quarter of 2020, international equities ended sharply lower. The coronavirus spread rapidly across the globe, causing unprecedented disruption to financial markets and economies and overshadowing optimism about a phase-one trade deal between the United States (U.S.) and China. The World Health Organization (WHO) declared the coronavirus outbreak a pandemic. Market volatility remained extremely high, and liquidity plunged to record lows. In response, the U.S. government unleashed a massive fiscal stimulus plan to stem economic damage. The European Union (EU) suspended budget and borrowing rules to give governments more fiscal flexibility to deal with the crisis. The price of oil plunged to its lowest level since 2002.
International equity markets surged during the second quarter of 2020. Markets were fueled by optimism about successful early-stage trials for a potential coronavirus vaccine, ongoing fiscal and monetary stimulus, and signs that global economic activity was improving. As new infections declined in most countries, governments shifted their focus toward gradually lifting lockdown restrictions and supporting the recovery of their economies. The European Commission announced a proposal for a €750 billion (US$912 billion) recovery fund to provide grants and loans to Eurozone economies that had been devastated by the coronavirus pandemic. After plummeting to historic lows in April 2020 amid a pandemic-induced collapse in demand, oil rebounded later in the quarter as the global economy began to recover.
International equities rose in the third quarter of 2020. Markets were bolstered by the impact of the massive fiscal and monetary stimulus from governments and central banks, further signs of a recovery in global economic growth, and the potential for coronavirus vaccines in the near future. However, the recovery was threatened by the pandemic as the worldwide death toll and infections increased. The EU reached an agreement on a €750 billion recovery fund to aid countries in the region that had been most severely impacted by the pandemic. The U.S. dealt with political uncertainty ahead of the 2020 presidential election and a
lack of additional fiscal stimulus. Negotiations surrounding the United Kingdom’s (U.K.’s) exit from the EU (also known as Brexit) deteriorated
after a controversial bill that could override elements of the Brexit Withdrawal Agreement passed its first parliamentary hurdle in the U.K. House of Commons.
In the fourth quarter of 2020, international equities rose for the third straight quarter. Markets rebounded sharply after two coronavirus vaccines demonstrated high efficacy rates in Phase 3 trials, fueling optimism that the pandemic could be alleviated in the near term. Despite this favorable development, the logistical challenges of distributing and administering the vaccines had been significant, and high coronavirus case counts threatened to undermine the global economic recovery. In the U.S., infections hit record highs, while the government agreed on a pandemic relief plan that will extend many of the Coronavirus Aid, Relief, and Economic Security (CARES) Act support measures. The European Central Bank (ECB) expanded its massive monetary stimulus program by €500 billion, as new lockdown measures weighed on the Eurozone’s economic recovery. The U.K. and the EU agreed to a trade deal, setting the terms for a post-Brexit future, and ending four years of political negotiations since the U.K.’s 2016 referendum on EU membership.
During the period, U.S. equities outperformed non-U.S. equities, as measured by the S&P 500 Index and MSCI EAFE Index, respectively, and developed market equities underperformed 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), eight of the eleven sectors posted positive returns during the period; the Information Technology (46%), Consumer Discretionary (23%), and Materials (22%) sectors posted the largest gains.
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 Communication Services, Information Technology, and Healthcare sectors. This was partially offset by weaker selection within the Energy sector. Sector allocation, a result of our bottom-up security selection process, also contributed positively to relative performance during the period. Relative underweights to the Energy and Financials sectors benefited results while overweights to the Healthcare and Real Estate sectors detracted from performance. On a regional basis, security selection was strongest within emerging markets and the U.K.
Tencent Holdings (Communication Services), China Tourism Group (Consumer Discretionary), and Zalando (Consumer Discretionary) were among the top contributors to relative performance during the period. Tencent is a Chinese multinational technology and internet conglomerate. Shares reached all-time highs during the period, as the company saw a surge in gaming activity with consumers staying home during coronavirus lockdowns. Revenue for the third quarter of 2020 rose 29% year over year. Shares of China Tourism Group, a Chinese travel and tourism service provider, increased over the period. Despite
|
| Hartford International Opportunities HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
declining sales amid coronavirus-related travel restrictions in the first half of 2020, the company reported signs of rapid recovery in the latter half of the year. China’s Golden Week holiday also supported sales in China, as shoppers spent more in their home country rather than traveling overseas. The stock price for Zalando, a European e-commerce company offering fashion and lifestyle products, ended the period higher. The company reported strong revenue growth in the second and third quarters of 2020, as lockdowns sparked an increased interest in digital shopping.
Top detractors from Fund performance relative to the MSCI ACWI ex USA Index (Net) during the period included AerCap (Industrials), Ovintiv (Energy), and Airbus (Industrials). Shares of the Irish aircraft leasing company AerCap fell over the period. In the first quarter of 2020, AerCap announced its intention to draw down on its $6.6 billion credit line to shore up capital and prevent shortfalls amid coronavirus pandemic concerns. The decline in the demand for air travel due to coronavirus has put pressure on AerCap’s leasing operations. With these challenges in mind, we eliminated the Fund’s position in favor of opportunities with more favorable risk/reward profiles in our view. Ovintiv stock fell after the American exploration and production company took drastic action to reduce second quarter costs amid falling oil prices. We eliminated the Fund’s position during the period and redeployed capital into opportunities with more favorable risk/reward in our view. Shares of the European aerospace corporation Airbus fell over the period as the company’s aircraft deliveries have continued to be impacted during the coronavirus pandemic. The company also announced plans for further furloughs and the possibility of shortening work time, among other considerations to reduce layoffs. As of the end of the period, the Fund continued to hold the stock.
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?
Markets continued to recover over the fourth quarter of 2020 as the global economy has continued to gradually emerge from lockdown. However, sporadic lockdowns and regional regressions have driven persistent volatility. Across markets, the recovery broadened out as more cyclicals and interest-rate sensitive companies participated in the rally over the quarter. As of the end of the period, we continued to trim companies that have outperformed this year and rotate capital into companies in sectors that have lagged where we see better fundamentals going forward.
We continue to track the spread and evolution of the coronavirus as well as the global economic recovery – particularly fiscal and monetary stimulus and shifts in consumption behavior. We are mindful that equity market valuations, especially for high-growth business models, have risen this year. Amid this valuation landscape and the heightened uncertainty associated with the pandemic, we are finding what we view as compelling opportunities in companies that have improved their competitive advantages during the lockdown, are geared to the reopening of economies, or have pricing power, making them well positioned in our view to benefit from supply-demand imbalance across end markets. We continue to be focused on companies where we believe the market does not fully appreciate the impact of these factors on future returns on capital.
At the end of the period, the Fund’s largest overweights were in the Information Technology and Industrials sectors relative to the MSCI ACWI ex USA Index (Net). The Fund was most underweight to the Consumer Staples and Financials sectors. From a regional perspective, the Fund’s largest overweight was Developed Europe and the Middle East ex U.K. and the Fund was most underweight to emerging markets.
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 than large-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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 4.7 | % |
Consumer Discretionary | | | 14.7 | |
Consumer Staples | | | 5.9 | |
Energy | | | 2.6 | |
Financials | | | 15.2 | |
Health Care | | | 10.6 | |
Industrials | | | 14.7 | |
Information Technology | | | 18.4 | |
Materials | | | 5.6 | |
Real Estate | | | 2.8 | |
Utilities | | | 3.3 | |
| | | | |
Total | | | 98.5 | % |
| | | | |
Short-Term Investments | | | 1.0 | |
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. |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 07/14/1997 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 25.10% | | | | 16.48% | | | | 14.07% | |
Class IB | | | 24.80% | | | | 16.19% | | | | 13.79% | |
S&P MidCap 400 Index | | | 13.66% | | | | 12.35% | | | | 11.51% | |
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.70% and 0.95%, 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 12/31/2020.
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, 2020 (Unaudited)
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 25.10% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmark, the S&P MidCap 400 Index, which returned 13.66% for the same period. For the same period, the Class IA shares of the Fund underperformed the 40.09% average return of the Lipper Mid-Cap Growth Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
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, 2020. U.S. equities ended the first quarter of 2020 sharply lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. U.S. equities ended the second quarter of 2020 higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020.
In the third quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter of 2020; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.
During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third-quarter 2020 earnings, economic resilience, substantial monetary support from the Fed, and optimism that vaccines will support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the coronavirus were overshadowed by highly encouraging vaccine developments. Joe Biden was elected president, removing a key element of uncertainty for the market.
Returns during the period varied by market cap. Small-cap equities, as measured by the Russell 2000 Index, outperformed mid-cap and large-cap equities, as measured by the S&P MidCap 400 Index and S&P 500 Index, respectively. Seven of the eleven sectors within the S&P MidCap 400 Index posted positive returns led by the Information Technology (+36%), Consumer Discretionary (+31%), and Healthcare (+30%)
sectors. The Energy (-38%), Utilities (-14%), and Real Estate (-12%) sectors were the worst performers for the period.
Both allocation and security selection effects contributed positively to the Fund’s performance relative to the S&P MidCap 400 Index during the period. Sector allocation, a result of the bottom-up security selection process, contributed positively to relative returns over the period. An overweight to the Information Technology sector contributed positively to relative returns, as did an underweight to the Real Estate sector. An underweight to the Consumer Discretionary sector and an overweight to the Communication Services sector relative to the S&P MidCap 400 Index partially offset results during the period. From a security selection standpoint, positive results were driven by strong selection in the Industrials, Communication Services, and Consumer Discretionary sectors. This was partially offset by weaker selection in the Information Technology, Healthcare, and Energy sectors.
Top contributors to the Fund’s performance relative to S&P MidCap 400 Index during the period included II-VI (Information Technology), Etsy (Consumer Discretionary), and Wayfair (Consumer Discretionary). The share price of II-VI, an engineered materials and optoelectronics component manufacturer, rose during the year. The company has benefited from the increased focus on the growth in electric vehicles (EVs). The company re-ramped their Silicon Carbide product, an important component of EVs and a market in which they have 40% share. As of the end of the period, we continued to hold the position within the Fund. Shares of Etsy rose throughout the year after the handmade crafts e-commerce platform became a leading supplier of homemade cloth masks. The company has seen a spike in customer acquisitions resulting in increased brand awareness and opportunities for customer retention. As of the end of the period, we continued to hold the position within the Fund. Shares of Wayfair, an online furniture retailer, rose over the year as consumer spending shifted to online retail, coupled with an increase on home product spending given the global stay-at-home orders. We eliminated the position from the Fund during the period.
Top detractors from relative performance during the period included Reata Pharmaceuticals (Healthcare), Enphase Energy (Information Technology), and SolarEdge Technology (Information Technology). Shares of Reata Pharmaceuticals fell over the period after the company announced that its filling of a U.S. marketing application for omaveloxolone, a treatment for Friedreich’s ataxia, would be delayed indefinitely if the U.S. Food & Drug Administration (FDA) required a second pivotal study. As of the end of the period, we continued to hold the position within the Fund. Enphase Energy, a global energy management technology company, rose over the year after management offered near-term revenue guidance that was ahead of expectations in the fourth quarter of 2020. In December 2020, S&P Global announced Enphase will be added to the S&P 500 Index,
Fund Overview – (continued)
December 31, 2020 (Unaudited)
replacing Tiffany & Co, effective January 7, 2021. As of the end of the period, the Fund did not hold a position in the stock. Shares of SolarEdge Technology rose over the year after the company consistently outperformed quarterly earnings expectations. As of the end of the period, the Fund did not hold a position in the stock.
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?
Based on our bottom-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 Communication Services sectors and most underweight to the Financials, Consumer Discretionary, and Materials sectors.
Given the performance dispersion between growth and value equities in 2020, we have continued to focus on a potential shift in market leadership to more cyclical businesses. Moving forward, we continue to examine what the world may look like during a post-coronavirus economic recovery and the trends that may result.
Broadly speaking, our focus remains on seeking to find market leading companies that are poised for success over the long term.
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 risks and volatility than large-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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 3.2 | % |
Consumer Discretionary | | | 10.1 | |
Consumer Staples | | | 2.1 | |
Energy | | | 0.1 | |
Financials | | | 10.5 | |
Health Care | | | 19.5 | |
Industrials | | | 15.5 | |
Information Technology | | | 28.6 | |
Materials | | | 1.9 | |
Real Estate | | | 5.7 | |
Utilities | | | 2.2 | |
| | | | |
Total | | | 99.4 | % |
| | | | |
Short-Term Investments | | | 1.0 | |
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 Cap Growth HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 05/02/1994 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term capital appreciation. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 33.20% | | | | 16.60% | | | | 14.62% | |
Class IB | | | 32.89% | | | | 16.31% | | | | 14.33% | |
Russell 2000 Growth Index | | | 34.63% | | | | 16.36% | | | | 13.48% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.66% and 0.91%, 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 12/31/2020.
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, 2020 (Unaudited)
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
Senior 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 33.20% for the twelve-month period ended December 31, 2020, underperforming its benchmark, the Russell 2000 Growth Index, which returned 34.63%. For the same period, the Class IA shares of the Fund also underperformed the 36.91% 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, 2020. U.S. equities ended the first quarter of 2020 sharply lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market.
U.S. equities ended the second quarter of 2020 higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Risk sentiment eased at the end of the second-quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market’s rebound, and cautious economic-outlook comments from the Fed.
In the third-quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus. In September, the S&P 500 Index declined for the first time in five months. The Fed
signaled its expectation to hold interest rates near zero until inflation is on track to moderately exceed 2%.
During the fourth-quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third quarter 2020 earnings, economic resilience, substantial monetary support from the Fed, and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the coronavirus were overshadowed by highly encouraging vaccine developments. In December 2020, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion, and the Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president, removing a key element of uncertainty for the market. Third-quarter 2020 earnings results for companies in the S&P 500 Index were significantly better than expected.
Returns varied by market-capitalization during the period, as large-cap equities, as measured by the S&P 500 Index, underperformed small-cap equities, as measured by the Russell 2000 Index, but outperformed mid-cap equities, as measured by the S&P MidCap 400 Index. Ten of the eleven sectors in the Russell 2000 Growth Index had positive returns during the period. The Healthcare (+49%), Information Technology (+45%), and Industrials (+36%) sectors rose the most during the period, while the Energy (-33%) sector was the only negative sector.
Security selection was the primary detractor from the Fund’s performance relative to the Russell 2000 Growth Index. Selection was weakest within the Industrials, Financials, and Real Estate sectors, but was partially offset by stronger selection within the Consumer Staples, Communication Services, and Information Technology sectors, which contributed positively to relative performance. Sector allocation, which is a result of our bottom-up security selection process, added to relative performance driven by the Fund’s lack of exposure to the Utilities sector, an underweight to the Real Estate sector, and an overweight to the Industrials sector. An overweight to the Consumer Discretionary sector and an underweight to the Healthcare sector detracted from relative performance.
The top detractors from the Fund’s performance relative to the Russell 2000 Growth Index were an underweight to Plug Power (Industrials), an out-of-benchmark position in Caleres (Consumer Discretionary), and not owning benchmark constituent Quidel (Healthcare). Plug Power is an alternative energy provider. Shares of the company rose over the period in response to the company announcing they will be expanding their hydrogen and fuel cell solutions for Walmart’s eCommerce applications.
|
| Hartford Small Cap Growth HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
In addition, Plug Power raised approximately $1 billion to execute and accelerate the first nation-wide green hydrogen network. Shares of Caleres, a footwear apparel company, fell during the period. Shares fell sharply in the first quarter of 2020 as a slowdown in retail demand throughout the U.S. in response to the coronavirus pandemic weighed on the stock price. Share prices partially recovered towards the end of the period. The company announced fiscal third quarter revenues and profits that beat expectations. We eliminated the Fund’s position in the stock during the period. Shares of Quidel rose following the U.S. Food & Drug Administration’s (FDA’s) authorization for the company’s rapid-result coronavirus tests.
Among the top contributors to relative performance during the period were an overweight position in Five9 (Information Technology), an overweight position in MyoKardia (Healthcare), and an overweight position in Cardlytics (Communication Services). Shares of Five9, a provider of cloud-based software for contact centers, ended the period higher. The stay-at-home economy as a result of the coronavirus pandemic benefited the stock price. MyoKardia shares rose during the period. The company announced in October 2020 that Bristol Myers Squibb will acquire the pharmaceutical firm for $13.1 billion. The acquisition was successfully completed in November 2020. Shares of Cardlytics, a purchase-intelligence technology company, ended the period higher. The company reported third-quarter results that beat revenue and earnings per share (EPS) consensus estimates, with declines that were not as bad as expected. Financial institution monthly active users grew 26%. Several sell-side analysts subsequently raised their price targets, pushing shares higher 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?
We are keeping an eye on the Georgia runoff elections for the Senate, waiting to see whether control of the Senate will flip to the Democrats. Depending on the outcome, we will consider various policy implications from that event, including if there is alignment of majorities for both legislative houses and the presidency.
It is encouraging that vaccinations have begun even if the pace of the initial rollout has been disappointing relative to earlier expectations. Despite worries about different strains, we remain optimistic so far about the potential for putting the pandemic behind us this year. Given the efficacy of the various vaccines, we are mindful that there still may be some lasting lifestyle changes. Despite that, we expect unemployment rates to come down in 2021 as a recovery takes hold, especially in some of the hardest-hit industries.
We remain cautious and mindful of pockets of extreme speculation and valuations that are hard to justify. On the positive side, we believe the combination of a high savings rate, stimulus payments, and rehiring more recently implies a very healthy consumer when the economic recovery takes shape.
As always, we continue to focus on the long term. While we did make some changes to the portfolio holdings in the Fund during the period, we continue to be incremental and mindful of the impact of volatility.
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 Utilities, Healthcare, 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 risks and volatility than large-cap securities. •Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. •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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | |
Communication Services | | | 1.8 | % |
Consumer Discretionary | | | 14.0 | |
Consumer Staples | | | 3.6 | |
Financials | | | 5.4 | |
Health Care | | | 33.5 | |
Industrials | | | 14.3 | |
Information Technology | | | 21.7 | |
Materials | | | 2.1 | |
Real Estate | | | 3.1 | |
| | | | |
Total | | | 99.5 | % |
| | | | |
Short-Term Investments | | | 0.8 | |
Other Assets & Liabilities | | | (0.3 | ) |
| | | | |
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, 2020 (Unaudited)
| | |
Inception 08/09/1996 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 55.52% | | | | 21.35% | | | | 15.35% | |
Class IB | | | 55.03% | | | | 21.04% | | | | 15.06% | |
Russell 2000 Growth Index | | | 34.63% | | | | 16.36% | | | | 13.48% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 0.79% and 1.04%, 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 12/31/2020.
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, 2020 (Unaudited)
Steven C. Angeli, CFA
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
John V. Schneider, CFA
Managing Director and Equity Research Analyst
Wellington Management Company LLP
Ranjit Ramachandran, 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 Company HLS Fund returned 55.52% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmark, the Russell 2000 Growth Index which returned 34.63% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 36.91% 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, 2020. During the first quarter of 2020, U.S. equities fell sharply after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. During the second quarter of 2020, U.S. equities rallied to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020.
In the third quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus.
During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third-quarter 2020 earnings, economic resilience, substantial monetary support from the Fed, and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the coronavirus were overshadowed by highly encouraging vaccine developments. Joe Biden was elected president, removing a key element of uncertainty for the market.
Returns during the period varied by market capitalization. Small-cap equities, as measured by the Russell 2000 Index, outperformed mid-cap
and large-cap equities, as measured by the S&P MidCap 400 Index and S&P 500 Index, respectively. Ten of the eleven sectors within the Russell 2000 Growth Index posted positive returns during the period, with the Healthcare (+49%), Information Technology (+45%), and Industrials (+36%) sectors leading the way. The Energy sector was the lone negative sector during the period, returning -33%.
Stock selection was the main driver of the Fund’s outperformance relative to the Russell 2000 Growth Index, primarily due to selection within the Healthcare, Information Technology, and Communication Services sectors. This was partially offset by weaker selection in the Materials and Industrials sectors, which detracted from performance. Sector allocation, which is the result of bottom-up stock selection, also contributed positively to relative returns, primarily due to positioning in the Industrials sector. This was partially offset by an overweight allocation to the Financials sector, which detracted from performance.
Top contributors to relative performance during the period included Livongo Health (Healthcare), Chegg (Consumer Discretionary), and DraftKings (Consumer Discretionary). The share price of Livongo Health rose after management announced a merger agreement with Teledoc Health, which has positioned the company as a leader in comprehensive virtual care during a time of unprecedented demand. We exited the Fund’s position during the period as the combined entity’s market-cap had exited the small-cap territory. The share price of Chegg rose over the period after reporting strong results that surpassed expectations. The online textbook rental and learning services company saw a sharp increase in subscriptions over the year as institutions moved to online learning in response to the coronavirus pandemic. As of the end of the period, we continued to hold an overweight position in the company in the Fund. The share price of DraftKings, an online entertainment service including e-casino games, rose sharply in the period after shares began trading in April 2020. Sentiment was strong during the period as the online sports betting industry is set to overcome key regulatory hurdles in 2021.
Top detractors from performance relative to the Russell 2000 Growth Index during the period included Curtiss-Wright (Industrials), Plug Power (Industrials), and Marriott Vacations (Consumer Discretionary). Shares of Curtiss-Wright fell as the impact from the coronavirus pandemic reduced the company’s visibility, despite releasing a solid set of results. The market’s de-rating on commercial aerospace and defense budget concerns remained challenging through the period. We increased the Fund’s position at attractive valuations and remain overweight as of the end of the period. Shares of Plug Power, an alternative energy technology provider, rose over the period after the company announced
|
| Hartford Small Company HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
it will be expanding its hydrogen and fuel cell solutions for Walmart’s eCommerce applications. In addition, Plug Power raised approximately $1 billion to execute and accelerate the first nation-wide green hydrogen network. We initiated a position in the Fund late in the period but were underweight for most of 2020. Shares of Marriott Vacations fell early in the year after management reported fourth quarter 2019 revenue that was below expectations and meaningfully reduced full-year guidance as the pandemic’s global spread meaningfully weighed on hotel, leisure, and travel companies due to a sharp decrease in demand for their services. We exited the Fund’s position to fund better opportunities.
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, we are seeking to maintain a good degree of balance, and not be overly reliant on any one scenario to play out. As the recovery continues to take shape, we have incrementally increased the Fund’s exposure to more cyclically-exposed companies that we believe stand to benefit as the economy re-opens.
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 Healthcare, Consumer Staples, and Real Estate 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 risks and volatility than large-cap securities. •Different investment styles may go in and out favor, which may cause the Fund to underperform the broader stock market. •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.
Composition by Sector(1)
as of 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 2.8 | % |
Consumer Discretionary | | | 17.9 | |
Consumer Staples | | | 0.8 | |
Financials | | | 6.3 | |
Health Care | | | 29.5 | |
Industrials | | | 13.7 | |
Information Technology | | | 24.4 | |
Materials | | | 1.0 | |
Real Estate | | | 1.8 | |
| | | | |
Total | | | 98.2 | % |
| | | | |
Short-Term Investments | | | 2.6 | |
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. |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 08/31/1977 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks long-term growth of capital. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 12.08% | | | | 13.58% | | | | 12.46% | |
Class IB | | | 11.79% | | | | 13.30% | | | | 12.18% | |
Russell 1000 Index | | | 20.96% | | | | 15.60% | | | | 14.01% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
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 12/31/2020.
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, 2020 (Unaudited)
Donald J. Kilbride
Senior Managing Director and Equity Portfolio Manager
Wellington Management Company LLP
Peter C. Fisher
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 12.08% for the twelve-month period ended December 31, 2020, underperforming the Fund’s benchmark, the Russell 1000 Index, which returned 20.96% for the same period. For the same period, the Class IA shares of the Fund also underperformed the 17.29% average return of the Lipper Large-Cap Core Funds peer group, a group of funds with investment strategies similar to those of the Fund.
Why did the Fund perform this way?
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, 2020. U.S. equities ended the first quarter of 2020 sharply lower after achieving record highs in February 2020, as the coronavirus spread rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500 Index suffered its fastest-ever decline into a bear market.
U.S. equities ended the second quarter of 2020 higher after an extraordinary rally drove U.S. equities to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market’s rebound in the second quarter of 2020. Risk sentiment eased at the end of the second quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market’s rebound, and cautious comments from the Fed regarding the economic outlook.
In the third quarter of 2020, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for coronavirus vaccines. The U.S. economy gradually recovered during the third quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in coronavirus infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus. In September, the S&P 500 Index declined for the first time in five months. The Fed signaled its expectation to hold interest rates near zero until inflation is on track to moderately exceed 2%.
During the fourth quarter of 2020, U.S. equities rallied, bolstered by better-than-expected third quarter earnings, economic resilience,
substantial monetary support from the Fed, and optimism that vaccines would support a broad reopening of the U.S. economy in 2021. A sharp escalation in coronavirus infections across the country and renewed restrictions to curb the spread of the virus were overshadowed by highly encouraging vaccine developments. In December 2020, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion, and the Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president, removing a key element of uncertainty for the market. Third-quarter earnings results for companies in the S&P 500 Index were significantly better than expected.
Returns varied by market capitalization during the period, as small-cap equities, as measured by the Russell 2000 Index, outperformed both large- and mid-cap equities, as measured by the S&P 500 Index and S&P MidCap 400 Index, respectively. During the twelve-month period, eight of the eleven sectors within the Russell 1000 Index rose, led by the Consumer Discretionary (+48%) and Information Technology (+47%) sectors. Conversely, the Energy (-33%), Real Estate (-5%), and Financials (-2%) sectors lagged.
The Fund’s underperformance versus the Russell 1000 Index was primarily driven by sector allocation, a residual of the bottom-up stock selection process, due primarily to an underweight allocation to the Information Technology sector and an overweight to the Consumer Staples sector. Security selection also detracted from relative performance. Weak selection within the Consumer Discretionary, Information Technology, and Healthcare sectors was partially offset by stronger selection within the Financials, Real Estate, and Consumer Staples sectors, which contributed positively to relative performance.
Not holding Apple (Information Technology), Tesla (Consumer Discretionary), and Amazon (Consumer Discretionary), along with the Fund’s positions in General Dynamics (Industrials) and Northrop Grumman (Industrials), were among the top detractors from relative performance during the period. The aerospace segment of diversified defense company, General Dynamics, faced challenges early in the year as travel restrictions and supply chain issues impacted deliveries at Gulfstream, where eleven business jet deliveries were delayed in the first quarter of 2020 and management cut projected deliveries from 150 planes to 125–130 planes. Sales in the third quarter of 2020 fell 3% year-over-year and expectations for fewer deliveries continued as softer market demand prevented higher production rates. Shares of Northrop Grumman, a U.S.-based aerospace and defense company, slid after first-quarter results missed consensus estimates. Margin compression in Aeronautics and Defense Systems along with negative returns on marketable securities held in employee benefit plans weighed on performance. Management cut guidance for 2020, accounting for challenges stemming from the coronavirus pandemic. The company
Fund Overview – (continued)
December 31, 2020 (Unaudited)
began to recover in the second half of 2020 as revenue growth returned and operating margins improved.
Top contributors to the Fund’s performance relative to the Russell 1000 Index during the period included Deere (Industrials), Danaher (Healthcare), and United Parcel Services (Industrials). Shares of Deere rose after the company announced strong third-quarter results, exceeding expectations. The agricultural machinery giant increased its sales outlook for the year as demand remained resilient despite the uncertainty related to the coronavirus pandemic. The company also announced the completion of the acquisition of Unimil, a leading Brazilian company in the aftermarket service parts business. Results for the fourth quarter of 2020 were strong as well, with operating margins increasing over the prior-year period. Management revised net income guidance upward for fiscal year 2021. Shares of Danaher, a manufacturer of scientific instruments and consumables, gained on earnings that beat consensus estimates throughout the year, driven by coronavirus-related demand. Operations at Cepheid and Cytiva boosted revenue in the second quarter of 2020, with Cytiva achieving organic revenue growth of 20%. In the third quarter of 2020, Cepheid’s core growth doubled year-over-year as it shipped seven million coronavirus test kits. UPS reported second- and third-quarter earnings well ahead of consensus estimates as the pandemic accelerated the broader shift to e-commerce sales for retailers. In the third quarter of 2020, international sales grew 17% on outbound Asia demand and higher cross-border shipments in Europe, while U.S. domestic package revenue rose 15% as solid business-to-consumer (B2C) package growth offset lower commercial business-to-business (B2B) deliveries.
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 data seems to support further market strength, but we believe this may not be the case. We believe there is dysfunction in Washington D.C., massive global debt, rising geopolitical risk, and a pandemic that will likely damage capacity for years to come. As such, we continue to seek to manage downside risk in the Fund. We think “upside” is a long-term concept and, therefore, more challenging to know. We believe “downside” is a short-term concept and, thus, more predictable. We tend to “think down” more than we “think up” because we believe that, over the long term, economies grow, markets go up and good companies get more valuable.
At the end of the period, the Fund’s largest overweights were in the Healthcare, Industrials, and Consumer Staples sectors, while the Fund’s largest underweights were in the Communication Services and Information Technology sectors, relative to the Russell 1000 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. • 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 12/31/2020
| | | | |
| Sector | | Percentage of
Net Assets | |
Equity Securities | | | | |
Communication Services | | | 1.9 | % |
Consumer Discretionary | | | 12.9 | |
Consumer Staples | | | 15.9 | |
Financials | | | 9.8 | |
Health Care | | | 19.8 | |
Industrials | | | 20.2 | |
Information Technology | | | 9.4 | |
Materials | | | 5.2 | |
Real Estate | | | 3.3 | |
| | | | |
Total | | | 98.4 | % |
| | | | |
Short-Term Investments | | | 1.4 | |
Other Assets & Liabilities | | | 0.2 | |
| | | | |
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, 2020 (Unaudited)
| | |
Inception 08/31/1977 Sub-advised by Wellington Management Company LLP | | Investment objective – The Fund seeks a competitive total return, with income as a secondary objective. |
The chart above represents the hypothetical growth of a $10,000 investment in Class IA shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | 10 Years | |
Class IA | | | 9.03% | | | | 5.63% | | | | 4.62% | |
Class IB | | | 8.71% | | | | 5.35% | | | | 4.36% | |
Bloomberg Barclays U.S. Aggregate Bond Index | | | 7.51% | | | | 4.44% | | | | 3.84% | |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
Performance information prior to 03/05/2012 represents performance of the Fund’s previous sub-adviser, Hartford Investment Management Company (“HIMCO”). As of 03/05/2012, HIMCO no longer served as the sub-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 12/31/2020.
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, 2020 (Unaudited)
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 9.03% for the twelve-month period ended December 31, 2020, outperforming the Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 7.51% for the same period. For the same period, the Class IA shares of the Fund also outperformed the 8.11% 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?
Most global fixed income sectors generated positive returns during the year. Sovereign yields declined sharply, particularly in the earlier part of 2020 at the onset of the coronavirus pandemic. Credit spreads widened in March 2020 over expectations that the decline in economic activity and supply chain disruptions would cause credit fundamentals to deteriorate. They later recouped most of their widening, helped by central bank policies, support from fiscal policy, and ultimately by encouraging vaccine developments. Through the rest of the year, equity market volatility remained elevated as markets oscillated between the negative effects of coronavirus containment measures and support provided by monetary and fiscal policy.
Global gross domestic product (GDP) releases indicated deep recessions in the second quarter of 2020 following various restrictions to business activity to combat the spread of the virus. By the end of the period, global GDP sharply rebounded as economies emerged from lockdowns and labor data showed signs of improvement. At the same time, front-end yields remained anchored with the prospect of continued accommodative central bank policy while long-end yields rose with the prospect of additional fiscal stimulus.
Global central banks maintained highly accommodative policy stances during the period. The Federal Reserve (Fed) provided additional assurance that asset buying would continue for the foreseeable future. The European Central Bank (ECB) extended its pandemic emergency purchase program through at least March 2022. The U.S. dollar weakened versus most currencies for the period.
Absolute returns were positive for most fixed-income sectors over the period, against a backdrop of accommodative central bank policies. On an excess return basis, lowest-rated sectors were among the worst performers, as were select sectors such as emerging market debt (EMD).
The primary driver of the Fund’s outperformance versus the Bloomberg Barclays U.S. Aggregate Bond Index was positioning within corporate credit as spreads compressed and recovered much of their widening from the beginning of the year. Positioning within investment-grade credit, particularly in the Industrials sector, was the main contributor to relative outperformance. The Fund’s allocation to higher-yielding credit, which was outside of the benchmark, was also beneficial for relative results. Select exposure within EMD contributed positively to performance as spreads tightened relative to their widest point earlier in the year.
The Fund’s allocation to structured finance sectors detracted from results overall as positive effects from positioning within agency mortgage-backed securities (MBS) and collateralized loan obligations (CLOs) were more than offset by negative effects from exposure to commercial mortgage-backed securities (CMBS). The CMBS sector has recovered more slowly from its selloff in March and April 2020 compared to other fixed income sectors due to the coronavirus pandemic as the outlook for office and retail space remained more uncertain. Positioning in non-agency residential mortgage-backed securities (RMBS) was also a drag on relative results.
The Fund implemented tactical duration and yield curve positions during the period, which had a negative overall impact on relative performance. 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.
During the period, the Fund used Treasury futures, swaps, and options to manage duration and yield curve positioning, which overall contributed positively to relative performance. The Fund also used currency forwards, futures, and options to implement non-U.S. rate and currency positions; these derivatives had very little impact on results. 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 high yield hedges were slight detractors from performance during the period, while the investment-grade CDS positions were additive to relative results. The emerging market credit default swap index positioning also contributed positively to results over the period.
|
| Hartford Total Return Bond HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
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 moderately pro-cyclical risk posture, consistent with our expectation for economic recovery supported by fiscal and monetary stimulus and vaccine distribution, while seeking to preserve liquidity. As of the end of the period, the Fund continued to be positioned for rising inflation expectations by maintaining an allocation to TIPS. While by year-end spreads across many fixed income sectors had recouped most of their widening experienced during March 2020, there are still sectors that we believe are priced wide relative to our expectations for excess returns over a one- to three-year time horizon.
We ended the period with an underweight positioning in the Fund to investment-grade credit in favor of holding an out-of-benchmark allocation to high yield and bank loans. The Fund held an overweight to agency MBS and maintained an out-of-benchmark exposure to select non-agency RMBS. The Fund also held high-quality CLOs and senior CMBS tranches with attractive collateral. As of the end of the period, the Fund continued to hold select exposure to EMD with a tilt toward higher-yielding issuers.
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, event, and interest-rate risk. As interest rates rise, bond prices generally fall. •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 the To-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. •Investments in high-yield (“junk”) bonds involve greater risks 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. •Restricted securities may be more difficult to sell and price than other securities.
Composition by Security Type(1)
as of 12/31/2020
| | | | |
| 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 | | | 19.0 | % |
Corporate Bonds | | | 35.6 | |
Foreign Government Obligations | | | 3.6 | |
Municipal Bonds | | | 1.3 | |
Senior Floating Rate Interests | | | 3.9 | |
U.S. Government Agencies(2) | | | 38.7 | |
U.S. Government Securities | | | 20.1 | |
| | | | |
Total | | | 122.2 | % |
| | | | |
Short-Term Investments | | | 1.1 | |
Purchased Options | | | 0.0 | * |
Other Assets & Liabilities | | | (23.4 | ) |
| | | | |
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, 2020. |
|
| Hartford Ultrashort Bond HLS Fund |
Fund Overview
December 31, 2020 (Unaudited)
| | |
Inception 06/30/1980 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 shares. Returns for Class IB shares differ only to the extent that Class IA shares and Class IB shares do not have the same expenses.
Average Annual Total Returns
for the Periods Ending 12/31/2020
| | | | | | | | | | | | |
| | | 1 Year | | | 5 Years | | | Since
Inception1 | |
Class IA | | | 1.44% | | | | 1.56% | | | | 1.11% | |
Class IB | | | 1.27% | | | | 1.30% | | | | 0.86% | |
Bloomberg Barclays Short Treasury 9-12 Month Index | | | 1.69% | | | | 1.59% | | | | 1.16% | |
| 1 | On 10/21/2013, the Fund converted from a money market fund to an ultrashort bond fund. Since Inception returns are from conversion date (10/21/2013) to 12/31/2020. |
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 table and chart 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 recent month-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 12/31/2020, 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.
Total returns for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the Financial Highlights section of the reports is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles.
Prior to 10/21/2013, the Fund was managed as a money market fund. Accordingly, performance of the Fund prior to 10/21/2013 is not shown. Past performance information for when the Fund was managed as a money market fund is available upon request by calling 1-888-843-7824.
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 12/31/2020.
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, 2020 (Unaudited)
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 1.44%, for the twelve-month period ended December 31, 2020, underperforming the Fund’s benchmark, the Bloomberg Barclays Short Treasury 9-12 Month Index, which returned 1.69% for the same period. For the same period, the Class IA shares of the Fund underperformed the 3.56% 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, most global fixed-income markets generated positive total returns. Sovereign yields declined sharply, particularly in the earlier part of 2020 at the onset of the coronavirus pandemic. Credit spreads widened in March 2020 over expectations that the decline in economic activity and supply chain disruptions would cause credit fundamentals to deteriorate. They later recouped most of their widening, helped by central bank policies, support from fiscal policy, and ultimately by encouraging vaccine developments. Through the rest of the year, equity market volatility remained elevated as markets oscillated between the negative effects of coronavirus containment measures and support provided by monetary and fiscal policy.
Global gross domestic product (GDP) releases indicated deep recessions in the second quarter of 2020 following various restrictions to business activity to combat the spread of the virus. By the end of the period, global GDP sharply rebounded as economies emerged from lockdowns and labor data showed signs of improvement. At the same time, front-end yields remained anchored with the prospect of continued accommodative central bank policy while long-end yields rose with the prospect of additional fiscal stimulus.
Global central banks maintained highly accommodative policy stances during the period. The Federal Reserve (Fed) provided additional assurance that asset buying would continue for the foreseeable future. The European Central Bank (ECB) extended its pandemic emergency purchase program through at least March 2022. The U.S. dollar weakened versus most currencies for the period.
The primary detractor from the Fund’s relative performance versus the Bloomberg Barclays Short Treasury 9-12 Month Index during the period was the Fund’s duration/yield curve positioning. An underweight duration stance throughout the period had a negative impact on relative returns as front-end yields declined significantly. An out-of-benchmark allocation to investment-grade credit contributed positively to relative returns, particularly allocations to securities with issuers in the Financials and Industrials sectors. Despite spread widening in March 2020, the Fund’s investment-grade credit exposures generated positive excess returns. An allocation to consumer asset-backed securities (ABS) also benefited relative performance, as the ABS sector generated positive excess returns 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 of the end of the period, the Fund is positioned with a moderate pro-cyclical risk posture, favoring the credit and securitized sectors. Our base case expectation is for continued economic recovery, but we believe the pace of that recovery will depend on the course of the coronavirus, the effectiveness and speed of vaccine distribution, and the adequacy of fiscal stimulus to support the economy.
Democratic control of Congress increases the likelihood of additional fiscal stimulus, which is likely to put upward pressure on longer-dated Treasury yields in our view. Additionally, we believe this outcome will likely increase the probability of investment in infrastructure and the environment, and also the likelihood of regulation, particularly for the Technology sector. We believe monetary policy is likely to remain accommodative with the effective federal funds target rate near zero and the Fed continuing to buy Treasuries and agency mortgage-backed securities (MBS). In our view, the permanent closure of the Fed’s Emergency Lending facilities removes an important backstop for the corporate credit markets and increases the likelihood of volatility if adverse market shocks occur.
We continued to position the Fund with out-of-benchmark allocations to investment-grade corporates, ABS, and MBS at the end of 2020. Within investment-grade corporates, we have focused on higher-quality credits in this environment. We also favor U.S. banks, as we believe their balance sheets are less risky due to improved capital ratios and regulation. We are being selective on ABS given our cautious outlook for consumer fundamentals. Our outlook for the U.S. consumer is mixed; low interest rates and additional fiscal support will likely be supportive, but economic data indicates that the pace of the economic recovery may be slow. Within the sector, as of the end of the period, we remain focused on the traditional higher-quality ABS sectors, including auto, credit card, and equipment ABS.
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. •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. •Repurchase agreements may increase the Fund’s risk and volatility.
|
| Hartford Ultrashort Bond HLS Fund |
Fund Overview – (continued)
December 31, 2020 (Unaudited)
Composition by Security Type(1)
as of 12/31/2020
| | | | |
| Category | | Percentage of
Net Assets | |
Fixed Income Securities | | | | |
Asset & Commercial Mortgage-Backed Securities | | | 30.6 | % |
Corporate Bonds | | | 28.4 | |
Municipal Bonds | | | 0.4 | |
U.S. Government Agencies(2) | | | 2.5 | |
U.S. Government Securities | | | 11.0 | |
| | | | |
Total | | | 72.9 | % |
| | | | |
Short-Term Investments | | | 26.9 | |
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, 2020. |
Benchmark Glossary (Unaudited)
Bloomberg Barclays Government/Credit Bond Index (reflects no deduction for fees, expenses or taxes) measures the non-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 Short Treasury 9-12 Month Index (reflects no deduction for fees, expenses or taxes) includes aged U.S. Treasury bills, notes and bonds with a remaining maturity from 1 up to (but not including) 12 months. It excludes zero coupon strips.
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.
ICE BofA US 3-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 each month-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 the month-end rebalancing date.
MSCI All Country World (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.
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 2000 Growth Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 2000 Index companies with higher price-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 1000 Value Index (reflects no deduction for fees, expenses or taxes) is designed to measure the performance of those Russell 1000 Index companies with lower price-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.
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 the mid-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 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, 2020 through December 31, 2020, except as indicated below. 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 184/366 (to reflect the one-half year period).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | |
| | | Beginning
Account Value
July 1, 2020 | | | Ending
Account Value
December 31, 2020 | | | Expenses paid
during the period
July 1, 2020
through
December 31, 2020 | | | Beginning
Account Value
July 1, 2020 | | | Ending
Account Value
December 31, 2020 | | | Expenses paid
during the period
July 1, 2020
through
December 31, 2020 | | | Annualized
expense
ratio | |
Hartford Balanced HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
Class IA | | $ | 1,000.00 | | | $ | 1,148.40 | | | $ | 3.46 | | | $ | 1,000.00 | | | $ | 1,021.92 | | | $ | 3.25 | | | | 0.64 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,147.00 | | | $ | 4.80 | | | $ | 1,000.00 | | | $ | 1,020.66 | | | $ | 4.52 | | | | 0.89 | % |
|
Hartford Capital Appreciation HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,263.00 | | | $ | 3.87 | | | $ | 1,000.00 | | | $ | 1,021.72 | | | $ | 3.46 | | | | 0.68 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,261.40 | | | $ | 5.29 | | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.72 | | | | 0.93 | % |
Class IC | | $ | 1,000.00 | | | $ | 1,259.70 | | | $ | 6.70 | | | $ | 1,000.00 | | | $ | 1,019.20 | | | $ | 5.99 | | | | 1.18 | % |
|
Hartford Disciplined Equity HLS Fund(1) | |
Class IA | | $ | 1,000.00 | | | $ | 1,232.10 | | | $ | 3.53 | | | $ | 1,000.00 | | | $ | 1,021.97 | | | $ | 3.20 | | | | 0.63 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,230.90 | | | $ | 4.93 | | | $ | 1,000.00 | | | $ | 1,020.71 | | | $ | 4.47 | | | | 0.88 | % |
Class IC(2) | | $ | 1,000.00 | | | $ | 1,078.70 | | | $ | 3.22 | | | $ | 1,000.00 | | | $ | 1,019.56 | | | $ | 5.63 | | | | 1.11 | % |
|
Hartford Dividend and Growth HLS Fund(3) | |
Class IA | | $ | 1,000.00 | | | $ | 1,214.10 | | | $ | 3.78 | | | $ | 1,000.00 | | | $ | 1,021.72 | | | $ | 3.46 | | | | 0.68 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,212.50 | | | $ | 5.17 | | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.72 | | | | 0.93 | % |
|
Hartford Healthcare HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,175.40 | | | $ | 4.98 | | | $ | 1,000.00 | | | $ | 1,020.56 | | | $ | 4.62 | | | | 0.91 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,173.70 | | | $ | 6.34 | | | $ | 1,000.00 | | | $ | 1,019.31 | | | $ | 5.89 | | | | 1.16 | % |
|
Hartford International Opportunities HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,279.40 | | | $ | 4.35 | | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.86 | | | | 0.76 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,277.70 | | | $ | 5.78 | | | $ | 1,000.00 | | | $ | 1,020.06 | | | $ | 5.13 | | | | 1.01 | % |
|
Hartford MidCap HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,317.70 | | | $ | 4.08 | | | $ | 1,000.00 | | | $ | 1,021.62 | | | $ | 3.56 | | | | 0.70 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,316.10 | | | $ | 5.53 | | | $ | 1,000.00 | | | $ | 1,020.36 | | | $ | 4.82 | | | | 0.95 | % |
|
Hartford Small Cap Growth HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,398.80 | | | $ | 4.16 | | | $ | 1,000.00 | | | $ | 1,021.67 | | | $ | 3.51 | | | | 0.69 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,397.50 | | | $ | 5.73 | | | $ | 1,000.00 | | | $ | 1,020.36 | | | $ | 4.82 | | | | 0.95 | % |
Expense Examples (Unaudited) – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Return | | | Hypothetical (5% return before expenses) | |
| | | Beginning
Account Value
July 1, 2020 | | | Ending
Account Value
December 31, 2020 | | | Expenses paid
during the period
July 1, 2020
through
December 31, 2020 | | | Beginning
Account Value
July 1, 2020 | | | Ending
Account Value
December 31, 2020 | | | Expenses paid
during the period
July 1, 2020
through
December 31, 2020 | | | Annualized
expense
ratio | |
|
Hartford Small Company HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,484.70 | | | $ | 5.06 | | | $ | 1,000.00 | | | $ | 1,021.06 | | | $ | 4.12 | | | | 0.81 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,482.80 | | | $ | 6.62 | | | $ | 1,000.00 | | | $ | 1,019.81 | | | $ | 5.38 | | | | 1.06 | % |
|
Hartford Stock HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,205.00 | | | $ | 2.88 | | | $ | 1,000.00 | | | $ | 1,022.52 | | | $ | 2.64 | | | | 0.52 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,203.50 | | | $ | 4.26 | | | $ | 1,000.00 | | | $ | 1,021.27 | | | $ | 3.91 | | | | 0.77 | % |
|
Hartford Total Return Bond HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,034.20 | | | $ | 2.61 | | | $ | 1,000.00 | | | $ | 1,022.57 | | | $ | 2.59 | | | | 0.51 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,032.60 | | | $ | 3.88 | | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.86 | | | | 0.76 | % |
|
Hartford Ultrashort Bond HLS Fund | |
Class IA | | $ | 1,000.00 | | | $ | 1,001.60 | | | $ | 2.31 | | | $ | 1,000.00 | | | $ | 1,022.82 | | | $ | 2.34 | | | | 0.46 | % |
Class IB | | $ | 1,000.00 | | | $ | 1,000.90 | | | $ | 3.57 | | | $ | 1,000.00 | | | $ | 1,021.57 | | | $ | 3.61 | | | | 0.71 | % |
| (1) | Effective September 18, 2020, the management fee set forth in the investment management agreement with respect to Hartford Disciplined Equity HLS Fund is as follows: 0.6000% of the first $1 billion, 0.5500% of the next $4 billion, 0.5300% of the next $5 billion, and 0.5000% in excess of $10 billion annually of the Fund’s average daily net assets. Had this investment management fee schedule been in effect during the entire period, the annualized expense ratio would have been 0.63%, 0.88% and 1.11% for Class IA, Class IB and Class IC, respectively. The expenses paid in the actual and hypothetical examples would have been $3.53 and $3.20, $4.93 and $4.47 and $3.24 and $5.69, for Class IA, Class IB and Class IC, respectively. |
| (2) | Class IC shares commenced operations on September 18, 2020. Please note that while the Class IC shares commenced operations on September 18, 2020, the hypothetical expenses paid during the period reflect projected activity for the full six month period for purposes of comparability. This projection assumes that the annualized expense ratio was in effect during the period July 1, 2020 to December 31, 2020. |
| (3) | Effective September 18, 2020, the management fee set forth in the investment management agreement with respect to Hartford Dividend and Growth HLS Fund is as follows: 0.6900% of the first $250 million, 0.6425% of the next $250 million, 0.6325% of the next $500 million, 0.6250% of the next $1.5 billion, 0.6200% of the next $2.5 billion, 0.6150% of the next $5 billion and 0.6100% in excess of $10 billion annually of the Fund’s average daily net assets. Had this investment management fee schedule been in effect during the entire period, the annualized expense ratio would have been 0.67% and 0.92% for Class IA and Class IB, respectively. The expenses paid in the actual and hypothetical examples would have been $3.73 and $3.41 and $5.12 and $4.67, for Class IA Class IB, respectively. |
|
| Hartford Balanced HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 67.9% | |
| | | | Automobiles & Components - 1.0% | |
| | 596,401 | | | Gentex Corp. | | $ | 20,235,886 | |
| | | | | | | | |
| | | | Banks - 5.4% | |
| | 800,000 | | | Banco Santander S.A. | | | 824,581 | |
| | 1,000,591 | | | Bank of America Corp. | | | 30,327,913 | |
| | 294,094 | | | JP Morgan Chase & Co. | | | 37,370,525 | |
| | 128,968 | | | PNC Financial Services Group, Inc. | | | 19,216,232 | |
| | 465,276 | | | Truist Financial Corp. | | | 22,300,679 | |
| | | | | | | | |
| | | | | | | 110,039,930 | |
| | | | | | | | |
| | | | Capital Goods - 6.5% | |
| | 70,520 | | | Deere & Co. | | | 18,973,406 | |
| | 164,121 | | | Fortune Brands Home & Security, Inc. | | | 14,068,452 | |
| | 98,896 | | | General Dynamics Corp. | | | 14,717,703 | |
| | 341,409 | | | Johnson Controls International plc | | | 15,906,245 | |
| | 86,752 | | | L3Harris Technologies, Inc. | | | 16,397,863 | |
| | 50,661 | | | Lockheed Martin Corp. | | | 17,983,642 | |
| | 685,362 | | | nVent Electric plc | | | 15,962,081 | |
| | 269,060 | | | Raytheon Technologies Corp. | | | 19,240,481 | |
| | | | | | | | |
| | | | | | | 133,249,873 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 1.1% | |
| | 288,752 | | | Lennar Corp. Class A | | | 22,011,565 | |
| | | | | | | | |
| | | | Diversified Financials - 1.7% | |
| | 24,390 | | | BlackRock, Inc. | | | 17,598,361 | |
| | 273,048 | | | Blackstone Group, Inc. Class A | | | 17,696,241 | |
| | | | | | | | |
| | | | | | | 35,294,602 | |
| | | | | | | | |
| | | | Energy - 0.7% | |
| | 132,555 | | | Pioneer Natural Resources Co. | | | 15,096,689 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.8% | |
| | 227,136 | | | Sysco Corp. | | | 16,867,119 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.8% | |
| | 629,795 | | | Keurig Dr Pepper, Inc. | | | 20,153,440 | |
| | 290,835 | | | Mondelez International, Inc. Class A | | | 17,005,122 | |
| | | | | | | | |
| | | | | | | 37,158,562 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.1% | |
| | 81,154 | | | Anthem, Inc. | | | 26,057,738 | |
| | 81,028 | | | Becton Dickinson and Co. | | | 20,274,826 | |
| | 486,921 | | | Boston Scientific Corp.* | | | 17,504,810 | |
| | 243,422 | | | Centene Corp.* | | | 14,612,622 | |
| | 217,271 | | | Medtronic plc | | | 25,451,125 | |
| | 116,538 | | | UnitedHealth Group, Inc. | | | 40,867,546 | |
| | | | | | | | |
| | | | | | | 144,768,667 | |
| | | | | | | | |
| | | | Insurance - 3.0% | |
| | 124,242 | | | Assurant, Inc. | | | 16,924,245 | |
| | 145,527 | | | Chubb Ltd. | | | 22,399,516 | |
| | 234,048 | | | Progressive Corp. | | | 23,142,666 | |
| | | | | | | | |
| | | | | | | 62,466,427 | |
| | | | | | | | |
| | | | Materials - 2.7% | |
| | 155,605 | | | Celanese Corp. | | | 20,219,314 | |
| | 145,801 | | | FMC Corp. | | | 16,756,909 | |
| | 405,688 | | | Sealed Air Corp. | | | 18,576,453 | |
| | | | | | | | |
| | | | | | | 55,552,676 | |
| | | | | | | | |
| | | | Media & Entertainment - 7.5% | |
| | 41,059 | | | Alphabet, Inc. Class C* | | | 71,930,441 | |
| | 666,305 | | | Comcast Corp. Class A | | | 34,914,382 | |
| | 173,219 | | | Facebook, Inc. Class A* | | | 47,316,502 | |
| | | | | | | | |
| | | | | | | 154,161,325 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.3% | |
| | 302,489 | | | AstraZeneca plc ADR | | | 15,121,425 | |
| | 29,424 | | | Biogen, Inc.* | | | 7,204,761 | |
| | 147,964 | | | Eli Lilly & Co. | | | 24,982,242 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 67.9% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.3% - (continued) | |
| | 163,951 | | | Novartis AG | | $ | 15,437,280 | |
| | 820,174 | | | Pfizer, Inc. | | | 30,190,605 | |
| | 55,820 | | | Roche Holding AG | | | 19,442,020 | |
| | 75,984 | | | Vertex Pharmaceuticals, Inc.* | | | 17,958,058 | |
| | | | | | | | |
| | | | | | | 130,336,391 | |
| | | | | | | | |
| | | | Real Estate - 0.9% | |
| | 444,055 | | | Gaming and Leisure Properties, Inc. REIT | | | 18,827,932 | |
| | | | | | | | |
| | | | Retailing - 4.2% | |
| | 11,702,200 | | | Allstar Co.(1)(2)(3) | | | 13,925,618 | |
| | 8,860 | | | Booking Holdings, Inc.* | | | 19,733,612 | |
| | 98,183 | | | Home Depot, Inc. | | | 26,079,368 | |
| | 320,154 | | | TJX Cos., Inc. | | | 21,863,317 | |
| | 67,006 | | | Tory Burch LLC*(1)(2)(4) | | | 3,659,877 | |
| | | | | | | | |
| | | | | | | 85,261,792 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.9% | |
| | 131,655 | | | Analog Devices, Inc. | | | 19,449,393 | |
| | 69,626 | | | KLA Corp. | | | 18,026,868 | |
| | 299,808 | | | Micron Technology, Inc.* | | | 22,539,565 | |
| | | | | | | | |
| | | | | | | 60,015,826 | |
| | | | | | | | |
| | | | Software & Services - 9.1% | |
| | 270,399 | | | Amdocs Ltd. | | | 19,179,401 | |
| | 151,911 | | | Automatic Data Processing, Inc. | | | 26,766,718 | |
| | 122,934 | | | Fidelity National Information Services, Inc. | | | 17,390,244 | |
| | 84,180 | | | Global Payments, Inc. | | | 18,134,056 | |
| | 402,112 | | | Microsoft Corp. | | | 89,437,751 | |
| | 107,850 | | | VMware, Inc. Class A*(5) | | | 15,127,041 | |
| | | | | | | | |
| | | | | | | 186,035,211 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 2.6% | |
| | 689,149 | | | Cisco Systems, Inc. | | | 30,839,418 | |
| | 634,879 | | | Corning, Inc. | | | 22,855,644 | |
| | | | | | | | |
| | | | | | | 53,695,062 | |
| | | | | | | | |
| | | | Transportation - 1.8% | |
| | 380,369 | | | Knight-Swift Transportation Holdings, Inc. | | | 15,907,032 | |
| | 97,652 | | | Union Pacific Corp. | | | 20,333,099 | |
| | | | | | | | |
| | | | | | | 36,240,131 | |
| | | | | | | | |
| | | | Utilities - 0.8% | |
| | 388,385 | | | Exelon Corp. | | | 16,397,615 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $894,844,845) | | $ | 1,393,713,281 | |
| | | | | | | | |
|
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.2% | |
| | | | Asset-Backed - Automobile - 0.0% | |
| | | | Chesapeake Funding LLC | |
| $ | 34,175 | | | 0.61%, 05/15/2029, 1 mo. USD LIBOR + 0.450%(6)(7) | | $ | 34,174 | |
| | 767,889 | | | 0.87%, 08/16/2032(6) | | | 771,698 | |
| | 104,937 | | | 1.91%, 08/15/2029(6) | | | 105,097 | |
| | | | | | | | |
| | | | | | | 910,969 | |
| | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 1.1% | |
| | 1,634,481 | | | Ajax Mortgage Loan Trust 3.16%, 09/25/2056(6)(8) | | | 1,638,348 | |
| | | | Bayview Koitere Fund Trust | |
| | 676,709 | | | 3.50%, 07/28/2057(6)(8) | | | 700,515 | |
| | 365,469 | | | 4.00%, 11/28/2053(6)(8) | | | 380,569 | |
| | | | Bayview Opportunity Master Fund Trust | |
| | 355,660 | | | 3.50%, 01/28/2055(6)(8) | | | 364,173 | |
| | 384,855 | | | 3.50%, 06/28/2057(6)(8) | | | 397,922 | |
| | 520,314 | | | 4.00%, 10/28/2064(6)(8) | | | 541,231 | |
| | 255,000 | | | BFLD Trust 2.21%, 11/15/2028, 1 mo. USD LIBOR + 2.050%(6)(7) | | | 255,000 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.2% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 1.1% - (continued) | |
| $ | 1,139,528 | | | CF Hippolyta LLC 1.69%, 07/15/2060(6) | | $ | 1,160,741 | |
| | 1,705,000 | | | CIFC Funding Ltd. 1.27%, 04/24/2030, 3 mo. USD LIBOR + 1.050%(6)(7) | | | 1,700,633 | |
| | 1,810,000 | | | Credit Acceptance Auto Loan Trust 1.24%, 10/15/2029(6) | | | 1,830,088 | |
| | | | DB Master Finance LLC | |
| | 311,063 | | | 3.79%, 05/20/2049(6) | | | 318,758 | |
| | 276,500 | | | 4.02%, 05/20/2049(6) | | | 291,232 | |
| | 317,809 | | | GreatAmerica Leasing Receivables Funding LLC 2.83%, 06/17/2024(6) | | | 321,602 | |
| | | | Horizon Aircraft Finance Ltd. | |
| | 294,560 | | | 3.43%, 11/15/2039(6) | | | 284,623 | |
| | 234,537 | | | 3.72%, 07/15/2039(6) | | | 226,261 | |
| | 2,635,000 | | | Madison Park Funding Ltd. 0.99%, 04/15/2029, 3 mo. USD LIBOR + 0.750%(6)(7) | | | 2,611,346 | |
| | 2,690,000 | | | Magnetite VII Ltd. 1.04%, 01/15/2028, 3 mo. USD LIBOR + 0.800%(6)(7) | | | 2,668,926 | |
| | 1,615,000 | | | Magnetite XVIII Ltd. 1.72%, 11/15/2028, 3 mo. USD LIBOR + 1.500%(6)(7) | | | 1,605,922 | |
| | | | MMAF Equipment Finance LLC | |
| | 127,754 | | | 2.21%, 10/17/2022(6) | | | 128,326 | |
| | 1,000,000 | | | 2.21%, 12/15/2032(6) | | | 1,023,693 | |
| | 307,586 | | | Springleaf Funding Trust 3.48%, 05/15/2028(6) | | | 307,938 | |
| | 2,635,000 | | | Treman Park CLO Ltd. 1.29%, 10/20/2028, 3 mo. USD LIBOR + 1.070%(6)(7) | | | 2,631,791 | |
| | | | Vantage Data Centers LLC | |
| | 1,150,000 | | | 1.65%, 09/15/2045(6) | | | 1,157,881 | |
| | 335,466 | | | 3.19%, 07/15/2044(6) | | | 351,078 | |
| | | | | | | | |
| | | | | | | 22,898,597 | |
| | | | | | | | |
| | | | Commercial Mortgage-Backed Securities - 0.4% | |
| | 840,000 | | | BAMLL Commercial Mortgage Securities Trust
4.09%, 08/10/2038(6)(8) | | | 988,704 | |
| | 2,220,000 | | | CSMC Trust 2.76%, 04/05/2033(6) | | | 2,215,963 | |
| | | | FREMF Mortgage Trust | |
| | 160,000 | | | 3.51%, 11/25/2045(6)(8) | | | 167,615 | |
| | 790,000 | | | 3.54%, 02/25/2052(6)(8) | | | 868,923 | |
| | 810,000 | | | 3.65%, 10/25/2052(6)(8) | | | 896,783 | |
| | 285,000 | | | 3.68%, 01/25/2048(6)(8) | | | 309,384 | |
| | 160,000 | | | 3.70%, 04/25/2048(6)(8) | | | 174,046 | |
| | 200,000 | | | 3.78%, 10/25/2048(6)(8) | | | 219,658 | |
| | 160,000 | | | 3.88%, 02/25/2050(6)(8) | | | 172,124 | |
| | 1,015,000 | | | 4.08%, 09/25/2025(6)(8) | | | 1,122,737 | |
| | 260,000 | | | 4.16%, 04/25/2049(6)(8) | | | 291,034 | |
| | 1,000,000 | | | SFAVE Commercial Mortgage Securities Trust 4.14%, 01/05/2043(6)(8) | | | 944,824 | |
| | | | | | | | |
| | | | | | | 8,371,795 | |
| | | | | | | | |
| | | | Other Asset-Backed Securities - 0.4% | |
| | 271,940 | | | Aaset Trust 3.84%, 05/15/2039(6) | | | 256,818 | |
| | 1,067,519 | | | Aaset U.S. Ltd. 4.45%, 11/18/2038(6) | | | 1,008,506 | |
| | 1,225,000 | | | BlueMountain CLO Ltd. 1.67%, 11/20/2028, 3 mo. USD LIBOR + 1.450%(6)(7) | | | 1,214,714 | |
| | 504,226 | | | Castlelake Aircraft Securitization Trust 3.97%, 04/15/2039(6) | | | 479,515 | |
| | 927,819 | | | Hertz Fleet Lease Funding L.P. 2.70%, 01/10/2033(6) | | | 941,619 | |
| | 219,851 | | | Mach I 3.47%, 10/15/2039(6) | | | 212,386 | |
| | 214,904 | | | MAPS Ltd. 4.46%, 03/15/2044(6) | | | 204,296 | |
| | | | Mill City Mortgage Loan Trust | |
| | 123,328 | | | 2.50%, 04/25/2057(6)(8) | | | 124,586 | |
| | 492,606 | | | 2.75%, 01/25/2061(6)(8) | | | 505,309 | |
| | 122,454 | | | SoFi Consumer Loan Program Trust 3.54%, 11/26/2027(6) | | | 122,912 | |
| | | | START Ltd. | |
| | 18,136 | | | 3.54%, 11/15/2044(6) | | | 17,643 | |
| | 191,773 | | | 4.09%, 03/15/2044(6) | | | 186,562 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.2% - (continued) | |
| | | | Other Asset-Backed Securities - 0.4% - (continued) | |
| | | | Towd Point Mortgage Trust | |
| $ | 299,323 | | | 2.25%, 04/25/2056(6)(8) | | $ | 302,163 | |
| | 589,332 | | | 2.75%, 10/25/2056(6)(8) | | | 604,007 | |
| | 152,677 | | | 2.75%, 04/25/2057(6)(8) | | | 156,077 | |
| | 502,571 | | | 2.75%, 06/25/2057(6)(8) | | | 520,777 | |
| | 239,801 | | | 3.00%, 01/25/2058(6)(8) | | | 249,215 | |
| | | | | | | | |
| | | | | | | 7,107,105 | |
| | | | | | | | |
| | | | Whole Loan Collateral CMO - 0.3% | |
| | | | Angel Oak Mortgage Trust LLC | |
| | 392,160 | | | 2.62%, 11/25/2059(6)(8) | | | 397,695 | |
| | 157,224 | | | 3.63%, 03/25/2049(6)(8) | | | 160,801 | |
| | | | Deephaven Residential Mortgage Trust | |
| | 115,690 | | | 2.45%, 06/25/2047(6)(8) | | | 115,730 | |
| | 66,582 | | | 2.58%, 10/25/2047(6)(8) | | | 67,312 | |
| | 33,093 | | | 2.73%, 12/26/2046(6)(8) | | | 33,097 | |
| | 166,599 | | | 2.98%, 12/25/2057(6)(8) | | | 166,958 | |
| | 141,037 | | | 3.56%, 04/25/2059(6)(8) | | | 141,940 | |
| | 324,013 | | | Fannie Mae Connecticut Avenue Securities 6.05%, 10/25/2028, 1 mo. USD LIBOR + 5.900%(7) | | | 340,502 | |
| | 483,795 | | | MetLife Securitization Trust 3.00%, 04/25/2055(6)(8) | | | 509,508 | |
| | 644,951 | | | New Residential Mortgage Loan Trust 4.00%, 04/25/2057(6)(8) | | | 685,865 | |
| | | | Seasoned Credit Risk Transfer Trust | |
| | 689,871 | | | 3.50%, 03/25/2058 | | | 748,674 | |
| | 675,605 | | | 3.50%, 07/25/2058 | | | 734,078 | |
| | 886,117 | | | 3.50%, 10/25/2058 | | | 964,293 | |
| | 435,441 | | | Verus Securitization Trust 3.21%, 05/25/2059(6)(8) | | | 438,804 | |
| | | | | | | | |
| | | | | | | 5,505,257 | |
| | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage-Backed Securities
(cost $44,330,092) | | $ | 44,793,723 | |
| | | | | | | | |
|
| CORPORATE BONDS - 14.7% | |
| | | | Aerospace/Defense - 0.3% | |
| $ | 850,000 | | | BAE Systems Holdings, Inc. 3.85%, 12/15/2025(6) | | $ | 963,913 | |
| | 220,000 | | | BAE Systems plc 3.40%, 04/15/2030(6) | | | 249,233 | |
| | | | Boeing Co. | |
| | 911,000 | | | 3.25%, 03/01/2028 | | | 964,086 | |
| | 375,000 | | | 3.45%, 11/01/2028 | | | 402,178 | |
| | 560,000 | | | Lockheed Martin Corp. 4.85%, 09/15/2041 | | | 749,217 | |
| | | | United Technologies Corp. | |
| | 685,000 | | | 3.95%, 08/16/2025 | | | 785,635 | |
| | 1,500,000 | | | 4.13%, 11/16/2028 | | | 1,788,245 | |
| | | | | | | | |
| | | | | | | 5,902,507 | |
| | | | | | | | |
| | | | Agriculture - 0.3% | |
| | | | Altria Group, Inc. | |
| | 560,000 | | | 4.50%, 05/02/2043 | | | 641,610 | |
| | 280,000 | | | 5.80%, 02/14/2039 | | | 368,921 | |
| | 3,985,000 | | | BAT Capital Corp. 3.56%, 08/15/2027 | | | 4,437,213 | |
| | 1,065,000 | | | Imperial Brands Finance plc 3.75%, 07/21/2022(6) | | | 1,110,352 | |
| | 325,000 | | | Philip Morris International, Inc. 4.88%, 11/15/2043 | | | 435,852 | |
| | | | | | | | |
| | | | | | | 6,993,948 | |
| | | | | | | | |
| | | | Airlines - 0.2% | |
| | 2,147,733 | | | Continental Airlines, Inc. 5.98%, 10/19/2023 | | | 2,173,160 | |
| | 980,939 | | | Southwest Airlines Co. 6.15%, 02/01/2024 | | | 1,023,739 | |
| | 139,991 | | | United Airlines Class B Pass-Through Trust 4.60%, 09/01/2027 | | | 138,502 | |
| | | | | | | | |
| | | | | | | 3,335,401 | |
| | | | | | | | |
| | | | Auto Manufacturers - 0.4% | |
| | 1,440,000 | | | Daimler Finance North America LLC 2.30%, 02/12/2021(6) | | | 1,442,904 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Auto Manufacturers - 0.4% - (continued) | |
| | | | General Motors Financial Co., Inc. | |
| $ | 3,185,000 | | | 3.70%, 05/09/2023 | | $ | 3,375,830 | |
| | 1,245,000 | | | 3.95%, 04/13/2024 | | | 1,356,068 | |
| | 920,000 | | | Volkswagen Group of America Finance LLC 3.35%, 05/13/2025(6) | | | 1,011,407 | |
| | | | | | | | |
| | | | | | | 7,186,209 | |
| | | | | | | | |
| | | | Beverages - 0.2% | |
| | | | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. | | | | |
| | 310,000 | | | 4.70%, 02/01/2036 | | | 393,789 | |
| | 280,000 | | | 4.90%, 02/01/2046 | | | 364,065 | |
| | | | Anheuser-Busch InBev Worldwide, Inc. | |
| | 480,000 | | | 4.00%, 04/13/2028 | | | 565,901 | |
| | 220,000 | | | 4.38%, 04/15/2038 | | | 272,403 | |
| | 430,000 | | | 4.50%, 06/01/2050 | | | 542,772 | |
| | 535,000 | | | 4.60%, 04/15/2048 | | | 676,990 | |
| | 580,000 | | | 4.60%, 06/01/2060 | | | 744,668 | |
| | 275,000 | | | Constellation Brands, Inc. 2.88%, 05/01/2030 | | | 301,339 | |
| | | | | | | | |
| | | | | | | 3,861,927 | |
| | | | | | | | |
| | | | Biotechnology - 0.3% | |
| | | | Amgen, Inc. | |
| | 1,350,000 | | | 2.30%, 02/25/2031 | | | 1,439,898 | |
| | 895,000 | | | 2.77%, 09/01/2053(6) | | | 899,191 | |
| | 1,480,000 | | | Gilead Sciences, Inc. 2.80%, 10/01/2050 | | | 1,468,791 | |
| | 1,445,000 | | | Royalty Pharma plc 3.55%, 09/02/2050(6) | | | 1,539,576 | |
| | | | | | | | |
| | | | | | | 5,347,456 | |
| | | | | | | | |
| | | | Chemicals - 0.0% | |
| | 380,000 | | | Syngenta Finance N.V. 5.18%, 04/24/2028(6) | | | 407,424 | |
| | | | | | | | |
| | | | Commercial Banks - 4.0% | |
| | | | Banco Santander S.A. | |
| | 1,200,000 | | | 3.13%, 02/23/2023 | | | 1,263,474 | |
| | 600,000 | | | 3.85%, 04/12/2023 | | | 644,471 | |
| | | | Bank of America Corp. | |
| | 1,799,000 | | | 3.42%, 12/20/2028, (3.42% fixed rate until 12/20/2027; 3 mo. USD LIBOR + 1.040% thereafter)(9) | | | 2,032,050 | |
| | 1,610,000 | | | 3.59%, 07/21/2028, (3.59% fixed rate until 07/21/2027; 3 mo. USD LIBOR + 1.370% thereafter)(9) | | | 1,828,993 | |
| | 4,225,000 | | | 4.20%, 08/26/2024 | | | 4,729,807 | |
| | 2,380,000 | | | Bank of Nova Scotia 2.70%, 08/03/2026 | | | 2,624,063 | |
| | | | Barclays plc | |
| | 2,740,000 | | | 3.20%, 08/10/2021 | | | 2,785,181 | |
| | 1,000,000 | | | 3.93%, 05/07/2025, (3.93% fixed rate until 05/07/2024; 3 mo. USD LIBOR + 1.610% thereafter)(9) | | | 1,093,995 | |
| | 1,320,000 | | | 4.34%, 01/10/2028 | | | 1,516,400 | |
| | | | 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)(6)(9) | | | 884,716 | |
| | 1,000,000 | | | 3.38%, 01/09/2025(6) | | | 1,094,348 | |
| | | | BPCE S.A. | |
| | 2,225,000 | | | 5.15%, 07/21/2024(6) | | | 2,533,690 | |
| | 3,625,000 | | | 5.70%, 10/22/2023(6) | | | 4,102,914 | |
| | 1,875,000 | | | Capital One Financial Corp. 3.75%, 04/24/2024 | | | 2,053,207 | |
| | 1,695,000 | | | Citizens Bank NA 2.55%, 05/13/2021 | | | 1,705,467 | |
| | | | Credit Agricole S.A. | |
| | 1,025,000 | | | 3.25%, 10/04/2024(6) | | | 1,111,897 | |
| | 535,000 | | | 3.75%, 04/24/2023(6) | | | 574,311 | |
| | 790,000 | | | 4.38%, 03/17/2025(6) | | | 886,669 | |
| | | | Credit Suisse Group AG | |
| | 530,000 | | | 3.57%, 01/09/2023(6) | | | 546,063 | |
| | 250,000 | | | 3.63%, 09/09/2024 | | | 277,402 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Commercial Banks - 4.0% - (continued) | |
| | | | Credit Suisse Group Funding Guernsey Ltd. | |
| $ | 1,425,000 | | | 3.75%, 03/26/2025 | | $ | 1,582,049 | |
| | 1,885,000 | | | 3.80%, 09/15/2022 | | | 1,990,918 | |
| | | | Danske Bank A/S | |
| | 1,865,000 | | | 1.62%, 09/11/2026, (1.62% fixed rate until 09/11/2025; 12 mo. USD CMT + 1.350% thereafter)(6)(9) | | | 1,873,420 | |
| | 775,000 | | | 3.88%, 09/12/2023(6) | | | 835,081 | |
| | 440,000 | | | 5.00%, 01/12/2022(6) | | | 459,342 | |
| | 575,000 | | | 5.38%, 01/12/2024(6) | | | 648,692 | |
| | 785,000 | | | Deutsche Bank AG 4.25%, 10/14/2021 | | | 804,960 | |
| | 825,000 | | | Fifth Third Bancorp 2.55%, 05/05/2027 | | | 897,860 | |
| | | | Goldman Sachs Group, Inc. | |
| | 510,000 | | | 3.80%, 03/15/2030 | | | 600,096 | |
| | 1,150,000 | | | 6.25%, 02/01/2041 | | | 1,801,092 | |
| | | | HSBC Holdings plc | |
| | 2,085,000 | | | 1.59%, 05/24/2027, (1.59% fixed rate until 05/24/2026; 3 mo. USD SOFR + 1.290% thereafter)(9) | | | 2,120,272 | |
| | 2,625,000 | | | 3.60%, 05/25/2023 | | | 2,823,482 | |
| | | | ING Groep N.V. | |
| | 345,000 | | | 3.15%, 03/29/2022 | | | 356,795 | |
| | 1,100,000 | | | 3.95%, 03/29/2027 | | | 1,272,460 | |
| | | | JP Morgan Chase & Co. | |
| | 620,000 | | | 2.52%, 04/22/2031, (2.52% fixed rate until 04/22/2030; 3 mo. USD SOFR + 2.040% thereafter)(9) | | | 666,414 | |
| | 390,000 | | | 3.11%, 04/22/2041, (3.11% fixed rate until 04/22/2040; 3 mo. USD SOFR + 2.460% thereafter)(9) | | | 435,929 | |
| | 2,240,000 | | | 3.25%, 09/23/2022 | | | 2,355,830 | |
| | 705,000 | | | 3.70%, 05/06/2030, (3.70% fixed rate until 05/06/2029; 3 mo. USD LIBOR + 1.160% thereafter)(9) | | | 817,825 | |
| | 2,775,000 | | | 4.45%, 12/05/2029, (4.45% fixed rate until 12/05/2028; 3 mo. USD LIBOR + 1.330% thereafter)(9) | | | 3,385,790 | |
| | 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)(6)(9) | | | 1,611,758 | |
| | | | Morgan Stanley | |
| | 1,450,000 | | | 3.13%, 07/27/2026 | | | 1,620,761 | |
| | 1,095,000 | | | 3.63%, 01/20/2027 | | | 1,254,011 | |
| | 1,000,000 | | | 3.70%, 10/23/2024 | | | 1,112,798 | |
| | 1,410,000 | | | National Australia Bank Ltd. 2.33%, 08/21/2030(6) | | | 1,433,445 | |
| | 4,905,000 | | | NBK SPC Ltd. 2.75%, 05/30/2022(6) | | | 5,032,089 | |
| | 1,755,000 | | | Santander Holdings USA, Inc. 3.40%, 01/18/2023 | | | 1,843,420 | |
| | 1,660,000 | | | Truist Financial Corp. 3.20%, 09/03/2021 | | | 1,688,848 | |
| | 1,900,000 | | | UBS Group AG 3.00%, 04/15/2021(6) | | | 1,914,671 | |
| | 4,344,000 | | | Wells Fargo & Co. 4.48%, 01/16/2024 | | | 4,831,394 | |
| | | | | | | | |
| | | | | | | 82,360,620 | |
| | | | | | | | |
| | | | Commercial Services - 0.2% | |
| | | | CommonSpirit Health | |
| | 1,854,000 | | | 2.95%, 11/01/2022 | | | 1,936,408 | |
| | 245,000 | | | 4.35%, 11/01/2042 | | | 287,069 | |
| | 1,045,000 | | | ERAC USA Finance LLC 5.63%, 03/15/2042(6) | | | 1,467,478 | |
| | | | | | | | |
| | | | | | | 3,690,955 | |
| | | | | | | | |
| | | | Construction Materials - 0.1% | |
| | 972,000 | | | Carrier Global Corp. 2.72%, 02/15/2030 | | | 1,039,470 | |
| | 996,000 | | | Johnson Controls International plc 4.95%, 07/02/2064 | | | 1,367,286 | |
| | | | | | | | |
| | | | | | | 2,406,756 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Diversified Financial Services - 0.4% | |
| $ | 2,440,000 | | | Charles Schwab Corp. 4.00%, 12/01/2030, (4.00% fixed rate until 12/01/2030; 10 year USD CMT + 3.079% thereafter)(9)(10) | | $ | 2,568,100 | |
| | 2,125,000 | | | Intercontinental Exchange, Inc. 1.85%, 09/15/2032 | | | 2,141,511 | |
| | 2,886,199 | | | Postal Square L.P. 8.95%, 06/15/2022 | | | 3,114,477 | |
| | 1,220,000 | | | Societe Generale S.A. 3.25%, 01/12/2022(6) | | | 1,253,382 | |
| | | | | | | | |
| | | | | | | 9,077,470 | |
| | | | | | | | |
| | | | Electric - 1.2% | |
| | | | Cleco Corporate Holdings LLC | |
| | 650,000 | | | 3.38%, 09/15/2029 | | | 667,579 | |
| | 2,000,000 | | | 3.74%, 05/01/2026 | | | 2,213,391 | |
| | 555,000 | | | 4.97%, 05/01/2046 | | | 649,486 | |
| | 1,960,000 | | | Cleveland Electric Illuminating Co. 3.50%, 04/01/2028(6) | | | 2,084,637 | |
| | 360,000 | | | Dominion Energy South Carolina, Inc. 6.63%, 02/01/2032 | | | 520,186 | |
| | 1,200,000 | | | Duke Energy Carolinas LLC 6.10%, 06/01/2037 | | | 1,776,933 | |
| | 370,000 | | | Evergy Metro, Inc. 2.25%, 06/01/2030 | | | 392,003 | |
| | 2,405,000 | | | Fortis, Inc. 3.06%, 10/04/2026 | | | 2,647,136 | |
| | 245,000 | | | Georgia Power Co. 4.75%, 09/01/2040 | | | 321,802 | |
| | 1,275,000 | | | Indianapolis Power and Light Co.(AMBAC Insured)
6.60%, 06/01/2037(5)(6) | | | 1,877,772 | |
| | 315,000 | | | Infraestructura Energetica Nova S.A.B. de C.V.
4.88%, 01/14/2048(6) | | | 350,831 | |
| | 1,445,000 | | | ITC Holdings Corp. 2.95%, 05/14/2030(6) | | | 1,579,427 | |
| | 1,285,000 | | | Metropolitan Edison Co. 4.30%, 01/15/2029(6) | | | 1,454,314 | |
| | 506,000 | | | Mid-Atlantic Interstate Transmission LLC 4.10%, 05/15/2028(6) | | | 565,795 | |
| | | | Niagara Mohawk Power Corp. | |
| | 370,000 | | | 3.03%, 06/27/2050(6) | | | 391,260 | |
| | 645,000 | | | 4.28%, 12/15/2028(6) | | | 768,512 | |
| | | | Oglethorpe Power Corp. | |
| | 410,000 | | | 3.75%, 08/01/2050(6) | | | 440,592 | |
| | 945,000 | | | 5.25%, 09/01/2050 | | | 1,168,685 | |
| | 165,000 | | | PacifiCorp 4.13%, 01/15/2049 | | | 212,147 | |
| | | | San Diego Gas & Electric Co. | |
| | 2,715,000 | | | 1.70%, 10/01/2030 | | | 2,746,037 | |
| | 90,000 | | | 3.75%, 06/01/2047 | | | 105,360 | |
| | 364,000 | | | 4.10%, 06/15/2049 | | | 453,951 | |
| | 25,000 | | | 4.15%, 05/15/2048 | | | 31,438 | |
| | | | Southern Co. | |
| | 1,050,000 | | | 2.95%, 07/01/2023 | | | 1,111,912 | |
| | 385,000 | | | 4.40%, 07/01/2046 | | | 484,291 | |
| | 350,000 | | | Tucson Electric Power Co. 4.00%, 06/15/2050 | | | 427,670 | |
| | | | | | | | |
| | | | | | | 25,443,147 | |
| | | | | | | | |
| | | | Electronics - 0.1% | |
| | 1,270,000 | | | Fortive Corp. 4.30%, 06/15/2046 | | | 1,564,685 | |
| | | | | | | | |
| | | | Environmental Control - 0.1% | |
| | 1,480,000 | | | Republic Services, Inc. 2.30%, 03/01/2030 | | | 1,563,787 | |
| | | | | | | | |
| | | | Food - 0.3% | |
| | | | Conagra Brands, Inc. | |
| | 900,000 | | | 1.38%, 11/01/2027 | | | 908,307 | |
| | 455,000 | | | 4.60%, 11/01/2025 | | | 535,959 | |
| | 1,255,000 | | | Danone S.A. 2.95%, 11/02/2026(6) | | | 1,378,742 | |
| | | | Kroger Co. | |
| | 1,065,000 | | | 4.00%, 02/01/2024 | | | 1,170,080 | |
| | 465,000 | | | 4.45%, 02/01/2047 | | | 585,188 | |
| | 410,000 | | | 5.40%, 01/15/2049 | | | 594,305 | |
| | 285,000 | | | McCormick & Co., Inc. 2.50%, 04/15/2030 | | | 305,192 | |
| | 480,000 | | | Sigma Alimentos S.A. de C.V. 4.13%, 05/02/2026(6) | | | 529,267 | |
| | | | | | | | |
| | | | | | | 6,007,040 | |
| | | | | | | | |
| | | | Gas - 0.1% | |
| | 330,000 | | | Boston Gas Co. 3.15%, 08/01/2027(6) | | | 366,375 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Gas - 0.1% - (continued) | |
| $ | 1,870,000 | | | KeySpan Gas East Corp. 2.74%, 08/15/2026(6) | | $ | 2,053,721 | |
| | | | | | | | |
| | | | | | | 2,420,096 | |
| | | | | | | | |
| | | | Healthcare - Products - 0.3% | |
| | 2,725,000 | | | Alcon Finance Corp. 3.00%, 09/23/2029(6) | | | 2,974,044 | |
| | | | Boston Scientific Corp. | |
| | 1,530,000 | | | 2.65%, 06/01/2030 | | | 1,638,787 | |
| | 135,000 | | | 4.00%, 03/01/2029 | | | 159,099 | |
| | 835,000 | | | Zimmer Biomet Holdings, Inc. 3.05%, 01/15/2026 | | | 920,700 | |
| | | | | | | | |
| | | | | | | 5,692,630 | |
| | | | | | | | |
| | | | Healthcare - Services - 0.7% | |
| | 1,510,000 | | | Anthem, Inc. 2.25%, 05/15/2030 | | | 1,603,964 | |
| | 475,000 | | | Children’s Hospital 2.93%, 07/15/2050 | | | 475,700 | |
| | | | CommonSpirit Health | |
| | 295,000 | | | 1.55%, 10/01/2025 | | | 303,018 | |
| | 325,000 | | | 2.78%, 10/01/2030 | | | 344,089 | |
| | 125,000 | | | 4.19%, 10/01/2049 | | | 145,503 | |
| | 590,000 | | | 4.20%, 08/01/2023 | | | 637,589 | |
| | 280,000 | | | Cottage Health Obligated Group 3.30%, 11/01/2049 | | | 315,462 | |
| | | | Dignity Health | |
| | 714,000 | | | 3.81%, 11/01/2024 | | | 777,539 | |
| | 1,353,000 | | | 4.50%, 11/01/2042(5) | | | 1,518,073 | |
| | 425,000 | | | HCA, Inc. 5.25%, 06/15/2049 | | | 561,338 | |
| | 420,000 | | | Memorial Sloan-Kettering Cancer Center 2.96%, 01/01/2050 | | | 446,915 | |
| | | | Mercy Health | |
| | 1,400,000 | | | 3.56%, 08/01/2027 | | | 1,548,017 | |
| | 1,210,000 | | | 4.30%, 07/01/2028 | | | 1,386,318 | |
| | 430,000 | | | PeaceHealth Obligated Group 1.38%, 11/15/2025 | | | 438,891 | |
| | | | Sutter Health | |
| | 265,000 | | | 1.32%, 08/15/2025 | | | 269,464 | |
| | 615,000 | | | 2.29%, 08/15/2030 | | | 639,466 | |
| | | | Toledo Hospital (AGM Insured) | |
| | 900,000 | | | 5.33%, 11/15/2028 | | | 1,061,077 | |
| | 330,000 | | | 5.75%, 11/15/2038 | | | 395,601 | |
| | | | UnitedHealth Group, Inc. | |
| | 355,000 | | | 2.00%, 05/15/2030 | | | 376,544 | |
| | 125,000 | | | 2.90%, 05/15/2050 | | | 138,394 | |
| | 1,440,000 | | | 3.75%, 07/15/2025 | | | 1,640,644 | |
| | | | | | | | |
| | | | | | | 15,023,606 | |
| | | | | | | | |
| | | | Household Products - 0.0% | |
| | 782,720 | | | Procter & Gamble - Esop 9.36%, 01/01/2021 | | | 782,720 | |
| | | | | | | | |
| | | | Insurance - 0.6% | |
| | 420,000 | | | AIA Group Ltd. 3.38%, 04/07/2030(6) | | | 470,743 | |
| | 375,000 | | | American International Group, Inc. 4.38%, 06/30/2050 | | | 491,013 | |
| | 840,000 | | | Chubb INA Holdings, Inc. 3.35%, 05/15/2024 | | | 917,046 | |
| | 1,200,000 | | | Equitable Financial Life Global Funding 1.40%, 08/27/2027(6) | | | 1,207,404 | |
| | 200,000 | | | Five Corners Funding Trust 4.42%, 11/15/2023(6) | | | 221,845 | |
| | | | Liberty Mutual Group, Inc. | |
| | 122,000 | | | 4.25%, 06/15/2023(6) | | | 132,742 | |
| | 428,000 | | | 4.57%, 02/01/2029(6) | | | 525,900 | |
| | 705,000 | | | Marsh & McLennan Cos., Inc. 4.38%, 03/15/2029 | | | 858,355 | |
| | 605,000 | | | Massachusetts Mutual Life Insurance Co. 3.38%, 04/15/2050(6) | | | 660,909 | |
| | 1,000,000 | | | MetLife, Inc. 3.60%, 04/10/2024 | | | 1,099,078 | |
| | 1,750,000 | | | Nationwide Mutual Insurance Co. 4.35%, 04/30/2050(6) | | | 2,055,764 | |
| | 132,000 | | | Northwestern Mutual Life Insurance Co. 3.63%, 09/30/2059(6) | | | 153,370 | |
| | 870,000 | | | Prudential plc 3.13%, 04/14/2030 | | | 986,350 | |
| | 2,220,000 | | | Trinity Acquisition plc 4.40%, 03/15/2026 | | | 2,586,494 | |
| | | | | | | | |
| | | | | | | 12,367,013 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Internet - 0.2% | |
| $ | 1,020,000 | | | Amazon.com, Inc. 4.80%, 12/05/2034 | | $ | 1,399,557 | |
| | 405,000 | | | Meituan 3.05%, 10/28/2030(6) | | | 421,038 | |
| | | | Tencent Holdings Ltd. | |
| | 1,095,000 | | | 3.60%, 01/19/2028(6) | | | 1,208,805 | |
| | 470,000 | | | 3.98%, 04/11/2029(6) | | | 535,509 | |
| | | | | | | | |
| | | | | | | 3,564,909 | |
| | | | | | | | |
| | | | Investment Company Security - 0.0% | |
| | 605,000 | | | JAB Holdings B.V. 2.20%, 11/23/2030(6) | | | 608,250 | |
| | | | | | | | |
| | | | IT Services - 0.3% | |
| | | | Apple, Inc. | |
| | 546,000 | | | 3.25%, 02/23/2026 | | | 612,728 | |
| | 1,360,000 | | | 3.45%, 05/06/2024 | | | 1,497,631 | |
| | | | International Business Machines Corp. | |
| | 2,260,000 | | | 1.95%, 05/15/2030 | | | 2,329,425 | |
| | 1,675,000 | | | 3.30%, 05/15/2026 | | | 1,892,680 | |
| | | | | | | | |
| | | | | | | 6,332,464 | |
| | | | | | | | |
| | | | Machinery - Diversified - 0.1% | |
| | | | Otis Worldwide Corp. | |
| | 140,000 | | | 2.57%, 02/15/2030 | | | 150,336 | |
| | 295,000 | | | 3.11%, 02/15/2040 | | | 320,352 | |
| | 525,000 | | | 3.36%, 02/15/2050 | | | 607,320 | |
| | | | | | | | |
| | | | | | | 1,078,008 | |
| | | | | | | | |
| | | | Media - 0.6% | |
| | | | Charter Communications Operating LLC / Charter Communications Operating Capital | | | | |
| | 85,000 | | | 3.70%, 04/01/2051 | | | 88,269 | |
| | 243,000 | | | 4.80%, 03/01/2050 | | | 290,239 | |
| | 187,000 | | | 5.13%, 07/01/2049 | | | 228,236 | |
| | 225,000 | | | 5.38%, 05/01/2047 | | | 280,824 | |
| | | | Comcast Corp. | |
| | 1,500,000 | | | 4.40%, 08/15/2035 | | | 1,919,623 | |
| | 585,000 | | | 4.60%, 10/15/2038 | | | 770,928 | |
| | 2,000,000 | | | Cox Communications, Inc. 4.80%, 02/01/2035(6) | | | 2,529,316 | |
| | 585,000 | | | Discovery Communications LLC 4.65%, 05/15/2050 | | | 731,686 | |
| | 365,000 | | | Fox Corp. 4.03%, 01/25/2024 | | | 401,991 | |
| | 2,386,000 | | | Sky Ltd. 3.75%, 09/16/2024(6) | | | 2,656,310 | |
| | | | Time Warner Cable LLC | |
| | 395,000 | | | 6.55%, 05/01/2037 | | | 542,225 | |
| | 250,000 | | | 7.30%, 07/01/2038 | | | 370,484 | |
| | 130,000 | | | Time Warner Entertainment Co., L.P. 8.38%, 03/15/2023 | | | 151,954 | |
| | 385,000 | | | Walt Disney Co. 4.00%, 10/01/2023 | | | 421,282 | |
| | | | | | | | |
| | | | | | | 11,383,367 | |
| | | | | | | | |
| | | | Mining - 0.1% | |
| | 1,575,000 | | | Glencore Finance Canada Ltd. 4.25%, 10/25/2022(6) | | | 1,677,645 | |
| | | | | | | | |
| | | | Oil & Gas - 0.6% | |
| | 1,545,000 | | | Aker BP ASA 4.00%, 01/15/2031(6) | | | 1,673,618 | |
| | 1,200,000 | | | BG Energy Capital plc 4.00%, 10/15/2021(6) | | | 1,231,997 | |
| | 100,000 | | | ConocoPhillips Co. 4.95%, 03/15/2026 | | | 120,069 | |
| | | | Equinor ASA | |
| | 160,000 | | | 2.45%, 01/17/2023 | | | 166,950 | |
| | 85,000 | | | 2.88%, 04/06/2025 | | | 92,838 | |
| | 2,470,000 | | | 3.00%, 04/06/2027 | | | 2,749,976 | |
| | 125,000 | | | 3.25%, 11/10/2024 | | | 137,731 | |
| | 2,425,000 | | | Hess Corp. 7.30%, 08/15/2031 | | | 3,172,774 | |
| | 615,000 | | | Saudi Arabian Oil Co. 3.50%, 04/16/2029(6) | | | 683,582 | |
| | 1,375,000 | | | Total Capital International S.A.2.70%, 01/25/2023 | | | 1,441,589 | |
| | | | | | | | |
| | | | | | | 11,471,124 | |
| | | | | | | | |
| | | | Pharmaceuticals - 0.5% | |
| | | | AbbVie, Inc. | |
| | 645,000 | | | 3.45%, 03/15/2022 | | | 665,190 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Pharmaceuticals - 0.5% - (continued) | |
| $ | 975,000 | | | 3.80%, 03/15/2025 | | $ | 1,087,299 | |
| | 315,000 | | | 4.25%, 11/21/2049 | | | 394,954 | |
| | 845,000 | | | 4.45%, 05/14/2046 | | | 1,075,000 | |
| | 600,000 | | | 4.85%, 06/15/2044 | | | 794,124 | |
| | 800,000 | | | 5.00%, 12/15/2021 | | | 825,887 | |
| | 955,000 | | | Bayer U.S. Finance LLC3.38%, 10/08/2024(6) | | | 1,042,330 | |
| | 955,000 | | | Cigna Corp.4.38%, 10/15/2028 | | | 1,154,296 | |
| | 289,000 | | | CVS Health Corp.4.30%, 03/25/2028 | | | 343,899 | |
| | 2,015,000 | | | EMD Finance LLC2.95%, 03/19/2022(6) | | | 2,068,840 | |
| | 650,000 | | | Takeda Pharmaceutical Co., Ltd.3.18%, 07/09/2050 | | | 693,078 | |
| | | | | | | | |
| | | | | | | 10,144,897 | |
| | | | | | | | |
| | | | Pipelines - 0.4% | |
| | | | Energy Transfer Operating L.P. | |
| | 180,000 | | | 4.95%, 06/15/2028 | | | 207,470 | |
| | 872,000 | | | 7.60%, 02/01/2024 | | | 1,007,531 | |
| | | | Enterprise Products Operating LLC | |
| | 100,000 | | | 3.70%, 01/31/2051 | | | 110,078 | |
| | 145,000 | | | 3.95%, 01/31/2060 | | | 160,509 | |
| | | | Gray Oak Pipeline LLC | |
| | 606,000 | | | 2.60%, 10/15/2025(6) | | | 624,584 | |
| | 100,000 | | | 3.45%, 10/15/2027(6) | | | 104,452 | |
| | | | MPLX L.P. | |
| | 485,000 | | | 4.00%, 03/15/2028 | | | 558,023 | |
| | 1,280,000 | | | 4.13%, 03/01/2027 | | | 1,476,269 | |
| | 945,000 | | | Sunoco Logistics Partners Operations L.P. 5.35%, 05/15/2045 | | | 1,041,022 | |
| | 425,000 | | | TransCanada PipeLines Ltd. 4.10%, 04/15/2030 | | | 502,702 | |
| | 2,470,000 | | | Western Midstream Operating L.P. 4.00%, 07/01/2022 | | | 2,539,111 | |
| | | | | | | | |
| | | | | | | 8,331,751 | |
| | | | | | | | |
| | | | Real Estate Investment Trusts - 0.5% | |
| | | | American Tower Corp. | |
| | 375,000 | | | 4.40%, 02/15/2026 | | | 434,173 | |
| | 400,000 | | | 5.00%, 02/15/2024 | | | 452,715 | |
| | 1,950,000 | | | Brandywine Operating Partnership L.P. 3.95%, 11/15/2027 | | | 2,084,105 | |
| | 985,000 | | | Equinix, Inc. 3.00%, 07/15/2050 | | | 997,484 | |
| | 2,000,000 | | | Healthpeak Properties, Inc. 4.00%, 06/01/2025 | | | 2,269,655 | |
| | | | SBA Tower Trust | |
| | 300,000 | | | 1.88%, 07/15/2050(6) | | | 308,767 | |
| | 470,000 | | | 2.84%, 01/15/2050(6) | | | 500,385 | |
| | 225,000 | | | 3.45%, 03/15/2048(6) | | | 238,604 | |
| | 1,171,000 | | | Scentre Group Trust 1 / Scentre Group Trust 2 3.63%, 01/28/2026(6) | | | 1,296,861 | |
| | | | VEREIT Operating Partnership L.P. | |
| | 395,000 | | | 2.20%, 06/15/2028 | | | 403,900 | |
| | 170,000 | | | 2.85%, 12/15/2032 | | | 177,761 | |
| | 1,160,000 | | | 3.10%, 12/15/2029 | | | 1,251,521 | |
| | 780,000 | | | 3.40%, 01/15/2028 | | | 861,076 | |
| | | | | | | | |
| | | | | | | 11,277,007 | |
| | | | | | | | |
| | | | Retail - 0.1% | |
| | 1,000,000 | | | AutoZone, Inc. 3.25%, 04/15/2025 | | | 1,095,679 | |
| | 685,000 | | | CVS Health Corp. 4.88%, 07/20/2035 | | | 888,881 | |
| | 350,000 | | | McDonald’s Corp. 3.63%, 09/01/2049 | | | 410,731 | |
| | | | | | | | |
| | | | | | | 2,395,291 | |
| | | | | | | | |
| | | | Semiconductors - 0.1% | |
| | 375,000 | | | Broadcom Corp. / Broadcom Cayman Finance Ltd.
3.88%, 01/15/2027 | | | 420,865 | |
| | 160,000 | | | Broadcom, Inc. 4.15%, 11/15/2030 | | | 185,242 | |
| | 2,275,000 | | | Microchip Technology, Inc. 0.97%, 02/15/2024(6) | | | 2,280,569 | |
| | | | | | | | |
| | | | | | | 2,886,676 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| CORPORATE BONDS - 14.7% - (continued) | |
| | | | Software - 0.3% | |
| | | | Microsoft Corp. | |
| $ | 1,605,000 | | | 2.40%, 08/08/2026 | | $ | 1,751,034 | |
| | 1,000,000 | | | 3.70%, 08/08/2046 | | | 1,267,984 | |
| | | | Oracle Corp. | |
| | 1,565,000 | | | 3.60%, 04/01/2050 | | | 1,823,356 | |
| | 315,000 | | | 3.85%, 04/01/2060 | | | 387,360 | |
| | | | | | | | |
| | | | | | | 5,229,734 | |
| | | | | | | | |
| | | | Telecommunications - 0.9% | |
| | | | AT&T, Inc. | |
| | 1,930,000 | | | 3.10%, 02/01/2043 | | | 1,958,889 | |
| | 1,265,000 | | | 3.50%, 09/15/2053(6) | | | 1,266,857 | |
| | 2,185,000 | | | 4.45%, 04/01/2024 | | | 2,440,166 | |
| | 1,125,000 | | | British Telecommunications plc 3.25%, 11/08/2029(6) | | | 1,240,948 | |
| | | | Deutsche Telekom International Finance B.V. | |
| | 450,000 | | | 3.60%, 01/19/2027(6) | | | 505,940 | |
| | 665,000 | | | 4.38%, 06/21/2028(6) | | | 785,096 | |
| | 576,000 | | | Orange S.A. 9.00%, 03/01/2031 | | | 947,469 | |
| | 2,440,000 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 4.74%, 09/20/2029(6) | | | 2,642,739 | |
| | | | T-Mobile USA, Inc. | |
| | 1,865,000 | | | 2.05%, 02/15/2028(6) | | | 1,939,898 | |
| | 255,000 | | | 3.30%, 02/15/2051(6) | | | 262,352 | |
| | | | Telefonica Emisiones S.A. | |
| | 1,035,000 | | | 5.21%, 03/08/2047 | | | 1,326,674 | |
| | 300,000 | | | 5.52%, 03/01/2049 | | | 404,817 | |
| | | | Verizon Communications, Inc. | |
| | 781,000 | | | 4.52%, 09/15/2048 | | | 1,018,488 | |
| | 222,000 | | | 4.67%, 03/15/2055 | | | 298,317 | |
| | 715,000 | | | 4.75%, 11/01/2041 | | | 945,198 | |
| | 283,000 | | | 4.81%, 03/15/2039 | | | 369,207 | |
| | | | | | | | |
| | | | | | | 18,353,055 | |
| | | | | | | | |
| | | | Transportation - 0.2% | |
| | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | 155,000 | | | 2.70%, 11/01/2024(6) | | | 166,055 | |
| | 1,100,000 | | | 3.38%, 02/01/2022(6) | | | 1,129,159 | |
| | 2,850,000 | | | 3.95%, 03/10/2025(6) | | | 3,192,191 | |
| | 465,000 | | | Union Pacific Corp. 3.75%, 02/05/2070 | | | 562,460 | |
| | | | | | | | |
| | | | | | | 5,049,865 | |
| | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $275,977,194) | | $ | 301,219,440 | |
| | | | | | | | |
|
| FOREIGN GOVERNMENT OBLIGATIONS - 0.4% | |
| | | | Qatar - 0.3% | |
| | | | Qatar Government International Bond | |
| $ | 4,990,000 | | | 2.38%, 06/02/2021(6) | | $ | 5,029,920 | |
| | 1,680,000 | | | 3.88%, 04/23/2023(6) | | | 1,805,664 | |
| | | | | | | | |
| | | | | | | 6,835,584 | |
| | | | | | | | |
| | | | Saudi Arabia - 0.1% | |
| | 800,000 | | | Saudi Government International Bond 2.88%, 03/04/2023(6) | | | 837,440 | |
| | | | | | | | |
| | |
| | | | Total Foreign Government Obligations
(cost $7,442,640) | | $ | 7,673,024 | |
| | | | | | | | |
|
| MUNICIPAL BONDS - 0.9% | |
| | | | Airport - 0.0% | |
| $ | 190,000 | | | Broward County, FL, Airport System Rev 3.48%, 10/01/2043 | | $ | 198,176 | |
| | 135,000 | | | Dallas-Fort Worth, TX, International Airport Rev 3.09%, 11/01/2040 | | | 141,611 | |
| | | | | | | | |
| | | | | | | 339,787 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| MUNICIPAL BONDS - 0.9% - (continued) | |
| | | | Education - 0.0% | |
| $ | 310,000 | | | Massachusetts School Building Auth 3.40%, 10/15/2040 | | $ | 333,479 | |
| | | | | | | | |
| | | | General - 0.4% | |
| | | | Chicago, IL, Transit Auth | |
| | 70,000 | | | 6.30%, 12/01/2021 | | | 73,434 | |
| | 1,000,000 | | | 6.90%, 12/01/2040 | | | 1,445,960 | |
| | 365,000 | | | City of Sacramento, CA, (AGM Insured) 6.42%, 08/01/2023 | | | 418,973 | |
| | 1,020,000 | | | Florida State Board of Administration Finance Co.
1.71%, 07/01/2027 | | | 1,058,750 | |
| | 375,000 | | | Metropolitan Transportation Auth, NY, Rev 6.67%, 11/15/2039 | | �� | 489,443 | |
| | 1,485,000 | | | New York State Urban Dev Corp. Rev 2.10%, 03/15/2022 | | | 1,501,498 | |
| | 1,250,000 | | | Philadelphia, PA, Auth for Industrial Dev, (NATL Insured) 6.55%, 10/15/2028 | | | 1,610,075 | |
| | 1,335,000 | | | Sales Tax Securitization Corp., IL 4.79%, 01/01/2048 | | | 1,670,138 | |
| | | | | | | | |
| | | | | | | 8,268,271 | |
| | | | | | | | |
| | | | General Obligation - 0.1% | |
| | 685,000 | | | Chicago, IL, Metropolitan Water Reclamation Dist, GO 5.72%, 12/01/2038 | | | 981,947 | |
| | 1,180,000 | | | State of Illinois, GO 5.10%, 06/01/2033 | | | 1,269,928 | |
| | | | | | | | |
| | | | | | | 2,251,875 | |
| | | | | | | | |
| | | | Higher Education - 0.1% | |
| | 535,000 | | | California State University 2.90%, 11/01/2051 | | | 543,902 | |
| | 145,000 | | | Pennsylvania State University 2.84%, 09/01/2050 | | | 149,894 | |
| | | | University of California | |
| | 225,000 | | | 1.32%, 05/15/2027 | | | 228,598 | |
| | 380,000 | | | 1.61%, 05/15/2030 | | | 383,998 | |
| | | | | | | | |
| | | | | | | 1,306,392 | |
| | | | | | | | |
| | | | Power - 0.0% | |
| | 485,000 | | | New York Utility Debt Securitization Auth 3.44%, 12/15/2025 | | | 508,430 | |
| | | | | | | | |
| | | | Transportation - 0.2% | |
| | | | Foothill-Eastern Transportation Corridor Agency, CA, (AGM Insured) | | | | |
| | 705,000 | | | 3.92%, 01/15/2053 | | | 752,566 | |
| | 95,000 | | | 4.09%, 01/15/2049 | | | 102,016 | |
| | 875,000 | | | Illinois State Toll Highway Auth, Taxable Rev 6.18%, 01/01/2034 | | | 1,264,480 | |
| | | | Metropolitan Transportation Auth, NY, Rev | | | | |
| | 640,000 | | | 5.18%, 11/15/2049 | | | 749,933 | |
| | 35,000 | | | 6.20%, 11/15/2026 | | | 39,487 | |
| | 570,000 | | | New York and New Jersey Port Auth, Taxable Rev
6.04%, 12/01/2029 | | | 760,089 | |
| | | | | | | | |
| | | | | | | 3,668,571 | |
| | | | | | | | |
| | | | Utility - Electric - 0.1% | |
| | 785,000 | | | Illinois Municipal Electric Agency 6.83%, 02/01/2035 | | | 1,073,739 | |
| | | | Municipal Electric Auth, GA | | | | |
| | 740,000 | | | 6.64%, 04/01/2057 | | | 1,125,355 | |
| | 208,000 | | | 6.66%, 04/01/2057 | | | 321,493 | |
| | | | | | | | |
| | | | | | | 2,520,587 | |
| | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $16,719,543) | | $ | 19,197,392 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 0.7% | |
| | | | Mortgage-Backed Agencies - 0.7% | |
| | | | FHLMC - 0.0% | |
| $ | 570,000 | | | 2.28%, 07/25/2026 | | $ | 613,737 | |
| | 10,671 | | | 3.12%, 04/01/2029, 12 mo. USD CMT + 2.251%(7) | | | 10,763 | |
| | 21,181 | | | 4.00%, 03/01/2041 | | | 23,350 | |
| | | | | | | | |
| | | | | | | 647,850 | |
| | | | | | | | |
| | | | FNMA - 0.4% | |
| $ | 257,734 | | | 0.55%, 10/25/2024, 1 mo. USD LIBOR + 0.400%(7) | | $ | 257,223 | |
| | 650,000 | | | 2.78%, 06/01/2026 | | | 707,292 | |
| | 1,271,663 | | | 3.00%, 03/25/2053 | | | 1,326,703 | |
| | 325,000 | | | 3.07%, 02/01/2025 | | | 353,124 | |
| | 2,641,651 | | | 3.50%, 06/25/2059 | | | 2,937,428 | |
| | 22,378 | | | 4.50%, 11/01/2023 | | | 24,187 | |
| | 71,962 | | | 4.50%, 03/01/2038 | | | 79,262 | |
| | 45,063 | | | 4.50%, 11/01/2039 | | | 50,599 | |
| | 26,494 | | | 4.50%, 04/01/2040 | | | 29,436 | |
| | 67,955 | | | 4.50%, 08/01/2040 | | | 76,304 | |
| | 25,968 | | | 4.50%, 02/01/2041 | | | 29,147 | |
| | 337,969 | | | 4.50%, 04/01/2041 | | | 378,766 | |
| | 238,515 | | | 4.50%, 06/01/2041 | | | 266,885 | |
| | 311,860 | | | 4.50%, 07/01/2041 | | | 350,183 | |
| | 79,890 | | | 4.50%, 09/01/2041 | | | 89,706 | |
| | 57,661 | | | 4.50%, 07/01/2044 | | | 62,768 | |
| | | | | | | | |
| | | | | | | 7,019,013 | |
| | | | | | | | |
| | | | GNMA - 0.1% | |
| $ | 56,591 | | | 5.00%, 07/15/2037 | | $ | 63,179 | |
| | 4,729 | | | 6.00%, 06/15/2024 | | | 5,303 | |
| | 3,566 | | | 6.00%, 07/15/2026 | | | 4,001 | |
| | 207 | | | 6.00%, 01/15/2028 | | | 208 | |
| | 1,305 | | | 6.00%, 03/15/2028 | | | 1,471 | |
| | 25,813 | | | 6.00%, 04/15/2028 | | | 29,050 | |
| | 53,096 | | | 6.00%, 05/15/2028 | | | 59,600 | |
| | 15,727 | | | 6.00%, 06/15/2028 | | | 17,662 | |
| | 30,763 | | | 6.00%, 07/15/2028 | | | 34,576 | |
| | 10,132 | | | 6.00%, 08/15/2028 | | | 11,378 | |
| | 36,692 | | | 6.00%, 09/15/2028 | | | 41,212 | |
| | 76,119 | | | 6.00%, 10/15/2028 | | | 85,477 | |
| | 56,688 | | | 6.00%, 11/15/2028 | | | 63,642 | |
| | 67,406 | | | 6.00%, 12/15/2028 | | | 75,705 | |
| | 1,354 | | | 6.00%, 12/15/2031 | | | 1,565 | |
| | 16,999 | | | 6.00%, 09/15/2032 | | | 20,369 | |
| | 5,758 | | | 6.00%, 11/15/2032 | | | 6,713 | |
| | 1,788 | | | 6.00%, 04/15/2033 | | | 2,007 | |
| | 67,766 | | | 6.00%, 06/15/2033 | | | 78,131 | |
| | 23,008 | | | 6.00%, 10/15/2033 | | | 27,796 | |
| | 2,864 | | | 6.00%, 11/15/2033 | | | 3,449 | |
| | 47,551 | | | 6.00%, 10/15/2034 | | | 54,668 | |
| | 53,515 | | | 6.00%, 01/15/2035 | | | 60,314 | |
| | 6,592 | | | 6.00%, 05/15/2035 | | | 7,407 | |
| | 7,195 | | | 6.00%, 06/15/2035 | | | 8,092 | |
| | 184 | | | 6.50%, 03/15/2026 | | | 204 | |
| | 2,833 | | | 6.50%, 01/15/2028 | | | 3,146 | |
| | 28,338 | | | 6.50%, 03/15/2028 | | | 31,472 | |
| | 76,053 | | | 6.50%, 04/15/2028 | | | 84,467 | |
| | 24,702 | | | 6.50%, 05/15/2028 | | | 27,436 | |
| | 109,148 | | | 6.50%, 06/15/2028 | | | 121,223 | |
| | 5,667 | | | 6.50%, 10/15/2028 | | | 6,294 | |
| | 1,879 | | | 6.50%, 02/15/2035 | | | 2,189 | |
| | 9,268 | | | 7.00%, 11/15/2031 | | | 10,375 | |
| | 4,711 | | | 7.00%, 03/15/2032 | | | 5,288 | |
| | 794,068 | | | 7.00%, 11/15/2032 | | | 957,003 | |
| | 99,433 | | | 7.00%, 01/15/2033 | | | 117,035 | |
| | 110,616 | | | 7.00%, 05/15/2033 | | | 129,674 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 0.7% - (continued) | |
| | | | Mortgage-Backed Agencies - 0.7% - (continued) | |
| | | | GNMA - 0.1% - (continued) | |
| $ | 17,864 | | | 7.00%, 07/15/2033 | | $ | 20,650 | |
| | 126,074 | | | 7.00%, 11/15/2033 | | | 148,303 | |
| | 50,164 | | | 7.50%, 09/16/2035 | | | 57,417 | |
| | 94 | | | 8.00%, 09/15/2026 | | | 103 | |
| | 36 | | | 8.00%, 11/15/2026 | | | 37 | |
| | 5,642 | | | 8.00%, 12/15/2026 | | | 6,403 | |
| | 94 | | | 8.00%, 09/15/2027 | | | 97 | |
| | 3,655 | | | 8.00%, 07/15/2029 | | | 4,240 | |
| | 8,097 | | | 8.00%, 12/15/2029 | | | 8,411 | |
| | 3,598 | | | 8.00%, 01/15/2030 | | | 3,720 | |
| | 3,034 | | | 8.00%, 02/15/2030 | | | 3,058 | |
| | 756 | | | 8.00%, 03/15/2030 | | | 766 | |
| | 18,985 | | | 8.00%, 04/15/2030 | | | 19,198 | |
| | 3,996 | | | 8.00%, 05/15/2030 | | | 4,172 | |
| | 30,671 | | | 8.00%, 06/15/2030 | | | 32,097 | |
| | 1,896 | | | 8.00%, 07/15/2030 | | | 1,977 | |
| | 55,244 | | | 8.00%, 08/15/2030 | | | 56,955 | |
| | 13,733 | | | 8.00%, 09/15/2030 | | | 14,189 | |
| | 5,974 | | | 8.00%, 11/15/2030 | | | 6,036 | |
| | 85,146 | | | 8.00%, 12/15/2030 | | | 96,437 | |
| | | | | | | | |
| | | | | | | 2,743,047 | |
| | | | | | | | |
| | | | UMBS - 0.1% | |
| $ | 1,975,000 | | | 2.00%, 01/16/2036(11) | | $ | 2,064,801 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $11,722,407) | | $ | 12,474,711 | |
| | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 11.2% | |
| | | | U.S. Treasury Securities - 11.2% | |
| | | | U.S. Treasury Bonds - 4.9% | |
| $ | 970,000 | | | 1.13%, 08/15/2040 | | $ | 918,317 | |
| | 72,700 | | | 1.25%, 05/15/2050 | | | 65,953 | |
| | 1,765,000 | | | 1.38%, 08/15/2050 | | | 1,653,033 | |
| | 7,005,000 | | | 1.63%, 11/15/2050 | | | 6,978,731 | |
| | 290,000 | | | 2.00%, 02/15/2050 | | | 314,967 | |
| | 19,250,000 | | | 2.50%, 02/15/2045(12) | | | 22,956,377 | |
| | 6,214,000 | | | 2.75%, 11/15/2047 | | | 7,798,085 | |
| | 9,735,800 | | | 2.88%, 05/15/2043 | | | 12,308,181 | |
| | 450,000 | | | 3.00%, 08/15/2048 | | | 591,979 | |
| | 7,895,000 | | | 3.13%, 08/15/2044 | | | 10,412,456 | |
| | 4,630,000 | | | 3.38%, 05/15/2044 | | | 6,331,706 | |
| | 21,300,000 | | | 4.38%, 02/15/2038 | | | 31,665,445 | |
| | | | | | | | |
| | | | | | | 101,995,230 | |
| | | | | | | | |
| | | | U.S. Treasury Notes - 6.3% | |
| | 7,155,000 | | | 0.13%, 05/31/2022 | | | 7,156,398 | |
| | 4,260,000 | | | 0.13%, 06/30/2022 | | | 4,260,666 | |
| | 6,100,000 | | | 0.13%, 11/30/2022 | | | 6,100,715 | |
| | 1,715,000 | | | 0.13%, 05/15/2023 | | | 1,714,531 | |
| | 20,715,000 | | | 0.25%, 05/31/2025 | | | 20,675,350 | |
| | 17,385,000 | | | 0.25%, 07/31/2025 | | | 17,334,067 | |
| | 8,770,000 | | | 0.25%, 08/31/2025 | | | 8,741,566 | |
| | 15,405,000 | | | 0.25%, 09/30/2025 | | | 15,346,630 | |
| | 6,300,000 | | | 0.25%, 12/31/2025 | | | 6,304,922 | |
| | 9,015,000 | | | 0.38%, 11/30/2025 | | | 9,027,677 | |
| | 910,000 | | | 0.63%, 05/15/2030 | | | 889,667 | |
| | 4,021,000 | | | 0.63%, 08/15/2030 | | | 3,920,475 | |
| | 4,760,000 | | | 0.88%, 11/15/2030 | | | 4,744,381 | |
| | 2,450,000 | | | 1.13%, 02/28/2025 | | | 2,536,420 | |
| | 40,000 | | | 1.50%, 02/15/2030 | | | 42,317 | |
| | 8,520,000 | | | 1.63%, 10/31/2026 | | | 9,086,447 | |
| | 1,300,000 | | | 1.63%, 08/15/2029 | | | 1,390,695 | |
| | 840,000 | | | 1.75%, 11/15/2029 | | | 907,823 | |
| | 8,205,000 | | | 2.13%, 03/31/2024 | | | 8,717,492 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT SECURITIES - 11.2% - (continued) | |
| | | | U.S. Treasury Securities - 11.2% - (continued) | |
| | | | U.S. Treasury Notes - 6.3% - (continued) | |
| $ | 80,000 | | | 2.38%, 05/15/2029 | | $ | 90,413 | |
| | | | | | | | |
| | | | | | | 128,988,652 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $204,592,716) | | $ | 230,983,882 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $1,455,629,437) | | $ | 2,010,055,453 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.3% | |
| | | | Repurchase Agreements - 1.6% | |
| | 32,815,744 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $32,815,926; collateralized by U.S. Treasury Bond at 2.875%, maturing 11/15/2046, with a market value of $33,472,072 | | $ | 32,815,744 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.7% | |
| | 13,828,824 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(13) | | | 13,828,824 | |
| | 548,463 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(13) | | | 548,463 | |
| | | | | | | | |
| | | | | | | 14,377,287 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $47,193,031) | | $ | 47,193,031 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,502,822,468) | | | 100.3 | % | | $ | 2,057,248,484 | |
| | | | Other Assets and Liabilities | | | (0.3 | )% | | | (5,027,194 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,052,221,290 | |
| | | | | | | | | | | | |
| 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) | 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, 2020, the aggregate fair value of these securities was $17,585,495, which represented 0.9% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (2) | 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 $17,585,495 or 0.9% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 08/2011 | | | Allstar Co. | | | 11,702,200 | | | $ | 2,510,647 | | | $ | 13,925,618 | |
| | 11/2013 | | | Tory Burch LLC | | | 67,006 | | | | 5,251,707 | | | | 3,659,877 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 7,762,354 | | | $ | 17,585,495 | |
| | | | | | | | | | | | | | | | |
| (3) | Affiliated company – The Fund owns greater than 5% of the outstanding voting securities of this issuer. |
| (4) | Investment valued using significant unobservable inputs. |
| (5) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (6) | 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, 2020, the aggregate value of these securities was $142,633,829, representing 7.0% of net assets. |
| (7) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2020. Base lending rates may be subject to a floor or cap. |
| (8) | 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. |
| (9) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2020. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (10) | Perpetual maturity security. Maturity date shown is the next call date or final legal maturity date, whichever comes first. |
| (11) | Represents or includes a TBA transaction. |
| (12) | All, or a portion of the security, was pledged as collateral in connection with futures contracts. As of December 31, 2020, the market value of securities pledged was $184,844. |
| (13) | Current yield as of period end. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Balanced HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2020 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
U.S. Treasury 5-Year Note Future | | | 7 | | | | 03/31/2021 | | | $ | 883,148 | | | $ | 1,844 | |
U.S. Treasury Long Bond Future | | | 1 | | | | 03/22/2021 | | | | 173,188 | | | | (970 | ) |
| | | | | | | | | | | | | | | | |
Total | | | $ | 874 | |
| | | | | | | | | | | | | | | | |
| Short position contracts: | |
U.S. Treasury 10-Year Note Future | | | 57 | | | | 03/22/2021 | | | $ | 7,870,453 | | | $ | (9,882 | ) |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | (9,008 | ) |
| | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 20,235,886 | | | $ | 20,235,886 | | | $ | — | | | $ | — | |
Banks | | | 110,039,930 | | | | 109,215,349 | | | | 824,581 | | | | — | |
Capital Goods | | | 133,249,873 | | | | 133,249,873 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 22,011,565 | | | | 22,011,565 | | | | — | | | | — | |
Diversified Financials | | | 35,294,602 | | | | 35,294,602 | | | | — | | | | — | |
Energy | | | 15,096,689 | | | | 15,096,689 | | | | — | | | | — | |
Food & Staples Retailing | | | 16,867,119 | | | | 16,867,119 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 37,158,562 | | | | 37,158,562 | | | | — | | | | — | |
Health Care Equipment & Services | | | 144,768,667 | | | | 144,768,667 | | | | — | | | | — | |
Insurance | | | 62,466,427 | | | | 62,466,427 | | | | — | | | | — | |
Materials | | | 55,552,676 | | | | 55,552,676 | | | | — | | | | — | |
Media & Entertainment | | | 154,161,325 | | | | 154,161,325 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 130,336,391 | | | | 95,457,091 | | | | 34,879,300 | | | | — | |
Real Estate | | | 18,827,932 | | | | 18,827,932 | | | | — | | | | — | |
Retailing | | | 85,261,792 | | | | 67,676,297 | | | | 13,925,618 | | | | 3,659,877 | |
Semiconductors & Semiconductor Equipment | | | 60,015,826 | | | | 60,015,826 | | | | — | | | | — | |
Software & Services | | | 186,035,211 | | | | 186,035,211 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 53,695,062 | | | | 53,695,062 | | | | — | | | | — | |
Transportation | | | 36,240,131 | | | | 36,240,131 | | | | — | | | | — | |
Utilities | | | 16,397,615 | | | | 16,397,615 | | | | — | | | | — | |
Asset & Commercial Mortgage-Backed Securities | | | 44,793,723 | | | | — | | | | 44,793,723 | | | | — | |
Corporate Bonds | | | 301,219,440 | | | | — | | | | 301,219,440 | | | | — | |
Foreign Government Obligations | | | 7,673,024 | | | | — | | | | 7,673,024 | | | | — | |
Municipal Bonds | | | 19,197,392 | | | | — | | | | 19,197,392 | | | | — | |
U.S. Government Agencies | | | 12,474,711 | | | | — | | | | 12,474,711 | | | | — | |
U.S. Government Securities | | | 230,983,882 | | | | — | | | | 230,983,882 | | | | — | |
Short-Term Investments | | | 47,193,031 | | | | 14,377,287 | | | | 32,815,744 | | | | — | |
Futures Contracts(2) | | | 1,844 | | | | 1,844 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,057,250,328 | | | $ | 1,354,803,036 | | | $ | 698,787,415 | | | $ | 3,659,877 | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Futures Contracts(2) | | $ | (10,852 | ) | | $ | (10,852 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (10,852 | ) | | $ | (10,852 | ) | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, investments valued at $4,680,880 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 year ended December 31, 2020 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% | |
| | | | Automobiles & Components - 0.7% | |
| | 23,690 | | | Ferrari N.V. | | $ | 5,494,690 | |
| | 355,255 | | | General Motors Co. | | | 14,792,818 | |
| | 133,781 | | | Thor Industries, Inc. | | | 12,440,295 | |
| | | | | | | | |
| | | | | | | 32,727,803 | |
| | | | | | | | |
| | | | Banks - 1.3% | |
| | 201,903 | | | Atlantic Union Bankshares Corp. | | | 6,650,685 | |
| | 910,043 | | | Bank of America Corp. | | | 27,583,403 | |
| | 293,914 | | | Bank OZK | | | 9,190,691 | |
| | 389,610 | | | Zions Bancorp NA | | | 16,924,658 | |
| | | | | | | | |
| | | | | | | 60,349,437 | |
| | | | | | | | |
| | | | Capital Goods - 5.1% | |
| | 100,237 | | | 3M Co. | | | 17,520,425 | |
| | 70,378 | | | A.O. Smith Corp. | | | 3,858,122 | |
| | 81,065 | | | Airbus SE* | | | 8,896,408 | |
| | 67,355 | | | Carlisle Cos., Inc. | | | 10,519,504 | |
| | 101,665 | | | Dover Corp. | | | 12,835,206 | |
| | 247,200 | | | Emerson Electric Co. | | | 19,867,464 | |
| | 129,595 | | | Fortive Corp. | | | 9,177,918 | |
| | 158,744 | | | General Dynamics Corp. | | | 23,624,282 | |
| | 350,600 | | | HF Global, Inc.*(1)(2)(3) | | | 6,952,398 | |
| | 203,883 | | | Johnson Controls International plc | | | 9,498,909 | |
| | 63,690 | | | Lockheed Martin Corp. | | | 22,608,676 | |
| | 101,089 | | | Northrop Grumman Corp. | | | 30,803,840 | |
| | 319,653 | | | Raytheon Technologies Corp. | | | 22,858,386 | |
| | 10,123 | | | Roper Technologies, Inc. | | | 4,363,924 | |
| | 18,150 | | | Safran S.A.* | | | 2,572,468 | |
| | 758,630 | | | Sanwa Holdings Corp. | | | 8,859,040 | |
| | 14,401 | | | Trane Technologies plc | | | 2,090,449 | |
| | 219,298 | | | Westinghouse Air Brake Technologies Corp. | | | 16,052,614 | |
| | | | | | | | |
| | | | | | | 232,960,033 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.3% | |
| | 297,634 | | | Copart, Inc.* | | | 37,873,927 | |
| | 20,158 | | | CoStar Group, Inc.* | | | 18,631,636 | |
| | 108,510 | | | Recruit Holdings Co., Ltd. | | | 4,557,739 | |
| | | | | | | | |
| | | | | | | 61,063,302 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.3% | |
| | 11,103 | | | adidas AG* | | | 4,039,324 | |
| | 225,313 | | | Carter’s, Inc. | | | 21,195,194 | |
| | 121,037 | | | Garmin Ltd. | | | 14,483,288 | |
| | 34,618 | | | Lennar Corp. Class A | | | 2,638,930 | |
| | 36,332 | | | Lululemon Athletica, Inc.* | | | 12,644,626 | |
| | 261,247 | | | NIKE, Inc. Class B | | | 36,958,613 | |
| | 31,324 | | | Peloton Interactive, Inc. Class A* | | | 4,752,477 | |
| | 77,486 | | | Polaris, Inc. | | | 7,382,866 | |
| | 42,900 | | | Sony Corp. | | | 4,322,947 | |
| | 197,826 | | | Steven Madden Ltd. | | | 6,987,214 | |
| | 404,472 | | | VF Corp. | | | 34,545,954 | |
| | | | | | | | |
| | | | | | | 149,951,433 | |
| | | | | | | | |
| | | | Consumer Services - 4.4% | |
| | 153,475 | | | Chegg, Inc.* | | | 13,863,397 | |
| | 819,860 | | | Compass Group plc | | | 15,291,501 | |
| | 9,192 | | | Domino’s Pizza, Inc. | | | 3,524,764 | |
| | 488,671 | | | DraftKings, Inc. Class A* | | | 22,752,522 | |
| | 17,127 | | | Hilton Worldwide Holdings, Inc. | | | 1,905,550 | |
| | 50,739 | | | Huazhu Group Ltd. ADR | | | 2,284,777 | |
| | 149,287 | | | Las Vegas Sands Corp. | | | 8,897,505 | |
| | 327,859 | | | McDonald’s Corp. | | | 70,351,984 | |
| | 17,340 | | | New Oriental Education & Technology Group, Inc. ADR* | | | 3,221,945 | |
| | 352,616 | | | Penn National Gaming, Inc.* | | | 30,455,444 | |
| | 164,519 | | | Starbucks Corp. | | | 17,600,243 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Consumer Services - 4.4% - (continued) | |
| | 90,748 | | | Yum! Brands, Inc. | | $ | 9,851,603 | |
| | | | | | | | |
| | | | | | | 200,001,235 | |
| | | | | | | | |
| | | | Diversified Financials - 4.2% | |
| | 407,069 | | | American Express Co. | | | 49,218,713 | |
| | 446,689 | | | Bank of New York Mellon Corp. | | | 18,957,481 | |
| | 21,843 | | | BlackRock, Inc. | | | 15,760,598 | |
| | 219,895 | | | Blackstone Group, Inc. Class A | | | 14,251,395 | |
| | 103,129 | | | Brookfield Asset Management, Inc. Class A | | | 4,263,216 | |
| | 608,939 | | | Charles Schwab Corp. | | | 32,298,125 | |
| | 298,791 | | | Equitable Holdings, Inc. | | | 7,646,062 | |
| | 26,858 | | | London Stock Exchange Group plc | | | 3,315,258 | |
| | 88,922 | | | LPL Financial Holdings, Inc. | | | 9,267,451 | |
| | 248,017 | | | Raymond James Financial, Inc. | | | 23,727,786 | |
| | 173,780 | | | Voya Financial, Inc. | | | 10,220,002 | |
| | 59,499 | | | XP, Inc. Class A* | | | 2,360,325 | |
| | | | | | | | |
| | | | | | | 191,286,412 | |
| | | | | | | | |
| | | | Energy - 1.0% | |
| | 633,617 | | | Canadian Natural Resources Ltd. | | | 15,238,489 | |
| | 147,932 | | | Concho Resources, Inc. | | | 8,631,832 | |
| | 157,903 | | | Diamondback Energy, Inc. | | | 7,642,505 | |
| | 288,279 | | | Halliburton Co. | | | 5,448,473 | |
| | 398,943 | | | Petroleo Brasileiro S.A. ADR | | | 4,480,130 | |
| | 268,988 | | | Tenaris S.A. ADR(4) | | | 4,290,359 | |
| | | | | | | | |
| | | | | | | 45,731,788 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.8% | |
| | 78,301 | | | Sysco Corp. | | | 5,814,632 | |
| | 212,488 | | | Walmart, Inc. | | | 30,630,145 | |
| | | | | | | | |
| | | | | | | 36,444,777 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 7.6% | |
| | 716,194 | | | Altria Group, Inc. | | | 29,363,954 | |
| | 107,508 | | | Archer-Daniels-Midland Co. | | | 5,419,478 | |
| | 126,153 | | | Campbell Soup Co. | | | 6,099,497 | |
| | 799,317 | | | Coca-Cola Co. | | | 43,834,544 | |
| | 83,855 | | | Constellation Brands, Inc. Class A | | | 18,368,438 | |
| | 968,371 | | | Diageo plc | | | 38,317,245 | |
| | 298,536 | | | General Mills, Inc. | | | 17,553,917 | |
| | 126,828 | | | JM Smucker Co. | | | 14,661,317 | |
| | 140,609 | | | Kellogg Co. | | | 8,750,098 | |
| | 686,504 | | | Keurig Dr Pepper, Inc. | | | 21,968,128 | |
| | 301,842 | | | Mondelez International, Inc. Class A | | | 17,648,702 | |
| | 432,344 | | | Monster Beverage Corp.* | | | 39,983,173 | |
| | 258,106 | | | PepsiCo., Inc. | | | 38,277,120 | |
| | 316,510 | | | Philip Morris International, Inc. | | | 26,203,863 | |
| | 263,461 | | | Tyson Foods, Inc. Class A | | | 16,977,427 | |
| | | | | | | | |
| | | | | | | 343,426,901 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.4% | |
| | 43,861 | | | ABIOMED, Inc.* | | | 14,219,736 | |
| | 49,994 | | | Align Technology, Inc.* | | | 26,715,794 | |
| | 22,921 | | | Anthem, Inc. | | | 7,359,704 | |
| | 258,854 | | | Baxter International, Inc. | | | 20,770,445 | |
| | 266,798 | | | Boston Scientific Corp.* | | | 9,591,388 | |
| | 279,880 | | | Centene Corp.* | | | 16,801,196 | |
| | 389,772 | | | CVS Health Corp. | | | 26,621,428 | |
| | 143,448 | | | Danaher Corp. | | | 31,865,539 | |
| | 238,372 | | | Dentsply Sirona, Inc. | | | 12,481,158 | |
| | 66,014 | | | DexCom, Inc.* | | | 24,406,696 | |
| | 105,901 | | | Insulet Corp.* | | | 27,071,473 | |
| | 45,221 | | | Intuitive Surgical, Inc.* | | | 36,995,300 | |
| | 484,131 | | | Medtronic plc | | | 56,711,105 | |
| | 1,109,551 | | | Multiplan Corp.*(4) | | | 8,865,312 | |
| | 64,912 | | | Quest Diagnostics, Inc. | | | 7,735,563 | |
| | 61,233 | | | Teleflex, Inc. | | | 25,201,666 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Health Care Equipment & Services - 9.4% - (continued) | |
| | 130,287 | | | UnitedHealth Group, Inc. | | $ | 45,689,045 | |
| | 44,935 | | | Varian Medical Systems, Inc.* | | | 7,864,074 | |
| | 74,062 | | | Veeva Systems, Inc. Class A* | | | 20,163,380 | |
| | | | | | | | |
| | | | | | | 427,130,002 | |
| | | | | | | | |
| | | | Household & Personal Products - 2.0% | |
| | 45,289 | | | Clorox Co. | | | 9,144,755 | |
| | 450,177 | | | Colgate-Palmolive Co. | | | 38,494,635 | |
| | 208,493 | | | Kimberly-Clark Corp. | | | 28,111,111 | |
| | 111,378 | | | Procter & Gamble Co. | | | 15,497,135 | |
| | | | | | | | |
| | | | | | | 91,247,636 | |
| | | | | | | | |
| | | | Insurance - 4.5% | |
| | 838,811 | | | Aflac, Inc. | | | 37,301,925 | |
| | 314,614 | | | Athene Holding Ltd. Class A* | | | 13,572,448 | |
| | 381,345 | | | Chubb Ltd. | | | 58,696,622 | |
| | 500,657 | | | CNO Financial Group, Inc. | | | 11,129,605 | |
| | 95,112 | | | Globe Life, Inc. | | | 9,031,836 | |
| | 322,369 | | | Marsh & McLennan Cos., Inc. | | | 37,717,173 | |
| | 431,930 | | | MetLife, Inc. | | | 20,279,114 | |
| | 79,385 | | | Travelers Cos., Inc. | | | 11,143,272 | |
| | 212,037 | | | Unum Group | | | 4,864,129 | |
| | | | | | | | |
| | | | | | | 203,736,124 | |
| | | | | | | | |
| | | | Materials - 2.8% | |
| | 190,894 | | | ArcelorMittal S.A.* | | | 4,368,839 | |
| | 106,858 | | | Celanese Corp. | | | 13,885,129 | |
| | 177,356 | | | CRH plc | | | 7,494,001 | |
| | 120,845 | | | Ecolab, Inc. | | | 26,146,024 | |
| | 168,625 | | | FMC Corp. | | | 19,380,071 | |
| | 110,491 | | | Linde plc | | | 29,115,483 | |
| | 112,714 | | | Nutrien Ltd.(4) | | | 5,422,740 | |
| | 128,696 | | | Reliance Steel & Aluminum Co. | | | 15,411,346 | |
| | 60,474 | | | Rio Tinto plc | | | 4,552,065 | |
| | | | | | | | |
| | | | | | | 125,775,698 | |
| | | | | | | | |
| | | | Media & Entertainment - 5.8% | |
| | 200,317 | | | Activision Blizzard, Inc. | | | 18,599,433 | |
| | 6,394 | | | Alphabet, Inc. Class A* | | | 11,206,380 | |
| | 5,075 | | | Charter Communications, Inc. Class A* | | | 3,357,366 | |
| | 758,788 | | | Comcast Corp. Class A | | | 39,760,491 | |
| | 64,971 | | | Electronic Arts, Inc. | | | 9,329,836 | |
| | 96,793 | | | Facebook, Inc. Class A* | | | 26,439,976 | |
| | 155,321 | | | Match Group, Inc.* | | | 23,482,982 | |
| | 5,857 | | | Netflix, Inc.* | | | 3,167,056 | |
| | 371,005 | | | Omnicom Group, Inc. | | | 23,139,582 | |
| | 299,661 | | | Pinterest, Inc. Class A* | | | 19,747,660 | |
| | 58,721 | | | Roku, Inc.* | | | 19,496,546 | |
| | 520,915 | | | Snap, Inc. Class A* | | | 26,082,214 | |
| | 50,413 | | | Spotify Technology S.A.* | | | 15,862,955 | |
| | 49,847 | | | Tencent Holdings Ltd. | | | 3,586,680 | |
| | 327,233 | | | Twitter, Inc.* | | | 17,719,667 | |
| | 308,143 | | | Zynga, Inc. Class A* | | | 3,041,371 | |
| | | | | | | | |
| | | | | | | 264,020,195 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.9% | |
| | 132,580 | | | Allakos, Inc.* | | | 18,561,200 | |
| | 73,475 | | | Alnylam Pharmaceuticals, Inc.* | | | 9,549,546 | |
| | 8,402 | | | Argenx SE ADR* | | | 2,470,944 | |
| | 14,359 | | | Ascendis Pharma A/S ADR* | | | 2,394,794 | |
| | 276,463 | | | AstraZeneca plc ADR | | | 13,820,385 | |
| | 77,027 | | | Biogen, Inc.* | | | 18,860,831 | |
| | 433,819 | | | ChemoCentryx, Inc.* | | | 26,862,072 | |
| | 284,397 | | | Elanco Animal Health, Inc.* | | | 8,722,456 | |
| | 96,562 | | | Eli Lilly & Co. | | | 16,303,528 | |
| | 176,090 | | | Exact Sciences Corp.* | | | 23,330,164 | |
| | 1,181 | | | Galapagos N.V. ADR* | | | 116,895 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 6.9% - (continued) | |
| | 71,406 | | | Galapagos N.V.* | | $ | 7,067,358 | |
| | 96,500 | | | Hangzhou Tigermed Consulting Co., Ltd. Class H*(5) | | | 2,237,953 | |
| | 296,334 | | | Johnson & Johnson | | | 46,637,045 | |
| | 83,538 | | | Kodiak Sciences, Inc.* | | | 12,272,568 | |
| | 9,253 | | | Mettler-Toledo International, Inc.* | | | 10,545,459 | |
| | 400,659 | | | PTC Therapeutics, Inc.* | | | 24,452,219 | |
| | 10,689 | | | Regeneron Pharmaceuticals, Inc.* | | | 5,163,963 | |
| | 65,529 | | | Seagen, Inc.* | | | 11,476,749 | |
| | 44,827 | | | Thermo Fisher Scientific, Inc. | | | 20,879,520 | |
| | 116,774 | | | Vertex Pharmaceuticals, Inc.* | | | 27,598,367 | |
| | 204,757 | | | Wuxi Biologics Cayman, Inc.*(5) | | | 2,715,351 | |
| | | | | | | | |
| | | | | | | 312,039,367 | |
| | | | | | | | |
| | | | Real Estate - 3.6% | |
| | 119,080 | | | Alexandria Real Estate Equities, Inc. REIT | | | 21,222,438 | |
| | 41,683 | | | American Tower Corp. REIT | | | 9,356,166 | |
| | 478,491 | | | Americold Realty Trust REIT | | | 17,862,069 | |
| | 98,459 | | | Camden Property Trust REIT | | | 9,838,023 | |
| | 54,914 | | | Crown Castle International Corp. REIT | | | 8,741,760 | |
| | 75,685 | | | Digital Realty Trust, Inc. REIT | | | 10,558,814 | |
| | 32,243 | | | Equinix, Inc. REIT | | | 23,027,306 | |
| | 47,182 | | | Prologis, Inc. REIT | | | 4,702,158 | |
| | 69,111 | | | Public Storage REIT | | | 15,959,803 | |
| | 766,130 | | | STORE Capital Corp. REIT | | | 26,033,097 | |
| | 666,834 | | | VICI Properties, Inc. REIT | | | 17,004,267 | |
| | | | | | | | |
| | | | | | | 164,305,901 | |
| | | | | | | | |
| | | | Retailing - 8.1% | |
| | 97,957 | | | Alibaba Group Holding Ltd. ADR* | | | 22,797,533 | |
| | 8,451,700 | | | Allstar Co.(2)(3)(6) | | | 10,057,523 | |
| | 35,010 | | | Amazon.com, Inc.* | | | 114,025,119 | |
| | 8,195 | | | AutoZone, Inc.* | | | 9,714,681 | |
| | 12,681 | | | Booking Holdings, Inc.* | | | 28,244,011 | |
| | 92,684 | | | CarMax, Inc.* | | | 8,754,931 | |
| | 195,226 | | | Chewy, Inc. Class A*(4) | | | 17,548,865 | |
| | 51,239 | | | Dollar General Corp. | | | 10,775,562 | |
| | 185,159 | | | Dollar Tree, Inc.* | | | 20,004,578 | |
| | 18,022 | | | Lowe’s Cos., Inc. | | | 2,892,711 | |
| | 145,394 | | | Ross Stores, Inc. | | | 17,855,837 | |
| | 1,451,104 | | | TJX Cos., Inc. | | | 99,095,892 | |
| | 115,140 | | | Tory Burch LLC*(1)(2)(3) | | | 6,288,930 | |
| | 23,033 | | | Zalando SE*(5) | | | 2,561,994 | |
| | | | | | | | |
| | | | | | | 370,618,167 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 2.7% | |
| | 375,553 | | | Advanced Micro Devices, Inc.* | | | 34,441,966 | |
| | 11,238 | | | ASML Holding N.V. | | | 5,441,181 | |
| | 38,040 | | | Broadcom, Inc. | | | 16,655,814 | |
| | 30,160 | | | Infineon Technologies AG | | | 1,151,768 | |
| | 345,284 | | | Intel Corp. | | | 17,202,049 | |
| | 40,858 | | | KLA Corp. | | | 10,578,545 | |
| | 423,610 | | | Marvell Technology Group Ltd. | | | 20,138,419 | |
| | 138,395 | | | Micron Technology, Inc.* | | | 10,404,536 | |
| | 32,660 | | | MKS Instruments, Inc. | | | 4,913,697 | |
| | | | | | | | |
| | | | | | | 120,927,975 | |
| | | | | | | | |
| | | | Software & Services - 12.5% | |
| | 84,420 | | | Accenture plc Class A | | | 22,051,348 | |
| | 120,893 | | | Amdocs Ltd. | | | 8,574,941 | |
| | 32,509 | | | ANSYS, Inc.* | | | 11,826,774 | |
| | 13,173 | | | Avalara, Inc.* | | | 2,172,096 | |
| | 57,022 | | | Booz Allen Hamilton Holding Corp. | | | 4,971,178 | |
| | 41,339 | | | Citrix Systems, Inc. | | | 5,378,204 | |
| | 120,730 | | | Cognizant Technology Solutions Corp. Class A | | | 9,893,824 | |
| | 43,277 | | | Fair Isaac Corp.* | | | 22,116,278 | |
| | 28,013 | | | Fidelity National Information Services, Inc. | | | 3,962,719 | |
| | 151,304 | | | FleetCor Technologies, Inc.* | | | 41,280,270 | |
| | 882,889 | | | Genpact Ltd. | | | 36,516,289 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Software & Services - 12.5% - (continued) | |
| | 66,061 | | | Global Payments, Inc. | | $ | 14,230,861 | |
| | 526,563 | | | GoDaddy, Inc. Class A* | | | 43,678,401 | |
| | 98,818 | | | Guidewire Software, Inc.* | | | 12,720,841 | |
| | 319,431 | | | International Business Machines Corp. | | | 40,209,974 | |
| | 13,659 | | | Intuit, Inc. | | | 5,188,371 | |
| | 267,773 | | | Leidos Holdings, Inc. | | | 28,148,298 | |
| | 115,890 | | | Microsoft Corp. | | | 25,776,254 | |
| | 556,459 | | | Oracle Corp. | | | 35,997,333 | |
| | 33,925 | | | Paycom Software, Inc.* | | | 15,342,581 | |
| | 38,589 | | | RingCentral, Inc. Class A* | | | 14,624,073 | |
| | 21,112 | | | salesforce.com, Inc.* | | | 4,698,053 | |
| | 121,587 | | | Splunk, Inc.* | | | 20,656,415 | |
| | 159,137 | | | Square, Inc. Class A* | | | 34,634,577 | |
| | 18,237 | | | StoneCo Ltd. Class A* | | | 1,530,449 | |
| | 79,789 | | | Visa, Inc. Class A | | | 17,452,248 | |
| | 85,218 | | | VMware, Inc. Class A*(4) | | | 11,952,677 | |
| | 142,513 | | | WEX, Inc.* | | | 29,005,671 | |
| | 168,635 | | | Workday, Inc. Class A* | | | 40,406,632 | |
| | 50,112 | | | Worldline S.A.*(5) | | | 4,868,283 | |
| | | | | | | | |
| | | | | | | 569,865,913 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 5.0% | |
| | 754,520 | | | Apple, Inc. | | | 100,117,259 | |
| | 166,029 | | | CDW Corp. | | | 21,880,962 | |
| | 535,649 | | | Cisco Systems, Inc. | | | 23,970,293 | |
| | 61,340 | | | F5 Networks, Inc.* | | | 10,792,160 | |
| | 1,555,243 | | | Flex Ltd.* | | | 27,963,269 | |
| | 8,670 | | | Keyence Corp. | | | 4,877,019 | |
| | 157,903 | | | Lumentum Holdings, Inc.* | | | 14,969,204 | |
| | 15,761 | | | Motorola Solutions, Inc. | | | 2,680,316 | |
| | 169,212 | | | Samsung Electronics Co., Ltd. | | | 12,635,985 | |
| | 40,745 | | | TE Connectivity Ltd. | | | 4,932,997 | |
| | 42,748 | | | Vontier Corp.* | | | 1,427,783 | |
| | | | | | | | |
| | | | | | | 226,247,247 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.7% | |
| | 38,138 | | | Cellnex Telecom S.A.(5) | | | 2,290,299 | |
| | 230,981 | | | T-Mobile U.S., Inc.* | | | 31,147,788 | |
| | | | | | | | |
| | | | | | | 33,438,087 | |
| | | | | | | | |
| | | | Transportation - 2.2% | |
| | 190,397 | | | Canadian National Railway Co. | | | 20,931,853 | |
| | 37,962 | | | FedEx Corp. | | | 9,855,695 | |
| | 33,556 | | | J.B. Hunt Transport Services, Inc. | | | 4,585,427 | |
| | 97,500 | | | Japan Airlines Co., Ltd.* | | | 1,880,220 | |
| | 213,500 | | | Localiza Rent a Car S.A. | | | 2,834,089 | |
| | 144,002 | | | Union Pacific Corp. | | | 29,984,097 | |
| | 163,488 | | | United Parcel Service, Inc. Class B | | | 27,531,379 | |
| | | | | | | | |
| | | | | | | 97,602,760 | |
| | | | | | | | |
| | | | Utilities - 1.4% | |
| | 105,449 | | | Consolidated Edison, Inc. | | | 7,620,799 | |
| | 92,282 | | | Duke Energy Corp. | | | 8,449,340 | |
| | 441,901 | | | Exelon Corp. | | | 18,657,060 | |
| | 1,213,853 | | | Iberdrola S.A. | | | 17,443,419 | |
| | 156,006 | | | Pinnacle West Capital Corp. | | | 12,472,680 | |
| | | | | | | | |
| | | | | | | 64,643,298 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $3,266,675,328) | | $ | 4,425,541,491 | |
| | | | | | | | |
|
| EXCHANGE-TRADED FUNDS - 0.0% | |
| | | | Other Investment Pools & Funds - 0.0% | |
| | 11,657 | | | iShares MSCI ACWI ETF(4) | | $ | 1,057,523 | |
| | | | | | | | |
| | |
| | | | Total Exchange-Traded Funds
(cost $922,848) | | $ | 1,057,523 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CONVERTIBLE PREFERRED STOCKS - 0.3% | |
| | | | Consumer Services - 0.1% | |
| | 33,238 | | | Airbnb, Inc. Series E*(2)(3) | | $ | 4,668,277 | |
| | | | | | | | |
| | | | Diversified Financials - 0.0% | |
| | 85,350 | | | Social Finance, Inc. Series F*(1)(2)(3) | | | 1,322,925 | |
| | | | | | | | |
| | | | Retailing - 0.1% | |
| | 40,566 | | | Honest Co., Inc. Series C*(1)(2)(3) | | | 1,444,961 | |
| | | | | | | | |
| | | | Software & Services - 0.1% | |
| | 29,504 | | | Magic Leap, Inc. Series C*(1)(2)(3) | | | 339,886 | |
| | 50,200 | | | Nanigans, Inc. Series D*(1)(2)(3) | | | — | |
| | 20,891 | | | Sharecare, Inc. Series B2*(1)(2)(3) | | | 5,261,607 | |
| | | | | | | | |
| | | | | | | 5,601,493 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $10,438,958) | | $ | 13,037,656 | |
| | | | | | | | |
|
| ESCROWS - 0.0%(7) | |
| | | | 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 $3,278,037,134) | | $ | 4,439,657,137 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.2% | |
| | | | Repurchase Agreements - 1.6% | |
| | 74,494,433 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $74,494,847; collateralized by U.S. Treasury Note at 0.625%, maturing 11/30/2027, with a market value of $7,785,524; collateralized by U.S. Treasury Note at 4.375%, maturing 11/15/2039, with a market value of $68,198,807 | | $ | 74,494,433 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.6% | |
| | 26,701,218 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(8) | | | 26,701,218 | |
| | 1,058,992 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(8) | | | 1,058,992 | |
| | | | | | | | |
| | | | | | | 27,760,210 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $102,254,643) | | $ | 102,254,643 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $3,380,291,777) | | | 99.8 | % | | $ | 4,541,911,780 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 9,364,055 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 4,551,275,835 | |
| | | | | | | | | | | | |
| 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. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Capital Appreciation HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | 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, 2020, the aggregate fair value of these securities was $36,356,974, which represented 0.8% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third-party pricing service methodology approved by the Board of Directors. |
| (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 $36,356,974 or 0.8% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 06/2015 | | | Airbnb, Inc. Series E Convertible Preferred | | | 33,238 | | | $ | 1,547,136 | | | $ | 4,668,277 | |
| | 08/2011 | | | Allstar Co. | | | 8,451,700 | | | | 1,813,267 | | | | 10,057,523 | |
| | 06/2015 | | | HF Global, Inc. | | | 350,600 | | | | 4,713,607 | | | | 6,952,398 | |
| | 08/2014 | | | Honest Co., Inc. Series C Convertible Preferred | | | 40,566 | | | | 1,097,606 | | | | 1,444,961 | |
| | 12/2015 | | | Magic Leap, Inc. Series C Convertible Preferred | | | 29,504 | | | | 679,566 | | | | 339,886 | |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 03/2015 | | | Nanigans, Inc. Series D Convertible Preferred | | | 50,200 | | | $ | 548,109 | | | $ | — | |
| | 01/2014 | | | One Kings Lane, Inc. | | | 127,917 | | | | — | | | | 20,467 | |
| | 03/2015 | | | Sharecare, Inc. Series B2 Convertible Preferred | | | 20,891 | | | | 5,220,034 | | | | 5,261,607 | |
| | 09/2015 | | | Social Finance, Inc. Series F Convertible Preferred | | | 85,350 | | | | 1,346,507 | | | | 1,322,925 | |
| | 11/2013 | | | Tory Burch LLC | | | 115,140 | | | | 9,024,247 | | | | 6,288,930 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 25,990,079 | | | $ | 36,356,974 | |
| | | | | | | | | | | | | | | | |
| (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, 2020, the aggregate value of these securities was $14,673,880, representing 0.3% of net assets. |
| (6) | Affiliated company – The Fund owns greater than 5% of the outstanding voting securities of this issuer. |
| (7) | Share amount represents shares of the issuer previously held that resulted in receipt of the escrow. |
| (8) | Current yield as of period end. |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2020 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
Nasdaq 100 E-MINI | | | 279 | | | | 03/19/2021 | | | $ | 71,901,090 | | | $ | 1,906,125 | |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | 1,906,125 | |
| | | | | | | | | | | | | | | | |
| † | 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, 2020
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 32,727,803 | | | $ | 27,233,113 | | | $ | 5,494,690 | | | $ | — | |
Banks | | | 60,349,437 | | | | 60,349,437 | | | | — | | | | — | |
Capital Goods | | | 232,960,033 | | | | 205,679,719 | | | | 20,327,916 | | | | 6,952,398 | |
Commercial & Professional Services | | | 61,063,302 | | | | 56,505,563 | | | | 4,557,739 | | | | — | |
Consumer Durables & Apparel | | | 149,951,433 | | | | 141,589,162 | | | | 8,362,271 | | | | — | |
Consumer Services | | | 200,001,235 | | | | 184,709,734 | | | | 15,291,501 | | | | — | |
Diversified Financials | | | 191,286,412 | | | | 187,971,154 | | | | 3,315,258 | | | | — | |
Energy | | | 45,731,788 | | | | 45,731,788 | | | | — | | | | — | |
Food & Staples Retailing | | | 36,444,777 | | | | 36,444,777 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 343,426,901 | | | | 305,109,656 | | | | 38,317,245 | | | | — | |
Health Care Equipment & Services | | | 427,130,002 | | | | 427,130,002 | | | | — | | | | — | |
Household & Personal Products | | | 91,247,636 | | | | 91,247,636 | | | | — | | | | — | |
Insurance | | | 203,736,124 | | | | 203,736,124 | | | | — | | | | — | |
Materials | | | 125,775,698 | | | | 111,725,172 | | | | 14,050,526 | | | | — | |
Media & Entertainment | | | 264,020,195 | | | | 260,433,515 | | | | 3,586,680 | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 312,039,367 | | | | 300,018,705 | | | | 12,020,662 | | | | — | |
Real Estate | | | 164,305,901 | | | | 164,305,901 | | | | — | | | | — | |
Retailing | | | 370,618,167 | | | | 351,709,720 | | | | 12,619,517 | | | | 6,288,930 | |
Semiconductors & Semiconductor Equipment | | | 120,927,975 | | | | 114,335,026 | | | | 6,592,949 | | | | — | |
Software & Services | | | 569,865,913 | | | | 564,997,630 | | | | 4,868,283 | | | | — | |
Technology Hardware & Equipment | | | 226,247,247 | | | | 208,734,243 | | | | 17,513,004 | | | | — | |
Telecommunication Services | | | 33,438,087 | | | | 31,147,788 | | | | 2,290,299 | | | | — | |
Transportation | | | 97,602,760 | | | | 95,722,540 | | | | 1,880,220 | | | | — | |
Utilities | | | 64,643,298 | | | | 47,199,879 | | | | 17,443,419 | | | | — | |
Exchange-Traded Funds | | | 1,057,523 | | | | 1,057,523 | | | | — | | | | — | |
Convertible Preferred Stocks | | | 13,037,656 | | | | — | | | | 4,668,277 | | | | 8,369,379 | |
Escrows | | | 20,467 | | | | — | | | | — | | | | 20,467 | |
Short-Term Investments | | | 102,254,643 | | | | 27,760,210 | | | | 74,494,433 | | | | — | |
Futures Contracts(2) | | | 1,906,125 | | | | 1,906,125 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 4,543,817,905 | | | $ | 4,254,491,842 | | | $ | 267,694,889 | | | $ | 21,631,174 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, investments valued at $5,551,786 were transferred out of Level 3 due to the expiration of trading restrictions and 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 year ended December 31, 2020 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% | |
| | | | Automobiles & Components - 0.7% | |
| | 32,400 | | | Tesla, Inc.* | | $ | 22,863,708 | |
| | | | | | | | |
| | | | Banks - 5.6% | |
| | 1,978,414 | | | Bank of America Corp. | | | 59,965,728 | |
| | 560,937 | | | JP Morgan Chase & Co. | | | 71,278,265 | |
| | 292,271 | | | PNC Financial Services Group, Inc. | | | 43,548,379 | |
| | | | | | | | |
| | | | | | | 174,792,372 | |
| | | | | | | | |
| | | | Capital Goods - 5.6% | |
| | 306,670 | | | AMETEK, Inc. | | | 37,088,670 | |
| | 441,612 | | | Fortune Brands Home & Security, Inc. | | | 37,854,981 | |
| | 146,528 | | | IDEX Corp. | | | 29,188,378 | |
| | 189,404 | | | Illinois Tool Works, Inc. | | | 38,615,687 | |
| | 465,054 | | | Raytheon Technologies Corp. | | | 33,256,011 | |
| | | | | | | | |
| | | | | | | 176,003,727 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.5% | |
| | 155,927 | | | Equifax, Inc. | | | 30,068,963 | |
| | 167,728 | | | Republic Services, Inc. | | | 16,152,206 | |
| | | | | | | | |
| | | | | | | 46,221,169 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 2.6% | |
| | 289,144 | | | NIKE, Inc. Class B | | | 40,905,202 | |
| | 474,506 | | | VF Corp. | | | 40,527,557 | |
| | | | | | | | |
| | | | | | | 81,432,759 | |
| | | | | | | | |
| | | | Consumer Services - 1.7% | |
| | 73,500 | | | Airbnb, Inc. Class A* | | | 10,789,800 | |
| | 206,505 | | | McDonald’s Corp. | | | 44,311,843 | |
| | | | | | | | |
| | | | | | | 55,101,643 | |
| | | | | | | | |
| | | | Diversified Financials - 3.8% | |
| | 288,898 | | | American Express Co. | | | 34,930,657 | |
| | 48,049 | | | BlackRock, Inc. | | | 34,669,276 | |
| | 709,763 | | | Morgan Stanley | | | 48,640,058 | |
| | | | | | | | |
| | | | | | | 118,239,991 | |
| | | | | | | | |
| | | | Energy - 0.9% | |
| | 560,425 | | | EOG Resources, Inc. | | | 27,948,395 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.6% | |
| | 91,956 | | | Costco Wholesale Corp. | | | 34,647,182 | |
| | 333,503 | | | Walmart, Inc. | | | 48,074,457 | |
| | | | | | | | |
| | | | | | | 82,721,639 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.6% | |
| | 222,104 | | | Constellation Brands, Inc. Class A | | | 48,651,881 | |
| | 376,408 | | | Monster Beverage Corp.* | | | 34,810,212 | |
| | | | | | | | |
| | | | | | | 83,462,093 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 8.1% | |
| | 247,044 | | | Abbott Laboratories | | | 27,048,848 | |
| | 434,811 | | | Baxter International, Inc. | | | 34,889,235 | |
| | 117,266 | | | Becton Dickinson and Co. | | | 29,342,298 | |
| | 167,518 | | | Danaher Corp. | | | 37,212,448 | |
| | 513,047 | | | Hologic, Inc.* | | | 37,365,213 | |
| | 119,912 | | | Laboratory Corp. of America Holdings* | | | 24,408,088 | |
| | 186,706 | | | UnitedHealth Group, Inc. | | | 65,474,060 | |
| | | | | | | | |
| | | | | | | 255,740,190 | |
| | | | | | | | |
| | | | Household & Personal Products - 3.4% | |
| | 416,005 | | | Colgate-Palmolive Co. | | | 35,572,587 | |
| | 510,906 | | | Procter & Gamble Co. | | | 71,087,461 | |
| | | | | | | | |
| | | | | | | 106,660,048 | |
| | | | | | | | |
| | | | Insurance - 1.7% | |
| | 562,838 | | | Athene Holding Ltd. Class A* | | | 24,280,831 | |
| | 193,488 | | | Chubb Ltd. | | | 29,781,673 | |
| | | | | | | | |
| | | | | | | 54,062,504 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| | | | Materials - 2.1% | |
| | 283,851 | | | PPG Industries, Inc. | | $ | 40,936,991 | |
| | 161,074 | | | Vulcan Materials Co. | | | 23,888,885 | |
| | | | | | | | |
| | | | | | | 64,825,876 | |
| | | | | | | | |
| | | | Media & Entertainment - 9.4% | |
| | 72,513 | | | Alphabet, Inc. Class A* | | | 127,089,184 | |
| | 3,225 | | | Alphabet, Inc. Class C* | | | 5,649,813 | |
| | 292,501 | | | Facebook, Inc. Class A* | | | 79,899,573 | |
| | 459,503 | | | Walt Disney Co.* | | | 83,252,754 | |
| | | | | | | | |
| | | | | | | 295,891,324 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 5.8% | |
| | 337,644 | | | Eli Lilly & Co. | | | 57,007,813 | |
| | 689,166 | | | Merck & Co., Inc. | | | 56,373,779 | |
| | 41,251 | | | Regeneron Pharmaceuticals, Inc.* | | | 19,928,771 | |
| | 105,608 | | | Thermo Fisher Scientific, Inc. | | | 49,190,094 | |
| | | | | | | | |
| | | | | | | 182,500,457 | |
| | | | | | | | |
| | | | Real Estate - 1.5% | |
| | 138,548 | | | American Tower Corp. REIT | | | 31,098,484 | |
| | 368,447 | | | Gaming and Leisure Properties, Inc. REIT | | | 15,622,153 | |
| | 10,657 | | | We Co. Class A*(1)(2)(3) | | | 40,070 | |
| | | | | | | | |
| | | | | | | 46,760,707 | |
| | | | | | | | |
| | | | Retailing - 6.2% | |
| | 41,855 | | | Amazon.com, Inc.* | | | 136,318,805 | |
| | 41,578 | | | JAND, Inc. Class A*(1)(2)(3) | | | 960,036 | |
| | 798,585 | | | TJX Cos., Inc. | | | 54,535,370 | |
| | 38,805 | | | Tory Burch LLC*(1)(2)(3) | | | 2,119,531 | |
| | | | | | | | |
| | | | | | | 193,933,742 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 6.0% | |
| | 279,897 | | | Advanced Micro Devices, Inc.* | | | 25,669,354 | |
| | 94,007 | | | KLA Corp. | | | 24,339,353 | |
| | 330,850 | | | Micron Technology, Inc.* | | | 24,873,303 | |
| | 241,795 | | | QUALCOMM, Inc. | | | 36,835,050 | |
| | 233,879 | | | Teradyne, Inc. | | | 28,039,753 | |
| | 297,747 | | | Texas Instruments, Inc. | | | 48,869,215 | |
| | | | | | | | |
| | | | | | | 188,626,028 | |
| | | | | | | | |
| | | | Software & Services - 12.8% | |
| | 230,422 | | | Fidelity National Information Services, Inc. | | | 32,595,496 | |
| | 171,742 | | | Global Payments, Inc. | | | 36,996,662 | |
| | 279,981 | | | GoDaddy, Inc. Class A* | | | 23,224,424 | |
| | 367,041 | | | Leidos Holdings, Inc. | | | 38,583,350 | |
| | 156,403 | | | Mastercard, Inc. Class A | | | 55,826,487 | |
| | 528,411 | | | Microsoft Corp. | | | 117,529,175 | |
| | 215,576 | | | salesforce.com, Inc.* | | | 47,972,127 | |
| | 285,015 | | | SS&C Technologies Holdings, Inc. | | | 20,734,841 | |
| | 121,071 | | | Workday, Inc. Class A* | | | 29,009,822 | |
| | | | | | | | |
| | | | | | | 402,472,384 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 8.6% | |
| | 1,313,295 | | | Apple, Inc. | | | 174,261,114 | |
| | 169,703 | | | CDW Corp. | | | 22,365,158 | |
| | 1,039,686 | | | Corning, Inc. | | | 37,428,696 | |
| | 219,292 | | | Motorola Solutions, Inc. | | | 37,292,797 | |
| | | | | | | | |
| | | | | | | 271,347,765 | |
| | | | | | | | |
| | | | Telecommunication Services - 1.3% | |
| | 720,578 | | | Verizon Communications, Inc. | | | 42,333,958 | |
| | | | | | | | |
| | | | Transportation - 1.4% | |
| | 167,915 | | | FedEx Corp. | | | 43,594,092 | |
| | | | | | | | |
| | | | Utilities - 2.6% | |
| | 464,467 | | | American Electric Power Co., Inc. | | | 38,676,167 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| | | | Utilities - 2.6% - (continued) | |
| | 562,076 | | | NextEra Energy, Inc. | | $ | 43,364,164 | |
| | | | | | | | |
| | | | | | | 82,040,331 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $2,291,335,084) | | $ | 3,099,576,902 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 1.0% | |
| | | | Real Estate - 0.1% | |
| | 145,709 | | | We Co. Series D1*(1)(2)(3) | | $ | 919,424 | |
| | 114,486 | | | We Co. Series D2*(1)(2)(3) | | | 722,406 | |
| | | | | | | | |
| | | | | | | 1,641,830 | |
| | | | | | | | |
| | | | Retailing - 0.7% | |
| | 1,605,750 | | | Coupang LLC*(1)(2)(3) | | | 16,555,283 | |
| | 102,040 | | | Honest Co., Inc. Series C*(1)(2)(3) | | | 3,634,665 | |
| | 92,843 | | | JAND, Inc. Series D*(1)(2)(3) | | | 2,172,526 | |
| | | | | | | | |
| | | | | | | 22,362,474 | |
| | | | | | | | |
| | | | Software & Services - 0.2% | |
| | 1,871,878 | | | Essence Group Holdings Corp. Series 3*(1)(2)(3) | | | 4,305,319 | |
| | 287,204 | | | Lookout, Inc. Series F*(1)(2)(3) | | | 2,705,462 | |
| | | | | | | | |
| | | | | | | 7,010,781 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $19,399,460) | | $ | 31,015,085 | |
| | | | | | | | |
|
| ESCROWS - 0.0% | |
| | | | Software & Services - 0.0% | |
| | 210,735 | | | Veracode, Inc.*(1)(2)(3) | | $ | 5,167 | |
| | | | | | | | |
| | |
| | | | Total Escrows
(cost $—) | | $ | 5,167 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $2,310,734,544) | | $ | 3,130,597,154 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.5% | |
| | | | Repurchase Agreements - 0.5% | |
| | 15,875,965 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $15,876,053; collateralized by U.S. Treasury Note at 4.375%, maturing 11/15/2039, with a market value of $16,193,587 | | $ | 15,875,965 | |
| | | | | | | | |
| | | | Total Short-Term Investments
(cost $15,875,965) | | $ | 15,875,965 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $2,326,610,509) | | | 100.0 | % | | $ | 3,146,473,119 | |
| | | | Other Assets and Liabilities | | | 0.0 | % | | | (1,121,780 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 3,145,351,339 | |
| | | | | | | | | | | | |
| 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) | 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, 2020, the aggregate fair value of these securities was $34,139,889, which represented 1.1% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third party pricing service methodology approved by the Board of Directors. |
| (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 $34,139,889 or 1.1% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 11/2014 | | | Coupang LLC Convertible Preferred | | | 1,605,750 | | | $ | 4,998,894 | | | $ | 16,555,283 | |
| | 05/2014 | | | Essence Group Holdings Corp. Series 3 Convertible Preferred | | | 1,871,878 | | | | 2,960,001 | | | | 4,305,319 | |
| | 08/2014 | | | Honest Co., Inc. Series C Convertible Preferred | | | 102,040 | | | | 2,760,927 | | | | 3,634,665 | |
| | 04/2015 | | | JAND, Inc. Class A | | | 41,578 | | | | 477,536 | | | | 960,036 | |
| | 04/2015 | | | JAND, Inc. Series D Convertible Preferred | | | 92,843 | | | | 1,066,330 | | | | 2,172,526 | |
| | 07/2014 | | | Lookout, Inc. Series F Convertible Preferred | | | 287,204 | | | | 3,280,760 | | | | 2,705,462 | |
| | 11/2013 | | | Tory Burch LLC | | | 38,805 | | | | 3,041,403 | | | | 2,119,531 | |
| | 04/2017 | | | Veracode, Inc. | | | 210,735 | | | | — | | | | 5,167 | |
| | 12/2014 | | | We Co. Class A | | | 10,657 | | | | 177,452 | | | | 40,070 | |
| | 12/2014 | | | We Co. Series D1 Convertible Preferred | | | 145,709 | | | | 2,426,224 | | | | 919,424 | |
| | 12/2014 | | | We Co. Series D2 Convertible Preferred | | | 114,486 | | | | 1,906,324 | | | | 722,406 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 23,095,851 | | | $ | 34,139,889 | |
| | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Disciplined Equity HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 22,863,708 | | | $ | 22,863,708 | | | $ | — | | | $ | — | |
Banks | | | 174,792,372 | | | | 174,792,372 | | | | — | | | | — | |
Capital Goods | | | 176,003,727 | | | | 176,003,727 | | | | — | | | | — | |
Commercial & Professional Services | | | 46,221,169 | | | | 46,221,169 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 81,432,759 | | | | 81,432,759 | | | | — | | | | — | |
Consumer Services | | | 55,101,643 | | | | 55,101,643 | | | | — | | | | — | |
Diversified Financials | | | 118,239,991 | | | | 118,239,991 | | | | — | | | | — | |
Energy | | | 27,948,395 | | | | 27,948,395 | | | | — | | | | — | |
Food & Staples Retailing | | | 82,721,639 | | | | 82,721,639 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 83,462,093 | | | | 83,462,093 | | | | — | | | | — | |
Health Care Equipment & Services | | | 255,740,190 | | | | 255,740,190 | | | | — | | | | — | |
Household & Personal Products | | | 106,660,048 | | | | 106,660,048 | | | | — | | | | — | |
Insurance | | | 54,062,504 | | | | 54,062,504 | | | | — | | | | — | |
Materials | | | 64,825,876 | | | | 64,825,876 | | | | — | | | | — | |
Media & Entertainment | | | 295,891,324 | | | | 295,891,324 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 182,500,457 | | | | 182,500,457 | | | | — | | | | — | |
Real Estate | | | 46,760,707 | | | | 46,720,637 | | | | — | | | | 40,070 | |
Retailing | | | 193,933,742 | | | | 190,854,175 | | | | — | | | | 3,079,567 | |
Semiconductors & Semiconductor Equipment | | | 188,626,028 | | | | 188,626,028 | | | | — | | | | — | |
Software & Services | | | 402,472,384 | | | | 402,472,384 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 271,347,765 | | | | 271,347,765 | | | | — | | | | — | |
Telecommunication Services | | | 42,333,958 | | | | 42,333,958 | | | | — | | | | — | |
Transportation | | | 43,594,092 | | | | 43,594,092 | | | | — | | | | — | |
Utilities | | | 82,040,331 | | | | 82,040,331 | | | | — | | | | — | |
Convertible Preferred Stocks | | | 31,015,085 | | | | — | | | | — | | | | 31,015,085 | |
Escrows | | | 5,167 | | | | — | | | | — | | | | 5,167 | |
Short-Term Investments | | | 15,875,965 | | | | — | | | | 15,875,965 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,146,473,119 | | | $ | 3,096,457,265 | | | $ | 15,875,965 | | | $ | 34,139,889 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, there were no transfers in and out of Level 3. |
The following is a rollforward of the Fund’s investments that were valued using unobservable inputs (Level 3) for the year ended December 31, 2020:
| | | | | | | | | | | | | | | | |
| | | Common
Stocks | | | Convertible
Preferred
Stocks | | | Escrows | | | Total | |
Beginning balance | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Purchases | | | — | | | | — | | | | — | | | | — | |
Sales | | | — | | | | — | | | | — | | | | — | |
Accrued discounts/(premiums) | | | — | | | | — | | | | — | | | | — | |
Total realized gain/(loss) | | | — | | | | — | | | | — | | | | — | |
Net change in unrealized appreciation/depreciation | | | 794,289 | | | | 1,260,853 | | | | (109,473 | ) | | | 1,945,669 | |
Transfers into Level 3(1) | | | 2,325,348 | | | | 29,754,232 | | | | 114,640 | | | | 32,194,220 | |
| | | | | | | | | | | | | | | | |
Ending balance | | $ | 3,119,637 | | | $ | 31,015,085 | | | $ | 5,167 | | | $ | 34,139,889 | |
| | | | | | | | | | | | | | | | |
| (1) | Transfer into level 3 includes the fair value of level 3 assets held by the Hartford Growth Opportunities HLS Fund as of September 18, 2020 which merged into the Fund in the amount of $32,194,220. |
The change in net unrealized appreciation/(depreciation) relating to the Level 3 investments held at December 31, 2020 was $1,945,669.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% | |
| | | | Banks - 9.5% | |
| | 3,876,758 | | | Bank of America Corp. | | $ | 117,504,535 | |
| | 427,925 | | | Bank of Nova Scotia | | | 23,125,067 | |
| | 1,056,878 | | | JP Morgan Chase & Co. | | | 134,297,487 | |
| | 396,481 | | | PNC Financial Services Group, Inc. | | | 59,075,669 | |
| | | | | | | | |
| | | | | | | 334,002,758 | |
| | | | | | | | |
| | | | Capital Goods - 8.6% | |
| | 165,797 | | | Deere & Co. | | | 44,607,683 | |
| | 224,463 | | | Eaton Corp. plc | | | 26,966,985 | |
| | 221,474 | | | General Dynamics Corp. | | | 32,959,761 | |
| | 732,292 | | | Ingersoll Rand, Inc.* | | | 33,363,224 | |
| | 1,268,255 | | | Johnson Controls International plc | | | 59,088,000 | |
| | 84,797 | | | Lockheed Martin Corp. | | | 30,101,239 | |
| | 307,809 | | | Otis Worldwide Corp. | | | 20,792,498 | |
| | 793,293 | | | Raytheon Technologies Corp. | | | 56,728,382 | |
| | | | | | | | |
| | | | | | | 304,607,772 | |
| | | | | | | | |
| | | | Consumer Services - 2.3% | |
| | 421,254 | | | Hilton Worldwide Holdings, Inc. | | | 46,868,720 | |
| | 156,080 | | | McDonald’s Corp. | | | 33,491,646 | |
| | | | | | | | |
| | | | | | | 80,360,366 | |
| | | | | | | | |
| | | | Diversified Financials - 5.0% | |
| | 482,858 | | | American Express Co. | | | 58,382,361 | |
| | 67,435 | | | BlackRock, Inc. | | | 48,657,050 | |
| | 677,898 | | | Charles Schwab Corp. | | | 35,955,710 | |
| | 366,179 | | | Northern Trust Corp. | | | 34,105,912 | |
| | | | | | | | |
| | | | | | | 177,101,033 | |
| | | | | | | | |
| | | | Energy - 4.5% | |
| | 617,853 | | | Chevron Corp. | | | 52,177,686 | |
| | 998,316 | | | ConocoPhillips | | | 39,922,657 | |
| | 368,506 | | | Hess Corp. | | | 19,453,432 | |
| | 597,676 | | | Marathon Petroleum Corp. | | | 24,719,879 | |
| | 508,281 | | | Total S.A.ADR | | | 21,302,057 | |
| | | | | | | | |
| | | | | | | 157,575,711 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 2.4% | |
| | 545,129 | | | Sysco Corp. | | | 40,481,279 | |
| | 299,758 | | | Walmart, Inc. | | | 43,210,116 | |
| | | | | | | | |
| | | | | | | 83,691,395 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 3.3% | |
| | 1,096,658 | | | Coca-Cola Co. | | | 60,140,725 | |
| | 445,472 | | | Kellogg Co. | | | 27,721,722 | |
| | 198,222 | | | PepsiCo., Inc. | | | 29,396,323 | |
| | | | | | | | |
| | | | | | | 117,258,770 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 7.2% | |
| | 109,557 | | | Anthem, Inc. | | | 35,177,657 | |
| | 148,725 | | | Becton Dickinson and Co. | | | 37,213,970 | |
| | 299,271 | | | HCA Healthcare, Inc. | | | 49,218,109 | |
| | 437,672 | | | Medtronic plc | | | 51,268,898 | |
| | 225,711 | | | UnitedHealth Group, Inc. | | | 79,152,333 | |
| | | | | | | | |
| | | | | | | 252,030,967 | |
| | | | | | | | |
| | | | Insurance - 4.7% | |
| | 1,070,913 | | | American International Group, Inc. | | | 40,544,766 | |
| | 281,508 | | | Chubb Ltd. | | | 43,329,711 | |
| | 680,705 | | | Principal Financial Group, Inc. | | | 33,769,775 | |
| | 607,068 | | | Prudential Financial, Inc. | | | 47,393,799 | |
| | | | | | | | |
| | | | | | | 165,038,051 | |
| | | | | | | | |
| | | | Materials - 4.0% | |
| | 520,305 | | | Celanese Corp. | | | 67,608,432 | |
| | 272,825 | | | FMC Corp. | | | 31,355,777 | |
| | 290,658 | | | PPG Industries, Inc. | | | 41,918,697 | |
| | | | | | | | |
| | | | | | | 140,882,906 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.3% - (continued) | |
| | | | Media & Entertainment - 5.8% | |
| | 64,964 | | | Alphabet, Inc. Class A* | | $ | 113,858,505 | |
| | 1,699,386 | | | Comcast Corp. Class A | | | 89,047,826 | |
| | | | | | | | |
| | | | | | | 202,906,331 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.1% | |
| | 286,412 | | | Agilent Technologies, Inc. | | | 33,936,958 | |
| | 804,520 | | | AstraZeneca plc ADR | | | 40,217,955 | |
| | 344,853 | | | Bristol-Myers Squibb Co. | | | 21,391,232 | |
| | 142,252 | | | Eli Lilly & Co. | | | 24,017,828 | |
| | 574,043 | | | Merck & Co., Inc. | | | 46,956,717 | |
| | 407,539 | | | Novartis AG ADR | | | 38,483,908 | |
| | 2,192,671 | | | Pfizer, Inc. | | | 80,712,219 | |
| | | | | | | | |
| | | | | | | 285,716,817 | |
| | | | | | | | |
| | | | Real Estate - 2.3% | |
| | 122,053 | | | American Tower Corp. REIT | | | 27,396,016 | |
| | 1,991 | | | Gaming and Leisure Properties, Inc. REIT | | | 84,419 | |
| | 1,633,548 | | | Host Hotels & Resorts, Inc. REIT | | | 23,898,807 | |
| | 129,360 | | | Public Storage REIT | | | 29,873,105 | |
| | | | | | | | |
| | | | | | | 81,252,347 | |
| | | | | | | | |
| | | | Retailing - 4.2% | |
| | 171,870 | | | Home Depot, Inc. | | | 45,652,110 | |
| | 313,824 | | | Lowe’s Cos., Inc. | | | 50,371,890 | |
| | 751,604 | | | TJX Cos., Inc. | | | 51,327,037 | |
| | | | | | | | |
| | | | | | | 147,351,037 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.2% | |
| | 161,301 | | | Broadcom, Inc. | | | 70,625,643 | |
| | 362,778 | | | Intel Corp. | | | 18,073,600 | |
| | 61,367 | | | KLA Corp. | | | 15,888,530 | |
| | 480,367 | | | Micron Technology, Inc.* | | | 36,113,991 | |
| | 248,502 | | | Texas Instruments, Inc. | | | 40,786,633 | |
| | | | | | | | |
| | | | | | | 181,488,397 | |
| | | | | | | | |
| | | | Software & Services - 5.9% | |
| | 138,869 | | | Accenture plc Class A | | | 36,273,971 | |
| | 120,695 | | | International Business Machines Corp. | | | 15,193,087 | |
| | 703,822 | | | Microsoft Corp. | | | 156,544,089 | |
| | | | | | | | |
| | | | | | | 208,011,147 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 7.9% | |
| | 789,015 | | | Apple, Inc. | | | 104,694,400 | |
| | 1,453,929 | | | Cisco Systems, Inc. | | | 65,063,323 | |
| | 1,232,831 | | | Corning, Inc. | | | 44,381,916 | |
| | 1,858,944 | | | HP, Inc. | | | 45,711,433 | |
| | 115,567 | | | Motorola Solutions, Inc. | | | 19,653,324 | |
| | | | | | | | |
| | | | | | | 279,504,396 | |
| | | | | | | | |
| | | | Telecommunication Services - 3.0% | |
| | 1,807,160 | | | Verizon Communications, Inc. | | | 106,170,650 | |
| | | | | | | | |
| | | | Transportation - 0.9% | |
| | 151,524 | | | Union Pacific Corp. | | | 31,550,327 | |
| | | | | | | | |
| | | | Utilities - 3.5% | |
| | 578,611 | | | Dominion Energy, Inc. | | | 43,511,547 | |
| | 909,877 | | | Exelon Corp. | | | 38,415,007 | |
| | 333,096 | | | Sempra Energy | | | 42,439,762 | |
| | | | | | | | |
| | | | | | | 124,366,316 | |
| | | | | | | | |
| | | | Total Common Stocks
(cost $2,228,154,768) | | $ | 3,460,867,494 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Dividend and Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 1.2% | |
| | | | Repurchase Agreements - 1.2% | | | |
| | 42,837,301 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.05%, due on 01/04/2021 with a maturity value of $42,837,539; collateralized by U.S. Treasury Note at 0.125%, maturing 12/15/2023, with a market value of $43,694,137 | | $ | 42,837,301 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $42,837,301) | | $ | 42,837,301 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $2,270,992,069) | | | 99.5 | % | | $ | 3,503,704,795 | |
| | | | Other Assets and Liabilities | | | 0.5 | % | | | 18,595,913 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 3,522,300,708 | |
| | | | | | | | | | | | |
| 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. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 334,002,758 | | | $ | 334,002,758 | | | $ | — | | | $ | — | |
Capital Goods | | | 304,607,772 | | | | 304,607,772 | | | | — | | | | — | |
Consumer Services | | | 80,360,366 | | | | 80,360,366 | | | | — | | | | — | |
Diversified Financials | | | 177,101,033 | | | | 177,101,033 | | | | — | | | | — | |
Energy | | | 157,575,711 | | | | 157,575,711 | | | | — | | | | — | |
Food & Staples Retailing | | | 83,691,395 | | | | 83,691,395 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 117,258,770 | | | | 117,258,770 | | | | — | | | | — | |
Health Care Equipment & Services | | | 252,030,967 | | | | 252,030,967 | | | | — | | | | — | |
Insurance | | | 165,038,051 | | | | 165,038,051 | | | | — | | | | — | |
Materials | | | 140,882,906 | | | | 140,882,906 | | | | — | | | | — | |
Media & Entertainment | | | 202,906,331 | | | | 202,906,331 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 285,716,817 | | | | 285,716,817 | | | | — | | | | — | |
Real Estate | | | 81,252,347 | | | | 81,252,347 | | | | — | | | | — | |
Retailing | | | 147,351,037 | | | | 147,351,037 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 181,488,397 | | | | 181,488,397 | | | | — | | | | — | |
Software & Services | | | 208,011,147 | | | | 208,011,147 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 279,504,396 | | | | 279,504,396 | | | | — | | | | — | |
Telecommunication Services | | | 106,170,650 | | | | 106,170,650 | | | | — | | | | — | |
Transportation | | | 31,550,327 | | | | 31,550,327 | | | | — | | | | — | |
Utilities | | | 124,366,316 | | | | 124,366,316 | | | | — | | | | — | |
Short-Term Investments | | | 42,837,301 | | | | — | | | | 42,837,301 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,503,704,795 | | | $ | 3,460,867,494 | | | $ | 42,837,301 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% | |
| | | | Biotechnology - 21.2% | |
| | 30,225 | | | 89bio, Inc.* | | $ | 736,583 | |
| | 22,013 | | | Akero Therapeutics, Inc.* | | | 567,935 | |
| | 102,010 | | | Alkermes plc* | | | 2,035,100 | |
| | 15,124 | | | Alnylam Pharmaceuticals, Inc.* | | | 1,965,666 | |
| | 41,003 | | | Apellis Pharmaceuticals, Inc.* | | | 2,345,372 | |
| | 25,826 | | | Arena Pharmaceuticals, Inc.* | | | 1,984,212 | |
| | 2,158 | | | Argenx SE ADR* | | | 634,646 | |
| | 4,169 | | | Ascendis Pharma A/S ADR* | | | 695,306 | |
| | 11,445 | | | Avidity Biosciences, Inc.* | | | 292,076 | |
| | 2,800 | | | BioAtla, Inc.* | | | 95,228 | |
| | 9,860 | | | Biogen, Inc.* | | | 2,414,320 | |
| | 13,775 | | | Biohaven Pharmaceutical Holding Co., Ltd.* | | | 1,180,655 | |
| | 6,316 | | | Black Diamond Therapeutics, Inc.* | | | 202,428 | |
| | 38,059 | | | Coherus Biosciences, Inc.* | | | 661,465 | |
| | 25,239 | | | Constellation Pharmaceuticals, Inc.* | | | 726,883 | |
| | 10,356 | | | Exact Sciences Corp.* | | | 1,372,066 | |
| | 39,600 | | | Freeline Therapeutics Holdings plc ADR* | | | 723,096 | |
| | 4,764 | | | Galapagos N.V.* | | | 471,513 | |
| | 86,300 | | | Gamida Cell Ltd.* | | | 724,057 | |
| | 7,532 | | | Generation Bio Co.* | | | 213,532 | |
| | 2,813 | | | Genmab A/S* | | | 1,140,654 | |
| | 21,164 | | | Genus plc | | | 1,211,003 | |
| | 139,866 | | | ImmunoGen, Inc.* | | | 902,136 | |
| | 318,000 | | | InnoCare Pharma Ltd.*(1) | | | 553,082 | |
| | 135,142 | | | Ironwood Pharmaceuticals, Inc.* | | | 1,539,267 | |
| | 17,179 | | | Kodiak Sciences, Inc.* | | | 2,523,767 | |
| | 14,029 | | | Kymera Therapeutics, Inc.* | | | 869,798 | |
| | 11,818 | | | Madrigal Pharmaceuticals, Inc.* | | | 1,313,807 | |
| | 7,182 | | | Mirati Therapeutics, Inc.* | | | 1,577,455 | |
| | 30,596 | | | Myovant Sciences Ltd.* | | | 845,062 | |
| | 47,092 | | | Nurix Therapeutics, Inc.* | | | 1,548,385 | |
| | 25,403 | | | Oyster Point Pharma, Inc.* | | | 478,084 | |
| | 82,279 | | | PhaseBio Pharmaceuticals, Inc.*(2) | | | 276,457 | |
| | 18,678 | | | Radius Health, Inc.* | | | 333,589 | |
| | 244,535 | | | Rigel Pharmaceuticals, Inc.* | | | 855,873 | |
| | 17,131 | | | Seagen, Inc.* | | | 3,000,323 | |
| | 7,300 | | | Sigilon Therapeutics, Inc.* | | | 350,619 | |
| | 72,877 | | | Syndax Pharmaceuticals, Inc.* | | | 1,620,785 | |
| | 9,521 | | | Turning Point Therapeutics, Inc.* | | | 1,160,134 | |
| | 30,679 | | | UroGen Pharma Ltd.*(2) | | | 552,836 | |
| | 11,493 | | | Vertex Pharmaceuticals, Inc.* | | | 2,716,256 | |
| | 28,678 | | | Zai Lab Ltd. ADR* | | | 3,881,281 | |
| | 8,768 | | | Zealand Pharma A/S ADR*(2) | | | 315,122 | |
| | | | | | | | |
| | | | | | | 49,607,914 | |
| | | | | | | | |
| | | | Electronic Equipment & Instruments - 0.1% | |
| | 3,900 | | | 908 Devices, Inc.* | | | 222,105 | |
| | | | | | | | |
| | | | Health Care Distributors - 0.5% | |
| | 41,699 | | | Owens & Minor, Inc. | | | 1,127,958 | |
| | | | | | | | |
| | | | Health Care Equipment - 23.0% | |
| | 68,842 | | | Abbott Laboratories | | | 7,537,511 | |
| | 42,331 | | | Baxter International, Inc. | | | 3,396,639 | |
| | 22,785 | | | Becton Dickinson and Co. | | | 5,701,263 | |
| | 186,437 | | | Boston Scientific Corp.* | | | 6,702,410 | |
| | 35,503 | | | Danaher Corp. | | | 7,886,636 | |
| | 68,996 | | | Edwards Lifesciences Corp.* | | | 6,294,505 | |
| | 21,500 | | | Everest Medicines Ltd.*(1) | | | 187,754 | |
| | 31,195 | | | Hologic, Inc.* | | | 2,271,932 | |
| | 20,230 | | | Integra LifeSciences Holdings Corp.* | | | 1,313,332 | |
| | 5,193 | | | Intuitive Surgical, Inc.* | | | 4,248,393 | |
| | 2,961 | | | Masimo Corp.* | | | 794,673 | |
| | 17,374 | | | NuVasive, Inc.* | | | 978,677 | |
| | 6,212 | | | Penumbra, Inc.*(2) | | | 1,087,100 | |
| | 102,840 | | | Smith & Nephew plc | | | 2,136,241 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Health Care Equipment - 23.0% - (continued) | |
| | 8,345 | | | Teleflex, Inc. | | $ | 3,434,552 | |
| | | | | | | | |
| | | | | | | 53,971,618 | |
| | | | | | | | |
| | | | Health Care Facilities - 3.3% | |
| | 25,933 | | | Acadia Healthcare Co., Inc.* | | | 1,303,392 | |
| | 26,284 | | | Encompass Health Corp. | | | 2,173,424 | |
| | 25,758 | | | HCA Healthcare, Inc. | | | 4,236,161 | |
| | | | | | | | |
| | | | | | | 7,712,977 | |
| | | | | | | | |
| | | | Health Care Services - 1.8% | |
| | 5,497 | | | Amedisys, Inc.* | | | 1,612,435 | |
| | 6,280 | | | LHC Group, Inc.* | | | 1,339,650 | |
| | 49,102 | | | R1 RCM, Inc.* | | | 1,179,430 | |
| | | | | | | | |
| | | | | | | 4,131,515 | |
| | | | | | | | |
| | | | Health Care Supplies - 0.9% | |
| | 418,981 | | | ConvaTec Group plc(1) | | | 1,141,330 | |
| | 5,790 | | | Quidel Corp.* | | | 1,040,174 | |
| | | | | | | | |
| | | | | | | 2,181,504 | |
| | | | | | | | |
| | | | Integrated Telecommunication Services - 0.3% | |
| | 55,400 | | | MedTech Acquisition Corp. UNIT* | | | 581,700 | |
| | 10,882 | | | Therapeutics Acquisition Corp. Class A* | | | 151,804 | |
| | | | | | | | |
| | | | | | | 733,504 | |
| | | | | | | | |
| | | | Life Sciences Tools & Services - 10.7% | | | |
| | 3,688 | | | Bio-Techne Corp. | | | 1,171,124 | |
| | 10,821 | | | ICON plc* | | | 2,109,879 | |
| | 22,324 | | | NanoString Technologies, Inc.* | | | 1,493,029 | |
| | 25,366 | | | NeoGenomics, Inc.* | | | 1,365,705 | |
| | 83,583 | | | PPD, Inc.* | | | 2,860,210 | |
| | 18,017 | | | PRA Health Sciences, Inc.* | | | 2,260,052 | |
| | 2,457 | | | Tecan Group AG | | | 1,205,115 | |
| | 20,918 | | | Thermo Fisher Scientific, Inc. | | | 9,743,186 | |
| | 63,762 | | | WuXi AppTec Co., Ltd. Class H(1) | | | 1,250,833 | |
| | 115,500 | | | Wuxi Biologics Cayman, Inc.*(1) | | | 1,531,684 | |
| | | | | | | | |
| | | | | | | 24,990,817 | |
| | | | | | | | |
| | | | Managed Health Care - 11.6% | | | |
| | 33,837 | | | Centene Corp.* | | | 2,031,235 | |
| | 8,835 | | | Humana, Inc. | | | 3,624,735 | |
| | 5,738 | | | Molina Healthcare, Inc.* | | | 1,220,358 | |
| | 67,500 | | | Notre Dame Intermedica Participacoes S.A. | | | 1,018,049 | |
| | 54,697 | | | UnitedHealth Group, Inc. | | | 19,181,144 | |
| | | | | | | | |
| | | | | | | 27,075,521 | |
| | | | | | | | |
| | | | Pharmaceuticals - 23.9% | | | |
| | 71,743 | | | Amneal Pharmaceuticals, Inc.* | | | 327,866 | |
| | 113,300 | | | Astellas Pharma, Inc. | | | 1,754,310 | |
| | 120,038 | | | AstraZeneca plc ADR | | | 6,000,700 | |
| | 130,193 | | | Bristol-Myers Squibb Co. | | | 8,075,872 | |
| | 101,035 | | | Daiichi Sankyo Co., Ltd. | | | 3,462,487 | |
| | 31,409 | | | Eisai Co., Ltd. | | | 2,246,156 | |
| | 29,994 | | | Elanco Animal Health, Inc.* | | | 919,916 | |
| | 63,541 | | | Eli Lilly & Co. | | | 10,728,262 | |
| | 1,709 | | | Harmony Biosciences Holdings, Inc.* | | | 61,780 | |
| | 6,664 | | | Hikma Pharmaceuticals plc | | | 229,046 | |
| | 14,762 | | | Hutchison China MediTech Ltd. ADR* | | | 472,679 | |
| | 16,905 | | | Laboratorios Farmaceuticos Rovi S.A. | | | 782,711 | |
| | 5,600 | | | Nippon Shinyaku Co., Ltd. | | | 367,583 | |
| | 12,274 | | | Novartis AG | | | 1,155,694 | |
| | 38,476 | | | Ono Pharmaceutical Co., Ltd. | | | 1,159,466 | |
| | 337,552 | | | Pfizer, Inc. | | | 12,425,289 | |
| | 36,276 | | | Revance Therapeutics, Inc.* | | | 1,028,062 | |
| | 5,819 | | | Takeda Pharmaceutical Co., Ltd. | | | 210,586 | |
| | 26,224 | | | Theravance Biopharma, Inc.* | | | 466,000 | |
| | 16,276 | | | UCB S.A. | | | 1,681,268 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Healthcare HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.3% - (continued) | |
| | | | Pharmaceuticals - 23.9% - (continued) | | | |
| | 122,404 | | | Viatris, Inc.* | | $ | 2,293,851 | |
| | | | | | | | |
| | | | | | | 55,849,584 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $153,296,753) | | $ | 227,605,017 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.5% | |
| | | | Repurchase Agreements - 1.8% | | | |
| | 4,263,653 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $4,263,677; collateralized by U.S. Treasury Note at 2.875%, maturing 11/30/2023, with a market value of $4,348,932 | | $ | 4,263,653 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.7% | | | |
| | 1,611,925 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(3) | | | 1,611,925 | |
| | 63,931 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(3) | | | 63,931 | |
| | | | | | | | |
| | | | | | | 1,675,856 | |
| | | | | | | | |
| | | | Total Short-Term Investments
(cost $5,939,509) | | $ | 5,939,509 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $159,236,262) | | | 99.8 | % | | $ | 233,544,526 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 488,668 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 234,033,194 | |
| | | | | | | | | | | | |
| 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, 2020, the aggregate value of these securities was $4,664,683, representing 2.0% of net assets. |
| (2) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (3) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Biotechnology | | $ | 49,607,914 | | | $ | 46,231,662 | | | $ | 3,376,252 | | | $ | — | |
Electronic Equipment & Instruments | | | 222,105 | | | | 222,105 | | | | — | | | | — | |
Health Care Distributors | | | 1,127,958 | | | �� | 1,127,958 | | | | — | | | | — | |
Health Care Equipment | | | 53,971,618 | | | | 51,835,377 | | | | 2,136,241 | | | | — | |
Health Care Facilities | | | 7,712,977 | | | | 7,712,977 | | | | — | | | | — | |
Health Care Services | | | 4,131,515 | | | | 4,131,515 | | | | — | | | | — | |
Health Care Supplies | | | 2,181,504 | | | | 2,181,504 | | | | — | | | | — | |
Integrated Telecommunication Services | | | 733,504 | | | | 733,504 | | | | — | | | | — | |
Life Sciences Tools & Services | | | 24,990,817 | | | | 21,003,185 | | | | 3,987,632 | | | | — | |
Managed Health Care | | | 27,075,521 | | | | 27,075,521 | | | | — | | | | — | |
Pharmaceuticals | | | 55,849,584 | | | | 43,582,988 | | | | 12,266,596 | | | | — | |
Short-Term Investments | | | 5,939,509 | | | | 1,675,856 | | | | 4,263,653 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 233,544,526 | | | $ | 207,514,152 | | | $ | 26,030,374 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, there were no transfers in and out of Level 3. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% | |
| | | | Argentina - 0.6% | |
| | 4,187 | | | MercadoLibre, Inc.* | | $ | 7,014,146 | |
| | | | | | | | |
| | | | Australia - 1.9% | |
| | 845,142 | | | Goodman Group REIT | | | 12,353,840 | |
| | 2,278,344 | | | Sydney Airport* | | | 11,277,392 | |
| | | | | | | | |
| | | | | | | 23,631,232 | |
| | | | | | | | |
| | | | Austria - 0.1% | |
| | 21,113 | | | OMV AG | | | 843,318 | |
| | | | | | | | |
| | | | Belgium - 1.5% | |
| | 178,796 | | | KBC Group N.V.* | | | 12,512,350 | |
| | 65,548 | | | UCB S.A. | | | 6,770,936 | |
| | | | | | | | |
| | | | | | | 19,283,286 | |
| | | | | | | | |
| | | | Brazil - 3.2% | |
| | 692,512 | | | Localiza Rent a Car S.A. | | | 9,192,696 | |
| | 1,245,823 | | | Petroleo Brasileiro S.A. ADR | | | 13,990,592 | |
| | 84,729 | | | StoneCo Ltd. Class A* | | | 7,110,458 | |
| | 239,146 | | | XP, Inc. Class A* | | | 9,486,922 | |
| | | | | | | | |
| | | | | | | 39,780,668 | |
| | | | | | | | |
| | | | Canada - 6.8% | |
| | 355,144 | | | Alimentation Couche-Tard, Inc. Class B | | | 12,103,187 | |
| | 477,004 | | | Brookfield Asset Management, Inc. Class A | | | 19,718,714 | |
| | 228,138 | | | Canadian National Railway Co. | | | 25,081,021 | |
| | 9,612 | | | Constellation Software, Inc. | | | 12,481,630 | |
| | 5,063 | | | Shopify, Inc. Class A* | | | 5,731,063 | |
| | 500,655 | | | Suncor Energy, Inc. | | | 8,397,348 | |
| | 17,877 | | | Topicus.com, Inc.*(1)(2) | | | 519,627 | |
| | | | | | | | |
| | | | | | | 84,032,590 | |
| | | | | | | | |
| | | | Cayman Islands - 0.7% | |
| | 653,780 | | | Wuxi Biologics Cayman, Inc.*(3) | | | 8,669,994 | |
| | | | | | | | |
| | | | China - 12.3% | |
| | 122,222 | | | Alibaba Group Holding Ltd. ADR* | | | 28,444,726 | |
| | 81,000 | | | Alibaba Group Holding Ltd.* | | | 2,355,845 | |
| | 109,400 | | | China International Travel Service Corp. Ltd. Class A | | | 4,735,116 | |
| | 1,193,626 | | | ENN Energy Holdings Ltd. | | | 17,522,072 | |
| | 263,020 | | | Hangzhou Tigermed Consulting Co., Ltd. Class A | | | 6,494,521 | |
| | 91,400 | | | Hangzhou Tigermed Consulting Co., Ltd. Class H*(3) | | | 2,119,678 | |
| | 357,100 | | | Hualan Biological Engineering, Inc. Class A | | | 2,308,782 | |
| | 161,156 | | | Huazhu Group Ltd. ADR | | | 7,256,855 | |
| | 784,500 | | | Longfor Properties Co., Ltd.(3) | | | 4,588,911 | |
| | 85,739 | | | Meituan Dianping Class B* | | | 3,227,512 | |
| | 58,863 | | | New Oriental Education & Technology Group, Inc. ADR* | | | 10,937,334 | |
| | 447,300 | | | Shanghai International Airport Co., Ltd. Class A | | | 5,179,259 | |
| | 158,700 | | | Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class A | | | 10,323,772 | |
| | 55,936 | | | TAL Education Group ADR* | | | 3,999,983 | |
| | 508,765 | | | Tencent Holdings Ltd. | | | 36,607,559 | |
| | 201,625 | | | WuXi AppTec Co., Ltd. Class H(3) | | | 3,955,320 | |
| | 177,000 | | | Yifeng Pharmacy Chain Co., Ltd. Class A | | | 2,443,980 | |
| | | | | | | | |
| | | | | | | 152,501,225 | |
| | | | | | | | |
| | | | Denmark - 2.0% | |
| | 36,438 | | | Ascendis Pharma A/S ADR* | | | 6,077,130 | |
| | 65,261 | | | DSV Panalpina A/S | | | 10,967,878 | |
| | 18,345 | | | Genmab A/S* | | | 7,438,785 | |
| | | | | | | | |
| | | | | | | 24,483,793 | |
| | | | | | | | |
| | | | France - 10.8% | |
| | 50,590 | | | Airbus SE* | | | 5,551,955 | |
| | 380,790 | | | AXA S.A. | | | 9,132,234 | |
| | 258,518 | | | BNP Paribas S.A.* | | | 13,647,732 | |
| | 238,643 | | | Edenred | | | 13,552,831 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| �� | | | France - 10.8% - (continued) | |
| | 12,620 | | | Hermes International | | $ | 13,570,008 | |
| | 55,030 | | | L’Oreal S.A. | | | 20,996,805 | |
| | 97,348 | | | Safran S.A.* | | | 13,797,498 | |
| | 155,668 | | | Schneider Electric SE | | | 22,498,294 | |
| | 3 | | | Total S.A. | | | 130 | |
| | 214,096 | | | Worldline S.A.*(3) | | | 20,799,010 | |
| | | | | | | | |
| | | | | | | 133,546,497 | |
| | | | | | | | |
| | | | Germany - 5.1% | |
| | 53,857 | | | adidas AG* | | | 19,593,431 | |
| | 87,139 | | | Allianz SE | | | 21,407,686 | |
| | 250,329 | | | Infineon Technologies AG | | | 9,559,716 | |
| | 114,621 | | | Zalando SE*(3) | | | 12,749,459 | |
| | | | | | | | |
| | | | | | | 63,310,292 | |
| | | | | | | | |
| | | | Hong Kong - 1.7% | |
| | 889,577 | | | AIA Group Ltd. | | | 10,840,491 | |
| | 580,000 | | | Alibaba Health Information Technology Ltd.* | | | 1,716,809 | |
| | 639,299 | | | Techtronic Industries Co., Ltd. | | | 9,137,770 | |
| | | | | | | | |
| | | | | | | 21,695,070 | |
| | | | | | | | |
| | | | India - 1.6% | |
| | 576,987 | | | HDFC Bank Ltd.* | | | 11,364,613 | |
| | 326,408 | | | Reliance Industries Ltd. | | | 8,881,208 | |
| | | | | | | | |
| | | | | | | 20,245,821 | |
| | | | | | | | |
| | | | Ireland - 2.3% | |
| | 173,077 | | | CRH plc | | | 7,313,196 | |
| | 221,592 | | | Experian plc | | | 8,417,978 | |
| | 68,819 | | | Ryanair Holdings plc ADR* | | | 7,568,714 | |
| | 108,439 | | | Smurfit Kappa Group plc | | | 5,039,330 | |
| | | | | | | | |
| | | | | | | 28,339,218 | |
| | | | | | | | |
| | | | Italy - 1.8% | |
| | 95,005 | | | Ferrari N.V. | | | 22,035,586 | |
| | | | | | | | |
| | | | Japan - 14.5% | |
| | 175,000 | | | Daiichi Sankyo Co., Ltd. | | | 5,997,280 | |
| | 51,625 | | | Daikin Industries Ltd. | | | 11,484,862 | |
| | 75,800 | | | East Japan Railway Co. | | | 5,057,026 | |
| | 22,700 | | | Eisai Co., Ltd. | | | 1,623,348 | |
| | 6,000 | | | Fast Retailing Co., Ltd. | | | 5,380,075 | |
| | 94,700 | | | Hoya Corp. | | | 13,115,458 | |
| | 249,400 | | | Japan Airlines Co., Ltd.* | | | 4,809,507 | |
| | 42,002 | | | Keyence Corp. | | | 23,626,822 | |
| | 1,035 | | | LaSalle Logiport REIT | | | 1,670,163 | |
| | 135,740 | | | Nexon Co., Ltd. | | | 4,188,242 | |
| | 189,000 | | | Nippon Steel Corp.* | | | 2,437,565 | |
| | 14,800 | | | Nitori Holdings Co., Ltd. | | | 3,094,701 | |
| | 69,800 | | | Oriental Land Co., Ltd. | | | 11,533,146 | |
| | 391,615 | | | Recruit Holdings Co., Ltd. | | | 16,448,982 | |
| | 209,800 | | | Sony Corp. | | | 21,141,126 | |
| | 26,987 | | | Sysmex Corp. | | | 3,247,252 | |
| | 108,550 | | | Terumo Corp. | | | 4,542,411 | |
| | 365,846 | | | Tokio Marine Holdings, Inc. | | | 18,848,955 | |
| | 35,900 | | | Tokyo Electron Ltd. | | | 13,410,904 | |
| | 170,900 | | | Unicharm Corp. | | | 8,105,101 | |
| | | | | | | | |
| | | | | | | 179,762,926 | |
| | | | | | | | |
| | | | Luxembourg - 1.0% | |
| | 553,793 | | | ArcelorMittal S.A.* | | | 12,671,443 | |
| | | | | | | | |
| | | | Netherlands - 2.6% | |
| | 23,676 | | | Argenx SE ADR* | | | 6,962,875 | |
| | 51,704 | | | ASML Holding N.V. | | | 25,033,886 | |
| | | | | | | | |
| | | | | | | 31,996,761 | |
| | | | | | | | |
| | | | Peru - 0.5% | |
| | 35,696 | | | Credicorp Ltd. | | | 5,854,858 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford International Opportunities HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.5% - (continued) | |
| | | | Russia - 1.0% | |
| | 621,600 | | | Sberbank of Russia PJSC ADR | | $ | 8,987,228 | |
| | 45,050 | | | Yandex N.V. Class A* | | | 3,134,579 | |
| | | | | | | | |
| | | | | | | 12,121,807 | |
| | | | | | | | |
| | | | | |
| | | | South Korea - 3.0% | |
| | 493,715 | | | Samsung Electronics Co., Ltd. | | | 36,868,399 | |
| | | | | | | | |
| | | | Spain - 2.9% | |
| | 210,818 | | | Cellnex Telecom S.A.(3) | | | 12,660,240 | |
| | 1,603,248 | | | Iberdrola S.A. | | | 23,039,138 | |
| | | | | | | | |
| | | | | | | 35,699,378 | |
| | | | | | | | |
| | | | Sweden - 2.2% | |
| | 291,280 | | | EQT AB | | | 7,393,753 | |
| | 697,534 | | | Sandvik AB* | | | 17,203,669 | |
| | 10,240 | | | Spotify Technology S.A.* | | | 3,222,118 | |
| | | | | | | | |
| | | | | | | 27,819,540 | |
| | | | | | | | |
| | | | Switzerland - 5.8% | |
| | 14,766 | | | Lonza Group AG | | | 9,511,762 | |
| | 202,442 | | | Nestle S.A. | | | 23,930,925 | |
| | 8,620 | | | Partners Group Holding AG | | | 10,128,857 | |
| | 17,976 | | | Roche Holding AG | | | 6,261,013 | |
| | 177,536 | | | TE Connectivity Ltd. | | | 21,494,284 | |
| | | | | | | | |
| | | | | | | 71,326,841 | |
| | | | | | | | |
| | | | Taiwan - 2.9% | |
| | 431,271 | | | MediaTek, Inc. | | | 11,500,821 | |
| | 1,317,806 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 24,929,544 | |
| | | | | | | | |
| | | | | | | 36,430,365 | |
| | | | | | | | |
| | | | United Kingdom - 9.4% | |
| | 612,845 | | | Anglo American plc | | | 20,237,513 | |
| | 203,337 | | | AstraZeneca plc | | | 20,275,397 | |
| | 57,057 | | | Berkeley Group Holdings plc | | | 3,690,878 | |
| | 127,670 | | | Diageo plc | | | 5,051,744 | |
| | 488,455 | | | Intermediate Capital Group plc | | | 11,493,387 | |
| | 148,202 | | | London Stock Exchange Group plc | | | 18,293,537 | |
| | 292,831 | | | Rio Tinto plc | | | 22,042,296 | |
| | 1,229,060 | | | Segro plc REIT | | | 15,947,974 | |
| | | | | | | | |
| | | | | | | 117,032,726 | |
| | | | | | | | |
| | | | United States - 0.3% | |
| | 65,009 | | | Royalty Pharma plc Class A | | | 3,253,701 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $864,117,930) | | $ | 1,220,251,481 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.0% | |
| | | | Repurchase Agreements - 1.0% | |
| | 11,860,183 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $11,860,249; collateralized by U.S. Treasury Bond at 2.875%, maturing 11/15/2046, with a market value of $12,097,418 | | $ | 11,860,183 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $11,860,183) | | $ | 11,860,183 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $875,978,113) | | | 99.5 | % | | $ | 1,232,111,664 | |
| | | | Other Assets and Liabilities | | | 0.5 | % | | | 6,550,846 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,238,662,510 | |
| | | | | | | | | | | | |
| 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) | 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, 2020, the aggregate fair value of this security was $519,627, 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. |
| (2) | Investment valued using significant unobservable inputs. |
| (3) | 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, 2020, the aggregate value of these securities was $65,542,612, representing 5.3% of net assets. |
| † | 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, 2020
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Argentina | | $ | 7,014,146 | | | $ | 7,014,146 | | | $ | — | | | $ | — | |
Australia | | | 23,631,232 | | | | — | | | | 23,631,232 | | | | — | |
Austria | | | 843,318 | | | | — | | | | 843,318 | | | | — | |
Belgium | | | 19,283,286 | | | | — | | | | 19,283,286 | | | | — | |
Brazil | | | 39,780,668 | | | | 39,780,668 | | | | — | | | | — | |
Canada | | | 84,032,590 | | | | 83,512,963 | | | | — | | | | 519,627 | |
Cayman Islands | | | 8,669,994 | | | | — | | | | 8,669,994 | | | | — | |
China | | | 152,501,225 | | | | 50,638,898 | | | | 101,862,327 | | | | — | |
Denmark | | | 24,483,793 | | | | 6,077,130 | | | | 18,406,663 | | | | — | |
France | | | 133,546,497 | | | | — | | | | 133,546,497 | | | | — | |
Germany | | | 63,310,292 | | | | — | | | | 63,310,292 | | | | — | |
Hong Kong | | | 21,695,070 | | | | — | | | | 21,695,070 | | | | — | |
India | | | 20,245,821 | | | | — | | | | 20,245,821 | | | | — | |
Ireland | | | 28,339,218 | | | | 12,608,044 | | | | 15,731,174 | | | | — | |
Italy | | | 22,035,586 | | | | — | | | | 22,035,586 | | | | — | |
Japan | | | 179,762,926 | | | | — | | | | 179,762,926 | | | | — | |
Luxembourg | | | 12,671,443 | | | | 4,744,468 | | | | 7,926,975 | | | | — | |
Netherlands | | | 31,996,761 | | | | 6,962,875 | | | | 25,033,886 | | | | — | |
Peru | | | 5,854,858 | | | | 5,854,858 | | | | — | | | | — | |
Russia | | | 12,121,807 | | | | 3,134,579 | | | | 8,987,228 | | | | — | |
South Korea | | | 36,868,399 | | | | — | | | | 36,868,399 | | | | — | |
Spain | | | 35,699,378 | | | | — | | | | 35,699,378 | | | | — | |
Sweden | | | 27,819,540 | | | | 3,222,118 | | | | 24,597,422 | | | | — | |
Switzerland | | | 71,326,841 | | | | 21,494,284 | | | | 49,832,557 | | | | — | |
Taiwan | | | 36,430,365 | | | | — | | | | 36,430,365 | | | | — | |
United Kingdom | | | 117,032,726 | | | | — | | | | 117,032,726 | | | | — | |
United States | | | 3,253,701 | | | | 3,253,701 | | | | — | | | | — | |
Short-Term Investments | | | 11,860,183 | | | | — | | | | 11,860,183 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,232,111,664 | | | $ | 248,298,732 | | | $ | 983,293,305 | | | $ | 519,627 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, 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 year ended December 31, 2020 is not presented. |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.4% | |
| | | | Banks - 5.0% | |
| | 206,253 | | | Cullen/Frost Bankers, Inc. | | $ | 17,991,449 | |
| | 37,734 | | | First Citizens BancShares, Inc. Class A | | | 21,669,504 | |
| | 212,338 | | | First Republic Bank | | | 31,198,822 | |
| | 167,865 | | | M&T Bank Corp. | | | 21,369,215 | |
| | 289,632 | | | Prosperity Bancshares, Inc. | | | 20,088,876 | |
| | 193,104 | | | South State Corp. | | | 13,961,419 | |
| | | | | | | | |
| | | | | | | 126,279,285 | |
| | | | | | | | |
| | | | Capital Goods - 9.4% | |
| | 108,080 | | | Axon Enterprise, Inc.* | | | 13,243,042 | |
| | 326,691 | | | Fastenal Co. | | | 15,952,322 | |
| | 180,324 | | | Graco, Inc. | | | 13,046,441 | |
| | 112,767 | | | HEICO Corp. Class A | | | 13,200,505 | |
| | 195,677 | | | IDEX Corp. | | | 38,978,859 | |
| | 1,209,529 | | | Ingersoll Rand, Inc.* | | | 55,106,141 | |
| | 121,201 | | | Lennox International, Inc. | | | 33,205,438 | |
| | 231,385 | | | Lincoln Electric Holdings, Inc. | | | 26,898,506 | |
| | 56,860 | | | Middleby Corp.* | | | 7,330,391 | |
| | 82,219 | | | Watsco, Inc. | | | 18,626,715 | |
| | | | | | | | |
| | | | | | | 235,588,360 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 3.9% | |
| | 1,018,649 | | | GFL Environmental, Inc. | | | 29,724,178 | |
| | 531,046 | | | IAA, Inc.* | | | 34,507,369 | |
| | 1,801,557 | | | KAR Auction Services, Inc. | | | 33,526,976 | |
| | | | | | | | |
| | | | | | | 97,758,523 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.7% | |
| | 225,893 | | | Carter’s, Inc. | | | 21,249,755 | |
| | 9,116 | | | NVR, Inc.* | | | 37,192,004 | |
| | 357,326 | | | PVH Corp. | | | 33,549,338 | |
| | 1,081,198 | | | Under Armour, Inc. Class C* | | | 16,088,226 | |
| | 506,881 | | | YETI Holdings, Inc.* | | | 34,706,142 | |
| | | | | | | | |
| | | | | | | 142,785,465 | |
| | | | | | | | |
| | | | Consumer Services - 1.8% | |
| | 313,433 | | | Choice Hotels International, Inc. | | | 33,452,704 | |
| | 164,066 | | | Hyatt Hotels Corp. Class A | | | 12,181,901 | |
| | | | | | | | |
| | | | | | | 45,634,605 | |
| | | | | | | | |
| | | | Diversified Financials - 1.5% | |
| | 80,219 | | | Credit Acceptance Corp.*(1) | | | 27,767,005 | |
| | 142,145 | | | Hamilton Lane, Inc. Class A | | | 11,094,417 | |
| | | | | | | | |
| | | | | | | 38,861,422 | |
| | | | | | | | |
| | | | Energy - 0.1% | |
| | 203,161 | | | Cabot Oil & Gas Corp. | | | 3,307,461 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 0.9% | |
| | 476,254 | | | Performance Food Group Co.* | | | 22,674,453 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 1.2% | |
| | 385,818 | | | Lamb Weston Holdings, Inc. | | | 30,379,309 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.3% | |
| | 120,718 | | | Amedisys, Inc.* | | | 35,410,211 | |
| | 499,270 | | | Encompass Health Corp. | | | 41,284,636 | |
| | 403,663 | | | Hill-Rom Holdings, Inc. | | | 39,546,864 | |
| | 579,865 | | | Integra LifeSciences Holdings Corp.* | | | 37,644,836 | |
| | 134,981 | | | LHC Group, Inc.* | | | 28,794,147 | |
| | 114,817 | | | Molina Healthcare, Inc.* | | | 24,419,280 | |
| | 404,804 | | | NuVasive, Inc.* | | | 22,802,609 | |
| | 74,219 | | | Teleflex, Inc. | | | 30,546,314 | |
| | | | | | | | |
| | | | | | | 260,448,897 | |
| | | | | | | | |
| | | | Insurance - 4.0% | |
| | 19,655 | | | Alleghany Corp. | | | 11,865,527 | |
| | 49,958 | | | Erie Indemnity Co. Class A | | | 12,269,685 | |
| | 432,476 | | | Fidelity National Financial, Inc. | | | 16,905,487 | |
| | 28,326 | | | Markel Corp.* | | | 29,269,256 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.4% - (continued) | |
| | | | Insurance - 4.0% - (continued) | |
| | 17,329 | | | White Mountains Insurance Group Ltd. | | $ | 17,340,437 | |
| | 196,409 | | | WR Berkley Corp. | | | 13,045,485 | |
| | | | | | | | |
| | | | | | | 100,695,877 | |
| | | | | | | | |
| | | | Materials - 1.9% | |
| | 1,257,590 | | | Element Solutions, Inc. | | | 22,297,071 | |
| | 84,999 | | | Packaging Corp. of America | | | 11,722,212 | |
| | 395,794 | | | Silgan Holdings, Inc. | | | 14,676,041 | |
| | | | | | | | |
| | | | | | | 48,695,324 | |
| | | | | | | | |
| | | | Media & Entertainment - 3.2% | |
| | 16,096 | | | Cable One, Inc. | | | 35,857,381 | |
| | 611,067 | | | Cargurus, Inc.* | | | 19,389,156 | |
| | 2,557,823 | | | Zynga, Inc. Class A* | | | 25,245,713 | |
| | | | | | | | |
| | | | | | | 80,492,250 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 9.2% | |
| | 71,162 | | | Allakos, Inc.* | | | 9,962,680 | |
| | 416,595 | | | Apellis Pharmaceuticals, Inc.* | | | 23,829,234 | |
| | 138,288 | | | Arena Pharmaceuticals, Inc.* | | | 10,624,667 | |
| | 434,231 | | | ChemoCentryx, Inc.* | | | 26,887,583 | |
| | 512,914 | | | Iovance Biotherapeutics, Inc.* | | | 23,799,210 | |
| | 96,319 | | | Kodiak Sciences, Inc.* | | | 14,150,224 | |
| | 252,724 | | | PRA Health Sciences, Inc.* | | | 31,701,699 | |
| | 565,473 | | | PTC Therapeutics, Inc.* | | | 34,510,817 | |
| | 213,642 | | | Reata Pharmaceuticals, Inc. Class A* | | | 26,410,424 | |
| | 336,517 | | | Sage Therapeutics, Inc.* | | | 29,112,086 | |
| | 9,707 | | | Syneos Health, Inc.* | | | 661,338 | |
| | | | | | | | |
| | | | | | | 231,649,962 | |
| | | | | | | | |
| | | | Real Estate - 5.7% | |
| | 373,925 | | | Douglas Emmett, Inc. REIT | | | 10,911,131 | |
| | 424,270 | | | Equity Commonwealth REIT | | | 11,574,086 | |
| | 1,584 | | | Gaming and Leisure Properties, Inc. REIT | | | 67,162 | |
| | 199,511 | | | Life Storage, Inc. REIT | | | 23,819,618 | |
| | 62,136 | | | PS Business Parks, Inc. REIT | | | 8,256,010 | |
| | 390,025 | | | Redfin Corp.* | | | 26,767,416 | |
| | 553,443 | | | Rexford Industrial Realty, Inc. REIT | | | 27,179,586 | |
| | 1,059,601 | | | STORE Capital Corp. REIT | | | 36,005,242 | |
| | | | | | | | |
| | | | | | | 144,580,251 | |
| | | | | | | | |
| | | | Retailing - 2.6% | |
| | 191,532 | | | CarMax, Inc.* | | | 18,092,113 | |
| | 260,782 | | | Etsy, Inc.* | | | 46,395,725 | |
| | | | | | | | |
| | | | | | | 64,487,838 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.6% | |
| | 431,077 | | | First Solar, Inc.* | | | 42,642,137 | |
| | 289,758 | | | MKS Instruments, Inc. | | | 43,594,091 | |
| | 233,336 | | | Silicon Laboratories, Inc.* | | | 29,713,006 | |
| | | | | | | | |
| | | | | | | 115,949,234 | |
| | | | | | | | |
| | | | Software & Services - 11.5% | |
| | 145,450 | | | Aspen Technology, Inc.* | | | 18,944,863 | |
| | 135,652 | | | Black Knight, Inc.* | | | 11,984,854 | |
| | 215,682 | | | Blackbaud, Inc. | | | 12,414,656 | |
| | 1,215,571 | | | Genpact Ltd. | | | 50,276,017 | |
| | 239,147 | | | Guidewire Software, Inc.* | | | 30,785,393 | |
| | 243,412 | | | LiveRamp Holdings, Inc.* | | | 17,815,324 | |
| | 232,999 | | | Q2 Holdings, Inc.* | | | 29,481,364 | |
| | 208,822 | | | Science Applications International Corp. | | | 19,762,914 | |
| | 117,151 | | | Shift4 Payments, Inc. Class A* | | | 8,833,185 | |
| | 1,358,911 | | | Teradata Corp.* | | | 30,534,730 | |
| | 283,082 | | | WEX, Inc.* | | | 57,615,679 | |
| | | | | | | | |
| | | | | | | 288,448,979 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 12.5% | |
| | 209,778 | | | CDW Corp. | | | 27,646,642 | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.4% - (continued) | |
| | | | Technology Hardware & Equipment - 12.5% - (continued) | |
| | 253,335 | | | Coherent, Inc.* | | $ | 38,005,317 | |
| | 2,780,876 | | | CommScope Holding Co., Inc.* | | | 37,263,738 | |
| | 259,018 | | | F5 Networks, Inc.* | | | 45,571,627 | |
| | 2,283,717 | | | Flex Ltd.* | | | 41,061,232 | |
| | 819,676 | | | II-VI, Inc.* | | | 62,262,589 | |
| | 430,999 | | | Lumentum Holdings, Inc.* | | | 40,858,705 | |
| | 474,370 | | | National Instruments Corp. | | | 20,843,818 | |
| | | | | | | | |
| | | | | | | 313,513,668 | |
| | | | | | | | |
| | | | Transportation - 2.2% | |
| | 50,495 | | | AMERCO | | | 22,922,710 | |
| | 744,922 | | | Knight-Swift Transportation Holdings, Inc. | | | 31,152,638 | |
| | | | | | | | |
| | | | | | | 54,075,348 | |
| | | | | | | | |
| | | | Utilities - 2.2% | |
| | 258,472 | | | Black Hills Corp. | | | 15,883,105 | |
| | 296,634 | | | NiSource, Inc. | | | 6,804,784 | |
| | 950,518 | | | UGI Corp. | | | 33,230,109 | |
| | | | | | | | |
| | | | | | | 55,917,998 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $1,745,810,334) | | $ | 2,502,224,509 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.0% | |
| | | | Repurchase Agreements - 0.4% | |
| | 10,234,572 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $10,234,629; collateralized by U.S. Treasury Bond at 4.375%, maturing 11/15/2029, with a market value of $10,439,398 | | $ | 10,234,572 | |
| | | | | | | | |
| | | | Securities Lending Collateral - 0.6% | |
| | 15,416,633 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(2) | | | 15,416,633 | |
| | 611,437 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2) | | | 611,437 | |
| | | | | | | | |
| | | | | | | 16,028,070 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $26,262,642) | | $ | 26,262,642 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $1,772,072,976) | | | 100.4 | % | | $ | 2,528,487,151 | |
| | | | Other Assets and Liabilities | | | (0.4 | )% | | | (10,535,872 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 2,517,951,279 | |
| | | | | | | �� | | | | | |
| 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, 2020
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 126,279,285 | | | $ | 126,279,285 | | | $ | — | | | $ | — | |
Capital Goods | | | 235,588,360 | | | | 235,588,360 | | | | — | | | | — | |
Commercial & Professional Services | | | 97,758,523 | | | | 97,758,523 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 142,785,465 | | | | 142,785,465 | | | | — | | | | — | |
Consumer Services | | | 45,634,605 | | | | 45,634,605 | | | | — | | | | — | |
Diversified Financials | | | 38,861,422 | | | | 38,861,422 | | | | — | | | | — | |
Energy | | | 3,307,461 | | | | 3,307,461 | | | | — | | | | — | |
Food & Staples Retailing | | | 22,674,453 | | | | 22,674,453 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 30,379,309 | | | | 30,379,309 | | | | — | | | | — | |
Health Care Equipment & Services | | | 260,448,897 | | | | 260,448,897 | | | | — | | | | — | |
Insurance | | | 100,695,877 | | | | 100,695,877 | | | | — | | | | — | |
Materials | | | 48,695,324 | | | | 48,695,324 | | | | — | | | | — | |
Media & Entertainment | | | 80,492,250 | | | | 80,492,250 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 231,649,962 | | | | 231,649,962 | | | | — | | | | — | |
Real Estate | | | 144,580,251 | | | | 144,580,251 | | | | — | | | | — | |
Retailing | | | 64,487,838 | | | | 64,487,838 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 115,949,234 | | | | 115,949,234 | | | | — | | | | — | |
Software & Services | | | 288,448,979 | | | | 288,448,979 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 313,513,668 | | | | 313,513,668 | | | | — | | | | — | |
Transportation | | | 54,075,348 | | | | 54,075,348 | | | | — | | | | — | |
Utilities | | | 55,917,998 | | | | 55,917,998 | | | | — | | | | — | |
Short-Term Investments | | | 26,262,642 | | | | 16,028,070 | | | | 10,234,572 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,528,487,151 | | | $ | 2,518,252,579 | | | $ | 10,234,572 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, 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, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.5% | |
| | | | Automobiles & Components - 2.5% | |
| | 104,103 | | | Fox Factory Holding Corp.* | | $ | 11,004,728 | |
| | 156,724 | | | Patrick Industries, Inc. | | | 10,712,086 | |
| | 146,700 | | | Thor Industries, Inc. | | | 13,641,633 | |
| | | | | | | | |
| | | | | | | 35,358,447 | |
| | | | | | | | |
| | | | Banks - 2.1% | |
| | 715,981 | | | MGIC Investment Corp. | | | 8,985,561 | |
| | 196,986 | | | Synovus Financial Corp. | | | 6,376,437 | |
| | 163,980 | | | Triumph Bancorp, Inc.* | | | 7,961,229 | |
| | 111,998 | | | Western Alliance Bancorp | | | 6,714,280 | |
| | | | | | | | |
| | | | | | | 30,037,507 | |
| | | | | | | | |
| | | | Capital Goods - 10.5% | |
| | 182,182 | | | Aerojet Rocketdyne Holdings, Inc.* | | | 9,628,319 | |
| | 110,101 | | | Altra Industrial Motion Corp. | | | 6,102,898 | |
| | 117,622 | | | Applied Industrial Technologies, Inc. | | | 9,173,340 | |
| | 59,519 | | | Armstrong World Industries, Inc. | | | 4,427,618 | |
| | 52,562 | | | Axon Enterprise, Inc.* | | | 6,440,422 | |
| | 111,821 | | | Bloom Energy Corp. Class A* | | | 3,204,790 | |
| | 157,804 | | | Boise Cascade Co. | | | 7,543,031 | |
| | 224,616 | | | Builders FirstSource, Inc.* | | | 9,166,579 | |
| | 155,809 | | | BWX Technologies, Inc. | | | 9,392,167 | |
| | 60,359 | | | Curtiss-Wright Corp. | | | 7,022,770 | |
| | 87,478 | | | EnerSys | | | 7,265,923 | |
| | 149,354 | | | FuelCell Energy, Inc.*(1) | | | 1,668,284 | |
| | 122,765 | | | ITT, Inc. | | | 9,455,360 | |
| | 102,786 | | | John Bean Technologies Corp. | | | 11,704,242 | |
| | 78,541 | | | Mercury Systems, Inc.* | | | 6,916,320 | |
| | 202,034 | | | Plug Power, Inc.* | | | 6,850,973 | |
| | 222,043 | | | Rexnord Corp. | | | 8,768,478 | |
| | 169,145 | | | SPX Corp.* | | | 9,225,168 | |
| | 155,826 | | | SPX FLOW, Inc.* | | | 9,031,675 | |
| | 82,411 | | | Trex Co., Inc.* | | | 6,899,449 | |
| | | | | | | | |
| | | | | | | 149,887,806 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 3.4% | |
| | 131,250 | | | ASGN, Inc.* | | | 10,963,313 | |
| | 102,393 | | | Clean Harbors, Inc.* | | | 7,792,107 | |
| | 112,408 | | | Exponent, Inc. | | | 10,120,092 | |
| | 98,283 | | | Insperity, Inc. | | | 8,002,202 | |
| | 105,995 | | | Tetra Tech, Inc. | | | 12,272,101 | |
| | | | | | | | |
| | | | | | | 49,149,815 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 5.8% | |
| | 52,152 | | | Deckers Outdoor Corp.* | | | 14,956,151 | |
| | 140,895 | | | PVH Corp. | | | 13,228,632 | |
| | 320,620 | | | Smith & Wesson Brands, Inc. | | | 5,691,005 | |
| | 96,892 | | | TopBuild Corp.* | | | 17,835,879 | |
| | 657,863 | | | Under Armour, Inc. Class C* | | | 9,789,001 | |
| | 259,076 | | | Wolverine World Wide, Inc. | | | 8,096,125 | |
| | 186,092 | | | YETI Holdings, Inc.* | | | 12,741,719 | |
| | | | | | | | |
| | | | | | | 82,338,512 | |
| | | | | | | | |
| | | | Consumer Services - 3.1% | |
| | 92,284 | | | BJ’s Restaurants, Inc. | | | 3,552,011 | |
| | 67,017 | | | Churchill Downs, Inc. | | | 13,054,241 | |
| | 200,127 | | | Penn National Gaming, Inc.* | | | 17,284,969 | |
| | 82,314 | | | Wingstop, Inc. | | | 10,910,721 | |
| | | | | | | | |
| | | | | | | 44,801,942 | |
| | | | | | | | |
| | | | Diversified Financials - 2.2% | |
| | 183,904 | | | OneMain Holdings, Inc. | | | 8,856,817 | |
| | 754,398 | | | SLM Corp. | | | 9,346,991 | |
| | 116,700 | | | StepStone Group, Inc. Class A* | | | 4,644,660 | |
| | 167,919 | | | Stifel Financial Corp. | | | 8,473,193 | |
| | | | | | | | |
| | | | | | | 31,321,661 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.5% - (continued) | |
| | | | Food & Staples Retailing - 0.9% | |
| | 269,579 | | | Performance Food Group Co.* | | $ | 12,834,656 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 2.2% | |
| | 96,206 | | | Freshpet, Inc.* | | | 13,660,290 | |
| | 548,777 | | | Hostess Brands, Inc.* | | | 8,034,095 | |
| | 291,388 | | | Simply Good Foods Co.* | | | 9,137,928 | |
| | | | | | | | |
| | | | | | | 30,832,313 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 12.0% | |
| | 70,066 | | | Addus HomeCare Corp.* | | | 8,204,028 | |
| | 28,681 | | | Amedisys, Inc.* | | | 8,412,998 | |
| | 140,763 | | | AtriCure, Inc.* | | | 7,836,276 | |
| | 137,536 | | | Cardiovascular Systems, Inc.* | | | 6,018,575 | |
| | 86,124 | | | Glaukos Corp.* | | | 6,481,692 | |
| | 167,090 | | | Globus Medical, Inc. Class A* | | | 10,897,610 | |
| | 202,588 | | | Health Catalyst, Inc.* | | | 8,818,656 | |
| | 252,801 | | | HMS Holdings Corp.* | | | 9,290,437 | |
| | 16,845 | | | ICU Medical, Inc.* | | | 3,613,084 | |
| | 127,958 | | | Integer Holdings Corp.* | | | 10,388,910 | |
| | 181,639 | | | Integra LifeSciences Holdings Corp.* | | | 11,792,004 | |
| | 35,029 | | | iRhythm Technologies, Inc.* | | | 8,309,229 | |
| | 54,643 | | | LHC Group, Inc.* | | | 11,656,445 | |
| | 156,568 | | | Omnicell, Inc.* | | | 18,791,291 | |
| | 311,622 | | | OraSure Technologies, Inc.* | | | 3,298,519 | |
| | 95,396 | | | Providence Service Corp.* | | | 13,224,748 | |
| | 641,967 | | | R1 RCM, Inc.* | | | 15,420,047 | |
| | 92,008 | | | Tandem Diabetes Care, Inc.* | | | 8,803,325 | |
| | | | | | | | |
| | | | | | | 171,257,874 | |
| | | | | | | | |
| | | | Household & Personal Products - 0.5% | |
| | 310,007 | | | BellRing Brands, Inc. Class A* | | | 7,536,270 | |
| | | | | | | | |
| | | | Insurance - 1.1% | |
| | 170,427 | | | James River Group Holdings Ltd. | | | 8,376,487 | |
| | 93,947 | | | Kemper Corp. | | | 7,217,948 | |
| | | | | | | | |
| | | | | | | 15,594,435 | |
| | | | | | | | |
| | | | Materials - 2.1% | |
| | 286,276 | | | Axalta Coating Systems Ltd.* | | | 8,173,180 | |
| | 234,718 | | | Graphic Packaging Holding Co. | | | 3,976,123 | |
| | 103,822 | | | Ingevity Corp.* | | | 7,862,440 | |
| | 272,749 | | | Louisiana-Pacific Corp. | | | 10,138,080 | |
| | | | | | | | |
| | | | | | | 30,149,823 | |
| | | | | | | | |
| | | | Media & Entertainment - 1.5% | |
| | 121,997 | | | Cardlytics, Inc.* | | | 17,417,511 | |
| | 140,853 | | | Cargurus, Inc.* | | | 4,469,266 | |
| | | | | | | | |
| | | | | | | 21,886,777 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 21.5% | |
| | 419,657 | | | Adverum Biotechnologies, Inc.* | | | 4,549,082 | |
| | 820,204 | | | Akebia Therapeutics, Inc.* | | | 2,296,571 | |
| | 19,802 | | | Akero Therapeutics, Inc.* | | | 510,892 | |
| | 71,613 | | | Allakos, Inc.* | | | 10,025,820 | |
| | 71,005 | | | ALX Oncology Holdings, Inc.* | | | 6,120,631 | |
| | 516,119 | | | Amicus Therapeutics, Inc.* | | | 11,917,188 | |
| | 182,171 | | | Apellis Pharmaceuticals, Inc.* | | | 10,420,181 | |
| | 84,943 | | | Arena Pharmaceuticals, Inc.* | | | 6,526,171 | |
| | 99,819 | | | Arrowhead Pharmaceuticals, Inc.* | | | 7,659,112 | |
| | 45,171 | | | Arvinas, Inc.* | | | 3,836,373 | |
| | 17,200 | | | BioAtla, Inc.* | | | 584,972 | |
| | 104,684 | | | Biohaven Pharmaceutical Holding Co., Ltd.* | | | 8,972,466 | |
| | 136,317 | | | ChemoCentryx, Inc.* | | | 8,440,749 | |
| | 192,525 | | | Constellation Pharmaceuticals, Inc.* | | | 5,544,720 | |
| | 280,035 | | | Dicerna Pharmaceuticals, Inc.* | | | 6,169,171 | |
| | 158,240 | | | Dyne Therapeutics, Inc.* | | | 3,323,040 | |
| | 51,061 | | | Fate Therapeutics, Inc.* | | | 4,642,977 | |
| | 112,323 | | | Five Prime Therapeutics, Inc.* | | | 1,910,614 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.5% - (continued) | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 21.5% - (continued) | |
| | 388,140 | | | Heron Therapeutics, Inc.* | | $ | 8,214,983 | |
| | 321,641 | | | Homology Medicines, Inc.* | | | 3,631,327 | |
| | 751,284 | | | ImmunoGen, Inc.* | | | 4,845,782 | |
| | 382,350 | | | Karyopharm Therapeutics, Inc.*(1) | | | 5,918,778 | |
| | 77,668 | | | Kodiak Sciences, Inc.* | | | 11,410,206 | |
| | 204,910 | | | Kura Oncology, Inc.* | | | 6,692,361 | |
| | 75,126 | | | Kymera Therapeutics, Inc.* | | | 4,657,812 | |
| | 56,799 | | | Madrigal Pharmaceuticals, Inc.* | | | 6,314,345 | |
| | 238,210 | | | Mersana Therapeutics, Inc.* | | | 6,338,768 | |
| | 62,176 | | | Mirati Therapeutics, Inc.* | | | 13,656,337 | |
| | 151,862 | | | NanoString Technologies, Inc.* | | | 10,156,530 | |
| | 96,094 | | | NeoGenomics, Inc.* | | | 5,173,701 | |
| | 69,486 | | | Nkarta, Inc.*(1) | | | 4,271,304 | |
| | 43,739 | | | Novavax, Inc.*(1) | | | 4,877,336 | |
| | 98,482 | | | Pacira BioSciences, Inc.* | | | 5,893,163 | |
| | 146,541 | | | PTC Therapeutics, Inc.* | | | 8,943,397 | |
| | 321,285 | | | Radius Health, Inc.* | | | 5,738,150 | |
| | 155,564 | | | RAPT Therapeutics, Inc.* | | | 3,072,389 | |
| | 29,482 | | | Reata Pharmaceuticals, Inc. Class A* | | | 3,644,565 | |
| | 248,622 | | | Revance Therapeutics, Inc.* | | | 7,045,947 | |
| | 207,428 | | | Rhythm Pharmaceuticals, Inc.* | | | 6,166,834 | |
| | 98,584 | | | Rocket Pharmaceuticals, Inc.* | | | 5,406,346 | |
| | 113,720 | | | Syndax Pharmaceuticals, Inc.* | | | 2,529,133 | |
| | 192,100 | | | TCR2 Therapeutics, Inc.* | | | 5,941,653 | |
| | 229,503 | | | TG Therapeutics, Inc.* | | | 11,938,746 | |
| | 329,021 | | | Theravance Biopharma, Inc.*(1) | | | 5,846,703 | |
| | 80,240 | | | Turning Point Therapeutics, Inc.* | | | 9,777,244 | |
| | 72,065 | | | Ultragenyx Pharmaceutical, Inc.* | | | 9,975,958 | |
| | 158,001 | | | Veracyte, Inc.* | | | 7,732,569 | |
| | 143,061 | | | Y-mAbs Therapeutics, Inc.* | | | 7,082,950 | |
| | | | | | | | |
| | | | | | | 306,346,047 | |
| | | | | | | | |
| | | | Real Estate - 3.1% | |
| | 325,538 | | | Columbia Property Trust, Inc. REIT | | | 4,668,215 | |
| | 51,125 | | | Coresite Realty Corp. REIT | | | 6,404,940 | |
| | 204,801 | | | Corporate Office Properties Trust REIT | | | 5,341,210 | |
| | 331,820 | | | Essential Properties Realty Trust, Inc. REIT | | | 7,034,584 | |
| | 543,341 | | | Independence Realty Trust, Inc. REIT | | | 7,297,070 | |
| | 212,917 | | | JBG SMITH Properties REIT | | | 6,657,915 | |
| | 49,920 | | | PS Business Parks, Inc. REIT | | | 6,632,870 | |
| | | | | | | | |
| | | | | | | 44,036,804 | |
| | | | | | | | |
| | | | Retailing - 2.6% | |
| | 122,655 | | | Floor & Decor Holdings, Inc. Class A* | | | 11,388,517 | |
| | 213,713 | | | Foot Locker, Inc. | | | 8,642,553 | |
| | 29,540 | | | Lithia Motors, Inc. Class A | | | 8,645,472 | |
| | 94,096 | | | Shutterstock, Inc. | | | 6,746,683 | |
| | 9,800 | | | Stamps.com, Inc.* | | | 1,922,662 | |
| | | | | | | | |
| | | | | | | 37,345,887 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 4.6% | |
| | 265,929 | | | Axcelis Technologies, Inc.* | | | 7,743,852 | |
| | 102,251 | | | Cirrus Logic, Inc.* | | | 8,405,032 | |
| | 150,321 | | | Cohu, Inc. | | | 5,739,256 | |
| | 90,130 | | | First Solar, Inc.* | | | 8,915,660 | |
| | 270,762 | | | FormFactor, Inc.* | | | 11,648,181 | |
| | 144,624 | | | Power Integrations, Inc. | | | 11,838,921 | |
| | 113,125 | | | Synaptics, Inc.* | | | 10,905,250 | |
| | | | | | | | |
| | | | | | | 65,196,152 | |
| | | | | | | | |
| | | | Software & Services - 15.2% | |
| | 130,425 | | | Alarm.com Holdings, Inc.* | | | 13,492,466 | |
| | 113,441 | | | Blackbaud, Inc. | | | 6,529,664 | |
| | 45,834 | | | CACI International, Inc. Class A* | | | 11,427,791 | |
| | 169,249 | | | Digital Turbine, Inc.* | | | 9,572,723 | |
| | 58,643 | | | Everbridge, Inc.* | | | 8,741,912 | |
| | 115,562 | | | ExlService Holdings, Inc.* | | | 9,837,793 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 99.5% - (continued) | |
| | | | Software & Services - 15.2% - (continued) | |
| | 54,551 | | | Five9, Inc.* | | $ | 9,513,694 | |
| | 140,089 | | | LiveRamp Holdings, Inc.* | | | 10,253,114 | |
| | 76,278 | | | Manhattan Associates, Inc.* | | | 8,022,920 | |
| | 249,685 | | | Medallia, Inc.* | | | 8,294,536 | |
| | 182,890 | | | Mimecast Ltd.* | | | 10,395,468 | |
| | 34,102 | | | Paylocity Holding Corp.* | | | 7,021,943 | |
| | 48,016 | | | Pegasystems, Inc. | | | 6,398,612 | |
| | 221,203 | | | Perficient, Inc.* | | | 10,540,323 | |
| | 102,106 | | | Q2 Holdings, Inc.* | | | 12,919,472 | |
| | 167,061 | | | Rapid7, Inc.* | | | 15,062,220 | |
| | 276,727 | | | Repay Holdings Corp.* | | | 7,540,811 | |
| | 97,002 | | | Science Applications International Corp. | | | 9,180,269 | |
| | 178,112 | | | Sprout Social, Inc. Class A* | | | 8,088,066 | |
| | 376,958 | | | SVMK, Inc.* | | | 9,631,277 | |
| | 64,609 | | | Varonis Systems, Inc.* | | | 10,570,678 | |
| | 962,761 | | | Verra Mobility Corp.* | | | 12,920,253 | |
| | | | | | | | |
| | | | | | | 215,956,005 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 1.9% | |
| | 231,282 | | | CTS Corp. | | | 7,939,911 | |
| | 133,129 | | | Insight Enterprises, Inc.* | | | 10,129,786 | |
| | 99,984 | | | Lumentum Holdings, Inc.* | | | 9,478,483 | |
| | | | | | | | |
| | | | | | | 27,548,180 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.3% | |
| | 25,420 | | | Bandwidth, Inc. Class A* | | | 3,906,291 | |
| | | | | | | | |
| | | | Transportation - 0.4% | |
| | 308,863 | | | Marten Transport Ltd. | | | 5,321,710 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $908,825,112) | | $ | 1,418,644,914 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 0.8% | |
| | | | Securities Lending Collateral - 0.8% | |
| | 10,782,389 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(2) | | $ | 10,782,389 | |
| | 427,639 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(2) | | | 427,639 | |
| | | | | | | | |
| | | | | | | 11,210,028 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $11,210,028) | | $ | 11,210,028 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $920,035,140) | | | 100.3 | % | | $ | 1,429,854,942 | |
| | | | Other Assets and Liabilities | | | (0.3 | )% | | | (4,809,960 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,425,044,982 | |
| | | | | | | | | | | | |
| 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. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Cap Growth HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| (2) | Current yield as of period end. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 35,358,447 | | | $ | 35,358,447 | | | $ | — | | | $ | — | |
Banks | | | 30,037,507 | | | | 30,037,507 | | | | — | | | | — | |
Capital Goods | | | 149,887,806 | | | | 149,887,806 | | | | — | | | | — | |
Commercial & Professional Services | | | 49,149,815 | | | | 49,149,815 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 82,338,512 | | | | 82,338,512 | | | | — | | | | — | |
Consumer Services | | | 44,801,942 | | | | 44,801,942 | | | | — | | | | — | |
Diversified Financials | | | 31,321,661 | | | | 31,321,661 | | | | — | | | | — | |
Food & Staples Retailing | | | 12,834,656 | | | | 12,834,656 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 30,832,313 | | | | 30,832,313 | | | | — | | | | — | |
Health Care Equipment & Services | | | 171,257,874 | | | | 171,257,874 | | | | — | | | | — | |
Household & Personal Products | | | 7,536,270 | | | | 7,536,270 | | | | — | | | | — | |
Insurance | | | 15,594,435 | | | | 15,594,435 | | | | — | | | | — | |
Materials | | | 30,149,823 | | | | 30,149,823 | | | | — | | | | — | |
Media & Entertainment | | | 21,886,777 | | | | 21,886,777 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 306,346,047 | | | | 306,346,047 | | | | — | | | | — | |
Real Estate | | | 44,036,804 | | | | 44,036,804 | | | | — | | | | — | |
Retailing | | | 37,345,887 | | | | 37,345,887 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 65,196,152 | | | | 65,196,152 | | | | — | | | | — | |
Software & Services | | | 215,956,005 | | | | 215,956,005 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 27,548,180 | | | | 27,548,180 | | | | — | | | | — | |
Telecommunication Services | | | 3,906,291 | | | | 3,906,291 | | | | — | | | | — | |
Transportation | | | 5,321,710 | | | | 5,321,710 | | | | — | | | | — | |
Short-Term Investments | | | 11,210,028 | | | | 11,210,028 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,429,854,942 | | | $ | 1,429,854,942 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, 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, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.0% | |
| | | | Automobiles & Components - 1.8% | |
| | 52,264 | | | Fox Factory Holding Corp.* | | $ | 5,524,827 | |
| | 58,939 | | | Thor Industries, Inc. | | | 5,480,738 | |
| | | | | | | | |
| | | | | | | 11,005,565 | |
| | | | | | | | |
| | | | Banks - 2.1% | |
| | 326,451 | | | Sterling Bancorp | | | 5,869,589 | |
| | 118,934 | | | Western Alliance Bancorp | | | 7,130,093 | |
| | | | | | | | |
| | | | | | | 12,999,682 | |
| | | | | | | | |
| | | | Capital Goods - 11.1% | |
| | 42,760 | | | Applied Industrial Technologies, Inc. | | | 3,334,853 | |
| | 82,141 | | | Argan, Inc. | | | 3,654,453 | |
| | 33,868 | | | Axon Enterprise, Inc.* | | | 4,149,846 | |
| | 108,577 | | | BMC Stock Holdings, Inc.* | | | 5,828,413 | |
| | 65,326 | | | Comfort Systems USA, Inc. | | | 3,440,067 | |
| | 82,002 | | | Curtiss-Wright Corp. | | | 9,540,933 | |
| | 50,549 | | | Gibraltar Industries, Inc.* | | | 3,636,495 | |
| | 86,903 | | | ITT, Inc. | | | 6,693,269 | |
| | 171,600 | | | Kennametal, Inc. | | | 6,218,784 | |
| | 72,618 | | | Kornit Digital Ltd.* | | | 6,472,442 | |
| | 80,269 | | | Plug Power, Inc.* | | | 2,721,922 | |
| | 149,900 | | | Rexnord Corp. | | | 5,919,551 | |
| | 145,423 | | | Rush Enterprises, Inc. Class A | | | 6,023,421 | |
| | | | | | | | |
| | | | | | | 67,634,449 | |
| | | | | | | | |
| | | | Commercial & Professional Services - 1.8% | |
| | 36,696 | | | Tetra Tech, Inc. | | | 4,248,663 | |
| | 85,336 | | | TriNet Group, Inc.* | | | 6,878,082 | |
| | | | | | | | |
| | | | | | | 11,126,745 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 4.9% | |
| | 30,510 | | | Cavco Industries, Inc.* | | | 5,352,979 | |
| | 84,070 | | | Century Communities, Inc.* | | | 3,680,585 | |
| | 47,629 | | | Polaris, Inc. | | | 4,538,091 | |
| | 174,775 | | | Skyline Champion Corp.* | | | 5,407,538 | |
| | 211,427 | | | Wolverine World Wide, Inc. | | | 6,607,094 | |
| | 65,270 | | | YETI Holdings, Inc.* | | | 4,469,037 | |
| | | | | | | | |
| | | | | | | 30,055,324 | |
| | | | | | | | |
| | | | Consumer Services - 5.3% | |
| | 157,286 | | | Chegg, Inc.* | | | 14,207,644 | |
| | 103,558 | | | GAN Ltd.*(1) | | | 2,100,156 | |
| | 113,797 | | | Penn National Gaming, Inc.* | | | 9,828,647 | |
| | 80,293 | | | Planet Fitness, Inc. Class A* | | | 6,233,146 | |
| | | | | | | | |
| | | | | | | 32,369,593 | |
| | | | | | | | |
| | | | Diversified Financials - 2.7% | |
| | 89,917 | | | Ares Management Corp. Class A | | | 4,230,595 | |
| | 28,910 | | | Hamilton Lane, Inc. Class A | | | 2,256,425 | |
| | 75,006 | | | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | | | 4,757,631 | |
| | 134,705 | | | PRA Group, Inc.* | | | 5,342,400 | |
| | | | | | | | |
| | | | | | | 16,587,051 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 0.8% | |
| | 4,896 | | | Boston Beer Co., Inc. Class A* | | | 4,868,044 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 9.9% | |
| | 125,906 | | | 1Life Healthcare, Inc.* | | | 5,495,797 | |
| | 38,477 | | | Addus HomeCare Corp.* | | | 4,505,272 | |
| | 127,868 | | | Globus Medical, Inc. Class A* | | | 8,339,551 | |
| | 130,852 | | | Health Catalyst, Inc.* | | | 5,695,988 | |
| | 54,605 | | | Hill-Rom Holdings, Inc. | | | 5,349,652 | |
| | 21,320 | | | Insulet Corp.* | | | 5,450,032 | |
| | 59,300 | | | Integra LifeSciences Holdings Corp.* | | | 3,849,756 | |
| | 26,992 | | | LHC Group, Inc.* | | | 5,757,933 | |
| | 725,165 | | | Multiplan Corp.*(1) | | | 5,794,068 | |
| | 38,519 | | | Omnicell, Inc.* | | | 4,623,050 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.0% - (continued) | |
| | | | Health Care Equipment & Services - 9.9% - (continued) | |
| | 57,433 | | | Tandem Diabetes Care, Inc.* | | $ | 5,495,189 | |
| | | | | | | | |
| | | | | | | 60,356,288 | |
| | | | | | | | |
| | | | Insurance - 0.8% | |
| | 92,547 | | | James River Group Holdings Ltd. | | | 4,548,685 | |
| | | | | | | | |
| | | | Materials - 1.0% | |
| | 77,375 | | | Ingevity Corp.* | | | 5,859,609 | |
| | | | | | | | |
| | | | Media & Entertainment - 2.1% | |
| | 54,037 | | | Cardlytics, Inc.* | | | 7,714,863 | |
| | 261,982 | | | Skillz, Inc.* | | | 5,239,640 | |
| | | | | | | | |
| | | | | | | 12,954,503 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 19.6% | |
| | 26,847 | | | Acceleron Pharma, Inc.* | | | 3,434,805 | |
| | 37,137 | | | Allakos, Inc.* | | | 5,199,180 | |
| | 71,249 | | | ALX Oncology Holdings, Inc.*(1) | | | 6,141,664 | |
| | 293,053 | | | Amicus Therapeutics, Inc.* | | | 6,766,594 | |
| | 58,857 | | | Apellis Pharmaceuticals, Inc.* | | | 3,366,620 | |
| | 38,790 | | | Arena Pharmaceuticals, Inc.* | | | 2,980,236 | |
| | 27,080 | | | Ascendis Pharma A/S ADR* | | | 4,516,402 | |
| | 33,561 | | | Blueprint Medicines Corp.* | | | 3,763,866 | |
| | 47,299 | | | ChemoCentryx, Inc.* | | | 2,928,754 | |
| | 82,122 | | | Constellation Pharmaceuticals, Inc.* | | | 2,365,114 | |
| | 115,791 | | | Five Prime Therapeutics, Inc.* | | | 1,969,605 | |
| | 116,875 | | | Freeline Therapeutics Holdings plc ADR* | | | 2,134,137 | |
| | 50,414 | | | Global Blood Therapeutics, Inc.* | | | 2,183,430 | |
| | 226,298 | | | Heron Therapeutics, Inc.* | | | 4,789,597 | |
| | 458,162 | | | ImmunoGen, Inc.* | | | 2,955,145 | |
| | 82,266 | | | Iovance Biotherapeutics, Inc.* | | | 3,817,142 | |
| | 58,096 | | | Kodiak Sciences, Inc.* | | | 8,534,883 | |
| | 57,577 | | | Kura Oncology, Inc.* | | | 1,880,465 | |
| | 105,488 | | | Mersana Therapeutics, Inc.* | | | 2,807,036 | |
| | 30,944 | | | Mirati Therapeutics, Inc.* | | | 6,796,540 | |
| | 69,855 | | | NanoString Technologies, Inc.* | | | 4,671,902 | |
| | 95,605 | | | NeoGenomics, Inc.* | | | 5,147,373 | |
| | 74,565 | | | PTC Therapeutics, Inc.* | | | 4,550,702 | |
| | 46,694 | | | RAPT Therapeutics, Inc.* | | | 922,206 | |
| | 13,572 | | | Reata Pharmaceuticals, Inc. Class A* | | | 1,677,771 | |
| | 58,355 | | | Revance Therapeutics, Inc.* | | | 1,653,781 | |
| | 50,627 | | | Rocket Pharmaceuticals, Inc.* | | | 2,776,385 | |
| | 135,532 | | | TG Therapeutics, Inc.* | | | 7,050,375 | |
| | 45,041 | | | Turning Point Therapeutics, Inc.* | | | 5,488,246 | |
| | 135,779 | | | UroGen Pharma Ltd.*(1) | | | 2,446,738 | |
| | 74,378 | | | Y-mAbs Therapeutics, Inc.* | | | 3,682,455 | |
| | | | | | | | |
| | | | | | | 119,399,149 | |
| | | | | | | | |
| | | | Real Estate - 1.8% | |
| | 237,181 | | | Essential Properties Realty Trust, Inc. REIT | | | 5,028,237 | |
| | 20,050 | | | Redfin Corp.* | | | 1,376,032 | |
| | 283,425 | | | Xenia Hotels & Resorts, Inc. REIT | | | 4,308,060 | |
| | | | | | | | |
| | | | | | | 10,712,329 | |
| | | | | | | | |
| | | | Retailing - 5.4% | |
| | 5,016,400 | | | Allstar Co.(2)(3)(4) | | | 5,969,516 | |
| | 50,360 | | | Five Below, Inc.* | | | 8,811,993 | |
| | 97,796 | | | Floor & Decor Holdings, Inc. Class A* | | | 9,080,359 | |
| | 78,147 | | | Ollie’s Bargain Outlet Holdings, Inc.* | | | 6,390,080 | |
| | 43,094 | | | Tory Burch LLC*(2)(3)(5) | | | 2,353,796 | |
| | | | | | | | |
| | | | | | | 32,605,744 | |
| | | | | | | | |
| | | | Semiconductors & Semiconductor Equipment - 5.2% | |
| | 43,800 | | | ACM Research, Inc. Class A* | | | 3,558,750 | |
| | 42,377 | | | Entegris, Inc. | | | 4,072,430 | |
| | 58,074 | | | First Solar, Inc.* | | | 5,744,680 | |
| | 45,789 | | | MKS Instruments, Inc. | | | 6,888,955 | |
| | 81,225 | | | SunPower Corp.*(1) | | | 2,082,609 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 97.0% - (continued) | |
| | | | Semiconductors & Semiconductor Equipment - 5.2% - (continued) | |
| | 370,557 | | | Tower Semiconductor Ltd.* | | $ | 9,567,782 | |
| | | | | | | | |
| | | | | | | 31,915,206 | |
| | | | | | | | |
| | | | Software & Services - 14.8% | | | |
| | 146,821 | | | 2U, Inc.* | | | 5,874,308 | |
| | 160,473 | | | Digital Turbine, Inc.* | | | 9,076,353 | |
| | 25,871 | | | Five9, Inc.* | | | 4,511,902 | |
| | 10,415 | | | HubSpot, Inc.* | | | 4,128,923 | |
| | 64,081 | | | j2 Global, Inc.* | | | 6,260,073 | |
| | 107,356 | | | LiveRamp Holdings, Inc.* | | | 7,857,386 | |
| | 55,057 | | | Manhattan Associates, Inc.* | | | 5,790,895 | |
| | 93,692 | | | Mimecast Ltd.* | | | 5,325,453 | |
| | 115,382 | | | PagerDuty, Inc.*(1) | | | 4,811,429 | |
| | 31,127 | | | Paylocity Holding Corp.* | | | 6,409,361 | |
| | 113,896 | | | Perficient, Inc.* | | | 5,427,144 | |
| | 218,709 | | | Porch Group, Inc.*(1) | | | 3,120,977 | |
| | 51,183 | | | Q2 Holdings, Inc.* | | | 6,476,185 | |
| | 117,950 | | | Rapid7, Inc.* | | | 10,634,372 | |
| | 324,732 | | | Verra Mobility Corp.* | | | 4,357,904 | |
| | | | | | | | |
| | | | | | | 90,062,665 | |
| | | | | | | | |
| | | | Technology Hardware & Equipment - 4.4% | | | |
| | 156,972 | | | II-VI, Inc.* | | | 11,923,593 | |
| | 46,855 | | | Lumentum Holdings, Inc.* | | | 4,441,854 | |
| | 55,876 | | | Novanta, Inc.* | | | 6,605,661 | |
| | 59,866 | | | PAR Technology Corp.* | | | 3,758,986 | |
| | | | | | | | |
| | | | | | | 26,730,094 | |
| | | | | | | | |
| | | | Telecommunication Services - 0.7% | | | |
| | 26,266 | | | Bandwidth, Inc. Class A* | | | 4,036,296 | |
| | | | | | | | |
| | | | Transportation - 0.8% | | | |
| | 27,774 | | | Saia, Inc.* | | | 5,021,539 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $399,176,810) | | $ | 590,848,560 | |
| | | | | | | | |
|
| CONVERTIBLE PREFERRED STOCKS - 0.5% | |
| | | | Retailing - 0.5% | | | |
| | 74,004 | | | Honest Co., Inc. Series E*(2)(3)(5) | | | 3,065,246 | |
| | | | | | | | |
| | |
| | | | Total Convertible Preferred Stocks
(cost $3,386,053) | | $ | 3,065,246 | |
| | | | | | | | |
|
| FUTURE PURCHASE COMMITMENT - 0.7% | |
| | | | Diversified Financials - 0.7% | | | |
| | 316,800 | | | TPG Pace Beneficial Finance Corp.*(2)(3) | | | 4,207,104 | |
| | | | | | | | |
| | |
| | | | Total Future Purchase Commitment
(cost $—) | | $ | 4,207,104 | |
| | | | | | | | |
|
| ESCROWS - 0.0%(6) | |
| | | | Software & Services - 0.0% | | | |
| | 157,023 | | | Veracode, Inc.*(2)(3)(5) | | | 3,850 | |
| | | | | | | | |
| | |
| | | | Total Escrows
(cost $—) | | $ | 3,850 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $402,562,863) | | $ | 598,124,760 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 2.6% | |
| | | | Repurchase Agreements - 1.3% | | | |
| | 7,590,202 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $7,590,244; collateralized by U.S. Treasury Note at 0.625%, maturing 11/30/2027, with a market value of $7,742,049 | | | 7,590,202 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SHORT-TERM INVESTMENTS - 2.6% - (continued) | |
| | | | Securities Lending Collateral - 1.3% | | | |
| | 7,769,510 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(7) | | $ | 7,769,510 | |
| | 308,145 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(7) | | $ | 308,145 | |
| | | | | | | | |
| | | | | | | 8,077,655 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $15,667,857) | | $ | 15,667,857 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $418,230,720) | | | 100.8 | % | | $ | 613,792,617 | |
| | | | Other Assets and Liabilities | | | (0.8 | )% | | | (5,130,703 | ) |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 608,661,914 | |
| | | | | | | | | | | | |
| 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) | 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, 2020, the aggregate fair value of these securities was $15,599,512, which represented 2.6% 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 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 $15,599,512 or 2.6% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 08/2011 | | | Allstar Co. | | | 5,016,400 | | | $ | 1,076,242 | | | $ | 5,969,516 | |
| | 08/2015 | | | Honest Co., Inc. Series E Convertible Preferred | | | 74,004 | | | | 3,386,053 | | | | 3,065,246 | |
| | 12/2020 | | | TPG Pace Beneficial Finance Corp. | | | 316,800 | | | | — | | | | 4,207,104 | |
| | 11/2013 | | | Tory Burch LLC | | | 43,094 | | | | 3,377,559 | | | | 2,353,796 | |
| | 04/2017 | | | Veracode, Inc. | | | 157,023 | | | | — | | | | 3,850 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 7,839,854 | | | $ | 15,599,512 | |
| | | | | | | | | | | | | | | | |
| (4) | Affiliated company – The Fund owns greater than 5% of the outstanding voting securities of this issuer. |
| (5) | Investment valued using significant unobservable inputs. |
| (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 Small Company HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Automobiles & Components | | $ | 11,005,565 | | | $ | 11,005,565 | | | $ | — | | | $ | — | |
Banks | | | 12,999,682 | | | | 12,999,682 | | | | — | | | | — | |
Capital Goods | | | 67,634,449 | | | | 67,634,449 | | | | — | | | | — | |
Commercial & Professional Services | | | 11,126,745 | | | | 11,126,745 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 30,055,324 | | | | 30,055,324 | | | | — | | | | — | |
Consumer Services | | | 32,369,593 | | | | 32,369,593 | | | | — | | | | — | |
Diversified Financials | | | 16,587,051 | | | | 16,587,051 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 4,868,044 | | | | 4,868,044 | | | | — | | | | — | |
Health Care Equipment & Services | | | 60,356,288 | | | | 60,356,288 | | | | — | | | | — | |
Insurance | | | 4,548,685 | | | | 4,548,685 | | | | — | | | | — | |
Materials | | | 5,859,609 | | | | 5,859,609 | | | | — | | | | — | |
Media & Entertainment | | | 12,954,503 | | | | 12,954,503 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 119,399,149 | | | | 119,399,149 | | | | — | | | | — | |
Real Estate | | | 10,712,329 | | | | 10,712,329 | | | | — | | | | — | |
Retailing | | | 32,605,744 | | | | 24,282,432 | | | | 5,969,516 | | | | 2,353,796 | |
Semiconductors & Semiconductor Equipment | | | 31,915,206 | | | | 31,915,206 | | | | — | | | | — | |
Software & Services | | | 90,062,665 | | | | 90,062,665 | | | | — | | | | — | |
Technology Hardware & Equipment | | | 26,730,094 | | | | 26,730,094 | | | | — | | | | — | |
Telecommunication Services | | | 4,036,296 | | | | 4,036,296 | | | | — | | | | — | |
Transportation | | | 5,021,539 | | | | 5,021,539 | | | | — | | | | — | |
Convertible Preferred Stocks | | | 3,065,246 | | | | — | | | | — | | | | 3,065,246 | |
Future Purchase Commitment | | | 4,207,104 | | | | — | | | | 4,207,104 | | | | — | |
Escrows | | | 3,850 | | | | — | | | | — | | | | 3,850 | |
Short-Term Investments | | | 15,667,857 | | | | 8,077,655 | | | | 7,590,202 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 613,792,617 | | | $ | 590,602,903 | | | $ | 17,766,822 | | | $ | 5,422,892 | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, investments valued at $2,006,560 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. |
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 year ended December 31, 2020 is not presented.
The accompanying notes are an integral part of these financial statements.
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.4% | |
| | | | Banks - 1.4% | |
| | 144,261 | | | PNC Financial Services Group, Inc. | | $ | 21,494,889 | |
| | | | | | | | |
| | | | Capital Goods - 12.3% | |
| | 108,499 | | | Deere & Co. | | | 29,191,656 | |
| | 195,768 | | | General Dynamics Corp. | | | 29,134,194 | |
| | 203,061 | | | Honeywell International, Inc. | | | 43,191,075 | |
| | 77,978 | | | Lockheed Martin Corp. | | | 27,680,630 | |
| | 123,210 | | | Northrop Grumman Corp. | | | 37,544,551 | |
| | 237,186 | | | Raytheon Technologies Corp. | | | 16,961,171 | |
| | | | | | | | |
| | | | | | | 183,703,277 | |
| | | | | | | | |
| | | | Consumer Durables & Apparel - 3.2% | |
| | 333,994 | | | NIKE, Inc. Class B | | | 47,250,131 | |
| | | | | | | | |
| | | | Consumer Services - 3.7% | |
| | 258,765 | | | McDonald’s Corp. | | | 55,525,794 | |
| | | | | | | | |
| | | | Diversified Financials - 3.4% | |
| | 420,021 | | | American Express Co. | | | 50,784,739 | |
| | | | | | | | |
| | | | Food & Staples Retailing - 1.4% | |
| | 57,029 | | | Costco Wholesale Corp. | | | 21,487,387 | |
| | | | | | | | |
| | | | Food, Beverage & Tobacco - 8.3% | |
| | 952,170 | | | Coca-Cola Co. | | | 52,217,003 | |
| | 890,521 | | | Diageo plc | | | 35,236,816 | |
| | 242,196 | | | PepsiCo., Inc. | | | 35,917,667 | |
| | | | | | | | |
| | | | | | | 123,371,486 | |
| | | | | | | | |
| | | | Health Care Equipment & Services - 10.9% | |
| | 422,711 | | | Baxter International, Inc. | | | 33,918,330 | |
| | 107,219 | | | Danaher Corp. | | | 23,817,629 | |
| | 394,220 | | | Medtronic plc | | | 46,178,931 | |
| | 165,627 | | | UnitedHealth Group, Inc. | | | 58,082,076 | |
| | | | | | | | |
| | | | | | | 161,996,966 | |
| | | | | | | | |
| | | | Household & Personal Products - 6.2% | |
| | 535,433 | | | Colgate-Palmolive Co. | | | 45,784,876 | |
| | 333,610 | | | Procter & Gamble Co. | | | 46,418,495 | |
| | | | | | | | |
| | | | | | | 92,203,371 | |
| | | | | | | | |
| | | | Insurance - 5.0% | |
| | 241,656 | | | Chubb Ltd. | | | 37,195,692 | |
| | 313,639 | | | Marsh & McLennan Cos., Inc. | | | 36,695,763 | |
| | | | | | | | |
| | | | | | | 73,891,455 | |
| | | | | | | | |
| | | | Materials - 5.2% | |
| | 167,652 | | | Ecolab, Inc. | | | 36,273,187 | |
| | 157,077 | | | Linde plc | | | 41,391,360 | |
| | | | | | | | |
| | | | | | | 77,664,547 | |
| | | | | | | | |
| | | | Media & Entertainment - 1.9% | |
| | 543,698 | | | Comcast Corp. Class A | | | 28,489,775 | |
| | | | | | | | |
| | | | Pharmaceuticals, Biotechnology & Life Sciences - 8.9% | |
| | 88,929 | | | Amgen, Inc. | | | 20,446,555 | |
| | 346,460 | | | Johnson & Johnson | | | 54,525,875 | |
| | 438,286 | | | Merck & Co., Inc. | | | 35,851,795 | |
| | 592,732 | | | Pfizer, Inc. | | | 21,818,465 | |
| | | | | | | | |
| | | | | | | 132,642,690 | |
| | | | | | | | |
| | | | Real Estate - 3.3% | |
| | 92,556 | | | American Tower Corp. REIT | | | 20,775,120 | |
| | 120,167 | | | Public Storage REIT | | | 27,750,165 | |
| | | | | | | | |
| | | | | | | 48,525,285 | |
| | | | | | | | |
| | | | Retailing - 6.0% | |
| | 9,440,100 | | | Allstar Co.(1)(2)(3) | | | 11,233,719 | |
| | 114,913 | | | Home Depot, Inc. | | | 30,523,191 | |
| | 690,154 | | | TJX Cos., Inc. | | | 47,130,617 | |
| | | | | | | | |
| | | | | | | 88,887,527 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 98.4% - (continued) | |
| | | | Software & Services - 9.4% | |
| | 135,931 | | | Accenture plc Class A | | $ | 35,506,537 | |
| | 147,486 | | | Automatic Data Processing, Inc. | | | 25,987,033 | |
| | 200,188 | | | Microsoft Corp. | | | 44,525,815 | |
| | 158,997 | | | Visa, Inc. Class A | | | 34,777,414 | |
| | | | | | | | |
| | | | | | | 140,796,799 | |
| | | | | | | | |
| | | | Transportation - 7.9% | |
| | 342,934 | | | Canadian National Railway Co. | | | 37,701,457 | |
| | 220,238 | | | Union Pacific Corp. | | | 45,857,956 | |
| | 200,718 | | | United Parcel Service, Inc. Class B | | | 33,800,911 | |
| | | | | | | | |
| | | | | | | 117,360,324 | |
| | | | | | | | |
| | |
| | | | Total Common Stocks
(cost $883,303,805) | | $ | 1,466,076,442 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.4% | |
| | | | Repurchase Agreements - 1.4% | |
| $ | 21,311,095 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $21,311,213; collateralized by U.S. Treasury Note at 2.185%, maturing 11/15/2046, with a market value of $21,737,369. | | | 21,311,095 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $21,311,095) | | $ | 21,311,095 | |
| | | | | | | | |
| | | | | |
| | | | | | | | | | | | |
| | | | Total Investments
(cost $904,614,900) | | | 99.8 | % | | $ | 1,487,387,537 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 2,380,989 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 1,489,768,526 | |
| | | | | | | | | | | | |
| 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) | 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, 2020, the aggregate fair value of this security was $11,233,719, which represented 0.8% of total net assets. This amount excludes securities that are principally traded in certain foreign markets and whose prices are adjusted pursuant to a third-party pricing service methodology approved by the Board of Directors. |
| (2) | 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 $11,233,719 or 0.8% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 08/2011 | | | Allstar Co. | | | 9,440,100 | | | $ | 2,025,320 | | | $ | 11,233,719 | |
The accompanying notes are an integral part of these financial statements.
Schedule of Investments – (continued)
December 31, 2020
| (3) | Affiliated company – The Fund owns greater than 5% of the outstanding voting securities of this issuer. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Common Stocks | |
Banks | | $ | 21,494,889 | | | $ | 21,494,889 | | | $ | — | | | $ | — | |
Capital Goods | | | 183,703,277 | | | | 183,703,277 | | | | — | | | | — | |
Consumer Durables & Apparel | | | 47,250,131 | | | | 47,250,131 | | | | — | | | | — | |
Consumer Services | | | 55,525,794 | | | | 55,525,794 | | | | — | | | | — | |
Diversified Financials | | | 50,784,739 | | | | 50,784,739 | | | | — | | | | — | |
Food & Staples Retailing | | | 21,487,387 | | | | 21,487,387 | | | | — | | | | — | |
Food, Beverage & Tobacco | | | 123,371,486 | | | | 88,134,670 | | | | 35,236,816 | | | | — | |
Health Care Equipment & Services | | | 161,996,966 | | | | 161,996,966 | | | | — | | | | — | |
Household & Personal Products | | | 92,203,371 | | | | 92,203,371 | | | | — | | | | — | |
Insurance | | | 73,891,455 | | | | 73,891,455 | | | | — | | | | — | |
Materials | | | 77,664,547 | | | | 77,664,547 | | | | — | | | | — | |
Media & Entertainment | | | 28,489,775 | | | | 28,489,775 | | | | — | | | | — | |
Pharmaceuticals, Biotechnology & Life Sciences | | | 132,642,690 | | | | 132,642,690 | | | | — | | | | — | |
Real Estate | | | 48,525,285 | | | | 48,525,285 | | | | — | | | | — | |
Retailing | | | 88,887,527 | | | | 77,653,808 | | | | 11,233,719 | | | | — | |
Software & Services | | | 140,796,799 | | | | 140,796,799 | | | | — | | | | — | |
Transportation | | | 117,360,324 | | | | 117,360,324 | | | | — | | | | — | |
Short-Term Investments | | | 21,311,095 | | | | — | | | | 21,311,095 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,487,387,537 | | | $ | 1,419,605,907 | | | $ | 67,781,630 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, investments valued at $3,776,040 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. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% | |
| | | | Asset-Backed - Automobile - 0.7% | |
| $ | | | 2,375,000 | | | AmeriCredit Automobile Receivables Trust 2.58%, 09/18/2025 | | $ | 2,464,942 | |
| | | 2,045,000 | | | Drive Auto Receivables Trust 2.70%, 02/16/2027 | | | 2,109,398 | |
| | | | | | Exeter Automobile Receivables Trust | |
| | | 4,595,000 | | | 2.58%, 09/15/2025(1) | | | 4,725,623 | |
| | | 1,390,000 | | | 2.73%, 12/15/2025(1) | | | 1,441,888 | |
| | | 665,000 | | | Santander Drive Auto Receivables Trust 1.48%, 01/15/2027 | | | 671,468 | |
| | | | | | Westlake Automobile Receivables Trust | |
| | | 3,365,000 | | | 2.72%, 11/15/2024(1) | | | 3,455,930 | |
| | | 2,748,641 | | | 3.28%, 12/15/2022(1) | | | 2,756,720 | |
| | | | | | | | | | |
| | | | | | | | | 17,625,969 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Finance & Insurance - 3.2% | |
| | | 927,092 | | | Aaset Trust 3.35%, 01/16/2040(1) | | | 872,680 | |
| | | 4,700,000 | | | Angel Oak Mortgage Trust 0.99%, 04/25/2053(1)(2) | | | 4,700,540 | |
| | | 1,036,538 | | | Avery Point CLO Ltd. 1.32%, 04/25/2026, 3 mo. USD LIBOR + 1.100%(1)(3) | | | 1,035,299 | |
| | | 32,284 | | | Babson CLO Ltd. 1.37%, 07/20/2025, 3 mo. USD LIBOR + 1.150%(1)(3) | | | 32,245 | |
| | | | | | Bayview Koitere Fund Trust | |
| | | 3,810,636 | | | 3.50%, 07/28/2057(1)(2) | | | 3,944,686 | |
| | | 1,578,560 | | | 4.00%, 11/28/2053(1)(2) | | | 1,643,782 | |
| | | 2,674,333 | | | Bayview Mortgage Fund Trust 3.50%, 01/28/2058(1)(2) | | | 2,706,963 | |
| | | | | | Bayview Opportunity Master Fund Trust | |
| | | 1,697,655 | | | 3.50%, 01/28/2055(1)(2) | | | 1,738,289 | |
| | | 2,053,289 | | | 3.50%, 06/28/2057(1)(2) | | | 2,123,006 | |
| | | 3,233,219 | | | 4.00%, 10/28/2064(1)(2) | | | 3,363,198 | |
| | | 10,426,000 | | | Benchmark Mortgage Trust 1.52%, 01/15/2054(2)(4) | | | 1,312,383 | |
| | | 4,175,000 | | | Cirrus Funding Ltd. 4.80%, 01/25/2037(1) | | | 4,460,061 | |
| | | 2,357,000 | | | Citigroup Commercial Mortgage Trust 4.12%, 11/15/2049(2) | | | 2,313,517 | |
| | | 3,201,313 | | | Domino’s Pizza Master Issuer LLC 4.12%, 07/25/2048(1) | | | 3,361,634 | |
| | | 1,015,179 | | | Eagle RE Ltd. 1.85%, 11/25/2028, 1 mo. USD LIBOR + 1.700%(1)(3) | | | 1,014,295 | |
| | | 1,072,360 | | | Fieldstone Mortgage Investment Trust 0.69%, 05/25/2036, 1 mo. USD LIBOR + 0.540%(3) | | | 855,683 | |
| | | 3,267,261 | | | First Franklin Mortgage Loan Trust 0.63%, 04/25/2036, 1 mo. USD LIBOR + 0.480%(3) | | | 2,838,216 | |
| | | 3,029,234 | | | GSAMP Trust 0.24%, 01/25/2037, 1 mo. USD LIBOR + 0.090%(3) | | | 2,196,792 | |
| | | 827,117 | | | Madison Park Funding Ltd. 1.48%, 07/20/2026, 3 mo. USD LIBOR + 1.260%(1)(3) | | | 827,239 | |
| | | 969,796 | | | MFA Trust 1.01%, 01/26/2065(1)(2) | | | 971,230 | |
| | | 910,000 | | | NRZ Excess Spread-Collateralized Notes 3.84%, 12/25/2025(1) | | | 910,336 | |
| | | 1,386,228 | | | OCP CLO Ltd. 1.07%, 04/17/2027, 3 mo. USD LIBOR + 0.850%(1)(3) | | | 1,382,558 | |
| | | 1,467,830 | | | OneMain Financial Issuance Trust 2.37%, 09/14/2032(1) | | | 1,469,750 | |
| | | 1,171,285 | | | Preston Ridge Partners Mortgage Trust LLC 2.36%, 11/25/2025(1)(5) | | | 1,172,151 | |
| | | | | | Pretium Mortgage Credit Partners LLC | |
| | | 2,668,619 | | | 3.72%, 01/25/2059(1)(5) | | | 2,667,393 | |
| | | 547,869 | | | 3.72%, 02/27/2060(1)(5) | | | 551,630 | |
| | | 1,074,124 | | | Seasoned Credit Risk Transfer Trust 3.50%, 08/25/2058 | | | 1,199,362 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Asset-Backed - Finance & Insurance - 3.2% - (continued) | |
| $ | | | 400,990 | | | Securitized Asset-Backed Receivables LLC Trust 0.33%, 07/25/2036, 1 mo. USD LIBOR + 0.180%(3) | | $ | 191,922 | |
| | | | | | SoFi Consumer Loan Program LLC | |
| | | 142,537 | | | 2.50%, 05/26/2026(1) | | | 143,068 | |
| | | 50,810 | | | 2.77%, 05/25/2026(1) | | | 50,959 | |
| | | 4,955,396 | | | Springleaf Funding Trust 2.68%, 07/15/2030(1) | | | 4,964,983 | |
| | | 1,435,000 | | | Summit Issuer LLC 2.29%, 12/20/2050(1) | | | 1,443,208 | |
| | | 6,402,706 | | | Symphony CLO Ltd. 1.18%, 07/14/2026, 3 mo. USD LIBOR + 0.950%(1)(3) | | | 6,382,358 | |
| | | 7,550,000 | | | Voya CLO Ltd. 1.12%, 01/18/2029, 3 mo. USD LIBOR + 0.900%(1)(3) | | | 7,533,292 | |
| | | 2,017,600 | | | Wendy’s Funding LLC 3.88%, 03/15/2048(1) | | | 2,140,855 | |
| | | 1,930,000 | | | Westlake Automobile Receivables Trust 1.65%, 02/17/2026(1) | | | 1,953,044 | |
| | | 775,000 | | | Wingstop Funding LLC 2.84%, 12/05/2050(1) | | | 790,709 | |
| | | | | | | | | | |
| | | | | | | | | 77,259,316 | |
| | | | | | | | | | |
| | | | | | Asset-Backed - Home Equity - 1.0% | |
| | | 2,780,000 | | | CPT Mortgage Trust 2.87%, 11/13/2039(1) | | | 3,051,924 | |
| | | | | | GSAA Home Equity Trust | |
| | | 5,192,544 | | | 0.23%, 02/25/2037, 1 mo. USD LIBOR + 0.080%(3) | | | 2,173,135 | |
| | | 2,275,079 | | | 0.51%, 11/25/2036, 1 mo. USD LIBOR + 0.360%(3) | | | 859,845 | |
| | | 567,853 | | | 5.99%, 06/25/2036(2) | | | 228,932 | |
| | | | | | Legacy Mortgage Asset Trust | |
| | | 3,367,997 | | | 3.00%, 06/25/2059(1)(5) | | | 3,383,238 | |
| | | 4,241,365 | | | 3.25%, 11/25/2059(1)(5) | | | 4,248,366 | |
| | | 6,453,681 | | | 4.00%, 03/25/2058(1)(5) | | | 6,475,674 | |
| | | 76,222 | | | Morgan Stanley Asset-Backed Securities Capital, Inc. Trust 0.45%, 06/25/2036, 1 mo. USD LIBOR + 0.300%(3) | | | 67,072 | |
| | | 1,336,552 | | | Morgan Stanley Mortgage Loan Trust 0.32%, 11/25/2036, 1 mo. USD LIBOR + 0.170%(3) | | | 529,046 | |
| | | | | | Soundview Home Loan Trust | |
| | | 2,376,260 | | | 0.33%, 07/25/2037, 1 mo. USD LIBOR + 0.180%(3) | | | 2,256,917 | |
| | | 435,000 | | | 0.65%, 11/25/2036, 1 mo. USD LIBOR + 0.500%(3) | | | 410,104 | |
| | | | | | | | | | |
| | | | | | | | | 23,684,253 | |
| | | | | | | | | | |
| | | | | | Commercial Mortgage-Backed Securities - 4.9% | |
| | | | | | Bank of America Commercial Mortgage Trust | |
| | | 39,580,847 | | | 0.74%, 11/15/2050(2)(4) | | | 1,660,302 | |
| | | 4,642,139 | | | 0.80%, 11/15/2054(2)(4) | | | 204,853 | |
| | | | | | BBCMS Mortgage Trust | |
| | | 8,553,000 | | | 1.01%, 08/15/2036, 1 mo. USD LIBOR + 0.850%(1)(3) | | | 8,456,833 | |
| | | 27,763,632 | | | 1.49%, 02/15/2050(2)(4) | | | 1,938,790 | |
| | | | | | Benchmark Mortgage Trust | |
| | | 19,829,415 | | | 0.52%, 07/15/2051(2)(4) | | | 559,552 | |
| | | 11,903,329 | | | 0.52%, 01/15/2051(2)(4) | | | 347,653 | |
| | | 8,956,344 | | | 1.07%, 08/15/2052(2)(4) | | | 577,322 | |
| | | 2,764,033 | | | 1.79%, 07/15/2053(2)(4) | | | 332,321 | |
| | | 5,036,025 | | | BX Commercial Mortgage Trust 1.08%, 10/15/2036, 1 mo. USD LIBOR + 0.920%(1)(3) | | | 5,045,414 | |
| | | 2,920,000 | | | CAMB Commercial Mortgage Trust 2.71%, 12/15/2037, 1 mo. USD LIBOR + 2.550%(1)(3) | | | 2,828,299 | |
| | | 3,855,000 | | | CD Commercial Mortgage Trust 2.46%, 08/10/2049 | | | 4,070,820 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Commercial Mortgage-Backed Securities - 4.9% - (continued) | |
| | | | | | Citigroup Commercial Mortgage Trust | |
| $ | | | 19,768,880 | | | 0.94%, 07/10/2047(2)(4) | | $ | 572,127 | |
| | | 21,462,998 | | | 1.04%, 04/10/2048(2)(4) | | | 820,007 | |
| | | | | | Commercial Mortgage Trust | |
| | | 7,071,171 | | | 0.58%, 02/10/2047(2)(4) | | | 109,834 | |
| | | 3,887,240 | | | 0.66%, 08/10/2046(2)(4) | | | 58,186 | |
| | | 4,475,000 | | | 1.06%, 10/15/2034, 1 mo. USD LIBOR + 0.900%(1)(3) | | | 4,457,866 | |
| | | 948,544 | | | 2.82%, 10/15/2045 | | | 972,483 | |
| | | 1,659,863 | | | 2.85%, 10/15/2045 | | | 1,708,451 | |
| | | 1,145,000 | | | 3.10%, 03/10/2046 | | | 1,187,123 | |
| | | 568,061 | | | 3.21%, 03/10/2046 | | | 597,767 | |
| | | 6,780,000 | | | 3.42%, 03/10/2031(1) | | | 7,161,954 | |
| | | 1,260,000 | | | 3.61%, 06/10/2046(2) | | | 1,343,157 | |
| | | 1,032,661 | | | 4.02%, 07/10/2045 | | | 1,107,956 | |
| | | 630,000 | | | 4.07%, 02/10/2047(2) | | | 691,134 | |
| | | 1,045,000 | | | 4.21%, 08/10/2046(2) | | | 1,134,020 | |
| | | 615,085 | | | 4.22%, 07/10/2045(2) | | | 664,387 | |
| | | 535,000 | | | 4.24%, 02/10/2047(2) | | | 587,747 | |
| | | 720,000 | | | 4.59%, 10/15/2045(1)(2) | | | 36,000 | |
| | | 1,920,000 | | | 4.75%, 10/15/2045(1)(2) | | | 584,794 | |
| | | 44,188 | | | Credit Suisse First Boston Mortgage Securities Corp. 4.88%, 04/15/2037 | | | 42,805 | |
| | | | | | CSAIL Commercial Mortgage Trust | |
| | | 58,516,998 | | | 0.75%, 06/15/2057(2)(4) | | | 1,559,232 | |
| | | 2,734,596 | | | 0.93%, 11/15/2048(2)(4) | | | 98,174 | |
| | | 8,073,895 | | | 1.92%, 01/15/2049(2)(4) | | | 604,179 | |
| | | 4,284,045 | | | DBJPM Mortgage Trust 1.71%, 09/15/2053(2)(4) | | | 468,550 | |
| | | 983,912 | | | DBUBS Mortgage Trust 0.56%, 11/10/2046(1)(2)(4) | | | 10 | |
| | | 4,340,000 | | | GS Mortgage Securities Corp. 2.95%, 11/05/2034(1) | | | 4,335,081 | |
| | | | | | GS Mortgage Securities Trust | |
| | | 43,638,379 | | | 0.07%, 07/10/2046(2)(4) | | | 89,101 | |
| | | 5,948,855 | | | 1.32%, 08/10/2044(1)(2)(4) | | | 13,626 | |
| | | 1,580,166 | | | 3.67%, 04/10/2047(1) | | | 81,964 | |
| | | 785,121 | | | 4.07%, 01/10/2047 | | | 851,461 | |
| | | 2,215,000 | | | 4.96%, 04/10/2047(1)(2) | | | 1,187,479 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Trust | | | | |
| | | 2,185,000 | | | 2.73%, 10/15/2045(1)(2) | | | 1,311,874 | |
| | | 1,400,000 | | | 2.81%, 01/16/2037(1) | | | 1,455,515 | |
| | | 608,397 | | | 2.84%, 12/15/2047 | | | 626,608 | |
| | | 1,290,924 | | | 4.42%, 12/15/2047(1)(2) | | | 945,217 | |
| | | | | | JPMBB Commercial Mortgage Securities Trust | | | | |
| | | 20,392,317 | | | 0.63%, 09/15/2047(2)(4) | | | 390,596 | |
| | | 5,224,532 | | | 0.65%, 05/15/2048(2)(4) | | | 127,682 | |
| | | 855,054 | | | 3.36%, 07/15/2045 | | | 896,144 | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust | | | | |
| | | 10,721,100 | | | 1.00%, 12/15/2047(2)(4) | | | 322,673 | |
| | | 1,483,556 | | | 1.02%, 10/15/2048(2)(4) | | | 55,843 | |
| | | 1,530,000 | | | 3.13%, 12/15/2048 | | | 1,596,093 | |
| | | 1,320,000 | | | 3.18%, 08/15/2045 | | | 1,360,707 | |
| | | 795,172 | | | 4.26%, 10/15/2046(2) | | | 856,791 | |
| | | | | | Morgan Stanley Capital Trust | |
| | | 8,074,059 | | | 1.42%, 06/15/2050(2)(4) | | | 487,846 | |
| | | 4,920,000 | | | 3.47%, 08/11/2033(1) | | | 4,969,001 | |
| | | 1,460,000 | | | 5.24%, 07/15/2049(1)(2) | | | 744,928 | |
| | | 82,680 | | | 5.67%, 10/12/2052(1)(2) | | | 18,629 | |
| | | 2,475,000 | | | MTRO Commercial Mortgage Trust 1.96%, 12/15/2033, 1 mo. USD LIBOR + 1.800%(1)(3) | | | 2,351,217 | |
| | | 1,370,000 | | | Natixis Commercial Mortgage Securities Trust 2.91%, 10/15/2036(1) | | | 1,373,593 | |
| | | 791,098 | | | Oaktown Re II Ltd. 1.70%, 07/25/2028, 1 mo. USD LIBOR + 1.550%(1)(3) | | | 789,684 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Commercial Mortgage-Backed Securities - 4.9% - (continued) | |
| $ | | | 790,000 | | | SFAVE Commercial Mortgage Securities Trust 3.87%, 01/05/2043(1)(2) | | $ | 803,302 | |
| | | 5,410,000 | | | SG Commercial Mortgage Securities Trust 2.63%, 03/15/2037(1) | | | 5,577,857 | |
| | | 5,281,578 | | | Stanwich Mortgage Loan Trust 3.48%, 11/16/2024(1)(5) | | | 5,298,357 | |
| | | 4,326,609 | | | UBS Commercial Mortgage Trust 1.08%, 08/15/2050(2)(4) | | | 213,152 | |
| | | | | | UBS-Barclays Commercial Mortgage Trust | |
| | | 790,000 | | | 2.85%, 12/10/2045 | | | 818,883 | |
| | | 2,119,987 | | | 3.09%, 08/10/2049 | | | 2,192,021 | |
| | | 2,065,000 | | | 3.19%, 03/10/2046 | | | 2,157,372 | |
| | | 775,000 | | | 3.24%, 04/10/2046 | | | 813,013 | |
| | | | | | Wells Fargo Commercial Mortgage Trust | |
| | | 16,296,824 | | | 1.10%, 05/15/2048(2)(4) | | | 601,188 | |
| | | 1,036,612 | | | 2.92%, 10/15/2045 | | | 1,067,781 | |
| | | 3,085,000 | | | 2.94%, 10/15/2049 | | | 3,385,173 | |
| | | 430,000 | | | 4.15%, 05/15/2048(2) | | | 421,536 | |
| | | | | | Wells Fargo N.A. | |
| | | 20,094,700 | | | 0.60%, 11/15/2062(2)(4) | | | 906,430 | |
| | | 9,795,752 | | | 0.65%, 11/15/2062(2)(4) | | | 491,735 | |
| | | 19,785,986 | | | 0.84%, 09/15/2062(2)(4) | | | 1,186,184 | |
| | | 35,497,385 | | | 0.89%, 01/15/2063(2)(4) | | | 2,414,188 | |
| | | 12,787,148 | | | 0.90%, 05/15/2062(2)(4) | | | 798,818 | |
| | | | | | WF-RBS Commercial Mortgage Trust | |
| | | 255,115 | | | 2.88%, 12/15/2045 | | | 264,278 | |
| | | 1,215,000 | | | 3.00%, 08/15/2045 | | | 1,250,049 | |
| | | 1,150,000 | | | 3.07%, 03/15/2045 | | | 1,201,157 | |
| | | 450,000 | | | 3.35%, 05/15/2045 | | | 472,471 | |
| | | 686,382 | | | 3.72%, 05/15/2047 | | | 723,869 | |
| | | 230,000 | | | 4.05%, 03/15/2047 | | | 251,445 | |
| | | 1,095,000 | | | 4.15%, 08/15/2046(2) | | | 1,182,167 | |
| | | 710,000 | | | 5.00%, 06/15/2044(1)(2) | | | 268,525 | |
| | | 790,000 | | | 5.58%, 04/15/2045(1)(2) | | | 798,851 | |
| | | | | | | | | | |
| | | | | | | | | 115,389,257 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 0.3% | |
| | | 7,095,000 | | | KKR CLO Ltd. 1.46%, 10/15/2030, 3 mo. USD LIBOR + 1.220%(1)(3) | | | 7,102,265 | |
| | | | | | | | | | |
| | | | | | Other Asset-Backed Securities - 2.4% | |
| | | | | | Affirm Asset Securitization Trust | |
| | | 3,243,753 | | | 1.90%, 01/15/2025(1) | | | 3,256,857 | |
| | | 1,302,112 | | | 3.46%, 10/15/2024(1) | | | 1,322,619 | |
| | | 1,111,935 | | | CF Hippolyta LLC 1.99%, 07/15/2060(1) | | | 1,126,132 | |
| | | 1,435,500 | | | Domino’s Pizza Master Issuer LLC 3.67%, 10/25/2049(1) | | | 1,524,803 | |
| | | 4,925,783 | | | Galaxy CLO Ltd. 1.01%, 11/15/2026, 3 mo. USD LIBOR + 0.790%(1)(3) | | | 4,907,853 | |
| | | 5,633,739 | | | Preston Ridge Partners Mortgage Trust LLC 2.95%, 10/25/2025(1)(5) | | | 5,655,240 | |
| | | 3,749,490 | | | Pretium Mortgage Credit Partners LLC 2.86%, 05/27/2059(1)(5) | | | 3,764,255 | |
| | | 532,096 | | | Sapphire Aviation Finance Ltd. 3.23%, 03/15/2040(1) | | | 515,127 | |
| | | 5,065,923 | | | Seasoned Credit Risk Transfer Trust 3.50%, 03/25/2058 | | | 5,531,783 | |
| | | | | | Towd Point Mortgage Trust | |
| | | 3,398,476 | | | 0.75%, 02/25/2057, 1 mo. USD LIBOR + 0.600%(1)(3) | | | 3,387,588 | |
| | | 1,447,232 | | | 2.25%, 04/25/2056(1)(2) | | | 1,460,963 | |
| | | 292,422 | | | 2.75%, 02/25/2055(1)(2) | | | 295,600 | |
| | | 1,417,593 | | | 2.75%, 08/25/2055(1)(2) | | | 1,433,471 | |
| | | 4,550,069 | | | 2.75%, 10/25/2056(1)(2) | | | 4,663,373 | |
| | | 1,172,751 | | | 2.75%, 04/25/2057(1)(2) | | | 1,198,872 | |
| | | 3,582,419 | | | 2.75%, 06/25/2057(1)(2) | | | 3,712,191 | |
| | | 2,258,491 | | | 2.75%, 07/25/2057(1)(2) | | | 2,325,501 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Other Asset-Backed Securities - 2.4% - (continued) | |
| $ | | | 99,275 | | | 3.00%, 03/25/2054(1)(2) | | $ | 99,618 | |
| | | 3,059,678 | | | VOLT LXXX LLC 3.23%, 10/25/2049(1)(5) | | | 3,063,992 | |
| | | 1,218,963 | | | VOLT LXXXIII LLC 3.33%, 11/26/2049(1)(5) | | | 1,222,454 | |
| | | 3,171,870 | | | VOLT LXXXIV LLC 3.43%, 12/27/2049(1)(5) | | | 3,179,730 | |
| | | 2,517,493 | | | VOLT XCI LLC 3.11%, 11/25/2050(1)(5) | | | 2,520,154 | |
| | | | | | | | | | |
| | | | | | | | | 56,168,176 | |
| | | | | | | | | | |
| | | | | | Whole Loan Collateral CMO - 6.5% | |
| | | | | | Alternative Loan Trust | |
| | | 188,608 | | | 0.69%, 01/25/2036, 1 mo. USD LIBOR + 0.540%(3) | | | 182,746 | |
| | | 826,766 | | | 0.79%, 11/25/2035, 1 mo. USD LIBOR + 0.640%(3) | | | 717,072 | |
| | | 744,095 | | | 5.75%, 05/25/2036 | | | 494,982 | |
| | | 855,083 | | | Angel Oak Mortgage Trust LLC 3.63%, 03/25/2049(1)(2) | | | 874,540 | |
| | | 4,805,326 | | | Arroyo Mortgage Trust 3.35%, 04/25/2049(1)(2) | | | 4,950,840 | |
| | | 21,184,218 | | | Bank of America Commercial Mortgage Trust 1.79%, 03/15/2063(2)(4) | | | 2,965,905 | |
| | | | | | Bank of America Funding Trust | |
| | | 944,088 | | | 0.75%, 05/20/2047, 1 mo. USD LIBOR + 0.600%(3) | | | 915,195 | |
| | | 3,140,212 | | | 5.77%, 05/25/2037(2) | | | 3,271,951 | |
| | | 121,586 | | | 5.85%, 01/25/2037(5) | | | 125,062 | |
| | | 745,639 | | | BCAP LLC Trust 0.33%, 03/25/2037, 1 mo. USD LIBOR + 0.180%(3) | | | 723,305 | |
| | | 200,125 | | | Bear Stearns Adjustable Rate Mortgage Trust 2.41%, 10/25/2035, 12 mo. USD CMT + 2.300%(3) | | | 200,243 | |
| | | 779,179 | | | Bear Stearns Alt-A Trust 0.65%, 01/25/2036, 1 mo. USD LIBOR + 0.500%(3) | | | 970,915 | |
| | | 262,348 | | | Bear Stearns Mortgage Funding Trust 0.33%, 10/25/2036, 1 mo. USD LIBOR + 0.180%(3) | | | 227,885 | |
| | | | | | Bellemeade Re Ltd. | |
| | | 404,837 | | | 1.25%, 07/25/2029, 1 mo. USD LIBOR + 1.100%(1)(3) | | | 404,837 | |
| | | 210,576 | | | 1.45%, 03/25/2029, 1 mo. USD LIBOR + 1.300%(1)(3) | | | 210,555 | |
| | | 1,851,116 | | | 1.55%, 10/25/2029, 1 mo. USD LIBOR + 1.400%(1)(3) | | | 1,848,866 | |
| | | 25,933,627 | | | Benchmark Mortgage Trust 1.23%, 03/15/2062(2)(4) | | | 2,032,203 | |
| | | | | | CHL Mortgage Pass-Through Trust | |
| | | 388,521 | | | 2.68%, 11/20/2035(2) | | | 335,342 | |
| | | 1,593,025 | | | 3.00%, 09/25/2047(2) | | | 1,489,427 | |
| | | 3,165,127 | | | CIM Trust 3.00%, 04/25/2057(1)(2) | | | 3,229,929 | |
| | | 1,643,234 | | | Citigroup Mortgage Loan Trust 3.23%, 11/25/2070(1)(5) | | | 1,651,194 | |
| | | 4,485,000 | | | Colombia Cent CLO Ltd. 1.37%, 10/25/2028, 3 mo. USD LIBOR + 1.150%(1)(3) | | | 4,475,626 | |
| | | 1,356,056 | | | COLT Mortgage Loan Trust 3.34%, 05/25/2049(1)(2) | | | 1,364,159 | |
| | | | | | Connecticut Avenue Securities Trust | |
| | | 1,527,868 | | | 2.15%, 07/25/2039, 1 mo. USD LIBOR + 2.000%(1)(3) | | | 1,526,512 | |
| | | 1,861,886 | | | 2.25%, 06/25/2039, 1 mo. USD LIBOR + 2.100%(1)(3) | | | 1,857,692 | |
| | | 1,227,758 | | | 2.30%, 09/25/2031, 1 mo. USD LIBOR + 2.150%(1)(3) | | | 1,226,266 | |
| | | 1,207,983 | | | 2.30%, 11/25/2039, 1 mo. USD LIBOR + 2.150%(1)(3) | | | 1,189,510 | |
| | | 1,261,432 | | | 2.45%, 08/25/2031, 1 mo. USD LIBOR + 2.300%(1)(3) | | | 1,259,827 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Whole Loan Collateral CMO - 6.5% - (continued) | |
| $ | | | 1,559,384 | | | Credit Suisse First Boston Mortgage Securities Corp. 5.50%, 06/25/2035 | | $ | 1,445,088 | |
| | | 1,994,159 | | | CSMC Trust 3.25%, 04/25/2047(1)(2) | | | 2,074,285 | |
| | | 360,749 | | | Deephaven Residential Mortgage Trust 2.45%, 06/25/2047(1)(2) | | | 360,871 | |
| | | | | | Fannie Mae Connecticut Avenue Securities | |
| | | 1,417,541 | | | 3.70%, 07/25/2029, 1 mo. USD LIBOR + 3.550%(3) | | | 1,458,707 | |
| | | 2,264,927 | | | 4.50%, 05/25/2029, 1 mo. USD LIBOR + 4.350%(3) | | | 2,359,730 | |
| | | 803,225 | | | 5.05%, 11/25/2024, 1 mo. USD LIBOR + 4.900%(3) | | | 823,928 | |
| | | 419,673 | | | 5.85%, 04/25/2028, 1 mo. USD LIBOR + 5.700%(3) | | | 447,778 | |
| | | 287,280 | | | 6.15%, 09/25/2028, 1 mo. USD LIBOR + 6.000%(3) | | | 304,657 | |
| | | 24,339 | | | GMACM Mortgage Loan Trust 3.59%, 04/19/2036(2) | | | 21,221 | |
| | | | | | GSR Mortgage Loan Trust | |
| | | 940,677 | | | 0.45%, 01/25/2037, 1 mo. USD LIBOR + 0.300%(3) | | | 260,632 | |
| | | 1,288,464 | | | 3.05%, 01/25/2036(2) | | | 1,286,841 | |
| | | | | | HarborView Mortgage Loan Trust | |
| | | 863,122 | | | 0.34%, 01/19/2038, 1 mo. USD LIBOR + 0.190%(3) | | | 804,601 | |
| | | 2,979,661 | | | 0.39%, 12/19/2036, 1 mo. USD LIBOR + 0.240%(3) | | | 2,836,447 | |
| | | 905,561 | | | Home Re Ltd. 1.75%, 10/25/2028, 1 mo. USD LIBOR + 1.600%(1)(3) | | | 903,879 | |
| | | 1,008,118 | | | IndyMac Index Mortgage Loan Trust 3.26%, 03/25/2036(2) | | | 890,978 | |
| | | 196,645 | | | JP Morgan Mortgage Trust 3.55%, 04/25/2037(2) | | | 178,158 | |
| | | 2,735,000 | | | LCM XX L.P. 1.26%, 10/20/2027, 3 mo. USD LIBOR + 1.040%(1)(3) | | | 2,731,116 | |
| | | 956,191 | | | Lehman XS Trust 0.36%, 07/25/2046, 1 mo. USD LIBOR + 0.210%(3) | | | 943,240 | |
| | | | | | LSTAR Securities Investment Ltd. | |
| | | 1,651,003 | | | 1.66%, 04/01/2024, 1 mo. USD LIBOR + 1.500%(1)(3) | | | 1,636,690 | |
| | | 3,922,114 | | | 1.66%, 05/01/2024, 1 mo. USD LIBOR + 1.500%(1)(3) | | | 3,911,721 | |
| | | | | | LSTAR Securities Investment Trust | |
| | | 538,118 | | | 1.66%, 04/01/2024, 1 mo. USD LIBOR + 1.500%(1)(3) | | | 533,816 | |
| | | 1,439,272 | | | 1.86%, 03/01/2024, 1 mo. USD LIBOR + 1.700%(1)(3) | | | 1,430,983 | |
| | | 291,709 | | | MASTR Adjustable Rate Mortgages Trust 3.18%, 11/21/2034(2) | | | 298,090 | |
| | | 676,409 | | | MFA Trust 2.59%, 02/25/2057(1)(2) | | | 684,297 | |
| | | 3,363,000 | | | Mortgage Insurance-Linked Notes 2.05%, 11/26/2029, 1 mo. USD LIBOR + 1.900%(1)(3) | | | 3,354,976 | |
| | | | | | New Residential Mortgage Loan Trust | |
| | | 3,636,802 | | | 0.90%, 01/25/2048, 1 mo. USD LIBOR + 0.750%(1)(3) | | | 3,640,156 | |
| | | 2,949,965 | | | 1.65%, 06/25/2057, 1 mo. USD LIBOR + 1.500%(1)(3) | | | 2,984,951 | |
| | | 1,559,320 | | | 2.49%, 09/25/2059(1)(2) | | | 1,588,264 | |
| | | 623,180 | | | 3.23%, 08/25/2060(1)(5) | | | 627,712 | |
| | | 2,725,263 | | | 3.50%, 08/25/2059(1)(2) | | | 2,843,910 | |
| | | 2,966,540 | | | 3.75%, 11/26/2035(1)(2) | | | 3,146,145 | |
| | | 2,753,110 | | | 3.75%, 11/25/2056(1)(2) | | | 2,933,507 | |
| | | 4,957,628 | | | 4.00%, 02/25/2057(1)(2) | | | 5,357,945 | |
| | | 5,005,382 | | | 4.00%, 03/25/2057(1)(2) | | | 5,412,551 | |
| | | 3,923,230 | | | 4.00%, 04/25/2057(1)(2) | | | 4,172,110 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 19.0% - (continued) | |
| | | | | | Whole Loan Collateral CMO - 6.5% - (continued) | |
| $ | | | 2,971,556 | | | 4.00%, 05/25/2057(1)(2) | | $ | 3,224,882 | |
| | | 4,354,159 | | | 4.00%, 08/27/2057(1)(2) | | | 4,703,107 | |
| | | 1,879,410 | | | 4.00%, 12/25/2057(1)(2) | | | 2,032,310 | |
| | | 267,669 | | | Oaktown Re III Ltd. 1.55%, 07/25/2029, 1 mo. USD LIBOR + 1.400%(1)(3) | | | 267,705 | |
| | | 6,354,583 | | | OZLM Ltd. 1.26%, 04/30/2027, 3 mo. USD LIBOR + 1.050%(1)(3) | | | 6,347,224 | |
| | | 1,940,808 | | | PMT Credit Risk Transfer Trust 2.15%, 03/27/2024, 1 mo. USD LIBOR + 2.000%(1)(3) | | | 1,787,098 | |
| | | 1,438,474 | | | Preston Ridge Partners Mortgage Trust LLC 3.50%, 10/25/2024(1)(2) | | | 1,455,933 | |
| | | 947,037 | | | RBSGC Mortgage Loan Trust 6.25%, 01/25/2037 | | | 938,196 | |
| | | 636,072 | | | Residential Accredit Loans, Inc. 6.00%, 12/25/2035 | | | 632,033 | |
| | | | | | Seasoned Credit Risk Transfer Trust | |
| | | 3,035,722 | | | 2.50%, 08/25/2059 | | | 3,157,769 | |
| | | 2,037,406 | | | 3.50%, 11/25/2057 | | | 2,263,692 | |
| | | 5,416,211 | | | 3.50%, 07/25/2058 | | | 6,039,414 | |
| | | 5,362,892 | | | 3.50%, 10/25/2058 | | | 5,918,222 | |
| | | 743,512 | | | Structured Agency Credit Risk Trust 1.80%, 04/25/2043, 1 mo. USD LIBOR + 1.650%(1)(3) | | | 731,348 | |
| | | | | | Vericrest Opportunity Loan Trust | |
| | | 1,385,449 | | | 3.18%, 10/25/2049(1)(5) | | | 1,386,850 | |
| | | 2,944,318 | | | 3.28%, 11/25/2049(1)(5) | | | 2,945,646 | |
| | | | | | WaMu Mortgage Pass-Through Certificates Trust | | | | |
| | | 452,860 | | | 0.57%, 06/25/2044, 1 mo. USD LIBOR + 0.420%(3) | | | 440,455 | |
| | | 2,399,461 | | | 1.56%, 12/25/2046, 12 mo. USD MTA + 0.820%(3) | | | 2,168,618 | |
| | | 918,992 | | | 3.14%, 06/25/2037(2) | | | 862,511 | |
| | | 27,415,144 | | | Wells Fargo Commercial Mortgage Trust 0.90%, 09/15/2057(2)(4) | | | 985,029 | |
| | | | | | | | | | |
| | | | | | | | | 153,700,609 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Asset & Commercial Mortgage-Backed Securities
(cost $451,201,136) | | $ | 450,929,845 | |
| | | | | | | | | | |
|
| CORPORATE BONDS - 35.6% | |
| | | | | | Advertising - 0.0% | |
| | | 500,000 | | | Lamar Media Corp. 3.75%, 02/15/2028 | | $ | 513,850 | |
| | | | | | | | | | |
| | | | | | Aerospace/Defense - 0.6% | |
| | | | | | Boeing Co. | |
| | | 1,900,000 | | | 5.04%, 05/01/2027 | | | 2,221,236 | |
| | | 1,390,000 | | | 5.15%, 05/01/2030 | | | 1,682,250 | |
| | | 815,000 | | | General Dynamics Corp. 4.25%, 04/01/2040 | | | 1,060,891 | |
| | | 2,127,000 | | | L3Harris Technologies, Inc. 3.85%, 06/15/2023 | | | 2,297,474 | |
| | | 2,035,000 | | | Northrop Grumman Corp. 5.15%, 05/01/2040 | | | 2,812,778 | |
| | | | | | United Technologies Corp. | |
| | | 32,000 | | | 3.65%, 08/16/2023 | | | 34,502 | |
| | | 1,565,000 | | | 3.95%, 08/16/2025 | | | 1,794,919 | |
| | | 1,220,000 | | | 4.45%, 11/16/2038 | | | 1,538,356 | |
| | | 400,000 | | | 4.63%, 11/16/2048 | | | 543,039 | |
| | | | | | | | | | |
| | | | | | | | | 13,985,445 | |
| | | | | | | | | | |
| | | | | | Agriculture - 0.8% | |
| | | | | | Altria Group, Inc. | |
| | | 405,000 | | | 2.63%, 09/16/2026 | | | 437,189 | |
| | | 765,000 | | | 3.88%, 09/16/2046 | | | 808,060 | |
| | | 2,055,000 | | | 5.38%, 01/31/2044 | | | 2,626,485 | |
| | | 955,000 | | | 5.80%, 02/14/2039 | | | 1,258,283 | |
| | | 320,000 | | | 5.95%, 02/14/2049 | | | 448,307 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Agriculture - 0.8% - (continued) | |
| $ | | | 895,000 | | | Archer-Daniels-Midland Co. 3.25%, 03/27/2030 | | $ | 1,035,059 | |
| | | | | | BAT Capital Corp. | |
| | | 2,460,000 | | | 2.26%, 03/25/2028 | | | 2,553,593 | |
| | | 1,755,000 | | | 2.79%, 09/06/2024 | | | 1,876,143 | |
| | | 3,265,000 | | | BAT International Finance plc 1.67%, 03/25/2026 | | | 3,342,116 | |
| | | 1,760,000 | | | Kernel Holding S.A. 6.50%, 10/17/2024(6) | | | 1,865,600 | |
| | | 2,365,000 | | | Philip Morris International, Inc. 2.10%, 05/01/2030 | | | 2,466,569 | |
| | | | | | | | | | |
| | | | | | | | | 18,717,404 | |
| | | | | | | | | | |
| | | | | | Apparel - 0.0% | |
| | | 550,000 | | | Hanesbrands, Inc. 4.88%, 05/15/2026(1) | | | 597,438 | |
| | | | | | | | | | |
| | | | | | Auto Manufacturers - 0.1% | |
| | | | | | General Motors Co. | |
| | | 1,260,000 | | | 5.20%, 04/01/2045 | | | 1,530,177 | |
| | | 740,000 | | | 6.13%, 10/01/2025 | | | 897,597 | |
| | | 145,000 | | | 6.80%, 10/01/2027 | | | 186,341 | |
| | | | | | | | | | |
| | | | | | | | | 2,614,115 | |
| | | | | | | | | | |
| | | | | | Beverages - 0.9% | |
| | | | | | Anheuser-Busch InBev Worldwide, Inc. | |
| | | 2,549,000 | | | 3.75%, 07/15/2042 | | | 2,899,881 | |
| | | 1,145,000 | | | 4.60%, 04/15/2048 | | | 1,448,885 | |
| | | 710,000 | | | 4.75%, 04/15/2058 | | | 929,114 | |
| | | 3,304,000 | | | 5.45%, 01/23/2039 | | | 4,488,629 | |
| | | | | | Constellation Brands, Inc. | |
| | | 1,275,000 | | | 2.65%, 11/07/2022 | | | 1,324,981 | |
| | | 612,000 | | | 3.15%, 08/01/2029 | | | 681,554 | |
| | | 3,171,000 | | | 3.60%, 02/15/2028 | | | 3,622,321 | |
| | | 590,000 | | | 4.65%, 11/15/2028 | | | 718,884 | |
| | | 3,313,000 | | | Diageo Capital plc 2.00%, 04/29/2030 | | | 3,454,829 | |
| | | 1,375,000 | | | PepsiCo, Inc. 3.63%, 03/19/2050 | | | 1,744,784 | |
| | | | | | | | | | |
| | | | | | | | | 21,313,862 | |
| | | | | | | | | | |
| | | | | | Biotechnology - 0.8% | |
| | | | | | Amgen, Inc. | |
| | | 545,000 | | | 1.90%, 02/21/2025 | | | 572,850 | |
| | | 1,975,000 | | | 2.20%, 02/21/2027 | | | 2,117,225 | |
| | | 4,615,000 | | | 2.30%, 02/25/2031 | | | 4,922,317 | |
| | | 835,000 | | | 3.15%, 02/21/2040 | | | 919,176 | |
| | | 1,050,000 | | | 3.38%, 02/21/2050 | | | 1,173,144 | |
| | | 4,110,000 | | | Gilead Sciences, Inc. 1.65%, 10/01/2030 | | | 4,124,123 | |
| | | | | | Royalty Pharma plc | |
| | | 170,000 | | | 1.75%, 09/02/2027(1) | | | 174,924 | |
| | | 1,830,000 | | | 2.20%, 09/02/2030(1) | | | 1,879,263 | |
| | | 1,185,000 | | | 3.30%, 09/02/2040(1) | | | 1,245,979 | |
| | | 1,290,000 | | | 3.55%, 09/02/2050(1) | | | 1,374,431 | |
| | | | | | | | | | |
| | | | | | | | | 18,503,432 | |
| | | | | | | | | | |
| | | | | | Chemicals - 0.4% | |
| | | 1,490,000 | | | Alpek S.A.B. de C.V. 4.25%, 09/18/2029(1) | | | 1,633,785 | |
| | | | | | CF Industries, Inc. | |
| | | 140,000 | | | 4.95%, 06/01/2043 | | | 171,850 | |
| | | 220,000 | | | 5.38%, 03/15/2044 | | | 278,466 | |
| | | 290,000 | | | Chemours Co. 5.38%, 05/15/2027(7) | | | 308,850 | |
| | | 516,000 | | | Dow Chemical Co. 4.80%, 05/15/2049(7) | | | 696,886 | |
| | | 2,760,000 | | | DuPont de Nemours, Inc. 4.21%, 11/15/2023 | | | 3,044,943 | |
| | | | | | LYB International Finance LLC | |
| | | 745,000 | | | 1.25%, 10/01/2025 | | | 758,049 | |
| | | 475,000 | | | 3.80%, 10/01/2060 | | | 510,146 | |
| | | 290,000 | | | Olin Corp. 5.13%, 09/15/2027 | | | 303,381 | |
| | | 525,000 | | | Sherwin-Williams Co. 3.30%, 05/15/2050 | | | 580,418 | |
| | | 205,000 | | | Syngenta Finance N.V. 4.89%, 04/24/2025(1) | | | 220,017 | |
| | | | | | | | | | |
| | | | | | | | | 8,506,791 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Commercial Banks - 5.4% | |
| | | | | | 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)(8) | | $ | 2,281,302 | |
| | | 1,565,000 | | | 3.19%, 07/23/2030, (3.19% fixed rate until 07/23/2029; 3 mo. USD LIBOR + 1.180% thereafter)(8) | | | 1,753,880 | |
| | | 4,765,000 | | | 3.37%, 01/23/2026, (3.37% fixed rate until 01/23/2025; 3 mo. USD LIBOR + 0.810% thereafter)(8) | | | 5,245,791 | |
| | | 4,620,000 | | | 3.71%, 04/24/2028, (3.71% fixed rate until 04/24/2027; 3 mo. USD LIBOR + 1.512% thereafter)(8) | | | 5,259,679 | |
| | | 4,305,000 | | | 4.08%, 03/20/2051, (4.08% fixed rate until 03/20/2050; 3 mo. USD LIBOR + 3.150% thereafter)(8) | | | 5,436,649 | |
| | | 2,750,000 | | | 7.75%, 05/14/2038 | | | 4,688,770 | |
| | | 2,105,000 | | | Bank of New York Mellon Corp. 2.10%, 10/24/2024 | | | 2,235,603 | |
| | | 1,940,000 | | | BNP Paribas S.A. 2.22%, 06/09/2026, (2.22% fixed rate until 06/09/2025; 3 mo. USD SOFR + 2.074% thereafter)(1)(8) | | | 2,030,466 | |
| | | 1,725,000 | | | Capital One Financial Corp. 3.90%, 01/29/2024 | | | 1,889,525 | |
| | | | | | Citigroup, Inc. | |
| | | 1,555,000 | | | 2.31%, 11/04/2022, (2.31% fixed rate until 11/04/2021; 3 mo. USD SOFR + 0.867% thereafter)(8) | | | 1,579,845 | |
| | | 3,275,000 | | | 3.35%, 04/24/2025, (3.35% fixed rate until 04/24/2024; 3 mo. USD LIBOR + 0.897% thereafter)(8) | | | 3,560,501 | |
| | | 1,795,000 | | | 3.98%, 03/20/2030, (3.98% fixed rate until 03/20/2029; 3 mo. USD LIBOR + 1.338% thereafter)(8) | | | 2,110,934 | |
| | | 1,250,000 | | | 4.41%, 03/31/2031, (4.41% fixed rate until 03/31/2030; 3 mo. USD SOFR + 3.914% thereafter)(8) | | | 1,515,821 | |
| | | 1,660,000 | | | 4.45%, 09/29/2027 | | | 1,962,349 | |
| | | 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)(8)(9) | | | 3,588,455 | |
| | | | | | Danske Bank A/S | |
| | | 1,890,000 | | | 5.00%, 01/12/2022(1) | | | 1,973,081 | |
| | | 1,970,000 | | | 5.38%, 01/12/2024(1) | | | 2,222,475 | |
| | | 1,640,000 | | | Fifth Third Bancorp 2.38%, 01/28/2025 | | | 1,745,354 | |
| | | | | | 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)(8) | | | 1,002,287 | |
| | | 920,000 | | | 3.69%, 06/05/2028, (3.69% fixed rate until 06/05/2027; 3 mo. USD LIBOR + 1.510% thereafter)(8) | | | 1,059,861 | |
| | | 1,760,000 | | | 3.81%, 04/23/2029, (3.81% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.158% thereafter)(8) | | | 2,037,060 | |
| | | 1,000,000 | | | 4.22%, 05/01/2029, (4.22% fixed rate until 05/01/2028; 3 mo. USD LIBOR + 1.301% thereafter)(8) | | | 1,186,363 | |
| | | 65,000 | | | 6.25%, 02/01/2041 | | | 101,801 | |
| | | 2,310,000 | | | 6.75%, 10/01/2037 | | | 3,534,672 | |
| | | 2,710,000 | | | HSBC Holdings plc 1.59%, 05/24/2027, (1.59% fixed rate until 05/24/2026; 3 mo. USD SOFR + 1.290% thereafter)(8) | | | 2,755,846 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Commercial Banks - 5.4% - (continued) | |
| | | | | | JP Morgan Chase & Co. | |
| $ | | | 390,000 | | | 2.96%, 05/13/2031, (2.96% fixed rate until 05/13/2030; 3 mo. USD SOFR + 2.515% thereafter)(8) | | $ | 427,670 | |
| | | 1,735,000 | | | 3.11%, 04/22/2041, (3.11% fixed rate until 04/22/2040; 3 mo. USD SOFR + 2.460% thereafter)(8) | | | 1,939,324 | |
| | | 575,000 | | | 3.11%, 04/22/2051, (3.11% fixed rate until 04/22/2050; 3 mo. USD SOFR + 2.440% thereafter)(8) | | | 640,215 | |
| | | 2,160,000 | | | 3.22%, 03/01/2025, (3.22% fixed rate until 03/01/2024; 3 mo. USD LIBOR + 1.155% thereafter)(8) | | | 2,329,185 | |
| | | 2,500,000 | | | 3.51%, 01/23/2029, (3.51% fixed rate until 01/23/2028; 3 mo. USD LIBOR + 0.945% thereafter)(8) | | | 2,843,214 | |
| | | 1,655,000 | | | 3.70%, 05/06/2030, (3.70% fixed rate until 05/06/2029; 3 mo. USD LIBOR + 1.160% thereafter)(8) | | | 1,919,858 | |
| | | 1,990,000 | | | 3.80%, 07/23/2024, (3.80% fixed rate until 07/23/2023; 3 mo. USD LIBOR + 0.890% thereafter)(8) | | | 2,158,663 | |
| | | 4,480,000 | | | 3.96%, 01/29/2027, (3.96% fixed rate until 01/29/2026; 3 mo. USD LIBOR + 1.245% thereafter)(8) | | | 5,147,912 | |
| | | 2,230,000 | | | 4.01%, 04/23/2029, (4.01% fixed rate until 04/23/2028; 3 mo. USD LIBOR + 1.120% thereafter)(8) | | | 2,618,108 | |
| | | 930,000 | | | 4.02%, 12/05/2024, (4.02% fixed rate until 12/05/2023; 3 mo. USD LIBOR + 1.000% thereafter)(8) | | | 1,024,514 | |
| | | | | | Morgan Stanley | |
| | | 4,595,000 | | | 1.79%, 02/13/2032, (1.79% fixed rate until 02/13/2031; 3 mo. USD SOFR + 1.034% thereafter)(8) | | | 4,627,855 | |
| | | 2,450,000 | | | 2.70%, 01/22/2031, (2.70% fixed rate until 01/22/2030; 3 mo. USD SOFR + 1.143% thereafter)(8) | | | 2,667,445 | |
| | | 100,000 | | | 2.75%, 05/19/2022 | | | 103,272 | |
| | | 2,000,000 | | | 3.59%, 07/22/2028, (3.59% fixed rate until 07/22/2027; 3 mo. USD LIBOR + 1.340% thereafter)(8) | | | 2,283,390 | |
| | | 1,475,000 | | | 3.63%, 01/20/2027 | | | 1,689,193 | |
| | | 2,775,000 | | | 4.00%, 07/23/2025 | | | 3,175,632 | |
| | | 750,000 | | | 4.43%, 01/23/2030, (4.43% fixed rate until 01/23/2029; 3 mo. USD LIBOR + 1.628% thereafter)(8) | | | 912,305 | |
| | | 600,000 | | | PNC Bank NA 2.70%, 10/22/2029 | | | 659,412 | |
| | | | | | PNC Financial Services Group, Inc. | |
| | | 835,000 | | | 2.20%, 11/01/2024 | | | 887,430 | |
| | | 80,000 | | | 2.55%, 01/22/2030 | | | 87,645 | |
| | | 1,435,000 | | | Santander Holdings USA, Inc. 3.70%, 03/28/2022 | | | 1,481,881 | |
| | | 150,000 | | | State Street Corp. 2.35%, 11/01/2025, (2.35% fixed rate until 11/01/2024; 3 mo. USD SOFR + 0.940% thereafter)(8) | | | 160,093 | |
| | | 5,190,000 | | | Truist Bank 2.25%, 03/11/2030 | | | 5,445,162 | |
| | | 1,273,000 | | | UBS Group AG 2.65%, 02/01/2022(1) | | | 1,305,363 | |
| | | 2,685,000 | | | UniCredit S.p.A. 6.57%, 01/14/2022(1) | | | 2,829,499 | |
| | | | | | 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)(8) | | | 3,251,413 | |
| | | 2,795,000 | | | 3.00%, 04/22/2026 | | | 3,076,170 | |
| | | 665,000 | | | 3.00%, 10/23/2026 | | | 736,800 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Commercial Banks - 5.4% - (continued) | |
| $ | | | 4,800,000 | | | 3.07%, 01/24/2023 | | $ | 4,936,999 | |
| | | 1,840,000 | | | 3.75%, 01/24/2024 | | | 2,008,709 | |
| | | 155,000 | | | 4.90%, 11/17/2045 | | | 206,445 | |
| | | 765,000 | | | 5.01%, 04/04/2051, (5.01% fixed rate until 04/04/2050; 3 mo. USD LIBOR + 4.240% thereafter)(8) | | | 1,087,231 | |
| | | 645,000 | | | 5.61%, 01/15/2044 | | | 914,158 | |
| | | | | | | | | | |
| | | | | | | | | 128,340,535 | |
| | | | | | | | | | |
| | | | | | Commercial Services - 1.2% | |
| | | | | | Ashtead Capital, Inc. | |
| | | 1,190,000 | | | 4.00%, 05/01/2028(1) | | | 1,263,947 | |
| | | 200,000 | | | 4.13%, 08/15/2025(1) | | | 205,400 | |
| | | 5,190,000 | | | 4.38%, 08/15/2027(1) | | | 5,481,938 | |
| | | | | | Equifax, Inc. | |
| | | 1,079,000 | | | 2.60%, 12/15/2025 | | | 1,164,661 | |
| | | 345,000 | | | 3.10%, 05/15/2030 | | | 383,760 | |
| | | 1,923,000 | | | Gartner, Inc. 3.75%, 10/01/2030(1) | | | 2,026,380 | |
| | | | | | Global Payments, Inc. | |
| | | 1,510,000 | | | 2.90%, 05/15/2030 | | | 1,644,198 | |
| | | 905,000 | | | 3.20%, 08/15/2029 | | | 1,001,418 | |
| | | | | | Howard University (AGM Insured) | |
| | | 1,000,000 | | | 2.70%, 10/01/2029 | | | 1,028,381 | |
| | | 1,000,000 | | | 2.90%, 10/01/2031 | | | 1,054,396 | |
| | | 720,000 | | | 3.48%, 10/01/2041 | | | 738,759 | |
| | | 4,150,000 | | | IHS Markit Ltd. 4.13%, 08/01/2023 | | | 4,512,295 | |
| | | | | | Service Corp. International | |
| | | 2,500,000 | | | 3.38%, 08/15/2030 | | | 2,600,525 | |
| | | 385,000 | | | 4.63%, 12/15/2027 | | | 410,025 | |
| | | 4,561,000 | | | 5.13%, 06/01/2029 | | | 5,051,308 | |
| | | 315,000 | | | United Rentals North America, Inc. 4.00%, 07/15/2030 | | | 331,538 | |
| | | | | | | | | | |
| | | | | | | | | 28,898,929 | |
| | | | | | | | | | |
| | | | | | Construction Materials - 0.1% | |
| | | 985,000 | | | Carrier Global Corp. 2.70%, 02/15/2031 | | | 1,058,305 | |
| | | | | | Standard Industries, Inc. | |
| | | 805,000 | | | 3.38%, 01/15/2031(1) | | | 809,025 | |
| | | 1,435,000 | | | 4.38%, 07/15/2030(1) | | | 1,535,063 | |
| | | | | | | | | | |
| | | | | | | | | 3,402,393 | |
| | | | | | | | | | |
| | | | | | Diversified Financial Services - 0.4% | |
| | | 1,875,000 | | | GE Capital Funding LLC 4.40%, 05/15/2030(1) | | | 2,210,303 | |
| | | 970,000 | | | GE Capital International Funding Co. 4.42%, 11/15/2035 | | | 1,157,740 | |
| | | 475,000 | | | Mastercard, Inc. 3.35%, 03/26/2030 | | | 552,303 | |
| | | 390,000 | | | Navient Corp. 7.25%, 01/25/2022 | | | 407,550 | |
| | | 4,220,000 | | | Power Finance Corp. Ltd. 3.95%, 04/23/2030(1) | | | 4,498,647 | |
| | | | | | | | | | |
| | | | | | | | | 8,826,543 | |
| | | | | | | | | | |
| | | | | | Electric - 3.0% | |
| | | 1,415,000 | | | AES Corp. 3.30%, 07/15/2025(1) | | | 1,542,350 | |
| | | | | | Berkshire Hathaway Energy Co. | |
| | | 705,000 | | | 1.65%, 05/15/2031(1) | | | 704,900 | |
| | | 875,000 | | | 3.25%, 04/15/2028 | | | 1,000,255 | |
| | | 965,000 | | | Centrais Eletricas Brasileiras S.A. 3.63%, 02/04/2025(1) | | | 1,001,197 | |
| | | | | | Cleco Corporate Holdings LLC | |
| | | 1,215,000 | | | 3.38%, 09/15/2029 | | | 1,247,860 | |
| | | 457,000 | | | 3.74%, 05/01/2026 | | | 505,760 | |
| | | 75,000 | | | 4.97%, 05/01/2046 | | | 87,768 | |
| | | 1,640,000 | | | Commonwealth Edison Co. 3.65%, 06/15/2046 | | | 1,949,496 | |
| | | 375,000 | | | Connecticut Light & Power Co. 4.00%, 04/01/2048 | | | 485,580 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Electric - 3.0% - (continued) | |
| $ | | | 415,000 | | | Dominion Energy South Carolina, Inc. 5.10%, 06/01/2065 | | $ | 654,001 | |
| | | 710,000 | | | Dominion Energy, Inc. 3.38%, 04/01/2030 | | | 808,757 | |
| | | 1,525,000 | | | Duke Energy Carolinas LLC 4.25%, 12/15/2041 | | | 1,942,427 | |
| | | 780,000 | | | Duke Energy Indiana LLC 3.25%, 10/01/2049 | | | 883,389 | |
| | | 670,000 | | | Duke Energy Progress LLC 4.38%, 03/30/2044 | | | 860,648 | |
| | | | | | Evergy, Inc. | |
| | | 730,000 | | | 2.45%, 09/15/2024 | | | 774,044 | |
| | | 2,260,000 | | | 2.90%, 09/15/2029 | | | 2,477,260 | |
| | | 2,745,000 | | | Exelon Corp. 3.95%, 06/15/2025 | | | 3,105,102 | |
| | | | | | FirstEnergy Corp. | |
| | | 285,000 | | | 1.60%, 01/15/2026 | | | 278,550 | |
| | | 1,550,000 | | | 2.25%, 09/01/2030 | | | 1,499,319 | |
| | | 360,000 | | | Florida Power & Light Co. 3.99%, 03/01/2049 | | | 468,464 | |
| | | | | | Georgia Power Co. | |
| | | 4,525,000 | | | 2.10%, 07/30/2023 | | | 4,726,349 | |
| | | 1,835,000 | | | 4.30%, 03/15/2042 | | | 2,330,219 | |
| | | | | | IPALCO Enterprises, Inc. | |
| | | 1,465,000 | | | 3.70%, 09/01/2024 | | | 1,596,810 | |
| | | 4,695,000 | | | 4.25%, 05/01/2030(1) | | | 5,420,072 | |
| | | 2,030,000 | | | ITC Holdings Corp. 2.95%, 05/14/2030(1) | | | 2,218,850 | |
| | | | | | MidAmerican Energy Co. | |
| | | 925,000 | | | 3.15%, 04/15/2050 | | | 1,063,392 | |
| | | 380,000 | | | 3.65%, 08/01/2048 | | | 464,612 | |
| | | 1,485,000 | | | NextEra Energy Capital Holdings, Inc. 2.25%, 06/01/2030 | | | 1,556,897 | |
| | | | | | NRG Energy, Inc. | |
| | | 1,705,000 | | | 2.00%, 12/02/2025(1) | | | 1,768,048 | |
| | | 1,705,000 | | | 2.45%, 12/02/2027(1) | | | 1,795,067 | |
| | | | | | Oglethorpe Power Corp. | |
| | | 360,000 | | | 3.75%, 08/01/2050(1) | | | 386,862 | |
| | | 1,130,000 | | | 5.05%, 10/01/2048 | | | 1,434,888 | |
| | | | | | Oncor Electric Delivery Co. LLC | |
| | | 360,000 | | | 3.10%, 09/15/2049 | | | 410,529 | |
| | | 565,000 | | | 5.75%, 03/15/2029 | | | 745,103 | |
| | | 3,780,000 | | | Pacific Gas and Electric Co. 2.50%, 02/01/2031 | | | 3,793,802 | |
| | | | | | PacifiCorp | |
| | | 306,000 | | | 4.13%, 01/15/2049 | | | 393,437 | |
| | | 360,000 | | | 4.15%, 02/15/2050 | | | 469,664 | |
| | | 395,000 | | | Public Service Electric & Gas Co. 3.80%, 03/01/2046 | | | 485,105 | |
| | | | | | Public Service Enterprise Group, Inc. | |
| | | 1,230,000 | | | 1.60%, 08/15/2030 | | | 1,212,751 | |
| | | 1,820,000 | | | 2.88%, 06/15/2024 | | | 1,959,271 | |
| | | | | | Puget Energy, Inc. | |
| | | 2,070,000 | | | 3.65%, 05/15/2025 | | | 2,282,832 | |
| | | 1,835,000 | | | 4.10%, 06/15/2030 | | | 2,074,889 | |
| | | 205,000 | | | Sempra Energy 4.00%, 02/01/2048 | | | 244,264 | |
| | | | | | Southern California Edison Co. | |
| | | 675,000 | | | 2.25%, 06/01/2030(7) | | | 702,781 | |
| | | 1,950,000 | | | 2.85%, 08/01/2029 | | | 2,121,611 | |
| | | 235,000 | | | 3.65%, 02/01/2050 | | | 266,916 | |
| | | 511,000 | | | 4.00%, 04/01/2047 | | | 600,220 | |
| | | | | | Southern Co. | |
| | | 625,000 | | | 2.95%, 07/01/2023 | | | 661,852 | |
| | | 5,365,000 | | | 3.70%, 04/30/2030 | | | 6,212,483 | |
| | | 380,000 | | | Union Electric Co. 4.00%, 04/01/2048 | | | 478,936 | |
| | | | | | | | | | |
| | | | | | | | | 72,155,639 | |
| | | | | | | | | | |
| | | | | | Engineering & Construction - 0.1% | |
| | | 3,242,471 | | | International Airport Finance S.A. 12.00%, 03/15/2033(1) | | | 3,218,152 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Entertainment - 0.1% | |
| $ | | | 1,025,000 | | | GLP Capital L.P. / GLP Financing II, Inc. 5.30%, 01/15/2029 | | $ | 1,185,874 | |
| | | 265,000 | | | WMG Acquisition Corp. 3.88%, 07/15/2030(1) | | | 281,634 | |
| | | | | | | | | | |
| | | | | | | | | 1,467,508 | |
| | | | | | | | | | |
| | | | | | Environmental Control - 0.3% | |
| | | | | | Clean Harbors, Inc. | |
| | | 5,241,000 | | | 4.88%, 07/15/2027(1) | | | 5,467,988 | |
| | | 116,000 | | | 5.13%, 07/15/2029(1) | | | 126,730 | |
| | | | | | Waste Management, Inc. | |
| | | 560,000 | | | 2.50%, 11/15/2050 | | | 565,800 | |
| | | 235,000 | | | 4.15%, 07/15/2049 | | | 313,186 | |
| | | | | | | | | | |
| | | | | | | | | 6,473,704 | |
| | | | | | | | | | |
| | | | | | Food - 0.6% | |
| | | | | | Conagra Brands, Inc. | |
| | | 2,235,000 | | | 1.38%, 11/01/2027 | | | 2,255,627 | |
| | | 775,000 | | | 4.30%, 05/01/2024 | | | 867,335 | |
| | | 240,000 | | | 4.60%, 11/01/2025 | | | 282,704 | |
| | | 901,000 | | | 4.85%, 11/01/2028 | | | 1,118,928 | |
| | | 335,000 | | | 5.40%, 11/01/2048 | | | 478,086 | |
| | | 1,325,000 | | | Kellogg Co. 3.40%, 11/15/2027 | | | 1,498,566 | |
| | | | | | Kraft Heinz Foods Co. | |
| | | 45,000 | | | 3.75%, 04/01/2030(1) | | | 48,095 | |
| | | 95,000 | | | 4.25%, 03/01/2031(1) | | | 105,930 | |
| | | 5,000 | | | 4.63%, 01/30/2029 | | | 5,721 | |
| | | 2,090,000 | | | Minerva Luxembourg S.A. 6.50%, 09/20/2026(6) | | | 2,194,521 | |
| | | 1,425,000 | | | Mondelez International, Inc. 1.50%, 02/04/2031 | | | 1,407,899 | |
| | | 3,070,000 | | | NBM U.S. Holdings, Inc. 7.00%, 05/14/2026(1) | | | 3,342,493 | |
| | | 285,000 | | | TreeHouse Foods, Inc. 6.00%, 02/15/2024(1) | | | 290,344 | |
| | | | | | | | | | |
| | | | | | | | | 13,896,249 | |
| | | | | | | | | | |
| | | | | | Food Service - 0.0% | |
| | | 160,000 | | | Aramark Services, Inc. 5.00%, 02/01/2028(1) | | | 168,600 | |
| | | | | | | | | | |
| | | | | | Forest Products & Paper - 0.2% | |
| | | 4,120,000 | | | Suzano Austria GmbH 5.00%, 01/15/2030 | | | 4,678,796 | |
| | | | | | | | | | |
| | | | | | Gas - 0.4% | |
| | | | | | AmeriGas Partners L.P. / AmeriGas Finance Corp. | | | | |
| | | 70,000 | | | 5.63%, 05/20/2024 | | | 75,425 | |
| | | 375,000 | | | 5.88%, 08/20/2026 | | | 421,875 | |
| | | 1,375,000 | | | Dominion Energy Gas Holdings LLC 2.50%, 11/15/2024 | | | 1,471,049 | |
| | | | | | NiSource, Inc. | |
| | | 1,750,000 | | | 3.49%, 05/15/2027 | | | 1,984,374 | |
| | | 2,775,000 | | | 3.60%, 05/01/2030 | | | 3,211,157 | |
| | | | | | Sempra Energy | |
| | | 1,615,000 | | | 3.40%, 02/01/2028 | | | 1,839,358 | |
| | | 720,000 | | | 3.80%, 02/01/2038 | | | 833,977 | |
| | | | | | | | | | |
| | | 9,837,215 | |
| | | | | | | | | | |
| | | | | | Healthcare - Products - 0.6% | |
| | | | | | Alcon Finance Corp. | |
| | | 1,739,000 | | | 2.75%, 09/23/2026(1) | | | 1,903,288 | |
| | | 1,145,000 | | | 3.00%, 09/23/2029(1) | | | 1,249,644 | |
| | | 940,000 | | | Baxter International, Inc. 3.95%, 04/01/2030(1) | | | 1,123,405 | |
| | | 3,925,000 | | | Becton Dickinson and Co. 3.36%, 06/06/2024 | | | 4,266,768 | |
| | | | | | Boston Scientific Corp. | |
| | | 1,030,000 | | | 1.90%, 06/01/2025 | | | 1,081,924 | |
| | | 3,410,000 | | | 3.75%, 03/01/2026 | | | 3,869,805 | |
| | | 690,000 | | | Hill-Rom Holdings, Inc. 4.38%, 09/15/2027(1) | | | 728,947 | |
| | | 250,000 | | | Teleflex, Inc. 4.25%, 06/01/2028(1) | | | 265,000 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Healthcare - Products - 0.6% - (continued) | |
| $ | | | 255,000 | | | Thermo Fisher Scientific, Inc. 3.00%, 04/15/2023 | | $ | 269,124 | |
| | | | | | | | | | |
| | | 14,757,905 | |
| | | | | | | | | | |
| | | | | | Healthcare - Services - 0.9% | |
| | | | | | Anthem, Inc. | |
| | | 1,335,000 | | | 3.50%, 08/15/2024 | | | 1,464,802 | |
| | | 410,000 | | | 4.63%, 05/15/2042 | | | 534,604 | |
| | | | | | Centene Corp. | |
| | | 95,000 | | | 3.38%, 02/15/2030 | | | 99,949 | |
| | | 435,000 | | | 4.25%, 12/15/2027 | | | 461,100 | |
| | | 5,019,000 | | | 4.63%, 12/15/2029 | | | 5,572,144 | |
| | | 360,000 | | | CommonSpirit Health 3.35%, 10/01/2029 | | | 395,305 | |
| | | 710,000 | | | HCA, Inc. 3.50%, 09/01/2030 | | | 754,429 | |
| | | 5,265,000 | | | Rede D’or Finance S.a.r.l. 4.50%, 01/22/2030(1) | | | 5,488,763 | |
| | | 990,000 | | | Sutter Health 3.36%, 08/15/2050 | | | 1,077,652 | |
| | | | | | UnitedHealth Group, Inc. | |
| | | 1,420,000 | | | 2.38%, 08/15/2024 | | | 1,513,575 | |
| | | 1,205,000 | | | 2.88%, 08/15/2029 | | | 1,369,679 | |
| | | 830,000 | | | 3.50%, 08/15/2039 | | | 987,386 | |
| | | 405,000 | | | 4.75%, 07/15/2045 | | | 569,802 | |
| | | | | | | | | | |
| | | 20,289,190 | |
| | | | | | | | | | |
| | | | | | Home Builders - 0.3% | |
| | | 5,355,000 | | | PulteGroup, Inc. 5.50%, 03/01/2026 | | | 6,371,995 | |
| | | 575,000 | | | Toll Brothers Finance Corp. 4.88%, 11/15/2025 | | | 645,437 | |
| | | | | | | | | | |
| | | 7,017,432 | |
| | | | | | | | | | |
| | | | | | Insurance - 1.1% | |
| | | 4,045,000 | | | American International Group, Inc. 2.50%, 06/30/2025 | | | 4,348,361 | |
| | | 1,515,000 | | | Aon Corp. 2.20%, 11/15/2022 | | | 1,565,862 | |
| | | 5,440,000 | | | Brighthouse Financial, Inc. 5.63%, 05/15/2030 | | | 6,715,576 | |
| | | | | | Genworth Holdings, Inc. | | | | |
| | | 20,000 | | | 4.80%, 02/15/2024 | | | 18,700 | |
| | | 380,000 | | | 4.90%, 08/15/2023 | | | 359,100 | |
| | | | | | Marsh & McLennan Cos., Inc. | |
| | | 1,480,000 | | | 3.88%, 03/15/2024 | | | 1,632,377 | |
| | | 1,300,000 | | | 4.75%, 03/15/2039 | | | 1,749,766 | |
| | | 415,000 | | | Massachusetts Mutual Life Insurance Co. 3.73%, 10/15/2070(1) | | | 458,186 | |
| | | 345,000 | | | MGIC Investment Corp. 5.75%, 08/15/2023(7) | | | 374,325 | |
| | | 2,600,000 | | | New York Life Global Funding 2.00%, 01/22/2025(1) | | | 2,735,544 | |
| | | 1,250,000 | | | Progressive Corp. 3.20%, 03/26/2030 | | | 1,439,555 | |
| | | | | | Unum Group | |
| | | 640,000 | | | 4.00%, 06/15/2029 | | | 719,835 | |
| | | 1,325,000 | | | 4.50%, 03/15/2025 | | | 1,500,758 | |
| | | 1,215,000 | | | 4.50%, 12/15/2049 | | | 1,280,297 | |
| | | 35,000 | | | Voya Financial, Inc. 4.80%, 06/15/2046 | | | 44,367 | |
| | | 1,035,000 | | | Willis North America, Inc. 3.60%, 05/15/2024 | | | 1,130,125 | |
| | | | | | | | | | |
| | | 26,072,734 | |
| | | | | | | | | | |
| | | | | | Internet - 0.7% | |
| | | 2,975,000 | | | Alibaba Group Holding Ltd. 3.40%, 12/06/2027 | | | 3,330,517 | |
| | | 2,320,000 | | | Amazon.com, Inc. 3.88%, 08/22/2037 | | | 2,894,129 | |
| | | 4,445,000 | | | NortonLifeLock, Inc. 5.00%, 04/15/2025(1) | | | 4,533,900 | |
| | | | | | Tencent Holdings Ltd. | |
| | | 1,330,000 | | | 1.81%, 01/26/2026(1) | | | 1,358,949 | |
| | | 800,000 | | | 2.39%, 06/03/2030(1) | | | 822,048 | |
| | | 1,210,000 | | | 3.60%, 01/19/2028(1) | | | 1,335,757 | |
| | | 1,665,000 | | | 3.98%, 04/11/2029(1) | | | 1,897,071 | |
| | | | | | | | | | |
| | | 16,172,371 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Iron/Steel - 0.3% | |
| $ | | | 285,000 | | | Commercial Metals Co. 5.38%, 07/15/2027 | | $ | 299,962 | |
| EUR | | | 1,755,000 | | | Metinvest B.V. 5.63%, 06/17/2025(1) | | | 2,219,036 | |
| $ | | | 1,653,000 | | | Steel Dynamics, Inc. 2.80%, 12/15/2024 | | | 1,777,124 | |
| | | 3,170,000 | | | Vale Overseas Ltd. 3.75%, 07/08/2030 | | | 3,526,657 | |
| | | | | | | | | | |
| | | 7,822,779 | |
| | | | | | | | | | |
| | | | | | IT Services - 0.8% | |
| | | | | | Apple, Inc. | | | | |
| | | 1,710,000 | | | 2.20%, 09/11/2029 | | | 1,846,330 | |
| | | 490,000 | | | 2.65%, 05/11/2050 | | | 520,060 | |
| | | 885,000 | | | 3.45%, 02/09/2045 | | | 1,074,042 | |
| | | 4,602,000 | | | Booz Allen Hamilton, Inc. 3.88%, 09/01/2028(1) | | | 4,740,060 | |
| | | | | | HP, Inc. | |
| | | 1,115,000 | | | 2.20%, 06/17/2025 | | | 1,180,494 | |
| | | 1,260,000 | | | 3.00%, 06/17/2027 | | | 1,390,293 | |
| | | | | | IBM Corp. | |
| | | 3,500,000 | | | 1.95%, 05/15/2030 | | | 3,607,518 | |
| | | 2,885,000 | | | 3.50%, 05/15/2029 | | | 3,338,163 | |
| | | 470,000 | | | 4.25%, 05/15/2049 | | | 617,173 | |
| | | 1,070,000 | | | Leidos, Inc. 3.63%, 05/15/2025(1) | | | 1,196,356 | |
| | | | | | | | | | |
| | | | | | | | | 19,510,489 | |
| | | | | | | | | | |
| | | | | | Lodging - 0.0% | |
| | | 85,000 | | | Hilton Domestic Operating Co., Inc. 5.13%, 05/01/2026 | | | 87,762 | |
| | | 975,000 | | | Las Vegas Sands Corp. 3.50%, 08/18/2026 | | | 1,043,342 | |
| | | | | | | | | | |
| | | | | | | | | 1,131,104 | |
| | | | | | | | | | |
| | | | | | Machinery - Diversified - 0.1% | |
| | | 2,405,000 | | | Otis Worldwide Corp. 2.57%, 02/15/2030 | | | 2,582,560 | |
| | | | | | | | | | |
| | | | | | Media - 2.4% | |
| | | | | | CCO Holdings LLC / CCO Holdings Capital Corp. | | | | |
| | | 980,000 | | | 4.25%, 02/01/2031(1) | | | 1,032,783 | |
| | | 502,000 | | | 4.50%, 08/15/2030(1) | | | 532,748 | |
| | | 150,000 | | | 5.13%, 05/01/2027(1) | | | 159,179 | |
| | | 145,000 | | | 5.75%, 02/15/2026(1) | | | 149,618 | |
| | | | | | Charter Communications Operating LLC / Charter Communications Operating Capital | | | | |
| | | 2,100,000 | | | 2.30%, 02/01/2032 | | | 2,102,439 | |
| | | 270,000 | | | 3.70%, 04/01/2051 | | | 280,383 | |
| | | 1,245,000 | | | 5.13%, 07/01/2049 | | | 1,519,540 | |
| | | 4,055,000 | | | 6.48%, 10/23/2045 | | | 5,735,633 | |
| | | 380,000 | | | 6.83%, 10/23/2055 | | | 576,338 | |
| | | | | | Comcast Corp. | |
| | | 490,000 | | | 3.20%, 07/15/2036 | | | 556,674 | |
| | | 2,055,000 | | | 3.25%, 11/01/2039 | | | 2,333,218 | |
| | | 285,000 | | | 3.40%, 07/15/2046 | | | 328,111 | |
| | | 1,790,000 | | | 3.75%, 04/01/2040 | | | 2,162,365 | |
| | | 95,000 | | | 4.05%, 11/01/2052 | | | 121,502 | |
| | | 645,000 | | | 4.60%, 10/15/2038 | | | 849,998 | |
| | | 785,000 | | | 4.75%, 03/01/2044 | | | 1,075,808 | |
| | | 655,000 | | | 4.95%, 10/15/2058 | | | 994,461 | |
| | | 3,952,000 | | | Cox Communications, Inc. 3.15%, 08/15/2024(1) | | | 4,284,808 | |
| | | | | | CSC Holdings LLC | |
| | | 4,740,000 | | | 3.38%, 02/15/2031(1) | | | 4,651,125 | |
| | | 400,000 | | | 4.13%, 12/01/2030(1) | | | 418,240 | |
| | | 430,000 | | | 5.50%, 04/15/2027(1) | | | 455,800 | |
| | | | | | Discovery Communications LLC | |
| | | 840,000 | | | 3.80%, 03/13/2024 | | | 916,521 | |
| | | 19,000 | | | 3.95%, 06/15/2025 | | | 21,347 | |
| | | 2,420,000 | | | 4.00%, 09/15/2055(1) | | | 2,708,702 | |
| | | 826,000 | | | 5.30%, 05/15/2049 | | | 1,089,813 | |
| | | 555,000 | | | DISH DBS Corp. 5.88%, 11/15/2024 | | | 581,937 | |
| | | 1,500,000 | | | NBCUniversal Media LLC 5.95%, 04/01/2041 | | | 2,290,962 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Media - 2.4% - (continued) | |
| $ | | | 280,000 | | | Sirius XM Radio, Inc. 4.13%, 07/01/2030(1) | | $ | 298,025 | |
| | | 1,495,000 | | | Time Warner Cable LLC 6.55%, 05/01/2037 | | | 2,052,219 | |
| | | 4,665,000 | | | Time Warner Entertainment Co. L.P. 8.38%, 07/15/2033 | | | 7,216,279 | |
| | | | | | ViacomCBS, Inc. | |
| | | 940,000 | | | 4.20%, 05/19/2032 | | | 1,132,838 | |
| | | 4,595,000 | | | 4.95%, 01/15/2031 | | | 5,767,313 | |
| | | 55,000 | | | 5.88%, 02/28/2057, (5.88% fixed rate until 02/28/2022; 3 mo. USD LIBOR + 3.895% thereafter)(8) | | | 57,063 | |
| | | 79,000 | | | 6.25%, 02/28/2057, (6.25% fixed rate until 02/28/2027; 3 mo. USD LIBOR + 3.899% thereafter)(8) | | | 88,689 | |
| | | 550,000 | | | Videotron Ltd. 5.38%, 06/15/2024(1) | | | 606,375 | |
| | | 2,260,000 | | | Walt Disney Co. 2.65%, 01/13/2031 | | | 2,477,666 | |
| | | | | | | | | | |
| | | | | | | | | 57,626,520 | |
| | | | | | | | | | |
| | | | | | Mining - 0.2% | |
| | | | | | Anglo American Capital plc | |
| | | 255,000 | | | 2.63%, 09/10/2030(1) | | | 266,651 | |
| | | 945,000 | | | 4.50%, 03/15/2028(1) | | | 1,109,649 | |
| | | 1,945,000 | | | 4.88%, 05/14/2025(1) | | | 2,249,892 | |
| | | 1,000,000 | | | 5.63%, 04/01/2030(1) | | | 1,270,630 | |
| | | 280,000 | | | Kaiser Aluminum Corp. 4.63%, 03/01/2028(1) | | | 290,500 | |
| | | | | | | | | | |
| | | | | | | | | 5,187,322 | |
| | | | | | | | | | |
| | | | | | Miscellaneous Manufacturing - 0.1% | |
| | | 1,055,000 | | | General Electric Co. 3.63%, 05/01/2030 | | | 1,205,746 | |
| | | 930,000 | | | Ingersoll-Rand Global Holding Co., Ltd. 2.90%, 02/21/2021 | | | 932,943 | |
| | | 340,000 | | | Ingersoll-Rand Luxembourg Finance S.A. 4.50%, 03/21/2049 | | | 443,237 | |
| | | | | | | | | | |
| | | | | | | | | 2,581,926 | |
| | | | | | | | | | |
| | | | | | Office/Business Equipment - 0.2% | |
| | | | | | CDW LLC / CDW Finance Corp. | |
| | | 2,909,000 | | | 3.25%, 02/15/2029 | | | 2,966,307 | |
| | | 280,000 | | | 4.25%, 04/01/2028 | | | 295,613 | |
| | | 280,000 | | | Xerox Holdings Corp. 5.50%, 08/15/2028(1) | | | 297,122 | |
| | | | | | | | | | |
| | | | | | | | | 3,559,042 | |
| | | | | | | | | | |
| | | | | | Oil & Gas - 1.0% | |
| | | 150,000 | | | Aker BP ASA 5.88%, 03/31/2025(1) | | | 155,386 | |
| | | 270,000 | | | Apache Corp. 4.88%, 11/15/2027 | | | 286,200 | |
| | | 310,000 | | | BP Capital Markets America, Inc. 3.63%, 04/06/2030 | | | 361,138 | |
| | | 220,000 | | | Continental Resources, Inc. 5.75%, 01/15/2031(1) | | | 244,196 | |
| | | | | | Equinor ASA | |
| | | 1,400,000 | | | 1.75%, 01/22/2026 | | | 1,470,673 | |
| | | 1,275,000 | | | 3.63%, 04/06/2040 | | | 1,527,562 | |
| | | 850,000 | | | 3.70%, 04/06/2050 | | | 1,024,371 | |
| | | 1,720,000 | | | Exxon Mobil Corp. 4.23%, 03/19/2040 | | | 2,142,002 | |
| | | | | | Hess Corp. | |
| | | 942,000 | | | 7.13%, 03/15/2033 | | | 1,230,192 | |
| | | 1,075,000 | | | 7.30%, 08/15/2031 | | | 1,406,488 | |
| | | 2,245,000 | | | Marathon Petroleum Corp. 4.70%, 05/01/2025 | | | 2,571,771 | |
| | | | | | Ovintiv, Inc. | |
| | | 51,000 | | | 6.50%, 08/15/2034 | | | 59,060 | |
| | | 50,000 | | | 6.50%, 02/01/2038 | | | 55,833 | |
| | | 7,000 | | | 7.20%, 11/01/2031 | | | 8,285 | |
| | | 83,000 | | | 7.38%, 11/01/2031 | | | 98,550 | |
| | | 685,000 | | | Phillips 66 2.15%, 12/15/2030 | | | 695,392 | |
| | | 10,000 | | | QEP Resources, Inc. 5.38%, 10/01/2022 | | | 10,413 | |
| | | | | | Saudi Arabian Oil Co. | |
| | | 425,000 | | | 1.63%, 11/24/2025(1) | | | 435,508 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Oil & Gas - 1.0% - (continued) | |
| $ | | | 780,000 | | | 2.25%, 11/24/2030(1) | | $ | 794,308 | |
| | | 814,000 | | | 2.88%, 04/16/2024(1) | | | 863,779 | |
| | | 255,000 | | | SM Energy Co. 6.13%, 11/15/2022 | | | 246,075 | |
| | | | | | Sunoco L.P. / Sunoco Finance Corp. | |
| | | 295,000 | | | 5.50%, 02/15/2026 | | | 302,375 | |
| | | 250,000 | | | 6.00%, 04/15/2027 | | | 265,755 | |
| | | 2,320,000 | | | Tullow Oil plc 7.00%, 03/01/2025(1) | | | 1,542,800 | |
| | | Valero Energy Corp. | |
| | | 2,815,000 | | | 2.15%, 09/15/2027 | | | 2,876,266 | |
| | | 790,000 | | | 4.00%, 04/01/2029 | | | 888,758 | |
| | | 1,105,000 | | | 4.90%, 03/15/2045 | | | 1,287,824 | |
| ARS | | | 93,580,252 | | | YPF S.A. 16.50%, 05/09/2022(1) | | | 722,367 | |
| | | | | | | | | | |
| | | | | | | | | 23,573,327 | |
| | | | | | | | | | |
| | | | | | Oil & Gas Services - 0.2% | |
| $ | | | 4,165,000 | | | Borets Finance DAC 6.00%, 09/17/2026(1) | | | 4,347,427 | |
| | | 745,000 | | | Halliburton Co. 4.85%, 11/15/2035 | | | 869,434 | |
| | | | | | | | | | |
| | | | | | | | | 5,216,861 | |
| | | | | | | | | | |
| | | | | | Packaging & Containers - 0.3% | |
| | | 400,000 | | | Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. 4.13%, 08/15/2026(1) | | | 418,000 | |
| | | 4,650,000 | | | Ball Corp. 4.00%, 11/15/2023 | | | 4,952,250 | |
| | | 890,000 | | | Mondelez International, Inc. 1.50%, 05/04/2025 | | | 920,481 | |
| | | 695,000 | | | Owens-Brockway Glass Container, Inc. 5.88%, 08/15/2023(1) | | | 744,519 | |
| | | 11,000 | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu 5.13%, 07/15/2023(1) | | | 11,135 | |
| | | | | | | | | | |
| | | | | | | | | 7,046,385 | |
| | | | | | | | | | |
| | | | Pharmaceuticals - 1.5% | |
| | | | | | AbbVie, Inc. | |
| | | 2,500,000 | | | 2.95%, 11/21/2026 | | | 2,764,623 | |
| | | 1,315,000 | | | 3.20%, 11/21/2029 | | | 1,473,715 | |
| | | 1,725,000 | | | 4.25%, 11/21/2049 | | | 2,162,842 | |
| | | 1,115,000 | | | 4.63%, 10/01/2042 | | | 1,415,791 | |
| | | | | | Bausch Health Cos., Inc. | |
| | | 360,000 | | | 5.75%, 08/15/2027(1) | | | 386,100 | |
| | | 140,000 | | | 7.00%, 03/15/2024(1) | | | 144,025 | |
| | | 95,000 | | | Baxalta, Inc. 3.60%, 06/23/2022 | | | 98,849 | |
| | | | | | Bayer U.S. Finance LLC | |
| | | 2,515,000 | | | 4.25%, 12/15/2025(1) | | | 2,874,847 | |
| | | 460,000 | | | 4.88%, 06/25/2048(1) | | | 592,444 | |
| | | 750,000 | | | Becton Dickinson and Co. 2.82%, 05/20/2030 | | | 824,321 | |
| | | | | | Bristol-Myers Squibb Co. | |
| | | 3,495,000 | | | 0.75%, 11/13/2025 | | | 3,518,977 | |
| | | 855,000 | | | 2.55%, 11/13/2050 | | | 872,909 | |
| | | | | | CVS Health Corp. | |
| | | 2,270,000 | | | 4.13%, 04/01/2040 | | | 2,723,171 | |
| | | 80,000 | | | 5.05%, 03/25/2048 | | | 108,422 | |
| | | 1,715,000 | | | 5.13%, 07/20/2045 | | | 2,309,010 | |
| | | 1,760,000 | | | GlaxoSmithKline Capital, Inc. 3.63%, 05/15/2025 | | | 1,976,054 | |
| | | | | | Pfizer, Inc. | |
| | | 1,590,000 | | | 1.70%, 05/28/2030 | | | 1,650,948 | |
| | | 720,000 | | | 2.63%, 04/01/2030 | | | 803,627 | |
| | | 1,975,000 | | | Prestige Auto Receivables Trust 1.62%, 11/16/2026(1) | | | 1,986,400 | |
| | | 416,000 | | | Shire Acquisitions Investments Ireland DAC 2.40%, 09/23/2021 | | | 421,425 | |
| | | 850,000 | | | Takeda Pharmaceutical Co., Ltd. 2.05%, 03/31/2030 | | | 870,053 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | Pharmaceuticals - 1.5% - (continued) | |
| | | | | | Teva Pharmaceutical Finance Netherlands B.V. | |
| $ | | | 3,825,000 | | | 3.15%, 10/01/2026 | | $ | 3,676,819 | |
| | | 900,000 | | | 6.75%, 03/01/2028(7) | | | 1,018,125 | |
| | | | | | Upjohn, Inc. | |
| | | 700,000 | | | 1.65%, 06/22/2025(1) | | | 724,005 | |
| | | 650,000 | | | 2.30%, 06/22/2027(1) | | | 692,004 | |
| | | | | | | | | | |
| | | | | | | | | 36,089,506 | |
| | | | | | | | | | |
| | | | | | Pipelines - 1.5% | |
| | | 280,000 | | | Cheniere Corpus Christi Holdings LLC 5.88%, 03/31/2025 | | | 325,858 | |
| | | 65,000 | | | Cheniere Energy Partners L.P. 4.50%, 10/01/2029 | | | 68,756 | |
| | | 215,000 | | | DCP Midstream Operating L.P. 5.60%, 04/01/2044 | | | 221,712 | |
| | | | | | Energy Transfer Operating L.P. | |
| | | 855,000 | | | 3.75%, 05/15/2030 | | | 922,248 | |
| | | 2,010,000 | | | 4.95%, 06/15/2028 | | | 2,316,755 | |
| | | 1,390,000 | | | 5.25%, 04/15/2029 | | | 1,622,906 | |
| | | 2,385,000 | | | 6.13%, 12/15/2045 | | | 2,817,393 | |
| | | 125,000 | | | EQM Midstream Partners L.P. 6.50%, 07/01/2027(1) | | | 140,754 | |
| | | 5,635,000 | | | Galaxy Pipeline Assets Bidco Ltd. 2.63%, 03/31/2036(1) | | | 5,845,366 | |
| | | 1,970,000 | | | Kinder Morgan Energy Partners L.P. 3.50%, 03/01/2021 | | | 1,970,000 | |
| | | | | | MPLX L.P. | |
| | | 135,000 | | | 1.75%, 03/01/2026 | | | 139,712 | |
| | | 720,000 | | | 4.13%, 03/01/2027 | | | 830,401 | |
| | | 1,120,000 | | | 4.25%, 12/01/2027 | | | 1,315,071 | |
| | | 1,535,000 | | | 4.70%, 04/15/2048 | | | 1,820,326 | |
| | | 325,000 | | | 5.20%, 03/01/2047 | | | 395,354 | |
| | | 155,000 | | | 5.50%, 02/15/2049 | | | 204,106 | |
| | | | | | ONEOK, Inc. | |
| | | 255,000 | | | 3.10%, 03/15/2030 | | | 271,648 | |
| | | 175,000 | | | 4.00%, 07/13/2027 | | | 195,133 | |
| | | 860,000 | | | 4.45%, 09/01/2049 | | | 904,562 | |
| | | 1,005,000 | | | 5.85%, 01/15/2026 | | | 1,204,415 | |
| | | 345,000 | | | 6.00%, 06/15/2035 | | | 422,505 | |
| | | 170,000 | | | 7.15%, 01/15/2051 | | | 234,778 | |
| | | 1,945,000 | | | Phillips 66 Partners L.P. 4.90%, 10/01/2046 | | | 2,179,416 | |
| | | 1,640,000 | | | Sabine Pass Liquefaction LLC 4.50%, 05/15/2030(1) | | | 1,943,855 | |
| | | | | | Sunoco Logistics Partners Operations L.P. | |
| | | 495,000 | | | 4.00%, 10/01/2027 | | | 543,566 | |
| | | 175,000 | | | 5.30%, 04/01/2044 | | | 189,110 | |
| | | 180,000 | | | 5.35%, 05/15/2045 | | | 198,290 | |
| | | 280,000 | | | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 4.88%, 02/01/2031(1) | | | 305,085 | |
| | | 785,000 | | | Texas Eastern Transmission L.P. 2.80%, 10/15/2022(1) | | | 811,409 | |
| | | | | | TransCanada PipeLines Ltd. | |
| | | 1,655,000 | | | 4.10%, 04/15/2030 | | | 1,957,580 | |
| | | 1,040,000 | | | 4.63%, 03/01/2034 | | | 1,270,905 | |
| | | 140,000 | | | Western Midstream Operating L.P. 5.05%, 02/01/2030 | | | 156,773 | |
| | | | | | Williams Cos., Inc. | |
| | | 72,000 | | | 4.90%, 01/15/2045 | | | 85,021 | |
| | | 135,000 | | | 5.10%, 09/15/2045 | | | 166,854 | |
| | | 265,000 | | | 5.80%, 11/15/2043 | | | 345,804 | |
| | | 243,000 | | | 6.30%, 04/15/2040 | | | 323,175 | |
| | | | | | | | | | |
| | | | | | | | | 34,666,602 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Real Estate Investment Trusts - 1.1% | |
| | | | | | American Tower Corp. | |
| $ | | | 2,555,000 | | | 1.50%, 01/31/2028 | | $ | 2,570,965 | |
| | | 1,085,000 | | | 2.40%, 03/15/2025 | | | 1,153,313 | |
| | | 1,815,000 | | | 2.95%, 01/15/2051 | | | 1,819,330 | |
| | | 2,460,000 | | | Brixmor Operating Partnership L.P. 4.05%, 07/01/2030 | | | 2,823,525 | |
| | | 325,000 | | | Equinix, Inc. 1.80%, 07/15/2027 | | | 334,552 | |
| | | | | | GLP Capital L.P. / GLP Financing II, Inc. | |
| | | 2,315,000 | | | 4.00%, 01/15/2031 | | | 2,526,174 | |
| | | 1,535,000 | | | 5.75%, 06/01/2028 | | | 1,818,146 | |
| | | | | | SBA Tower Trust | |
| | | 2,240,000 | | | 2.84%, 01/15/2050(1) | | | 2,384,813 | |
| | | 4,815,000 | | | 3.17%, 04/09/2047(1) | | | 4,853,787 | |
| | | 4,540,000 | | | 3.45%, 03/15/2048(1) | | | 4,814,502 | |
| | | | | | VEREIT Operating Partnership L.P. | |
| | | 120,000 | | | 2.20%, 06/15/2028 | | | 122,704 | |
| | | 145,000 | | | 2.85%, 12/15/2032 | | | 151,619 | |
| | | 465,000 | | | 3.40%, 01/15/2028 | | | 513,334 | |
| | | 160,000 | | | VICI Properties L.P. / VICI Note Co., Inc. 4.25%, 12/01/2026(1) | | | 165,944 | |
| | | | | | | | | | |
| | | | | | | | | 26,052,708 | |
| | | | | | | | | | |
| | | | | | Retail - 0.9% | |
| | | | | | 1011778 BC ULC / New Red Finance, Inc. | |
| | | 620,000 | | | 3.88%, 01/15/2028(1) | | | 629,777 | |
| | | 77,000 | | | 4.25%, 05/15/2024(1) | | | 78,540 | |
| | | | | | Alimentation Couche-Tard, Inc. | |
| | | 570,000 | | | 2.95%, 01/25/2030(1) | | | 622,907 | |
| | | 385,000 | | | 3.80%, 01/25/2050(1) | | | 456,130 | |
| | | 1,755,000 | | | AutoZone, Inc. 3.63%, 04/15/2025(7) | | | 1,965,887 | |
| | | 2,267,000 | | | FirstCash, Inc. 4.63%, 09/01/2028(1) | | | 2,337,844 | |
| | | 3,340,000 | | | Home Depot, Inc. 3.30%, 04/15/2040 | | | 3,936,529 | |
| | | 270,000 | | | KFC Holding Co. / Pizza Hut Holdings LLC / Taco Bell of America LLC 4.75%, 06/01/2027(1) | | | 285,123 | |
| | | 550,000 | | | Lithia Motors, Inc. 4.63%, 12/15/2027(1) | | | 580,250 | |
| | | 3,940,000 | | | Lowe’s Cos., Inc. 1.70%, 10/15/2030 | | | 3,991,918 | |
| | | | | | McDonald’s Corp. | |
| | | 1,035,000 | | | 3.35%, 04/01/2023 | | | 1,102,559 | |
| | | 1,800,000 | | | 3.63%, 09/01/2049 | | | 2,112,333 | |
| | | 730,000 | | | 4.20%, 04/01/2050 | | | 938,479 | |
| | | 315,000 | | | Suburban Propane Partners L.P. / Suburban Energy Finance Corp. 5.88%, 03/01/2027 | | | 329,175 | |
| | | 445,000 | | | United Rentals North America, Inc. 4.88%, 01/15/2028 | | | 473,925 | |
| | | 975,000 | | | William Carter Co. 5.63%, 03/15/2027(1) | | | 1,026,187 | |
| | | | | | | | | | |
| | | | | | | | | 20,867,563 | |
| | | | | | | | | | |
| | | | | | Savings & Loans - 0.1% | |
| | | 1,065,000 | | | State Street Corp. 2.90%, 03/30/2026, (2.90% fixed rate until 03/30/2025; 3 mo. USD SOFR + 2.600% thereafter)(8) | | | 1,160,126 | |
| | | | | | | | | | |
| | | | | | Semiconductors - 1.0% | |
| | | 6,275,000 | | | Broadcom, Inc. 5.00%, 04/15/2030 | | | 7,627,965 | |
| | | | | | Entegris, Inc. | |
| | | 460,000 | | | 4.38%, 04/15/2028(1) | | | 490,475 | |
| | | 272,000 | | | 4.63%, 02/10/2026(1) | | | 282,200 | |
| | | 1,575,000 | | | Intel Corp. 3.10%, 02/15/2060 | | | 1,734,014 | |
| | | | | | Microchip Technology, Inc. | |
| | | 3,015,000 | | | 2.67%, 09/01/2023(1) | | | 3,153,280 | |
| | | 95,000 | | | 4.25%, 09/01/2025(1) | | | 100,505 | |
| | | 1,785,000 | | | NVIDIA Corp. 3.50%, 04/01/2040 | | | 2,143,638 | |
| | | | | | NXP B.V. / NXP Funding LLC | |
| | | 625,000 | | | 4.63%, 06/01/2023(1) | | | 683,142 | |
| | | 3,042,000 | | | 4.88%, 03/01/2024(1) | | | 3,431,132 | |
| | | 786,000 | | | 5.35%, 03/01/2026(1) | | | 946,944 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Semiconductors - 1.0% - (continued) | |
| $ | | | 1,080,000 | | | 5.55%, 12/01/2028(1) | | $ | 1,376,139 | |
| | | 215,000 | | | Qorvo, Inc. 3.38%, 04/01/2031(1) | | | 221,987 | |
| | | | | | QUALCOMM, Inc. | |
| | | 74,000 | | | 4.65%, 05/20/2035 | | | 98,990 | |
| | | 1,316,000 | | | 4.80%, 05/20/2045 | | | 1,872,365 | |
| | | 355,000 | | | Sensata Technologies B.V. 5.00%, 10/01/2025(1) | | | 394,937 | |
| | | 310,000 | | | Sensata Technologies UK Financing Co. plc
6.25%, 02/15/2026(1) | | | 322,206 | |
| | | | | | | | | | |
| | | | | | | | | 24,879,919 | |
| | | | | | | | | | |
| | | | | | Software - 1.4% | |
| | | 3,627,000 | | | Black Knight InfoServ LLC 3.63%, 09/01/2028(1) | | | 3,713,141 | |
| | | | | | CDK Global, Inc. | |
| | | 150,000 | | | 4.88%, 06/01/2027 | | | 158,250 | |
| | | 350,000 | | | 5.25%, 05/15/2029(1) | | | 387,772 | |
| | | 30,000 | | | 5.88%, 06/15/2026 | | | 31,473 | |
| | | | | | Fidelity National Information Services, Inc. | |
| | | 1,016,000 | | | 3.75%, 05/21/2029 | | | 1,192,781 | |
| | | 655,000 | | | 4.25%, 05/15/2028 | | | 779,633 | |
| | | | | | Fiserv, Inc. | |
| | | 5,025,000 | | | 2.25%, 06/01/2027 | | | 5,355,377 | |
| | | 1,710,000 | | | 3.20%, 07/01/2026 | | | 1,915,508 | |
| | | 560,000 | | | IQVIA, Inc. 5.00%, 05/15/2027(1) | | | 595,294 | |
| | | | | | Microsoft Corp. | |
| | | 131,000 | | | 2.68%, 06/01/2060 | | | 141,965 | |
| | | 735,000 | | | 3.70%, 08/08/2046 | | | 931,969 | |
| | | 619,000 | | | 3.95%, 08/08/2056 | | | 850,055 | |
| | | | | | MSCI, Inc. | |
| | | 10,000 | | | 3.63%, 09/01/2030(1) | | | 10,450 | |
| | | 603,000 | | | 3.88%, 02/15/2031(1) | | | 637,672 | |
| | | 1,460,000 | | | 4.00%, 11/15/2029(1) | | | 1,554,900 | |
| | | 4,876,000 | | | 5.38%, 05/15/2027(1) | | | 5,205,130 | |
| | | 260,000 | | | Open Text Corp. 5.88%, 06/01/2026(1) | | | 270,075 | |
| | | | | | Oracle Corp. | |
| | | 270,000 | | | 3.60%, 04/01/2040 | | | 316,220 | |
| | | 4,815,000 | | | 3.85%, 04/01/2060 | | | 5,921,076 | |
| | | 2,312,000 | | | SS&C Technologies, Inc. 5.50%, 09/30/2027(1) | | | 2,469,262 | |
| | | 310,000 | | | Western Digital Corp. 4.75%, 02/15/2026 | | | 342,550 | |
| | | | | | | | | | |
| | | | | | | | | 32,780,553 | |
| | | | | | | | | | |
| | | | | | Telecommunications - 3.0% | |
| | | | | | AT&T, Inc. | |
| | | 3,680,000 | | | 3.50%, 02/01/2061 | | | 3,665,206 | |
| | | 3,459,000 | | | 3.55%, 09/15/2055(1) | | | 3,447,258 | |
| | | 2,215,000 | | | 3.65%, 06/01/2051 | | | 2,319,311 | |
| | | 205,000 | | | 3.65%, 09/15/2059(1) | | | 206,996 | |
| | | 1,631,000 | | | 3.80%, 12/01/2057(1) | | | 1,704,292 | |
| | | 7,400,000 | | | GTP Acquisition Partners LLC 3.48%, 06/15/2050(1) | | | 7,933,846 | |
| | | | | | Nokia Oyj | |
| | | 1,125,000 | | | 4.38%, 06/12/2027 | | | 1,226,956 | |
| | | 575,000 | | | 6.63%, 05/15/2039 | | | 734,452 | |
| | | 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)(6)(8)(9) | | | 4,264,531 | |
| | | 425,000 | | | Sprint Corp. 7.13%, 06/15/2024 | | | 497,250 | |
| | | 2,375,000 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC 5.15%, 09/20/2029(1) | | | 2,749,063 | |
| | | | | | T-Mobile USA, Inc. | |
| | | 3,515,000 | | | 2.05%, 02/15/2028(1) | | | 3,656,162 | |
| | | 1,000,000 | | | 3.30%, 02/15/2051(1) | | | 1,028,830 | |
| | | 2,745,000 | | | 3.50%, 04/15/2025(1) | | | 3,033,170 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 35.6% - (continued) | |
| | | | | | Telecommunications - 3.0% - (continued) | |
| $ | | | 3,400,000 | | | 3.88%, 04/15/2030(1) | | $ | 3,937,880 | |
| | | 1,195,000 | | | 4.50%, 04/15/2050(1) | | | 1,473,895 | |
| | | 5,071,000 | | | 6.50%, 01/15/2026 | | | 5,248,485 | |
| | | | | | Telecom Italia Capital S.A. | |
| | | 265,000 | | | 6.00%, 09/30/2034 | | | 322,794 | |
| | | 160,000 | | | 7.72%, 06/04/2038 | | | 222,400 | |
| | | 3,085,000 | | | Telefonica Celular del Paraguay S.A. 5.88%, 04/15/2027(1) | | | 3,285,525 | |
| | | 1,490,000 | | | Telefonica Emisiones S.A. 5.21%, 03/08/2047 | | | 1,909,898 | |
| | | 2,050,000 | | | VEON Holdings B.V. 3.38%, 11/25/2027(1) | | | 2,106,601 | |
| | | | | | Verizon Communications, Inc. | |
| | | 1,275,000 | | | 2.65%, 11/20/2040 | | | 1,287,451 | |
| | | 765,000 | | | 2.88%, 11/20/2050 | | | 770,817 | |
| | | 274,000 | | | 2.99%, 10/30/2056(1) | | | 275,812 | |
| | | 510,000 | | | 3.00%, 11/20/2060 | | | 515,122 | |
| | | 2,603,000 | | | 4.27%, 01/15/2036 | | | 3,228,450 | |
| | | 3,185,000 | | | 4.40%, 11/01/2034 | | | 3,974,657 | |
| | | 1,735,000 | | | 4.50%, 08/10/2033 | | | 2,189,241 | |
| | | 875,000 | | | 4.67%, 03/15/2055 | | | 1,175,799 | |
| | | 100,000 | | | 4.81%, 03/15/2039 | | | 130,462 | |
| | | 540,000 | | | Vmed UK Financing plc 4.25%, 01/31/2031(1) | | | 550,800 | |
| | | 1,700,000 | | | Vodafone Group plc 6.15%, 02/27/2037 | | | 2,450,931 | |
| | | | | | | | | | |
| | | | | | | | | 71,524,343 | |
| | | | | | | | | | |
| | | | | | Transportation - 0.4% | |
| | | | | | FedEx Corp. | |
| | | 730,000 | | | 3.30%, 03/15/2027 | | | 817,891 | |
| | | 1,460,000 | | | 4.25%, 05/15/2030 | | | 1,773,919 | |
| | | | | | Penske Truck Leasing Co. L.P. / PTL Finance Corp. | | | | |
| | | 2,115,000 | | | 2.70%, 11/01/2024(1) | | | 2,265,851 | |
| | | 1,890,000 | | | 4.00%, 07/15/2025(1) | | | 2,143,288 | |
| | | 2,290,000 | | | Union Pacific Corp. 2.97%, 09/16/2062(1) | | | 2,391,881 | |
| | | | | | | | | | |
| | | | | | | | | 9,392,830 | |
| | | | | | | | | | |
| | | | Water - 0.1% | |
| | | American Water Capital Corp. | |
| | | 750,000 | | | 2.80%, 05/01/2030 | | | 827,911 | |
| | | 905,000 | | | 4.15%, 06/01/2049 | | | 1,198,281 | |
| | | | | | | | | | |
| | | 2,026,192 | |
| | | | | | | | | | |
| | |
| | | Total Corporate Bonds
(cost $780,277,946) | | $ | 845,704,889 | |
| | | | | | | | | | |
|
| FOREIGN GOVERNMENT OBLIGATIONS - 3.6% | |
| | | | Argentina - 0.0% | |
| | | Argentine Republic Government International Bond | | | | |
| | | 2,046,884 | | | 0.13%, 07/09/2035 | | $ | 747,113 | |
| | | 69,782 | | | 1.00%, 07/09/2029 | | | 30,268 | |
| | | | | | | | | | |
| | | 777,381 | |
| | | | | | | | | | |
| | | | Australia - 0.1% | |
| AUD | | | 4,095,000 | | | Australia Government Bond 1.75%, 06/21/2051(6) | | | 3,004,124 | |
| | | | | | | | | | |
| | | | Bermuda - 0.0% | |
| $ | | | 735,000 | | | Bermuda Government International Bond 2.38%, 08/20/2030(1) | | | 770,831 | |
| | | | | | | | | | |
| | | | Chile - 0.1% | |
| | | 2,535,000 | | | Chile Government International Bond 2.55%, 01/27/2032 | | | 2,725,125 | |
| | | | | | | | | | |
| | | | Dominican Republic - 0.2% | |
| | | 4,890,000 | | | Dominican Republic International Bond 6.40%, 06/05/2049(1) | | | 5,733,574 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 3.6% - (continued) | |
| | | | Egypt - 0.1% | |
| | | Egypt Government International Bond | |
| $ | | | 840,000 | | | 7.63%, 05/29/2032(1) | | $ | 950,040 | |
| | | 720,000 | | | 8.50%, 01/31/2047(6) | | | 813,600 | |
| | | 595,000 | | | 8.88%, 05/29/2050(1) | | | 697,209 | |
| | | | | | | | | | |
| | | 2,460,849 | |
| | | | | | | | | | |
| | | | Ghana - 0.1% | |
| | | 1,408,000 | | | Ghana Government International Bond 6.38%, 02/11/2027(1) | | | 1,460,361 | |
| | | | | | | | | | |
| | | | Hungary - 0.0% | |
| | | 710,000 | | | Hungary Government International Bond 6.38%, 03/29/2021 | | | 719,622 | |
| | | | | | | | | | |
| | | | Indonesia - 0.0% | |
| | | Indonesia Government International Bond | |
| EUR | | | 240,000 | | | 2.15%, 07/18/2024(6) | | | 311,755 | |
| | | 470,000 | | | 2.63%, 06/14/2023(6) | | | 608,569 | |
| | | | | | | | | | |
| | | 920,324 | |
| | | | | | | | | | |
| | | | Israel - 0.3% | |
| ILS | | | 14,775,000 | | | Israel Government Bond - Fixed 3.75%, 03/31/2047 | | | 6,416,748 | |
| | | | | | | | | | |
| | | | Japan - 1.0% | |
| JPY | | | 2,442,850,000 | | | Japan Treasury Discount Bill 0.00%, 03/15/2021(10) | | | 23,663,184 | |
| | | | | | | | | | |
| | | | Macedonia - 0.1% | |
| EUR | | | 2,165,000 | | | North Macedonia Government International Bond 3.68%, 06/03/2026(1) | | | 2,958,819 | |
| | | | | | | | | | |
| | | | Mexico - 0.4% | |
| | | Mexico Government International Bond | |
| | | 885,000 | | | 1.13%, 01/17/2030 | | | 1,074,565 | |
| $ | | | 200,000 | | | 3.25%, 04/16/2030 | | | 215,954 | |
| | | 1,440,000 | | | 3.77%, 05/24/2061 | | | 1,499,760 | |
| | | 1,380,000 | | | 4.50%, 04/22/2029 | | | 1,620,120 | |
| | | 3,535,000 | | | 4.75%, 04/27/2032 | | | 4,254,373 | |
| | | | | | | | | | |
| | | 8,664,772 | |
| | | | | | | | | | |
| | | | Panama - 0.1% | |
| | | Panama Government International Bond | |
| | | 1,000,000 | | | 2.25%, 09/29/2032 | | | 1,030,000 | |
| | | 440,000 | | | 3.16%, 01/23/2030 | | | 487,304 | |
| | | | | | | | | | |
| | | 1,517,304 | |
| | | | | | | | | | |
| | | | Peru - 0.0% | |
| | | 540,000 | | | Peruvian Government International Bond
2.39%, 01/23/2026 | | | 575,915 | |
| | | | | | | | | | |
| | | | Qatar - 0.2% | |
| | | Qatar Government International Bond | |
| | | 1,355,000 | | | 3.40%, 04/16/2025(1) | | | 1,493,888 | |
| | | 2,275,000 | | | 3.75%, 04/16/2030(1) | | | 2,677,447 | |
| | | | | | | | | | |
| | | 4,171,335 | |
| | | | | | | | | | |
| | | | Romania - 0.4% | |
| | | Romanian Government International Bond | |
| EUR | | | 2,970,000 | | | 2.63%, 12/02/2040(1) | | | 3,859,786 | |
| | | 3,241,000 | | | 4.63%, 04/03/2049(6) | | | 5,340,396 | |
| | | | | | | | | | |
| | | 9,200,182 | |
| | | | | | | | | | |
| | | | Senegal - 0.2% | |
| | | Senegal Government International Bond | |
| | | 785,000 | | | 4.75%, 03/13/2028(6) | | | 1,019,268 | |
| $ | | | 2,115,000 | | | 6.25%, 05/23/2033(6) | | | 2,371,067 | |
| | | | | | | | | | |
| | | 3,390,335 | |
| | | | | | | | | | |
| | | | Supranational - 0.1% | |
| MXN | | | 44,875,000 | | | Inter-American Development Bank 7.25%, 06/10/2021 | | | 2,269,689 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| FOREIGN GOVERNMENT OBLIGATIONS - 3.6% - (continued) | |
| | | | Tunisia - 0.1% | |
| EUR | | | 1,805,000 | | | Banque Centrale de Tunisie International Bond
6.75%, 10/31/2023(1) | | $ | 2,080,712 | |
| | | | | | | | | | |
| | | | United Arab Emirates - 0.1% | |
| $ | | | 1,925,000 | | | Abu Dhabi Government International Bond
3.88%, 04/16/2050(1) | | | 2,346,575 | |
| | | | | | | | | | |
| | |
| | | Total Foreign Government Obligations
(cost $79,809,940) | | $ | 85,827,761 | |
| | | | | | | | | | |
|
| MUNICIPAL BONDS - 1.3% | |
| | | | Development - 0.3% | |
| | | 6,455,000 | | | New York Transportation Dev Corp. Rev
4.25%, 09/01/2035 | | $ | 7,160,338 | |
| | | | | | | | | | |
| | | | Education - 0.2% | |
| | | Chicago, IL, Board of Education, GO | |
| | | 365,000 | | | 6.04%, 12/01/2029 | | | 387,031 | |
| | | 1,115,000 | | | 6.14%, 12/01/2039 | | | 1,175,589 | |
| | | 1,750,000 | | | 6.32%, 11/01/2029 | | | 1,873,375 | |
| | | | | | | | | | |
| | | 3,435,995 | |
| | | | | | | | | | |
| | | | General - 0.5% | |
| | | 4,130,000 | | | Florida State Board of Administration Finance Co. 1.26%, 07/01/2025 | | | 4,224,618 | |
| | | 5,445,000 | | | Philadelphia, PA, Auth for Industrial Dev,(NATL Insured) 6.55%, 10/15/2028 | | | 7,013,487 | |
| | | | | | | | | | |
| | | 11,238,105 | |
| | | | | | | | | | |
| | | | General Obligation - 0.2% | |
| | | 110,000 | | | California State, GO Taxable 7.30%, 10/01/2039 | | | 181,569 | |
| | | 170,000 | | | State of Connecticut, GO 3.00%, 07/01/2021 | | | 172,275 | |
| | | State of Illinois, GO | |
| | | 2,717,945 | | | 4.95%, 06/01/2023(7) | | | 2,785,024 | |
| | | 280,000 | | | 5.00%, 01/01/2023 | | | 290,083 | |
| | | 610,000 | | | 5.56%, 02/01/2021 | | | 611,434 | |
| | | 980,000 | | | 5.95%, 04/01/2022 | | | 1,037,408 | |
| | | | | | | | | | |
| | | 5,077,793 | |
| | | | | | | | | | |
| | | | Transportation - 0.0% | |
| | | 720,000 | | | Chicago, IL, Transit Auth 3.91%, 12/01/2040 | | | 810,173 | |
| | | | | | | | | | |
| | | | Utility - Electric - 0.1% | |
| | | 1,561,000 | | | Municipal Electric Auth, GA 6.64%, 04/01/2057 | | | 2,373,891 | |
| | | | | | | | | | |
| | |
| | | Total Municipal Bonds
(cost $27,959,391) | | $ | 30,096,295 | |
| | | | | | | | | | |
|
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) | |
| | | | Advertising - 0.0% | |
| | | 306,125 | | | Clear Channel Outdoor Holdings, Inc. 3.71%, 08/21/2026, 1 mo. USD LIBOR + 3.500% | | $ | 294,097 | |
| | | | | | | | | | |
| | | | Aerospace/Defense - 0.0% | |
| | | 100,000 | | | Spirit Aerosystems, Inc. 6.00%, 01/30/2025, 1 mo. USD LIBOR + 5.250% | | | 100,750 | |
| | | 562,266 | | | TransDigm, Inc. 2.40%, 12/09/2025, 1 mo. USD LIBOR + 2.250% | | | 550,262 | |
| | | | | | | | | | |
| | | 651,012 | |
| | | | | | | | | | |
| | | | Airlines - 0.1% | |
| | | 97,500 | | | JetBlue Airways Corp. 6.25%, 06/17/2024, 1 mo. USD LIBOR + 5.250% | | | 100,075 | |
| | | 180,000 | | | Mileage Plus Holdings LLC 6.25%, 06/25/2027, 1 mo. USD LIBOR + 5.250% | | | 187,088 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Airlines - 0.1% - (continued) | |
| $ | | | 210,000 | | | SkyMiles IP Ltd. 4.75%, 10/20/2027, 1 mo. USD LIBOR + 3.750% | | $ | 217,422 | |
| | | 277,200 | | | WestJet Airlines Ltd. 4.00%, 12/11/2026, 3 mo. USD LIBOR + 3.000% | | | 265,247 | |
| | | | | | | | | | |
| | | 769,832 | |
| | | | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 0.0% | |
| | | 137,879 | | | By Crown Parent LLC 4.00%, 02/02/2026, 1 mo. USD LIBOR + 3.000% | | | 137,535 | |
| | | | | | | | | | |
| | | | Auto Manufacturers - 0.0% | |
| | | 150,738 | | | Navistar, Inc. 3.66%, 11/06/2024, 3 mo. USD LIBOR + 3.500% | | | 150,398 | |
| | | | | | | | | | |
| | | | Auto Parts & Equipment - 0.2% | |
| | | 231,475 | | | Adient U.S. LLC 4.46%, 05/06/2024, 3 mo. USD LIBOR + 4.250% | | | 231,089 | |
| | | 1,577,052 | | | Altra Industrial Motion Corp. 2.15%, 10/01/2025, 3 mo. USD LIBOR + 2.000% | | | 1,573,109 | |
| | | Clarios Global L.P. | |
| | | 460,580 | | | 3.65%, 04/30/2026, 3 mo. USD LIBOR + 3.500% | | | 458,181 | |
| EUR | | | 686,394 | | | 3.75%, 04/30/2026, 3 mo. EURIBOR + 3.750% | | | 834,659 | |
| $ | | | 118,498 | | | First Brands Group LLC 8.50%, 02/02/2024, 1 mo. USD LIBOR + 7.500% | | | 117,905 | |
| | | 99,750 | | | GT Polaris, Inc. 5.00%, 09/24/2027, 1 mo. USD LIBOR + 4.000% | | | 100,024 | |
| | | | | | | | | | |
| | | 3,314,967 | |
| | | | | | | | | | |
| | | | Beverages - 0.0% | |
| EUR | | | 280,000 | | | Sunshine Investments B.V. 0.00%, 03/28/2025(12) | | | 342,411 | |
| | | | | | | | | | |
| | | | Chemicals - 0.2% | |
| $ | | | 2,347,411 | | | Axalta Coating Systems U.S. Holdings, Inc.
2.00%, 06/01/2024, 3 mo. USD LIBOR + 1.750% | | | 2,326,871 | |
| EUR | | | 345,986 | | | CeramTec AcquiCo GmbH 2.50%, 03/07/2025, 3 mo. EURIBOR + 2.500% | | | 408,894 | |
| $ | | | 87,671 | | | CMC Materials, Inc. 2.19%, 11/17/2025, 1 mo. USD LIBOR + 2.000% | | | 87,016 | |
| | | 118,200 | | | Hexion, Inc. 3.73%, 07/01/2026, 3 mo. USD LIBOR + 3.500% | | | 117,018 | |
| | | 122,188 | | | LTI Holdings, Inc. 3.65%, 09/06/2025, 3 mo. USD LIBOR + 3.500% | | | 118,435 | |
| EUR | | | 94,413 | | | Nouryon Finance B.V. 3.25%, 10/01/2025, 3 mo. EURIBOR + 3.250% | | | 114,715 | |
| $ | | | 95,715 | | | Nouryon USA LLC 3.15%, 10/01/2025, 1 mo. USD LIBOR + 3.000% | | | 94,598 | |
| | | 400,362 | | | Tronox Finance LLC 3.15%, 09/23/2024, 3 mo. USD LIBOR + 3.000% | | | 397,811 | |
| | | Univar Solutions USA, Inc. | |
| | | 99,000 | | | 2.15%, 07/01/2026, 1 mo. USD LIBOR + 2.000% | | | 97,886 | |
| | | 307,694 | | | 2.40%, 07/01/2024, 3 mo. USD LIBOR + 2.500% | | | 306,101 | |
| | | | | | | | | | |
| | | 4,069,345 | |
| | | | | | | | | | |
| | | | Commercial Services - 0.3% | |
| | | 206,250 | | | Allied Universal Holdco LLC 4.40%, 07/10/2026, 1 mo. USD LIBOR + 4.250% | | | 205,175 | |
| | | 274,426 | | | APX Group, Inc. 5.15%, 12/31/2025, 1 mo. USD LIBOR + 5.000% | | | 272,612 | |
| | | 120,938 | | | Ascend Learning LLC 4.00%, 07/12/2024, 3 mo. USD LIBOR + 3.000% | | | 120,182 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Commercial Services - 0.3% - (continued) | |
| $ | | | 482,119 | | | AVSC Holding Corp. 4.50%, 03/03/2025, 3 mo. USD LIBOR + 3.500% | | $ | 409,502 | |
| | | 198,248 | | | Belron Finance U.S. LLC 2.46%, 10/30/2026, 1 mo. USD LIBOR + 2.250% | | | 197,752 | |
| | | 620,718 | | | Blackhawk Network Holdings, Inc.
3.15%, 06/15/2025, 3 mo. USD LIBOR + 3.000% | | | 603,065 | |
| | | 637,049 | | | Deerfield Dakota Holding LLC
4.75%, 04/09/2027, 1 mo. USD LIBOR + 3.750% | | | 637,151 | |
| | | 536,573 | | | Dun & Bradstreet Corp. 3.90%, 02/06/2026, 1 mo. USD LIBOR + 3.750% | | | 536,348 | |
| EUR | | | 145,000 | | | Loire Finco Luxembourg S.a.r.l.
3.25%, 04/21/2027, 3 mo. EURIBOR + 3.250% | | | 174,925 | |
| $ | | | 200,000 | | | Milano Acquisition Corp.4.75%, 10/01/2027, 1 mo. USD LIBOR + 4.000% | | | 199,666 | |
| | | 599,712 | | | Quikrete Holdings, Inc. 2.65%, 02/01/2027, 1 mo. USD LIBOR + 2.500% | | | 597,091 | |
| EUR | | | 105,975 | | | Techem Verwaltungsgesellschaft 675 mbH
2.63%, 07/15/2025, 3 mo. EURIBOR + 2.625% | | | 128,008 | |
| $ | | | 3,309,507 | | | Trans Union LLC 1.90%, 11/16/2026, 1 mo. USD LIBOR + 1.750% | | | 3,293,655 | |
| EUR | | | 260,000 | | | Verisure Holding AB 4.00%, 07/20/2026, 3 mo. EURIBOR + 4.000% | | | 318,372 | |
| $ | | | 113,834 | | | Weight Watchers International, Inc. 5.50%, 11/29/2024, 3 mo. USD LIBOR + 4.750% | | | 113,668 | |
| | | | | | | | | | |
| | | 7,807,172 | |
| | | | | | | | | | |
| | | | Construction Materials - 0.0% | |
| | | 264,600 | | | Brookfield WEC Holdings, Inc. 3.75%, 08/01/2025, 1 mo. USD LIBOR + 3.000% | | | 263,655 | |
| | | 263,250 | | | Cornerstone Building Brands, Inc. 3.90%, 04/12/2025, 3 mo. USD LIBOR + 3.750% | | | 262,592 | |
| | | 110,000 | | | CP Atlas Buyer, Inc. 5.25%, 11/23/2027, 1 mo. USD LIBOR + 4.500% | | | 110,138 | |
| | | | | | | | | | |
| | | 636,385 | |
| | | | | | | | | | |
| | | | Distribution/Wholesale - 0.2% | |
| | | 4,508,835 | | | American Builders & Contractors Supply Co., Inc. 2.15%, 01/15/2027, 1 mo. USD LIBOR + 2.000% | | | 4,462,124 | |
| | | 173,250 | | | SRS Distribution, Inc. 4.40%, 05/23/2025, 1 mo. USD LIBOR + 4.250% | | | 172,600 | |
| | | | | | | | | | |
| | | 4,634,724 | |
| | | | | | | | | | |
| | | | Diversified Financial Services - 0.1% | |
| EUR | | | 98,250 | | | AlixPartners LLP 3.25%, 04/04/2024, 3 mo. EURIBOR + 3.250% | | | 119,534 | |
| $ | | | 452,375 | | | AlixPartners, LLP 2.65%, 04/04/2024, 1 mo. USD LIBOR + 2.500% | | | 446,793 | |
| | | 151,900 | | | Aretec Group, Inc. 4.40%, 10/01/2025, 3 mo. USD LIBOR + 4.250% | | | 148,292 | |
| | | Crown Finance U.S., Inc. | |
| EUR | | | 33,018 | | | 2.63%, 02/28/2025, 3 mo. EURIBOR + 2.625% | | | 27,076 | |
| $ | | | 182,612 | | | 2.77%, 02/28/2025, 1 mo. USD LIBOR + 2.500% | | | 123,234 | |
| | | 137,550 | | | Minotaur Acquisition, Inc. 5.15%, 03/27/2026, 3 mo. USD LIBOR + 5.000% | | | 134,685 | |
| EUR | | | 185,208 | | | Nets Holding A/S 3.25%, 02/06/2025, 3 mo. EURIBOR + 3.250% | | | 225,767 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Diversified Financial Services - 0.1% - (continued) | |
| $ | | | 225,400 | | | Refinitiv U.S. Holdings, Inc. 3.40%, 10/01/2025, 1 mo. USD LIBOR + 3.250% | | $ | 224,931 | |
| | | 98,458 | | | UFC Holdings LLC 4.25%, 04/29/2026, 1 mo. USD LIBOR + 3.250% | | | 98,042 | |
| | | 182,426 | | | Victory Capital Holdings, Inc. 2.73%, 07/01/2026, 1 mo. USD LIBOR + 2.500% | | | 181,590 | |
| | | | | | | | | | |
| | | 1,729,944 | |
| | | | | | | | | | |
| | | | Electric - 0.0% | |
| | | 110,000 | | | ExGen Renewables IV LLC 0.00%, 12/15/2027, 1 mo. USD LIBOR(12) | | | 109,835 | |
| | | | | | | | | | |
| | | | Energy - Alternate Sources - 0.0% | |
| | | 258,284 | | | BCP Renaissance Parent LLC 4.50%, 10/31/2024, 3 mo. USD LIBOR + 3.500% | | | 249,030 | |
| | | 97,000 | | | Medallion Midland Acquisition LLC 4.25%, 10/30/2024, 3 mo. USD LIBOR + 3.250% | | | 95,060 | |
| | | | | | | | | | |
| | | 344,090 | |
| | | | | | | | | | |
| | | | Engineering & Construction - 0.0% | |
| | | 723,750 | | | Brand Energy & Infrastructure Services, Inc. 5.25%, 06/21/2024, 3 mo. USD LIBOR + 4.250% | | | 704,339 | |
| | | | | | | | | | |
| | | | Entertainment - 0.0% | |
| | | 144,638 | | | Banijay Group U.S. Holding, Inc.
3.90%, 03/01/2025, 1 mo. USD LIBOR + 3.750% | | | 142,468 | |
| | | 448,846 | | | Scientific Games International, Inc. 2.90%, 08/14/2024, 1 mo. USD LIBOR + 2.750% | | | 437,737 | |
| | | 117,300 | | | Wyndham Hotels & Resorts, Inc. 1.90%, 05/30/2025, 3 mo. USD LIBOR + 1.750% | | | 116,362 | |
| | | | | | | | | | |
| | | 696,567 | |
| | | | | | | | | | |
| | | | Food - 0.1% | |
| | | 182,583 | | | B&G Foods, Inc. 2.65%, 10/10/2026, 1 mo. USD LIBOR + 2.500% | | | 182,061 | |
| EUR | | | 170,000 | | | Froneri Lux FinCo S.a.r.l. 2.63%, 01/31/2027, 3 mo. EURIBOR + 2.625% | | | 204,636 | |
| $ | | | 164,175 | | | Froneri U.S., Inc. 2.40%, 01/31/2027, 1 mo. USD LIBOR + 2.250% | | | 162,369 | |
| | | 486,012 | | | Hostess Brands LLC 3.00%, 08/03/2025, 1 mo. USD LIBOR + 2.250% | | | 482,975 | |
| | | U.S. Foods, Inc. | |
| | | 490,557 | | | 1.90%, 06/27/2023, 1 mo. USD LIBOR + 1.750% | | | 482,698 | |
| | | 246,875 | | | 2.15%, 09/13/2026, 3 mo. USD LIBOR + 2.000% | | | 242,478 | |
| | | | | | | | | | |
| | | 1,757,217 | |
| | | | | | | | | | |
| | | | Food Service - 0.0% | |
| | | 98,000 | | | 8th Avenue Food & Provisions, Inc.
3.65%, 10/01/2025, 3 mo. USD LIBOR + 3.500% | | | 97,668 | |
| | | Aramark Services, Inc. | |
| | | 111,920 | | | 1.90%, 03/11/2025, 1 mo. USD LIBOR + 1.750% | | | 110,269 | |
| | | 109,175 | | | 1.90%, 01/15/2027, 1 mo. USD LIBOR + 1.750% | | | 107,640 | |
| | | | | | | | | | |
| | | 315,577 | |
| | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Gas - 0.0% | |
| $ | | | 103,163 | | | Messer Industries USA, Inc. 2.75%, 03/01/2026, 3 mo. USD LIBOR + 2.500% | | $ | 102,273 | |
| | | | | | | | | | |
| | | | Hand/Machine Tools - 0.0% | |
| | | 240,000 | | | Applecaramel Buyer LLC 4.50%, 10/19/2027, 1 mo. USD LIBOR + 2.000% | | | 239,700 | |
| | | | | | | | | | |
| | | | Healthcare - Products - 0.1% | |
| | | 500,000 | | | Avantor Funding, Inc. 3.50%, 11/08/2027,
1 mo. USD LIBOR + 2.500% | | | 500,315 | |
| EUR | | | 99,000 | | | Grifols S.A. 2.25%, 11/15/2027,
3 mo. EURIBOR + 2.250% | | | 120,862 | |
| $ | | | 193,500 | | | Lifescan Global Corp. 6.23%, 10/01/2024,
3 mo. USD LIBOR + 6.000% | | | 183,825 | |
| | | 206,952 | | | Parexel International Corp. 2.90%, 09/27/2024, 3 mo. USD LIBOR + 2.750% | | | 203,169 | |
| | | 99,500 | | | Surf Holdings LLC 3.73%, 03/05/2027,
1 mo. USD LIBOR + 3.500% | | | 98,505 | |
| | | | | | | | | | |
| | | 1,106,676 | |
| | | | | | | | | | |
| | | | Healthcare - Services - 0.2% | |
| | | 245,000 | | | ADMI Corp. 0.00%, 12/23/2027, 1 mo. USD LIBOR(12) | | | 244,939 | |
| EUR | | | 270,000 | | | Bio Lam LCD SELAS 4.75%, 04/25/2026,
3 mo. EURIBOR + 4.750% | | | 330,053 | |
| $ | | | 99,250 | | | CPI Holdco LLC 4.40%, 11/04/2026,
1 mo. USD LIBOR + 4.250% | | | 99,250 | |
| | | 253,570 | | | DentalCorp Perfect Smile ULC 4.75%, 06/06/2025, 3 mo. USD LIBOR + 3.750% | | | 248,815 | |
| | | 269,500 | | | Envision Healthcare Corp. 3.90%, 10/10/2025, 3 mo. USD LIBOR + 3.750% | | | 223,990 | |
| | | EyeCare Partners LLC | |
| | | 47,297 | | | 3.75%, 02/18/2027, 1 mo. USD LIBOR + 3.750%(13) | | | 45,979 | |
| | | 201,182 | | | 3.90%, 02/18/2027, 1 mo. USD LIBOR + 3.750% | | | 195,575 | |
| EUR | | | 214,500 | | | IQVIA, Inc. 2.00%, 06/11/2025,
1 mo. EURIBOR + 2.000% | | | 260,692 | |
| $ | | | 668,941 | | | Jaguar Holding Co. 3.50%, 08/18/2022,
3 mo. USD LIBOR + 2.500% | | | 668,359 | |
| | | MED ParentCo L.P. | |
| | | 59,603 | | | 4.25%, 08/31/2026, 1 mo. USD LIBOR + 4.250%(13) | | | 58,581 | |
| | | 237,682 | | | 4.40%, 08/31/2026, 1 mo. USD LIBOR + 4.250% | | | 233,608 | |
| | | 393,198 | | | MPH Acquisition Holdings LLC 3.75%, 06/07/2023, 3 mo. USD LIBOR + 2.750% | | | 390,988 | |
| | | Pathway Vet Alliance LLC | |
| | | 7,497 | | | 4.15%, 03/31/2027, 1 mo. USD LIBOR + 4.000%(13) | | | 7,486 | |
| | | 91,790 | | | 4.15%, 03/31/2027, 1 mo. USD LIBOR + 4.000% | | | 91,652 | |
| | | 141,893 | | | Syneos Health, Inc. 1.90%, 08/01/2024,
3 mo. USD LIBOR + 1.750% | | | 140,545 | |
| | | 544,500 | | | Zelis Payments Buyer, Inc. 4.90%, 09/30/2026, 1 mo. USD LIBOR + 4.750% | | | 545,333 | |
| | | | | | | | | | |
| | | 3,785,845 | |
| | | | | | | | | | |
| | | | Household Products - 0.0% | |
| | | 286,150 | | | Diamond (BC) B.V. 3.21%, 09/06/2024,
3 mo. USD LIBOR + 3.000% | | | 281,620 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Household Products - 0.0% - (continued) | |
| $ | | | 287,250 | | | Revlon Consumer Products Corp. 4.25%, 09/07/2023, 1 mo. USD LIBOR + 3.500% | | $ | 102,261 | |
| | | 91,169 | | | Reynolds Consumer Products LLC 1.90%, 02/04/2027, 1 mo. USD LIBOR + 1.750% | | | 90,485 | |
| | | 215,000 | | | Weber-Stephen Products LLC
4.00%, 10/30/2027, 1 mo. USD LIBOR + 3.250% | | | 215,108 | |
| | | | | | | | | | |
| | | 689,474 | |
| | | | | | | | | | |
| | | | Insurance - 0.1% | |
| | | 173,688 | | | Acrisure LLC 3.65%, 02/15/2027, 1 mo. USD LIBOR + 3.500% | | | 170,033 | |
| | | Asurion LLC | |
| | | 366,165 | | | 3.15%, 11/03/2023, 1 mo. USD LIBOR + 3.000% | | | 362,350 | |
| | | 899,333 | | | 3.40%, 12/23/2026, 1 mo. USD LIBOR + 3.250% | | | 889,170 | |
| | | 352,273 | | | 6.65%, 08/04/2025, 3 mo. USD LIBOR + 6.500% | | | 354,474 | |
| | | 418,863 | | | Hub International Ltd. 2.97%, 04/25/2025,
1 mo. USD LIBOR + 2.750% | | | 410,880 | |
| | | 99,750 | | | Ryan Specialty Group LLC 4.00%, 09/01/2027, 1 mo. USD LIBOR + 3.250% | | | 99,376 | |
| | | Sedgwick Claims Management Services, Inc. | |
| | | 279,300 | | | 3.40%, 12/31/2025, 3 mo. USD LIBOR + 3.250% | | | 274,530 | |
| | | 541,750 | | | 4.15%, 09/03/2026, 3 mo. USD LIBOR + 4.000% | | | 539,383 | |
| | | | | | | | | | |
| | | 3,100,196 | |
| | | | | | | | | | |
| | | | IT Services - 0.2% | |
| | | 3,530,000 | | | Science Applications International Corp.
2.02%, 10/31/2025, 1 mo. USD LIBOR + 1.875% | | | 3,511,079 | |
| | | 875,119 | | | Tempo Acquisition LLC 3.75%, 11/02/2026, 1 mo. USD LIBOR + 3.250% | | | 868,013 | |
| | | | | | | | | | |
| | | 4,379,092 | |
| | | | | | | | | | |
| | | | Leisure Time - 0.1% | |
| | | Caesars Resort Collection LLC | |
| | | 431,806 | | | 2.90%, 12/23/2024, 3 mo. USD LIBOR + 2.750% | | | 423,118 | |
| | | 169,575 | | | 4.65%, 07/21/2025, 1 mo. USD LIBOR + 4.500% | | | 169,628 | |
| | | 223,875 | | | Carnival Corp. 8.50%, 06/30/2025,
1 mo. USD LIBOR + 7.500% | | | 230,032 | |
| | | 795,546 | | | Delta (LUX) S.a.r.l. 3.50%, 02/01/2024,
3 mo. USD LIBOR + 2.500% | | | 785,888 | |
| | | 733,400 | | | Golden Entertainment, Inc. 3.75%, 10/21/2024, 3 mo. USD LIBOR + 3.000% | | | 715,182 | |
| | | 230,000 | | | IRB Holding Corp. 0.00%, 12/15/2027(12) | | | 230,071 | |
| | | 127,327 | | | Penn National Gaming, Inc. 3.00%, 10/15/2025, 3 mo. USD LIBOR + 2.250% | | | 125,561 | |
| | | | | | | | | | |
| | | 2,679,480 | |
| | | | | | | | | | |
| | | | Lodging - 0.0% | |
| | | 264,574 | | | Boyd Gaming Corp. 2.35%, 09/15/2023,
3 mo. USD LIBOR + 2.250% | | | 261,954 | |
| | | | | | | | | | |
| | | | Machinery - Construction & Mining - 0.0% | |
| | | Pro Mach Group, Inc. | |
| | | 40,869 | | | 3.50%, 03/07/2025, 1 mo. USD LIBOR + 3.500%(13) | | | 42,300 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Machinery - Construction & Mining - 0.0% - (continued) | |
| $ | | | 123,510 | | | 4.50%, 03/07/2025, 1 mo. USD LIBOR + 3.500% | | $ | 121,657 | |
| | | | | | | | | | |
| | | 163,957 | |
| | | | | | | | | | |
| | | | Machinery - Diversified - 0.0% | |
| | | 213,028 | | | Gates Global LLC 3.75%, 04/01/2024,
3 mo. USD LIBOR + 2.750% | | | 212,259 | |
| | | | | | | | | | |
| | | | Media - 0.3% | |
| EUR | | | 160,000 | | | Adevinta ASA 0.00%, 10/13/2027(12) | | | 195,599 | |
| $ | | | 225,000 | | | Alliance Laundry Systems LLC 4.25%, 10/08/2027, 1 mo. USD LIBOR + 3.500% | | | 224,719 | |
| | | 189,150 | | | Altice Financing S.A. 2.90%, 01/31/2026, 3 mo. USD LIBOR + 2.750% | | | 184,705 | |
| | | 1,505,377 | | | Charter Communications Operating LLC
1.90%, 02/01/2027, 1 mo. USD LIBOR + 1.750% | | | 1,495,411 | |
| | | 438,933 | | | CSC Holdings LLC 2.66%, 04/15/2027,
1 mo. USD LIBOR + 2.500% | | | 434,359 | |
| | | E.W. Scripps Co. | |
| | | 100,000 | | | 0.00%, 12/15/2027(12) | | | 100,000 | |
| | | 299,242 | | | 2.65%, 05/01/2026, 1 mo. USD LIBOR + 2.500% | | | 295,376 | |
| | | 203,975 | | | Go Daddy Operating Co. LLC 2.65%, 08/10/2027, 1 mo. USD LIBOR + 2.500% | | | 204,571 | |
| | | 436,432 | | | Gray Television, Inc. 2.66%, 01/02/2026, 3 mo. USD LIBOR + 2.500% | | | 432,976 | |
| | | 261,250 | | | Houghton Mifflin Harcourt Publishers, Inc.
7.25%, 11/22/2024, 1 mo. USD LIBOR + 6.250% | | | 250,257 | |
| | | 644,378 | | | ION Media Networks, Inc. 3.19%, 12/18/2024, 1 mo. USD LIBOR + 3.000% | | | 643,302 | |
| | | 462,241 | | | MTN Infrastructure TopCo, Inc.
4.00%, 11/15/2024, 3 mo. USD LIBOR + 3.000% | | | 460,623 | |
| | | 90,030 | | | NASCAR Holdings LLC 2.90%, 10/19/2026, 3 mo. USD LIBOR + 2.750% | | | 89,566 | |
| | | 350,000 | | | Newco Financing Partnership
3.67%, 01/31/2029, 1 mo. USD LIBOR + 3.500% | | | 350,175 | |
| | | 250,196 | | | Nexstar Broadcasting, Inc. 2.91%, 09/18/2026, 1 mo. USD LIBOR + 2.750% | | | 248,227 | |
| | | 220,266 | | | Shutterfly, Inc. 7.00%, 09/25/2026, 1 mo. USD LIBOR + 6.000% | | | 218,693 | |
| | | 185,156 | | | Sinclair Television Group, Inc. 2.65%, 09/30/2026, 1 mo. USD LIBOR + 2.500% | | | 182,764 | |
| | | 227,700 | | | Terrier Media Buyer, Inc. 4.40%, 12/17/2026, 1 mo. USD LIBOR + 4.250% | | | 227,629 | |
| | | 350,000 | | | UPC Financing Partnership 3.68%, 01/31/2029, 1 mo. USD LIBOR + 3.500% | | | 350,175 | |
| | | 349,125 | | | Vertical U.S. Newco, Inc. 4.57%, 07/30/2027, 1 mo. USD LIBOR + 4.250% | | | 350,308 | |
| EUR | | | 260,000 | | | Virgin Media Bristol LLC 0.00%, 01/31/2029(12) | | | 318,582 | |
| $ | | | 90,868 | | | Web.com Group, Inc. 3.90%, 10/10/2025, 3 mo. USD LIBOR + 3.750% | | | 89,466 | |
| | | 123,090 | | | William Morris Endeavor Entertainment LLC 2.90%, 05/18/2025, 3 mo. USD LIBOR + 2.750% | | | 113,038 | |
| | | | | | | | | | |
| | | 7,460,521 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | Metal Fabricate/Hardware - 0.0% | |
| $ | | | 290,984 | | | Circor International, Inc. 4.25%, 12/11/2024, 1 mo. USD LIBOR + 3.250% | | $ | 287,783 | |
| | | 233,251 | | | RBS Global, Inc. 1.90%, 08/21/2024,
1 mo. USD LIBOR + 1.750% | | | 232,584 | |
| | | | | | | | | | |
| | | 520,367 | |
| | | | | | | | | | |
| | | | Miscellaneous Manufacturing - 0.2% | |
| | | 86,567 | | | H.B. Fuller Co. 2.15%, 10/20/2024,
3 mo. USD LIBOR + 2.000% | | | 85,886 | |
| | | 3,828,930 | | | Ingersoll-Rand Services Co. 1.90%, 03/01/2027, 1 mo. USD LIBOR + 1.750% | | | 3,774,368 | |
| | | 272,922 | | | Momentive Performance Materials USA LLC
3.40%, 05/15/2024, 3 mo. USD LIBOR + 3.250% | | | 268,828 | |
| | | 98,750 | | | Tamko Building Products LLC
3.40%, 06/01/2026, 3 mo. USD LIBOR + 3.250% | | | 98,256 | |
| | | 517,613 | | | USI, Inc. 3.25%, 05/16/2024, 3 mo. USD LIBOR + 3.000% | | | 509,740 | |
| | | | | | | | | | |
| | | 4,737,078 | |
| | | | | | | | | | |
| | | | Oil & Gas - 0.0% | |
| | | BCP Raptor LLC | |
| | | 113,272 | | | 4.90%, 11/03/2025, 3 mo. USD LIBOR + 4.750% | | | 101,492 | |
| | | 153,178 | | | 5.25%, 06/24/2024, 3 mo. USD LIBOR + 4.250% | | | 139,872 | |
| | | 309,401 | | | NorthRiver Midstream Finance L.P.
3.48%, 10/01/2025, 3 mo. USD LIBOR + 3.250% | | | 303,943 | |
| | | 733,293 | | | PES Holdings LLC 3.00%, 12/31/2022,
3 mo. USD LIBOR + 3.000%(14) | | | 25,665 | |
| | | 112,825 | | | Traverse Midstream Partners LLC 6.50%, 09/27/2024, 1 mo. USD LIBOR + 5.500% | | | 110,427 | |
| | | | | | | | | | |
| | | 681,399 | |
| | | | | | | | | | |
| | | | Oil & Gas Services - 0.0% | |
| | | 147,750 | | | Lower Cadence Holdings LLC 4.15%, 05/22/2026, 3 mo. USD LIBOR + 4.000% | | | 143,965 | |
| | | 526,975 | | | UGI Energy Services LLC 3.90%, 08/13/2026, 1 mo. USD LIBOR + 3.750% | | | 526,975 | |
| | | | | | | | | | |
| | | 670,940 | |
| | | | | | | | | | |
| | | | Packaging & Containers - 0.1% | |
| | | 2,184,456 | | | Berry Global, Inc. 2.15%, 07/01/2026,
1 mo. USD LIBOR + 2.000% | | | 2,171,633 | |
| | | 344,542 | | | Flex Acquisition Co., Inc. 4.00%, 12/29/2023, 3 mo. USD LIBOR + 3.000% | | | 342,282 | |
| | | 337,312 | | | Proampac PG Borrower LLC 5.00%, 11/03/2025, 1 mo. USD LIBOR + 4.000% | | | 336,260 | |
| | | 202,705 | | | Reynolds Group Holdings, Inc. 2.90%, 02/05/2023, 3 mo. USD LIBOR + 2.750% | | | 201,692 | |
| | | | | | | | | | |
| | | | | | | | | 3,051,867 | |
| | | | | | | | | | |
| | | | | | Pharmaceuticals - 0.3% | |
| | | 374,288 | | | Bausch Health Americas, Inc. 3.15%, 06/02/2025, 3 mo. USD LIBOR + 3.000% | | | 372,653 | |
| | | 112,988 | | | Catalent Pharma Solutions, Inc. 3.25%, 05/18/2026, 3 mo. USD LIBOR + 2.250% | | | 112,846 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | | | Pharmaceuticals - 0.3% - (continued) | |
| $ | | | 3,896,345 | | | Elanco Animal Health, Inc. 1.91%, 08/01/2027, 1 mo. USD LIBOR + 1.750% | | $ | 3,858,200 | |
| | | 791,300 | | | Endo International PLC 5.00%, 04/29/2024, 3 mo. USD LIBOR + 4.250% | | | 777,452 | |
| | | 539,550 | | | Sunshine Luxembourg S.a.r.l. 5.00%, 10/01/2026, 1 mo. USD LIBOR + 4.000% | | | 540,564 | |
| | | | | | | | | | |
| | | | | | | | | 5,661,715 | |
| | | | | | | | | | |
| | | | | | Real Estate - 0.1% | |
| EUR | | | 185,000 | | | Boels Topholding B.V. 4.00%, 02/06/2027, 3 mo. EURIBOR + 4.000% | | | 225,779 | |
| $ | | | 1,366,487 | | | KFC Holding Co. 1.91%, 04/03/2025, 3 mo. USD LIBOR + 1.750% | | | 1,354,776 | |
| | | 486,364 | | | VICI Properties LLC 1.89%, 12/20/2024, 1 mo. USD LIBOR + 1.750% | | | 477,731 | |
| | | | | | | | | | |
| | | | | | | | | 2,058,286 | |
| | | | | | | | | | |
| | | | | | Retail - 0.2% | |
| | | 1,231,889 | | | B.C. Unlimited Liability Co. 1.90%, 11/19/2026, 1 mo. USD LIBOR + 1.750% | | | 1,213,029 | |
| | | 648,225 | | | Bass Pro Group LLC 5.75%, 09/25/2024, 3 mo. USD LIBOR + 5.000% | | | 649,385 | |
| | | 240,781 | | | Coty, Inc. 2.40%, 04/07/2025, 3 mo. USD LIBOR + 2.250% | | | 226,334 | |
| | | 708,049 | | | Harbor Freight Tools USA, Inc. 4.00%, 10/19/2027, 1 mo. USD LIBOR + 3.250% | | | 706,866 | |
| | | 180,513 | | | LBM Acquisition LLC 0.00%, 12/09/2027(12) | | | 180,325 | |
| | | 330,000 | | | Les Schwab Tire Centers 4.25%, 11/02/2027, 1 mo. USD LIBOR + 3.500% | | | 329,588 | |
| | | 448,875 | | | Michaels Stores, Inc. 4.25%, 10/01/2027, 1 mo. USD LIBOR + 3.500% | | | 444,947 | |
| | | 410,332 | | | PetSmart, Inc. 4.50%, 03/11/2022, 1 mo. USD LIBOR +3.500% | | | 409,175 | |
| | | 131,962 | | | Rodan & Fields LLC 4.16%, 06/16/2025, 3 mo. USD LIBOR + 4.000% | | | 108,100 | |
| | | 380,321 | | | Staples, Inc. 5.21%, 04/16/2026, 3 mo. USD LIBOR + 5.000% | | | 367,656 | |
| | | | | | | | | | |
| | | | | | | | | 4,635,405 | |
| | | | | | | | | | |
| | | | | | Software - 0.7% | |
| | | 321,667 | | | CCC Information Services, Inc. 4.00%, 04/29/2024, 1 mo. USD LIBOR + 3.000% | | | 320,461 | |
| | | 521,066 | | | Change Healthcare Holdings LLC 3.50%, 03/01/2024, 1 mo. USD LIBOR + 2.250% | | | 518,200 | |
| | | 282,863 | | | DCert Buyer, Inc. 4.15%, 10/16/2026, 3 mo. USD LIBOR + 4.000% | | | 282,206 | |
| | | 200,000 | | | Dun & Bradstreet Corp. 0.00%, 02/06/2026(12) | | | 199,916 | |
| | | 338,780 | | | Epicor Software Corp. 5.25%, 07/30/2027, 1 mo. USD LIBOR + 4.250% | | | 340,402 | |
| | | 505,201 | | | Finastra USA, Inc. 4.50%, 06/13/2024, 3 mo. USD LIBOR + 3.500% | | | 494,308 | |
| | | 3,512,865 | | | Go Daddy Operating Co. LLC 1.90%, 02/15/2024, 1 mo. USD LIBOR + 1.750% | | | 3,508,474 | |
| | | 796,359 | | | Hyland Software, Inc. 4.25%, 07/01/2024, 1 mo. USD LIBOR + 3.500% | | | 797,243 | |
| | | 370,500 | | | Playtika Holding Corp. 7.00%, 12/10/2024, 1 mo. USD LIBOR + 6.000% | | | 372,312 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| SENIOR FLOATING RATE INTERESTS - 3.9%(11) - (continued) | |
| | | | | | Software - 0.7% - (continued) | |
| $ | | | 137,200 | | | Quest Software U.S. Holdings, Inc. 4.46%, 05/16/2025, 3 mo. USD LIBOR + 4.250% | | $ | 134,628 | |
| | | 3,874,547 | | | SS&C Technologies, Inc. 1.90%, 04/16/2025, 1 mo. USD LIBOR + 1.750% | | | 3,822,228 | |
| | | | | | Ultimate Software Group, Inc. | |
| | | 138,250 | | | 3.90%, 05/04/2026, 3 mo. USD LIBOR + 3.750% | | | 138,034 | |
| | | 204,488 | | | 4.75%, 05/04/2026, 1 mo. USD LIBOR + 4.000% | | | 205,393 | |
| | | 99,750 | | | Waystar Technologies, Inc. 4.75%, 10/22/2026, 1 mo. USD LIBOR + 4.000% | | | 99,501 | |
| | | 4,847,759 | | | WEX, Inc. 2.40%, 05/15/2026, 3 mo. USD LIBOR + 2.250% | | | 4,810,625 | |
| | | | | | | | | | |
| | | | | | | | | 16,043,931 | |
| | | | | | | | | | |
| | | | | | Telecommunications - 0.1% | |
| | | 683,535 | | | Altice France S.A. 3.85%, 01/31/2026, 3 mo. USD LIBOR + 3.688% | | | 675,633 | |
| | | 168,300 | | | CenturyLink, Inc. 2.40%, 03/15/2027, 1 mo. USD LIBOR + 2.250% | | | 166,365 | |
| | | 245,000 | | | Frontier Communications Corp. 5.75%, 10/08/2021, 1 mo. USD LIBOR + 4.750% | | | 245,767 | |
| | | 135,000 | | | LCPR Loan Financing LLC 5.15%, 10/15/2026, 1 mo. USD LIBOR + 5.000% | | | 135,366 | |
| | | 202,397 | | | Level 3 Financing, Inc. 1.90%, 03/01/2027, 1 mo. USD LIBOR + 1.750% | | | 198,812 | |
| EUR | | | 200,000 | | | Lorca Finco plc 4.25%, 09/17/2027, 3 mo. EURIBOR + 4.250% | | | 244,687 | |
| $ | | | 320,000 | | | Telenet Financing USD LLC 2.16%, 04/30/2028, 6 mo. USD LIBOR + 2.000% | | | 315,402 | |
| | | 365,148 | | | Univision Communications, Inc. 3.75%, 03/15/2024, 3 mo. USD LIBOR + 2.750% | | | 362,639 | |
| | | 156,800 | | | Zacapa S.a.r.l. 4.76%, 07/02/2025, 3 mo. USD LIBOR + 4.500% | | | 156,163 | |
| | | | | | Zayo Group Holdings, Inc. | |
| | | 258,329 | | | 3.15%, 03/09/2027, 1 mo. USD LIBOR + 3.000% | | | 256,391 | |
| EUR | | | 99,250 | | | 3.25%, 03/09/2027, 3 mo. EURIBOR + 3.250% | | | 120,662 | |
| | | | | | | | | | |
| | | | | | | | | 2,877,887 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Senior Floating Rate Interests
(cost $94,437,733) | | $ | 93,585,749 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 38.7% | |
| | | | | | Mortgage-Backed Agencies - 38.7% | |
| | | | | | FHLMC - 4.6% | |
| $ | | | 98,089 | | | 0.00%, 11/15/2036(15) | | $ | 94,942 | |
| | | 20,843,049 | | | 0.61%, 03/25/2027(2)(4) | | | 701,279 | |
| | | 4,913,980 | | | 0.64%, 10/25/2026(2)(4) | | | 158,557 | |
| | | 10,437,046 | | | 0.75%, 06/25/2027(2)(4) | | | 449,190 | |
| | | 4,265,000 | | | 0.88%, 11/25/2030(2)(4) | | | 317,637 | |
| | | 7,841,000 | | | 1.03%, 10/25/2030(2)(4) | | | 663,900 | |
| | | 12,893,832 | | | 1.12%, 06/25/2030(2)(4) | | | 1,184,296 | |
| | | 1,944,820 | | | 1.50%, 11/01/2035 | | | 2,001,795 | |
| | | 3,475,000 | | | 1.50%, 01/01/2036 | | | 3,576,850 | |
| | | 6,279,235 | | | 1.57%, 05/25/2030(2)(4) | | | 792,238 | |
| | | 1,428,344 | | | 1.75%, 10/15/2042 | | | 1,462,082 | |
| | | 1,485,120 | | | 2.00%, 09/25/2049, 1 mo. USD LIBOR + 1.850%(1)(3) | | | 1,466,294 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | FHLMC - 4.6% - (continued) | |
| $ | | | 3,684,753 | | | 2.50%, 02/25/2049, 1 mo. USD LIBOR + 2.350%(1)(3) | | $ | 3,675,363 | |
| | | 555,958 | | | 2.50%, 05/15/2028(4) | | | 34,460 | |
| | | 691,122 | | | 2.60%, 03/25/2049, 1 mo. USD LIBOR + 2.450%(1)(3) | | | 689,364 | |
| | | 1,443,413 | | | 3.00%, 03/15/2028(4) | | | 89,537 | |
| | | 1,610,841 | | | 3.00%, 08/01/2029 | | | 1,729,171 | |
| | | 659,210 | | | 3.00%, 05/15/2032(4) | | | 33,025 | |
| | | 5,156,934 | | | 3.00%, 10/01/2032 | | | 5,414,437 | |
| | | 621,881 | | | 3.00%, 03/15/2033(4) | | | 59,039 | |
| | | 3,542,200 | | | 3.00%, 04/01/2033 | | | 3,719,077 | |
| | | 3,874,881 | | | 3.00%, 11/01/2036 | | | 4,089,216 | |
| | | 2,326,237 | | | 3.00%, 01/01/2037 | | | 2,453,726 | |
| | | 4,225,000 | | | 3.00%, 08/15/2043 | | | 4,491,526 | |
| | | 995,291 | | | 3.00%, 05/15/2046 | | | 1,058,657 | |
| | | 6,517,301 | | | 3.00%, 11/01/2046 | | | 7,032,725 | |
| | | 1,722,119 | | | 3.00%, 12/01/2046 | | | 1,850,098 | |
| | | 777,485 | | | 3.25%, 11/15/2041 | | | 846,338 | |
| | | 541,183 | | | 3.50%, 06/15/2026(4) | | | 14,542 | |
| | | 281,472 | | | 3.50%, 09/15/2026(4) | | | 17,412 | |
| | | 429,870 | | | 3.50%, 03/15/2027(4) | | | 24,413 | |
| | | 2,364,136 | | | 3.50%, 05/15/2034(4) | | | 197,761 | |
| | | 3,057,304 | | | 3.50%, 08/01/2034 | | | 3,290,571 | |
| | | 1,886,437 | | | 3.50%, 03/15/2041(4) | | | 111,837 | |
| | | 774,641 | | | 3.50%, 06/01/2046 | | | 827,982 | |
| | | 3,059,825 | | | 3.50%, 10/01/2047 | | | 3,246,010 | |
| | | 937,637 | | | 3.50%, 12/01/2047 | | | 1,006,601 | |
| | | 17,598,581 | | | 3.50%, 03/01/2048 | | | 18,721,217 | |
| | | 223,598 | | | 3.50%, 08/01/2048 | | | 239,457 | |
| | | 2,213,234 | | | 4.00%, 08/01/2025 | | | 2,349,636 | |
| | | 946,997 | | | 4.00%, 12/15/2026(4) | | | 54,607 | |
| | | 1,587,724 | | | 4.00%, 07/15/2027(4) | | | 92,043 | |
| | | 713,695 | | | 4.00%, 03/15/2028(4) | | | 44,344 | |
| | | 409,118 | | | 4.00%, 06/15/2028(4) | | | 28,247 | |
| | | 883,219 | | | 4.00%, 07/15/2030(4) | | | 82,575 | |
| | | 2,858,336 | | | 4.00%, 05/25/2040(4) | | | 338,226 | |
| | | 997,616 | | | 4.00%, 11/15/2040 | | | 1,130,778 | |
| | | 2,494,193 | | | 4.00%, 05/01/2042 | | | 2,735,999 | |
| | | 829,959 | | | 4.00%, 08/01/2042 | | | 915,105 | |
| | | 1,246,918 | | | 4.00%, 09/01/2042 | | | 1,374,849 | |
| | | 185,334 | | | 4.00%, 07/01/2044 | | | 204,235 | |
| | | 224,285 | | | 4.00%, 06/01/2045 | | | 246,853 | |
| | | 1,087,206 | | | 4.00%, 02/01/2046 | | | 1,184,049 | |
| | | 278,152 | | | 4.00%, 09/01/2048 | | | 297,448 | |
| | | 512,783 | | | 4.50%, 09/01/2044 | | | 569,620 | |
| | | 1,880,785 | | | 4.75%, 07/15/2039 | | | 2,139,081 | |
| | | 32,229 | | | 5.00%, 02/01/2023 | | | 35,592 | |
| | | 72,681 | | | 5.00%, 08/01/2023 | | | 80,264 | |
| | | 63,446 | | | 5.00%, 03/01/2028 | | | 70,648 | |
| | | 28,242 | | | 5.00%, 08/01/2029 | | | 31,514 | |
| | | 46,191 | | | 5.00%, 07/01/2030 | | | 52,258 | |
| | | 241,617 | | | 5.00%, 03/01/2031 | | | 274,190 | |
| | | 408,911 | | | 5.00%, 05/01/2031 | | | 464,043 | |
| | | 616,392 | | | 5.00%, 09/01/2031 | | | 686,163 | |
| | | 465,106 | | | 5.00%, 11/01/2031 | | | 525,583 | |
| | | 143,315 | | | 5.00%, 07/01/2032 | | | 159,728 | |
| | | 785,113 | | | 5.00%, 09/15/2033(4) | | | 134,697 | |
| | | 4,790 | | | 5.00%, 12/01/2034 | | | 5,302 | |
| | | 12,392 | | | 5.00%, 11/01/2035 | | | 14,417 | |
| | | 32,284 | | | 5.00%, 03/01/2039 | | | 37,551 | |
| | | 244,260 | | | 5.00%, 08/01/2039 | | | 283,966 | |
| | | 10,692 | | | 5.00%, 09/01/2039 | | | 12,437 | |
| | | 12,347 | | | 5.00%, 12/01/2039 | | | 14,363 | |
| | | 9,616 | | | 5.00%, 04/01/2041 | | | 11,184 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | FHLMC - 4.6% - (continued) | |
| $ | | | 26,482 | | | 5.00%, 04/01/2044 | | $ | 30,747 | |
| | | 15,494 | | | 5.00%, 05/01/2044 | | | 17,469 | |
| | | 23,975 | | | 5.00%, 05/01/2047 | | | 26,855 | |
| | | 999,399 | | | 5.00%, 02/15/2048(4) | | | 181,131 | |
| | | 44,924 | | | 5.00%, 08/01/2048 | | | 49,759 | |
| | | 13,893 | | | 5.00%, 11/01/2048 | | | 15,343 | |
| | | 94,842 | | | 5.00%, 01/01/2049 | | | 104,717 | |
| | | 221,480 | | | 5.00%, 02/01/2049 | | | 244,593 | |
| | | 2,294,427 | | | 5.00%, 03/01/2049 | | | 2,535,848 | |
| | | 27,186 | | | 5.50%, 03/01/2028 | | | 30,393 | |
| | | 58,491 | | | 5.50%, 04/01/2033 | | | 67,126 | |
| | | 673,437 | | | 5.50%, 05/01/2034 | | | 786,845 | |
| | | 846 | | | 5.50%, 11/01/2035 | | | 995 | |
| | | 13,257 | | | 5.50%, 05/01/2037 | | | 15,561 | |
| | | 34,357 | | | 5.50%, 11/01/2037 | | | 40,402 | |
| | | 59,913 | | | 5.50%, 02/01/2038 | | | 70,457 | |
| | | 25,234 | | | 5.50%, 04/01/2038 | | | 29,675 | |
| | | 31,949 | | | 5.50%, 06/01/2038 | | | 37,571 | |
| | | 3,514,007 | | | 5.50%, 08/01/2038 | | | 4,130,070 | |
| | | 352,756 | | | 5.50%, 09/01/2038 | | | 414,530 | |
| | | 6,817 | | | 5.50%, 12/01/2039 | | | 8,013 | |
| | | 91,614 | | | 5.50%, 02/01/2040 | | | 107,721 | |
| | | 295,613 | | | 5.50%, 05/01/2040 | | | 347,520 | |
| | | 293,077 | | | 5.50%, 08/01/2040 | | | 344,500 | |
| | | 1,334,441 | | | 5.50%, 06/01/2041 | | | 1,569,262 | |
| | | 1,242,238 | | | 5.50%, 10/15/2046(4) | | | 261,215 | |
| | | 1,220 | | | 6.00%, 07/01/2029 | | | 1,370 | |
| | | 161,293 | | | 6.00%, 10/01/2032 | | | 192,040 | |
| | | 121,719 | | | 6.00%, 11/01/2032 | | | 137,233 | |
| | | 199,153 | | | 6.00%, 12/01/2032 | | | 235,478 | |
| | | 15,154 | | | 6.00%, 11/01/2033 | | | 18,218 | |
| | | 28,713 | | | 6.00%, 01/01/2034 | | | 34,519 | |
| | | 15,758 | | | 6.00%, 02/01/2034 | | | 18,944 | |
| | | 164,703 | | | 6.00%, 08/01/2034 | | | 198,014 | |
| | | 174,501 | | | 6.00%, 09/01/2034 | | | 209,720 | |
| | | 176,444 | | | 6.00%, 01/01/2035 | | | 199,659 | |
| | | 1,263,198 | | | 6.00%, 11/01/2037 | | | 1,500,166 | |
| | | 237 | | | 6.50%, 08/01/2032 | | | 272 | |
| | | 624,695 | | | 6.50%, 07/15/2036 | | | 717,070 | |
| | | 133,533 | | | 6.50%, 12/01/2037 | | | 150,737 | |
| | | 85 | | | 7.50%, 09/01/2029 | | | 91 | |
| | | 250 | | | 7.50%, 11/01/2031 | | | 254 | |
| | | | | | | | | | |
| | | | | | | | | 109,596,320 | |
| | | | | | | | | | |
| | | | | | FNMA - 6.2% | |
| | | 101,683 | | | 0.00%, 03/25/2036(15) | | | 92,528 | |
| | | 838,877 | | | 0.00%, 06/25/2036(15) | | | 786,554 | |
| | | 8,695,558 | | | 0.33%, 01/25/2030(2)(4) | | | 188,255 | |
| | | 11,818,006 | | | 1.44%, 05/25/2029(2)(4) | | | 1,143,415 | |
| | | 1,754,786 | | | 1.75%, 12/25/2042 | | | 1,800,961 | |
| | | 1,268,834 | | | 2.00%, 09/25/2039 | | | 1,311,062 | |
| | | 504,288 | | | 2.00%, 08/25/2043 | | | 507,342 | |
| | | 2,258,752 | | | 2.17%, 05/25/2046(2)(4) | | | 126,302 | |
| | | 2,223,278 | | | 2.37%, 04/25/2055(2)(4) | | | 122,907 | |
| | | 1,595,769 | | | 2.39%, 06/25/2055(2)(4) | | | 95,056 | |
| | | 558,758 | | | 2.50%, 06/25/2028(4) | | | 31,264 | |
| | | 3,517,842 | | | 2.50%, 09/01/2040 | | | 3,718,544 | |
| | | 142,365 | | | 2.50%, 01/01/2043 | | | 150,535 | |
| | | 3,305,546 | | | 2.50%, 02/01/2043 | | | 3,538,034 | |
| | | 1,420,589 | | | 2.50%, 03/01/2043 | | | 1,519,397 | |
| | | 2,655,337 | | | 2.50%, 05/01/2043 | | | 2,841,738 | |
| | | 1,919,422 | | | 2.50%, 06/01/2043 | | | 2,054,444 | |
| | | 1,343,921 | | | 2.50%, 04/01/2045 | | | 1,438,429 | |
| | | 1,817,974 | | | 2.91%, 08/25/2044(2)(4) | | | 112,797 | |
| | | 1,119,973 | | | 3.00%, 02/25/2027(4) | | | 50,293 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | FNMA - 6.2% - (continued) | |
| $ | | | 471,726 | | | 3.00%, 09/25/2027(4) | | $ | 30,044 | |
| | | 3,254,641 | | | 3.00%, 01/25/2028(4) | | | 195,658 | |
| | | 6,170,179 | | | 3.00%, 04/25/2033(4) | | | 421,619 | |
| | | 1,295,545 | | | 3.00%, 08/01/2033 | | | 1,360,638 | |
| | | 2,544,736 | | | 3.00%, 03/01/2037 | | | 2,680,851 | |
| | | 1,027,819 | | | 3.00%, 05/25/2047 | | | 1,064,306 | |
| | | 4,208,909 | | | 3.00%, 09/25/2047 | | | 4,517,033 | |
| | | 2,405,899 | | | 3.00%, 09/01/2048 | | | 2,528,118 | |
| | | 3,149,389 | | | 3.00%, 10/25/2048 | | | 3,385,442 | |
| | | 3,202,824 | | | 3.00%, 08/25/2049 | | | 3,448,238 | |
| | | 462,956 | | | 3.24%, 12/01/2026 | | | 519,413 | |
| | | 528,325 | | | 3.50%, 05/25/2027(4) | | | 35,878 | |
| | | 861,267 | | | 3.50%, 10/25/2027(4) | | | 63,274 | |
| | | 1,037,608 | | | 3.50%, 05/25/2030(4) | | | 88,788 | |
| | | 287,135 | | | 3.50%, 08/25/2030(4) | | | 23,226 | |
| | | 561,057 | | | 3.50%, 02/25/2031(4) | | | 34,856 | |
| | | 632,474 | | | 3.50%, 09/25/2035(4) | | | 69,955 | |
| | | 4,458,111 | | | 3.50%, 11/25/2039(4) | | | 469,079 | |
| | | 1,298,409 | | | 3.50%, 10/01/2044 | | | 1,419,437 | |
| | | 1,411,781 | | | 3.50%, 02/01/2045 | | | 1,515,832 | |
| | | 1,390,454 | | | 3.50%, 01/01/2046 | | | 1,485,319 | |
| | | 1,001,742 | | | 3.50%, 03/01/2046 | | | 1,070,738 | |
| | | 2,500,634 | | | 3.50%, 09/01/2046 | | | 2,670,174 | |
| | | 1,273,271 | | | 3.50%, 10/01/2046 | | | 1,358,039 | |
| | | 630,194 | | | 3.50%, 10/25/2046(4) | | | 101,682 | |
| | | 1,057,773 | | | 3.50%, 11/01/2046 | | | 1,156,452 | |
| | | 1,894,599 | | | 3.50%, 05/01/2047 | | | 2,036,231 | |
| | | 3,860,119 | | | 3.50%, 09/01/2047 | | | 4,105,172 | |
| | | 3,613,869 | | | 3.50%, 11/25/2047 | | | 3,938,173 | |
| | | 655,301 | | | 3.50%, 12/01/2047 | | | 699,465 | |
| | | 3,127,872 | | | 3.50%, 01/01/2048 | | | 3,312,557 | |
| | | 638,521 | | | 3.50%, 02/01/2048 | | | 681,236 | |
| | | 819,744 | | | 3.50%, 02/25/2048 | | | 860,201 | |
| | | 2,822,600 | | | 3.50%, 07/01/2048 | | | 3,010,700 | |
| | | 6,934,354 | | | 3.50%, 09/01/2057 | | | 7,660,295 | |
| | | 4,059,593 | | | 3.50%, 05/01/2058 | | | 4,484,579 | |
| | | 4,332,847 | | | 3.50%, 12/25/2058 | | | 4,766,097 | |
| | | 1,874,007 | | | 3.74%, 06/01/2026 | | | 2,110,920 | |
| | | 959,735 | | | 4.00%, 06/01/2025 | | | 1,018,297 | |
| | | 338,137 | | | 4.00%, 10/01/2025 | | | 358,998 | |
| | | 264,449 | | | 4.00%, 04/25/2032(4) | | | 27,620 | |
| | | 2,657,829 | | | 4.00%, 10/01/2040 | | | 2,921,784 | |
| | | 1,168,907 | | | 4.00%, 11/01/2040 | | | 1,281,822 | |
| | | 833,464 | | | 4.00%, 12/01/2040 | | | 910,863 | |
| | | 422,321 | | | 4.00%, 02/01/2041 | | | 462,921 | |
| | | 1,113,778 | | | 4.00%, 03/01/2041 | | | 1,227,616 | |
| | | 2,679,118 | | | 4.00%, 06/01/2041 | | | 2,922,054 | |
| | | 425,884 | | | 4.00%, 03/25/2042(4) | | | 42,248 | |
| | | 529,586 | | | 4.00%, 08/01/2042 | | | 583,783 | |
| | | 987,623 | | | 4.00%, 09/01/2042 | | | 1,088,686 | |
| | | 249,671 | | | 4.00%, 11/25/2042(4) | | | 35,645 | |
| | | 169,062 | | | 4.00%, 03/01/2045 | | | 184,872 | |
| | | 884,743 | | | 4.00%, 07/01/2045 | | | 977,644 | |
| | | 353,940 | | | 4.00%, 05/01/2046 | | | 382,268 | |
| | | 971,795 | | | 4.00%, 06/01/2046 | | | 1,055,166 | |
| | | 1,039,036 | | | 4.00%, 04/01/2047 | | | 1,145,955 | |
| | | 3,528,157 | | | 4.00%, 10/01/2047 | | | 3,790,784 | |
| | | 2,366,035 | | | 4.00%, 05/01/2048 | | | 2,533,239 | |
| | | 2,185,922 | | | 4.00%, 09/01/2048 | | | 2,335,836 | |
| | | 240,071 | | | 4.50%, 04/01/2025 | | | 253,946 | |
| | | 358,955 | | | 4.50%, 07/25/2027(4) | | | 21,446 | |
| | | 736,951 | | | 4.50%, 09/01/2035 | | | 816,259 | |
| | | 2,554,811 | | | 4.50%, 08/01/2040 | | | 2,853,949 | |
| | | 2,347,915 | | | 4.50%, 10/01/2040 | | | 2,633,122 | |
| | | 1,074,292 | | | 4.50%, 10/01/2041 | | | 1,204,558 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | FNMA - 6.2% - (continued) | |
| $ | | | 2,460,015 | | | 4.50%, 08/25/2043(4) | | $ | 380,607 | |
| | | 906,748 | | | 4.50%, 09/01/2043 | | | 1,016,380 | |
| | | 1,641,418 | | | 4.50%, 04/01/2049 | | | 1,780,382 | |
| | | 5,020,303 | | | 4.50%, 01/01/2051 | | | 5,631,948 | |
| | | 168,649 | | | 5.00%, 06/01/2022 | | | 176,838 | |
| | | 121,995 | | | 5.00%, 06/01/2025 | | | 128,143 | |
| | | 408,514 | | | 5.00%, 04/25/2038 | | | 452,560 | |
| | | 1,957,571 | | | 5.00%, 02/01/2049 | | | 2,167,480 | |
| | | 252,300 | | | 5.00%, 03/01/2049 | | | 279,159 | |
| | | 162,933 | | | 5.48%, 05/25/2042(2)(4) | | | 14,071 | |
| | | 20,654 | | | 5.50%, 06/01/2022 | | | 21,076 | |
| | | 159,472 | | | 5.50%, 06/01/2033 | | | 185,555 | |
| | | 106,835 | | | 5.50%, 08/01/2033 | | | 122,424 | |
| | | 793,307 | | | 5.50%, 09/01/2033 | | | 924,939 | |
| | | 764,107 | | | 5.50%, 12/01/2033 | | | 892,144 | |
| | | 542,452 | | | 5.50%, 01/01/2034 | | | 632,381 | |
| | | 2,816,274 | | | 5.50%, 11/01/2035 | | | 3,304,557 | |
| | | 802,983 | | | 5.50%, 04/01/2036 | | | 943,731 | |
| | | 621,083 | | | 5.50%, 09/01/2036 | | | 723,865 | |
| | | 51,530 | | | 5.50%, 01/01/2037 | | | 60,571 | |
| | | 436,011 | | | 5.50%, 04/25/2037 | | | 508,057 | |
| | | 2,577,815 | | | 5.50%, 11/25/2040(4) | | | 401,190 | |
| | | 1,837,760 | | | 5.50%, 06/25/2042(4) | | | 390,414 | |
| | | 2,138,277 | | | 5.50%, 08/25/2044(4) | | | 427,633 | |
| | | 413 | | | 6.00%, 03/01/2022 | | | 415 | |
| | | 318,989 | | | 6.00%, 12/01/2032 | | | 372,233 | |
| | | 261,301 | | | 6.00%, 01/01/2033 | | | 302,877 | |
| | | 65,908 | | | 6.00%, 02/01/2033 | | | 74,127 | |
| | | 382,618 | | | 6.00%, 03/01/2033 | | | 447,105 | |
| | | 619,705 | | | 6.00%, 02/01/2037 | | | 741,274 | |
| | | 1,736,075 | | | 6.00%, 01/25/2042(4) | | | 221,769 | |
| | | 1,282,329 | | | 6.00%, 09/25/2047(4) | | | 280,388 | |
| | | 506 | | | 6.50%, 05/01/2031 | | | 567 | |
| | | 856 | | | 6.50%, 09/01/2031 | | | 972 | |
| | | 1,067 | | | 6.50%, 07/01/2032 | | | 1,223 | |
| | | 1,010 | | | 7.00%, 07/01/2029 | | | 1,168 | |
| | | 81 | | | 7.00%, 12/01/2030 | | | 84 | |
| | | 291 | | | 7.00%, 02/01/2032 | | | 298 | |
| | | 146 | | | 7.00%, 03/01/2032 | | | 172 | |
| | | 1,625 | | | 7.00%, 09/01/2032 | | | 1,762 | |
| | | 559 | | | 7.50%, 10/01/2022 | | | 583 | |
| | | 1,192 | | | 7.50%, 06/01/2027 | | | 1,376 | |
| | | 10,539 | | | 7.50%, 03/01/2030 | | | 12,027 | |
| | | 7,299 | | | 7.50%, 04/01/2030 | | | 7,895 | |
| | | 887 | | | 7.50%, 06/01/2030 | | | 1,039 | |
| | | 1,350 | | | 7.50%, 07/01/2030 | | | 1,559 | |
| | | 411 | | | 7.50%, 08/01/2030 | | | 478 | |
| | | 6,683 | | | 7.50%, 01/01/2031 | | | 6,837 | |
| | | 14,861 | | | 7.50%, 05/01/2031 | | | 17,199 | |
| | | 5,226 | | | 7.50%, 06/01/2031 | | | 5,391 | |
| | | 1,120 | | | 7.50%, 08/01/2031 | | | 1,278 | |
| | | 18,896 | | | 7.50%, 09/01/2031 | | | 19,204 | |
| | | 156 | | | 7.50%, 05/01/2032 | | | 185 | |
| | | | | | | | | | |
| | | | | | | | | 148,168,543 | |
| | | | | | | | | | |
| | | | | | GNMA - 12.0% | |
| | | 1,150,137 | | | 1.75%, 09/20/2043 | | | 1,174,245 | |
| | | 1,041,328 | | | 2.00%, 01/20/2042 | | | 1,069,039 | |
| | | 35,400,000 | | | 2.00%, 01/21/2051(16) | | | 37,019,274 | |
| | | 1,090,850 | | | 2.50%, 12/16/2039 | | | 1,143,237 | |
| | | 1,697,749 | | | 2.50%, 07/20/2041 | | | 1,783,130 | |
| | | 21,275,000 | | | 2.50%, 01/21/2051(16) | | | 22,521,582 | |
| | | 575,522 | | | 3.00%, 09/20/2028(4) | | | 39,169 | |
| | | 6,112,954 | | | 3.00%, 05/20/2035(4) | | | 425,555 | |
| | | 446,761 | | | 3.00%, 02/16/2043(4) | | | 58,222 | |
| | | 3,603,149 | | | 3.00%, 03/15/2045 | | | 3,783,328 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | GNMA - 12.0% - (continued) | |
| $ | | | 177,867 | | | 3.00%, 04/15/2045 | | $ | 186,587 | |
| | | 2,416,192 | | | 3.00%, 07/15/2045 | | | 2,531,438 | |
| | | 57,433 | | | 3.00%, 08/15/2045 | | | 60,222 | |
| | | 1,169,167 | | | 3.00%, 10/20/2047 | | | 1,217,895 | |
| | | 27,170,200 | | | 3.00%, 07/20/2050 | | | 28,512,364 | |
| | | 15,845,000 | | | 3.00%, 01/21/2051(16) | | | 16,569,166 | |
| | | 241,154 | | | 3.50%, 02/16/2027(4) | | | 15,976 | |
| | | 600,778 | | | 3.50%, 03/20/2027(4) | | | 44,180 | |
| | | 573,202 | | | 3.50%, 07/20/2040(4) | | | 31,403 | |
| | | 808,952 | | | 3.50%, 02/20/2041(4) | | | 32,965 | |
| | | 1,454,092 | | | 3.50%, 04/20/2042(4) | | | 107,887 | |
| | | 2,476,915 | | | 3.50%, 10/20/2042(4) | | | 350,401 | |
| | | 296,201 | | | 3.50%, 11/15/2042 | | | 330,026 | |
| | | 8,004 | | | 3.50%, 12/15/2042 | | | 8,778 | |
| | | 194,827 | | | 3.50%, 02/15/2043 | | | 212,253 | |
| | | 11,199 | | | 3.50%, 03/15/2043 | | | 12,283 | |
| | | 1,396,728 | | | 3.50%, 04/15/2043 | | | 1,532,184 | |
| | | 3,452,009 | | | 3.50%, 05/15/2043 | | | 3,768,826 | |
| | | 260,784 | | | 3.50%, 05/20/2043(4) | | | 36,156 | |
| | | 1,306,970 | | | 3.50%, 07/20/2043(4) | | | 148,645 | |
| | | 929,749 | | | 3.50%, 07/20/2046 | | | 1,004,062 | |
| | | 931,744 | | | 3.50%, 10/20/2046 | | | 1,004,754 | |
| | | 3,814,026 | | | 3.50%, 02/20/2047 | | | 4,097,758 | |
| | | 1,221,898 | | | 3.50%, 08/20/2047 | | | 1,309,467 | |
| | | 872,528 | | | 3.50%, 11/20/2047 | | | 934,520 | |
| | | 1,084,846 | | | 3.50%, 03/20/2048 | | | 1,158,720 | |
| | | 3,942,448 | | | 3.50%, 07/20/2049 | | | 4,179,857 | |
| | | 55,465,000 | | | 3.50%, 01/21/2051(16) | | | 58,784,234 | |
| | | 1,990,033 | | | 3.88%, 08/15/2042 | | | 2,187,492 | |
| | | 161,011 | | | 4.00%, 12/16/2026(4) | | | 10,107 | |
| | | 2,427,367 | | | 4.00%, 05/20/2029(4) | | | 159,812 | |
| | | 3,159,166 | | | 4.00%, 07/20/2040 | | | 3,495,069 | |
| | | 3,619,031 | | | 4.00%, 09/20/2040 | | | 4,003,328 | |
| | | 5,466,468 | | | 4.00%, 10/20/2040 | | | 6,047,838 | |
| | | 1,123,795 | | | 4.00%, 12/20/2040 | | | 1,274,520 | |
| | | 311,624 | | | 4.00%, 05/16/2042(4) | | | 40,297 | |
| | | 468,903 | | | 4.00%, 03/20/2043(4) | | | 79,290 | |
| | | 223,996 | | | 4.00%, 01/20/2044(4) | | | 39,259 | |
| | | 1,843,735 | | | 4.00%, 01/16/2046(4) | | | 329,760 | |
| | | 1,776,658 | | | 4.00%, 03/20/2047(4) | | | 217,571 | |
| | | 889,329 | | | 4.00%, 11/20/2047 | | | 986,203 | |
| | | 3,230,136 | | | 4.00%, 03/20/2048 | | | 3,537,743 | |
| | | 9,324,494 | | | 4.00%, 07/20/2048 | | | 10,036,128 | |
| | | 10,871,000 | | | 4.00%, 01/21/2051(16) | | | 11,590,355 | |
| | | 163,780 | | | 4.50%, 11/15/2039 | | | 183,510 | |
| | | 1,084,246 | | | 4.50%, 05/15/2040 | | | 1,217,425 | |
| | | 3,619,881 | | | 4.50%, 05/20/2040 | | | 4,032,771 | |
| | | 207,290 | | | 4.50%, 07/15/2041 | | | 232,912 | |
| | | 783,058 | | | 4.50%, 04/20/2045(4) | | | 139,193 | |
| | | 3,190,516 | | | 4.50%, 08/20/2045 | | | 549,465 | |
| | | 330,896 | | | 4.50%, 01/20/2046 | | | 368,594 | |
| | | 2,833,795 | | | 4.50%, 01/20/2047(4) | | | 291,310 | |
| | | 2,391,302 | | | 4.50%, 05/20/2048(4) | | | 319,772 | |
| | | 16,320,000 | | | 4.50%, 01/21/2051(16) | | | 17,475,150 | |
| | | 2,032,635 | | | 5.00%, 02/16/2040(4) | | | 368,675 | |
| | | 399,824 | | | 5.00%, 05/20/2040 | | | 456,917 | |
| | | 1,008,175 | | | 5.00%, 06/15/2041 | | | 1,158,555 | |
| | | 1,194,250 | | | 5.00%, 10/16/2041(4) | | | 206,155 | |
| | | 1,559,317 | | | 5.00%, 03/15/2044 | | | 1,792,426 | |
| | | 447,122 | | | 5.00%, 01/16/2047(4) | | | 82,366 | |
| | | 4,400,000 | | | 5.00%, 01/21/2051(16) | | | 4,846,188 | |
| | | 394,019 | | | 5.50%, 03/15/2033 | | | 455,124 | |
| | | 508,798 | | | 5.50%, 04/15/2033 | | | 587,666 | |
| | | 594,439 | | | 5.50%, 05/15/2033 | | | 692,776 | |
| | | 792,086 | | | 5.50%, 10/20/2034 | | | 927,400 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | GNMA - 12.0% - (continued) | |
| $ | | | 1,674,541 | | | 5.50%, 03/20/2039(4) | | $ | 268,140 | |
| | | 1,425,162 | | | 5.50%, 02/16/2047(4) | | | 249,505 | |
| | | 876,184 | | | 5.50%, 02/20/2047(4) | | | 166,734 | |
| | | 1,004 | | | 6.00%, 12/15/2023 | | | 1,126 | |
| | | 904 | | | 6.00%, 01/15/2029 | | | 1,019 | |
| | | 853 | | | 6.00%, 04/15/2029 | | | 1,014 | |
| | | 33,454 | | | 6.00%, 12/15/2031 | | | 38,255 | |
| | | 642 | | | 6.00%, 10/15/2032 | | | 772 | |
| | | 16,119 | | | 6.00%, 06/15/2033 | | | 19,499 | |
| | | 797 | | | 6.00%, 03/15/2034 | | | 897 | |
| | | 37,808 | | | 6.00%, 08/15/2034 | | | 45,740 | |
| | | 55,248 | | | 6.00%, 09/15/2034 | | | 62,796 | |
| | | 29,875 | | | 6.00%, 02/15/2035 | | | 35,316 | |
| | | 208,811 | | | 6.00%, 12/15/2035 | | | 239,185 | |
| | | 23,871 | | | 6.00%, 02/15/2036 | | | 26,809 | |
| | | 133,445 | | | 6.00%, 03/15/2036 | | | 158,527 | |
| | | 16,394 | | | 6.00%, 04/15/2036 | | | 18,407 | |
| | | 75,430 | | | 6.00%, 05/15/2036 | | | 91,170 | |
| | | 140,145 | | | 6.00%, 06/15/2036 | | | 165,934 | |
| | | 43,289 | | | 6.00%, 07/15/2036 | | | 48,660 | |
| | | 18,203 | | | 6.00%, 08/15/2036 | | | 20,563 | |
| | | 123,311 | | | 6.00%, 02/15/2037 | | | 148,295 | |
| | | 490 | | | 6.00%, 05/15/2037 | | | 580 | |
| | | 246,399 | | | 6.00%, 06/15/2037 | | | 293,959 | |
| | | 214,573 | | | 6.00%, 07/15/2037 | | | 259,422 | |
| | | 41,563 | | | 6.00%, 08/15/2037 | | | 48,940 | |
| | | 64,602 | | | 6.00%, 10/15/2037 | | | 77,916 | |
| | | 34,420 | | | 6.00%, 11/15/2037 | | | 40,575 | |
| | | 58,909 | | | 6.00%, 12/15/2037 | | | 71,168 | |
| | | 131,009 | | | 6.00%, 01/15/2038 | | | 153,600 | |
| | | 6,023 | | | 6.00%, 02/15/2038 | | | 6,823 | |
| | | 16,084 | | | 6.00%, 05/15/2038 | | | 18,550 | |
| | | 3,616 | | | 6.00%, 06/15/2038 | | | 4,252 | |
| | | 24,114 | | | 6.00%, 08/15/2038 | | | 28,714 | |
| | | 82,842 | | | 6.00%, 09/15/2038 | | | 94,975 | |
| | | 94,639 | | | 6.00%, 10/15/2038 | | | 111,163 | |
| | | 174,054 | | | 6.00%, 11/15/2038 | | | 202,486 | |
| | | 45,457 | | | 6.00%, 12/15/2038 | | | 54,172 | |
| | | 1,065 | | | 6.00%, 01/15/2039 | | | 1,234 | |
| | | 34,345 | | | 6.00%, 08/15/2039 | | | 39,085 | |
| | | 48,213 | | | 6.00%, 11/15/2039 | | | 56,848 | |
| | | 13,190 | | | 6.00%, 02/15/2040 | | | 14,814 | |
| | | 582,713 | | | 6.00%, 06/15/2040 | | | 692,648 | |
| | | 111,859 | | | 6.00%, 07/15/2040 | | | 135,136 | |
| | | 1,353,773 | | | 6.00%, 09/20/2040(4) | | | 242,849 | |
| | | 603,663 | | | 6.00%, 06/15/2041 | | | 721,153 | |
| | | 1,306,890 | | | 6.00%, 02/20/2046(4) | | | 255,565 | |
| | | 19,086 | | | 6.50%, 06/15/2028 | | | 21,333 | |
| | | 415 | | | 6.50%, 07/15/2028 | | | 460 | |
| | | 1,485 | | | 6.50%, 08/15/2028 | | | 1,649 | |
| | | 11,834 | | | 6.50%, 09/15/2028 | | | 13,144 | |
| | | 771 | | | 6.50%, 10/15/2028 | | | 856 | |
| | | 2,521 | | | 6.50%, 11/15/2028 | | | 2,800 | |
| | | 4,193 | | | 6.50%, 12/15/2028 | | | 4,657 | |
| | | 1,880 | | | 6.50%, 01/15/2029 | | | 2,088 | |
| | | 18,306 | | | 6.50%, 02/15/2029 | | | 20,332 | |
| | | 111,547 | | | 6.50%, 03/15/2029 | | | 123,886 | |
| | | 25,167 | | | 6.50%, 04/15/2029 | | | 27,951 | |
| | | 13,253 | | | 6.50%, 05/15/2029 | | | 14,728 | |
| | | 123,005 | | | 6.50%, 06/15/2029 | | | 136,612 | |
| | | 5,148 | | | 6.50%, 07/15/2029 | | | 5,718 | |
| | | 120 | | | 6.50%, 03/15/2031 | | | 133 | |
| | | 160,924 | | | 6.50%, 04/15/2031 | | | 180,374 | |
| | | 34,838 | | | 6.50%, 05/15/2031 | | | 40,466 | |
| | | 6,526 | | | 6.50%, 06/15/2031 | | | 7,372 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| U.S. GOVERNMENT AGENCIES - 38.7% - (continued) | |
| | | | | | GNMA - 12.0% - (continued) | |
| $ | | | 154,926 | | | 6.50%, 07/15/2031 | | $ | 174,076 | |
| | | 46,253 | | | 6.50%, 08/15/2031 | | | 51,405 | |
| | | 90,838 | | | 6.50%, 09/15/2031 | | | 100,956 | |
| | | 134,786 | | | 6.50%, 10/15/2031 | | | 153,312 | |
| | | 232,327 | | | 6.50%, 11/15/2031 | | | 260,781 | |
| | | 42,738 | | | 6.50%, 12/15/2031 | | | 47,465 | |
| | | 177,384 | | | 6.50%, 01/15/2032 | | | 200,390 | |
| | | 36,703 | | | 6.50%, 02/15/2032 | | | 42,197 | |
| | | 32,767 | | | 6.50%, 03/15/2032 | | | 37,178 | |
| | | 153,916 | | | 6.50%, 04/15/2032 | | | 178,769 | |
| | | 611 | | | 6.50%, 05/15/2032 | | | 692 | |
| | | 15,789 | | | 6.50%, 06/15/2032 | | | 17,535 | |
| | | 1,208 | | | 7.00%, 06/20/2030 | | | 1,224 | |
| | | 511 | | | 7.00%, 02/15/2031 | | | 580 | |
| | | 168 | | | 7.00%, 06/15/2031 | | | 182 | |
| | | 109 | | | 7.00%, 08/15/2031 | | | 123 | |
| | | 435 | | | 8.50%, 11/15/2024 | | | 437 | |
| | | | | | | | | | |
| | | | | | | | | 284,925,761 | |
| | | | | | | | | | |
| | | | | | UMBS - 15.9% | |
| | | 31,345,000 | | | 1.50%, 01/16/2036(16) | | | 32,251,066 | |
| | | 6,300,000 | | | 1.50%, 01/14/2051(16) | | | 6,365,215 | |
| | | 14,730,000 | | | 2.00%, 01/16/2036(16) | | | 15,399,755 | |
| �� | | 78,645,000 | | | 2.00%, 01/14/2051(16) | | | 81,695,566 | |
| | | 71,117,000 | | | 2.00%, 02/12/2051(16) | | | 73,750,861 | |
| | | 20,625,000 | | | 2.50%, 01/16/2036(16) | | | 21,511,230 | |
| | | 39,205,000 | | | 2.50%, 01/14/2051(16) | | | 41,327,583 | |
| | | 6,726,000 | | | 3.00%, 01/16/2036(16) | | | 7,058,560 | |
| | | 49,517,000 | | | 3.00%, 01/14/2051(16) | | | 51,880,663 | |
| | | 28,314,500 | | | 4.00%, 01/14/2051(16) | | | 30,239,001 | |
| | | 7,045,000 | | | 4.50%, 01/14/2051(16) | | | 7,635,019 | |
| | | 6,900,000 | | | 4.50%, 02/12/2051(16) | | | 7,477,734 | |
| | | | | | | | | | |
| | | | | | | | | 376,592,253 | |
| | | | | | | | | | |
| | | |
| | | | | | Total U.S. Government Agencies
(cost $903,291,997) | | $ | 919,282,877 | |
| | | | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 20.1% | |
| | | | | | U.S. Treasury Securities - 20.1% | |
| | | | | | U.S. Treasury Bonds - 8.9% | |
| $ | | | 3,832,953 | | | 1.00%, 02/15/2048(17)(18) | | $ | 5,333,545 | |
| | | 4,005,000 | | | 1.25%, 05/15/2050 | | | 3,633,286 | |
| | | 7,090,000 | | | 2.25%, 08/15/2046 | | | 8,093,124 | |
| | | 7,350,000 | | | 2.25%, 08/15/2049 | | | 8,411,443 | |
| | | 78,145,000 | | | 2.88%, 08/15/2045(18) | | | 99,424,250 | |
| | | 20,715,000 | | | 3.13%, 08/15/2044(18)(19) | | | 27,320,334 | |
| | | 26,860,000 | | | 3.38%, 05/15/2044(18)(20) | | | 36,732,099 | |
| | | 16,575,000 | | | 3.75%, 11/15/2043 | | | 23,857,641 | |
| | | | | | | | | | |
| | | | | | | | | 212,805,722 | |
| | | | | | | | | | |
| | | | | | U.S. Treasury Notes - 11.2% | |
| | | 11,253,589 | | | 0.38%, 01/15/2027(17)(18) | | | 12,557,276 | |
| | | 97,135,000 | | | 0.63%, 05/15/2030(18)(20) | | | 94,964,640 | |
| | | 18,943,511 | | | 0.88%, 01/15/2029(17) | | | 22,260,599 | |
| | | 2,550,708 | | | 1.00%, 02/15/2049(17)(18) | | | 3,589,989 | |
| | | 105,360,000 | | | 1.63%, 04/30/2023(18) | | | 108,994,097 | |
| | | 21,395,000 | | | 2.25%, 11/15/2025 | | | 23,364,009 | |
| | | | | | | | | | |
| | | | | | | | | 265,730,610 | |
| | | | | | | | | | |
| | | |
| | | | | | Total U.S. Government Securities
(cost $474,475,232) | | $ | 478,536,332 | |
| | | | | | | | | | |
|
| COMMON STOCKS - 0.0% | |
| | | | | | Energy - 0.0% | |
| $ | | | 64,657 | | | Ascent Resources - Marcellus LLC Class A*(21)(22) | | $ | 34,268 | |
| | | | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| COMMON STOCKS - 0.0% - (continued) | |
| | | | | | Energy - 0.0% - (continued) | |
| $ | | | 6,767 | | | Foresight Energy LLC(21)(22) | | $ | 54,666 | |
| | | 206,275,142 | | | KCA Deutag*(21)(22)(23) | | | — | |
| | | 30,559 | | | Philadelphia Energy Solutions Class A(21)(22) | | | 306 | |
| | | | | | | | | | |
| | | | | | | | | 89,240 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Common Stocks
(cost $3,317,133) | | $ | 89,240 | |
| | | | | | | | | | |
|
| PREFERRED STOCKS - 0.1% | |
| | | | | | Banks - 0.1% | |
| | | 2,242 | | | U.S. Bancorp Series A, 3.50%(3)(9) | | | 2,165,749 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Preferred Stocks
(cost $1,591,820) | | $ | 2,165,749 | |
| | | | | | | | | | |
|
| WARRANTS - 0.0% | |
| | | | | | Energy - 0.0% | |
| | | 16,740 | | | Ascent Resources - Marcellus LLC*(21)(22) | | | 167 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Warrants
(cost $1,339) | | $ | 167 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Long-Term Investments
(cost $2,816,363,667) | | $ | 2,906,218,904 | |
| | | | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 1.1% | |
| | | | | | Commercial Paper - 0.0% | |
| | | 250,000 | | | Nissan Motor Acceptance Corp. 1.34%, 01/29/2021(10) | | $ | 249,733 | |
| | | | | | | | | | |
| | | | | | Repurchase Agreements - 0.8% | |
| | | 18,056,751 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.050%, due on 01/04/2021 with a maturity value of $18,056,851; collateralized by U.S. Treasury Note at 0.125%, maturing 12/15/2023, with a market value of $18,417,903 | | | 18,056,751 | |
| | | | | | | | | | |
| | | | | | Securities Lending Collateral - 0.3% | |
| | | 7,084,407 | | | Fidelity Investments Money Market Funds, Government Portfolio, Institutional Class, 0.01%(24) | | | 7,084,407 | |
| | | 280,974 | | | Goldman Sachs Financial Square Funds, Government Fund, Institutional Class, 0.03%(24) | | | 280,974 | |
| | | | | | | | | | |
| | | | | | | | | 7,365,381 | |
| | | | | | | | | | |
| | | |
| | | | | | Total Short-Term Investments
(cost $25,671,865) | | $ | 25,671,865 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | Total Investments Excluding Purchased Options
(cost $2,842,035,532) | | | 123.4 | % | | $ | 2,931,890,769 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Purchased Options
(cost $98,894) | | | 0.0 | % | | $ | 113,916 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | | Total Investments
(cost $2,842,134,426) | | | 123.4 | % | | $ | 2,932,004,685 | |
| | | | | | Other Assets and Liabilities | | | (23.4 | )% | | | (555,118,708 | ) |
| | | | | | | | | | | | | | |
| | | | | | Total Net Assets | | | 100.0 | % | | $ | 2,376,885,977 | |
| | | | | | | | | | | | | | |
| Note: | Percentage of investments as shown is the ratio of the total market value to total net assets. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | 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, 2020, the aggregate value of these securities was $579,898,244, representing 24.4% of net assets. |
| (2) | 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. |
| (3) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2020. Base lending rates may be subject to a floor or cap. |
| (4) | Securities disclosed are interest-only strips. |
| (5) | Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (6) | 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, 2020, the aggregate value of these securities was $21,793,431, representing 0.9% of net assets. |
| (7) | Represents entire or partial securities on loan. See Note 8 in the accompanying Notes to Financial Statements for securities lending information. |
| (8) | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at December 31, 2020. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (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, 2020. |
| (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, 2020, the aggregate value of the unfunded commitment was $154,346, 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. |
| (15) | Securities disclosed are principal-only strips. |
| (16) | Represents or includes a TBA transaction. |
| (17) | The principal amount for these securities are adjusted for inflation and the interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| (18) | All, or a portion of the security, was pledged as collateral in connection with OTC swap contracts. As of December 31, 2020, the market value of securities pledged was $7,751,420. |
| (19) | All, or a portion of the security, was pledged as collateral in connection with futures contracts. As of December 31, 2020, the market value of securities pledged was $3,219,355. |
| (20) | All, or a portion of the security, was pledged as collateral in connection with centrally cleared swap contracts. As of December 31, 2020, the market value of securities pledged was $17,330,232. |
| (21) | Investment valued using significant unobservable inputs. |
| (22) | 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, 2020, the aggregate fair value of these securities was $89,407, 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. |
| (23) | 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 $0 or 0.0% of net assets. |
| | | | | | | | | | | | | | | | |
Period
Acquired | | | Security Name | | Shares/
Par Value | | | Total Cost | | | Market Value | |
| | 03/2011 | | | KCA Deutag | | | 206,275,142 | | | $ | 2,795,441 | | | $ | — | |
| (24) | Current yield as of period end. |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Swaption Contracts Outstanding at December 31, 2020 | |
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: | |
| Puts | |
3 Month USD-LIBOR-BBA-Interest Rate Swap Expiring 08/18/2022 | | UBS | | 0.57% | | | Receive | | | | 08/18/2022 | | | USD | | | 6,682,000 | | | | 6,682,000 | �� | | $ | 113,916 | | | $ | 98,894 | | | $ | 15,022 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total purchased OTC swaption contracts | | | | | | | | | | | | | | | | | $ | 113,916 | | | $ | 98,894 | | | $ | 15,022 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| OTC Swaption Contracts Outstanding at December 31, 2020 | |
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) | |
| Written swaption contracts: | |
| Calls | |
CDX.NA.IG.35 | | GSC | | 50.00% | | | Pay | | | | 01/20/2021 | | | USD | | | (175,385,000 | ) | | | 175,385,000 | | | $ | (188,241 | ) | | $ | (184,154 | ) | | $ | (4,087 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Written swaption contracts: | |
| Puts | |
CDX.NA.IG.35 | | GSC | | 50.00% | | | Pay | | | | 01/20/2021 | | | USD | | | (175,385,000 | ) | | | 175,385,000 | | | $ | (235,223 | ) | | $ | (350,770 | ) | | $ | 115,547 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total written OTC swaption contracts | | | $ | (423,464 | ) | | $ | (534,924 | ) | | $ | 111,460 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Futures Contracts Outstanding at December 31, 2020 | |
Description | | Number of
Contracts | | | Expiration
Date | | | Current
Notional
Amount | | | Value and
Unrealized
Appreciation/
(Depreciation) | |
| Long position contracts: | |
Australian 10-Year Bond Future | | | 60 | | | | 03/15/2021 | | | $ | 6,810,422 | | | $ | 13,123 | |
U.S. Treasury 5-Year Note Future | | | 640 | | | | 03/31/2021 | | | | 80,745,000 | | | | 168,605 | |
U.S. Treasury 10-Year Note Future | | | 1,184 | | | | 03/22/2021 | | | | 163,484,500 | | | | 165,815 | |
U.S. Treasury Ultra Bond Future | | | 84 | | | | 03/22/2021 | | | | 17,939,250 | | | | (93,964 | ) |
| | | | | | | | | | | | | | | | |
Total | | | $ | 253,579 | |
| | | | | | | | | | | | | | | | |
| Short position contracts: | |
Euro BUXL 30-Year Bond Future | | | 10 | | | | 03/08/2021 | | | $ | 2,751,645 | | | $ | (17,847 | ) |
Long Gilt Future | | | 78 | | | | 03/29/2021 | | | | 14,457,383 | | | | (116,807 | ) |
U.S. Treasury 2-Year Note Future | | | 145 | | | | 03/31/2021 | | | | 32,041,601 | | | | (30,557 | ) |
U.S. Treasury 10-Year Ultra Future | | | 990 | | | | 03/22/2021 | | | | 154,795,781 | | | | 477,727 | |
U.S. Treasury Long Bond Futures | | | 290 | | | | 03/22/2021 | | | | 50,224,375 | | | | 287,977 | |
| | | | | | | | | | | | | | | | |
Total | | | $ | 600,493 | |
| | | | | | | | | | | | | | | | |
Total futures contracts | | | $ | 854,072 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| TBA Sale Commitments Outstanding at December 31, 2020 | |
Description | | Principal
Amount | | | Maturity
Date | | | Market
Value† | | | Unrealized
Appreciation/
(Depreciation) | |
GNMA, 4.00% | | $ | 18,300,000 | | | | 01/21/2051 | | | $ | (19,510,945 | ) | | $ | (35,742 | ) |
UMBS, 3.50% | | | 17,706,000 | | | | 01/14/2051 | | | | (18,715,795 | ) | | | (4,080 | ) |
UMBS, 5.00% | | | 2,509,500 | | | | 01/14/2051 | | | | (2,777,213 | ) | | | 29 | |
UMBS, 5.50% | | | 13,400,000 | | | | 01/14/2051 | | | | (14,970,313 | ) | | | (18,844 | ) |
UMBS, 6.00% | | | 3,300,000 | | | | 01/14/2051 | | | | (3,707,859 | ) | | | 5,672 | |
| | | | | | | | | | | | | | | | |
Total TBA sale commitments (proceeds receivable $59,629,160) | | | $ | (59,682,125 | ) | | $ | (52,965 | ) |
| | | | | | | | | | | | | | | | |
At December 31, 2020, the aggregate market value of TBA Sale Commitments represents (2.5)% of total net assets.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Credit Default Swap Contracts Outstanding at December 31, 2020 | |
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 | | | | 1,322,435 | | | (0.09%) | | | 08/25/2037 | | | | Monthly | | | $ | 243,143 | | | $ | — | | | $ | 52,778 | | | $ | (190,365 | ) |
ABX.HE.AAA.07 | | CSI | | | USD | | | | 3,214,580 | | | (0.09%) | | | 08/25/2037 | | | | Monthly | | | | 679,581 | | | | — | | | | 128,285 | | | | (551,296 | ) |
ABX.HE.PENAAA.06 | | MSC | | | USD | | | | 458,429 | | | (0.11%) | | | 05/25/2046 | | | | Monthly | | | | 44,875 | | | | — | | | | 41,207 | | | | (3,668 | ) |
ABX.HE.PENAAA.06 | | JPM | | | USD | | | | 1,046,557 | | | (0.11%) | | | 05/25/2046 | | | | Monthly | | | | 102,203 | | | | — | | | | 94,069 | | | | (8,134 | ) |
ABX.HE.PENAAA.06 | | GSC | | | USD | | | | 429,577 | | | (0.11%) | | | 05/25/2046 | | | | Monthly | | | | 105,309 | | | | — | | | | 38,613 | | | | (66,696 | ) |
CMBX.NA.AAA.12 | | GSC | | | USD | | | | 6,200,000 | | | (0.50%) | | | 08/17/2061 | | | | Monthly | | | | — | | | | (22,087 | ) | | | (50,067 | ) | | | (27,980 | ) |
CMBX.NA.AAA.12 | | GSC | | | USD | | | | 4,750,000 | | | (0.50%) | | | 08/17/2061 | | | | Monthly | | | | 9,994 | | | | — | | | | (38,293 | ) | | | (48,287 | ) |
CMBX.NA.AAA.12 | | JPM | | | USD | | | | 11,170,000 | | | (0.50%) | | | 08/17/2061 | | | | Monthly | | | | 197,433 | | | | — | | | | (90,050 | ) | | | (287,483 | ) |
CMBX.NA.AAA.12 | | GSC | | | USD | | | | 2,660,000 | | | (0.50%) | | | 08/17/2061 | | | | Monthly | | | | 6,301 | | | | — | | | | (21,481 | ) | | | (27,782 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | $ | 1,388,839 | | | $ | (22,087 | ) | | $ | 155,061 | | | $ | (1,211,691 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sell protection: | |
ABX.HE.AAA.07 | | MSC | | | USD | | | | 1,322,434 | | | 0.09% | | | 08/25/2037 | | | | Monthly | | | $ | 10,900 | | | $ | — | | | $ | (52,775 | ) | | $ | (63,675 | ) |
ABX.HE.AAA.07 | | MSC | | | USD | | | | 3,214,578 | | | 0.09% | | | 08/25/2037 | | | | Monthly | | | | 26,671 | | | | — | | | | (128,285 | ) | | | (154,956 | ) |
ABX.HE.PENAAA.06 | | BCLY | | | USD | | | | 1,934,566 | | | 0.11% | | | 05/25/2046 | | | | Monthly | | | | — | | | | (46,679 | ) | | | (173,893 | ) | | | (127,214 | ) |
CMBX.NA.BB.8 | | GSC | | | USD | | | | 240,000 | | | 5.00% | | | 10/17/2057 | | | | Monthly | | | | — | | | | (25,305 | ) | | | (95,145 | ) | | | (69,840 | ) |
CMBX.NA.BB.8 | | DEUT | | | USD | | | | 1,455,000 | | | 5.00% | | | 10/17/2057 | | | | Monthly | | | | — | | | | (332,709 | ) | | | (576,818 | ) | | | (244,109 | ) |
CMBX.NA.BB.8 | | CSI | | | USD | | | | 2,507,000 | | | 5.00% | | | 10/17/2057 | | | | Monthly | | | | — | | | | (637,412 | ) | | | (993,871 | ) | | | (356,459 | ) |
CMBX.NA.BB.8 | | GSC | | | USD | | | | 3,445,000 | | | 5.00% | | | 10/17/2057 | | | | Monthly | | | | — | | | | (784,272 | ) | | | (1,365,729 | ) | | | (581,457 | ) |
CMBX.NA.BB.8 | | MSC | | | USD | | | | 5,083,000 | | | 5.00% | | | 10/17/2057 | | | | Monthly | | | | — | | | | (1,292,453 | ) | | | (2,015,095 | ) | | | (722,642 | ) |
CMBX.NA.BBB-.6 | | MSC | | | USD | | | | 465,000 | | | 3.00% | | | 05/11/2063 | | | | Monthly | | | | — | | | | (37,653 | ) | | | (123,903 | ) | | | (86,250 | ) |
CMBX.NA.BBB-.6 | | DEUT | | | USD | | | | 485,000 | | | 3.00% | | | 05/11/2063 | | | | Monthly | | | | — | | | | (68,349 | ) | | | (129,232 | ) | | | (60,883 | ) |
CMBX.NA.BBB-.6 | | CSI | | | USD | | | | 920,000 | | | 3.00% | | | 05/11/2063 | | | | Monthly | | | | — | | | | (121,024 | ) | | | (245,142 | ) | | | (124,118 | ) |
CMBX.NA.BBB-.6 | | GSC | | | USD | | | | 2,725,000 | | | 3.00% | | | 05/11/2063 | | | | Monthly | | | | — | | | | (285,279 | ) | | | (726,325 | ) | | | (441,046 | ) |
CMBX.NA.BBB-.6 | | MSC | | | USD | | | | 4,245,000 | | | 3.00% | | | 05/11/2063 | | | | Monthly | | | | — | | | | (591,963 | ) | | | (1,131,114 | ) | | | (539,151 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | $ | 37,571 | | | $ | (4,223,098 | ) | | $ | (7,757,327 | ) | | $ | (3,571,800 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC credit default swap contracts | | | | | | | $ | 1,426,410 | | | $ | (4,245,185 | ) | | $ | (7,602,266 | ) | | $ | (4,783,491 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (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, 2020 | |
Reference Entity | | Notional
Amount (a) | | | (Pay)/Receive
Fixed Rate | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid
(Received) | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
| Credit default swaps on indices: | |
| Buy protection: | |
CDX.NA.HY.35.V1 | | USD | | | 15,910,000 | | | | (5.00 | %) | | | 12/20/2025 | | | | Quarterly | | | | (1,223,134 | ) | | | (1,508,059 | ) | | | (284,925 | ) |
CDX.NA.IG.35.V1 | | USD | | | 8,680,000 | | | | (1.00 | %) | | | 12/20/2025 | | | | Quarterly | | | | (186,053 | ) | | | (215,323 | ) | | | (29,270 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | (1,409,187 | ) | | $ | (1,723,382 | ) | | $ | (314,195 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sell protection: | |
CDX.EM.34.V1 | | USD | | | 88,750,000 | | | | 1.00 | % | | | 12/20/2025 | | | | Quarterly | | | $ | (5,429,796 | ) | | $ | (2,102,955 | ) | | $ | 3,326,841 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total centrally cleared credit default swap contracts | | | | | | | | | | | $ | (6,838,983 | ) | | $ | (3,826,337 | ) | | $ | 3,012,646 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTC Interest Rate Swap Contracts Outstanding at December 31, 2020 | |
Counterparty | | Payments made by
Fund | | Payments received
by Fund | | Notional
Amount | | | Expiration
Date | | | Periodic
Payment
Frequency | | | Upfront
Premiums
Paid | | | Upfront
Premiums
Received | | | Value† | | | Unrealized
Appreciation/
(Depreciation) | |
BOA | | 3M KRW KORIBOR | | 1.20% Fixed | | | KRW | | | | 6,961,450,000 | | | | 12/16/2030 | | | | Quarterly | | | $ | 7,719 | | | $ | — | | | $ | (40,927 | ) | | $ | (48,646 | ) |
BOA | | 3M KRW KORIBOR | | 1.20% Fixed | | | KRW | | | | 7,053,350,000 | | | | 12/16/2030 | | | | Quarterly | | | | 17,169 | | | | — | | | | (41,467 | ) | | | (58,636 | ) |
BOA | | 7 Day CNY Repo Rate | | 2.74% Fixed | | | CNY | | | | 99,085,000 | | | | 12/16/2025 | | | | Quarterly | | | | — | | | | — | | | | 67,869 | | | | 67,869 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total OTC interest rate swap contracts | | | | | | | $ | 24,888 | | | $ | — | | | $ | (14,525 | ) | | $ | (39,413 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Total Return Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared Interest Rate Swap Contracts Outstanding at December 31, 2020 | |
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) | |
0.07% Fixed | | 12 Mo. Federal Funds Rate | | USD | | | 18,225,000 | | | | 08/12/2025 | | | Annual | | $ | — | | | $ | (1,959 | ) | | $ | 115,641 | | | $ | 117,600 | |
0.27% Fixed | | 3 Mo. USD LIBOR | | USD | | | 4,875,000 | | | | 10/08/2023 | | | Semi-Annual | | | — | | | | (948 | ) | | | (6,681 | ) | | | (5,733 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total centrally cleared interest rate swap contracts | | | | | | | | | $ | — | | | $ | (2,907 | ) | | $ | 108,960 | | | $ | 111,867 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Currency Contracts Outstanding at December 31, 2020 | |
Amount and Description of
Currency to be Purchased | | Amount and Description of
Currency to be Sold | | Counterparty | | Settlement
Date | | | Appreciation | | | Depreciation | |
| | 233,000 | | | GBP | | | 310,726 | | | USD | | GSC | | | 03/17/2021 | | | $ | 8,056 | | | $ | — | |
| | 3,004,391 | | | USD | | | 4,005,000 | | | AUD | | BOA | | | 03/17/2021 | | | | — | | | | (85,229 | ) |
| | 108,582 | | | USD | | | 89,000 | | | EUR | | BCLY | | | 01/29/2021 | | | | — | | | | (223 | ) |
| | 4,593,226 | | | USD | | | 3,779,861 | | | EUR | | TDB | | | 01/29/2021 | | | | — | | | | (27,772 | ) |
| | 18,512,707 | | | USD | | | 15,222,000 | | | EUR | | BNP | | | 03/17/2021 | | | | — | | | | (116,021 | ) |
| | 312,029 | | | USD | | | 233,000 | | | GBP | | MSC | | | 03/17/2021 | | | | — | | | | (6,753 | ) |
| | 6,460,060 | | | USD | | | 21,000,000 | | | ILS | | BCLY | | | 03/17/2021 | | | | — | | | | (83,916 | ) |
| | 23,551,785 | | | USD | | | 2,442,850,000 | | | JPY | | JPM | | | 03/15/2021 | | | | — | | | | (127,285 | ) |
| | 2,211,027 | | | USD | | | 44,875,000 | | | MXN | | GSC | | | 06/10/2021 | | | | — | | | | (2,282 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Total foreign currency contracts | | | | | | $ | 8,056 | | | $ | (449,481 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage-Backed Securities | | $ | 450,929,845 | | | $ | — | | | $ | 450,929,845 | | | $ | — | |
Corporate Bonds | | | 845,704,889 | | | | — | | | | 845,704,889 | | | | — | |
Foreign Government Obligations | | | 85,827,761 | | | | — | | | | 85,827,761 | | | | — | |
Municipal Bonds | | | 30,096,295 | | | | — | | | | 30,096,295 | | | | — | |
Senior Floating Rate Interests | | | 93,585,749 | | | | — | | | | 93,585,749 | | | | — | |
U.S. Government Agencies | | | 919,282,877 | | | | — | | | | 919,282,877 | | | | — | |
U.S. Government Securities | | | 478,536,332 | | | | — | | | | 478,536,332 | | | | — | |
Common Stocks | |
Energy | | | 89,240 | | | | — | | | | — | | | | 89,240 | |
Preferred Stocks | | | 2,165,749 | | | | 2,165,749 | | | | — | | | | — | |
Warrants | | | 167 | | | | — | | | | — | | | | 167 | |
Short-Term Investments | | | 25,671,865 | | | | 7,365,381 | | | | 18,306,484 | | | | — | |
Purchased Options | | | 113,916 | | | | — | | | | 113,916 | | | | — | |
Foreign Currency Contracts(2) | | | 8,056 | | | | — | | | | 8,056 | | | | — | |
Futures Contracts(2) | | | 1,113,247 | | | | 1,113,247 | | | | — | | | | — | |
Swaps - Credit Default(2) | | | 3,326,841 | | | | — | | | | 3,326,841 | | | | — | |
Swaps - Interest Rate(2) | | | 185,469 | | | | — | | | | 185,469 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 2,936,638,298 | | | $ | 10,644,377 | | | $ | 2,925,904,514 | | | $ | 89,407 | |
| | | | | | | | | | | | | | | | |
Liabilities | |
Foreign Currency Contracts(2) | | $ | (449,481 | ) | | $ | — | | | $ | (449,481 | ) | | $ | — | |
Futures Contracts(2) | | | (259,175 | ) | | | (259,175 | ) | | | — | | | | — | |
Swaps - Credit Default(2) | | | (5,097,686 | ) | | | — | | | | (5,097,686 | ) | | | — | |
Swaps - Interest Rate(2) | | | (113,015 | ) | | | — | | | | (113,015 | ) | | | — | |
TBA Sale Commitments | | | (59,682,125 | ) | | | — | | | | (59,682,125 | ) | | | — | |
Written Options | | | (423,464 | ) | | | — | | | | (423,464 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | (66,024,946 | ) | | $ | (259,175 | ) | | $ | (65,765,771 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, 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 year ended December 31, 2020 is not presented.
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 30.6% | |
| | | | Asset-Backed - Automobile - 17.1% | |
| $ | 868,986 | | | Ally Auto Receivables Trust 1.93%, 10/17/2022 | | $ | 871,239 | |
| | | | American Credit Acceptance Receivables Trust | |
| | 492,375 | | | 1.89%, 04/13/2023(1) | | | 494,197 | |
| | 8,342 | | | 2.44%, 12/12/2022(1) | | | 8,347 | |
| | | | AmeriCredit Automobile Receivables Trust | |
| | 5,555,000 | | | 0.42%, 03/18/2024 | | | 5,560,881 | |
| | 930,413 | | | 0.60%, 12/18/2023 | | | 932,012 | |
| | 1,445,000 | | | 2.06%, 04/18/2024 | | | 1,467,572 | |
| | 134,677 | | | 2.17%, 01/18/2023 | | | 135,247 | |
| | 2,550,479 | | | 2.97%, 11/20/2023 | | | 2,582,798 | |
| | | | ARI Fleet Lease Trust | |
| | 620,971 | | | 1.77%, 08/15/2028(1) | | | 626,864 | |
| | 1,545,842 | | | 2.28%, 04/15/2026(1) | | | 1,547,152 | |
| | 11,481 | | | 2.55%, 10/15/2026(1) | | | 11,491 | |
| | 116,743 | | | Bank of The West Auto Trust 2.40%, 10/17/2022(1) | | | 117,108 | |
| | 565,000 | | | BMW Floorplan Master Owner Trust 0.48%, 05/15/2023, 1 mo. USD LIBOR + 0.320%(1)(2) | | | 565,443 | |
| | 920,795 | | | BMW Vehicle Owner Trust 0.39%, 02/27/2023 | | | 921,662 | |
| | | | Canadian Pacer Auto Receivables Trust | |
| | 1,161,100 | | | 1.77%, 11/21/2022(1) | | | 1,167,445 | |
| | 143,103 | | | 2.78%, 03/21/2022(1) | | | 143,350 | |
| | | | CarMax Auto Owner Trust | |
| | 1,771,000 | | | 0.49%, 06/15/2023 | | | 1,773,713 | |
| | 853,764 | | | 2.01%, 03/15/2023 | | | 859,268 | |
| | 383,699 | | | 2.21%, 12/15/2022 | | | 385,463 | |
| | 93,597 | | | 2.69%, 07/15/2022 | | | 93,796 | |
| | 4,036,941 | | | 3.05%, 03/15/2024 | | | 4,124,541 | |
| | 143,476 | | | Carvana Auto Receivables Trust 2.20%, 07/15/2022(1) | | | 143,679 | |
| | | | Chesapeake Funding LLC | |
| | 645,697 | | | 0.53%, 08/15/2030, 1 mo. USD LIBOR + 0.370%(1)(2) | | | 645,624 | |
| | 23,922 | | | 0.61%, 05/15/2029, 1 mo. USD LIBOR + 0.450%(1)(2) | | | 23,922 | |
| | 1,211,254 | | | 0.87%, 08/16/2032(1) | | | 1,217,262 | |
| | 100,916 | | | 1.91%, 08/15/2029(1) | | | 101,070 | |
| | 1,694,746 | | | 1.95%, 09/15/2031(1) | | | 1,722,069 | |
| | 339,541 | | | 2.12%, 11/15/2029(1) | | | 341,481 | |
| | 2,365,148 | | | 2.94%, 04/15/2031(1) | | | 2,403,144 | |
| | 311,155 | | | 3.04%, 04/15/2030(1) | | | 314,329 | |
| | 536,406 | | | 3.39%, 01/15/2031(1) | | | 551,899 | |
| | | | CPS Auto Receivables Trust | |
| | 1,124,899 | | | 0.63%, 03/15/2024(1) | | | 1,125,963 | |
| | 528,306 | | | 2.09%, 05/15/2023(1) | | | 530,800 | |
| | 109,641 | | | 2.17%, 12/15/2022(1) | | | 109,953 | |
| | 54,706 | | | 2.55%, 09/15/2022(1) | | | 54,745 | |
| | | | Credit Acceptance Auto Loan Trust | |
| | 3,850,000 | | | 2.38%, 11/15/2028(1) | | | 3,952,433 | |
| | 1,078,265 | | | 3.55%, 08/15/2027(1) | | | 1,089,777 | |
| | | | Drive Auto Receivables Trust | |
| | 508,917 | | | 0.85%, 07/17/2023 | | | 509,960 | |
| | 1,015,000 | | | 2.02%, 11/15/2023 | | | 1,024,038 | |
| | 860,005 | | | 2.16%, 05/15/2023 | | | 862,696 | |
| | | | DT Auto Owner Trust | |
| | 382,581 | | | 1.94%, 09/15/2023(1) | | | 384,399 | |
| | 452,413 | | | 2.17%, 05/15/2023(1) | | | 454,423 | |
| | 129,712 | | | 2.55%, 08/15/2022(1) | | | 129,931 | |
| | 31,886 | | | 2.85%, 09/15/2022(1) | | | 31,917 | |
| | | | Enterprise Fleet Financing LLC | |
| | 1,534,729 | | | 0.24%, 10/20/2021(1) | | | 1,534,770 | |
| | 1,840,672 | | | 1.78%, 12/22/2025(1) | | | 1,870,272 | |
| | 4,484,634 | | | 2.06%, 05/20/2025(1) | | | 4,560,055 | |
| | 1,245,784 | | | 2.29%, 02/20/2025(1) | | | 1,266,531 | |
| | 106,618 | | | 2.87%, 10/20/2023(1) | | | 107,058 | |
| | 778,937 | | | 2.98%, 10/20/2024(1) | | | 792,094 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 30.6% - (continued) | |
| | | | Asset-Backed - Automobile - 17.1% - (continued) | |
| $ | 390,018 | | | 3.14%, 02/20/2024(1) | | $ | 392,714 | |
| | 213,836 | | | 3.38%, 05/20/2024(1) | | | 216,370 | |
| | | | Exeter Automobile Receivables Trust | |
| | 310,057 | | | 2.05%, 06/15/2023(1) | | | 311,283 | |
| | 159,127 | | | 2.18%, 01/17/2023(1) | | | 159,455 | |
| | | | First Investors Auto Owner Trust | |
| | 790,962 | | | 2.21%, 09/16/2024(1) | | | 797,857 | |
| | 6,371 | | | 2.66%, 05/16/2022 | | | 6,376 | |
| | 256,051 | | | 2.89%, 03/15/2024(1) | | | 258,614 | |
| | | | Flagship Credit Auto Trust | |
| | 4,969,861 | | | 0.53%, 04/15/2025(1) | | | 4,973,333 | |
| | 428,153 | | | 0.70%, 04/15/2025(1) | | | 428,587 | |
| | 988,642 | | | 1.90%, 08/15/2024(1) | | | 1,000,171 | |
| | 526,341 | | | 2.17%, 06/17/2024(1) | | | 532,992 | |
| | 962,788 | | | 2.33%, 02/15/2024(1) | | | 974,648 | |
| | 678,509 | | | 2.83%, 10/16/2023(1) | | | 686,660 | |
| | 88,525 | | | 3.07%, 02/15/2023(1) | | | 88,905 | |
| | 382,019 | | | 3.11%, 08/15/2023(1) | | | 386,211 | |
| | 418,195 | | | 3.41%, 05/15/2023(1) | | | 421,654 | |
| | | | Ford Credit Auto Lease Trust | |
| | 3,620,000 | | | 0.50%, 12/15/2022 | | | 3,624,502 | |
| | 749,217 | | | 1.80%, 07/15/2022 | | | 752,661 | |
| | 274,622 | | | 2.28%, 02/15/2022 | | | 275,081 | |
| | 760,000 | | | 2.98%, 06/15/2022 | | | 769,632 | |
| | | | Ford Credit Auto Owner Trust | |
| | 2,635,000 | | | 0.25%, 09/15/2023 | | | 2,635,867 | |
| | 2,736,555 | | | 0.50%, 02/15/2023 | | | 2,739,508 | |
| | 33,359 | | | 2.01%, 03/15/2022 | | | 33,397 | |
| | 75,072 | | | 2.35%, 02/15/2022 | | | 75,132 | |
| | 1,500,000 | | | 2.36%, 03/15/2029(1) | | | 1,551,483 | |
| | 5,059 | | | 2.78%, 02/15/2022 | | | 5,064 | |
| | 2,580,000 | | | GLS Auto Receivables Issuer Trust 0.52%, 02/15/2024(1) | | | 2,580,865 | |
| | | | GM Financial Automobile Leasing Trust | | | | |
| | 677,236 | | | 0.71%, 10/20/2022 | | | 679,400 | |
| | 1,185,000 | | | 2.03%, 06/20/2022 | | | 1,193,884 | |
| | 173,600 | | | 2.09%, 10/20/2021 | | | 173,786 | |
| | 340,252 | | | 2.67%, 03/21/2022 | | | 342,132 | |
| | 329,884 | | | 2.98%, 12/20/2021 | | | 331,299 | |
| | 330,115 | | | GM Financial Consumer Automobile Receivables Trust 1.83%, 01/17/2023 | | | 331,392 | |
| | | | Honda Auto Receivables Owner Trust | | | | |
| | 451,480 | | | 0.74%, 11/15/2022 | | | 452,504 | |
| | 700,392 | | | 1.90%, 04/15/2022 | | | 702,897 | |
| | 708,158 | | | 2.83%, 03/20/2023 | | | 720,201 | |
| | | | Hyundai Auto Lease Securitization Trust | | | | |
| | 793,269 | | | 1.90%, 05/16/2022(1) | | | 797,048 | |
| | 488,841 | | | 2.08%, 12/15/2021(1) | | | 489,842 | |
| | | | Hyundai Auto Receivables Trust | | | | |
| | 1,970,000 | | | 0.26%, 09/15/2023 | | | 1,970,641 | |
| | 3,348,000 | | | 0.38%, 03/15/2023 | | | 3,351,080 | |
| | 314,346 | | | Mercedes-Benz Auto Lease Trust 1.82%, 03/15/2022 | | | 315,371 | |
| | 1,550,000 | | | Mercedes-Benz Auto Receivables Trust 0.46%, 03/15/2023 | | | 1,552,160 | |
| | 973,262 | | | Nissan Auto Lease Trust 1.80%, 05/16/2022 | | | 977,807 | |
| | | | Nissan Auto Receivables Owner Trust | |
| | 2,706,603 | | | 0.47%, 10/17/2022 | | | 2,709,226 | |
| | 1,125,000 | | | 1.93%, 07/15/2024 | | | 1,147,945 | |
| | 833,327 | | | 1.97%, 09/15/2022 | | | 837,469 | |
| | 1,040,000 | | | PFS Financing Corp. 1.21%, 06/15/2024(1) | | | 1,050,569 | |
| | | | Prestige Auto Receivables Trust | |
| | 4,135,000 | | | 0.52%, 02/15/2024(1) | | | 4,136,498 | |
| | 65,034 | | | 2.44%, 07/15/2022(1) | | | 65,081 | |
| | | | Santander Drive Auto Receivables Trust | |
| | 4,920,000 | | | 0.42%, 09/15/2023 | | | 4,924,781 | |
| | 1,189,809 | | | 0.62%, 05/15/2023 | | | 1,190,783 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 30.6% - (continued) | |
| | | | Asset-Backed - Automobile - 17.1% - (continued) | |
| | | | Santander Retail Auto Lease Trust | |
| $ | 2,790,000 | | | 0.42%, 11/20/2023(1) | | $ | 2,794,150 | |
| | 139,771 | | | 2.72%, 01/20/2022(1) | | | 140,043 | |
| | 1,534,561 | | | Securitized Term Auto Receivables Trust 2.99%, 02/27/2023(1) | | | 1,553,336 | |
| | | | Toyota Auto Receivables Owner Trust | | | | |
| | 4,010,000 | | | 0.23%, 05/15/2023 | | | 4,010,179 | |
| | 2,465,000 | | | 0.36%, 02/15/2023 | | | 2,466,470 | |
| | 359,800 | | | United Auto Credit Securitization Trust 0.85%, 05/10/2022(1) | | | 359,998 | |
| | | | Volkswagen Auto Lease Trust | | | | |
| | 1,430,000 | | | 1.99%, 11/21/2022 | | | 1,451,266 | |
| | 909,785 | | | 2.00%, 03/21/2022 | | | 914,221 | |
| | 778,297 | | | Volkswagen Auto Loan Enhanced Trust 0.93%, 12/20/2022 | | | 780,264 | |
| | | | Westlake Automobile Receivables Trust | | | | |
| | 2,949,945 | | | 0.93%, 02/15/2024(1) | | | 2,960,040 | |
| | 691,515 | | | 2.15%, 02/15/2023(1) | | | 695,680 | |
| | 11,660 | | | 3.06%, 05/16/2022(1) | | | 11,673 | |
| | | | Wheels SPV 2 LLC | |
| | 795,000 | | | 0.51%, 08/20/2029(1) | | | 795,438 | |
| | 187,097 | | | 3.06%, 04/20/2027(1) | | | 187,768 | |
| | | | World Omni Auto Receivables Trust | | | | |
| | 1,520,000 | | | 0.55%, 07/17/2023 | | | 1,522,809 | |
| | 54,329 | | | 2.63%, 06/15/2022 | | | 54,378 | |
| | 1,043,165 | | | World Omni Select Auto Trust 2.06%, 08/15/2023 | | | 1,047,703 | |
| | | | | | | | |
| | | | | | | 131,114,117 | |
| | | | | | | | |
| | | | Asset-Backed - Credit Card - 0.3% | |
| | 749,010 | | | HPEFS Equipment Trust 1.73%, 02/20/2030(1) | | | 754,092 | |
| | 1,355,000 | | | Trillium Credit Card Trust 0.52%, 12/26/2024, 1 mo. USD LIBOR + 0.370%(1)(2) | | | 1,358,653 | |
| | | | | | | | |
| | | | | | | 2,112,745 | |
| | | | | | | | |
| | | | Asset-Backed - Finance & Insurance - 8.9% | |
| | 2,010,000 | | | Ally Auto Receivables Trust 1.84%, 06/17/2024 | | | 2,040,119 | |
| | 1,500,000 | | | Ally Master Owner Trust 3.29%, 05/15/2023 | | | 1,516,608 | |
| | | | American Credit Acceptance Receivables Trust | |
| | 3,095,553 | | | 0.53%, 03/13/2024(1) | | | 3,098,131 | |
| | 947,018 | | | 0.62%, 10/13/2023(1) | | | 948,119 | |
| | 2,166,046 | | | Angel Oak Mortgage Trust 2.53%, 01/26/2065(1)(3) | | | 2,222,729 | |
| | 765,758 | | | BWAY Mortgage Trust 2.81%, 03/10/2033(1) | | | 795,605 | |
| | | | CarMax Auto Owner Trust | |
| | 1,405,253 | | | 1.75%, 01/17/2023 | | | 1,412,250 | |
| | 1,500,000 | | | 2.33%, 05/15/2023 | | | 1,521,900 | |
| | | | CNH Equipment Trust | |
| | 773,420 | | | 1.08%, 07/17/2023 | | | 776,058 | |
| | 1,482,236 | | | 1.99%, 03/15/2023 | | | 1,490,335 | |
| | 90,648 | | | 2.55%, 09/15/2022 | | | 90,789 | |
| | 3,455,000 | | | Credit Acceptance Auto Loan Trust 2.01%, 02/15/2029(1) | | | 3,532,425 | |
| | | | DLL LLC | |
| | 1,007,141 | | | 2.13%, 01/20/2022(1) | | | 1,010,728 | |
| | 1,044,085 | | | 2.89%, 04/20/2023(1) | | | 1,057,819 | |
| | 231,555 | | | Ellington Financial Mortgage Trust 2.74%, 11/25/2059(1)(3) | | | 237,225 | |
| | 1,150,000 | | | Evergreen Credit Card Trust 1.90%, 09/16/2024(1) | | | 1,181,365 | |
| | 853,430 | | | Finance of America HECM Buyout 2.01%, 02/25/2030(1)(3) | | | 859,049 | |
| | 464,000 | | | GM Financial Automobile Leasing Trust 0.45%, 08/21/2023 | | | 465,154 | |
| | 2,215,000 | | | GM Financial Consumer Automobile Receivables Trust 0.26%, 11/16/2023 | | | 2,215,717 | |
| �� | 742,000 | | | GMF Floorplan Owner Revolving Trust 2.70%, 04/15/2024(1) | | | 764,059 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 30.6% - (continued) | |
| | | | Asset-Backed - Finance & Insurance - 8.9% - (continued) | |
| $ | 1,577,436 | | | GreatAmerica Leasing Receivables Funding LLC 1.76%, 06/15/2022(1) | | $ | 1,587,879 | |
| | | | HPEFS Equipment Trust | |
| | 4,350,000 | | | 0.65%, 07/22/2030(1) | | | 4,358,546 | |
| | 306,073 | | | 2.19%, 09/20/2029(1) | | | 307,309 | |
| | 628,000 | | | 2.21%, 09/20/2029(1) | | | 634,790 | |
| | 2,527,460 | | | Hyundai Auto Receivables Trust 1.51%, 04/17/2023 | | | 2,544,484 | |
| | 1,525,000 | | | John Deere Owner Trust 0.41%, 03/15/2023 | | | 1,526,306 | |
| | | | Kubota Credit Owner Trust | | | | |
| | 850,000 | | | 0.41%, 06/15/2023(1) | | | 850,940 | |
| | 936,639 | | | 2.49%, 06/15/2022(1) | | | 942,432 | |
| | 264,105 | | | Marlette Funding Trust 2.24%, 03/15/2030(1) | | | 265,697 | |
| | 1,320,267 | | | MFA Trust 1.01%, 01/26/2065(1)(3) | | | 1,322,219 | |
| | | | MMAF Equipment Finance LLC | | | | |
| | 506,514 | | | 2.07%, 10/12/2022(1) | | | 510,957 | |
| | 278,879 | | | 2.84%, 01/10/2022(1) | | | 279,562 | |
| | | | New York City Tax Lien | |
| | 766,718 | | | 2.19%, 11/10/2032(1) | | | 776,646 | |
| | 477,053 | | | 3.22%, 11/10/2031(1) | | | 480,773 | |
| | 504,858 | | | Residential Mortgage Loan Trust 2.38%, 02/25/2024(1)(3) | | | 514,500 | |
| | | | SoFi Consumer Loan Program Trust | | | | |
| | 713,850 | | | 2.02%, 01/25/2029(1) | | | 721,323 | |
| | 883,884 | | | 2.45%, 08/25/2028(1) | | | 893,085 | |
| | 697,978 | | | 2.90%, 05/25/2028(1) | | | 705,317 | |
| | 556,261 | | | Tesla Auto Lease Trust 0.55%, 05/22/2023(1) | | | 557,263 | |
| | 1,125,560 | | | Toyota Auto Receivables Owner Trust 1.38%, 12/15/2022 | | | 1,131,215 | |
| | | | Verizon Owner Trust | | | | |
| | 4,000,000 | | | 0.41%, 04/21/2025 | | | 4,007,383 | |
| | 2,359,000 | | | 2.33%, 12/20/2023 | | | 2,405,693 | |
| | 362,000 | | | 2.93%, 09/20/2023 | | | 369,022 | |
| | 827,661 | | | 3.23%, 04/20/2023 | | | 838,648 | |
| | 1,127,041 | | | Verus Securitization Trust 2.69%, 11/25/2059(1)(3) | | | 1,157,553 | |
| | 5,330,000 | | | Volkswagen Auto Lease Trust 0.27%, 04/20/2023 | | | 5,332,030 | |
| | | | Volvo Financial Equipment LLC | |
| | 555,383 | | | 2.02%, 08/15/2022(1) | | | 558,608 | |
| | 835,000 | | | 2.04%, 11/15/2023(1) | | | 851,087 | |
| | 29 | | | 2.90%, 11/15/2021(1) | | | 29 | |
| | 3,800,000 | | | Westlake Automobile Receivables Trust 0.56%, 05/15/2024(1) | | | 3,808,356 | |
| | 1,055,000 | | | World Omni Automobile Lease Securitization Trust 0.32%, 09/15/2023 | | | 1,055,441 | |
| | | | | | | | |
| | | | | | | 68,531,277 | |
| | | | | | | | |
| | | | Commercial Mortgage-Backed Securities - 0.2% | |
| | 800,000 | | | GS Mortgage Securities Corp. Trust 0.86%, 07/15/2032, 1 mo. USD LIBOR + 0.700%(1)(2) | | | 799,758 | |
| | 785,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust 3.79%, 08/15/2045 | | | 813,271 | |
| | | | | | | | |
| | | | | | | 1,613,029 | |
| | | | | | | | |
| | | | Diversified Financial Services - 0.9% | |
| | 2,620,000 | | | Nissan Auto Lease Trust 0.34%, 12/15/2022 | | | 2,622,899 | |
| | 1,925,000 | | | Santander Consumer Auto Receivables Trust 0.38%, 02/15/2023(1) | | | 1,925,591 | |
| | 1,200,000 | | | Santander Drive Auto Receivables Trust 0.46%, 09/15/2023 | | | 1,200,720 | |
| | 1,540,000 | | | SCF Equipment Leasing 0.68%, 10/20/2025(1) | | | 1,541,376 | |
| | | | | | | | |
| | | | | | | 7,290,586 | |
| | | | | | | | |
| | | | Other Asset-Backed Securities - 1.7% | |
| | | | CarMax Auto Owner Trust | |
| | 4,080,000 | | | 0.31%, 01/16/2024 | | | 4,081,971 | |
| | 1,005,000 | | | 2.18%, 08/15/2024 | | | 1,030,015 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| ASSET & COMMERCIAL MORTGAGE-BACKED SECURITIES - 30.6% - (continued) | |
| | | | Other Asset-Backed Securities - 1.7% - (continued) | |
| $ | 3,275,000 | | | Carvana Auto Receivables Trust 0.28%, 11/08/2023 | | $ | 3,275,595 | |
| | 1,321,936 | | | Hertz Fleet Lease Funding L.P. 2.70%, 01/10/2033(1) | | | 1,341,599 | |
| | 227,489 | | | Nationstar HECM Loan Trust 2.65%, 06/25/2029(1)(3) | | | 227,840 | |
| | | | Towd Point Mortgage Trust | |
| | 780,205 | | | 0.75%, 02/25/2057, 1 mo. USD LIBOR + 0.600%(1)(2) | | | 777,705 | |
| | 1,256,428 | | | 2.75%, 06/25/2057(1)(3) | | | 1,301,942 | |
| | 1,195,215 | | | Transportation Finance Equipment Trust 1.90%, 01/24/2022(1) | | | 1,199,844 | |
| | | | | | | | |
| | | | | | | 13,236,511 | |
| | | | | | | | |
| | | | Whole Loan Collateral CMO - 1.5% | |
| | 915,002 | | | Angel Oak Mortgage Trust LLC 2.99%, 07/26/2049(1)(3) | | | 923,605 | |
| | | | Bunker Hill Loan Depositary Trust | |
| | 1,193,117 | | | 2.72%, 11/25/2059(1)(4) | | | 1,223,613 | |
| | 432,596 | | | 3.61%, 10/26/2048(1)(4) | | | 437,217 | |
| | | | COLT Mortgage Loan Trust | | | | |
| | 2,117,706 | | | 1.33%, 10/26/2065(1)(3) | | | 2,125,608 | |
| | 763,184 | | | 1.51%, 04/27/2065(1)(3) | | | 769,218 | |
| | 847,113 | | | New Residential Mortgage Loan Trust 4.00%, 08/27/2057(1)(3) | | | 915,001 | |
| | 82,772 | | | OBX Trust 0.80%, 06/25/2057, 1 mo. USD LIBOR + 0.650%(1)(2) | | | 82,560 | |
| | 637,661 | | | RMF Buyout Issuance Trust 2.16%, 02/25/2030(1)(3) | | | 638,988 | |
| | 304,679 | | | Sequoia Mortgage Trust 3.50%, 02/25/2050(1)(3) | | | 307,494 | |
| | 883,236 | | | Starwood Mortgage Residential Trust 2.28%, 02/25/2050(1)(3) | | | 902,678 | |
| | | | Verus Securitization Trust | |
| | 1,129,952 | | | 2.64%, 11/25/2059(1)(4) | | | 1,156,150 | |
| | 692,987 | | | 2.78%, 07/25/2059(1)(4) | | | 708,518 | |
| | 620,842 | | | 3.21%, 05/25/2059(1)(3) | | | 625,636 | |
| | 359,122 | | | 3.68%, 06/01/2058(1)(3) | | | 359,557 | |
| | | | | | | | |
| | | | | | | 11,175,843 | |
| | | | | | | | |
| | |
| | | | Total Asset & Commercial Mortgage-Backed Securities
(cost $234,155,462) | | $ | 235,074,108 | |
| | | | | | | | |
| CORPORATE BONDS - 28.4% | |
| | | | Agriculture - 0.1% | |
| | 675,000 | | | Cargill, Inc. 1.38%, 07/23/2023(1) | | $ | 691,852 | |
| | | | | | | | |
| | | | Apparel - 0.2% | |
| | 1,550,000 | | | VF Corp. 2.05%, 04/23/2022 | | | 1,583,294 | |
| | | | | | | | |
| | | | Auto Manufacturers - 2.9% | |
| | | | American Honda Finance Corp. | |
| | 2,000,000 | | | 0.33%, 01/21/2022, 3 mo. USD LIBOR + 0.120%(2) | | | 2,001,044 | |
| | 2,050,000 | | | 0.40%, 10/21/2022 | | | 2,052,896 | |
| | 2,250,000 | | | Daimler Finance North America LLC 2.20%, 10/30/2021(1) | | | 2,281,387 | |
| | | | General Motors Financial Co., Inc. | | | | |
| | 1,000,000 | | | 1.08%, 04/09/2021, 3 mo. USD LIBOR + 0.850%(2) | | | 1,000,609 | |
| | 2,000,000 | | | 3.45%, 04/10/2022 | | | 2,056,653 | |
| | 1,000,000 | | | 3.55%, 07/08/2022 | | | 1,042,965 | |
| | 1,250,000 | | | Hyundai Capital America 1.17%, 07/08/2021, 3 mo. USD LIBOR + 0.940%(1)(2) | | | 1,251,659 | |
| | 485,000 | | | PACCAR Financial Corp. 0.80%, 06/08/2023 | | | 490,195 | |
| | | | Toyota Motor Credit Corp. | | | | |
| | 2,352,000 | | | 0.35%, 08/13/2021, 3 mo. USD LIBOR + 0.125%(2) | | | 2,353,069 | |
| | 1,650,000 | | | 0.35%, 10/14/2022 | | | 1,654,473 | |
| | 1,525,000 | | | 1.15%, 05/26/2022 | | | 1,544,999 | |
| | | | Volkswagen Group of America Finance LLC | |
| | 1,600,000 | | | 0.75%, 11/23/2022(1) | | | 1,604,791 | |
| | 750,000 | | | 3.13%, 05/12/2023(1) | | | 792,142 | |
| | 2,275,000 | | | 4.00%, 11/12/2021(1) | | | 2,344,450 | |
| | | | | | | | |
| | | | | | | 22,471,332 | |
| | | | | | | | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.4% - (continued) | |
| | | | Biotechnology - 0.2% | |
| $ | 1,875,000 | | | Gilead Sciences, Inc. 0.38%, 09/17/2021, 3 mo. USD LIBOR + 0.150%(2) | | $ | 1,875,938 | |
| | | | | | | | |
| | | | Chemicals - 0.1% | |
| | 430,000 | | | Nutrition & Biosciences, Inc. 0.70%, 09/15/2022(1) | | | 431,290 | |
| | | | | | | | |
| | | | Commercial Banks - 12.6% | |
| | | | ABN Amro Bank N.V. | |
| | 2,400,000 | | | 0.80%, 08/27/2021, 3 mo. USD LIBOR + 0.570%(1)(2) | | | 2,407,747 | |
| | 2,450,000 | | | 3.40%, 08/27/2021(1) | | | 2,498,917 | |
| | 1,250,000 | | | Bank of America Corp. 0.81%, 10/24/2024, (0.81% fixed rate until 10/24/2023; 3 mo. USD SOFR + 0.740% thereafter)(5) | | | 1,261,680 | |
| | 640,000 | | | Bank of New York Mellon Corp. 1.95%, 08/23/2022 | | | 658,300 | |
| | 675,000 | | | Barclays Bank plc 1.70%, 05/12/2022 | | | 686,937 | |
| | 3,000,000 | | | BNP Paribas S.A. 0.60%, 08/07/2021, 3 mo. USD LIBOR + 0.390%(1)(2) | | | 3,005,792 | |
| | 3,518,000 | | | BPCE S.A. 3.00%, 05/22/2022(1) | | | 3,640,630 | |
| | | | Canadian Imperial Bank of Commerce | |
| | 1,750,000 | | | 0.53%, 02/02/2021, 3 mo. USD LIBOR + 0.315%(2) | | | 1,750,501 | |
| | 900,000 | | | 0.89%, 03/17/2023, 3 mo. USD SOFR + 0.800%(2) | | | 908,505 | |
| | 1,500,000 | | | Capital One Financial Corp. 1.18%, 03/09/2022, 3 mo. USD LIBOR + 0.950%(2) | | | 1,511,709 | |
| | 350,000 | | | Capital One NA 2.15%, 09/06/2022 | | | 359,714 | |
| | 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) | | | 1,514,256 | |
| | 2,300,000 | | | Citigroup, Inc. 2.70%, 10/27/2022 | | | 2,392,048 | |
| | | | Credit Suisse AG | |
| | 750,000 | | | 0.54%, 02/04/2022, 3 mo. USD SOFR + 0.450%(2) | | | 751,317 | |
| | 1,945,000 | | | 2.10%, 11/12/2021 | | | 1,975,032 | |
| | 1,550,000 | | | Credit Suisse Group AG 3.57%, 01/09/2023(1) | | | 1,596,977 | |
| | 3,500,000 | | | Credit Suisse Group Funding Guernsey Ltd. 3.45%, 04/16/2021 | | | 3,532,076 | |
| | | | Danske Bank A/S | |
| | 1,142,000 | | | 2.00%, 09/08/2021(1) | | | 1,154,827 | |
| | 1,300,000 | | | 2.80%, 03/10/2021(1) | | | 1,305,592 | |
| | 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) | | | 1,269,771 | |
| | 1,285,000 | | | 5.00%, 01/12/2022(1) | | | 1,341,486 | |
| | 3,000,000 | | | Deutsche Bank AG 4.25%, 02/04/2021 | | | 3,008,102 | |
| | 705,000 | | | Fifth Third Bank NA 1.80%, 01/30/2023 | | | 725,045 | |
| | | | Goldman Sachs Group, Inc. | |
| | 1,765,000 | | | 0.63%, 11/17/2023, (0.63% fixed rate until 11/17/2022; 3 mo. USD SOFR + 0.538% thereafter)(5) | | | 1,772,142 | |
| | 4,801,000 | | | 1.58%, 04/23/2021, 3 mo. USD LIBOR + 1.360%(2) | | | 4,814,670 | |
| | 525,000 | | | Huntington National Bank 1.80%, 02/03/2023 | | | 539,417 | |
| | | | KeyBank NA | |
| | 2,000,000 | | | 0.43%, 01/03/2024, 3 mo. USD SOFR + 0.340%(2) | | | 2,000,620 | |
| | 1,350,000 | | | 1.25%, 03/10/2023 | | | 1,376,444 | |
| | 1,150,000 | | | Macquarie Bank Ltd. 0.44%, 12/16/2022(1) | | | 1,150,494 | |
| | 1,250,000 | | | Manufacturers & Traders Trust Co. 0.49%, 01/25/2021, 3 mo. USD LIBOR + 0.270%(2) | | | 1,250,199 | |
| | 1,724,000 | | | Mitsubishi UFJ Financial Group, Inc. 3.54%, 07/26/2021 | | | 1,755,263 | |
| | | | Mizuho Financial Group, Inc. | |
| | 1,100,000 | | | 0.84%, 05/25/2024, 3 mo. USD LIBOR + 0.630%(2) | | | 1,101,912 | |
| | 2,800,000 | | | 1.70%, 04/12/2021, 3 mo. USD LIBOR + 1.480%(1)(2) | | | 2,810,626 | |
| | | | Morgan Stanley | |
| | 1,800,000 | | | 0.79%, 01/20/2023, 3 mo. USD SOFR + 0.700%(2) | | | 1,805,778 | |
| | 705,000 | | | 1.61%, 04/21/2021, 3 mo. USD LIBOR + 1.400%(2) | | | 707,822 | |
| | 2,300,000 | | | 2.63%, 11/17/2021 | | | 2,345,398 | |
| | 2,765,000 | | | 2.75%, 05/19/2022 | | | 2,855,481 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.4% - (continued) | |
| | | | Commercial Banks - 12.6% - (continued) | |
| $ | 1,025,000 | | | 4.88%, 11/01/2022 | | $ | 1,104,432 | |
| | 675,000 | | | National Australia Bank Ltd. 1.88%, 12/13/2022 | | | 696,469 | |
| | 875,000 | | | National Bank of Canada 0.90%, 08/15/2023, (0.90% fixed rate until 08/15/2022; 12 mo. USD CMT + 0.770% thereafter)(5) | | | 880,257 | |
| | | | Nordea Bank Abp | |
| | 875,000 | | | 1.00%, 06/09/2023(1) | | | 888,792 | |
| | 1,925,000 | | | 4.88%, 05/13/2021(1) | | | 1,954,614 | |
| | 875,000 | | | PNC Bank NA 0.53%, 02/24/2023, 3 mo. USD LIBOR + 0.325%(2) | | | 876,585 | |
| | 1,500,000 | | | Regions Bank 0.62%, 04/01/2021, 3 mo. USD LIBOR + 0.380%(2) | | | 1,499,607 | |
| | 1,500,000 | | | Santander UK plc 0.85%, 06/01/2021, 3 mo. USD LIBOR + 0.620%(2) | | | 1,503,432 | |
| | 2,255,000 | | | Societe Generale S.A. 2.50%, 04/08/2021(1) | | | 2,268,081 | |
| | 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) | | | 1,379,316 | |
| | 1,250,000 | | | Svenska Handelsbanken AB 0.68%, 05/24/2021, 3 mo. USD LIBOR + 0.470%(2) | | | 1,252,224 | |
| | 1,566,000 | | | Synchrony Bank 3.00%, 06/15/2022 | | | 1,617,099 | |
| | | | Toronto-Dominion Bank | |
| | 2,000,000 | | | 0.50%, 03/17/2021, 3 mo. USD LIBOR + 0.270%(2) | | | 2,001,120 | |
| | 750,000 | | | 0.54%, 09/28/2023, 3 mo. USD SOFR + 0.450%(2) | | | 752,062 | |
| | 675,000 | | | 0.57%, 01/27/2023, 3 mo. USD SOFR + 0.480%(2) | | | 677,528 | |
| | | | UBS Group AG | |
| | 450,000 | | | 2.00%, 04/14/2021, 3 mo. USD LIBOR + 1.780%(1)(2) | | | 452,086 | |
| | 3,425,000 | | | 2.65%, 02/01/2022(1) | | | 3,512,072 | |
| | 2,175,000 | | | 3.00%, 04/15/2021(1) | | | 2,191,794 | |
| | 4,500,000 | | | Wells Fargo & Co. 2.63%, 07/22/2022 | | | 4,658,034 | |
| | 1,025,000 | | | Wells Fargo Bank NA 2.60%, 01/15/2021 | | | 1,025,665 | |
| | | | | | | | |
| | | | | | | 96,734,496 | |
| | | | | | | | |
| | | | Commercial Services - 0.1% | |
| | 915,000 | | | Equifax, Inc. 1.09%, 08/15/2021, 3 mo. USD LIBOR + 0.870%(2) | | | 917,813 | |
| | | | | | | | |
| | | | Diversified Financial Services - 3.9% | |
| | | | AIG Global Funding | |
| | 2,950,000 | | | 0.71%, 06/25/2021, 3 mo. USD LIBOR + 0.460%(1)(2) | | | 2,955,775 | |
| | 785,000 | | | 0.80%, 07/07/2023(1) | | | 792,737 | |
| | | | American Express Co. | |
| | 1,000,000 | | | 0.75%, 05/17/2021, 3 mo. USD LIBOR + 0.525%(2) | | | 1,001,500 | |
| | 1,700,000 | | | 0.83%, 11/05/2021, 3 mo. USD LIBOR + 0.600%(2) | | | 1,706,972 | |
| | 1,511,518 | | | DT Auto Owner Trust 0.54%, 04/15/2024(1) | | | 1,514,255 | |
| | 1,770,000 | | | Exeter Automobile Receivables Trust 0.46%, 10/17/2022 | | | 1,770,517 | |
| | 1,455,000 | | | GM Financial Automobile Leasing Trust 0.35%, 11/21/2022 | | | 1,456,117 | |
| | 2,159,226 | | | GM Financial Consumer Automobile Receivables Trust 0.35%, 07/17/2023 | | | 2,160,477 | |
| | | | Honda Auto Receivables Owner Trust | |
| | 2,385,000 | | | 0.27%, 02/21/2023 | | | 2,385,744 | |
| | 1,935,000 | | | 1.78%, 08/15/2023 | | | 1,966,585 | |
| | 1,610,000 | | | Hyundai Auto Lease Securitization Trust 0.36%, 01/17/2023(1) | | | 1,611,653 | |
| | 1,575,000 | | | Intercontinental Exchange, Inc. 0.87%, 06/15/2023, 3 mo. USD LIBOR + 0.650%(2) | | | 1,579,116 | |
| | 654,950 | | | Marlette Funding Trust 1.02%, 09/16/2030(1) | | | 656,052 | |
| | 985,000 | | | Mercedes-Benz Auto Lease Trust 0.31%, 02/15/2023 | | | 985,624 | |
| | 585,000 | | | MMAF Equipment Finance LLC 0.38%, 08/14/2023(1) | | | 585,358 | |
| | 805,000 | | | Nasdaq, Inc. 0.45%, 12/21/2022 | | | 805,942 | |
| | 945,000 | | | USAA Capital Corp. 2.63%, 06/01/2021(1) | | | 953,908 | |
| | 655,000 | | | Volvo Financial Equipment LLC 0.37%, 04/17/2023(1) | | | 655,439 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.4% - (continued) | |
| | | | Diversified Financial Services - 3.9% - (continued) | |
| $ | 2,595,000 | | | World Omni Auto Receivables Trust 0.35%, 12/15/2023 | | $ | 2,597,435 | |
| | 1,640,000 | | | World Omni Select Auto Trust 0.47%, 06/17/2024 | | | 1,642,581 | |
| | | | | | | | |
| | | | | | | 29,783,787 | |
| | | | | | | | |
| | | | Electric - 0.9% | |
| | 445,000 | | | Consumers Energy Co. 0.35%, 06/01/2023 | | | 445,598 | |
| | 2,400,000 | | | DTE Energy Co. 0.55%, 11/01/2022 | | | 2,408,123 | |
| | 1,070,000 | | | National Rural Utilities Cooperative Finance Corp. 1.75%, 01/21/2022 | | | 1,087,440 | |
| | 990,000 | | | NextEra Energy Capital Holdings, Inc. 2.40%, 09/01/2021 | | | 1,003,612 | |
| | 2,070,000 | | | Southern California Edison Co. 0.50%, 12/03/2021, 3 mo. USD LIBOR + 0.270%(2) | | | 2,070,877 | |
| | | | | | | | |
| | | | | | | 7,015,650 | |
| | | | | | | | |
| | | | Electronics - 0.3% | |
| | | | Honeywell International, Inc. | |
| | 1,000,000 | | | 0.48%, 08/19/2022 | | | 1,001,600 | |
| | 1,000,000 | | | 2.15%, 08/08/2022 | | | 1,026,547 | |
| | 295,000 | | | Roper Technologies, Inc. 0.45%, 08/15/2022 | | | 295,478 | |
| | | | | | | | |
| | | | | | | 2,323,625 | |
| | | | | | | | |
| | | | Food - 0.3% | |
| | 1,750,000 | | | Mondelez International Holdings Netherlands B.V. 2.13%, 09/19/2022(1) | | | 1,800,133 | |
| | 750,000 | | | Mondelez International, Inc. 0.63%, 07/01/2022 | | | 753,257 | |
| | | | | | | | |
| | | | | | | 2,553,390 | |
| | | | | | | | |
| | | | Healthcare - Products - 0.2% | |
| | 1,215,000 | | | Stryker Corp. 0.60%, 12/01/2023 | | | 1,216,920 | |
| | | | | | | | |
| | | | Insurance - 1.3% | |
| | 440,000 | | | Allstate Corp. 0.68%, 03/29/2021, 3 mo. USD LIBOR + 0.430%(2) | | | 440,385 | |
| | 750,000 | | | Fifth Third Bancorp 1.63%, 05/05/2023 | | | 773,566 | |
| | | | MassMutual Global Funding II | |
| | 848,000 | | | 0.85%, 06/09/2023(1) | | | 858,363 | |
| | 950,000 | | | 2.25%, 07/01/2022(1) | | | 976,837 | |
| | | | Metropolitan Life Global Funding I | |
| | 795,000 | | | 2.40%, 01/08/2021(1) | | | 795,162 | |
| | 2,500,000 | | | 3.00%, 01/10/2023(1) | | | 2,635,578 | |
| | | | New York Life Global Funding | |
| | 875,000 | | | 1.10%, 05/05/2023(1) | | | 890,256 | |
| | 325,000 | | | 2.95%, 01/28/2021(1) | | | 325,564 | |
| | 650,000 | | | Pacific Life Global Funding II 0.50%, 09/23/2023(1) | | | 651,727 | |
| | | | Protective Life Global Funding | |
| | 1,000,000 | | | 0.77%, 06/28/2021, 3 mo. USD LIBOR + 0.520%(1)(2) | | | 1,002,395 | |
| | 420,000 | | | 1.08%, 06/09/2023(1) | | | 427,272 | |
| | | | | | | | |
| | | | | | | 9,777,105 | |
| | | | | | | | |
| | | | IT Services - 0.4% | |
| | 875,000 | | | Apple, Inc. 0.75%, 05/11/2023 | | | 885,438 | |
| | | | Hewlett Packard Enterprise Co. | |
| | 1,250,000 | | | 0.90%, 03/12/2021, 3 mo. USD LIBOR + 0.680%(2) | | | 1,251,108 | |
| | 1,000,000 | | | 0.96%, 10/05/2021, 3 mo. USD LIBOR + 0.720%(2) | | | 1,000,144 | |
| | | | | | | | |
| | | | | | | 3,136,690 | |
| | | | | | | | |
| | | | Machinery - Construction & Mining - 0.5% | |
| | 4,173,000 | | | Caterpillar Financial Services Corp. 0.41%, 11/12/2021, 3 mo. USD LIBOR + 0.200%(2) | | | 4,178,773 | |
| | | | | | | | |
| | | | Machinery - Diversified - 0.1% | |
| | 1,060,000 | | | Otis Worldwide Corp. 0.69%, 04/05/2023, 3 mo. USD LIBOR + 0.450%(2) | | | 1,060,251 | |
| | | | | | | | |
| | | | Media - 0.5% | |
| | 3,850,000 | | | NBCUniversal Enterprise, Inc. 0.64%, 04/01/2021, 3 mo. USD LIBOR + 0.400%(1)(2) | | | 3,853,311 | |
| | | | | | | | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
| CORPORATE BONDS - 28.4% - (continued) | |
| | | | Oil & Gas - 0.4% | |
| $ | 1,125,000 | | | Chevron USA, Inc. 0.33%, 08/12/2022 | | $ | 1,127,078 | |
| | 1,675,000 | | | Shell International Finance B.V. 2.25%, 01/06/2023 | | | 1,739,695 | |
| | | | | | | | |
| | | | | | | 2,866,773 | |
| | | | | | | | |
| | | | Pharmaceuticals - 1.0% | |
| | 2,200,000 | | | AbbVie, Inc. 3.45%, 03/15/2022 | | | 2,268,866 | |
| | 1,500,000 | | | Bayer U.S. Finance LLC 0.88%, 06/25/2021, 3 mo. USD LIBOR + 0.630%(1)(2) | | | 1,503,046 | |
| | | | Bristol-Myers Squibb Co. | |
| | 1,700,000 | | | 2.55%, 05/14/2021 | | | 1,714,230 | |
| | 1,375,000 | | | 3.25%, 02/20/2023 | | | 1,446,487 | |
| | 700,000 | | | CVS Health Corp. 0.95%, 03/09/2021, 3 mo. USD LIBOR + 0.720%(2) | | | 700,811 | |
| | | | | | | | |
| | | | | | | 7,633,440 | |
| | | | | | | | |
| | | | Pipelines - 0.4% | |
| | | | Kinder Morgan Energy Partners L.P. | |
| | 2,700,000 | | | 3.50%, 03/01/2021 | | | 2,700,000 | |
| | 390,000 | | | 5.00%, 10/01/2021 | | | 398,427 | |
| | | | | | | | |
| | | | | | | 3,098,427 | |
| | | | | | | | |
| | | | REITS - 0.1% | |
| | 590,000 | | | American Tower Corp. 2.25%, 01/15/2022 | | | 601,328 | |
| | | | | | | | |
| | | | Retail - 0.7% | |
| | 4,980,000 | | | Alimentation Couche-Tard, Inc. 2.70%, 07/26/2022(1) | | | 5,147,249 | |
| | | | | | | | |
| | | | Semiconductors - 1.0% | |
| | | | Broadcom, Inc. | |
| | 1,750,000 | | | 3.13%, 04/15/2021 | | | 1,760,021 | |
| | 2,000,000 | | | 3.13%, 10/15/2022 | | | 2,093,148 | |
| | 2,336,000 | | | Microchip Technology, Inc. 3.92%, 06/01/2021 | | | 2,369,169 | |
| | 1,138,000 | | | NXP B.V. / NXP Funding LLC 3.88%, 09/01/2022(1) | | | 1,199,391 | |
| | | | | | | | |
| | | | | | | 7,421,729 | |
| | | | | | | | |
| | | | Trucking & Leasing - 0.2% | |
| | 1,375,000 | | | Aviation Capital Group LLC 0.88%, 07/30/2021, 3 mo. USD LIBOR + 0.670%(1)(2) | | | 1,362,126 | |
| | | | | | | | |
| | |
| | | | Total Corporate Bonds
(cost $217,007,551) | | $ | 217,736,589 | |
| | | | | | | | |
|
| MUNICIPAL BONDS - 0.4% | |
| | | | School District - 0.1% | |
| | 990,000 | | | Los Angeles, CA, Unified School Dist, GO 1.35%, 01/01/2021 | | $ | 990,000 | |
| | | | | | | | |
| | | | Tobacco - 0.3% | |
| | 2,035,000 | | | Buckeye, OH, Tobacco Settlement Finance Auth 1.58%, 06/01/2021 | | | 2,043,262 | |
| | | | | | | | |
| | |
| | | | Total Municipal Bonds
(cost $3,025,000) | | $ | 3,033,262 | |
| | | | | | | | |
|
| U.S. GOVERNMENT AGENCIES - 2.5% | |
| | | | Mortgage-Backed Agencies - 2.1% | |
| | | | FHLMC - 0.9% | |
| $ | 1,875,192 | | | 1.00%, 05/15/2041 | | $ | 1,900,050 | |
| | 1,438,120 | | | 1.75%, 04/15/2027 | | | 1,463,734 | |
| | 593,637 | | | 3.00%, 05/15/2037 | | | 596,165 | |
| | 489,477 | | | 3.00%, 05/15/2043 | | | 503,225 | |
| | 484,117 | | | 3.50%, 05/15/2042 | | | 496,132 | |
| | 646,502 | | | 3.50%, 11/15/2042 | | | 659,876 | |
| | 1,511,386 | | | 3.50%, 05/15/2044 | | | 1,539,102 | |
| | | | | | | | |
| | | | | | | 7,158,284 | |
| | | | | | | | |
| | | | FNMA - 0.6% | |
| $ | 2,721,271 | | | 1.75%, 09/25/2041 | | $ | 2,750,419 | |
| | 858,655 | | | 3.00%, 07/25/2041 | | | 872,205 | |
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| U.S. GOVERNMENT AGENCIES - 2.5% - (continued) | |
| | | | FNMA - 0.6% - (continued) | |
| $ | 1,027,787 | | | 3.00%, 08/25/2041 | | $ | 1,044,599 | |
| | | | | | | | |
| | | | | | | 4,667,223 | |
| | | | | | | | |
| | | | GNMA - 0.6% | |
| $ | 1,504,003 | | | 1.70%, 10/20/2045 | | $ | 1,521,895 | |
| | 1,742,952 | | | 1.80%, 05/20/2041 | | | 1,760,995 | |
| | 1,212,380 | | | 2.50%, 09/20/2046 | | | 1,243,573 | |
| | | | | | | | |
| | | | | | | 4,526,463 | |
| | | | | | | | |
| | | | Other Direct Federal Obligations - 0.4% | |
| | 3,000,000 | | | FHLMC 1.85%, 04/16/2021 | | | 3,015,199 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Agencies
(cost $19,291,355) | | $ | 19,367,169 | |
| | | | | | | | |
|
| U.S. GOVERNMENT SECURITIES - 11.0% | |
| | | | Other Direct Federal Obligations - 5.2% | |
| | | | FFCB - 1.2% | |
| | 4,500,000 | | | 0.53%, 01/18/2022 | | $ | 4,519,714 | |
| | 4,355,000 | | | 1.90%, 06/24/2021 | | | 4,392,628 | |
| | | | | | | | |
| | | | | | | 8,912,342 | |
| | | | | | | | |
| | | | FHLB - 4.0% | |
| | 25,000,000 | | | 0.13%, 09/30/2021 | | | 25,007,451 | |
| | 6,000,000 | | | 0.25%, 06/03/2022 | | | 6,013,230 | |
| | | | | | | | |
| | | | | | | 31,020,681 | |
| | | | | | | | |
| | | | U.S. Treasury Securities - 5.8% | |
| | | | U.S. Treasury Notes - 5.8% | |
| | 1,350,000 | | | 0.23%, 04/30/2021, 3 mo. USTMMR + 0.139%(2) | | | 1,350,556 | |
| | 5,000,000 | | | 1.13%, 02/28/2022 | | | 5,058,985 | |
| | 10,000,000 | | | 1.38%, 04/30/2021 | | | 10,040,625 | |
| | 22,625,000 | | | 1.75%, 11/30/2021 | | | 22,959,072 | |
| | 4,425,000 | | | 2.88%, 10/15/2021 | | | 4,520,241 | |
| | | | | | | | |
| | | | | | | 43,929,479 | |
| | | | | | | | |
| | |
| | | | Total U.S. Government Securities
(cost $83,385,173) | | $ | 83,862,502 | |
| | | | | | | | |
| | |
| | | | Total Long-Term Investments
(cost $556,864,541) | | $ | 559,073,630 | |
| | | | | | | | |
|
| SHORT-TERM INVESTMENTS - 26.9% | |
| | | | Certificates of Deposit - 0.4% | |
| | 3,150,000 | | | Natixis S.A. 0.85%, 03/09/2021(6) | | | 3,150,000 | |
| | | | | | | | |
| | | | Commercial Paper - 6.4% | |
| | 1,000,000 | | | ABN AMRO Funding USA LC 0.24%, 05/04/2021(6) | | | 998,891 | |
| | 3,600,000 | | | Banco Santander S.A. 0.38%, 10/28/2021(6) | | | 3,591,391 | |
| | 1,750,000 | | | Bank of Tokyo-Mitsubishi UFJ Ltd. 0.25%, 04/28/2021(6) | | | 1,748,577 | |
| | | | BPCE S.A. | |
| | 1,500,000 | | | 0.24%, 07/01/2021(6) | | | 1,498,021 | |
| | 1,000,000 | | | 0.25%, 07/01/2021(6) | | | 998,680 | |
| | 4,000,000 | | | Canadian Imperial Bank of Commerce 0.32%, 12/03/2021, 3 mo. USD LIBOR + 0.090%(2)(6) | | | 4,000,000 | |
| | 1,975,000 | | | Dexia Credit Local S.A. 0.24%, 05/10/2021(6) | | | 1,973,410 | |
| | | | National Bank of Canada | |
| | 5,492,000 | | | 0.21%, 03/02/2021(6) | | | 5,490,502 | |
| | 5,500,000 | | | 0.22%, 05/13/2021(6) | | | 5,496,058 | |
| | 4,000,000 | | | NRW Bank 0.21%, 03/15/2021(6) | | | 3,998,405 | |
| | 3,000,000 | | | Oglethorpe Power Corp. 0.24%, 01/15/2021(6) | | | 2,999,708 | |
| | 3,000,000 | | | Societe Generale S.A. 0.44%, 02/02/2021, 3 mo. USD LIBOR + 0.230%(1)(2)(6) | | | 3,000,518 | |
The accompanying notes are an integral part of these financial statements.
|
| Hartford Ultrashort Bond HLS Fund |
Schedule of Investments – (continued)
December 31, 2020
| | | | | | | | |
| Shares or Principal Amount | | Market Value† | |
|
| SHORT-TERM INVESTMENTS - 26.9% - (continued) | |
| | | | Commercial Paper - 6.4% - (continued) | |
| | 7,100,000 | | | Svenska Handelsbanken AB 0.25%, 08/12/2021(6) | | $ | 7,088,558 | |
| | 5,000,000 | | | Toronto-Dominion Bank 0.21%, 03/17/2021(6) | | | 4,997,730 | |
| | 1,300,000 | | | TransCanada PipeLines Ltd. 0.23%, 01/05/2021(6) | | | 1,299,960 | |
| | | | | | | | |
| | | | | | | 49,180,409 | |
| | | | | | | | |
| | | | Foreign Government Obligations - 4.4% | |
| | 7,250,000 | | | Bank of Montreal 0.28%, 11/12/2021, 3 mo. USD SOFR + 0.190%(2) | | | 7,247,140 | |
| | 1,900,000 | | | Cooperatieve Centrale 0.25%, 08/09/2021 | | | 1,900,000 | |
| | 8,825,000 | | | Credit Agricole Corporate & Investment Bank S.A.
0.22%, 05/19/2021, 3 mo. USD SOFR + 0.130%(2) | | | 8,825,715 | |
| | 5,500,000 | | | National Australia Bank Ltd. 0.27%, 11/10/2021, 3 mo. USD LIBOR + 0.060%(1)(2) | | | 5,500,000 | |
| | 6,000,000 | | | Skandinaviska Enskilda Banken AB 0.25%, 05/13/2021 | | | 6,000,796 | |
| | 4,000,000 | | | Sumitomo Mitsui Trust 0.27%, 05/17/2021 | | | 4,000,151 | |
| | | | | | | | |
| | | | | | | 33,473,802 | |
| | | | | | | | |
| | | | Repurchase Agreements - 0.2% | |
| | 1,844,018 | | | Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/2020 at 0.05%, due on 01/04/2021 with a maturity value of $1,844,028; collateralized by U.S. Treasury Bond at 2.750%, maturing 11/15/2023, with a market value of $1,880,990 | | | 1,844,018 | |
| | | | | | | | |
| | | | U.S. Treasury Securities - 15.5% | |
| | | | U.S. Treasury Bills - 15.5% | |
| | 2,500,000 | | | 0.11%, 12/30/2021(6) | | | 2,497,500 | |
| | 7,775,000 | | | 0.12%, 03/30/2021(6) | | | 7,773,660 | |
| | 25,000,000 | | | 0.12%, 04/22/2021(6) | | | 24,994,128 | |
| | 54,925,000 | | | 0.14%, 10/07/2021(6) | | | 54,890,436 | |
| | 17,500,000 | | | 0.16%, 04/22/2021(6) | | | 17,495,131 | |
| | 11,425,000 | | | 0.17%, 05/20/2021(6) | | | 11,421,761 | |
| | | | | | | | |
| | | | | | | 119,072,616 | |
| | | | | | | | |
| | |
| | | | Total Short-Term Investments
(cost $206,687,160) | | $ | 206,720,845 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | |
| | | | Total Investments
(cost $763,551,701) | | | 99.8 | % | | $ | 765,794,475 | |
| | | | Other Assets and Liabilities | | | 0.2 | % | | | 1,830,597 | |
| | | | | | | | | | | | |
| | | | Total Net Assets | | | 100.0 | % | | $ | 767,625,072 | |
| | | | | | | | | | | | |
| 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, 2020, the aggregate value of these securities was $208,017,621, representing 27.1% of net assets. |
| (2) | Variable rate securities; the rate reported is the coupon rate in effect at December 31, 2020. 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, 2020. Rate will reset at a future date. Base lending rates may be subject to a floor or cap. |
| (6) | The rate shown represents current yield to maturity. |
| † | See Significant Accounting Policies of accompanying Notes to Financial Statements regarding valuation of investments. |
Fair Value Summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s investments.
| | | | | | | | | | | | | | | | |
Description | | Total | | | Level 1 | | | Level 2 | | | Level 3(1) | |
Assets | |
Asset & Commercial Mortgage-Backed Securities | | $ | 235,074,108 | | | $ | — | | | $ | 235,074,108 | | | $ | — | |
Corporate Bonds | | | 217,736,589 | | | | — | | | | 217,736,589 | | | | — | |
Municipal Bonds | | | 3,033,262 | | | | — | | | | 3,033,262 | | | | — | |
U.S. Government Agencies | | | 19,367,169 | | | | — | | | | 19,367,169 | | | | — | |
U.S. Government Securities | | | 83,862,502 | | | | — | | | | 83,862,502 | | | | — | |
Short-Term Investments | | | 206,720,845 | | | | — | | | | 206,720,845 | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 765,794,475 | | | $ | — | | | $ | 765,794,475 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | For the year ended December 31, 2020, 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 the preceding Schedules of Investments)
| | |
| Counterparty Abbreviations: |
BCLY | | Barclays |
BNP | | BNP Paribas Securities Services |
BOA | | Bank of America Securities LLC |
CSI | | Credit Suisse International |
DEUT | | Deutsche Bank Securities, Inc. |
GSC | | Goldman Sachs & Co. |
JPM | | JP Morgan Chase & Co. |
MSC | | Morgan Stanley |
TDB | | Toronto-Dominion Bank |
UBS | | UBS AG |
|
| Currency Abbreviations: |
ARS | | Argentine Peso |
AUD | | Australian Dollar |
CNY | | Chinese Yuan |
EUR | | Euro |
GBP | | British Pound |
ILS | | Israeli Shekel |
JPY | | Japanese Yen |
KRW | | South Korean Won |
MXN | | Mexican Peso |
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. |
MTA | | Monthly Treasury Average Index |
|
| Other Abbreviations: |
ACWI | | All Country World Index |
ADR | | American Depositary Receipt |
AGM | | Assured Guaranty Municipal Corp. |
AMBAC | | American Municipal Bond Assurance Corp. |
CD | | Certificate of Deposit |
CLO | | Collateralized Loan Obligation |
CMO | | Collateralized Mortgage Obligation |
CR | | Custody Receipts |
EM | | Emerging Markets |
ETF | | Exchange-Traded Fund |
EURIBOR | | Euro Interbank Offered Rate |
FFCB | | Federal Farm Credit Bank |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corp. |
FNMA | | Federal National Mortgage Association |
GNMA | | Government National Mortgage Association |
LIBOR | | London Interbank Offered Rate |
MSCI | | Morgan Stanley Capital International |
NATL | | National Public Finance Guarantee Corp. |
OTC | | Over-the-Counter |
PJSC | | Private Joint Stock Company |
PT | | Perseroan Terbatas |
REIT | | Real Estate Investment Trust |
SOFR | | Secured Overnight Financing Rate |
TBA | | To Be Announced |
UMBS | | Uniform Mortgage-Backed Securities |
USTMMR | | U.S. Treasury Money Market Rate |
|
| Municipal Abbreviations: |
Auth | | Authority |
Dev | | Development |
Dist | | District |
GO | | General Obligation |
Rev | | Revenue |
Statements of Assets and Liabilities
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
Balanced
HLS Fund | | | Hartford
Capital
Appreciation
HLS Fund | | | Hartford
Disciplined
Equity
HLS Fund | | | Hartford
Dividend
and Growth
HLS Fund | | | Hartford
Healthcare
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | |
Assets: | | | | | | | | | |
Investments in securities, at market value(1) | | $ | 2,010,507,122 | | | $ | 4,457,359,824 | | | $ | 3,130,597,154 | | | $ | 3,460,867,494 | | | $ | 229,280,873 | | | $ | 1,220,251,481 | |
Repurchase agreements | | | 32,815,744 | | | | 74,494,433 | | | | 15,875,965 | | | | 42,837,301 | | | | 4,263,653 | | | | 11,860,183 | |
Investments in affiliated investments, at market value | | | 13,925,618 | | | | 10,057,523 | | | | — | | | | — | | | | — | | | | — | |
Cash | | | 14,101,681 | | | | 31,764,075 | | | | 6,878,826 | | | | 18,237,785 | | | | 1,814,055 | | | | 5,043,280 | |
Cash collateral held for securities on loan | | | 756,699 | | | | 1,461,064 | | | | — | | | | — | | | | 88,203 | | | | — | |
Cash collateral due from broker on swap contracts | | | 614 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign currency | | | — | | | | 10,531 | | | | — | | | | — | | | | 186 | | | | 49,649 | |
Receivables: | | | | | | | | | |
Investment securities sold | | | — | | | | 2,230,441 | | | | 97,637 | | | | — | | | | 812,005 | | | | — | |
Fund shares sold | | | 71,409 | | | | 26,844 | | | | 17,833 | | | | 111,293 | | | | 185,322 | | | | 687,698 | |
Dividends and interest | | | 4,769,480 | | | | 4,157,571 | | | | 1,568,215 | | | | 3,612,641 | | | | 104,980 | | | | 367,730 | |
Securities lending income | | | 4,585 | | | | 13,064 | | | | 207 | | | | — | | | | 1,360 | | | | 337 | |
Variation margin on futures contracts | | | — | | | | 4,709,520 | | | | — | | | | — | | | | — | | | | — | |
Tax reclaims | | | 759,477 | | | | 271,349 | | | | 515,760 | | | | 684,356 | | | | 32,961 | | | | 1,541,095 | |
Other assets | | | 12,877 | | | | 24,120 | | | | 29,654 | | | | 21,132 | | | | 4,847 | | | | 10,046 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 2,077,725,306 | | | | 4,586,580,359 | | | | 3,155,581,251 | | | | 3,526,372,002 | | | | 236,588,445 | | | | 1,239,811,499 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | |
Obligation to return securities lending collateral | | | 15,133,986 | | | | 29,221,273 | | | | — | | | | — | | | | 1,764,059 | | | | — | |
Payables: | | | | | | | | | | | | | | | | | |
Investment securities purchased | | | 8,356,397 | | | | 479,090 | | | | — | | | | — | | | | 34,973 | | | | 194 | |
Fund shares redeemed | | | 844,530 | | | | 2,893,455 | | | | 8,425,390 | | | | 1,960,411 | | | | 556,110 | | | | 271,751 | |
Investment management fees | | | 1,028,130 | | | | 2,453,040 | | | | 1,496,558 | | | | 1,871,031 | | | | 166,961 | | | | 719,270 | |
Transfer agent fees | | | 881 | | | | 1,324 | | | | 3,805 | | | | 2,331 | | | | 877 | | | | 1,107 | |
Accounting services fees | | | 25,089 | | | | 55,465 | | | | 38,391 | | | | 43,087 | | | | 2,852 | | | | 14,988 | |
Board of Directors’ fees | | | 12,260 | | | | 25,946 | | | | 15,139 | | | | 19,774 | | | | 1,390 | | | | 6,975 | |
Variation margin on futures contracts | | | 6,432 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distribution fees | | | 6,582 | | | | 14,388 | | | | 12,075 | | | | 11,189 | | | | 1,205 | | | | 3,888 | |
Accrued expenses | | | 89,729 | | | | 160,543 | | | | 238,554 | | | | 163,471 | | | | 26,824 | | | | 130,816 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 25,504,016 | | | | 35,304,524 | | | | 10,229,912 | | | | 4,071,294 | | | | 2,555,251 | | | | 1,148,989 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,052,221,290 | | | $ | 4,551,275,835 | | | $ | 3,145,351,339 | | | $ | 3,522,300,708 | | | $ | 234,033,194 | | | $ | 1,238,662,510 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | |
Capital stock and paid-in-capital | | $ | 1,412,286,367 | | | $ | 3,178,132,277 | | | $ | 2,283,798,880 | | | $ | 2,141,598,049 | | | $ | 138,062,094 | | | $ | 911,755,807 | |
Distributable earnings | | | 639,934,923 | | | | 1,373,143,558 | | | | 861,552,459 | | | | 1,380,702,659 | | | | 95,971,100 | | | | 326,906,703 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,052,221,290 | | | $ | 4,551,275,835 | | | $ | 3,145,351,339 | | | $ | 3,522,300,708 | | | $ | 234,033,194 | | | $ | 1,238,662,510 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares authorized | | | 9,700,000,000 | | | | 5,450,000,000 | | | | 3,610,000,000 | | | | 4,200,000,000 | | | | 800,000,000 | | | | 2,825,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 31.56 | | | $ | 51.85 | | | $ | 17.40 | | | $ | 22.19 | | | $ | 23.88 | | | $ | 19.58 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 57,344,674 | | | | 77,607,691 | | | | 155,275,316 | | | | 140,163,950 | | | | 7,973,146 | | | | 55,938,390 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 1,809,744,916 | | | $ | 4,024,339,508 | | | $ | 2,701,619,121 | | | $ | 3,109,772,373 | | | $ | 190,370,955 | | | $ | 1,095,213,417 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 32.15 | | | $ | 50.85 | | | $ | 17.13 | | | $ | 22.04 | | | $ | 21.97 | | | $ | 19.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 7,541,467 | | | | 9,588,836 | | | | 21,327,155 | | | | 18,716,316 | | | | 1,987,534 | | | | 7,221,667 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 242,476,374 | | | $ | 487,575,775 | | | $ | 365,245,592 | | | $ | 412,528,335 | | | $ | 43,662,239 | | | $ | 143,449,093 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IC: Net asset value per share | | $ | — | | | $ | 51.08 | | | $ | 17.40 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | — | | | | 770,527 | | | | 4,511,136 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | — | | | $ | 39,360,552 | | | $ | 78,486,626 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of investments | | $ | 1,500,311,821 | | | $ | 3,378,478,510 | | | $ | 2,326,610,509 | | | $ | 2,270,992,069 | | | $ | 159,236,262 | | | $ | 875,978,113 | |
Cost of affiliated investments | | $ | 2,510,647 | | | $ | 1,813,267 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Cost of foreign currency | | $ | — | | | $ | 10,502 | | | $ | — | | | $ | — | | | $ | 186 | | | $ | 49,513 | |
| | | | | | |
(1) Includes Investment in securities on loan, at market value | | $ | 15,053,195 | | | $ | 28,051,833 | | | $ | — | | | $ | — | | | $ | 1,700,789 | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
MidCap
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 | |
Assets: | | | | | | | | | | | | | | | | | |
Investments in securities, at market value(1) | | $ | 2,518,252,579 | | | $ | 1,429,854,942 | | | $ | 600,232,899 | | | $ | 1,454,842,723 | | | $ | 2,913,947,934 | | | $ | 763,950,457 | |
Repurchase agreements | | | 10,234,572 | | | | — | | | | 7,590,202 | | | | 21,311,095 | | | | 18,056,751 | | | | 1,844,018 | |
Investments in affiliated investments, at market value | | | — | | | | — | | | | 5,969,516 | | | | 11,233,719 | | | | — | | | | — | |
Cash | | | 4,352,223 | | | | — | | | | 1,832,122 | | | | 9,057,761 | | | | 37,762,470 | | | | 842,294 | |
Cash collateral held for securities on loan | | | 843,583 | | | | 590,001 | | | | 425,140 | | | | — | | | | 387,652 | | | | — | |
Cash collateral due from broker on swap contracts | | | — | | | | — | | | | — | | | | — | | | | 640,000 | | | | — | |
Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 1,303,055 | | | | — | |
Unrealized appreciation on OTC swap contracts | | | — | | | | — | | | | — | | | | — | | | | 67,869 | | | | — | |
Unrealized appreciation on foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 8,056 | | | | — | |
Receivables: | | | | | | | | | | | | | | | | | |
Investment securities sold | | | 13,117,225 | | | | 17,483,074 | | | | 1,756,063 | | | | — | | | | 245,367,718 | | | | — | |
Fund shares sold | | | 612,222 | | | | 201,818 | | | | 62,958 | | | | 19,803 | | | | 313,655 | | | | 213,027 | |
Dividends and interest | | | 1,580,918 | | | | 643,809 | | | | 136,778 | | | | 1,506,538 | | | | 14,010,528 | | | | 1,305,137 | |
Securities lending income | | | 4,653 | | | | 2,812 | | | | 3,960 | | | | — | | | | 5,120 | | | | 875 | |
Variation margin on centrally cleared swap contracts | | | — | | | | — | | | | — | | | | — | | | | 16,837 | | | | — | |
Tax reclaims | | | — | | | | — | | | | — | | | | 377,914 | | | | — | | | | — | |
OTC swap contracts premiums paid | | | — | | | | — | | | | — | | | | — | | | | 1,451,298 | | | | — | |
Other assets | | | 19,695 | | | | 12,040 | | | | 7,468 | | | | 10,491 | | | | 16,894 | | | | 9,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 2,549,017,670 | | | | 1,448,788,496 | | | | 618,017,106 | | | | 1,498,360,044 | | | | 3,233,355,837 | | | | 768,164,949 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | |
Due to custodian | | | — | | | | 957,954 | | | | — | | | | — | | | | — | | | | — | |
Unrealized depreciation on foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 449,481 | | | | — | |
Obligation to return securities lending collateral | | | 16,871,653 | | | | 11,800,029 | | | | 8,502,795 | | | | — | | | | 7,753,033 | | | | — | |
Unrealized depreciation on OTC swap contracts | | | — | | | | — | | | | — | | | | — | | | | 4,890,773 | | | | — | |
Cash collateral due to broker on swap contracts | | | — | | | | — | | | | — | | | | — | | | | 151,000 | | | | — | |
TBA sale commitments, at market value | | | — | | | | — | | | | — | | | | — | | | | 59,682,125 | | | | — | |
Unfunded loan commitments | | | — | | | | — | | | | — | | | | — | | | | 16,203 | | | | — | |
Payables: | | | | | | | | | | | | | | | | | |
Investment securities purchased | | | — | | | | 1,164,529 | | | | 107,604 | | | | — | | | | 777,121,817 | | | | — | |
Fund shares redeemed | | | 12,629,094 | | | | 9,002,716 | | | | 296,364 | | | | 7,889,292 | | | | 415,334 | | | | 146,865 | |
Investment management fees | | | 1,395,657 | | | | 725,091 | | | | 370,084 | | | | 601,959 | | | | 930,516 | | | | 260,558 | |
Transfer agent fees | | | 3,749 | | | | 1,116 | | | | 869 | | | | 859 | | | | 2,232 | | | | 2,191 | |
Accounting services fees | | | 30,702 | | | | 17,342 | | | | 7,278 | | | | 18,228 | | | | 28,829 | | | | 9,458 | |
Board of Directors’ fees | | | 12,904 | | | | 7,398 | | | | 3,031 | | | | 8,915 | | | | 13,806 | | | | 3,528 | |
Variation margin on futures contracts | | | — | | | | — | | | | — | | | | — | | | | 140,400 | | | | — | |
Distribution fees | | | 3,859 | | | | 5,747 | | | | 1,863 | | | | 3,513 | | | | 7,257 | | | | 3,004 | |
Written options | | | — | | | | — | | | | — | | | | — | | | | 423,464 | | | | — | |
Accrued expenses | | | 118,773 | | | | 61,592 | | | | 65,304 | | | | 68,752 | | | | 198,405 | | | | 114,273 | |
OTC swap contracts premiums received | | | — | | | | — | | | | — | | | | — | | | | 4,245,185 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 31,066,391 | | | | 23,743,514 | | | | 9,355,192 | | | | 8,591,518 | | | | 856,469,860 | | | | 539,877 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,517,951,279 | | | $ | 1,425,044,982 | | | $ | 608,661,914 | | | $ | 1,489,768,526 | | | $ | 2,376,885,977 | | | $ | 767,625,072 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Summary of Net Assets: | | | | | | | | | | | | | | | | | |
Capital stock and paid-in-capital | | $ | 1,496,023,518 | | | $ | 804,575,457 | | | $ | 333,406,565 | | | $ | 860,262,202 | | | $ | 2,175,282,894 | | | $ | 771,548,315 | |
Distributable earnings (loss) | | | 1,021,927,761 | | | | 620,469,525 | | | | 275,255,349 | | | | 629,506,324 | | | | 201,603,083 | | | | (3,923,243 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | $ | 2,517,951,279 | | | $ | 1,425,044,982 | | | $ | 608,661,914 | | | $ | 1,489,768,526 | | | $ | 2,376,885,977 | | | $ | 767,625,072 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares authorized | | | 2,600,000,000 | | | | 700,000,000 | | | | 1,500,000,000 | | | | 4,200,000,000 | | | | 5,000,000,000 | | | | 14,000,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Par value | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | | | $ | 0.0010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IA: Net asset value per share | | $ | 43.44 | | | $ | 38.15 | | | $ | 27.44 | | | $ | 95.52 | | | $ | 11.98 | | | $ | 10.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 54,726,466 | | | | 32,081,308 | | | | 19,706,011 | | | | 14,238,542 | | | | 176,264,933 | | | | 65,119,678 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 2,377,319,702 | | | $ | 1,224,012,260 | | | $ | 540,763,591 | | | $ | 1,360,098,948 | | | $ | 2,110,986,459 | | | $ | 657,374,808 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class IB: Net asset value per share | | $ | 41.76 | | | $ | 36.48 | | | $ | 24.23 | | | $ | 95.48 | | | $ | 11.91 | | | $ | 10.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 3,367,587 | | | | 5,510,342 | | | | 2,801,910 | | | | 1,358,022 | | | | 22,325,657 | | | | 10,925,857 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 140,631,577 | | | $ | 201,032,722 | | | $ | 67,898,323 | | | $ | 129,669,578 | | | $ | 265,899,518 | | | $ | 110,250,264 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of investments | | $ | 1,772,072,976 | | | $ | 920,035,140 | | | $ | 417,154,478 | | | $ | 902,589,580 | | | $ | 2,842,134,426 | | | $ | 763,551,701 | |
Cost of affiliated investments | | $ | — | | | $ | — | | | $ | 1,076,242 | | | $ | 2,025,320 | | | $ | — | | | $ | — | |
Cost of foreign currency | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,306,186 | | | $ | — | |
Proceeds of TBA sale commitments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 59,629,160 | | | $ | — | |
Proceeds of written option contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 534,924 | | | $ | — | |
| | | | | | |
(1) Includes Investment in securities on loan, at market value | | $ | 16,771,175 | | | $ | 10,859,571 | | | $ | 10,891,496 | | | $ | — | | | $ | 7,552,753 | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
For the Year Ended December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
Balanced
HLS Fund | | | Hartford
Capital
Appreciation
HLS Fund | | | Hartford
Disciplined
Equity HLS
Fund | | | Hartford
Dividend
and Growth
HLS Fund | | | Hartford
Healthcare
HLS Fund | | | Hartford
International
Opportunities
HLS Fund | |
Investment Income: | | | | | | | | | |
Dividends | | $ | 26,739,227 | | | $ | 63,335,436 | | | $ | 17,890,607 | | | $ | 79,945,949 | | | $ | 2,131,110 | | | $ | 15,372,922 | |
Non-cash dividends | | | — | | | | 655,353 | | | | — | | | | — | | | | 16,918 | | | | 915,203 | |
Interest | | | 17,330,170 | | | | 273,108 | | | | 21,549 | | | | 206,545 | | | | 12,802 | | | | 58,297 | |
Securities lending | | | 36,202 | | | | 901,862 | | | | 6,971 | | | | 1,372 | | | | 22,046 | | | | 82,751 | |
Less: Foreign tax withheld | | | (220,333 | ) | | | (393,420 | ) | | | — | | | | (721,751 | ) | | | (26,583 | ) | | | (1,523,649 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income, net | | | 43,885,266 | | | | 64,772,339 | | | | 17,919,127 | | | | 79,432,115 | | | | 2,156,293 | | | | 14,905,524 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | |
Investment management fees | | | 12,174,016 | | | | 26,236,540 | | | | 7,711,571 | | | | 19,524,803 | | | | 1,859,988 | | | | 7,658,200 | |
Administrative services fees | | | | | | | | | |
Class IC | | | — | | | | 84,877 | | | | 52,813 | | | | — | | | | — | | | | — | |
Transfer agent fees | | | | | | | | | |
Class IA | | | 4,784 | | | | 7,183 | | | | 7,921 | | | | 6,582 | | | | 4,454 | | | | 5,978 | |
Class IB | | | 647 | | | | 883 | | | | 1,083 | | | | 870 | | | | 1,012 | | | | 770 | |
Class IC | | | — | | | | 68 | | | | 132 | | | | — | | | | — | | | | — | |
Distribution fees | | | | | | | | | |
Class IB | | | 578,596 | | | | 1,104,678 | | | | 376,812 | | | | 879,969 | | | | 101,220 | | | | 310,009 | |
Class IC | | | — | | | | 84,877 | | | | 52,813 | | | | — | | | | — | | | | — | |
Custodian fees | | | 9,784 | | | | 23,320 | | | | 6,450 | | | | 9,107 | | | | 11,664 | | | | 61,327 | |
Registration and filing fees | | | 27,427 | | | | 37,622 | | | | 29,437 | | | | 30,253 | | | | 25,625 | | | | 30,056 | |
Accounting services fees | | | 289,380 | | | | 605,821 | | | | 185,212 | | | | 448,588 | | | | 32,599 | | | | 161,615 | |
Board of Directors’ fees | | | 59,658 | | | | 123,521 | | | | 38,575 | | | | 90,900 | | | | 6,655 | | | | 32,870 | |
Audit fees | | | 30,929 | | | | 49,179 | | | | 42,597 | | | | 23,625 | | | | 18,795 | | | | 42,748 | |
Other expenses | | | 295,910 | | | | 505,509 | | | | 329,224 | | | | 415,819 | | | | 35,447 | | | | 260,649 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses (before waivers, reimbursements and fees paid indirectly) | | | 13,471,131 | | | | 28,864,078 | | | | 8,834,640 | | | | 21,430,516 | | | | 2,097,459 | | | | 8,564,222 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Management fee waivers | | | (582,934 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Commission recapture | | | (2,698 | ) | | | (46,130 | ) | | | (3,816 | ) | | | (6,216 | ) | | | (758 | ) | | | (3,538 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total waivers, reimbursements and fees paid indirectly | | | (585,632 | ) | | | (46,130 | ) | | | (3,816 | ) | | | (6,216 | ) | | | (758 | ) | | | (3,538 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses, net | | | 12,885,499 | | | | 28,817,948 | | | | 8,830,824 | | | | 21,424,300 | | | | 2,096,701 | | | | 8,560,684 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | 30,999,767 | | | | 35,954,391 | | | | 9,088,303 | | | | 58,007,815 | | | | 59,592 | | | | 6,344,840 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments | | | 105,600,493 | | | | 364,437,425 | | | | 51,369,742 | | | | 149,586,506 | | | | 24,190,007 | | | | (5,373,878 | ) |
Less: Foreign taxes paid on realized capital gains | | | — | | | | (48,689 | ) | | | — | | | | — | | | | — | | | | — | |
Futures contracts | | | 499,144 | | | | (2,672,692 | ) | | | — | | | | — | | | | — | | | | — | |
Swap contracts | | | (371,871 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign currency contracts | | | — | | | | 92,912 | | | | — | | | | — | | | | — | | | | — | |
Other foreign currency transactions | | | 11,819 | | | | 63,997 | | | | 263 | | | | (21,034 | ) | | | 12,859 | | | | (322,579 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 105,739,585 | | | | 361,872,953 | | | | 51,370,005 | | | | 149,565,472 | | | | 24,202,866 | | | | (5,696,457 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments* | | | 59,136,476 | | | | 422,058,264 | | | | 349,863,191 | | | | 43,565,955 | | | | 18,489,814 | | | | 191,225,591 | |
Investments in affiliated investments | | | 11,824,772 | | | | 8,540,225 | | | | — | | | | — | | | | — | | | | — | |
Futures contracts | | | 139,161 | | | | 2,088,298 | | | | — | | | | — | | | | — | | | | — | |
Foreign currency contracts | | | — | | | | (92,912 | ) | | | — | | | | — | | | | — | | | | — | |
Translation of other assets and liabilities in foreign currencies | | | 67,494 | | | | 14,025 | | | | 35,783 | | | | 14,505 | | | | 2,359 | | | | 104,392 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 71,167,903 | | | | 432,607,900 | | | | 349,898,974 | | | | 43,580,460 | | | | 18,492,173 | | | | 191,329,983 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 176,907,488 | | | | 794,480,853 | | | | 401,268,979 | | | | 193,145,932 | | | | 42,695,039 | | | | 185,633,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 207,907,255 | | | $ | 830,435,244 | | | $ | 410,357,282 | | | $ | 251,153,747 | | | $ | 42,754,631 | | | $ | 191,978,366 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
* Includes change in unrealized appreciation (depreciation) on deferred capital gains tax | | $ | — | | | $ | 58,435 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations – (continued)
For the Year Ended December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Hartford
MidCap
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 | |
Investment Income: | | | | | | | | | | | | | | | | | |
Dividends | | $ | 15,131,417 | | | $ | 7,035,893 | | | $ | 2,155,205 | | | $ | 29,040,759 | | | $ | 79,778 | | | $ | — | |
Interest | | | 20,072 | | | | 55,169 | | | | 33,533 | | | | 93,096 | | | | 62,855,508 | | | | 7,451,596 | |
Securities lending | | | 94,589 | | | | 96,814 | | | | 203,952 | | | | 58,652 | | | | 71,504 | | | | 8,941 | |
Less: Foreign tax withheld | | | (2,487 | ) | | | — | | | | — | | | | (94,724 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income, net | | | 15,243,591 | | | | 7,187,876 | | | | 2,392,690 | | | | 29,097,783 | | | | 63,006,790 | | | | 7,460,537 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | |
Investment management fees | | | 13,163,739 | | | | 7,386,706 | | | | 3,671,830 | | | | 6,691,321 | | | | 10,023,421 | | | | 2,126,488 | |
Transfer agent fees | | | | | | | | | | | | | | | | | |
Class IA | | | 10,170 | | | | 5,008 | | | | 4,800 | | | | 4,824 | | | | 6,314 | | | | 5,901 | |
Class IB | | | 416 | | | | 1,896 | | | | 560 | | | | 467 | | | | 762 | | | | 918 | |
Distribution fees | | | | | | | | | | | | | | | | | |
Class IB | | | 175,078 | | | | 826,562 | | | | 126,837 | | | | 306,829 | | | | 567,354 | | | | 178,189 | |
Custodian fees | | | 14,333 | | | | 6,667 | | | | 16,631 | | | | 4,525 | | | | 26,261 | | | | 2,357 | |
Registration and filing fees | | | 26,113 | | | | 36,962 | | | | 32,577 | | | | 26,846 | | | | 27,641 | | | | 26,495 | |
Accounting services fees | | | 292,219 | | | | 180,936 | | | | 72,930 | | | | 206,817 | | | | 316,858 | | | | 78,650 | |
Board of Directors’ fees | | | 58,617 | | | | 36,465 | | | | 14,313 | | | | 42,506 | | | | 65,846 | | | | 15,159 | |
Audit fees | | | 25,138 | | | | 21,681 | | | | 33,157 | | | | 30,523 | | | | 46,190 | | | | 35,696 | |
Other expenses | | | 212,188 | | | | 469,411 | | | | 115,132 | | | | 236,392 | | | | 378,694 | | | | 128,660 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses (before waivers, reimbursements and fees paid indirectly) | | | 13,978,011 | | | | 8,972,294 | | | | 4,088,767 | | | | 7,551,050 | | | | 11,459,341 | | | | 2,598,513 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Commission recapture | | | (19,022 | ) | | | (10,028 | ) | | | (8,790 | ) | | | (1,474 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total waivers, reimbursements and fees paid indirectly | | | (19,022 | ) | | | (10,028 | ) | | | (8,790 | ) | | | (1,474 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses, net | | | 13,958,989 | | | | 8,962,266 | | | | 4,079,977 | | | | 7,549,576 | | | | 11,459,341 | | | | 2,598,513 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | 1,284,602 | | | | (1,774,390 | ) | | | (1,687,287 | ) | | | 21,548,207 | | | | 51,547,449 | | | | 4,862,024 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions on: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments | | | 311,611,737 | | | | 113,430,677 | | | | 84,980,452 | | | | 48,846,337 | | | | 93,475,732 | | | | 367,845 | |
Redemptions-in-kind | | | — | | | | — | | | | (2,469,075 | ) | | | — | | | | — | | | | — | |
Purchased options contracts | | | — | | | | — | | | | — | | | | — | | | | 1,719,709 | | | | — | |
Futures contracts | | | — | | | | — | | | | — | | | | — | | | | 11,244,850 | | | | — | |
Written options contracts | | | — | | | | — | | | | — | | | | — | | | | 14,278,353 | | | | — | |
Swap contracts | | | — | | | | — | | | | — | | | | — | | | | (45,189,566 | ) | | | — | |
Foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 2,250,235 | | | | — | |
Other foreign currency transactions | | | — | | | | — | | | | (7 | ) | | | (22,468 | ) | | | 345,434 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 311,611,737 | | | | 113,430,677 | | | | 82,511,370 | | | | 48,823,869 | | | | 78,124,747 | | | | 367,845 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions of: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments | | | 190,989,463 | | | | 249,828,980 | | | | 82,842,591 | | | | 77,818,358 | | | | 41,230,615 | | | | 1,107,664 | |
Investments in affiliated investments | | | — | | | | — | | | | 5,068,943 | | | | 9,538,978 | | | | — | | | | — | |
Purchased options contracts | | | — | | | | — | | | | — | | | | — | | | | 202,141 | | | | — | |
Futures contracts | | | — | | | | — | | | | — | | | | — | | | | 2,192,242 | | | | — | |
Written options contracts | | | — | | | | — | | | | — | | | | — | | | | 111,460 | | | | — | |
Swap contracts | | | — | | | | — | | | | — | | | | — | | | | 3,018,602 | | | | — | |
Foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 446,872 | | | | — | |
Translation of other assets and liabilities in foreign currencies | | | — | | | | — | | | | (163 | ) | | | 24,350 | | | | (38,899 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Changes in Unrealized Appreciation (Depreciation) of Investments, Other Financial Instruments and Foreign Currency Transactions | | | 190,989,463 | | | | 249,828,980 | | | | 87,911,371 | | | | 87,381,686 | | | | 47,163,033 | | | | 1,107,664 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Gain (Loss) on Investments, Other Financial Instruments and Foreign Currency Transactions | | | 502,601,200 | | | | 363,259,657 | | | | 170,422,741 | | | | 136,205,555 | | | | 125,287,780 | | | | 1,475,509 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 503,885,802 | | | $ | 361,485,267 | | | $ | 168,735,454 | | | $ | 157,753,762 | | | $ | 176,835,229 | | | $ | 6,337,533 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | 30,999,767 | | | $ | 36,362,142 | | | $ | 35,954,391 | | | $ | 44,497,466 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 105,739,585 | | | | 88,890,297 | | | | 361,872,953 | | | | 213,743,988 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 71,167,903 | | | | 292,318,364 | | | | 432,607,900 | | | | 910,077,575 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 207,907,255 | | | | 417,570,803 | | | | 830,435,244 | | | | 1,168,319,029 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (117,833,855 | ) | | | (185,511,739 | ) | | | (302,064,553 | ) | | | (453,254,297 | ) |
Class IB | | | (15,165,622 | ) | | | (23,789,456 | ) | | | (36,702,247 | ) | | | (55,760,662 | ) |
Class IC | | | — | | | | — | | | | (2,791,605 | ) | | | (3,992,375 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (132,999,477 | ) | | | (209,301,195 | ) | | | (341,558,405 | ) | | | (513,007,334 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 19,191,198 | | | | 13,809,419 | | | | 38,136,392 | | | | 27,135,599 | |
Issued on reinvestment of distributions | | | 132,999,477 | | | | 209,301,195 | | | | 341,558,405 | | | | 513,007,334 | |
Redeemed | | | (271,723,464 | ) | | | (282,083,299 | ) | | | (675,171,430 | ) | | | (840,778,982 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (119,532,789 | ) | | | (58,972,685 | ) | | | (295,476,633 | ) | | | (300,636,049 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (44,625,011 | ) | | | 149,296,923 | | | | 193,400,206 | | | | 354,675,646 | |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 2,096,846,301 | | | | 1,947,549,378 | | | | 4,357,875,629 | | | | 4,003,199,983 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 2,052,221,290 | | | $ | 2,096,846,301 | | | $ | 4,551,275,835 | | | $ | 4,357,875,629 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | |
| | | Hartford
Disciplined Equity HLS Fund | | | Hartford
Dividend and Growth HLS Fund | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | 9,088,303 | | | $ | 4,927,010 | | | $ | 58,007,815 | | | $ | 58,130,045 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 51,370,005 | | | | 49,562,302 | | | | 149,565,472 | | | | 152,245,468 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 349,898,974 | | | | 127,301,596 | | | | 43,580,460 | | | | 585,892,259 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 410,357,282 | | | | 181,790,908 | | | | 251,153,747 | | | | 796,267,772 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (49,655,221 | ) | | | (66,982,886 | ) | | | (188,906,611 | ) | | | (380,717,264 | ) |
Class IB | | | (6,547,645 | ) | | | (9,168,659 | ) | | | (23,940,435 | ) | | | (51,049,426 | ) |
Class IC(1) | | | (117,970 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total distributions | | | (56,320,836 | ) | | | (76,151,545 | ) | | | (212,847,046 | ) | | | (431,766,690 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 20,261,442 | | | | 11,880,527 | | | | 101,254,488 | | | | 52,980,701 | |
Issued in merger | | | 2,330,083,048 | | | | — | | | | 318,148,909 | | | | — | |
Issued on reinvestment of distributions | | | 56,320,836 | | | | 76,151,545 | | | | 212,846,267 | | | | 431,766,690 | |
Redeemed | | | (269,263,242 | ) | | | (109,938,872 | ) | | | (457,811,881 | ) | | | (500,718,066 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | 2,137,402,084 | | | | (21,906,800 | ) | | | 174,437,783 | | | | (15,970,675 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 2,491,438,530 | | | | 83,732,563 | | | | 212,744,484 | | | | 348,530,407 | |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 653,912,809 | | | | 570,180,246 | | | | 3,309,556,224 | | | | 2,961,025,817 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 3,145,351,339 | | | $ | 653,912,809 | | | $ | 3,522,300,708 | | | $ | 3,309,556,224 | |
| | | | | | | | | | | | | | | | |
| (1) | Commenced operations on September 18, 2020. |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | |
| | | Hartford
Healthcare HLS Fund | | | Hartford
International Opportunities
HLS Fund | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | 59,592 | | | $ | 166,281 | | | $ | 6,344,840 | | | $ | 20,489,246 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 24,202,866 | | | | 41,441,957 | | | | (5,696,457 | ) | | | (25,886,084 | ) |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 18,492,173 | | | | 33,386,835 | | | | 191,329,983 | | | | 285,034,848 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 42,754,631 | | | | 74,995,073 | | | | 191,978,366 | | | | 279,638,010 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (32,813,968 | ) | | | (23,301,756 | ) | | | (18,153,869 | ) | | | (59,417,697 | ) |
Class IB | | | (7,990,682 | ) | | | (5,559,926 | ) | | | (2,009,265 | ) | | | (6,983,056 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (40,804,650 | ) | | | (28,861,682 | ) | | | (20,163,134 | ) | | | (66,400,753 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 24,636,180 | | | | 18,614,353 | | | | 67,889,363 | | | | 64,607,494 | |
Issued on reinvestment of distributions | | | 40,804,650 | | | | 28,861,682 | | | | 20,163,134 | | | | 66,400,753 | |
Redeemed | | | (66,609,342 | ) | | | (146,077,753 | ) | | | (249,890,183 | ) | | | (236,490,704 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (1,168,512 | ) | | | (98,601,718 | ) | | | (161,837,686 | ) | | | (105,482,457 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 781,469 | | | | (52,468,327 | ) | | | 9,977,546 | | | | 107,754,800 | |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 233,251,725 | | | | 285,720,052 | | | | 1,228,684,964 | | | | 1,120,930,164 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 234,033,194 | | | $ | 233,251,725 | | | $ | 1,238,662,510 | | | $ | 1,228,684,964 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | |
| | | Hartford
MidCap HLS Fund | | | Hartford
Small Cap Growth HLS Fund | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | 1,284,602 | | | $ | 2,453,437 | | | $ | (1,774,390 | ) | | $ | 502,863 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 311,611,737 | | | | 144,622,584 | | | | 113,430,677 | | | | 44,683,578 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 190,989,463 | | | | 428,817,893 | | | | 249,828,980 | | | | 335,112,204 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 503,885,802 | | | | 575,893,914 | | | | 361,485,267 | | | | 380,298,645 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (177,950,463 | ) | | | (301,703,983 | ) | | | (32,246,764 | ) | | | (154,314,731 | ) |
Class IB | | | (5,921,123 | ) | | | (8,149,131 | ) | | | (13,179,751 | ) | | | (63,116,174 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (183,871,586 | ) | | | (309,853,114 | ) | | | (45,426,515 | ) | | | (217,430,905 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 284,296,985 | | | | 136,707,597 | | | | 444,343,670 | | | | 178,522,218 | |
Issued in merger | | | 337,780,470 | | | | — | | | | — | | | | — | |
Issued on reinvestment of distributions | | | 183,871,586 | | | | 309,853,114 | | | | 40,017,923 | | | | 193,713,157 | |
Redeemed | | | (708,217,628 | ) | | | (427,293,869 | ) | | | (710,495,275 | ) | | | (316,364,571 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | 97,731,413 | | | | 19,266,842 | | | | (226,133,682 | ) | | | 55,870,804 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 417,745,629 | | | | 285,307,642 | | | | 89,925,070 | | | | 218,738,544 | |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 2,100,205,650 | | | | 1,814,898,008 | | | | 1,335,119,912 | | | | 1,116,381,368 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 2,517,951,279 | | | $ | 2,100,205,650 | | | $ | 1,425,044,982 | | | $ | 1,335,119,912 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets – (continued)
| | | | | | | | | | | | | | | | |
| | | Hartford
Small Company HLS Fund | | | Hartford
Stock HLS Fund | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | (1,687,287 | ) | | $ | (1,528,835 | ) | | $ | 21,548,207 | | | $ | 22,931,013 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 82,511,370 | | | | 64,285,340 | | | | 48,823,869 | | | | 98,262,647 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 87,911,371 | | | | 120,697,743 | | | | 87,381,686 | | | | 269,938,973 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 168,735,454 | | | | 183,454,248 | | | | 157,753,762 | | | | 391,132,633 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (57,898,706 | ) | | | (100,841,539 | ) | | | (105,830,872 | ) | | | (133,049,130 | ) |
Class IB | | | (7,955,937 | ) | | | (10,050,660 | ) | | | (9,984,197 | ) | | | (12,720,819 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (65,854,643 | ) | | | (110,892,199 | ) | | | (115,815,069 | ) | | | (145,769,949 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 46,390,011 | | | | 63,567,701 | | | | 13,251,527 | | | | 10,222,248 | |
Issued on reinvestment of distributions | | | 65,854,643 | | | | 110,892,199 | | | | 115,815,069 | | | | 145,769,949 | |
Redemption-in-kind | | | 8,160,448 | | | | — | | | | — | | | | — | |
Redeemed | | | (238,957,153 | ) | | | (142,188,473 | ) | | | (190,830,898 | ) | | | (213,809,325 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | (118,552,051 | ) | | | 32,271,427 | | | | (61,764,302 | ) | | | (57,817,128 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (15,671,240 | ) | | | 104,833,476 | | | | (19,825,609 | ) | | | 187,545,556 | |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 624,333,154 | | | | 519,499,678 | | | | 1,509,594,135 | | | | 1,322,048,579 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 608,661,914 | | | $ | 624,333,154 | | | $ | 1,489,768,526 | | | $ | 1,509,594,135 | |
| | | | | | | | | | | | | | | | |
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 | |
| | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | | | For the
Year Ended
December 31,
2020 | | | For the
Year Ended
December 31,
2019 | |
Operations: | |
Net investment income (loss) | | $ | 51,547,449 | | | $ | 65,861,576 | | | $ | 4,862,024 | | | $ | 10,500,262 | |
Net realized gain (loss) on investments, other financial instruments and foreign currency transactions | | | 78,124,747 | | | | 58,991,821 | | | | 367,845 | | | | 294,254 | |
Net changes in unrealized appreciation (depreciation) of investments, other financial instruments and foreign currency transactions | | | 47,163,033 | | | | 85,804,646 | | | | 1,107,664 | | | | 2,390,882 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 176,835,229 | | | | 210,658,043 | | | | 6,337,533 | | | | 13,185,398 | |
| | | | | | | | | | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Class IA | | | (73,659,677 | ) | | | (74,150,238 | ) | | | (9,308,313 | ) | | | (7,948,551 | ) |
Class IB | | | (8,000,272 | ) | | | (8,003,440 | ) | | | (1,220,637 | ) | | | (964,500 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (81,659,949 | ) | | | (82,153,678 | ) | | | (10,528,950 | ) | | | (8,913,051 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | |
Sold | | | 264,927,545 | | | | 127,470,147 | | | | 107,159,346 | | | | 74,378,048 | |
Issued in merger | | | 227,469,835 | | | | — | | | | 339,951,431 | | | | — | |
Issued on reinvestment of distributions | | | 81,659,949 | | | | 82,153,678 | | | | 10,528,950 | | | | 8,913,051 | |
Redeemed | | | (379,866,776 | ) | | | (337,029,607 | ) | | | (136,555,061 | ) | | | (138,850,731 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) from capital share transactions | | | 194,190,553 | | | | (127,405,782 | ) | | | 321,084,666 | | | | (55,559,632 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 289,365,833 | | | | 1,098,583 | | | | 316,893,249 | | | | (51,287,285 | ) |
| | | | | | | | | | | | | | | | |
Net Assets: | |
Beginning of period | | | 2,087,520,144 | | | | 2,086,421,561 | | | | 450,731,823 | | | | 502,019,108 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 2,376,885,977 | | | $ | 2,087,520,144 | | | $ | 767,625,072 | | | $ | 450,731,823 | |
| | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Capital
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments(3) | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments(3) | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
|
| Hartford Balanced HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 30.27 | | | $ | 0.48 | | | $ | 2.92 | | | $ | 3.40 | | | $ | (0.51 | ) | | $ | (1.60 | ) | | $ | (2.11 | ) | | $ | 31.56 | | | | 11.62 | % | | $ | 1,809,745 | | | | 0.66 | % | | | 0.63 | % | | | 1.63 | % | | | 43 | %(4) |
IB | | | 30.80 | | | | 0.41 | | | | 2.97 | | | | 3.38 | | | | (0.43 | ) | | | (1.60 | ) | | | (2.03 | ) | | | 32.15 | | | | 11.35 | | | | 242,476 | | | | 0.91 | | | | 0.88 | | | | 1.38 | | | | 43 | (4) |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 27.47 | | | $ | 0.54 | (5) | | $ | 5.47 | (5) | | $ | 6.01 | | | $ | (0.56 | ) | | $ | (2.65 | ) | | $ | (3.21 | ) | | $ | 30.27 | | | | 22.80 | % | | $ | 1,849,582 | | | | 0.66 | % | | | 0.63 | % | | | 1.81 | %(5) | | | 38 | % |
IB | | | 27.91 | | | | 0.47 | (5) | | | 5.55 | (5) | | | 6.02 | | | | (0.48 | ) | | | (2.65 | ) | | | (3.13 | ) | | | 30.80 | | | | 22.47 | | | | 247,264 | | | | 0.91 | | | | 0.88 | | | | 1.56 | (5) | | | 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 | |
|
| Hartford Capital Appreciation HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 46.05 | | | $ | 0.42 | | | $ | 9.37 | | | $ | 9.79 | | | $ | (0.45 | ) | | $ | (3.54 | ) | | $ | (3.99 | ) | | $ | 51.85 | | | | 21.91 | % | | $ | 4,024,340 | | | | 0.68 | % | | | 0.68 | % | | | 0.91 | % | | | 80 | % |
IB | | | 45.24 | | | | 0.30 | | | | 9.18 | | | | 9.48 | | | | (0.33 | ) | | | (3.54 | ) | | | (3.87 | ) | | | 50.85 | | | | 21.62 | | | | 487,576 | | | | 0.93 | | | | 0.93 | | | | 0.66 | | | | 80 | |
IC | | | 45.45 | | | | 0.19 | | | | 9.20 | | | | 9.39 | | | | (0.22 | ) | | | (3.54 | ) | | | (3.76 | ) | | | 51.08 | | | | 21.32 | | | | 39,361 | | | | 1.18 | | | | 1.18 | | | | 0.41 | | | | 80 | |
|
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 | |
|
| Hartford Disciplined Equity HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 15.97 | | | $ | 0.12 | | | $ | 2.64 | | | $ | 2.76 | | | $ | (0.06 | ) | | $ | (1.27 | ) | | $ | (1.33 | ) | | $ | 17.40 | | | | 18.04 | % | | $ | 2,701,619 | | | | 0.66 | % | | | 0.66 | % | | | 0.75 | % | | | 23 | % |
IB | | | 15.76 | | | | 0.08 | | | | 2.60 | | | | 2.68 | | | | (0.04 | ) | | | (1.27 | ) | | | (1.31 | ) | | | 17.13 | | | | 17.78 | | | | 365,246 | | | | 0.91 | | | | 0.91 | | | | 0.50 | | | | 23 | |
IC(6) | | | 15.34 | | | | 0.01 | | | | 2.08 | | | | 2.09 | | | | (0.03 | ) | | | — | | | | (0.03 | ) | | | 17.40 | | | | 13.60 | (7) | | | 78,487 | | | | 1.11 | (8) | | | 1.11 | (8) | | | 0.23 | (8) | | | 23 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Capital
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
|
| Hartford Disciplined Equity HLS Fund – (continued) | |
|
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 | |
|
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 | |
|
| Hartford Dividend and Growth HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 22.08 | | | $ | 0.40 | | | $ | 1.18 | | | $ | 1.58 | | | $ | (0.39 | ) | | $ | (1.08 | ) | | $ | (1.47 | ) | | $ | 22.19 | | | | 7.77 | % | | $ | 3,109,772 | | | | 0.68 | % | | | 0.68 | % | | | 1.95 | % | | | 24 | % |
IB | | | 21.96 | | | | 0.34 | | | | 1.16 | | | | 1.50 | | | | (0.34 | ) | | | (1.08 | ) | | | (1.42 | ) | | | 22.04 | | | | 7.45 | | | | 412,528 | | | | 0.93 | | | | 0.93 | | | | 1.70 | | | | 24 | |
|
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 | |
|
| Hartford Healthcare HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 23.67 | | | $ | 0.02 | | | $ | 4.94 | | | $ | 4.96 | | | $ | (0.13 | ) | | $ | (4.62 | ) | | $ | (4.75 | ) | | $ | 23.88 | | | | 23.10 | % | | $ | 190,371 | | | | 0.91 | % | | | 0.91 | % | | | 0.07 | % | | | 42 | % |
IB | | | 22.12 | | | | (0.04 | ) | | | 4.58 | | | | 4.54 | | | | (0.07 | ) | | | (4.62 | ) | | | (4.69 | ) | | | 21.97 | | | | 22.79 | | | | 43,662 | | | | 1.16 | | | | 1.16 | | | | (0.18 | ) | | | 42 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Capital
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
|
| Hartford International Opportunities HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 16.56 | | | $ | 0.10 | | | $ | 3.24 | | | $ | 3.34 | | | $ | (0.32 | ) | | $ | — | | | $ | (0.32 | ) | | $ | 19.58 | | | | 20.45 | % | | $ | 1,095,213 | | | | 0.76 | % | | | 0.76 | % | | | 0.61 | % | | | 107 | % |
IB | | | 16.80 | | | | 0.06 | | | | 3.27 | | | | 3.33 | | | | (0.27 | ) | | | — | | | | (0.27 | ) | | | 19.86 | | | | 20.09 | | | | 143,449 | | | | 1.01 | | | | 1.01 | | | | 0.36 | | | | 107 | |
|
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 | |
|
| Hartford MidCap HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 38.17 | | | $ | 0.03 | | | $ | 8.90 | | | $ | 8.93 | | | $ | (0.02 | ) | | $ | (3.64 | ) | | $ | (3.66 | ) | | $ | 43.44 | | | | 25.10 | % | | $ | 2,377,320 | | | | 0.70 | % | | | 0.70 | % | | | 0.07 | % | | | 50 | % |
IB | | | 36.90 | | | | (0.04 | ) | | | 8.54 | | | | 8.50 | | | | — | | | | (3.64 | ) | | | (3.64 | ) | | | 41.76 | | | | 24.80 | | | | 140,632 | | | | 0.95 | | | | 0.95 | | | | (0.11 | ) | | | 50 | |
|
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 | |
|
| Hartford Small Cap Growth HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 29.72 | | | $ | (0.02 | ) | | $ | 9.57 | | | $ | 9.55 | | | $ | — | | | $ | (1.12 | ) | | $ | (1.12 | ) | | $ | 38.15 | | | | 33.20 | % | | $ | 1,224,012 | | | | 0.67 | % | | | 0.67 | % | | | (0.07 | )% | | | 61 | % |
IB | | | 28.53 | | | | (0.09 | ) | | | 9.16 | | | | 9.07 | | | | — | | | | (1.12 | ) | | | (1.12 | ) | | | 36.48 | | | | 32.89 | | | | 201,033 | | | | 0.92 | | | | 0.92 | | | | (0.34 | ) | | | 61 | |
|
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 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Capital
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
|
| Hartford Small Cap Growth HLS Fund – (continued) | |
|
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 | |
|
| Hartford Small Company HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 20.45 | | | $ | (0.07 | ) | | $ | 10.38 | | | $ | 10.31 | | | $ | — | | | $ | (3.32 | ) | | $ | (3.32 | ) | | $ | 27.44 | | | | 55.52 | % | | $ | 540,764 | | | | 0.81 | % | | | 0.81 | % | | | (0.32 | )% | | | 105 | % |
IB | | | 18.44 | | | | (0.11 | ) | | | 9.22 | | | | 9.11 | | | | — | | | | (3.32 | ) | | | (3.32 | ) | | | 24.23 | | | | 55.03 | | | | 67,898 | | | | 1.06 | | | | 1.06 | | | | (0.56 | ) | | | 105 | |
|
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 | |
|
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 | (9) | | $ | 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 | (9) | | | 0.26 | | | | — | | | | (1.68 | ) | | | (1.68 | ) | | | 15.05 | | | | 1.81 | | | | 73,108 | | | | 1.01 | | | | 1.01 | | | | (0.34 | ) | | | 94 | |
|
| Hartford Stock HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 92.58 | | | $ | 1.39 | | | $ | 9.21 | | | $ | 10.60 | | | $ | (1.48 | ) | | $ | (6.18 | ) | | $ | (7.66 | ) | | $ | 95.52 | | | | 12.08 | % | | $ | 1,360,099 | | | | 0.52 | % | | | 0.52 | % | | | 1.57 | % | | | 15 | % |
IB | | | 92.57 | | | | 1.17 | | | | 9.17 | | | | 10.34 | | | | (1.25 | ) | | | (6.18 | ) | | | (7.43 | ) | | | 95.48 | | | | 11.79 | | | | 129,670 | | | | 0.77 | | | | 0.77 | | | | 1.32 | | | | 15 | |
|
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 | |
|
| Hartford Total Return Bond HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 11.44 | | | $ | 0.29 | | | $ | 0.73 | | | $ | 1.02 | | | $ | (0.45 | ) | | $ | (0.03 | ) | | $ | (0.48 | ) | | $ | 11.98 | | | | 9.03 | % | | $ | 2,110,986 | | | | 0.51 | % | | | 0.51 | % | | | 2.45 | % | | | 62 | %(10) |
IB | | | 11.38 | | | | 0.26 | | | | 0.72 | | | | 0.98 | | | | (0.42 | ) | | | (0.03 | ) | | | (0.45 | ) | | | 11.91 | | | | 8.71 | | | | 265,900 | | | | 0.76 | | | | 0.76 | | | | 2.19 | | | | 62 | (10) |
|
For the Year Ended December 31, 2019 | |
IA | | $ | 10.76 | | | $ | 0.36 | (11) | | $ | 0.77 | (11) | | $ | 1.13 | | | $ | (0.45 | ) | | $ | — | | | $ | (0.45 | ) | | $ | 11.44 | | | | 10.65 | % | | $ | 1,873,182 | | | | 0.51 | % | | | 0.51 | % | | | 3.16 | %(11) | | | 61 | % |
IB | | | 10.70 | | | | 0.33 | (11) | | | 0.77 | (11) | | | 1.10 | | | | (0.42 | ) | | | — | | | | (0.42 | ) | | | 11.38 | | | | 10.32 | | | | 214,338 | | | | 0.76 | | | | 0.76 | | | | 2.91 | (11) | | | 61 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights – (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | — Selected Per-Share Data(1) — | | | — Ratios and Supplemental Data — | |
Class | | Net Asset
Value at
Beginning
of Period | | | Net
Investment
Income
(Loss) | | | Net
Realized
and
Unrealized
Gain (Loss)
on
Investments | | | Total from
Investment
Operations | | | Dividends
from Net
Investment
Income | | | Distributions
from
Capital
Gains | | | Total
Dividends
and
Distributions | | | Net
Asset
Value at
End of
Period | | | Total
Return(2) | | | Net
Assets at
End of
Period
(000s) | | | Ratio of
Expenses
to
Average
Net
Assets
Before
Adjust-
ments | | | Ratio of
Expenses
to
Average
Net
Assets
After
Adjust-
ments | | | Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets | | | Portfolio
Turnover | |
|
| Hartford Total Return Bond HLS Fund – (continued) | |
|
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 | |
|
| Hartford Ultrashort Bond HLS Fund | |
|
For the Year Ended December 31, 2020 | |
IA | | $ | 10.19 | | | $ | 0.10 | | | $ | 0.05 | | | $ | 0.15 | | | $ | (0.25 | ) | | $ | — | | | $ | (0.25 | ) | | $ | 10.09 | | | | 1.44 | % | | $ | 657,375 | | | | 0.46 | % | | | 0.46 | % | | | 0.95 | % | | | 76 | % |
IB | | | 10.18 | | | | 0.07 | | | | 0.06 | | | | 0.13 | | | | (0.22 | ) | | | — | | | | (0.22 | ) | | | 10.09 | | | | 1.27 | | | | 110,250 | | | | 0.71 | | | | 0.71 | | | | 0.67 | | | | 76 | |
|
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 | |
|
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 | | | $ | — | (9) | | $ | 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 | (9) | | | 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 | |
| (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) | Portfolio turnover excludes TBA roll transactions. Had TBA roll transactions been included, the portfolio turnover rate would have been 48%. |
| (5) | FASB issued ASU 2017-08 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 a decrease 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. |
| (6) | Commenced operations on September 18, 2020. |
| (9) | Per share amount was not in accord with the net realized and unrealized gain (loss) for the period because of the timing of transactions in shares of the Fund and the amount and timing of per-share net realized and unrealized gain (loss) on such shares. |
| (10) | Portfolio turnover excludes TBA roll transactions. Had TBA roll transactions been included, the portfolio turnover rate would have been 564%. |
| (11) | FASB issued ASU 2017-08 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, 2020
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each, a “Company” and collectively, the “Companies”) are each an open-end registered management investment company comprised of eleven and one series, respectively, as of December 31, 2020. 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 Healthcare HLS Fund (the “Healthcare HLS Fund”)
Hartford International Opportunities HLS Fund (the “International Opportunities HLS Fund”)
Hartford MidCap HLS Fund (the “MidCap 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 HLS Series Fund II, Inc.:
Hartford Small Cap Growth HLS Fund (the “Small Cap Growth 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 diversified open-end management investment company. Each Fund applies specialized accounting and reporting standards under Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”
Each Fund has registered for sale Class IA and IB shares. Each of Capital Appreciation HLS Fund and Disciplined Equity HLS Fund also has registered for sale Class IC shares. Class IA and Class IB shares of each Fund are closed to certain investors. For more information, please see the Funds’ statutory prospectus dated May 1, 2020, as supplemented. Each class is offered at the per share net asset value (“NAV”) without a sales charge and is subject to the same expenses, except certain class specific expenses. Class IB shares are subject to distribution and service fees charged pursuant to a Distribution Plan adopted in accordance with Rule 12b-1 under the 1940 Act. Class IC shares are subject to distribution fees charged pursuant to a Distribution Plan adopted in accordance with Rule 12b-1 under the 1940 Act and Class IC shares are also subject to an administrative 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 on the New York Stock Exchange (the “Exchange”) (normally 4:00 p.m. Eastern Time) (the “NYSE Close”) on each day that the Exchange is open (“Valuation Date”). If the Exchange is closed due to weather or other extraordinary circumstances on a day it would typically be open for business, each Fund may treat such day as a typical business day and accept purchase and redemption orders and calculate each Fund’s NAV in accordance with applicable law. The NAV of each class of each Fund’s shares is determined by dividing the value of the Fund’s net assets attributable to a class of shares by the number of shares outstanding for that class. Information that becomes known to the Funds after the NAV has been calculated on a particular day will not generally be used to retroactively adjust the NAV determined earlier that day. |
| | b) | Investment Valuation and Fair Value Measurements – For purposes of calculating the NAV of each 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. |
Notes to Financial Statements – (continued)
December 31, 2020
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, redeem or exchange 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.
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 in open-end mutual funds, if any, are valued at the respective NAV of each open-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. Such open-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. |
| | • | | 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. |
Notes to Financial Statements – (continued)
December 31, 2020
| | • | | 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 the day-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’s sub-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 Value Summary and the Level 3 roll-forward reconciliation, if applicable, which follows each Fund’s Schedule of Investments.
| | 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 the ex-dividend date. In general, dividend income from foreign securities is recorded on the ex-date; however, dividend notifications in certain foreign jurisdictions may not be available in a timely manner and as a result, a Fund will record the dividend as soon as the relevant details (i.e., rate per share, payment date, shareholders of record, etc.) are publicly available. Interest income, including amortization of premium, accretion of discounts, inflation adjustments and additional principal received in-kind in lieu of cash, is accrued on a daily basis. Paydown gains and losses on mortgage-related and other asset-backed securities are included in interest income in the Statements of Operations, as applicable.
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 or unrealized gain (loss) 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 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 |
Notes to Financial Statements – (continued)
December 31, 2020
| | offered by a Fund has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets of the class of the Fund. Realized and unrealized gains and losses are allocated daily based on the relative net assets of each class of shares of each Fund. |
Orders for the purchase of a Fund’s shares received prior to the close of the Exchange on any day the Exchange is open for business are priced at the NAV determined as of the close of the Exchange. Orders received after the close of the Exchange, or on a day on which the Exchange and/or the Funds are not open for business, are priced at the next determined NAV.
Dividends are declared pursuant to a policy adopted by the respective Company’s Board of Directors. Dividends and/or distributions to shareholders are recorded on ex-date. The policy of each Fund is to pay dividends from net investment income and realized gains, if any, at least once a year. Income dividends and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP with respect to character and timing (see Federal Income Taxes: Distributions and Components of Distributable Earnings and Reclassification of Capital Accounts notes).
| 3. | Securities and Other Investments: |
| | a) | 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, 2020. |
In connection with a Fund’s ability to purchase investments on a when-issued or forward commitment basis, the Fund may enter into to-be announced (“TBA”) commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed-upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. Although a Fund may enter into TBA commitments with the intention of acquiring or delivering securities for its portfolio, the Fund can extend the settlement date, roll the transaction, or dispose of a commitment prior to settlement if deemed appropriate to do so. If the TBA commitment is closed through the acquisition of an offsetting TBA commitment, a Fund realizes a gain or loss. In a TBA roll transaction, a Fund generally purchases or sells the initial TBA commitment prior to the agreed upon settlement date and enters into a new TBA commitment for future delivery or receipt of the mortgage-backed securities. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date. These transactions are excluded from a Fund’s portfolio turnover rate. See each Fund’s Schedule of Investments, if applicable, for TBA commitments as of December 31, 2020.
| | 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 to non-payment of income, which would result in a reduction of income to a Fund, and there can be no assurance that the liquidation of any collateral would satisfy the Borrower’s obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated. See each Fund’s Schedule of Investments, if applicable, for outstanding senior floating rate interests as of December 31, 2020.
| | 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 |
Notes to Financial Statements – (continued)
December 31, 2020
| | 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, 2020. |
| | 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, 2020. |
| | f) | Repurchase Agreements – A repurchase agreement is an agreement between two parties whereby one party sells the other a security at a specified price with a commitment to repurchase the security later at an agreed-upon price, date and interest payment. Each Fund is permitted to enter into fully collateralized repurchase agreements. Each Company’s Board of Directors has delegated to the sub-adviser the responsibility of evaluating the creditworthiness of the banks and securities dealers with which the Funds will engage in repurchase agreements. The sub-adviser will monitor such transactions to ensure that the value of underlying collateral will be at least equal to the total amount of the repurchase obligation as required by the valuation provision of the repurchase agreement, including the accrued interest. Repurchase agreements carry the risk that the market value of the securities declines below the repurchase price. A Fund could also lose money if it is unable to recover the securities and the value of any collateral held or assets segregated by the Fund to cover the transaction is less than the value of the securities. In the event the borrower commences bankruptcy proceedings, a court may characterize the transaction as a loan. If a Fund has not perfected a security interest in the underlying collateral, the Fund may be required to return the underlying collateral to the borrower’s estate and be treated as an unsecured creditor. As an unsecured creditor, the Fund could lose some or all of the principal and interest involved in the transaction. See each Fund’s Schedule of Investments, if applicable, for repurchase agreements as of December 31, 2020. |
| | g) | Special Purpose Acquisition Companies – Special purpose acquisition companies (“SPACs”) are collective investment structures that allow for private investments in public equity investments (“PIPE”). SPACs, sometimes referred to “blank-check” companies, do not have an operating history but conduct an initial public offering (“IPO”) the proceeds of which are held in a trust account and used to finance an acquisition of a business or assets. Following the IPO but prior to finalizing the merger or purchase agreement, the SPAC often will raise additional capital through committed debt or equity financing, the latter of which is often structured as a PIPE commitment. Purchased PIPE shares will be restricted from trading until the registration statement for the shares is declared effective. Upon registration, the shares can be freely sold; however, in certain circumstances, the issuer may have the right to temporarily suspend trading of the shares in the first year after the merger. The securities issued by a SPAC, which are typically traded in the over-the-counter market, may be considered illiquid, more difficult to value, and/or be subject to restrictions on resale. The Small Company HLS Fund had contingent commitments outstanding of approximately $3,168,000 to purchase PIPE shares as of December 31, 2020. |
| 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 of period-end are disclosed in the notes to the Schedules of Investments, if applicable. The amounts of realized gains and losses and changes in unrealized gains and losses on derivative instruments during the period are disclosed in the Statements of Operations.
| | a) | Foreign Currency Contracts – A Fund may enter into foreign currency contracts that obligate the Fund to purchase or sell currencies at specified future dates. Foreign currency contracts may be used in connection with settling purchases or sales of securities to hedge the currency exposure associated with some or all of a Fund’s investments and/or as part of an investment strategy. Foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. A Fund will record a realized gain or loss when the foreign currency contract is settled. |
Notes to Financial Statements – (continued)
December 31, 2020
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, 2020, each of Capital Appreciation 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, 2020, each of Balanced HLS Fund, Capital Appreciation HLS Fund and Total Return Bond 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 contracts are either over-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, 2020, 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 the over-the-counter market (“OTC swaps”) or cleared through a central counterparty or derivatives clearing organization (“centrally cleared swaps”). A Fund may enter into credit default, total return, cross-currency, interest rate, inflation and other forms of swap contracts to manage its exposure to credit, currency, interest rate, commodity and inflation risk. Swap contracts are also used to gain exposure to certain markets. In connection with these contracts, investments or cash may be identified as collateral or margin in accordance with the terms of the respective swap contracts and/or master netting arrangement to provide assets of value and recourse in the event of default or bankruptcy/insolvency. |
Swaps are valued 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
Notes to Financial Statements – (continued)
December 31, 2020
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.
Credit Default Swap Contracts – The credit default swap market allows a Fund to manage credit risk through buying and selling credit protection on a specific issuer, asset or basket of assets. Certain credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying investment or index in the event of a credit event, such as payment default or bankruptcy.
Under a credit default swap contract, one party acts as guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying investment at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statements of Operations. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of certain events. Although specified events are contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. A “seller’s” exposure is limited to the total notional amount of the credit default swap contract. These potential amounts would be partially offset by any recovery values of the respective referenced obligations or upfront payments received upon entering into the contract.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap contracts on corporate issues, sovereign government issues or U.S. municipal issues as of year-end are disclosed in the notes to the Schedules of Investments, as applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and there may also be upfront payments required to be made to enter into the contract. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced equity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract.
During the year ended December 31, 2020, each of Balanced 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.
Notes to Financial Statements – (continued)
December 31, 2020
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, 2020, Total Return Bond HLS Fund had used Interest Rate 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | |
Unrealized appreciation on futures contracts(1) | | $ | 1,844 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,844 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (depreciation) on futures contracts(1) | | $ | 10,852 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 10,852 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (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. |
The Effect of Derivative Instruments on the Statement of Operations for the year ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
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 | | $ | 499,144 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 499,144 | |
Net realized gain (loss) on swap contracts | | | — | | | | — | | | | (371,871 | ) | | | — | | | | — | | | | — | | | | (371,871 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 499,144 | | | $ | — | | | $ | (371,871 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 127,273 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | 139,161 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 139,161 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 139,161 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 139,161 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020, the average monthly 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 | | | 68 | |
Futures Contracts Short at Number of Contracts | | | (18 | ) |
Swap Contracts at Notional Amount | | $ | 2,050,833 | |
Notes to Financial Statements – (continued)
December 31, 2020
Capital Appreciation HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(1) | | $ | — | | | $ | — | | | $ | — | | | $ | 1,906,125 | | | $ | — | | | $ | — | | | $ | 1,906,125 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | — | | | $ | — | | | $ | 1,906,125 | | | $ | — | | | $ | — | | | $ | 1,906,125 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Amount represents the cumulative appreciation 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
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 | | $ | — | | | $ | — | | | $ | — | | | $ | (2,672,692 | ) | | $ | — | | | $ | — | | | $ | (2,672,692 | ) |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 92,912 | | | | — | | | | — | | | | — | | | | — | | | | 92,912 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | 92,912 | | | $ | — | | | $ | (2,672,692 | ) | | $ | — | | | $ | — | | | $ | (2,579,780 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 2,088,298 | | | $ | — | | | $ | — | | | $ | 2,088,298 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | (92,912 | ) | | | — | | | | — | | | | — | | | | — | | | | (92,912 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (92,912 | ) | | $ | — | | | $ | 2,088,298 | | | $ | — | | | $ | — | | | $ | 1,995,386 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020, the average monthly 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 | | | 249 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 1,583,360 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 1,598,845 | |
Total Return Bond HLS Fund
The Effect of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Commodity
Contracts | | | Other
Contracts | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value (purchased options), market value | | $ | 113,916 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 113,916 | |
Unrealized appreciation on futures contracts(1) | | | 1,113,247 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,113,247 | |
Unrealized appreciation on foreign currency contracts | | | — | | | | 8,056 | | | | — | | | | — | | | | — | | | | — | | | | 8,056 | |
Unrealized appreciation on swap contracts(2) | | | 185,469 | | | | — | | | | 3,326,841 | | | | — | | | | — | | | | — | | | | 3,512,310 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,412,632 | | | $ | 8,056 | | | $ | 3,326,841 | | | $ | — | | | $ | — | | | $ | — | | | $ | 4,747,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (depreciation) on futures contracts(1) | | $ | 259,175 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 259,175 | |
Unrealized (depreciation) on foreign currency contracts | | | — | | | | 449,481 | | | | — | | | | — | | | | — | | | | — | | | | 449,481 | |
Written options, market value | | | 423,464 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 423,464 | |
Unrealized (depreciation) on swap contracts(2) | | | 113,015 | | | | — | | | | 5,097,686 | | | | — | | | | — | | | | — | | | | 5,210,701 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 795,654 | | | $ | 449,481 | | | $ | 5,097,686 | | | $ | — | | | $ | — | | | $ | — | | | $ | 6,342,821 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2020
Total Return Bond HLS Fund – (continued)
| | (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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Risk Exposure Category | |
| | | Interest Rate
Contracts | | | Foreign
Currency
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 | | $ | 1,719,709 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,719,709 | |
Net realized gain (loss) on futures contracts | | | 11,244,850 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 11,244,850 | |
Net realized gain (loss) on written options contracts | | | 14,278,353 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 14,278,353 | |
Net realized gain (loss) on swap contracts | | | (28,990,773 | ) | | | — | | | | (16,198,793 | ) | | | — | | | | — | | | | — | | | | (45,189,566 | ) |
Net realized gain (loss) on foreign currency contracts | | | — | | | | 2,250,235 | | | | — | | | | — | | | | — | | | | — | | | | 2,250,235 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (1,747,861 | ) | | $ | 2,250,235 | | | $ | (16,198,793 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (15,696,419 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
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 | | $ | 202,141 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 202,141 | |
Net change in unrealized appreciation (depreciation) of futures contracts | | | 2,192,242 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,192,242 | |
Net change in unrealized appreciation (depreciation) of written options contracts | | | 111,460 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 111,460 | |
Net change in unrealized appreciation (depreciation) of swap contracts | | | 6,288,352 | | | | — | | | | (3,269,750 | ) | | | — | | | | — | | | | — | | | | 3,018,602 | |
Net change in unrealized appreciation (depreciation) of foreign currency contracts | | | — | | | | 446,872 | | | | — | | | | — | | | | — | | | | — | | | | 446,872 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8,794,195 | | | $ | 446,872 | | | $ | (3,269,750 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | 5,971,317 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020, the average monthly 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 | | | 19,164,167 | |
Futures Contracts Long at Number of Contracts | | | 2,249 | |
Futures Contracts Short at Number of Contracts | | | (1,120 | ) |
Written Options Contracts at Number of Contracts | | | (478,819,833 | ) |
Swap Contracts at Notional Amount | | $ | 2,619,375,696 | |
Foreign Currency Contracts Purchased at Contract Amount | | $ | 7,389,893 | |
Foreign Currency Contracts Sold at Contract Amount | | $ | 51,324,129 | |
| | 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. |
Notes to Financial Statements – (continued)
December 31, 2020
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, 2020:
Balanced HLS Fund
| | | | | | | | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 1,844 | | | $ | (10,852 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 1,844 | | | | (10,852 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (1,844 | ) | | | 10,852 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
Capital Appreciation HLS Fund
| | | | | | | | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Futures contracts | | $ | 1,906,125 | | | $ | — | |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 1,906,125 | | | | — | |
| | | | | | | | |
Derivatives not subject to a MNA | | | (1,906,125 | ) | | | — | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | — | | | $ | — | |
| | | | | | | | |
Total Return Bond HLS Fund
| | | | | | | | |
Derivative Financial Instruments: | | Assets | | | Liabilities | |
Foreign currency contracts | | $ | 8,056 | | | $ | (449,481 | ) |
Futures contracts | | | 1,113,247 | | | | (259,175 | ) |
Purchased options | | | 113,916 | | | | — | |
Swap contracts | | | 3,512,310 | | | | (5,210,701 | ) |
Written options | | | — | | | | (423,464 | ) |
| | | | | | | | |
Total gross amount of derivative assets and liabilities in the Statement of Assets and Liabilities | | | 4,747,529 | | | | (6,342,821 | ) |
| | | | | | | | |
Derivatives not subject to a MNA | | | (4,557,688 | ) | | | 579,103 | |
| | | | | | | | |
Total gross amount of assets and liabilities subject to MNA or similar agreements | | $ | 189,841 | | | $ | (5,763,718 | ) |
| | | | | | | | |
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 | |
Bank of America Securities LLC | | $ | 67,869 | | | $ | (67,869 | ) | | $ | — | | | $ | — | | | $ | — | |
Goldman Sachs & Co. | | | 8,056 | | | | (8,056 | ) | | | — | | | | — | | | | — | |
UBS AG | | | 113,916 | | | | — | | | | — | | | | — | | | | 113,916 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 189,841 | | | $ | (75,925 | ) | | $ | — | | | $ | — | | | $ | 113,916 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
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 America Securities LLC | | $ | (192,511 | ) | | $ | 67,869 | | | $ | — | | | $ | — | | | $ | (124,642 | ) |
Barclays | | | (211,353 | ) | | | — | | | | — | | | | — | | | | (211,353 | ) |
BNP Paribas Securities Services | | | (116,021 | ) | | | — | | | | — | | | | — | | | | (116,021 | ) |
Credit Suisse International | | | (1,031,873 | ) | | | — | | | | 1,031,873 | | | | — | | | | — | |
Deutsche Bank Securities, Inc. | | | (304,992 | ) | | | — | | | | 304,992 | | | | — | | | | — | |
Goldman Sachs & Co. | | | (1,879,199 | ) | | | 8,056 | | | | 1,871,143 | | | | — | | | | — | |
JP Morgan Chase & Co. | | | (422,902 | ) | | | — | | | | — | | | | — | | | | (422,902 | ) |
Morgan Stanley | | | (1,577,095 | ) | | | — | | | | 937,095 | | | | 640,000 | | | | — | |
Toronto-Dominion Bank | | | (27,772 | ) | | | — | | | | — | | | | — | | | | (27,772 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | (5,763,718 | ) | | $ | 75,925 | | | $ | 4,145,103 | | | $ | 640,000 | | | $ | (902,690 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | * | In some instances, the actual collateral received and/or pledged may be more than the amount shown. |
Notes to Financial Statements – (continued)
December 31, 2020
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.
A widespread health crisis, such as a global pandemic, could cause substantial market volatility, exchange trading suspensions or restrictions and closures of securities exchanges and businesses, impact the ability to complete redemptions, and adversely impact Fund performance. The current ongoing outbreak of COVID-19, a respiratory disease caused by a novel coronavirus, has negatively affected the worldwide economy, the financial health of individual companies and the market in significant and unforeseen ways. The future impact of the ongoing COVID-19 pandemic remains unclear. The effects to public health, business and market conditions resulting from COVID-19 pandemic may have a significant negative impact on the performance of a Fund’s investments, including exacerbating other pre-existing political, social and economic risks.
Certain investments held by a Fund expose the Fund to various risks which may include, but are not limited to, interest rate, prepayment, and extension risks. Interest rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. As nominal interest rates rise, the values of certain fixed income securities held by a Fund are likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. Senior floating rate interests and securities subject to prepayment and extension risk generally offer less potential for gains when interest rates decline. Rising interest rates may cause prepayments to occur at a slower than expected rate, thereby effectively lengthening the maturity of the security and making the security more sensitive to interest rate changes. Prepayment and extension risk are major risks of mortgage-backed securities, senior floating rate interests and certain asset-backed securities. For certain asset-backed securities, the actual maturity may be less than the stated maturity shown in the Schedule of Investments, if applicable. As a result, the timing of income recognition relating to these securities may vary based upon the actual maturity.
Investing in the securities of non-U.S. issuers, whether directly or indirectly, involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations; imposition of restrictions on the expatriation of funds or other protectionist measures; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; and greater social, economic and political uncertainties. Non-U.S. issuers may also be affected by political, social, economic or diplomatic developments in a foreign country or region or the U.S. (including the imposition of sanctions, tariffs, or other governmental restrictions). These risks are heightened for investments in issuers from countries with less developed markets.
Securities lending involves the risk that a Fund may lose money because the borrower of the loaned securities fails to return the securities in a timely manner or at all. A Fund could also lose money in the event of a decline in the value of the collateral provided for the loaned securities or a decline in the value of any investments made with cash collateral. These events could also trigger adverse tax consequences for a Fund that lends its holdings.
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 Fund may invest in certain debt securities, derivatives or other financial instruments that utilize one or more London Interbank Offered Rates (collectively, “LIBOR”), as a “benchmark” or “reference rate” for various interest rate calculations. The use of certain LIBORs is expected to be phased out by the end of 2021. However, it is possible that certain LIBORs may continue beyond 2021 and the most widely used LIBORs may continue until mid-2023. There remains uncertainty regarding the future use of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on a Fund or the LIBOR-based instruments in which the Fund invests cannot yet be determined. The transition process away from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR. The transition process may also result in a reduction in the value of certain instruments held by a Fund or reduce the effectiveness of related Fund transactions, such as hedges. Volatility, the potential reduction in value, and/or the hedge effectiveness of financial instruments may be heightened for financial instruments that do not include fallback provisions that address the cessation of LIBOR. Any potential effects of the transition away from LIBOR on the Fund or on financial instruments in which a Fund invests, as well as other unforeseen effects, could result
Notes to Financial Statements – (continued)
December 31, 2020
in losses to the Fund. Since the usefulness of LIBOR as a benchmark or reference rate could deteriorate during the transition period, these effects could occur prior to and/or subsequent to the end of 2021 with respect to certain LIBORs or mid-2023 for the remaining LIBORs.
| | 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, 2020. 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, losses deferred due to straddle adjustments 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. |
| | c) | Distributions and Components of Distributable Earnings – The tax character of distributions paid by each Fund for the years ended December 31, 2020 and December 31, 2019 are as follows: |
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2020 | | | For the Year Ended
December 31, 2019 | |
Fund | | Ordinary
Income | | | Long-Term
Capital Gains | | | Ordinary
Income | | | Long-Term
Capital Gains | |
Balanced HLS Fund | | $ | 50,832,628 | | | $ | 82,166,849 | | | $ | 42,007,653 | | | $ | 167,293,542 | |
Capital Appreciation HLS Fund | | | 191,666,268 | | | | 149,892,137 | | | | 99,015,169 | | | | 413,992,165 | |
Disciplined Equity HLS Fund | | | 9,178,888 | | | | 47,141,948 | | | | 8,181,434 | | | | 67,970,111 | |
Dividend and Growth HLS Fund | | | 60,331,989 | | | | 152,515,057 | | | | 58,525,929 | | | | 373,240,761 | |
Healthcare HLS Fund | | | 5,101,511 | | | | 35,703,139 | | | | 136,553 | | | | 28,725,129 | |
International Opportunities HLS Fund | | | 20,163,134 | | | | — | | | | 21,562,148 | | | | 44,838,605 | |
MidCap HLS Fund | | | 40,062,076 | | | | 143,809,510 | | | | 4,865,029 | | | | 304,988,085 | |
Small Cap Growth HLS Fund | | | 10,977,025 | | | | 34,449,490 | | | | 47,675,414 | | | | 169,755,491 | |
Small Company HLS Fund | | | 24,748,672 | | | | 41,105,971 | | | | 14,521,011 | | | | 96,371,188 | |
Stock HLS Fund | | | 25,949,611 | | | | 89,865,458 | | | | 29,221,971 | | | | 116,547,978 | |
Total Return Bond HLS Fund | | | 81,659,949 | | | | — | | | | 82,153,678 | | | | — | |
Ultrashort Bond HLS Fund | | | 10,528,950 | | | | — | | | | 8,913,051 | | | | — | |
As of December 31, 2020, the components of total accumulated earnings (deficit) for each Fund on a tax basis are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gain | | | Accumulated
Capital and
Other Losses | | | Other
Temporary
Differences | | | Unrealized
Appreciation
(Depreciation)
on Investments | | | Total
Accumulated
Earnings
(Deficit) | |
Balanced HLS Fund | | $ | 14,144,922 | | | $ | 82,762,798 | | | $ | — | | | $ | (648,762 | ) | | $ | 543,675,965 | | | $ | 639,934,923 | |
Capital Appreciation HLS Fund | | | 40,432,623 | | | | 205,129,505 | | | | — | | | | — | | | | 1,127,581,430 | | | | 1,373,143,558 | |
Disciplined Equity HLS Fund | | | 8,365,200 | | | | 42,068,698 | | | | — | | | | — | | | | 811,118,561 | | | | 861,552,459 | |
Dividend and Growth HLS Fund | | | 852,039 | | | | 149,852,799 | | | | — | | | | — | | | | 1,229,997,821 | | | | 1,380,702,659 | |
Healthcare HLS Fund | | | 7,027,038 | | | | 15,725,379 | | | | — | | | | — | | | | 73,218,683 | | | | 95,971,100 | |
International Opportunities HLS Fund | | | 12,158,249 | | | | — | | | | (30,718,898 | ) | | | — | | | | 345,467,352 | | | | 326,906,703 | |
MidCap HLS Fund | | | 19,629,633 | | | | 294,531,013 | | | | — | | | | 1 | | | | 707,767,114 | | | | 1,021,927,761 | |
Small Cap Growth HLS Fund | | | 54,446,050 | | | | 60,981,286 | | | | — | | | | — | | | | 505,042,189 | | | | 620,469,525 | |
Small Company HLS Fund | | | 43,713,662 | | | | 39,671,273 | | | | — | | | | — | | | | 191,870,414 | | | | 275,255,349 | |
Stock HLS Fund | | | 2,202,174 | | | | 49,235,226 | | | | — | | | | — | | | | 578,068,924 | | | | 629,506,324 | |
Total Return Bond HLS Fund | | | 113,820,691 | | | | — | | | | — | | | | (2,095,947 | ) | | | 89,878,339 | | | | 201,603,083 | |
Ultrashort Bond HLS Fund | | | 4,981,734 | | | | — | | | | (11,141,138 | ) | | | — | | | | 2,236,161 | | | | (3,923,243 | ) |
| | 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 adjustments to prior year accumulated balances, adjustments due to mergers and redemption in-kind transactions. 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 |
Notes to Financial Statements – (continued)
December 31, 2020
| | from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2020, the Funds recorded reclassifications to increase (decrease) the accounts listed below: |
| | | | | | | | |
Fund | | Capital
Stock and
Paid-in-Capital | | | Distributable
Earnings (Loss) | |
Balanced HLS Fund | | $ | (13,100 | ) | | $ | 13,100 | |
Capital Appreciation HLS Fund | | | (22,508 | ) | | | 22,508 | |
Disciplined Equity HLS Fund | | | 9,717,981 | | | | (9,717,981 | ) |
Dividend and Growth HLS Fund | | | 2,039,343 | | | | (2,039,343 | ) |
MidCap HLS Fund | | | 1,122,851 | | | | (1,122,851 | ) |
Small Company HLS Fund | | | (3,911,727 | ) | | | 3,911,727 | |
Total Return Bond HLS Fund | | | 17,079,873 | | | | (17,079,873 | ) |
Ultrashort Bond HLS Fund | | | 10,811,447 | | | | (10,811,447 | ) |
| | e) | Tax Basis of Investments – The aggregate cost of investments for federal income tax purposes at December 31, 2020 is different from book purposes primarily due to wash sale loss deferrals, Passive Foreign Investment Companies (“PFICs”) mark-to market adjustments, partnership adjustments and non-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 and 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 | | $ | 1,513,641,139 | | | $ | 556,711,594 | | | $ | (13,104,249 | ) | | $ | 543,607,345 | |
Capital Appreciation HLS Fund | | | 3,414,311,949 | | | | 1,180,937,655 | | | | (53,337,865 | ) | | | 1,127,599,790 | |
Disciplined Equity HLS Fund | | | 2,335,390,341 | | | | 820,035,017 | | | | (8,952,239 | ) | | | 811,082,778 | |
Dividend and Growth HLS Fund | | | 2,273,721,479 | | | | 1,264,586,186 | | | | (34,602,870 | ) | | | 1,229,983,316 | |
Healthcare HLS Fund | | | 160,328,999 | | | | 76,654,016 | | | | (3,438,482 | ) | | | 73,215,534 | |
International Opportunities HLS Fund | | | 886,760,295 | | | | 347,879,297 | | | | (2,528,121 | ) | | | 345,351,176 | |
MidCap HLS Fund | | | 1,820,720,037 | | | | 725,053,322 | | | | (17,286,208 | ) | | | 707,767,114 | |
Small Cap Growth HLS Fund | | | 924,812,753 | | | | 532,018,004 | | | | (26,975,815 | ) | | | 505,042,189 | |
Small Company HLS Fund | | | 421,922,203 | | | | 199,308,731 | | | | (7,438,317 | ) | | | 191,870,414 | |
Stock HLS Fund | | | 909,343,254 | | | | 578,044,283 | | | | — | | | | 578,044,283 | |
Total Return Bond HLS Fund | | | 2,842,241,691 | | | | 126,789,074 | | | | (36,882,459 | ) | | | 89,906,615 | |
Ultrashort Bond HLS Fund | | | 763,558,314 | | | | 2,331,056 | | | | (94,895 | ) | | | 2,236,161 | |
| | 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. |
At December 31, 2020 (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 | |
International Opportunities HLS Fund | | $ | 30,718,898 | | | $ | — | |
Ultrashort Bond HLS Fund | | | 51,233 | | | | 11,089,905 | |
Balanced HLS Fund, Capital Appreciation HLS Fund, Disciplined Equity HLS Fund, Dividend and Growth HLS Fund, Healthcare HLS Fund, MidCap HLS Fund, Small Cap Growth HLS Fund, Small Company HLS Fund and Stock HLS Fund had no capital loss carryforwards for U.S. federal income tax purposes as of December 31, 2020.
During the year ended December 31, 2020, the Total Return Bond HLS Fund and Ultrashort HLS Fund utilized $17,169,893 and $248,103 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, 2020, 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, 2020, 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. |
Notes to Financial Statements – (continued)
December 31, 2020
| | a) | Investment Management Agreement – HFMC serves as each Fund’s investment manager. Each Company, on behalf of its respective Funds has entered into an Investment Management Agreement with HFMC. HFMC is an indirect subsidiary of The Hartford Financial Services Group, Inc. (“The Hartford”). HFMC has overall investment supervisory responsibility for each Fund. In addition, HFMC provides administrative personnel, services, equipment, facilities and office space for proper operation of each Fund. HFMC has contracted with Wellington Management Company LLP (“Wellington Management”) under a sub-advisory agreement and Wellington Management performs the daily investment of the assets of each Fund, in accordance with the Fund’s investment objective and policies. HFMC pays a sub-advisory fee to Wellington Management out of its management fee. |
The schedule below reflects the rates of compensation paid to HFMC for investment management services rendered as of December 31, 2020; 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(1) | | 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 | | 0.6000% on first $1 billion and; |
| | 0.5500% on next $4 billion and; |
| | 0.5300% on next $5 billion and; |
| | 0.5000% over $10 billion |
| |
Dividend and Growth 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 |
| |
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 |
| |
International Opportunities HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $1.5 billion and; |
| | 0.6200% on next $2.5 billion and; |
| | 0.6150% on next $5 billion and; |
| | 0.6100% over $10 billion |
| |
MidCap HLS Fund | | 0.7750% on first $250 million and; |
| | 0.7250% on next $250 million and; |
| | 0.6750% on next $500 million and; |
| | 0.6250% on next $4 billion and; |
| | 0.6225% on next $5 billion and; |
| | 0.6200% over $10 billion |
| |
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 |
Notes to Financial Statements – (continued)
December 31, 2020
| | |
Fund | | Management Fee Rates |
| |
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 |
| | (1) | HFMC contractually agreed to waive investment management fees of 0.03% of average daily net assets until April 30, 2021, for the Balanced HLS Fund. |
From January 1, 2020 through September 17, 2020, the Disciplined Equity HLS Fund paid the rate set forth below to HFMC for investment management services rendered. The rate was accrued daily and paid monthly based on the Disciplined Equity HLS Fund’s average daily net assets.
| | |
Disciplined Equity HLS Fund | | 0.7500% on first $250 million and; |
| | 0.6500% on next $250 million and; |
| | 0.6000% on next $500 million and; |
| | 0.5800% on next $4 billion and; |
| | 0.5700% on next $5 billion and; |
| | 0.5600% over $10 billion |
From January 1, 2020 through September 17, 2020, the Dividend and Growth HLS Fund paid the rate set forth below to HFMC for investment management services rendered. The rate was accrued daily and paid monthly based on the Dividend and Growth HLS Fund’s average daily net assets.
| | |
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 |
| | b) | Accounting Services Agreement – HFMC provides the Funds with accounting services pursuant to a fund accounting agreement by and between each Company, on behalf of its respective Funds, and HFMC. HFMC has delegated certain accounting and administrative service functions to State Street Bank and Trust Company (“State Street”). In consideration of services rendered and expenses assumed pursuant to the fund accounting agreement, each Fund pays HFMC a fee. Effective January 1, 2020, the fund accounting agreement with respect to each Fund was modified to reflect a new fee structure. Under this revised fee structure, HFMC is entitled to receive the following fee with respect to each Fund: the sub-accounting fee payable by HFMC to State Street plus the amount of expenses that HFMC allocates for providing the fund accounting services. |
| | 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 Hartford Small Cap Growth HLS Fund, and Hartford Series Fund, Inc., on behalf of its series except Total Return Bond HLS Fund and Ultrashort Bond HLS Fund, have entered into agreements with State Street Global Markets, LLC and Russell Implementation Services, Inc. to partially recapture non-discounted trade commissions. Such rebates are used to pay a portion of the Funds’ expenses. For the year ended December 31, 2020, these amounts, if any, are included in the Statements of Operations. |
Notes to Financial Statements – (continued)
December 31, 2020
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 | | | 0.66 | % | | | 0.91 | % | | | 1.11 | % |
Dividend and Growth HLS Fund | | | 0.68 | % | | | 0.93 | % | | | N/A | |
Healthcare HLS Fund | | | 0.91 | % | | | 1.16 | % | | | N/A | |
International Opportunities HLS Fund | | | 0.76 | % | | | 1.01 | % | | | N/A | |
MidCap HLS Fund | | | 0.70 | % | | | 0.95 | % | | | N/A | |
Small Cap Growth HLS Fund | | | 0.67 | % | | | 0.92 | % | | | N/A | |
Small Company HLS Fund | | | 0.80 | % | | | 1.06 | % | | | N/A | |
Stock HLS Fund | | | 0.52 | % | | | 0.77 | % | | | N/A | |
Total Return Bond HLS Fund | | | 0.51 | % | | | 0.76 | % | | | N/A | |
Ultrashort Bond HLS Fund | | | 0.46 | % | | | 0.71 | % | | | 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 Rule 12b-1 of the 1940 Act for Class IB shares and Hartford Series Fund, Inc., on behalf of certain Funds, has adopted a Distribution Plan pursuant to Rule 12b-1 of the 1940 Act for Class IC shares. |
Pursuant to the Class IB Distribution Plans, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets of the Fund attributable to its Class IB shares for distribution financing activities and shareholder account servicing activities. The entire amount of the fee may be used for shareholder servicing expenses and/or distribution expenses. Pursuant to the Class IC Distribution Plans, a Fund may pay HFD a fee of up to 0.25% of the average daily net assets of the Fund attributable to its Class IC shares for distribution financing activities.
Each Board has the authority to suspend or reduce these payments at any point in time. The distribution fees paid during the period can be found on the Statements of Operations. Each Fund’s 12b-1 fees are accrued daily and paid monthly or at such other intervals as the respective Company’s Board of Directors may determine.
| | f) | Administrative Services Fee for Class IC Shares – Certain Funds may pay an administrative services fee to third party insurance companies annually up to 0.25% of the average daily net assets of the Fund attributable to its Class IC shares for recordkeeping and/or other administrative services provided to such Class IC shares. The total administrative services fees paid during the period are shown on the Statements of Operations. These fees are accrued daily and paid monthly. |
| | g) | Other Related Party Transactions – Certain officers of each Company are directors and/or officers of HFMC and/or The Hartford or its subsidiaries. For the year ended December 31, 2020, a portion of each Company’s Chief Compliance Officer’s (“CCO”) compensation was paid by all of the investment companies in the Hartford fund complex. The portion allocated to each Fund, as represented in other expenses on the Statements of Operations, is outlined in the table below. |
| | | | |
Fund | | CCO Compensation
Paid by Fund | |
Balanced HLS Fund | | $ | 4,351 | |
Capital Appreciation HLS Fund | | | 9,169 | |
Disciplined Equity HLS Fund | | | 1,351 | |
Dividend and Growth HLS Fund | | | 6,586 | |
Healthcare HLS Fund | | | 499 | |
International Opportunities HLS Fund | | | 2,471 | |
MidCap HLS Fund | | | 4,307 | |
Small Cap Growth HLS Fund | | | 2,753 | |
Small Company HLS Fund | | | 1,093 | |
Stock HLS Fund | | | 3,097 | |
Total Return Bond HLS Fund | | | 4,595 | |
Ultrashort Bond HLS Fund | | | 969 | |
Hartford Administrative Services Company (“HASCO”), an indirect subsidiary of The Hartford, provides transfer agent services to each Fund. Pursuant to a sub-transfer agency agreement between HASCO and 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.
Notes to Financial Statements – (continued)
December 31, 2020
For the year ended December 31, 2020, 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 | %* | | | 0.00 | %* |
Dividend and Growth HLS Fund | | | 0.00 | %* | | | 0.00 | %* | | | N/A | |
Healthcare 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 | |
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 | |
| | * | Percentage rounds to zero |
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. and non-U.S. markets in an amount not to exceed one-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; and 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 Fund could lose money in the event of a decline in the value of the collateral provided for loaned securities or a decline in the value of any investments made with cash collateral; (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, 2020.
| | | | | | | | | | | | |
Fund | | Investment Securities on Loan, at market value,
Presented on the Statements of Assets and Liabilities(1) | | | Collateral Posted by Borrower(2) | | | Net Amount(3) | |
Balanced HLS Fund | | $ | 15,053,195 | | | $ | (15,053,195 | ) | | $ | — | |
Capital Appreciation HLS Fund | | | 28,051,833 | | | | (28,051,833 | ) | | | — | |
Disciplined Equity HLS Fund | | | — | | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | | | | — | |
Healthcare HLS Fund | | | 1,700,789 | | | | (1,700,789 | ) | | | — | |
International Opportunities HLS Fund | | | — | | | | — | | | | — | |
MidCap HLS Fund | | | 16,771,175 | | | | (16,771,175 | ) | | | — | |
Small Cap Growth HLS Fund | | | 10,859,571 | | | | (10,859,571 | ) | | | — | |
Small Company HLS Fund | | | 10,891,496 | | | | (10,891,496 | ) | | | — | |
Stock HLS Fund | | | — | | | | — | | | | — | |
Total Return Bond HLS Fund | | | 7,552,753 | | | | (7,552,753 | ) | | | — | |
Ultrashort Bond HLS Fund | | | — | | | | — | | | | — | |
| | (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) | Collateral received in excess of the market value of securities on loan is not presented in this table. |
| | (3) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
Notes to Financial Statements – (continued)
December 31, 2020
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 | | $ | 15,133,986 | | | $ | — | |
Capital Appreciation HLS Fund | | | 29,221,273 | | | | 702,594 | |
Disciplined Equity HLS Fund | | | — | | | | — | |
Dividend and Growth HLS Fund | | | — | | | | — | |
Healthcare HLS Fund | | | 1,764,059 | | | | — | |
International Opportunities HLS Fund | | | — | | | | 743,725 | |
MidCap HLS Fund | | | 16,871,653 | | | | — | |
Small Cap Growth HLS Fund | | | 11,800,029 | | | | — | |
Small Company HLS Fund | | | 8,502,795 | | | | 3,135,018 | |
Stock HLS Fund | | | — | | | | — | |
Total Return Bond HLS Fund | | | 7,753,033 | | | | — | |
Ultrashort Bond HLS Fund | | | — | | | | — | |
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, 2020.
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) | |
Common Stocks | | $ | 15,133,178 | | | $ | — | | | $ | — | | | $ | — | | | $ | 15,133,178 | |
Corporate Bonds | | | 808 | | | | — | | | | — | | | | — | | | | 808 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 15,133,986 | | | $ | — | | | $ | — | | | $ | — | | | $ | 15,133,986 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 15,133,986 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Capital Appreciation HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 27,964,454 | | | $ | — | | | $ | — | | | $ | — | | | $ | 27,964,454 | |
Exchange-Traded Funds | | | 1,256,819 | | | | — | | | | — | | | | — | | | | 1,256,819 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 29,221,273 | | | $ | — | | | $ | — | | | $ | — | | | $ | 29,221,273 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 29,221,273 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Healthcare HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 1,764,059 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,764,059 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 1,764,059 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,764,059 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 1,764,059 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| MidCap HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 16,871,653 | | | $ | — | | | $ | — | | | $ | — | | | $ | 16,871,653 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 16,871,653 | | | $ | — | | | $ | — | | | $ | — | | | $ | 16,871,653 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 16,871,653 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Small Cap Growth HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 11,800,029 | | | $ | — | | | $ | — | | | $ | — | | | $ | 11,800,029 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 11,800,029 | | | $ | — | | | $ | — | | | $ | — | | | $ | 11,800,029 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 11,800,029 | |
| | | | | | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | |
| | | Overnight and
Continuous | | | <30 days | | | Between
30 & 90 days | | | >90 days | | | Total | |
| Small Company HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Common Stocks | | $ | 8,502,795 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,502,795 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 8,502,795 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,502,795 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 8,502,795 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Total Return Bond HLS Fund | | | | | | | | | | | | | | | |
Securities Lending Transactions(1) | |
Corporate Bonds | | $ | 4,115,278 | | | $ | — | | | $ | — | | | $ | — | | | $ | 4,115,278 | |
Municipal Bonds | | | 3,637,755 | | | | — | | | | — | | | | — | | | | 3,637,755 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 7,753,033 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7,753,033 | |
| | | | | | | | | | | | | | | | | | | | |
Gross amount of recognized liabilities for securities lending transactions | | | $ | 7,753,033 | |
| | | | | | | | | | | | | | | | | | | | |
| | (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. |
| 10. | Affiliated Security Transactions: |
If a Fund owns 5% or more of the outstanding voting securities, either directly or indirectly, of a particular issuer, the 1940 Act deems such an issuer to be an “affiliate” of the Fund. As of and during the year ended December 31, 2020, Balanced HLS Fund, Capital Appreciation HLS Fund, Small Company HLS Fund, and Stock HLS Fund owned 5% or more of the outstanding voting securities of the issuers identified in the table below.
A summary of affiliate fund transactions for the year ended December 31, 2020 follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Affiliated Investments | | Beginning
Value as of
December 31, 2019 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain/(Loss)
on Sales | | | Change in
Unrealized
Appreciation/
Depreciation(1) | | | Ending
Value as of
December 31, 2020 | | | Shares as of
December 31, 2020 | | | Dividend
Income | | | Capital Gain
Distributions | |
| Balanced HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allstar Co. | | $ | 4,680,880 | | | $ | — | | | $ | — | | | $ | — | | | $ | 11,824,772 | | | $ | 13,925,618 | | | | 11,702,200 | | | $ | — | | | $ | — | |
| | | | | | | | | |
Capital Appreciation
HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allstar Co. | | $ | 3,380,680 | | | $ | — | | | $ | — | | | $ | — | | | $ | 8,540,225 | | | $ | 10,057,523 | | | | 8,451,700 | | | $ | — | | | $ | — | |
| | | | | | | | | |
Small Company HLS
Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allstar Co. | | $ | 2,006,560 | | | $ | — | | | $ | — | | | $ | — | | | $ | 5,068,943 | | | $ | 5,969,516 | | | | 5,016,400 | | | $ | — | | | $ | — | |
| | | | | | | | | |
| Stock HLS Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allstar Co. | | $ | 3,776,040 | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,538,978 | | | $ | 11,233,719 | | | | 9,440,100 | | | $ | — | | | $ | — | |
| | (1) | Includes return of capital. |
| 11. | Investment Transactions: |
For the year ended December 31, 2020, 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 | | $ | 629,443,667 | | | $ | 890,700,588 | | | $ | 189,464,075 | | | $ | 165,293,773 | | | $ | 818,907,742 | | | $ | 1,055,994,361 | |
Capital Appreciation HLS Fund | | | 3,178,373,025 | | | | 3,797,111,322 | | | | — | | | | — | | | | 3,178,373,025 | | | | 3,797,111,322 | |
Disciplined Equity HLS Fund | | | 311,018,715 | | | | 502,391,156 | | | | — | | | | — | | | | 311,018,715 | | | | 502,391,156 | |
Dividend and Growth HLS Fund | | | 715,031,729 | | | | 1,015,584,268 | | | | — | | | | — | | | | 715,031,729 | | | | 1,015,584,268 | |
Healthcare HLS Fund | | | 89,266,322 | | | | 133,935,580 | | | | — | | | | — | | | | 89,266,322 | | | | 133,935,580 | |
International Opportunities HLS Fund | | | 1,144,777,326 | | | | 1,322,578,466 | | | | — | | | | — | | | | 1,144,777,326 | | | | 1,322,578,466 | |
MidCap HLS Fund | | | 977,983,300 | | | | 1,397,770,053 | | | | — | | | | — | | | | 977,983,300 | | | | 1,397,770,053 | |
Small Cap Growth HLS Fund | | | 740,195,532 | | | | 995,914,250 | | | | — | | | | — | | | | 740,195,532 | | | | 995,914,250 | |
Small Company HLS Fund | | | 519,529,698 | | | | 594,424,069 | | | | — | | | | — | | | | 519,529,698 | | | | 594,424,069 | |
Stock HLS Fund | | | 200,460,847 | | | | 368,743,679 | | | | — | | | | — | | | | 200,460,847 | | | | 368,743,679 | |
Total Return Bond HLS Fund | | | 864,604,209 | | | | 731,506,164 | | | | 671,906,492 | | | | 567,466,427 | | | | 1,536,510,701 | | | | 1,298,972,591 | |
Ultrashort Bond HLS Fund | | | 332,328,407 | | | | 230,069,599 | | | | 75,836,172 | | | | 91,813,477 | | | | 408,164,579 | | | | 321,883,076 | |
Notes to Financial Statements – (continued)
December 31, 2020
| 12. | Capital Share Transactions: |
The following information is for the year ended December 31, 2020, and the year ended December 31, 2019:
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2020 | | | For the Year Ended
December 31, 2019 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Balanced HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 463,624 | | | $ | 13,833,883 | | | | 370,207 | | | $ | 11,072,683 | |
Shares Issued for Reinvested Dividends | | | 3,884,716 | | | | 117,833,855 | | | | 6,502,840 | | | | 185,511,739 | |
Shares Redeemed | | | (8,115,089 | ) | | | (236,999,427 | ) | | | (8,291,111 | ) | | | (248,180,201 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (3,766,749 | ) | | | (105,331,689 | ) | | | (1,418,064 | ) | | | (51,595,779 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 182,220 | | | $ | 5,357,315 | | | | 89,913 | | | $ | 2,736,736 | |
Shares Issued for Reinvested Dividends | | | 492,030 | | | | 15,165,622 | | | | 821,698 | | | | 23,789,456 | |
Shares Redeemed | | | (1,160,144 | ) | | | (34,724,037 | ) | | | (1,116,398 | ) | | | (33,903,098 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (485,894 | ) | | | (14,201,100 | ) | | | (204,787 | ) | | | (7,376,906 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (4,252,643 | ) | | $ | (119,532,789 | ) | | | (1,622,851 | ) | | $ | (58,972,685 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Capital Appreciation HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 721,760 | | | $ | 30,111,727 | | | | 442,603 | | | $ | 19,657,868 | |
Shares Issued for Reinvested Dividends | | | 6,153,343 | | | | 302,064,553 | | | | 10,575,503 | | | | 453,254,297 | |
Shares Redeemed | | | (12,824,006 | ) | | | (588,774,139 | ) | | | (16,294,013 | ) | | | (749,541,968 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (5,948,903 | ) | | | (256,597,859 | ) | | | (5,275,907 | ) | | | (276,629,803 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 77,971 | | | $ | 3,386,267 | | | | 89,487 | | | $ | 3,963,852 | |
Shares Issued for Reinvested Dividends | | | 763,653 | | | | 36,702,247 | | | | 1,327,697 | | | | 55,760,662 | |
Shares Redeemed | | | (1,752,071 | ) | | | (79,080,131 | ) | | | (1,925,404 | ) | | | (86,699,371 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (910,447 | ) | | | (38,991,617 | ) | | | (508,220 | ) | | | (26,974,857 | ) |
| | | | | | | | | | | | | | | | |
Class IC | | | | | | | | | | | | | | | | |
Shares Sold | | | 109,094 | | | $ | 4,638,398 | | | | 77,205 | | | $ | 3,513,879 | |
Shares Issued for Reinvested Dividends | | | 57,916 | | | | 2,791,605 | | | | 94,517 | | | | 3,992,375 | |
Shares Redeemed | | | (167,473 | ) | | | (7,317,160 | ) | | | (100,769 | ) | | | (4,537,643 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (463 | ) | | | 112,843 | | | | 70,953 | | | | 2,968,611 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (6,859,813 | ) | | $ | (295,476,633 | ) | | | (5,713,174 | ) | | $ | (300,636,049 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Disciplined Equity HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 871,713 | | | $ | 13,103,167 | | | | 611,641 | | | $ | 8,940,276 | |
Issued in Merger | | | 129,357,267 | | | | 1,984,198,184 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 3,082,442 | | | | 49,655,221 | | | | 4,665,126 | | | | 66,982,886 | |
Shares Redeemed | | | (13,965,491 | ) | | | (222,397,851 | ) | | | (6,262,868 | ) | | | (96,972,372 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 119,345,931 | | | | 1,824,558,721 | | | | (986,101 | ) | | | (21,049,210 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 349,171 | | | $ | 5,277,671 | | | | 197,355 | | | $ | 2,940,251 | |
Issued in Merger | | | 18,002,182 | | | | 271,721,336 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 414,463 | | | | 6,547,645 | | | | 648,866 | | | | 9,168,659 | |
Shares Redeemed | | | (2,529,397 | ) | | | (39,629,490 | ) | | | (849,660 | ) | | | (12,966,500 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 16,236,419 | | | | 243,917,162 | | | | (3,439 | ) | | | (857,590 | ) |
| | | | | | | | | | | | | | | | |
Class IC(1) | | | | | | | | | | | | | | | | |
Shares Sold | | | 117,394 | | | $ | 1,880,604 | | | | — | | | $ | — | |
Issued in Merger | | | 4,834,998 | | | | 74,163,528 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 6,875 | | | | 117,970 | | | | — | | | | — | |
Shares Redeemed | | | (448,131 | ) | | | (7,235,901 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 4,511,136 | | | | 68,926,201 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 140,093,486 | | | $ | 2,137,402,084 | | | | (989,540 | ) | | $ | (21,906,800 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2020 | | | For the Year Ended
December 31, 2019 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Dividend and Growth HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 4,782,749 | | | $ | 93,344,076 | | | | 2,171,062 | | | $ | 47,176,118 | |
Issued in Merger | | | 13,589,222 | | | | 269,867,004 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 9,126,278 | | | | 188,905,832 | | | | 18,976,398 | | | | 380,717,264 | |
Shares Redeemed | | | (19,396,365 | ) | | | (392,709,464 | ) | | | (19,882,805 | ) | | | (436,905,756 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 8,101,884 | | | | 159,407,448 | | | | 1,264,655 | | | | (9,012,374 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 408,486 | | | $ | 7,910,412 | | | | 268,745 | | | $ | 5,804,583 | |
Issued in Merger | | | 2,450,597 | | | | 48,281,905 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 1,166,860 | | | | 23,940,435 | | | | 2,566,659 | | | | 51,049,426 | |
Shares Redeemed | | | (3,207,847 | ) | | | (65,102,417 | ) | | | (2,930,032 | ) | | | (63,812,310 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 818,096 | | | | 15,030,335 | | | | (94,628 | ) | | | (6,958,301 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 8,919,980 | | | $ | 174,437,783 | | | | 1,170,027 | | | $ | (15,970,675 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Healthcare HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 983,895 | | | $ | 22,817,641 | | | | 781,044 | | | $ | 17,515,748 | |
Shares Issued for Reinvested Dividends | | | 1,521,984 | | | | 32,813,967 | | | | 1,181,032 | | | | 23,301,756 | |
Shares Redeemed | | | (2,612,369 | ) | | | (58,049,269 | ) | | | (6,003,232 | ) | | | (139,008,140 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (106,490 | ) | | | (2,417,661 | ) | | | (4,041,156 | ) | | | (98,190,636 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 83,624 | | | $ | 1,818,539 | | | | 52,502 | | | $ | 1,098,605 | |
Shares Issued for Reinvested Dividends | | | 402,553 | | | | 7,990,683 | | | | 301,351 | | | | 5,559,926 | |
Shares Redeemed | | | (396,797 | ) | | | (8,560,073 | ) | | | (336,728 | ) | | | (7,069,613 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 89,380 | | | | 1,249,149 | | | | 17,125 | | | | (411,082 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (17,110 | ) | | $ | (1,168,512 | ) | | | (4,024,031 | ) | | $ | (98,601,718 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| International Opportunities HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 3,733,213 | | | $ | 58,178,266 | | | | 3,670,173 | | | $ | 57,219,180 | |
Shares Issued for Reinvested Dividends | | | 1,070,393 | | | | 18,153,869 | | | | 3,993,125 | | | | 59,417,697 | |
Shares Redeemed | | | (14,857,669 | ) | | | (224,032,772 | ) | | | (13,599,042 | ) | | | (213,803,290 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (10,054,063 | ) | | | (147,700,637 | ) | | | (5,935,744 | ) | | | (97,166,413 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 622,719 | | | $ | 9,711,097 | | | | 470,421 | | | $ | 7,388,314 | |
Shares Issued for Reinvested Dividends | | | 116,682 | | | | 2,009,265 | | | | 462,454 | | | | 6,983,056 | |
Shares Redeemed | | | (1,593,271 | ) | | | (25,857,411 | ) | | | (1,421,238 | ) | | | (22,687,414 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (853,870 | ) | | | (14,137,049 | ) | | | (488,363 | ) | | | (8,316,044 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (10,907,933 | ) | | $ | (161,837,686 | ) | | | (6,424,107 | ) | | $ | (105,482,457 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| MidCap HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 7,840,237 | | | $ | 280,770,150 | | | | 3,379,056 | | | $ | 132,078,823 | |
Issued in Merger | | | 7,689,933 | | | | 268,563,986 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 4,755,353 | | | | 177,950,463 | | | | 8,523,595 | | | | 301,703,983 | |
Shares Redeemed | | | (19,145,157 | ) | | | (692,739,283 | ) | | | (10,684,124 | ) | | | (416,937,937 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,140,366 | | | | 34,545,316 | | | | 1,218,527 | | | | 16,844,869 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 101,031 | | | $ | 3,526,835 | | | | 119,757 | | | $ | 4,628,774 | |
Issued in Merger | | | 2,059,953 | | | | 69,216,484 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 160,481 | | | | 5,921,123 | | | | 238,418 | | | | 8,149,131 | |
Shares Redeemed | | | (445,822 | ) | | | (15,478,345 | ) | | | (272,338 | ) | | | (10,355,932 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 1,875,643 | | | | 63,186,097 | | | | 85,837 | | | | 2,421,973 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 3,016,009 | | | $ | 97,731,413 | | | | 1,304,364 | | | $ | 19,266,842 | |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2020 | | | For the Year Ended
December 31, 2019 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Small Cap Growth HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 12,905,007 | | | $ | 408,467,832 | | | | 4,705,468 | | | $ | 138,725,195 | |
Shares Issued for Reinvested Dividends | | | 905,166 | | | | 26,838,172 | | | | 5,121,450 | | | | 130,596,983 | |
Shares Redeemed | | | (13,831,962 | ) | | | (401,010,236 | ) | | | (7,759,736 | ) | | | (238,252,546 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (21,789 | ) | | | 34,295,768 | | | | 2,067,182 | | | | 31,069,632 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,326,101 | | | $ | 35,875,838 | | | | 1,357,735 | | | $ | 39,797,023 | |
Shares Issued for Reinvested Dividends | | | 464,566 | | | | 13,179,751 | | | | 2,576,170 | | | | 63,116,174 | |
Shares Redeemed | | | (9,636,215 | ) | | | (309,485,039 | ) | | | (2,618,822 | ) | | | (78,112,025 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (7,845,548 | ) | | | (260,429,450 | ) | | | 1,315,083 | | | | 24,801,172 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (7,867,337 | ) | | $ | (226,133,682 | ) | | | 3,382,265 | | | $ | 55,870,804 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Small Company HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,913,031 | | | $ | 40,535,223 | | | | 2,903,171 | | | $ | 59,916,505 | |
Shares Issued for Reinvested Dividends | | | 2,771,599 | | | | 57,898,706 | | | | 5,501,448 | | | | 100,841,539 | |
Shares Redeemed | | | (131,137,236 | ) | | | (224,841,016 | ) | | | (6,154,407 | ) | | | (128,043,271 | ) |
Shares Redeemed-In-Kind | | | 118,163,289 | | | | 8,160,448 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (8,289,317 | ) | | | (118,246,639 | ) | | | 2,250,212 | | | | 32,714,773 | |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 306,996 | | | $ | 5,854,788 | | | | 193,635 | | | $ | 3,651,196 | |
Shares Issued for Reinvested Dividends | | | 430,749 | | | | 7,955,937 | | | | 608,025 | | | | 10,050,660 | |
Shares Redeemed | | | (739,598 | ) | | | (14,116,137 | ) | | | (736,416 | ) | | | (14,145,202 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (1,853 | ) | | | (305,412 | ) | | | 65,244 | | | | (443,346 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (8,291,170 | ) | | $ | (118,552,051 | ) | | | 2,315,456 | | | $ | 32,271,427 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Stock HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 128,003 | | | $ | 11,104,343 | | | | 88,143 | | | $ | 8,024,102 | |
Shares Issued for Reinvested Dividends | | | 1,177,561 | | | | 105,830,873 | | | | 1,498,758 | | | | 133,049,130 | |
Shares Redeemed | | | (1,925,885 | ) | | | (170,878,722 | ) | | | (2,116,151 | ) | | | (190,491,309 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (620,321 | ) | | | (53,943,506 | ) | | | (529,250 | ) | | | (49,418,077 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 24,218 | | | $ | 2,147,184 | | | | 24,363 | | | $ | 2,198,146 | |
Shares Issued for Reinvested Dividends | | | 111,445 | | | | 9,984,196 | | | | 143,656 | | | | 12,720,819 | |
Shares Redeemed | | | (224,707 | ) | | | (19,952,176 | ) | | | (259,517 | ) | | | (23,318,016 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | (89,044 | ) | | | (7,820,796 | ) | | | (91,498 | ) | | | (8,399,051 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (709,365 | ) | | $ | (61,764,302 | ) | | | (620,748 | ) | | $ | (57,817,128 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Total Return Bond HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 20,755,656 | | | $ | 245,650,273 | | | | 10,292,709 | | | $ | 115,993,996 | |
Issued in Merger | | | 14,803,748 | | | | 174,093,559 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 6,284,955 | | | | 73,659,677 | | | | 6,510,117 | | | | 74,150,238 | |
Shares Redeemed | | | (29,332,474 | ) | | | (340,396,565 | ) | | | (27,038,343 | ) | | | (303,528,466 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 12,511,885 | | | | 153,006,944 | | | | (10,235,517 | ) | | | (113,384,232 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,645,801 | | | $ | 19,277,272 | | | | 1,022,576 | | | $ | 11,476,151 | |
Issued in Merger | | | 4,561,022 | | | | 53,376,276 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 685,542 | | | | 8,000,272 | | | | 705,771 | | | | 8,003,440 | |
Shares Redeemed | | | (3,405,677 | ) | | | (39,470,211 | ) | | | (2,997,668 | ) | | | (33,501,141 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 3,486,688 | | | | 41,183,609 | | | | (1,269,321 | ) | | | (14,021,550 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 15,998,573 | | | $ | 194,190,553 | | | | (11,504,838 | ) | | $ | (127,405,782 | ) |
| | | | | | | | | | | | | | | | |
Notes to Financial Statements – (continued)
December 31, 2020
| | | | | | | | | | | | | | | | |
| | | For the Year Ended
December 31, 2020 | | | For the Year Ended
December 31, 2019 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Ultrashort Bond HLS Fund | | | | | | | | | | | | |
Class IA | | | | | | | | | | | | | | | | |
Shares Sold | | | 8,591,367 | | | $ | 87,618,814 | | | | 6,425,360 | | | $ | 65,532,098 | |
Issued in Merger | | | 28,051,003 | | | | 283,115,967 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 922,529 | | | | 9,308,313 | | | | 785,430 | | | | 7,948,551 | |
Shares Redeemed | | | (11,084,794 | ) | | | (112,618,470 | ) | | | (11,863,152 | ) | | | (120,750,652 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 26,480,105 | | | | 267,424,624 | | | | (4,652,362 | ) | | | (47,270,003 | ) |
| | | | | | | | | | | | | | | | |
Class IB | | | | | | | | | | | | | | | | |
Shares Sold | | | 1,920,976 | | | $ | 19,540,532 | | | | 867,804 | | | $ | 8,845,950 | |
Issued in Merger | | | 5,629,838 | | | | 56,835,464 | | | | — | | | | — | |
Shares Issued for Reinvested Dividends | | | 120,975 | | | | 1,220,637 | | | | 95,306 | | | | 964,500 | |
Shares Redeemed | | | (2,358,660 | ) | | | (23,936,591 | ) | | | (1,777,491 | ) | | | (18,100,079 | ) |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) | | | 5,313,129 | | | | 53,660,042 | | | | (814,381 | ) | | | (8,289,629 | ) |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | 31,793,234 | | | $ | 321,084,666 | | | | (5,466,743 | ) | | $ | (55,559,632 | ) |
| | | | | | | | | | | | | | | | |
| | (1) | Commenced operations on September 18, 2020. |
In certain circumstances, a Fund may distribute portfolio securities as payment for redemption of Fund shares (redemption in-kind). For financial reporting purposes, a Fund will recognize a gain on in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities; the Fund will recognize a loss if the cost exceeds value. Gains and losses realized on redemptions in-kind are not recognized for tax purposes, and are re-classified from realized gain (loss) to paid-in-capital.
During the year ended December 31, 2020, 8,160,448 shares of the Small Company HLS Fund were redeemed in-kind. A net realized loss of $2,469,075 on investments delivered through the in-kind redemption is included in realized gain (loss) on the Statements of Operations.
At a meeting held on June 16-17, 2020, the Boards of Directors of each Company approved an Agreement and Plan of Reorganization that provided for the reorganization of each Acquired Fund (each an “Acquired Fund”) identified below into the corresponding Acquiring Fund identified below (each an “Acquiring Fund”) (each a “Reorganization” and collectively, the “Reorganizations”).
Pursuant to the terms of an Agreement and Plan of Reorganization, after the close of business on the dates set forth in the table below, each Acquired Fund transferred all of its assets to the corresponding Acquiring Fund, in exchange for shares of the corresponding Acquiring Fund and the assumption of all of the liabilities of the Acquired Fund by the corresponding Acquiring Fund.
| | | | |
| Acquired Fund | | Corresponding Acquiring Fund | | Closing Date |
| Global Growth HLS Fund | | Disciplined Equity HLS Fund | | September 18, 2020 |
| Growth Opportunities HLS Fund | | Disciplined Equity HLS Fund | | September 18, 2020 |
| Value HLS Fund | | Dividend and Growth HLS Fund | | September 18, 2020 |
| MidCap Growth HLS Fund | | MidCap HLS Fund | | September 18, 2020 |
| MidCap Value HLS Fund | | MidCap HLS Fund | | September 18, 2020 |
| High Yield HLS Fund | | Total Return Bond HLS Fund | | September 25, 2020 |
| U.S. Government Securities HLS Fund | | Ultrashort Bond HLS Fund | | September 25, 2020 |
Some of the investments held by an Acquired Fund may have been purchased or sold prior to the Reorganization for the purpose of complying with the anticipated investment policies or limitations of the corresponding Acquiring Fund after the Reorganization. With respect to each Reorganization, the Acquired Fund bore the costs of the Reorganization.
Notes to Financial Statements – (continued)
December 31, 2020
| | a) | Disciplined Equity HLS Fund – After the close of business on September 18, 2020, the consummation of the Reorganization was accomplished by a tax-free exchange of shares of the Disciplined Equity HLS Fund in the following amounts: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share Class | | Net Assets of the Global
Growth HLS Fund as of
the close of business
on September 18, 2020
(“Reorganization Date”) | | | Shares of the
Global
Growth HLS Fund
as of the
Reorganization
Date | | | Net Assets of the
Growth Opportunities
HLS Fund as of
the Reorganization Date | | | Shares of the Growth
Opportunities
HLS Fund as of the
Reorganization Date | | | Value of Shares
Issued by the
Disciplined
Equity HLS Fund | | | Shares Issued
by the
Disciplined
Equity HLS Fund | | | Net Assets of
the Disciplined
Equity HLS Fund
immediately
after the
Reorganization | |
Class IA | | $ | 468,474,190 | | | | 21,571,308 | | | $ | 1,515,723,995 | | | | 48,679,642 | | | $ | 1,984,198,185 | | | | 129,357,267 | | | $ | 2,526,977,916 | |
Class IB | | | 84,268,146 | | | | 3,938,551 | | | | 187,453,189 | | | | 6,692,667 | | | | 271,721,335 | | | | 18,002,182 | | | | 346,159,731 | |
Class IC | | | — | | | | — | | | | 74,163,528 | | | | 2,550,987 | | | | 74,163,528 | | | | 4,834,998 | | | | 74,163,528 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 552,742,336 | | | | 25,509,859 | | | $ | 1,777,340,712 | | | | 57,923,296 | | | $ | 2,330,083,048 | | | | 152,194,447 | | | $ | 2,947,301,175 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Each shareholder of a share class of an Acquired Fund received shares of the same share class of the corresponding Acquiring Fund with the same class designation and at the respective class NAV, as determined on the Reorganization Date. Class IC of the corresponding Acquiring Fund commenced operations on September 18, 2020.
As of the Reorganization Date, the Global Growth HLS Fund and the Growth Opportunities HLS Fund had investments valued at $509,037,482 and $1,759,672,423 with a cost basis of $435,135,424 and $1,593,483,949, respectively. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Disciplined Equity HLS Fund were recorded at fair value; however, the cost basis of the investments received by the Disciplined Equity HLS Fund from the Global Growth HLS Fund and the Growth Opportunities HLS Fund were carried forward to align ongoing reporting of the Disciplined Equity HLS Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of the Disciplined Equity HLS Fund immediately after the acquisition were $2,947,301,175 which included $240,090,532 of acquired unrealized appreciation.
Assuming the Reorganization had been completed on January 1, 2020, the Disciplined Equity HLS Fund’s pro-forma results of operations for the year ended December 31, 2020 are as follows:
| | | | |
Net investment income | | $ | 8,042,586 | |
Net realized and unrealized gain (loss) on investments | | | 1,080,476,058 | |
| | | | |
Net increase (decrease) in net assets from operations | | $ | 1,088,518,644 | |
| | | | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Global Growth HLS Fund and the Growth Opportunities HLS Fund that have been included in the Disciplined Equity HLS Fund’s Statement of Operations since the closing date.
| | b) | Dividend and Growth HLS Fund – After the close of business on September 18, 2020, the consummation of the Reorganization was accomplished by a tax-free exchange of shares of the Dividend and Growth HLS Fund in the following amounts: |
| | | | | | | | | | | | | | | | | | | | |
Share Class | | Net Assets of the Value
HLS Fund as of
the close of business on
September 18, 2020
(“Reorganization Date”) | | | Shares of the Value
HLS Fund as of
the Reorganization Date | | | Value of Shares Issued
by the Dividend and
Growth HLS Fund | | | Shares Issued by
the Dividend and
Growth HLS Fund | | | Net Assets of the
Dividend and Growth
HLS Fund immediately
after the Reorganization | |
Class IA | | $ | 269,867,004 | | | | 25,055,740 | | | $ | 269,867,004 | | | | 13,589,222 | | | $ | 2,847,310,971 | |
Class IB | | | 48,281,905 | | | | 4,490,676 | | | | 48,281,905 | | | | 2,450,597 | | | | 381,074,892 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 318,148,909 | | | | 29,546,416 | | | $ | 318,148,909 | | | | 16,039,819 | | | $ | 3,228,385,863 | |
| | | | | | | | | | | | | �� | | | | | | | |
Each shareholder of a share class of the Acquired Fund received shares of the same share class of the corresponding Acquiring Fund with the same class designation and at the respective class NAV, as determined on the Reorganization Date.
As of the Reorganization Date, the Value HLS Fund had investments valued at $311,172,449 with a cost basis of $272,347,468. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Dividend and Growth HLS Fund were recorded at fair value; however, the cost basis of the investments received by the Dividend and Growth HLS Fund from the Value HLS Fund were carried forward to align ongoing reporting of the Dividend and Growth HLS Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of the Dividend and Growth HLS Fund immediately after the acquisition were $3,228,385,863 which included $38,824,981 of acquired unrealized appreciation.
Notes to Financial Statements – (continued)
December 31, 2020
Assuming the Reorganization had been completed on January 1, 2020, the Dividend and Growth HLS Fund pro-forma results of operations for the year ended December 31, 2020 are as follows:
| | | | |
Net investment income | | $ | 62,746,262 | |
Net realized and unrealized gain (loss) on investments | | | 139,173,545 | |
| | | | |
Net increase (decrease) in net assets from operations | | $ | 201,919,807 | |
| | | | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Value HLS Fund that have been included in the Dividend and Growth HLS Fund’s Statement of Operations since the closing date.
| | c) | MidCap HLS Fund – After the close of business on September 18, 2020, the consummation of the Reorganization was accomplished by a tax-free exchange of shares of the MidCap HLS Fund in the following amounts: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share Class | | Net Assets of the
MidCap Growth
HLS Fund as of
the close of business on
September 18, 2020
(“Reorganization Date”) | | | Shares of the
MidCap Growth
HLS Fund as of
the Reorganization
Date | | | Net Assets of the
MidCap Value
HLS Fund as
of the
Reorganization
Date | | | Shares of the
MidCap Value
HLS Fund as
of the
Reorganization
Date | | | Value of
Shares
Issued by
the MidCap
HLS Fund | | | Shares Issued By
the MidCap
HLS Fund | | | Net Assets of
the MidCap
HLS Fund
Immediately
after the
Reorganization | |
Class IA | | $ | 84,920,061 | | | | 13,187,029 | | | $ | 183,643,925 | | | | 22,130,494 | | | $ | 268,563,986 | | | | 7,689,933 | | | $ | 1,968,833,578 | |
Class IB | | | 14,916,313 | | | | 2,347,644 | | | | 54,300,171 | | | | 6,589,510 | | | | 69,216,484 | | | | 2,059,953 | | | | 115,904,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 99,836,374 | | | | 15,534,673 | | | $ | 237,944,096 | | | | 28,720,004 | | | $ | 337,780,470 | | | | 9,749,886 | | | $ | 2,084,737,781 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Each shareholder of a share class of an Acquired Fund received shares of the same share class of the corresponding Acquiring Fund with the same class designation and at the respective class NAV, as determined on the Reorganization Date.
As of the Reorganization Date, the MidCap Growth HLS Fund and the MidCap Value HLS Fund had investments valued at $98,292,819 and $238,516,719 with a cost basis of $97,390,868 and $243,310,956. For financial reporting purposes, assets received, liabilities assumed and shares issued by the MidCap HLS Fund were recorded at fair value; however, the cost basis of the investments received by the MidCap HLS Fund from of the MidCap Growth HLS Fund and the MidCap Value HLS Fund were carried forward to align ongoing reporting of the MidCap HLS Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of the MidCap HLS Fund immediately after the acquisition were $2,084,737,781 which included $3,892,286 of acquired unrealized depreciation.
Assuming the Reorganization had been completed on January 1, 2020, the MidCap HLS Fund’s pro-forma results of operations for the year ended December 31, 2020 are as follows:
| | | | |
Net investment income | | $ | 2,086,167 | |
Net realized and unrealized gain (loss) on investments | | | 450,580,925 | |
| | | | |
Net increase (decrease) in net assets from operations | | $ | 452,667,092 | |
| | | | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the MidCap Growth HLS Fund and MidCap Value HLS Fund that have been included in the MidCap HLS Fund’s Statement of Operations since the closing date.
| | d) | Total Return Bond HLS Fund – After the close of business on September 25, 2020, the consummation of the Reorganization was accomplished by a tax-free exchange of shares of the Total Return Bond HLS Fund in the following amounts: |
| | | | | | | | | | | | | | | | | | | | |
Share Class | | Net Aassets of the High
Yield HLS Fund as of the
close of business on
September 25, 2020
(“Reorganization Date”) | | | Shares of the
High Yield HLS
Fund as of the
Reorganization
Date | | | Value of Shares
Issued by the
Total Return
Bond HLS Fund | | | Shares Issued
by the Total
Return
Bond HLS Fund | | | Net Assets of the
Total Return Bond
HLS Fund
immediately after
the Reorganization | |
Class IA | | $ | 174,093,559 | | | | 23,403,628 | | | $ | 174,093,559 | | | | 14,803,748 | | | $ | 2,039,139,061 | |
Class IB | | | 53,376,276 | | | | 7,301,141 | | | | 53,376,276 | | | | 4,561,022 | | | | 268,126,588 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 227,469,835 | | | | 30,704,769 | | | $ | 227,469,835 | | | | 19,364,770 | | | $ | 2,307,265,649 | |
| | | | | | | | | | | | | | | | | | | | |
Each shareholder of a share class of the Acquired Fund received shares of the same share class of the corresponding Acquiring Fund with the same class designation and at the respective class NAV, as determined on the Reorganization Date.
Notes to Financial Statements – (continued)
December 31, 2020
As of the Reorganization Date, the High Yield HLS Fund had investments valued at $9,865,236 with a cost basis of $13,300,818. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Total Return Bond HLS Fund were recorded at fair value; however, the cost basis of the investments received by the Total Return Bond HLS Fund from the High Yield HLS Fund were carried forward to align ongoing reporting of the Total Return Bond HLS Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of the Total Return Bond HLS Fund immediately after the acquisition were $2,307,265,649 which included $3,435,582 of acquired unrealized depreciation.
Assuming the Reorganization had been completed on January 1, 2020, the Total Return Bond HLS Fund’s pro-forma results of operations for the year ended December 31, 2020 are as follows:
| | | | |
Net investment income | | $ | 58,472,946 | |
Net realized and unrealized gain (loss) on investments | | | 119,351,581 | |
| | | | |
Net increase (decrease) in net assets from operations | | $ | 177,824,527 | |
| | | | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the High Yield HLS Fund that have been included in the Total Return Bond HLS Fund’s Statement of Operations since the closing date.
| | e) | Ultrashort Bond HLS Fund – After the close of business on September 25, 2020, the consummation of the Reorganization was accomplished by a tax-free exchange of shares of the Ultrashort Bond HLS Fund in the following amounts: |
| | | | | | | | | | | | | | | | | | | | |
Share Class | | Net Assets of the
U.S. Government
Securities HLS Fund as
of the close of
business on
September 25, 2020
(“Reorganization Date”) | | | Shares of the
U.S. Government
Securities HLS
Fund as of the
Reorganization
Date | | | Value of Shares
Issued by the
Ultrashort
Bond HLS Fund | | | Shares Issued by
the Ultrashort
Bond HLS Fund | | | Net Assets of the
Ultrashort Bond
HLS Fund
immediately after
the Reorganization | |
Class IA | | $ | 283,115,967 | | | | 26,838,069 | | | $ | 283,115,967 | | | | 28,051,003 | | | $ | 675,575,692 | |
Class IB | | | 56,835,464 | | | | 5,378,683 | | | | 56,835,464 | | | | 5,629,838 | | | | 111,836,168 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 339,951,431 | | | | 32,216,752 | | | $ | 339,951,431 | | | | 33,680,841 | | | $ | 787,411,860 | |
| | | | | | | | | | | | | | | | | | | | |
Each shareholder of a share class of the Acquired Fund received shares of the same share class of the corresponding Acquiring Fund with the same class designation and at the respective class NAV, as determined on the Reorganization Date.
As of the Reorganization Date, the U.S. Government Securities HLS Fund had short term investments valued at $334,627,671 with a cost basis of $334,623,817. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Ultrashort Bond HLS Fund were recorded at fair value; however, the cost basis of the investments received by the Ultrashort Bond HLS Fund from the U.S. Government Securities HLS Fund were carried forward to align ongoing reporting of the Ultrashort Bond HLS Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of the Ultrashort Bond HLS Fund immediately after the acquisition were $787,411,860 which included $3,854 of acquired unrealized appreciation.
Assuming the Reorganization had been completed on January 1, 2020, the Ultrashort Bond HLS Fund’s pro-forma results of operations for the year ended December 31, 2020 are as follows:
| | | | |
Net investment income | | $ | 8,662,369 | |
Net realized and unrealized gain (loss) on investments | | | 16,133,324 | |
| | | | |
Net increase (decrease) in net assets from operations | | $ | 24,795,693 | |
| | | | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the U.S. Government Securities HLS Fund that have been included in the Ultrashort Bond HLS Fund’s Statement of Operations since the closing date.
Each Fund participates in a committed line of credit pursuant to a credit agreement dated March 5, 2020. 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 $350 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 ratably by assets based on a Fund’s actual net assets if the
Notes to Financial Statements – (continued)
December 31, 2020
Fund has total assets of less than or equal to $1.05 billion and for all other participating funds, based on the notional asset level of $1.05 billion. During and as of the year ended December 31, 2020, none of the Funds had borrowings under this facility.
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 each Fund, 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.
| 17. | Recent Accounting Pronouncement: |
In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update introduces new fair value disclosure requirements, eliminates some prior fair value disclosure requirements, and modifies certain existing fair value disclosure requirements.
ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management has adopted this guidance and it did not have a material impact on the Funds’ financial statements.
In March 2020, FASB issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing LIBOR or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. Management is evaluating the underlying securities referencing LIBOR or another reference rate that is expected to be discontinued over the period of time the ASU is effective.
| 18. | Change in Independent Registered Public Accounting Firm: |
On November 6, 2019, the Companies, on behalf of their respective Funds, dismissed Ernst & Young LLP (“EY”) as the Funds’ independent registered public accounting firm effective upon the issuance of EY’s report on the Funds’ financial statements as of and for the fiscal year ended December 31, 2019. EY’s report on the Funds’ financial statements for the fiscal periods ended December 31, 2018 and December 31, 2019 contained no adverse opinion or disclaimer of opinion nor was EY’s report qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal periods ended on December 31, 2018 and December 31, 2019 and through February 26, 2020 (the “Covered Period”), (i) there were no disagreements with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused it to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for the Covered Period, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
On November 6, 2019, the Audit Committee of each Company’s Board of Directors participated in and approved the decision to engage PricewaterhouseCoopers LLP (“PwC”) as the independent registered public accounting firm for the Funds for the fiscal year ended December 31, 2020. The selection of PwC does not reflect any disagreements with or dissatisfaction by the Companies or their respective Boards of Directors with the performance of the Funds’ prior independent registered public accounting firm, EY. During the Covered Period, neither the Funds, nor anyone on their behalf, consulted with PwC on items which: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304 of Regulation S-K).
In connection with the preparation of the financial statements of the Funds as of and for the year ended December 31, 2020, events and transactions subsequent to December 31, 2020, through the date the financial statements were issued have been evaluated by the Funds’ management for possible adjustment and/or disclosure.
|
| Report of Independent Registered Public Accounting Firm |
To the Board of Directors of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. and Shareholders of Hartford Balanced HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Healthcare HLS Fund, Hartford International Opportunities HLS Fund, Hartford MidCap HLS Fund, Hartford Small Company HLS Fund, Hartford Stock HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Ultrashort Bond HLS Fund, and Hartford Small Cap Growth HLS Fund.
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments of Hartford Balanced HLS Fund, Hartford Capital Appreciation HLS Fund, Hartford Disciplined Equity HLS Fund, Hartford Dividend and Growth HLS Fund, Hartford Healthcare HLS Fund, Hartford International Opportunities HLS Fund, Hartford MidCap HLS Fund, Hartford Small Company HLS Fund, Hartford Stock HLS Fund, Hartford Total Return Bond HLS Fund, Hartford Ultrashort Bond HLS Fund (constituting Hartford Series Fund, Inc.) and Hartford Small Cap Growth HLS Fund (constituting Hartford HLS Series Fund II, Inc.) (hereafter collectively referred to as the “Funds”) as of December 31, 2020, the related statements of operations for the year ended December 31, 2020, the statements of changes in net assets for the year ended December 31, 2020, including the related notes, and the financial highlights for the year or period ended December 31, 2020 (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 as of December 31, 2020, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for the year or period ended December, 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Funds as of and for the year ended December 31, 2019 and the financial highlights for each of the periods ended on or prior to December 31, 2019 (not presented herein, other than the statements of changes in net assets and financial highlights) were audited by other auditors whose report dated February 25, 2020 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on 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 Funds 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 of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
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 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. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 23, 2021
We have served as the auditor of one or more Hartford Funds investment companies since 2020.
Directors and Officers of Each Company (Unaudited)
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, 2020. For more information regarding the Directors and officers, please refer to the Statement of Additional Information, which is available, without charge, upon request by calling 1-888-843-7824.
| | | | | | | | | | |
NAME, YEAR OF BIRTH
AND ADDRESS(1) | | POSITION
HELD WITH
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. | | 73 | | Ms. Ackermann served as a Director of Dynegy, Inc. from October 2012 until its acquisition in by Vistra Energy Corporation in 2018, and since that time she has served as a Director of Vistra. 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. | | 73 | | Ms. Beery serves as an independent Director of UMB Financial Corporation (January 2015 to present), has chaired the Compensation Committee since April 2017, and serves on the Audit Committee and the Risk Committee. |
| | | | | |
LYNN S. BIRDSONG (1946) | | Director and Chair of the Board | | Director since 2003; Chair of the Board since August 2019 | | From January 1981 through December 2013, Mr. Birdsong was a partner in Birdsong Company, an advertising specialty firm. From 1979 to 2002, Mr. Birdsong was a Managing Director of Zurich Scudder Investments, an investment management firm. | | 73 | | None |
| | | | | |
DERRICK D. CEPHAS (1952) | | Director | | Since 2020(4) | | Mr. Cephas currently serves as Of Counsel to Squire Patton Boggs LLP, an international law firm with 45 offices in 20 countries. Until his retirement in October 2020, Mr. Cephas was a Partner of Weil, Gotshal & Manges LLP, an international law firm headquartered in New York, where he served as the Head of the Financial Institutions Practice (April 2011 to October 2020). | | 73 | | Mr. Cephas currently serves a Director of Signature Bank, a New York-based commercial bank, and is a member of the Credit Committee, Examining Committee and Risk Committee. |
| | | | | |
CHRISTINE R. DETRICK (1958) | | Director | | Since 2016 | | Ms. Detrick served as a Senior Partner/Advisor at Bain & Company (a management consulting firm) from September 2002 to December 2012. | | 73 | | Ms. Detrick serves as a Director and Chair of the Nominating and Governance Committee of Reinsurance Group of America (from January 2014 to present). She also serves as a Director of Charles River Associates (May 2020 to present). |
| | | | | |
DUANE E. HILL(5) (1945) | | Director | | Since 2001(6) Since 2002(7) | | 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. | | 73 | | None |
Directors and Officers of Each Company (Unaudited) – (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 A. JOHNSON (1962) | | Director | | Since 2020(4) | | Mr. Johnson currently serves as a Diversity and Inclusion Advisor at Neuberger Berman, a private, global investment management firm. Prior to his current role, Mr. Johnson served as Chief Investment Officer and Head of Global Investment Grade Fixed Income at Neuberger Berman (January 2009 to December 2018). | | 73 | | None |
| | | | | |
PAUL L. ROSENBERG (1953) | | Director | | Since 2020(4) | | Mr. Rosenberg is a Partner of The Bridgespan Group, a global nonprofit consulting firm that is a social impact advisor to nonprofits, non-governmental organizations, philanthropists and institutional investors (October 2007 to present). | | 73 | | None |
| | | | | |
LEMMA W. SENBET (1946) | | Director | | Since 2005 | | Dr. Senbet currently serves as the William E. Mayer Chair Professor of Finance in the Robert H. Smith School of Business at the University of Maryland, where he was chair of the Finance Department 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. | | 73 | | None |
| | | | | |
DAVID SUNG (1953) | | Director | | Since 2017 | | Mr. Sung was a Partner at Ernst & Young LLP from October 1995 to July 2014. | | 73 | | Mr. Sung serves as a Trustee of Ironwood Institutional Multi-Strategy Fund, LLC and Ironwood Multi-Strategy Fund, LLC (October 2015 to present). |
|
| OFFICERS AND INTERESTED DIRECTOR |
| | | | | |
JAMES E. DAVEY(8) (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. Mr. Davey has served in various positions within The Hartford and its subsidiaries and joined The Hartford in 2002. Additionally, Mr. Davey serves as Director, Chairman, President, and Senior Managing Director for Hartford Funds Management Group, Inc. (“HFMG”). Mr. Davey also serves as President, Manager, Chairman of the Board, and Senior Managing Director for Hartford Funds Management Company, LLC (“HFMC”); Manager, Chairman of the Board, and President of Lattice Strategies LLC(“Lattice”); Chairman of the Board, Manager, and Senior Managing Director of Hartford Funds Distributors, LLC (“HFD”); and Chairman of the Board, President and Senior Managing Director of Hartford Administrative Services Company (“HASCO”), each of which is an affiliate of HFMG. | | 73 | | None |
| | | | | |
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. | | 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. | | N/A | | N/A |
Directors and Officers of Each Company (Unaudited) – (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 |
| | | | | |
WALTER F. GARGER (1965) | | Vice President and Chief Legal Officer | | Since 2016 | | Mr. Garger serves as Secretary, Managing Director and General Counsel of HFMG, HFMC, HFD, and HASCO (since 2013). Mr. Garger also serves as Secretary and General Counsel of Lattice (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 |
| | | | | |
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 (since June 2017). Previously, Mr. Lucas served as Managing Partner of Lattice (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 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; serves as Executive Vice President and Chief Compliance Officer of Lattice (since July 2016), serves as Executive Vice President of HFD (since December 2013), and has served as President and Chief Executive Officer of HFD (from April 2018 to June 2019). | | N/A | | N/A |
| | | | | |
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 also serves as Senior Vice President-Investments of Lattice (since March 2019). 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 (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 is Deputy General Counsel for HFMG and currently serves as Vice President (since February 2017) and Assistant Secretary (since June 2017) 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, Pennsylvania 19087. |
| (2) | Each Director holds an indefinite term until his or her retirement, resignation, removal, or death. Directors generally must retire no later than December 31 of the year in which the Director turns 75 years of age. Each Fund officer generally serves until his or her resignation, removal, or death. |
| (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., Lattice Strategies Trust, Hartford Funds Exchange-Traded Trust, and Hartford Schroders Opportunistic Income Fund. |
| (4) | Effective November 2, 2020, Messrs. Cephas, Johnson, and Rosenberg were elected to the Board of each Company. |
| (5) | Effective December 31, 2020, Mr. Hill retired from the Board of Directors of each Company. |
| (6) | For Hartford Series Fund, Inc. |
| (7) | For Hartford HLS Series Fund II, Inc. |
| (8) | “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 Form N-PORT. Each Fund’s Form N-PORT reports are available (1) without charge, upon request, by calling 888-843-7824, (2) on the Funds’ website, hartfordfunds.com, and (3) on the SEC’s website at http://www.sec.gov.
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited)
Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc.
Hartford Balanced HLS Fund
Hartford Capital Appreciation HLS Fund
Hartford Disciplined Equity HLS Fund
Hartford Dividend and Growth HLS Fund
Hartford Healthcare HLS Fund
Hartford International Opportunities HLS Fund
Hartford MidCap 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
Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that each mutual fund’s board of directors, including a majority of those directors who are not “interested persons” of the mutual fund, as defined in the 1940 Act (the “Independent Directors”), annually review and consider the continuation of the mutual fund’s investment advisory and sub-advisory agreements. At their meeting held on August 4-5, 2020, 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 series listed above (each a “Fund” and collectively, the “Funds”), and Hartford Funds Management Company, LLC (“HFMC”); and (ii) the continuation of investment sub-advisory agreements (each, a “Sub-Advisory Agreement” and collectively with the Management Agreement, the “Agreements”) between HFMC and each Fund’s sub-adviser, Wellington Management Company LLP (the “Sub-adviser,” and together with HFMC, the “Advisers”), with respect to each Fund.
In the months preceding the August 4-5, 2020 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 and its committees at their meetings throughout the year and in between regularly scheduled meetings on particular matters as the need arose, 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 16-17, 2020 and August 4-5, 2020. Information provided to the Board and its committees at their 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 members of the Board also considered the materials and presentations by Fund officers and representatives of HFMC received at the Board’s meetings on June 16-17, 2020 and August 4-5, 2020 concerning the Agreements and at the special meeting of the Board’s Investment Committee on May 12, 2020 concerning Fund performance and other investment-related matters.
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, 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 contractual management fees, actual 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 approve the continuation of 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 approve the continuation of 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. 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. In connection with their deliberations, the Independent Directors met separately with independent legal counsel and the Consultant on June 12, 2020 and in executive session on several occasions to consider their responsibilities under relevant laws and regulations and to discuss the materials presented and other matters deemed relevant to their consideration of the approval of the continuation of the Agreements. As a result of the discussions that occurred during the June 12, 2020 and June 16-17, 2020 meetings, the Independent Directors presented HFMC with requests for additional information on certain topics. HFMC responded to these requests with written additional information in advance of the August 4-5, 2020 meeting. 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 Investment Sub-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 each Adviser’s 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. In this regard, the Board took into account the Advisers’ communications with the Board in light of the market volatility amidst the coronavirus (“COVID-19”) pandemic.
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 and 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 Rule 38a-1 under the 1940 Act and the Funds’ liquidity risk management program, as well as the efforts of the Advisers to combat cybersecurity risks. The Board also considered HFMC’s investments in business continuity planning designed to benefit the Funds, and the implementation of HFMC’s business continuity plans due to the COVID-19 pandemic. The Board also noted HFMC’s commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes to the market, regulatory and control environments in which the Funds and their service providers operate, including changes associated with the COVID-19 pandemic.
With respect to HFMC, the Board noted that, under the Management Agreement, HFMC is responsible for the management of the Funds, including oversight of fund operations and service providers, and the provision of administrative and investment advisory services in connection with selecting, monitoring and supervising the Sub-adviser. 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, the Sub-adviser. The Board considered HFMC’s ongoing monitoring of people, process and performance, including its quarterly reviews of each of the Hartford funds, semi-annual meetings with the leaders of each Fund’s portfolio management team, and oversight of the Hartford funds’ portfolio managers. The Board noted 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 the Sub-adviser and ongoing oversight of the Sub-adviser’s investment approach and results, process for monitoring best execution of portfolio trades and other trading operations by the Sub-adviser, and approach to risk management with respect to the Funds and the service providers to the Funds. The Board considered HFMC’s oversight of the securities lending program for the Funds that engage in securities lending and noted the income earned by the Funds that participate in such program. The Board also considered HFMC’s day-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 oversight in this regard. Moreover, the Board considered HFMC’s oversight of potential conflicts of interest between the Funds’ investments and those of other funds or accounts managed by the Funds’ portfolio management personnel.
In addition, the Board considered HFMC’s ongoing commitment to review and rationalize the Hartford funds product line-up. In this regard, the Board considered that, at its June 16-17, 2020 meeting, the Board approved HFMC’s proposal to reorganize certain Hartford funds that are series of HLS or HLS II into several Funds. The Board considered that HFMC is responsible for providing the Funds’ officers.
With respect to the Sub-adviser, which provides certain day-to-day portfolio management services for the Funds, subject to oversight by HFMC, the Board considered, among other things, the Sub-adviser’s investment personnel, investment philosophy and process, investment research capabilities and resources, performance record, trade execution capabilities and experience. The Board considered the experience of each Fund’s portfolio manager(s), the number of accounts managed by the portfolio manager(s), and the Sub-adviser’s method for compensating the portfolio manager(s). The Board also considered the Sub-adviser’s succession planning practices to ensure continuity of portfolio management services provided to the Funds.
The Board considered the benefits to shareholders of investing in a fund that is part of the family of Hartford 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 the Sub-adviser.
Performance of each Fund and the Advisers
The Board considered the investment performance of each Fund. In this regard, the Board reviewed the performance of each Fund over different time periods presented in the materials and evaluated HFMC’s analysis of the Fund’s performance for these time periods. The Board considered information and materials provided to the Board by the Advisers concerning Fund performance, as well as information from Broadridge comparing the
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
investment performance of each Fund to an appropriate universe of peer funds. The Board noted that while it found the comparative data provided by Broadridge generally useful in evaluating a Hartford fund’s investment performance, the Board recognized the limitations of such data, including, in particular, that notable differences may exist between a Hartford fund and its peers. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below.
The Board considered the detailed investment analytics reports provided by HFMC’s Investment Advisory Group throughout the year, including in connection with the approval of the 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 compared to one or more appropriate benchmarks and relevant groups or categories of peer funds, various statistics concerning the Fund’s portfolio, a narrative summary of various factors affecting Fund performance, and commentary on the effect of current and recent market conditions. The Board also noted that the Hartford Capital Appreciation HLS Fund uses a multiple sleeve structure whereby each sleeve uses a different investment style, and the Board 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 considered that the Investment Committee, in its evaluation of investment performance at meetings throughout the year, focused particular attention on information indicating less favorable performance of certain Hartford funds for specific time periods and discussed with the Advisers the reasons for such performance. The Board also considered the analysis provided by the Consultant relating to each Fund’s performance track record.
In light of all the considerations noted above, the Board concluded that it had continued confidence in HFMC’s and the Sub-adviser’s overall capabilities to manage the Funds.
Costs of the Services and Profitability of the Advisers
The Board reviewed information regarding HFMC’s cost to provide investment management and related services to each Fund and HFMC’s profitability, both overall and for each Fund, on a pre-tax basis without regard to distribution expenses. The Board also requested and reviewed information about the profitability to HFMC and its affiliates from all services provided to each Fund and all aspects of their relationship with the Fund, including information regarding profitability trends over time and information provided by Broadridge analyzing the profitability of managers to other fund complexes. The Board also requested and received information relating to the operations and profitability of the Sub-adviser. The Board considered representations from HFMC and the Sub-adviser that the Sub-adviser’s fees were negotiated at arm’s length on a Fund-by-Fund basis and that the sub-advisory fees are paid by HFMC and not the Funds. Accordingly, the Board concluded that the profitability of the Sub-adviser is a less relevant factor with respect to the Board’s consideration of the Sub-Advisory Agreements.
The Board considered the Consultant’s review of the methodologies and estimates used by HFMC in calculating profitability in connection with the continuation of the Management Agreement, including a description of the methodology used to allocate certain expenses. The Board noted that the Consultant, at the Independent Directors’ request, performed a full review of HFMC’s process for calculating and reporting Fund profitability consistent with similar periodic reviews previously performed by the Consultant. The Board noted the Consultant’s view that such process is reasonable, 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 each Fund 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 16-17, 2020 and August 4-5, 2020 with respect to the services rendered to and the management fees to be paid by each Fund to HFMC and the total expense ratios of the Fund. The Board also considered comparative information with respect to the sub-advisory fees to be paid by HFMC to the Sub-adviser with respect to each Fund. In this regard, the Board requested and reviewed information from HFMC and the Sub-adviser relating to the management and sub-advisory fees, including the sub-advisory fee schedule for each Fund and 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. The Board considered such information from Broadridge in consultation with the Consultant. For details regarding each Fund’s expenses, see the Fund-by-Fund synopsis below.
The Board considered the methodology used by Broadridge to select the funds included in the expense groups. 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 views 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.
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
Economies of Scale
The Board considered information regarding the extent to which economies of scale may be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of shareholders of the Fund. The Board reviewed the breakpoints in the management fee schedule for each Fund, if any, which reduce fee rates as the Fund’s assets grow over time. The Board recognized that a Fund with assets beyond the highest breakpoint level will continue to benefit from economies of scale because additional assets are charged the lowest breakpoint fee resulting in lower overall effective management fee rates. The Board also recognized that a fee schedule that reaches a 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 a Fund 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 also noted that the assets under management had declined for certain Funds, and the Board considered the potential impact of such declines on the expense ratios for such Funds. The Board considered HFMC’s explanations for the net outflows of assets for certain Funds.
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 as part of its future review of the Agreements.
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, and the Board considered information on the profitability to HFMC from providing such services to the Funds. 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 provided by HFMC indicating that the transfer agency fees charged by HASCO to the Funds were fair and reasonable based on publicly available information. 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 the Sub-adviser from any use of a Fund’s brokerage commissions to obtain soft dollar research.
Fund-by-Fund Factors
For purposes of the Fund-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 primary benchmark reflects the net performance of the Fund’s Class IA shares as of March 31, 2020.
Hartford Balanced HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1- and 3-year periods and the 1st quintile for the 5-year period. The Board also noted that the Fund’s performance was below its custom blended benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. The Board noted 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 the 1- and 3-year periods and the 3rd quintile for the 5-year period. The Board also noted that the Fund’s performance was in line with its benchmark for the 1- and 3-year periods and below its benchmark for the 5-year period. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
| • | | The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. |
Hartford Disciplined Equity HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. |
| • | | The Board noted that the Fund’s contractual management fee was in the 3rd quintile of its expense group, while its actual management fee and total expenses (less 12b-1 and shareholder service fees) were in the 4th quintile. In considering the Fund’s expenses, the Board noted the shareholder savings expected to result from a contractual investment management fee reduction implemented in 2020. |
Hartford Dividend and Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 3rd quintile of its expense group. |
Hartford Healthcare HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period, the 3rd quintile for the 3-year period, and the 1st quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and below its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile of its expense group. |
Hartford International Opportunities HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1-, 3-, and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and in line with its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford MidCap HLS Fund
| • | | The Board noted that the Fund’s performance was in the 5th quintile of its performance universe for the 1- and 3-year periods and the 4th quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Small Cap Growth HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period and the 4th quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-year period and in line with its benchmark for the 3- and 5-year periods. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Small Company HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1- and 3-year periods and the 4th quintile for the 5-year period. The Board also noted that the Fund’s performance was above its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. The Board noted recent changes to the Fund’s portfolio management team. |
Approval of Investment Management and Investment Sub-Advisory Agreements (Unaudited) – (continued)
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Stock HLS Fund
| • | | The Board noted that the Fund’s performance was in the 2nd quintile of its performance universe for the 1-year period, and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was above its benchmark for the 1-, 3-, and 5-year periods. The Board noted recent changes to the Fund’s portfolio management team. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and total expenses (less 12b-1 and shareholder service fees) were in the 1st quintile of its expense group. |
Hartford Total Return Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 4th quintile of its performance universe for the 1-year period, the 3rd quintile for the 3-year period, and the 1st quintile for the 5-year period. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. |
| • | | The Board noted that the Fund’s contractual management fee, actual management fee, and its total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile of its expense group. |
Hartford Ultrashort Bond HLS Fund
| • | | The Board noted that the Fund’s performance was in the 3rd quintile of its performance universe for the 1-year period and the 1st quintile for the 3- and 5-year periods. The Board also noted that the Fund’s performance was below its benchmark for the 1- and 3-year periods and in line with its benchmark for the 5-year period. |
| • | | The Board noted that the Fund’s contractual management fee and actual management fee were in the 1st quintile of its expense group, while its total expenses (less 12b-1 and shareholder service fees) were in the 2nd quintile. |
* * * *
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.
Supplemental Proxy Information (Unaudited)
A joint special meeting of shareholders of the Funds was held on October 21, 2020, and which was adjourned to November 2, 2020 (the “Shareholder Meeting”). The Shareholder Meeting was held for the purpose of electing members of the Funds’ Board of Directors. Shareholders elected the following ten (10) Directors at the Shareholder Meeting:
The results of the shareholders’ election of Directors were as follows:
| | | | | | | | | | | | |
Hartford Series Fund, Inc. Shares Outstanding (as of Record Date): 777,992,232.177 Total Shares Voted: 623,550,267.362 Percentage of Shares Voted: 80.148% | |
Director | | Vote | | Total Shares Voted | | Percentage of
Shares Voted | | | Percentage
of Shares
Outstanding | |
Hilary E. Ackermann | | For: | | 603,822,033.164 | | | 96.837 | % | | | 77.613 | % |
| | Withheld: | | 19,728,234.198 | | | 3.163 | % | | | 2.535 | % |
Robin C. Beery | | For: | | 604,190,969.487 | | | 96.896 | % | | | 77.660 | % |
| | Withheld: | | 19,359,297.875 | | | 3.104 | % | | | 2.488 | % |
Lynn S. Birdsong | | For: | | 602,507,829.035 | | | 96.626 | % | | | 77.444 | % |
| | Withheld: | | 21,042,438.327 | | | 3.347 | % | | | 2.704 | % |
Derrick D. Cephas | | For: | | 602,574,253.518 | | | 96.637 | % | | | 77.452 | % |
| | Withheld: | | 20,976,013.844 | | | 3.363 | % | | | 2.696 | % |
James E. Davey | | For: | | 603,491,651.101 | | | 96.784 | % | | | 77.570 | % |
| | Withheld: | | 20,058,616.261 | | | 3.216 | % | | | 2.578 | % |
Christine R. Detrick | | For: | | 604,482,953.794 | | | 96.943 | % | | | 77.698 | % |
| | Withheld: | | 19,067,313.568 | | | 3.057 | % | | | 2.450 | % |
Andrew A. Johnson | | For: | | 603,495,488.428 | | | 96.784 | % | | | 77.571 | % |
| | Withheld: | | 20,054,778.934 | | | 3.216 | % | | | 2.577 | % |
Paul L. Rosenberg | | For: | | 602,596,824.040 | | | 96.640 | % | | | 77.455 | % |
| | Withheld: | | 20,953,443.322 | | | 3.360 | % | | | 2.693 | % |
Lemma W. Senbet | | For: | | 603,387,065.685 | | | 96.767 | % | | | 77.557 | % |
| | Withheld: | | 20,163,201.677 | | | 3.233 | % | | | 2.591 | % |
David Sung | | For: | | 602,660,023.267 | | | 96.650 | % | | | 77.463 | % |
| | Withheld: | | 20,890,244.095 | | | 3.350 | % | | | 2.685 | % |
Supplemental Proxy Information (Unaudited) – (continued)
| | | | | | | | | | | | |
Hartford HLS Series Fund II, Inc. Shares Outstanding (as of Record Date): 153,513,766.364 Total Shares Voted: 125,164,335.523 Percentage of Shares Voted: 81.532% | |
Director | | Vote | | Total Shares Voted | | Percentage of
Shares Voted | | | Percentage
of Shares
Outstanding | |
Hilary E. Ackermann | | For: | | 121,729,752.618 | | | 97.256 | % | | | 79.295 | % |
| | Withheld: | | 3,434,582.905 | | | 2.744 | % | | | 2.237 | % |
Robin C. Beery | | For: | | 121,769,840.436 | | | 97.288 | % | | | 79.321 | % |
| | Withheld: | | 3,394,495.087 | | | 2.712 | % | | | 2.211 | % |
Lynn S. Birdsong | | For: | | 121,473,773.144 | | | 97.052 | % | | | 79.128 | % |
| | Withheld: | | 3,690,562.379 | | | 2.948 | % | | | 2.404 | % |
Derrick D. Cephas | | For: | | 121,480,316.584 | | | 97.057 | % | | | 79.133 | % |
| | Withheld: | | 3,684,018.939 | | | 2.943 | % | | | 2.399 | % |
James E. Davey | | For: | | 121,399,218.362 | | | 96.992 | % | | | 79.080 | % |
| | Withheld: | | 3,765,117.161 | | | 3.008 | % | | | 2.452 | % |
Christine R. Detrick | | For: | | 121,859,631.780 | | | 97.360 | % | | | 79.380 | % |
| | Withheld: | | 3,304,703.743 | | | 2.640 | % | | | 2.152 | % |
Andrew A. Johnson | | For: | | 121,283,066.007 | | | 96.900 | % | | | 79.004 | % |
| | Withheld: | | 3,881,269.516 | | | 3.100 | % | | | 2.528 | % |
Paul L. Rosenberg | | For: | | 121,514,663.345 | | | 97.085 | % | | | 79.155 | % |
| | Withheld: | | 3,649,672.178 | | | 2.915 | % | | | 2.377 | % |
Lemma W. Senbet | | For: | | 121,413,131.859 | | | 97.003 | % | | | 79.089 | % |
| | Withheld: | | 3,751,203.664 | | | 2.997 | % | | | 2.443 | % |
David Sung | | For: | | 121,462,959.984 | | | 97.043 | % | | | 79.121 | % |
| | Withheld: | | 3,701,375.539 | | | 2.957 | % | | | 2.411 | % |
As of the date of the Shareholder Meeting, Mr. Duane E. Hill served as a Director and did not seek re-election. Mr. Hill continued to serve as a Director until his retirement on December 31, 2020.
THIS PRIVACY POLICY IS NOT PART OF THIS REPORT
CUSTOMER PRIVACY NOTICE
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c) grant access to protected data only to those people who must use it in the performance of their job-related duties.
Employees who violate our privacy policies and procedures may be subject to discipline, which may include termination of their employment with us.
We will continue to follow our Privacy Policy regarding Personal Information even when a business relationship no longer exists between us.
As used in this Privacy Notice:
Application means your request for our product or service.
Personal Financial Information means financial information such as:
a) credit history;
b) income;
c) financial benefits; or
d) policy or claim information.
Personal Financial Information may include Social Security Numbers, Driver’s license numbers, or other government-issued identification numbers, or credit, debit card, or bank account numbers.
Personal Health Information means health information such as:
a) your medical records; or
b) information about your illness, disability or injury.
Personal Information means information that identifies You personally and is not otherwise available to the public. It includes:
a) Personal Financial Information; and
b) Personal Health Information.
Transaction means your business dealings with us, such as:
a) your Application;
b) your request for us to pay a claim; and
c) your request for us to take an action on your account.
You means an individual who has given us Personal Information in conjunction with:
a) asking about;
b) applying for; or
c) obtaining;
a financial product or service from us if the product or service is used mainly for personal, family, or household purposes.
If you have any questions or comments about this privacy notice, please feel free to contact us at The Hartford – Consumer Rights and Privacy Compliance Unit, One Hartford Plaza, Mail Drop: T 04.180, Hartford, CT 06155, or at ConsumerPrivacyInquiriesMailbox@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 February 2021), to the extent required by the Gramm-Leach-Bliley Act and implementing regulations:
1stAGChoice, Inc.; Access CoverageCorp, Inc.; Access CoverageCorp Technologies, Inc.; Assurances Continentales Continentale Verzekeringen N.V; Bracht, Deckers & Mackelbert N.V.; Business Management Group, Inc.; Canal Re S.A.; 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 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 Lloyd’s Corporation; Hartford Lloyd’s Insurance Company; Hartford Management, Ltd.; Hartford Productivity Services LLC; 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.; 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; Millennium Underwriting Limited; MPC Resolution Company LLC; Navigators (Asia) Limited; Navigators Corporate Underwriters Limited; Navigators Holdings (Europe) N.V.; Navigators Holdings (UK) Limited; Navigators Insurance Company; Navigators International Insurance Company Ltd.; Navigators Management Company, Inc.; Navigators Management (UK) Limited; Navigators N.V.; Navigators Specialty Insurance Company; Navigators Underwriting Agency Limited; Navigators Underwriting Limited; New BDM NV; New England Insurance Company; New England Reinsurance Corporation; New Ocean Insurance Co., Ltd.; NIC Investments (Chile) SpA; Nutmeg Insurance Agency, Inc.; Nutmeg Insurance Company; Pacific Insurance Company, Limited; Property and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd; The Navigators Group, Inc.; Trumbull Flood Management, L.L.C.; Trumbull Insurance Company; Twin City Fire Insurance Company; Y-Risk, LLC.
Revised February 2021
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Series of Hartford Series Fund, Inc. and Hartford HLS Series Fund II, Inc. (each a “Fund” and collectively, the “Funds”) are not subsidiaries of The Hartford Financial Services Group, Inc. (“The Hartford”) but are underwritten, distributed by and advised by subsidiaries of The Hartford. Investments in the Funds are not guaranteed by The Hartford or any other entity.
This report is submitted for the general information of the shareholders of the Funds referenced in this report. It is not authorized for distribution to persons who are not shareholders of one or more Funds referenced in this report unless preceded or accompanied by a current prospectus for the relevant Fund. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of any Fund listed in this report. Such offering is only made by prospectus, which includes details as to the offering price and other material information.
Investors should carefully consider the investment objectives, risks, charges and expenses of a Fund. This and other important information is contained in a Fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.
The Funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA. Hartford Funds Management Company, LLC (HFMC) is the Funds’ investment manager. The Funds are sub-advised by Wellington Management Company LLP. HFD and HFMC are not affiliated with Wellington Management Company LLP.
HLSAR20 02-21 220826 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, 2019; $16,000 for the fiscal year ended December 31, 2020. |
| | (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, 2019; $6,000 for the fiscal year ended December 31, 2020. Audit-related services were principally in connection with consents for the registration statements relating to Fund mergers. |
| | (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: |
| | | $20,109 for the fiscal year ended December 31, 2019; $18,981 for the fiscal year ended December 31, 2020. Tax-related services were principally in connection with, but not limited to, general tax services, excise tax, and Passive Foreign Investment Company (PFIC) analysis. |
| | (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were: |
| | | $0 for the fiscal year ended December 31, 2019; $0 for the fiscal year ended December 31, 2020. |
| | (e) | (1) The Pre-Approval Policies and Procedures (the “Policy”) adopted by the Audit Committee of the registrant (also, the “Fund”) sets forth the procedures pursuant to which services performed by the independent registered public accounting firm for the registrant may be pre-approved. The following are some main provisions from the Policy. |
| | 1. | The Audit Committee must pre-approve all audit services and non-audit services that the independent registered public accounting firm provides to the Fund. |
| | 2. | The Audit Committee must pre-approve any engagement of the independent registered public accounting firm to provide non-audit services to any Service Affiliate (which is defined to include any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Fund) during the period of the independent registered public accounting firm’s engagement to provide audit services to the Fund, if the non-audit services to the Service Affiliate directly impact the Fund’s operations and financial reporting |
| | 3. | The Audit Committee shall pre-approve certain non-audit services to the Fund and its Service Affiliates pursuant to procedures set forth in the Policy. |
| | 4. | The Audit Committee, from time to time, may designate one or more of its members who are Independent Directors (each a “Designated Member”) to consider, on the Audit Committee’s behalf, any non-audit services, whether to the Fund or to any Service Affiliate, that have not been pre-approved by the Audit Committee. The Designated Member also shall review, on the Audit Committee’s behalf, any proposed material change in the nature or extent of any non-audit services previously approved. In considering any requested non-audit services or proposed material change in such services, the Designated Member shall not authorize services which would exceed $50,000 in fees for such services. |
| | 5. | The independent registered public accounting firm may not provide specified prohibited non-audit services set forth in the Policy to the Fund, the Fund’s investment adviser, the Service Affiliates or any other member of the investment company complex. |
| | (e) | (2) One hundred percent of the services described in items 4(b) through 4(d) were approved in accordance with the Audit Committee’s Pre-Approval Policy. As a result, none of such services was approved pursuant to paragraph (c)(7)(i)(c) of Rule 2-01 of Regulation S-X. |
| | (g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any |
| | sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were: |
| | | Non-Audit Fees: $20,109 for the fiscal year ended December 31, 2019; $24,981 for the fiscal year ended December 31, 2020. |
| | (h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| | (a) | The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the annual report filed under Item 1 of this form. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to this requirement.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are generally effective to provide reasonable assurance, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and |
| | procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Code of Ethics is filed herewith.
(a)(2) Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable
(a)(4) Not applicable
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | | |
| | | | HARTFORD HLS SERIES FUND II, INC. |
| | | |
| Date: March 5, 2021 | | | | 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 5, 2021 | | | | By: | | /s/ James E. Davey |
| | | | | | James E. Davey |
| | | | | | President and Chief Executive Officer |
| | | |
Date: March 5, 2021 | | | | By: | | /s/ Amy N. Furlong |
| | | | | | Amy N. Furlong |
| | | | | | Treasurer |
| | | | | | (Principal Financial Officer and Principal Accounting Officer) |
