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: 811-07589
THE HARTFORD MUTUAL FUNDS, INC.
(Exact name of registrant as specified in charter)
P. O. Box 2999, Hartford, Connecticut 06104-2999
(Address of Principal Executive Offices)
Kevin J. Carr, Esquire
Investment Law Unit
The Hartford Financial Services Group, Inc.
55 Farmington Avenue
Hartford, Connecticut 06105
(Name and Address of Agent for Service)
Registrant's telephone number, including area code: (860) 297-6443
Date of fiscal year end: October 31st
Date of reporting period: November 1, 2002 - October 31, 2003
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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
A message from the Chairman
Dear Fellow Shareholders,
At last it appears we are seeing signs of economic recovery in the U.S. and
abroad. In fact, the nation's gross domestic product grew at an 8.2% annual
growth rate in the third quarter. This more than doubled the second quarter of
and 2003 and represents the fastest growth rate in nearly 20 years. An improving
economy along with better than expected corporate profits have seemingly had a
positive impact on the stock market. Although there continues to be significant
volatility, the market as measured by the S&P 500 Index (1) posted a 20.8%
one-year return as of October 31, 2003.
During this same period, The Hartford Mutual Funds also experienced favorable
performance results. As of October 31, 2003, all thirty-three Funds within The
Hartford Mutual Funds Family with at least one year of performance history have
reported a positive one-year average annual return. This is good news after
three years of negative market performance. However, it's important that we keep
such short-term performance in perspective. Historically, investors who have
focused on the long-term have been rewarded over time.
Even with economic and market resurgence, the past few months have been
difficult for the mutual fund industry. Allegations of wrongdoing have been made
against several large fund companies. We have been following the news of
regulatory activity concerning the mutual fund industry very closely. The
Hartford Mutual Funds, like many other companies, will continue to support the
ongoing investigations of the Securities and Exchange Commission and the New
York attorney general's office. We will continue to monitor news and events as
they unfold.
We take great care and pride in the fact that you have entrusted us with your
money. Integrity is a guiding principle of our company and it's a virtue that
our parent, The Hartford Financial Services Group, Inc., has built a reputation
on for over 190 years. You can be assured it is a tradition that will remain
steadfast within our company.
Thank you for investing in The Hartford Mutual Funds.
Tom Marra
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
(1) The S&P 500 Index is an unmanaged list of 500 widely held U.S. common stocks
frequently used as a measure of U.S. stock market performance. It does not
represent the performance of a specific fund, and is not available for
direct investment.
<Table>
Annual Report
October 31, 2003 (ELK PHOTO)
</Table>
- Manager Discussions
- Financials
Please note that the responses to the
questions: How did the Fund perform?,
Why did the Fund perform this way? and
What is your outlook? represent the
views of the portfolio manager(s) of the
applicable fund.
(THE HARTFORD LOGO)
THE HARTFORD MUTUAL FUNDS, INC.
THE HARTFORD MUTUAL FUNDS II, INC.
TABLE
OF
CONTENTS
Manager Discussions (Unaudited) 1
The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.
Financial Statements
Schedule of Investments and Statements of Assets and Liabilities as of
October 31, 2003:
The Hartford Advisers Fund 36
The Hartford Capital Appreciation Fund 42
The Hartford Disciplined Equity Fund (formerly the Hartford Growth
and Income Fund) 45
The Hartford Dividend and Growth Fund 47
The Hartford Equity Income Fund 49
The Hartford Focus Fund 51
The Hartford Global Communications Fund 52
The Hartford Global Financial Services Fund 54
The Hartford Global Health Fund 56
The Hartford Global Leaders Fund 58
The Hartford Global Technology Fund 61
The Hartford Growth Fund 63
The Hartford Growth Opportunities Fund 65
The Hartford High Yield Fund 67
The Hartford Income Fund 77
The Hartford Inflation Plus Fund 83
The Hartford International Capital Appreciation Fund 85
The Hartford International Opportunities Fund 88
The Hartford International Small Company Fund 92
The Hartford MidCap Fund 96
The Hartford MidCap Value Fund 99
The Hartford Money Market Fund 102
The Hartford Short Duration Fund 105
The Hartford Small Company Fund 111
The Hartford SmallCap Growth Fund 113
The Hartford Stock Fund 116
The Hartford Tax-Free California Fund 118
The Hartford Tax-Free Minnesota Fund 121
The Hartford Tax-Free National Fund 124
The Hartford Tax-Free New York Fund 131
The Hartford Total Return Bond Fund 133
The Hartford U.S. Government Securities Fund 140
The Hartford Value Fund 142
The Hartford Value Opportunities Fund 144
Statements of Operations for the Period Ended October 31, 2003 146
Statements of Changes in Net Assets for the Periods Ended October 31,
2003 and 2002 156
Notes to Financial Statements 170
Financial Highlights 188
Report of Independent Auditors 210
Directors and Officers (Unaudited) 211
Federal Tax Information Notice (Unaudited) 218
Privacy Policy 223
IMPORTANT FUND INFORMATION
The following disclosure applies to all of The Hartford Mutual Funds:
The graphs on the following pages represent hypothetical investments in The
Hartford Mutual Funds. Past performance does not guarantee future results.
The value of shares will fluctuate so that, when redeemed, shares may be worth
more or less than their original cost. The chart and table do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares.
Performance information may reflect historical or current expense
waivers/reimbursements from an affiliate of the investment adviser, without
which performance would have been lower. For information on current expense
waivers/reimbursements, please see the prospectus.
<Table>
The Hartford Advisers Fund (1,2,3) The Hartford International Opportunities Fund
The Hartford Capital Appreciation Fund (1,2,3) (1,2,3)
The Hartford Disciplined Equity Fund (1,2,3) The Hartford International Small Company Fund
The Hartford Dividend and Growth Fund (1,2,3) (2,3)
The Hartford Equity Income Fund (2,3) The Hartford MidCap Fund (1,2,3)
The Hartford Focus Fund (2,3) The Hartford MidCap Value Fund (2,3)
The Hartford Global Communications Fund (2,3) The Hartford Short Duration Fund (2,3)
The Hartford Global Financial Services Fund The Hartford Small Company Fund (1,2,3)
(2,3) The Hartford SmallCap Growth Fund (4,5,6)
The Hartford Global Health Fund (2,3) The Hartford Stock Fund (1,2,3)
The Hartford Global Leaders Fund (2,3) The Hartford Tax-Free California Fund (2,3)
The Hartford Global Technology Fund (2,3) The Hartford Tax-Free Minnesota Fund (7,8,9)
The Hartford Growth Fund (4,5,6) The Hartford Tax-Free National Fund (7,8,9)
The Hartford Growth Opportunities (4,5,6) The Hartford Tax-Free New York Fund (2,3)
The Hartford High Yield Fund (2,3) The Hartford Total Return Bond Fund (1,2,3)
The Hartford Income Fund (2,3) The Hartford U.S. Government Securities Fund
The Hartford Inflation Plus Fund (2,3) (7,8,9)
The Hartford International Capital Appreciation The Hartford Value Fund (2,3)
Fund (2,3) The Hartford Value Opportunities Fund (4,5,6)
</Table>
( 1) Class C shares commenced operations on 7/31/98. Performance prior to
7/31/98 reflects Class B performance less Class C sales charges where
applicable.
( 2) The initial investment in Class A and C shares reflects the maximum sales
charge and Class B shares reflect a CDSC.
( 3) Growth of a $10,000 Investment in Class B, C and Y shares will vary from
the results seen on the following pages due to differences in the expenses
charged to these share classes.
( 4) New Class A, B and C shares were offered beginning on February 19, 2002.
Performance prior to that date is that of the fund's Class L, M and N
shares, respectively, which have lower operating expenses. Performance
prior to February 19, 2002 would have been lower if Class A, B and C share
expenses were applied during that period.
( 5) The initial investment in Class A, C and L shares reflects the maximum
sales charges and B, H, M and N shares reflect a CDSC.
( 6) Growth of a $10,000 Investment in Class B, C, H, L, M, N, Y and Z shares
will vary from the results seen on the following pages due to differences
in expenses charged to these share classes.
( 7) New Class A, B and C shares were offered beginning on February 19, 2002.
Performance prior to that date is of the fund's Class E, M and N shares,
respectively, which have lower operating expenses. Performance prior to
February 19, 2002 would have been lower if Class A, B and C share expenses
were applied during that period.
( 8) The initial investment in Class A, C, E and L shares reflects the maximum
sales charge and B, H, M and N shares reflect a CDSC.
( 9) Growth of a $10,000 Investment in Class B, C, E, H, L, M, N and Y shares
will vary from the results seen on the following pages due to differences
in expenses charged to these share classes.
(10) New Class Y shares were offered beginning on February 19, 2002.
Performance prior to that date is that of the fund's Class L shares.
Performance prior to February 19, 2002 would have been lower if Class Y
share expenses were applied during that period.
(11) New Class Y shares were offered beginning on February 19, 2002.
Performance prior to that date is that of the fund's Class E shares.
Performance prior to February 19, 2002 would have been lower if Class Y
share expenses were applied during that period.
1
COMPARATIVE BENCHMARKS appear throughout the fund commentary as a measure of
fund performance.
S & P 500 INDEX is a market capitalization weighted price index composed of 500
widely held common stocks.
S & P MIDCAP 400 INDEX is an unmanaged index measuring the performance of the
mid-size company segment of the U.S. market.
MSCI AC (ALL COUNTRY) WORLD FREE TELECOMMUNICATIONS SERVICES INDEX is a free
float-adjusted market capitalization index of developed and emerging market
countries that is designed to measure international equity market performance.
MSCI AC WORLD FREE EX U.S. INDEX is a broad based, unmanaged, market
capitalization weighted, total return index that measures the performance of
both developed and emerging stock markets, excluding the U.S.
MSCI WORLD INDEX is a broad based, unmanaged, market capitalization weighted,
total return index that measures the performance of 23 developed country global
stock markets, including the United States, Canada, Europe, Australia, New
Zealand and the Far East.
MSCI FINANCE EX-REAL ESTATE INDEX is a cap-weighted index that measures the
performance of financial stocks from around the world. This index excludes real
estate.
MSCI EAFE - the Morgan Stanley Capital International Europe, Australia and Far
East Index is a free float-adjusted capitalization index that is designed to
measure developed market equity performance, excluding the U.S. and Canada.
GOLDMAN SACHS HEALTH CARE INDEX is an unmanaged index designed to measure the
performance of companies in the health care sector. Issues in the index include
providers of health care related services including long-term care and
hospitalization facilities, health care management organizations and continuing
care services.
GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX is an unmanaged index designed to
measure performance of companies in the technology sector. Issues in the index
include producers of sophisticated devices, services and software related to the
fields of computers, electronics, networking and Internet services.
CITIGROUP BROAD MARKET EURO-PACIFIC <$2B INDEX takes the entire international
universe of all stocks, and divides it evenly each year to include only those
companies with a market cap between $100m and $2b regardless of country or
industry. This represents roughly the bottom 20% of the international equity
market.
RUSSELL 1000 GROWTH INDEX is an unmanaged index that measures the performance of
those Russell 1000 Index companies with higher price-to-book ratios and higher
forecasted growth values.
RUSSELL 2000 GROWTH INDEX is an unmanaged index of those Russell 2000 Index
growth companies with higher price-to-book ratios and higher forecasted growth
values.
RUSSELL 3000 GROWTH INDEX is an unmanaged index that measures the performance of
those Russell 3000 Index companies with higher price-to-book ratios and higher
forecasted growth values.
RUSSELL 1000 VALUE INDEX measures the performance of those Russell 1000 Index
companies with lower price-to-book ratios and lower forecasted growth values.
RUSSELL 2500 VALUE INDEX measures the performance of those Russell 2500 Index
companies with lower price-to-book ratios and lower forecasted growth values.
RUSSELL 3000 VALUE INDEX is an unmanaged index measuring the performance of
those Russell 3000 Index companies with lower price-to-book ratios and lower
forecasted growth values.
LEHMAN BROTHERS GOVERNMENT / CREDIT BOND INDEX is a broad based unmanaged,
market value-weighted index of all debt obligations of the U.S. Treasury and
U.S. Government agencies (excluding mortgage-backed securities) and of all
publicly issued fixed-rate, nonconvertible, investment grade domestic corporate
debt.
LEHMAN BROTHERS CORPORATE HIGH YIELD INDEX is an unmanaged broad-based market
value-weighted index that tracks the total return performance of non-investment
grade, fixed-rate, publicly placed, dollar denominated and nonconvertible debt
registered with the SEC.
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT INDEX is an unmanaged index of
government bonds with maturities of between one and ten years.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is an unmanaged index of municipal bonds
with maturities greater than two years.
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX is an unmanaged index and is composed
of securities from the Lehman Brothers Government / Credit Bond Index,
Mortgage-Backed Securities Index, Asset-Backed Securities Index and Commercial
Mortgage-Backed Securities Index.
LEHMAN BROTHERS CALIFORNIA EXEMPT INDEX is an unmanaged index of municipal bonds
issued by the State of California with maturities greater than two years.
LEHMAN BROTHERS NEW YORK EXEMPT INDEX is an unmanaged index of municipal bonds
issued by the State of New York with maturities greater than two years.
LEHMAN BROTHERS U.S. GOVERNMENT INDEX is an unmanaged index of government bonds
with maturities of one year or more.
LEHMAN BROTHERS U.S. TIPS INDEX represents securities that protect against
adverse inflation and provide a minimum level of real return. To be included in
this index, bonds must have cash flows linked to an inflation index, be
sovereign issues denominated in U.S. currency, and have more than one year to
maturity.
LEHMAN BROTHERS U.S. GOVERNMENT/CREDIT 1-5 YEAR INDEX is an unmanaged index
comprised of the U.S. Government/Credit component of the U.S. Aggregate Index.
The Government/Credit Index includes securities in the 1-5 year maturity range
in the Government and Credit Indices.
2
The Hartford Advisers Fund (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS
GOVERNMENT/CREDIT BOND
ADVISERS FUND S&P 500 INDEX INDEX
------------- ------------- ----------------------
7/22/96 9450 10000 10000
9516 10102 10020
9583 10317 10014
9952 10897 10192
10/96 10188 11198 10430
10773 12043 10622
10543 11805 10504
10923 12542 10517
10971 12641 10539
10705 12122 10413
11123 12845 10565
11589 13630 10664
12031 14236 10792
12750 15368 11122
12156 14507 10997
12667 15301 11170
10/97 12484 14790 11349
12889 15475 11409
13001 15741 11529
13127 15914 11691
13700 17061 11668
14179 17935 11704
14383 18118 11762
14247 17806 11888
14809 18529 12009
14907 18333 12019
13667 15684 12253
14226 16689 12604
10/98 14766 18044 12514
15258 19138 12590
15742 20240 12621
16063 21086 12711
15713 20430 12408
16195 21248 12470
16678 22070 12501
16296 21549 12373
16936 22745 12334
16633 22035 12300
16462 21925 12290
16243 21324 12400
10/99 16771 22674 12432
16953 23134 12425
17643 24495 12349
17074 23265 12346
17157 22825 12500
18317 25058 12681
17964 24304 12619
17692 23805 12608
17998 24391 12865
17840 24010 13001
18525 25501 13185
18034 24155 13235
10/00 18086 24054 13318
17538 22158 13546
17801 22267 13813
18111 23057 14045
17403 20957 14189
16719 19630 14255
17388 21153 14147
17510 21295 14229
17067 20777 14297
17079 20574 14653
16464 19288 14841
15820 17731 14977
10/01 16157 18070 15358
16808 19456 15106
16874 19627 14987
16648 19341 15096
16546 18967 15224
16822 19680 14915
15951 18488 15205
15860 18352 15345
15199 17045 15475
14721 15717 15661
14744 15820 16012
13812 14102 16356
10/02 14475 15342 16199
15126 16244 16208
14645 15290 16638
14381 14891 16638
14289 14668 16934
14314 14810 16912
15028 16029 17093
15638 16872 17621
15760 17088 17551
15818 17389 16815
15980 17728 16926
15925 17540 17419
10/03 16448 18531 17198
</Table>
<Table>
--- ADVISERS FUND -- LEHMAN BROTHERS GOVERNMENT/ --- S&P 500 INDEX
$9,450 starting value CREDIT BOND INDEX $10,000 starting value
$16,448 ending value $10,000 starting value $18,531 ending value
$17,198 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ----------------------------------------------------------
Advisers A# 7/22/1996 13.62% 2.18% 7.91%
- ----------------------------------------------------------
Advisers A## 7/22/1996 7.34% 1.03% 7.07%
- ----------------------------------------------------------
Advisers B# 7/22/1996 12.86% 1.46% 7.16%
- ----------------------------------------------------------
Advisers B## 7/22/1996 7.86% 1.10% 7.16%
- ----------------------------------------------------------
Advisers C# 7/22/1996 12.92% 1.50% 7.17%
- ----------------------------------------------------------
Advisers C## 7/22/1996 10.79% 1.30% 7.02%
- ----------------------------------------------------------
Advisers Y# 7/22/1996 14.28% 2.72% 8.45%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGERS
RAND L. ALEXANDER, CFA
Senior Vice President, Partner
PAUL D. KAPLAN
Senior Vice President, Partner,
Director of Fixed Income
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Advisers Fund Class A, before sales charge, returned 13.62% for the
twelve-month period ended October 31, 2003. The Fund underperformed both the
Lipper Flexible Average return of 16.6% and the Fund's Composite Index (S&P 500
55%: Lehman Brothers Government/ Credit 35%: T-Bill 10%) return of 13.8%.
WHY DID THE FUND PERFORM THIS WAY?
After a three-year decline, the US equity markets rallied during the period,
with the S&P 500 rising 20.79%. This surge in the broad market began with the
ending of the conflict in Iraq and has been fueled by increasing optimism that
the economy is in the early stages of rebounding as signaled by increases in
consumer confidence and manufacturing output, resilience in consumer spending
and productivity gains, and support from low interest rates and reduced tax
rates.
A significant shift took place during the third quarter of 2003 as fixed income
investors experienced their first negative quarterly return, albeit a modest
one, since the fourth quarter of 1999. Long interest rates rose significantly in
July as signs of a second-half recovery continued to appear. From a total-return
perspective, fixed income investors were dealt one of the harshest blows in
recent memory in July, as the Lehman Aggregate Index fell 3.36% during the month
in a broad-based bond market rout. However, Treasury bond prices recovered these
losses as the market began to question the view that the economic recovery had
fully taken hold. When the dust had settled, for the twelve-month period ended
October 31, 2003, the Lehman Aggregate Index posted a return of 4.91%.
During the period, our stock/bond/cash allocation mix was a positive contributor
to performance. Starting last year, we have been gradually increasing our stock
exposure as we began to see positive signs of a recovery. After being risk
adverse in 2002, investors moved into the riskiest areas of the market, bidding
up smaller and mid-size companies, particularly in Technology and ignoring
large-cap, high-quality companies with established track records. The Fund's
large-cap, high-quality discipline has not been helped by this development.
Strong stock selection in several sectors, most notably Health Care, Financials
and Energy, boosted our performance. Conversely, overall stock selection within
Technology, Consumer Discretionary, Consumer Staples and Industrials detracted
from performance. At the margin, the Fund's underweight position in
Telecommunications and overweight position in Materials helped performance. Two
of the strongest contributors to performance were Cisco (Technology) and
Citigroup (Financials). Cisco benefited from a rebound in technology spending
over the last year as well as new product introductions. Citigroup has executed
well, controlled costs and is leveraged to improving global capital markets.
During the period we added to Citigroup and held onto our position in Cisco.
The top three detractors from performance were SBC Communications
(Telecommunications), Schering-Plough (Pharmaceuticals) and Safeway (Consumer
Staples). Along with others in the telecom industry, SBC has struggled as a
result of overcapacity, competition, and new technologies. Schering-Plough has
suffered from competitive pressures across its key drug franchises as well as
from the switch of Claritin, their leading product, to the OTC market. Safeway
lowered its earnings guidance resulting from increasing operating costs.
Within the fixed-income portion of the Fund, our focus on high quality
instruments has been slightly detrimental as investors continue to focus on
lower quality fixed income securities. Nonetheless, we feel confident that our
style and approach are well devised and positioned to perform well in the future
as investors look for companies with proven performance and well-established
positioning in the marketplace.
WHAT IS YOUR OUTLOOK?
As we enter the final quarter of 2003, investor optimism surrounding the economy
and the equity markets has started to consolidate. Tax cuts, a weaker dollar,
sustained productivity, and healthier balance sheets all bode well for corporate
profits. As the economy continues to stabilize, we will look for improved
corporate spending and employment trends as key gauges to determine the
sustainability of the domestic recovery. At this juncture, we believe a
sustainable uptrend will in fact unfold and support growth in 2004. As a result
of these positive trends, we continue to see improvement in the business sector
and the Fund's strategic bias is positioned to take advantage of these positive
trends.
On the fixed-income side, the economy continues to show signs of a sustained
recovery and the bond market struggles with stronger economic indicators and a
central bank which has promised to remain accommodative for some extended period
of time. While we have outlined an environment that should be supportive of the
business sector and corporate balance sheets in particular, we have begun to
shift investments away from corporate bonds and back toward government
securities as the corporate sector has returned to fair value. An improving
economic environment is also supportive of our slightly shorter duration
posture, as interest rates should see sustained upward pressure over the next
twelve months.
3
The Hartford Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
CAPITAL APPRECIATION FUND S&P 500 INDEX
------------------------- -------------
7/22/96 9450 10000
9667 10102
10593 10317
11302 10897
10/96 11671 11198
12531 12043
13017 11805
14118 12542
14031 12641
13368 12122
13485 12845
16252 13630
17633 14236
19319 15368
19701 14507
21534 15301
10/97 20367 14790
20395 15475
20189 15741
19713 15914
21570 17061
22309 17935
22432 18118
20940 17806
21265 18529
20376 18333
15926 15684
16600 16689
10/98 18243 18044
19489 19138
20847 20240
22388 21086
21072 20430
22858 21248
24154 22070
25125 21549
26492 22745
26808 22035
25869 21925
25409 21324
10/99 27022 22674
29525 23134
34762 24495
34369 23265
39947 22825
39828 25058
35674 24304
33790 23805
37326 24391
36736 24010
40832 25501
39685 24155
10/00 38312 24054
34607 22158
37677 22267
39802 23057
37453 20957
35708 19630
38735 21153
39273 21295
38606 20777
36845 20574
35243 19288
30813 17731
10/01 31706 18070
33837 19456
35140 19627
33773 19341
32746 18967
34285 19680
32170 18488
31761 18352
29144 17045
26594 15717
27134 15820
25058 14102
10/02 26912 15342
29186 16244
27108 15290
26463 14891
26108 14668
25714 14810
27792 16029
29988 16872
30737 17088
31303 17389
32445 17728
32393 17540
10/03 34839 18531
</Table>
<Table>
--- CAPITAL APPRECIATION FUND --- S & P 500 INDEX
$9,450 starting value $10,000 starting value
$34,839 ending value $18,531 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------
Cap App A# 7/22/1996 29.46% 13.81% 19.62%
- ---------------------------------------------------------
Cap App A## 7/22/1996 22.43% 12.52% 18.70%
- ---------------------------------------------------------
Cap App B# 7/22/1996 28.45% 12.98% 18.79%
- ---------------------------------------------------------
Cap App B## 7/22/1996 23.45% 12.73% 18.79%
- ---------------------------------------------------------
Cap App C# 7/22/1996 28.60% 13.04% 18.83%
- ---------------------------------------------------------
Cap App C## 7/22/1996 26.31% 12.81% 18.67%
- ---------------------------------------------------------
Cap App Y# 7/22/1996 30.19% 14.39% 20.23%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
SAUL J. PANNELL, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Capital Appreciation Fund Class A, before sales charge, returned
29.46% for the twelve-month period ended October 31, 2003. The Fund's return
trailed the 33.0% return for the Composite Index (S&P 500 40%: Russell 2500
60%), but outperformed the Lipper Multi-Cap Core Average, which returned 23.8%
for the same time period and the 20.79% return for the S&P 500 Index.
WHY DID THE FUND PERFORM THIS WAY?
Equity markets continued to rise during the period as both the S&P 500 and
NASDAQ Composite added to the year's gains; over the past twelve months the S&P
500 has now gained over 20%. During the quarter, the optimism regarding the
economy that fueled the second quarter's sharp rally essentially became the
consensus view. All market cap styles benefited, with the performance of small-
and mid-cap stocks again exceeding that of large-cap equities. All ten S&P 500
sectors registered positive returns during the period with the strong results in
Financials, Information Technology, and Consumer Discretionary.
Our investment decisions, while based primarily on company-by-company
fundamental analysis, may also be shaped by secular themes. We try to emphasize
differences between our outlook and Wall Street consensus, and utilize a broad
array of other investment techniques. Our Fund is focused on providing
shareholders with maximum total returns. In seeking this level of high total
return, the investment approach seeks capital appreciation from all companies
regardless of market capitalization size, sector, or country. Having said this,
the Fund benefited the most from strong stock selection in Telecommunication
Services, Energy, and Materials, but these relative gains were slightly offset
by the relatively poor stock selection in Information Technology, Industrials,
and Health Care. The three largest contributors to performance were Nextel
Communications (Telecommunication Services) which benefited from continued
strength in its push-to-talk phone, Nortel Networks (Information Technology)
which rose on new contract awards and a debt outlook upgrade from a credit
agency, and Freeport-McMoran (Materials). The three biggest detractors from
performance were Northrop Grumman (Industrials), AGCO (Industrials), and
HealthSouth (Health Care). The Fund has exited the positions in these poor
performers. It is important to note that as the Fund has grown larger, the
portion of the Fund represented by small-caps has grown smaller. This has been
slightly detrimental to the overall performance of the Fund as small-caps have
been the strongest performing market cap category over this period.
WHAT IS YOUR OUTLOOK?
The performance of the equity markets over the past year suggests that investors
are ascribing a high probability to the emergence of an economic recovery in the
not-so-distant future. Although the stage appears to be set for a rebound,
direct evidence of a recovery has been slow in coming. Productivity gains,
improved financial flexibility, and a weaker dollar have only just started to
positively influence corporate earnings. More significant and sustained
increases in profits are likely necessary to impact capital spending and
employment trends in a manner that allows for a sustained, moderate recovery.
Tax cuts and low interest rates have provided a positive backdrop for an
economic recovery, but higher fiscal deficits and rising interest rates could
cause this safety net to be removed before the economy lands on its feet. With
this in mind, we continue to focus on stocks that can appreciate in the face of
shifting economic winds.
4
The Hartford Disciplined Equity Fund
(subadvised by Wellington Management Company, LLP)
(formerly The Hartford Growth and Income Fund)
PERFORMANCE OVERVIEW(3) 4/30/98 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
DISCIPLINED EQUITY FUND S&P 500 INDEX
----------------------- -------------
4/30/98 9450 10000
9242 9828
9591 10227
9591 10119
8269 8656
8829 9211
10/98 9625 9959
10155 10563
10847 11171
11197 11638
10790 11276
11311 11727
11652 12181
11416 11894
12145 12554
11889 12162
11719 12101
11369 11770
10/99 11861 12515
12178 12769
13104 13520
12359 12841
12330 12598
13648 13830
13104 13414
12779 13139
13249 13462
13143 13252
14029 14075
13182 13332
10/00 13124 13276
12074 12230
12254 12291
12855 12727
11813 11568
11171 10836
12073 11676
12173 11754
11922 11469
11663 11356
10971 10646
10059 9787
10/01 10380 9974
11112 10739
11212 10834
10952 10676
10631 10470
11022 10863
10251 10205
10150 10130
9299 9409
8657 8675
8707 8732
7755 7784
10/02 8447 8468
8898 8966
8397 8440
8117 8220
7987 8096
8037 8175
8659 8848
9130 9313
9210 9432
9331 9598
9542 9785
9542 9682
10/03 10103 10229
</Table>
<Table>
--- DISCIPLINED EQUITY FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$10,103 ending value $10,229 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------------
Disciplined Eqy A# 4/30/1998 19.57% 0.97% 1.21%
- -----------------------------------------------------------------
Disciplined Eqy A## 4/30/1998 13.00% -0.17% 0.18%
- -----------------------------------------------------------------
Disciplined Eqy B# 4/30/1998 18.73% 0.25% 0.50%
- -----------------------------------------------------------------
Disciplined Eqy B## 4/30/1998 13.73% -0.13% 0.33%
- -----------------------------------------------------------------
Disciplined Eqy C# 4/30/1998 18.70% 0.28% 0.52%
- -----------------------------------------------------------------
Disciplined Eqy C## 4/30/1998 16.51% 0.07% 0.33%
- -----------------------------------------------------------------
Disciplined Eqy Y# 4/30/1998 20.05% 1.49% 1.72%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
JAMES A. RULLO, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Disciplined Equity Fund Class A, before sales charge, returned
19.57% for the 12-month period ended October 31, 2003, modestly underperforming
its benchmark, the S&P 500 index, which returned 20.79%, but outperforming the
Lipper Large Cap Core Average, which returned 17.8% during the period.
WHY DID THE FUND PERFORM THIS WAY?
During the 12-month period ending October 31, 2003, equity markets rose sharply
with much of the gains occurring after March 2003. Within the S&P 500, all ten
sectors posted positive gains with the strong returns coming from Information
Technology, Materials, and Consumer Discretionary. Signs of an economic re-
acceleration are upon us, characterized by improvements in retail spending and
industrial production. We expect that progress in the labor market will play an
important role in sustaining economic growth in 2004.
The Fund slightly under-performed its market benchmark during the period,
primarily due to weak stock selection in the Consumer Discretionary and
Information Technology sectors. The portfolio maintains similar sector exposures
to that of the S&P 500 index. Within these two sectors, some of the names that
hurt the portfolio's relative performance were First Data, Microsoft and Time
Warner. Both First Data and Microsoft have lagged the general rally in
technology stocks as investors have gravitated towards largely more speculative
names. Both companies continue to execute and grow their earnings and the
relative performance is reflective of the somewhat defensive nature of the two
holdings. Time Warner stock continues to be plagued by its under-performing AOL
division and the hangover from ongoing SEC inquiries. In all three cases
mentioned above we continue to believe that the risk reward remains very
favorable and are maintaining our positions.
Despite weakness in these sectors, the Fund benefited from strong stock
selection within eight of the ten sectors, with very strong results in
Financials, Health Care and Telecommunications Services. Within these sectors
some of the names that added value to the portfolio were Countrywide Financial,
Genzyme and Nextel Communications. Countrywide Financial has been a significant
beneficiary of the refinancing boom and continues to gain share. Genzyme, a
large biotechnology concern focusing on genetic disorders and renal disease,
continues to show growing strength in sales of its drugs. Nextel Communications,
a wireless service provider, is gaining market share and will likely benefit
when the new Wireless Local Number Portability rules come into effect.
WHAT IS YOUR OUTLOOK?
In the current environment of accelerating growth, productivity is surging and
remains well above the rate of the 1990's, implying better corporate profits,
higher investments, and ultimately job creation. Although the theme of a jobless
recovery abounds, there are signs of better times for labor ahead. The number of
self-employed workers is growing and small businesses have expressed intentions
to step up hiring. We expect net employment gains to become more visible toward
the end of 2003. We believe the consumption environment will be sound next year,
bolstered by more jobs, tax cuts, and an improving net worth position of
households. Furthermore, the outlook for capital spending is solid and will
likely emerge as a new driver of growth.
5
The Hartford Dividend and Growth Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
DIVIDEND AND GROWTH FUND S&P 500 INDEX
------------------------ -------------
7/22/96 9450 10000
9545 10102
9695 10317
10149 10897
10/96 10423 11198
10990 12043
10894 11805
11409 12542
11589 12641
11142 12122
11504 12845
12246 13630
12906 14236
13652 15368
13002 14507
13768 15301
10/97 13356 14790
13988 15475
14270 15741
14454 15914
15066 17061
15858 17935
15771 18118
15509 17806
15671 18529
15553 18333
13565 15684
14415 16689
10/98 15434 18044
15895 19138
16335 20240
16179 21086
15933 20430
16325 21248
17330 22070
16887 21549
17456 22745
16913 22035
16478 21925
16041 21324
10/99 16962 22674
16867 23134
17083 24495
16393 23265
15470 22825
17173 25058
16960 24304
17317 23805
16774 24391
16774 24010
17725 25501
17893 24155
10/00 18242 24054
17883 22158
18800 22267
18509 23057
18337 20957
17746 19630
18653 21153
18967 21295
18479 20777
18597 20574
18002 19288
16830 17731
10/01 16841 18070
17748 19456
17938 19627
17983 19341
18258 18967
18744 19680
17970 18488
18135 18352
17185 17045
15855 15717
15744 15820
14034 14102
10/02 15065 15342
16075 16244
15392 15290
14870 14891
14559 14668
14528 14810
15586 16029
16577 16872
16717 17088
16874 17389
17242 17728
17035 17540
10/03 17840 18531
</Table>
<Table>
--- DIVIDEND AND GROWTH FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$17,840 ending value $18,531 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
Div & Growth A# 7/22/1996 18.42% 2.94% 9.12%
- --------------------------------------------------------------
Div & Growth A## 7/22/1996 11.91% 1.78% 8.28%
- --------------------------------------------------------------
Div & Growth B# 7/22/1996 17.52% 2.21% 8.34%
- --------------------------------------------------------------
Div & Growth B## 7/22/1996 12.52% 1.84% 8.34%
- --------------------------------------------------------------
Div & Growth C# 7/22/1996 17.67% 2.25% 8.38%
- --------------------------------------------------------------
Div & Growth C## 7/22/1996 15.49% 2.04% 8.24%
- --------------------------------------------------------------
Div & Growth Y# 7/22/1996 19.03% 3.50% 9.67%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
EDWARD P. BOUSA, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Dividend and Growth Fund Class A, before sales charge, returned
18.42% for the 12-month period ended October 31, 2003. The Fund under-performed
its competitive group, the Lipper Equity Income Average, which returned 19.9%
and the S&P 500 Index, the Fund's benchmark, which returned 20.79% over the same
period.
WHY DID THE FUND PERFORM THIS WAY?
During the 12-month period ended October 31, 2003, the economic picture has
improved, slowly. With both fiscal and monetary stimulation at sizable levels,
the economy should continue to strengthen and we expect Gross Domestic Product
to further improve in 2004. Productivity figures have been very strong as well,
having a very large positive impact on corporate earnings. However, job growth
has lagged the recovery, indicating that manufacturing jobs continue to go
overseas and that businesses are still cautious about hiring.
With respect to the Fund's relative results, our underperformance can be largely
attributed to our low exposure to high beta, speculative Information Technology
names and a handful of poor investments within the Telecommunications industry.
Our Technology underweight negatively impacted performance as the sector, fueled
by a recovery in semiconductors and hardware providers returned over 40% for the
period. In terms of our diversified Telecommunication provider holdings, we were
disappointed with the performance of Verizon and AT&T, which traded lower on
weaker than expected demand for their core services. On an absolute basis,
Schering-Plough (Pharmaceuticals) was the largest detractor from performance.
Schering-Plough faced competitive pressures across several key drug franchises.
At the end of the period, we continued to own AT&T, Verizon and Schering-Plough.
Our stock selection was particularly strong among Financials and Industrials
names, highlighted by significant positive contributions from Citigroup and
Caterpillar, respectively. Citigroup benefited from its leverage to rising
financial markets while Caterpillar experienced a significant up tick in orders
resulting in higher earnings levels relative to previous cycles. At the margin,
our macroeconomic strategies paid off as our overweight to Utilities and
underweight to Health Care and Consumer Staples boosted benchmark-relative
returns.
WHAT IS YOUR OUTLOOK?
The market was driven more by earnings in the third quarter, which was a
positive for our portfolio. We have remained conservative in our positioning, as
we do not think that the combination of a stronger economy, higher interest
rates, and a weaker dollar will lead to further multiple expansion. We are well
positioned for a shift from speculation on higher-valued growth stocks to more
reasonably priced companies.
6
The Hartford Equity Income Fund (subadvised by Wellington Management Company,
LLP)
PERFORMANCE OVERVIEW(3) 8/28/03 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
EQUITY INCOME FUND RUSSELL 1000 VALUE INDEX
------------------ ------------------------
8/28/03 9450 10000
9/03 9403 9902
10/03 9800 10508
</Table>
<Table>
--- EQUITY INCOME FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$9,800 ending value $10,508 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE SINCE INCEPTION
- --------------------------------------------------------
Equity Income A# 8/28/2003 3.70%
- --------------------------------------------------------
Equity Income A## 8/28/2003 -1.98%
- --------------------------------------------------------
Equity Income B# 8/28/2003 3.60%
- --------------------------------------------------------
Equity Income B## 8/28/2003 -1.40%
- --------------------------------------------------------
Equity Income C# 8/28/2003 3.60%
- --------------------------------------------------------
Equity Income C## 8/28/2003 2.60%
- --------------------------------------------------------
Equity Income Y# 8/28/2003 3.90%
- --------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
JOHN R. RYAN, CFA
Senior Vice President, Managing Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Equity Income Fund commenced operations on August 28, 2003. During
the two-month period ended October 31, 2003, the fund returned 3.70% for Class A
before sales charge. The Fund slightly under-performed both the Russell 1000
Value Index of 5.08% and its Lipper Equity Income peer group of 4.2%.
WHY DID THE FUND PERFORM THIS WAY?
US equity markets made modest progress during the period as investor enthusiasm
was bolstered by improving trends in the economy. In this environment, value
outperformed growth by 60 basis points. The broader market, as represented by
the S&P 500, returned 4.5%. Our orientation towards dividend paying securities
hurt relative performance during the period as companies with below market
yields significantly outperformed companies with above market yields.
The Fund's under-performance during this period was due primarily to poor stock
selection in Finance and Telecommunications, and an underweight in Technology.
In particular, the Fund's poor stock selection within Banks and Insurance were
large detractors of performance. The Telecommunications sector, as a whole,
continues to work its way through consolidation. Wireline carriers continue to
see pressure on access lines and pricing from regulatory, technological
substitution and economic issues. The top three detractors from performance were
Marsh and McLennan (Finance), Verizon (Telecommunications) and Exxon Mobil
(Energy). Marsh and McLennan's stock suffered from recent allegations of
improper trading within its wholly owned subsidiary, Putnam Investments. While
the news was unexpected, we believe its overall impact on the firm should not be
overly significant. While third quarter results were in-line with guidance,
Verizon is struggling from erosion of its core wireline business and labor cost
increases. Exxon Mobil was weak due to a production volume shortfall, which the
entire industry is experiencing and partially explains why oil prices have
remained high. As of the end of the period, all three stocks continued to be
held within the portfolio.
Partially offsetting our detractors was strong stock selection within
Industrials, Materials and Consumer Discretionary. Within Consumer
Discretionary, the Fund's underweight to media, an area that has under-performed
over the period due to weak advertising spending by corporations, was the prime
contributor to performance. Three contributors to performance during the period
were Morgan Stanley (Finance), Rockwell (Industrials) and Masco (Industrials).
All three positions were held as of the end of the period.
Despite an economic expansion that is nearly two years old, investors in the US
and abroad share a sense of unease as a result of a jobless recovery, unbalanced
dependence on consumer spending, and unsustainable deficits. Given this outlook,
we continue to build positions in long-cycle companies and believe that
long-term, the Fund is well positioned to benefit from the recovering economy.
WHAT IS YOUR OUTLOOK?
Economic stimulus from fiscal, monetary, and dollar policies, aided by the
self-healing mechanisms embedded in the economy, led us to expect an improvement
in growth in the second half of the year. With the third quarter Gross Domestic
Product growth in excess of 4%, our thesis remains intact. The only things that
have changed are the sharp equity market rally and the heightened sensitivity of
policy makers to structural issues that have become obvious over the last three
months.
7
The Hartford Focus Fund (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 5/24/01 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
FOCUS FUND S&P 500 INDEX
---------- -------------
5/24/01 9450 10000
9441 9715
9186 9479
8996 9386
8770 8798
8014 8088
10/01 8335 8242
9129 8874
9526 8952
9176 8822
9072 8651
9299 8977
8439 8433
8221 8371
7513 7775
7125 7169
7087 7216
6274 6432
10/02 6917 6998
7626 7409
7106 6974
6926 6792
6718 6690
6737 6755
7228 7311
7663 7696
7719 7794
8040 7931
8106 8086
7917 8000
10/03 8446 8452
</Table>
<Table>
--- FOCUS FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$8,446 ending value $8,452 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------
Focus A# 5/24/2001 22.13% -4.49%
- ---------------------------------------------------------
Focus A## 5/24/2001 15.36% -6.67%
- ---------------------------------------------------------
Focus B# 5/24/2001 21.24% -5.15%
- ---------------------------------------------------------
Focus B## 5/24/2001 16.24% -6.33%
- ---------------------------------------------------------
Focus C# 5/24/2001 21.27% -5.19%
- ---------------------------------------------------------
Focus C## 5/24/2001 19.06% -5.58%
- ---------------------------------------------------------
Focus Y# 5/24/2001 22.66% -4.05%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
RAND L. ALEXANDER, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Focus Fund Class A, before sales charge, returned 22.13% for the
12-month period ended October 31, 2003, outperforming its Lipper Large Cap Core
Average of 17.8% and the S&P 500 Index, the Fund's benchmark, 20.79%.
WHY DID THE FUND PERFORM THIS WAY?
Most major market indices posted positive returns during the period. On a
relative basis, small caps continued to outperform mid cap and large cap stocks
and value edged out growth by a small margin. All ten sectors of the S&P 500
posted positive gains for the period with strong results in Consumer
Discretionary, Materials and Technology.
Strong stock selection, within the Financial, Health Care, Materials and Energy
sectors, was the primary contributor to out-performance. At the margin, the
Fund's overweight positions within Information Technology and Consumer
Discretionary helped performance. Two of the strongest contributors to
performance were Cisco (Technology) and Genzyme (Biotechnology). Cisco benefited
from a rebound in technology spending over the last year as well as new product
introductions. Genzyme has had a strong year after 2 new product approvals by
the FDA, Fabryzyme and Aldurazyme as well as stronger sales of its leading
products, Renagel and Cerezyme.
Conversely not all of our stocks performed well during the period. In particular
poor stock selection within Consumer Staples, Consumer Discretionary and
Industrials detracted from performance. The top three detractors from
performance were Schering-Plough (Pharmaceutical), Baxter International (Health
Care Equipment) and Safeway (Consumer Staples). Schering-Plough has suffered
from competitive pressures across its key drug franchises as well as from the
switch of Claritin, their leading product, to the OTC market. Safeway lowered
their earnings guidance resulting from increasing operating costs and declining
margins due to competition from Wal-Mart. Finally, Baxter International had
disappointing results due to pricing and competition in the Factor VIII market,
one of their key growth drivers. All three stocks were eliminated from the
portfolio.
WHAT IS YOUR OUTLOOK?
Investor optimism surrounding the economy and the equity market has started to
consolidate. Tax cuts, a weaker dollar, sustained productivity, and healthier
balance sheets all bode well for corporate profits. The consumer has driven the
economic recovery so far; however, we will look for improved corporate spending
and employment trends as key gauges to determine the sustainability of the
domestic recovery. At this juncture, we believe a sustainable up-trend will in
fact unfold over the next several months and support growth in 2004.
8
The Hartford Global Communications Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 10/31/00 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MSCI AC WORLD
GLOBAL COMMUNICATIONS TELECOMMUNICATIONS SERVICES
FUND INDEX S&P 500 INDEX
--------------------- --------------------------- -------------
10/31/00 9450 10000 10000
7314 8625 9212
7399 8405 9257
8883 9231 9586
7068 7800 8713
5982 7362 8161
6492 7922 8794
5963 7313 8853
5689 6831 8638
5585 6911 8553
4791 6173 8019
4564 6248 7372
10/01 4319 6020 7513
4565 6306 8089
4697 6343 8160
4101 5776 8041
3601 5513 7886
3733 5585 8182
3317 4977 7686
3326 5009 7630
2882 4489 7087
2731 4254 6534
2882 4250 6577
2504 3594 5863
10/02 3061 4411 6378
3392 4883 6753
3241 4595 6357
3156 4494 6191
3137 4261 6098
3080 4208 6157
3383 4513 6664
3666 5055 7015
3864 5098 7104
3874 4978 7229
3987 4964 7370
4063 4994 7292
10/03 4412 5234 7704
</Table>
<Table>
--- GLOBAL COMMUNICATIONS FUND --- MSCI AC WORLD FREE TELECOMMUNICATIONS
$9,450 starting value SERVICES INDEX
$4,412 ending value $10,000 starting value
$5,234 ending value
-- S & P 500 INDEX
$10,000 starting value
$7,704 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------------
Global Comm A# 10/31/2000 44.14% -22.42%
- ---------------------------------------------------------------
Global Comm A## 10/31/2000 36.15% -23.86%
- ---------------------------------------------------------------
Global Comm B# 10/31/2000 43.57% -22.92%
- ---------------------------------------------------------------
Global Comm B## 10/31/2000 38.57% -23.70%
- ---------------------------------------------------------------
Global Comm C# 10/31/2000 43.26% -22.97%
- ---------------------------------------------------------------
Global Comm C## 10/31/2000 40.83% -23.23%
- ---------------------------------------------------------------
Global Comm Y# 10/31/2000 45.40% -22.03%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGEMENT TEAM
ARCHANA BASI, CFA
Vice President, Portfolio Coordinator, Global Industry Analyst
DAVID NINCIC, CFA
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Communications Fund Class A, before sales charge, returned
44.14% for the twelve-month period ended October 31, 2003. The Fund strongly
outperformed the MSCI AC (All Country) World Free Telecommunication Services
Index, which returned 18.66%, and the Lipper Telecommunications Mutual Fund
Average, which returned 34.1% over the same period.
WHY DID THE FUND PERFORM THIS WAY?
Global telecommunications was one of the best performing sectors as the Fund's
return of 44% far exceeded the 24.3% gain of the MSCI World Index. The Fund's
outperformance over the twelve-month period relative to the MSCI AC World Free
Telecommunications Services Index was driven almost entirely by superior stock
selection across all of the sub-sectors invested in by the portfolio. Within the
Integrated/Diversified Telecommunications sector, disappointing investments in
AT&T and SBC Communications were more than offset by the exceptional performance
of such holdings as Citizens Communications (US), Telekom Austria (Austria), and
Telekom South (South Africa). In general, we continue to find increasingly
attractive wireline opportunities in less developed countries as revenue
opportunities significantly outpace those within more mature developed markets.
Our wireless holdings performed exceptionally well during the period, led by
Nextel Communications (US), and Mobistar (Belgium). Our sub-sector rotation was
also a positive driver of performance during the period, as we moved to an
overweight position in the Integrated Telecommunications and a slight
underweight position within the Wireless Telecommunications sub-sector.
WHAT IS YOUR OUTLOOK?
We believe that the remainder of 2003 and 2004 will be tough for both wireline
and wireless stocks. Wireline carriers face access line declines and voice
substitutions to wireless, which is already bearing itself out in financial
results. Wireless carriers outside of the U.S. should experience weak subscriber
growth, and price competition is intensifying throughout the world. Despite a
difficult telecom industry backdrop, we believe that the Fund can continue to
find underpriced stocks of companies with solid business fundamentals, which are
not appreciated by the market.
9
The Hartford Global Financial Services Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 10/31/00 - 10-/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GLOBAL FINANCIAL SERVICES MSCI FINANCIAL EX REAL ESTATE
FUND INDEX S&P 500 INDEX
------------------------- ----------------------------- -------------
10/31/00 9450 10000 10000
9091 9618 9212
10036 10358 9257
9857 10361 9586
9630 9685 8713
9290 9114 8161
9715 9501 8794
9941 9447 8853
9989 9364 8638
9885 9166 8553
9715 9066 8019
8836 8104 7372
10/01 8854 8117 7513
9100 8533 8089
9384 8630 8160
8949 8330 8041
8921 8183 7886
9402 8772 8182
9430 8799 7686
9298 8912 7630
8987 8423 7087
8079 7630 6534
8070 7728 6577
7134 6668 5863
10/02 7588 7314 6378
8004 7672 6753
7566 7225 6357
7205 6988 6191
7025 6841 6098
6987 6711 6157
7718 7651 6664
8098 8089 7015
8184 8199 7104
8458 8560 7229
8430 8496 7370
8581 8700 7292
10/03 9217 9399 7704
</Table>
<Table>
--- GLOBAL FINANCIAL SERVICES FUND --- MSCI FINANCE EX REAL ESTATE INDEX
$9,450 starting value $10,000 starting value
$9,217 ending value $9,399 ending value
-- S&P 500 INDEX
$10,000 starting value
$7,704 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Global Fin Ser A# 10/31/2000 21.48% -0.82%
- ------------------------------------------------------------------
Global Fin Ser A## 10/31/2000 14.76% -2.67%
- ------------------------------------------------------------------
Global Fin Ser B# 10/31/2000 20.58% -1.52%
- ------------------------------------------------------------------
Global Fin Ser B## 10/31/2000 15.58% -2.52%
- ------------------------------------------------------------------
Global Fin Ser C# 10/31/2000 20.58% -1.52%
- ------------------------------------------------------------------
Global Fin Ser C## 10/31/2000 18.37% -1.85%
- ------------------------------------------------------------------
Global Fin Ser Y# 10/31/2000 22.01% -0.39%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGEMENT TEAM
MARK T. LYNCH, CFA
Senior Vice President,
Partner, Portfolio Coordinator,
Global Industry Analyst
ERIC HALET
Vice President, Global Industry Analyst
R. ANDREW HEISKELL
Assistant Vice President,
Global Industry Analyst
JENNIFER L. NETTESHEIM, CFA
Vice President, Global Industry Analyst
THEODORE SHASTA, CFA
Senior Vice President,
Partner, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Financial Services Fund Class A, before sales charge,
returned 21.48% for the twelve-month period ended October 31, 2003. The Fund
underperformed its benchmark, the MSCI Finance ex-Real Estate Index, which
returned 28.51%, and the Lipper Financial Services Mutual Fund Average, which
returned 25.7% over the period.
WHY DID THE FUND PERFORM THIS WAY?
During the period, financial stocks globally had positive returns that were
stronger than other broad sectors as the MSCI Financials sector returned 29.0%
versus the 24.3% return of the MSCI World Index. Relative to the MSCI Finance
ex-Real Estate Index, the Fund's thematic sub-sector allocation decisions were
the primary driver of underperformance. In particular, the Fund was underweight
in the strong-performing Diversified Financials sub-sector, which benefited from
the improved condition of the financial markets and the resultant increase in
business. On the other hand, the Fund was overweight the Insurance Brokers which
were weak as a result of company-specific issues at Marsh & McLennan and
underlying business weakness at Clark.
Stock selection on an overall basis detracted from the Fund's relative
performance over the period with poorest results in the Investment Banking and
Brokerage sub-industry. The largest detractors were Investment Technology Group
(Diversified Financial), Clark (Insurance Broker), and Mitsubishi Tokyo
Financial (Commercial Bank), which were not held in the Fund as of the end of
the period. The largest contributors to absolute return were Unicredito
(Commercial Bank), Merrill Lynch (Diversified Financial), and Royal Bank of
Scotland (Commercial Bank).
WHAT IS YOUR OUTLOOK?
We continue to have a favorable view of Insurance Companies while remaining
cautious on Diversified Financials and Banks. Our favorable outlook on insurers
is based on a continued strong property-casualty pricing cycle; premiums in the
casualty business continue to rise. In addition, these companies benefit from
stable or higher interest rates, an improving economy, and a better tone in the
capital markets. Our cautious view of the banking industry is based on
uncertainty surrounding the market's perception of the unfolding economic
recovery, i.e., whether businesses spend excess cash accumulated through
deposits over the last few years rather than ramping up their borrowing from
banks as expected by the market.
10
The Hartford Global Health Fund (subadvised by Wellington Management Company,
LLP)
PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GOLDMAN SACHS HEALTH CARE
GLOBAL HEALTH FUND S&P 500 INDEX INDEX
------------------ ------------- -------------------------
5/01/00 9450 10000 10000
9620 9795 10274
11323 10036 11392
11503 9879 11007
12118 10493 11404
12923 9939 11907
10/00 13112 9897 12194
13463 9117 12366
13965 9162 12814
13168 9487 11631
13128 8623 11576
12321 8077 10544
12980 8704 11004
13590 8762 11246
13678 8549 10963
13599 8465 11263
13392 7936 10975
12958 7296 10889
10/01 13264 7435 10905
13987 8006 11488
14168 8076 11271
13765 7958 10969
13816 7804 10914
14188 8098 11051
13705 7607 10360
13283 7551 10158
12077 7014 9192
11756 6467 8991
11524 6509 9055
10831 5803 8572
10/02 11485 6313 8969
12273 6684 9220
11674 6292 8901
11499 6127 8906
11117 6035 8752
11230 6094 9018
12211 6595 9434
13409 6942 9873
13718 7031 10297
13770 7155 10337
13637 7295 10111
13946 7217 10126
10/03 14246 7625 10225
</Table>
<Table>
--- GLOBAL HEALTH FUND -- GOLDMAN SACHS HEALTH CARE INDEX
$9,450 starting value $10,000 starting value
$14,246 ending value $10,225 ending value
--- S & P 500 INDEX
$10,000 starting value
$7,625 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------
Global Health A# 5/1/2000 24.02% 12.44%
- -----------------------------------------------------------------
Global Health A## 5/1/2000 17.24% 10.64%
- -----------------------------------------------------------------
Global Health B# 5/1/2000 23.13% 11.60%
- -----------------------------------------------------------------
Global Health B## 5/1/2000 18.13% 10.94%
- -----------------------------------------------------------------
Global Health C# 5/1/2000 23.11% 11.61%
- -----------------------------------------------------------------
Global Health C## 5/1/2000 20.88% 11.29%
- -----------------------------------------------------------------
Global Health Y# 5/1/2000 24.50% 13.10%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGEMENT TEAM
JOSEPH H. SCHWARTZ, CFA
Senior Vice President, Partner, Portfolio Coordinator
Global Industry Analyst
ANN C. GALLO
Senior Vice President, Partner, Global Industry Analyst
JEAN M. HYNES, CFA
Senior Vice President, Partner, Global Industry Analyst
KIRK J. MAYER, CFA
Vice President, Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Health Fund Class A, before sales charge, returned 24.02%
for the twelve-month period ended October 31, 2003. The Fund outperformed the
Goldman Sachs Health Care Index, which returned 14.00%, and the Lipper Health
and Biotechnology Mutual Fund Average, which returned 21.1% over the period.
WHY DID THE FUND PERFORM THIS WAY?
During the period, Health Care stocks globally had positive returns but were
weaker than other broad sectors as the MSCI Health Care sector returned 9.0%
versus the 24.3% return of the MSCI World Index. Overall, the market commonly
regards the Health Care sector as being more a defensive sector; the environment
over the last year benefited more cyclical areas of the market. Relative to the
Goldman Sachs Health Care Index, both sub-sector allocation and stock selection
decisions drove Fund outperformance.
Over the period, the Fund maintained an overweight to Biotechnology stocks
relative to the benchmark. We remain of the belief that valuations in this
sub-sector do not adequately reflect the potential of new product pipelines that
have been building in recent years reflecting technological developments within
the Biotechnology and Genomics arena. This positioning has served the Fund well
as investors have flocked back to the more speculative sectors of the market,
including Biotechnology. In addition, stock selection was particularly strong
within the Pharmaceuticals sub-sector.
The best absolute contributors within the portfolio during this time period
included Genzyme (Biotechnology), which won new drug approvals from the FDA,
Guidant (Health Care Equipment) which benefited from a slower-than-expected
decline in its bare metal stent sales, and AstraZeneca (Pharmaceuticals) which
continued to enjoy superior performance versus the other major pharmaceutical
stocks due to its growth outlook. The greatest detractors were Schering-Plough
(Pharmaceuticals) where the company experienced competitive pressures across
several key drug franchises, HealthSouth (Health Care Provider), a stock held
for an interim time during the period, and Vertex Pharmaceuticals
(Biotechnology). At the end of the period, we continued to own Schering-Plough
and Vertex.
WHAT IS YOUR OUTLOOK?
Among the Health Care sub-sectors, we see the greatest opportunities in
Pharmaceutical and Biotechnology stocks. With regard to Pharmaceutical
companies, product introductions have historically provided these companies with
a significant ability to leverage cost bases. Investment opportunities are
present in cases where the market underestimates a company's profit leverage.
In Biotechnology, favorable prospects to develop and sell breakthrough medicines
remain unchanged. Biotechnology companies are highly leveraged to the FDA's
greater risk tolerance for approval of orphan cancer drugs.
Within the Health Care Services sub-sector, we are at or very near the peak in
the health insurance pricing cycle. Consolidation in the industry is likely to
continue, as health insurance companies realize that slower enrollment growth
and reduced premium pricing flexibility is forthcoming. The positive spread
between premium rate increases and medical cost inflation will narrow in 2004.
Within the Medical Devices sub-sector, several years of strong relative
performance for Medical Technology stocks have left fewer stocks with attractive
valuations, though fundamentals remain strong.
11
The Hartford Global Leaders Fund (subadvised by Wellington Management Company,
LLP)
PERFORMANCE OVERVIEW(3) 9/30/98 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GLOBAL LEADERS FUND MSCI WORLD INDEX
------------------- ----------------
9/30/98 9450 10000
10/98 10697 10906
11482 11556
12320 12122
12932 12389
12572 12061
13176 12565
13478 13062
13011 12587
13878 13176
14072 13138
13995 13117
13800 12991
10/99 14697 13668
15775 14054
18196 15194
17481 14325
19461 14367
19393 15361
18472 14713
17962 14342
18766 14827
18135 14411
19149 14883
18341 14092
10/00 17287 13858
16263 13019
16870 13231
16870 13488
15319 12349
14265 11540
15370 12397
15052 12243
14764 11861
14395 11704
13598 11145
12412 10164
10/01 12781 10360
13876 10975
13945 11045
13487 10711
13387 10620
13815 11092
13347 10720
13616 10745
12760 10095
11674 9245
11555 9264
10201 8247
10/02 11167 8857
12153 9337
11087 8886
10838 8617
10578 8470
10429 8447
11595 9201
12292 9732
12581 9904
12891 10108
13249 10328
12890 10393
10/03 13906 11011
</Table>
<Table>
--- GLOBAL LEADERS FUND --- MSCI WORLD INDEX
$9,450 starting value $10,000 starting value
$13,906 ending value $11,011 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION
- ---------------------------------------------------------------------------
Global Leaders A# 9/30/1998 24.53% 5.39% 7.89%
- ---------------------------------------------------------------------------
Global Leaders A## 9/30/1998 17.71% 4.20% 6.70%
- ---------------------------------------------------------------------------
Global Leaders B# 9/30/1998 23.62% 4.63% 7.11%
- ---------------------------------------------------------------------------
Global Leaders B## 9/30/1998 18.62% 4.30% 6.96%
- ---------------------------------------------------------------------------
Global Leaders C# 9/30/1998 23.76% 4.68% 7.17%
- ---------------------------------------------------------------------------
Global Leaders C## 9/30/1998 21.52% 4.47% 6.96%
- ---------------------------------------------------------------------------
Global Leaders Y# 9/30/1998 25.24% 5.93% 8.45%
- ---------------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
ANDREW S. OFFIT, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Leaders Fund Class A, before sales charge, returned 24.53%
for the twelve-month period ended October 31, 2003. The Fund outperformed the
MSCI World Index benchmark return of 24.32% and the Lipper Global Funds Average
return of 23.6%.
WHY DID THE FUND PERFORM THIS WAY?
The rebound in the global equity markets was broad based, with all developed
markets participating in the advance and the majority of the ten broad market
sectors of the MSCI World Index registering double-digit returns. The rally was
propelled by continued signs of improvement in the global economy and reduced
uncertainty in the geopolitical arena. At the regional level, performance was
strongest within Japan and Asia excluding Japan. Performance within the United
States and the United Kingdom was less robust during the period.
While we do not manage the Fund by country weights but, instead, focus solely on
sector and stock weights, countries and regions played a part in our
outperformance for the period. The Fund was helped by being overweight Europe
and hurt by being underweight Japan and Canada. Our outperformance was largely
driven by strong stock selection within Information Technology, Consumer
Discretionary, and Financials, while security selection within Consumer Staples
and Materials detracted from performance. Three of the largest contributors to
performance were the French technology hardware company Alcatel, the Canadian
technology hardware company Nortel Networks, and the Japanese software services
company Yahoo Japan. Alcatel has benefited from solid earnings reports. Three of
the largest detractors from performance were Lukoil, the Russian oil and gas
company, Tandberg, the Norwegian communications equipment company, and the US
conglomerate, Tyco. Lukoil continued to struggle during the period after the
arrest of oil tycoon Mikhail Khodorkovsky on charges of fraud, theft and tax
evasion.
WHAT IS YOUR OUTLOOK?
We remain underweight in Financial Services, an area that continues to have
overcapacity issues that remain to be addressed, and where it is generally
difficult to find good companies that have above market growth rates. We
continue to have the highest conviction in the Technology sector, and remain
convinced that, as time moves on, this sector can benefit from improving
fundamentals and easier year-over-year comparisons. Overall, we continue to be
positioned for economic growth and focused on companies that have improving
prospects or where fundamentals are better than generally believed. We do not
plan to change our investment approach, as we continue to believe that sector
fundamentals and underlying company business trends are the most significant
contributors to security selection.
12
The Hartford Global Technology Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 5/1/00 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GOLDMAN SACHS TECHNOLOGY
GLOBAL TECHNOLOGY FUND COMPOSITE INDEX S & P 500 INDEX
---------------------- ------------------------ ---------------
5/1/00 9450 10000 10000
8512 8780 9795
9812 9860 10036
9180 9400 9879
10425 10623 10493
8929 8902 9939
10/00 8102 8230 9897
6146 6346 9117
5930 5802 9162
6868 6754 9487
5367 4882 8623
4626 4204 8077
5479 5006 8704
5217 4807 8762
5301 4819 8549
4954 4476 8465
4194 3893 7936
3265 3106 7296
10/01 3762 3605 7435
4429 4219 8006
4588 4144 8076
4541 4140 7958
3978 3587 7804
4279 3842 8098
3763 3372 7607
3547 3234 7551
3181 2777 7014
2862 2496 6467
2824 2463 6509
2308 2024 5803
10/02 2796 2466 6313
3284 2897 6684
2824 2470 6292
2871 2448 6127
2862 2491 6035
2852 2463 6094
3162 2720 6595
3509 3024 6942
3547 3016 7031
3744 3189 7155
3988 3410 7295
3941 3360 7217
10/03 4391 3688 7625
</Table>
<Table>
--- GLOBAL TECHNOLOGY FUND --- GOLDMAN SACHS TECHNOLOGY COMPOSITE INDEX
$9,450 starting value $10,000 starting value
$4,391 ending value $3,688 ending value
-- S & P 500 INDEX
$10,000 starting value
$7,625 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------------
Global Tech
A#........... 5/1/2000 57.05% -19.67%
- ---------------------------------------------------------------
Global Tech
A##.......... 5/1/2000 48.57% -20.95%
- ---------------------------------------------------------------
Global Tech
B#........... 5/1/2000 56.16% -20.06%
- ---------------------------------------------------------------
Global Tech
B##.......... 5/1/2000 51.16% -20.94%
- ---------------------------------------------------------------
Global Tech
C#........... 5/1/2000 56.16% -20.06%
- ---------------------------------------------------------------
Global Tech
C##.......... 5/1/2000 53.60% -20.48%
- ---------------------------------------------------------------
Global Tech
Y#........... 5/1/2000 57.81% -19.32%
- ---------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGEMENT TEAM
SCOTT E. SIMPSON
Senior Vice President, Partner, Portfolio Coordinator, Global Industry Analyst
JOHN F. AVERILL, CFA
Senior Vice President, Partner
Global Industry Analyst
BRUCE L. GLAZER
Vice President, Global Industry Analyst
ANITA M. KILLIAN, CFA
Vice President, Global Industry Analyst
VIKRAM MURTHY
Assistant Vice President
Global Industry Analyst
ERIC STROMQUIST
Senior Vice President, Partner
Global Industry Analyst
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Global Technology Fund Class A, before sales charge, returned
57.05% for the twelve-month period ended October 31, 2003. The Fund outperformed
both the Goldman Sachs Technology Composite Index, which returned 49.55%, and
the Lipper Science and Technology Mutual Fund Average, which returned 53.3% over
the period.
WHY DID THE FUND PERFORM THIS WAY?
A high degree of confidence returned to the market, especially benefiting more
speculative or higher beta areas of the market. This investor sentiment was
favorable for many Technology names as the sector appreciated over 43% during
the period, easily surpassing the broad-based MSCI World Index return of 24.3%.
The sector is showing clear signs of stabilization, evidenced by a series of
favorable data points such as a pick-up in personal computer unit sales and high
growth among computer storage companies. In addition, after a prolonged slump,
global semiconductor sales have improved markedly thanks to higher average
selling prices and increased demand for personal computers and wireless
handsets. Among wireless handsets, an upgrade cycle is underway, led by
camera-enabled phones. To round out the positive news flow within the sector, a
period of consolidation has begun among software companies and data processing
companies who continue to benefit from strong demand.
During the period, the Fund's outperformance relative to its market benchmark,
the Goldman Sachs Technology Composite Index, was driven primarily by strong
fundamental, bottom-up stock selection with some value added coming from
overweights to a handful of outperforming sub-industries. Overall, our stock
picking amongst Hardware & Equipment and Semiconductors names was most
beneficial to our relative results. Our high exposure to the Computer Storage
area, which returned over 118% for the period, also contributed to performance.
In terms of specific names, the greatest contributors to absolute return were
Technology Hardware & Equipment companies Maxtor and Cisco Systems, which
benefited from the pick-up in corporate storage and infrastructure spending, and
Commercial Services & Supplies Company Cendant. On the negative side, the
greatest detractors were Microsoft (software & services), which lagged the
strong performance of more speculative technology names over the period, BISYS
Group (Software & Services), and Time Warner (Media), a stock which recovered
sharply following poor returns during the first three months of the period based
on market concerns about the outlook for the AOL business. Time Warner was not
held in the Fund as of the end of the period.
WHAT IS YOUR OUTLOOK?
Technology advances show no signs of slowing down. The computer and
telecommunications revolution has barely begun. Demand for technology should
continue to strengthen as corporate profits improve. However, many Technology
stocks already fully reflect a recovery case. We continue to find attractive
stocks but stock selection will become increasingly critical. The technology
market, which has supported this year's global equity rebound, may have now
become stretched from a valuation standpoint. This is a sector that will keep
offering some solid investment opportunities to the investment professional, but
the opportunistic speculator may find it a difficult one to second-guess.
13
The Hartford Growth Fund (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH FUND RUSSELL 1000 GROWTH INDEX
----------- -------------------------
10/31/93 9450 10000
9156 9934
9383 10106
9654 10339
9567 10151
9167 9661
9259 9707
9297 9854
8918 9563
9259 9890
9936 10441
9795 10298
10/94 10152 10541
9660 10204
9621 10375
9689 10596
9962 11040
10300 11362
10323 11611
10641 12017
11406 12480
11997 13000
12071 13014
12085 13614
10/95 11806 13623
12193 14153
11696 14234
12032 14709
12289 14979
12431 14998
12751 15392
13098 15930
13024 15952
12232 15017
12477 15405
13457 16526
10/96 13594 16625
14329 17874
13867 17523
14490 18752
14156 18624
13411 17617
13912 18787
15229 20143
15821 20949
17260 22800
16791 21467
17575 22523
10/97 17035 21689
16919 22611
17167 22865
17373 23548
18616 25319
19645 26329
19714 26693
19393 25935
20522 27522
20171 27340
17053 23236
18242 25021
10/98 19152 27033
20266 29090
22255 31714
23317 33575
22451 32041
23605 33729
23956 33773
23461 32736
24533 35028
24131 33914
23513 34467
23090 33743
10/99 24677 36291
25902 38250
29971 42228
28990 40248
32051 42216
31855 45239
29108 43085
28218 40914
29278 44015
28820 42180
31201 45997
30782 41646
10/00 29552 39676
26800 33828
28488 32759
27187 35022
25917 29075
24228 25912
27078 29190
27156 28761
26319 28094
25514 27391
23376 25151
21316 22641
10/01 22044 23829
24096 26119
24328 26070
23600 25608
22934 24545
23631 25395
21740 23322
21291 22758
19354 20653
18068 19517
18300 19576
16844 17546
10/02 18440 19155
19494 20195
18300 18799
17898 18342
17588 18258
18176 18598
19711 19972
20671 20969
21152 21258
21493 21787
21942 22330
21880 22091
10/03 23538 23332
</Table>
<Table>
--- GROWTH FUND --- RUSSELL 1000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$23,538 ending value $23,332 ending value
</Table>
PORTFOLIO MANAGER
ANDREW J. SHILLING, CFA
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(4,5,10) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION
- -------------------------------------------------------------------
Growth A# 6/8/1949 27.65% 4.21% 9.55% 11.24%
- -------------------------------------------------------------------
Growth A## 6/8/1949 20.65% 3.04% 8.94% 11.13%
- -------------------------------------------------------------------
Growth B# 11/14/1994 26.85% 3.47% NA* NA*
- -------------------------------------------------------------------
Growth B## 11/14/1994 21.85% 3.20% NA* NA*
- -------------------------------------------------------------------
Growth C# 11/14/1994 26.85% 3.48% NA 9.18%
- -------------------------------------------------------------------
Growth C## 11/14/1994 24.58% 3.10% NA 9.05%
- -------------------------------------------------------------------
Growth H# 11/14/1994 27.10% 3.51% NA* NA*
- -------------------------------------------------------------------
Growth H## 11/14/1994 23.10% 3.24% NA* NA*
- -------------------------------------------------------------------
Growth L# 6/8/1949 28.13% 4.31% 9.61% 11.27%
- -------------------------------------------------------------------
Growth L## 6/8/1949 22.08% 3.29% 9.07% 11.17%
- -------------------------------------------------------------------
Growth M# 11/14/1994 27.04% 3.50% NA* NA*
- -------------------------------------------------------------------
Growth M## 11/14/1994 23.04% 3.23% NA* NA*
- -------------------------------------------------------------------
Growth N# 11/14/1994 27.04% 3.51% NA 9.20%
- -------------------------------------------------------------------
Growth N## 11/14/1994 26.04% 3.51% NA 9.20%
- -------------------------------------------------------------------
Growth Y# 2/19/2002 28.22% NA NA 1.56%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Fund Class A returned 27.65% for the 12 month period ended
October 31, 2003 outperforming the Russell 1000 Growth Index, the Fund's
benchmark, 21.81%, and the Lipper Large Cap Growth Average 19.1%.
WHY DID THE FUND PERFORM THIS WAY?
During the period, large cap stocks continued to under-perform small and mid cap
stocks while value marginally outperformed growth. All ten sectors of the
Russell 1000 Growth Index posted positive returns for the period with Utilities,
Telecommunications and Materials leading the way.
The Fund's out-performance during the period was primarily due to strong stock
selection, which added value in Financials, Health Care and Consumer
Discretionary. Within these sectors, stock selection within Banks,
Pharmaceuticals and Media all helped boost returns. In each of these industries,
we have been able to find attractive banks and media companies that stand to
benefit from the recovery in the economic cycle and invest in pharmaceutical
companies with solid product cycles. In keeping with the investment approach of
the Fund, which is to invest in sectors that have the potential to outperform
the market long-term, the Fund's significant underweight position in Consumer
Staples, a defensive sector, significantly added to overall performance. Three
top contributors to performance were Countrywide Financial (Financials), eBay
(Retail) and Guidant (Health Care Equipment). As of the end of the period, all
three stocks were held in the portfolio.
Partially offsetting these results was weaker stock selection within Technology,
excluding a few successes, and Industrials. At the margin, the Fund's
underweight position in Telecommunications, a strong performer, and Utilities, a
defensive sector, detracted from performance. Three detractors from performance
were Schering-Plough (Pharmaceuticals), CVS (Consumer Staples), and Samsung
(Technology). The pharmaceutical industry is under pressure from both Washington
and from the pending expiration of several of the larger companies' patented
blockbuster drugs. Schering-Plough specifically is undergoing competitive
pressures across several key drug franchises. We were concerned about the
increased level of competition from the food and discount retailers on CVS. At
Samsung, we were concerned about the pricing of global memory products coupled
with currency movements. All three stocks were eliminated from the portfolio as
of period end.
The portfolio is well positioned to benefit from acceleration in worldwide
economic growth, which we expect to see over the next twelve months.
WHAT IS YOUR OUTLOOK?
The key to a sustained recovery is that the current upswing broadens. The
consumption environment will be sound next year, bolstered by more jobs, tax
cuts and an improving net worth position of households. The outlook for capital
spending is even better. After more than two years of downsizing, corporations
are faced with an aging capital stock and will use the continued profits
expansion to upgrade their investments, especially in the technology area. We
expect capital spending to emerge as a new driver of growth, outpacing
consumption spending for the first time in several years.
14
The Hartford Growth Opportunities Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
GROWTH OPPORTUNITIES FUND RUSSELL 3000 GROWTH INDEX
------------------------- -------------------------
10/31/93 9450 10000
9105 9904
9402 10094
9640 10330
9696 10155
8951 9652
8686 9696
8451 9809
7855 9508
8010 9814
8696 10377
8749 10254
10/94 8759 10482
8461 10139
8631 10315
8513 10491
8739 10935
8996 11255
8948 11493
9368 11870
10243 12363
10902 12922
11037 12951
11392 13513
10/95 11003 13453
11172 13983
10831 14086
11035 14497
11521 14802
11442 14848
12014 15314
12347 15876
12139 15784
11046 14755
11489 15205
12540 16278
10/96 12583 16296
13180 17445
12691 17168
13329 18295
12586 18080
11710 17074
11823 18092
13137 19512
13680 20283
15065 22005
14591 20898
15366 21993
10/97 14689 21127
14568 21879
14435 22102
14216 22670
15482 24402
16271 25380
16371 25713
15977 24877
16831 26288
15986 25936
13046 21871
14067 23593
10/98 14729 25438
15285 27376
17174 29845
17708 31567
16338 30017
17198 31563
17210 31794
16753 30894
17975 33016
17939 31970
18253 32366
18336 31774
10/99 19659 34062
21943 36017
26391 39939
26040 38174
33693 40560
30554 42855
27950 40652
26237 38502
30225 41555
29274 39694
33254 43325
33283 39357
10/00 30393 37401
24552 31802
27307 30985
26824 33150
23368 27598
20774 24631
22734 27739
22535 27409
22488 26880
21958 26095
20471 23995
17309 21499
10/01 18189 22686
20016 24846
20724 24903
20504 24432
19270 23379
20284 24268
19280 22387
19031 21789
16897 19785
15242 18562
14878 18614
13692 16719
10/02 14649 18209
15979 19248
14830 17918
14629 17479
14429 17374
14830 17694
16180 19025
17433 20050
17940 20333
18112 20910
18926 21473
18677 21219
10/03 20332 22459
</Table>
<Table>
--- GROWTH OPPORTUNITIES FUND --- RUSSELL 3000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$20,332 ending value $22,459 ending value
</Table>
PORTFOLIO MANAGER
MICHAEL T. CARMEN, CFA
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- --------------------------------------------------------------------
Growth Opp A# 3/31/1963 38.80% 6.66% 7.96% 12.82%
- --------------------------------------------------------------------
Growth Opp A## 3/31/1963 31.17% 5.46% 7.35% 12.67%
- --------------------------------------------------------------------
Growth Opp B# 11/14/1994 37.93% 5.91% NA* NA*
- --------------------------------------------------------------------
Growth Opp B## 11/14/1994 32.93% 5.73% NA* NA*
- --------------------------------------------------------------------
Growth Opp C# 11/14/1994 38.03% 5.92% NA 9.23%
- --------------------------------------------------------------------
Growth Opp C## 11/14/1994 35.65% 5.55% NA 9.10%
- --------------------------------------------------------------------
Growth Opp H# 11/14/1994 38.31% 5.98% NA* NA*
- --------------------------------------------------------------------
Growth Opp H## 11/14/1994 34.31% 5.79% NA* NA*
- --------------------------------------------------------------------
Growth Opp L# 3/31/1963 39.34% 6.77% 8.02% 12.84%
- --------------------------------------------------------------------
Growth Opp L## 3/31/1963 32.75% 5.74% 7.49% 12.70%
- --------------------------------------------------------------------
Growth Opp M# 11/14/1994 38.36% 5.98% NA* NA*
- --------------------------------------------------------------------
Growth Opp M## 11/14/1994 34.36% 5.79% NA* NA*
- --------------------------------------------------------------------
Growth Opp N# 11/14/1994 38.36% 5.98% NA 9.27%
- --------------------------------------------------------------------
Growth Opp N## 11/14/1994 37.36% 5.98% NA 9.27%
- --------------------------------------------------------------------
Growth Opp Y# 2/19/2002 39.54% NA NA 3.16%
- --------------------------------------------------------------------
Growth Opp Z# 3/1/1996 39.70% 7.11% NA 8.36%
</Table>
# Without sales charge
## With sales charge
NA Not Applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Growth Opportunities Fund Class A, before sales charge, returned
38.80% for the twelve-month period ended October 31, 2003. The Fund outperformed
the Russell 3000 Growth Index, which returned 23.36%, and the Lipper Multi-Cap
Growth Mutual Fund Average, which returned 28.3% over the same period.
WHY DID THE FUND PERFORM THIS WAY?
Small- and mid-capitalization stocks were "the place to be" in the US equity
markets, as these stocks handily outperformed larger cap stocks and posted
strong absolute returns. Boosted by improving news on the economic front and
earnings comparisons that were beginning to look more compelling, investors
continued to bid up US equities through the end of October, especially small-
and mid-cap stocks. The stagnant labor markets continued to be a source of
concern.
Much debate was centered on whether the snapback from the March lows was "too
far, too fast" for many stocks, especially Information Technology names, but the
bears lost to the bulls in this debate, at least for now. The two areas that
appeared to be showing the most robust recovery, PCs and Wireless, ignited the
spark of investor sentiment elsewhere in the sector. Simply put, investors were
banking on a stronger economy to eventually lead to an increase in capital
investment. Since the second quarter of 2003, lower quality and/or high beta
names have attracted the most investor interest.
The Fund was well served by our higher above-index exposure to both small- and
mid-cap companies. In addition, our outperformance can also be attributed to
strong relative stock selection across all but a couple of sectors. Health Care,
Consumer Discretionary, Industrials were the areas in which our investments
excelled the most. Only within Information Technology were we disappointed with
our stock selection and low relative exposure. However, we can live with this
result as it was a reflection of our aversion to holding some of the more
speculative, high beta names in the universe, which tended to do well during the
period.
For the twelve-month period, the greatest contributors to absolute Fund returns
were Cendant (Industrials), American Tower (Telecommunications), and St. Jude
Medical (Health Care). The stock of global business provider Cendant gained on
continued strength in real estate, improvement in travel services, and progress
with its Avis/Budget integration. The largest detractors from absolute Fund
returns were Nokia (Information Technology), Schering-Plough (Health Care), and
NDC Health (Health Care), all of which were eliminated from the portfolio prior
to period end.
Investor optimism surrounding the economy and the equity markets has mostly
taken uniform shape. Tax cuts, a weaker dollar, sustained productivity, and
healthier balance sheets all bode well for corporate profits. As the growth
trajectory continues, we will continue to look for improved corporate spending
and employment trends. Entering the remainder of 2003 and looking to 2004, the
Fund's Consumer Discretionary position is significantly overweight relative to
the benchmark; we continue to seek companies that we consider market share
gainers. In other areas of the growth universe, the Fund's overweight to the
Telecommunications Services sector is a partial offset to the underweight to the
Information Technology sector, where we feel valuations continue to be
stretched.
WHAT IS YOUR OUTLOOK?
The performance of the equity markets over the past year suggests that investors
are ascribing a high probability to the emergence of an economic recovery in the
not-so-distant future. Although the stage appears to be set for a rebound,
direct evidence of a recovery has been slow in coming. Productivity gains,
improved financial flexibility, and a weaker US dollar have only just started to
positively influence corporate earnings. More significant and sustained
increases in profits are likely necessary to impact capital spending and
employment trends in a manner that allows for a sustained, moderate recovery.
Tax cuts and low interest rates have provided a positive backdrop for an
economic recovery, but higher fiscal deficits and rising interest rates could
cause this safety net to be removed before the economy lands on its feet. With
this in mind, we continue to focus on stocks that can appreciate in the face of
shifting economic winds.
15
The Hartford High Yield Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 9/30/98 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMBROTHERS CORPORATE HIGH YIELD
HIGH YIELD FUND INDEX
--------------- ---------------------------------
9/30/98 9550 10000
10/98 9529 9795
9857 10201
9869 10213
10017 10364
10008 10303
10138 10401
10326 10602
10124 10459
10114 10437
10103 10479
10027 10363
9987 10288
10/99 10040 10220
10168 10341
10211 10457
10120 10412
10106 10431
10010 10212
10049 10229
9913 10123
10173 10330
10280 10408
10424 10479
10359 10388
10/00 10175 10056
9921 9657
10274 9844
10957 10581
11014 10722
10764 10469
10624 10339
10689 10525
10339 10230
10497 10381
10586 10503
9961 9797
10/01 10358 10039
10686 10406
10570 10363
10464 10436
10109 10290
10215 10538
10314 10702
10209 10646
9641 9862
9193 9431
9308 9700
9076 9572
10/02 9097 9489
9660 10077
9759 10218
10006 10558
10197 10688
10377 10996
10921 11648
11103 11768
11332 12107
11054 11974
11155 12112
11501 12442
10/03 11707 12694
</Table>
<Table>
--- HIGH YIELD FUND --- LEHMAN BROTHERS CORPORATE HIGH YIELD INDEX
$9,550 starting value $10,000 starting value
$11,707 ending value $12,694 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------
High Yield A# 9/30/1998 28.69% 4.21% 4.09%
- ------------------------------------------------------------
High Yield A## 9/30/1998 22.85% 3.25% 3.15%
- ------------------------------------------------------------
High Yield B# 9/30/1998 27.83% 3.48% 3.36%
- ------------------------------------------------------------
High Yield B## 9/30/1998 22.83% 3.20% 3.22%
- ------------------------------------------------------------
High Yield C# 9/30/1998 27.84% 3.50% 3.38%
- ------------------------------------------------------------
High Yield C## 9/30/1998 25.56% 3.30% 3.18%
- ------------------------------------------------------------
High Yield Y# 9/30/1998 29.27% 4.62% 4.49%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGERS
DAVID HILLMEYER, CFA
Vice President
CHRISTINE MOZONSKI, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford High Yield Fund
Class A placed in the 2nd quartile with a total return, before sales charge, of
28.69% verses the return of 33.77% for the Lehman Brothers Corporate High Yield
Index and the return of 29.21% for the Lipper peer group.
The primary objective of the Hartford High Yield Fund is to provide high current
income by investing in non-investment grade debt securities. Growth of capital
is a secondary objective. As of October 31, 2003, the SEC yield for this Fund's
Class A shares is 5.63%.
WHY DID THE FUND PERFORM THIS WAY?
While the Fund's performance suffered somewhat recently due to issue selection
in long-dated securities and holdings in the Chemical sector, performance over
the past year has been strong. The High Yield sector posted tremendous returns
in the first couple of months this year as we experienced improvement in
fundamentals and increased demand as prices responded favorably to corporate
de-leveraging. "CCC"-rated issuers significantly outperformed "BB"-rated
securities as investors continued to reach for yield. The Utility and Technology
sectors led returns, while the consumer-related sectors, such as Gaming, Lodging
and Automotive, underperformed the broader market. The majority of the
underperformance within those consumer-related sectors was due to outright low
yields in a bull market rally and back-up in Treasury rates. The Fund benefited
from exposure to the Technology and Wireline sectors as they were major
providers of return, supplemented by the underweight position in the Gaming and
Textile sectors.
WHAT IS YOUR OUTLOOK?
The market technicals, which include new issue supply and cash flows within the
high yield retail mutual fund universe, have been a driving force behind recent
returns. Although we have witnessed fundamental improvement across many
different industries, we have yet to realize significant restoration in revenue
growth. Much of today's profitability has come through cost cutting rather than
top-line growth. We are encouraged by the most recent quarterly numbers for the
Standard and Poor's 500 companies which showed that corporate revenue was
beginning to improve. In addition, as long as the market continues to observe a
favorable technical environment, we believe the high yield market will perform
well relative to other fixed income asset classes.
If high yield managers were to lose market share to equity investors in terms of
cash flows, we would likely see the lower rated securities begin to
underperform. We anticipate maintaining the Fund's emphasis on industries poised
to lead the US economy toward higher growth, which include technology and basic
industry cyclicals.
We continue to find value in the Paper, Lodging, Technology and Construction
Machinery sectors. The Fund remains overweight to Lodging because of improving
fundamentals and companies discussing a more favorable operating environment for
the sector, which includes indications the business traveler is returning. The
paper sector continues to be represented by an overweight, with a focus on those
companies that would enjoy significant operating leverage from a declining
dollar and are not solely dependent upon the lumber business. Furthermore, the
paper sector remains in its cyclical trough; however, we are beginning to see
some signs that this trend could reverse. We are also overweight to the
Technology sector but valuations have led us to realize some gains in the
sector. The recent improvement in the Capital Goods sector is leading us to
maintain an overweight position to the Construction Machinery sector.
16
The Hartford Income Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S. AGGREGATE BOND
INCOME FUND INDEX
----------- -----------------------------------
10/31/02 9550 10000
9663 9997
9821 10204
9885 10213
10046 10354
10100 10346
10316 10432
10461 10626
10542 10604
10195 10248
10274 10316
10564 10589
10/03 10581 10491
</Table>
<Table>
--- INCOME FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$10,581 ending value $10,491 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------
Income A# 10/31/2002 10.79% 10.79%
- ----------------------------------------------------------
Income A## 10/31/2002 5.82% 5.82%
- ----------------------------------------------------------
Income B# 10/31/2002 10.01% 10.01%
- ----------------------------------------------------------
Income B## 10/31/2002 5.01% 5.01%
- ----------------------------------------------------------
Income C# 10/31/2002 10.22% 10.22%
- ----------------------------------------------------------
Income C## 10/31/2002 8.12% 9.12%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGERS
CHRISTINE MOZONSKI, CFA
Vice President
WILLIAM DAVISON, CFA
Managing Director
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Income Fund Class A
placed in the 2nd quartile with a total return, before sales charge, of 10.79%
versus the 10.41% for the Lipper peer group and a return of 4.91% for the Lehman
Brothers U.S. Aggregate Bond Index.
The primary objective of the Hartford Income Fund is to provide a high level of
current income. Capital appreciation is a secondary objective. As of October 31,
2003, the SEC yield for this Fund's Class A shares is 4.54%.
WHY DID THE FUND PERFORM THIS WAY?
Throughout the past year, the Fund has benefited from its overweight in the
Industrial sector and security selection in Treasury Inflation Protected
Securities (TIPS) as they have been major providers of income. Strong
performance can also be attributed to our maintaining the credit barbell
strategy with 50% of the Fund in "AAA"-rated securities and 34% of the portfolio
in below investment grade securities. The credit barbell strategy allows the
Fund to pick up yield through an allocation to high yield bonds, while
maintaining an overall "A" credit rating. The Fund's overweight to high yield
bonds has contributed positively to performance. Corporate credit prices
continued to improve over the past couple of months as the market anticipated an
economic recovery. We continue to believe that the balance sheet repair taking
place in the credit markets will benefit bond prices of such issuers.
We recently reduced our cash position as we found attractive yield opportunities
for the Fund. We also brought down our non-dollar position last quarter since we
were concerned that the dollar was firming and could rebound from prior lows.
Toward the end of September, the uncertainty was behind us and we put the non-
dollar position back on. Yields in Australia still provide an attractive pick up
over comparable Treasuries. The Fund's mortgage position was increased with the
expectation that we were in a trading range from which mortgages should benefit.
WHAT IS YOUR OUTLOOK?
Some of the anxiety surrounding the war with Iraq may be over, but uncertainty
about the US economy remains. While the credit market continues to struggle with
questionable accounting practices, excess capacity and limited pricing power,
the strong technical picture has helped as issuer specific problems are failing
to pull down entire sectors as we experienced in 2002. Despite these problems,
balance sheet repair continues, resulting in improved credit metrics and more
stability of ratings. Our theme remains to allocate to lower-rated credits.
Going forward, we expect the economy to continue to grow and interest rates to
rise slightly from here for the balance of the year. We are closely watching
durable goods orders and unemployment claims as they tend to be leading
indicators that business spending is increasing and that the economy is turning
around. The portfolio is positioned for this scenario with exposure to
corporates and high yield.
17
The Hartford Inflation Plus Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INFLATION PLUS FUND LEHMAN BROTHERS U.S. TIPS INDEX
------------------- -------------------------------
10/31/02 9550 10000
9527 9993
9841 10329
9889 10406
10244 10796
10082 10622
10036 10594
10507 11096
10406 10983
9920 10476
10071 10663
10389 11016
10/03 10411 11075
</Table>
<Table>
--- INFLATION PLUS FUND --- LEHMAN BROTHERS U.S. TIPS INDEX
$9,550 starting value $10,000 starting value
$10,411 ending value $11,075 ending value
</Table>
AVERAGE ANNUAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Inflation Plus A# 10/31/2002 9.02% 9.02%
- ------------------------------------------------------------------
Inflation Plus A## 10/31/2002 4.13% 4.13%
- ------------------------------------------------------------------
Inflation Plus B# 10/31/2002 8.41% 8.41%
- ------------------------------------------------------------------
Inflation Plus B## 10/31/2002 3.41% 3.41%
- ------------------------------------------------------------------
Inflation Plus C# 10/31/2002 8.31% 8.31%
- ------------------------------------------------------------------
Inflation Plus C## 10/31/2002 6.23% 7.24%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGERS
JIM CONNOLLY, CFA
Vice President
WILLIAM DAVISON, CFA
Managing Director
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Inflation Plus Fund
Class A placed in the 4th quartile with a total return, before sales charge, of
9.02% versus a return of 10.03% for the Lipper peer group and a return of 10.75%
for the Lehman Brothers U.S. TIPS Index.
WHY DID THE FUND PERFORM THIS WAY?
Over the past year, we positioned the Fund defensively to protect against a
stronger economy and rising real rates. This view was early, as real yields did
not increase, even though traditional treasury yields have risen more
dramatically. On a comparable interest rate risk basis, the shorter maturity
Treasury Inflation Protected Securities (TIPS) performed the best during the
middle of this year. This being the case, the Fund's underweight position in
shorter maturities during the same time period also was a drag on performance.
Another factor, that hindered performance was our holdings in floating rate
securities that we added a few months after the Fund's inception, when we saw
value in its diversification benefits and its similar resetting behavior to
TIPS. While this allocation benefited the Fund early in the year, providing a
positive return, overall, our underweight to TIPS versus the index hurt the Fund
as floating rate securities have generally underperformed TIPS.
As the Fund continued its strong growth in assets up to $371 million as of
10/31/03, we were able to allocate across the entire TIPS market making modest
tactical changes vis-a-vis these allocations to take advantage of market
opportunities.
WHAT IS YOUR OUTLOOK?
Interest rates on US Treasuries fluctuated early in the year in response to
shifting sentiments about the economy and the war. Increases in the Consumer
Price Index had been driven largely by increased energy and food costs along
with the continuing trend of rising services costs. The back up in yields, which
began following the Fed easing at the end of June, continued during the third
quarter. Given our view that the Fed will be on hold for a sustained period, we
will continue to look for opportunities to take advantage of what remains a
relatively steep yield curve in the front end.
As evidenced by the strong market interest in the recent July and October 10
year auctions, the TIPS market continues to grow. As of the end of October, the
US TIPS market stood at roughly $176 billion. Generally, we maintain an upbeat
view of TIPS versus nominal Treasuries over a long-term horizon. Looking ahead,
TIPS are expected to have positive inflation accrual until December when
historically the accrual tends to decrease. The market inflation expectation,
which is the difference between Treasuries and TIPS, increased throughout the
past couple of months as nominal rates increased and real rates declined or were
unchanged. We expect to remain defensive as we continue to see signs of a
strengthening economy. With economic fundamentals firming, we are concerned that
real rates may continue to rise and are positioning the portfolio accordingly.
18
The Hartford International Capital Appreciation Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL CAPITAL APPRECIATION
FUND MSCI EAFE
---------------------------------- ---------
4/30/01 9450 10000
8836 9655
8411 9264
8297 9096
7825 8868
6861 7971
10/01 7201 8175
7816 8477
8024 8528
7703 8076
7835 8133
8223 8616
8081 8639
8148 8756
7770 8411
7004 7582
6882 7566
6069 6756
10/02 6551 7120
7156 7443
6520 7194
6577 6894
6426 6736
6236 6609
6993 7265
7608 7711
7798 7902
8034 8095
8384 8291
8404 8548
10/03 9104 9082
</Table>
<Table>
--- INTERNATIONAL CAP APP FUND --- MSCI EAFE
$9,450 starting value $10,000 starting value
$9,104 ending value $9,082 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------
Int'l Cap App A# 4/30/2001 38.95% -1.49%
- -----------------------------------------------------------------
Int'l Cap App A## 4/30/2001 31.37% -3.68%
- -----------------------------------------------------------------
Int'l Cap App B# 4/30/2001 37.90% -2.19%
- -----------------------------------------------------------------
Int'l Cap App B## 4/30/2001 32.90% -3.37%
- -----------------------------------------------------------------
Int'l Cap App C# 4/30/2001 37.90% -2.19%
- -----------------------------------------------------------------
Int'l Cap App C## 4/30/2001 35.52% -2.57%
- -----------------------------------------------------------------
Int'l Cap App Y# 4/30/2001 39.57% -1.04%
- -----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
ANDREW S. OFFIT, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Capital Appreciation Fund Class A, before sales
charge, returned 38.95% for the twelve-month period ended October 31, 2003. The
Fund outperformed its MSCI EAFE benchmark, which returned 27.57%, as well as its
Lipper International Average peer group, which returned 24.5% for the period.
WHY DID THE FUND PERFORM THIS WAY?
In spite of strong international equity markets characterized by sector rotation
swings, the Fund was still able to outperform by continuing to own true growth
stocks that had improving fundamentals or intact prospects. In general, non-US
equity markets continued their second quarter rally through the end of the
October, returning 27.57% as measured by the EAFE index in US dollars. However,
a significant component of this return can be attributed to the continued
weakening of the US dollar against most major currencies as the EAFE return
measured in local currency was only 13%. In US dollar-terms, Emerging Markets
and Pacific Basin ex Japan equities were particularly strong, returning 49% and
37%, respectively, while Japan was almost as impressive, rising 34% during the
period. Developed European markets were less robust, but still had positive
results, gaining approximately 27%. Within the international markets,
Information Technology was the clearest beneficiary of increased investor risk
appetite as the sector stormed to a 44% return during the period. Consumer
Staples, typically a more defensive sector, was the worst performer returning
just over 11%.
There were several factors that contributed to our outperformance during this
period. Our significant exposure to Emerging Markets names, which were not held
by our index, had a positive influence on relative returns. The Fund also
significantly benefited from the combination of an overweight position and
superior stock selection within Information Technology. The three largest
contributors to absolute returns were all from this sector: Alcatel, the French
communications and equipment company; Nortel Networks, the Canadian
communications and equipment company; and Yahoo Japan, the Japanese Internet and
software company. Additionally, our Health Care and Consumer Discretionary names
also paid off handsomely during the period, but to a lesser degree.
Somewhat offsetting the Fund's strong results was our underweight position
within Financials, which performed well during the quarter. The names that were
the greatest detractors during the period included Norwegian communications
equipment provider Tandberg ASA and Japanese specialty retailer Fast Retailing.
Tandberg was sold from the portfolio, while we continued to believe in the Fast
Retailing investment thesis.
WHAT IS YOUR OUTLOOK?
With rising Gross Domestic Product, rebounding commodity prices, improving
business confidence and consumer sentiment, improving global credit growth and
earnings upgrades in all regions, the long awaited global economic recovery is
now in evidence around the globe. While equity markets have priced in
significant economic growth already, we believe that conditions are ripe for an
economic expansion to continue into the first half of 2004, with the growth
picture continuing to be bolstered by the massive fiscal and monetary stimulus
enacted by governments and central banks around the globe over the last several
years.
We continue to be positioned for economic growth and focused on companies that
have improving prospects or where fundamentals are better than generally
believed. For many of the companies we follow, time is on their side. With each
passing quarter, business conditions slowly improve and comparisons get easier.
19
The Hartford International Opportunities Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL OPPORTUNITIES MSCI AC WORLD FREE EX US INDEX
--------------------------- ------------------------------
7/22/96 9450 10000
9469 9668
9507 9724
9658 9966
10/96 9686 9866
10131 10246
10220 10128
10114 9942
10172 10124
10172 10103
10115 10188
10706 10817
11162 11414
11487 11645
10723 10729
11276 11309
10/97 10483 10346
10349 10217
10305 10335
10451 10644
11123 11354
11620 11746
11864 11830
11932 11616
11951 11572
12059 11682
10344 10035
10022 9823
10/98 10675 10852
11288 11435
11595 11829
11936 11816
11663 11552
12287 12109
12745 12715
12209 12118
12781 12675
13103 12972
13112 13017
13191 13105
10/99 13630 13593
14440 14136
16131 15485
15273 14644
16308 15040
16225 15606
15378 14735
14782 14358
15335 14969
14873 14378
15083 14556
14327 13749
10/00 13687 13312
13103 12715
13631 13149
13708 13346
12629 12289
11759 11421
12617 12197
12155 11861
11782 11406
11517 11152
11186 10875
10030 9721
10/01 10283 9994
10868 10451
11077 10585
10548 10132
10526 10205
11088 10802
11021 10829
11131 10947
10614 10474
9512 9454
9368 9454
8233 8452
10/02 8851 8906
9225 9334
8839 9033
8432 8716
8167 8539
7991 8373
8718 9180
9214 9765
9346 10036
9622 10302
9964 10609
10019 10907
10/03 10647 11613
</Table>
<Table>
--- INTERNATIONAL OPPORTUNITIES --- MSCI AC WORLD FREE EX US INDEX
$9,450 starting value $10,000 starting value
$10,647 ending value $11,613 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------
Int'l Opp A# 7/22/1996 20.30% -0.06% 1.65%
- -----------------------------------------------------------
Int'l Opp A## 7/22/1996 13.65% -1.18% 0.87%
- -----------------------------------------------------------
Int'l Opp B# 7/22/1996 19.58% -0.81% 0.92%
- -----------------------------------------------------------
Int'l Opp B## 7/22/1996 14.58% -1.16% 0.92%
- -----------------------------------------------------------
Int'l Opp C# 7/22/1996 19.43% -0.85% 0.89%
- -----------------------------------------------------------
Int'l Opp C## 7/22/1996 17.24% -1.05% 0.75%
- -----------------------------------------------------------
Int'l Opp Y# 7/22/1996 21.00% 0.35% 2.09%
- -----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
TROND SKRAMSTAD
Senior Vice President, Partner, Director of Global Equity Strategies
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Opportunities Fund returned 20.30% for the
twelve-month period ended October 31, 2003. The Fund's return trailed both the
30.40% return for the MSCI AC World Free ex US Index, and the Lipper
International Average of 24.5%.
WHY DID THE FUND PERFORM THIS WAY?
A global recovery is here. International equity markets climbed steadily over
the past twelve months, led by sharp rallies in the spring and fall of 2003
before giving back some of the gains towards the end of the third quarter. Most
equity markets rose as the global economy continued to recover, with observable
improvements in Japan and the US, and continued strong growth in China. European
equities lagged, trailing the Asian markets, though signs were mounting that
recovery is spreading to that region.
Our underperformance for the period can be linked to four main drivers. First,
we maintained an underweight position to Materials, one of the best performing
sectors during the period. In addition, the stocks that we did own within
Materials underperformed the sector average. Second, the average cap size of our
holdings was higher than that of the index, which hurt our relative performance
as small- and mid-cap securities dramatically outpaced larger-caps. The third
factor was that our stock selection within Japan and Europe was disappointing
across a variety of sectors. Lastly, our average cash balance of over 5% of
assets acted as a drag on total fund performance as global markets appreciated
significantly during the period.
However, there were some bright spots for the Fund during the period as our
stock selection within Information Technology was quite strong, highlighted by
our holdings in ASML (Netherlands), Samsung Electronics (South Korea), and
Nortel Networks (Canada). Furthermore, some of our top-down country allocation
decisions also added value across the portfolio as our relatively high exposure
to emerging markets and low weighting of the United Kingdom paid off.
Overall, we were not pleased with our results but are confident that our
long-term holdings will rebound as investor sentiment shifts towards favoring
strong, high-quality companies.
WHAT IS YOUR OUTLOOK?
With rising Gross Domestic Product, rebounding commodity prices, improving
business confidence and consumer sentiment, improving global credit growth and
earnings upgrades in all regions, the long awaited global economic recovery is
now evidenced around the world. While equity markets have priced in significant
economic growth already, we believe that conditions are ripe for expansion to
continue into the first half of 2004, with the growth picture continuing to be
bolstered by the massive fiscal and monetary stimulus enacted by governments and
central banks around the globe over the last several years. China has positively
impacted the world's economic growth this year, helping drive global demand for
both raw materials and capital goods. The rest of Asia ex-Japan finds itself at
the end of a multi-year adjustment process and is poised to move ahead once
again as the region no longer relies upon the US as its main growth driver.
Instead, the Asian consumer is becoming an increasingly important engine of
growth. The Japanese recovery appears to be legitimate as corporations have
lowered their debt and overcapacity and can now focus on product leadership.
Europe lagged but is expected to recover by 2004. The economic impact of the
appreciating euro has adversely slowed growth, but monetary and fiscal stimulus
should help drive a cyclical economic upturn.
20
The Hartford International Small Company Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
INTERNATIONAL SMALL COMPANY FUND CITIGROUP BROAD MARKET EURO-PACIFIC
-------------------------------- -----------------------------------
4/30/01 9450 10000
9781 10051
9205 9730
9044 9365
9044 9388
7825 8233
10/01 8335 8554
8901 8875
8713 8758
8580 8585
8561 8792
8968 9305
9346 9565
9619 9980
9506 9671
8920 9000
8713 8917
7833 8188
10/02 7909 8117
8155 8408
8331 8345
8142 8223
8123 8207
8094 8157
9098 8834
9827 9576
9960 10030
10357 10357
10869 11015
11570 11642
10/03 12242 12443
</Table>
<Table>
--- INTERNATIONAL SMALL CO FUND --- CITIGROUP BROAD MARKET EURO-PACIFIC <$2B INDEX
$9,450 starting value $10,000 starting value
$12,242 ending value $12,443 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Int'l Small Co A# 4/30/2001 54.76% 10.86%
- ------------------------------------------------------------------
Int'l Small Co A## 4/30/2001 46.20% 8.40%
- ------------------------------------------------------------------
Int'l Small Co B# 4/30/2001 53.72% 10.40%
- ------------------------------------------------------------------
Int'l Small Co B## 4/30/2001 48.72% 9.37%
- ------------------------------------------------------------------
Int'l Small Co C# 4/30/2001 53.62% 10.06%
- ------------------------------------------------------------------
Int'l Small Co C## 4/30/2001 51.08% 9.62%
- ------------------------------------------------------------------
Int'l Small Co Y# 4/30/2001 55.47% 11.38%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
EDWARD L. MAKIN
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford International Small Company Fund Class A, before sales charge,
returned 54.76% for the twelve-month period ended October 31, 2003. The Fund's
return outperformed both the 53.29% return for the Citigroup Broad Market
Euro-Pacific <$2 billion Index, and the Lipper International Small Cap Average
of 47.6%.
WHY DID THE FUND PERFORM THIS WAY?
The recovery in the equity markets seen in the first half of the year continued
in the third quarter, spreading to Japan and much of Asia. Liquidity has
increased significantly as institutional investors have returned to the equity
markets in search of better returns, given historically low yields on bonds and
cash. The corporate sector has been reporting profits inline with or ahead of
market expectations, leading to a rebound in equity markets that has been marked
by speculative behavior in a number of instances, with large movements
concentrated in Cyclicals, Technology, Semiconductors, and Media names.
Over the period, international small cap stocks outperformed international large
cap stocks, with Citigroup Broad Market Euro-Pacific <$2 billion Index
increasing 53.29% compared to the MSCI EAFE Index advance of 27.57%. All ten of
the broad sectors in the Citigroup Broad Market Euro-Pacific <$2 billion Index
posted positive returns ranging from 33% (Consumer Staples) to 94%
(Telecommunication Services).
Relative to its benchmark, performance for the Fund benefited from strong stock
selection within the Information Technology, Consumer Discretionary, and
Financials sectors. Stock selection within Telecommunication Services and Health
Care detracted slightly from performance. From a country specific standpoint,
the Fund's strong stock selection in the United Kingdom, South Korea, and France
more than offset weak security selection in Japan. The top three contributing
stocks to Fund performance were Clarins, a French personal products company;
Informa Group, a media company located in the United Kingdom; and NDS Group, a
UK software company. The three biggest detractors from performance were our
holdings in BML and NIC Corporation, both Japanese health care providers, and
Logicacmg, an information technology services company located in the United
Kingdom. We have eliminated our positions in these three detractors.
WHAT IS YOUR OUTLOOK?
As the market has made a remarkable recovery since the first quarter lows, there
are continuing clouds on the horizon such as uncertainty about the impact of
recent currency moves (US dollar weakness and particularly the rise of the euro
versus the yen) and huge debtor/creditor imbalances between the East and West.
The greatest debate at the macro level now is whether low growth and low
inflation fears are now overdone, and whether a threat of inflation is possible,
given the huge monetary stimulus injected into the global (and particularly the
US) economy over the past few years. This has been reflected in the huge rise in
bond yields from their lows and will have implications for financial companies,
housing prices, and the markets in general, so we have shifted to a more
cautious outlook. While a global economic recovery seems real, driven by
improving Gross Domestic Product growth in the US, it appears that some sectors
in the small cap equity markets, like Technology may have incorporated much of
this in their prices. In light of these developments, we have reduced our
positions in these sectors.
We continue to have a large overweight bet in Health Care, as we believe this
group will show continued above-market growth. During the period, we took
profits on a number of media names that enjoyed a good bounce but we still
maintain a large exposure to this area. We remain significantly underweight
relative to the benchmark in Materials and Utilities, while retaining overweight
positions in Health Care, Consumer Staples, and Consumer Discretionary. At the
regional level, we still have underweight positions in Real Estate and
Construction outside North America, and overweight positions in North American
Retailers and European Media stocks. Regionally, we retain a neutral position
relative to the benchmark, inline with our long-term goal.
21
The Hartford MidCap Fund* (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 12/31/97 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MIDCAP FUND S & P MIDCAP 400 INDEX
----------- ----------------------
12/31/97 9450 10000
9441 10074
9138 9883
9970 10701
10443 11184
10669 11389
10292 10876
10849 10945
10669 10520
8581 8562
9111 9361
10/98 9867 10198
10482 10707
11625 12000
11909 11533
11380 10929
12344 11235
13280 12120
13440 12174
14361 12824
13955 12552
13756 12123
13454 11748
10/99 14239 12349
14996 12989
17461 13767
17412 13379
20132 14316
21360 15514
20082 14975
19032 14785
20929 15003
21103 15240
23348 16942
23054 16827
10/00 22780 16256
20237 15029
21796 16179
22107 16539
20838 15595
19080 14436
20871 16026
21216 16399
21137 16334
20680 16090
19700 15564
17350 13628
10/01 18464 14230
19969 15289
20781 16078
20403 15996
20526 16015
21663 17160
21383 17080
21494 16791
20147 15562
18041 14054
17953 14124
16427 12987
10/02 17275 13550
18847 14334
17665 13745
17419 13344
17263 13026
17397 13136
18813 14089
20373 15256
20495 15449
20674 15998
21620 16724
21164 16468
10/03 22936 17697
</Table>
<Table>
--- MIDCAP FUND --- S & P MIDCAP 400 INDEX
$9,450 starting value $10,000 starting value
$22,936 ending value $17,697 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR 5 YEAR SINCE INCEPTION
- -------------------------------------------------------------------
MidCap A# 12/31/1997 32.77% 18.38% 16.39%
- -------------------------------------------------------------------
MidCap A## 12/31/1997 25.49% 17.04% 15.27%
- -------------------------------------------------------------------
MidCap B# 12/31/1997 31.82% 17.53% 15.57%
- -------------------------------------------------------------------
MidCap B## 12/31/1997 26.82% 17.32% 15.48%
- -------------------------------------------------------------------
MidCap C# 12/31/1997 31.93% 17.57% 15.61%
- -------------------------------------------------------------------
MidCap C## 12/31/1997 29.61% 17.34% 15.42%
- -------------------------------------------------------------------
MidCap Y# 12/31/1997 33.56% 18.95% 16.96%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
*The Hartford Midcap Fund was closed to new investors as of the
end of the day July 31,2003. Investors who already own shares
of the Fund, and those with access to the Fund through wrap
programs in connection with certain investment platforms, may
purchase additional shares thereafter.
PORTFOLIO MANAGER
PHILLIP H. PERELMUTER
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford MidCap Fund Class A, before sales charge, returned 32.77% for the
12 month period ended October 31, 2003 outperforming both the S&P MidCap 400
Index return of 30.61% and Lipper Mid-Cap Core Average return of 30.9%.
WHY DID THE FUND PERFORM THIS WAY?
The US equity market rallied broadly during the period as a global recovery took
shape, fueled by an accommodative mix of post-war relief, fiscal stimulus, and
favorable monetary policy. Following the shape of a classic cyclical rally,
small caps outperformed, followed by mid-caps and then large-caps.
The Fund's out-performance relative to the index can be largely attributed to
good stock selection across the majority of our sectors, as the aggregate impact
of our sector bets was largely neutral. Security selection was strongest in the
Telecommunications, Financials and Materials names. We did stumble a bit in
terms of stock selection within the Consumer Staples and Consumer Discretionary
sectors as a handful of our holdings reported disappointing earnings, thereby
detracting from our index-relative results. Our low exposure to the three worst
performing sectors in the index (Consumer Staples, Energy, and Materials) also
contributed positively to Fund performance.
In terms of individual companies, American Tower (Telecommunications),
Countrywide Financial (Financials) and Millennium Pharmaceuticals (Health Care)
were the three securities that contributed the most to portfolio performance on
an absolute basis. American Tower was finally able to lay liquidity concerns to
rest with the refinancing of their balance sheet while their core operations
continued to deliver solid results. Countrywide Financial rose as investors
began to recognize the value of the company's large servicing portfolio.
Millennium benefited from a resurgence of optimism in biotechnology following
evidence that new drug approvals from the FDA may be accelerating under new
leadership. The securities that detracted the most from performance during the
period were Pepsi Bottling Group (Consumer Staples), Investment Technology Group
(Financials), and Newell Rubbermaid (Consumer Discretionary). Of these three
securities, we continued to hold ITG at quarter-end but sold the other two
positions from the portfolio.
WHAT IS YOUR OUTLOOK?
As we approach the end of 2003, investor optimism surrounding the economy and
the equity markets has started to consolidate. Tax cuts, a weaker dollar,
sustained productivity gains, and healthier balance sheets all bode well for
corporate profits. As the economy continues to stabilize, we will look for
improved corporate spending and employment trends as key gauges to determine the
sustainability of the domestic recovery. At this juncture, we believe a
sustainable up-trend will in fact unfold and support growth in 2004.
22
The Hartford MidCap Value Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
MIDCAP VALUE FUND RUSSELL 2500 VALUE INDEX
----------------- ------------------------
4/30/01 9450 10000
9507 10307
9535 10406
9375 10336
9092 10247
7816 9110
10/01 8015 9305
8686 10021
9385 10592
9422 10689
9593 10822
10123 11492
10123 11689
9943 11497
9414 11091
8431 9808
8422 9861
7524 9054
10/02 7883 9184
8526 9853
8119 9546
7940 9258
7760 9030
7713 9092
8431 9916
9215 10833
9319 11027
9631 11506
10075 11968
10028 11883
10/03 10699 12791
</Table>
<Table>
--- MIDCAP VALUE FUND --- RUSSELL 2500 VALUE INDEX
$9,450 starting value $10,000 starting value
$10,699 ending value $12,791 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------------
MidCap Value A# 4/30/2001 35.73% 5.06%
- ----------------------------------------------------------------
MidCap Value A## 4/30/2001 28.20% 2.73%
- ----------------------------------------------------------------
MidCap Value B# 4/30/2001 34.79% 4.32%
- ----------------------------------------------------------------
MidCap Value B## 4/30/2001 29.79% 3.19%
- ----------------------------------------------------------------
MidCap Value C# 4/30/2001 34.91% 4.36%
- ----------------------------------------------------------------
MidCap Value C## 4/30/2001 32.56% 3.94%
- ----------------------------------------------------------------
MidCap Value Y# 4/30/2001 36.59% 5.58%
- ----------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
JAMES N. MORDY
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford MidCap Value Fund Class A, before sales charge, returned 35.73% for
the 12-month period ended October 31, 2003. The Fund's return trailed the 39.28%
return of the Russell 2500 Value, and modestly outperformed the Lipper Mid Cap
Value Average of 34.7%.
WHY DID THE FUND PERFORM THIS WAY?
The overriding theme in the equity markets over the past twelve months was that
investors once again became comfortable owning stocks with inherently greater
levels of either business or financial risk. There were many factors behind
this, including increased confidence in the economic recovery, improved
corporate governance and accounting scrutiny, a narrowing of credit spreads, and
a recognition that valuation disparity between "safer" stocks and "riskier"
stocks had grown too large during the preceding year. The Fund's performance
benefited from this trend as we have never been shy about taking on a manageable
degree of business risk with our stocks as long as we feel we are getting more
than compensated for it in the prices we pay. During the period, small-caps
outperformed mid-caps, which in turn did better than large-caps. As the Fund has
a somewhat higher average market cap than the benchmark, this latter trend
worked against our relative performance.
The Fund's underperformance relative to the market benchmark can be largely
attributed to weak relative stock selection within the Materials and Health Care
sectors. AK Steel and IMC Global were the Materials names that performed poorly,
while our HMO names suffered a bit lately due to concern over the impact of
unemployment on enrollment trends. The Fund was also hindered due to being
overweight the Energy sector, which lagged all other sectors in the benchmark.
Offsetting this weakness was exceptional stock performance in the Consumer
Discretionary sector, the best relative group during the period as Harman
International, United Global Communication and Rent-A-Center were among our top
contributors. In addition, our overweight to Technology names and underweight
within Financials also contributed positively to our relative results.
The Fund continues to be positioned to benefit from the ongoing economic
recovery, but with cyclical valuations having expanded so dramatically over the
past two quarters, we are beginning to do a bit more hunting for bargains in
more defensive sectors.
WHAT IS YOUR OUTLOOK?
We remain on track for Gross Domestic Product growth of 4% or greater as 2003
comes to a close and look for continued growth at a 3.5% pace in 2004-05.
Consumers spent their tax refund checks during the third quarter, and will get
even larger refunds from the IRS during first quarter of 2004. Businesses are
starting to spend as profits have improved smartly. Inventories remain at very
low levels and we look for restocking to provide some additional fuel to
economic growth over the next few quarters. Recent evidence suggests the
employment picture may have finally begun to improve as well. As we enter 2004,
an election year, the current administration is confronting declining approval
rates as violence in Iraq drags on and fiscal deficits balloon. If the dollar
were to drop swiftly in response to these pressures, it could be quite
problematic for our bond and stock markets. At present we do not view this as
the most likely scenario. With economic growth continuing at a fairly robust
clip over the next several quarters and no immediate prospects of rate increases
from the Fed, stocks can continue to work higher, though we would concede there
are fewer obvious bargains compared with earlier in the year.
23
The Hartford Short Duration Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S.
SHORT DURATION FUND GOVERNMENT/CREDIT 1-5 YEAR INDEX
------------------- --------------------------------
10/31/02 9700 10000
9676 9987
9829 10145
9842 10151
9944 10244
9962 10263
10022 10312
10130 10430
10143 10441
10008 10295
10013 10300
10186 10473
10/03 10134 10405
</Table>
<Table>
--- SHORT DURATION FUND --- LEHMAN BROTHERS U.S. GOVERNMENT/CREDIT
$9,700 starting value 1-5 YEAR INDEX
$10,134 ending value $10,000 starting value
$10,405 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------------
Short Duration A# 10/31/2002 4.48% 4.48%
- ------------------------------------------------------------------
Short Duration A## 10/31/2002 1.33% 1.33%
- ------------------------------------------------------------------
Short Duration B# 10/31/2002 3.77% 3.77%
- ------------------------------------------------------------------
Short Duration B## 10/31/2002 -1.23% -1.23%
- ------------------------------------------------------------------
Short Duration C# 10/31/2002 3.77% 3.77%
- ------------------------------------------------------------------
Short Duration C## 10/31/2002 1.73% 2.74%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
JIM CONNOLLY, CFA
Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Short Duration Fund
Class A placed in the 2nd quartile with a total return, before sales charge, of
4.48% versus the 4.46% for the Lipper peer group and a return of 4.05% for the
Lehman Brothers U.S. Government/Credit 1-5 Year Index.
The primary objective of the Hartford Short Duration Fund is to provide a high
level of income. As of October 31, 2003, the SEC yield for this Fund's Class A
shares is 2.55%.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's strong performance over the past year can be attributed to our
overweight in the corporate sector, particularly in the industrial subsector, as
it continues to perform well on both a yield and total return perspective. Our
allocation to Treasury Inflation Protected Securities early this year also
benefited the Fund as we capitalized on the strong seasonal inflation accrual
levels. The Fund's short duration also contributed positively in the third
quarter as interest rates rose.
The demand for investment grade corporate paper remains strong as fundamentals
continue to show signs of improvement. While we lowered our exposure to
mortgage-backed securities during the year given the continued concerns of
extension risk, our holdings in this sector contributed positively to yield over
the past couple of months. Overall, we remain underweight to both US Treasuries
and agencies as better risk and reward opportunities remain in other spread
sectors. As the Fund continues to grow, we are selectively adding to existing
positions in order to maintain current weightings where we see continued
relative value opportunities.
WHAT IS YOUR OUTLOOK?
The back up in yields in the front end of the curve, which began following the
Fed easing at the end of June, continued during the third quarter. This increase
in interest rates could be attributed to the market's expectation for an
accelerated economic recovery. However, the economic data released throughout
September indicated that the economy is continuing to strengthen but at a slower
pace than had been anticipated. The pricing of Fed Funds futures are now priced
such that the Fed may begin tightening during the second quarter of next year.
However, the expectation that the Fed will be on hold until at least that time
has begun to tempt investors to purchase longer dated securities in order to
take advantage of the higher yields and attractive breakevens.
Given our view that the Fed will be on hold for a sustained period, we will
continue to look for opportunities to take advantage of what remains a
relatively steep yield curve in the front end. We will continue to look for
opportunities to enhance the yield of this income driven fund by remaining
focused, though selective, on the corporate sector, which continues to remain
both fundamentally and technically favorable. Additionally, with interest rates
remaining at these low levels, we will continue to monitor the Fund's mortgage
position given the risks of duration extension.
24
The Hartford Small Company Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SMALL COMPANY FUND RUSSELL 2000 GROWTH INDEX
------------------ -------------------------
7/22/96 9450 10000
9422 8779
10263 9429
10915 9914
10/96 10612 9487
10839 9751
10783 9941
10773 10189
10602 9574
10057 8898
10117 8795
11208 10117
11866 10460
12442 10995
12734 11325
13824 12229
10/97 13259 11494
13027 11220
12862 11227
12545 11078
13793 12056
14343 12562
14534 12639
13825 11720
14027 11839
13536 10851
10226 8346
11112 9193
10/98 11997 9673
12808 10423
14207 11367
14827 11878
13365 10791
14465 11175
15649 12162
15979 12182
17250 12824
17229 12427
16983 11963
17324 12193
10/99 17922 12506
19961 13827
23534 16264
22845 16113
26856 19862
26453 17774
24062 15979
21374 14579
24391 16463
22432 15052
24211 16636
23153 15809
10/00 21722 14525
19018 11887
20446 12615
19540 13636
17379 11766
15876 10697
18038 12006
17802 12284
18079 12620
17098 11543
16376 10822
13792 9075
10/01 14911 9948
16339 10779
17208 11450
16935 11043
16139 10328
17318 11226
16884 10983
16237 10341
15107 9464
12660 8009
12412 8005
11903 7427
10/02 12337 7803
13095 8576
11951 7985
11629 7767
11393 7560
11790 7674
13045 8400
14498 9347
14958 9527
16026 10248
16820 10798
16200 10525
10/03 17740 11434
</Table>
<Table>
--- SMALL COMPANY FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$17,740 ending value $11,434 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- ----------------------------------------------------------
Small Co A# 7/22/1996 43.81% 8.14% 9.04%
- ----------------------------------------------------------
Small Co A## 7/22/1996 35.87% 6.93% 8.20%
- ----------------------------------------------------------
Small Co B# 7/22/1996 42.81% 7.37% 8.29%
- ----------------------------------------------------------
Small Co B## 7/22/1996 37.81% 7.07% 8.29%
- ----------------------------------------------------------
Small Co C# 7/22/1996 42.77% 7.39% 8.31%
- ----------------------------------------------------------
Small Co C## 7/22/1996 40.34% 7.17% 8.16%
- ----------------------------------------------------------
Small Co Y# 7/22/1996 44.40% 8.65% 9.56%
- ----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
STEVEN C. ANGELI, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Small Company Fund Class A, before sales charge, returned 43.81%
for the twelve-month period ended October 31, 2003. The Fund's return
outperformed the 40.5% return of the Lipper Small Cap Growth average but
underperformed the 46.56% return of the Russell 2000 Growth Index.
WHY DID THE FUND PERFORM THIS WAY?
With a 77% gain over the last twelve months, small cap Technology stocks remain
at the top of their league -- the strongest performers in the entire stock
market. Individual stock selection remains critical in our effort to outperform
the benchmark, especially as the markets appear to be caught up in a tech-driven
speculative frenzy.
Our modest underperformance relative to the index was concentrated within the
Health Care and Technology sectors. In terms of Health Care, we were most hurt
by a handful of names such as Array Biopharma (Biotechnology), NDC Health Center
(Healthcare Provider), Intermune (Biotechnology). Within Technology, our
unwillingness to invest in names trading at unreasonable valuations proved
detrimental to our relative results.
On the positive side, our sector exposure added value due to our overweight of
the three best performing areas: Telecommunications, Technology, and Health
Care. The Fund also benefited from its investments within Telecommunications, as
wireless telecommunication providers, American Tower and Crown Castle were two
of the three top contributors to our performance. After the carnage of the
telecom boom and bust, both companies remain dominant leaders that are
de-leveraging their balance sheets with free cash flow while still growing their
core businesses at over 12% annually.
WHAT IS YOUR OUTLOOK?
Undoubtedly, the US economy is undergoing a gradual recovery, characterized by
strong consumer spending, high productivity, but zero job creation. We are
surprised by the resiliency of the US consumer in the face of relatively high
unemployment claims. However, strong productivity growth means better corporate
profits, and ultimately higher capital spending and job formation.
The portfolio is clearly positioned to benefit from an economic rebound, with an
overweight position in the Consumer Discretionary sector as well as the
Transportation sub-sector. We are discovering that many small companies, once
devastated by the economic downturn, are showing signs of growth again,
especially in the Industrial and Information Technology sectors. However, we
remain less focused on sector allocation decisions, and more attentive to buying
undiscovered companies with significant growth potential.
25
The Hartford SmallCap Growth Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(4,6) 10/31/93 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
SMALLCAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
-------------------- -------------------------
10/31/93 9450 10000
8704 9596
9143 9975
9347 10240
9173 10195
8635 9569
8483 9584
8168 9369
7671 8969
7638 9096
8105 9764
8331 9805
10/94 8546 9909
8331 9508
8487 9732
8413 9533
8806 9974
8969 10265
9121 10419
9173 10556
10007 11283
11253 12162
11371 12311
11979 12565
10/95 11512 11947
11783 12474
11571 12751
11377 12645
12131 13221
12434 13483
13577 14519
14242 15263
13312 14271
11959 12529
12987 13456
13876 14149
10/96 12890 13539
12886 13915
12372 14187
12181 14542
10715 13663
9773 12699
9534 12551
11325 14438
11598 14927
12279 15691
11962 16162
12763 17452
10/97 12177 16403
12220 16013
12560 16022
12142 15809
13584 17205
14456 17928
14565 18037
13819 16726
14378 16896
13217 15486
10328 11912
11043 13119
10/98 11763 13804
13248 14875
15053 16222
16123 16952
14082 15400
15100 15949
15663 17357
15776 17385
17962 18301
18194 17735
18618 17072
19491 17402
10/99 22368 17847
25145 19734
31827 23211
32445 22995
45304 28346
40537 25367
33941 22805
29227 20807
36222 23495
33536 21482
40184 23741
37910 22561
10/00 34466 20729
24544 16965
27386 18003
27909 19460
22666 16792
20254 15265
22096 17134
22077 17531
22918 18010
21245 16474
19852 15444
16160 12951
10/01 17796 14197
19811 15383
21369 16341
20666 15759
19517 14740
21531 16021
20609 15675
19165 14758
17379 13506
15022 11430
14946 11425
13702 10600
10/02 14794 11136
16457 12240
15155 11395
14652 11085
13987 10789
14148 10952
15488 11988
17312 13339
17759 13597
18937 14625
20258 15410
20267 15020
10/03 21768 16318
</Table>
<Table>
--- SMALLCAP GROWTH FUND --- RUSSELL 2000 GROWTH INDEX
$9,450 starting value $10,000 starting value
$21,768 ending value $16,318 ending value
</Table>
PORTFOLIO MANAGERS
DAVID J. ELLIOTT, CFA
Vice President
JAMES A. RULLO, CFA
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -------------------------------------------------------------------
SmallCap A# 1/4/1988 47.14% 13.10% 8.70% 12.76%
- -------------------------------------------------------------------
SmallCap A## 1/4/1988 39.02% 11.83% 8.09% 12.36%
- -------------------------------------------------------------------
SmallCap B# 11/14/1994 46.17% 12.45% NA* NA*
- -------------------------------------------------------------------
SmallCap B## 11/14/1994 41.17% 12.27% NA* NA*
- -------------------------------------------------------------------
SmallCap C# 11/14/1994 46.27% 12.41% NA 10.56%
- -------------------------------------------------------------------
SmallCap C## 11/14/1994 43.81% 12.06% NA 10.42%
- -------------------------------------------------------------------
SmallCap H# 11/14/1994 46.28% 12.45% NA* NA*
- -------------------------------------------------------------------
SmallCap H## 11/14/1994 42.28% 12.27% NA* NA*
- -------------------------------------------------------------------
SmallCap L# 1/4/1988 47.17% 13.09% 8.70% 12.76%
- -------------------------------------------------------------------
SmallCap L## 1/4/1988 40.15% 12.00% 8.17% 12.41%
- -------------------------------------------------------------------
SmallCap M# 11/14/1994 46.24% 12.46% NA* NA*
- -------------------------------------------------------------------
SmallCap M## 11/14/1994 42.24% 12.28% NA* NA*
- -------------------------------------------------------------------
SmallCap N# 11/14/1994 46.28% 12.45% NA 10.57%
- -------------------------------------------------------------------
SmallCap N## 11/14/1994 45.28% 12.45% NA 10.57%
- -------------------------------------------------------------------
SmallCap Y# 2/19/2002 47.72% NA NA 6.49%
- -------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Small Cap Growth Fund Class A, before sales charge, returned 47.14%
for the twelve-month period ended October 31, 2003. The Fund outperformed the
Russell 2000 Growth Index, which returned 46.56%, and the Lipper Small-Cap
Growth Mutual Fund Average, which returned 40.5% over the same period.
WHY DID THE FUND PERFORM THIS WAY?
Ascending equity markets have generally reflected increased investor confidence
in an economic rebound as indicated by increased consumer confidence and firming
consumer spending, growing manufacturing output and productivity gains, and
accommodating interest rates and tax policies. Small cap stocks benefited the
most from this cyclical rally outpacing larger cap names. Within the Russell
2000 Growth Index, the Telecommunication and Technology sectors led the way
posting returns of 92% and 75%, respectively, as Energy names performed the
worst, returning 16%.
Given our sector-neutral investment approach, the Fund's stock selection was the
main driver of our outperformance. Security selection was strongest among the
Information Technology and Industrials sectors. On the negative side, our
investments within Financials detracted the most from relative return
comparisons. For the twelve-month period, the greatest contributors to absolute
Fund returns were UnitedGlobalCom (Consumer Discretionary), Ciphergen Biosystems
(Health Care), and Dendrite International (Health Care). The largest detractors
from absolute Fund returns were Investment Technology Group (Financials), Too
(Consumer Discretionary), and Radiant Systems (Information Technology).
WHAT IS YOUR OUTLOOK?
In the current environment of accelerating growth, productivity is surging and
remains well above the rate of the 1990s, implying better corporate profits,
higher investments, and ultimately job creation. Although the theme of a jobless
recovery abounds, there are signs of better times for labor ahead. The number of
self-employed workers is growing and small businesses have expressed intentions
to step up hiring. Net employment gains will become more visible in the coming
months. We believe the consumption environment will be sound in 2004, bolstered
by more jobs, tax cuts, and an improving net worth position of households.
Furthermore, the outlook for capital spending is solid and will likely emerge as
a new driver of growth.
26
The Hartford Stock Fund (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
STOCK FUND S&P 500 INDEX
---------- -------------
7/22/96 9450 10000
9526 10102
9668 10317
10178 10897
10/96 10443 11198
11180 12043
10915 11805
11568 12542
11653 12641
11313 12122
11900 12845
12639 13630
13267 14236
14196 15368
13373 14507
14055 15301
10/97 13675 14790
14244 15475
14387 15741
14510 15914
15620 17061
16522 17935
16874 18118
16551 17806
17500 18529
17671 18333
15081 15684
15706 16689
10/98 16939 18044
17917 19138
18895 20240
19509 21086
19135 20430
20074 21248
20975 22070
20361 21549
21694 22745
21089 22035
20762 21925
20187 21324
10/99 21271 22674
21633 23134
23108 24495
22013 23265
22052 22825
24183 25058
23489 24304
22970 23805
23469 24391
22976 24010
24180 25501
23046 24155
10/00 23076 24054
21694 22158
21932 22267
22500 23057
20887 20957
19369 19630
20754 21153
20920 21295
20008 20777
19760 20574
18446 19288
17112 17731
10/01 17475 18070
18789 19456
18924 19627
18459 19341
18189 18967
18810 19680
17226 18488
16978 18352
15747 17045
14796 15717
14661 15820
13026 14102
10/02 14207 15342
15272 16244
14289 15290
13896 14891
13607 14668
13658 14810
14694 16029
15408 16872
15625 17088
16008 17389
16205 17728
15936 17540
10/03 16774 18531
</Table>
<Table>
--- STOCK FUND --- S&P 500 INDEX
$9,450 starting value $10,000 starting value
$16,774 ending value $18,531 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------
Stock A# 7/22/1996 18.06% -0.20% 8.20%
- -------------------------------------------------------
Stock A## 7/22/1996 11.56% -1.32% 7.36%
- -------------------------------------------------------
Stock B# 7/22/1996 17.18% -0.92% 7.43%
- -------------------------------------------------------
Stock B## 7/22/1996 12.18% -1.29% 7.43%
- -------------------------------------------------------
Stock C# 7/22/1996 17.36% -0.84% 7.48%
- -------------------------------------------------------
Stock C## 7/22/1996 15.19% -1.04% 7.33%
- -------------------------------------------------------
Stock Y# 7/22/1996 18.80% 0.31% 8.73%
- -------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
RAND L. ALEXANDER, CFA
Senior Vice President, Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Stock Fund Class A, before sales charge, returned 18.06% for the
12-month period ended October 31, 2003, slightly ahead of its Lipper Large-Cap
Core peer group of 17.8% but trailed the S&P 500 Index, the Fund's benchmark,
which returned 20.79%.
WHY DID THE FUND PERFORM THIS WAY?
Most major market indices posted positive returns during the period. On a
relative basis, small caps continued to outperform mid-cap and large-cap stocks
while value edged out growth by a small margin. All ten sectors of the S&P 500
posted positive gains for the period with strong results in Consumer
Discretionary, Materials and Technology. However, during this period, we faced a
significant headwind as, on average, the smaller cap, higher beta names within
the index outperformed the larger cap, higher quality names held in our
portfolio.
Strong stock selection in several sectors, most notably Health Care, Financials
and Energy, boosted our performance. Conversely, overall stock selection within
Technology, Consumer Discretionary, Consumer Staples and Industrials detracted
from performance. At the margin, the Fund's underweight position in
Telecommunications and overweight position in Materials helped performance. Two
of the strongest contributors to performance were Cisco (Technology) and
Citigroup (Financials). Cisco benefited from a rebound in technology spending
over the last year as well as new product introductions. Citigroup has executed
well, controlled costs and is leveraged to improving global capital markets.
During the period we added to Citigroup and held onto our position in Cisco.
The top three detractors from performance were SBC Communications
(Telecommunications), Schering-Plough (Pharmaceuticals) and Safeway (Consumer
Staples). Along with others in the telecom industry, SBC has struggled as a
result of overcapacity, competition, and new technologies. Schering-Plough has
suffered from competitive pressures across its key drug franchises as well as
from the switch of Claritin, their leading product, to the Over the Counter
market. Safeway lowered their earnings guidance resulting from increasing
operating costs and declining margins due to competition from Wal-Mart. All
three stocks have been eliminated from the portfolio.
Given our positive economic outlook, we continue to position the portfolio with
a pro-cycle bias, investing in those stocks and sectors that offer the most
attractive valuations and long-term growth prospects.
WHAT IS YOUR OUTLOOK?
Investor optimism surrounding the economy and the equity market has started to
consolidate. Tax cuts, a weaker dollar, sustained productivity, and healthier
balance sheets all bode well for corporate profits. The consumer has driven the
economic recovery so far. However, we will look for improved corporate spending
and employment trends as key gauges to determine the sustainability of the
domestic recovery. At this juncture, we believe a sustainable up-trend will in
fact unfold over the next several months and support growth in 2004.
27
The Hartford Tax-Free California Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS CALIFORNIA EXEMPT
TAX-FREE CALIFORNIA FUND INDEX
------------------------ ---------------------------------
10/31/02 9550 10000
9476 9985
9718 10166
9620 10116
9814 10269
9805 10274
9863 10562
10116 10630
10000 10549
9437 10110
9540 10192
9869 10485
10/03 9842 10448
</Table>
<Table>
--- TAX-FREE CALIFORNIA FUND --- LEHMAN BROTHERS CALIFORNIA EXEMPT
$9,550 starting value INDEX
$9,842 ending value $10,000 starting value
$10,448 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- --------------------------------------------------------------
California A# 10/31/2002 3.06% 3.06%
- --------------------------------------------------------------
California A## 10/31/2002 -1.57% -1.57%
- --------------------------------------------------------------
California B# 10/31/2002 2.23% 2.23%
- --------------------------------------------------------------
California B## 10/31/2002 -2.73% -2.73%
- --------------------------------------------------------------
California C# 10/31/2002 2.34% 2.34%
- --------------------------------------------------------------
California C## 10/31/2002 0.32% 1.32%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Tax-Free California
Fund Class A placed in the 4th quartile with a total return, before sales
charge, of 3.06% versus the 4.22% for the Lipper peer group and a return of
4.48% for the Lehman Brothers California Exempt Index.
The primary objective of the Hartford Tax-Free California Fund is to provide
current income exempt from both federal and California income tax. As of October
31, 2003, the SEC yield for this Fund's Class A shares was 4.11%.
WHY DID THE FUND PERFORM THIS WAY?
Throughout the year, we overweighted bonds 20 years to maturity and longer, in
order to maximize yield, and underweighted the better performing intermediate
portion of the yield curve. Long bonds have generally been the worst performing
part of the California yield curve. Our holdings in long state general
obligation debt, suffering from weak credit fundamentals and an abundance of
supply, led the decline in poor performance. Our strategy to add yield by also
underweighting the short portion of the yield curve, caused a drag to total
return performance as well.
California experienced a continuous barrage of negative headlines on the State's
ever-widening budget deficit and is currently the lowest rated State in the
nation. Until recently, state tobacco bonds also suffered heavy losses because
of the uncertain outcome of a lawsuit against Phillip Morris USA. However, three
separate favorable legal judgments for the tobacco companies were announced in
September. The most important decision came from the Illinois Supreme Court,
which in part reversed a lower court ruling in a case that threatened to force
Philip Morris into bankruptcy. This proved to be very positive news for tobacco
companies and in return for municipal tobacco bonds. Tobacco bonds performed
extremely well after the announcements.
WHAT IS YOUR OUTLOOK?
California issuance has been running counter to the general market trend and has
been up all year, while general market issuance has declined in the last three
months. Much of the issuance from the state has been in response to its budget
difficulties and the need to continue to finance projects already in progress or
to replenish depleted cash balances. We do not expect issuance from the state to
ebb anytime soon. We believe the combination of very strong issuance from the
state and a less than stellar market for bonds will generally cause California
bonds to under perform the market for the time being.
Even though the national economic picture appears to be slowly improving, we
believe that the state finance picture has at least a year to go prior to credit
improvement. California represents a true credit puzzle from both a political
and fiscal perspective. We have a real concern Moody's Rating Agency could join
Standard & Poors and lower the state's general obligation debt rating to the
"BBB" category. The state's strong issuance needs, combined with a second agency
downgrade to "BBB", will cause a strong negative market reaction.
We also note that California counties, schools and other state and local
agencies that collect property taxes may be required to refund close to $10
billion in past property tax collections if a court finds they violated
assessment methodologies dictated under Proposition 13. We will continue our
focus on higher yielding securities, but we will also seek to balance the risks
we see in the market.
28
The Hartford Tax-Free Minnesota Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(7,9) 10/31/93 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS MUNICIPAL BOND
TAX-FREE MINNESOTA FUND INDEX
----------------------- ------------------------------
10/31/93 9550 10000
9487 9912
9635 10121
9740 10237
9515 9972
9154 9565
9188 9647
9314 9730
9284 9671
9456 9848
9464 9882
9351 9737
10/94 9182 9564
9022 9391
9226 9598
9460 9872
9694 10159
9749 10276
9747 10288
10024 10617
9925 10524
9991 10623
10086 10758
10131 10826
10/95 10276 10984
10421 11166
10526 11273
10571 11358
10497 11282
10362 11137
10337 11106
10342 11102
10438 11223
10525 11324
10510 11322
10639 11480
10/96 10727 11610
10877 11822
10841 11772
10845 11795
10933 11903
10789 11744
10879 11843
11022 12021
11133 12149
11395 12485
11270 12368
11394 12515
10/97 11463 12596
11522 12670
11682 12854
11785 12987
11766 12991
11769 13003
11706 12944
11888 13149
11926 13201
11952 13234
12182 13438
12334 13606
10/98 12280 13605
12330 13653
12355 13688
12474 13850
12416 13790
12405 13809
12442 13843
12345 13763
12188 13565
12223 13614
12137 13505
12123 13511
10/99 11988 13364
12098 13507
12037 13406
11975 13348
12125 13503
12325 13798
12253 13716
12180 13645
12449 14006
12604 14201
12786 14420
12713 14345
10/00 12858 14502
12952 14611
13306 14972
13388 15121
13444 15169
13537 15305
13354 15139
13513 15302
13589 15404
13790 15633
13993 15890
13931 15837
10/01 14117 16025
13940 15890
13797 15740
13994 16013
14066 16206
13828 15888
14083 16199
14151 16298
14314 16470
14478 16683
14630 16883
14935 17253
10/02 14633 16966
14530 16895
14871 17252
14801 17208
15027 17449
15015 17460
15076 17868
15478 17986
15394 17909
14777 17282
14869 17412
15366 17924
10/03 15253 17834
</Table>
<Table>
--- TAX-FREE MINNESOTA FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$15,253 ending value $17,834 ending value
</Table>
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- -----------------------------------------------------------------------
Minnesota A# 6/2/1986 4.23% 4.43% 4.80% 6.16%
- -----------------------------------------------------------------------
Minnesota A## 6/2/1986 -0.43% 3.48% 4.32% 5.88%
- -----------------------------------------------------------------------
Minnesota B# 11/14/1994 3.42% 3.59% NA* NA*
- -----------------------------------------------------------------------
Minnesota B## 11/14/1994 -1.58% 3.25% NA* NA*
- -----------------------------------------------------------------------
Minnesota C# 11/14/1994 3.51% 3.59% NA 5.20%
- -----------------------------------------------------------------------
Minnesota C## 11/14/1994 1.47% 3.21% NA 5.08%
- -----------------------------------------------------------------------
Minnesota E# 6/2/1986 4.50% 4.67% 4.92% 6.23%
- -----------------------------------------------------------------------
Minnesota E## 6/2/1986 -0.23% 3.72% 4.44% 5.95%
- -----------------------------------------------------------------------
Minnesota H# 11/14/1994 3.46% 3.63% NA* NA*
- -----------------------------------------------------------------------
Minnesota H## 11/14/1994 -0.53% 3.29% NA* NA*
- -----------------------------------------------------------------------
Minnesota L# 11/14/1994 4.34% 4.42% NA 6.03%
- -----------------------------------------------------------------------
Minnesota L## 11/14/1994 -0.31% 3.47% NA 5.49%
- -----------------------------------------------------------------------
Minnesota M# 11/14/1994 3.67% 3.68% NA* NA*
- -----------------------------------------------------------------------
Minnesota M## 11/14/1994 -0.33% 3.34% NA* NA*
- -----------------------------------------------------------------------
Minnesota N# 11/14/1994 3.47% 3.68% NA 5.23%
- -----------------------------------------------------------------------
Minnesota N## 11/14/1994 2.47% 3.68% NA 5.23%
- -----------------------------------------------------------------------
Minnesota Y# 2/19/2002 4.50% NA NA 9.64%
- -----------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Tax-Free Minnesota
Fund Class A placed in the 4th quartile with a total return, before sales
charge, of 4.23% versus a return of 5.11% for the Lehman Brothers Municipal Bond
Index and the 5.00% for the Lipper peer group.
The primary objective of the Hartford Tax-Free Minnesota Fund is to provide
current income exempt from both federal income tax and Minnesota state personal
income tax. As of October 31, 2003, the SEC yield for this Fund's Class A shares
is 3.11%.
WHY DID THE FUND PERFORM THIS WAY?
The Fund's performance suffered from an overweight to the short maturing
securities early this year and more recently, our overweight to the
underperforming intermediate part of the yield curve. Security selection in
Puerto Rico debt, which suffered spread widening, and limited exposure to
tobacco bonds, which saw spreads tighten, also caused a drag on performance.
The lack of Minnesota paper created a very challenging environment for
repositioning the Fund. Most of the deals brought to market were of very high
quality and offered little in the way of yield pickup. We have had a strong bias
toward the relative safety of local general obligation debt as we headed into
the current economic cycle. We believe tight spreads for lower quality Minnesota
paper are a product of a lack of supply and not credit fundamentals. Therefore,
we favored quality over the yield compensation for moving into lower rated
credits. We also continued to carry more insured bonds than the index due to our
preference for quality.
WHAT IS YOUR OUTLOOK?
Minnesota's economic and fiscal recovery remains uncertain. The State's revenue
report in December will indicate to state lawmakers whether additional budget
cuts are required during the next legislative session. Minnesota Governor
Pawlenty filed an application for federal agricultural disaster relief for 62
counties, and he expects the number to rise after a second assessment by the
Farm Service Agency. State officials are estimating losses of about $1.1 billion
in crops alone.
We have focused on increasing exposure to those revenue sectors where we see
positive demographic trends, strong product demand in all economic environments
and good liquidity provided by retail. We like public and private higher
education bonds (demographics), corporate industrial development revenue bonds
(national economic recovery) and health care bonds. We are actively looking for
health related credits at a time when changes in both federal and state health
policy might bring additional volatility to the sector. When the market presents
the opportunity, we expect that the industrial/pollution control and hospital
sectors will be overweights for the Fund because of the ability to pickup
incremental yield.
29
The Hartford Tax-Free National Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(7,9) 10/31/93 -- 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS MUNICIPAL BOND
TAX-FREE NATIONAL FUND INDEX
---------------------- ------------------------------
10/31/93 9550 10000
9432 9912
9619 10121
9747 10237
9506 9972
9108 9565
9132 9647
9235 9730
9172 9671
9372 9848
9414 9882
9226 9737
10/94 9038 9564
8902 9391
9122 9598
9364 9872
9645 10159
9690 10276
9690 10288
10003 10617
9846 10524
9929 10623
10039 10758
10084 10826
10/95 10242 10984
10458 11166
10569 11273
10623 11358
10515 11282
10357 11137
10305 11106
10311 11102
10404 11223
10527 11324
10504 11322
10658 11480
10/96 10773 11610
10968 11822
10904 11772
10900 11795
10986 11903
10830 11744
10918 11843
11077 12021
11196 12149
11561 12485
11380 12368
11531 12515
10/97 11598 12596
11656 12670
11855 12854
11976 12987
11948 12991
11931 13003
11827 12944
12054 13149
12077 13201
12089 13234
12296 13438
12450 13606
10/98 12407 13605
12441 13653
12475 13688
12599 13850
12522 13790
12500 13809
12547 13843
12434 13763
12219 13565
12255 13614
12141 13505
12131 13511
10/99 11958 13364
12099 13507
12018 13406
11949 13348
12116 13503
12354 13798
12275 13716
12195 13645
12499 14006
12659 14201
12857 14420
12777 14345
10/00 12915 14502
13006 14611
13415 14972
13506 15121
13535 15169
13648 15305
13402 15139
13552 15302
13649 15404
13865 15633
14160 15890
14077 15837
10/01 14268 16025
14081 15890
13883 15740
14137 16013
14270 16206
13958 15888
14259 16199
14381 16298
14539 16470
14737 16683
14922 16883
15279 17253
10/02 14963 16966
14830 16895
15230 17252
15125 17208
15388 17449
15366 17460
15498 17868
15933 17986
15813 17909
15085 17282
15234 17412
15691 17924
10/03 15588 17834
</Table>
<Table>
--- TAX-FREE NATIONAL FUND --- LEHMAN BROTHERS MUNICIPAL BOND INDEX
$9,550 starting value $10,000 starting value
$15,588 ending value $17,834 ending value
</Table>
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ------------------------------------------------------------------
National A# 6/2/1986 4.18% 4.67% 5.02% 6.61%
- ------------------------------------------------------------------
National A## 6/2/1986 -0.50% 3.72% 4.54% 6.33%
- ------------------------------------------------------------------
National B# 11/14/1994 3.43% 3.66% NA* NA*
- ------------------------------------------------------------------
National B## 11/14/1994 -1.47% 3.32% NA* NA*
- ------------------------------------------------------------------
National C# 11/14/1994 3.42% 3.74% NA 5.62%
- ------------------------------------------------------------------
National C## 11/14/1994 1.39% 3.36% NA 5.50%
- ------------------------------------------------------------------
National E# 6/2/1986 4.39% 4.73% 5.05% 6.63%
- ------------------------------------------------------------------
National E## 6/2/1986 -0.30% 3.77% 4.57% 6.35%
- ------------------------------------------------------------------
National H# 11/14/1994 3.47% 3.74% NA* NA*
- ------------------------------------------------------------------
National H## 11/14/1994 -0.46% 3.40% NA* NA*
- ------------------------------------------------------------------
National L# 11/14/1994 4.24% 4.49% NA 6.42%
- ------------------------------------------------------------------
National L## 11/14/1994 -0.45% 3.54% NA 5.87%
- ------------------------------------------------------------------
National M# 11/14/1994 3.47% 3.72% NA* NA*
- ------------------------------------------------------------------
National M## 11/14/1994 -0.46% 3.38% NA* NA*
- ------------------------------------------------------------------
National N# 11/14/1994 3.48% 3.73% NA 5.61%
- ------------------------------------------------------------------
National N## 11/14/1994 2.49% 3.73% NA 5.61%
- ------------------------------------------------------------------
National Y# 2/19/2002 4.53% NA NA 5.96%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not applicable
* 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Tax-Free National
Fund Class A placed in the 4th quartile with a total return, before sales
charge, of 4.18% versus the return of 4.88% for the Lipper peer group and a
return of 5.11% for the Lehman Brothers Municipal Bond Index.
The primary objective of the Hartford Tax-Free National Fund is to provide
current income exempt from federal income tax. As of October 31, 2003, the SEC
yield for this Fund's Class A shares is 3.59%.
WHY DID THE FUND PERFORM THIS WAY?
Throughout the year, the Fund's performance lagged due to our overweight to
longer maturity bonds and underweight to the better performing intermediate
portion of the yield curve. The primary driver of the Fund's underperformance
has been its exposure to the long portion of the curve. A lack of exposure to
short maturity bonds, which generally have done well, also hurt the Fund's
performance.
A lack of exposure to troubled airline special facility bonds assisted Fund
performance in the beginning of the year. However, the airline industry appears
to be rebounding and direct airline industry debt has performed especially well
in the second half of the year. The Fund's limited exposure to tobacco bonds
also produced a drag on performance. Until recently, state tobacco bonds
suffered heavy losses because of the uncertain outcome of a lawsuit against
Phillip Morris USA. However, three separate favorable legal judgments for the
tobacco companies were announced in September. The most important decision came
from the Illinois Supreme Court, which in part reversed a lower court ruling in
a case that threatened to force Philip Morris into bankruptcy. This proved to be
very positive news and our tobacco bond holdings performed extremely well after
the announcements.
WHAT IS YOUR OUTLOOK?
Even though the national economic picture appears to be slowly improving, we
believe that the general state finance picture has at least a year to go before
true credit improvement. Two points worth noting: 1) the dollar value volume of
downgrades continues to outpace upgrades; and, 2) while we do recognize an
up-tick in revenue collections, it remains to be seen if growth is robust enough
to support current operations and outstanding deficits. We continue to closely
monitor economic developments to determine the strength of the national
recovery. We were encouraged by September's improved economic outlook provided
in Federal Reserve's Beige Book, excellent Gross Domestic Product statistics and
October's positive employment numbers. Additionally, the Bureau of Economic
Analysis has indicated, a second quarter $50 billion decline in state budget
deficits leaves only $30 - $40 billion in additional fiscal drag to address. In
general, we expect state tax receipts, namely personal income taxes, to begin to
show improvement in the first half of next year and ratings to improve
immediately thereafter.
We continue to reduce our exposure to the higher quality sectors, in favor of
the lower quality sectors. Our expectation is that the lower quality credit
spectrum will perform very well in an improving economy and we believe we are
being fairly compensated for the additional credit risk. As the supply of
municipal debt decreased the last two consecutive months, we have seen a reach
for yield that is causing high yield debt spreads to tighten. Most of the
improvement in high yield debt can be attributed to the improving outlook for
airline debt and the favorable tobacco legal decisions mentioned earlier.
30
The Hartford Tax-Free New York Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 10/31/02 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
TAX-FREE NEW YORK FUND LEHMAN NEW YORK EXEMPT INDEX
---------------------- ----------------------------
10/31/02 9550 10000
9474 9945
9733 10161
9660 10138
9831 10275
9850 10285
9937 10561
10256 10628
10168 10585
9643 10185
9752 10267
10097 10562
10/03 10030 10514
</Table>
<Table>
--- TAX-FREE NEW YORK FUND --- LEHMAN NEW YORK EXEMPT INDEX
$9,550 starting value $10,000 starting value
$10,030 ending value $10,514 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ------------------------------------------------------------
New York A# 10/31/2002 5.03% 5.03%
- ------------------------------------------------------------
New York A## 10/31/2002 0.32% 0.32%
- ------------------------------------------------------------
New York B# 10/31/2002 4.30% 4.30%
- ------------------------------------------------------------
New York B## 10/31/2002 -0.70% -0.70%
- ------------------------------------------------------------
New York C# 10/31/2002 4.30% 4.30%
- ------------------------------------------------------------
New York C## 10/31/2002 2.26% 3.27%
- ------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
CHARLES GRANDE
Senior Vice President
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Tax-Free New York
Fund Class A placed in the 2nd quartile with a total return, before sales
charge, of 5.03% versus the 4.93% return for the Lipper peer group and the
return of 5.14% for the Lehman Brothers New York Exempt Index.
The primary objective of The Hartford Tax-Free New York Fund is to provide
current income exempt from federal and New York and New York City income tax. As
of October 31, 2003, the SEC yield for this Fund's class A shares is 3.51%.
WHY DID THE FUND PERFORM THIS WAY?
Strong performance earlier this year was primarily due to a lack of exposure to
the short maturities, an overweight to the better performing portion of the New
York yield curve between 18-22 years and better security selection. However for
the second half of the year, performance lagged primarily because of the Fund's
strong overweight to the underperforming intermediate portion of the curve.
Additionally, our limited exposure to airline and tobacco debt also contributed
to underperformance.
Quality and solid credit fundamentals provided the best return for the Fund over
the last year. This has been partially driven by the rating agencies' issuance
of negative outlooks for New York City and negative headline news on the fiscal
condition of New York State. Insured local general obligation debt provided good
diversification away from the state's credit.
WHAT IS YOUR OUTLOOK?
New York State and New York City continue to struggle with the negative
consequences of a declining national economy, a continued negative picture for
the securities industry and the still lingering negative effects of the
September 11th tragedy. The state appears to be in a better fiscal position than
the city, but the balance of its fiscal operations seems precarious at best with
estimated budget gaps of between $5 billion to $8 billion. New York State is
among twelve states facing possible downgrade. According to Standard & Poors
rating agency, the State's "AA" rating is under pressure because of economic
weakness, poor revenue performance, increasing debt issuance (largest in the
country at $39 billion) and reliance on large one-time revenue sources used to
balance the current fiscal year's budget.
Although prior to October we thought New York issuance would be strong, we now
believe that issuance (after a substantial tobacco bond deal) will be no better
than average. Demand will remain strong, and combined with our outlook on supply
and the unlikelihood of substantial credit events into year-end, New York bonds
should continue to perform fairly well.
We have focused on increasing exposure to those revenue sectors where we see
positive demographic trends, strong product demand in all economic environments
or good liquidity provided by retail demand. We like public and private higher
education bonds (demographics), corporate industrial development revenue bonds
(national economic recovery) and power bonds, especially in light of the recent
region wide blackout. Since the beginning of the year, we have selectively
increased our exposure to the hospital sector. We are very cautious of the New
York health care market because we believe it is an "over-bedded" market that is
ripe for consolidation and elimination of excess capacity. We are also concerned
that the state's financial difficulties could translate into a reduction in
Medicaid spending.
31
The Hartford Total Return Bond Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(3) 7/22/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
LEHMAN BROTHERS U.S. AGGREGATE BOND
TOTAL RETURN BOND FUND INDEX
---------------------- -----------------------------------
7/22/96 9550 10000
9569 10027
9562 10010
9751 10184
10/96 9958 10410
10168 10588
10097 10490
10153 10522
10186 10549
10054 10431
10205 10588
10315 10689
10464 10816
10811 11108
10694 11013
10865 11175
10/97 10960 11337
11034 11389
11187 11504
11339 11652
11332 11642
11381 11682
11419 11743
11533 11854
11618 11955
11618 11980
11693 12175
12008 12460
10/98 11871 12394
11996 12465
12027 12502
12122 12591
11818 12371
11878 12439
11940 12479
11769 12369
11697 12329
11655 12276
11632 12270
11739 12412
10/99 11766 12458
11770 12457
11702 12397
11673 12356
11813 12506
11970 12671
11951 12634
11940 12628
12212 12891
12293 13008
12434 13196
12505 13280
10/00 12539 13367
12733 13586
13017 13839
13302 14066
13381 14189
13398 14259
13378 14200
13452 14285
13430 14339
13740 14660
13893 14829
13928 15002
10/01 14162 15316
14084 15105
14020 15008
14075 15129
14130 15276
13909 15023
14178 15314
14327 15444
14304 15579
14335 15767
14609 16034
14745 16293
10/02 14798 16218
14958 16213
15323 16549
15450 16564
15685 16793
15705 16779
15905 16918
16243 17233
16229 17199
15739 16621
15847 16730
16274 17174
10/03 16153 17014
</Table>
<Table>
--- TOTAL RETURN BOND FUND --- LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX
$9,550 starting value $10,000 starting value
$16,153 ending value $17,014 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1,2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- --------------------------------------------------------------
Total Return A# 7/22/1996 9.16% 6.36% 7.49%
- --------------------------------------------------------------
Total Return A## 7/22/1996 4.24% 5.38% 6.81%
- --------------------------------------------------------------
Total Return B# 7/22/1996 8.44% 5.61% 6.73%
- --------------------------------------------------------------
Total Return B## 7/22/1996 3.44% 5.28% 6.73%
- --------------------------------------------------------------
Total Return C# 7/22/1996 8.31% 5.59% 6.72%
- --------------------------------------------------------------
Total Return C## 7/22/1996 6.23% 5.39% 6.57%
- --------------------------------------------------------------
Total Return Y# 7/22/1996 9.68% 6.84% 7.98%
- --------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
NASRI TOUTOUNGI
Managing Director
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford Total Return Bond
Fund Class A placed in the 1st quartile with a total return, before sales
charge, of 9.16% versus a return of 4.91% for the Lehman Brothers U.S. Aggregate
Bond Index and the 5.38% for the Lipper peer group.
WHY DID THE FUND PERFORM THIS WAY?
Throughout the past 12 months, the Fund has benefited from its overweight in
investment grade and high yield corporate bonds. While poor high yield security
selection caused a very slight drag to performance recently, overall our high
yield allocation based on our belief that corporations would continue to focus
on balance sheet repair has delivered stellar performance. Strong performance is
also due to the Fund's holdings in non-dollar securities as well as our
judicious interest rate anticipation versus the index. The Fund's duration was
short going into the rate increase of late July, and was long subsequently as
rates backed up. The Fund's exposure in non-dollar bonds continues to benefit
the Fund as fundamentals continue to support a weak US dollar relative to
foreign currencies. These securities also offer a higher yield than comparable
US issues.
We remain concerned about the mortgage-backed sector as we continue to see
record refinancing activity and believe the sector could under-perform both in a
rally and in a backup. We also continue to avoid agencies, as regulators probe
their credit worthiness and fear that the ongoing debate about their government
sponsored status would negatively affect them. We prefer to take our credit risk
in corporate bonds.
WHAT IS YOUR OUTLOOK?
It is becoming apparent that the U.S. economy is on its way to recovery. The
latest data suggests that the massive fiscal and monetary stimuli are having a
direct effect on the consumer. The most recent tax cuts started to take effect
in the third quarter of this year and translated directly into increased retail
sales. Meanwhile, initial jobless unemployment claims are pointing to an
improved labor picture, and should translate into further increases in
consumption. There is now evidence of an increase in corporate capital spending,
which should be accompanied by increased spending on labor capital. Meanwhile,
the Federal Reserve is anchoring short rates for a "considerable period" of
time. The removal of this language will signal the beginning of a trend toward
higher rates and a flatter yield curve.
We remain constructive on corporate bond spreads, but we are not nearly as
sanguine as we were earlier in the year. While fundamentals for corporate
securities continue to improve, bonds have done very well versus their Treasury
counterparts. We have increased our exposure to lower coupon mortgage-backed
securities, but remain underweight to the sector. The Fund will benefit
commensurately if mortgage-backed securities do well relative to Treasuries.
Agency debentures could experience further volatility, hence we will remain
underweight in the sector. We have reentered a position in foreign bonds on an
unhedged basis. The currency markets are once again focused on the very large US
trade deficit, and in a rising rate environment, European bonds should do well
versus US bonds.
32
The Hartford U.S. Government Securities Fund
(subadvised by Hartford Investment Management Company)
PERFORMANCE OVERVIEW(7,9) 10/31/93 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES LEHMAN BROTHERS LEHMAN BROTHERS U.S. GOV'T
FUND INTERMEDIATE GOV'T INDEX* INDEX*
-------------------------- ------------------------- --------------------------
10/31/93 9550 10000 10000
9455 9951 9890
9544 9992 9929
9670 10090 10065
9505 9952 9851
9201 9807 9630
9034 9743 9553
9034 9750 9541
8984 9752 9519
9135 9880 9694
9142 9909 9696
9006 9827 9560
10/94 8972 9829 9553
8948 9785 9536
9006 9817 9594
9169 9977 9772
9354 10169 9982
9403 10225 10045
9515 10344 10177
9798 10636 10587
9867 10703 10668
9839 10709 10629
9952 10797 10753
10041 10869 10857
10/95 10186 10988 11022
10320 11122 11194
10444 11232 11352
10512 11327 11422
10333 11207 11189
10266 11156 11096
10209 11123 11025
10195 11118 11006
10319 11231 11148
10338 11266 11176
10323 11278 11151
10507 11424 11336
10/96 10717 11611 11586
10892 11752 11787
10794 11688 11667
10828 11733 11680
10849 11752 11696
10726 11685 11572
10882 11817 11739
10977 11909 11840
11098 12011 11973
11379 12233 12313
11286 12186 12191
11455 12318 12374
10/97 11611 12462 12588
11643 12489 12652
11751 12591 12785
11910 12755 12977
11887 12742 12941
11928 12781 12978
11969 12842 13036
12088 12931 13170
12208 13018 13321
12224 13068 13341
12476 13315 13687
12783 13626 14057
10/98 12666 13648 14009
12722 13606 14013
12751 13659 14044
12805 13720 14126
12549 13532 13789
12616 13622 13843
12643 13659 13875
12522 13575 13753
12468 13595 13725
12414 13597 13705
12388 13616 13705
12543 13732 13816
10/99 12559 13760 13838
12564 13769 13818
12497 13726 13729
12446 13680 13748
12581 13793 13943
12732 13951 14188
12710 13945 14149
12689 13982 14157
12914 14204 14409
13024 14299 14549
13207 14459 14764
13320 14585 14806
10/00 13419 14685 14948
13654 14901 15242
13934 15164 15546
14095 15365 15703
14242 15506 15882
14314 15619 15937
14231 15569 15775
14285 15634 15827
14304 15684 15899
14626 15976 16281
14780 16118 16483
15040 16462 16770
10/01 15294 16719 17202
15073 16520 16817
14978 16440 16671
15058 16511 16779
15240 16647 16934
15035 16396 16566
15313 16703 16960
15431 16820 17062
15564 17030 17301
15837 17351 17682
16044 17548 18032
16318 17850 18454
10/02 16263 17838 18306
16171 17697 18149
16599 18024 18588
16507 17985 18541
16763 18188 18840
16720 18191 18785
16819 18242 18872
17153 18529 19360
16996 18499 19260
16257 18050 18464
16316 18082 18568
16782 18474 19108
10/03 16599 18293 18837
</Table>
<Table>
--- U.S. GOVERNMENT SECURITIES FUND --- LEHMAN BROTHERS INTERMEDIATE GOV'T INDEX*
$9,550 starting value $10,000 starting value
$16,599 ending value $18,293 ending value
-- LEHMAN BROTHERS U.S. GOV'T INDEX*
$10,000 starting value
$18,837 ending value
</Table>
*The Fund has changed its benchmark from the Lehman Brothers Intermediate Gov't
Index to the Lehman Brothers U.S. Government Index because the Lehman Brothers
U.S. Government Index is better suited for the investment strategy of the fund.
PORTFOLIO MANAGER
PETER PERROTTI
Senior Vice President, CFA
AVERAGE ANNUAL TOTAL RETURNS(7,8) (as of 10/31/03)
<Table>
<Caption>
INCEPTION 1 5 10 SINCE
DATE YEAR YEAR YEAR INCEPTION
- ------------------------------------------------------------------
U.S. Gov A# 2/28/1973 2.06% 5.56% 5.69% 7.92%
- ------------------------------------------------------------------
U.S. Gov A## 2/28/1973 -2.57% 4.59% 5.21% 7.76%
- ------------------------------------------------------------------
U.S. Gov B# 11/14/1994 1.45% 4.61% NA** NA**
- ------------------------------------------------------------------
U.S. Gov B## 11/14/1994 -3.45% 4.28% NA** NA**
- ------------------------------------------------------------------
U.S. Gov C# 11/14/1994 1.34% 4.62% NA 6.14%
- ------------------------------------------------------------------
U.S. Gov C## 11/14/1994 -0.67% 4.24% NA 6.02%
- ------------------------------------------------------------------
U.S. Gov E# 2/28/1973 2.49% 5.69% 5.76% 7.94%
- ------------------------------------------------------------------
U.S. Gov E## 2/28/1973 -2.17% 4.71% 5.28% 7.78%
- ------------------------------------------------------------------
U.S. Gov H# 11/14/1994 1.57% 4.63% NA* NA*
- ------------------------------------------------------------------
U.S. Gov H## 11/14/1994 -2.35% 4.29% NA* NA*
- ------------------------------------------------------------------
U.S. Gov L# 11/14/1994 2.32% 5.41% NA 6.95%
- ------------------------------------------------------------------
U.S. Gov L## 11/14/1994 -2.34% 4.44% NA 6.40%
- ------------------------------------------------------------------
U.S. Gov M# 11/14/1994 1.47% 4.63% NA* NA*
- ------------------------------------------------------------------
U.S. Gov M## 11/14/1994 -2.45% 4.2*9% NA* NA*
- ------------------------------------------------------------------
U.S. Gov N# 11/14/1994 1.47% 4.65% NA 6.16%
- ------------------------------------------------------------------
U.S. Gov N## 11/14/1994 0.49% 4.65% NA 6.16%
- ------------------------------------------------------------------
U.S. Gov Y# 2/19/2002 2.51% NA NA 5.81%
- ------------------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not applicable
** 10 year and inception returns are not applicable for Classes
B, H and M because after 8 years Class B converts to Class A
and Classes H and M convert to Class L.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the one year period ended October 31, 2003, The Hartford US Government
Securities Fund Class A placed in the 3rd quartile with a return, before sales
charge, of 2.06% versus the return of 2.12% for the Lipper peer group and return
of 2.90% for the Lehman Brothers U.S. Government Index.
The primary objective of the Hartford US Government Securities Fund is to
provide current income while maintaining preservation of capital consistent with
prudent investment risk. As of October 31, 2003, the SEC yield for this Fund's
Class A shares was 3.81%.
WHY DID THE FUND PERFORM THIS WAY?
During the first half of the year, the Fund benefited from being overweight to
the 5 to 10-year part of the Treasury curve, where yields rallied the most early
in the year. Our overweights to mortgage-backed securities, callable agencies
and collateralized mortgage obligations continued to add a significant yield
pickup for the Fund regardless of the very low rate environment.
However, in the late spring and early summer, Treasuries rallied significantly
as the market became focused on the poor job market and the Federal Open Market
Committee's concerns about deflation. The Fund was positioned with a short
duration versus the benchmark, which hurt performance. The job situation
appeared to be improving in July and bond rates backed up precipitously. The
Fund's overweight in mortgage-backed securities caused the Fund to underperform
on a total return basis as the mortgage market suffered from the aftershock of a
multi-decade low in rates, underperforming comparable duration Treasuries.
Refinancing activity had hit an all time high earlier in the summer, as
homeowners took advantage of the drop in mortgage rates. As rates backed up
through the third quarter, the price sensitivity of the mortgage market
increased significantly. Although the backup slowed the rate of prepayment and
refinancing activity significantly, the sector came under pressure as many
investors sold mortgages to rebalance the price sensitivity of their portfolios.
WHAT IS YOUR OUTLOOK?
The economic backdrop has become positive. Corporations have begun to show signs
of improving profits and capital spending has turned upward. The consumer has
remained robust, aided in the third quarter by the tax cuts and refinancing
activity. Although there are many concerns about the strength and sustainability
of the recovery, the recovery appears to have taken hold.
We believe the worst is over for the mortgage market with values fairly priced.
This sector will continue to offer good diversification and total return
potential within an overall government mandate. Prepayments have started to drop
off, which in turn have increased the overall yield of the mortgage market. The
Fund will maintain a significant holding in the sector.
With the steep yield curve, there remain many opportunities to increase the
overall yield of the Fund by pushing out the yield curve. This increased yield
will be balanced with the increase in price sensitivity by adding securities
with longer duration. The Fund will continue to prudently add yield to the
portfolio with an allocation to mortgage-backed securities and opportunistically
add Treasury inflation indexed securities when the yield potential is larger.
33
The Hartford Value Fund (subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(3) 4/30/01 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
VALUE FUND RUSSELL 1000 VALUE INDEX
---------- ------------------------
4/30/01 9450 10000
9554 10225
9488 9998
9507 9977
9214 9577
8553 8903
10/01 8524 8826
9063 9339
9320 9559
9158 9486
9121 9501
9321 9950
8893 9609
8921 9657
8390 9103
7696 8256
7553 8319
6717 7394
10/02 7212 7942
7610 8442
7162 8076
6913 7880
6808 7670
6855 7683
7420 8359
7909 8899
7976 9010
8043 9144
8205 9287
8081 9196
10/03 8540 9759
</Table>
<Table>
--- VALUE FUND --- RUSSELL 1000 VALUE INDEX
$9,450 starting value $10,000 starting value
$8,540 ending value $9,759 ending value
</Table>
AVERAGE ANNUAL TOTAL RETURNS(2) (as of 10/31/03)
<Table>
<Caption>
INCEPTION DATE 1 YEAR SINCE INCEPTION
- ---------------------------------------------------------
Value A# 4/30/2001 18.43% -3.96%
- ---------------------------------------------------------
Value A## 4/30/2001 11.94% -6.09%
- ---------------------------------------------------------
Value B# 4/30/2001 17.58% -4.64%
- ---------------------------------------------------------
Value B## 4/30/2001 12.58% -5.78%
- ---------------------------------------------------------
Value C# 4/30/2001 17.58% -4.64%
- ---------------------------------------------------------
Value C## 4/30/2001 15.40% -5.02%
- ---------------------------------------------------------
Value Y# 4/30/2001 18.66% -3.63%
- ---------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
PORTFOLIO MANAGER
JOHN R. RYAN, CFA
Senior Vice President, Managing Partner
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
The Hartford Value Fund Class A, before sales charge, returned 18.43% for the
twelve-month period ended October 31, 2003. The Fund under-performed its
benchmark, the Russell 1000 Value Index, which returned 22.87% and the Fund's
Lipper Large-Cap Value peer group, which returned 20.8%.
WHY DID THE FUND PERFORM THIS WAY?
During the period, large-cap stocks continued to significantly lag small- and
mid-cap stocks, while value slightly outperformed growth. All ten sectors of the
Russell 1000 Value Index posted positive gains, with Information Technology,
Financials and Consumer Discretionary leading the way.
The Fund's under-performance during this period was due primarily to poor stock
selection in Finance and Energy and our overweight position and poor stock
selection in Telecommunications. Within Finance, the Fund's underweight position
within Diversified Financials, an area that posted strong returns over the past
year, hurt performance. Additionally, poor stock selection within Banks was a
drag on performance. The three greatest detractors from performance were Micron
Technology (Technology), Stanley Works (Household Durables), and SBC
Communications (Telecommunications). SBC reported disappointing results for the
third quarter as its margins were impacted by pension, health care and increased
spending in DSL and long distance. However, SBC is making progress in its DSL
business line. As of the end of the period, we trimmed SBC and eliminated the
other two positions.
These negatives were partially offset by positive contributions from stock
selection in Health Care, in particular Health Care Equipment, and Industrials.
Additionally, the combination of our overweight position and strong stock
selection in Technology also boosted performance. The top three contributors to
performance during the period were Citigroup (Financials), Comcast (Media), and
Caterpillar (Capital Goods). Citigroup has executed well, controlled costs and
is leveraged to improving global capital markets. Comcast has executed its
merger plans for the acquired AT&T properties well and is on track to bring the
old AT&T margins up to the levels of the old Comcast systems. Caterpillar is
seeing strengthening demand and cost reduction efforts drive earnings higher. As
of the end of the period, all three stocks were held in the portfolio.
WHAT IS YOUR OUTLOOK?
Economic stimulus from fiscal, monetary, and dollar policies, aided by the
self-healing mechanisms embedded in the economy, led us to expect an improvement
in growth in the second half of the year. With the third quarter Gross Domestic
Product growth in excess of 4%, our thesis remains intact. The only things that
have changed are the sharp equity market rally and the heightened sensitivity of
policy makers to structural issues that have become obvious over the last three
months. Despite an economic expansion that is nearly two years old, investors in
the US and abroad share a sense of unease as a result of a jobless recovery,
unbalanced dependence on consumer spending, and unsustainable deficits. Given
this outlook, we continue to build positions in long-cycle companies and believe
that long-term, the fund is well positioned to benefit from the recovering
economy.
34
The Hartford Value Opportunities Fund
(subadvised by Wellington Management Company, LLP)
PERFORMANCE OVERVIEW(4,6) 1/2/96 - 10/31/03
Growth of a $10,000 investment in Class A which includes Sales Charge
(LINE GRAPH)
<Table>
<Caption>
VALUE OPPORTUNITIES FUND RUSSELL 3000 VALUE INDEX
------------------------ ------------------------
1/2/96 9450 10000
9478 10288
9611 10373
9904 10554
10140 10617
10319 10763
10329 10758
9800 10334
10159 10647
10660 11055
10/96 10697 11451
11321 12260
11329 12159
11716 12706
11861 12887
11426 12436
11842 12923
12529 13675
12838 14273
13544 15299
13070 14829
13689 15734
10/97 13302 15295
13883 15921
14139 16392
14225 16154
15053 17230
15655 18250
15698 18369
15344 18060
15526 18261
14967 17839
12741 15172
13236 16041
10/98 14053 17220
14860 17995
15324 18603
15539 18708
15122 18367
15515 18709
16586 20452
16205 20287
16848 20887
16325 20284
15813 19533
15158 18871
10/99 15824 19850
15836 19711
16679 19839
16013 19201
15104 17949
17408 19979
17536 19769
17767 19943
16666 19133
17012 19399
18304 20464
17831 20632
10/00 19213 21102
18540 20341
19821 21435
20764 21551
20145 20990
19103 20277
20539 21266
20553 21749
20370 21362
19793 21287
18723 20487
16625 18987
10/01 16879 18867
18126 19982
19030 20506
18472 20379
18337 20418
18940 21426
17704 20805
17282 20844
15685 19706
14329 17793
14555 17912
12807 15970
10/02 13952 17085
15067 18180
14163 17391
13817 16965
13395 16505
13380 16543
14947 17655
16107 19218
16288 19464
16499 19802
17207 20143
17207 19943
10/03 18307 21194
</Table>
<Table>
--- VALUE OPPORTUNITIES FUND --- RUSSELL 3000 VALUE INDEX
$9,450 starting value $10,000 starting value
$18,307 ending value $21,194 ending value
</Table>
PORTFOLIO MANAGERS
JAMES H. AVERILL
Senior Vice President, Partner
JAMES N. MORDY
Senior Vice President, Partner
DAVID R. FASSNACHT, CFA
Senior Vice President, Partner
AVERAGE ANNUAL TOTAL RETURNS(4,5) (as of 10/31/03)
<Table>
<Caption>
INCEPTION SINCE
DATE 1 YEAR 5 YEAR INCEPTION
- -----------------------------------------------------------
Value Opp A# 1/2/1996 31.21% 5.43% 8.81%
- -----------------------------------------------------------
Value Opp A## 1/2/1996 23.98% 4.25% 8.03%
- -----------------------------------------------------------
Value Opp B# 1/2/1996 30.43% 4.65% 8.02%
- -----------------------------------------------------------
Value Opp B## 1/2/1996 25.43% 4.35% 8.02%
- -----------------------------------------------------------
Value Opp C# 1/2/1996 30.28% 4.65% 8.01%
- -----------------------------------------------------------
Value Opp C## 1/2/1996 27.98% 4.27% 7.87%
- -----------------------------------------------------------
Value Opp H# 1/2/1996 30.40% 4.67% 8.02%
- -----------------------------------------------------------
Value Opp H## 1/2/1996 26.40% 4.37% 8.02%
- -----------------------------------------------------------
Value Opp L# 1/2/1996 31.21% 5.43% 8.81%
- -----------------------------------------------------------
Value Opp L## 1/2/1996 25.00% 4.41% 8.14%
- -----------------------------------------------------------
Value Opp M# 1/2/1996 30.28% 4.65% 8.02%
- -----------------------------------------------------------
Value Opp M## 1/2/1996 26.28% 4.35% 8.02%
- -----------------------------------------------------------
Value Opp N# 1/2/1996 30.40% 4.67% 8.02%
- -----------------------------------------------------------
Value Opp N## 1/2/1996 29.40% 4.67% 8.02%
- -----------------------------------------------------------
Value Opp Y# 2/19/2002 31.40% NA 1.36%
- -----------------------------------------------------------
</Table>
# Without sales charge
## With sales charge
NA Not applicable
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Please see page 1 for important additional information including
inception dates and expenses.
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM?
For the 12-month period ended October 31, 2003, The Hartford Value Opportunities
Fund Class A, before sales charge, returned 31.21%. The Fund outperformed both
the Russell 3000 Value Index, which returned 24.06% and the Lipper Multi Cap
Value average, which returned 24.7% for the same period.
WHY DID THE FUND PERFORM THIS WAY?
After a strong start and solid performance for most of the period, US equity
markets mostly treaded water during the third quarter of calendar year 2003 as
investor enthusiasm cooled in the face of weaker than expected job growth and a
weaker US dollar. In this environment, large-cap value stocks underperformed
mid-cap stocks which underperformed small-cap stocks. Our significant overweight
position in mid-cap and small-caps along with our underweight in large-caps
versus the benchmark served us well during the period.
The Fund outperformed its market benchmark during the period as a result of
overall strong stock selection and sector allocation. Our overweight and strong
stock selection in Consumer Discretionary, including cable system operators,
homebuilders, and specialty retailers, benefited relative performance as the
sector reacted favorably to improving economic fundamentals. Also benefiting the
Fund was strong stock selection in Industrials and Health Care helped by such
securities as Continental Airlines (Industrials), and Health Net (Health Care).
Continental Airlines reported strong earnings in the third quarter of 2003 and
the mix of good product, strong alliances, and focused management all were
positives during the period. However, detracting from relative performance was
our overweight position in Health Care combined with unfavorable performance
from our Financials holdings such as Freddie Mac, which is being held to a
higher standard after the accounting problems in 2002. During the period the
Fund's top contributors to performance were Comcast (Consumer Discretionary),
Citigroup (Financials), and Tyco International (Industrials) while Micron
Technology (Information Technology), IMC Global (Materials), and BJ's Wholesale
(Consumer Staples) detracted the most from overall absolute performance. We have
eliminated our positions in Micron Technology and BJ's Wholesale.
We expect stocks invested through our low Price Earnings approach to outperform
over the long term. Value stocks, particularly on the large-cap side, have
lagged the overall market in 2003, as small-cap and "growthier" equities have
had their day in the sun. As a result, we are finding such large value companies
increasingly attractive, and they are gaining a higher weighting in the
portfolio. At some point, we would expect the market's frothier areas to retreat
in cases where they are unable to obtain the sales and earnings growth necessary
to support the current, let alone higher valuations. In that kind of market, we
would look for better relative performance from the "solid citizens," large, low
Price Earnings companies with good relative returns on capital and decent growth
prospects.
WHAT IS YOUR OUTLOOK?
Low interest rates, a weaker US dollar, and easy fiscal policy are providing
stimulus that is without precedent in the last thirty years. Consumers are the
main beneficiaries of these trends. While tax cuts and low interest rates
provide a temporary boost to consumption, job creation needs to underpin the
recovery. We expect to see a modest uptick in employment by the fourth quarter,
followed by a self-sustaining upturn in jobs and consumption next year. Overall,
relative to our market benchmark, the Fund is currently overweight Consumer
Discretionary and Health Care and we are underweight Financials,
Telecommunications, and Utilities.
35
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- 69.3%
BASIC MATERIALS -- 4.7%
202 3M Co. ........................................... $ 15,932
813 Alcoa, Inc. ...................................... 25,670
483 Dow Chemical Co. ................................. 18,191
376 DuPont (E.I.) de Nemours & Co. ................... 15,202
800 Gillette Co. (with rights)........................ 25,520
446 International Paper Co. .......................... 17,538
----------
118,053
----------
CAPITAL GOODS -- 2.2%
272 Illinois Tool Works, Inc. ........................ 20,006
181 Northrop Grumman Corp. (with rights).............. 16,172
223 United Technologies Corp. ........................ 18,894
----------
55,072
----------
CONSUMER CYCLICAL -- 6.5%
321 Caterpillar, Inc. (with rights)................... 23,501
693 Costco Wholesale Corp.(a)......................... 24,518
1,014 Gap, Inc. ........................................ 19,337
950 Home Depot, Inc. ................................. 35,217
151 Kohl's Corp.(a)................................... 8,489
486 Masco Corp. (with rights)......................... 13,376
311 NIKE, Inc. Class B................................ 19,879
429 Target Corp. (with rights)........................ 17,029
----------
161,346
----------
CONSUMER STAPLES -- 4.8%
782 Coca-Cola Co. .................................... 36,262
393 General Mills, Inc. .............................. 17,635
711 PepsiCo, Inc. .................................... 34,005
224 Procter & Gamble Co. ............................. 22,017
175 Weyerhaeuser Co. ................................. 10,522
----------
120,441
----------
ENERGY -- 3.6%
257 Chevron Texaco Corp. (with rights)................ 19,058
1,464 Exxon Mobil Corp. ................................ 53,549
353 Schlumberger Ltd. ................................ 16,585
----------
89,192
----------
FINANCE AND INSURANCE -- 15.0%
446 American Express Co. ............................. 20,926
750 American International Group, Inc. ............... 45,652
454 Bank of America Corp. ............................ 34,374
687 Bank One Corp. ................................... 29,146
1,363 Citigroup, Inc. .................................. 64,626
222 Fannie Mae........................................ 15,901
192 Franklin Resources, Inc. ......................... 9,114
323 HSBC Holdings plc ADR............................. 24,216
337 KeyCorp........................................... 9,523
454 Marsh & McLennan Companies, Inc. (with rights).... 19,421
425 Merrill Lynch & Co., Inc. ........................ 25,166
335 Morgan Stanley (with rights)...................... 18,404
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
FINANCE AND INSURANCE -- (CONTINUED)
347 State Street Corp. (with rights).................. $ 18,143
900 Travelers Property Casualty Corp. Class B......... 14,733
406 U.S. Bancorp (with rights)........................ 11,051
304 Wachovia Corp. (with rights)...................... 13,958
----------
374,354
----------
HEALTH CARE -- 9.2%
525 Abbott Laboratories (with rights)................. 22,358
260 Amgen, Inc. (with rights)(a)...................... 16,070
173 Cardinal Health, Inc. ............................ 10,266
255 Genzyme Corp.(a).................................. 11,714
395 HCA, Inc. ........................................ 15,109
304 Johnson & Johnson................................. 15,310
547 Lilly (Eli) & Co. (with rights)................... 36,414
279 Merck & Co., Inc. ................................ 12,333
2,135 Pfizer, Inc. (with rights)........................ 67,459
507 Wyeth (with rights)............................... 22,361
----------
229,394
----------
SERVICES -- 6.3%
792 Accenture Ltd. Class A(a)......................... 18,521
280 Automatic Data Processing, Inc. .................. 10,582
644 Comcast Corp. Class A(a).......................... 21,833
463 Computer Sciences Corp.(a)........................ 18,340
270 FedEx Corp. ...................................... 20,470
147 Marriott International, Inc. Class A (with
rights)......................................... 6,355
427 SAP AG ADR........................................ 15,599
444 Viacom, Inc. Class B.............................. 17,695
570 Walt Disney Co. .................................. 12,905
559 Waste Management, Inc. ........................... 14,484
----------
156,784
----------
TECHNOLOGY -- 16.7%
434 Applied Materials, Inc.(a)........................ 10,150
1,572 Cisco Systems, Inc. (with rights)(a).............. 32,978
232 First Data Corp. ................................. 8,286
2,322 General Electric Co. ............................. 67,358
1,425 Hewlett-Packard Co. .............................. 31,796
1,731 Intel Corp. ...................................... 57,220
519 International Business Machines Corp. ............ 46,449
1,531 Liberty Media Corp. Class A(a).................... 15,443
186 Lockheed Martin Corp. ............................ 8,632
2,650 Microsoft Corp. .................................. 69,295
989 Oracle Corp. (with rights)(a)..................... 11,832
516 Texas Instruments, Inc. (with rights)............. 14,914
2,713 Time Warner, Inc.(a).............................. 41,483
----------
415,836
----------
TRANSPORTATION -- 0.3%
273 CSX Corp. (with rights)........................... 8,677
----------
Total common stock
(cost $1,656,801)............................... $1,729,149
==========
</Table>
The accompanying notes are an integral part of this financial statement.
36
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 2.7%
FINANCE -- 1.8%
$ 10,000 Chase Manhattan Auto Owner Trust,
4.21%, Ser 2002-B Class A4 01/15/2009........... AAA $ 10,365
10,000 Citibank Credit Card Issuance Trust,
5.65%, Ser 2001-A6 Class A6 06/16/2008.......... AAA 10,762
1,000 Citibank Credit Card Master Trust I,
6.90%, Ser 1999-7 Class B 11/15/2006............ A 1,054
10,000 MBNA Credit Card Master Note Trust,
4.95%, Ser 2002-A1 Class A1 06/15/2009.......... AAA 10,652
10,000 Peco Energy Transition Trust,
6.13%, Ser 1999-A Class A7 03/01/2009........... AAA 11,024
1,500 Standard Credit Card Master Trust,
8.45%, Ser 1995-1 Class B 01/07/2007............ A 1,618
----------
45,475
----------
TRANSPORTATION -- 0.4%
10,000 Connecticut RRB Special Purpose Trust CL&P-1,
6.21%, Ser 2001-1 Class A5 12/30/2011........... AAA 11,191
----------
UTILITIES -- 0.5%
10,000 PSE&G Transition Funding LLC,
6.61%, Ser 2001-1 Class A6 06/15/2015........... AAA 11,312
----------
Total asset backed and commercial mortgage
securities (cost $65,062)....................... $ 67,978
==========
CORPORATE BONDS: INVESTMENT GRADE -- 13.6%
BASIC MATERIALS -- 1.3%
4,000 Alcan, Inc.,
6.45%, 03/15/2011............................... A- 4,431
7,000 Alcoa, Inc.,
7.375%, 08/01/2010.............................. A- 8,161
500 ICI Wilmington, Inc.,
6.95%, 09/15/2004............................... BBB 519
7,000 Rohm & Haas Co.,
7.40%, 07/15/2009............................... BBB+ 8,185
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
BASIC MATERIALS -- (CONTINUED)
$ 4,000 Vulcan Materials Co.,
5.75%, 04/01/2004............................... A+ $ 4,066
7,000 Westvaco Corp.,
7.95%, 02/15/2031............................... BBB 7,992
----------
33,354
----------
CAPITAL GOODS -- 0.7%
5,000 Eaton Corp.,
6.95%, 11/15/2004............................... A- 5,264
2,000 Pitney Bowes, Inc.,
5.50%, 04/15/2004............................... AA 2,037
2,000 Rockwell International Corp.,
6.70%, 01/15/2028............................... A 2,172
7,000 United Technologies Corp.,
7.125%, 11/15/2010.............................. A 8,144
----------
17,617
----------
CONSUMER CYCLICAL -- 0.9%
4,000 Albertson's, Inc.,
6.55%, 08/01/2004............................... BBB 4,121
500 DaimlerChrysler N.A. Holding Corp.,
7.40%, 01/20/2005............................... BBB 529
250 DaimlerChrysler N.A. Holding Corp.,
7.75%, 01/18/2011............................... BBB 276
4,000 Dayton Hudson Corp.,
5.875%, 11/01/2008.............................. A+ 4,378
250 Federated Department Stores, Inc.,
6.30%, 04/01/2009............................... BBB+ 274
5,000 Home Depot, Inc.,
6.50%, 09/15/2004............................... AA 5,219
250 Sysco Corp.,
6.50%, 08/01/2028............................... AA- 269
6,000 Wal-Mart Stores, Inc.,
6.875%, 08/10/2009.............................. AA 6,885
----------
21,951
----------
CONSUMER STAPLES -- 2.3%
4,000 Anheuser-Busch Companies, Inc.,
7.55%, 10/01/2030............................... A+ 4,897
5,000 Archer-Daniels-Midland Co.,
7.00%, 02/01/2031............................... A+ 5,674
2,000 Archer-Daniels-Midland Co.,
8.125%, 06/01/2012.............................. A+ 2,447
7,000 Clorox Co.,
6.125%, 02/01/2011.............................. A+ 7,719
4,000 Coca-Cola Enterprises, Inc.,
5.75%, 11/01/2008............................... A 4,357
2,000 Colgate-Palmolive Co.,
5.58%, 11/16/2008............................... Aa3* 2,181
4,906 ConAgra Foods, Inc.,
6.70%, 08/01/2027............................... BBB+ 5,557
</Table>
The accompanying notes are an integral part of this financial statement.
37
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CONSUMER STAPLES -- (CONTINUED)
$ 2,000 Hershey Foods Corp.,
7.20%, 08/15/2027............................... A+ $ 2,316
500 Pepsi Bottling Group, Inc.,
7.00%, Ser B 03/01/2029......................... A 570
7,000 PepsiAmericas, Inc.,
5.95%, 02/15/2006............................... A 7,539
3,000 PepsiAmericas, Inc.,
6.375%, 05/01/2009.............................. A 3,337
250 Procter & Gamble Co.,
6.875%, 09/15/2009.............................. AA- 288
7,000 Procter & Gamble Co.,
9.36%, Ser A 01/01/2021......................... AA- 9,371
----------
56,253
----------
ENERGY -- 0.5%
7,000 Atlantic Richfield Co.,
5.90%, 04/15/2009............................... AA+ 7,731
500 Conoco, Inc.,
6.95%, 04/15/2029............................... A- 560
4,000 National Fuel Gas Co.,
6.00%, 03/01/2009............................... BBB+ 4,311
----------
12,602
----------
FINANCE -- 4.4%
4,000 ACE INA Holdings, Inc.,
8.30%, 08/15/2006............................... BBB+ 4,543
2,000 Allstate Corp.,
6.75%, 05/15/2018............................... A+ 2,260
250 American General Corp.,
6.625%, 02/15/2029.............................. AAA 269
1,420 AmerUs Group Co.,
6.95%, 06/15/2005............................... BBB+ 1,496
500 Aristar, Inc.,
7.25%, 06/15/2006............................... A- 558
4,000 AXA Financial, Inc.,
7.00%, 04/01/2028............................... A 4,408
3,000 Bank One Corp.,
6.50%, 02/01/2006............................... A 3,276
3,000 Bank One Corp.,
6.875%, 08/01/2006.............................. A 3,331
2,000 Bayerische Landesbank NY,
5.65%, 02/01/2009............................... AAA 2,176
250 Boeing Capital Corp.,
6.10%, 03/01/2011............................... A 266
500 BSCH Issuance Ltd.,
7.625%, 11/03/2009.............................. A- 586
500 Citigroup, Inc.,
6.50%, 01/18/2011............................... AA- 563
2,725 ERAC USA Finance Co.,
7.35%, 06/15/2008(e)............................ BBB+ 3,109
10,000 Financing Corp.,
9.80%, 04/06/2018............................... Aaa* 14,660
545 First Union National Bank,
5.80%, 12/01/2008............................... A 595
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
FINANCE -- (CONTINUED)
$ 500 General Motors Acceptance Corp.,
6.15%, 04/05/2007............................... BBB $ 528
250 Heller Financial, Inc.,
6.375%, 03/15/2006.............................. AAA 273
500 Household Finance Corp.,
6.00%, 05/01/2004............................... A 512
4,000 International Lease Finance Corp.,
5.75%, 02/15/2007............................... AA- 4,318
500 J.P. Morgan Chase & Co.,
6.75%, 02/01/2011............................... A 561
2,000 Jackson National Life Insurance Co.,
8.15%, 03/15/2027(e)............................ A+ 2,289
4,000 John Hancock Financial Services, Inc.,
7.375%, 02/15/2024(e)........................... A+ 4,515
2,755 Key Bank N.A., Inc.,
5.80%, 04/01/2004............................... A 2,804
250 KeyCorp Capital II,
6.875%, 03/17/2029.............................. BBB 260
250 Korea Development Bank,
7.125%, 04/22/2004.............................. A- 256
5,000 Liberty Mutual Insurance,
8.20%, 05/04/2007(e)............................ BBB+ 5,400
1,000 MBIA, Inc.,
7.00%, 12/15/2025............................... AA 1,075
250 National City Corp.,
6.875%, 05/15/2019.............................. A- 284
500 NBD Bancorp, Inc.,
7.125%, 05/15/2007.............................. A- 563
3,100 New England Mutual Life Insurance Co.,
7.875%, 02/15/2024(e)........................... A+ 3,578
7,000 Provident Companies, Inc.,
7.00%, 07/15/2018............................... BBB- 6,983
2,000 Prudential Funding LLC,
6.75%, 09/15/2023(e)............................ A2* 2,066
500 Prudential Insurance Co. of America,
6.375%, 07/23/2006(e)........................... A+ 548
500 ReliaStar Financial Corp.,
8.00%, 10/30/2006............................... A+ 567
250 Republic New York Capital I,
7.75%, 11/15/2026............................... A- 268
500 Salomon Smith Barney Holdings, Inc.,
5.875%, 03/15/2006.............................. AA- 538
4,000 St. Paul Companies, Inc.,
5.75%, 03/15/2007............................... BBB+ 4,270
200 State Street Corp.,
7.65%, 06/15/2010............................... A+ 238
500 Texaco Capital, Inc.,
8.625%, 06/30/2010.............................. AA 627
</Table>
The accompanying notes are an integral part of this financial statement.
38
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 500 Textron Financial Corp.,
7.125%, 12/09/2004.............................. A- $ 526
3,000 Torchmark Corp.,
8.25%, 08/15/2009............................... A+ 3,484
2,000 Toyota Motor Credit Corp.,
5.50%, 12/15/2008............................... AAA 2,178
4,000 UnitedHealth Group, Inc.,
7.50%, 11/15/2005............................... A 4,406
250 Verizon Global Funding Corp.,
7.25%, 12/01/2010............................... A+ 286
250 Verizon Global Funding Corp.,
7.75%, 12/01/2030............................... A+ 289
3,000 Wachovia Corp.,
5.625%, 12/15/2008.............................. A- 3,239
4,000 Wells Fargo Bank N.A.,
6.45%, 02/01/2011............................... AA- 4,471
4,165 XL Capital Europe plc,
6.50%, 01/15/2012............................... A+ 4,542
----------
108,838
----------
HEALTH CARE -- 0.8%
4,000 Becton, Dickinson & Co.,
6.70%, 08/01/2028............................... A+ 4,386
4,000 Bristol-Myers Squibb Co.,
5.75%, 10/01/2011............................... AA- 4,279
4,000 Cardinal Health, Inc.,
6.75%, 02/15/2011............................... A 4,569
3,000 Pharmacia Corp.,
6.60%, 12/01/2028............................... AAA 3,336
4,000 Wyeth,
6.70%, 03/15/2011............................... A 4,495
----------
21,065
----------
SERVICES -- 1.1%
250 Clear Channel Communications, Inc.,
7.65%, 09/15/2010............................... BBB- 291
7,000 Comcast Cable Communications, Inc.,
6.875%, 06/15/2009.............................. BBB 7,828
500 Comcast Cable Communications, Inc.,
8.50%, 05/01/2027............................... BBB 605
7,000 USA Networks, Inc.,
6.75%, 11/15/2005............................... BBB- 7,489
7,000 Walt Disney Co.,
6.375%, 03/01/2012.............................. BBB+ 7,640
3,000 Washington Post Co.,
5.50%, 02/15/2009............................... A+ 3,239
250 Waste Management, Inc.,
7.375%, 08/01/2010.............................. BBB 289
----------
27,381
----------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
TECHNOLOGY -- 0.9%
$ 2,545 AT&T Corp.,
8.50%, 11/15/2031............................... BBB $ 2,886
500 Cox Communications, Inc.,
6.40%, 08/01/2008............................... BBB 547
2,000 Danaher Corp.,
6.00%, 10/15/2008............................... A+ 2,192
250 GTE Corp.,
7.51%, 04/01/2009............................... A+ 286
5,000 Hewlett-Packard Co.,
7.15%, 06/15/2005............................... A- 5,397
250 Koninklijke KPN N.V.,
8.375%, 10/01/2030.............................. BBB+ 312
500 Lockheed Martin Corp.,
7.65%, 05/01/2016............................... BBB 602
1,000 New York Telephone Co.,
6.00%, 04/15/2008............................... A+ 1,088
400 Raytheon Co.,
7.20%, 08/15/2027............................... BBB- 428
7,055 Sprint Capital Corp.,
6.125%, 11/15/2008.............................. BBB- 7,431
250 Sprint Capital Corp.,
6.875%, 11/15/2028.............................. BBB- 235
250 Sprint Capital Corp.,
7.625%, 01/30/2011.............................. BBB- 275
250 Telecomunicaciones de Puerto Rico, Inc.,
6.65%, 05/15/2006............................... BBB+ 271
500 Telefonica Europe B.V.,
7.35%, 09/15/2005............................... A 545
500 Time Warner Companies, Inc.,
6.875%, 06/15/2018.............................. BBB+ 538
500 Vodafone Group plc,
7.875%, Ser B 02/15/2030........................ A 601
----------
23,634
----------
TRANSPORTATION -- 0.3%
6,000 Burlington Northern Sante Fe Corp.,
7.875%, 04/15/2007.............................. BBB+ 6,967
750 CSX Corp.,
7.90%, 05/01/2017............................... BBB 908
250 Norfolk Southern Corp.,
6.75%, 02/15/2011............................... BBB 281
----------
8,156
----------
UTILITIES -- 0.4%
4,000 Alabama Power Co.,
7.125%, Ser K 08/15/2004........................ A 4,180
500 Alabama Power Co.,
7.125%, Ser L 10/01/2007........................ A 569
255 Chilquinta Energia Finance Co.,
6.62%, 04/01/2011(e)............................ AAA 279
2,000 Kansas City Power & Light Co.,
7.125%, 12/15/2005.............................. BBB 2,191
</Table>
The accompanying notes are an integral part of this financial statement.
39
THE HARTFORD ADVISERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- ----------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 189 Niagara Mohawk Power Corp.,
7.625%, Ser F 10/01/2005........................ A- $ 207
1,150 Northern Border Pipeline Co.,
7.75%, Ser A 09/01/2009......................... A- 1,360
250 TransCanada Pipelines Ltd.,
6.49%, 01/21/2009............................... A- 273
----------
9,059
----------
Total corporate bonds:
investment grade (cost $309,171)................ $ 339,910
==========
CORPORATE BONDS: NON-INVESTMENT GRADE -- 0.0%
SERVICES -- 0.0%
500 Park Place Entertainment Corp.,
8.50%, 11/15/2006............................... BB+ $ 551
----------
Total corporate bonds:
non-investment grade (cost $498)................ $ 551
==========
U.S. GOVERNMENT SECURITIES -- 10.4%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- MORTGAGE
BACKED SECURITIES -- 0.0%
252 6.30% 2008........................................ $ 276
19 9.00% 2016 -- 2021................................ 21
----------
297
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- MORTGAGE BACKED SECURITIES -- 1.6%
13,172 6.00% 2023 -- 2031................................ 13,609
10,209 6.50% 2026 -- 2029................................ 10,702
12,398 7.00% 2023 -- 2032................................ 13,147
2,101 8.00% 2029 -- 2031................................ 2,267
220 9.00% 2023........................................ 243
----------
39,968
----------
U.S. TREASURY SECURITIES -- 8.8%
120,000 2.00% 2005........................................ 120,544
20,000 2.125% 2004....................................... 20,172
70,000 6.25% 2023........................................ 79,002
----------
219,718
----------
Total U.S. government securities (cost
$257,686)....................................... $ 259,983
==========
Total long-term investments
(cost $2,289,218)............................... $2,397,571
==========
MARKET
SHARES VALUE(C)
- --------- ----------
SHORT-TERM INVESTMENTS -- 7.2%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 3.9%
48,553 Evergreen Institutional Money Market Fund......... $ 48,550
45,886 Evergreen Prime Cash Management Money Market...... 48,575
----------
97,125
----------
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 3.3%
$ 11,783 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 11,783
31,008 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 31,008
38,480 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 38,480
----------
81,271
----------
Total short-term investments
(cost $178,396)................................. $ 178,396
==========
Total investments in securities (cost
$2,467,614)(b).................................. $2,575,967
==========
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $2,487,475 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation....................... $ 211,991
Unrealized depreciation....................... (123,499)
---------
Net unrealized appreciation................... $ 88,492
=========
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 2.08% of total net assets as of October 31, 2003.
(e) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors." Pursuant to guidelines adopted by the Board of
Directors, these issues are deemed to be liquid. The aggregate value of
these securities at October 31, 2003, was $21,784, which represents 0.87%
of total net assets.
* Moody's Rating
The accompanying notes are an integral part of this financial statement.
40
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$2,467,614)@ ................................... $2,575,967
Cash.............................................. 5
Receivables:
Investment securities sold...................... 3,592
Fund shares sold................................ 8,603
Dividends and interest.......................... 9,567
Other assets...................................... 150
----------
Total assets...................................... 2,597,879
----------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)........................................... 97,125
Fund shares redeemed............................ 4,049
Payable for investment advisory and management
fees (Note 3)................................. 1,345
Payable for distribution fees (Note 3).......... 198
Accrued expenses.................................. 891
----------
Total liabilities................................. 103,603
----------
Net assets........................................ $2,494,276
==========
@ Market value of securities on loan $91,360.
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 760,000 shares authorized;
176,188 shares outstanding...................... $2,761,928
Accumulated undistributed net investment income... 1,671
Accumulated net realized loss on investments...... (377,676)
Unrealized appreciation of investments in
securities...................................... 108,353
----------
Net assets........................................ $2,494,276
==========
</Table>
<Table>
Class A
Net asset value per share ($1,470,569 / 103,609 shares
outstanding)........................................ $14.19
------
Maximum offering price per share ($14.19 / 94.5%)... $15.02
======
Class B
Net asset value per share ($593,179 / 42,232 shares
outstanding)...................................... $14.05
======
Class C
Net asset value per share ($421,814 / 29,741 shares
outstanding)...................................... $14.18
------
Maximum offering price per share ($14.18 / 99.0%)... $14.32
======
Class Y
Net asset value per share ($8,714 / 606 shares
outstanding)...................................... $14.37
======
</Table>
The accompanying notes are an integral part of this financial statement.
41
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- 87.5%
BASIC MATERIALS -- 12.0%
1,213 3M Co. ........................................... $ 95,653
400 Alcoa, Inc. ...................................... 12,628
259 AngloGold Ltd. ADR................................ 10,008
990 Companhia Vale do Rio Doce ADR.................... 45,271
1,629 CONSOL Energy 1 Pipe Private Placement(f)......... 31,809
1,077 Engelhard Corp. (with rights)..................... 30,772
1,069 Falconbridge Ltd. ................................ 20,845
1,462 Freeport-McMoRan Copper & Gold, Inc. Class B (with
rights)......................................... 56,633
1,416 Kimberly-Clark Corp. ............................. 74,774
524 Mining and Metallurgical Co. Norilsk Nickel ADR... 26,981
652 Peabody Energy Corp. ............................. 21,724
2,500 Sappi Ltd. ADR.................................... 32,000
4,095 Smurfit-Stone Container Corp. (with rights)(a).... 63,476
1,750 Tek Cominco Ltd. Class B.......................... 22,834
----------
545,408
----------
CAPITAL GOODS -- 5.1%
1,095 Deere & Co. (with rights)......................... 66,373
1,153 Honeywell International, Inc. .................... 35,299
1,071 Pall Corp. (with rights).......................... 25,057
4,959 Tyco International Ltd. (with rights)............. 103,546
----------
230,275
----------
CONSUMER CYCLICAL -- 5.6%
38 Cheesecake Factory, Inc. (with rights)(a)......... 1,506
807 Foster Wheeler Ltd.(a)............................ 936
3,833 Gap, Inc. ........................................ 73,128
889 Neiman Marcus Group, Inc. Class A(a).............. 42,281
2,094 Penney (J.C.) Co., Inc. .......................... 49,533
2,978 Toyota Motor Corp. ............................... 84,779
----------
252,163
----------
CONSUMER STAPLES -- 1.2%
2,001 Bunge Ltd. ....................................... 54,227
----------
ENERGY -- 8.2%
893 Burlington Resources, Inc. (with rights).......... 43,436
1,609 China Petroleum & Chemical Corp. ADR.............. 52,753
1,700 Halliburton Co. (with rights)..................... 40,596
2,107 Rio Tinto plc..................................... 51,105
6,200 Sasol Ltd. ADR.................................... 82,150
723 Valero Energy Corp. .............................. 30,864
2,906 XTO Energy, Inc. (with rights).................... 68,787
----------
369,691
----------
FINANCE AND INSURANCE -- 17.6%
3,100 ACE Ltd. ADR (with rights)........................ 111,600
268 Ambac Financial Group, Inc. ...................... 18,979
181 American International Group, Inc. ............... 10,995
2,131 Bank One Corp. ................................... 90,440
2,771 Citigroup, Inc. .................................. 131,322
701 Countrywide Financial Corp. ...................... 73,700
1,150 FleetBoston Financial Corp. (with rights)......... 46,449
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
FINANCE AND INSURANCE -- (CONTINUED)
1,284 Freddie Mac....................................... $ 72,054
600 Golden West Financial Corp. ...................... 60,258
2,398 ICICI Bank Ltd.(a)(f)............................. 13,071
934 iStar Financial, Inc. ............................ 35,537
2,360 Medco Health Solutions, Inc.(a)................... 78,345
1,206 St. Paul Companies, Inc. ......................... 45,992
125 UBS AG............................................ 7,676
----------
796,418
----------
HEALTH CARE -- 8.5%
482 Biovail Corp.(a).................................. 11,602
54 Bright Horizons Family Solutions, Inc.(a)......... 2,315
456 Cardinal Health, Inc. ............................ 27,065
1,094 Forest Laboratories, Inc. (with rights)(a)........ 54,726
1,596 Guidant Corp. .................................... 81,407
1,664 HCA, Inc. ........................................ 63,633
1,471 IVAX Corp.(a)..................................... 28,339
1,000 King Pharmaceuticals, Inc.(a)..................... 13,400
2,387 McKesson Corp. ................................... 72,245
800 Schering-Plough Corp. (with rights)............... 12,216
500 Watson Pharmaceuticals, Inc.(a)................... 19,635
----------
386,583
----------
SERVICES -- 5.8%
1,751 Comcast Corp. Special Class A(a).................. 57,108
929 Computer Sciences Corp.(a)........................ 36,795
2,175 InterActive Corp.(a).............................. 79,833
400 Manpower, Inc. ................................... 18,560
2,386 Waste Management, Inc. ........................... 61,835
384 Wynn Resorts Ltd.(a).............................. 7,737
----------
261,868
----------
TECHNOLOGY -- 21.5%
1,547 America Movil S.A. de C.V. Ser L ADR.............. 36,811
2,000 Cisco Systems, Inc. (with rights)(a).............. 41,960
4,850 Corning, Inc.(a).................................. 53,253
425 Emerson Electric Co. (with rights)................ 24,119
8,240 Hon Hai Precision Industry Co. Ltd. .............. 36,866
840 International Business Machines Corp. ............ 75,190
1,500 Liberty Media Corp. Class A(a).................... 15,135
2,600 Motorola, Inc. (with rights)...................... 35,178
2,203 MTN Group Ltd.(a)................................. 7,891
8,031 Nextel Communications, Inc. Class A(a)............ 194,355
10,273 Nortel Networks Corp.(a).......................... 45,714
692 QUALCOMM, Inc. ................................... 32,880
1,652 Sabre Holdings Corp. ............................. 36,200
314 Samsung Electronics Co. Ltd. ..................... 124,507
200 Sony Corp. ADR.................................... 7,040
24,505 Taiwan Semiconductor Manufacturing Co. Ltd.(a).... 48,325
4,512 Telenor ASA(f).................................... 24,565
4,498 Time Warner, Inc.(a).............................. 68,776
2,589 VeriSign, Inc. (with rights)(a)................... 41,091
537 Yahoo!, Inc. (with rights)(a)..................... 23,454
----------
973,310
----------
</Table>
The accompanying notes are an integral part of this financial statement.
42
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- 0.7%
1,061 CSX Corp. (with rights)........................... $ 33,767
----------
UTILITIES -- 1.3%
400 FPL Group, Inc. (with rights)..................... 25,496
1,395 TXU Corp. (with rights)........................... 31,825
----------
57,321
----------
Total common stock (cost $3,258,552).............. $3,961,031
==========
PREFERRED STOCKS -- 1.2%
ENERGY -- 1.2%
2,415 Petroleo Brasileiro S.A. ADR...................... $ 52,539
----------
TECHNOLOGY -- 0.0%
1,205 SensAble Technologies, Inc. Class C Private
Placement(e)(g)................................. 1,205
----------
Total preferred stocks (cost $43,676)............. $ 53,744
==========
Total long-term investments
(cost $3,302,228)............................... $4,014,775
==========
SHORT-TERM INVESTMENTS -- 18.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 5.7%
150,000 Wells Fargo Cash Investment Fund.................. $ 150,000
50,000 Dreyfus Cash Management No. 2..................... 50,000
----------
200,000
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
$ 56,039 Bear Stearns & Co. Repo, 1.07%, 11/3/2003......... 56,039
----------
256,039
----------
FINANCE -- 12.4%
81,443 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 81,443
214,326 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 214,326
265,981 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 265,981
----------
561,750
----------
Total short-term investments (cost $817,789)...... $ 817,789
==========
Total investments in securities (cost
$4,120,017)(b).................................. $4,832,564
==========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $4,122,387 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation........................ $779,611
Unrealized depreciation........................ (69,521)
--------
Net unrealized appreciation.................... $710,090
========
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 18.67% of total net assets as of October 31, 2003.
(e) Restricted securities held (excluding 144A). These investments
have been identified by portfolio management as illiquid securities:
<Table>
<Caption>
PERIOD
ACQUIRED SHARES SECURITY COST BASIS
-------- ------ -------- ----------
2000 1,205 SensAble Technologies, Inc. 4,000
Class C Private Placement
</Table>
The aggregate value of this security at October 31, 20003, is $1,205
which represents 0.03% of net assets.
(f) Securities sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are determined to be liquid. The aggregate value of
these securities at October 31, 2003, was $69,445, which represents 1.53%
of total net assets.
(g) Security valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these securities
as of October 31, 2003, was $1,205, which represents 0.03% of total net
assets.
The accompanying notes are an integral part of this financial statement.
43
THE HARTFORD CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- -------------------------------------------------- ------------ -------- --------- --------------
Canadian Dollar (Buy) $8,799 $8,842 11/3/2003 $(43)
Canadian Dollar (Buy) 2,004 2,010 11/4/2003 (6)
Canadian Dollar (Buy) 2,283 2,282 11/5/2003 1
South Africa Rand (Buy) 5,060 5,072 11/3/2003 (12)
South Africa Rand (Buy) 518 515 11/4/2003 3
South Africa Rand (Buy) 361 361 11/5/2003 @@
South Africa Rand (Buy) 351 351 11/6/2003 @@
South Africa Rand (Buy) 369 370 11/7/2003 (1)
----
$(58)
====
</Table>
@@Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$3,558,267)@ ................................... $4,270,814
Repurchase agreements, at value; (cost
$561,750)....................................... 561,750
Foreign currency on deposit with custodian (cost
$2,315)......................................... 2,444
Unrealized appreciation in forward foreign
currency contracts.............................. 4
Receivables:
Investment securities sold...................... 46,899
Fund shares sold................................ 27,491
Dividends and interest.......................... 3,344
Other assets...................................... 258
----------
Total assets...................................... 4,913,004
----------
LIABILITIES
Unrealized depreciation on forward foreign
currency contracts.............................. 62
Payables:
Payable upon return of securities loaned (Note
2d)........................................... 256,039
Investment securities purchased................. 119,874
Fund shares redeemed............................ 4,991
Payable for investment advisory and management
fees (Note 3)................................. 2,500
Payable for distribution fees (Note 3).......... 382
Accrued Expenses.................................. 1,471
----------
Total liabilities................................. 385,319
----------
Net assets........................................ $4,527,685
==========
@ Market value of securities on loan $241,463
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 620,000 shares authorized;
175,619 shares outstanding...................... $4,608,933
Accumulated undistributed net investment income... 58
Accumulated net realized loss on investments and
foreign currency transactions................... (793,884)
Unrealized appreciation of investments in
securities and the translations of assets and
liabilities denominated in foreign currency..... 712,578
----------
Net assets........................................ $4,527,685
==========
Class A
Net asset value per share ($2,357,913 / 88,970
shares outstanding)............................... $26.50
------
Maximum offering price per share($26.50 / 94.5%).... $28.04
======
Class B
Net asset value per share ($1,140,154 / 45,656
shares outstanding)............................... $24.97
======
Class C
Net asset value per share ($981,246 / 39,243 shares
outstanding)...................................... $25.00
------
Maximum offering price per share($25.00 / 99.0%).... $25.25
======
Class Y
Net asset value per share ($48,372 / 1,750 shares
outstanding)...................................... $27.64
======
</Table>
The accompanying notes are an integral part of this financial statement.
44
THE HARTFORD DISCIPLINED EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
COMMON STOCK -- 99.2%
BASIC MATERIALS -- 3.6%
42 Fortune Brands, Inc. (with rights)................ $ 2,762
177 Gillette Co. (with rights)........................ 5,637
55 International Paper Co. .......................... 2,164
32 Kimberly-Clark Corp. ............................. 1,711
---------
12,274
---------
CAPITAL GOODS -- 4.9%
48 General Dynamics Corp. ........................... 4,034
53 Graco, Inc. (with rights)......................... 2,019
37 Pitney Bowes, Inc. (with rights).................. 1,537
81 Tyco International Ltd. (with rights)............. 1,681
87 United Technologies Corp. ........................ 7,377
---------
16,648
---------
CONSUMER CYCLICAL -- 7.8%
60 Avery Dennison Corp. (with rights)................ 3,134
128 Dollar General Corp. (with rights)................ 2,869
88 Federated Department Stores, Inc. ................ 4,204
165 Gap, Inc. ........................................ 3,144
31 General Motors Corp. ............................. 1,323
21 Johnson Controls, Inc. ........................... 2,204
64 Lowe's Companies, Inc. (with rights).............. 3,777
34 NIKE, Inc. Class B................................ 2,192
46 Supervalu, Inc. .................................. 1,158
40 Wal-Mart Stores, Inc. ............................ 2,352
---------
26,357
---------
CONSUMER STAPLES -- 8.6%
158 Altria Group, Inc. ............................... 7,361
185 Coca-Cola Co. .................................... 8,566
77 Procter & Gamble Co. ............................. 7,578
96 Weyerhaeuser Co. ................................. 5,806
---------
29,311
---------
ENERGY -- 4.4%
21 Amerada Hess Corp. ............................... 1,104
24 Chevron Texaco Corp. (with rights)................ 1,761
67 ConocoPhillips (with rights)...................... 3,852
142 Exxon Mobil Corp. ................................ 5,202
97 Unocal Corp. (with rights)........................ 3,070
---------
14,989
---------
FINANCE AND INSURANCE -- 23.9%
33 Ambac Financial Group, Inc. ...................... 2,334
25 Anthem, Inc.(a)................................... 1,704
72 Bank of America Corp. ............................ 5,445
135 Bank One Corp. ................................... 5,735
32 Capital One Financial Corp. ...................... 1,946
312 Citigroup, Inc. .................................. 14,791
72 Countrywide Financial Corp. ...................... 7,527
94 Fannie Mae........................................ 6,739
44 Franklin Resources, Inc. ......................... 2,105
51 Freddie Mac....................................... 2,840
35 Goldman Sachs Group, Inc. ........................ 3,296
40 KeyCorp........................................... 1,136
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
FINANCE AND INSURANCE -- (CONTINUED)
64 MBIA, Inc. ....................................... $ 3,809
62 Medco Health Solutions, Inc.(a)................... 2,072
108 Merrill Lynch & Co., Inc. ........................ 6,370
102 St. Paul Companies, Inc. ......................... 3,882
46 UnionBanCal Corp. ................................ 2,513
32 Wellpoint Health Networks, Inc.(a)................ 2,827
53 XL Capital Ltd. Class A (with rights)............. 3,697
---------
80,768
---------
HEALTH CARE -- 11.7%
107 Abbott Laboratories (with rights)................. 4,552
65 Becton, Dickinson & Co. (with rights)............. 2,376
29 Cephalon, Inc.(a)................................. 1,343
76 CVS Corp. ........................................ 2,656
90 Genzyme Corp.(a).................................. 4,131
109 Guidant Corp. .................................... 5,580
69 Lilly (Eli) & Co. (with rights)................... 4,590
99 McKesson Corp. ................................... 3,006
35 Merck & Co., Inc. ................................ 1,558
192 Pfizer, Inc. (with rights)........................ 6,063
250 Schering-Plough Corp. (with rights)............... 3,821
---------
39,676
---------
SERVICES -- 5.7%
105 Cendant Corp.(a).................................. 2,149
120 Comcast Corp. Class A(a).......................... 4,078
68 Comcast Corp. Special Class A(a).................. 2,228
38 FedEx Corp. ...................................... 2,879
41 Gannett Co., Inc. (with rights)................... 3,432
40 Omnicom Group, Inc. .............................. 3,152
52 Waste Management, Inc. ........................... 1,356
---------
19,274
---------
TECHNOLOGY -- 25.2%
42 Adobe Systems, Inc. (with rights)................. 1,828
159 AT&T Corp. ....................................... 2,949
462 Cisco Systems, Inc. (with rights)(a).............. 9,695
147 Citizens Communications Co. (with rights)(a)...... 1,834
125 Dell, Inc. (with rights)(a)....................... 4,522
181 First Data Corp. ................................. 6,469
184 General Electric Co. ............................. 5,335
139 Intel Corp. ...................................... 4,587
84 International Business Machines Corp. ............ 7,472
547 Microsoft Corp. .................................. 14,314
281 Motorola, Inc. (with rights)...................... 3,803
77 National Semiconductor Corp.(a)................... 3,137
185 Nextel Communications, Inc. Class A(a)............ 4,470
323 Qwest Communications International, Inc.(a)....... 1,140
64 SBC Communications, Inc. ......................... 1,528
231 Texas Instruments, Inc. (with rights)............. 6,683
352 Time Warner, Inc.(a).............................. 5,379
---------
85,145
---------
TRANSPORTATION -- 0.8%
84 CSX Corp. (with rights)........................... 2,686
---------
</Table>
The accompanying notes are an integral part of this financial statement.
45
THE HARTFORD DISCIPLINED EQUITY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
COMMON STOCK -- (CONTINUED)
UTILITIES -- 2.6%
30 Ameren Corp. ..................................... $ 1,330
96 Exelon Corp. ..................................... 6,073
59 TXU Corp. (with rights)........................... 1,342
---------
8,745
---------
Total common stock
(cost $308,366)................................. $ 335,873
=========
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 0.2%
FINANCE -- 0.2%
$ 82 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 82
216 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 216
267 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 267
---------
Total short-term investments (cost $565).......... $ 565
=========
Total investments in securities (cost
$308,931)(b).................................... $ 336,438
=========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes was $311,882 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 38,027
Unrealized depreciation........................ (13,471)
--------
Net unrealized appreciation.................... $ 24,556
========
</Table>
(c) See Note 2b of acompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$308,931)........................................ $ 336,438
Cash............................................... @@
Receivables:
Investment securities sold....................... 2,039
Fund shares sold................................. 1,066
Dividends and interest........................... 538
Other assets....................................... 55
---------
Total assets....................................... 340,136
---------
LIABILITIES
Payables:
Investment securities purchased.................. 767
Fund shares redeemed............................. 474
Payable for investment advisory and management
fees (Note 3).................................. 227
Payable for distribution fees (Note 3)........... 23
Accrued Expenses................................... 131
---------
Total liabilities.................................. 1,622
---------
Net assets......................................... $ 338,514
=========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 33,939
shares outstanding............................... $ 443,341
Accumulated undistributed net investment income.... 154
Accumulated net realized loss on investments....... (132,488)
Unrealized appreciation of investments in
securities....................................... 27,507
---------
Net assets......................................... $ 338,514
=========
</Table>
<Table>
Class A
Net asset value per share ($243,842 / 24,187 shares
outstanding)...................................... $10.08
------
Maximum offering price per share($10.08 / 94.5%).... $10.67
======
Class B
Net asset value per share ($47,888 / 4,937 shares
outstanding)...................................... $ 9.70
======
Class C
Net asset value per share ($46,162 / 4,755 shares
outstanding)...................................... $ 9.71
------
Maximum offering price per share ($9.71 / 99.0%).... $ 9.81
======
Class Y
Net asset value per share ($622 / 60 shares
outstanding)...................................... $10.36
======
</Table>
@@Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
46
THE HARTFORD DIVIDEND AND GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- 93.9%
BASIC MATERIALS -- 10.9%
485 Abitibi-Consolidated, Inc. ....................... $ 3,252
331 Alcan, Inc. ...................................... 13,201
983 Alcoa, Inc. ...................................... 31,033
193 Bowater, Inc. .................................... 7,860
338 Dow Chemical Co. ................................. 12,720
782 DuPont (E.I.) de Nemours & Co. ................... 31,579
179 Fortune Brands, Inc. (with rights)................ 11,675
509 Gillette Co. (with rights)........................ 16,224
271 International Paper Co. .......................... 10,644
419 Kimberly-Clark Corp. ............................. 22,149
606 Rohm & Haas Co. (with rights)..................... 23,816
284 Temple-Inland, Inc. (with rights)................. 15,317
----------
199,470
----------
CAPITAL GOODS -- 5.5%
286 Boeing Co. ....................................... 11,016
264 General Dynamics Corp. ........................... 22,088
421 Honeywell International, Inc. .................... 12,875
428 Parker-Hannifin Corp. (with rights)............... 21,820
514 Pitney Bowes, Inc. (with rights).................. 21,134
1,109 Xerox Corp. (with rights)(a)...................... 11,642
----------
100,575
----------
CONSUMER CYCLICAL -- 5.7%
346 Avery Dennison Corp. (with rights)................ 18,208
299 Caterpillar, Inc. (with rights)................... 21,911
287 General Motors Corp. ............................. 12,259
194 Grainger (W.W.), Inc. ............................ 8,886
356 Mattel, Inc. ..................................... 6,888
860 McDonald's Corp. ................................. 21,511
179 Target Corp. (with rights)........................ 7,110
325 TJX Companies, Inc. .............................. 6,818
----------
103,591
----------
CONSUMER STAPLES -- 7.2%
455 Altria Group, Inc. ............................... 21,134
689 EnCana Corp. ..................................... 23,666
310 General Mills, Inc. .............................. 13,899
446 Kraft Foods, Inc. Class A......................... 12,976
363 PepsiCo, Inc. .................................... 17,335
783 Sara Lee Corp. (with rights)...................... 15,605
452 Weyerhaeuser Co. ................................. 27,236
----------
131,851
----------
ENERGY -- 9.4%
694 BP plc ADR........................................ 29,412
336 Chevron Texaco Corp. (with rights)................ 24,957
96 ConocoPhillips (with rights)...................... 5,509
1,171 Exxon Mobil Corp. ................................ 42,851
319 Progress Energy, Inc. ............................ 13,740
440 Royal Dutch Petroleum Co. NY Shares............... 19,509
298 Schlumberger Ltd. ................................ 14,011
286 Total S.A. ADR.................................... 22,305
----------
172,294
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
FINANCE AND INSURANCE -- 17.9%
267 ACE Ltd. ADR (with rights)........................ $ 9,608
408 American International Group, Inc. ............... 24,819
664 Bank One Corp. ................................... 28,195
1,142 Citigroup, Inc. .................................. 54,136
248 Comerica, Inc. (with rights)...................... 12,746
377 Franklin Resources, Inc. ......................... 17,868
389 Freddie Mac....................................... 21,857
190 HSBC Holdings plc ADR............................. 14,261
330 MBIA, Inc. ....................................... 19,698
321 Merrill Lynch & Co., Inc. ........................ 18,991
281 Morgan Stanley (with rights)...................... 15,440
336 St. Paul Companies, Inc. ......................... 12,815
619 Synovus Financial Corp. (with rights)............. 17,090
351 U.S. Bancorp (with rights)........................ 9,566
560 Wachovia Corp. (with rights)...................... 25,683
357 XL Capital Ltd. Class A (with rights)............. 24,819
----------
327,592
----------
HEALTH CARE -- 9.6%
653 Abbott Laboratories (with rights)................. 27,814
321 AstraZeneca plc ADR............................... 15,296
242 Aventis S.A. ADR.................................. 12,806
594 Baxter International, Inc. (with rights).......... 15,781
215 Becton, Dickinson & Co. (with rights)............. 7,860
245 Cardinal Health, Inc. ............................ 14,526
230 Guidant Corp. .................................... 11,722
291 Lilly (Eli) & Co. (with rights)................... 19,373
272 McKesson Corp. ................................... 8,242
641 Pfizer, Inc. (with rights)........................ 20,245
1,464 Schering-Plough Corp. (with rights)............... 22,355
----------
176,020
----------
SERVICES -- 6.1%
455 Comcast Corp. Class A(a).......................... 15,425
283 Comcast Corp. Special Class A(a).................. 9,228
323 Computer Sciences Corp.(a)........................ 12,781
204 FedEx Corp. ...................................... 15,448
216 Gannett Co., Inc. (with rights)................... 18,134
127 Harrah's Entertainment, Inc. (with rights)........ 5,507
148 Omnicom Group, Inc. .............................. 11,826
856 Waste Management, Inc. ........................... 22,193
----------
110,542
----------
TECHNOLOGY -- 13.6%
534 Apple Computer, Inc.(a)........................... 12,221
752 AT&T Corp. ....................................... 13,977
911 BellSouth Corp. (with rights)..................... 23,963
271 Emerson Electric Co. (with rights)................ 15,379
225 General Electric Co. ............................. 6,521
841 Hewlett-Packard Co. .............................. 18,767
438 International Business Machines Corp. ............ 39,219
666 Microsoft Corp. .................................. 17,403
1,029 Motorola, Inc. (with rights)...................... 13,926
261 Sony Corp. ADR.................................... 9,198
678 Texas Instruments, Inc. (with rights)............. 19,611
</Table>
The accompanying notes are an integral part of this financial statement.
47
THE HARTFORD DIVIDEND AND GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
1,088 Time Warner, Inc.(a).............................. $ 16,634
1,210 Verizon Communications, Inc. ..................... 40,651
----------
247,470
----------
TRANSPORTATION -- 3.8%
366 Canadian Pacific Railway Ltd. ADR................. 10,242
750 CSX Corp. (with rights)........................... 23,859
457 Delta Air Lines, Inc. (with rights)(a)............ 5,947
425 Union Pacific Corp. .............................. 26,611
104 USF Corp. ........................................ 3,326
----------
69,985
----------
UTILITIES -- 4.2%
412 Exelon Corp. ..................................... 26,150
144 FirstEnergy Corp. (with rights)................... 4,952
294 FPL Group, Inc. (with rights)..................... 18,740
439 PG&E Corp.(a)..................................... 10,733
422 Pinnacle West Capital Corp. (with rights)......... 15,421
----------
75,996
----------
Total common stock (cost $1,620,238).............. $1,715,386
==========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 6.7%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 1.2%
20,828 Boston Global Investment Trust.................... $ 20,828
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 5.5%
$ 14,649 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 14,649
38,550 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 38,550
47,841 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 47,841
----------
101,040
----------
Total short-term investments
(cost $121,868)................................. $ 121,868
==========
Total investments in securities
(cost $1,742,106)(b)............................ $1,837,254
==========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $1,752,019 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $162,953
Unrealized depreciation........................ (77,718)
--------
Net unrealized appreciation.................... $ 85,235
========
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 9.48% of total net assets as of October 31, 2003.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$1,742,106)@ ................................... $1,837,254
Cash.............................................. 1
Receivables:
Investment securities sold...................... 3,180
Fund shares sold................................ 14,981
Dividends and interest.......................... 2,493
Other assets...................................... 111
----------
Total assets...................................... 1,858,020
----------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)........................................... 20,828
Investment securities purchased................. 6,162
Fund shares redeemed............................ 2,063
Payable for investment advisory and management
fees (Note 3)................................. 991
Payable for distribution fees (Note 3).......... 118
Accrued Expenses.................................. 565
----------
Total liabilities................................. 30,727
----------
Net assets........................................ $1,827,293
==========
</Table>
@ Market value of securities on loan $20,443.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 500,000 shares authorized;
115,027 shares outstanding...................... $1,793,767
Accumulated net realized loss on investments...... (61,622)
Unrealized appreciation of investments in
securities...................................... 95,148
----------
Net assets........................................ $1,827,293
==========
</Table>
<Table>
Class A
Net asset value per share ($1,296,982 / 81,384
shares outstanding)............................... $15.94
------
Maximum offering price per share ($15.94 / 94.5%)... $16.87
======
Class B
Net asset value per share ($257,856 / 16,373 shares
outstanding)...................................... $15.75
======
Class C
Net asset value per share ($230,348 / 14,657 shares
outstanding)...................................... $15.72
------
Maximum offering price per share ($15.72 / 99.0%)... $15.88
======
Class Y
Net asset value per share ($42,107 / 2,613 shares
outstanding)...................................... $16.11
======
</Table>
The accompanying notes are an integral part of this financial statement.
48
THE HARTFORD EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(B)
- --------- --------
COMMON STOCK -- 86.3%
BASIC MATERIALS -- 7.5%
29 Alcoa, Inc. ...................................... $ 919
11 Dow Chemical Co. ................................. 404
16 DuPont (E.I.) de Nemours & Co. ................... 665
7 Kimberly-Clark Corp. ............................. 363
7 PPG Industries, Inc. ............................. 396
-------
2,747
-------
CAPITAL GOODS -- 1.6%
19 Rockwell Automation, Inc. ........................ 597
-------
CONSUMER CYCLICAL -- 7.2%
16 Caterpillar, Inc. (with rights)................... 1,185
19 General Motors Corp. ............................. 819
24 Masco Corp. (with rights)......................... 650
-------
2,654
-------
CONSUMER STAPLES -- 6.5%
10 Altria Group, Inc. ............................... 465
8 General Mills, Inc. .............................. 353
7 Heinz (H.J.) Co. ................................. 243
14 Kellogg Co. ...................................... 456
14 Weyerhaeuser Co. ................................. 872
-------
2,389
-------
ENERGY -- 8.4%
10 BP plc ADR........................................ 424
11 Chevron Texaco Corp. (with rights)................ 833
7 ConocoPhillips (with rights)...................... 393
39 Exxon Mobil Corp. ................................ 1,443
-------
3,093
-------
FINANCE AND INSURANCE -- 33.0%
6 ACE Ltd. ADR (with rights)........................ 216
16 Bank of America Corp. ............................ 1,225
8 Chubb Corp. (with rights)......................... 526
31 Citigroup, Inc. .................................. 1,489
4 Fannie Mae........................................ 318
10 Goldman Sachs Group, Inc. ........................ 940
9 KeyCorp........................................... 268
10 Marsh & McLennan Companies, Inc. (with rights).... 428
14 Merrill Lynch & Co., Inc. ........................ 800
13 Morgan Stanley (with rights)...................... 720
21 National City Corp. .............................. 702
15 PNC Financial Services Group, Inc. (with
rights)......................................... 793
11 St. Paul Companies, Inc. ......................... 406
7 SunTrust Banks, Inc. ............................. 474
12 U.S. Bancorp (with rights)........................ 325
18 Wachovia Corp. (with rights)...................... 811
15 Washington Mutual, Inc. (with rights)............. 649
7 Wells Fargo & Co. (with rights)................... 395
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(B)
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
10 XL Capital Ltd. Class A (with rights)............. $ 680
-------
12,165
-------
HEALTH CARE -- 4.1%
14 Baxter International, Inc. (with rights).......... 366
7 Merck & Co., Inc. ................................ 304
19 Pfizer, Inc. (with rights)........................ 608
6 Wyeth (with rights)............................... 245
-------
1,523
-------
SERVICES -- 1.1%
5 Gannett Co., Inc. (with rights)................... 397
-------
TECHNOLOGY -- 9.8%
16 AT&T Corp. ....................................... 306
8 BellSouth Corp. (with rights)..................... 210
19 Emerson Electric Co. (with rights)................ 1,092
36 Hewlett-Packard Co. .............................. 799
31 Nokia Oyj ADR..................................... 530
9 SBC Communications, Inc. ......................... 205
14 Verizon Communications, Inc. ..................... 462
-------
3,604
-------
TRANSPORTATION -- 2.5%
24 Shell Transport & Trading Co. plc ADR............. 902
-------
UTILITIES -- 4.6%
10 Dominion Resources, Inc. ......................... 617
7 Exelon Corp. ..................................... 457
7 FPL Group, Inc. (with rights)..................... 423
6 Scana Corp. ...................................... 212
-------
1,709
-------
Total common stock
(cost $31,134).................................. $31,780
=======
<Caption>
PRINCIPAL
AMOUNT
- ---------
SHORT-TERM INVESTMENTS -- 5.0%
FINANCE -- 5.0%
$ 265 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 265
696 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 696
864 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 864
-------
$ 1,825
-------
Total short-term investments
(cost $1,825)................................... $ 1,825
=======
Total investments in securities
(cost $32,959)(a)............................... $33,605
=======
</Table>
The accompanying notes are an integral part of this financial statement.
49
THE HARTFORD EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $32,959 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $1,059
Unrealized depreciation.......................... (413)
------
Net unrealized appreciation...................... $ 646
======
</Table>
(b) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 5.04% of total net assets as of October 31, 2003.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$32,959)......................................... $33,605
Cash............................................... @@
Receivables:
Fund shares sold................................. 4,991
Dividends and interest........................... 55
Other assets....................................... 50
-------
Total assets....................................... 38,701
-------
LIABILITIES
Payables:
Investment securities purchased.................. 1,630
Fund shares redeemed............................. 201
Payable for investment advisory and management
fees (Note 3).................................. 24
Payable for distribution fees (Note 3)........... 2
Accrued Expenses................................... 31
-------
Total liabilities.................................. 1,888
-------
Net assets......................................... $36,813
=======
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 3,550
shares outstanding............................... $36,098
Accumulated undistributed net investment income.... 57
Accumulated net realized gain on investments....... 12
Unrealized appreciation of investments in
securities....................................... 646
-------
Net assets......................................... $36,813
=======
</Table>
<Table>
Class A
Net asset value per share ($26,649 / 2,569 shares
outstanding)...................................... $10.37
------
Maximum offering price per share ($10.37 / 94.5%)... $10.97
======
Class B
Net asset value per share ($2,421 / 234 shares
outstanding)...................................... $10.36
======
Class C
Net asset value per share ($7,639 / 737 shares
outstanding)...................................... $10.36
------
Maximum offering price per share ($10.36 / 99.0%)... $10.46
======
Class Y
Net asset value per share ($104 / 10 shares
outstanding)...................................... $10.39
======
</Table>
@@Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
50
THE HARTFORD FOCUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 99.7%
BASIC MATERIALS -- 5.4%
110 Alcoa, Inc. ...................................... $ 3,473
93 Gillette Co. (with rights)........................ 2,954
--------
6,427
--------
CONSUMER CYCLICAL -- 14.6%
47 Caterpillar, Inc. (with rights)................... 3,422
95 Costco Wholesale Corp.(a)......................... 3,353
219 Gap, Inc. ........................................ 4,175
89 Home Depot, Inc. ................................. 3,314
117 Masco Corp. (with rights)......................... 3,207
--------
17,471
--------
CONSUMER STAPLES -- 3.3%
83 Coca-Cola Co. .................................... 3,870
--------
FINANCE AND INSURANCE -- 23.4%
69 American Express Co. ............................. 3,252
98 American International Group, Inc. ............... 5,955
43 Bank of America Corp. ............................ 3,279
120 Citigroup, Inc. .................................. 5,688
50 Marsh & McLennan Companies, Inc. (with rights).... 2,138
63 Merrill Lynch & Co., Inc. ........................ 3,700
69 Morgan Stanley (with rights)...................... 3,792
--------
27,804
--------
HEALTH CARE -- 10.1%
39 Genzyme Corp.(a).................................. 1,790
61 Lilly (Eli) & Co. (with rights)................... 4,070
195 Pfizer, Inc. (with rights)........................ 6,175
--------
12,035
--------
SERVICES -- 14.5%
117 Comcast Corp. Class A(a).......................... 3,957
75 Computer Sciences Corp.(a)........................ 2,979
49 FedEx Corp. ...................................... 3,727
85 Viacom, Inc. Class B.............................. 3,373
141 Walt Disney Co. .................................. 3,181
--------
17,217
--------
TECHNOLOGY -- 28.4%
183 Cisco Systems, Inc. (with rights)(a).............. 3,831
210 General Electric Co. ............................. 6,078
162 Hewlett-Packard Co. .............................. 3,616
164 Intel Corp. ...................................... 5,404
51 International Business Machines Corp. ............ 4,563
224 Microsoft Corp. .................................. 5,863
286 Time Warner, Inc.(a).............................. 4,371
--------
33,726
--------
Total common stock (cost $106,675)................ $118,550
========
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- --------- --------
SHORT-TERM INVESTMENTS -- 0.3%
FINANCE -- 0.3%
$ 44 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 44
116 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 116
144 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 144
--------
Total short-term investments (cost $304).......... $ 304
========
Total investments in securities
(cost $106,979)(b).............................. $118,854
========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $108,921 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $12,846
Unrealized depreciation......................... (2,913)
-------
Net unrealized appreciation..................... $ 9,933
=======
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$106,979)......................................... $118,854
Cash................................................ 2
Receivables:
Fund shares sold.................................. 280
Dividends and interest............................ 136
Other assets........................................ 25
--------
Total assets........................................ 119,297
--------
LIABILITIES
Payables:
Fund shares redeemed.............................. 202
Payable for investment advisory and management
fees (Note 3)................................... 100
Payable for distribution fees (Note 3)............ 9
Accrued Expenses.................................... 49
--------
Total liabilities................................... 360
--------
Net assets.......................................... $118,937
========
</Table>
The accompanying notes are an integral part of this financial statement.
51
THE HARTFORD FOCUS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 13,402
shares outstanding................................ $139,187
Accumulated net realized loss on investments........ (32,125)
Unrealized appreciation of investments in
securities........................................ 11,875
--------
Net assets.......................................... $118,937
========
</Table>
<Table>
Class A
Net asset value per share ($70,002 / 7,833 shares
outstanding)....................................... $8.94
-----
Maximum offering price per share ($8.94 / 94.5%)..... $9.46
=====
Class B
Net asset value per share ($21,058 / 2,396 shares
outstanding)....................................... $8.79
=====
Class C
Net asset value per share ($27,158 / 3,093 shares
outstanding)....................................... $8.78
-----
Maximum offering price per share ($8.78 / 99.0%)..... $8.87
=====
Class Y
Net asset value per share ($719 / 80 shares
outstanding)....................................... $9.04
=====
</Table>
The accompanying notes are an integral part of this financial statement.
52
THE HARTFORD GLOBAL COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 92.8%
TELECOMMUNICATIONS -- OTHER -- 43.6%
13 AT&T Corp. ....................................... $ 240
28 Brasil Telecom S.A. ADR........................... 388
23 Cosmote Mobile Communications S.A. ............... 269
12 France Telecom S.A. .............................. 286
@@ KDDI Corp. ....................................... 418
21 P.T. Telekomunikasi Indonesia ADR................. 302
24 Sprint Corp. (with rights)........................ 376
161 Telecom Italia S.p.A.(a).......................... 280
53 Telekom Austria AG(a)(e).......................... 568
138 Telenor ASA(e).................................... 751
16 Telkom South Africa Ltd. ADR(a)................... 488
-------
4,366
-------
TELECOMMUNICATION RESELLERS -- 4.7%
38 Citizens Communications Co. (with rights)(a)...... 471
-------
WIRED TELECOMMUNICATIONS CARRIERS -- 8.2%
20 Deutsche Telekom AG(a)............................ 314
52 Koninklijke (Royal) KPN N.V.(a)................... 392
@@ Nippon Telegraph & Telephone Corp................. 111
-------
817
-------
WIRELESS TELECOMMUNICATIONS CARRIERS -- 36.3%
10 Mobistar S.A.(a)(e)............................... 498
26 Nextel Communications, Inc. Class A(a)............ 624
40 Nextel Partners, Inc. Class A(a).................. 483
62 Philippine Long Distance Telephone Co.(a)......... 851
127 Qwest Communications International, Inc.(a)....... 449
1 SK Telecom Co. Ltd. .............................. 258
222 Vodafone Group plc................................ 466
-------
3,629
-------
Total common stock
(cost $6,991)................................... $ 9,283
=======
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT
GRADE -- 3.7%
TELECOMMUNICATIONS -- OTHER -- 3.7%
400 Qwest Capital Funding, Inc.,
7.25%, 02/15/2011............................... CCC+ $ 372
-------
Total corporate bonds:
non-investment grade
(cost $252)..................................... $ 372
=======
Total long-term investments
(cost $7,243)................................... $ 9,655
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 19.3%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 17.1%
1,707 Navigator Prime Portfolio......................... $ 1,707
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 2.2%
$ 32 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 32
85 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 85
107 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 107
-------
$ 224
-------
Total short-term investments
(cost $1,931)................................... $ 1,931
=======
Total investments in securities
(cost $9,174)(b)................................ $11,586
=======
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes was $9,208 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,398
Unrealized depreciation.......................... (20)
------
Net unrealized appreciation...................... $2,378
======
</Table>
(c) See Note 2b of acompanying Notes to Financial Statements
regarding valuation of securities.
The accompanying notes are an integral part of this financial statement.
53
THE HARTFORD GLOBAL COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(e) Securities issued within terms of a private placement
memorandum, exempt from registration under Section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of Directors, these issues are determined to be liquid. The aggregate value
of these securities at October 31, 2003, was $1,817, which represents
18.16% of total net assets.
@@ Due to the presentation of the financial statements in thousands,
the number of shares and/or dollars round to zero.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
MARKET CONTRACT DELIVERY UNREALIZED
DESCRIPTION VALUE AMOUNT DATE APPRECIATION
- ----------- ------ -------- --------- ------------
Hungarian Forint
(Sell) $331 $336 11/4/2003 $5
</Table>
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------- -------------
United States 49.4%
Philippines 8.5%
Norway 7.5%
Austria 5.7%
Japan 5.3%
Belgium 5.0%
South Africa 4.9%
United Kingdom 4.6%
Netherlands 3.9%
Brazil 3.9%
Germany 3.1%
Indonesia 3.0%
France 2.9%
Italy 2.8%
Greece 2.7%
South Korea 2.6%
-----
Total 115.8%
=====
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$9,174) @ ......................................... $11,586
Cash................................................. @@
Foreign currency on deposit with custodian (cost
$ @@ )............................................. @@
Unrealized appreciation in forward foreign currency
contracts.......................................... 5
Receivables:
Investment securities sold......................... 897
Fund shares sold................................... 115
Dividends and interest............................. 10
Other assets......................................... 12
-------
Total assets......................................... 12,625
-------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d).............................................. 1,707
Investment securities purchased.................... 895
Fund shares redeemed............................... 5
Payable for investment advisory and management fees
(Note 3)......................................... 8
Payable for distribution fees (Note 3)............. 1
Accrued Expenses..................................... 6
-------
Total liabilities.................................... 2,622
-------
Net assets........................................... $10,003
=======
@ Market value of securities on loan $1,672
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 2,152 shares
outstanding........................................ $15,298
Accumulated net realized loss on investments and
foreign currency transactions...................... (7,706)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency.................... 2,411
-------
Net assets........................................... $10,003
=======
</Table>
<Table>
Class A
Net asset value per share ($6,419 / 1,374 shares
outstanding)....................................... $4.67
-----
Maximum offering price per share ($4.67 / 94.5%)..... $4.94
=====
Class B
Net asset value per share ($1,555 / 340 shares
outstanding)....................................... $4.58
=====
Class C
Net asset value per share ($1,305 / 285 shares
outstanding)....................................... $4.57
-----
Maximum offering price per share (4.57 / 99.0%)...... $4.62
=====
Class Y
Net asset value per share ($724 / 153 shares
outstanding)....................................... $4.74
=====
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number of shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
54
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 94.9%
AGENCIES, BROKERAGES, OTHER INSURANCE
ACTIVITIES -- 5.0%
28 Clark, Inc.(a).................................... $ 417
15 Marsh & McLennan Companies, Inc. (with rights).... 628
-------
1,045
-------
COMMERCIAL BANKING -- 14.6%
43 Banco Santander Central Hispano S.A. ............. 417
29 Credit Agricole S.A. ............................. 615
29 Credit Agricole S.A. Rights....................... 7
12 UBS AG............................................ 755
142 UniCredito Italiano S.p.A. ....................... 698
52 Westpac Banking Corp. Ltd. ....................... 592
-------
3,084
-------
CREDIT CARD ISSUING -- 4.9%
21 Bank One Corp. ................................... 892
7 Credit Saison Co. Ltd. ........................... 144
-------
1,036
-------
DEPOSITORY CREDIT BANKING -- 22.5%
5 Bank of America Corp. ............................ 371
11 Bank of Bermuda Ltd. ............................. 481
14 Bank of Hawaii Corp. ............................. 544
2 Canadian Western Bank............................. 66
20 Citigroup, Inc. .................................. 952
3 Golden West Financial Corp. ...................... 311
19 Hibernia Corp. Class A............................ 432
86 HSBC Holdings plc................................. 1,290
10 People's Bank..................................... 314
-------
4,761
-------
INSURANCE CARRIERS -- 19.1%
21 ACE Ltd. ADR (with rights)........................ 738
9 Ambac Financial Group, Inc. ...................... 637
11 American International Group, Inc. ............... 694
18 Cincinnati Financial Corp. ....................... 724
9 Converium Holding AG ADR.......................... 222
8 MBIA, Inc. ....................................... 483
13 Reinsurance Group of America, Inc. ............... 535
-------
4,033
-------
INTERNATIONAL TRADE FINANCING (FOREIGN
BANKS) -- 5.5%
43 Royal Bank of Scotland Group plc.................. 1,153
-------
MONETARY AUTHORITIES -- CENTRAL BANK -- 4.4%
3 Credit Suisse Group............................... 106
41 HBOS plc.......................................... 477
@@ Sumitomo Mitsui Financial Group, Inc.(a).......... 357
-------
940
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
NONDEPOSITORY CREDIT BANKING -- 7.7%
29 Banco Latinoamericano de Exportaciones S.A. ADR
Class E(a)...................................... $ 429
12 Fannie Mae........................................ 824
7 Freddie Mac....................................... 376
-------
1,629
-------
OTHER FINANCIAL INVESTMENT ACTIVITIES -- 4.4%
26 AMVESCAP plc...................................... 204
5 Federated Investors, Inc. Class B................. 130
6 Franklin Resources, Inc. ......................... 299
13 Nomura Securities Co. Ltd. ....................... 223
@@ UFJ Holdings, Inc.(a)............................. 64
-------
920
-------
REAL ESTATE CREDIT (MORTGAGE BANKING) -- 1.3%
3 Countrywide Financial Corp. ...................... 273
-------
SECURITIES, COMMODITIES AND BROKERAGE -- 5.5%
3 Goldman Sachs Group, Inc. ........................ 263
11 Merrill Lynch & Co., Inc. ........................ 651
5 Morgan Stanley (with rights)...................... 247
-------
1,161
-------
Total common stock
(cost $18,236).................................. $20,035
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 12.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 7.1%
1,496 Navigator Prime Portfolio......................... $ 1,496
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 5.0%
$ 155 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 155
407 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 407
505 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 505
-------
1,067
-------
Total short-term investments (cost $2,563)........ $ 2,563
=======
Total investments in securities (cost
$20,799)(b)..................................... $22,598
=======
</Table>
The accompanying notes are an integral part of this financial statement.
55
THE HARTFORD GLOBAL FINANCIAL SERVICES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $20,883 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $2,365
Unrealized depreciation.......................... (650)
------
Net unrealized appreciation...................... $1,715
======
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------ -------- --------- --------------
Euro (Buy) $158 $158 11/4/2003 @@
Euro (Buy) 254 254 11/5/2003 @@
British Pound (Sell) 116 116 11/4/2003 @@
British Pound (Sell) 281 281 11/5/2003 @@
---
$@@
===
</Table>
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------- -------------
United States 67.7%
United Kingdom 14.8%
Switzerland 5.1%
Japan 3.7%
Italy 3.3%
France 3.0%
Australia 2.8%
Bermuda 2.3%
Spain 2.0%
Panama 2.0%
Canada 0.3%
-----
Total 107.0%
=====
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$20,799) @ ........................................ $22,598
Cash................................................. 1
Receivables:
Investment securities sold......................... 478
Fund shares sold................................... 235
Dividends and interest............................. 31
Other assets......................................... 16
-------
Total assets......................................... 23,359
-------
LIABILITIES
Unrealized depreciation on forward foreign currency
contracts.......................................... @@
Payables:
Payable upon return of securities loaned (Note
2d).............................................. 1,496
Investment securities purchased.................... 705
Fund shares redeemed............................... 17
Payable for investment advisory and management fees
(Note 3)......................................... 17
Payable for distribution fees (Note 3)............. 1
Accrued expenses..................................... 13
-------
Total liabilities.................................... 2,249
-------
Net assets........................................... $21,110
=======
</Table>
@ Market value of securities on loan $1,437.
@@ Due to the presentation of the financial statements in thousands, the
number rounds to zero.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 2,185 shares
outstanding........................................ $21,745
Accumulated undistributed net investment income...... 130
Accumulated net realized loss on investments......... (2,565)
Unrealized appreciation of investments in
securities......................................... 1,800
-------
Net assets........................................... $21,110
=======
</Table>
<Table>
Class A
Net asset value per share ($12,652 / 1,304 shares
outstanding)...................................... $ 9.71
------
Maximum offering price per share($9.71 / 94.5%)..... $10.28
======
Class B
Net asset value per share ($3,681 / 385 shares
outstanding)...................................... $ 9.55
======
Class C
Net asset value per share ($3,197 / 335 shares
outstanding)...................................... $ 9.55
------
Maximum offering price per share($9.55 / 99.0%)..... $ 9.65
======
Class Y
Net asset value per share ($1,580 / 161 shares
outstanding)...................................... $ 9.79
======
</Table>
The accompanying notes are an integral part of this financial statement.
56
THE HARTFORD GLOBAL HEALTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 96.8
AGENCIES, BROKERAGES, OTHER INSURANCE
ACTIVITIES -- 4.1%
290 Medco Health Solutions, Inc.(a)................... $ 9,628
--------
BASIC CHEMICAL MANUFACTURING -- 0.8%
80 Bayer AG.......................................... 1,924
--------
COMPUTER SYSTEMS DESIGN AND RELATED SERVICES -- 0.5%
26 Cerner Corp.(a)................................... 1,119
--------
DRUGS AND DRUGGISTS' SUNDRIES WHOLESALERS -- 4.9%
92 Cardinal Health, Inc. ............................ 5,459
205 McKesson Corp. ................................... 6,202
--------
11,661
--------
DRUGS AND DRUGGISTS' SUNDRIES MERCHANT -- 2.6%
9 Serono S.A. Class B............................... 6,225
--------
ELECTROMEDICAL MANUFACTURING -- 3.9%
178 Guidant Corp. .................................... 9,085
--------
INSURANCE CARRIERS -- 2.5%
38 Aetna, Inc. ...................................... 2,176
53 Anthem, Inc.(a)................................... 3,634
--------
5,810
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
MEDICAL AND DIAGNOSTIC LABORATORIES -- 0.5%
34 Laboratory Corp. of America Holdings (with.
rights)(a) $ 1,205
--------
MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING -- 6.5%
173 Baxter International, Inc. (with rights).......... 4,596
129 Becton, Dickinson & Co. (with rights)............. 4,709
481 Gambro AB Class B................................. 3,608
137 Viasys Healthcare, Inc. (with rights)(a).......... 2,474
--------
15,387
--------
NAVIGATE, MEASURE, CONTROL INSTRUMENTS -- 2.2%
105 Beckman Coulter, Inc. (with rights)............... 5,223
--------
OFFICES OF PHYSICIANS -- 1.6%
130 Edwards Lifesciences Corp.(a)..................... 3,770
--------
OTHER CHEMICAL AND PREPARATION -- 0.4%
58 Connetics Corp.(a)................................ 1,042
--------
PHARMACEUTICAL AND MEDICINE MANUFACTURING -- 48.8%
306 Abbott Laboratories (with rights)................. 13,025
209 Abgenix, Inc. (with rights)(a).................... 2,558
233 Amylin Pharmaceuticals, Inc.(a)................... 6,357
273 AstraZeneca plc ADR............................... 13,017
112 AtheroGenics, Inc. (with rights)(a)............... 1,849
162 Aventis S.A. ADR.................................. 8,580
74 Cephalon, Inc.(a)................................. 3,470
186 Chugai Pharmaceutical Co. Ltd. ................... 2,652
207 Eisai Co. Ltd. ................................... 4,858
73 Forest Laboratories, Inc. (with rights)(a)........ 3,661
202 Fujisawa Pharmaceutical Co. Ltd. ................. 4,171
88 ILEX Oncology, Inc. (with rights)(a).............. 1,836
128 Lilly (Eli) & Co. (with rights)................... 8,541
51 Novartis AG....................................... 1,935
32 OSI Pharmaceuticals, Inc. (with rights)(a)........ 907
314 Pfizer, Inc. (with rights)........................ 9,932
844 Schering-Plough Corp. (with rights)............... 12,889
281 Shionogi & Co. Ltd. .............................. 4,716
94 Vertex Pharmaceuticals, Inc.(a)................... 1,229
68 Watson Pharmaceuticals, Inc.(a)................... 2,682
138 Wyeth (with rights)............................... 6,109
--------
114,974
--------
PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES -- 1.3%
26 Dendrite International, Inc.(a)................... 394
364 Exelixis, Inc.(a)................................. 2,702
--------
3,096
--------
SCIENTIFIC RESEARCH AND DEVELOPMENT SERVICES -- 16.2%
389 Applera Corp. -- Celera Genomics Group(a)......... 5,194
54 Biogen, Inc. (with rights)(a)..................... 2,173
171 Ciphergen Biosystems, Inc.(a)..................... 1,865
145 CV Therapeutics, Inc. (with rights)(a)............ 2,548
322 Elan Corp. plc ADR(a)............................. 1,651
200 Genzyme Corp.(a).................................. 9,189
121 Human Genome Sciences, Inc. (with. rights)(a) 1,680
55 IDEC Pharmaceuticals Corp.(a)..................... 1,915
137 Medicines Co.(a).................................. 3,654
126 Millennium Pharmaceuticals, Inc. (with. rights)(a) 2,001
108 Monsanto Co. ..................................... 2,704
105 Regeneron Pharmaceutical, Inc.(a)................. 1,453
104 Telik, Inc.(a).................................... 2,107
--------
38,134
--------
Total common stock................................
(cost $219,827) $228,283
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 13.3
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 10.5%
24,764 Navigator Prime Portfolio......................... $ 24,764
--------
</Table>
The accompanying notes are an integral part of this financial statement.
57
THE HARTFORD GLOBAL HEALTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- ----------- -----------
FINANCE -- 2.8%
$ 969 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 969
2,550 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 2,550
3,164 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 3,164
---------
6,683
---------
Total short-term investments
(cost $31,447).................................. $ 31,447
=========
Total investments in securities
(cost $251,274)(b).............................. $ 259,730
=========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $252,233 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 28,784
Unrealized depreciation........................ (21,287)
--------
Net unrealized appreciation.................... $ 7,497
========
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------- -------------
United States 87.5%
Japan 7.0%
United Kingdom 5.5%
France 3.6%
Switzerland 3.5%
Sweden 1.5%
Germany 0.8%
Ireland 0.7%
-----
Total 110.1%
=====
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$251,274) @ ...................................... $259,730
Cash................................................ @@
Receivables:
Investment securities sold........................ 733
Fund shares sold.................................. 1,162
Dividends and interest............................ 189
Other assets........................................ 45
--------
Total assets........................................ 261,859
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 24,764
Investment securities purchased................... 815
Fund shares redeemed.............................. 267
Payable for investment advisory and management
fees (Note 3)................................... 199
Payable for distribution fees (Note 3)............ 20
Accrued Expenses.................................... 85
--------
Total liabilities................................... 26,150
--------
Net assets.......................................... $235,709
========
</Table>
@ Market value of securities on loan $23,366.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized;
17,293 shares outstanding......................... $227,092
Accumulated net realized gain on investments and
foreign currency transactions..................... 156
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 8,461
--------
Net assets.......................................... $235,709
========
</Table>
<Table>
Class A
Net asset value per share ($126,630 / 9,178 shares
outstanding)...................................... $13.80
------
Maximum offering price per share ($13.80 / 94.5%)... $14.60
======
Class B
Net asset value per share ($56,378 / 4,197 shares
outstanding)...................................... $13.43
======
Class C
Net asset value per share ($51,606 / 3,840 shares
outstanding)...................................... $13.44
------
Maximum offering price per share ($13.44 / 99.0%)... $13.58
======
Class Y
Net asset value per share ($1,095 / 78 shares
outstanding)...................................... $14.09
======
</Table>
@@Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
58
THE HARTFORD GLOBAL LEADERS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 97.7%
CANADA -- 1.6%
231 Research in Motion Ltd. (Wireless
Telecommunications Carriers)(a)................. $ 10,183
--------
CHINA -- 0.0%
1,160 PICC Property and Casualty Co. Ltd. (Insurance
Carriers)(a)(f)................................. 269
--------
FINLAND -- 0.2%
78 Nokia Oyj (Communications Equipment).............. 1,323
--------
FRANCE -- 7.8%
341 Alcatel S.A. (Communications Equipment)........... 4,499
558 Axa (Insurance Carriers).......................... 10,573
74 Pinault-Printemps-Redoute S.A. (Retail --
Department Stores).............................. 7,509
86 Renault S.A. (Retail -- Automobile Dealers)....... 5,662
29 Sanofi-Synthelabo S.A. (Pharmaceutical & Medicine
Manufacturing).................................. 1,814
79 Total S.A. (Petro and Coal -- Products
Manufacturing).................................. 12,279
1,046 Wanadoo (Internet Providers & Web Search
Port)(a)........................................ 7,785
--------
50,121
--------
GERMANY -- 9.8%
87 Allianz AG (Insurance Carriers)................... 9,319
180 Bayerische Motoren Werke (BMW) AG (Motor Vehicle
Manufacturing).................................. 7,231
136 Deutsche Bank AG (Depository Credit Banking)...... 8,991
473 Deutsche Telekom AG (Wired Telecommunications
Carriers)(a).................................... 7,415
76 Muenchener Rueckversicherungs-Gesellschaft AG
(Insurance and Employee Benefit Funds).......... 9,005
53 Muenchener Rueckversicherungs-Gesellschaft AG
Rights (Insurance and Employee Benefit Funds)... 436
118 Schering AG (Pharmaceutical & Medicine
Manufacturing).................................. 5,549
220 Siemens AG (Navigate, Measure, Control
Instruments).................................... 14,769
--------
62,715
--------
HONG KONG -- 4.7%
3,952 China Merchants Holdings International Co. Ltd.
(Other Transportation Equipment)................ 5,343
2,745 CNOOC Ltd. (Petro and Coal -- Oil & Gas
Extraction)..................................... 5,178
1,338 Esprit Holdings Ltd. (Retail -- Clothing
Stores)......................................... 4,202
1,366 Hutchison Whampoa Ltd. (Activities Related to Real
Estate)......................................... 10,598
1,626 Techtronic Industries Co. Ltd. (Electrical Equip
Manuf).......................................... 4,481
--------
29,802
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
ISRAEL -- 0.9%
99 Teva Pharmaceutical Industries Ltd. ADR
(Pharmaceutical & Medicine Manufacturing)....... $ 5,626
--------
ITALY -- 1.1%
693 Mediaset S.p.A. (Radio and Television
Broadcasting)................................... 6,999
--------
JAPAN -- 2.7%
80 Fanuc Ltd. (Electrical Equip Manuf -- Component
Other).......................................... 4,786
55 Fast Retailing Co. Ltd. (Retail -- Clothing
Stores)......................................... 3,336
@@ Mitsubishi Tokyo Financial Group, Inc. (Monetary
Authorities -- Central Bank).................... 2,939
1,204 Nikko Cordial Corp. (Other Financial Investment
Activities)..................................... 6,494
--------
17,555
--------
NETHERLANDS -- 1.2%
149 ASML Holding N.V. (Semiconductor, Electronic
Compon)(a)...................................... 2,586
241 European Aeronautic Defense and Space Co.
(Aerospace Product and Parts
Manufacturing).................................. 4,895
--------
7,481
--------
RUSSIA -- 1.3%
161 Mining and Metallurgical Co. Norilsk Nickel ADR
(Mining -- Metal Ore)........................... 8,297
--------
SOUTH KOREA -- 3.1%
102 Samsung Electronics Co. Ltd. GDR (Audio and Video
Equipment)(e)................................... 20,154
--------
SWEDEN -- 5.1%
444 Atlas Copco ABA Shares (Fabricated Metal
Manf -- Other).................................. 15,584
9,778 Telefonaktiebolaget LM Ericsson AB (Communications
Equipment)...................................... 16,796
--------
32,380
--------
SWITZERLAND -- 5.5%
1,605 ABB Ltd. (Electrical Equip Manuf)................. 9,435
469 Credit Suisse Group (Monetary Authorities --
Central Bank)................................... 16,526
115 Roche Holding AG (Pharmaceutical & Medicine
Manufacturing).................................. 9,540
--------
35,501
--------
TAIWAN -- 1.0%
6,724 United Microelectronics Corp. (Semiconductor,
Electronic Compon)(a)........................... 6,155
--------
UNITED KINGDOM -- 7.7%
595 AMVESCAP plc (Other Financial Investment
Activities)..................................... 4,708
163 AstraZeneca plc (Pharmaceutical & Medicine
Manufacturing).................................. 7,661
</Table>
The accompanying notes are an integral part of this financial statement.
59
THE HARTFORD GLOBAL LEADERS FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
2,120 British Airways plc (Air Transportation
Scheduled)(a)................................... $ 7,482
354 Imperial Tobacco Group plc (Tobacco
Manufacturing).................................. 5,869
1,968 Kingfisher plc (Retail -- Other General
Merchandise Stores)............................. 9,432
6,726 Vodafone Group plc (Wireless Telecommunications
Carriers)....................................... 14,124
--------
49,276
--------
UNITED STATES -- 44.0%
461 AMR Corp. (Air Transportation Scheduled)(a)....... 6,125
139 Analog Devices, Inc. (with rights) (Semiconductor,
Electronic Compon)(a)........................... 6,157
146 Apollo Group, Inc. Class A (Education -- Colleges,
Universities and Prof Schools)(a)............... 9,250
331 Applied Materials, Inc. (Semiconductor, Electronic
Compon)(a)...................................... 7,740
46 AutoZone, Inc. (Retail -- Auto Parts, Accessories,
and Tire Stores)(a)............................. 4,392
229 Bank One Corp. (Credit Card Issuing).............. 9,730
149 Boston Scientific Corp. (Medical Equipment &
Supplies Manufacturing)(a)...................... 10,117
762 Cendant Corp. (Other Services -- Other Personal
Services)(a).................................... 15,572
522 Cisco Systems, Inc. (with rights) (Communications
Equipment)(a)................................... 10,947
284 Citigroup, Inc. (Depository Credit Banking)....... 13,478
348 Coach, Inc. (with rights) (Leather and Allied
Product Manufacturing)(a)....................... 12,336
387 Comcast Corp. Special Class A (Cable & Other
Subscription Programming)(a).................... 12,630
140 Countrywide Financial Corp. (Real Estate Credit
(Mortgage Banking))............................. 14,727
150 Deere & Co. (with rights) (Machinery
Manuf -- Agri, Construction, Mining)............ 9,105
472 Dell, Inc. (with rights) (Computer and
Peripheral)(a).................................. 17,063
238 Exxon Mobil Corp. (Petro and Coal -- Products
Manufacturing).................................. 8,695
68 First Data Corp. (Data Processing Services)....... 2,438
174 Forest Laboratories, Inc. (with rights)
(Pharmaceutical & Medicine Manufacturing)(a).... 8,702
146 Freddie Mac (Nondepository Credit Banking)........ 8,217
463 Gillette Co. (with rights) (Fabricated Metal
Manuf -- Cutlery and Handtool).................. 14,763
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
UNITED STATES -- (CONTINUED)
271 Guidant Corp. (Electromedical Manufacturing)...... $ 13,819
42 Lennar Corp. Class A (Construction -- Residential
Building)....................................... 3,849
125 Lilly (Eli) & Co. (with rights) (Pharmaceutical &
Medicine Manufacturing)......................... 8,314
208 Merrill Lynch & Co., Inc. (Securities, Commodities
and Brokerage).................................. 12,308
394 Microsoft Corp. (Information -- Software
Publishers)..................................... 10,314
112 Pfizer, Inc. (with rights) (Pharmaceutical &
Medicine Manufacturing)......................... 3,523
125 United Technologies Corp. (Aerospace Product and
Parts Manufacturing)............................ 10,612
121 Univision Communications, Inc. Class A (Radio and
Television Broadcasting)(a)..................... 4,122
10 Wal-Mart Stores, Inc. (Retail -- Department
Stores)......................................... 590
134 XM Satellite Radio Holdings, Inc. (Radio and
Television Broadcasting)(a)..................... 2,715
225 Yahoo!, Inc. (with rights) (Internet Providers &
Web Search Port)(a)............................. 9,840
--------
282,190
--------
Total common stock
(cost $551,436)................................. $626,027
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 11.4%
COLLATERAL FOR SECURITIES LENDING -- 8.9%
56,769 Navigator Prime Portfolio......................... $ 56,769
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 2.5%
$ 2,363 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 2,363
6,219 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 6,219
7,717 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 7,717
--------
16,299
--------
Total short-term investments
(cost $73,068).................................. $ 73,068
========
Total investments in securities (cost
$624,504)(b).................................... $699,095
========
</Table>
The accompanying notes are an integral part of this financial statement.
60
- --------------------------------------------------------------------------------
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $626,145 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $76,055
Unrealized depreciation......................... (3,105)
-------
Net unrealized appreciation..................... $72,950
=======
</Table>
(c) See Note 2b of acompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(e) Securities issued within the terms of a private placement
memorandum, exempt from registration under Section 144A of the securities
Act of 1933, as amended, and may be sold only to dealers in that program or
to other "accredited investors". Pursuant to guidelines adopted by the
Board of Directors, these issues are determined to be liquid. The aggregate
value of these securities at October 31, 2003, was $20,154, which
represents 3.14% of total net assets.
(f) Security valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these securities
as of October 31, 2003, was $269 which represents 0.04% of total net
assets.
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY INDUSTRY NET ASSETS
Basic Materials 6.0%
Capital Goods 5.5%
Consumer Cyclical 9.1%
Consumer Staples 0.9%
Energy 4.1%
Finance and Insurance 19.9%
Health Care 11.7%
Services 8.0%
Technology 29.5%
Transportation 3.0%
Short Term Investments 11.4%
------
Total 109.1%
======
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------ -------- --------- --------------
Swiss Francs (Buy) $2,568 $2,579 11/3/2003 $(11)
Swiss Francs (Buy) 1,964 1,970 11/4/2003 (6)
Euro (Buy) 4,087 4,099 11/3/2003 (12)
Euro (Buy) 4,846 4,840 11/4/2003 6
Hong Kong Dollars
(Buy) 271 271 11/6/2003 @@
Euro (Sell) 2,121 2,124 11/4/2003 3
Japanese Yen (Sell) 2,956 3,007 11/4/2003 51
----
$ 31
====
</Table>
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$624,504) @ ..................................... $ 699,095
Cash............................................... 4
Foreign currency on deposit with custodian
(cost $2,300).................................... 2,292
Unrealized appreciation in forward foreign currency
contracts........................................ 60
Receivables:
Investment securities sold....................... 18,044
Fund shares sold................................. 2,684
Dividends and interest........................... 646
Other assets....................................... 42
---------
Total assets....................................... 722,867
---------
LIABILITIES
Unrealized depreciation on forward foreign currency
contracts........................................ 29
Payables:
Payable upon return of securities loaned (Note
2d)............................................ 56,769
Investment securities purchased.................. 23,661
Fund shares redeemed............................. 795
Payable for investment advisory and management
fees (Note 3).................................. 444
Payable for distribution fees (Note 3)........... 40
Accrued Expenses................................... 250
---------
Total liabilities.................................. 81,988
---------
Net assets......................................... $ 640,879
=========
</Table>
@ Market value of securities on loan $54,316.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 46,294
shares outstanding............................... $ 729,871
Accumulated undistributed net investment loss...... (32)
Accumulated net realized loss on investments and
foreign currency transactions.................... (163,580)
Unrealized appreciation of investments in
securities and the translations of assets and
liabilities denominated in foreign currency...... 74,620
---------
Net assets......................................... $ 640,879
=========
</Table>
<Table>
Class A
Net asset value per share ($464,610 / 33,290 shares
outstanding)...................................... $13.96
------
Maximum offering price per share ($13.96 / 94.5%)... $14.77
======
Class B
Net asset value per share ($78,923 / 5,869 shares
outstanding)...................................... $13.45
======
Class C
Net asset value per share ($78,303 / 5,807 shares
outstanding)...................................... $13.49
------
Maximum offering price per share ($13.49 / 99.0%)... $13.63
======
Class Y
Net asset value per share ($19,043 / 1,328 shares
outstanding)...................................... $14.34
======
</Table>
The accompanying notes are an integral part of this financial statement.
61
THE HARTFORD GLOBAL TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 94.1%
AUDIO AND VIDEO EQUIPMENT -- 5.0%
10 Samsung Electronics Co. Ltd. ..................... $ 1,960
35 Sony Corp. ....................................... 1,219
--------
3,179
--------
CABLE AND OTHER PROGRAM DISTRIBUTION -- 1.1%
46 Time Warner, Inc.(a).............................. 708
--------
COMMUNICATIONS EQUIPMENT -- 9.9%
138 Cisco Systems, Inc. (with rights)(a).............. 2,899
116 Motorola, Inc. (with rights)...................... 1,563
110 Nokia Oyj ADR..................................... 1,864
--------
6,326
--------
COMPUTER AND PERIPHERAL -- 13.0%
64 Dell, Inc. (with rights)(a)....................... 2,326
102 EMC Corp.(a)...................................... 1,410
46 Hewlett-Packard Co. .............................. 1,015
15 International Business Machines Corp. ............ 1,378
138 Maxtor Corp.(a)................................... 1,885
14 Sabre Holdings Corp. ............................. 297
--------
8,311
--------
COMPUTER SYSTEMS DESIGN AND RELATED
SERVICES -- 2.8%
34 BISYS Group, Inc.(a).............................. 483
23 Computer Sciences Corp.(a)........................ 927
7 Digital Insight Corp.(a).......................... 149
24 webMethods, Inc. (with rights)(a)................. 210
--------
1,769
--------
DATA PROCESSING SERVICES -- 3.8%
68 First Data Corp. ................................. 2,431
--------
ELECTRICAL EQUIP MANUFACTURING -- COMPONENT
OTHER -- 4.6%
16 American Power Conversion Corp. .................. 324
163 Corning, Inc.(a).................................. 1,788
11 NEC Electronics Corp. ............................ 846
--------
2,958
--------
INFORMATION -- SOFTWARE PUBLISHERS -- 15.3%
240 Brocade Communications Systems, Inc. (with
rights)(a)...................................... 1,573
18 Cognos, Inc.(a)................................... 617
197 Microsoft Corp. .................................. 5,152
82 Red Hat, Inc.(a).................................. 1,235
75 VeriSign, Inc. (with rights)(a)................... 1,192
--------
9,769
--------
INTERNET PROVIDERS & WEB SEARCH PORT -- 3.7%
55 Yahoo!, Inc. (with rights)(a)..................... 2,386
--------
MANAGEMENT, SCIENTIFIC, AND TECH CONSULTING
SVCS -- 2.0%
54 Accenture Ltd. Class A(a)......................... 1,268
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
OTHER SERVICES -- OTHER PERSONAL SERVICES -- 2.6%
81 Cendant Corp.(a).................................. $ 1,661
--------
OTHER TELECOMMUNICATIONS -- 1.0%
140 Nortel Networks Corp.(a).......................... 622
--------
SEMICONDUCTOR, ELECTRONIC COMPON -- 27.9%
35 Analog Devices, Inc. (with rights)(a)............. 1,565
56 Applied Materials, Inc.(a)........................ 1,297
66 ASE Test Ltd. ADR(a).............................. 817
72 ASML Holding N.V.(a).............................. 1,256
75 Fairchild Semiconductor International, Inc.(a).... 1,684
36 Intel Corp. ...................................... 1,183
11 KLA-Tencor Corp.(a)............................... 613
15 Marvell Technology Group Ltd.(a).................. 662
32 NVIDIA Corp.(a)................................... 573
28 RF Micro Devices, Inc. (with rights)(a)........... 328
93 STMicroelectronics N.V. .......................... 2,474
338 Taiwan Semiconductor Manufacturing Co. Ltd.(a).... 667
93 Texas Instruments, Inc. (with rights)............. 2,695
9 Tokyo Electron Ltd. .............................. 624
667 United Microelectronics Corp.(a).................. 611
14 Varian Semiconductor Equipment Associates,
Inc.(a)......................................... 667
--------
17,716
--------
SOUND RECORDING INDUSTRIES -- 0.0%
2 Embarcadero Technologies, Inc.(a)................. 31
--------
WHOLESALERS -- PROFESSIONAL-COMMERCIAL EQUIP
MERCH -- 1.4%
59 Ingram Micro, Inc. Class A(a)..................... 878
--------
Total common stock
(cost $48,946).................................. $ 60,013
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 6.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 2.3%
1,449 Navigator Prime Portfolio......................... $ 1,449
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
BANKING -- 3.8%
$ 350 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 350
920 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 920
1,141 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 1,141
--------
2,411
--------
Total short-term investments
(cost $3,860)................................... $ 3,860
========
Total investments in securities
(cost $52,806)(b)............................... $ 63,873
========
</Table>
The accompanying notes are an integral part of this financial statement.
62
- --------------------------------------------------------------------------------
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $53,815 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $10,800
Unrealized depreciation......................... (742)
-------
Net unrealized appreciation..................... $10,058
=======
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 22.32% of total net assets as of October 31, 2003.
@@ Due to the presentation of the financial statements in thousands,
the number or shares and/or dollars round to zero.
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY COUNTRY NET ASSETS
- -------------------------- -------------
United States 77.9%
Japan 4.2%
Switzerland 3.9%
Taiwan 3.3%
South Korea 3.1%
Finland 2.9%
Netherlands 2.0%
Canada 1.9%
Bermuda 1.0%
-----
Total 100.2%
=====
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$52,806) @ ....................................... $ 63,873
Cash................................................ 1
Foreign currency on deposit with custodian (cost
$53).............................................. 53
Receivables:
Investment securities sold........................ 2,068
Fund shares sold.................................. 446
Dividends and interest............................ 39
Other assets........................................ 15
--------
Total assets........................................ 66,495
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 1,449
Investment securities purchased................... 1,096
Fund shares redeemed.............................. 94
Payable for investment advisory and management
fees (Note 3)................................... 52
Payable for distribution fees (Note 3)............ 5
Accrued Expenses.................................... 21
--------
Total liabilities................................... 2,717
--------
Net assets.......................................... $ 63,778
========
</Table>
@ Market value of securities on loan $985.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 13,789
shares outstanding................................ $118,834
Accumulated net realized loss on investments........ (66,123)
Unrealized appreciation of investments in
securities........................................ 11,067
--------
Net assets.......................................... $ 63,778
========
</Table>
<Table>
Class A
Net asset value per share ($32,388 / 6,915 shares
outstanding)....................................... $4.68
-----
Maximum offering price per share ($4.68 / 94.5%)..... $4.95
=====
Class B
Net asset value per share ($13,991 / 3,069 shares
outstanding)....................................... $4.56
=====
Class C
Net asset value per share ($16,513 / 3,619 shares
outstanding)....................................... $4.56
-----
Maximum offering price per share ($4.56 / 99.0%)..... $4.61
=====
Class Y
Net asset value per share ($886 / 186 shares
outstanding)....................................... $4.75
=====
</Table>
The accompanying notes are an integral part of this financial statement.
63
THE HARTFORD GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 94.9%
CAPITAL GOODS -- 0.9%
52 General Dynamics Corp. ........................... $ 4,377
--------
CONSUMER CYCLICAL -- 8.2%
151 AutoZone, Inc.(a)................................. 14,473
250 eBay, Inc.(a)..................................... 13,957
54 Lennar Corp. Class A.............................. 4,941
254 Mattel, Inc. ..................................... 4,915
--------
38,286
--------
FINANCE AND INSURANCE -- 15.0%
255 ACE Ltd. ADR (with rights)........................ 9,194
51 Bank One Corp. ................................... 2,148
83 Capital One Financial Corp. ...................... 5,046
319 Citigroup, Inc. .................................. 15,135
227 Countrywide Financial Corp. ...................... 23,862
63 Fannie Mae........................................ 4,538
97 Franklin Resources, Inc. ......................... 4,586
169 Medco Health Solutions, Inc.(a)................... 5,616
--------
70,125
--------
HEALTH CARE -- 17.8%
196 Abbott Laboratories (with rights)................. 8,336
321 AstraZeneca plc ADR............................... 15,296
208 Forest Laboratories, Inc. (with rights)(a)........ 10,387
73 Genzyme Corp.(a).................................. 3,346
45 Gilead Sciences, Inc.(a).......................... 2,451
348 Guidant Corp. .................................... 17,731
239 Lilly (Eli) & Co. (with rights)................... 15,935
168 McKesson Corp. ................................... 5,073
279 Serono S.A. ADR................................... 4,805
--------
83,360
--------
SERVICES -- 19.2%
316 Apollo Group, Inc. Class A(a)..................... 20,095
230 Clear Channel Communications, Inc. ............... 9,393
346 Comcast Corp. Special Class A(a).................. 11,288
118 InterActive Corp.(a).............................. 4,343
189 Moody's Corp. .................................... 10,911
209 Omnicom Group, Inc. .............................. 16,662
151 SunGard Data Systems, Inc. (with rights)(a)....... 4,227
369 Univision Communications, Inc. Class A(a)......... 12,528
--------
89,447
--------
TECHNOLOGY -- 33.8%
267 Altera Corp.(a)................................... 5,403
238 Analog Devices, Inc. (with rights)(a)............. 10,555
209 Applied Materials, Inc.(a)........................ 4,888
335 Cisco Systems, Inc. (with rights)(a).............. 7,028
1,062 Corning, Inc.(a).................................. 11,657
131 Cox Communications, Inc. Class A(a)............... 4,470
641 Dell, Inc. (with rights)(a)....................... 23,135
284 EchoStar Communications Corp. Class A(a).......... 10,871
351 EMC Corp.(a)...................................... 4,860
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
TECHNOLOGY -- (CONTINUED)
401 First Data Corp. ................................. $ 14,309
444 Microsoft Corp. .................................. 11,616
104 QUALCOMM, Inc. ................................... 4,945
245 Seagate Technology................................ 5,623
187 Symantec Corp.(a)................................. 12,484
275 Telefonaktiebolaget LM Ericsson ADR(a)............ 4,699
487 Yahoo!, Inc. (with rights)(a)..................... 21,302
--------
157,845
--------
Total common stock
(cost $373,298)................................. $443,440
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 10.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 6.9%
32,397 Boston Global Investment Trust.................... $ 32,397
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 3.2%
$ 2,154 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 2,154
5,668 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 5,668
7,035 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 7,035
--------
14,857
--------
Total short-term investments
(cost $47,254).................................. $ 47,254
========
Total investments in securities
(cost $420,552)(b).............................. $490,694
========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $421,454 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $71,749
Unrealized depreciation......................... (2,509)
-------
Net unrealized appreciation..................... $69,240
=======
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 5.31% of total net assets as of October 31, 2003.
The accompanying notes are an integral part of this financial statement.
64
THE HARTFORD GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$420,552) @ ...................................... $490,694
Receivables:
Investment securities sold........................ 11,618
Fund shares sold.................................. 4,719
Dividends and interest............................ 284
Other assets........................................ 65
--------
Total assets........................................ 507,380
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 32,397
Investment securities purchased................... 7,345
Bank overdraft.................................... 1
Fund shares redeemed.............................. 115
Payable for investment advisory and management
fees (Note 3)................................... 304
Payable for distribution fees (Note 3)............ 24
Accrued Expenses.................................... 54
--------
Total liabilities................................... 40,240
--------
Net assets.......................................... $467,140
========
@ Market value of securities on loan $31,454.
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.0001
per share; 21,000,000 shares authorized; 31,214
shares outstanding................................ $485,148
Accumulated net realized loss on investments........ (88,150)
Unrealized appreciation of investments in
securities........................................ 70,142
--------
Net assets.......................................... $467,140
========
</Table>
<Table>
Class A
Net asset value per share ($72,186 / 4,751 shares
outstanding)...................................... $15.19
------
Maximum offering price per share($15.19 / 94.5%).... $16.07
======
Class B
Net asset value per share ($11,552 / 843 shares
outstanding)...................................... $13.70
======
Class C
Net asset value per share ($11,896 / 869 shares
outstanding)...................................... $13.70
------
Maximum offering price per share($13.70 / 99.0%).... $13.84
======
Class H
Net asset value per share ($27,032 / 1,967 shares
outstanding)...................................... $13.74
======
Class L
Net asset value per share ($316,451 / 20,742 shares
outstanding)...................................... $15.26
------
Maximum offering price per share($15.26 / 95.25%)... $16.02
======
Class M
Net asset value per share ($23,523 / 1,714 shares
outstanding)...................................... $13.72
======
Class N
Net asset value per share ($4,499 / 328 shares
outstanding)...................................... $13.72
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $15.31
======
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
65
THE HARTFORD GROWTH OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
COMMON STOCK -- 98.2%
BASIC MATERIALS -- 6.0%
159 AngloGold Ltd. ADR................................ $ 6,132
192 Arch Coal, Inc. .................................. 4,692
268 Jarden Corp.(a)................................... 11,070
827 Kinross Gold Corp.(a)............................. 6,794
254 Precision Castparts Corp. ........................ 10,426
---------
39,114
---------
CONSUMER CYCLICAL -- 24.3%
86 Advance Auto Parts, Inc.(a)....................... 6,688
109 Aeropostale, Inc.(a).............................. 3,353
962 American Tower Corp. Class A(a)................... 11,161
67 AutoZone, Inc.(a)................................. 6,410
1,798 Burberry Group plc................................ 12,022
155 CDW Corp. ........................................ 9,296
213 Coach, Inc. (with rights)(a)...................... 7,562
197 D.R. Horton, Inc. ................................ 7,829
89 Dick's Sporting Goods, Inc.(a).................... 4,088
666 Gap, Inc. ........................................ 12,709
416 Hollywood Entertainment Corp.(a).................. 6,316
218 Home Depot, Inc. ................................. 8,092
90 Lennar Corp. Class A.............................. 8,285
272 Michaels Stores, Inc. ............................ 12,921
20 P. F. Chang's China Bistro, Inc.(a)............... 975
402 PetSmart, Inc. ................................... 10,295
144 Pulte Homes, Inc. ................................ 12,423
250 RARE Hospitality International, Inc.(a)........... 6,194
132 Reebok International Ltd. (with rights)........... 5,145
1,414 Rinker Group Ltd. ................................ 6,369
---------
158,133
---------
CONSUMER STAPLES -- 3.4%
167 Altria Group, Inc. ............................... 7,756
174 Bunge Ltd. ....................................... 4,704
309 Constellation Brands, Inc. Class A(a)............. 9,700
---------
22,160
---------
FINANCE AND INSURANCE -- 8.4%
150 Bank One Corp. ................................... 6,367
113 BlackRock, Inc. .................................. 5,792
195 Brown & Brown, Inc. (with rights)................. 5,947
85 Countrywide Financial Corp. ...................... 8,935
472 E*Trade Financial Corp. (with rights)(a).......... 4,859
132 Fannie Mae........................................ 9,463
75 Freddie Mac....................................... 4,193
281 Medco Health Solutions, Inc.(a)................... 9,313
---------
54,869
---------
HEALTH CARE -- 18.0%
124 Abbott Laboratories (with rights)................. 5,268
114 AmerisourceBergen Corp. (with rights)............. 6,449
125 Amylin Pharmaceuticals, Inc.(a)................... 3,427
218 Cardinal Health, Inc. ............................ 12,912
186 Cephalon, Inc.(a)................................. 8,749
451 Cytyc Corp.(a).................................... 5,825
387 Edwards Lifesciences Corp.(a)..................... 11,220
248 Forest Laboratories, Inc. (with rights)(a)........ 12,387
162 Guidant Corp. .................................... 8,243
269 Human Genome Sciences, Inc. (with rights)(a)...... 3,742
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
HEALTH CARE -- (CONTINUED)
267 McKesson Corp. ................................... $ 8,067
126 Medicines Co.(a).................................. 3,347
375 Millennium Pharmaceuticals, Inc. (with
rights)(a)...................................... 5,972
52 Neurocrine Biosciences, Inc.(a)................... 2,430
105 NPS Pharmaceuticals, Inc.(a)...................... 2,773
31 Respironics, Inc.(a).............................. 1,272
384 Serono S.A. ADR................................... 6,611
167 Telik, Inc.(a).................................... 3,400
299 Viasys Healthcare, Inc. (with rights)(a).......... 5,398
---------
117,492
---------
SERVICES -- 12.9%
233 Accenture Ltd. Class A(a)......................... 5,452
187 Alliance Data Systems Corp.(a).................... 5,195
112 Apollo Group, Inc. Class A(a)..................... 7,134
918 Cendant Corp.(a).................................. 18,749
188 Comcast Corp. Class A(a).......................... 6,360
123 Education Management Corp.(a)..................... 7,784
284 InterActive Corp.(a).............................. 10,415
116 Moody's Corp. .................................... 6,714
240 Netscreen Technologies, Inc.(a)................... 6,375
1,440 Sirius Satellite Radio, Inc.(a)................... 3,384
158 Wynn Resorts Ltd.(a).............................. 3,181
168 XM Satellite Radio Holdings, Inc.(a).............. 3,398
---------
84,141
---------
TECHNOLOGY -- 22.6%
335 Altera Corp.(a)................................... 6,785
290 Amdocs Ltd.(a).................................... 6,221
163 American Power Conversion Corp. .................. 3,306
81 Analog Devices, Inc. (with rights)(a)............. 3,577
144 Cognos, Inc.(a)................................... 4,946
489 Corning, Inc.(a).................................. 5,370
286 Crown Castle International Corp.(a)............... 3,617
203 Dell, Inc. (with rights)(a)....................... 7,332
133 DENTSPLY International, Inc. ..................... 5,860
378 Epcos AG(a)....................................... 7,777
221 Fossil, Inc.(a)................................... 5,959
163 FuelCell Energy, Inc.(a).......................... 2,480
1,187 Gemstar-TV Guide International, Inc.(a)........... 5,569
82 Global Payments, Inc. (with rights)............... 3,394
600 MEMC Electronic Materials, Inc.(a)................ 6,716
569 Nextel Communications, Inc. Class A(a)............ 13,775
91 Palatin Technologies, Inc.(a)..................... 391
134 QUALCOMM, Inc. ................................... 6,374
171 Quantum Fuel Systems Technologies Worldwide,
Inc.(a)......................................... 1,558
309 STMicroelectronics N.V. .......................... 8,243
595 Taiwan Semiconductor Manufacturing Co. Ltd.
ADR(a).......................................... 6,576
2,724 Techtronic Industries Co. Ltd..................... 7,508
192 VeriSign, Inc. (with rights)(a)................... 3,047
251 Vodafone Group plc ADR............................ 5,298
223 Websense, Inc.(a)................................. 5,214
227 Yahoo!, Inc. (with rights)(a)..................... 9,907
---------
146,800
---------
</Table>
The accompanying notes are an integral part of this financial statement.
66
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ---------
COMMON STOCK -- (CONTINUED)
TRANSPORTATION -- 2.6%
128 Expeditors International of Washington, Inc. ..... $ 4,809
232 Ryanair Holdings plc ADR(a)....................... 11,943
---------
16,752
---------
Total common stock
(cost $530,237)................................. $ 639,461
=========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 10.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 8.2%
53,444 Boston Global Investment Trust.................... $ 53,444
---------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 2.3%
$ 2,158 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 2,158
5,680 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 5,680
7,050 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 7,050
---------
14,888
---------
Total short-term investments
(cost $68,332).................................. $ 68,332
=========
Total investments in securities
(cost $598,569) (b)............................. $ 707,793
=========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003 the cost of securities for federal income tax
purposes is $598,762 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $114,222
Unrealized depreciation........................ (5,191)
--------
Net unrealized appreciation.................... $109,031
========
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 14.80% of total net assets as of October 31, 2003.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
MARKET CONTRACT DELIVERY UNREALIZED
DESCRIPTION VALUE AMOUNT DATE APPRECIATION
- ----------- ------ -------- --------- --------------
Australian Dollar
(Buy) $84 $84 11/3/2003 $@@
Australian Dollar
(Buy) 24 24 11/5/2003 @@
Australian Dollar
(Buy) 94 93 11/6/2003 1
--
$1
==
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$598,569) @ ..................................... $ 707,793
Cash............................................... 1
Receivables:
Investment securities sold....................... 6,300
Fund shares sold................................. 942
Dividends and interest........................... 258
Other assets....................................... 44
---------
Total assets....................................... 715,338
---------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................ 53,444
Investment securities purchased.................. 9,322
Fund shares redeemed............................. 563
Payable for investment advisory and management
fees (Note 3).................................. 414
Payable for distribution fees (Note 3)........... 30
Accrued Expenses................................... 75
---------
Total liabilities.................................. 63,848
---------
Net assets......................................... $ 651,490
=========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.0001 per share; 19,250,000 shares authorized;
30,938 shares outstanding........................ $ 693,699
Accumulated undistributed net investment loss...... (1)
Accumulated net realized loss on investments and
foreign currency transactions.................... (151,432)
Unrealized appreciation of investments in
securities and the translations of assets and
liabilities denominated in foreign currency...... 109,224
---------
Net assets......................................... $ 651,490
=========
</Table>
@ Market value of securities on loan $51,513.
<Table>
Class A
Net asset value per share ($17,149 / 807 shares
outstanding)...................................... $21.25
------
Maximum offering price per share ($21.25 / 94.5%)... $22.49
======
Class B
Net asset value per share ($4,470 / 236 shares
outstanding)...................................... $18.91
======
Class C
Net asset value per share ($5,238 / 277 shares
outstanding)...................................... $18.91
------
Maximum offering price per share($18.91 / 99.0%).... $19.10
======
Class H
Net asset value per share ($45,121 / 2,376 shares
outstanding)...................................... $18.99
======
Class L
Net asset value per share ($517,892 / 24,241 shares
outstanding)...................................... $21.36
------
Maximum offering price per share ($21.36 /
95.25%)........................................... $22.43
======
Class M
Net asset value per share ($24,361 / 1,284 shares
outstanding)...................................... $18.97
======
Class N
Net asset value per share ($4,773 / 252 shares
outstanding)...................................... $18.97
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $21.42
======
Class Z
Net asset value per share ($32,485 / 1,465 shares
outstanding)...................................... $22.17
======
</Table>
@@Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
67
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- 8.1%
BASIC MATERIALS -- 0.7%
$ 210 Cypress Amax Minerals Co., 8.375%, 02/01/2023..... BBB- $ 207
506 Georgia Gulf Corp.,
7.625%, 11/15/2005.............................. BBB- 524
1,000 Methanex Corp.,
8.75%, 08/15/2012............................... BBB- 1,090
650 Potlatch Corp.,
12.50%, 12/01/2009.............................. Baa3* 767
--------
2,588
--------
CAPITAL GOODS -- 1.6%
385 Tyco International Group S.A., 3.125%,
01/15/2023...................................... BBB- 438
1,775 Tyco International Group S.A.,
6.375%, 02/15/2006.............................. BBB- 1,879
3,400 Tyco International Group S.A.,
6.75%, 02/15/2011............................... BBB- 3,617
--------
5,934
--------
CONSUMER CYCLICAL -- 0.1%
265 Toys 'R' Us, Inc.,
7.875%, 04/15/2013.............................. BBB- 293
--------
HEALTH CARE -- 1.2%
750 Bausch & Lomb, Inc.,
6.95%, 11/15/2007............................... BBB- 810
950 HCA, Inc.,
6.95%, 05/01/2012............................... BBB- 984
160 HCA, Inc.,
7.00%, 07/01/2007............................... BBB- 172
1,020 HCA, Inc.,
7.125%, 06/01/2006.............................. BBB- 1,092
350 HCA, Inc.,
7.50%, 11/15/2095............................... BBB- 326
320 Manor Care, Inc.,
8.00%, 03/01/2008............................... BBB 358
540 Watson Pharmaceuticals, Inc.,
7.125%, 05/15/2008.............................. BBB- 580
--------
4,322
--------
SERVICES -- 0.9%
900 American Greetings Corp.,
6.10%, 08/01/2028............................... BBB- 914
1,400 Hilton Hotels Corp.,
7.625%, 05/15/2008.............................. BBB- 1,542
525 Hilton Hotels Corp.,
7.625%, 12/01/2012.............................. BBB- 581
125 Lenfest Communications, Inc.,
10.50%, 06/15/2006.............................. BBB 146
175 Quebecor World (USA), Inc.,
7.75%, 02/15/2009............................... BBB- 183
--------
3,366
--------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
TECHNOLOGY -- 2.0%
$ 1,415 Intelsat Ltd.,
6.50%, 11/01/2013(g)............................ BBB+ $ 1,411
720 Rogers Cable, Inc.,
6.25%, 06/15/2013............................... BBB- 720
2,800 Rogers Cable, Inc.,
8.75%, 05/01/2032............................... BBB- 3,087
1,880 Telus Corp.,
8.00%, 06/01/2011............................... BBB 2,161
@@ VoiceStream Wireless Corp.,
10.375%, 11/15/2009(e).......................... BBB+ @@
--------
7,379
--------
TRANSPORTATION -- 0.3%
850 Delta Air Lines, Inc.,
7.57%, 05/18/2012............................... A 875
--------
UTILITIES -- 1.3%
1,130 Centerpoint Energy Resources Corp.,
7.875%, 04/01/2013(g)........................... BBB 1,284
875 Centerpoint Energy, Inc.,
6.85%, 06/01/2015(g)............................ BBB- 882
125 El Paso Electric Co.,
9.40%, Ser E 05/01/2011......................... BBB- 146
125 Reliant Energy Resources,
7.75%, 02/15/2011............................... BBB 149
1,335 Westar Energy, Inc.,
8.50%, 07/01/2022............................... BBB- 1,387
800 Western Resources, Inc.,
7.65%, 04/15/2023............................... BBB- 830
--------
4,678
--------
Total corporate bonds: investment grade
(cost $27,411).................................. $ 29,435
========
CORPORATE BONDS: NON-INVESTMENT GRADE -- 86.0%
BASIC MATERIALS -- 11.4%
2,300 Abitibi-Consolidated Finance L.P.,
7.875%, 08/01/2009.............................. BB+ 2,430
475 Abitibi-Consolidated, Inc.,
8.85%, 08/01/2030............................... BB+ 490
775 Airgas, Inc.,
9.125%, 10/01/2011.............................. B+ 866
2,340 AK Steel Corp.,
7.875%, 02/15/2009.............................. B+ 1,638
130 ARCO Chemical Co.,
9.80%, 02/01/2020............................... BB- 116
1,425 Ball Corp.,
6.875%, 12/15/2012(g)........................... BB 1,486
685 Boise Cascade Corp.,
7.35%, 02/01/2016............................... BB+ 693
1,375 Boise Cascade Corp.,
7.50%, 02/01/2008............................... BB+ 1,464
1,530 Bowater Canada Finance,
7.95%, 11/15/2011............................... BB+ 1,552
</Table>
The accompanying notes are an integral part of this financial statement.
68
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
BASIC MATERIALS -- (CONTINUED)
$ 640 Bowater, Inc.,
6.50%, 06/15/2013............................... BB+ $ 588
785 Cascades, Inc.,
7.25%, 02/15/2013(g)............................ BB+ 820
200 Cascades, Inc.,
7.25%, 02/15/2013............................... BB+ 209
505 Crown Cork & Seal Co., Inc.,
8.00%, 04/15/2023............................... B 439
1,076 Crown European Holdings S.A.,
9.50%, 03/01/2011............................... B+ 1,194
1,032 FMC Corp.,
10.25%, 11/01/2009.............................. BB+ 1,207
855 General Chemical Industrial Products, Inc.,
10.625%, 05/01/2009(a).......................... NR 257
400 Geon Co.,
6.875%, 12/15/2005.............................. BB- 380
263 Georgia Gulf Corp.,
10.375%, 11/01/2007............................. BB- 277
550 Georgia-Pacific Corp.,
7.25%, 06/01/2028............................... BB+ 501
1,175 Georgia-Pacific Corp.,
7.50%, 05/15/2006............................... BB+ 1,240
565 Georgia-Pacific Corp.,
8.875%, 05/15/2031.............................. BB+ 600
520 Georgia-Pacific Corp.,
9.875%, 11/01/2021.............................. BB+ 538
600 Hercules, Inc.,
11.125%, 11/15/2007............................. BB- 696
260 Hercules, Inc.,
6.60%, 08/01/2027............................... BB 264
150 Huntsman ICI Chemicals, Inc. (Euro),
10.125%, 07/01/2009............................. CCC+ 152
1,120 IMC Global, Inc.,
11.25%, Ser B 06/01/2011........................ B+ 1,156
300 Jefferson Smurfit Corp.,
7.50%, 06/01/2013............................... B 306
275 Jefferson Smurfit Corp.,
8.25%, 10/01/2012............................... B 289
415 Kappa Beheer B.V. (Euro),
10.625%, 07/15/2009............................. B 516
720 Longview Fibre Co.,
10.00%, 01/15/2009.............................. B+ 814
535 Lyondell Chemical Co.,
9.625%, Ser A 05/01/2007........................ BB- 543
1,550 Lyondell Chemical Co.,
9.875%, Ser B 05/01/2007........................ BB- 1,573
1,760 Nalco Co.,
8.875%, 11/15/2013(g)........................... B 1,830
240 Norampac, Inc.,
6.75%, 06/01/2013(g)............................ BB+ 250
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
BASIC MATERIALS -- (CONTINUED)
$ 180 Norske Skog Canada, Inc.,
8.625%, Ser D 06/15/2011........................ BB $ 185
265 Oregon Steel Mills, Inc.,
10.00%, 07/15/2009.............................. B 217
380 Owens-Brockway Glass Container,
7.75%, 05/15/2011............................... BB 401
3,295 Owens-Brockway Glass Container,
8.875%, 02/15/2009.............................. BB 3,575
390 Pacifica Papers, Inc.,
10.00%, 03/15/2009.............................. BB 413
780 Peabody Energy Corp.,
6.875%, 03/15/2013.............................. BB- 821
905 Plastipak Holdings, Inc.,
10.75%, 09/01/2011.............................. B+ 1,000
715 PolyOne Corp.,
8.875%, 05/01/2012.............................. BB- 597
115 PolyOne Corp.,
10.625%, 05/15/2010............................. BB- 106
850 Rhodia S.A.,
8.875%, 06/01/2011(g)........................... B 757
2,250 Rhodia S.A., (Euro),
9.25%, 06/01/2011(g)............................ B 2,204
133 Silgan Holdings, Inc.,
9.00%, 06/01/2009............................... B+ 137
810 Stone Container Corp.,
8.375%, 07/01/2012.............................. B 855
1,900 Stone Container Corp.,
9.75%, 02/01/2011............................... B 2,071
645 United States Steel LLC.,
10.75%, 08/01/2008.............................. BB- 708
--------
41,421
--------
CAPITAL GOODS -- 2.8%
1,699 AGCO Corp.,
9.50%, 05/01/2008............................... BB 1,852
350 American Standard, Inc.,
7.375%, 02/01/2008.............................. BB+ 386
985 Briggs & Stratton Corp.,
8.875%, 03/15/2011.............................. BB+ 1,128
340 Cummins, Inc.,
6.75%, 02/15/2027............................... BB+ 352
525 Cummins, Inc.,
7.125%, 03/01/2028.............................. BB+ 488
254 Flowserve Finance B.V., Inc. (Euro),
12.25%, 08/15/2010.............................. B 334
350 Hasbro, Inc.,
6.60%, 07/15/2028............................... BB 319
425 Jorgensen (Earle M.) Co.,
9.75%, 06/01/2012............................... B- 461
200 Joy Global, Inc.,
8.75%, Ser B 03/15/2012......................... B+ 221
</Table>
The accompanying notes are an integral part of this financial statement.
69
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
CAPITAL GOODS -- (CONTINUED)
$ 240 Rexnord Corp.,
10.125%, 12/15/2012............................. B- $ 266
250 Sequa Corp.,
8.875%, Ser B 04/01/2008........................ BB- 273
425 SPX Corp.,
6.25%, 06/15/2011............................... BB+ 426
240 TD Funding Corp.,
8.375%, 07/15/2011(g)........................... B- 255
675 Terex Corp.,
10.375%, Ser B 04/01/2011....................... B 761
380 Universal Compression, Inc.,
7.25%, 05/15/2010............................... B+ 395
400 Xerox Corp.,
7.125%, 06/15/2010.............................. B+ 408
1,120 Xerox Corp.,
7.625%, 06/15/2013.............................. B+ 1,142
570 Xerox Corp.,
9.75% 01/15/2009................................ B+ 646
--------
10,113
--------
CONSUMER CYCLICAL -- 10.7%
1,610 Ahold Finance USA, Inc.,
8.25%, 07/15/2010............................... B+ 1,735
550 AutoNation, Inc.,
9.00%, 08/01/2008............................... BB+ 627
155 B & G Foods, Inc.,
9.625%, Ser D 08/01/2007........................ B- 159
900 Champion Home Builders Co.,
11.25%, 04/15/2007.............................. B- 932
610 Collins & Aikman Floorcovering, Inc.,
9.75%, Ser B 02/15/2010......................... B 656
1,160 D.R. Horton, Inc.,
6.875%, 05/01/2013.............................. BB 1,221
1,320 Dana Corp.,
6.50%, 03/15/2008............................... BB 1,307
1,100 Dana Corp.,
7.00%, 03/01/2029............................... BB 976
600 Dana Credit Corp.,
8.375%, 08/15/2007(g)........................... BB 623
1,120 Delhaize America, Inc.,
8.125%, 04/15/2011.............................. BB+ 1,236
400 Delhaize America, Inc.,
9.00%, 04/15/2031............................... BB+ 451
255 Dillard's, Inc.,
7.13%, 08/01/2018............................... BB 237
440 Dillard's, Inc.,
7.375%, 06/01/2006.............................. BB 451
2,145 Group 1 Automotive, Inc.,
8.25%, 08/15/2013(g)............................ B+ 2,327
500 Ingles Markets, Inc.,
8.875%, 12/01/2011.............................. B+ 481
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CONSUMER CYCLICAL -- (CONTINUED)
$ 420 Integrated Electrical Services, Inc.,
9.375%, Ser C 02/01/2009........................ B+ $ 441
220 Kaufman & Broad Home Corp.,
7.75%, 10/15/2004............................... BB+ 231
1,050 KB Home,
9.50%, 02/15/2011............................... BB- 1,166
1,200 L-3 Communications Corp.,
7.625%, 06/15/2012.............................. BB- 1,308
935 Millennium America, Inc.,
7.00%, 11/15/2006............................... BB- 919
718 Millennium America, Inc.,
7.625%, 11/15/2026.............................. BB- 614
825 Moore North America Finance, Inc.,
7.875%, 01/15/2011(g)........................... BB- 891
594 Navistar International Corp.,
9.375%, Ser B 06/01/2006........................ BB- 650
1,100 Penney (J.C.) Co., Inc.,
8.125%, 04/01/2027.............................. BB+ 1,144
1,045 Penney (J.C.) Co., Inc.,
8.25%, 08/15/2022............................... BB+ 1,076
2,355 Perry Ellis International, Inc.,
8.875%, 09/15/2013(g)........................... B- 2,443
670 Phillips Van-Heusen Corp.,
7.75%, 11/15/2023............................... BB 663
1,150 Saks, Inc.,
7.50%, 12/01/2010............................... BB 1,254
2,000 Schuler Homes, Inc.,
9.375%, 07/15/2009.............................. BB 2,243
910 Scotts Company, Inc.,
6.625%, 11/15/2013(g)........................... B+ 921
3,300 Sonic Automotive, Inc.,
8.625%, 08/15/2013(g)........................... B+ 3,490
660 Toll Corp.,
8.00%, 05/01/2009............................... BB+ 693
600 Toll Corp.,
8.25%, 12/01/2011............................... BB+ 666
890 TRW Automotive, Inc.,
9.375%, 02/15/2013(g)........................... B+ 1,010
860 United Auto Group, Inc.,
9.625%, 03/15/2012.............................. B 950
450 United Components, Inc.,
9.375%, 06/15/2013(g)........................... B 461
475 Warnaco, Inc.,
8.875%, 06/15/2013(g)........................... B 508
1,500 Yum! Brands, Inc.,
7.70%, 07/01/2012............................... BB+ 1,691
--------
38,852
--------
CONSUMER STAPLES -- 2.5%
623 Armkel LLC,
9.50%, 08/15/2009............................... B 688
520 Canandaigua Brands, Inc.,
8.625%, 08/01/2006.............................. BB 573
</Table>
The accompanying notes are an integral part of this financial statement.
70
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
CONSUMER STAPLES -- (CONTINUED)
$ 460 Del Monte Corp.,
8.625%, 12/15/2012(g)........................... B $ 508
890 Dole Foods Co.,
7.25%, 06/15/2010............................... BB- 908
350 Dole Foods Co.,
8.625%, 05/01/2009.............................. BB- 378
1,350 Johnsondiversey, Inc.,
9.625%, Ser B 05/15/2012........................ B 1,492
215 Remy Cointreau S.A., Inc.(Euro),
6.50%, 07/01/2010(g)............................ BB 255
160 Smithfield Foods, Inc.,
7.75%, 05/15/2013............................... BB 173
730 Smithfield Foods, Inc.,
8.00%, Ser B 10/15/2009......................... Ba2* 803
1,725 Tembec Industries, Inc.,
7.75%, 03/15/2012............................... BB 1,600
950 Tembec Industries, Inc.,
8.50%, 02/01/2011............................... BB 917
750 Tembec Industries, Inc.,
8.625%, 06/30/2009.............................. BB 731
--------
9,026
--------
ENERGY -- 5.5%
555 Chesapeake Energy Corp.,
7.50%, 09/15/2013(g)............................ BB- 597
425 Clark R&M, Inc.,
8.625%, 08/15/2008.............................. Ba3* 440
1,630 CONSOL Energy, Inc.,
7.875%, 03/01/2012.............................. BB+ 1,677
1,100 Forest Oil Corp.,
8.00%, 06/15/2008............................... BB 1,177
870 Gulfterra Energy Partners, Inc.,
6.25%, 06/01/2010(g)............................ BB 874
195 Houston Exploration Co.,
7.00%, 06/15/2013(g)............................ B+ 197
175 Key Energy Services, Inc.,
6.375%, 05/01/2013.............................. BB 176
820 Key Energy Services, Inc.,
8.375%, Ser C 03/01/2008........................ BB 884
845 Magnum Hunter Resources, Inc.,
9.60%, 03/15/2012............................... B+ 942
1,060 Newpark Resources, Inc.,
8.625%, Ser B 12/15/2007........................ B+ 1,094
625 Nuevo Energy Co.,
9.375%, Ser B 10/01/2010........................ B 681
40 Nuevo Energy Co.,
9.50%, Ser B 06/01/2008......................... B 42
1,475 Pioneer Natural Resources Co.,
6.50%, 01/15/2008............................... BB+ 1,584
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
ENERGY -- (CONTINUED)
$ 950 Pioneer Natural Resources Co.,
7.20%, 01/15/2028............................... BB+ $ 990
700 Plains E&P Company, Inc.,
8.75%, 07/01/2012............................... B 763
1,018 Port Arthur Finance Corp.,
12.50%, 01/15/2009.............................. BB 1,196
180 Premcor Refining Group, Inc.,
9.25%, 02/01/2010............................... BB- 201
400 Star Gas Partners, Inc.,
10.25%, 02/15/2013.............................. B 430
1,640 Tesoro Petroleum Corp.,
8.00%, 04/15/2008............................... BB 1,738
240 Tom Brown, Inc.,
7.25%, 09/15/2013............................... BB- 251
285 Vintage Petroleum, Inc.,
8.25%, 05/1/2012................................ BB- 312
150 Westport Resources Corp.,
8.25%, 11/01/2011(g)............................ B+ 165
2,035 Williams Companies, Inc.,
8.625%, 06/01/2010.............................. B+ 2,228
1,500 Williams Companies, Inc.,
8.75%, 03/15/2032............................... B+ 1,568
--------
20,207
--------
FINANCE -- 4.8%
1,300 Brazil (Fed Republic of),
8.875%, Ser B 04/15/2024........................ B+ 1,102
900 Brazil (Fed Republic of),
12.75%, 01/15/2020.............................. B+ 1,013
1,125 BSN Glasspack (Euro),
9.25%, 08/01/2009(g)............................ B- 1,367
1,650 Burns Philip Capital Property Ltd.,
9.75%, 07/15/2012(g)............................ B- 1,683
1,325 Columbia (Republic of),
10.00%, 01/23/2012.............................. BB 1,391
435 Forest City Enterprises, Inc.,
7.625%, 06/1/2015............................... BB- 452
35 Host Marriott LP,
7.125%, 11/01/2013(g)........................... B+ 35
400 Interpool, Inc.,
7.20%, 08/01/2007............................... BB- 372
75 Interpool, Inc.,
7.35%, 08/01/2007............................... BB- 70
2,000 IPC Acquisition Corp.,
11.50%, 12/15/2009.............................. B- 2,093
1,490 LNR Property Corp.,
7.625%, 07/15/2013(g)........................... B+ 1,535
75 RFS Partnership LP,
9.75%, 03/01/2012............................... B- 80
1,090 Senior Housing Properties Trust,
7.875%, 04/15/2015.............................. BB+ 1,147
1,000 United Rentals North America, Inc.,
7.75%, 11/15/2013(g)............................ B+ 997
</Table>
The accompanying notes are an integral part of this financial statement.
71
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 1,650 United Rentals North America, Inc.,
9.25%, 01/15/2009............................... B+ $ 1,737
485 United Rentals North America, Inc.,
10.75%, Ser B 04/15/2008........................ BB- 544
1,100 Venezuela (Republic of),
9.25%, 09/15/2027............................... B- 885
605 Ventas Realty L.P., Inc.,
8.75%, 05/01/2009............................... BB- 665
225 Western Financial Bank, 9.625%, 05/15/2012........ BB- 246
--------
17,414
--------
HEALTH CARE -- 2.2%
270 Hanger Orthopedic Group, Inc.,
10.375%, 02/15/2009............................. B- 305
470 Medex, Inc.,
8.875%, 05/15/2013(g)........................... B- 505
320 Omnicare, Inc.,
6.125%, 06/01/2013.............................. BB+ 317
1,500 Province Healthcare Co.,
7.50%, 06/01/2013............................... B- 1,500
420 Select Medical Corp.,
7.50%, 08/01/2013(g)............................ B 439
1,100 Select Medical Corp.,
9.50%, 06/15/2009............................... B 1,204
475 Tenet Healthcare Corp.,
6.375%, 12/01/2011.............................. BB- 441
1,600 Tenet Healthcare Corp.,
6.50%, 06/01/2012............................... BB- 1,484
1,175 Tenet Healthcare Corp.,
7.375%, 02/01/2013.............................. BB- 1,140
580 United Surgical Partners International, Inc.,
10.00%, 12/15/2011.............................. B 641
--------
7,976
--------
SERVICES -- 15.9%
750 AdvancePCS,
8.50%, 04/01/2008............................... BB 821
345 Allied Waste North America, Inc.,
7.625%, Ser B 01/01/2006........................ BB- 365
400 Allied Waste North America, Inc.,
7.875%, 04/15/2013.............................. BB- 429
660 Allied Waste North America, Inc.,
7.875%, Ser B 01/01/2009........................ BB- 690
1,900 Allied Waste North America, Inc.,
8.875%, Ser B 04/01/2008........................ BB- 2,100
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
SERVICES -- (CONTINUED)
$ 290 Allied Waste North America, Inc.,
9.25%, Ser B 09/01/2012......................... BB- $ 326
1,365 Aztar Corp.,
8.875%, 05/15/2007.............................. B+ 1,426
485 Boyd Gaming Corp.,
9.25%, 08/01/2009............................... BB- 545
460 Browning-Ferris Industries, Inc.,
6.375%, 01/15/2008.............................. BB- 451
1,305 Browning-Ferris Industries, Inc.,
7.40%, 09/15/2035............................... BB- 1,214
500 Browning-Ferris Industries, Inc.,
7.875%, 03/15/2005.............................. BB- 521
1,355 Canwest Media, Inc.,
7.625%, 04/15/2013.............................. B- 1,480
225 CBD Media/CBD Finance, Inc.,
8.625%, 06/01/2011(g)........................... B- 241
650 CF Cable TV, Inc.,
9.125%, 07/15/2007.............................. BB- 687
500 CSC Holdings, Inc.,
7.625% Ser B 04/01/2011......................... BB- 510
650 CSC Holdings, Inc.,
8.125%, Ser B 07/15/2009........................ BB- 676
1,500 CSC Holdings, Inc.,
8.125%, Ser B 08/15/2009........................ BB- 1,560
1,070 Dex Media West LLC, Inc.,
9.875%, 08/15/2013(g)........................... B 1,217
1,750 Echostar DBS Corp.,
5.75%, 10/01/2008(g)............................ BB- 1,743
3,110 Felcor Lodging L.P.,
9.50%, 09/15/2008............................... B 3,343
800 Fresenius Finance BV (Euro),
7.75%, 04/30/2009(g)............................ BB+ 990
2,325 HMH Properties, Inc.,
7.875%, Ser B 08/01/2008........................ B+ 2,401
340 HMH Properties, Inc.,
8.45%, Ser C 12/01/2008......................... B+ 354
1,700 Hollinger International Publishing, Inc.,
9.00%, 12/15/2010............................... B 1,802
300 Host Marriott LP,
9.25%, 10/01/2007............................... B+ 331
790 Intrawest Corp.,
7.50%, 10/15/2013(g)............................ B+ 792
555 Iron Mountain, Inc.,
7.75%, 01/15/2015............................... B 593
3,085 John Q. Hammons Hotels, Inc.,
8.875%, Ser B 05/15/2012........................ B 3,363
580 Lamar Media Corp.,
7.25%, 01/01/2013............................... B 610
600 Mandalay Resort Group,
7.625%, 07/15/2013.............................. BB- 630
1,180 Mandalay Resort Group,
9.50%, 08/01/2008............................... BB+ 1,363
</Table>
The accompanying notes are an integral part of this financial statement.
72
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 800 MGM Mirage, Inc.,
6.875%, 02/06/2008.............................. BB+ $ 843
950 MGM Mirage, Inc.,
8.375%, 02/01/2011.............................. BB- 1,059
1,660 Mirage Resorts, Inc.,
7.25%, 10/15/2006............................... BB+ 1,772
745 Mohegan Tribal Gaming Authority,
8.125%, 01/01/2006.............................. BB 809
1,000 Park Place Entertainment Corp.,
7.50%, 09/01/2009............................... BB+ 1,090
760 Park Place Entertainment Corp.,
8.125%, 05/15/2011.............................. BB- 830
450 Park Place Entertainment Corp.,
9.375%, 02/15/2007.............................. BB- 506
175 Primedia, Inc.,
7.625%, 04/01/2008.............................. B 174
700 Primedia, Inc.,
8.00%, 05/15/2013(g)............................ B 712
1,545 Quebecor Media, Inc.,
11.125%, 07/15/2011............................. B 1,777
420 R.H. Donnelley Financial Corp.,
8.875%, 12/15/2010(g)........................... B+ 471
2,420 Service Corp. International,
6.50%, 03/15/2008............................... BB- 2,426
1,270 Service Corp. International,
7.70%, 04/15/2009............................... BB- 1,318
300 Service Corp. International,
7.875%, 02/01/2013.............................. BB- 293
900 Six Flags, Inc.,
8.875%, 02/01/2010.............................. B- 855
200 Six Flags, Inc.,
9.50%, 02/01/2009............................... B- 196
2,300 Starwood Hotels & Resorts Worldwide, Inc.,
7.375%, 05/01/2007.............................. BB+ 2,478
650 Starwood Hotels & Resorts Worldwide, Inc.,
7.875%, 05/01/2012.............................. BB+ 718
1,105 Stewart Enterprises, Inc.,
10.75%, 07/01/2008.............................. B+ 1,246
500 Sun Media Corp.,
7.625%, 02/15/2013.............................. B 535
900 Unisys Corp.,
7.25%, 01/15/2005............................... BB+ 941
450 Unisys Corp.,
7.875%, 04/01/2008.............................. BB+ 469
460 Venetian Casino Resort LLC,
11.00%, 06/15/2010.............................. B- 531
1,900 Vivendi Universal S.A.,
6.25%, 07/15/2008(g)............................ BB 1,986
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
SERVICES -- (CONTINUED)
$ 490 Worldspan LP/Worldspan Financial Corp.,
9.625%, 06/15/2011(g)........................... B- $ 478
--------
58,087
--------
TECHNOLOGY -- 19.5%
730 ACC Escrow Corp.,
10.00%, 08/01/2011(g)........................... B- 796
420 Amkor Technologies, Inc.,
7.75%, 05/15/2013(g)............................ B 447
1,015 Avaya, Inc.,
11.125%, 04/01/2009............................. B+ 1,198
795 Bio-Rad Laboratories, Inc.,
7.50%, 08/15/2013(g)............................ BB- 837
750 British Sky Broadcasting Group plc,
8.20%, 07/15/2009............................... BB+ 874
995 Charter Communications Holdings,
9.625%, 11/15/2009.............................. CCC- 801
430 Charter Communications Holdings,
10.00%, 04/01/2009.............................. CCC- 357
1,755 Charter Communications Holdings,
10.00%, 05/15/2011.............................. CCC- 1,435
2,055 Charter Communications Holdings,
10.75%, 10/01/2009.............................. CCC- 1,736
1,300 Cincinnati Bell, Inc.,
8.375%, 01/15/2014(g)........................... B- 1,300
1,750 Corning, Inc.,
8.30%, 04/04/2025............................... Ba2* 1,851
675 DirecTV Holdings LLC,
8.375%, 03/15/2013.............................. B 759
785 DRS Technologies, Inc.,
6.875%, 11/01/2013(g)........................... B 789
1,364 EchoStar DBS Corp.,
9.125%, 01/15/2009.............................. BB- 1,534
1,525 EchoStar DBS Corp.,
9.375%, 02/01/2009.............................. BB- 1,613
1,540 Fimep S.A.,
10.50%, 02/15/2013.............................. B+ 1,794
720 Fisher Scientific International, Inc.,
8.125%, 05/01/2012.............................. B+ 774
660 Fisher Scientific International, Inc.,
8.0%, 09/01/2013(g)............................. B+ 709
6,475 Global Crossing Holdings Ltd.,
9.50%, 11/15/2009(a)(e)......................... NR 591
3,510 Global Crossing Holdings Ltd.,
9.625%, 05/15/2008(a)(e)........................ NR 320
520 KPNQwest N.V. (Euro),
7.125%, 06/01/2009(a)........................... NR 3
</Table>
The accompanying notes are an integral part of this financial statement.
73
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 3,385 KPNQwest N.V.,
8.125%, 06/01/2009(a)........................... NR @@
1,420 L-3 Communications Corp.,
6.125%, 07/15/2013.............................. BB- $ 1,406
3,330 Level 3 Communications, Inc.,
11.00%, 03/15/2008.............................. CC 3,230
825 Level 3 Communications, Inc. (Euro),
11.25%, 03/15/2010.............................. CC 901
250 Level 3 Communications, Inc.,
14.84%, 03/15/2010 (Zero coupon through
03/15/2005, thereafter 12.875%)(f).............. CC 204
700 Level 3 Financing, Inc.,
10.75%, 10/15/2011(g)........................... CCC- 728
1,400 Lucent Technologies, Inc.,
5.50%, 11/15/2008............................... B- 1,302
1,549 Lucent Technologies, Inc.,
6.45%, 03/15/2029............................... B- 1,197
392 Marconi Corp. plc,
8.00%, 04/30/2008............................... NR 384
266 Marconi Corp. plc,
10.00%, 10/31/2008.............................. NR 276
540 Mediacom LLC,
9.50%, 01/15/2013............................... B+ 513
3,465 Metromedia Fiber Network, Inc.,
10.00%, Ser B 11/15/2008(a)(e).................. NR 216
300 Metromedia Fiber Network, Inc. (Euro),
10.00%, 12/15/2009(a)(e)........................ NR 22
770 Metromedia Fiber Network, Inc.,
10.00%, 12/15/2009(a)(e)........................ NR 48
6,060 Nextel Communications, Inc.,
7.375%, 08/01/2015.............................. B+ 6,302
475 Nextel Communications, Inc.,
9.95%, 02/15/2008............................... B+ 499
5,150 Nortel Networks Corp.,
4.25%, Conv. 09/01/2008......................... B 4,854
455 Nortel Networks Corp.,
6.875%, 09/01/2023.............................. B 431
430 PanAmSat Corp.,
6.375%, 01/15/2008.............................. BB- 440
2,215 PanAmSat Corp.,
6.875%, 01/15/2028.............................. BB- 2,171
2,275 PanAmSat Corp.,
8.50%, 02/01/2012............................... B- 2,451
3,250 PerkinElmer, Inc.,
8.875%, 01/15/2013.............................. BB- 3,559
1,750 Qwest Capital Funding, Inc.,
7.25%, 02/15/2011............................... CCC+ 1,627
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
TECHNOLOGY -- (CONTINUED)
$ 1,200 Qwest Capital Funding, Inc.,
7.625%, 08/03/2021.............................. CCC+ $ 1,020
4,095 Qwest Corp.,
6.875%, 09/15/2033.............................. B- 3,655
1,390 Qwest Corp.,
7.25%, 10/15/2035............................... B- 1,286
745 Rayovac Corp.,
8.50%, 10/01/2013(g)............................ B- 775
5,195 RCN Corp.,
9.80%, Ser B 02/15/2008......................... CCC- 2,286
1,375 RCN Corp.,
11.125%, 10/15/2007............................. CCC- 626
2,200 Rogers Cantel, Inc.,
9.375%, 06/01/2008.............................. BB+ 2,302
200 Rogers Cantel, Inc.,
9.75%, 06/01/2016............................... BB+ 235
300 Rogers Wireless Communications, Inc.,
9.625%, 05/01/2011.............................. BB+ 348
1,200 Shaw Communications, Inc.,
8.25%, 04/11/2010............................... BB+ 1,326
625 Time Warner Telecom LLC, Inc.,
9.75%, 07/15/2008............................... CCC+ 641
635 US West Communications,
7.20%, 11/01/2004............................... B- 651
1,575 WorldCom, Inc. -- WorldCom Group,
7.50%, 05/15/2011(a)............................ NR 579
5,070 WorldCom, Inc. -- WorldCom Group,
8.25%, 05/15/2031(a)............................ NR 1,863
--------
70,872
--------
TRANSPORTATION -- 0.9%
825 CP Ships Ltd.,
10.375%, 07/15/2012............................. BB+ 949
100 Delta Air Lines, Inc.,
7.90%, 12/15/2009............................... B 81
1,580 Delta Air Lines, Inc.,
8.30%, 12/15/2029............................... B 1,047
640 Delta Air Lines, Inc.,
9.00%, 05/15/2016............................... B 456
300 Teekay Shipping Corp.,
8.32%, 02/01/2008............................... BB+ 324
340 Wabtec Corp.,
6.875%, 07/31/2013(g)........................... BB 349
--------
3,206
--------
UTILITIES -- 9.8%
3,210 AES Corp.,
8.75%, 05/15/2013(g)............................ B+ 3,427
1,310 Calpine Canada Energy Financial,
8.50%, 05/01/2008............................... CCC+ 963
</Table>
The accompanying notes are an integral part of this financial statement.
74
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
UTILITIES -- (CONTINUED)
$ 2,030 Calpine Corp.,
8.50%, 02/15/2011............................... CCC+ $ 1,451
150 Calpine Corp.,
8.625%, 08/15/2010.............................. CCC+ 107
2,420 Calpine Corp.,
8.75%, 07/15/2013(g)............................ B 2,214
350 CMS Energy Corp.,
7.50%, 01/15/2009............................... B+ 356
910 CMS Energy Corp.,
7.75%, 08/01/2010(g)............................ B+ 926
80 CMS Energy Corp.,
8.50%, 04/15/2011............................... B+ 84
975 CMS Energy Corp.,
8.90%, 07/15/2008............................... B+ 1,029
1,985 Dynegy Holdings, Inc.,
10.125%, 07/15/2013(g).......................... B- 2,154
1,700 El Paso Corp.,
7.875% 06/15/2012............................... B 1,449
500 El Paso Natural Gas Co.,
6.75%, 11/15/2003............................... B+ 500
5,845 El Paso Natural Gas Co.,
7.625%, Ser A 08/01/2010........................ B+ 5,787
865 Illinois Power Co.,
7.50%, 06/15/2009............................... B 939
1,370 Illinois Power Co.,
7.50%, 07/15/2025............................... B 1,336
785 Illinois Power Co.,
11.50%, 12/15/2010.............................. B 938
600 Kansas Gas & Electric Co.,
6.50%, 08/01/2005............................... BB+ 632
425 Kansas Gas & Electric Co.,
7.60%, 12/15/2003............................... BB+ 423
665 Kansas Gas & Electric Co.,
8.29%, 03/29/2016............................... BB- 696
400 Nevada Power Co.,
8.50%, Ser Z 01/01/2023......................... BB 401
870 PG&E Corp.,
6.875%, 07/15/2008(g)........................... NR 922
730 Sierra Pacific Power Co.,
8.00%, Ser A 06/01/2008......................... BB 766
575 Sierra Pacific Resources,
6.20%, 04/15/2004............................... BB 578
625 Southern Star Central Corp.,
8.50%, 08/01/2010(g)............................ B+ 662
855 TECO Energy, Inc.,
7.20%, 05/01/2011............................... BB+ 861
590 TECO Energy, Inc.,
7.50%, 06/15/2010............................... BB+ 606
320 TECO Energy, Inc.,
10.50%, 12/01/2007.............................. BB+ 361
1,300 Tennessee Gas Pipeline Co.,
7.50%, 04/01/2017............................... B+ 1,293
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
UTILITIES -- (CONTINUED)
$ 2,830 Transcontinental Gas Pipeline Corp.,
6.125%, 01/15/2005.............................. B+ $ 2,880
800 Transcontinental Gas Pipeline Corp.,
8.875% 07/15/2012............................... B+ 936
--------
35,677
--------
Total corporate bonds: non-investment grade
(cost $306,693)................................. $312,851
========
<Caption>
SHARES
- ---------
COMMON STOCK -- 0.4%
BASIC MATERIALS -- 0.0%
1 Solutia (Warrants)(a)(e)....................................... $ 19
--------
CONSUMER CYCLICAL -- 0.0%
1 Hosiery Corp. of America, Inc.
Class A(a)(e)................................................ @@
--------
SERVICES -- 0.0%
4 Splitrock Service (Warrants)(a)(e)............................. 38
--------
TECHNOLOGY -- 0.4%
54 Marconi Corp. plc ADR(a)....................................... 995
1 Minorplanet Systems USA, Inc. (Warrants)(a)(e)................. @@
13 Powertel, Inc. (Warrants)(a)(e)................................ 308
11 Telus Corp. (Warrants)(a)(e)................................... 33
--------
1,336
--------
Total common stock
(cost $781).................................................. $ 1,393
========
PREFERRED STOCKS -- 0.3%
CAPITAL GOODS -- 0.0%
3 Xerox Corp., Conv.,
7.50%(g)..................................................... $ 181
--------
SERVICES -- 0.3%
8 CSC Holdings, Inc.,
11.125%...................................................... 786
--------
TECHNOLOGY -- 0.0%
20 Adelphia Communications Corp.,
7.50%, Conv. Ser F(a)(e)..................................... 40
15 McLeod USA, Inc. Conv. Pfd.
2.50% Ser A.................................................. 91
--------
131
--------
Total preferred stocks (cost $1,486)........................... $ 1,098
========
Total long-term investments (cost $336,371).................... $344,777
========
</Table>
The accompanying notes are an integral part of this financial statement.
75
THE HARTFORD HIGH YIELD FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 14.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 12.1%
44,016 Navigator Prime Portfolio...................................... $ 44,016
--------
FINANCE -- 2.4%
$ 2,068 Banc One Joint Repurchase Agreement,
0.97%, 11/03/2003 (Note 2f).................................. $ 2,068
--------
3,265 BNP Paribas Joint Repurchase Agreement,
0.99%, 11/03/2003 (Note 2f).................................. 3,265
--------
3,265 UBS Warburg Joint Repurchase Agreement,
0.98%, 11/03/2003 (Note 2f).................................. 3,265
--------
8,598
--------
Total short-term investments (cost $52,614).................... $ 52,614
========
Total investments in securities (cost. $388,985)(b) $397,391
========
</Table>
(a) Presently non-income producing. For long-term debt securities,
items identified are in default as to payment of interest and/or principal.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $388,985 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $ 23,370
Unrealized depreciation........................ (14,964)
--------
Net unrealized appreciation.................... $ 8,406
========
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 14.35% of total net asset as of October 31, 2003.
(e) Securities issued within the terms of a private placement
memorandum, exempt from registration under Section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". These investments have been identified by
portfolio management as illiquid securities:
<Table>
<Caption>
PERIOD
ACQUIRED SHARES/PAR SECURITY COST BASIS
-------- ---------- -------- ----------
2002 20 Adelphia Communications
Corp., 7.50%, Conv. Pfd $ 488
1999 3,510 Global Crossing
Holdings, Ltd due 2008 1,258
1999 6,475 Global Crossing
Holdings, Ltd due 2009 3,575
1994 1 Hosiery Corp. of
America, Inc. Class A -
144A 21
2001 300 Metromedia Fiber
Network, Inc. due 2009 267
1998 3,465 Metromedia Fiber
Network, Inc. due 2008 3,145
2001 770 Metromedia Fiber
Network, Inc. due 2009 417
1997 1 Minorplanet Systems USA
(Warrants) - 144A 13
1997 13 Powertel, Inc.
(Warrants) - 144A 94
</Table>
<Table>
<Caption>
PERIOD
ACQUIRED SHARES/PAR SECURITY COST BASIS
-------- ---------- -------- ----------
1998 4 Splitrock Serivice
(Warrants) - 144A 46
1996 11 Telus Corp. (Warrants) -
144A 77
2003 1 Solutia (Warrants) @@
2003 @@ VoiceStream Wireless
Corp. due 2009 @@
</Table>
The aggregate value of these securities at October 31, 2003, was
$1,636, which represents 0.45% of total net assets.
(f) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
(g) Securities sold within the terms of a private placement
memorandum, exempt from registration under Section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of Directors, these issues are determined to be liquid. The aggregate value
of these securities at October 31, 2003, was $58,858, which represents
16.19% of total net assets.
* Moody's Rating.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$388,985) @ ...................................... $397,391
Cash................................................ 7
Foreign currency on deposit with custodian (cost
$6,385)........................................... 6,533
Receivables:
Investment securities sold........................ 1,377
Fund shares sold.................................. 4,964
Dividends and interest............................ 7,439
Other assets........................................ 75
--------
Total assets........................................ 417,786
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 44,016
Investment securities purchased................... 9,498
Fund shares redeemed.............................. 286
Payable for investment advisory and management
fees (Note 3)................................... 225
Payable for distribution fees (Note 3)............ 29
Accrued Expenses.................................... 93
--------
Total liabilities................................... 54,147
--------
Net assets.......................................... $363,639
========
@ Market value of securities on loan $42,041.
</Table>
The accompanying notes are an integral part of this financial statement.
76
- --------------------------------------------------------------------------------
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 45,812
shares outstanding................................ $442,236
Accumulated undistributed net investment loss....... (521)
Accumulated net realized loss on investments and
foreign currency transactions..................... (86,634)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 8,558
--------
Net assets.......................................... $363,639
========
@ Market value of securities on loan $42,041.
</Table>
<Table>
Class A
Net asset value per share ($213,377 / 26,859 shares
outstanding)....................................... $7.94
-----
Maximum offering price per share($7.94 / 95.5%)...... $8.31
=====
Class B
Net asset value per share ($72,293 / 9,118 shares
outstanding)....................................... $7.93
=====
Class C
Net asset value per share ($77,968 / 9,835 shares
outstanding)....................................... $7.93
-----
(Maximum offering price per share ($7.93 / 99.0%).... $8.01
=====
Class Y
Net asset value per share ($1 / @@ shares
outstanding)....................................... $7.94
=====
@@ Due to the presentation of the financial statements in
thousands, the number or shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of this financial statement.
77
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- 0.5%
GENERAL OBLIGATIONS -- 0.5%
$150 Illinois (State of), 5.10%, General Obligation
Taxable Pension 06/01/2033...................... AA $ 136
-------
Total municipal bonds
(cost $149)..................................... $ 136
=======
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 8.8%
FINANCE -- 8.8%
35 AmeriCredit Automobile Receivables Trust,
8.40%, Ser 2002-1 Class E
08/06/2009(d)................................... BB $ 33
93 AQ Finance CEB Trust,
6.12%, Ser 2003-CE1A
08/25/2033(d)(f)................................ BBB 91
75 Citibank Credit Card Issuance Trust,
5.00%, Ser 2003-C4 Class C4
06/10/2015...................................... BBB 70
100 DLJ Mortgage Acceptance Corp.,
7.50%, Ser 1995-CF2 Class B1
12/17/2027(d)................................... AAA 100
200 First Union-Lehman Brothers-Bank of America,
6.56%, Ser 1998-C2 Class A2
11/18/2035...................................... AAA 223
100 Ford Credit Auto Owner Trust,
4.29%, Ser 2003-A Class C
11/15/2007...................................... BBB 100
200 General Electric Commercial Mortgage Corp.,
5.00%, Ser 2002-3A Class A2,
12/10/2037...................................... AAA 203
167 GMAC Commercial Mortgage Securities, Inc.,
3.34%, Ser 2003-C1 Class A1
05/10/2036...................................... AAA 161
43 Green Tree Financial Corp.,
7.30%, Ser 1995-9 Class A6
01/15/2026...................................... AAA 46
28 Green Tree Financial Corp.,
7.35%, Ser 1996-3 Class A5
05/15/2027...................................... AAA 30
186 J.P. Morgan Chase Commercial Mortgage Security
Corp.,
4.33% Ser 2002-C2 Class A1
12/12/2034...................................... AAA 188
193 J.P. Morgan Chase Commercial Mortgage Security
Corp.,
4.37% Ser 2002-CIB5 Class A1
10/12/2037...................................... Aaa* 196
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
FINANCE -- (CONTINUED)
$189 Morgan Stanley Dean Witter Capital I,
5.38%, Ser 2002-TOP7 Class A1
01/15/2039...................................... Aaa* $ 200
100 Navistar Financial Corp. Owner Trust,
3.08%, Ser 2003-A Class B
11/15/2009...................................... A 100
100 Residential Asset Mortgage Products, Inc.,
6.14%, Ser 2002-RS3 Class AI4
06/25/2032...................................... AAA 103
100 Residential Asset Mortgage Products, Inc.,
6.59%, Ser 2002-RZ2 Class A5
06/25/2032...................................... AAA 103
31 Salomon Smith Barney Auto Loan Trust, 8.00%,
Ser 2002-1 Class D
02/15/2009(d)................................... Ba2* 31
19 Soundview Home Equity Loan Trust, Inc.,
8.64%, Ser 2000-1 Class M1
05/25/2030...................................... AA 21
100 Wachovia Bank Commercial Mortgage Trust,
4.87%, Ser 2003-C3 Class A2
02/15/2035...................................... AAA 100
100 WFS Financial Owner Trust,
3.05%, Ser 2003-2 Class C
12/20/2010...................................... A 101
41 Whole Auto Loan Trust,
6.00%, Ser 2002-1 Class D
04/15/2009 (d).................................. BB 41
-------
2,241
-------
Total asset backed and commercial mortgage
securities
(cost $2,256)................................... $ 2,241
=======
CORPORATE BONDS: INVESTMENT GRADE -- 16.6%
BASIC MATERIALS -- 1.3%
75 Methanex Corp.,
7.75%, 08/15/2005............................... BBB- $ 79
100 Noranda, Inc.,
8.375%, 02/15/2011.............................. BBB- 117
100 Phelps Dodge Corp.,
9.50%, 06/01/2031............................... BBB- 129
-------
325
-------
</Table>
The accompanying notes are an integral part of this financial statement.
78
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CAPITAL GOODS -- 0.8%
$100 Bombardier, Inc.,
6.75%, 05/01/2012(d)............................ BBB- $ 106
100 Tyco International Group S.A.,
6.375%, 02/15/2006.............................. BBB- 106
-------
212
-------
CONSUMER CYCLICAL -- 0.7%
50 General Motors Corp.,
7.125%, 07/15/2013.............................. BBB 52
100 PHH Corp.,
6.00%, 03/01/2008............................... BBB+ 107
25 Toys 'R' Us, Inc.,
7.875%, 04/15/2013.............................. BBB- 28
-------
187
-------
ENERGY -- 0.7%
70 Pemex Project Funding Master Trust,
7.375%, 12/15/2014.............................. BBB- 74
100 Valero Energy Corp.,
7.50%, 04/15/2032............................... BBB 109
-------
183
-------
FINANCE -- 4.7%
150 Capital One Financial Corp.,
7.125%, 08/01/2008.............................. BB+ 162
100 Ford Motor Credit Co.,
6.50%, 01/25/2007............................... BBB 103
100 Household Finance Corp.,
7.00%, 05/15/2012............................... A 113
842 Queensland Treasury Corp. (Australian Dollar),
6.50%, 06/14/2005............................... AAA 606
200 UFJ Finance Aruba AEC,
6.75%, 07/15/2013............................... BBB- 209
-------
1,193
-------
HEALTH CARE -- 1.4%
15 Bausch & Lomb, Inc.,
6.95%, 11/15/2007............................... BBB- 16
53 Bausch & Lomb, Inc.,
7.125%, 08/01/2028.............................. BBB- 52
100 HCA, Inc.,
6.95%, 05/01/2012............................... BBB- 104
75 Manor Care, Inc.,
6.25%, 05/01/2013............................... BBB 77
100 Universal Health Services, Inc.,
6.75%, 11/15/2011............................... BBB 106
-------
355
-------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
SERVICES -- 2.0%
$ 10 American Greetings Corp.,
6.10%, 08/01/2028............................... BBB- $ 10
100 Comcast Cable Communications, Inc.,
6.75%, 01/30/2011............................... BBB 111
150 Hyatt Equities LLC,
6.875%, 06/15/2007(d)........................... BBB 159
100 Interactive Corp.,
7.00%, 01/15/2013............................... BBB- 110
100 News America Holdings, Inc.,
7.75%, 01/20/2024............................... BBB- 115
-------
505
-------
TECHNOLOGY -- 3.0%
100 AOL Time Warner, Inc.,
6.875%, 05/01/2012.............................. BBB+ 111
210 AT&T Wireless Services, Inc.,
8.125%, 05/01/2012.............................. BBB 243
100 France Telecom S.A.,
9.00%, 03/01/2011............................... BBB 121
150 Intelsat Ltd.,
6.50%, 11/01/2013(d)............................ BBB+ 149
100 Motorola, Inc.,
8.00%, 11/01/2011............................... BBB 116
20 Rogers Cable, Inc.,
6.25%, 06/15/2013............................... BBB- 20
-------
760
-------
TRANSPORTATION -- 0.4%
100 Delta Air Lines, Inc.,
7.11%, 09/18/2011............................... A 102
-------
UTILITIES -- 1.7%
60 Centerpoint Energy, Inc.,
5.875%, 06/01/2008(d)........................... BBB- 62
55 Centerpoint Energy, Inc.,
6.85%, 06/01/2015(d)............................ BBB- 55
100 FirstEnergy Corp.,
6.45%, Ser B 11/15/2011......................... BBB- 106
100 Texas-New Mexico Power Co.,
6.125%, 06/01/2008 (with rights)(d)............. BBB- 101
100 Western Resources, Inc.,
7.875%, 05/01/2007.............................. BBB- 113
-------
437
-------
Total corporate bonds: investment grade
(cost $3,925)................................... $ 4,259
=======
</Table>
The accompanying notes are an integral part of this financial statement.
79
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- 30.9%
BASIC MATERIALS -- 6.7%
$200 Abitibi-Consolidated, Inc.,.......................
6.00%, 06/20/2013 BB+ $ 187
100 AK Steel Corp.,...................................
7.75%, 06/15/2012 B+ 68
100 Boise Cascade Corp.,..............................
7.35%, 02/01/2016 BB+ 101
100 Bowater Canada Finance,...........................
7.95%, 11/15/2011 BB+ 101
100 Bowater, Inc.,....................................
6.50%, 06/15/2013 BB+ 92
100 Cascades, Inc.,...................................
7.25%, 02/15/2013 BB+ 104
70 Crown European Holdings S.A.,.....................
9.50%, 03/01/2011 B+ 78
40 Equistar Chemicals LP,............................
8.75%, 02/15/2009 BB- 40
75 FMC Corp.,........................................
10.25%, 11/01/2009 BB+ 88
100 Georgia-Pacific Corp.,............................
8.875%, 05/15/2031 BB+ 106
35 Jefferson Smurfit Corp.,..........................
7.50%, 06/01/2013 B 36
60 Lyondell Chemical Co.,............................
9.50%, 12/15/2008 BB- 60
15 Norampac, Inc.,...................................
6.75%, 06/01/2013(d) BB+ 16
30 Norske Skog Canada, Inc.,.........................
8.625%, Ser D 06/15/2011 BB 31
100 Nova Chemicals Corp.,.............................
7.00%, 05/15/2006 BB+ 104
20 Oregon Steel Mills, Inc.,.........................
10.00%, 07/15/2009 B 16
75 Owens-Brockway Glass. Containers,
8.75%, 11/15/2012 BB 82
55 Pacifica Papers, Inc.,............................
10.00%, 03/15/2009 BB 58
15 Peabody Energy Corp.,.............................
6.875%, 03/15/2013 BB- 16
75 Plastipak Holdings, Inc.,.........................
10.75%, 09/01/2011 B+ 83
70 PolyOne Corp.,....................................
8.875%, 05/01/2012 BB- 58
50 Potlatch Corp.,...................................
10.00%, 07/15/2011 BB- 56
95 Rhodia S.A.,......................................
8.875%, 06/01/2011(d) B 85
50 United States Steel LLC.,.........................
10.75%, 08/01/2008 BB- 55
-------
1,721
-------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CAPITAL GOODS -- 1.5%
$ 55 American Standard, Inc.,..........................
7.375%, 02/01/2008 BB+ $ 61
50 Cummins, Inc.,....................................
7.125%, 03/01/2028 BB+ 46
10 Rexnord Corp.,....................................
10.125%, 12/15/2012 B- 11
30 SPX Corp.,........................................
6.25%, 06/15/2011 BB+ 30
15 TD Funding Corp.,.................................
8.375%, 07/15/2011(d) B- 16
75 Terex Corp.,......................................
10.375%, Ser B 04/01/2011 B 85
25 Universal Compression, Inc.,......................
7.25%, 05/15/2010 B+ 26
100 Xerox Corp.,......................................
7.125%, 06/15/2010 B+ 102
-------
377
-------
CONSUMER CYCLICAL -- 4.0%
50 AutoNation, Inc.,.................................
9.00%, 08/01/2008 BB+ 57
50 Dana Corp.,.......................................
6.50%, 03/01/2009 BB 49
25 Dana Corp.,.......................................
6.50%, 03/15/2008 BB 25
20 Dana Corp.,.......................................
7.00%, 03/01/2029 BB 18
100 Delhaize America, Inc.,...........................
7.375%, 04/15/2006 BB+ 107
75 Ingles Markets, Inc.,.............................
8.875%, 12/01/2011 B+ 72
100 KB Home,..........................................
7.75%, 02/01/2010 BB- 105
50 Penney (J.C.) Co., Inc.,..........................
8.125%, 04/01/2027 BB+ 52
85 Penney (J.C.) Co., Inc.,..........................
8.25%, 08/15/2022 BB+ 88
75 Phillips Van-Heusen Corp.,........................
7.75%, 11/15/2023 BB 74
50 Saks, Inc.,.......................................
7.50%, 12/01/2010 BB 54
75 Schuler Homes, Inc.,..............................
9.375%, 07/15/2009 BB 84
100 Standard-Pacific Corp.,...........................
6.50%, 10/01/2008 BB 101
50 Toll Corp.,.......................................
8.00%, 05/01/2009 BB+ 53
25 TRW Automotive, Inc.,.............................
9.375%, 02/15/2013(d) B+ 28
25 United Components, Inc.,..........................
9.375%, 06/15/2013(d) B 26
30 Warnaco, Inc.,....................................
8.875%, 06/15/2013(d) B 32
-------
1,025
-------
</Table>
The accompanying notes are an integral part of this financial statement.
80
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
CONSUMER STAPLES -- 0.5%
$ 30 Del Monte Corp.,..................................
8.625%, 12/15/2012(d) B $ 33
40 Smithfield Foods, Inc.,...........................
7.75%, 05/15/2013 BB 43
50 Tembec Industries, Inc.,..........................
7.75%, 03/15/2012 BB 47
-------
123
-------
ENERGY -- 2.1%
30 Clark R&M, Inc.,..................................
8.625%, 08/15/2008 BB- 31
100 CONSOL Energy, Inc.,..............................
7.875%, 03/01/2012 BB+ 103
50 Gulfterra Energy Partners, Inc.,..................
6.25%, 06/01/2010(d) BB 50
45 Houston Exploration Co.,..........................
7.00%, 06/15/2013(d) B+ 46
30 Key Energy Services, Inc.,........................
6.375%, 05/01/2013 BB 30
46 Port Arthur Finance Corp.,........................
12.50%, 01/15/2009 BB 54
15 Premcor Refining Group, Inc.,.....................
9.25%, 02/01/2010 BB- 17
25 Tom Brown, Inc.,..................................
7.25%, 09/15/2013 BB- 26
50 Vintage Petroleum, Inc.,..........................
8.25%, 05/01/2012 BB- 55
50 Williams Companies, Inc.,.........................
8.625%, 06/01/2010 B+ 55
75 XTO Energy, Inc.,.................................
6.25%, 04/15/2013 BB 78
-------
545
-------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
FINANCE -- 3.1%
$100 Brazil (Republic of),.............................
2.06%, 04/15/2012 (f) B+ $ 84
50 Columbia (Republic of),...........................
10.00%, 01/23/2012 BB 52
60 Columbia (Republic of),...........................
10.75%, 01/15/2013 BB 66
40 Dominican Republic,...............................
9.04%, 01/23/2013 B- 32
21 Forest City Enterprises, Inc.,....................
7.625%, 06/01/2015 BB- 22
75 Interpool, Inc.,..................................
7.35%, 08/01/2007 BB- 70
75 IPC Acquisition Corp.,............................
11.50%, 12/15/2009 B- 78
100 LNR Property Corp.,...............................
7.625%, 07/15/2013(d) B+ 103
100 Peru (Republic of),...............................
4.50%, 03/07/2017 BB- 89
50 Philippines (Republic of),........................
10.625%, 03/16/2025 BB 54
70 United Rentals, Inc.,.............................
10.75%, Ser B 04/15/2008 BB- 79
100 Venezuela (Republic of),..........................
9.25%, 09/15/2027 B- 80
-------
809
-------
HEALTH CARE -- 0.6%
20 Omnicare, Inc.,...................................
6.125%, 06/01/2013 BB+ 20
60 Select Medical Corp.,.............................
9.50%, 06/15/2009 B 65
75 Tenet Healthcare Corp.,...........................
5.00%, 07/01/2007 BB- 70
-------
155
-------
SERVICES -- 4.6%
110 Allied Waste North America,. Inc.,
7.875%, Ser B 01/01/2009 BB- 115
40 American Greetings Corp.,.........................
11.75%, 07/15/2008 BB+ 46
75 Aztar Corp.,......................................
8.875%, 05/15/2007 B+ 78
15 CBD Media, Inc.,..................................
8.625%, 06/01/2011(d) B- 16
75 CSC Holdings, Inc.,...............................
7.875%, 12/15/2007 BB- 77
70 Echostar DBS Corp.,...............................
5.75%, 10/01/2008(d) BB- 70
100 HMH Properties, Inc.,.............................
7.875%, Ser B 08/01/2008 B+ 103
90 Hollinger International, Inc.,....................
9.00%, 12/15/2010 B 95
50 John Q. Hammons Hotels, Inc.,.....................
8.875%, Ser B 05/15/2012 B 55
30 Lamar Media Corp.,................................
7.25%, 01/01/2013 B 32
50 Primedia, Inc.,...................................
7.625%, 04/01/2008 B 50
50 Primedia, Inc.,...................................
8.00%, 05/15/2013(d) B 51
45 R.H. Donnelley Financial Corp.,...................
8.875%, 12/15/2010(d) B+ 50
50 Service Corp. International,......................
6.50%, 03/15/2008 BB- 50
100 Service Corp. International,......................
7.70%, 04/15/2009 BB- 104
75 Six Flags, Inc.,..................................
8.875%, 02/02/2010 B- 71
100 Starwood Hotels & Resorts. Worldwide, Inc.,
7.875%, 05/01/2012 BB+ 110
-------
1,173
-------
</Table>
The accompanying notes are an integral part of this financial statement.
81
THE HARTFORD INCOME FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- 4.3%
$ 45 Amkor Technology, Inc.,
7.75%, 05/15/2013(d)............................ B $ 48
50 Cincinnati Bell, Inc.,
8.375%, 01/15/2014(d)........................... B- 50
125 Crown Castle International Corp.,
10.75%, 08/01/2011.............................. CCC 140
30 DirecTV Holdings LLC,
8.375%, 03/15/2013.............................. B 34
60 Fimep S.A.,
10.50%, 02/15/2013.............................. B+ 70
75 Fisher Scientific International, Inc.,
8.125%, 05/01/2012.............................. B+ 81
95 L-3 Communications Corp.,
6.125%, 07/15/2013.............................. BB- 94
50 Mediacom LLC,
9.50%, 01/15/2013............................... B+ 47
200 Nextel Communications, Inc.,
7.375%, 08/01/2015.............................. B+ 208
50 PanAmSat Corp.,
6.875%, 01/15/2028.............................. BB- 49
95 PerkinElmer, Inc.,
8.875%, 01/15/2013.............................. BB- 104
100 Rogers Cantel, Inc.,
8.30%, 10/01/2007............................... BB+ 103
75 US West Communications,
7.20%, 11/01/2004............................... B- 77
-------
1,105
-------
TRANSPORTATION -- 0.6%
100 Royal Caribbean Cruises Ltd.,
7.25%, 08/15/2006............................... BB+ 105
45 Teekay Shipping Corp.,
8.32%, 02/01/2008............................... BB+ 49
-------
154
-------
UTILITIES -- 2.9%
100 Calpine Canada Energy Financial,
8.50%, 05/01/2008............................... CCC+ 74
25 El Paso Corp.,
7.80%, 08/01/2031............................... B 19
25 Illinois Power Co.,
11.50%, 12/15/2010.............................. B 30
25 Illinois Power Co.,
7.50%, 06/15/2009............................... B 27
50 Montana Power Co.,
7.30%, 12/01/2006(d)............................ D 51
100 Nevada Power Co.,
9.00%, 08/15/2013(d)............................ BB 106
60 PG&E Corp.,
6.875%, 07/15/2008(d)........................... NR 64
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
UTILITIES -- (CONTINUED)
$100 Southern California Edison Co.,
8.00%, 02/15/2007............................... BB $ 112
45 TECO Energy, Inc.,
7.50%, 06/15/2010............................... BB+ 46
100 Tennessee Gas Pipeline Co.,
8.375%, 06/15/2032.............................. B+ 101
100 Transcontinental Gas Pipeline Corp.,
6.125%, 01/15/2005.............................. B+ 102
-------
732
-------
Total corporate bonds:
non-investment grade
(cost $7,536)................................... $ 7,919
=======
</Table>
<Table>
U.S. GOVERNMENT SECURITIES -- 40.8%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 5.4%
1,161 5.50% 2032........................................ $ 1,172
200 6.00% 2028........................................ 209
-------
1,381
-------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 13.8%
872 5.00% 2017........................................ 885
2,615 5.50% 2032 -- 2033................................ 2,641
-------
3,526
-------
U.S. TREASURY SECURITIES -- 21.6%
4,355 3.625% 2008(e).................................... 5,530
-------
Total U.S. government securities
(cost $10,447).................................. $10,437
=======
Total long-term investments
(cost $24,313).................................. $24,992
=======
SHORT-TERM INVESTMENTS -- 0.8%
FINANCE -- 0.8%
46 Banc One Joint Repurchase Agreement,
0.97%, 11/03/2003 (Note 2f)..................... $ 47
73 BNP Paribas Joint Repurchase Agreement,
0.99%, 11/03/2003 (Note 2f)..................... 73
73 UBS Warburg Joint Repurchase Agreement,
0.98%, 11/03/2003 (Note 2f)..................... 73
-------
193
-------
Total short-term investments
(cost $193)..................................... $ 193
=======
Total investments in securities
(cost $24,506)(a)............................... $25,185
=======
</Table>
The accompanying notes are an integral part of this financial statement.
82
- --------------------------------------------------------------------------------
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $24,506 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................... $ 841
Unrealized depreciation........................... (161)
-----
Net unrealized appreciation....................... $ 680
=====
</Table>
(b) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 11.43% of total net asset as of October 31, 2003.
(d) Securities sold within the terms of a private placement
memorandum, exempt from registration under Section 144A of the securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of directors, these issues are determined to be liquid. The aggregate value
of these securities at October 31, 2003, was $1,869, which represents 7.30%
of total net assets.
(e) U.S. Treasury inflation protection securities (TIPS) are securities
in which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
(f) Variable rate securities; the yield reported is the rate in effect as of
October 31, 2003.
* Moody's Rating
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$24,506)......................................... $ 25,185
Cash............................................... 1
Foreign currency on deposit with custodian (cost
$1).............................................. 1
Receivables:
Fund shares sold................................. 285
Dividends and interest........................... 367
Other assets....................................... 40
--------
Total assets....................................... 25,879
--------
LIABILITIES
Payables:
Investment securities purchased.................. 200
Fund shares redeemed............................. 59
Payable for investment advisory and management
fees (Note 3).................................. 12
Payable for distribution fees (Note 3)........... 2
Accrued Expenses................................... 15
--------
Total liabilities.................................. 288
--------
Net assets......................................... $ 25,591
========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 2,430
shares outstanding............................... $ 24,901
Accumulated undistributed net investment income.... 30
Accumulated net realized loss on investments and
foreign currency transactions.................... (20)
Unrealized appreciation of investments in
securities and the translations of assets and
liabilities denominated in foreign currency...... 680
--------
Net assets......................................... $ 25,591
========
</Table>
<Table>
Class A
Net asset value per share ($15,836 / 1,504 shares
outstanding)...................................... $10.53
------
Maximum offering price per share ($10.53 / 95.5%)... $11.03
======
Class B
Net asset value per share ($4,705 / 447 shares
outstanding)...................................... $10.53
======
Class C
Net asset value per share ($5,050 / 479 shares
outstanding)...................................... $10.55
------
Maximum offering price per share ($10.55 / 99.0%)... $10.66
======
</Table>
The accompanying notes are an integral part of this financial statement.
83
THE HARTFORD INFLATION PLUS FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 2.7%
FINANCE -- 2.7%
$ 750 Bear Stearns Commercial Mortgage Security,
2.02%, Ser 2003-BA1A Class E 04/14/2015(d)(e)... AA- $ 749
1,000 Capital One Multi-Asset Execution Trust,
2.29%, Ser 2003-B1 Class B1 02/17/2009(d)....... A 1,001
1,000 Commercial Mortgage Pass-Through Certificate,
2.12%, Ser 2003-FL 8 Class E 07/15/2015(d)(e)... A+ 1,000
400 CS First Boston Mortgage Securities Corp.,
2.52%, Ser 2002-TFLA Class D 11/18/2012(d)(e)... A 401
600 CS First Boston Mortgage Securities Corp.,
2.69%, Ser 2002-TFLAC Class E
11/18/2012(d)(e)................................ A- 601
250 CS First Boston Mortgage Securities Corp.,
3.87%, Ser 2002-FL2A Class D 12/18/2010(d)(e)... BBB 250
421 GMAC Commercial Mortgage Securities, Inc.,
2.12%, Ser 2003-FL1A Class C 03/11/2015(d)(e)... A 421
474 J.P. Morgan Chase Commercial Mortgage Security,
2.07%, Ser 2003-FL1A Class C 02/17/2015(d)(e)... A 474
400 Lehman Brothers Commercial Mortgage Trust,
1.97%, Ser 2000-LLFA Class G 11/19/2012(d)(e)... A 400
1,000 Lehman Brothers Commercial Mortgage Trust,
2.27%, Ser 2003-LLFA Class G 12/16/2014(d)(e)... A+ 1,000
400 Lehman Brothers Commercial Mortgage Trust,
2.52%, Ser 2002-LLFA Class J 06/14/2017(d)(e)... BBB+ 395
164 Merrill Lynch Mortgage Investors, Inc.,
2.12%, Ser 2000-FF1 Class M2 03/01/2031(d)...... A 165
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
FINANCE -- (CONTINUED)
$ 1,000 Morgan Stanley Capital I,
2.42%, Ser 2003-XLF Class G 07/15/2017(d)(e).... A $ 1,004
1,000 Salomon Brothers Mortgage Securities VII,
2.12%, Ser 2003-CDCA Class E 02/15/2015(d)(e)... AA- 1,000
1,000 Wachovia Bank Commercial Mortgage Trust,
2.47%, Ser 2003-WHL2 Class G 06/15/2013(d)(e)... A 1,000
9,861
--------
Total asset backed and commercial mortgage
securities
(cost $9,840)................................... $ 9,861
========
CORPORATE BONDS: INVESTMENT GRADE -- 0.3%
FINANCE -- 0.3%
75 General Motors Acceptance Corp.,
1.99%, 03/22/2004............................... BBB $ 75
1,000 General Motors Acceptance Corp.,
3.14%, 03/04/2005............................... BBB 1,011
--------
1,086
--------
Total corporate bonds: investment grade (cost
$1,077)......................................... $ 1,086
========
</Table>
<Table>
U.S. GOVERNMENT SECURITIES -- 96.5%
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.7%
Tennessee Valley Authority
2,000 3.375% 2007(f).................................... $ 2,513
--------
U.S. TREASURY SECURITIES -- 95.8%
29,160 1.875% 2013(f).................................... 29,080
35,310 3.00% 2012(f)..................................... 39,673
28,220 3.375% 2007 -- 2032(f)............................ 35,642
29,540 3.50% 2011(f)..................................... 35,305
60,410 3.625% 2008 -- 2028(f)............................ 80,393
68,475 3.875% 2009 -- 2029(f)............................ 92,336
33,770 4.25% 2010(f)..................................... 43,181
--------
355,610
--------
Total U.S. government securities (cost
$354,444)....................................... $358,123
========
Total investments in securities (cost
$365,361)(a).................................... $369,070
========
</Table>
The accompanying notes are an integral part of these financial statements.
84
- --------------------------------------------------------------------------------
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $365,626 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $3,447
Unrealized depreciation.......................... (3)
------
Net unrealized appreciation...................... $3,444
======
</Table>
(b) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(d) Variable Rate Securities, the yield reported is the rate in effect as of
October 31, 2003.
(e) Securities sold within the terms of a private placement
memorandum, exempt from registration under Section 144A of the securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of Directors, these issues are determined to be liquid. The aggregate value
of these securities at October 31, 2003, was $8,695, which represents 2.34%
of total net assets.
(f) Inflation-protection securities are securities in which the principal
amount is adjusted for inflation and the semi-annual interest payments
equal a fixed percentage of the inflation-adjusted principal amount.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$365,361)......................................... $369,070
Receivables:
Fund shares sold.................................. 4,979
Dividends and interest............................ 2,508
Other assets........................................ 272
--------
Total assets........................................ 376,829
--------
LIABILITIES
Payables:
Bank Overdraft.................................... 389
Investment securities purchased................... 2,903
Fund shares redeemed.............................. 1,976
Payable for investment advisory and management
fees (Note 3)................................... 183
Payable for distribution fees (Note 3)............ 37
Accrued Expenses.................................... 110
--------
Total liabilities................................... 5,598
--------
Net assets.......................................... $371,231
========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 400,000 shares authorized; 34,912
shares outstanding................................ $366,052
Accumulated undistributed net investment income..... 283
Accumulated net realized gain on investments and
foreign currency transactions..................... 1,187
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 3,709
--------
Net assets.......................................... $371,231
========
</Table>
<Table>
Class A
Net asset value per share ($142,992 / 13,449 shares
outstanding)...................................... $10.63
------
Maximum offering price per share ($10.63 / 95.5%)... $11.13
======
Class B
Net asset value per share ($67,986 / 6,391 shares
outstanding)...................................... $10.64
======
Class C
Net asset value per share ($160,253 / 15,072 shares
outstanding)...................................... $10.63
------
Maximum offering price per share ($10.63 / 99.0%)... $10.74
======
</Table>
The accompanying notes are an integral part of these financial statements.
85
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 92.0%
BRAZIL -- 1.8%
11 Empresa Brasileira de Aeronautica S.A. ADR
(Aerospace Product and Parts Manufacturing)..... $ 293
-------
CANADA -- 2.1%
8 Research in Motion Ltd.
(Wireless Telecommunications Carriers)(a)....... 340
-------
CHINA -- 0.0%
28 PICC Property and Casualty Co. Ltd.
(Insurance Carriers)(a)(f)...................... 6
-------
FINLAND -- 0.2%
2 Nokia Oyj (Communications Equipment).............. 28
-------
FRANCE -- 18.8%
29 Alcatel S.A. (Communications Equipment)........... 379
16 Altran Technologies S.A. (Construction -- Other
Heavy and Civil Engineering).................... 194
15 Axa (Insurance Carriers).......................... 279
4 BNP Paribas (Depository Credit Banking)........... 184
3 Cie Generale D'Optique Essilor International S.A.
(Nonmetallic Manuf -- Other).................... 149
4 Club Mediterranee S.A. (Recreation -- Other
Amusement & Recreation Indust).................. 148
1 Pinault-Printemps-Redoute S.A. (Retail --
Department Stores).............................. 134
3 Renault S.A. (Retail -- Automobile Dealers)....... 192
3 Rodriguez Group (Ship and Boat Building).......... 204
3 Total S.A. (Petro and Coal -- Products
Manufacturing).................................. 404
2 Unibail Holding (Lessors of Real Estate).......... 189
15 Vivendi Universal S.A. (Other Services --
Commercial/Indust Machine & Equip).............. 319
34 Wanadoo(a) (Internet Providers & Web Search
Port)........................................... 254
-------
3,029
-------
GERMANY -- 10.6%
3 Allianz AG (Insurance Carriers)................... 285
7 Bayerische Motoren Werke (BMW) AG (Motor Vehicle
Manufacturing).................................. 281
2 Deutsche Bank AG (Depository Credit Banking)...... 152
2 Muenchener Rueckversicherungs-Gesellschaft AG
(Insurance and Employee Benefit Funds).......... 262
2 Muenchener Rueckversicherungs-Gesellschaft AG
Rights (Insurance and Employee Benefit Funds)... 15
@@ Porsche AG (Motor Vehicle Manufacturing).......... 128
5 Schering AG (Pharmaceutical & Medicine
Manufacturing).................................. 230
5 Siemens AG (Navigate, Measure, Control
Instruments).................................... 349
-------
1,702
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
HONG KONG -- 6.2%
142 China Merchants Holdings International Co. Ltd.
(Other Transportation Equipment)................ $ 192
134 CNOOC Ltd. (Petro and Coal -- Oil & Gas
Extraction)..................................... 253
37 Esprit Holdings Ltd. (Retail -- Clothing
Stores)......................................... 116
20 Hutchison Whampoa Ltd. (Activities Related to Real
Estate)......................................... 155
102 Techtronic Industries Co. Ltd. (Electrical Equip
Manuf).......................................... 281
-------
997
-------
INDONESIA -- 0.8%
9 P.T. Telekomunikasi Indonesia ADR (Other
Telecommunications)............................. 125
-------
IRELAND -- 1.0%
3 Ryanair Holdings plc ADR (Air Transportation
Scheduled)(a)................................... 160
-------
ISRAEL -- 0.8%
2 Teva Pharmaceutical Industries Ltd. ADR
(Pharmaceutical & Medicine Manufacturing)....... 131
-------
JAPAN -- 7.2%
2 Fanuc Ltd. (Electrical Equip Manuf -- Component
Other).......................................... 132
2 Fast Retailing Co. Ltd. (Retail -- Clothing
Stores)......................................... 146
3 Ito-Yokado Co. Ltd. (Retail -- Other General
Merchandise Stores)............................. 114
@@ Mizuho Financial Group, Inc. (Monetary
Authorities -- Central Bank).................... 132
21 Nikko Cordial Corp. (Other Financial Investment
Activities)..................................... 113
@@ Nippon Telegraph & Telephone Corp. (Wired
Telecommunications Carriers).................... 139
15 Sumitomo Electric Industries Ltd. (Semiconductor,
Electronic Compon).............................. 129
@@ Sumitomo Mitsui Financial Group, Inc.
(Monetary Authorities -- Central Bank)(a)....... 126
@@ UMC Japan (Semiconductor, Electronic Compon)(a)... 136
-------
1,167
-------
MALAYSIA -- 2.0%
109 Resorts World BHD (Recreation -- Other Amusement &
Recreation Indust).............................. 315
-------
NETHERLANDS -- 2.3%
7 ASML Holding N.V. (Semiconductor, Electronic
Compon)(a)...................................... 123
12 European Aeronautic Defence and Space Co.
(Aerospace Product and Parts Manufacturing)..... 239
-------
362
-------
</Table>
The accompanying notes are an integral part of these financial statements.
86
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
VV7 MINING AND METALLURGICAL CO. NORILSK NICKEL ADR
(Mining -- Metal Ore)........................... $ 366
-------
SOUTH KOREA -- 4.2%
3 Samsung Electronics Co. Ltd. GDR (Audio and Video
Equipment)(e)................................... 675
-------
SPAIN -- 1.3%
19 Promotora de Informaciones S.A. (Prisa)
(Cable & Other Subscription Programming)........ 214
-------
SWEDEN -- 5.4%
13 Atlas Copco AB-A Shares (Fabricated Metal
Manf -- Other).................................. 473
-------
24 Telefonaktiebolaget LM Ericsson ADR
(Communications Equipment)(a)................... 401
-------
874
-------
SWITZERLAND -- 9.0%
53 ABB Ltd. (Electrical Equip Manuf)................. 311
3 Converium Holding AG (Insurance Carriers)......... 128
16 Credit Suisse Group (Monetary Authorities --
Central Bank)................................... 547
4 Roche Holding AG (Pharmaceutical & Medicine
Manufacturing).................................. 324
@@ Serono S.A. Class B (Drugs and Druggists' Sundries
Merchant)....................................... 138
-------
1,448
-------
UNITED KINGDOM -- 15.0%
13 AMVESCAP plc (Other Financial Investment
Activities)..................................... 102
6 AstraZeneca plc (Pharmaceutical & Medicine
Manufacturing).................................. 300
52 British Airways plc (Air Transportation
Scheduled)(a)................................... 182
55 Burberry Group plc (Apparel Manufacturing --
Accessories and Other).......................... 367
159 Carphone Warehouse plc (Wireless
Telecommunications Carriers).................... 348
41 Compass Group plc (Accommodation & Food
Serv -- Special Food Services).................. 237
93 Kingfisher plc (Retail -- Other General
Merchandise Stores)............................. 445
40 Lastminute.com plc (Internet Providers & Web
Search Port)(a)................................. 200
47 Rolls-Royce Group plc (Machinery Manuf -- Engine,
Turbine, Power Trans)........................... 151
36 Vodafone Group plc (Wireless Telecommunications
Carriers)....................................... 75
-------
2,407
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
UNITED STATES -- 1.0%
6 Bunge Ltd. (Food Manufacturing -- Grain and
Oilseed Milling)................................ $ 157
-------
Total common stock (cost $13,191)................. $14,796
=======
<Caption>
SHARES
- ---------
VV
SHORT-TERM INVESTMENTS -- 28.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 18.1%
2,903 Navigator Prime Portfolio......................... $ 2,903
-------
PRINCIPAL
AMOUNT
------
OVFINANCE -- 10.4%
$ 243 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 243
640 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 640
795 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 795
-------
1,678
-------
Total short-term investments (cost $4,581)........ $ 4,581
=======
Total investments in securities (cost
$17,772)(b)..................................... $19,377
=======
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes was $17,796 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $1,639
Unrealized depreciation.......................... (58)
------
Net unrealized appreciation...................... $1,581
======
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(e) Security sold within the terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors." Pursuant to guidelines adopted by the Board of
Directors, this issue is deemed to be liquid. The aggregate value of this
security at October 31, 2003, was $675, which represents 4.20% of total net
assets.
(f) Security valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these securities
as of October 31, 2003, was $6, which represents 0.04% of total net assets.
The accompanying notes are an integral part of these financial statements.
87
THE HARTFORD INTERNATIONAL CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
NET ASSETS
-------------
DIVERSIFICATION BY INDUSTRY
Basic Materials 6.1%
Capital Goods 5.2%
Consumer Cyclical 13.2%
Consumer Staples 1.0%
Energy 4.0%
Finance and Insurance 15.7%
Health Care 7.0%
Services 7.7%
Technology 27.5%
Transportation 4.6%
Short Term Investments 28.5%
-----
Total 120.5%
=====
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
<Table>
<Caption>
CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ -------- ---------- --------------
British Pound (Buy) $139 $139 11/03/2003 @@
Euro (Buy) 96 96 11/03/2003 @@
Euro (Buy) 265 265 11/04/2003 @@
Hong Kong Dollar (Buy) 39 39 11/04/2003 @@
Hong Kong Dollar (Buy) 6 6 11/06/2003 @@
Japanese Yen (Buy) 26 26 11/06/2003 @@
Swedish Krona (Buy) 44 44 11/04/2003 @@
Swiss Franc (Buy) 84 85 11/03/2003 $(1)
Swiss Franc (Buy) 57 57 11/04/2003 @@
Japanese Yen (Sell) 10 10 11/04/2003 @@
---
$(1)
===
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$16,094) @ ........................................ $17,699
Repurchase agreements, at value; (cost $1,678)....... 1,678
Cash................................................. 1
Foreign currency on deposit with custodian (cost
$10)............................................... 10
Receivables:
Investment securities sold......................... 170
Fund shares sold................................... 523
Dividends and interest............................. 10
Other assets......................................... 26
-------
Total assets......................................... 20,117
-------
LIABILITIES
Unrealized depreciation on forward foreign currency
contracts.......................................... 1
Payables:
Payable upon return of securities loaned (Note
2d).............................................. 2,903
Investment securities purchased.................... 1,081
Fund shares redeemed............................... 20
Payable for investment advisory and management fees
(Note 3)......................................... 12
Payable for distribution fees (Note 3)............. 1
Accrued Expenses..................................... 12
-------
Total liabilities.................................... 4,030
-------
Net assets........................................... $16,087
=======
@ Market value of securities on loan $2,746.
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 1,679 shares
outstanding........................................ $14,403
Accumulated undistributed net investment income...... 1
Accumulated net realized gain on investments and
foreign currency transactions...................... 77
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency.................... 1,606
-------
Net assets........................................... $16,087
=======
</Table>
<Table>
Class A
Net asset value per share ($11,362 / 1,181 shares
outstanding)...................................... $ 9.62
------
Maximum offering price per share ($9.62 / 94.5% )... $10.18
======
Class B
Net asset value per share ($2,148 / 227 shares
outstanding)...................................... $ 9.46
======
Class C
Net asset value per share ($2,285 / 241 shares
outstanding)...................................... $ 9.46
------
Maximum offering price per share ($9.46 / 99.0%).... $ 9.56
======
Class Y
Net asset value per share ($292 / 30 shares
outstanding)...................................... $ 9.69
======
</Table>
The accompanying notes are an integral part of these financial statements.
88
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 97.0%
AUSTRALIA -- 0.5%
131 Rinker Group Ltd. (Construction -- Other Heavy
Construction)................................... $ 588
--------
AUSTRIA -- 0.6%
58 Telekom Austria AG (Other
Telecommunications)(a)(e)....................... 617
--------
BRAZIL -- 1.5%
20 Empresa Brasileira de Aeronautica S.A. ADR
(Aerospace Product and Parts Manufacturing)..... 519
24 Petroleo Brasileiro S.A. ADR (Petro and
Coal -- Oil & Gas Extraction)................... 564
28 Uniao de Bancos Brasileiros S.A. GDR (Other
Financial Investment Activities)................ 610
--------
1,693
--------
CANADA -- 3.8%
15 Canadian National Railway Co.
(Transportation -- Rail)........................ 879
11 Inco Ltd. (Mining and Quarrying Nonmetallic
Mineral)(a)..................................... 365
45 National Bank of Canada (Depository Credit
Banking)........................................ 1,384
21 Royal Bank of Canada (Depository Credit
Banking)........................................ 1,021
11 Talisman Energy, Inc. (Petro and Coal -- Oil & Gas
Extraction)..................................... 552
--------
4,201
--------
CHINA -- 0.6%
1,784 China Telecom Corp. Ltd. (Other
Telecommunications)............................. 591
202 PICC Property and Casualty Co. Ltd. (Insurance
Carriers)(a)(f)................................. 47
--------
638
--------
FINLAND -- 1.2%
79 Nokia Oyj (Communications Equipment).............. 1,335
--------
FRANCE -- 12.8%
29 Aventis S.A. (Pharmaceutical & Medicine
Manufacturing).................................. 1,551
43 Axa (Insurance Carriers).......................... 824
17 BNP Paribas (Depository Credit Banking)........... 894
24 Carrefour S.A. (Retail -- Grocery Stores)......... 1,275
20 Cie Generale D'Optique Essilor International S.A.
(Nonmetallic Manuf -- Other).................... 948
51 France Telecom S.A. (Other Telecommunications).... 1,233
29 Lafarge S.A. (Nonmetallic Manuf -- Cement and
Concrete Product)............................... 2,090
8 Pinault-Printemps-Redoute S.A. (Retail --
Department Stores).............................. 844
23 Schneider Electric S.A. (Miscellaneous
Manufacturing).................................. 1,317
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
FRANCE -- (CONTINUED)
28 Societe Television Francaise 1 (Radio and
Television Broadcasting)........................ $ 837
15 Total S.A. (Petro and Coal -- Products
Manufacturing).................................. 2,347
--------
14,160
--------
GERMANY -- 4.2%
24 Bayerische Motoren Werke (BMW) AG (Motor Vehicle
Manufacturing).................................. 971
30 DaimlerChrysler AG (Motor Vehicle
Manufacturing).................................. 1,099
104 Deutsche Telekom AG (Wired Telecommunications
Carriers)(a).................................... 1,634
19 E.ON AG (Miscellaneous Manufacturing)............. 971
--------
4,675
--------
HONG KONG -- 1.0%
134 Cheung Kong (Holdings) Ltd. (Activities Related to
Real Estate).................................... 1,117
--------
IRELAND -- 0.6%
72 Ryanair Holdings plc (Air Transportation
Scheduled)(a)................................... 600
--------
ITALY -- 2.8%
70 ENI-Ente Nazionale Idrocarburi S.p.A. (Petro and
Coal -- Oil & Gas Extraction)................... 1,110
103 Fiat S.p.A. (Motor Vehicle Manufacturing)......... 808
225 UniCredito Italiano S.p.A. (Commercial Banking)... 1,109
--------
3,027
--------
JAPAN -- 15.4%
107 Asahi Glass Co. Ltd. (Nonmetallic Manuf -- Glass
and Glass Product).............................. 845
68 Dai Nippon Printing Co. Ltd. (Printing and Related
Support Activities)............................. 1,050
29 Fuji Photo Film Co. Ltd. (Miscellaneous
Manufacturing).................................. 855
18 Honda Motor Co. Ltd. (Retail -- Other Motor
Vehicle Dealers)................................ 723
40 Kao Corp. (Retail -- Other General Merchandise
Stores)......................................... 822
3 Keyence Corp. (Electrical Equip Manuf -- Component
Other).......................................... 638
41 Matsushita Electric Industrial Co. Ltd. (Audio and
Video Equipment)................................ 540
8 Nintendo Co. Ltd. (Toy Manufacturing)............. 626
156 Nippon Express Co. Ltd. (Wired Telecommunications
Carriers)....................................... 704
5 Nomura Research Institute Ltd. (Other Information
Services)....................................... 533
47 Nomura Securities Co. Ltd. (Other Financial
Investment Activities).......................... 807
1 NTT DoCoMo, Inc. (Wireless Telecommunications
Carriers)....................................... 1,576
2 OBIC Co. Ltd. (Computer and Peripheral)........... 528
7 Orix Corp. (Activities Related to Real Estate).... 589
</Table>
The accompanying notes are an integral part of these financial statements.
89
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
JAPAN -- (CONTINUED)
7 Rohm Co. Ltd. (Semiconductor, Electronic
Compon)......................................... $ 917
28 Shin-Etsu Chemical Co. Ltd. (Resin, Synthetic
Rubber, Filaments).............................. 1,049
35 Shionogi & Co. Ltd. (Pharmaceutical & Medicine
Manufacturing).................................. 587
1 SKY Perfect Communications, Inc. (Cable and Other
Program Distribution)(a)........................ 780
93 Sompo Japan Insurance, Inc. (Agencies, Brokerages,
Other Insurance Activities)..................... 770
10 Sony Corp. (Audio and Video Equipment)............ 352
17 Sony Corp. ADR (Audio and Video Equipment)........ 591
102 Sumitomo Trust & Banking Co. Ltd. (International
Trade Financing (Foreign Banks))................ 570
129 The Bank of Yokohama Ltd. (International Trade
Financing (Foreign Banks))...................... 557
--------
17,009
--------
MALAYSIA -- 2.2%
349 Berjaya Sports Toto Berhad (Other Financial
Investment Activities).......................... 400
293 Malayan Banking Berhad (Commercial Banking)....... 787
516 Public Bank Berhad (Commercial Banking)........... 407
284 Resorts World Berhad (Recreation -- Other
Amusement & Recreation Indust).................. 822
--------
2,416
--------
MEXICO -- 0.9%
42 America Movil S.A. de C.V. Ser L ADR
(Telecommunication Resellers)................... 1,009
--------
NETHERLANDS -- 3.9%
39 Akzo Nobel N.V. (Paint, Coating, and Adhesive).... 1,236
28 ASML Holding N.V. (Semiconductor, Electronic
Compon)(a)...................................... 489
@@ ING Groep N.V. (International Trade Financing
(Foreign Banks))................................ @@
92 Koninklijke (Royal) KPN N.V. (Wired
Telecommunications Carriers)(a)................. 696
25 Royal Dutch Petroleum Co. (Petro and Coal --
Products Manufacturing)......................... 1,096
38 TPG N.V. (Postal Service)......................... 824
--------
4,341
--------
RUSSIA -- 0.3%
5 Mining and Metallurgical Co. Norilsk Nickel ADR
(Mining -- Metal Ore)........................... 278
--------
SOUTH AFRICA -- 0.4%
10 Anglo American Platinum Corp. Ltd. (Primary Metal
Manuf -- Nonferrous Metal)...................... 415
--------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
SOUTH KOREA -- 4.8%
133 Kia Motors Corp. (Motor Vehicle Manufacturing).... $ 930
42 Kookmin Bank (Commercial Banking)................. 1,528
4 Samsung Electronics Co. Ltd. (Semiconductor,
Electronic Compon).............................. 1,747
7 SK Telecom Co. Ltd. (Wireless Telecommunications
Carriers)....................................... 1,152
--------
5,357
--------
SWEDEN -- 1.9%
52 ForeningsSparbanken AB (Swedbank) (International
Trade Financing (Foreign Banks))................ 865
199 Nordic Baltic Holding AB (Other Financial
Investment Activities).......................... 1,236
--------
2,101
--------
SWITZERLAND -- 8.5%
133 ABB Ltd. (Electrical Equip Manuf)................. 781
27 Credit Suisse Group (Monetary Authorities --
Central Bank)................................... 967
10 Nestle S.A. (Food Manufacturing -- Other)......... 2,183
18 Roche Holding AG (Pharmaceutical & Medicine
Manufacturing).................................. 1,449
1 Serono S.A. Class B (Drugs and Druggists' Sundries
Merchant)....................................... 744
33 STMicroelectronics N.V. (Semiconductor, Electronic
Compon)......................................... 879
39 UBS AG (Commercial Banking)....................... 2,413
--------
9,416
--------
TAIWAN -- 4.1%
1,350 Advanced Semiconductor Engineering, Inc.
(Semiconductor, Electronic Compon)(a)........... 1,251
44 China Steel Corp. (Primary Metal Manuf-Iron, Steel
Mills & Ferroalloy)(e).......................... 714
2,747 United Microelectronics Corp. (Semiconductor,
Electronic Compon)(a)........................... 2,515
--------
4,480
--------
THAILAND -- 0.8%
461 Kasikornbank Public Co. Ltd. (Commercial
Banking)(a)..................................... 514
403 Siam Commercial Bank Public Co. Ltd.
(International Trade Financing (Foreign
Banks))(a)...................................... 417
--------
931
--------
TURKEY -- 0.3%
81,436 Akbank T.A.S. (Commercial Banking)................ 382
--------
UNITED KINGDOM -- 22.1%
32 AstraZeneca plc (Pharmaceutical & Medicine
Manufacturing).................................. 1,502
63 Aviva plc (Insurance Carriers).................... 520
307 BP plc (Petro and Coal -- Products
Manufacturing).................................. 2,131
</Table>
The accompanying notes are an integral part of these financial statements.
90
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
UNITED KINGDOM -- (CONTINUED)
268 British Airways plc (Air Transportation
Scheduled)(a)................................... $ 947
158 Capita Group plc (Public -- Administration of
Human Resource Programs)........................ 664
309 Compass Group plc (Accommodation & Food
Serv -- Special Food Services).................. 1,782
2,022 Corus Group plc (Primary Metal Manuf-Iron, Steel
Mills & Ferroalloy)(a).......................... 823
66 GlaxoSmithKline plc (Medical and Diagnostic
Laboratories)................................... 1,407
44 HBOS plc (Monetary Authorities -- Central Bank)... 507
303 Hilton Group plc (Recreation -- Gambling
Industries)..................................... 998
109 HSBC Holdings plc (Depository Credit Banking)..... 1,637
45 Imperial Tobacco Group plc (Tobacco
Manufacturing).................................. 741
154 Kingfisher plc (Retail -- Other General
Merchandise Stores)............................. 737
184 National Grid Group plc (Utilities -- Electric
Generation, Trans and Distrib).................. 1,177
81 Pearson plc (Newspaper, Book and Periodical)...... 835
41 Reckitt Benckiser plc (Soap, Cleaning Compound,
Toilet Manufacturing)........................... 868
40 Rio Tinto plc (Petro and Coal -- Mining Support
Activities)..................................... 958
83 Royal Bank of Scotland Group plc (International
Trade Financing (Foreign Banks))................ 2,228
1,128 Vodafone Group plc (Wireless Telecommunications
Carriers)....................................... 2,368
161 WPP Group plc (Advertising & Related Services).... 1,534
--------
24,364
--------
UNITED STATES -- 1.8%
34 Accenture Ltd. Class A (Management, Scientific,
and Tech Consulting Svcs)(a).................... 800
57 Tyco International Ltd. (with rights)
(Miscellaneous Manufacturing)................... 1,197
--------
1,997
--------
Total common stock
(cost $94,754).................................. $107,147
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 8.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 5.5%
6,033 Boston Global Investment Trust.................... $ 6,033
--------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- --------- --------
FINANCE -- 2.6%
$ 430 ABN AMRO Joint Repurchase Agreement,..............
1.00%, 11/03/03 (Note 2f) $ 430
1,132 BNP Paribas Joint Repurchase Agreement,...........
1.00%, 11/03/03 (Note 2f) 1,132
1,404 UBS Securities Joint Repurchase Agreement,........
0.98%, 11/03/03 (Note 2f) 1,404
--------
2,966
--------
Total short-term investments......................
(cost $8,999) $ 8,999
========
Total investments in securities...................
(cost $103,753)(b) $116,146
========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes was $104,344 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $12,466
Unrealized depreciation......................... (664)
-------
Net unrealized appreciation..................... $11,802
=======
</Table>
(c) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(e) Securities issued within terms of a private placement
memorandum, exempt from registration under Section 144A of the Securities
Act of 1933, as amended, and may be sold only to dealers in that program or
to other "accredited investors". Pursuant to guidelines adopted by the
Board of Directors, these issues are determined to be liquid. The aggregate
value of these securities at October 31, 2003, was $1,331, which represents
1.21% of total net assets.
(f) Security valued in good faith at fair value by, or under the direction
of, the Funds' Board of Directors. The aggregate value of these securities
as of October 31, 2003, was $47, which represents 0.04% of total net
assets.
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY INDUSTRY NET ASSETS
--------------------------- -------------
Basic Materials 7.9%
Capital Goods 4.4%
Consumer Cyclical 8.5%
Consumer Staples 3.4%
Energy 7.9%
Finance and Insurance 22.8%
Health Care 6.6%
Services 9.2%
Technology 23.0%
Transportation 2.2%
Utilities 1.1%
Short Term Investments 8.1%
------
Total 105.1%
======
</Table>
The accompanying notes are an integral part of these financial statements.
91
THE HARTFORD INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ -------- ---------- --------------
Australian Dollar (Buy) $ 4 $ 4 11/03/2003 $@@
Euro (Buy) 9 9 11/03/2003 @@
Swiss Francs (Buy) 274 275 11/04/2003 (1)
Australian Dollar (Buy) 1 1 11/05/2003 @@
Euro (Buy) 4 4 11/05/2003 @@
Australian Dollar (Buy) 4 4 11/06/2003 @@
Hong Kong Dollar (Buy) 47 47 11/06/2003 @@
Japanese Yen (Buy) 543 547 11/06/2003 (4)
Euro (Sell) 488 489 11/04/2003 1
---
$(4)
===
@@ Due to the presentation of the financial statements in thousands, the number of shares and/or dollars round to zero.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$103,753) @ ...................................... $116,146
Foreign currency on deposit with custodian (cost
$39).............................................. 39
Unrealized appreciation in forward foreign currency
contracts......................................... 1
Receivables:
Investment securities sold........................ 991
Fund shares sold.................................. 416
Dividends and interest............................ 204
Other assets........................................ 6
--------
Total assets........................................ 117,803
--------
LIABILITIES
Unrealized depreciation on forward foreign currency
contracts......................................... 5
Payables:
Bank overdraft.................................... 5
Payable upon return of securities loaned (Note
2d)............................................. 6,033
Investment securities purchased................... 1,035
Fund shares redeemed.............................. 118
Payable for investment advisory and management
fees (Note 3)................................... 78
Payable for distribution fees (Note 3)............ 8
Accrued Expenses.................................... 61
--------
Total liabilities................................... 7,343
--------
Net assets.......................................... $110,460
========
@ Market value of securities on loan $5,696
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 11,608
shares outstanding................................ $156,250
Accumulated undistributed net investment income..... 68
Accumulated net realized loss on investments and
foreign currency transactions..................... (58,261)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 12,403
--------
Net assets.......................................... $110,460
========
</Table>
<Table>
Class A
Net asset value per share ($69,153 / 7,162 shares
outstanding)...................................... $ 9.66
------
Maximum offering price per share ($9.66 / 94.5%).... $10.22
======
Class B
Net asset value per share ($20,459 / 2,220 shares
outstanding)...................................... $ 9.22
======
Class C
Net asset value per share ($14,790 / 1,615 shares
outstanding)...................................... $ 9.16
------
Maximum offering price per share ($9.16 / 99.0%).... $ 9.25
======
Class Y
Net asset value per share ($6,058 / 611 shares
outstanding)...................................... $ 9.91
======
</Table>
The accompanying notes are an integral part of these financial statements.
92
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 91.6%
AUSTRALIA -- 2.9%
70 Adsteam Marine Ltd.(a) (Transportation -- Deep
Sea, Coastal, Great Lakes)...................... $ 89
10 Cochlear Ltd. (Electromedical Manufacturing)...... 212
55 Lend Lease Corp. Ltd. (Activities Related to Real
Estate)......................................... 436
123 Mayne Group Ltd. (Pharmaceutical & Medicine
Manufacturing).................................. 319
241 Oil Search Ltd. (Petro and Coal -- Oil & Gas
Extraction)..................................... 176
-------
1,232
-------
CHINA -- 1.7%
1,294 Beijing Capital International Airport Co. Ltd.
Class H (Air Transportation Scheduled).......... 479
926 Guangshen Railway Co. Ltd. Class H
(Transportation -- Rail)........................ 256
-------
735
-------
DENMARK -- 1.7%
17 Carlsberg A/S Class B (Beverage Manufacturing).... 715
-------
FINLAND -- 3.6%
20 Orion-Yhtyma Oyj B Shares (Pharmaceutical &
Medicine Manufacturing)......................... 387
16 Pohjola Group plc (Insurance Carriers)............ 354
30 Tietoenator Oyj (Computer Systems Design & Related
Services)....................................... 793
-------
1,534
-------
FRANCE -- 8.0%
19 April Group (Agencies, Brokerages, Other Insurance
Activities)..................................... 302
5 Atos Origin(a) (Data Process, Hosting & Related
Serv)........................................... 314
7 Cegedim S.A. (Management, Scientific, and Tech
Consulting Svcs)................................ 395
112 Havas S.A. (Advertising & Related Services)....... 532
4 Ipsos (Advertising & Related Services)............ 321
43 NRJ Group (Radio and Television Broadcasting)..... 842
23 Remy Cointreau S.A. (Beverage Manufacturing)...... 706
-------
3,412
-------
GERMANY -- 3.1%
36 Aixtron AG (Semiconductor, Electronic Compon)..... 214
18 ELMOS Semiconductor AG(a) (Semiconductor,
Electronic Compon).............................. 233
13 Fielmann AG (Retail -- Other General Merchandise
Stores)......................................... 478
9 Heidelberger Druckmaschinen AG (Machinery
Manuf -- Commercial & Service Industry)......... 313
8 Jenoptik AG (Communications Equipment)............ 86
-------
1,324
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
GREECE -- 3.1%
73 Aktor S.A. Technical Co. (Construction -- Other
Heavy and Civil Engineering).................... $ 424
32 Bank of Piraeus (Commercial Banking).............. 295
12 Germanos S.A. (Retail -- Electronic Shopping and
Mail-Order Houses).............................. 262
32 Stet Hellas Telecomm S.A. ADR (Communications
Equipment)...................................... 358
-------
1,339
-------
ITALY -- 4.6%
9 Amplifon S.p.A. (Retail -- Other Miscellaneous
Store Retailers)................................ 220
139 Banca Popolare di Milano S.c.r.l. (International
Trade Financing (Foreign Banks))................ 711
25 Brembo S.p.A. (Motor Vehicle Parts
Manufacturing).................................. 162
72 Caltagirone Editore S.p.A. (Newspaper, Book and
Periodical)..................................... 552
@@ Ericsson S.p.A. (Communications Equipment)........ 8
8 Tod's S.p.A. (Footwear Manufacturing)............. 307
-------
1,960
-------
JAPAN -- 34.7%
29 Alpine Electronics, Inc. (Audio and Video
Equipment)...................................... 372
10 Asatsu-DK, Inc. (Advertising & Related
Services)....................................... 227
15 Avex, Inc. (Motion Picture & Video Industry)...... 289
2 Bellsystem 24, Inc. (Other Information
Services)....................................... 489
18 C&S Co. Ltd. (Retail -- Other Miscellaneous Store
Retailers)...................................... 336
25 FamilyMart Co. Ltd. (Retail -- Other Miscellaneous
Store Retailers)................................ 533
7 Fujimi, Inc. (Nonmetallic Manuf -- Other)......... 244
18 Hitachi Medical Corp. (Medical Equipment &
Supplies Manufacturing)......................... 210
135 Hokkaido Bank Ltd. (Consumer Lending)............. 190
155 Hokugin Financial Group, Inc. (International Trade
Financing (Foreign Banks))...................... 244
27 Hokuto Corp. (Food Manufacturing -- Other)........ 367
26 House Foods Corp. (Food Manufacturing -- Other)... 281
37 INES Corp. (Data Process, Hosting & Related
Serv)........................................... 321
38 Japan Securities Finance Co. Ltd. (Other Financial
Investment Activities).......................... 210
151 Joyo Bank Ltd. (International Trade Financing
(Foreign Banks))................................ 483
19 Kadokawa Holdings, Inc. (Newspaper, Book and
Periodical)..................................... 561
28 Keihin Corp. (Retail -- Auto Parts, Accessories,
and Tire Stores)................................ 283
39 Kirin Beverage Corp. (Beverage Manufacturing)..... 649
35 Komori Corp. (Machinery Manuf -- Commercial &
Service Industry)............................... 432
</Table>
The accompanying notes are an integral part of these financial statements.
93
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
JAPAN -- (CONTINUED)
11 KOSE Corp. (Health and Personal Care Stores)...... $ 351
9 Milbon Co. Ltd. (Other Chemical and
Preparation).................................... 203
10 Nagaileben Co. Ltd. (Apparel Manufacturing -- Cut
and Sew Apparel)................................ 272
33 NEC System Integration & Construction Ltd.
(Communications Equipment)...................... 249
84 Nippon Shinyaku Co. Ltd. (Pharmaceutical &
Medicine Manufacturing)......................... 482
35 Okasan Holdings, Inc. (Securities, Commodities and
Brokerage)...................................... 174
85 Okumura Corp. (Construction -- Other Heavy
Construction)................................... 347
12 Otsuka Kagu Ltd. (Retail -- Home Furnishings
Stores)......................................... 338
57 PanaHome Corp. (Construction -- Residential
Building)....................................... 280
36 Sumitomo Forestry Co. Ltd. (Forest Nurseries and
Gathering of Forest Products)................... 295
75 Suruga Bank Ltd. (Consumer Lending)............... 470
92 Taiheyo Cement Corp. (Nonmetallic Manuf -- Cement
and Concrete Product)........................... 228
11 Taiyo Ink Manufacturing Co. Ltd. (Basic Chemical
Manufacturing).................................. 402
35 Tanabe Seiyaku Co. Ltd. (Pharmaceutical & Medicine
Manufacturing).................................. 256
103 The 77 Bank Ltd. (International Trade Financing
(Foreign Banks))................................ 540
48 The Chiba Bank Ltd. (Consumer Lending)............ 207
103 The Kiyo Bank Ltd. (Commercial Banking)........... 200
81 The Shiga Bank Ltd. (International Trade Financing
(Foreign Banks))................................ 311
16 The Tokyo Tomin Bank Ltd. (International Trade
Financing (Foreign Banks))...................... 271
32 Tokyo Ohka Kogyo Co. Ltd. (Semiconductor,
Electronic Compon).............................. 573
24 Towa Pharmaceutical Co. Ltd. (Pharmaceutical &
Medicine Manufacturing)......................... 487
32 Tsuruha Co. Ltd. (Retail -- Other General
Merchandise Stores)............................. 550
6 United Arrows Ltd. (Retail -- Clothing Stores).... 269
18 XEBIO Co. Ltd. (Retail -- Sporting Goods, Hobby,
Musical Instrument)............................. 357
-------
14,833
-------
MEXICO -- 1.1%
71 Grupo Financiero Banorte S.A. (Commercial
Banking)........................................ 231
102 Kimberly-Clark de Mexico, S.A. (Paper (Converted)
Product Manufacturing).......................... 246
-------
477
-------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
NETHERLANDS -- 6.1%
25 CSM N.V. (Food -- Fruit, Vegetable Preserving,
Specialty Food)................................. $ 509
81 Equant N.V.(a) (Data Process, Hosting & Related
Serv)........................................... 714
34 Koninklijke Vendex KBB N.V. (Retail -- Other
Miscellaneous Store Retailers).................. 412
45 Randstad Holding N.V. (Other Services --
Professional, Labor, Political Org.)............ 861
10 SNT Groep N.V.(a) (Management of Companies and
Enterprises).................................... 146
-------
2,642
-------
NEW ZEALAND -- 1.5%
183 Carter Hold Harvey Ltd. (Wood Product
Manuf -- Engineered Wood)....................... 206
122 Warehouse Group Ltd. (Retail -- Other General
Merchandise Stores)............................. 428
-------
634
-------
PHILIPPINES -- 0.5%
15 Philippine Long Distance Telephone Co.(a) (Other
Telecommunications)............................. 211
-------
SINGAPORE -- 3.3%
34 Fraser & Neave Ltd. (Beverage Manufacturing)...... 239
439 Keppel Land Ltd. (Lessors of Real Estate)......... 429
706 MobileOne (Asia) Ltd. (Wireless Telecommunications
Carriers)....................................... 552
484 Singapore Post Ltd. (Postal Service).............. 186
-------
1,406
-------
SOUTH KOREA -- 3.6%
2 Cheil Communications, Inc. (Advertising & Related
Services)....................................... 194
25 KorAm Bank (Commercial Banking)................... 283
72 Korea Exchange Bank(a) (International Trade
Financing (Foreign Banks))...................... 296
26 LG Corp. (Electrical Equip Manuf -- Component
Other).......................................... 216
66 LG Telecom Ltd.(a) (Other Telecommunications)..... 204
62 Pusan Bank (Consumer Lending)..................... 335
-------
1,528
-------
SPAIN -- 0.5%
42 Telefonica Publicidad e Informacion S.A.
(Advertising & Related Services)................ 209
-------
SWEDEN -- 2.4%
22 Alfa Laval AB (Fabricated Metal Manuf-Boiler,
Tank, Shipping Cont)............................ 295
51 Eniro AB (Newspaper, Book and Periodical)......... 407
13 JM AB (Construction -- Residential Building)...... 187
23 NCC AB Class B (Construction -- Nonresidential
Building)....................................... 137
-------
1,026
-------
</Table>
The accompanying notes are an integral part of these financial statements.
94
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
SWITZERLAND -- 3.0%
8 Bachem Holding AG (Pharmaceutical & Medicine
Manufacturing).................................. $ 392
32 Clariant AG (Pharmaceutical & Medicine
Manufacturing).................................. 456
1 Lindt & Spruengli AG (Food Manufacturing -- Sugar
& Confectionery Product)........................ 424
-------
1,272
-------
UNITED KINGDOM -- 6.2%
39 Cambridge Antibody Technology Group plc(a)
(Pharmaceutical & Medicine Manufacturing)....... 348
272 Emi Group plc (Sound Recording Industries)........ 807
62 FirstGroup plc (Transportation -- Rail)........... 317
102 Kesa Electricals plc (Retail -- Other General
Merchandise Stores)............................. 421
268 Securicor plc (Public -- National Security &
International Affairs).......................... 396
95 Singer & Friedlander Group plc (Other Financial
Investment Activities).......................... 340
-------
2,629
-------
Total common stock
(cost $34,837).................................. $39,118
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 21.8%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 10.3%
4,414 Navigator Prime Portfolio......................... $ 4,414
-------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 11.5%
$ 711 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 711
1,872 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 1,872
2,324 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 2,324
-------
4,907
-------
Total short-term investments
(cost $9,321)................................... $ 9,321
=======
Total investments in securities
(cost $44,158)(b)............................... $48,439
=======
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $44,244 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation.......................... $4,409
Unrealized depreciation.......................... (214)
------
Net unrealized appreciation...................... $4,195
======
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
<Table>
<Caption>
PERCENTAGE OF
DIVERSIFICATION BY INDUSTRY NET ASSETS
- --------------------------- -------------
Basic Materials 4.3%
Capital Goods 1.8%
Consumer Cyclical 16.4%
Consumer Staples 9.8%
Energy 0.4%
Finance and Insurance 17.1%
Health Care 9.1%
Services 21.2%
Technology 8.8%
Transportation 2.7%
Short Term Investments 21.8%
-----
Total 113.4%
=====
</Table>
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
MARKET CONTRACT DELIVERY APPRECIATION
DESCRIPTION VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------ -------- ---------- --------------
Australian Dollar
(Buy) $ 8 $ 8 11/05/2003 $ @@
Australian Dollar
(Buy) 59 59 11/06/2003 @@
Swiss Francs (Buy) 104 104 11/05/2003 @@
Danish Krone (Buy) 33 33 11/05/2003 @@
Euro (Buy) 76 76 11/04/2003 @@
Euro (Buy) 530 528 11/05/2003 2
British Pounds (Buy) 47 47 11/03/2003 @@
British Pounds (Buy) 71 71 11/04/2003 @@
British Pounds (Buy) 169 168 11/05/2003 1
Japanese Yen (Buy) 988 995 11/06/2003 (7)
Japanese Yen (Buy) 34 35 11/04/2003 (1)
Mexican Peso (buy) 65 65 11/03/2003 @@
Mexican Peso (buy) 67 67 11/04/2003 @@
Hong Kong Dollar
(Buy) 34 34 11/04/2003 @@
New Zealand Dollars
(Buy) 31 31 11/05/2003 @@
Swedish Krona (Buy) 202 202 11/05/2003 @@
Singapore Dollars
(Buy) 85 85 11/05/2003 @@
Euro (Sell) 21 21 11/04/2003 @@
Japanese Yen (Sell) 34 35 11/05/2003 1
-----
$ (4)
-----
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements.
95
THE HARTFORD INTERNATIONAL SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$44,158) @ ........................................ $48,439
Cash................................................. @@
Foreign currency on deposit with custodian (cost
$2)................................................ 2
Unrealized appreciation in forward foreign currency
contracts.......................................... 4
Receivables:
Investment securities sold......................... 251
Fund shares sold................................... 1,312
Dividends and interest............................. 64
Other assets......................................... 48
-------
Total assets......................................... 50,120
-------
LIABILITIES
Unrealized depreciation on forward foreign currency
contracts.......................................... 8
Payables:
Payable upon return of securities loaned (Note
2d).............................................. 4,414
Investment securities purchased.................... 2,895
Fund shares redeemed............................... 28
Payable for investment advisory and management fees
(Note 3)......................................... 32
Payable for distribution fees (Note 3)............. 1
Accrued Expenses..................................... 27
-------
Total liabilities.................................... 7,405
-------
Net assets........................................... $42,715
=======
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 3,296 shares
outstanding........................................ $35,458
Accumulated undistributed net investment income...... 117
Accumulated net realized gain on investments and
foreign currency transactions...................... 2,853
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency.................... 4,287
-------
Net assets........................................... $42,715
=======
@ Market value of securities on loan $4,175.
</Table>
<Table>
Class A
Net asset value per share ($12,320 / 953 shares
outstanding)...................................... $12.93
------
Maximum offering price per share ($12.93 / 94.5%)... $13.68
======
Class B
Net asset value per share ($2,237 / 174 shares
outstanding)...................................... $12.82
======
Class C
Net asset value per share ($3,004 / 236 shares
outstanding)...................................... $12.72
------
Maximum offering price per share ($12.72 / 99.0%)... $12.85
======
Class Y
Net asset value per share ($25,154 / 1,933 shares
outstanding)...................................... $13.02
======
@@ Due to the presentation of the financial statements in
thousands, the number or shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of these financial statements.
96
THE HARTFORD MIDCAP FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- 96.2%
BASIC MATERIALS -- 5.0%
1,865 Abitibi-Consolidated, Inc. ....................... $ 12,517
943 Pactiv Corp.(a)................................... 20,791
918 Precision Castparts Corp. ........................ 37,761
404 Rohm & Haas Co. (with rights)..................... 15,879
215 Sealed Air Corp.(a)............................... 11,466
1,437 Smurfit-Stone Container Corp. (with rights)(a).... 22,266
----------
120,680
----------
CAPITAL GOODS -- 4.0%
436 AGCO Corp.(a)..................................... 7,844
251 Eaton Corp. (with rights)......................... 25,160
207 Empresa Brasileira de Aeronautica S.A. ADR........ 5,379
635 Parker-Hannifin Corp. (with rights)............... 32,346
2,432 Xerox Corp. (with rights)(a)...................... 25,540
----------
96,269
----------
CONSUMER CYCLICAL -- 18.2%
3,011 American Tower Corp. Class A(a)................... 34,928
132 AutoZone, Inc.(a)................................. 12,695
369 Avery Dennison Corp. (with rights)................ 19,402
297 Blockbuster, Inc. Class A......................... 5,727
393 BorgWarner, Inc. ................................. 31,247
2,158 Burberry Group plc................................ 14,432
496 CDW Corp. ........................................ 29,785
427 Dollar Tree Stores, Inc.(a)....................... 16,288
275 Johnson Controls, Inc. ........................... 29,603
593 Lear Corp.(a)..................................... 34,447
309 Lennar Corp. Class A.............................. 28,345
742 Liz Claiborne, Inc. (with rights)................. 27,358
1,627 Mattel, Inc. ..................................... 31,506
791 Michaels Stores, Inc. ............................ 37,563
242 Mohawk Industries, Inc.(a)........................ 17,922
223 Nordstrom, Inc. .................................. 6,796
229 PACCAR, Inc. (with rights)........................ 18,113
1,146 PetsMart, Inc. ................................... 29,359
2,532 Rinker Group Ltd. ................................ 11,409
----------
436,925
----------
CONSUMER STAPLES -- 0.8%
628 Constellation Brands, Inc. Class A(a)............. 19,707
ENERGY -- 4.8%
867 EOG Resources, Inc. (with rights)................. 36,547
1,029 GlobalSantaFe Corp. .............................. 23,158
473 Nabors Industries Ltd.(a)......................... 17,881
1,582 XTO Energy, Inc. (with rights).................... 37,439
----------
115,025
----------
FINANCE AND INSURANCE -- 20.5%
336 Ambac Financial Group, Inc. ...................... 23,774
139 Anthem, Inc.(a)................................... 9,487
163 Astoria Financial Corp. .......................... 5,646
754 Bank of Hawaii Corp. ............................. 29,727
359 BlackRock, Inc. .................................. 18,450
614 Brown & Brown, Inc. (with rights)................. 18,693
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
FINANCE AND INSURANCE -- (CONTINUED)
646 Countrywide Financial Corp. ...................... $ 67,876
1,003 Equifax, Inc. .................................... 24,521
352 Everest Re Group Ltd. (with rights)............... 29,232
268 Golden West Financial Corp. ...................... 26,935
860 Hibernia Corp. Class A............................ 19,436
2,057 Host Marriott Corp. (REIT)(a)..................... 21,499
854 Hudson City Bancorp, Inc. ........................ 29,508
656 Investment Technology Group, Inc.(a).............. 13,034
510 IPC Holdings Ltd. ................................ 19,096
513 iStar Financial, Inc. ............................ 19,510
440 Legg Mason, Inc. ................................. 36,667
179 M&T Bank Corp. ................................... 16,771
1,712 Providian Financial Corp. (with rights)(a)........ 19,024
361 UnionBanCal Corp. ................................ 19,572
53 White Mountain Insurance Group Ltd. .............. 22,260
----------
490,718
----------
HEALTH CARE -- 12.9%
508 Applera Corp. -- Celera Genomics Group(a)......... 6,798
299 Cephalon, Inc.(a)................................. 14,042
1,053 Edwards Lifesciences Corp.(a)..................... 30,531
263 Gilead Sciences, Inc.(a).......................... 14,327
711 Guidant Corp. .................................... 36,289
1,478 Health Management Associates, Inc. Class A........ 32,729
1,397 Human Genome Sciences, Inc. (with rights)(a)...... 19,431
411 IDEC Pharmaceuticals Corp.(a)..................... 14,431
1,187 IVAX Corp.(a)..................................... 22,860
629 McKesson Corp. ................................... 19,030
1,756 Millennium Pharmaceuticals, Inc. (with
rights)(a)...................................... 27,952
686 Vertex Pharmaceuticals, Inc.(a)................... 9,005
885 Waters Corp. (with rights)(a)..................... 27,815
877 Watson Pharmaceuticals, Inc.(a)................... 34,453
----------
309,693
----------
SERVICES -- 15.0%
620 Alliance Data Systems Corp.(a).................... 17,215
1,514 ARAMARK Corp. Class B(a).......................... 40,462
1,615 BISYS Group, Inc.(a).............................. 23,095
486 CheckFree Corp.(a)................................ 13,371
402 ChoicePoint, Inc.(a).............................. 14,079
621 Diebold, Inc. (with rights)....................... 35,451
215 Education Management Corp.(a)..................... 13,609
1,022 Exel plc.......................................... 13,155
796 Fluor Corp. ...................................... 29,527
317 GTECH Holdings Corp. ............................. 14,168
767 Lamar Advertising Co.(a).......................... 23,237
425 Manpower, Inc. ................................... 19,723
553 Moody's Corp. .................................... 31,963
1,399 PeopleSoft, Inc. (with rights)(a)................. 29,041
385 Republic Services, Inc. .......................... 8,961
216 Scripps (E.W.) Co. Class A........................ 20,054
352 Univision Communications, Inc. Class A(a)......... 11,954
----------
359,065
----------
</Table>
The accompanying notes are an integral part of these financial statements.
97
THE HARTFORD MIDCAP FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- 8.6%
590 Analog Devices, Inc. (with rights)(a)............. $ 26,141
1,875 ASML Holding N.V.(a).............................. 32,906
107 BEA Systems, Inc.(a).............................. 1,487
1,642 Citizens Communications Co. (with rights)(a)...... 20,439
179 Corning, Inc.(a).................................. 1,962
507 Network Appliance, Inc.(a)........................ 12,513
1,144 Nextel Communications, Inc. Class A(a)............ 27,687
28 Rockwell Collins, Inc. ........................... 774
1,124 Siebel Systems, Inc. (with rights)(a)............. 14,154
3,265 Solectron Corp. (with rights)(a).................. 18,085
254 Symantec Corp.(a)................................. 16,916
2,112 VeriSign, Inc. (with rights)(a)................... 33,516
----------
206,580
----------
TRANSPORTATION -- 2.9%
2,088 AMR Corp.(a)...................................... 27,734
298 CNF, Inc. ........................................ 10,447
129 JetBlue Airways Corp.(a).......................... 7,423
479 Ryanair Holdings plc ADR(a)....................... 24,681
----------
70,285
----------
UTILITIES -- 3.5%
814 Cinergy Corp. (with rights)....................... 29,556
688 Energy East Corp. ................................ 15,452
387 Pinnacle West Capital Corp. (with rights)......... 14,145
756 Wisconsin Energy Corp. ........................... 24,746
----------
83,899
----------
Total common stock
(cost $1,901,073)............................... $2,308,846
==========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 9.2%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 5.1%
124,062 Boston Global Investment Trust.................... $ 124,062
----------
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- --------- ----------
FINANCE -- 4.1%
$ 14,155 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 14,155
37,250 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 37,250
46,227 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 46,227
----------
97,632
----------
Total short-term investments (cost $221,694)...... $ 221,694
==========
Total investments in securities
(cost $2,122,767)(b)............................ $2,530,540
==========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $2,134,524 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................ $433,062
Unrealized depreciation........................ (37,046)
--------
Net unrealized appreciation.................... $396,016
========
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 4.77% of total net assets as of October 31, 2003.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
<Table>
<Caption>
CONTRACT DELIVERY UNREALIZED
DESCRIPTION MARKET VALUE AMOUNT DATE APPRECIATION
- ----------- ------------ -------- -------- ------------
Australian Dollar (Buy) $340 $338 11/03/2003 $2
Australian Dollar (Buy) 99 99 11/05/2003 0
Australian Dollar (Buy) 378 376 11/06/2003 2
--
$4
==
</Table>
The accompanying notes are an integral part of these financial statements.
98
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$2,122,767) @ .................................. $2,530,540
Cash.............................................. 1
Unrealized appreciation in forward foreign
currency contracts.............................. 4
Receivables:
Investment securities sold...................... 954
Fund shares sold................................ 4,529
Dividends and interest.......................... 1,092
Other assets...................................... 161
----------
Total assets...................................... 2,537,281
==========
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)........................................... 124,062
Investment securities purchased................. 8,915
Fund shares redeemed............................ 2,097
Payable for investment advisory and management
fees (Note 3)................................. 1,471
Payable for distribution fees (Note 3).......... 180
Accrued Expenses.................................. 689
----------
Total liabilities................................. 137,414
----------
Net assets........................................ $2,399,867
==========
@ Market value of securities on loan $119,803.
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 460,000 shares authorized;
118,475 shares outstanding...................... $2,126,631
Accumulated undistributed net investment income... (4)
Accumulated net realized loss on investments...... (134,533)
Unrealized appreciation of investments in
securities...................................... 407,773
----------
Net assets........................................ $2,399,867
==========
</Table>
<Table>
Class A
Net asset value per share ($1,413,021 / 68,673
shares outstanding)............................... $20.58
------
Maximum offering price per share ($20.58 / 94.5%)... $21.78
======
Class B
Net asset value per share ($424,959 / 21,596 shares
outstanding)...................................... $19.68
======
Class C
Net asset value per share ($477,891 / 24,245 shares
outstanding)...................................... $19.71
------
Maximum offering price per share ($19.71 / 99.0%)... $19.91
======
Class Y
Net asset value per share ($83,996 / 3,961 shares
outstanding)...................................... $21.21
======
</Table>
The accompanying notes are an integral part of these financial statements.
99
THE HARTFORD MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 95.6%
BASIC MATERIALS -- 9.7%
158 Engelhard Corp. (with rights)..................... $ 4,519
43 Grupo IMSA S.A. de C.V. ADR....................... 598
542 IMC Global, Inc. (with rights).................... 3,786
86 Michelin (C.G.D.E.) Class B....................... 3,367
226 Pactiv Corp.(a)................................... 4,992
14 Pentair, Inc. .................................... 590
239 Smurfit-Stone Container Corp. (with rights)(a).... 3,698
151 Timken Co. ....................................... 2,529
--------
24,079
--------
CAPITAL GOODS -- 8.8%
388 Axcelis Technologies, Inc.(a)..................... 4,108
75 Bombardier, Inc. Class B(e)....................... 338
603 Bombardier, Inc. Class B.......................... 2,708
50 Flowserve Corp.(a)................................ 1,031
93 IHC Caland N.V. .................................. 3,980
116 Teradyne, Inc. (with rights)(a)................... 2,645
134 Yankee Candle Co., Inc.(a)........................ 3,752
80 York International Corp. ......................... 3,195
--------
21,757
--------
CONSUMER CYCLICAL -- 10.3%
46 BorgWarner, Inc. ................................. 3,645
48 CEC Entertainment, Inc.(a)........................ 2,367
276 Foot Locker, Inc. ................................ 4,942
19 Hughes Supply, Inc. (with rights)................. 715
24 M.D.C. Holdings, Inc. ............................ 1,621
78 Office Depot, Inc.(a)............................. 1,165
484 Rinker Group Ltd. ................................ 2,182
61 Ross Stores, Inc. ................................ 3,026
30 Toll Brothers, Inc.(a)............................ 1,102
82 United Stationers, Inc.(a)........................ 3,062
37 V.F. Corp. (with rights).......................... 1,575
--------
25,402
--------
CONSUMER STAPLES -- 6.3%
153 Bunge Ltd. ....................................... 4,146
158 Constellation Brands, Inc. Class A(a)............. 4,960
122 Dean Foods Co.(a)................................. 3,685
146 Sensient Technologies Corp. ...................... 2,797
--------
15,588
--------
ENERGY -- 6.2%
32 AGL Resources, Inc. .............................. 887
146 Cal Dive International, Inc.(a)................... 3,027
70 EOG Resources, Inc. (with rights)................. 2,933
47 Petro-Canada...................................... 1,905
53 Unocal Corp. (with rights)........................ 1,676
207 XTO Energy, Inc. (with rights).................... 4,907
--------
15,335
--------
FINANCE AND INSURANCE -- 24.9%
71 ACE Ltd. ADR (with rights)........................ 2,549
102 Ambac Financial Group, Inc. ...................... 7,208
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
17 Anthem, Inc.(a)................................... $ 1,184
52 Bank of Hawaii Corp. ............................. 2,065
140 CIT Group, Inc. .................................. 4,710
65 Comerica, Inc. (with rights)...................... 3,336
142 Converium Holding AG ADR.......................... 3,496
54 FirstMerit Corp. ................................. 1,402
12 Gallagher (Arthur J.) & Co. ...................... 347
208 Hibernia Corp. Class A............................ 4,687
67 Oxford Health Plans, Inc. ........................ 2,714
52 ProLogis.......................................... 1,539
80 Radian Group, Inc. ............................... 4,253
170 Reinsurance Group of America, Inc. ............... 6,779
55 RenaissanceRe Holdings Ltd. ADR................... 2,474
51 Rouse Co. ........................................ 2,202
55 St. Paul Companies, Inc. ......................... 2,105
93 UnionBanCal Corp. ................................ 5,011
155 United Rentals, Inc. (with rights)(a)............. 2,697
22 Webster Financial Corp. .......................... 979
--------
61,737
--------
HEALTH CARE -- 3.0%
63 AmerisourceBergen Corp. (with rights)............. 3,588
14 Biovail Corp.(a).................................. 329
96 Health Net, Inc. (with rights)(a)................. 3,042
19 Triad Hospitals, Inc.(a).......................... 568
--------
7,527
--------
SERVICES -- 6.7%
293 Bally Total Fitness Holding Corp.(a).............. 1,951
413 BearingPoint, Inc. (with rights)(a)............... 3,882
91 Penn National Gaming, Inc. (with rights)(a)....... 2,165
239 Republic Services, Inc. .......................... 5,548
429 UnitedGlobalCom, Inc. Class A(a).................. 3,035
--------
16,581
--------
TECHNOLOGY -- 10.4%
77 AMETEK, Inc. ..................................... 3,627
263 Arrow Electronics, Inc.(a)........................ 5,611
64 DENTSPLY International, Inc. ..................... 2,833
277 Fairchild Semiconductor International, Inc.(a).... 6,265
115 Flextronics International Ltd.(a)................. 1,614
308 Vishay Intertechnology, Inc.(a)................... 5,780
--------
25,730
--------
TRANSPORTATION -- 4.6%
24 Canadian National Railway Co. .................... 1,427
118 CNF, Inc. ........................................ 4,136
37 Continental Airlines, Inc. Class B (with
rights)(a)...................................... 707
35 CSX Corp. (with rights)........................... 1,123
127 ExpressJet Holdings, Inc.(a)...................... 1,946
107 Werner Enterprises, Inc. ......................... 1,928
--------
11,267
--------
</Table>
The accompanying notes are an integral part of these financial statements.
100
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 95.6% -- (CONTINUED)
UTILITIES -- 4.7%
87 Cinergy Corp. (with rights)....................... $ 3,173
122 PPL Corp. ........................................ 4,858
158 TXU Corp. (with rights)........................... 3,599
--------
11,630
--------
Total common stock
(cost $205,850)................................. $236,633
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 5.9%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 1.9%
4,572 Boston Global Investment Trust.................... $ 4,572
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 4.0%
$1,445 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 1,445
3,803 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 3,803
4,719 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 4,719
--------
9,967
--------
Total short-term investments
(cost $14,539).................................. $ 14,539
========
Total investments in securities
(cost $220,389)(b).............................. $251,172
========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $220,807 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $36,990
Unrealized depreciation......................... (6,627)
-------
Net unrealized appreciation..................... $30,363
=======
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 8.21% of total net assets as of October 31, 2003.
(e) Security sold within the terms of a private placement
memorandum, exempt from registration under Section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors." Pursuant to guidelines adopted by the Board
of Directors, this issue is deemed to be liquid.
The aggregate value of this security at October 31, 2003, was $338,
which represents 0.14% of total net assets.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ -------- --------- --------------
Australian Dollar (Buy) $114 $114 11/03/2003 $@@
Australian Dollar (Buy) 33 33 11/05/2003 @@
Australian Dollar (Buy) 127 126 11/06/2003 1
---
$ 1
===
@@ Due to the presentation of the financial statements in thousands, the number or shares and/or dollars round to zero.
</Table>
The accompanying notes are an integral part of these financial statements.
101
THE HARTFORD MIDCAP VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$220,389) @ ...................................... $251,172
Cash................................................ @@
Unrealized appreciation in forward foreign currency
contracts......................................... 1
Receivables:
Investment securities sold........................ 2,245
Fund shares sold.................................. 3,068
Dividends and interest............................ 114
Other assets........................................ 57
--------
Total assets........................................ 256,657
========
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2).............................................. 4,572
Investment securities purchased................... 4,081
Fund shares redeemed.............................. 131
Payable for investment advisory and management
fees (Note 3)................................... 169
Payable for distribution fees (Note 3)............ 19
Accrued Expenses.................................... 69
--------
Total liabilities................................... 9,041
--------
Net assets.......................................... $247,616
========
@ Market value of securities on loan $4,527.
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 22,018
shares outstanding................................ $217,728
Accumulated undistributed net investment income..... (1)
Accumulated net realized loss on investments and
foreign currency transactions..................... (894)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 30,783
--------
Net assets.......................................... $247,616
========
</Table>
<Table>
Class A
Net asset value per share ($155,614 / 13,749 shares
outstanding)........................................ $11.32
------
Maximum offering price per share ($11.32 / 94.5%)... $11.98
======
Class B
Net asset value per share ($42,407 / 3,812 shares
outstanding)........................................ $11.12
======
Class C
Net asset value per share ($49,566 / 4,454 shares
outstanding)........................................ $11.13
------
Maximum offering price per share ($11.13 / 99.0%)... $11.24
======
Class Y
Net asset value per share ($29 / 3 shares
outstanding)........................................ $11.46
======
@@ Due to the presentation of the financial statements in
thousands, the number of shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of these financial statements.
102
THE HARTFORD MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT YIELD (UNAUDITED) VALUE(A)
- --------- ----- ----------- --------
BASIC MATERIALS -- 2.9%
$10,000 Dupont (EI) De Nemours & Co.
12/05/2003...................................... 1.08% A1 $ 9,990
--------
CONSUMER CYCLICAL -- 1.7%
3,000 7-Eleven, Inc.
11/18/2003...................................... 1.10% A1 2,998
3,000 7-Eleven, Inc.
11/25/2003...................................... 1.10% A1 2,998
--------
Total Consumer Cyclical........................... $ 5,996
--------
CONSUMER STAPLES -- 5.6%
3,200 Archer Daniels Midland Co.
11/18/2003...................................... 1.07% A1 3,199
3,000 Archer Daniels Midland Co.
11/25/2003...................................... 1.13% A1 2,998
5,000 Cargill, Inc.
01/14/2004(d)(e)................................ 1.16% A1 5,000
5,000 Sara Lee Co.
12/09/2003...................................... 1.06% A1 4,994
3,000 Sara Lee Co.
12/15/2003...................................... 1.09% A1 2,996
--------
Total Consumer Staples............................ $ 19,187
--------
FINANCE -- 85.8%
8,500 Alliance & Leicester plc
12/05/2003...................................... 1.10% A1 8,491
8,500 American Express Credit Corp.
11/04/2003...................................... 1.05% A1 8,499
3,905 American General Finance Corp.
11/01/2003...................................... 1.18% A1 3,905
7,500 American General Finance Corp.
08/06/2004(d)................................... 1.31% A1 7,512
6,500 American Honda Finance Corp.
10/22/2004(d)(e)................................ 1.12% A1 6,500
2,039 Banc One Joint Repurchase Agreement (Note 2f)
11/03/2003...................................... 0.97% A1 2,039
3,000 Bank One Corp.
02/20/2004(d)................................... 1.41% A1 3,003
1,500 Bear Stearns Co., Inc.
06/01/2004(d)................................... 1.39% A1 1,502
5,000 Bear Stearns Co., Inc. Ser B
02/12/2004(d)................................... 1.27% A1 5,002
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT YIELD (UNAUDITED) VALUE(A)
- --------- ----- ----------- --------
FINANCE -- (CONTINUED)
$ 1,500 Bear Stearns Co., Inc. Ser B
09/21/2004(d)................................... 1.53% A1 $ 1,505
3,220 BNP Paribas Joint Repurchase Agreement (Note 2f)
11/03/2003...................................... 0.99% A1 3,220
7,000 Bradford & Bingley plc
12/08/2003...................................... 1.09% A1 6,992
3,000 Britannia Building Society
12/15/2003...................................... 1.09% A1 2,996
3,000 Britannia Building Society
12/18/2003...................................... 1.09% A1 2,996
4,000 Britannia Building Society
12/17/2003...................................... 1.09% A1 3,994
7,000 Caterpillar Financial Services Corp.
08/02/2004(d)................................... 1.27% A1 7,011
8,500 Corporate Asset Funding Co., Inc.
12/10/2003...................................... 1.07% A1 8,491
2,000 FHLMC
12/22/2003...................................... 1.06% A1 1,997
5,000 FHLMC
08/27/2004...................................... 1.25% A1 5,000
8,500 FHLMC
11/03/2004...................................... 1.40% A1 8,500
9,000 FleetBoston Financial Corp.
02/19/2004(d)................................... 1.38% A1 9,006
2,000 FNMA
12/03/2003...................................... 1.05% A1 1,998
8,500 FNMA
11/15/2004...................................... 1.43% A1 8,500
5,000 FNMA
09/03/2004...................................... 1.45% A1 5,000
6,000 General Electric Capital Corp.
09/15/2004...................................... 1.27% A1 6,291
4,625 General Electric Capital Corp.
Ser A(d) 01/28/2004............................. 1.12% A1+ 4,626
8,750 Goldman Sachs Group, Inc.
10/25/2004(d)................................... 1.11% A1 8,750
9,000 Household Finance Corp.
11/13/2003...................................... 1.14% A1 8,997
10,000 J.P. Morgan Chase & Co.
02/05/2004(d)................................... 1.26% A1 10,004
</Table>
The accompanying notes are an integral part of this financial statement.
103
THE HARTFORD MONEY MARKET FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003 (UNAUDITED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT YIELD (UNAUDITED) VALUE(A)
- --------- ----- ----------- --------
FINANCE -- (CONTINUED)
$10,000 Key Bank N.A.
03/01/2004(d)................................... 1.27% A1 $ 10,005
5,000 KFW International Finance, Inc.
12/17/2003...................................... 1.08% A1 4,993
5,100 Lehman Brothers Holdings, Inc.
04/01/2004...................................... 1.31% A1 5,212
3,500 Merrill Lynch & Co., Inc.
08/09/2004(d)................................... 1.34% A1 3,506
3,000 Merrill Lynch & Co., Inc.
06/11/2004(d)................................... 1.39% A1 3,006
10,000 Morgan Stanley Dean Witter & Co.
03/19/2004(d)................................... 1.30% A1 10,008
5,000 Nationwide Building Society
07/23/2004(d)(e)................................ 1.14% A1 5,000
7,500 Nordea North America, Inc.
11/21/2003...................................... 1.08% A1 7,495
3,000 Nordea North America, Inc.
12/29/2003...................................... 1.11% A1 2,994
9,000 Northern Rock plc, Inc.
01/16/2004(d)(e)................................ 1.15% A1 9,000
10,000 Old Line Funding Corp.
12/02/2003...................................... 1.07% A1 9,991
10,000 Preferred Receivables Funding Corp.
12/22/2003...................................... 1.08% A1 9,985
8,000 Salomon Smith Barney Holdings, Inc.
06/17/2004(d)................................... 1.26% A1+ 8,008
2,000 Salomon Smith Barney Holdings, Inc.
11/17/2003(d)................................... 1.37% A1+ 2,000
3,000 Spintab, Inc.
12/03/2003...................................... 1.10% A1 2,997
10,000 State Street Corp.
11/03/2003...................................... 1.05% A1 9,999
1,500 Toyota Motor Credit Corp.
11/13/2003...................................... 1.19% A1+ 1,502
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT YIELD (UNAUDITED) VALUE(A)
- --------- ----- ----------- --------
FINANCE -- (CONTINUED)
$10,000 Toyota Motor Credit Corp.
11/24/2003(d)................................... 1.07% A1+ $ 10,000
3,220 UBS Warburg Joint Repurchase Agreement (Note 2f)
11/03/2003...................................... 0.98% A1 3,220
8,000 Washington Mutual Bank N.A.
07/29/2004(d)................................... 1.16% A1 8,000
2,000 Wells Fargo Bank N.A.
11/24/2003(d)................................... 1.06% A1+ 2,000
5,000 Wells Fargo Bank N.A.
01/14/2004(d)................................... 1.06% A1+ 5,000
--------
Total Finance..................................... $296,248
--------
HEALTH CARE -- 1.7%
6,000 Wyeth
11/20/2003...................................... 1.11% A1 5,997
--------
TECHNOLOGY -- 2.5%
8,750 International Business Machines, Inc.
09/27/2004(d)................................... 1.26% A1 8,764
--------
Total investments in securities
(cost $346,182)(b).............................. $346,182
========
</Table>
(a) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(b) Also represents cost for federal income tax purposes.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(d) Variable Rate Securities; the yield reported is the rate in effect as of
October 31, 2003.
(e) Securities sold within the terms of a private placement
memorandum, exempt from registrations under Section 144A of the Securities
Act of 1933, as amended, and may be sold only to dealers in that program or
to other "accredited investors". Pursuant to guidelines adopted by the
Board of Directors, these issues are deemed to be liquid. The aggregate
value of these securities at October 31, 2003, was $25,500, which
represents 7.39% of total net assets.
The accompanying notes are an integral part of this financial statement.
104
- --------------------------------------------------------------------------------
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at amortized cost........ $346,182
Receivables:
Fund shares sold.................................. 1,508
Dividends and interest............................ 468
Other assets........................................ 99
--------
Total assets........................................ 348,257
--------
LIABILITIES
Payables:
Fund shares redeemed.............................. 2,887
Payable for investment advisory and management
fees (Note 3)................................... 150
Payable for distribution fees (Note 3)............ 24
Accrued Expenses.................................... 148
--------
Total liabilities................................... 3,209
--------
Net assets.......................................... $345,048
========
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 2,700,000 shares authorized; 345,048
shares outstanding;............................... $345,048
--------
Net assets.......................................... $345,048
========
</Table>
<Table>
Class A
$246,199/246,199
Net asset value per share (shares outstanding)....... $1.00
=====
Class B
$67,732/67,732
Net asset value per share (shares outstanding)....... $1.00
=====
Class C
$29,955/29,955
Net asset value per share (shares outstanding)....... $1.00
-----
Maximum offering price per share ($1.00 / 99%)....... $1.01
=====
Class Y
$1,162/1,162
Net asset value per share (shares outstanding)....... $1.00
=====
</Table>
The accompanying notes are an integral part of this financial statement.
105
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
ASSET BACKED AND COMMERCIAL -- 4.0%
MORTGAGE SECURITIES
FINANCE -- 4.0%
$ 100 AmeriCredit Automobile Receivables Trust,
5.81%, Ser 2001-1 Class B
05/06/2006...................................... AA $ 103
280 AQ Finance CEB Trust, 6.12%, Ser 2003-CE1A
08/25/2033(d)(f)................................ Baa2* 274
200 CS First Boston Mortgage Securities Corp., 2.52%,
Ser 2002-TFLA Class D 11/18/2012(d)(f).......... A 200
300 DLJ Mortgage Acceptance Corp., 7.50%, Ser 1995-CF2
Class B1 12/17/2027(f).......................... AAA 300
150 Ford Credit Auto Owner Trust, 4.29%, Ser 2003-A
Class C 11/15/2007.............................. BBB 151
43 Green Tree Financial Corp., 7.30%, Ser 1995-9
Class A6 01/15/2026............................. AAA 45
2,762 LB-UBS Commercial Mortgage Trust PAC I/O, 3.691%,
12/15/2036(e)(f)................................ AAA 177
88 LB-UBS Commercial Mortgage Trust, 3.17%,
12/15/2026...................................... AAA 89
82 Merrill Lynch Mortgage Investors, Inc., 2.12%, Ser
2000-FF1 Class M2 03/01/2031(d)................. A 83
81 Morgan Stanley Dean Witter Capital I, 4.09%, Ser
2002-IQ2 Class A1 12/15/2035.................... AAA 83
98 Morgan Stanley Dean Witter Capital I, 4.59%, Ser
2002-HQ Class A1 04/15/2034..................... AAA 101
472 Morgan Stanley Dean Witter Capital I, 5.38%, Ser
2002-TOP7 Class A1 01/15/2039................... Aaa* 500
300 Navistar Financial Corp. Owner Trust, 3.08%, Ser
2003-A Class B 11/15/2009....................... A 299
97 Soundview Home Equity Loan Trust, Inc., 8.64%, Ser
2000-1 Class M1 05/25/2030...................... AA 106
115 Wachovia Bank Commercial Mortgage Trust, 4.539%,
Ser 2002-C1 Class A1 04/15/2034................. AAA 120
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MORTGAGE SECURITIES FINANCE -- (CONTINUED)
$ 300 WFS Financial Owner Trust, 3.05%, Ser 2003-2 Class
C 12/20/2010.................................... A $ 304
-------
Total asset backed and commercial
mortgage securities
(cost $2,945)................................... 2,935
=======
CORPORATE BONDS: INVESTMENT GRADE -- 64.1%
BASIC MATERIALS -- 4.7%
300 BOC Group, Inc.,
7.45%, 06/15/2006(f)............................ A 328
250 Carlisle Companies, Inc.,
6.70%, 05/15/2008............................... BBB 253
200 Dow Chemical Co.,
7.00%, 08/15/2005............................... A-- 214
100 Falconbridge Ltd.,
7.375%, 09/01/2005.............................. BBB-- 107
125 ICI North America,
8.875%, 11/15/2006.............................. BBB 145
100 International Flavors & Fragrances, Inc.,
6.45%, 05/15/2006............................... BBB+ 109
200 International Paper Co.,
3.80%, 04/01/2008............................... BBB 198
350 International Paper Co.,
8.125%, 07/08/2005.............................. BBB 383
120 Lafarge North America, Inc.,
6.375%, 07/15/2005.............................. BBB 128
100 Pactiv Corp.,
8.00%, 04/15/2007............................... BBB 113
50 Phelps Dodge Corp.,
6.375%, 11/01/2004.............................. BBB-- 51
130 Placer Dome, Inc.,
7.125%, 06/15/2007.............................. BBB+ 144
370 Potash Corp. of Saskatchewan, Inc.,
7.125%, 06/15/2007.............................. BBB+ 407
200 Temple-Inland, Inc.,
7.25%, 09/15/2004............................... BBB 207
300 Westvaco Corp.,
8.40%, 06/01/2007............................... BBB 345
300 Worthington Industries, Inc.,
7.125%, 05/15/2006.............................. BBB 324
-------
3,456
-------
CAPITAL GOODS -- 2.2%
160 Black & Decker Corp.,
7.00%, 02/01/2006............................... BBB 176
</Table>
The accompanying notes are an integral part of this financial statement.
106
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
CAPITAL GOODS -- (CONTINUED)
$ 250 Ingersoll-Rand Co.,
6.25%, 05/15/2006............................... BBB+ $ 272
450 International Game Technology,
7.875%, 05/15/2004.............................. BBB 464
250 McDonnell Douglas Corp.,
6.875%, 11/01/2006.............................. A 272
100 Rockwell International Corp.,
6.625%, 06/01/2005.............................. A 107
300 Textron, Inc.,
6.625%, 11/15/2007.............................. A-- 325
-------
1,616
-------
CONSUMER CYCLICAL -- 7.2%
125 Albertson's, Inc.,
6.55%, 08/01/2004............................... BBB 129
250 American Stores Co.,
7.40%, 05/15/2005............................... BBB 268
500 Centex Corp.,
4.75%, 01/15/2008............................... BBB 514
100 DaimlerChrysler N.A. Holding Corp.,
4.05%, 06/04/2008............................... BBB 97
500 DaimlerChrysler N.A. Holding Corp.,
7.75%, 06/15/2005............................... BBB 539
300 Federated Department Stores, Inc.,
6.625%, 09/01/2008.............................. BBB+ 333
75 Jones Apparel Group, Inc.,
7.50%, 06/15/2004............................... BBB 77
300 Kroger Co.,
7.80%, 08/15/2007............................... BBB 345
150 Kroger Co.,
8.15%, 07/15/2006............................... BBB 169
370 Masco Corp.,
6.75%, 03/15/2006............................... BBB+ 405
250 May Department Stores Co.,
5.95%, 11/01/2008............................... BBB+ 271
100 May Department Stores Co.,
6.875%, 11/01/2005.............................. BBB+ 108
100 Mohawk Industries, Inc., 6.50%, 04/15/2007........ BBB 110
350 Newell Rubbermaid Inc.,
6.60%, 11/15/2006............................... BBB+ 387
150 Newell Rubbermaid, Inc.,
6.00%, 03/15/2007............................... BBB+ 163
250 Nine West Group, Inc.,
8.375%, Ser B 08/15/2005........................ BBB 272
300 PHH Corp.,
6.00%, 03/01/2008............................... BBB+ 321
300 Philips Electronics N.V.,
8.375%, 09/15/2006.............................. BBB+ 342
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CONSUMER CYCLICAL -- (CONTINUED)
$ 320 Pulte Corp,
7.30%, 10/24/2005............................... BBB-- $ 335
100 Safeway, Inc.,
3.80%, 08/15/2005............................... BBB 102
-------
5,287
-------
CONSUMER STAPLES -- 2.7%
300 Cadbury Schweppes Finance,
5.00%, 06/26/2007............................... BBB 314
250 ConAgra Foods, Inc.,
7.50%, 09/15/2005............................... BBB+ 273
90 ConAgra Foods, Inc.,
9.875%, 11/15/2005.............................. BBB+ 103
300 Dial Corp.,
7.00%, 08/15/2006............................... BBB-- 332
300 General Mills, Inc.,
2.625%, 10/24/2006.............................. BBB+ 298
150 Ralcorp Holdings, Inc.,
8.75%, 09/15/2004............................... BBB+ 159
150 Tyson Foods, Inc.,
6.625%, 10/17/2005.............................. BBB 157
350 Weyerhaeuser Co.,
5.50%, 03/15/2005............................... BBB 365
-------
2,001
-------
ENERGY -- 4.7%
100 Baker Hughes, Inc.,
8.00%, 05/15/2004............................... A-- 103
50 Consolidated Natural Gas Co.,
5.375%, Ser B 11/01/2006........................ BBB+ 53
325 Consumers Energy Co.,
6.25%, 09/15/2006............................... BBB-- 354
250 Kerr-McGee Corp.,
5.375%, 4/15/2005............................... BBB 260
150 Louis Dreyfus Natural Gas Corp.,
6.875%, 12/01/2007.............................. BBB+ 166
150 Ocean Energy, Inc.,
7.625% Ser B 07/01/2005......................... BBB-- 164
400 Petroleos Mexicanos,
8.85%, 09/15/2007............................... BBB-- 459
350 Repsol International Finance B.V.,
7.45%, 07/15/2005............................... BBB 379
300 Transocean, Inc.,
6.75%, 04/15/2005............................... A-- 319
50 Ultramar Diamond Shamrock Corp.,
8.00%, Ser A 03/15/2005......................... BBB 53
300 Union Oil Co. of California,
9.125%, 02/15/2006.............................. BBB+ 344
</Table>
The accompanying notes are an integral part of this financial statement.
107
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
ENERGY -- (CONTINUED)
$ 300 Union Pacific Resources Group, Inc.,
6.50%, 05/15/2005............................... BBB+ $ 320
451 Valero Energy Corp.,
6.125%, 04/15/2007.............................. BBB 493
-------
3,467
-------
FINANCE -- 18.1%
300 ACE INA Holdings, Inc.,
8.30%, 08/15/2006............................... BBB+ 341
451 Aetna, Inc.,
7.375%, 03/01/2006.............................. BBB 498
130 American General Finance Corp.,
5.875%, 12/15/2005.............................. A+ 139
100 American General Finance Corp.,
5.91%, 06/12/2006............................... A+ 108
230 Aon Corp.,
8.65%, 05/15/2005............................... A-- 251
400 Avalon Properties, Inc.,
6.875%, 12/15/2007.............................. BBB+ 446
100 AXA Financial, Inc.,
9.00%, 12/15/2004............................... A 107
100 Banca Commerciale Italiana,
8.25%, 07/15/2007............................... BBB+ 110
150 Banesto Finance Ltd.,
7.50%, 03/25/2007............................... A-- 168
250 Bank of Boston Corp.,
6.625%, 12/01/2005.............................. A-- 272
200 BankAmerica Corp.,
6.75%, 09/15/2005............................... A 217
89 Bankers Trust Corp.,
7.125%, 03/15/2006.............................. A 98
290 BBV International Finance,
6.875%, 07/01/2005.............................. A+ 310
100 Bear Stearns Co., Inc.,
7.625%, 02/01/2005.............................. A 107
200 Bombardier Capital, Inc.,
7.50%, 08/15/2004(f)............................ BBB-- 208
100 Capital One Bank,
6.875%, 02/01/2006.............................. BBB-- 109
400 Capital One Bank,
8.25%, 06/15/2005............................... BBB-- 435
200 Chase Commercial Mortgage Securities Corp.,
6.90%, Ser 1996-2 Class A2 11/19/2028........... AAA 217
300 Chase Funding Mortgage Loan Asset-Backed,
2.342%, CMO Class IA3 04/25/2024................ AAA 295
133 Chase Manhattan Corp.,
6.00%, 11/01/2005............................... A 143
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
FINANCE -- (CONTINUED)
$ 50 CIGNA Corp.,
8.25%, 01/01/2007............................... BBB $ 56
250 Countrywide Funding Corp.,
6.875%, 09/15/2005.............................. A 270
250 Credit Suisse First Boston USA, Inc.,
5.875%, 08/01/2006.............................. A+ 270
220 Credit Suisse First Boston USA, Inc.,
6.50%, 05/01/2008(f)............................ A 243
300 Equifax, Inc.,
4.95%, 11/01/2007............................... A-- 311
200 Equitable Life Assurance,
6.95%, 12/01/2005(f)............................ A 218
300 Equity Residential Properties Trust,
7.25%, 06/15/2005............................... BBB+ 323
100 ERAC USA Finance Co.,
6.625%, 02/15/2005(f)........................... BBB+ 105
225 ERAC USA Finance Co.,
8.25%, 05/01/2005(f)............................ BBB+ 244
700 Ford Motor Credit Co.,
6.875%, 02/01/2006.............................. BBB 733
100 Gables Realty L.P.,
6.80%, 03/15/2005............................... BBB 105
100 General Motors Acceptance Corp.,
4.50%, 07/15/2006............................... BBB 102
150 General Motors Acceptance Corp.,
6.125%, 02/01/2007.............................. BBB 158
600 General Motors Acceptance Corp.,
7.50%, 07/15/2005............................... BBB 642
100 Goldman Sachs Group, Inc.,
7.50%, 01/28/2005............................... A+ 107
150 Household Finance Corp.,
5.75%, 01/30/2007............................... A 162
50 Household Finance Corp.,
7.65%, 05/15/2007............................... A 56
100 Household Finance Corp.,
Floating 05/28/2004 (d)......................... A 100
200 International Lease Finance Corp.,
2.95%, 05/23/2006............................... A1* 201
100 International Lease Finance Corp.,
5.95%, 06/06/2005............................... AA-- 106
150 J.P. Morgan Chase & Co.,
5.625%, 08/15/2006.............................. A+ 161
100 Key Bank N.A., Inc.,
7.125%, 08/15/2006.............................. A-- 112
150 Lehman Brothers Holdings, Inc.,
8.75%, 03/15/2005............................... A 163
120 Lincoln National Corp.,
5.25%, 06/15/2007............................... A-- 127
</Table>
The accompanying notes are an integral part of this financial statement.
108
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
FINANCE -- (CONTINUED)
$ 293 MBNA America Bank N.A.,
6.50%, 06/20/2006............................... BBB+ $ 319
148 MBNA America Bank N.A.,
6.75%, 03/15/2008 (f)........................... BBB 165
300 Merrill Lynch & Co., Inc.,
7.00%, 04/27/2008............................... A+ 341
150 Merrill Lynch & Co., Inc.,
8.00%, 06/01/2007............................... A+ 171
150 Morgan Stanley Dean Witter & Co.,
7.75%, 06/15/2005............................... A+ 164
351 Nationslink Funding Corp.,
6.00%, Ser 1998-2 Class A1 08/20/2030........... AAA 371
250 PNC Funding Corp.,
5.75%, 08/01/2006............................... A-- 269
100 Prudential Insurance Co. of America,
6.375%, 07/23/2006 (f).......................... A+ 110
198 Residential Asset Securities Corp.,
7.505%, Ser 1999-KS3 Class AI7 10/25/2030....... AAA 209
200 Salomon Smith Barney,
6.25%, 06/15/2005............................... AA-- 213
200 Simon Property Group L.P.,
6.75%, 02/09/2004............................... BBB 203
150 Simon Property Group L.P.,
7.125%, 09/20/2007.............................. BBB 169
235 St. Paul Companies, Inc.,
7.875%, 04/15/2005.............................. BBB+ 253
150 Tyco Capital Corp.,
7.625%, 08/16/2005.............................. A 164
417 Vanderbilt Acquisition Loan Trust,
3.28%, Ser 2002-1 Cl A1 01/07/2013.............. AAA 421
150 Wellpoint Health Networks, Inc.,
6.375%, 06/15/2006.............................. A-- 164
-------
13,360
-------
HEALTH CARE -- 1.0%
200 Boston Scientific Corp.,
6.625%, 03/15/2005.............................. A-- 213
300 Quest Diagnostics, Inc.,
6.75%, 07/12/2006............................... BBB 329
150 Wyeth,
7.90%, 02/15/2005............................... A 161
-------
703
-------
SERVICES -- 8.2%
100 ARAMARK Services, Inc.,
6.75%, 08/01/2004............................... BBB-- 103
370 ARAMARK Services, Inc.,
8.15%, 05/01/2005............................... BBB-- 399
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
SERVICES -- (CONTINUED)
$ 450 Belo Corp.,
7.125%, 06/01/2007.............................. BBB-- $ 504
389 Comcast Cable Communications, Inc.,
6.375%, 01/30/2006.............................. BBB 419
115 Computer Sciences Corp.,
6.75%, 06/15/2006............................... A 127
150 Cox Enterprises, Inc.,
4.375%, 05/01/2008(f)........................... BBB 152
100 Cox Enterprises, Inc.,
8.00%, 02/15/2007(f)............................ BBB 114
250 Electronic Data Systems Corp.,
6.85%, 10/15/2004............................... BBB 259
300 Fiserv, Inc.,
3.00%, 06/27/2008............................... BBB+ 286
450 Harrah's Operating Co., Inc.,
7.125%, 06/01/2007.............................. BBB-- 505
355 Hyatt Equities LLC,
6.875%, 06/15/2007(f)........................... BBB 377
250 Marriott International, Inc.,
6.875%, Ser B 11/15/2005........................ BBB+ 271
100 Marriott International, Inc.,
7.00%, 01/15/2008............................... BBB+ 111
300 News America, Inc.,
6.625%, 01/09/2008.............................. BBB-- 333
200 Scholastic Corp.,
5.75%, 01/15/2007............................... BBB 215
100 Scholastic Corp.,
7.00%, 12/15/2003............................... BBB 101
200 Sun Microsystems, Inc.,
7.50%, 08/15/2006............................... BBB 220
200 TCI Communications, Inc.,
6.875%, 02/15/2006.............................. BBB 217
200 Turner Broadcasting System, Inc.,
7.40%, 02/01/2004............................... BBB+ 203
395 USA Networks, Inc.,
6.75%, 11/15/2005............................... BBB-- 423
300 Walt Disney Co.,
7.30%, 02/08/2005............................... BBB+ 320
350 WMX Technologies,
7.00%, 10/15/2006............................... BBB 388
-------
6,047
-------
TECHNOLOGY -- 9.1%
300 AT&T Corp.,
7.00%, 11/15/2006............................... BBB 332
100 AT&T Wireless Services, Inc., 6.875%,
04/18/2005...................................... BBB 106
400 AT&T Wireless Services, Inc.,
7.50%, 05/01/2007............................... BBB 449
350 British Telecommunications plc,
7.875%, 12/15/2005.............................. A-- 388
300 Cingular Wireless LLC,
5.625%, 12/15/2006.............................. A+ 323
</Table>
The accompanying notes are an integral part of this financial statement.
109
THE HARTFORD SHORT DURATION FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT GRADE -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
$ 290 Cox Communications, Inc.,
7.75%, 08/15/2006............................... BBB $ 327
560 Deutsche Telekom International Finance B.V.,
8.25%, 06/15/2005............................... BBB+ 612
500 France Telecom S.A.,
8.45%, 03/01/2006............................... BBB 560
450 Hewlett-Packard Co.,
5.75%, 12/15/2006............................... A-- 486
275 Maytag Corp.,
6.875%, 03/31/2006.............................. BBB 298
500 Motorola, Inc.,
6.75%, 02/01/2006............................... BBB 538
250 Puget Sound Energy, Inc.,
3.363%, 06/01/2008.............................. BBB 242
450 Raytheon Co.,
8.20%, 03/01/2006............................... BBB- 503
400 Sprint Capital Corp.,
7.90%, 03/15/2005............................... BBB-- 428
250 Time Warner Companies, Inc.,
8.11%, 08/15/2006............................... BBB+ 282
250 US Cellular Corp.,
7.25%, 08/15/2007............................... A-- 257
475 Verizon Wireless Capital LLC,
5.375%, 12/15/2006.............................. A+ 507
75 Vodafone Group plc,
7.625%, 02/15/2005.............................. A 80
-------
6,718
-------
TRANSPORTATION -- 1.7%
325 CSX Corp.,
9.00%, 08/15/2006............................... BBB 377
280 Norfolk Southern Corp.,
7.40%, 09/15/2006............................... BBB 316
350 TTX Co.,
3.875%, 03/01/2008(f)........................... A+ 341
200 Union Pacific Corp.,
7.60%, 05/01/2005............................... BBB 217
-------
1,251
-------
UTILITIES -- 4.5%
340 Appalachian Power Co.,
4.80%, Ser E 06/15/2005......................... BBB 353
145 Appalachian Power Co.,
6.80%, 03/01/2006............................... BBB 158
50 Baltimore Gas & Electric Co., Inc.,
6.625%, 03/15/2008.............................. A 56
322 Commonwealth Edison Co.,
6.40%, 10/15/2005............................... BBB+ 346
200 DTE Energy Co.,
6.00%, 06/01/2004............................... BBB 205
250 FPL Group Capital, Inc.,
3.25%, 04/11/2006............................... A-- 253
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
UTILITIES -- (CONTINUED)
$ 250 Georgia Power Co.,
6.20%, 02/01/2006............................... A $ 272
140 Niagara Mohawk Power Corp.,
9.75%, 11/01/2005............................... A+ 159
250 Northeast Utilities, Inc.,
3.30%, 06/01/2008............................... BBB 241
300 Southwestern Public Service Co.,
5.125%, 11/01/2006.............................. BBB 319
255 Tampa Electric Co.,
5.375%, 08/15/2007.............................. BBB-- 267
120 Texas Eastern Transmission L.P.,
5.25%, 07/15/2007............................... BBB+ 127
250 Texas-New Mexico Power Co.,
6.125%, 06/01/2008(f)........................... BBB-- 252
300 TXU Electric Co.,
6.25%, 10/01/2004............................... BBB 312
-------
3,320
-------
Total corporate bonds: investment grade (cost
$46,797)........................................ $47,226
=======
U.S. GOVERNMENT SECURITIES -- 29.2%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 4.9%
300 3.125% 2006....................................... $ 304
1,000 5.50% 2029........................................ 1,032
500 6.00% 2027........................................ 508
243 6.00% 2032........................................ 249
524 6.50% 2017........................................ 549
900 7.00% 2028........................................ 943
-------
3,585
-------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 3.6%
1,000 6.00% 2030........................................ 1,042
989 6.00% 2032 -- 2033................................ 1,016
575 6.50% 2032........................................ 597
-------
2,655
-------
GOVERNMENT NATIONAL MORTGAGE -- 4.0%
1,000 6.00% 2032........................................ 1,010
1,500 6.00% 2033........................................ 1,545
386 7.00% 2032........................................ 408
-------
2,963
-------
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.5%
400 3.00% 2008........................................ 392
-------
</Table>
The accompanying notes are an integral part of this financial statement.
110
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(B)
- --------- --------
U.S. GOVERNMENT SECURITIES -- (CONTINUED)
U.S. TREASURY SECURITIES -- 16.2%
$ 780 3.375% 2007(g).................................... $ 991
8,615 3.625% 2008(g).................................... 10,939
-------
11,930
-------
Total U.S. government securities (cost $21,632)... $21,525
=======
Total long-term investments
(cost $71,374).................................. $71,686
=======
SHORT-TERM INVESTMENTS -- 1.7%
FINANCE -- 1.7%
297 Banc One Joint Repurchase Agreement,
0.97%, 11/03/2003 (Note 2f)..................... $ 297
470 BNP Paribas Joint Repurchase Agreement,
0.99%, 11/03/2003 (Note 2f)..................... 470
470 UBS Warburg Joint Repurchase Agreement,
0.98%, 11/03/2003 (Note 2f)..................... 470
-------
1,237
-------
Total short-term investments
(cost $1,237)................................... $ 1,237
=======
Total investments in securities (cost
$72,611)(a)..................................... $72,923
=======
</Table>
<Table>
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $72,611 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation.......................... $ 679
Unrealized depreciation.......................... (367)
-----
Net unrealized appreciation...................... $ 312
=====
</Table>
<Table>
(b) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 5.80% of total net assets as of October 31, 2003.
(d) Variable rate securities; the yield reported is the rate in effect as of
October 31, 2003.
(e) The interest rate disclosed for interest only strips represents the
effective yield at October 31, 2003, based upon the estimated timing and
amount of future cash flows.
(f) Securities sold within the terms of a private placement memorandum,
exempt from registration under Section 144A of the securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of Directors, these issues are determined to be liquid. The aggregate
value of these securities at October 31, 2003, was $3,808, which
represents 5.17% of total net assets.
(g) U.S. Treasury inflation-protection securities (TIPS) are securities in
which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
* Moody's Rating
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$72,611)......................................... $72,923
Cash............................................... 2
Receivables:
Fund shares sold................................. 895
Dividends and interest........................... 1,005
Other assets....................................... 70
-------
Total assets....................................... 74,895
-------
LIABILITIES
Payables:
Investment securities purchased.................. 297
Fund shares redeemed............................. 912
Payable for investment advisory and management
fees (Note 3).................................. 34
Payable for distribution fees (Note 3)........... 7
Accrued Expenses................................... 26
-------
Total liabilities.................................. 1,276
-------
Net assets......................................... $73,619
=======
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 7,260 shares
outstanding....................................... $73,500
Accumulated undistributed net investment income..... 28
Accumulated net realized loss on investments and
foreign currency transactions..................... (221)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 312
-------
Net assets.......................................... $73,619
=======
</Table>
<Table>
Class A
Net asset value per share ($32,753 / 3,230 shares
outstanding)...................................... $10.14
------
Maximum offering price per share ($10.14 / 97.0%)... $10.45
======
Class B
Net asset value per share ($10,206 / 1,007 shares
outstanding)...................................... $10.14
======
Class C
Net asset value per share ($30,660 / 3,023 shares
outstanding)...................................... $10.14
------
Maximum offering price per share ($10.14 / 99.0%)... $10.24
======
</Table>
The accompanying notes are an integral part of this financial statement.
111
THE HARTFORD SMALL COMPANY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 92.3%
BASIC MATERIALS -- 4.9%
231 Alkermes, Inc. (with rights)(a)................... $ 2,997
143 Arch Coal, Inc. .................................. 3,509
97 Ceradyne, Inc.(a)................................. 4,010
66 Trex Co., Inc.(a)................................. 2,446
--------
12,962
--------
CAPITAL GOODS -- 3.3%
44 Leapfrog Enterprises, Inc.(a)..................... 1,523
69 Moog, Inc. Class A(a)............................. 2,926
77 Rudolph Technologies, Inc.(a)..................... 2,025
167 Scientific Games Corp. Class A(a)................. 2,219
--------
8,693
--------
CONSUMER CYCLICAL -- 12.5%
109 A.C. Moore Arts & Crafts, Inc.(a)................. 2,524
552 American Tower Corp. Class A(a)................... 6,403
54 Dick's Sporting Goods, Inc.(a).................... 2,474
51 ESCO Technologies, Inc.(a)........................ 2,201
67 Fred's, Inc. ..................................... 2,536
315 Hollywood Entertainment Corp.(a).................. 4,781
148 Insight Enterprises, Inc.(a)...................... 2,482
51 K-Swiss, Inc. .................................... 2,228
71 M.D.C. Holdings, Inc. ............................ 4,809
91 Ports Design Ltd.(a).............................. 164
80 RARE Hospitality International, Inc.(a)........... 1,988
86 Sigma Designs, Inc.(a)............................ 731
--------
33,321
--------
CONSUMER STAPLES -- 0.6%
100 Peet's Coffee & Tea, Inc.(a)...................... 1,685
--------
ENERGY -- 1.9%
84 Cabot Oil & Gas Corp. ............................ 2,139
73 Patina Oil & Gas Corp. (with rights).............. 3,063
--------
5,202
--------
FINANCE AND INSURANCE -- 9.0%
29 Affiliated Managers Group, Inc.(a)................ 2,074
89 AMCORE Financial, Inc. ........................... 2,411
87 Arch Capital Group Ltd.(a)........................ 3,162
131 First Niagara Financial Group, Inc. .............. 1,869
306 HealthExtras, Inc.(a)............................. 3,589
46 iShares Russell 2000 Growth Index Fund............ 2,623
87 Platinum Underwriters Holdings Ltd. .............. 2,514
73 ProAssurance Corp.(a)............................. 2,194
13 The First Marblehead Corp.(a)..................... 277
271 U.S.I. Holdings Corp.(a).......................... 3,438
--------
24,151
--------
HEALTH CARE -- 16.0%
105 Abaxis, Inc.(a)................................... 1,815
152 Abgenix, Inc. (with rights)(a).................... 1,866
56 AmSurg Corp. (with rights)(a)..................... 2,015
106 AtheroGenics, Inc. (with rights)(a)............... 1,751
705 Beverly Enterprises, Inc.(a)...................... 4,277
107 Ciphergen Biosystems, Inc.(a)..................... 1,167
107 Curative Health Services, Inc.(a)................. 1,526
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
HEALTH CARE -- (CONTINUED)
49 CV Therapeutics, Inc. (with rights)(a)............ $ 856
205 Cytyc Corp.(a).................................... 2,652
42 eResearch Technology, Inc.(a)..................... 1,931
22 INAMED Corp.(a)................................... 1,868
17 Kosan Biosciences, Inc.(a)........................ 153
77 Medicines Co.(a).................................. 2,059
128 Merit Medical Systems, Inc.(a).................... 3,358
87 NPS Pharmaceuticals, Inc.(a)...................... 2,295
90 Odyssey HealthCare, Inc. (with rights)(a)......... 2,506
178 Option Care, Inc.(a).............................. 1,744
78 Orthofix International N.V.(a).................... 2,842
179 Osteotech, Inc.(a)................................ 1,451
2 Respironics, Inc.(a).............................. 92
58 Telik, Inc.(a).................................... 1,178
79 Vertex Pharmaceuticals, Inc.(a)................... 1,041
61 Zoll Medical Corp.(a)............................. 2,084
--------
42,527
--------
SERVICES -- 13.3%
62 Alliance Data Systems Corp.(a).................... 1,709
86 Cumulus Media, Inc. Class A(a).................... 1,606
169 DiamondCluster International, Inc.(a)............. 1,502
48 Education Management Corp.(a)..................... 3,026
29 Embarcadero Technologies, Inc.(a)................. 377
416 Enterasys Networks, Inc.(a)....................... 1,622
181 Exelixis, Inc.(a)................................. 1,347
39 Lin TV Corp.(a)................................... 880
180 MPS Group, Inc.(a)................................ 1,720
148 Navigant Consulting, Inc.(a)...................... 2,432
112 Netscreen Technologies, Inc.(a)................... 2,971
394 Sapient Corp.(a).................................. 2,161
1,572 Sirius Satellite Radio, Inc.(a)................... 3,693
235 Stake Technology Ltd.(a).......................... 2,249
56 University of Phoenix Online(a)................... 3,849
197 webMethods, Inc. (with rights)(a)................. 1,706
124 Wynn Resorts Ltd.(a).............................. 2,491
--------
35,341
--------
TECHNOLOGY -- 25.9%
188 Agile Software Corp. (with rights)(a)............. 2,061
201 ASE Test Ltd. ADR(a).............................. 2,511
419 Brocade Communications Systems, Inc. (with
rights)(a)...................................... 2,746
64 Cognos, Inc.(a)................................... 2,190
571 Crown Castle International Corp.(a)............... 7,234
136 Dot Hill Systems Corp. (with rights)(a)........... 1,826
34 DSP Group, Inc.(a)................................ 817
122 Exar Corp.(a)..................................... 1,962
87 FuelCell Energy, Inc.(a).......................... 1,328
393 MEMC Electronic Materials, Inc.(a)................ 4,398
185 Microsemi Corp.(a)................................ 3,836
291 Mindspeed Technologies, Inc.(a)................... 1,491
214 Networks Associates, Inc.(a)...................... 2,984
44 NII Holdings, Inc. Class B(a)..................... 3,425
620 ON Semiconductor Corp.(a)......................... 2,667
174 Overland Storage, Inc.(a)......................... 3,434
213 Pericom Semiconductor Corp. (with rights)(a)...... 2,428
</Table>
The accompanying notes are an integral part of these financial statements.
112
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
TECHNOLOGY -- (CONTINUED)
61 Plantronics, Inc.(a).............................. $ 1,705
104 Polycom, Inc.(a).................................. 2,086
109 Quantum Fuel Systems Technologies Worldwide,
Inc.(a)......................................... 996
410 Red Hat, Inc.(a).................................. 6,163
138 Semtech Corp.(a).................................. 3,072
1,402 Techtronic Industries Co. Ltd..................... 3,864
97 Wilson Greatbatch Technologies, Inc. (with
rights)(a)...................................... 3,639
--------
68,863
--------
TRANSPORTATION -- 4.9%
376 AMR Corp.(a)...................................... 4,996
81 Old Dominion Freight Line, Inc.(a)................ 2,602
7 Overnight Corp.(a)................................ 149
157 Yellow Corp.(a)................................... 5,144
--------
12,891
--------
Total Common Stock
(Cost $202,352)................................. $245,636
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 13.3%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 6.7%
17,886 Boston Global Investment Trust.................... $ 17,886
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 6.6%
$ 2,522 ABN AMRO Joint Repurchase Agreement,..............
1.00%, 11/03/03 (Note 2f) 2,522
6,636 BNP Paribas Joint Repurchase Agreement,...........
1.00%, 11/03/03 (Note 2f) 6,636
8,234 UBS Securities Joint Repurchase Agreement,........
0.98%, 11/03/03 (Note 2f) 8,234
--------
17,392
--------
Total Short-Term Investments......................
(Cost $35,278) $ 35,278
========
Total Investments in Securities...................
(Cost $237,630)(b) $280,914
========
</Table>
<Table>
(a) Presently non-income producing.
(b) At October 31, 2003 the cost of securities for federal income tax
purposes is $239,067 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation........................ $ 48,550
Unrealized depreciation........................ (6,703)
--------
Net unrealized appreciation.................... $ 41,847
========
</Table>
<Table>
(c) See Note 2b of accompanying Notes of Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 5.20% of total net assets as of October 31, 2003.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$237,630)@....................................... $ 280,914
Cash............................................... @@
Receivables:
Investment securities sold....................... 5,783
Fund shares sold................................. 2,069
Dividends and interest........................... 11
Other assets....................................... 65
---------
Total assets....................................... 288,842
---------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................ 17,886
Foreign currency on credit with custodian (cost
@@ )........................................... 3
Investment securities purchased.................. 4,226
Fund shares redeemed............................. 347
Payable for investment advisory and management
fees (Note 3).................................. 185
Payable for distribution fees (Note 3)........... 20
Accrued Expenses................................... 80
---------
Total liabilities.................................. 22,747
---------
Net assets......................................... $ 266,095
=========
</Table>
<Table>
@ Market value of securities on loan $15,684.
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 300,000 shares authorized;
19,037 shares outstanding....................... $ 333,174
Accumulated net realized loss on investments and
foreign currency transactions................... (110,360)
Unrealized appreciation of investments in
securities and the translations of assets and
liabilities denominated in foreign currency..... 43,281
---------
Net assets........................................ $ 266,095
=========
</Table>
<Table>
Class A
Net asset value per share ($141,327 / 9,899 shares
outstanding)...................................... $14.28
------
Maximum offering price per share ($14.28 / 94.5%)... $15.11
======
Class B
Net asset value per share ($58,286 / 4,315 shares
outstanding)...................................... $13.51
======
Class C
Net asset value per share ($52,010 / 3,847 shares
outstanding)...................................... $13.52
------
Maximum offering price per share($13.52 / 99.0%).... $13.66
======
Class Y
Net asset value per share ($14,472 / 976 shares
outstanding)...................................... $14.83
======
@@ Due to the presentation of the financial statements in
thousands, the number or shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of these financial statements.
113
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 98.2%
BASIC MATERIALS -- 3.9%
24 Cabot Microelectronics Corp.(a)................... $ 1,391
34 Glatfelter........................................ 434
114 Longview Fibre Co. (with rights).................. 1,225
15 Minerals Technologies, Inc. (with rights)......... 806
50 Precision Castparts Corp. ........................ 2,044
17 Schweitzer-Mauduit International, Inc. ........... 442
17 Select Comfort Corp.(a)........................... 516
39 Wausau-Mosinee Paper Corp. ....................... 483
--------
7,341
--------
CAPITAL GOODS -- 6.4%
26 Action Performance Companies, Inc.(a)............. 532
21 Albany International Corp. Class A................ 634
77 Armor Holdings, Inc.(a)........................... 1,492
77 Callaway Golf Co. ................................ 1,255
22 DuPont Photomasks, Inc. (with rights)(a).......... 505
34 Engineered Support Systems, Inc. ................. 2,265
38 Graco, Inc. (with rights)......................... 1,440
17 Moog, Inc. Class A(a)............................. 700
109 Nautilus Group, Inc. ............................. 1,698
42 Photronics, Inc.(a)............................... 905
14 York International Corp. ......................... 556
--------
11,982
--------
CONSUMER CYCLICAL -- 10.4%
42 Aeropostale, Inc.(a).............................. 1,296
26 AFC Enterprises, Inc.(a).......................... 439
23 Bebe Stores, Inc.(a).............................. 638
23 CEC Entertainment, Inc.(a)........................ 1,130
32 GameStop Corp.(a)................................. 545
18 Granite Construction, Inc. ....................... 352
30 Guitar Center, Inc.(a)............................ 973
120 Hollywood Entertainment Corp.(a).................. 1,828
58 Hot Topic, Inc.(a)................................ 1,669
967 i2 Technologies, Inc. (with rights)(a)............ 1,711
20 Owens & Minor, Inc. .............................. 407
111 Pacific Sunwear of California, Inc.(a)............ 2,556
91 PolyMedica Corp. ................................. 2,681
60 Steven Madden Ltd. (with rights)(a)............... 1,288
50 Washington Group Int'l., Inc.(a).................. 1,378
24 Wolverine World Wide, Inc. (with rights).......... 485
--------
19,376
--------
CONSUMER STAPLES -- 0.4%
39 Sensient Technologies Corp. ...................... 745
--------
ENERGY -- 2.8%
48 Cabot Oil & Gas Corp. ............................ 1,234
126 Chesapeake Energy Corp. (with rights)............. 1,508
51 Forest Oil Corp.(a)............................... 1,184
32 Patina Oil & Gas Corp. (with rights).............. 1,370
--------
5,296
--------
FINANCE AND INSURANCE -- 10.8%
18 Affiliated Managers Group, Inc.(a)................ 1,320
83 American Capital Strategies Ltd. ................. 2,238
27 American Home Mortgage Holdings, Inc. ............ 559
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
FINANCE AND INSURANCE -- 10.8% -- (CONTINUED)
40 American Medical Security Group, Inc.(a).......... $ 913
28 AMERIGROUP Corp.(a)............................... 1,167
70 Clark, Inc.(a).................................... 1,049
22 Downey Financial Corp. ........................... 987
18 First BanCorp Puerto Rico. ....................... 596
20 Hancock Holding Co. .............................. 1,156
27 Hanmi Financial Corp. ............................ 562
31 IndyMac Mortgage Holdings, Inc. .................. 897
53 Investment Technology Group, Inc.(a).............. 1,060
38 Irwin Financial Corp. ............................ 1,065
19 LandAmerica Financial Group, Inc. ................ 945
40 NetBank, Inc. (with rights)....................... 552
3 Old Second Bancorp, Inc. ......................... 152
10 Peoples Bancorp, Inc. ............................ 288
14 PS Business Parks, Inc. (REIT).................... 543
59 Reinsurance Group of America, Inc. ............... 2,361
69 Scottish Re Group Ltd. ........................... 1,496
9 State Financial Services Corp. ................... 229
--------
20,135
--------
HEALTH CARE -- 17.3%
129 Abgenix, Inc. (with rights)(a).................... 1,577
64 Advanced Medical Optics, Inc.(a).................. 1,281
51 Alexion Pharmaceuticals, Inc.(a).................. 942
43 Alpharma, Inc. Class A............................ 788
92 Applera Corp. -- Celera Genomics Group(a)......... 1,223
130 Ciphergen Biosystems, Inc.(a)..................... 1,415
103 CV Therapeutics, Inc. (with rights)(a)............ 1,819
192 Cytyc Corp.(a).................................... 2,486
49 Diagnostic Products Corp. ........................ 1,992
253 Gene Logic, Inc.(a)............................... 1,257
21 Haemonetics Corp.(a).............................. 484
292 Incyte Corp.(a)................................... 1,544
15 Invacare Corp. ................................... 595
63 Kos Pharmaceuticals, Inc.(a)...................... 2,502
80 Kosan Biosciences, Inc.(a)........................ 734
52 NPS Pharmaceuticals, Inc.(a)...................... 1,361
99 Nu Skin Enterprises, Inc. ........................ 1,577
11 OSI Pharmaceuticals, Inc. (with rights)(a)........ 311
78 Perrigo Co. ...................................... 1,048
69 Pharmacopeia, Inc.(a)............................. 861
112 Regeneron Pharmaceutical, Inc.(a)................. 1,554
68 Respironics, Inc.(a).............................. 2,847
9 Ventana Medical Systems, Inc.(a).................. 356
83 Vertex Pharmaceuticals, Inc.(a)................... 1,086
34 Viasys Healthcare, Inc. (with rights)(a).......... 610
--------
32,250
--------
SERVICES -- 21.9%
84 Acxiom Corp.(a)................................... 1,336
19 Advisory Board Co.(a)............................. 695
36 ADVO, Inc. ....................................... 1,600
50 Anteon International Corp.(a)..................... 1,721
27 Argosy Gaming Co.(a).............................. 643
32 Aztar Corp.(a).................................... 658
15 Bankrate, Inc.(a)................................. 232
34 Beasley Broadcast Group, Inc. Class A(a).......... 498
</Table>
The accompanying notes are an integral part of these financial statements.
114
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
SERVICES -- (CONTINUED)
27 Black Box Corp. .................................. $ 1,167
16 CACI International, Inc.(a)....................... 768
175 Charter Communications, Inc. Class A(a)........... 747
55 Coinstar, Inc.(a)................................. 806
76 Cyberguard Corp.(a)............................... 658
175 Dendrite International, Inc.(a)................... 2,646
394 Digital Generation Systems, Inc.(a)............... 760
75 Digital Insight Corp.(a).......................... 1,563
120 Enterasys Networks, Inc.(a)....................... 468
153 Exelixis, Inc.(a)................................. 1,135
196 Gartner, Inc. Class A(a).......................... 2,494
223 Hollywood Media Corp.(a).......................... 443
91 Hypercom Corp.(a)................................. 447
45 IDX Systems Corp.(a).............................. 1,179
33 ITT Educational Services, Inc.(a)................. 1,638
35 Manhattan Associates, Inc.(a)..................... 974
38 MAXIMUS, Inc.(a).................................. 1,323
174 McDATA Corp. (with rights)(a)..................... 1,792
34 Mentor Graphics Corp. (with rights)(a)............ 573
21 MTS Systems Corp. ................................ 369
40 Pegasus Communications Corp.(a)................... 730
55 Per-Se Technologies, Inc.(a)...................... 748
104 PRG-Schultz International, Inc.(a)................ 495
204 Radiant Systems, Inc.(a).......................... 1,360
51 Red Robin Gourmet Burgers, Inc.(a)................ 1,491
21 Resources Connection, Inc.(a)..................... 517
97 Right Management Consultants, Inc.(a)............. 1,749
398 UnitedGlobalCom, Inc. Class A(a).................. 2,818
65 VitalWorks, Inc.(a)............................... 328
55 Watson Wyatt & Co. Holdings, Inc.(a).............. 1,325
--------
40,894
--------
TECHNOLOGY -- 24.1%
166 Activision, Inc.(a)............................... 2,500
212 Actuate Corp.(a).................................. 753
35 Advanced Fibre Communications, Inc.(a)............ 845
16 AMETEK, Inc. ..................................... 734
22 Benchmark Electronics, Inc. (with rights)(a)...... 1,067
62 Boston Communications Group, Inc.(a).............. 584
57 Checkpoint Systems, Inc.(a)....................... 1,074
69 Conexant Systems, Inc.(a)......................... 402
58 CSG Systems International, Inc.(a)................ 671
29 CTS Corp. ........................................ 318
36 Electronics for Imaging, Inc.(a).................. 984
31 Emulex Corp.(a)................................... 889
82 ESS Technology, Inc.(a)........................... 1,144
44 Exar Corp.(a)..................................... 705
78 Fairchild Semiconductor International, Inc.(a).... 1,772
31 FileNET Corp.(a).................................. 823
20 FindWhat.com(a)................................... 334
77 FLIR Systems, Inc.(a)............................. 2,407
142 General Communication, Inc. Class A(a)............ 1,403
46 Genesis Microchip, Inc.(a)........................ 758
38 Hutchinson Technology, Inc.(a).................... 1,273
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
TECHNOLOGY -- (CONTINUED)
60 Hyperion Solutions Corp. (with rights)(a)......... $ 2,006
53 InVision Technologies, Inc.(a).................... 1,451
37 Kronos, Inc.(a)................................... 2,232
295 LookSmart Ltd.(a)................................. 510
56 Methode Electronics, Inc. Class A (with rights)... 668
222 ON Semiconductor Corp.(a)......................... 956
116 Pegasystems, Inc.(a).............................. 883
28 Plantronics, Inc.(a).............................. 765
66 Powerwave Technologies, Inc. (with rights)(a)..... 428
152 Primus Telecommunications Group, Inc.(a).......... 1,397
100 PTEK Holdings, Inc.(a)............................ 871
227 Rainbow Technologies, Inc.(a)..................... 2,794
11 Silicon Laboratories, Inc.(a)..................... 594
86 TALK America Holdings, Inc.(a).................... 1,074
94 Tekelec(a)........................................ 1,516
51 Transaction Systems Architects, Inc.(a)........... 1,024
282 Trizetto Group, Inc. (with rights)(a)............. 1,915
282 Visual Networks, Inc.(a).......................... 499
91 WebEx Communications, Inc.(a)..................... 2,010
--------
45,033
--------
UTILITIES -- 0.2%
20 Cleco Corp. ...................................... 335
--------
Total common stock
(cost $158,737)................................. $183,387
========
</Table>
<Table>
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 8.3%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 7.2%
7,398 Evergreen Institutional Money Market Fund......... $ 7,398
6,083 Evergreen Prime Cash Management Money Market
Fund............................................ 6,083
--------
13,481
--------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 1.1%
$ 217 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 217
571 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 571
709 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 709
--------
1,497
--------
450 US Treasury Bill, 0.89%, 01/08/2004(e)............ 449
--------
1,946
--------
Total short-term investments (cost $15,427)....... $ 15,427
========
Total investments in securities (cost
$174,164)(b).................................... $198,814
========
</Table>
The accompanying notes are an integral part of these financial statements.
115
THE HARTFORD SMALLCAP GROWTH FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $175,550 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation........................ $ 32,737
Unrealized depreciation........................ (9,473)
--------
Net unrealized appreciation.................... $ 23,264
========
</Table>
<Table>
(c) See Note 2b of accompanying Notes of Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(e) Security pledged as initial margin deposit for 3 open Russell 2000 Index
December 2003 Futures contracts. As of October 31, 2003, these contracts
had a value of $793 with unrealized appreciation of $28.
</Table>
<Table>
<Caption>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$174,164) @....................................... $198,814
Receivables:
Investment securities sold........................ 3,810
Fund shares sold.................................. 532
Dividends and interest............................ 32
Other assets........................................ 61
--------
Total assets........................................ 203,249
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 13,481
Investment securities purchased................... 2,738
Fund shares redeemed.............................. 170
Payable for investment advisory and management
fees (Note 3)................................... 140
Payable for distribution fees (Note 3)............ 15
Accrued Expenses.................................... 19
Variation margin payable............................ 4
--------
Total liabilities................................... 16,567
--------
Net assets.......................................... $186,682
========
@ Market value of securities on loan $12,149.
</Table>
<Table>
<Caption>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.0001
per share; 21,000,000 shares authorized; 8,373
shares outstanding................................ $247,427
Accumulated net realized loss on investments........ (85,423)
Unrealized appreciation of investments in
securities........................................ 24,678
--------
Net assets.......................................... $186,682
========
</Table>
<Table>
Class A
Net asset value per share ($17,544 / 766 shares
outstanding)...................................... $22.91
------
Maximum offering price per share ($22.91 / 94.5%)... $24.24
======
Class B
Net asset value per share ($6,571 / 313 shares
outstanding)...................................... $20.99
======
Class C
Net asset value per share ($5,076 / 242 shares
outstanding)...................................... $20.99
------
Maximum offering price per share ($20.99 / 99.0%)... $21.20
======
Class H
Net asset value per share ($20,767 / 988 shares
outstanding)...................................... $21.02
======
Class L
Net asset value per share ($112,621 / 4,917 shares
outstanding)...................................... $22.90
------
Maximum offering price per share ($22.90 /95.25%)... $24.04
======
Class M
Net asset value per share ($17,992 / 856 shares
outstanding)...................................... $21.00
======
Class N
Net asset value per share ($6,110 / 291 shares
outstanding)...................................... $21.02
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $23.06
======
@@ Due to the presentation of the financial statements in
thousands, the number or shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of these financial statements.
116
THE HARTFORD STOCK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
COMMON STOCK -- 99.0%
BASIC MATERIALS -- 6.8%
187 3M Co. ........................................... $ 14,764
820 Alcoa, Inc. ...................................... 25,894
552 Dow Chemical Co. ................................. 20,794
379 DuPont (E.I.) de Nemours & Co. ................... 15,307
678 Gillette Co. (with rights)........................ 21,619
444 International Paper Co. .......................... 17,452
----------
115,830
----------
CAPITAL GOODS -- 3.3%
274 Illinois Tool Works, Inc. ........................ 20,145
170 Northrop Grumman Corp. (with rights).............. 15,198
240 United Technologies Corp. ........................ 20,334
----------
55,677
----------
CONSUMER CYCLICAL -- 8.8%
306 Caterpillar, Inc. (with rights)................... 22,431
630 Costco Wholesale Corp.(a)......................... 22,283
1,021 Gap, Inc. ........................................ 19,488
975 Home Depot, Inc. ................................. 36,158
88 Kohl's Corp.(a)................................... 4,912
362 Masco Corp. (with rights)......................... 9,952
285 NIKE, Inc. Class B................................ 18,180
432 Target Corp. (with rights)........................ 17,148
----------
150,552
----------
CONSUMER STAPLES -- 6.6%
793 Coca-Cola Co. .................................... 36,795
370 General Mills, Inc. .............................. 16,613
678 PepsiCo, Inc. .................................... 32,408
207 Procter & Gamble Co. ............................. 20,326
122 Weyerhaeuser Co. ................................. 7,318
----------
113,460
----------
ENERGY -- 5.3%
276 Chevron Texaco Corp. (with rights)................ 20,527
1,463 Exxon Mobil Corp. ................................ 53,513
361 Schlumberger Ltd. ................................ 16,951
----------
90,991
----------
FINANCE AND INSURANCE -- 21.2%
449 American Express Co. ............................. 21,076
772 American International Group, Inc. ............... 46,976
411 Bank of America Corp. ............................ 31,133
689 Bank One Corp. ................................... 29,231
1,364 Citigroup, Inc. .................................. 64,663
205 Fannie Mae........................................ 14,704
194 Franklin Resources, Inc. ......................... 9,176
315 HSBC Holdings plc ADR............................. 23,642
315 KeyCorp........................................... 8,896
452 Marsh & McLennan Companies, Inc. (with rights).... 19,340
424 Merrill Lynch & Co., Inc. ........................ 25,113
314 Morgan Stanley (with rights)...................... 17,213
345 State Street Corp. (with rights).................. 18,064
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
FINANCE AND INSURANCE -- (CONTINUED)
851 Travelers Property Casualty Corp. Class B......... $ 13,936
391 U.S. Bancorp (with rights)........................ 10,629
197 Wachovia Corp. (with rights)...................... 9,023
----------
362,815
----------
HEALTH CARE -- 13.1%
491 Abbott Laboratories (with rights)................. 20,905
238 Amgen, Inc. (with rights)(a)...................... 14,680
135 Cardinal Health, Inc. ............................ 8,005
267 Genzyme Corp.(a).................................. 12,269
372 HCA, Inc. ........................................ 14,229
297 Johnson & Johnson................................. 14,953
542 Lilly (Eli) & Co. (with rights)................... 36,128
270 Merck & Co., Inc. ................................ 11,952
2,151 Pfizer, Inc. (with rights)........................ 67,985
520 Wyeth (with rights)............................... 22,953
----------
224,059
----------
SERVICES -- 8.8%
773 Accenture Ltd. Class A(a)......................... 18,079
277 Automatic Data Processing, Inc. .................. 10,435
651 Comcast Corp. Class A(a).......................... 22,087
417 Computer Sciences Corp.(a)........................ 16,502
262 FedEx Corp. ...................................... 19,872
128 Marriott International, Inc. Class A (with
rights)......................................... 5,538
409 SAP AG ADR........................................ 14,952
441 Viacom, Inc. Class B.............................. 17,575
555 Walt Disney Co. .................................. 12,565
468 Waste Management, Inc. ........................... 12,133
----------
149,738
----------
TECHNOLOGY -- 24.6%
437 Applied Materials, Inc.(a)........................ 10,215
1,692 Cisco Systems, Inc. (with rights)(a).............. 35,507
201 First Data Corp. ................................. 7,176
2,361 General Electric Co. ............................. 68,498
1,557 Hewlett-Packard Co. .............................. 34,732
1,707 Intel Corp. ...................................... 56,423
500 International Business Machines Corp. ............ 44,776
1,549 Liberty Media Corp. Class A(a).................... 15,631
180 Lockheed Martin Corp. ............................ 8,345
2,629 Microsoft Corp. .................................. 68,756
981 Oracle Corp. (with rights)(a)..................... 11,727
513 Texas Instruments, Inc. (with rights)............. 14,822
2,865 Time Warner, Inc.(a).............................. 43,810
----------
420,418
----------
TRANSPORTATION -- 0.5%
242 CSX Corp. (with rights)........................... 7,694
----------
Total common stock
(cost $1,711,209)............................... $1,691,234
==========
</Table>
The accompanying notes are an integral part of these financial statements.
117
THE HARTFORD STOCK FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- ----------
SHORT-TERM INVESTMENTS -- 2.7%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 1.0%
17,085 Boston Global Investment Trust.................... $ 17,085
----------
<Caption>
PRINCIPAL
AMOUNT
- ---------
FINANCE -- 1.7%
$ 4,235 ABN AMRO Joint Repurchase Agreement,..............
1.00%, 11/03/03 (Note 2f) 4,235
11,144 BNP Paribas Joint Repurchase Agreement,...........
1.00%, 11/03/03 (Note 2f) 11,144
13,829 UBS Securities Joint Repurchase Agreement,........
0.98%, 11/03/03 (Note 2f) 13,829
----------
29,208
----------
Total short-term investments......................
(cost $46,293) $ 46,293
----------
Total investments in securities...................
(cost $1,757,502)(b) $1,737,527
==========
</Table>
<Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $1,777,401 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation....................... $ 126,690
Unrealized depreciation....................... (166,565)
---------
Net unrealized depreciation................... $ (39,875)
=========
</Table>
<Table>
(c) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 2.26% of total net assets as of October 31, 2003.
</Table>
<Table>
<Caption>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$1,757,502) @ .................................. $1,737,527
Cash.............................................. @@
Receivables:
Investment securities sold...................... 3,410
Fund shares sold................................ 3,685
Dividends and interest.......................... 1,813
Other assets...................................... 103
----------
Total assets...................................... 1,746,538
----------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)........................................... 17,085
Investment securities purchased................. 16,988
Fund shares redeemed............................ 2,837
Payable for investment advisory and management
fees (Note 3)................................. 1,020
Payable for distribution fees (Note 3).......... 133
Accrued Expenses.................................. 607
----------
Total liabilities................................. 38,670
----------
Net assets........................................ $1,707,868
==========
</Table>
<Table>
@ Market value of securities on loan $16,711.
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value
$0.001 per share; 300,000 shares authorized;
107,579 shares outstanding...................... $2,318,280
Accumulated net realized loss on investments...... (590,437)
Unrealized depreciation of investments in
securities...................................... (19,975)
----------
Net assets........................................ $1,707,868
==========
</Table>
<Table>
Class A
Net asset value per share ($976,663 / 60,258 shares
outstanding)...................................... $16.21
------
Maximum offering price per share ($16.21 / 94.5%)... $17.15
======
Class B
Net asset value per share ($376,437 / 24,525 shares
outstanding)...................................... $15.35
======
Class C
Net asset value per share ($311,874 / 20,244 shares
outstanding)...................................... $15.41
------
Maximum offering price per share ($15.41 / 99.0%)... $15.57
======
Class Y
Net asset value per share $42,894 / 2,552 shares
outstanding)...................................... $16.81
======
@@ Due to the presentation of the financial statements in
thousands, the number or shares and/or dollars round to
zero.
</Table>
The accompanying notes are an integral part of these financial statements.
118
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- 95.3%
AIRPORT REVENUES -- 6.2%
$400 San Francisco (City of), CA,
5.00%, City & County Airport Commission
International Airport Rev AMT Second Ser Issue
15A 05/01/2028.................................. AAA $ 401
425 San Jose (City of), CA,
5.00%, Airport Rev Ref AMT Ser B FSA Insured
03/01/2010...................................... AAA 464
-------
865
-------
GENERAL OBLIGATIONS -- 19.2%
100 Azusa (City of), CA,
5.75%, Special Tax Comm Fac Dist #1 Mountain
Cove Ser A 09/01/2021........................... NR 96
50 Beaumont (City of), CA,
7.25%, Financing Auth Rev Ser A 09/01/2020...... NR 53
250 California (State of),
5.25%, General Obligation 02/01/2033............ BBB 245
750 California (State of),
5.50%, General Obligation 11/01/2033............ BBB 759
500 California Infrastructure & Economic Development,
5.00%, Bay Area Toll Brdgs 1st Lien Class A FSA
Insured 07/01/2022.............................. AAA 514
400 Contra Costa (County of), CA,
5.625%, Public Financing Auth Tax Alloc Rev
Multiple Proj Areas Ser A 08/01/2033............ BBB 396
60 Indio (City of), CA,
6.35%, Public Improvement Act 1915 Special
Assessment #2002-3 09/02/2027................... NR 58
100 Perris (City of), CA,
6.25%, Public Financing Auth Local Agency Rev
Ser A 09/01/2033................................ NR 99
425 Solano (County of), CA,
5.25%, General Obligation MBIA Insured
11/01/2021...................................... AAA 449
-------
2,669
-------
HEALTH CARE/SERVICES -- 6.3%
200 ABAG Financing Auth for Non-Profit Corps., CA,
5.375%, Rev San Diego Hosp Assoc Ser C
03/01/2021...................................... BBB+ 194
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
HEALTH CARE/SERVICES -- (CONTINUED)
$250 California (State of),
5.00%, Health Facs Financing Auth Rev Adventist
Health System Ser A 03/01/2033.................. A $ 229
200 California (State of),
5.375%, Public Works Board Dept of Mental
Health-Patton Ser B 04/01/2028.................. BBB- 181
250 California (State of),
6.00%, Statewide Communities Dev Auth Rev Health
Fac Memorial Health Services Ser A 10/01/2023... A- 263
-------
867
-------
HIGHER EDUCATION
(UNIV., DORMS, ETC.) -- 4.8%
250 California Statewide Comm Dev Auth Rev,
6.75%, John F. Kennedy University 10/01/2033.... Ba2* 237
415 University of California,
5.30%, Multi-Purpose Rev Ser K 09/01/2030....... AA- 423
-------
660
-------
LAND DEVELOPMENT -- 14.3%
350 Burbank (City of), CA,
5.50%, Financing Auth Rev South San Fernando
Redev Proj Ser B 12/01/2023..................... BBB 348
400 Fontana (City of), CA,
5.50%, Redev Agency Tax Allocation Ref Jurupa
Hills Redev Proj Ser A 10/01/2027............... BBB+ 392
250 Oakland (City of), CA,
5.25%, Redev Agency Colliseum Area Redev Tax
Allocation 09/01/2033........................... A- 247
500 Rialto (City of), CA,
5.25%, Redev Agency Tax Allocation Ref Merged
Proj Area Ser A 09/01/2027...................... BBB+ 481
200 San Diego (City of), CA,
5.25%, Redev Agency Centre City Sub Pkg Ser B
09/01/2026...................................... Baa2* 193
175 San Diego (City of), CA,
5.30%, Redev Agency Tax Allocation North Park
Redev Proj 09/01/2016........................... BBB+ 175
</Table>
The accompanying notes are an integral part of this financial statement.
119
THE HARTFORD TAX-FREE CALIFORNIA FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
LAND DEVELOPMENT -- (CONTINUED)
$150 San Diego (City of), CA,
5.60%, Redev Agency Tax Allocation North Bay
Redev Proj 09/01/2017........................... BBB $ 152
-------
1,988
-------
MISCELLANEOUS -- 7.3%
500 Golden State Tobacco Securitization Corp.,
5.50%, California Tobacco Settlement Rev
Enhanced Asset Backed Ser B 06/01/2033.......... BBB- 483
600 Golden State Tobacco Securitization Corp.,
6.625%, California Tobacco Settlement Rev Ser
2003-A1 06/01/2040.............................. BBB 534
-------
1,017
-------
PUBLIC FACILITIES -- 15.0%
100 Capistrano (City of), CA,
5.875%, Unified School Dist Comm Fac Dist
Special Tax #90-2 Talega 09/01/2022............. NR 98
450 Fresno (City of), CA,
5.00%, Unified School Dist Election 1995 Ser E
FGIC Insured 08/01/2025......................... AAA 463
100 Jurupa (City of), CA,
5.875%, Comm Services Dist #6 Special Tax Ser A
09/01/2032...................................... NR 97
450 Los Angeles (City of), CA,
5.00%, Unified School Dist Ser B 07/01/2023..... AAA 457
110 Moreno Valley (City of), CA,
5.60%, Unified School Dist Comm Fac Special Tax
#2002-1 09/01/2017.............................. NR 107
100 Orange (County of), CA,
5.20%, Comm Fac Dist Special Tax #02-1 Ladera
Ranch Ser A 08/15/2019.......................... NR 94
200 Orange (County of), CA,
5.40%, Comm Fac Dist Special Tax #02-1 Ladera
Ranch Ser A 08/15/2022.......................... NR 191
250 Tustin (City of), CA,
5.60%, Unified School Dist Special Tax Jr Lien
Comm Fac Dist #97-1-B 09/01/2029................ NR 244
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
PUBLIC FACILITIES -- (CONTINUED)
$200 Val Verde (City of), CA,
6.00%, Unified School Dist Financing Auth
Special Tax Rev Jr Lien 10/01/2021.............. NR $ 196
125 William S. Hart Unified High School Dist,
5.85%, Special Tax Comm Fac Dist #2002-1
09/01/2022...................................... NR 125
-------
2,072
-------
UTILITIES -- COMBINED -- 2.0%
250 California (State of),
5.875%, Dept Water Res Power Supply Rev Ser A
05/01/2016...................................... BBB+ 276
-------
UTILITIES -- ELECTRIC -- 2.2%
300 Vernon (City of), CA,
5.50%, Elec Sys Rev Malburg Generating Station
Proj 04/01/2033................................. BBB+ 301
-------
UTILITIES -- WATER AND
SEWER -- 15.2%
500 Atwater (City of), CA,
Public Financing Auth,
5.50%, Rev Ref Sewer & Water Proj Ser A
05/01/2028...................................... BBB 485
250 Big Bear (City of), CA Mun Water Dist,
5.00%, Certificate Participation 1991 Ref and
Lake Imports 11/01/2024......................... Baa3* 232
100 Eastern California Municipal Water Dist,
5.70%, Comm Fac Special Tax Improvement Area A
#2001-02 09/01/2018............................. NR 97
250 Lathrop (City of), CA,
6.00%, Financing Auth Rev Water Supply Proj
06/01/2035...................................... NR 245
450 Metropolitan Water Dist Southern CA,
5.00%, Waterworks Rev Ser A 07/01/2037.......... AA 450
400 San Diego (City of), CA,
5.00%, Public Fac Financing Auth Water Rev MBIA
Insured 08/01/2026.............................. AAA 404
200 Santa Margarita (City of), CA,
6.00%, Water Dist Special Tax Comm Fac Dist
#99-1 09/01/2030................................ NR 197
-------
2,110
-------
</Table>
The accompanying notes are an integral part of this financial statement.
120
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
WASTE
DISPOSAL -- 2.8%
$375 Stockton (City of), CA,
5.20%, Wastewater Sys Proj Ser A MBIA Insured
09/01/2029...................................... AAA $ 382
-------
Total municipal bonds
(cost $13,275).................................. $13,207
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 3.6%
FINANCE -- 3.6%
495 Dreyfus Basic California Municipal Money Market Fund........... $ 495
-------
Total short-term investments
(cost $495).................................................. $ 495
=======
Total investments in securities (cost $13,770)(a).............. $13,702
=======
</Table>
<Table>
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $13,770 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation.......................... $ 93
Unrealized depreciation.......................... (161)
-----
Net unrealized depreciation...................... $ (68)
=====
</Table>
<Table>
(b) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
* Moody's Rating
</Table>
<Table>
<Caption>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost
$13,770).......................................... $ 13,702
Receivables:
Investment securities sold........................ 711
Fund shares sold.................................. 1
Dividends and interest............................ 176
Other assets........................................ 38
--------
Total assets........................................ 14,628
--------
LIABILITIES
Payables:
Investment securities purchased................... 757
Payable for investment advisory and management
fees (Note 3)................................... 6
Payable for distribution fees (Note 3)............ 1
Accrued Expenses.................................... 8
--------
Total liabilities................................... 772
--------
Net assets.......................................... $ 13,856
========
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 1,396
shares outstanding............................... $13,974
Accumulated undistributed net investment income.... 30
Accumulated net realized loss on investments....... (80)
Unrealized depreciation of investments in
securities....................................... (68)
-------
Net assets......................................... $13,856
=======
</Table>
<Table>
Class A
Net asset value per share ($10,799 / 1,088 shares
outstanding)..................................... $ 9.93
------
Maximum offering price per share ($9.93 / 95.5%)..... $10.40
======
Class B
Net asset value per share ($1,827 / 184 shares
outstanding)..................................... $ 9.92
======
Class C
Net asset value per share ($1,230 / 124 shares
outstanding)..................................... $ 9.93
------
Maximum offering price per share ($9.93 / 99.0%)... $10.03
======
</Table>
The accompanying notes are an integral part of this financial statement.
121
THE HARTFORD TAX-FREE MINNESOTA FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- 96.1%
AIRPORT REVENUES -- 4.8%
$ 750 Minneapolis & St. Paul (Cities of), MN,
5.00%, Metropolitan Airports Commission Airport
Rev Ser A MBIA Insured
01/01/2028...................................... AAA $ 757
1,000 Minneapolis & St. Paul (Cities of), MN,
5.625%, Metropolitan Airport Commission Airport
Rev AMT Ser B FGIC Insured 01/01/2018........... AAA 1,064
--------
1,821
--------
GENERAL OBLIGATIONS -- 38.0%
1,000 Anoka-Hennepin (Counties of), MN,
5.00%, Ind School Dist #11 General Obligation
Credit Enhancement Program Ser A
02/01/2015...................................... AA+ 1,068
1,300 Becker (City of), MN,
6.00%, Ind School Dist #726 General Obligation
Ser A FSA Insured 02/01/2017.................... Aaa* 1,482
1,000 Bloomington (City of), MN,
5.45%, Ind School Dist #271 General Obligation
Ser A
02/01/2012...................................... Aa1* 1,100
500 Brainerd (City of), MN,
5.375%, Ind School Dist #181 Ser A FGIC Insured
02/01/2016...................................... Aaa* 555
1,500 Brainerd (City of), MN,
6.65%, Rev Ref Evangelical Lutheran-Good
Samaritan Proj Ser B FSA Insured 03/01/2017..... AAA 1,522
620 Hennepin (County of), MN,
5.00%, General Obligation Ser B 12/01/2017...... AAA 653
1,250 Hopkins (City of), MN,
5.00%, Ind School Dist #270 General Obligation
02/01/2011...................................... Aa2* 1,376
500 Minneapolis (City of), MN,
5.00%, General Obligation Ref Ser D
12/01/2016...................................... AAA 534
250 Minneapolis (City of), MN,
5.00%, Parking Assessment General Obligation
12/01/2020...................................... AAA 262
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
GENERAL OBLIGATIONS -- (CONTINUED)
$1,000 Minnesota (State of),
5.25%, General Obligation 08/01/2016............ AAA $ 1,087
375 Moorhead (City of), MN,
5.00%, Ind School Dist #152 General Obligation
FGIC Insured
04/01/2018...................................... Aaa* 397
785 Mounds View (City of), MN,
5.25%, Ind School Dist #621 General Obligation
Ser A
02/01/2014...................................... Aa2* 852
500 Osseo (City of), MN,
5.00%, Ind School Dist #279 General Obligation
Ser B 02/01/2012................................ Aa2* 539
1,950 Rosemount (City of), MN,
5.70%, Ind School Dist #196 Zero Coupon General
Obligation Ser A MBIA Insured
04/01/2015 (d).................................. AA+ 1,182
500 St. Paul (City of), MN,
5.00%, Ind School Dist #625 General Obligation
Ser B 02/01/2011................................ AA+ 551
1,000 University of MN (Regents of),
5.75%, General Obligation Ser A 07/01/2018...... AA 1,166
--------
14,326
--------
HEALTH CARE/SERVICES -- 10.4%
330 Minneapolis (City of), MN,
6.00%, Health Care Fac Rev Shelter Care
Foundation Ser A 04/01/2010..................... NR 327
250 Minneapolis (City of), MN,
6.00%, Health Care Sys Rev Allina Health Sys Ser
A
11/15/2018...................................... A3* 269
1,000 Minnesota (State of) Agriculture and Economic Dev
Board,
5.25%, Healthcare Fac Rev Benedictine Health Ser
A
02/15/2014...................................... AAA 1,093
250 Rochester (City of), MN,
5.80%, Health Care Fac Rev Mayo Foundation/Mayo
Medical Center Ser I 11/15/2007................. AA 279
</Table>
The accompanying notes are an integral part of this financial statement.
122
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
HEALTH CARE/SERVICES -- (CONTINUED)
$ 500 Rochester (City of), MN,
5.90%, Health Care Fac Rev Mayo Foundation/Mayo
Medical Center Ser I 11/15/2010................. AA $ 572
1,000 Waconia (City of), MN,
6.10%, Health Care Fac Rev Ridgeview Med Ctr
Proj Ser A Asset Guaranty Secured 01/01/2019.... AA 1,110
250 Willmar (City of), MN,
5.00%, Rice Memorial Hosp Proj FSA Insured
02/01/2025...................................... Aaa* 254
--------
3,904
--------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 5.5%
1,000 Minnesota (State of),
5.375%, Higher Ed Fac Auth Rev General
Obligation University of St. Thomas Ser 4-P
04/01/2018...................................... A2* 1,045
1,000 Minnesota (State of),
5.40%, Higher Ed Fac Auth Rev General Obligation
University of St. Thomas Ser 4-P
04/01/2023...................................... A2* 1,023
--------
2,068
========
HOUSING (HFA'S, ETC.) -- 9.0%
695 Minneapolis (City of), MN,
7.10%, Redev Mtg Rev Riverplace Proj Ser A
01/01/2020...................................... A2* 697
1,000 Minnesota Housing Finance Agency,
5.00%, Residential Housing Finance Ser E
01/01/2020...................................... AA+ 1,008
750 Sartell (City of), MN,
5.20%, Environmental Impt Rev Ref Ser A
06/01/2027...................................... BBB 725
1,000 Washington (County of), MN,
4.60%, Housing and Redev Auth Governmental Rev
Ref-Woodland Park Apartment Proj 04/01/2022..... AA 956
--------
3,386
--------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MISCELLANEOUS -- 6.1%
$ 800 Children's Trust Fund,
5.625%, Puerto Rico Tobacco Settlement Rev Asset
Backed Bonds 05/15/2043......................... BBB $ 695
1,000 Golden Valley (City of), MN,
5.875%, Breck School Proj Rev 10/01/2019........ A2* 1,077
500 St. Paul (City of), MN,
5.00%, Port Auth Lease Rev Office Bldg
12/01/2019...................................... AA+ 523
--------
2,295
--------
POLLUTION CONTROL -- 2.0%
750 International Falls (City of), MN,
7.20%, Environmental Fac Rev Ref Boise Cascade
Corp Proj 10/01/2024............................ Ba2* 761
--------
PUBLIC FACILITIES -- 2.1%
835 Minnesota State Agricultural Society,
5.125%, State Fair Rev 09/15/2023............... A- 803
--------
REFUNDED WITH U.S. GOV'T SECURITIES -- 1.4%
500 Red Wing (City of), MN,
6.50%, Elderly Housing Fac Rev River Region
Obligation Group Ser C 09/01/2022 (Prerefunded
09/01/2005 @ 100)............................... NR 510
--------
TRANSPORTATION -- 3.0%
1,000 Puerto Rico Commonwealth Highway & Transportation
Auth,
5.50%, Highway Rev Ref Ser W FSA Insured
07/01/2013...................................... AAA 1,150
--------
UTILITIES -- ELECTRIC -- 10.7%
1,000 Northern MN Municipal Power Agency,
5.30%, Elec Sys Rev FSA Insured 01/01/2021...... AAA 1,056
1,295 Northern MN Municipal Power Agency,
6.94%, Zero Coupon Elec Sys Rev Ref Ser A AMBAC
Insured 01/01/2011 (d).......................... AAA 990
960 Rochester (City of), MN,
4.375%, Elec Utility Rev Ser A AMBAC Insured
12/01/2016...................................... Aaa* 977
</Table>
The accompanying notes are an integral part of this financial statement.
123
THE HARTFORD TAX-FREE MINNESOTA FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
UTILITIES -- ELECTRIC -- 10.7% -- (CONTINUED)
$1,000 Western Minnesota Municipal Power Agency,
5.00%, Ser A MBIA Insured 01/01/2030............ Aaa* $ 1,010
--------
4,033
--------
UTILITIES -- WATER AND SEWER -- 3.1%
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Auth,
6.25%, Rev Ref 07/01/2013....................... A- 1,176
--------
Total municipal bonds
(cost $34,344).................................. $ 36,233
========
SHORT-TERM INVESTMENTS -- 2.7%
FINANCE -- 2.7%
1,013 State Street Bank Tax Free Money Market, Current
rate -- 0.52%................................................ $ 1,013
--------
Total short-term investments
(cost $1,013)................................................ $ 1,013
========
Total investments in securities
(cost $35,357) (a)........................................... $ 37,246
========
</Table>
(a) At October 31, 2003, the cost of securities for income tax purposes
is $35,357 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
<Table>
Unrealized appreciation.......................... $2,146
Unrealized depreciation.......................... (257)
------
Net unrealized appreciation...................... $1,889
======
</Table>
(b) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
(d) The interest rate disclosed for these securities represents the
effective yield on the date of acquisition.
* Moody's Rating.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost $35,357)... $37,246
Receivables:
Fund shares sold................................... 14
Dividends and interest............................. 471
Other assets......................................... 17
-------
Total assets......................................... 37,748
-------
LIABILITIES
Payables:
Fund shares redeemed............................... $ @@
Payable for investment advisory and management fees
(Note 3)......................................... 23
Payable for distribution fees (Note 3)............. 1
Accrued Expenses..................................... 8
-------
Total liabilities.................................... 32
-------
Net assets, at value................................. $37,716
=======
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 19,250,000 shares authorized; 3,588
shares outstanding................................. $35,457
Accumulated undistributed net investment income...... 10
Accumulated net realized gain on investments......... 360
Unrealized appreciation of investments in
securities......................................... 1,889
-------
Net assets........................................... $37,716
=======
</Table>
<Table>
Class A
Net asset value per share
($3,242 / 310 shares outstanding)................. $10.46
------
Maximum offering price per share ($10.46 / 95.5%)... $10.95
======
Class B
Net asset value per share
($532 / 51 shares outstanding).................... $10.46
======
Class C
Net asset value per share
($414 / 39 shares outstanding).................... $10.48
------
Maximum offering price per share ($10.48 / 99.0%)... $10.59
======
Class E
Net asset value per share ($29,784 / 2,831 shares
outstanding)...................................... $10.52
------
Maximum offering price per share ($10.52 / 95.5%)... $11.02
======
Class H
Net asset value per share
($155 / 15 shares outstanding).................... $10.51
======
Class L
Net asset value per share
($2,922 / 279 shares outstanding)................. $10.49
------
Maximum offering price per share ($10.49 / 95.5%)... $10.98
======
Class M
Net asset value per share
($454 / 43 shares outstanding).................... $10.50
======
Class N
Net asset value per share
($212 / 20 shares outstanding).................... $10.50
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $10.47
======
</Table>
@@Due to the presentation of the financial statements in thousands, the
number of shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
124
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- 95.9%
ALABAMA -- 2.4%
$1,855 Huntsville (City of), AL,
5.25%, General Obligation Ser A 05/01/2022
(General Obligations)........................... AA $ 1,944
-------
ALASKA -- 0.7%
500 Anchorage (City of), AK,
5.50%, General Obligation Ser A MBIA Insured
06/01/2019 (General Obligations)................ AAA 544
-------
ARIZONA -- 5.3%
1,800 Phoenix (City of), AZ,
6.25%, General Obligation Ref Ser A 07/01/2017
(General Obligations)........................... AA+ 2,203
500 Sundance Community Fac Dist, AZ,
7.125%, Assessment Dist Special Assessment Rev
#2 07/01/2027 (Public Facilities)............... NR 501
1,225 Tucson (City of), AZ,
5.50%, Water Rev Ref 07/01/2014 (Utilities --
Water and Sewer)................................ A+ 1,394
200 Vistancia Community Fac Dist, AZ,
6.75%, General Obligation 07/15/2022 (General
Obligations).................................... NR 202
-------
4,300
-------
CALIFORNIA -- 12.6%
750 California (State of),
5.25%, General Obligation 02/01/2033 (General
Obligations).................................... BBB 736
80 California (State of),
5.50%, Dept Water Res Rev Ser W 12/01/2010
(Escrowed to Maturity) (Utilities -- Water and
Sewer).......................................... AA 93
750 California (State of),
5.875%, Dept Water Res Power Supply Rev Ser A
05/01/2016 (Utilities -- Combined).............. BBB+ 827
500 California (State of),
6.75%, General Obligation 08/01/2011 (General
Obligations).................................... BBB 592
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
CALIFORNIA -- (CONTINUED)
$ 250 Capistrano (City of), CA,
5.875%, Unified School Dist Comm Fac Dist
Special Tax #90-2 Talega 09/01/2021 (Public
Facilities)..................................... NR $ 246
250 Capistrano (City of), CA,
5.90%, Unified School Dist Comm Fac Dist Special
Tax #90-2 Talega 09/01/2020 (Public
Facilities)..................................... NR 247
95 Eastern California Municipal Water Dist,
5.70%, Comm Fac Special Tax Improvement Area A
#2001-02 09/01/2018 (Utilities -- Water and
Sewer).......................................... NR 92
1,000 Golden State Tobacco Securitization Corp.,
5.50%, California Tobacco Settlement Rev
Enhanced Asset Backed Ser B 06/01/2033
(Miscellaneous)................................. BBB- 966
400 Golden State Tobacco Securitization Corp.,
6.625%, California Tobacco Settlement Rev Ser
2003-A1 06/01/2040 (Miscellaneous).............. BBB 356
40 Indio (City of), CA,
6.35%, Public Improvement Act 1915 Special
Assessment #2002-3 09/02/2027 (General
Obligations).................................... NR 38
400 Jurupa (City of), CA,
5.875%, Comm Services Dist #6 Special Tax Ser A
09/01/2032 (Public Facilities).................. NR 388
750 Lathrop (City of), CA,
6.00%, Financing Auth Rev Water Supply Proj
06/01/2035 (Utilities -- Water and Sewer)....... NR 734
500 Moreno Valley (City of), CA,
6.00%, Unified School Dist Comm Fac Dist Special
Tax #2002-1 09/01/2022 (Public Facilities)...... NR 492
495 Perris (City of), CA,
6.25%, Public Financing Auth Local Agency Rev
Ser A 09/01/2033 (General Obligations).......... NR 490
</Table>
The accompanying notes are an integral part of this financial statement.
125
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
CALIFORNIA -- (CONTINUED)
$ 500 San Diego (City of), CA,
5.25%, Redev Agency Centre City Sub Pkg Ser B
09/01/2026 (Land Development)................... Baa2* $ 482
4,000 Southern California Public Power Auth,
6.36%, Zero Coupon Transmission Proj Rev
07/01/2013(d) (Utilities -- Electric)........... A+ 2,635
800 Val Verde (City of), CA,
6.00%, Unified School Dist Financing Auth
Special Tax Rev Jr Lien 10/01/2021 (Public
Facilities)..................................... NR 784
-------
10,198
-------
FLORIDA -- 5.3%
1,000 Collier (County of), FL,
5.375%, School Board Certificate of
Participation FSA Insured 02/15/2020 (Public
Facilities)..................................... Aaa* 1,071
500 Colonial Country Club Community Dev Dist, FL,
6.40%, Cap Improvement Rev 05/01/2033(e) (Public
Facilities)..................................... NR 509
1,250 Florida (State of),
5.375%, Dept of Environmental Protection
Preservation Rev Ser A MBIA Insured 07/01/2015
(Pollution Control)............................. AAA 1,385
500 Gateway Services,
5.50%, Comm Dev Dist of FL Special Assessment
Sun City Center Fort Meyers Proj Ser B
05/01/2010 (Miscellaneous)...................... NR 499
750 Miami (City of), FL,
5.50%, Homeland Defense General Obligation MBIA
Insured 01/01/2020 (General Obligations)........ AAA 806
-------
4,270
-------
GEORGIA -- 5.7%
1,105 Fulton (County of), GA,
5.375%, School Dist General Obligation
01/01/2018 (General Obligations)................ AA 1,245
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
GEORGIA -- (CONTINUED)
$1,765 Fulton (County of), GA,
6.375%, Water & Sewer Rev FGIC Insured
01/01/2014 (Escrowed to Maturity)
(Utilities -- Water and Sewer).................. AAA $ 2,124
35 Fulton (County of), GA,
6.375%, Water & Sewer Rev FGIC Insured
01/01/2014 (Unrefunded) (Utilities -- Water and
Sewer).......................................... AAA 42
40 Georgia (State of),
6.50%, Municipal Elec Auth Power Rev Ser Y
01/01/2017 (Escrowed to Maturity)
(Utilities -- Electric)......................... A 49
960 Georgia (State of),
6.50%, Municipal Elec Auth Power Rev Ser Y
01/01/2017 (Unrefunded) (Utilities --
Electric)....................................... A 1,167
-------
4,627
-------
HAWAII -- 0.7%
500 Hawaii (State of),
5.50%, General Obligation Ref Ser CY 02/01/2011
(General Obligations)........................... AAA 567
-------
ILLINOIS -- 5.0%
960 Chicago (City of), IL,
5.25%, Board of Educ General Obligation Ser A
MBIA Insured 12/01/2019 (General Obligations)... AAA 1,024
500 Illinois (State of),
5.70%, Educ Fac Auth Rev Ref Augustana College
Ser A 10/01/2032 (Higher Education (Univ.,
Dorms, etc.))................................... Baa1* 499
500 Round Lake (City of), IL,
6.70%, Special Tax Rev 03/01/2033 (Public
Facilities)..................................... NR 516
1,000 Wauconda (City of), IL,
6.625%, Special Service Area #1 Special Tax
Liberty Lakes Proj 03/01/2033 (Miscellaneous)... NR 972
</Table>
The accompanying notes are an integral part of this financial statement.
126
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
ILLINOIS -- (CONTINUED)
$1,000 Yorkville (City of), IL,
6.875%, United City Special Svc Area Special Tax
#2003-100 Raintree Village Proj 03/01/2033 (Land
Development).................................... NR $ 1,009
-------
4,020
-------
KENTUCKY -- 1.3%
1,000 Christian (County of), KY, 6.00%, Hosp Rev Ref
Jennie
Stuart Medical Ser A 07/01/2013 (Health Care/
Services)....................................... A- 1,047
-------
LOUISIANA -- 0.6%
500 Louisiana (State of),
5.50%, Public Fac Auth Rev Ochsner Clinic
Foundation Proj Ser B 05/15/2027 (General
Obligations).................................... A3* 502
-------
MARYLAND -- 3.6%
1,000 Maryland (State of),
5.00%, Economic Dev Corp. Student Housing Rev
Salisbury University Proj 06/01/2034 (Higher
Education (Univ., Dorms, etc.))................. Baa3* 894
1,000 Maryland (State of),
5.375%, Economic Dev Corp. Student Housing Rev
Bowie State University Proj 06/01/2033 (Higher
Education (Univ., Dorms, etc.))................. Baa3* 942
1,000 Maryland (State of),
6.50%, Economic Dev Corp. Student Housing Rev
University of Maryland College Park Proj
06/01/2027 (Higher Education (Univ., Dorms,
etc.)).......................................... Baa3* 1,061
-------
2,897
-------
MASSACHUSETTS -- 1.3%
940 Massachusetts (State of),
5.25%, General Obligation Consolidated Loan Ser
B 03/01/2021 (Unrefunded) (General
Obligations).................................... AAA 986
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MASSACHUSETTS -- (CONTINUED)
$ 60 Massachusetts (State of),
5.25%, General Obligation Consolidated Loan Ser
B FSA Insured 03/01/2021 (Prerefunded 03/01/2012
@ 100) (Refunded with U.S. Gov't Securities).... AAA $ 68
-------
1,054
-------
MICHIGAN -- 6.1%
500 Detroit (City of), MI,
5.50%, General Obligation MBIA Insured
04/01/2020 (General Obligations)................ AAA 544
1,750 Detroit (City of), MI,
6.50%, Water Supply Sys Ref Rev FGIC Insured
07/01/2015 (Utilities -- Water and Sewer)....... AAA 2,150
1,000 Macomb (County of), MI,
5.75%, Hosp Financial Auth Rev MT. Clemens
General Hospital Ser B 11/15/2025 (Health
Care/Services).................................. BBB- 950
750 Michigan (State of),
5.50%, Strategic Fund Ltd. Rev Ref Dow Chemical
Proj AMT 12/01/2028 (General Obligations)....... A- 786
500 Michigan (State of),
5.625%, Hosp Fin Auth Rev Ref Henry Ford Health
Sys Ser A 03/01/2017 (Health Care/Services)..... A- 518
-------
4,948
-------
MINNESOTA -- 2.2%
750 Minneapolis (City of), MN,
6.00%, Health Care Sys Rev Allina Health Sys Ser
A 11/15/2018 (Health Care/ Services)............ A3* 807
1,000 Minnesota Housing Finance Agency,
5.00%, Residential Housing Finance Ser E
01/01/2020 (Housing (HFA's, etc.)).............. AA+ 1,008
-------
1,815
-------
</Table>
The accompanying notes are an integral part of this financial statement.
127
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
MISSISSIPPI -- 0.4%
$ 250 Lowndes (County of), MS,
6.80%, Solid Waste Disposal & Pollution Control
Rev Ref Weyerhaeuser Co. Proj Ser A 04/01/2022
(Pollution Control)............................. BBB $ 285
-------
MISSOURI -- 0.6%
500 Missouri (State of),
5.50%, State Dev Financial Board Infrastructure
Fac Rev Branson Ser A 12/01/2032 (Public
Facilities)..................................... BBB+ 501
-------
NEVADA -- 1.8%
1,000 Henderson (City of), NV,
5.80%, Local Impt Dists #T-14 03/01/2023
(Miscellaneous)................................. NR 972
500 North Las Vegas (City of), NV,
6.40%, Local Special Improvement Dist #60
Aliante 12/01/2022 (Land Development)........... NR 506
-------
1,478
-------
NEW HAMPSHIRE -- 0.9%
750 New Hampshire (State of),
5.60%, Health & Ed Fac Auth Rev Elliot Hospital
Ser B 10/01/2022 (Health Care/Services)......... BBB+ 728
-------
NEW JERSEY -- 3.8%
750 New Jersey (State of),
5.125%, Educ Fac Auth Rev Stevens Institute of
Technology Ser C 07/01/2022 (Higher Education
(Univ., Dorms, etc.))........................... A- 748
1,000 New Jersey (State of),
5.50%, Health Care Fac Financing Auth Rev
Somerset Medical Center 07/01/2023 (Health
Care/Services).................................. Baa2* 975
275 New Jersey (State of),
6.00%, Educ Fac Auth Rev Fairleigh Dickinson
University Ser D 07/01/2025 (Higher Education
(Univ., Dorms, etc.))........................... NR 278
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
NEW JERSEY -- (CONTINUED)
$ 500 New Jersey (State of),
6.50%, Ed Fac Auth Rev Georgian Court College
Proj C 07/01/2033 (Higher Education (Univ.,
Dorms, etc.))................................... BBB+ $ 540
500 New Jersey (State of),
6.50%, Health Care Fac Financing Auth Rev
Pascack Valley Hosp Assoc 07/01/2023 (Health
Care/ Services)................................. BB+ 497
-------
3,038
-------
NEW YORK -- 5.8%
250 Dutchess (County of), NY, 5.00%, Industrial Dev
Agency Civic Fac Rev Ref Marist College Ser A
07/01/2022 (Higher Education (Univ., Dorms,
etc.)).......................................... Baa1* 248
195 Monroe (County of), NY,
6.00% Industrial Dev Agency Civic Fac Rev
Cloverwood Senior Living Ser A 05/01/2013
(General Obligations)........................... NR 191
70 Monroe (County of), NY, 6.75%, Industrial Dev
Agency Civic Fac Rev Cloverwood Senior Living
Ser A 05/01/2023 (General Obligations).......... NR 70
260 New York (City of), NY,
5.25%, Industrial Dev Agency Civic Fac Rev
American Council Learned Societie 07/01/2027
(Industrial).................................... A1* 267
400 New York (City of), NY,
5.65%, Industrial Dev Agency Rev Brooklyn Navy
Yard Cogen Partners AMT 10/01/2028
(Industrial).................................... BBB- 356
1,000 New York (City of), NY,
5.75%, General Obligation Fiscal 2003 Ser I
03/01/2019 (General Obligations)................ A 1,075
425 New York (City of), NY,
8.25%, General Obligation Ser B 06/01/2005
(Escrowed to Maturity) (General Obligations).... A 468
</Table>
The accompanying notes are an integral part of this financial statement.
128
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
NEW YORK -- (CONTINUED)
$ 575 New York (City of), NY,
8.25%, General Obligation Ser B 06/01/2005
(General Obligation)............................ A $ 634
1,000 Triborough Bridge & Tunnel Auth of NY,
5.125%, Rev Ref General Obligation Ser B
11/15/2029 (Transportation)..................... AA- 1,012
400 Westchester (County of), NY, 6.375%, Industrial
Dev Agency Continuing Care Retirement Mtg/Kendal
on Hudson Proj A 01/01/2024 (Health
Care/Services).................................. NR 396
-------
4,717
-------
NORTH CAROLINA -- 1.3%
500 North Carolina Eastern Municipal Power Agency,
5.375%, Power Sys Rev Ref Ser C 01/01/2017
(Utilities -- Electric)......................... BBB 518
500 North Carolina Municipal Power Agency #1,
5.50%, Catawba Elec Rev Ser A 01/01/2014
(Utilities -- Electric)......................... BBB+ 537
-------
1,055
-------
OHIO -- 3.8%
1,045 Cincinnati (City of), OH,
5.50%, Water Sys Rev 12/01/2011 (Utilities --
Water and Sewer)................................ AA+ 1,191
300 Cuyahoga (County of), OH, 5.50%, Rev Ref Class A
01/01/2029 (Miscellaneous)...................... A 306
1,270 Hamilton (City of), OH,
6.15%, School Dist Improvement Ser A 12/01/2016
(General Obligations)........................... AA- 1,552
-------
3,049
-------
PENNSYLVANIA -- 5.3%
750 Carbon (County of), PA,
6.65%, Industrial Dev Auth Ref Panther Creek
Partners Proj AMT 05/01/2010 (Industrial)....... BBB- 805
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
PENNSYLVANIA -- (CONTINUED)
$1,000 Lehigh (County of), PA,
5.375%, General Purpose Auth Rev Saint Lukes
Bethlehem Hospital 08/15/2033 (Health Care/
Services)....................................... BBB $ 951
1,000 Pennsylvania (State of),
5.25%, Higher Educational Fac Auth Rev Widener
University 07/15/2024 (Higher Education (Univ.,
Dorms, etc.))................................... BBB+ 986
1,000 Philadelphia (City of), PA, 5.00%, General
Obligation 03/15/2028 (General Obligations)..... AAA 1,007
500 Susquehanna Area Regional Airport, PA,
5.375%, Auth Sys Rev Sub Ser D 01/01/2018
(Airport Revenues).............................. Baa2* 487
-------
4,236
-------
RHODE ISLAND -- 1.6%
1,000 Rhode Island (State of),
5.00%, Clean Water Finance Agency Water
Pollution Control Rev Fund Pooled Loan Issue B
10/01/2022 (Utilities -- Water and Sewer)....... AAA 1,031
250 Rhode Island (State of),
6.50%, Health & Educ Building Corp. Rev Hosp
Financing-Lifespan Obligation Group 08/15/2032
(Health Care/Services).......................... BBB 252
-------
1,283
-------
SOUTH CAROLINA -- 1.5%
1,000 Piedmont Municipal Power Agency, SC,
6.25%, Elec Rev Ref FGIC Insured 01/01/2021
(Utilities -- Electric)......................... AAA 1,188
-------
TENNESSEE -- 0.6%
500 McMinn (County of), TN, 7.625%, Industrial Dev
Board Pollution Control Rev Calhoun Newsprint
Co. Proj AMT 03/01/2016 (Pollution Control)..... BB+ 500
-------
</Table>
The accompanying notes are an integral part of this financial statement.
129
THE HARTFORD TAX-FREE NATIONAL FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
TEXAS -- 4.7%
$1,000 Clear Creek (City of), TX, 5.00%, Ind School Dist
Ref General Obligation PSFG 02/15/2018 (General
Obligations).................................... AAA $ 1,048
750 Houston (City of), TX,
5.50%, Water & Sewer Rev Ref Jr Lien Ser A
12/01/2013 (Utilities -- Water and Sewer)....... AAA 841
500 Sam Rayburn Municipal Power Agency, TX,
5.50%, Rev Ref 10/01/2010
(Utilities -- Electric)......................... BBB- 538
350 San Antonio (City of), TX, 5.25%, Elec & Gas Rev
Ref Ser A 02/01/2014 (Prerefunded 02/01/2009 @
101) (Refunded with U.S. Gov't Securities)...... AAA 398
1,000 Tyler (City of), TX,
5.75%, Health Fac Dev Corp Hosp Rev Mother
Frances Hospital 07/01/2027 (Health
Care/Services).................................. Baa1* 992
-------
3,817
-------
UTAH -- 2.0%
1,000 Utah (State of),
5.00%, Transportation Auth Sales Tax Rev Ser A
FSA Insured 06/15/2025 (Transportation)......... AAA 1,007
500 Utah (State of),
5.375%, General Obligation Ref Ser B 07/01/2011
(General Obligations)........................... AAA 567
-------
1,574
-------
VIRGINIA -- 2.6%
1,000 Peninsula Ports Auth of VA, 6.00%, Port Fac CSX
Transportation Proj Rev Ref 12/15/2012
(Transportation)................................ Baa2* 1,076
1,000 Virginia (State of),
5.00%, Port Auth Commonwealth Rev AMT 07/01/2027
(Transportation)................................ AA+ 982
-------
2,058
-------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
WASHINGTON -- 0.9%
$ 670 King (County of), WA,
5.00%, Ind School Dist #210 General Obligation
06/01/2019 (General Obligations)................ AA+ $ 695
-------
WISCONSIN -- 5.5%
1,000 Badger Tobacco Asset Securitization Corp. of WI,
6.375%, 06/01/2032 (Miscellaneous).............. BBB 867
1,305 Sparta (City of), WI,
5.90%, School Dist Ref General Obligation FGIC
Insured 03/01/2016 (Prerefunded 03/01/2010 @
100) (Refunded with U.S. Gov't Securities)...... Aaa* 1,528
500 Wisconsin (State of),
4.85%, Housing & Economic Dev Auth General
Obligation Home Ownership Rev Ser G 09/01/2017
(Housing (HFA's, etc.))......................... AA 514
1,500 Wisconsin (State of),
6.40%, Health & Educational Fac Auth Rev Aurora
Health Care 04/15/2033 (Higher Education (Univ.,
Dorms, etc.))................................... BBB+ 1,539
-------
4,448
-------
Total municipal bonds
(cost $74,031).................................. $77,383
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 2.0%
FINANCE -- 2.0%
1,643 State Street Bank Tax Free Money Market........................ $ 1,643
-------
Total short-term investments
(cost $1,643)................................................ $ 1,643
=======
Total investments in securities
(cost $75,674)(a)............................................ $79,026
=======
</Table>
The accompanying notes are an integral part of this financial statement.
130
- --------------------------------------------------------------------------------
<Table>
(a) At October 31, 2003, the cost of securities for income tax purposes is
$75,674 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
</Table>
<Table>
Unrealized appreciation.......................... $3,786
Unrealized depreciation.......................... (434)
------
Net unrealized appreciation...................... $3,352
======
</Table>
<Table>
(b) See Note 2b of accompanying Noes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) The interest rate disclosed for these securities represents the effective
yield on the date of acquisition.
(e) Securities sold within the terms of a private placement memorandum,
exempt from registration under Section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or to
other "accredited investors". Pursuant to guidelines adopted by the Board
of Directors, these issues are determined to be liquid. The aggregate
value of these securities at October 31, 2003, was $509, which represents
0.63% of net assets.
* Moody's Rating.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost $75,674)... $79,026
Receivables:
Fund shares sold................................... 487
Dividends and interest............................. 1,231
Other assets......................................... 87
-------
Total assets......................................... 80,831
-------
LIABILITIES
Payables:
Fund shares redeemed............................... 74
Payable for investment advisory and management fees
(Note 3)......................................... 52
Payable for distribution fees (Note 3)............. 3
Accrued Expenses..................................... 17
-------
Total liabilities.................................... 146
-------
Net assets, at value................................. $80,685
=======
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 19,250,000 shares authorized; 7,304
shares outstanding................................. $76,494
Accumulated undistributed net investment income...... 32
Accumulated net realized gain on investments......... 807
Unrealized appreciation of investments in
securities......................................... 3,352
-------
Net assets........................................... $80,685
=======
</Table>
<Table>
Class A
Net asset value per share ($21,457 / 1,939 shares
outstanding)...................................... $11.07
------
Maximum offering price per share ($11.07 / 95.5%)... $11.59
======
Class B
Net asset value per share ($6,598 / 600 shares
outstanding)...................................... $11.00
======
Class C
Net asset value per share ($7,588 / 688 shares
outstanding)...................................... $11.02
------
Maximum offering price per share ($11.02 / 99.0%)..... $11.13
======
Class E
Net asset value per share ($33,998 / 3,076 shares
outstanding)...................................... $11.05
------
Maximum offering price per share ($11.05 / 95.5%)..... $11.57
======
Class H
Net asset value per share ($1,747 / 158 shares
outstanding)...................................... $11.03
======
Class L
Net asset value per share ($7,454 / 676 shares
outstanding)...................................... $11.04
------
Maximum offering price per share ($11.04 / 95.5%)..... $11.56
======
Class M
Net asset value per share ($1,235 / 112 shares
outstanding)...................................... $11.03
======
Class N
Net asset value per share ($607 / 55 shares
outstanding)...................................... $11.01
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $11.06
======
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of this financial statement.
131
THE HARTFORD TAX-FREE NEW YORK FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- 97.1%
GENERAL OBLIGATIONS -- 17.6%
$450 Elmira (City of), NY,
4.75%, School Dist General Obligation FGIC
Insured 06/15/2020.............................. AAA $ 459
450 Holbrook (City of), NY,
5.00%, Sachem Central School Dist General
Obligation Ser B MBIA Insured 10/15/2029........ AAA 455
450 Mahopac (City of), NY,
5.00%, Central School Dist General Obligation
Ref Ser A MBIA Insured 06/01/2019............... Aaa* 471
100 Monroe (County of), NY,
6.75%, Industrial Dev Agency Civic Fac Rev
Cloverwood Senior Living Ser A 05/01/2023....... NR 101
425 New York (City of), NY,
5.75%, General Obligation Fiscal 2003 Ser I
03/01/2019...................................... A 457
-------
1,943
-------
HEALTH CARE/SERVICES -- 6.9%
200 New York (State of),
5.00%, Dorm Auth Rev Memorial Sloan-Kettering
Center Ser 1 07/01/2034......................... AA 199
450 New York (State of),
5.00%, Dorm Auth Rev Mental Health Services Fac
Ser B 02/15/2018................................ AA- 461
100 Westchester (County of), NY, 6.375%, Industrial
Dev Agency
Continuing Care Retirement Mtg-Kendal on Hudson
Proj A 01/01/2024............................... NR 99
-------
759
-------
HIGHER EDUCATION (UNIV., DORMS, ETC.) -- 28.5%
250 Dutchess (County of), NY,
5.00%, Industrial Dev Agency Civic Fac Rev Ref
Marist College Ser A 07/01/2022................. Baa1 248
450 New York (State of),
5.00%, Dorm Auth Lease Rev State Univ Dorm Fac
07/01/2032...................................... AA- 446
190 New York (State of),
5.00%, Dorm Auth Rev Fordham University FGIC
Insured 07/01/2020.............................. AAA 197
400 New York (State of),
5.00%, Dorm Auth Rev Mount St. Mary College
Radian Insured 07/01/2027....................... AA 396
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
HIGHER EDUCATION (UNIV., DORMS,
ETC.) -- (CONTINUED)
$450 New York (State of),
5.125%, Dorm Auth Rev St. Barnabas Ser A FHA
Insured AMBAC Insured 02/01/2022................ AAA $ 464
425 New York (State of),
5.50%, Dorm Auth Lease Rev Court Facs Ser A
05/15/2020...................................... A 451
250 New York (State of),
5.50%, Dorm Auth Rev Brooklyn Law School Radian
Insured Ser A 07/01/2019........................ AA 267
400 New York (State of),
5.75%, Dorm Auth Rev Cons City University Ser A
AMBAC-TCRS Insured 07/01/2013................... AAA 463
200 Otsego (County of), NY,
6.00%, Industrial Dev Agency Civic Fac Rev
Hartwick College Proj Ser A 07/01/2011.......... Baa3 219
-------
3,151
-------
HOUSING (HFA'S, ETC.) -- 4.2%
425 New York (State of),
5.50%, Urban Dev Corp Rev Personal Income Tax
Ser C/1 FGIC Insured 03/15/2017................. AAA 468
-------
INDUSTRIAL -- 5.4%
245 New York (City of), NY,
5.25%, Industrial Dev Agency Civic Fac Rev
American Council Learned Societie 07/01/2027.... A1* 251
250 New York (City of), NY,
5.25%, Industrial Dev Agency Civic Fac Rev YMCA
of Greater NY Proj 08/01/2021................... A- 253
100 New York (City of), NY,
5.65%, Industrial Dev Agency Rev Brooklyn Navy
Yard Cogen Partners 10/01/2028.................. BBB- 89
-------
593
-------
MISCELLANEOUS -- 11.7%
200 Children's Trust Fund,
5.625%, Puerto Rico Tobacco Settlement Rev Asset
Backed Bonds 05/15/2043......................... BBB 174
450 New York (City of), NY,
5.00%, Transitional Financial Auth Future Tax
Secured C 08/01/2023............................ AA+ 456
</Table>
The accompanying notes are an integral part of these financial statements.
132
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(B)
- --------- ----------- --------
MUNICIPAL BONDS -- (CONTINUED)
MISCELLANEOUS -- (CONTINUED)
$200 New York (City of), NY,
5.50%, Dorm Auth Rev Winthrop South Nassau
University 07/01/2023........................... Baa1* $ 201
400 New York (State of),
6.00%, Local Assistance Corp Ref Ser E
04/01/2014...................................... AA- 461
-------
1,292
-------
POLLUTION CONTROL -- 4.1%
450 New York (State of),
5.00%, Environmental Fac Corp Clean Water Ser C
Revolving Funds 07/15/2026...................... AAA 455
-------
PUBLIC FACILITIES -- 4.0%
450 St. Lawrence (County of), NY, 5.00%, Industrial
Dev Civic Fac
Rev Clarkson University Proj 07/01/2023......... A3* 444
-------
TRANSPORTATION -- 12.4%
450 New York (State of),
5.00%, Triborough Bridge & Tunnel Auth Rev
General Purpose Ser A 01/01/2032................ AA- 450
450 New York (State of),
5.125%, Metropolitan Transportation Auth Rev Ser
A 11/15/2031.................................... A 452
450 Port Auth of NY & NJ,
5.00%, General Obligation Cons 128th Ser
11/01/2021...................................... AAA 469
-------
1,371
-------
UTILITIES -- ELECTRIC -- 2.3%
250 New York (State of),
5.30%, Energy Research & Dev Auth Elec Fac Rev
Adj Long Island Lighting Co. Proj A
08/01/2025...................................... A- 251
-------
Total municipal bonds
(cost $10,653).................................. $10,727
=======
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 1.0%
FINANCE -- 1.0%
105 Dreyfus Basic New York Municipal Money Market
Fund............................................ $ 105
-------
Total short-term investments (cost $105)....................... $ 105
=======
Total investments in securities
(cost $10,758)(a)............................................ $10,832
=======
</Table>
(a) At October 31, 2003, the cost of securities for federal income tax
purposes is $10,758 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation........................... $124
Unrealized depreciation........................... (50)
----
Net unrealized appreciation....................... $ 74
====
</Table>
(b) See Note 2b of accompanying Notes to Financial Statements
regarding valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets.
* Moody's Rating.
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value (cost $10,758)... $10,832
Receivables:
Fund shares sold................................... 28
Dividends and interest............................. 162
Other assets......................................... 37
-------
Total assets......................................... 11,059
-------
LIABILITIES
Payables:
Payable for investment advisory and management fees
(Note 3)......................................... 5
Payable for distribution fees (Note 3)............. 1
Accrued Expenses..................................... 7
-------
Total liabilities.................................... 13
-------
Net assets........................................... $11,046
=======
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 1,088 shares
outstanding........................................ $10,856
Accumulated undistributed net investment income...... 27
Accumulated net realized gain on investments......... 89
Unrealized appreciation of investments in
securities......................................... 74
-------
Net assets........................................... $11,046
=======
</Table>
<Table>
Class A
Net asset value per share ($8,602 / 847 shares
outstanding)...................................... $10.15
------
Maximum offering price per share ($10.15 / 95.5%)... $10.63
======
Class B
Net asset value per share ($1,051 / 104 shares
outstanding)...................................... $10.15
======
Class C
Net asset value per share ($1,393 / 137 shares
outstanding)...................................... $10.15
======
Maximum offering price per share ($10.15 / 99.0%)... $10.25
======
</Table>
The accompanying notes are an integral part of these financial statements.
133
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
MUNICIPAL BONDS -- 0.5%
GENERAL OBLIGATIONS -- 0.5%
$ 3,000 Illinois (State of),
5.10%, General Obligation Taxable Pension
6/01/2033....................................... AA $ 2,713
--------
Total municipal bonds
(cost $3,000)................................... $ 2,713
========
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- 7.7%
FINANCE -- 7.4%
1,800 American Express Credit Account Master Trust,
Inc.,
5.95%, Ser 1999-2 Class A 12/15/2006............ AAA 1,845
536 AQ Finance CEB Trust,
6.12%, Ser 2003-CE1A 08/25/2033(e)(h)........... BBB 525
800 Bank One Issuance Trust,
4.77%, Ser 2003-C3 Class C3 02/16/2016.......... BBB 744
1,900 Bear Stearns Commercial Mortgage Securities, Inc.,
4.74%, Ser 2003-T10 Class A2 03/13/2040......... AAA 1,887
1,900 Bear Stearns Commercial Mortgage Securities, Inc.,
4.83%, Ser 2002-TOP8 Class A2 08/15/2038........ AAA 1,906
1,600 California Infrastructure & Economic Development,
6.38%, Ser 1997-1 Class A6 09/25/2008........... AAA 1,704
960 Capital One Multi-Asset Execution Trust,
3.50%, Ser 2003-B2 Class B2 02/17/2009.......... A 951
640 Citibank Credit Card Issuance Trust,
5.00%, Ser 2003-C4 Class C4 06/10/2015.......... BBB 602
2,850 Citibank Credit Card Master Trust I,
5.50%, Ser 1999-1 Class A 02/15/2006............ AAA 2,885
516 Comed Transitional Funding Trust,
5.44%, Ser 1998-1 Class A5 03/25/2007........... AAA 532
806 CS First Boston Mortgage Securities Corp.,
2.079%, Ser 2003-C3 Class A1 05/15/2038......... AAA 789
2,710 Daimler Chrysler Auto Trust,
3.85%, Ser 2002-A Class A 04/06/2006............ AAA 2,752
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
FINANCE -- (CONTINUED)
$ 2,375 Discover Card Master Trust,
5.30%, Ser 2001-5 Class A 11/16/2006............ AAA $ 2,424
1,650 Ford Credit Auto Owner Trust,
4.29%, Ser 2003-A Class C 11/15/2007............ BBB 1,660
2,400 Ford Credit Auto Owner Trust,
6.99%, Ser 2000-E Class B 02/15/2005............ AA- 2,415
3,525 Honda Auto Receivables Owner Trust,
1.34%, Ser 2003-2 Class A2 12/21/2005........... AAA 3,523
1,940 LB-UBS Commercial Mortgage Trust,
2.72%, Ser 2003-C1 Class A1 03/15/2027.......... AAA 1,929
1,989 LB-UBS Commercial Mortgage Trust,
3.361%, Ser 2003-C7 Class A1 09/15/2027......... AAA 1,987
1,900 Morgan Stanley Capital Trust I,
4.74%, Ser 2003-TOP9 Class A2 11/13/2036........ AAA 1,887
396 Morgan Stanley Capital Trust I,
5.91%, Ser 1999-WF1 Class A1 11/15/2031......... Aaa* 422
964 Morgan Stanley Dean Witter Capital, I,
4.57%, Ser 2001-IQA Class A1 12/18/2032......... Aaa* 999
750 PP&L Transition Bond Co.,
6.83%, Ser 1999-1 Class A5 03/25/2007........... AAA 781
206 Soundview Home Equity Loan Trust, Inc.,
8.64%, Ser 2000-1 Class M1 05/25/2030........... AA 226
2,650 Volkswagen Auto Loan Enhanced Trust,
1.11%, Ser 2003-1 Class A2 12/20/2005........... AAA 2,644
1,920 WFS Financial Owner Trust,
2.41%, Ser 2003-2 Class A4 12/20/2008........... AAA 1,896
656 Whole Auto Loan Trust,
6.00%, Ser 2002-1 Class D 04/15/2009(h)......... BB 654
--------
40,569
--------
</Table>
The accompanying notes are an integral part of this financial statement.
134
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
ASSET BACKED AND COMMERCIAL MORTGAGE SECURITIES -- (CONTINUED)
UTILITIES -- 0.3%
$ 1,516 Illinois Power Special Purpose Trust,
5.38%, Ser 1998-1 Class A5 06/25/2007........... AAA $ 1,565
Total asset backed and commercial mortgage
securities (cost $42,353)....................... $ 42,134
========
CORPORATE BONDS: INVESTMENT GRADE -- 33.7%
BASIC MATERIALS -- 2.1%
1,240 Champion International Corp.,
7.20%, 11/01/2026............................... BBB 1,379
500 Cypress Amax Minerals Co.,
8.375%, 02/01/2023.............................. BBB- 493
1,200 Inco Ltd.,
7.75%, 05/15/2012............................... BBB- 1,395
420 Olin Corp.,
9.125%, 12/15/2011.............................. BBB- 502
800 Placer Dome, Inc.,
6.45%, 10/15/2035(h)............................ BBB+ 806
600 Placer Dome, Inc.,
7.125%, 06/15/2007.............................. BBB+ 663
1,900 Potlatch Corp.,
12.50%, 12/01/2009.............................. Baa3* 2,242
675 Santa Fe Pacific Gold Corp.,
8.375%, 07/01/2005.............................. BBB 735
2,000 Union Camp Corp.,
7.00%, 08/15/2006............................... BBB 2,206
800 Willamette Industries, Inc.,
7.85%, 07/01/2026............................... BBB 894
--------
11,315
--------
CAPITAL GOODS -- 1.6%
700 General Dynamics Corp.,
4.50%, 08/15/2010............................... A 710
1,470 International Game Technology,
7.875%, 05/15/2004.............................. BBB 1,515
550 International Game Technology,
8.375%, 05/15/2009.............................. BBB 656
3,400 Northrop Grumman Corp.,
8.625%, 10/15/2004.............................. BBB 3,618
1,045 Rockwell International Corp.,
5.20%, 01/15/2098............................... A 764
1,500 Rockwell International Corp.,
6.70%, 01/15/2028............................... A 1,629
--------
8,892
--------
CONSUMER CYCLICAL -- 1.8%
1,200 CRH America, Inc.,
6.95%, 03/15/2012............................... BBB+ 1,354
2,040 Diageo Capital plc,
3.375%, 03/20/2008.............................. A 2,023
2,080 Ford Motor Co.,
6.625%, 10/01/2028.............................. BBB 1,706
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CONSUMER CYCLICAL -- (CONTINUED)
$ 1,500 General Motors Corp., 7.20%, 01/15/2011........... BBB $ 1,573
1,600 Meyer (Fred), Inc., 7.375%, 03/01/2005............ BBB 1,709
300 Nine West Group, Inc., 8.375%, Ser B 08/15/2005... BBB 327
930 Staples Inc.,
7.125%, 08/15/2007.............................. BBB- 1,019
--------
9,711
--------
CONSUMER STAPLES -- 1.4%
2,200 Cadbury Schweppes Finance, 5.00%, 06/26/2007...... BBB 2,301
625 ConAgra Foods, Inc.,
7.00%, 10/01/2028............................... BBB+ 684
2,135 ConAgra Foods, Inc.,
7.50%, 09/15/2005............................... BBB+ 2,336
2,200 General Mills, Inc.,
2.625%, 10/24/2006.............................. BBB+ 2,183
--------
7,504
--------
ENERGY -- 3.0%
1,700 Anadarko Petroleum Corp., 5.375%, 03/01/2007...... BBB+ 1,821
370 Burlington Resources Finance Co., 6.50%,
12/01/2011...................................... BBB+ 412
1,885 Burlington Resources Finance Co., 6.68%,
02/15/2011...................................... BBB+ 2,103
1,040 Conoco, Inc.,
5.90%, 04/15/2004............................... A- 1,061
1,275 Consolidated Natural Gas Co., 5.375%, Ser B
11/01/2006...................................... BBB+ 1,363
1,100 Consumers Energy Co.,
6.25%, 09/15/2006............................... BBB- 1,198
500 Lasmo (USA), Inc.,
7.50%, 06/30/2006............................... AA 562
650 Occidental Petroleum Corp., 7.375%, 11/15/2008.... BBB+ 750
830 PanCanadian Petroleum Ltd., 6.30%, 11/01/2011..... A- 915
1,500 PanCanadian Petroleum Ltd., 7.20%, 11/01/2031..... A- 1,710
1,130 Pemex Finance Ltd.,
9.69%, Ser 1999-2 Class A1 08/15/2009........... A- 1,329
1,100 Pemex Project Funding Master Trust,
7.875%, 02/01/2009.............................. BBB- 1,232
870 Petro-Canada,
5.35%, 07/15/2033............................... BBB 768
1,150 Repsol International Finance B.V., 7.45%,
07/15/2005...................................... BBB 1,244
--------
16,468
--------
</Table>
The accompanying notes are an integral part of this financial statement.
135
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT
GRADE -- (CONTINUED)
FINANCE -- 12.7%
$ 948 Abbey National plc,
6.69%, 10/17/2005............................... A+ $ 1,031
910 Abbey National plc,
6.70%, 06/29/2049............................... A 1,008
800 ACE INA Holdings, Inc.,
8.20%, 08/15/2004............................... BBB+ 839
800 Aetna, Inc.,
7.375%, 03/01/2006.............................. BBB 884
1,600 AvalonBay Communities, Inc. (REIT),
8.25%, 07/15/2008............................... BBB+ 1,882
1,300 Bear Stearns Co., Inc.,
5.70%, 11/15/2014............................... A 1,350
10,000 Bundesobligation,
3.50%, 10/10/2008............................... Aaa* 11,565
1,450 Chase Manhattan Corp.,
7.875%, 06/15/2010.............................. A 1,714
2,400 Credit Suisse First Boston USA, Inc.,
6.125%, 11/15/2011.............................. A+ 2,594
700 Duke Realty Corp. (REIT),
5.25%, 01/15/2010............................... BBB+ 726
465 ERAC USA Finance Co.,
8.25%, 05/01/2005(h)............................ BBB+ 504
1,100 ERP Operating LP,
6.63%, 04/13/2005............................... BBB+ 1,160
4,420 FleetBoston Financial Corp.,
7.25%, 09/15/2005............................... A 4,829
1,050 Fondo Latinoamericano Flar,
3.00%, 08/01/2006(h)............................ A+ 1,043
1,450 Ford Motor Credit Co.,
7.00%, 10/01/2013............................... BBB 1,425
1,400 Ford Motor Credit Co.,
7.375%, 02/01/2011.............................. BBB 1,425
3,200 General Motors Acceptance Corp.,
6.62%, 12/01/2012(f)............................ BBB 1,698
850 Goldman Sachs Group, Inc.,
5.25%, 04/01/2013............................... A+ 854
1,650 J.P. Morgan Chase & Co.,
5.25%, 05/01/2015............................... A 1,644
4,250 KFW International Finance, Inc.,
2.60%, 03/15/2006............................... AAA 4,269
3,570 KFW International Finance, Inc.,
3.00%, 09/15/2005............................... AAA 3,612
1,440 Morgan Stanley Dean Witter & Co.,
7.75%, 06/15/2005............................... A+ 1,571
750 Prudential Insurance Co. of America,
6.375%, 07/23/2006(h)........................... A+ 822
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
FINANCE -- (CONTINUED)
$ 15,100 Queensland Treasury Corp. (Australian Dollar),
6.50%, 06/14/2005............................... AAA $ 10,862
1,000 Russian Federation,
8.25%, 03/31/2010............................... Baa3* 1,117
1,500 SLM Corp.,
3.95%, 08/15/2008............................... A 1,510
250 Southern Investments UK plc,
6.80%, 12/01/2006............................... BBB- 265
820 Sovereign Bank,
5.125%, 03/15/2013.............................. BBB- 802
1,750 TIAA Global Markets,
4.125%, 11/15/2007(h)........................... AAA 1,794
740 UFJ Finance Aruba AEC,
6.75%, 07/15/2013............................... BBB- 775
1,900 United Mexican States,
4.625%, 10/08/2008.............................. BBB- 1,905
720 Wachovia Corp.,
7.55%, 08/18/2005............................... A 790
720 Wellpoint Health Networks, Inc.,
6.375%, 06/15/2006.............................. A- 787
--------
69,056
--------
HEALTH CARE -- 0.8%
2,200 HCA, Inc.,
6.95%, 05/01/2012............................... BBB- 2,278
785 HCR Manor Care, Inc.,
7.50%, 06/15/2006............................... BBB 849
750 Humana, Inc.,
7.25%, 08/01/2006............................... BBB 819
600 Quest Diagnostics, Inc.,
6.75%, 07/12/2006............................... BBB 658
--------
4,604
--------
SERVICES -- 1.9%
1,600 ARAMARK Services, Inc.,
7.10%, 12/01/2006............................... BBB- 1,760
1,100 Clear Channel Communications, Inc.,
6.00%, 11/01/2006............................... BBB- 1,187
500 Cox Enterprises, Inc.,
7.875%, 09/15/2010(h)........................... BBB 579
800 Cox Radio, Inc.,
6.375%, 05/15/2005.............................. BBB 845
500 FedEx Corp.,
6.625%, 02/12/2004.............................. BBB 507
575 Fiserv, Inc.,
3.00%, 06/27/2008............................... BBB+ 548
1,640 Liberty Media Corp.,
3.50%, 09/25/2006............................... BBB- 1,620
1,400 News America Holdings, Inc.,
7.70%, 10/30/2025............................... BBB- 1,600
</Table>
The accompanying notes are an integral part of this financial statement.
136
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: INVESTMENT
GRADE -- (CONTINUED)
SERVICES -- (CONTINUED)
$ 450 Rio Tinto Finance USA Ltd.,
2.625%, 09/30/2008.............................. A+ $ 429
960 Walt Disney Co.,
7.30%, 02/08/2005............................... BBB+ 1,024
--------
10,099
--------
TECHNOLOGY -- 3.9%
2,410 AOL Time Warner, Inc.,
3.34%, Conv. 12/06/2019(a)(f)................... BBB 1,497
500 AT&T Broadband Corp.,
8.375%, 03/15/2013.............................. BBB 604
951 AT&T Corp.,
8.50%, 11/15/2031............................... BBB 1,078
300 AT&T Corp.,
8.50%, 11/15/2031(h)............................ BBB 340
2,500 AT&T Wireless Services, Inc.,
8.125%, 05/01/2012.............................. BBB 2,900
2,200 British Telecommunications plc,
8.875%, 12/15/2030.............................. A- 2,833
1,775 Continental Cablevision, Inc.,
8.875%, 09/15/2005.............................. BBB 1,972
1,600 Deutsche Telekom International Finance B.V.,
8.25%, 06/15/2005............................... BBB+ 1,748
900 Deutsche Telekom International Finance B.V.,
8.75%, 06/15/2030............................... BBB+ 1,132
1,600 Raytheon Co.,
8.20%, 03/01/2006............................... BBB- 1,789
380 Rogers Cable, Inc.,
6.25%, 06/15/2013 (with rights)................. BBB- 380
1,000 Telefonica Europe B.V.,
7.35%, 09/15/2005............................... A 1,090
1,560 Time Warner Companies, Inc.,
7.25%, 10/15/2017............................... BBB+ 1,736
1,900 Time Warner Entertainment Co.,
8.375%, 03/15/2023.............................. BBB+ 2,312
--------
21,411
--------
TRANSPORTATION -- 0.5%
1,140 Delta Air Lines, Inc.,
7.11%, 09/18/2011............................... A 1,162
1,650 Norfolk Southern Corp.,
7.875%, 02/15/2004.............................. BBB 1,679
--------
2,841
--------
UTILITIES -- 4.0%
1,590 Carolina Power & Light Co.,
5.125%, 09/15/2013.............................. BBB 1,599
1,140 Carolina Power & Light Co.,
6.125%, 09/15/2033.............................. BBB 1,147
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
UTILITIES -- (CONTINUED)
$ 250 Cleveland Electric Illuminating Co.,
7.13%, Ser B 07/01/2007......................... AAA $ 284
2,040 Commonwealth Edison Co.,
4.70%, 04/15/2015............................... A- 1,961
850 Consolidated Edison Co. of New York,
5.875%, 04/01/2033.............................. A 841
565 Detroit Edison Co.,
6.125%, 10/01/2010.............................. A- 616
1,175 Duke Energy Corp.,
3.75%, 03/05/2008............................... A- 1,174
550 Duke Energy Corp.,
4.50%, 04/01/2010............................... A- 554
3,200 FPL Group Capital, Inc.,
3.25%, 04/11/2006............................... A- 3,237
750 International Transmission Co.,
4.45%, 07/15/2013(h)............................ BBB+ 708
1,660 Kinder Morgan, Inc.,
6.65%, 03/01/2005............................... BBB 1,762
800 Northern States Power Co.,
2.875%, 08/01/2006.............................. BBB+ 800
1,500 Northern States Power Co.,
8.00%, Ser B 08/28/2012......................... BBB+ 1,826
1,600 Pacificorp,
5.45%, 09/15/2013............................... A 1,646
200 Pacificorp,
6.12%, 01/15/2006............................... A 216
900 Public Service Colorado, Inc. Ser 12,
4.875%, 03/01/2013.............................. BBB+ 892
1,400 Public Service Electric & Gas Co.,
5.375%, 09/01/2013.............................. A- 1,435
125 Public Service Electric & Gas Co.,
7.00%, 09/01/2024............................... AAA 129
850 Texas-New Mexico Power Co.,
6.125%, 06/01/2008 (with rights)(h)............. BBB- 858
265 Westar Energy, Inc.,
8.50%, 07/01/2022............................... BBB- 275
--------
21,960
--------
Total corporate bonds: investment grade (cost
$179,854)....................................... $183,861
========
CORPORATE BONDS: NON-INVESTMENT GRADE -- 6.4%
BASIC MATERIALS -- 0.6%
$ 460 Abitibi-Consolidated, Inc.,.......................
8.30%, 08/01/2005 BB+ $ 485
530 Georgia-Pacific Corp.,............................
7.25%, 06/01/2028 BB+ 482
</Table>
The accompanying notes are an integral part of this financial statement.
137
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT
GRADE -- (CONTINUED)
BASIC MATERIALS -- (CONTINUED)
$ 155 Oregon Steel Mills, Inc.,
10.00%, 07/15/2009.............................. B $ 127
1,125 Owens-Brockway Glass Containers,
8.75%, 11/15 /2012.............................. BB 1,232
300 PolyOne Corp.,
6.875%, 12/01/2004(g)........................... B2* 292
905 Rhodia S.A.,
8.875%, 06/01/2011
(with rights)(h)................................ B 806
--------
3,424
--------
CAPITAL GOODS -- 0.2%
150 American Standard, Inc.,
7.375%, 02/01/2008.............................. BB+ 165
985 Xerox Corp.,
9.75% 01/15/2009................................ B+ 1,116
--------
1,281
--------
CONSUMER CYCLICAL -- 0.7%
1,400 Delhaize America, Inc.,
8.125%, 04/15/2011.............................. BB+ 1,545
1,100 J.C. Penney Co., Inc.,
7.65%, 08/15/2016............................... BB+ 1,160
470 Millennium America, Inc.,
7.625%, 11/15/2026.............................. BB- 402
650 Toll Corp.,
8.25%, 02/01/2011............................... BB+ 722
--------
3,829
--------
ENERGY -- 0.5%
1,500 Coastal Corp.,
7.625%, 09/01/2008.............................. B 1,279
125 Pioneer Natural Resources Co.,
6.50%, 01/15/2008............................... BB+ 134
1,100 Pioneer Natural Resources Co.,
7.20%, 01/15/2028............................... BB+ 1,146
--------
2,559
--------
FINANCE -- 0.4%
1,050 Colombia (Republic of),
8.625%, 04/01/2008.............................. BB 1,102
120 Interpool, Inc.,
7.20%, 08/01/2007............................... BB- 112
700 Philippines (Republic of),
10.625%, 03/16/2025............................. BB 758
--------
1,972
--------
</Table>
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
HEALTH CARE -- 0.2%
$ 290 Omnicare, Inc.,
6.125%, 06/01/2013.............................. BB+ $ 287
405 Tenet Healthcare Corp.,
6.375%, 12/01/2011.............................. BB- 376
660 Tenet Healthcare Corp.,
7.375%, 02/01/2013.............................. BB- 640
--------
1,303
--------
SERVICES -- 0.9%
1,560 Allied Waste North America, Inc.,
9.25%, Ser B 09/01/2012......................... BB- 1,755
840 Browning-Ferris Industries, Inc.,
6.375%, 01/15/2008.............................. BB- 823
1,400 CSC Holdings, Inc.,
7.625%, 07/15/2018.............................. BB- 1,379
970 Echostar DBS Corp.,
5.75%, 10/01/2008(h)............................ BB- 966
--------
4,923
--------
TECHNOLOGY -- 1.5%
1,000 Corning, Inc.,
8.30%, 04/04/2025............................... Ba2* 1,057
455 Global Crossing Holdings Ltd.,
8.70%, 08/01/2007(a)(g)......................... NR 42
2,385 Global Crossing Holdings Ltd.,
9.50%, 11/15/2009(a)(g)......................... NR 218
1,000 Global Crossing Holdings Ltd.,
9.625%, 05/15/2008(a)(g)........................ NR 91
500 KPNQwest N.V.,
8.125%, 06/01/2009(a)........................... NR @@
647 Lucent Technologies, Inc.,
6.45%, 03/15/2029............................... B- 500
280 Lucent Technologies, Inc.,
6.50%, 01/15/2028............................... B- 217
458 Marconi Corp. plc,
10.00%, 10/31/2008.............................. NR 476
674 Marconi Corp. plc,
8.00%, 04/30/2008............................... NR 660
275 Nortel Networks Corp.,
4.25%, Conv. 09/01/2008......................... B 259
320 PanAmSat Corp.,
6.375%, 01/15/2008.............................. BB- 328
1,625 PerkinElmer, Inc.,
8.875%, 01/15/2013.............................. BB- 1,779
1,455 Qwest Corp.,
6.875%, 09/15/2033.............................. B- 1,299
420 Shaw Communications, Inc.,
8.25%, 04/11/2010............................... BB+ 464
2,480 WorldCom, Inc. - WorldCom Group,
8.25%, 05/15/2031(a)............................ NR 911
--------
8,301
--------
</Table>
The accompanying notes are an integral part of this financial statement.
138
- --------------------------------------------------------------------------------
<Table>
<Caption>
STANDARD
AND POOR'S
PRINCIPAL RATING MARKET
AMOUNT (UNAUDITED) VALUE(C)
- --------- ----------- --------
CORPORATE BONDS: NON-INVESTMENT
GRADE -- (CONTINUED)
UTILITIES -- 1.4%
$ 275 Kansas Gas & Electric Co.,
6.20%, 01/15/2006............................... BB+ $ 286
1,120 Kansas Gas & Electric Co.,
7.60%, 12/15/2003............................... BB+ 1,114
135 Kansas Gas & Electric Co.,
8.29%, 03/29/2016............................... BB- 141
850 Montana Power Co.,
7.30%, 12/01/2006(h)............................ D 867
1,700 Southern California Edison Co.,
7.125%, 07/15/2025.............................. BB 1,726
687 Southern California Edison Co.,
8.00%, 02/15/2007............................... BB 771
155 Tennessee Gas Pipeline Co.,
7.00%, 10/15/2028............................... B+ 138
1,850 Transcontinental Gas Pipeline Corp.,
6.125%, 01/15/2005.............................. B+ 1,882
500 Transcontinental Gas Pipeline Corp.,
7.25%, 12/01/2026............................... B+ 508
--------
7,433
--------
Total corporate bonds:
non-investment grade
(cost $35,953).................................. $ 35,025
========
U.S. GOVERNMENT SECURITIES -- 48.1%
FEDERAL HOME LOAN MORTGAGE -- 1.3%
1,400 3.125% 2006.................................................... $ 1,417
5,833 5.50% 2033..................................................... 5,884
--------
7,301
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 22.1%
6,000 4.50% 2013..................................................... 5,869
28,400 5.00% 2018 -- 2033............................................. 28,526
38,139 5.50% 2032 -- 2033............................................. 38,507
37,506 6.00% 2013 -- 2033(i).......................................... 38,563
6,914 6.50% 2031 -- 2033............................................. 7,184
1,727 7.50% 2029 -- 2031............................................. 1,840
--------
120,489
--------
GOVERNMENT NATIONAL MORTGAGE -- 7.6%
16,340 5.50% 2033..................................................... 16,565
2,530 6.00% 2032..................................................... 2,615
20,987 6.50% 2028 -- 2032............................................. 21,984
--------
41,164
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- --------- --------
- --------- ----------- --------
OTHER DIRECT FEDERAL OBLIGATIONS -- 0.9%
$ 250 Federal Home Loan Bank, 6.24%, 02/20/2007(e)................... $ 267
2,750 Federal Home Loan Bank,
2.24%, 11/07/2005............................................ 2,750
8,800 Tennessee Valley Authority, 6.96%, 11/01/2025(f)............... 1,917
--------
4,934
--------
U.S. TREASURY SECURITIES -- 16.2%
11,000 1.50% 2005..................................................... 10,964
4,400 1.875% 2004.................................................... 4,427
7,385 3.00% 2007 -- 2008............................................. 7,392
895 3.125% 2008.................................................... 890
350 3.25% 2007..................................................... 356
1,265 3.50% 2006..................................................... 1,306
600 3.875% 2013.................................................... 583
15,905 4.25% 2013..................................................... 15,841
2,325 4.375% 2007.................................................... 2,460
2,635 4.625% 2006.................................................... 2,797
1,210 5.00% 2011..................................................... 1,295
18,450 5.375% 2031.................................................... 19,066
230 6.00% 2009..................................................... 260
3,045 6.50% 2006 -- 2010............................................. 3,489
1,350 6.625% 2007.................................................... 1,531
500 6.75% 2005..................................................... 539
5,000 6.875% 2006.................................................... 5,582
2,865 6.875% 2025.................................................... 3,473
4,750 7.875% 2021.................................................... 6,272
--------
88,523
--------
Total U.S. government securities
(cost $262,523).............................................. $262,411
========
<Caption>
SHARES
- ---------
COMMON STOCK -- 0.3%
TECHNOLOGY -- 0.3%
94 Marconi Corp. plc ADR(a)....................................... $ 1,711
--------
Total common stock.............................................
(cost $911) $ 1,711
========
PREFERRED STOCKS -- 0.1%
CAPITAL GOODS -- 0.1%
9 Xerox Corp., Conv.,............................................
7.50%, 11/27/2021(h) $ 562
--------
Total preferred stocks.........................................
(cost $425) $ 562
========
Total long-term investments....................................
(cost $525,019) $528,417
========
SHORT-TERM INVESTMENTS -- 24.1%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 19.4%
105,731 Navigator Prime Portfolio...................................... $105,731
</Table>
The accompanying notes are an integral part of this financial statement.
139
THE HARTFORD TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- ----------- -----------
FINANCE -- 4.7%
$ 6,152 Banc One Joint Repurchase Agreement,
0.97%, 11/03/2003 (Note 2f).................................... $ 6,152
9,715 BNP Paribas Joint Repurchase Agreement,
0.99%, 11/03/2003 (Note 2f).................................... 9,715
9,715 UBS Warburg Joint Repurchase Agreement,
0.98%, 11/03/2003 (Note 2f).................................... 9,715
---------
25,582
---------
Total short-term investments
(cost $131,313)................................................ $ 131,313
=========
Total investments in securities
(cost $656,332)(b)............................................. $ 659,730
=========
</Table>
<Table>
(a) Presently non-income producing. For long-term debt securities, items
identified are in default as to payment of interest and/or principal.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $656,846 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $ 9,533
Unrealized depreciation......................... (6,648)
-------
Net unrealized appreciation..................... $ 2,885
=======
</Table>
<Table>
(c) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 11.78% of total net assets as of October 31, 2003.
(e) Variable rate securities; the yield reported is the rate in effect as of
October 31, 2003.
(f) The interest rate disclosed for these securities represents the effec-
tive yield on the date of acquisition.
(g) These investments have been identified by portfolio management as
illiquid securities. As noted, some Securities issued within terms of a
private placement memorandum, exempt from registration under Section 144A
of the Securities Act of 1933, as amended, and may be sold only to
dealers in that program or to other "accredited investors":
</Table>
<Table>
<Caption>
PERIOD COST
ACQUIRED SHARES/PAR SECURITY BASIS
-------- ---------- -------- ------
2001 1,000 Global Crossing Holdings Ltd., $ 942
due 2008
2001 455 Global Crossing Holdings Ltd., 204
due 2007
2001 2,385 Global Crossing Holdings Ltd., 1,347
due 2009
2002 300 PolyOne Corp., due 2004-144A 298
</Table>
The aggregate value of these securities as of October 31, 2003, was $643,
which represents 0.12% of total net assets.
<Table>
(h) Securities issued within terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or to other
"accredited investors". Pursuant to guidelines adopted by the Board of
Directors, these issues are determined to be liquid. The aggregate value
of these securities at October 31, 2003, was $11,834, which represents
2.17% of total net assets.
(i) The cost of securities purchased on a when-issued basis at October 31,
2003 was $22,454.
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
* Moody's Rating.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$656,332) @ ...................................... $659,730
Cash................................................ 15
Foreign currency on deposit with custodian (cost
$974)............................................. 1,028
Receivables:
Investment securities sold........................ 7,575
Fund shares sold.................................. 2,075
Dividends and interest............................ 5,388
Other assets........................................ 109
--------
Total assets........................................ 675,920
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 105,731
Investment securities purchased................... 22,820
Fund shares redeemed.............................. 1,765
Payable for investment advisory and management
fees (Note 3)................................... 298
Payable for distribution fees (Note 3)............ 41
Accrued Expenses.................................... 194
--------
Total liabilities................................... 130,849
--------
Net assets.......................................... $545,071
========
</Table>
@ Market value of securities on loan $102,542.
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 48,953
shares outstanding................................ $523,383
Accumulated undistributed net investment income..... 219
Accumulated net realized gain on investments and
foreign currency transactions..................... 18,010
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 3,459
--------
Net assets.......................................... $545,071
========
</Table>
<Table>
Class A
Net asset value per share ($268,655/24,126 shares
outstanding)...................................... $11.14
------
Maximum offering price per share ($11.14/95.5%)..... $11.66
======
Class B
Net asset value per share ($106,077/9,569 shares
outstanding)...................................... $11.09
======
Class C
Net asset value per share ($110,214/9,908 shares
outstanding)...................................... $11.12
------
Maximum offering price per share ($11.12/99.0%)..... $11.23
======
Class Y
Net asset value per share ($60,125/5,350 shares
outstanding)...................................... $11.24
======
</Table>
The accompanying notes are an integral part of this financial statement.
140
THE HARTFORD U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(B)
- --------- --------
U.S. GOVERNMENT SECURITIES -- 98.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 36.6%
MORTGAGE BACKED SECURITIES:
$ 6,428 5.50% 2032........................................ $ 6,486
4,411 6.00% 2032........................................ 4,528
28,625 6.50% 2031........................................ 30,230
350 7.00% 2029 -- 2031................................ 368
251 9.00% 2022........................................ 280
2 10.50% 2015....................................... 2
57 11.25% 2013....................................... 64
144 11.50% 2015 -- 2019............................... 162
143 11.75% 2010 -- 2011............................... 161
36 12.50% 2019....................................... 40
--------
42,321
--------
NOTES:
5,000 3.125% 2006....................................... 5,061
23,100 4.75% 2012........................................ 22,671
5,500 4.875% 2013....................................... 5,515
15,000 5.25% 2012........................................ 15,033
--------
48,280
--------
</Table>
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(B)
- --------- --------
REMIC -- IO:
$ 6,280 8.23% Ser 2498 Class LI 2014(e)................... $ 310
--------
REMIC -- PAC'S:
7,000 5.50% Ser 2496 Class TE 2029...................... 7,222
8,500 6.00% Ser 2413 Class QJ 2027...................... 8,638
10,000 6.00% Ser 2496 Class QM 2028...................... 10,474
--------
26,334
--------
117,245
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 29.3%
MORTGAGE BACKED SECURITIES:
19,896 5.50% 2015-2032................................... 20,124
2,277 5.85% 2009........................................ 2,452
2,830 5.89% 2008........................................ 3,054
21,262 6.00% 2016 -- 2032................................ 21,875
1,368 6.01% 2009........................................ 1,483
2,713 6.36% 2008........................................ 2,976
2,379 6.50% 2013 -- 2015................................ 2,505
5,699 6.52% 2008........................................ 6,269
6,086 7.184% 2006....................................... 6,665
304 7.50% 2030........................................ 324
77 8.00% 2025........................................ 84
94 8.50% 2022........................................ 103
45 9.00% 2020........................................ 50
127 9.75% 2020........................................ 141
221 10.00% 2020....................................... 250
101 10.50% 2012 -- 2018............................... 113
27 10.75% 2013....................................... 30
529 11.00% 2015 -- 2020............................... 596
73 11.25% 2013....................................... 81
21 11.50% 2015....................................... 23
59 12.00% 2011 -- 2016............................... 67
135 12.50% 2015....................................... 155
--------
69,420
--------
NOTES:
6,000 3.75% 2008........................................ 5,971
--------
REMIC -- IO:
4,080 8.77% Ser 2002-54 Class IJ 2022(e)................ 716
2,595 8.892% Ser 2002-56 Class IQ 2025(e)............... 49
--------
765
--------
REMIC-PAC'S:
9,500 6.00% Ser 2001-74 Class QD 2030................... 9,901
8,000 6.50% Ser 2002-21 Class PE 2032................... 8,308
--------
18,209
--------
94,365
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 9.4%
MORTGAGE BACKED SECURITIES:
6,336 5.00% 2033........................................ 6,259
13,631 6.50% 2031 -- 2032................................ 14,278
220 7.00% 2030........................................ 232
311 8.00% 2017 -- 2022................................ 339
924 9.50% 2016 -- 2019................................ 1,026
62 11.00% 2015 -- 2018............................... 71
--------
22,205
--------
REMIC -- PAC'S:
8,000 6.00% Ser 2002-88 Class AB 2032................... 8,082
--------
30,287
--------
OTHER DIRECT FEDERAL OBLIGATIONS -- 7.7%
FEDERAL HOME LOAN BANK:
16,600 3.375% 2008....................................... 16,448
7,750 5.75% 2012........................................ 8,387
--------
24,835
U.S. TREASURY SECURITIES -- 15.3%
4,250 3.50% 2011(d)..................................... 5,080
18,600 5.00% 2011........................................ 19,911
19,600 7.25% 2016........................................ 24,289
--------
49,280
--------
Total U.S. government securities
(cost $314,885)................................. $316,012
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 10.4%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 7.2%
23,140 Boston Global Investment Trust.................... $ 23,140
--------
</Table>
The accompanying notes are an integral part of this financial statement.
141
THE HARTFORD U.S. GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
PRINCIPAL MARKET
AMOUNT VALUE(B)
- ----------- -----------
FINANCE -- 3.2%
$ 2,464 Banc One Joint Repurchase Agreement,
0.97%, 11/03/2003 (Note 2f)..................... $ 2,464
3,891 BNP Paribas Joint Repurchase Agreement,
0.99%, 11/03/2003 (Note 2f)..................... 3,891
3,891 UBS Warburg Joint Repurchase Agreement,
0.98%, 11/03/2003 (Note 2f)..................... 3,891
---------
10,246
---------
Total short-term investments
(cost $33,386).................................. $ 33,386
=========
Total investments in securities
(cost $348,271)(a).............................. $ 349,398
=========
</Table>
<Table>
(a) At October 31, 2003, the cost of securities for income tax purposes is
$348,271 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $ 4,864
Unrealized depreciation......................... (3,737)
-------
Net unrealized appreciation..................... $ 1,127
=======
</Table>
<Table>
(b) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(c) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets.
(d) U.S. Treasury inflation-protection securities (TIPS) are securities in
which the principal amount is adjusted for inflation and the semiannual
interest payments equal a fixed percentage of the inflation-adjusted
principal amount.
(e) The interest rates disclosed for interest only strips represent effec-
tive yields based upon estimated future cash flows at October 31, 2003.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$348,271) @ ...................................... $349,398
Cash................................................ 1
Receivables:
Investment securities sold........................ 7
Fund shares sold.................................. 254
Dividends and interest............................ 2,751
Other assets........................................ 142
--------
Total assets........................................ 352,553
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................. 23,140
Investment securities purchased................... 6,259
Fund shares redeemed.............................. 1,256
Payable for investment advisory and management
fees (Note 3)................................... 201
Payable for distribution fees (Note 3)............ 15
Accrued Expenses.................................... 93
--------
Total liabilities................................... 30,964
--------
Net assets.......................................... $321,589
========
@ Market value of securities on loan $22,085.
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.0001
per share; 19,250,000 shares authorized 33,299
shares outstanding;............................... $331,327
Accumulated undistributed net investment income..... 1
Accumulated net realized loss on investments........ (10,866)
Unrealized appreciation of investments in
securities........................................ 1,127
--------
Net assets.......................................... $321,589
========
</Table>
<Table>
Class A
Net asset value per share ($65,337 / 6,754
shares outstanding)........................... $ 9.67
------
Maximum offering price per
share($9.67 / 95.5%).......................... $10.13
======
Class B
Net asset value per share ($38,210 / 3,965
shares outstanding)........................... $ 9.64
------
Class C
Net asset value per share ($26,626 / 2,763
shares outstanding)........................... $ 9.63
------
Maximum offering price per share
($9.63 / 99.0%)............................... $ 9.73
======
Class E
Net asset value per share ($135,954 / 14,074
shares outstanding)........................... $ 9.66
------
Maximum offering price per share
($9.66 / 95.5%)............................... $10.12
======
Class H
Net asset value per share ($6,283 / 653 shares
outstanding).................................. $ 9.63
======
Class L
Net asset value per share ($43,202 / 4,470
shares outstanding)........................... $ 9.67
------
Maximum offering price per share
($9.67 / 95.5%)............................... $10.13
======
Class M
Net asset value per share ($4,588 / 476 shares
outstanding).................................. $ 9.63
======
Class N
Net asset value per share ($1,388 / 144 shares
outstanding).................................. $ 9.63
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding).................................. $ 9.68
======
</Table>
<Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
</Table>
The accompanying notes are an integral part of this financial statement.
142
THE HARTFORD VALUE FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 98.4%
BASIC MATERIALS -- 4.7%
34 Alcoa, Inc. ...................................... $ 1,070
4 Ashland, Inc. (with rights)....................... 164
24 DuPont (E.I.) de Nemours & Co. ................... 969
12 Kimberly-Clark Corp. ............................. 634
-------
2,837
-------
CAPITAL GOODS -- 5.7%
9 Illinois Tool Works, Inc. ........................ 684
16 Rockwell Automation, Inc. ........................ 481
53 Teradyne, Inc. (with rights)(a)................... 1,212
48 Tyco International Ltd. (with rights)............. 998
-------
3,375
-------
CONSUMER CYCLICAL -- 7.8%
41 AutoNation, Inc.(a)............................... 774
16 Caterpillar, Inc. (with rights)................... 1,158
36 Dollar General Corp. (with rights)................ 811
14 General Motors Corp. ............................. 615
23 McDonald's Corp. ................................. 585
11 NIKE, Inc. Class B................................ 703
-------
4,646
-------
CONSUMER STAPLES -- 6.1%
16 Coca-Cola Enterprises, Inc. ...................... 312
26 Kellogg Co. ...................................... 858
24 PepsiCo, Inc. .................................... 1,124
22 Weyerhaeuser Co. ................................. 1,337
-------
3,631
-------
ENERGY -- 9.6%
18 Chevron Texaco Corp. (with rights)................ 1,315
81 Exxon Mobil Corp. ................................ 2,978
28 GlobalSantaFe Corp. .............................. 623
23 National Fuel Gas Co. ............................ 521
6 Progress Energy, Inc. ............................ 276
-------
5,713
-------
FINANCE AND INSURANCE -- 28.5%
23 ACE Ltd. ADR (with rights)........................ 814
8 Archstone-Smith Trust (REIT)...................... 203
23 Bank of America Corp. ............................ 1,749
16 Bank One Corp. ................................... 662
11 Chubb Corp. (with rights)......................... 748
4 CIGNA Corp. (with rights)......................... 251
62 Citigroup, Inc. .................................. 2,929
9 Fannie Mae........................................ 660
11 Goldman Sachs Group, Inc. ........................ 1,042
12 Marsh & McLennan Companies, Inc.
(with rights)................................... 522
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
21 Morgan Stanley (with rights)...................... $ 1,147
45 National City Corp. .............................. 1,473
11 PNC Financial Services Group, Inc.
(with rights)................................... 595
33 St. Paul Companies, Inc. ......................... 1,239
10 StanCorp Financial Group, Inc. ................... 618
33 Washington Mutual, Inc. (with rights)............. 1,459
17 Wells Fargo & Co. (with rights)................... 946
-------
17,057
-------
HEALTH CARE -- 6.6%
12 Bard (C.R.), Inc. (with rights)................... 977
22 Baxter International, Inc. (with rights).......... 595
29 CVS Corp. ........................................ 1,017
43 Pfizer, Inc. (with rights)........................ 1,344
-------
3,933
-------
SERVICES -- 2.9%
34 Comcast Corp. Special Class A(a).................. 1,112
27 Republic Services, Inc. .......................... 616
-------
1,728
-------
TECHNOLOGY -- 17.9%
41 Applied Materials, Inc.(a)........................ 953
30 AT&T Corp. ....................................... 558
12 Beckman Coulter, Inc. (with rights)............... 611
34 BellSouth Corp. (with rights)..................... 900
20 Emerson Electric Co. (with rights)................ 1,146
49 Hewlett-Packard Co. .............................. 1,090
16 International Business Machines Corp. ............ 1,387
78 Nokia Oyj ADR..................................... 1,322
32 SBC Communications, Inc. ......................... 765
9 Texas Instruments, Inc. (with rights)............. 269
67 Time Warner, Inc.(a).............................. 1,026
19 Verizon Communications, Inc. ..................... 628
-------
10,655
-------
TRANSPORTATION -- 4.0%
17 CSX Corp. (with rights)........................... 554
28 Shell Transport & Trading Co. plc ADR............. 1,084
38 Southwest Airlines Co. (with rights).............. 727
-------
2,365
-------
UTILITIES -- 4.6%
12 Dominion Resources, Inc. ......................... 748
19 Exelon Corp. ..................................... 1,199
7 PPL Corp. ........................................ 260
</Table>
The accompanying notes are an integral part of these financial statements.
143
THE HARTFORD VALUE FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- (CONTINUED)
UTILITIES -- (CONTINUED)
Tv16 Scana Corp. ...................................... $ 542
-------
2,749
-------
Total common stock
(cost $55,484).................................. $58,689
=======
SHORT-TERM INVESTMENTS -- 2.5%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 1.4%
806 Boston Global Investment Trust.................... $ 806
PRINCIPAL
AMOUNT
------
TV FINANCE -- 1.1%
$ 100 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 100
263 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 263
327 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 327
-------
690
-------
Total short-term investments
(cost $1,496)................................... $ 1,496
=======
Total investments in securities
(cost $56,980)(b)............................... $60,185
=======
</Table>
<Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $57,308 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
</Table>
<Table>
Unrealized appreciation......................... $ 5,356
Unrealized depreciation......................... (2,479)
-------
Net unrealized appreciation..................... $ 2,877
=======
</Table>
<Table>
(c) See Note 2b of accompanying Notes to Financial Statements regarding
valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total market
value to total net assets. Market value of investments in foreign
securities represents 4.03% of total net assets as of October 31, 2003.
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$56,980) @...................................... $60,185
Cash.............................................. 1
Receivables:
Investment securities sold...................... 18
Fund shares sold................................ 385
Dividends and interest.......................... 124
Other assets...................................... 16
-------
Total assets...................................... 60,729
-------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)........................................... $ 806
Investment securities purchased................. 46
Fund shares redeemed............................ 149
Payable for investment advisory and management
fees (Note 3)................................. 39
Payable for distribution fees (Note 3).......... 4
Accrued Expenses.................................. 21
-------
Total liabilities................................. 1,065
-------
Net assets........................................ $59,664
=======
@ Market value of securities on loan $794.
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.001
per share; 300,000 shares authorized; 6,706
shares outstanding............................... $63,507
Accumulated undistributed net investment income.... 349
Accumulated net realized loss on investments....... (7,397)
Unrealized appreciation of investments in
securities....................................... 3,205
-------
Net assets......................................... $59,664
=======
</Table>
<Table>
Class A
Net asset value per share ($42,101 / 4,718 shares
outstanding)....................................... $8.92
-----
Maximum offering price per share ($8.92 / 94.5%)..... $9.44
=====
Class B
Net asset value per share ($7,305 / 827 shares
outstanding)....................................... $8.83
=====
Class C
Net asset value per share ($10,231 / 1,158 shares
outstanding)....................................... $8.83
-----
Maximum offering price per share ($8.83 / 99.0%)..... $8.92
=====
Class Y
Net asset value per share ($27 / 3 shares
outstanding)....................................... $8.95
=====
</Table>
The accompanying notes are an integral part of these financial statements.
144
THE HARTFORD VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
COMMON STOCK -- 98.5%
BASIC MATERIALS -- 9.6%
50 Alcoa, Inc. ...................................... $ 1,563
12 Engelhard Corp. (with rights)..................... 329
90 IMC Global, Inc. (with rights).................... 626
30 Michelin (C.G.D.E.) Class B....................... 1,169
22 Pactiv Corp.(a)................................... 494
32 Smurfit-Stone Container Corp. (with rights)(a).... 497
--------
4,678
--------
CAPITAL GOODS -- 9.1%
69 Axcelis Technologies, Inc.(a)..................... 727
94 Bombardier, Inc. Class B.......................... 423
13 Flowserve Corp.(a)................................ 272
9 IHC Caland N.V. .................................. 364
26 Teradyne, Inc. (with rights)(a)................... 590
86 Tyco International Ltd. (with rights)............. 1,800
6 York International Corp. ......................... 247
--------
4,423
--------
CONSUMER CYCLICAL -- 11.0%
4 Avery Dennison Corp. (with rights)................ 189
2 Beazer Homes USA, Inc.(a)......................... 179
2 Blockbuster, Inc. Class A......................... 41
6 CEC Entertainment, Inc.(a)........................ 298
7 Dick's Sporting Goods, Inc.(a).................... 340
36 Foot Locker, Inc. ................................ 641
47 Kroger Co. (with rights)(a)....................... 815
6 M.D.C. Holdings, Inc. ............................ 385
77 Rinker Group Ltd. ................................ 347
12 Ross Stores, Inc. ................................ 610
47 TJX Companies, Inc. .............................. 993
14 Toll Brothers, Inc.(a)............................ 512
--------
5,350
--------
CONSUMER STAPLES -- 2.7%
16 Bunge Ltd. ....................................... 439
16 Constellation Brands, Inc. Class A(a)............. 502
11 EnCana Corp. ..................................... 392
--------
1,333
--------
ENERGY -- 6.7%
17 Devon Energy Corp. ............................... 834
22 GlobalSantaFe Corp. .............................. 495
10 Petroleo Brasileiro S.A. ADR...................... 228
6 Progress Energy, Inc. ............................ 276
16 Royal Dutch Petroleum Co. NY Shares............... 723
9 Total S.A. ADR.................................... 703
--------
3,259
--------
FINANCE AND INSURANCE -- 34.1%
23 ACE Ltd. ADR (with rights)........................ 810
7 Anthem, Inc.(a)................................... 465
31 CIT Group, Inc. .................................. 1,029
46 Citigroup, Inc. .................................. 2,198
14 Comerica, Inc. (with rights)...................... 695
29 Fannie Mae........................................ 2,093
12 FleetBoston Financial Corp. (with rights)......... 485
12 Freddie Mac....................................... 651
52 Hibernia Corp. Class A............................ 1,170
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE(C)
- --------- --------
FINANCE AND INSURANCE -- (CONTINUED)
8 MBIA, Inc. ....................................... $ 453
4 National City Corp. .............................. 121
27 Oxford Health Plans, Inc. ........................ 1,094
21 Platinum Underwriters Holdings Ltd. .............. 615
8 Radian Group, Inc. ............................... 423
36 RenaissanceRe Holdings Ltd. ADR................... 1,619
7 St. Paul Companies, Inc. ......................... 282
28 Travelers Property Casualty Corp. Class B......... 451
19 UnionBanCal Corp. ................................ 1,035
21 Washington Mutual, Inc. (with rights)............. 932
--------
16,621
--------
HEALTH CARE -- 7.6%
10 AmerisourceBergen Corp. (with rights)............. 562
24 Aventis S.A. ADR.................................. 1,244
8 HCA, Inc. ........................................ 310
14 Health Net, Inc. (with rights)(a)................. 436
16 Pfizer, Inc. (with rights)........................ 493
14 Wyeth (with rights)............................... 636
--------
3,681
--------
SERVICES -- 6.8%
26 BearingPoint, Inc. (with rights)(a)............... 242
65 Comcast Corp. Special Class A(a).................. 2,127
28 Unisys Corp.(a)................................... 436
70 UnitedGlobalCom, Inc. Class A(a).................. 495
--------
3,300
--------
TECHNOLOGY -- 7.5%
28 Arrow Electronics, Inc.(a)........................ 587
5 Cox Communications, Inc. Class A(a)............... 157
24 Fairchild Semiconductor International, Inc.(a).... 552
10 Flextronics International Ltd.(a)................. 141
4 International Business Machines Corp. ............ 313
74 McLeod USA, Inc. Class A(a)....................... 87
7 Microsoft Corp. .................................. 181
84 Time Warner, Inc.(a).............................. 1,284
19 Vishay Intertechnology, Inc.(a)................... 365
--------
3,667
--------
TRANSPORTATION -- 2.3%
24 AMR Corp.(a)...................................... 319
22 Continental Airlines, Inc. Class B (with
rights)(a)...................................... 424
24 ExpressJet Holdings, Inc.(a)...................... 359
--------
1,102
--------
UTILITIES -- 1.1%
23 TXU Corp. (with rights)........................... 527
--------
Total common stock
(cost $40,777).................................. $ 47,941
========
<Caption>
SHARES
- ---------
SHORT-TERM INVESTMENTS -- 4.4%
SECURITIES PURCHASED WITH PROCEEDS FROM SECURITIES
LENDING -- 3.4%
1,638 Boston Global Investment Trust.................... $ 1,638
--------
</Table>
The accompanying notes are an integral part of these financial statements.
145
THE HARTFORD VALUE OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PRINCIPAL MARKET
AMOUNT VALUE(C)
- --------- --------
FINANCE -- 1.0%
$ 73 ABN AMRO Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... $ 73
191 BNP Paribas Joint Repurchase Agreement,
1.00%, 11/03/03 (Note 2f)....................... 191
237 UBS Securities Joint Repurchase Agreement,
0.98%, 11/03/03 (Note 2f)....................... 237
--------
501
--------
Total short-term investments
(cost $2,139)................................... $ 2,139
========
Total investments in securities
(cost $42,916)(b)............................... $ 50,080
========
</Table>
(a) Presently non-income producing.
(b) At October 31, 2003, the cost of securities for federal income tax
purposes is $44,029 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<Table>
Unrealized appreciation......................... $ 7,220
Unrealized depreciation......................... (1,169)
-------
Net unrealized appreciation..................... $ 6,051
=======
</Table>
(c) See Note 2b of accompanying Notes of Financial Statements
regarding valuation of securities.
(d) Note: Percentage of investments as shown is the ratio of the total
market value to total net assets. Market value of investments in foreign
securities represents 11.49% of total net assets as of October 31, 2003.
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
AS OF OCTOBER 31, 2003
<Table>
<Caption>
UNREALIZED
CONTRACT DELIVERY APPRECIATION
DESCRIPTION MARKET VALUE AMOUNT DATE (DEPRECIATION)
- ----------- ------------ -------- -------- --------------
Australian Dollar
(Buy) $47 $47 11/3/2003 $@@
Australian Dollar
(Buy) 14 14 11/5/2003 @@
Australian Dollar
(Buy) 52 52 11/6/2003 @@
--
$@@
==
</Table>
<Table>
STATEMENT OF ASSETS AND LIABILITIES:
ASSETS
Investments in securities, at value; (cost
$42,916)@........................................ $ 50,080
Cash............................................... @@
Unrealized appreciation in forward foreign currency
contracts........................................ @@
Receivables:
Investment securities sold....................... 986
Fund shares sold................................. 280
Dividends and interest........................... 58
Other assets....................................... 82
--------
Total assets....................................... 51,486
--------
LIABILITIES
Payables:
Payable upon return of securities loaned (Note
2d)............................................ $ 1,638
Investment securities purchased.................. 1,063
Fund shares redeemed............................. 37
Payable for investment advisory and management
fees (Note 3).................................. 40
Payable for distribution fees (Note 3)........... 4
Accrued Expenses................................... 10
--------
Total liabilities.................................. 2,792
--------
Net assets......................................... $ 48,694
========
@ Market value of securities on loan $1,561
</Table>
<Table>
SUMMARY OF NET ASSETS:
Capital stock and paid-in-capital, par value $0.0001
per share; 21,000,000 shares authorized; 4,096
shares outstanding................................ $ 51,917
Accumulated undistributed net investment income..... (1)
Accumulated net realized loss on investments and
foreign currency transactions..................... (10,386)
Unrealized appreciation of investments in securities
and the translations of assets and liabilities
denominated in foreign currency................... 7,164
--------
Net assets.......................................... $ 48,694
========
</Table>
@@Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
<Table>
Class A
Net asset value per share ($5,917 / 487 shares
outstanding)...................................... $12.15
------
Maximum offering price per share ($12.15 / 94.5%)... $12.86
======
Class B
Net asset value per share ($1,932 / 168 shares
outstanding)...................................... $11.53
======
Class C
Net asset value per share ($1,613 / 140 shares
outstanding)........................................ $11.53
------
(Maximum offering price per share ($11.53 / 99.0%).... $11.65
======
Class H
Net asset value per share ($6,526 / 566 shares
outstanding)...................................... $11.54
======
Class L
Net asset value per share ($22,701 / 1,868 shares
outstanding)...................................... $12.15
------
Maximum offering price per share ($12.15 /
95.25%)........................................... $12.76
======
Class M
Net asset value per share ($8,015 / 695 shares
outstanding)...................................... $11.53
======
Class N
Net asset value per share ($1,989 / 172 shares
outstanding)...................................... $11.54
======
Class Y
Net asset value per share ($1 / @@ shares
outstanding)...................................... $12.22
======
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number or shares and/or dollars round to zero.
The accompanying notes are an integral part of these financial statements.
146
(This page intentionally left blank)
147
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD
THE HARTFORD CAPITAL
ADVISERS APPRECIATION
FUND FUND
------------ ------------
INVESTMENT INCOME:
Dividends................................................. $ 25,936 $ 42,405
Interest.................................................. 39,795 5,564
Securities lending........................................ 233 446
Less: Foreign tax withheld................................ (23) (1,093)
--------- ----------
Total investment income (loss), net..................... 65,941 47,322
--------- ----------
EXPENSES:
Investment management and advisory fees................... 14,956 24,733
Transfer agent fees....................................... 7,606 11,837
Distribution fees
Class A................................................. 4,208 5,892
Class B................................................. 5,697 9,495
Class C................................................. 4,167 7,980
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 33 605
Accounting services....................................... 465 730
Registration and filing fees.............................. 258 376
Board of Director's fees.................................. 24 37
Other expenses............................................ 1,792 2,600
--------- ----------
Total expenses (before reimbursements and waivers)...... 39,206 64,285
Expense reimbursements.................................... (52) (77)
Class A distribution fees waived.......................... (208) (285)
--------- ----------
Total reimbursements and waivers........................ (260) (362)
--------- ----------
Total expenses, net..................................... 38,946 63,923
--------- ----------
Net investment income (loss).............................. 26,995 (16,601)
--------- ----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... (122,548) (84,558)
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ -- (1,481)
--------- ----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS......................... (122,548) (86,039)
--------- ----------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 387,775 1,076,458
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... -- 940
--------- ----------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 387,775 1,077,398
--------- ----------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 265,227 991,359
--------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $ 292,222 $ 974,758
========= ==========
</Table>
(a) The number includes $24 of practical waiver of investment management and
advisory fees.
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
148
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
DISCIPLINED DIVIDEND EQUITY THE HARTFORD GLOBAL GLOBAL FINANCIAL GLOBAL
EQUITY AND GROWTH INCOME FOCUS COMMUNICATIONS SERVICES HEALTH
FUND FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ -------------- ---------------- ------------
$ 5,232 $ 32,347 $ 73 $ 1,495 $ 61 $ 455 $ 2,088
23 1,028 4 23 51 5 34
2 87 -- -- 4 10 60
-- (341) -- -- (3) (24) (66)
-------- -------- ---- -------- ------ ------ -------
5,257 33,121 77 1,518 113 446 2,116
-------- -------- ---- -------- ------ ------ -------
2,486 9,706 24 1,118 71 173 2,043
1,021 4,679 8 359 22 52 660
710 3,183 7 210 14 32 344
433 2,143 2 195 11 30 492
425 1,923 6 254 10 26 452
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
18 27 @@ 9 9 19 18
62 290 1 22 1 3 41
32 151 @@ 3 1 2 19
3 15 @@ 1 @@ @@ 2
261 949 3 91 11 20 149
-------- -------- ---- -------- ------ ------ -------
5,451 23,066 51 2,262 150 357 4,220
(311) (34) (24) (95) (19) (37) (174)
(37) (143) -- (11) (1) (2) (17)
-------- -------- ---- -------- ------ ------ -------
(348) (177) (24)(a) (106) (20) (39) (191)
-------- -------- ---- -------- ------ ------ -------
5,103 22,889 27 2,156 130 318 4,029
-------- -------- ---- -------- ------ ------ -------
154 10,232 50 (638) (17) 128 (1,913)
-------- -------- ---- -------- ------ ------ -------
(26,959) (46,900) 12 (14,697) (448) (495) 3,993
141 -- -- -- -- -- --
-- -- -- -- (6) 2 10
-------- -------- ---- -------- ------ ------ -------
(26,818) (46,900) 12 (14,697) (454) (493) 4,003
-------- -------- ---- -------- ------ ------ -------
81,279 290,474 646 37,235 3,198 3,897 40,506
-- -- -- -- -- -- --
-- -- -- -- (1) -- 2
-------- -------- ---- -------- ------ ------ -------
81,279 290,474 646 37,235 3,197 3,897 40,508
-------- -------- ---- -------- ------ ------ -------
54,461 243,574 658 22,538 2,743 3,404 44,511
-------- -------- ---- -------- ------ ------ -------
$ 54,615 $253,806 $708 $ 21,900 $2,726 $3,532 $42,598
======== ======== ==== ======== ====== ====== =======
</Table>
149
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
GLOBAL LEADERS GLOBAL TECHNOLOGY
FUND FUND
-------------- -----------------
INVESTMENT INCOME:
Dividends................................................. $ 7,275 $ 149
Interest.................................................. 159 20
Securities lending........................................ 256 7
Less: Foreign tax withheld................................ (464) (6)
-------- -------
Total investment income (loss), net..................... 7,226 170
-------- -------
EXPENSES:
Investment management and advisory fees................... 4,587 460
Transfer agent fees....................................... 1,757 143
Distribution fees
Class A................................................. 1,227 74
Class B................................................. 711 100
Class C................................................. 730 117
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 150 12
Accounting services....................................... 109 9
Registration and filing fees.............................. 61 2
Board of Director's fees.................................. 6 1
Other expenses............................................ 413 36
-------- -------
Total expenses (before reimbursements and waivers)...... 9,751 954
Expense reimbursements.................................... (7) (42)
Class A distribution fees waived.......................... (59) (3)
-------- -------
Total reimbursements and waivers........................ (66) (45)
-------- -------
Total expenses, net..................................... 9,685 909
-------- -------
Net investment income (loss).............................. (2,459) (739)
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 72,654 6,749
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ 88 --
-------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS......................... 72,742 6,749
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 52,479 15,472
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... 6 --
-------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 52,485 15,472
-------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 125,227 22,221
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $122,768 $21,482
======== =======
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
150
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD
THE HARTFORD GROWTH THE HARTFORD THE HARTFORD THE HARTFORD
GROWTH OPPORTUNITIES HIGH YIELD INCOME INFLATION
FUND FUND FUND FUND PLUS FUND
------------ ------------- ------------ ------------ ------------
$ 2,823 $ 2,801 $ 73 $ -- $ --
76 162 25,114 1,047 7,107
22 91 98 -- --
(20) (49) -- -- --
------- -------- -------- ------ ------
2,901 3,005 25,285 1,047 7,107
------- -------- -------- ------ ------
2,983 4,286 2,065 104 1,166
87 31 868 58 630
65 21 485 35 229
44 18 602 28 362
44 16 598 29 818
253 406 -- -- --
703 1,107 -- -- --
213 213 -- -- --
43 42 -- -- --
14 20 16 9 10
6 2 55 3 39
77 114 26 2 7
4 6 3 @@ 2
168 268 195 37 107
------- -------- -------- ------ ------
4,704 6,540 4,913 305 3,370
(22) (4) (192) (92) (598)
(1) (1) (19) -- --
------- -------- -------- ------ ------
(23) (5) (211) (92) (598)
------- -------- -------- ------ ------
4,681 6,535 4,702 213 2,772
------- -------- -------- ------ ------
(1,780) (3,530) 20,583 834 4,335
------- -------- -------- ------ ------
4,681 70,198 (27,734) (7) 1,187
-- -- -- -- --
-- @@ 1,726 7 --
------- -------- -------- ------ ------
4,681 70,198 (26,008) -- 1,187
------- -------- -------- ------ ------
90,071 119,332 68,154 657 3,709
-- -- -- -- --
-- -- 145 23 --
------- -------- -------- ------ ------
90,071 119,332 68,299 680 3,709
------- -------- -------- ------ ------
94,752 189,530 42,291 680 4,896
------- -------- -------- ------ ------
$92,972 $186,000 $ 62,874 $1,514 $9,231
======= ======== ======== ====== ======
</Table>
151
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
INTERNATIONAL CAPITAL INTERNATIONAL
APPRECIATION OPPORTUNITIES
FUND FUND
--------------------- -------------
INVESTMENT INCOME:
Dividends................................................. $ 127 $ 2,166
Interest.................................................. 7 40
Securities lending........................................ 4 69
Less: Foreign tax withheld................................ (17) (323)
------ -------
Total investment income (loss), net..................... 121 1,952
------ -------
EXPENSES:
Investment management and advisory fees................... 92 875
Transfer agent fees....................................... 29 326
Distribution fees
Class A................................................. 20 209
Class B................................................. 12 184
Class C................................................. 14 136
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Custodian fees............................................ 51 98
Accounting services....................................... 2 20
Registration and filing fees.............................. 1 15
Board of Director's fees.................................. @@ 1
Other expenses............................................ 12 99
------ -------
Total expenses (before reimbursements and waivers)...... 233 1,963
Expense reimbursements.................................... (63) (56)
Class A distribution fees waived.......................... (1) (11)
------ -------
Total reimbursements and waivers........................ (64) (67)
------ -------
Total expenses, net..................................... 169 1,896
------ -------
Net investment income (loss).............................. (48) 56
------ -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 2,072 (700)
Net realized gain (loss) on futures contracts............. -- --
Net realized gain (loss) on foreign currency
transactions............................................ 1 5
------ -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS......................... 2,073 (695)
------ -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 1,285 20,936
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... @@ (10)
------ -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 1,285 20,926
------ -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 3,358 20,231
------ -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $3,310 $20,287
====== =======
</Table>
(a) The number includes $474 of practical waiver of distribution fees for
Classes B and C. (See Note 3)
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
152
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
INTERNATIONAL THE HARTFORD THE HARTFORD THE HARTFORD SHORT
SMALL COMPANY MIDCAP MIDCAP VALUE MONEY MARKET DURATION
FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ ------------
$ 393 $ 14,301 $ 1,951 $ -- $ --
7 784 53 5,520 1,897
22 333 32 -- --
(42) (54) (51) -- --
------ -------- ------- ------- -------
380 15,364 1,985 5,520 1,897
------ -------- ------- ------- -------
167 13,001 1,532 2,066 255
35 5,432 567 1,416 147
24 3,067 350 883 62
13 3,285 314 880 64
15 3,545 374 448 193
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
95 46 11 7 8
3 343 36 83 9
1 120 25 39 3
@@ 18 2 4 @@
14 1,108 129 352 48
------ -------- ------- ------- -------
367 29,965 3,340 6,178 789
(99) (211) (226) (1,556)(a) (168)
(1) (126) (16) (48) --
------ -------- ------- ------- -------
(100) (337) (242) (1,604) (168)
------ -------- ------- ------- -------
267 29,628 3,098 4,574 621
------ -------- ------- ------- -------
113 (14,264) (1,113) 946 1,276
------ -------- ------- ------- -------
3,452 12,070 1,493 8 (221)
-- -- -- -- --
3 19 4 -- --
------ -------- ------- ------- -------
3,455 12,089 1,497 8 (221)
------ -------- ------- ------- -------
4,877 511,646 57,080 -- 312
-- -- -- -- --
-- @@ -- -- --
------ -------- ------- ------- -------
4,882 511,646 57,080 -- 312
------ -------- ------- ------- -------
8,337 523,735 58,577 8 91
------ -------- ------- ------- -------
$8,450 $509,471 $57,464 $ 954 $ 1,367
====== ======== ======= ======= =======
</Table>
153
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
SMALL SMALLCAP
COMPANY GROWTH
FUND FUND
------------ ------------
INVESTMENT INCOME:
Dividends................................................. $ 362 $ 705
Interest.................................................. 97 32
Securities lending........................................ 84 196
Less: Foreign tax withheld................................ -- --
------- -------
Total investment income (loss), net..................... 543 933
------- -------
EXPENSES:
Investment management and advisory fees................... 1,731 1,347
Transfer agent fees....................................... 646 32
Distribution fees
Class A................................................. 334 25
Class B................................................. 450 31
Class C................................................. 408 26
Class H................................................. -- 174
Class L................................................. -- 416
Class M................................................. -- 148
Class N................................................. -- 50
Custodian fees............................................ 29 18
Accounting services....................................... 41 3
Registration and filing fees.............................. 29 67
Board of Director's fees.................................. 2 1
Other expenses............................................ 158 69
------- -------
Total expenses (before reimbursements and waivers)...... 3,828 2,407
Expense reimbursements.................................... (307) (63)
Class A distribution fees waived.......................... (15) (1)
------- -------
Total reimbursements and waivers........................ (322) (64)
------- -------
Total expenses, net..................................... 3,506 2,343
------- -------
Net investment income (loss).............................. (2,963) (1,410)
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 26,133 (4,244)
Net realized gain (loss) on futures contracts............. -- 279
Net realized gain (loss) on foreign currency
transactions............................................ (1) --
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS......................... 26,132 (3,965)
------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 53,306 63,579
Net unrealized appreciation (depreciation) of futures
contracts............................................... -- 54
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... (3) --
------- -------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 53,303 63,633
------- -------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 79,435 59,668
------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $76,472 $58,258
======= =======
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
154
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD THE HARTFORD THE HARTFORD
THE HARTFORD TAX-FREE TAX-FREE TAX-FREE TAX-FREE
STOCK CALIFORNIA MINNESOTA NATIONAL NEW YORK
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
$ 27,046 $ -- $ -- $ -- $ --
231 578 1,840 3,743 455
9 -- -- -- --
(22) -- -- -- --
--------- ----- ------ ------ ----
27,264 578 1,840 3,743 455
--------- ----- ------ ------ ----
11,360 68 281 588 58
5,078 42 12 93 35
2,847 29 9 54 25
3,533 15 5 55 10
3,041 11 4 60 13
-- -- 3 26 --
-- -- 8 18 --
-- -- 5 15 --
-- -- 2 6 --
26 3 3 4 3
319 2 1 6 2
188 7 11 75 9
17 @@ 1 @@
1,226 35 27 46 34
--------- ----- ------ ------ ----
27,635 212 371 1,047 189
(72) (77) (21) (161) (72)
(145) -- @@ (2) --
--------- ----- ------ ------ ----
(217) (77) (21) (163) (72)
--------- ----- ------ ------ ----
27,418 135 350 884 117
--------- ----- ------ ------ ----
(154) 443 1,490 2,859 338
--------- ----- ------ ------ ----
(211,855) (80) 361 808 89
-- -- -- -- --
-- -- -- -- --
--------- ----- ------ ------ ----
(211,855) (80) 361 808 89
--------- ----- ------ ------ ----
472,384 (68) (193) (694) 74
-- -- -- -- --
-- -- -- -- --
--------- ----- ------ ------ ----
472,384 (68) (193) (694) 74
--------- ----- ------ ------ ----
260,529 (148) 168 114 163
--------- ----- ------ ------ ----
$ 260,375 $ 295 $1,658 $2,973 $501
========= ===== ====== ====== ====
</Table>
155
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
STATEMENT OF OPERATIONS -- (CONTINUED)
FOR THE PERIOD ENDED OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD
TOTAL RETURN
BOND
FUND
-------------
INVESTMENT INCOME:
Dividends................................................. $ 38
Interest.................................................. 22,847
Securities lending........................................ 193
Less: Foreign tax withheld................................ --
-------
Total investment income (loss), net..................... 23,078
-------
EXPENSES:
Investment management and advisory fees................... 3,438
Transfer agent fees....................................... 1,596
Distribution fees
Class A................................................. 808
Class B................................................. 1,094
Class C................................................. 1,176
Class H................................................. --
Class L................................................. --
Class M................................................. --
Class N................................................. --
Custodian fees............................................ 28
Accounting services....................................... 107
Registration and filing fees.............................. 64
Board of Director's fees.................................. 6
Other expenses............................................ 394
-------
Total expenses (before reimbursements and waivers)...... 8,711
Expense reimbursements.................................... (626)
Class A distribution fees waived.......................... (38)
-------
Total reimbursements and waivers........................ (664)
-------
Total expenses, net..................................... 8,047
-------
Net investment income (loss).............................. 15,031
-------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... 20,306
Net realized gain (loss) on futures options contracts..... (171)
Net realized gain (loss) on foreign currency
transactions............................................ 5,629
-------
NET REALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS
AND FOREIGN CURRENCY TRANSACTIONS......................... 25,764
-------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net unrealized appreciation (depreciation) of
investments............................................. 2,624
Net unrealized appreciation (depreciation) of futures
contracts............................................... --
Net unrealized appreciation (depreciation) on translation
of other assets and liabilities in foreign currencies... (625)
-------
NET CHANGES IN UNREALIZED APPRECIATION OR DEPRECIATION OF
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 1,999
-------
NET GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS............................. 27,763
-------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $42,794
=======
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
156
- --------------------------------------------------------------------------------
<Table>
<Caption>
THE HARTFORD THE HARTFORD
U.S. GOVERNMENT THE HARTFORD VALUE
SECURITIES VALUE OPPORTUNITIES
FUND FUND FUND
--------------- ------------ -------------
$ -- $ 1,181 $ 535
20,195 29 5
46 @@ 8
-- -- (16)
------- ------- -------
20,241 1,210 532
------- ------- -------
2,732 391 398
569 156 16
258 105 10
469 59 9
421 95 8
80 -- 58
118 -- 50
60 -- 70
16 -- 18
17 4 11
34 10 1
120 6 65
4 @@ @@
201 40 27
------- ------- -------
5,099 866 741
(431) (45) (49)
(13) (5) @@
------- ------- -------
(444) (50) (49)
------- ------- -------
4,655 816 692
------- ------- -------
15,586 394 (160)
------- ------- -------
(42) (3,212) (861)
-- -- --
-- -- @@
------- ------- -------
(42) (3,212) (861)
------- ------- -------
(7,693) 11,241 12,036
-- -- --
-- -- @@
------- ------- -------
(7,693) 11,241 12,036
------- ------- -------
(7,801) 8,029 11,175
------- ------- -------
$ 7,851 $ 8,423 $11,015
======= ======= =======
</Table>
157
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADVISERS FUND
-----------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------- ----------------
OPERATIONS:
Net investment income (loss).............................. $ 26,995 $ 30,190
Net realized gain (loss) on investments................... (122,548) (185,895)
Net unrealized appreciation (depreciation) of
investments............................................. 387,775 (138,097)
---------- ----------
Net increase (decrease) in net assets resulting from
operations.............................................. 292,222 (293,802)
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (18,988) (20,818)
Class B................................................. (4,119) (5,930)
Class C................................................. (3,387) (4,835)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (119) (377)
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
---------- ----------
Total distributions..................................... (26,613) (31,960)
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 71,427 183,664
Class B................................................. (39,062) (25,825)
Class C................................................. (47,453) (1,961)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 3,954 (54,198)
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- 149,372
Class B................................................. -- 58,085
Class C................................................. -- 10,535
---------- ----------
Net increase (decrease) from capital share transactions... (11,134) 319,672
---------- ----------
Net increase (decrease) in net assets..................... 254,475 (6,090)
NET ASSETS:
Beginning of period....................................... 2,239,801 2,245,891
---------- ----------
End of period............................................. $2,494,276 $2,239,801
========== ==========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ 1,671 $ 1,166
========== ==========
</Table>
* Included in these amounts were a return of capital in the amounts of $253,
12, 16 and 12 for Classes A, B, C and Y, respectively.
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
158
- --------------------------------------------------------------------------------
<Table>
<Caption>
CAPITAL APPRECIATION FUND DISCIPLINED EQUITY FUND DIVIDEND AND GROWTH FUND
----------------------------------- ----------------------------------- -----------------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002 OCTOBER 31, 2003 OCTOBER 31, 2002
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ (16,601) $ (22,852) $ 154 $ (1,067) $ 10,232 $ 6,236
(86,039) (611,050) (26,818) (67,844) (46,900) (10,830)
1,077,398 (63,577) 81,279 (11,848) 290,474 (155,094)
---------- ---------- -------- -------- ---------- ----------
974,758 (697,479) 54,615 (80,759) 253,806 (159,688)
---------- ---------- -------- -------- ---------- ----------
-- -- -- -- (9,066)* (5,490)
-- -- -- -- (435)* (223)
-- -- -- -- (586)* (247)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- (434)* (216)
-- -- -- -- -- --
-- -- -- -- -- (8,340)
-- -- -- -- -- (2,411)
-- -- -- -- -- (1,890)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- (412)
-- -- -- -- -- --
---------- ---------- -------- -------- ---------- ----------
-- -- -- -- (10,521) (19,229)
---------- ---------- -------- -------- ---------- ----------
149,541 464,355 (26,437) 27,213 317,247 410,049
7,721 196,362 (3,043) (635) 36,875 64,289
32,787 235,783 (5,146) (6,177) 34,556 73,195
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
13,194 (54,635) (166) 364 21,916 (10,771)
-- -- -- -- -- --
-- -- -- 20,626 -- --
-- -- -- 12,446 -- --
-- -- -- 1,856 -- --
---------- ---------- -------- -------- ---------- ----------
203,243 841,865 (34,792) 55,693 410,594 536,762
---------- ---------- -------- -------- ---------- ----------
1,178,001 144,386 19,823 (25,066) 653,879 357,845
3,349,684 3,205,298 318,691 343,757 1,173,414 815,569
---------- ---------- -------- -------- ---------- ----------
$4,527,685 $3,349,684 $338,514 $318,691 $1,827,293 $1,173,414
========== ========== ======== ======== ========== ==========
$ 58 $ 897 $ 154 $ -- $ -- $ 9
========== ========== ======== ======== ========== ==========
<Caption>
EQUITY INCOME FUND
------------------------
FOR THE PERIOD
AUGUST 28, 2003 THROUGH
OCTOBER 31, 2003
------------------------
$ 50
12
646
-------
708
-------
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-------
--
-------
26,127
2,376
7,502
--
--
--
--
--
100
--
--
--
--
-------
36,105
-------
36,813
--
-------
$36,813
=======
$ 57
=======
</Table>
159
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOCUS FUND
-------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
OPERATIONS:
Net investment income (loss).............................. $ (638) $ (1,063)
Net realized gain (loss) on investments................... (14,697) (15,707)
Net unrealized appreciation (depreciation) of
investments............................................. 37,235 (12,682)
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 21,900 (29,452)
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
-------- --------
Total distributions..................................... -- --
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. (9,612) 16,800
Class B................................................. (1,556) 5,397
Class C................................................. (3,523) 8,635
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 78 625
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... (14,613) 31,457
-------- --------
Net increase (decrease) in net assets..................... 7,287 2,005
NET ASSETS:
Beginning of period....................................... 111,650 109,645
-------- --------
End of period............................................. $118,937 $111,650
======== ========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ -- $ --
======== ========
</Table>
The accompanying notes are an integral part of these financial statements.
160
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL COMMUNICATIONS FUND GLOBAL FINANCIAL SERVICES FUND GLOBAL HEALTH FUND GLOBAL LEADERS FUND
--------------------------- ------------------------------- ------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002 2003 2002
------------ ------------ -------------- -------------- ----------- ----------- ----------- -----------
$ (17) $ (15) $ 128 $ 55 $ (1,913) $ (2,203) $ (2,459) $ 45
(454) (3,536) (493) (1,557) 4,003 5,178 72,742 (84,577)
3,197 1,451 3,897 (1,487) 40,508 (39,989) 52,485 19,055
------- ------- ------- ------- -------- -------- -------- --------
2,726 (2,100) 3,532 (2,989) 42,598 (37,014) 122,768 (65,477)
------- ------- ------- ------- -------- -------- -------- --------
-- -- (45) -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- (13) -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- (2,668) (2,088) -- --
-- -- -- -- (1,215) (898) -- --
-- -- -- -- (1,151) (945) -- --
-- -- -- -- (23) -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- (92) -- --
-- -- -- -- -- -- -- --
------- ------- ------- ------- -------- -------- -------- --------
-- -- (58) -- (5,057) (4,023) -- --
------- ------- ------- ------- -------- -------- -------- --------
1,163 786 827 1,494 4,398 24,768 21,429 65,748
304 312 323 1,225 1,797 12,754 (6,606) (5,497)
222 190 151 1,001 488 8,274 (12,415) (19,349)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
19 164 (142) 754 22 (3,491) 9,675 (1,951)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- 81,253
-- -- -- -- -- -- -- 26,325
-- -- -- -- -- -- -- 3,427
------- ------- ------- ------- -------- -------- -------- --------
1,708 1,452 1,159 4,474 6,705 42,305 12,083 149,956
------- ------- ------- ------- -------- -------- -------- --------
4,434 (648) 4,633 1,485 44,246 1,268 134,851 84,479
5,569 6,217 16,477 14,992 191,463 190,195 506,028 421,549
------- ------- ------- ------- -------- -------- -------- --------
$10,003 $ 5,569 $21,110 $16,477 $235,709 $191,463 $640,879 $506,028
======= ======= ======= ======= ======== ======== ======== ========
$ -- $ -- $ 130 $ 58 $ -- $ -- $ (32) $ --
======= ======= ======= ======= ======== ======== ======== ========
</Table>
161
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GLOBAL TECHNOLOGY FUND
-------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
OPERATIONS:
Net investment income (loss).............................. $ (739) $ (931)
Net realized gain (loss) on investments................... 6,749 (27,264)
Net unrealized appreciation (depreciation) of
investments............................................. 15,472 14,476
------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 21,482 (13,719)
------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
------- --------
Total distributions..................................... -- --
------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 3,006 948
Class B................................................. 1,130 398
Class C................................................. 1,510 (1,969)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 87 (5,064)
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
------- --------
Net increase (decrease) from capital share transactions... 5,733 (5,687)
------- --------
Net increase (decrease) in net assets..................... 27,215 (19,406)
NET ASSETS:
Beginning of period....................................... 36,563 55,969
------- --------
End of period............................................. $63,778 $ 36,563
======= ========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ -- $ --
======= ========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
162
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH FUND GROWTH OPPORTUNITIES FUND HIGH YIELD FUND INCOME FUND
------------------------- ------------------------- ------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR YEAR ONE-DAY
ENDED ENDED ENDED ENDED ENDED ENDED ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002 2003 2002
----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------
$ (1,780) $ (1,674) $ (3,530) $ (5,097) $ 20,583 $ 14,960 $ 834 $ --
4,681 (82,179) 70,198 (131,326) (26,008) (11,937) -- --
90,071 13,761 119,332 17,612 68,299 (27,352) 680 --
-------- --------- -------- --------- -------- -------- ------- -------
92,972 (70,092) 186,000 (118,811) 62,874 (24,329) 1,514 --
-------- --------- -------- --------- -------- -------- ------- -------
-- -- -- -- (13,219) (8,394) (600) --
-- -- -- -- (4,711) (3,559) (126) --
-- -- -- -- (4,648) (3,513) (131) --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- @@ (75) -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- (13) -- (654) -- -- -- --
-- (122) -- (6,438) -- -- -- --
-- (10) -- (326) -- -- -- --
-- (2) -- (73) -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- (1,001) -- -- -- --
-------- --------- -------- --------- -------- -------- ------- -------
-- (147) -- (8,492) (22,578) (15,541) (857) --
-------- --------- -------- --------- -------- -------- ------- -------
59,287 6,608 11,239 4,143 95,014 29,591 7,349 8,000
8,512 1,826 3,007 972 18,863 5,199 3,615 1,000
9,068 1,609 3,723 1,016 28,735 19,445 3,970 1,000
-- -- -- -- -- -- -- --
(5,061) (5,746) (7,338) (4,533) -- -- -- --
(29,332) (53,347) (45,091) (72,239) -- -- -- --
(3,081) (1,925) (2,817) (1,207) -- -- -- --
(877) (1,527) (780) (840) -- -- -- --
-- 1 -- 1 @@ (4,252) -- --
-- -- (4,243) (68,131) -- -- -- --
-- -- -- -- -- 41,430 -- --
-- -- -- -- -- 31,948 -- --
-- -- -- -- -- 2,737 -- --
-------- --------- -------- --------- -------- -------- ------- -------
38,516 (52,501) (42,300) (140,818) 142,612 126,098 14,934 10,000
-------- --------- -------- --------- -------- -------- ------- -------
131,488 (122,740) 143,700 (268,121) 182,908 86,228 15,591 10,000
335,652 458,392 507,790 775,911 180,731 94,503 10,000 --
-------- --------- -------- --------- -------- -------- ------- -------
$467,140 $ 335,652 $651,490 $ 507,790 $363,639 $180,731 $25,591 $10,000
======== ========= ======== ========= ======== ======== ======= =======
$ -- $ -- $ (1) $ (6) $ (521) $ (304) $ 30 $ --
======== ========= ======== ========= ======== ======== ======= =======
</Table>
163
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INFLATION PLUS FUND
--------------------------------
FOR THE FOR THE
YEAR ONE-DAY
ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- ------------
OPERATIONS:
Net investment income (loss).............................. $ 4,335 $ --
Net realized gain (loss) on investments................... 1,187 --
Net unrealized appreciation (depreciation) of
investments............................................. 3,709 --
-------- -------
Net increase (decrease) in net assets resulting from
operations.............................................. 9,231 --
-------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (1,950) --
Class B................................................. (653) --
Class C................................................. (1,491) --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
-------- -------
Total distributions..................................... (4,094) --
-------- -------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 132,787 8,002
Class B................................................. 66,087 1,000
Class C................................................. 157,218 1,000
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
-------- -------
Net increase (decrease) from capital share transactions... 356,092 10,002
-------- -------
Net increase (decrease) in net assets..................... 361,229 10,002
NET ASSETS:
Beginning of period....................................... 10,002 --
-------- -------
End of period............................................. $371,231 $10,002
======== =======
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ 283 $ --
======== =======
</Table>
The accompanying notes are an integral part of these financial statements.
164
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL CAPITAL INTERNATIONAL OPPORTUNITIES INTERNATIONAL SMALL COMPANY
APPRECIATION FUND FUND FUND MIDCAP FUND
------------------------- --------------------------- --------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002 2003 2002
----------- ----------- ------------ ------------ ------------ ------------ ----------- -----------
$ (48) $ 11 $ 56 $ 15 $ 113 $ 19 $ (14,264) $ (12,183)
2,073 (1,123) (695) (18,376) 3,455 (483) 12,089 (34,442)
1,285 335 20,926 8,201 4,882 (323) 511,646 (43,737)
------- ------- -------- -------- ------- ------ ---------- ----------
3,310 (777) 20,287 (10,160) 8,450 (787) 509,471 (90,362)
------- ------- -------- -------- ------- ------ ---------- ----------
(5) -- -- -- (10) -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
(1) -- -- -- (7) -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- -------- -------- ------- ------ ---------- ----------
(6) -- -- -- (17) -- -- --
------- ------- -------- -------- ------- ------ ---------- ----------
4,449 2,614 (10,923) (12,728) 4,140 2,951 413,840 141,807
908 621 (1,535) (2,578) 697 774 63,698 22,055
911 605 (1,298) (4,144) 1,424 527 99,708 10,259
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
1 -- 505 (12,860) 20,669 766 39,638 (27,164)
-- -- -- -- -- -- -- --
-- -- -- 12,538 -- -- -- --
-- -- -- 5,906 -- -- -- --
-- -- -- 711 -- -- -- --
------- ------- -------- -------- ------- ------ ---------- ----------
6,269 3,840 (13,251) (13,155) 26,930 5,018 616,884 146,957
------- ------- -------- -------- ------- ------ ---------- ----------
9,573 3,063 7,036 (23,315) 35,363 4,231 1,126,355 56,595
6,514 3,451 103,424 126,739 7,352 3,121 1,273,512 1,216,917
------- ------- -------- -------- ------- ------ ---------- ----------
$16,087 $ 6,514 $110,460 $103,424 $42,715 $7,352 $2,399,867 $1,273,512
======= ======= ======== ======== ======= ====== ========== ==========
$ 1 $ 6 $ 68 $ -- $ 117 $ 18 $ (4) $ --
======= ======= ======== ======== ======= ====== ========== ==========
</Table>
165
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MIDCAP VALUE FUND
-------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
OPERATIONS:
Net investment income (loss).............................. $ (1,113) $ (625)
Net realized gain (loss) on investments................... 1,497 (1,808)
Net unrealized appreciation (depreciation) of
investments............................................. 57,080 (22,577)
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 57,464 (25,010)
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
-------- --------
Total distributions..................................... -- --
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 25,155 83,020
Class B................................................. 6,035 23,725
Class C................................................. 5,627 28,679
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (279) --
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... 36,538 135,424
-------- --------
Net increase (decrease) in net assets..................... 94,002 110,414
NET ASSETS:
Beginning of period....................................... 153,614 43,200
-------- --------
End of period............................................. $247,616 $153,614
======== ========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ (1) $ --
======== ========
</Table>
The accompanying notes are an integral part of these financial statements.
166
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND SHORT DURATION FUND SMALL COMPANY FUND SMALLCAP GROWTH FUND
------------------------- -------------------------- ------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR ONE-DAY YEAR YEAR YEAR YEAR
ENDED ENDED ENDED PERIOD ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002 2003 2002
----------- ----------- ----------- ------------ ----------- ----------- ----------- -----------
$ 946 $ 2,942 $ 1,276 $ -- $ (2,963) $ (3,038) $ (1,410) $ (2,034)
8 -- (221) -- 26,132 (28,649) (3,965) (6,787)
-- -- 312 -- 53,303 (9,099) 63,633 (17,373)
--------- -------- ------- ------- -------- -------- -------- --------
954 2,942 1,367 -- 76,472 (40,786) 58,258 (26,194)
--------- -------- ------- ------- -------- -------- -------- --------
(929) (2,373) (646) -- -- -- -- --
(5) (225) (160) -- -- -- -- --
(3) (217) (477) -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
(17) (127) -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- (418)
-- -- -- -- -- -- -- (2,073)
-- -- -- -- -- -- -- (335)
-- -- -- -- -- -- -- (118)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
--------- -------- ------- ------- -------- -------- -------- --------
(954) (2,942) (1,283) -- -- -- -- (2,944)
--------- -------- ------- ------- -------- -------- -------- --------
(56,663) 22,036 24,661 8,002 4,590 1,791 10,372 4,351
(31,316) 44,803 9,191 1,000 (24) 1,843 3,446 2,107
(35,939) 11,397 29,681 1,000 (1,922) (2,682) 2,486 1,754
-- -- -- -- -- -- -- --
-- -- -- -- -- -- (2,779) (2,423)
-- -- -- -- -- -- (11,123) (15,851)
-- -- -- -- -- -- (1,596) (1,079)
-- -- -- -- -- -- (588) (626)
(1,653) (30,494) -- -- (534) (23,496) -- 1
-- -- -- -- -- -- -- --
-- 194,078 -- -- -- -- -- --
-- 5,247 -- -- -- -- -- --
-- 624 -- -- -- -- -- --
--------- -------- ------- ------- -------- -------- -------- --------
(125,571) 247,691 63,533 10,002 2,110 (22,544) 218 (11,766)
--------- -------- ------- ------- -------- -------- -------- --------
(125,571) 247,691 63,617 10,002 78,582 (63,330) 58,476 (40,904)
470,619 222,928 10,002 -- 187,513 250,843 128,206 169,110
--------- -------- ------- ------- -------- -------- -------- --------
$ 345,048 $470,619 $73,619 $10,002 $266,095 $187,513 $186,682 $128,206
========= ======== ======= ======= ======== ======== ======== ========
$ -- $ -- $ 28 $ -- $ -- $ -- $ -- $ --
========= ======== ======= ======= ======== ======== ======== ========
</Table>
167
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STOCK FUND
-------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
OPERATIONS:
Net investment income (loss).............................. $ (154) $ (5,809)
Net realized gain (loss) on investments................... (211,855) (250,183)
Net unrealized appreciation (depreciation) of
investments............................................. 472,384 (152,541)
---------- ----------
Net increase (decrease) in net assets resulting from
operations.............................................. 260,375 (408,533)
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. -- --
Class Z................................................. -- --
---------- ----------
Total distributions..................................... -- --
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. (54,575) 72,759
Class B................................................. (31,128) (24,517)
Class C................................................. (49,483) (32,747)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 3,637 13,254
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
---------- ----------
Net increase (decrease) from capital share transactions... (131,549) 28,749
---------- ----------
Net increase (decrease) in net assets..................... 128,826 (379,784)
NET ASSETS:
Beginning of period....................................... 1,579,042 1,958,826
---------- ----------
End of period............................................. $1,707,868 $1,579,042
========== ==========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ -- $ --
========== ==========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
168
- --------------------------------------------------------------------------------
<Table>
<Caption>
TAX-FREE CALIFORNIA FUND TAX-FREE MINNESOTA FUND TAX-FREE NATIONAL FUND TAX-FREE NEW YORK FUND
-------------------------- ------------------------- ------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ONE-DAY YEAR YEAR YEAR YEAR YEAR ONE-DAY
ENDED PERIOD ENDED ENDED ENDED ENDED ENDED ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002 2003 2002
----------- ------------ ----------- ----------- ----------- ----------- ----------- ------------
$ 443 $ -- $ 1,490 $ 1,386 $ 2,859 $ 2,079 $ 338 $ --
(80) -- 361 687 808 1,606 89 --
(68) -- (193) (490) (694) (987) 74 --
------- ------- ------- ------- ------- ------- ------- -------
295 -- 1,658 1,583 2,973 2,698 501 --
------- ------- ------- ------- ------- ------- ------- -------
(367) -- (105) (19) (656) (116) (286) --
(48) -- (16) (2) (170) (29) (28) --
(35) -- (11) (1) (185) (25) (35) --
-- -- (1,234) (1,167) (1,434) (1,450) -- --
-- -- (9) (23) (77) (99) -- --
-- -- (117) (118) (279) (259) -- --
-- -- (16) (16) (44) (47) -- --
-- -- (6) (6) (19) (17) -- --
-- -- @@ -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- (11) -- (282) -- -- --
-- -- (1) -- (85) -- -- --
-- -- (2) -- (72) -- -- --
-- -- (158) -- (886) (167) -- --
-- -- (2) -- (65) (18) -- --
-- -- (17) -- (166) (32) -- --
-- -- (3) -- (35) (7) -- --
-- -- (1) -- (13) (2) -- --
-- -- @@ -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
(450) -- (1,709) (1,352) (4,468) (2,268) (349) --
------- ------- ------- ------- ------- ------- ------- -------
2,917 8,000 1,190 2,075 9,628 12,110 480 8,000
852 1,000 297 238 2,940 3,750 36 1,000
242 1,000 112 305 4,570 3,110 378 1,000
-- -- (1,608) (1,325) (4,737) (3,291) -- --
-- -- (427) (517) (1,094) (1,768) -- --
-- -- (415) (224) 234 (713) -- --
-- -- (107) (212) (287) (188) -- --
-- -- 9 (1) 18 56 -- --
-- -- @@ 1 -- 1 -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
4,011 10,000 (949) 340 11,272 13,067 894 10,000
------- ------- ------- ------- ------- ------- ------- -------
3,856 10,000 (1,000) 571 9,777 13,497 1,046 10,000
10,000 -- 38,716 38,145 70,908 57,411 10,000 --
------- ------- ------- ------- ------- ------- ------- -------
$13,856 $10,000 $37,716 $38,716 $80,685 $70,908 $11,046 $10,000
======= ======= ======= ======= ======= ======= ======= =======
$ 30 $ -- $ 10 $ 34 $ 32 $ 37 $ 27 $ --
======= ======= ======= ======= ======= ======= ======= =======
</Table>
169
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (CONTINUED)
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOTAL RETURN BOND FUND
-------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
OPERATIONS:
Net investment income (loss).............................. $ 15,031 $ 14,973
Net realized gain (loss) on investments................... 25,764 5,803
Net unrealized appreciation (depreciation) of
investments............................................. 1,999 (4,166)
-------- --------
Net increase (decrease) in net assets resulting from
operations.............................................. 42,794 16,610
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................. (11,495) (7,842)
Class B................................................. (4,147) (3,073)
Class C................................................. (4,443) (3,440)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (2,523) (1,791)
Class Z................................................. -- --
From net realized gain on investments
Class A................................................. (2,184) (732)
Class B................................................. (983) (343)
Class C................................................. (1,069) (377)
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. (393) (263)
Class Z................................................. -- --
-------- --------
Total distributions..................................... (27,237) (17,861)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Class A................................................. 46,299 92,879
Class B................................................. 4,755 42,260
Class C................................................. (859) 45,451
Class E................................................. -- --
Class H................................................. -- --
Class L................................................. -- --
Class M................................................. -- --
Class N................................................. -- --
Class Y................................................. 18,951 (3,250)
Class Z................................................. -- --
Issuance of shares in connection with fund merger (Note
10)
Class A................................................. -- --
Class B................................................. -- --
Class C................................................. -- --
-------- --------
Net increase (decrease) from capital share transactions... 69,146 177,340
-------- --------
Net increase (decrease) in net assets..................... 84,703 176,089
NET ASSETS:
Beginning of period....................................... 460,368 284,279
-------- --------
End of period............................................. $545,071 $460,368
======== ========
Accumulated undistributed (distribution in excess of) net
investment income......................................... $ 219 $ 555
======== ========
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
rounds to zero.
The accompanying notes are an integral part of these financial statements.
170
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT SECURITIES FUND VALUE FUND VALUE OPPORTUNITIES FUND
------------------------------- ------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002 2003 2002
-------------- -------------- ----------- ----------- ----------- -----------
$ 15,586 $ 11,065 $ 394 $ 194 $ (160) $ (181)
(42) 12,535 (3,212) (4,159) (861) (7,257)
(7,693) (6,917) 11,241 (6,448) 12,036 (1,174)
-------- -------- ------- -------- ------- -------
7,851 16,683 8,423 (10,413) 11,015 (8,612)
-------- -------- ------- -------- ------- -------
(3,401) (660) (236) -- -- --
(1,645) (272) -- -- -- --
(1,473) (289) -- -- -- --
(6,861) (6,920) -- -- -- --
(285) (331) -- -- -- --
(2,045) (2,041) -- -- -- --
(213) (218) -- -- -- --
(58) (65) -- -- -- --
@@ @@ (3) -- -- --
-- -- -- -- -- --
-- -- -- (79) -- --
-- -- -- (12) -- --
-- -- -- (27) -- --
-- -- -- -- -- --
-- -- -- -- -- (556)
-- -- -- -- -- (1,884)
-- -- -- -- -- (583)
-- -- -- -- -- (184)
-- -- -- (1) -- --
-- -- -- -- -- --
-------- -------- ------- -------- ------- -------
(15,981) (10,796) (239) (119) -- (3,207)
-------- -------- ------- -------- ------- -------
(8,185) 74,121 6,481 23,394 2,347 3,054
104 38,705 1,084 4,471 1,168 557
(13,021) 40,119 (431) 6,440 960 496
(17,167) (33,953) -- -- -- --
(2,903) (1,617) -- -- (678) (425)
(4,907) (4,483) -- -- (2,566) (1,773)
(1,961) (55) -- -- (575) 226
(300) (584) -- -- (225) (301)
@@ 1 (226) 2 -- 1
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-------- -------- ------- -------- ------- -------
(48,340) 112,254 6,908 34,307 431 1,835
-------- -------- ------- -------- ------- -------
(56,470) 118,141 15,092 23,775 11,446 (9,984)
378,059 259,918 44,572 20,797 37,248 47,232
-------- -------- ------- -------- ------- -------
$321,589 $378,059 $59,664 $ 44,572 $48,694 $37,248
======== ======== ======= ======== ======= =======
$ 1 $ 42 $ 349 $ 194 $ (1) $ --
======== ======== ======= ======== ======= =======
</Table>
171
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
1. ORGANIZATION: The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds
II, Inc. (the Companies) are open-end management investment companies
comprised of thirty-four portfolios (each a "Fund" or together the "Funds").
They are The Hartford Advisers Fund, The Hartford Capital Appreciation Fund,
The Hartford Disciplined Equity Fund, The Hartford Dividend and Growth Fund,
The Hartford Equity Income Fund, The Hartford Focus Fund, The Hartford
Global Communications Fund, The Hartford Global Financial Services Fund, The
Hartford Global Health Fund, The Hartford Global Leaders Fund, The Hartford
Global Technology Fund, The Hartford Growth Fund, The Hartford Growth
Opportunities Fund, The Hartford High Yield Fund, The Hartford Income Fund,
The Hartford Inflation Plus Fund, The Hartford International Capital
Appreciation Fund, The Hartford International Opportunities Fund, The
Hartford International Small Company Fund, The Hartford MidCap Fund, The
Hartford MidCap Value Fund, The Hartford Money Market Fund, The Hartford
Short Duration Fund, The Hartford Small Company Fund, The Hartford SmallCap
Growth Fund, The Hartford Stock Fund, The Hartford Tax-Free California Fund,
The Hartford Tax-Free Minnesota Fund, The Hartford Tax-Free National Fund,
The Hartford Tax-Free New York Fund, The Hartford Total Return Bond Fund,
The Hartford U.S. Government Securities Fund, The Hartford Value Fund and
The Hartford Value Opportunities Fund. The Companies are organized under the
laws of the State of Maryland and are registered with the Securities and
Exchange Commission (SEC) under the Investment Company Act of 1940, as
amended, as diversified open-end management investment companies, except for
The Hartford Focus Fund, The Hartford Global Communications Fund, The
Hartford Global Financial Services Fund, The Hartford Global Health Fund,
The Hartford Global Technology Fund, The Hartford Inflation Plus Fund, The
Hartford Tax-Free California Fund and The Hartford Tax-Free New York Fund
which are non-diversified.
The Funds, their classes and investment objectives are listed below:
<Table>
The Hartford Advisers Fund (Advisers Fund) Seeks maximum long-term total return.
Classes A, B, C and Y
The Hartford Capital Appreciation Fund Seeks growth of capital.
(Capital Appreciation Fund)
Classes A, B, C and Y
The Hartford Disciplined Equity Fund Seeks growth of capital and current income.
(Disciplined Equity)
Classes A, B, C and Y
The Hartford Dividend and Growth Fund Seeks a high level of current income consistent with growth
(Dividend and Growth Fund) of capital.
Classes A, B, C and Y
The Hartford Equity Income Fund Seeks a high level of current income consistent with growth
(Equity Income) of capital.
Classes A, B, C and Y
The Hartford Focus Fund (Focus Fund) Seeks long-term capital appreciation.
Classes A, B, C and Y
The Hartford Global Communications Fund Seeks long-term capital appreciation.
(Global Communications Fund)
Classes A, B, C and Y
The Hartford Global Financial Services Fund Seeks long-term capital appreciation.
(Global Financial Services Fund)
Classes A, B, C and Y
The Hartford Global Health Fund Seeks long-term capital appreciation.
(Global Health Fund)
Classes A, B, C and Y
The Hartford Global Leaders Fund Seeks growth of capital.
(Global Leaders Fund)
Classes A, B, C and Y
The Hartford Global Technology Fund Seeks long-term capital appreciation.
(Global Technology Fund)
Classes A, B, C and Y
The Hartford Growth Fund (Growth Fund) Seeks long-term capital appreciation.
Classes A, B, C, H, L, M, N and Y
The Hartford Growth Opportunities Fund Seeks short- and long-term capital appreciation.
(Growth Opportunities Fund)
Classes A, B, C, H, L, M, N, Y and Z
The Hartford High Yield Fund Seeks high current income. Growth of capital is a secondary
(High Yield Fund) objective.
Classes A, B, C and Y
</Table>
172
- --------------------------------------------------------------------------------
<Table>
The Hartford Income Fund (Income Fund) Seeks to provide a high level of current income. Capital
Classes A, B and C appreciation is a secondary objective.
The Hartford Inflation Plus Fund Seeks a total return that exceeds the rate of inflation over
(Inflation Plus Fund) an economic cycle.
Classes A, B and C
The Hartford International Capital Appreciation Fund Seeks capital appreciation.
(International Capital Appreciation Fund)
Classes A, B, C and Y
The Hartford International Opportunities Seeks growth of capital.
Fund (International Opportunities Fund)
Classes A, B, C and Y
The Hartford International Small Company Fund Seeks capital appreciation.
(International Small Company Fund)
Classes A, B, C and Y
The Hartford MidCap Fund Seeks long-term growth of capital.
(MidCap Fund)
Classes A, B, C and Y
The Hartford MidCap Value Fund Seeks long-term capital appreciation.
(MidCap Value Fund)
Classes A, B, C and Y
The Hartford Money Market Fund Seeks maximum current income consistent with liquidity and
(Money Market Fund) preservation of capital.
Classes A, B, C and Y
The Hartford Short Duration Fund Seeks to provide a high level of income.
(Short Duration Fund)
Classes A, B and C
The Hartford Small Company Fund Seeks growth of capital.
(Small Company Fund)
Classes A, B, C and Y
The Hartford SmallCap Growth Fund Seeks to maximize short- and long-term capital appreciation.
(SmallCap Growth Fund)
Classes A, B, C, H, L, M, N and Y
The Hartford Stock Fund Seeks long-term growth of capital, with income as a
(Stock Fund) secondary consideration.
Classes A, B, C and Y
The Hartford Tax-Free California Fund Seeks to provide current income exempt from both federal and
(Tax-Free California Fund) California income tax.
Classes A, B and C
The Hartford Tax-Free Minnesota Fund Seeks to provide current income exempt from both federal
(Tax-Free Minnesota Fund) income tax and Minnesota state personal income tax.
Classes A, B, C, E, H, L, M, N and Y
The Hartford Tax-Free National Fund Seeks to provide current income exempt from federal income
(Tax-Free National Fund) tax.
Classes A, B, C, E, H, L, M, N and Y
The Hartford Tax-Free New York Fund Seeks to provide current income exempt from federal, New
(Tax-Free New York Fund) York State and New York City income tax.
Classes A, B and C
The Hartford Total Return Bond Fund Seeks a competitive total return, with income as a secondary
(Total Return Bond Fund) objective.
Classes A, B, C and Y
The Hartford U.S. Government Securities Fund Seeks to provide current income while maintaining
(U.S. Government Securities Fund) preservation of capital consistent with prudent investment
Classes A, B, C, E, H, L, M, N and Y risk.
The Hartford Value Fund Seeks long-term total return.
(Value Fund)
Classes A, B, C and Y
The Hartford Value Opportunities Fund Seeks short- and long-term capital appreciation.
(Value Opportunities Fund)
Classes A, B, C, H, L, M, N and Y
</Table>
173
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
Effective October 30, 2002, the name of The Hartford Bond Income Strategy
Fund was changed to The Hartford Total Return Bond Fund and effective August
1, 2003, the name of The Hartford Growth and Income Fund was changed to The
Hartford Disciplined Equity Fund.
Class A shares are sold with a front-end sales charge of up to 5.50%. Class
B shares are sold with a contingent deferred sales charge which is assessed
on the lesser of the net asset value of the shares at the time of redemption
or the original purchase price, and declines from up to 5.00% to zero
depending on the period of time the shares are held. Class C shares are sold
with a front-end sales charge of up to 1% and a contingent deferred sales
charge of up to 1%. Class E is sold with a front-end sales charge of 4.50%.
Classes H and M are sold with a contingent deferred sales charge, which is
assessed on the lesser of the net asset value of the shares at the time of
redemption or the original purchase price, and declines from 4.00% to zero
depending on the period of time the shares are held. Class L is sold with a
sales charge up to 4.75%. Class N is sold with a contingent deferred sales
charge of 1.00% if redeemed within 1 year. Class Y shares are sold to
certain eligible institutional investors without a sales charge. Class Z is
sold without sales charges. All classes of shares have identical voting,
redemption, dividend, liquidation and other rights and the same terms and
conditions, except that each class may have different expenses, which may
affect performance, and except that Class B shares automatically convert to
Class A shares after 8 years. Classes H and N shares will automatically
convert to Class L after 8 years.
2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant
accounting policies of the Funds, which are in accordance with generally
accepted accounting principles in the investment company industry:
A) SECURITY TRANSACTIONS -- Security transactions are recorded on the trade
date (date the order to buy or sell is executed). Security gains and losses
are determined on the basis of identified cost.
B) SECURITY VALUATION AND INVESTMENT INCOME -- Equity securities are valued
at the last sales price reported on the principal securities exchange on
which such securities are traded (domestic or foreign) or on the principal
over-the-counter market on which such securities are traded, as of the close
of business on the day the securities are being valued. If no sale took
place on a particular day, then such securities are valued at the mean
between the bid and asked prices. For securities traded on the NASDAQ
national market system, the Funds utilize the NASDAQ Official Closing Price
which compares the last trade to the bid/ask range of a security. If the
last trade falls within the bid/ask range, then that price will be the
closing price. If the last trade is outside the bid/ask range, and falls
above the ask, the ask will be the closing price. If the last price is below
the bid, the bid will be the closing price. The difference between cost and
market value for debt and equity securities is recorded in the Statement of
Operations and accumulated in net assets.
Debt securities (other than short-term obligations) are valued on the basis
of valuations furnished by an unaffiliated pricing service, which determines
valuations for normal institutional size trading units of debt securities.
Mortgage securities are valued at the bid price. Short-term securities held
in the Money Market Fund are valued at amortized cost or original cost plus
accrued interest receivable, both of which approximate market value. In the
remaining Funds, short-term investments with maturity of 60 days or less
when purchased are valued at amortized cost, which approximates market
value. Short-term investments purchased with a maturity of more than 60 days
when purchased are valued based on market quotations until the remaining
days to maturity becomes less than 61 days. From such time until maturity,
the investments are valued at amortized cost.
The funds use market prices in valuing portfolio securities, but may use
fair value estimates, as determined by Hartford Investment Financial
Services Company (HIFSCO) under procedures established by the Board of
Directors, if reliable market prices are unavailable. Fair value pricing may
be used by a fund when current market values are unavailable or when an
event occurs after the close of the exchange on which the fund's portfolio
securities are principally traded that is likely to have changed the value
of the securities. The use of fair value pricing by a fund may cause the net
asset value of its shares to differ significantly from the net asset value
that would be calculated using current market values. Securities of foreign
issuers and non-dollar securities are valued on the basis of quotations from
the primary market in which they are traded, and are translated from the
local currency into U.S. dollars using current exchange rates. Options are
valued at the last sales price. If no sale took place on such day, then
options are valued at the mean between the bid and asked prices.
Securities for which prices are not available from an independent pricing
service, but where an active market exists, are valued using market
quotations obtained from one or more dealers that make markets in the
securities or from an approved quotation system.
Investment income such as dividend income is recorded on the ex-dividend
date. Interest income, including amortization of bond premium and discount,
is recorded on the accrual basis.
C) FOREIGN CURRENCY TRANSACTIONS -- The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed
in foreign currencies are converted into U.S. dollars at prevailing exchange
rates. Purchases and sales of investment securities, dividend and interest
income and certain expenses are translated at the rates of exchange
prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of portfolio security valuation
resulting from fluctuations in foreign currency exchange rates on portfolio
securities from the fluctuations arising from changes in the market prices
of securities held. Such fluctuations are included with the net realized and
unrealized gain or loss on investments in the accompanying financial
statements.
Net realized foreign exchange gains or losses arise from sales of foreign
currencies and the difference between asset and liability amounts initially
stated in foreign currencies and the U.S. dollar value of the amounts
actually received or paid. Net unrealized foreign exchange gains or losses
arise from changes in the value of other assets and liabilities at the end
of the reporting period, resulting from changes in the exchange rates.
D) SECURITIES LENDING -- The Funds, except for the Money Market Fund, may
lend their securities to certain qualified brokers who pay these Funds
negotiated lender fees. The loans are collateralized at all times with cash,
which is then invested in short-term money market instruments with a market
value at least equal to the market value of the securities on loan. As with
other extensions of credit, these Funds may bear the risk of delays or cost
of the recovery of loaned securities or gaining access to the collateral
should the borrower of the securities fail financially.
174
- --------------------------------------------------------------------------------
E) JOINT TRADING ACCOUNT -- Pursuant to an exemptive order issued by the
Securities and Exchange Commission (SEC), the Funds may transfer uninvested
cash balances into a joint trading account managed by The Hartford
Investment Management Company (Hartford Investment) or Wellington Management
Company, LLP (Wellington). These balances may be invested in one or more
repurchase agreements and/or short-term money market instruments.
F) REPURCHASE AGREEMENTS -- A repurchase agreement is an agreement by which
the seller of a security agrees to repurchase the security sold at a
mutually agreed upon time and price. At the time the Funds enter into a
repurchase agreement, the value of the underlying collateral security (ies),
including accrued interest, will be equal to or exceed the value of the
repurchase agreement. Securities that serve to collateralize the repurchase
agreement are held by each Fund's custodian in book entry or physical form
in the custodial account of the Fund. Repurchase agreements are valued at
cost plus accrued interest receivable.
Certain Funds, together with other investment management companies having
investment advisory agreements with Wellington have an interest in
$2,724,481 joint repurchase agreements dated 10/31/03 with ABN AMRO, BNP
Paribas and UBS Securities due 11/03/03. These joint repurchase agreements
are collateralized as follows:
<Table>
<Caption>
BROKER RATE PRINCIPAL COLLATERAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ----- ---------- ---------------- ---------------------- ------------- ---------
ABN AMRO......................... 1.00% $ 395,000 $ 397,329 U.S. Treasury Bonds 11.25%-5.50% 2015-2028
U.S. Treasury Notes 7.50%-1.75% 2015-2004
BNP Paribas...................... 1.00% 1,039,481 1,060,860 U.S. Treasury Bonds 11.25%-5.25% 2015-2028
U.S. Treasury Notes 3.00% 2004
U.S. Treasury Bills 1.01%-0.92% 2004
UBS Securities................... 0.99% 790,000 801,830 U.S. Treasury 3.75%-3.375% 2011-2012
Inflation Linked Bonds
UBS Securities................... 0.97% 500,000 508,490 U.S. Treasury 3.625%-1.875% 2012-2028
Inflation Linked Bonds
</Table>
The maturity amounts are as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
Advisers Fund............................................... $ 81,278
Capital Appreciation Fund................................... 561,796
Dividend and Growth Fund.................................... 101,048
Disciplined Equity Fund..................................... 565
Equity Income Fund.......................................... 1,825
Focus Fund.................................................. 304
Global Communications Fund.................................. 224
Global Financial Services................................... 1,067
Global Health Fund.......................................... 6,684
Global Leaders Fund......................................... 16,300
Global Technology Fund...................................... 2,411
Growth Fund................................................. 14,858
Growth Opportunities Fund................................... 14,889
International Capital Appreciation Fund..................... 1,678
International Opportunities Fund............................ 2,966
International Small Company Fund............................ 4,907
MidCap Fund................................................. 97,640
MidCap Value Fund........................................... 9,968
Small Company Fund.......................................... 17,393
SmallCap Growth Fund........................................ 1,497
Stock Fund.................................................. 29,210
Value Fund.................................................. 690
Value Opportunities Fund.................................... 501
</Table>
Certain Funds, together with other investment management companies having
investment advisory agreements with Hartford Investment have an interest in
a $527,276 joint repurchase agreements dated 10/31/03 with Banc One, BNP
Paribas and UBS Warburg due 11/03/03. These joint repurchase agreements are
collateralized as follows:
<Table>
<Caption>
BROKER RATE PRINCIPAL COLLATERAL VALUE SECURITY TYPE COUPON RATE MATURITY
------ ----- --------- ---------------- ------------------- ------------ ---------
Banc One.............................. 0.97% $127,226 $128,153 U.S. Treasury Bills 3.25%-0.91% 2003-2004
BNP Paribas........................... 0.99% 200,000 204,139 U.S. Treasury Bills 0.96%-0.89% 2003-2004
UBS Warburg........................... 0.98% 200,000 200,903 U.S. Treasury Bonds 8.125%-5.13% 2016-2028
</Table>
175
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
The maturity amounts are as follows:
<Table>
<Caption>
MATURITY
FUND AMOUNT
---- --------
High Yield Fund.................................. $ 8,599
Income Fund...................................... 193
Money Market Fund................................ 8,479
Short Duration Fund.............................. 1,237
Total Return Bond Fund........................... 25,584
U.S. Government Securities Fund.................. 10,248
</Table>
The SmallCap Growth Fund has an interest in a $1,497 repurchase agreement
dated 10/31/03 with UBS Securities, 0.99% due 11/03/03. This repurchase
agreement is collateralized by $1,503 U.S. Treasury Bond 6.125% due 2027.
In addition, the Capital Appreciation Fund has a repurchase agreement as
collateral for securities lending. The lending agreement was collateralized
by an interest in a $56,039 repurchase agreement dated 10/31/03 with Bear,
Stearns & Co., 0.99% due 11/03/03. This repurchase agreement is
collateralized by $56,252, a FNCL #555783 4.50% due 2033.
G) FUTURES, OPTIONS ON FUTURES AND OPTIONS TRANSACTIONS -- Certain Funds may
invest in futures contracts and options contracts in order to gain exposure
to or protect against changes in the market. A futures contract is an
agreement between two parties to buy and sell a security at a set price on a
future date. When the Funds enter into such contracts, they are required to
deposit with their custodian an amount of "initial margin" of cash,
commercial paper or U.S. Treasury Bills. Subsequent payments, called
maintenance margin, to and from the broker, are made on a daily basis as the
price of the underlying security fluctuates, making the long and short
positions in the futures contract more or less valuable (i.e.,
mark-to-market), which results in an unrealized gain or loss to the Funds.
The market value of a traded futures contract is the last sale price. In the
absence of a last sale price, the last offering price is used. In the
absence of either of these prices, fair value is determined according to
procedures established by the Funds' Board of Directors.
At any time prior to expiration of the futures contract, the Funds may close
the position by taking an opposite position, which would operate to
terminate the position in the futures contract. A final determination of
maintenance margin is then made, additional cash is required to be paid by
or released to the Funds and the Funds realize a gain or loss.
The use of futures contracts involve elements of market risk, which may
exceed the amounts recognized in the Statements of Assets and Liabilities.
Change in the value of the futures contracts may decrease the effectiveness
of a Fund's strategies and potentially result in loss.
The premium paid by a Fund for the purchase of a call or put option is
included in the Fund's Statement of Assets and Liabilities as an investment
and subsequently "marked-to-market" through net unrealized appreciation
(depreciation) of options to reflect the current market value of the option
as of the end of the reporting period. If a purchased option expires on its
stipulated expiration date, the Fund realizes a loss in the amount of the
cost of the option. If the Fund exercises a put option, it realizes a gain
or loss from the sale of the underlying security and the proceeds from such
sale will be decreased by the premium originally paid. If the Fund exercises
a call option, the cost of the security, which the Fund purchases upon
exercise, will be increased by the premium originally paid to buy the call.
The Funds may write covered options. "Covered" means that so long as a Fund
is obligated as the writer of an option, it will own either the underlying
securities or currency or the option to purchase or sell the same underlying
securities or currency having the expiration date of the covered option and
an exercise price equal to or less than the exercise price of the covered
option, or will establish or maintain with its custodian for the term of the
option a "segregated account" consisting of cash or other liquid securities
having a value equal to the fluctuating market value of the option
securities or currencies. A Fund receives a premium for writing a call or
put option, recorded as a component of other liabilities on the Statements
of Assets and Liabilities, which increases the Funds' return, recorded as a
realized gain, if the option expires unexercised or is closed out at a net
profit. Any loss realized from the covered option is offset by the gain
realized on the sale of the underlying securities or currency. Covered
options, at times before exercise or close out, are marked-to-market through
net unrealized appreciation (depreciation) of options. There is a risk of
loss from a change in value of such options, which may exceed the related
premiums received.
The Total Return Bond Fund contracts and premium amounts associated with
options contracts written are as follows:
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31, 2003
------------------------------------------
PUTS CALLS
-------------------- -------------------
TOTAL RETURN BOND CONTRACTS PREMIUM CONTRACTS PREMIUM
----------------- --------- -------- --------- -------
Balance October 31,
2002............... -- $ -- -- $ --
Opened............... 750 113,708 750 55,114
Closed............... (750) (113,708) -- --
Exercised............ -- -- -- --
Expired.............. -- -- (750) (55,114)
---- -------- ---- -------
Balance October 31,
2003............... -- $ -- -- $ --
---- -------- ---- -------
</Table>
As of October 31, 2003, none of the Funds had open option contracts.
H) FORWARD FOREIGN CURRENCY CONTRACTS -- For the year ended October 31,
2003, the Capital Appreciation Fund, the Global Communications Fund, the
Global Financial Services Fund, the Global Leaders Fund, the International
Capital Appreciation Fund, the International Opportunities Fund, the
International Small Company Fund, the MidCap Value Fund and the Small
Company Fund entered into forward foreign currency exchange contracts that
obligate the Funds to repurchase/replace or sell currencies at specified
future dates. The Funds enter into forward foreign currency contracts to
hedge against adverse fluctuations in exchange rates between currencies.
Forward contracts involve elements of market risk in excess of the amount
reflected in the Statements of Assets and Liabilities. In addition, risks
may arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movement in the value of foreign currencies relative to the U.S. dollar.
I) INDEXED SECURITIES -- The Funds may invest in indexed securities whose
values are linked to changes in interest rates, indices, or other underlying
instruments. The Funds use these
176
- --------------------------------------------------------------------------------
securities to increase or decrease their exposure to different underlying
instruments and to gain exposure to markets that might be difficult to
invest through conventional securities. Indexed securities may be more
volatile than their underlying instruments, but any loss is limited to the
amount of the original investment and there is a limit to the potential
appreciation of the investment.
J) FEDERAL INCOME TAXES -- For federal income tax purposes, the Funds intend
to continue to qualify as regulated investment companies under Subchapter M
of the Internal Revenue Code by distributing substantially all of their
taxable net investment income and net realized capital gains to their
shareholders or otherwise complying with the requirements of regulated
investment companies. On a calendar year basis, the Funds are subject to a
4% federal excise tax to the extent they do not distribute substantially all
of their net investment income and realized gains, if any. Accordingly, no
provision for federal income taxes has been made in the accompanying
financial statements.
The tax character of distributions paid for the periods indicated is as
follows:
<Table>
<Caption>
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------- ----------------
ADVISERS FUND
Ordinary income........... $26,613 $31,960
DIVIDEND AND GROWTH FUND
Ordinary income........... 10,229 6,346
Return of capital......... 293
Long-term capital gains... 12,883
GLOBAL FINANCIAL SERVICES
FUND
Ordinary income........... 58
GLOBAL HEALTH FUND
Ordinary income........... 1,236 2,670
Long-term capital gains... 3,821 1,353
GROWTH FUND
Long-term capital gains... 147
GROWTH OPPORTUNITIES FUND
Long-term capital gains... 8,492
HIGH YIELD FUND
Ordinary income........... 22,578 15,541
</Table>
<Table>
<Caption>
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------- ----------------
INCOME FUND
Ordinary income........... $ 857
INFLATION PLUS FUND
Ordinary income........... 4,094
INTERNATIONAL CAPITAL
APPRECIATION FUND
Ordinary income........... 6
INTERNATIONAL SMALL COMPANY
FUND
Ordinary income........... 17
MONEY MARKET FUND
Ordinary income........... 954 $ 2,942
SHORT DURATION FUND
Ordinary income........... 1,283
SMALL CAP GROWTH FUND
Long-term capital gains... 2,944
TAX-FREE CALIFORNIA FUND
Ordinary income........... 450
TAX-FREE MINNESOTA FUND
Ordinary income........... 1,514 1,352
Long-term capital gains... 195
TAX-FREE NATIONAL FUND
Ordinary income........... 2,864 2,171
Long-term capital gains... 1,604 97
TAX-FREE NEW YORK
Ordinary income........... 349
TOTAL RETURN BOND FUND
Ordinary income........... 25,854 16,772
Long-term capital gains... 1,383 1,089
U.S. GOVERNMENT SECURITIES
FUND
Ordinary income........... 15,981 10,796
VALUE FUND
Ordinary income........... 239 119
VALUE OPPORTUNITIES FUND
Ordinary income........... 1,805
Long-term capital gains... 1,402
</Table>
As of October 31, 2003, the components of distributable earnings on a tax
basis are as follows:
<Table>
<Caption>
TOTAL
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED
ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS
INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)** (DEFICIT)
------------- ------------- ------------- ---------------- -----------
Advisers Fund................................ $ 1,654 $ -- $(357,815) $ 88,493 $(267,652)
Capital Appreciation Fund.................... -- -- (791,427) 710,179 (81,248)
Disciplined Equity Fund...................... 154 -- (129,537) 24,556 (104,827)
Dividend and Growth Fund..................... -- -- (51,709) 85,235 33,526
Equity Income Fund........................... 69 -- -- 646 715
Focus Fund................................... -- -- (30,183) 9,933 (20,250)
Global Communications Fund................... -- -- (7,672) 2,377 (5,295)
Global Financial Services Fund............... 130 -- (2,480) 1,715 (635)
Global Health Fund........................... -- 1,115 -- 7,502 8,617
Global Leaders Fund.......................... -- -- (161,940) 72,948 (88,992)
Global Technology Fund....................... -- -- (65,114) 10,058 (55,056)
Growth Fund.................................. -- -- (87,248) 69,240 (18,008)
Growth Opportunities Fund.................... -- -- (151,238) 109,029 (42,209)
High Yield Fund.............................. 6 -- (86,634) 8,031 (78,597)
Income Fund.................................. 30 -- (20) 680 690
Inflation Plus Fund.......................... 1,736 -- -- 3,443 5,179
</Table>
177
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOTAL
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED
ORDINARY LONG-TERM CAPITAL GAINS APPRECIATION EARNINGS
INCOME CAPITAL GAIN (LOSSES)* (DEPRECIATION)** (DEFICIT)
------------- ------------- ------------- ---------------- -----------
International Capital Appreciation Fund...... 37 65 -- 1,582 1,684
International Opportunities Fund............. 63 -- (57,670) 11,817 (45,790)
International Small Company Fund............. 2,967 86 -- 4,204 7,257
MidCap Fund.................................. -- -- (122,776) 396,012 273,236
MidCap Value Fund............................ -- -- (474) 30,362 29,888
Money Market Fund............................ -- -- -- -- --
Short Duration Fund.......................... 28 -- (221) 312 119
Small Company Fund........................... -- -- (108,923) 41,844 (67,079)
SmallCap Growth Fund......................... -- -- (84,008) 23,263 (60,745)
Stock Fund................................... -- -- (570,537) (39,875) (610,412)
Tax-Free California Fund..................... 30 -- (80) (68) (118)
Tax-Free Minnesota Fund...................... 21 348 -- 1,889 2,258
Tax-Free National Fund....................... 281 558 -- 3,352 4,191
Tax-Free New York Fund....................... 116 -- -- 74 190
Total Return Bond Fund....................... 17,671 1,196 -- 2,821 21,688
U.S. Government Securities Fund.............. 1 -- (10,866) 1,127 (9,738)
Value Fund................................... 349 -- (7,069) 2,877 (3,843)
Value Opportunities Fund..................... -- -- (9,273) 6,050 (3,223)
</Table>
* Certain Funds had capital loss carryforwards that are identified in
footnote 8.
** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of wash sale
losses and differing treatments for the interest accrual on defaulted
securities.
K) FUND SHARE VALUATION AND DIVIDEND DISTRIBUTIONS TO SHAREHOLDERS -- Orders
for a Fund's shares are executed in accordance with the investment
instructions of the shareholders. Dividend income is accrued as of the
ex-dividend date, except that certain dividends for foreign securities where
the ex-dividend date may have passed are recorded as soon as the Fund is
informed of the dividend in the exercise of reasonable diligence. Interest
income and expenses are accrued on a daily basis. The net asset value of
each Fund's shares is determined as of the close of each business day of the
New York Stock Exchange (the Exchange). The net asset value per share is
determined separately for each class of each fund by dividing the Fund's net
assets attributable to that class by the number of shares of the class
outstanding. Orders for the purchase of a Fund's shares received prior to
the close of the Exchange on any day on which the Exchange is open for
business are priced at the per-share net asset value determined as of the
close of the Exchange. Orders received after the close of the Exchange, or
on a day on which the Exchange and/or the Fund is not open for business, are
priced at the per-share net asset value next determined.
Each Fund intends to distribute substantially all of its net investment
income and net realized capital gains to shareholders no less frequently
than once a year. Normally, dividends from net investment income of the
Capital Appreciation Fund, the Disciplined Equity Fund, the Focus Fund,
Global Communications Fund, the Global Financial Services Fund, the Global
Health Fund, the Global Leaders Fund, the Global Technology Fund, the Growth
Fund, the Growth Opportunities Fund, the International Capital Appreciation
Fund, the International Opportunities Fund, the International Small Company
Fund, the MidCap Fund, the MidCap Value Fund, the Small Company Fund, the
SmallCap Growth Fund, the Stock Fund, the Value Fund, and the Value
Opportunities Fund will be declared and paid annually; dividends from net
investment income of the Advisers Fund, the Dividend and Growth Fund and the
Equity Income Fund will be declared and paid quarterly; dividends from the
net investment income of the High Yield Fund, the Income Fund, the Inflation
Plus Fund, the Short Duration Fund, the Tax-Free California Fund, the Tax-
Free Minnesota Fund, the Tax-Free National Fund, the Tax-Free New York Fund,
the Total Return Bond Fund and the U. S. Government Securities Fund will be
declared and paid monthly and dividends from net investment income of the
Money Market Fund will be declared daily and paid monthly. Dividends from
the Money Market Fund are not paid on shares until the day following the
date on which the shares are issued. Unless shareholders specify otherwise,
all dividends and distributions will be automatically reinvested in
additional full or fractional shares of each Fund.
Net investment income and net realized capital gains available for
distribution are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gains and losses, losses
deferred due to wash sales and excise tax regulations. Permanent book and
federal income tax basis differences relating to shareholder distributions
will result in reclassifications to certain of the Funds' capital accounts
(see Note 7).
L) USE OF ESTIMATES -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the date of the financial statements
and the reported amounts of income and expenses during the period. Operating
results in the future could vary from the amounts derived from management's
estimates.
M) RESTRICTED SECURITIES -- Each Fund is permitted to invest up to 15% of
its net assets in illiquid securities, except for the Money Market Fund,
which may invest up to 10% in such securities. "Illiquid Securities" are
those that may not be sold or disposed of in the ordinary course of
business, at approximately the price used
178
- --------------------------------------------------------------------------------
to determine a Fund's net asset value per share. Each Fund may also purchase
certain restricted securities, commonly known as Rule 144A securities, that
can be resold to institutions and which may be determined to be liquid
pursuant to policies and guidelines established by the Funds' Board of
Directors.
N) CREDIT DEFAULT SWAPS -- The Funds may enter into credit default swaps.
The credit default swap market allows the Funds to manage credit risk
through buying and selling credit protection on specific companies or a
basket of companies. A buyer 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 a premium and agrees to assume the credit risk of
an issuer upon the occurrence of certain events. The Funds will limit credit
default swap transactions to five percent (5%) of the Fund's net assets at
the time of purchase. As of October 31, 2003, no credit default swaps were
held by the Funds.
O) SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for
securities that have been purchased by the fund on a forward commitment or
when-issued basis can take place a month or more after the transaction date.
During this period, such securities are subject to market fluctuations and
the fund maintains in a segregated account with its custodian, assets with a
market value equal to the amount of its purchase commitments. As of October
31, 2003, the Total Return Bond Fund has entered into outstanding
when-issued or forward commitments of $22,454.
3. EXPENSES:
A) INVESTMENT MANAGEMENT AND ADVISORY AGREEMENTS -- HIFSCO, a wholly-owned
indirect subsidiary of The Hartford Financial Services Group, Inc. (The
Hartford), serves as investment manager to each Fund pursuant to an
Investment Advisory Agreements dated March 3, 1997 for Hartford Mutual
Funds, Inc. and dated February 19, 2002 for Hartford Mutual Funds II, Inc.
As investment manager, HIFSCO has overall investment supervisory
responsibility for each Fund. In addition, HIFSCO provides administrative
personnel, services, equipment and facilities and office space for proper
operation of the Funds. HIFSCO has contracted with Wellington for the
provision of day to day investment management services to the Advisers Fund,
the Capital Appreciation Fund, the Disciplined Equity Fund, the Dividend and
Growth Fund, the Equity Income Fund, the Focus Fund, the Global
Communications Fund, the Global Financial Services Fund, the Global Health
Fund, the Global Leaders Fund, the Global Technology Fund, the Growth Fund,
the Growth Opportunities Fund, the International Capital Appreciation Fund,
the International Opportunities Fund, the International Small Company Fund,
the MidCap Fund, the MidCap Value Fund, the Small Company Fund, the SmallCap
Growth Fund, the Stock Fund, the Value Fund and the Value Opportunities Fund
in accordance with each Fund's investment objective and policies. In
addition, HIFSCO has contracted with Hartford Investment, a wholly owned
subsidiary of The Hartford, for the provision of day to day investment
management services for the High Yield Fund, the Income Fund, the Inflation
Plus Fund, the Money Market Fund, the Short Duration Fund, the Tax-Free
California Fund, the Tax-Free Minnesota Fund, the Tax-Free National Fund,
the Tax-Free New York Fund, the Total Return Bond Fund and the U.S.
Government Securities Fund. Each Fund pays a fee to HIFSCO, a portion of
which may be used to compensate Wellington or HIMCO.
The schedule below reflects the rates of compensation paid to HIFSCO for
investment advisory services rendered:
<Table>
<Caption>
MONEY MARKET FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .50%
On next $500 million........................... .45%
Over $1 billion................................ .40%
</Table>
<Table>
<Caption>
TAX-FREE NATIONAL FUND
AND U.S. GOVERNMENT SECURITIES FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $50 million........................... .80%
Over $50 million............................... .70%
</Table>
<Table>
<Caption>
TOTAL RETURN BOND FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .65%
On next $500 million........................... .55%
Over $1 billion................................ .50%
</Table>
<Table>
<Caption>
GLOBAL LEADERS FUND,
INTERNATIONAL OPPORTUNITIES FUND,
MIDCAP FUND,
MIDCAP VALUE FUND
AND SMALL COMPANY FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .85%
On next $500 million........................... .75%
Over $1 billion................................ .70%
</Table>
<Table>
<Caption>
TAX-FREE MINNESOTA FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $50 million........................... .72%
Over $50 million............................... .70%
</Table>
<Table>
<Caption>
GROWTH FUND,
GROWTH OPPORTUNITIES FUND,
SMALLCAP GROWTH FUND
AND VALUE OPPORTUNITIES FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $100 million.......................... 1.00%
On next $150 million........................... .80%
Over $250 million.............................. .70%
</Table>
<Table>
<Caption>
ADVISERS FUND,
DIVIDEND AND GROWTH FUND
AND HIGH YIELD FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .75%
On next $500 million........................... .65%
Over $1 billion................................ .60%
</Table>
179
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERNATIONAL CAPITAL APPRECIATION FUND
AND INTERNATIONAL SMALL COMPANY FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... 1.00%
On next $500 million........................... .90%
Over $1 billion................................ .85%
</Table>
<Table>
<Caption>
CAPITAL APPRECIATION FUND,
DISCIPLINED EQUITY FUND,
EQUITY INCOME FUND,
STOCK FUND
AND VALUE FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .80%
On next $500 million........................... 70%
Over $1 billion................................ .65%
</Table>
<Table>
<Caption>
FOCUS FUND,
GLOBAL COMMUNICATIONS FUND,
GLOBAL FINANCIAL SERVICES FUND,
GLOBAL HEALTH FUND
AND GLOBAL TECHNOLOGY FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... 1.00%
On next $500 million........................... .95%
Over $1 billion................................ .90%
</Table>
<Table>
<Caption>
INCOME FUND
AND INFLATION PLUS FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .60%
Over $500 million.............................. .55%
</Table>
<Table>
<Caption>
SHORT DURATION FUND,
TAX-FREE CALIFORNIA FUND
AND TAX-FREE NEW YORK FUND
AVERAGE DAILY NET ASSETS ANNUAL FEE
------------------------ ----------
On first $500 million.......................... .55%
Over $500 million.............................. .50%
</Table>
B) DISTRIBUTION AND SERVICE PLAN FOR CLASS A, B, C, H, L, M AND N
SHARES -- HIFSCO, is the principal underwriter and distributor of the Funds.
HIFSCO is engaged in distribution activities, which include marketing,
distribution and clearing of shares through broker-dealers, financing
distribution costs and maintaining financial books and records. For the year
ended, October 31, 2003, the following revenues were received by HIFSCO:
<Table>
<Caption>
FRONT-END LOAD CONTINGENT
SALES CHARGE DEFERRED SALES CHARGE
-------------- ---------------------
HIFSCO................... $58,985 $10,119
</Table>
The Funds have adopted Distribution and Service Plans in accordance with
Rule 12b-1 of the Investment Company Act of 1940, as amended, to compensate
the Distributor (HIFSCO) for activities intended to result in the sale and
distribution of Classes A, B, C, H, L, M and N shares and for providing
services for shareholders. The Distributor is compensated at an annual rate
that may not exceed 0.35% of the average daily net asset value of Class A
shares of the Fund, some or all of which may be remitted to brokers. Up to
0.25% of the fee may be used for shareholder servicing expenses with the
remainder used for distribution expenses. The Class A Rule 12b-1 fee for
each Fund has been voluntarily capped at 0.30%. The cap may be removed at
any time. Some or the entire 12b-1 fee for Class B shares may be remitted to
broker-dealers for distribution and/or shareholder account services. Under
the Class B Plan, the Fund pays the Distributor 1.00% of the average daily
net assets of Class B shares that are outstanding for 8 years or less, 0.25%
of which is a fee for service provided to existing shareholders with the
remainder used for distribution expenses. After eight years, Class B shares
convert to Class A shares. Upon conversion to Class A shares, the Class A
plan described above will apply to those shares. Under the Class C Plan, the
Fund pays the Distributor 1.00% of the average daily net assets of Class C
shares outstanding, 0.25% of which is intended as a fee for services
provided to existing shareholders with the remainder used for distribution
expenses. For Class C shares, some or the entire fee may be remitted to
broker-dealers for distribution and/or shareholder account services. Class L
has a distribution fee of 0.25% for each Fund, except for SmallCap Growth
Fund which has a 0.45% fee. Classes H, M and N have a distribution fee of
1.00% of average daily net assets on an annual basis, to be used to
compensate those who sell shares of the fund and pay certain other expenses
of selling fund shares.
For the fiscal period ended October 31, 2003, total sales commissions paid
to affiliated brokers/dealers of The Hartford for distributing the Funds'
shares were $2,955. These commissions are in turn paid to sales
representatives of the broker/dealers.
C) OPERATING EXPENSES -- Allocable expenses incurred by the Funds are
allocated to each Fund in proportion to the average daily net assets of each
Fund, except where allocation of certain expenses is more fairly made
directly to the Fund or to specific classes within a Fund. The Hartford has
voluntarily agreed to limit the total operating expenses of the Class A, B,
C, H, L, M, N and Y shares of some of the Funds, exclusive of taxes,
interest, brokerage commissions, certain distribution expenses and
extraordinary expenses as follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y
---- ------- ------- ------- ------- ------- ------- ------- -------
Disciplined Equity Fund....................... 1.45% 2.15% 2.15% NA NA NA NA 1.00%
Focus Fund.................................... 1.65% 2.35% 2.35% NA NA NA NA 1.20%
Global Communications Fund.................... 1.65% 2.35% 2.35% NA NA NA NA 1.20%
Global Financial Services Fund................ 1.65% 2.35% 2.35% NA NA NA NA 1.20%
Global Health Fund............................ 1.65% 2.35% 2.35% NA NA NA NA 1.20%
</Table>
180
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS H CLASS L CLASS M CLASS N CLASS Y
---- ------- ------- ------- ------- ------- ------- ------- -------
Global Leaders Fund........................... 1.65% 2.35% 2.35% NA NA NA NA 1.20%
Global Technology Fund........................ 1.65% 2.35% 2.35% NA NA NA NA 1.20%
Growth Fund................................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00%
Growth Opportunities Fund..................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.00%
High Yield Fund............................... 1.40% 2.10% 2.10% NA NA NA NA 0.95%
Income Fund................................... 1.00% 1.70% 1.70% NA NA NA NA NA
Inflation Plus Fund........................... 1.00% 1.70% 1.70% NA NA NA NA NA
International Capital Appreciation Fund....... 1.65% 2.35% 2.35% NA NA NA NA 1.20%
International Opportunities Fund.............. 1.65% 2.35% 2.35% NA NA NA NA 1.20%
International Small Company Fund.............. 1.65% 2.35% 2.35% NA NA NA NA 1.20%
MidCap Value Fund............................. 1.45% 2.15% 2.15% NA NA NA NA 1.00%
Money Market Fund............................. 1.00% 1.70% 1.70% NA NA NA NA 0.55%
Short Duration Fund........................... 0.95% 1.65% 1.65% NA NA NA NA NA
SmallCap Growth Fund.......................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.10%
Small Company Fund............................ 1.45% 2.15% 2.15% NA NA NA NA 1.00%
Tax-Free California Fund...................... 0.95% 1.65% 1.65% NA NA NA NA NA
Tax-Free Minnesota Fund....................... 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.80%
Tax-Free National Fund........................ 1.15% 1.85% 1.85% 1.85% 1.15% 1.85% 1.85% 0.85%
Tax-Free New York Fund........................ 0.95% 1.65% 1.65% NA NA NA NA NA
Total Return Bond Fund........................ 1.25% 1.95% 1.95% NA NA NA NA 0.80%
U.S. Government Securities Fund............... 1.20% 1.90% 1.90% 1.90% 1.20% 1.90% 1.90% 0.80%
Value Fund.................................... 1.45% 2.15% 2.15% NA NA NA NA 1.00%
Value Opportunities Fund...................... 1.45% 2.15% 2.15% 2.15% 1.45% 2.15% 2.15% 1.25%
</Table>
The Hartford voluntarily agreed to waive management fees for the Equity
Income until August 28, 2004.
The Hartford may terminate such voluntary and temporary fee waivers and
expense limitation arrangements at any time.
Amounts incurred which exceed the above limits, are deducted from expenses
and are reported as expense reimbursements or waivers on the accompanying
Statements of Operations.
As of March 1, 2003, the fee waivers and expense limitation arrangements
ended for the Capital Appreciation Fund, the MidCap Fund, the Stock Fund,
the Dividend and Growth Fund and the Advisers Fund.
D) OTHER RELATED PARTY TRANSACTIONS -- The Hartford and its subsidiaries
provide facilities and office equipment, as well as perform certain other
services, including fund accounting and financial reporting, to the Funds.
Certain officers of the Funds are directors and/or officers of HIFSCO,
Hartford Investment and/or The Hartford or its subsidiaries. No officer of
the Funds receives any compensation directly from the Funds. Hartford
Administrative Services Company (HASCO), a wholly owned subsidiary of The
Hartford, provides transfer agent services to the Funds.
4. AFFILIATE HOLDINGS: As of October 31, 2003, affiliates of The Hartford had
ownership of shares in the Funds as follows:
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS Y
---- ------- ------- ------- -------
Equity Income Fund........ 270 10 10 10
Global Communications
Fund.................... 700 100 100 100
Global Financial Services
Fund.................... 703 100 100 101
Growth Fund............... @@ @@ @@ @@
Growth Opportunities
Fund.................... @@ @@ @@ @@
High Yield Fund........... -- -- -- @@
Income Fund............... 842 104 104 NA
International Capital
Appreciation Fund....... 210 30 30 30
International Small
Company Fund............ 210 30 30 30
MidCap Value Fund......... -- -- -- 2
Short Duration Fund....... 824 -- -- NA
</Table>
4. AFFILIATE HOLDINGS: (CONTINUED)
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C CLASS Y
---- ------- ------- ------- -------
SmallCap Growth Fund...... @@ @@ @@ @@
Tax-Free California
Fund.................... 830 103 103 NA
Tax-Free Minnesota Fund... @@ @@ @@ @@
Tax-Free National Fund.... @@ @@ @@ @@
Tax-Free New York Fund.... 828 103 103 NA
U.S. Government Securities
Fund.................... @@ @@ @@ @@
Value Fund................ -- -- -- 3
Value Opportunities
Fund.................... @@ @@ @@ @@
</Table>
@@ Due to the presentation of the financial statements in thousands, the
number of shares held round to zero.
NA Not applicable
5. INVESTMENT TRANSACTIONS: For the period ended October 31, 2003, the cost of
purchases and proceeds from sales of securities for Money Market Fund were
$5,554,361 and $5,687,879, respectively. The cost of purchases and proceeds
from sales of securities (excluding short-term investments) for the other
portfolios were as follows:
<Table>
<Caption>
COST OF PROCEEDS
FUND PURCHASES FROM SALES
---- ---------- ----------
Advisers Fund....................... $1,031,447 $1,091,353
Capital Appreciation Fund........... 3,899,393 4,113,643
Disciplined Equity Fund............. 232,851 263,896
Dividend and Growth Fund............ 783,270 416,557
Equity Income Fund.................. 31,382 260
Focus Fund.......................... 151,248 164,683
Global Communications Fund.......... 8,509 6,880
Global Financial Services Fund...... 16,216 15,552
Global Health Fund.................. 75,130 81,267
Global Leaders Fund................. 1,639,728 1,629,520
Global Technology Fund.............. 73,868 72,169
Growth Fund......................... 474,112 458,933
Growth Opportunities Fund........... 853,202 891,153
High Yield Fund..................... 273,928 141,713
Income Fund......................... 46,116 21,777
</Table>
181
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
COST OF PROCEEDS
FUND PURCHASES FROM SALES
---- ---------- ----------
Inflation Plus Fund................. $ 412,002 $ 47,828
International Capital Appreciation
Fund.............................. 29,575 24,403
International Opportunities Fund.... 133,009 142,313
International Small Company Fund.... 50,373 26,768
MidCap Fund......................... 1,754,903 1,162,834
MidCap Value Fund................... 126,647 98,507
Short Duration Fund................. 125,406 53,811
Small Company Fund.................. 350,691 361,620
SmallCap Growth Fund................ 173,060 174,738
</Table>
<Table>
<Caption>
COST OF PROCEEDS
FUND PURCHASES FROM SALES
---- ---------- ----------
Stock Fund.......................... $ 585,335 $ 706,823
Tax-Free California Fund............ 20,942 7,587
Tax-Free Minnesota Fund............. 6,562 7,759
Tax-Free National Fund.............. 37,928 26,127
Tax-Free New York Fund.............. 16,048 5,484
Total Return Bond Fund.............. 1,421,363 1,345,959
U.S. Government Securities Fund..... 404,621 444,148
Value Fund.......................... 23,285 16,810
Value Opportunities Fund............ 22,316 22,415
</Table>
6. CAPITAL SHARE TRANSACTIONS: The following information is for the periods
ended October 31, 2003 and 2002:
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
ADVISERS FUND:
Class A Shares........... 20,836 30,212 1,405 1,488 (16,930) (19,331) -- 10,210
Amount............ $276,476 $ 425,382 $18,517 $20,243 $(223,566) $(261,961) $ -- $149,372
Class B Shares........... 4,637 7,800 299 413 (7,994) (10,661) -- 4,011
Amount............ $ 60,761 $ 109,498 $ 3,881 $ 5,576 $(103,704) $(140,899) $ -- $ 58,085
Class C Shares........... 4,392 8,933 237 328 (8,264) (9,892) -- 721
Amount............ $ 58,068 $ 126,642 $ 3,113 $ 4,445 $(108,634) $(133,048) $ -- $ 10,535
Class Y Shares........... 301 313 8 25 (15) (3,901) -- --
Amount............ $ 4,038 $ 4,432 $ 119 $ 377 $ (203) $ (59,007) $ -- $ --
CAPITAL APPRECIATION FUND:
Class A Shares........... 20,811 37,272 -- -- (14,908) (19,951) -- --
Amount............ $474,094 $ 911,291 $ -- $ -- $(324,553) $(446,936) $ -- $ --
Class B Shares........... 6,504 15,443 -- -- (6,361) (7,947) -- --
Amount............ $138,655 $ 361,905 $ -- $ -- $(130,934) $(165,543) $ -- $ --
Class C Shares........... 8,629 17,915 -- -- (7,407) (8,820) -- --
Amount............ $185,768 $ 419,454 $ -- $ -- $(152,981) $(183,671) $ -- $ --
Class Y Shares........... 936 915 -- -- (382) (2,801) -- --
Amount............ $ 21,401 $ 22,058 $ -- $ -- $ (8,207) $ (76,693) $ -- $ --
DISCIPLINED EQUITY FUND:
Class A Shares........... 4,602 8,981 -- -- (7,751) (6,736) -- 1,945
Amount............ $ 40,782 $ 91,439 $ -- $ -- $ (67,219) $ (64,226) $ -- $ 20,626
Class B Shares........... 770 1,220 -- -- (1,148) (1,387) -- 1,206
Amount............ $ 6,568 $ 11,971 $ -- $ -- $ (9,611) $ (12,606) $ -- $ 12,446
Class C Shares........... 841 1,280 -- -- (1,474) (2,046) -- 179
Amount............ $ 7,184 $ 12,720 $ -- $ -- $ (12,330) $ (18,897) $ -- $ 1,856
Class Y Shares........... 21 41 -- -- (38) (6) -- --
Amount............ $ 187 $ 425 $ -- $ -- $ (353) $ (61) $ -- $ --
DIVIDEND AND GROWTH FUND:
Class A Shares........... 30,101 32,386 609 868 (8,875) (7,280) -- --
Amount............ $435,362 $ 503,459 $ 8,814 $13,605 $(126,929) $(107,015) $ -- $ --
Class B Shares........... 4,757 5,997 30 159 (2,247) (2,118) -- --
Amount............ $ 67,912 $ 92,473 $ 417 $ 2,503 $ (31,454) $ (30,687) $ -- $ --
Class C Shares........... 5,187 7,245 38 129 (2,830) (2,749) -- --
Amount............ $ 73,923 $ 111,009 $ 546 $ 2,036 $ (39,913) $ (39,850) $ -- $ --
Class Y Shares........... 3,551 930 29 40 (2,045) (1,567) -- --
Amount............ $ 53,476 $ 14,303 $ 434 $ 629 $ (31,994) $ (25,703) $ -- $ --
EQUITY INCOME FUND:
Class A Shares........... 2,610 -- -- -- (41) -- -- --
Amount............ $ 26,551 $ -- $ -- $ -- $ (424) $ -- $ -- $ --
Class B Shares........... 235 -- -- -- (1) -- -- --
Amount............ $ 2,391 $ -- $ -- $ -- $ (15) $ -- $ -- $ --
Class C Shares........... 737 -- -- -- @@ -- -- --
Amount............ $ 7,502 $ -- $ -- $ -- @@ $ -- $ -- $ --
Class Y Shares........... 10 -- -- -- -- -- -- --
Amount............ $ 100 $ -- $ -- $ -- $ -- $ -- $ -- $ --
FOCUS FUND:
Class A Shares........... 985 3,997 -- -- (2,225) (2,518) -- --
Amount............ $ 7,885 $ 37,194 $ -- $ -- $ (17,497) $ (20,394) $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
ADVISERS FUND:
Class A Shares........... 5,311 22,579
Amount............ $ 71,427 $333,036
Class B Shares........... (3,058) 1,563
Amount............ $ (39,062) $ 32,260
Class C Shares........... (3,635) 90
Amount............ $ (47,453) $ 8,574
Class Y Shares........... 294 (3,563)
Amount............ $ 3,954 $(54,198)
CAPITAL APPRECIATION FUND
Class A Shares........... 5,903 17,321
Amount............ $ 149,541 $464,355
Class B Shares........... 143 7,496
Amount............ $ 7,721 $196,362
Class C Shares........... 1,222 9,095
Amount............ $ 32,787 $235,783
Class Y Shares........... 554 (1,886)
Amount............ $ 13,194 $(54,635)
DISCIPLINED EQUITY FUND:
Class A Shares........... (3,149) 4,190
Amount............ $ (26,437) $ 47,839
Class B Shares........... (378) 1,039
Amount............ $ (3,043) $ 11,811
Class C Shares........... (633) (587)
Amount............ $ (5,146) $ (4,321)
Class Y Shares........... (17) 35
Amount............ $ (166) $ 364
DIVIDEND AND GROWTH FUND:
Class A Shares........... 21,835 25,974
Amount............ $ 317,247 $410,049
Class B Shares........... 2,540 4,038
Amount............ $ 36,875 $ 64,289
Class C Shares........... 2,395 4,625
Amount............ $ 34,556 $ 73,195
Class Y Shares........... 1,535 (597)
Amount............ $ 21,916 $(10,771)
EQUITY INCOME FUND:
Class A Shares........... 2,569 --
Amount............ $ 26,127 $ --
Class B Shares........... 234 --
Amount............ $ 2,376 $ --
Class C Shares........... 737 --
Amount............ $ 7,502 $ --
Class Y Shares........... 10 --
Amount............ $ 100 $ --
FOCUS FUND:
Class A Shares........... (1,240) 1,479
Amount............ $ (9,612) $ 16,800
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
182
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
Class B Shares........... 257 1,013 -- -- (463) (518) -- --
Amount............ $ 2,008 $ 9,398 $ -- $ -- $ (3,564) $ (4,001) $ -- $ --
Class C Shares........... 407 1,553 -- -- (883) (732) -- --
Amount............ $ 3,218 $ 14,420 $ -- $ -- $ (6,741) $ (5,785) $ -- $ --
Class Y Shares........... 20 69 -- -- (9) (1) -- --
Amount............ $ 158 $ 635 $ -- $ -- $ (80) $ (10) $ -- $ --
GLOBAL COMMUNICATIONS FUND:
Class A Shares........... 422 306 -- -- (132) (107) -- --
Amount............ $ 1,657 $ 1,162 $ -- $ -- $ (494) $ (376) $ -- $ --
Class B Shares........... 133 123 -- -- (58) (41) -- --
Amount............ $ 526 $ 440 $ -- $ -- $ (222) $ (128) $ -- $ --
Class C Shares........... 95 98 -- -- (41) (60) -- --
Amount............ $ 368 $ 408 $ -- $ -- $ (146) $ (218) $ -- $ --
Class Y Shares........... 37 47 -- -- (31) -- -- --
Amount............ $ 147 $ 164 $ -- $ -- $ (128) $ -- $ -- $ --
GLOBAL FINANCIAL SERVICES FUND:
Class A Shares........... 231 304 6 -- (145) (154) -- --
Amount............ $ 2,013 $ 2,884 $ 44 $ -- $ (1,230) $ (1,390) $ -- $ --
Class B Shares........... 73 164 -- -- (36) (37) -- --
Amount............ $ 613 $ 1,540 $ -- $ -- $ (290) $ (315) $ -- $ --
Class C Shares........... 79 164 -- -- (66) (63) -- --
Amount............ $ 673 $ 1,530 $ -- $ -- $ (522) $ (529) $ -- $ --
Class Y Shares........... 4 78 2 -- (22) (1) -- --
Amount............ $ 36 $ 762 $ 13 $ -- $ (191) $ (8) $ -- $ --
GLOBAL HEALTH FUND:
Class A Shares........... 3,203 6,349 228 154 (3,174) (4,932) -- --
Amount............ $ 40,388 $ 83,934 $ 2,589 $ 2,030 $ (38,579) $ (61,196) $ -- $ --
Class B Shares........... 700 1,729 102 64 (681) (915) -- --
Amount............ $ 8,608 $ 22,654 $ 1,130 $ 840 $ (7,941) $ (10,740) $ -- $ --
Class C Shares........... 725 1,583 98 69 (823) (1,139) -- --
Amount............ $ 9,058 $ 20,910 $ 1,089 $ 897 $ (9,659) $ (13,533) $ -- $ --
Class Y Shares........... 34 94 2 7 (34) (345) -- --
Amount............ $ 412 $ 1,245 $ 23 $ 92 $ (413) $ (4,828) $ -- $ --
GLOBAL LEADERS FUND:
Class A Shares........... 24,925 38,303 -- -- (23,238) (32,026) -- 6,063
Amount............ $292,646 $ 476,139 $ -- $ -- $(271,217) $(410,391) $ -- $ 81,253
Class B Shares........... 542 892 -- -- (1,130) (1,468) -- 2,012
Amount............ $ 6,308 $ 12,236 $ -- $ -- $ (12,914) $ (17,733) $ -- $ 26,325
Class C Shares........... 844 1,533 -- -- (1,932) (3,154) -- 262
Amount............ $ 9,733 $ 19,049 $ -- $ -- $ (22,148) $ (38,398) $ -- $ 3,427
Class Y Shares........... 829 575 -- -- (39) (644) -- --
Amount............ $ 10,182 $ 7,234 $ -- $ -- $ (507) $ (9,185) $ -- $ --
GLOBAL TECHNOLOGY FUND:
Class A Shares........... 3,806 6,012 -- -- (3,043) (6,044) -- --
Amount............ $ 14,169 $ 26,713 $ -- $ -- $ (11,163) $ (25,765) $ -- $ --
Class B Shares........... 896 772 -- -- (626) (739) -- --
Amount............ $ 3,306 $ 3,149 $ -- $ -- $ (2,176) $ (2,751) $ -- $ --
Class C Shares........... 1,253 742 -- -- (906) (1,399) -- --
Amount............ $ 4,613 $ 3,146 $ -- $ -- $ (3,103) $ (5,115) $ -- $ --
Class Y Shares........... 242 516 -- -- (226) (1,485) -- --
Amount............ $ 921 $ 2,264 $ -- $ -- $ (834) $ (8,253) $ -- $ --
GROWTH FUND:
Class A Shares........... 4,711 636 -- -- (462) (134) -- --
Amount............ $ 65,217 $ 8,247 $ -- $ -- $ (5,930) $ (1,639) $ -- $ --
Class B Shares........... 750 171 -- -- (64) (14) -- --
Amount............ $ 9,255 $ 1,973 $ -- $ -- $ (743) $ (147) $ -- $ --
Class C Shares........... 807 181 -- -- (75) (44) -- --
Amount............ $ 9,924 $ 2,077 $ -- $ -- $ (856) $ (468) $ -- $ --
Class H Shares........... 130 239 -- 1 (568) (735) -- --
Amount............ $ 1,503 $ 3,107 $ -- $ 13 $ (6,564) $ (8,866) $ -- $ --
Class L Shares........... 993 1,044 -- 8 (3,309) (5,098) -- --
Amount............ $ 12,856 $ 14,904 $ -- $ 116 $ (42,188) $ (68,367) $ -- $ --
Class M Shares........... 163 285 -- @@ (438) (460) -- --
Amount............ $ 1,881 $ 3,657 $ -- $ 10 $ (4,962) $ (5,592) $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
Class B Shares........... (206) 495
Amount............ $ (1,556) $ 5,397
Class C Shares........... (476) 821
Amount............ $ (3,523) $ 8,635
Class Y Shares........... 11 68
Amount............ $ 78 $ 625
GLOBAL COMMUNICATIONS FUN
Class A Shares........... 290 199
Amount............ $ 1,163 $ 786
Class B Shares........... 75 82
Amount............ $ 304 $ 312
Class C Shares........... 54 38
Amount............ $ 222 $ 190
Class Y Shares........... 6 47
Amount............ $ 19 $ 164
GLOBAL FINANCIAL SERVICES
Class A Shares........... 92 150
Amount............ $ 827 $ 1,494
Class B Shares........... 37 127
Amount............ $ 323 $ 1,225
Class C Shares........... 13 101
Amount............ $ 151 $ 1,001
Class Y Shares........... (16) 77
Amount............ $ (142) $ 754
GLOBAL HEALTH FUND:
Class A Shares........... 257 1,571
Amount............ $ 4,398 $ 24,768
Class B Shares........... 121 878
Amount............ $ 1,797 $ 12,754
Class C Shares........... -- 513
Amount............ $ 488 $ 8,274
Class Y Shares........... 2 (244)
Amount............ $ 22 $ (3,491)
GLOBAL LEADERS FUND:
Class A Shares........... 1,687 12,340
Amount............ $ 21,429 $147,001
Class B Shares........... (588) 1,436
Amount............ $ (6,606) $ 20,828
Class C Shares........... (1,088) (1,359)
Amount............ $ (12,415) $(15,922)
Class Y Shares........... 790 (69)
Amount............ $ 9,675 $ (1,951)
GLOBAL TECHNOLOGY FUND:
Class A Shares........... 763 (32)
Amount............ $ 3,006 $ 948
Class B Shares........... 270 33
Amount............ $ 1,130 $ 398
Class C Shares........... 347 (657)
Amount............ $ 1,510 $ (1,969)
Class Y Shares........... 16 (969)
Amount............ $ 87 $ (5,989)
GROWTH FUND:
Class A Shares........... 4,249 502
Amount............ $ 59,287 $ 6,608
Class B Shares........... 686 157
Amount............ $ 8,512 $ 1,826
Class C Shares........... 732 137
Amount............ $ 9,068 $ 1,609
Class H Shares........... (438) (495)
Amount............ $ (5,061) $ (5,746)
Class L Shares........... (2,316) (4,046)
Amount............ $ (29,332) $(53,347)
Class M Shares........... (275) (175)
Amount............ $ (3,081) $ (1,925)
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
183
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
Class N Shares........... 32 72 -- @@ (106) (201) -- --
Amount............ $ 378 $ 952 $ -- $ 2 $ (1,255) $ (2,481) $ -- $ --
Class Y Shares........... -- @@ -- -- -- -- -- --
Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ --
GROWTH OPPORTUNITIES FUND:
Class A Shares........... 757 289 -- -- (168) (71) -- --
Amount............ $ 14,186 $ 5,314 $ -- $ -- $ (2,947) $ (1,171) $ -- $ --
Class B Shares........... 201 69 -- -- (22) (12) -- --
Amount............ $ 3,353 $ 1,159 $ -- $ -- $ (346) $ (187) $ -- $ --
Class C Shares........... 285 106 -- -- (73) (41) -- --
Amount............ $ 4,860 $ 1,612 $ -- $ -- $ (1,137) $ (596) $ -- $ --
Class H Shares........... 209 316 -- 36 (684) (643) -- --
Amount............ $ 3,188 $ 5,424 $ -- $ 647 $ (10,526) $ (10,604) $ -- $ --
Class L Shares........... 1,072 1,473 -- 311 (3,729) (5,768) -- --
Amount............ $ 18,661 $ 28,880 $ -- $ 6,190 $ (63,752) $(107,309) $ -- $ --
Class M Shares........... 137 214 -- 17 (323) (320) -- --
Amount............ $ 2,091 $ 3,662 $ -- $ 322 $ (4,908) $ (5,191) $ -- $ --
Class N Shares........... 24 42 -- 4 (76) (96) -- --
Amount............ $ 364 $ 744 $ -- $ 73 $ (1,144) $ (1,657) $ -- $ --
Class Y Shares........... -- @@ -- -- -- -- -- --
Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ --
Class Z Shares........... 63 59 -- 48 (289) (3,218) -- --
Amount............ $ 1,121 $ 1,299 $ -- $ 983 $ (5,364) $ (70,413) $ -- $ --
HIGH YIELD FUND:
Class A Shares........... 21,777 9,501 1,432 887 (10,570) (6,676) -- 5,090
Amount............ $164,279 $ 74,745 $10,772 $ 6,677 $ (80,037) $ (51,831) $ -- $ 41,430
Class B Shares........... 4,300 2,251 385 270 (2,167) (1,863) -- 3,935
Amount............ $ 32,275 $ 17,344 $ 2,883 $ 2,020 $ (16,295) $ (14,165) $ -- $ 31,948
Class C Shares........... 5,820 4,021 373 283 (2,401) (1,872) -- 337
Amount............ $ 44,021 $ 31,627 $ 2,801 $ 2,141 $ (18,087) $ (14,323) $ -- $ 2,737
Class Y Shares........... -- 54 @@ 9 -- (561) -- --
Amount............ $ -- $ 469 @@ $ 75 $ -- $ (4,796) $ -- $ --
INCOME FUND:
Class A Shares........... 924 800 56 -- (276) -- -- --
Amount............ $ 9,639 $ 8,000 $ 583 $ -- $ (2,873) $ -- $ -- $ --
Class B Shares........... 435 100 10 -- (98) -- -- --
Amount............ $ 4,536 $ 1,000 $ 101 $ -- $ (1,022) $ -- $ -- $ --
Class C Shares........... 481 100 11 -- (113) -- -- --
Amount............ $ 5,041 $ 1,000 $ 111 $ -- $ (1,182) $ -- $ -- $ --
INFLATION PLUS FUND:
Class A Shares........... 16,391 800 154 -- (3,896) -- -- --
Amount............ $171,999 $ 8,002 $ 1,621 $ -- $ (40,833) $ -- $ -- $ --
Class B Shares........... 7,264 100 50 -- (1,023) -- -- --
Amount............ $ 76,272 $ 1,000 $ 521 $ -- $ (10,706) $ -- $ -- $ --
Class C Shares........... 17,734 100 114 -- (2,876) -- -- --
Amount............ $186,158 $ 1,000 $ 1,191 $ -- $ (30,131) $ -- $ -- $ --
INTERNATIONAL CAPITAL APPRECIATION FUND:
Class A Shares........... 2,549 1,535 1 -- (2,042) (1,201) -- --
Amount............ $ 20,230 $ 11,891 $ 5 $ -- $ (15,786) $ (9,277) $ -- $ --
Class B Shares........... 320 104 -- -- (212) (28) -- --
Amount............ $ 2,602 $ 840 $ -- $ -- $ (1,694) $ (219) $ -- $ --
Class C Shares........... 1,095 277 -- -- (974) (199) -- --
Amount............ $ 8,473 $ 2,073 $ -- $ -- $ (7,562) $ (1,468) $ -- $ --
Class Y Shares........... -- -- @@ -- -- -- -- --
Amount............ $ -- $ -- $ 1 $ -- $ -- $ -- $ -- $ --
INTERNATIONAL OPPORTUNITIES FUND:
Class A Shares........... 25,564 71,750 -- -- (26,722) (72,603) -- 1,418
Amount............ $206,831 $ 672,351 $ -- $ -- $(217,754) $(685,079) $ -- $ 12,538
Class B Shares........... 396 347 -- -- (596) (643) -- 636
Amount............ $ 3,188 $ 3,098 $ -- $ -- $ (4,723) $ (5,676) $ -- $ 5,906
Class C Shares........... 6,856 6,014 -- -- (6,993) (6,399) -- 77
Amount............ $ 53,002 $ 49,239 $ -- $ -- $ (54,300) $ (53,383) $ -- $ 711
Class Y Shares........... 589 1,255 -- -- (532) (2,501) -- --
Amount............ $ 5,041 $ 12,179 $ -- $ -- $ (4,536) $ (25,586) $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
Class N Shares........... (74) (130)
Amount............ $ (877) $ (1,527)
Class Y Shares........... -- @@
Amount............ $ -- $ 1
GROWTH OPPORTUNITIES FUND
Class A Shares........... 589 218
Amount............ $ 11,239 $ 4,143
Class B Shares........... 179 57
Amount............ $ 3,007 $ 972
Class C Shares........... 212 65
Amount............ $ 3,723 $ 1,016
Class H Shares........... (475) (291)
Amount............ $ (7,338) $ (4,533)
Class L Shares........... (2,657) (3,984)
Amount............ $ (45,091) $(72,239)
Class M Shares........... (186) (89)
Amount............ $ (2,817) $ (1,207)
Class N Shares........... (52) (50)
Amount............ $ (780) $ (840)
Class Y Shares........... -- @@
Amount............ $ -- $ 1
Class Z Shares........... (226) (3,111)
Amount............ $ (4,243) $(68,131)
HIGH YIELD FUND:
Class A Shares........... 12,639 8,802
Amount............ $ 95,014 $ 71,021
Class B Shares........... 2,518 4,593
Amount............ $ 18,863 $ 37,147
Class C Shares........... 3,792 2,769
Amount............ $ 28,735 $ 22,182
Class Y Shares........... -- (498)
Amount............ $ -- $ (4,252)
INCOME FUND:
Class A Shares........... 704 800
Amount............ $ 7,349 $ 8,000
Class B Shares........... 847 100
Amount............ $ 3,615 $ 1,000
Class C Shares........... 379 100
Amount............ $ 3,970 $ 1,000
INFLATION PLUS FUND:
Class A Shares........... 12,649 800
Amount............ $ 132,787 $ 8,002
Class B Shares........... 6,291 100
Amount............ $ 66,087 $ 1,000
Class C Shares........... 14,972 100
Amount............ $ 157,218 $ 1,000
INTERNATIONAL CAPITAL APP
Class A Shares........... 508 334
Amount............ $ 4,449 $ 2,614
Class B Shares........... 108 76
Amount............ $ 908 $ 621
Class C Shares........... 121 78
Amount............ $ 911 $ 605
Class Y Shares........... @@ --
Amount............ $ 1 $ --
INTERNATIONAL OPPORTUNITI
Class A Shares........... (1,158) 565
Amount............ $ (10,923) $ (190)
Class B Shares........... (200) 340
Amount............ $ (1,535) $ 3,328
Class C Shares........... (137) (308)
Amount............ $ (1,298) $ (3,433)
Class Y Shares........... 57 (1,246)
Amount............ $ 505 $(13,407)
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
184
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
INTERNATIONAL SMALL COMPANY FUND:
Class A Shares........... 1,516 1,081 1 -- (1,113) (777) -- --
Amount............ $ 14,976 $ 10,260 $ 10 $ -- $ (10,846) $ (7,309) $ -- $ --
Class B Shares........... 101 123 -- -- (38) (43) -- --
Amount............ $ 1,105 $ 1,160 $ -- $ -- $ (408) $ (386) $ -- $ --
Class C Shares........... 332 86 -- -- (200) (30) -- --
Amount............ $ 3,285 $ 774 $ -- $ -- $ (1,861) $ (247) $ -- $ --
Class Y Shares........... 1,855 91 1 -- (38) (6) -- --
Amount............ $ 21,094 $ 827 $ 7 $ -- $ (432) $ (61) $ -- $ --
MIDCAP FUND:
Class A Shares........... 31,557 16,040 -- -- (8,330) (7,584) -- --
Amount............ $556,422 $ 269,742 $ -- $ -- $(142,582) $(127,935) $ -- $ --
Class B Shares........... 6,247 4,128 -- -- (2,513) (2,799) -- --
Amount............ $104,470 $ 67,559 $ -- $ -- $ (40,772) $ (45,504) $ -- $ --
Class C Shares........... 9,074 4,901 -- -- (3,257) (4,256) -- --
Amount............ $152,841 $ 80,204 $ -- $ -- $ (53,133) $ (69,945) $ -- $ --
Class Y Shares........... 2,757 1,373 -- -- (516) (2,766) -- --
Amount............ $ 48,718 $ 24,730 $ -- $ -- $ (9,080) $ (48,769) $ -- $ --
MIDCAP VALUE FUND:
Class A Shares........... 4,780 10,353 -- -- (2,373) (2,173) -- --
Amount............ $ 46,718 $ 102,514 $ -- $ -- $ (21,563) $ (19,494) $ -- $ --
Class B Shares........... 1,287 2,914 -- -- (694) (542) -- --
Amount............ $ 12,186 $ 28,637 $ -- $ -- $ (6,151) $ (4,912) $ -- $ --
Class C Shares........... 1,597 3,687 -- -- (1,054) (837) -- --
Amount............ $ 15,411 $ 35,966 $ -- $ -- $ (9,784) $ (7,287) $ -- $ --
Class Y Shares........... -- -- -- -- (27) -- -- --
Amount............ $ -- $ -- $ -- $ -- $ (279) $ -- $ -- $ --
MONEY MARKET FUND:
Class A Shares........... 445,008 1,017,129 873 2,029 (502,544) (997,122) -- 194,078
Amount............ $445,008 $1,017,129 $ 873 $ 2,029 $(502,544) $(997,122) $ -- $194,078
Class B Shares........... 53,900 109,766 4 204 (85,220) (65,167) -- 5,247
Amount............ $ 53,900 $ 109,766 $ 4 $ 204 $ (85,220) $ (65,167) $ -- $ 5,247
Class C Shares........... 78,941 113,576 3 202 (114,883) (102,381) -- 624
Amount............ $ 78,941 $ 113,576 $ 3 $ 202 $(114,883) $(102,381) $ -- $ 624
Class Y Shares........... 1,293 12,352 17 123 (2,963) (42,969) -- --
Amount............ $ 1,293 $ 12,352 $ 17 $ 123 $ (2,963) $ (42,969) $ -- $ --
SHORT DURATION FUND:
Class A Shares........... 3,485 800 59 -- (1,114) -- -- --
Amount............ $ 35,368 $ 8,002 $ 595 $ -- $ (11,302) $ -- $ -- $ --
Class B Shares........... 1,336 100 14 -- (443) -- -- --
Amount............ $ 13,547 $ 1,000 $ 142 $ -- $ (4,498) $ -- $ -- $ --
Class C Shares........... 4,226 100 39 -- (1,342) -- -- --
Amount............ $ 42,908 $ 1,000 $ 397 $ -- $ (13,624) $ -- $ -- $ --
SMALL COMPANY FUND:
Class A Shares........... 4,197 6,686 -- -- (3,992) (6,688) -- --
Amount............ $ 48,158 $ 83,361 $ -- $ -- $ (43,568) $ (81,570) $ -- $ --
Class B Shares........... 656 1,061 -- -- (719) (1,001) -- --
Amount............ $ 7,407 $ 12,844 $ -- $ -- $ (7,431) $ (11,001) $ -- $ --
Class C Shares........... 1,028 1,185 -- -- (1,291) (1,518) -- --
Amount............ $ 11,105 $ 14,298 $ -- $ -- $ (13,027) $ (16,980) $ -- $ --
Class Y Shares........... 440 440 -- -- (519) (2,094) -- --
Amount............ $ 5,313 $ 5,800 $ -- $ -- $ (5,847) $ (27,145) $ -- $ --
SMALLCAP GROWTH FUND:
Class A Shares........... 833 357 -- -- (289) (135) -- --
Amount............ $ 15,670 $ 6,601 $ -- $ -- $ (5,298) $ (2,250) $ -- $ --
Class B Shares........... 233 132 -- -- (42) (10) -- --
Amount............ $ 4,143 $ 2,283 $ -- $ -- $ (697) $ (176) $ -- $ --
Class C Shares........... 193 114 -- -- (51) (14) -- --
Amount............ $ 3,421 $ 1,948 $ -- $ -- $ (935) $ (194) $ -- $ --
Class H Shares........... 82 149 -- 23 (255) (313) -- --
Amount............ $ 1,313 $ 2,732 $ -- $ 416 $ (4,092) $ (5,571) $ -- $ --
Class L Shares........... 382 830 -- 103 (1,019) (1,757) -- --
Amount............ $ 6,709 $ 16,839 $ -- $ 2,032 $ (17,832) $ (34,722) $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
INTERNATIONAL SMALL COMPA
Class A Shares........... 404 304
Amount............ $ 4,140 $ 2,951
Class B Shares........... 63 80
Amount............ $ 697 $ 774
Class C Shares........... 132 56
Amount............ $ 1,424 $ 527
Class Y Shares........... 1,818 85
Amount............ $ 20,669 $ 766
MIDCAP FUND:
Class A Shares........... 23,227 8,456
Amount............ $ 413,840 $141,807
Class B Shares........... 3,734 1,329
Amount............ $ 63,698 $ 22,055
Class C Shares........... 5,817 645
Amount............ $ 99,708 $ 10,259
Class Y Shares........... 2,241 (1,393)
Amount............ $ 39,638 $(24,039)
MIDCAP VALUE FUND:
Class A Shares........... 2,407 8,180
Amount............ $ 25,155 $ 83,020
Class B Shares........... 593 2,372
Amount............ $ 6,035 $ 23,725
Class C Shares........... 543 2,850
Amount............ $ 5,627 $ 28,679
Class Y Shares........... (27) --
Amount............ $ (279) $ --
MONEY MARKET FUND:
Class A Shares........... (56,663) 216,114
Amount............ $ (56,663) $216,114
Class B Shares........... (31,316) 50,050
Amount............ $ (31,316) $ 50,050
Class C Shares........... (35,939) 12,021
Amount............ $ (35,939) $ 12,021
Class Y Shares........... (1,653) (30,494)
Amount............ $ (1,653) $(30,494)
SHORT DURATION FUND:
Class A Shares........... 2,430 800
Amount............ $ 24,661 $ 8,002
Class B Shares........... 907 100
Amount............ $ 9,191 $ 1,000
Class C Shares........... 2,923 100
Amount............ $ 29,681 $ 1,000
SMALL COMPANY FUND:
Class A Shares........... 205 (2)
Amount............ $ 4,590 $ 1,791
Class B Shares........... (63) 60
Amount............ $ (24) $ 1,843
Class C Shares........... (263) (333)
Amount............ $ (1,922) $ (2,682)
Class Y Shares........... (79) (1,654)
Amount............ $ (534) $(21,345)
SMALLCAP GROWTH FUND:
Class A Shares........... 544 222
Amount............ $ 10,372 $ 4,351
Class B Shares........... 191 122
Amount............ $ 3,446 $ 2,107
Class C Shares........... 142 100
Amount............ $ 2,486 $ 1,754
Class H Shares........... (173) (141)
Amount............ $ (2,779) $ (2,423)
Class L Shares........... (637) (824)
Amount............ $ (11,123) $(15,851)
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
185
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
Class M Shares........... 84 133 -- 18 (183) (220) -- --
Amount............ $ 1,347 $ 2,366 $ -- $ 328 $ (2,943) $ (3,773) $ -- $ --
Class N Shares........... 29 40 -- 6 (69) (82) -- --
Amount............ $ 464 $ 728 $ -- $ 116 $ (1,052) $ (1,470) $ -- $ --
Class Y Shares........... -- @@ -- -- -- -- -- --
Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ --
STOCK FUND:
Class A Shares........... 8,443 18,429 -- -- (12,312) (15,369) -- --
Amount............ $123,104 $ 311,199 $ -- $ -- $(177,679) $(238,440) $ -- $ --
Class B Shares........... 1,969 4,217 -- -- (4,275) (6,336) -- --
Amount............ $ 27,216 $ 68,344 $ -- $ -- $ (58,344) $ (92,861) $ -- $ --
Class C Shares........... 2,360 5,277 -- -- (5,967) (7,933) -- --
Amount............ $ 32,634 $ 85,205 $ -- $ -- $ (82,117) $(117,952) $ -- $ --
Class Y Shares........... 1,029 986 -- -- (888) (135) -- --
Amount............ $ 15,485 $ 15,761 $ -- $ -- $ (11,848) $ (2,507) $ -- $ --
TAX-FREE CALIFORNIA FUND:
Class A Shares........... 334 800 36 -- (82) -- -- --
Amount............ $ 3,372 $ 8,000 $ 363 $ -- $ (818) $ -- $ -- $ --
Class B Shares........... 86 100 4 -- (6) -- -- --
Amount............ $ 864 $ 1,000 $ 46 $ -- $ (58) $ -- $ -- $ --
Class C Shares........... 23 100 3 -- (2) -- -- --
Amount............ $ 227 $ 1,000 $ 35 $ -- $ (20) $ -- $ -- $ --
TAX-FREE MINNESOTA FUND:
Class A Shares........... 252 208 10 2 (150) (12) -- --
Amount............ $ 2,656 $ 2,183 $ 103 $ 16 $ (1,569) $ (124) $ -- $ --
Class B Shares........... 48 25 1 -- (21) (2) -- --
Amount............ $ 506 $ 258 $ 11 $ 1 $ (220) $ (21) $ -- $ --
Class C Shares........... 21 29 1 -- (12) -- -- --
Amount............ $ 228 $ 303 $ 11 $ 2 $ (127) $ -- $ -- $ --
Class E Shares........... 36 69 93 76 (281) (274) -- --
Amount............ $ 377 $ 717 $ 985 $ 792 $ (2,970) $ (2,834) $ -- $ --
Class H Shares........... -- -- 1 2 (41) (52) -- --
Amount............ $ -- $ -- $ 6 $ 19 $ (433) $ (536) $ -- $ --
Class L Shares........... 38 22 10 9 (88) (52) -- --
Amount............ $ 403 $ 219 $ 111 $ 94 $ (929) $ (537) $ -- $ --
Class M Shares........... 1 3 1 1 (12) (25) -- --
Amount............ $ 6 $ 34 $ 15 $ 12 $ (128) $ (258) $ -- $ --
Class N Shares........... 1 2 1 -- (1) (2) -- --
Amount............ $ 14 $ 26 $ 5 $ 3 $ (10) $ (30) $ -- $ --
Class Y Shares........... -- @@ @@ -- -- -- -- --
Amount............ $ -- $ 1 @@ $ -- $ -- $ -- $ -- $ --
TAX-FREE NATIONAL FUND:
Class A Shares........... 2,067 1,189 66 8 (1,275) (116) -- --
Amount............ $ 23,066 $ 13,321 $ 736 $ 93 $ (14,174) $ (1,304) $ -- $ --
Class B Shares........... 411 380 19 2 (166) (46) -- --
Amount............ $ 4,558 $ 4,241 $ 209 $ 24 $ (1,827) $ (515) $ -- $ --
Class C Shares........... 661 312 18 1 (269) (35) -- --
Amount............ $ 7,349 $ 3,487 $ 196 $ 19 $ (2,975) $ (396) $ -- $ --
Class E Shares........... 28 64 155 102 (604) (465) -- --
Amount............ $ 307 $ 708 $ 1,718 $ 1,125 $ (6,762) $ (5,124) $ -- $ --
Class H Shares........... @@ 16 10 7 (110) (185) -- --
Amount............ $ 7 $ 182 $ 110 $ 79 $ (1,211) $ (2,029) $ -- $ --
Class L Shares........... 90 57 32 21 (100) (143) -- --
Amount............ $ 993 $ 625 $ 351 $ 227 $ (1,110) $ (1,565) $ -- $ --
Class M Shares........... 1 19 6 4 (33) (40) -- --
Amount............ $ 9 $ 209 $ 72 $ 48 $ (368) $ (445) $ -- $ --
Class N Shares........... 3 18 2 2 (4) (14) -- --
Amount............ $ 34 $ 199 $ 30 $ 18 $ (46) $ (161) $ -- $ --
Class Y Shares........... -- @@ @@ -- -- -- -- --
Amount............ $ -- $ 1 @@ $ -- $ -- $ -- $ -- $ --
TAX-FREE NEW YORK FUND:
Class A Shares........... 21 800 28 -- (2) -- -- --
Amount............ $ 218 $ 8,000 $ 284 $ -- $ (22) $ -- $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
Class M Shares........... (99) (69)
Amount............ $ (1,596) $ (1,079)
Class N Shares........... (40) (36)
Amount............ $ (588) $ (626)
Class Y Shares........... -- @@
Amount............ $ -- $ 1
STOCK FUND:
Class A Shares........... (3,869) 3,060
Amount............ $ (54,575) $ 72,759
Class B Shares........... (2,306) (2,119)
Amount............ $ (31,128) $(24,517)
Class C Shares........... (3,607) (2,656)
Amount............ $ (49,483) $(32,747)
Class Y Shares........... 141 851
Amount............ $ 3,637 $ 13,254
TAX-FREE CALIFORNIA FUND:
Class A Shares........... 288 800
Amount............ $ 2,917 $ 8,000
Class B Shares........... 84 100
Amount............ $ 852 $ 1,000
Class C Shares........... 24 100
Amount............ $ 242 $ 1,000
TAX-FREE MINNESOTA FUND:
Class A Shares........... 112 198
Amount............ $ 1,190 $ 2,075
Class B Shares........... 28 23
Amount............ $ 297 $ 238
Class C Shares........... 10 29
Amount............ $ 112 $ 305
Class E Shares........... (152) (129)
Amount............ $ (1,608) $ (1,325)
Class H Shares........... (40) (50)
Amount............ $ (427) $ (517)
Class L Shares........... (40) (21)
Amount............ $ (415) $ (224)
Class M Shares........... (10) (21)
Amount............ $ (107) $ (212)
Class N Shares........... 1 @@
Amount............ $ 9 $ (1)
Class Y Shares........... -- @@
Amount............ $ @@ $ 1
TAX-FREE NATIONAL FUND:
Class A Shares........... 858 1,081
Amount............ $ 9,628 $ 12,110
Class B Shares........... 264 336
Amount............ $ 2,940 $ 3,750
Class C Shares........... 410 278
Amount............ $ 4,570 $ 3,110
Class E Shares........... (421) (299)
Amount............ $ (4,737) $ (3,291)
Class H Shares........... (100) (162)
Amount............ $ (1,094) $ (1,768)
Class L Shares........... 22 (65)
Amount............ $ 234 $ (713)
Class M Shares........... (26) (17)
Amount............ $ (287) $ (188)
Class N Shares........... 1 6
Amount............ $ 18 $ 56
Class Y Shares........... -- @@
Amount............ $ -- $ 1
TAX-FREE NEW YORK FUND:
Class A Shares........... 47 800
Amount............ $ 480 $ 8,000
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
186
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHARES ISSUED FOR SHARES ISSUED
SHARES SOLD REINVESTED DIVIDENDS SHARES REDEEMED FROM MERGER
---------------------- -------------------- ---------------------- ------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------- ---------- -------- -------- --------- --------- ------ --------
Class B Shares........... 11 100 3 -- (10) -- -- --
Amount............ $ 109 $ 1,000 $ 28 $ -- $ (101) $ -- $ -- $ --
Class C Shares........... 37 100 3 -- (3) -- -- --
Amount............ $ 378 $ 1,000 $ 34 $ -- $ (34) $ -- $ -- $ --
TOTAL RETURN BOND FUND:
Class A Shares........... 20,815 41,344 1,161 741 (17,801) (33,367) -- --
Amount............ $230,384 $ 440,630 $12,816 $ 7,890 $(196,901) $(355,641) $ -- $ --
Class B Shares........... 3,361 6,149 405 277 (3,330) (2,452) -- --
Amount............ $ 37,093 $ 65,306 $ 4,445 $ 2,942 $ (36,783) $ (25,988) $ -- $ --
Class C Shares........... 4,024 8,311 407 289 (4,503) (4,332) -- --
Amount............ $ 44,598 $ 88,545 $ 4,477 $ 3,072 $ (49,934) $ (46,166) $ -- $ --
Class Y Shares........... 3,008 2,085 261 191 (1,577) (2,587) -- --
Amount............ $ 33,786 $ 22,377 $ 2,916 $ 2,051 $ (17,751) $ (27,678) $ -- $ --
U.S. GOVERNMENT SECURITIES FUND:
Class A Shares........... 11,235 9,877 314 61 (12,412) (2,321) -- --
Amount............ $111,585 $ 96,314 $ 3,103 $ 597 $(122,873) $ (22,790) $ -- $ --
Class B Shares........... 2,842 4,502 148 25 (3,017) (535) -- --
Amount............ $ 28,199 $ 43,685 $ 1,464 $ 245 $ (29,559) $ (5,225) $ -- $ --
Class C Shares........... 5,479 5,728 100 20 (6,954) (1,610) -- --
Amount............ $ 54,470 $ 55,648 $ 985 $ 199 $ (68,476) $ (15,728) $ -- $ --
Class E Shares........... 264 562 516 531 (2,526) (4,688) -- --
Amount............ $ 2,616 $ 5,375 $ 5,089 $ 5,069 $ (24,872) $ (44,397) $ -- $ --
Class H Shares........... 30 156 25 29 (350) (354) -- --
Amount............ $ 299 $ 1,495 $ 241 $ 271 $ (3,443) $ (3,383) $ -- $ --
Class L Shares........... 351 3,304 168 170 (1,017) (3,941) -- --
Amount............ $ 3,476 $ 31,232 $ 1,662 $ 1,622 $ (10,045) $ (37,337) $ -- $ --
Class M Shares........... 51 183 19 19 (271) (207) -- --
Amount............ $ 510 $ 1,737 $ 187 $ 184 $ (2,658) $ (1,976) $ -- $ --
Class N Shares........... 12 33 6 6 (48) (101) -- --
Amount............ $ 120 $ 315 $ 56 $ 62 $ (476) $ (961) $ -- $ --
Class Y Shares........... -- @@ @@ @@ -- -- -- --
Amount............ $ -- $ 1 @@ @@ $ -- $ -- $ -- $ --
VALUE FUND:
Class A Shares........... 1,775 3,339 30 8 (1,040) (916) -- --
Amount............ $ 14,409 $ 30,840 $ 231 $ 78 $ (8,159) $ (7,524) $ -- $ --
Class B Shares........... 275 642 -- 1 (144) (173) -- --
Amount............ $ 2,202 $ 5,842 $ -- $ 11 $ (1,118) $ (1,383) $ -- $ --
Class C Shares........... 328 1,019 -- 3 (383) (340) -- --
Amount............ $ 2,572 $ 9,226 $ -- $ 27 $ (3,003) $ (2,813) $ -- $ --
Class Y Shares........... @@ -- -- @@ (27) -- -- --
Amount............ $ 3 $ -- $ -- $ 2 $ (229) $ -- $ -- $ --
VALUE OPPORTUNITIES FUND:
Class A Shares........... 384 309 -- -- (178) (28) -- --
Amount............ $ 4,094 $ 3,321 $ -- $ -- $ (1,747) $ (267) $ -- $ --
Class B Shares........... 126 63 -- -- (12) (9) -- --
Amount............ $ 1,291 $ 650 $ -- $ -- $ (123) $ (93) $ -- $ --
Class C Shares........... 106 50 -- -- (15) (1) -- --
Amount............ $ 1,098 $ 501 $ -- $ -- $ (138) $ (5) $ -- $ --
Class H Shares........... 40 71 -- 49 (110) (167) -- --
Amount............ $ 371 $ 773 $ -- $ 542 $ (1,049) $ (1,740) $ -- $ --
Class L Shares........... 156 416 -- 160 (414) (784) -- --
Amount............ $ 1,619 $ 4,918 $ -- $ 1,848 $ (4,185) $ (8,539) $ -- $ --
Class M Shares........... 65 177 -- 52 (124) (227) -- --
Amount............ $ 621 $ 1,988 $ -- $ 576 $ (1,196) $ (2,338) $ -- $ --
Class N Shares........... 14 23 -- 16 (39) (70) -- --
Amount............ $ 135 $ 263 $ -- $ 183 $ (360) $ (747) $ -- $ --
Class Y Shares........... -- @@ -- -- -- -- -- --
Amount............ $ -- $ 1 $ -- $ -- $ -- $ -- $ -- $ --
<Caption>
NET INCREASE
(DECREASE) OF SHARES
---------------------
2003 2002
--------- --------
Class B Shares........... 4 100
Amount............ $ 36 $ 1,000
Class C Shares........... 37 100
Amount............ $ 378 $ 1,000
TOTAL RETURN BOND FUND:
Class A Shares........... 4,175 8,718
Amount............ $ 46,299 $ 92,879
Class B Shares........... 436 3,974
Amount............ $ 4,755 $ 42,260
Class C Shares........... (72) 4,268
Amount............ $ (859) $ 45,451
Class Y Shares........... 1,692 (311)
Amount............ $ 18,951 $ (3,250)
U.S. GOVERNMENT SECURITIE
Class A Shares........... (863) 7,617
Amount............ $ (8,185) $ 74,121
Class B Shares........... (27) 3,992
Amount............ $ 104 $ 38,705
Class C Shares........... (1,375) 4,138
Amount............ $ (13,021) $ 40,119
Class E Shares........... (1,746) (3,595)
Amount............ $ (17,167) $(33,953)
Class H Shares........... (295) (169)
Amount............ $ (2,903) $ (1,617)
Class L Shares........... (498) (467)
Amount............ $ (4,907) $ (4,483)
Class M Shares........... (201) (5)
Amount............ $ (1,961) $ (55)
Class N Shares........... (30) (62)
Amount............ $ (300) $ (584)
Class Y Shares........... @@ @@
Amount............ @@ $ 1
VALUE FUND:
Class A Shares........... 765 2,431
Amount............ $ 6,481 $ 23,394
Class B Shares........... 131 470
Amount............ $ 1,084 $ 4,470
Class C Shares........... (55) 682
Amount............ $ (431) $ 6,440
Class Y Shares........... (27) @@
Amount............ $ (226) $ 2
VALUE OPPORTUNITIES FUND:
Class A Shares........... 206 281
Amount............ $ 2,347 $ 3,054
Class B Shares........... 114 54
Amount............ $ 1,168 $ 557
Class C Shares........... 91 49
Amount............ $ 960 $ 496
Class H Shares........... (70) (47)
Amount............ $ (678) $ (425)
Class L Shares........... (258) (208)
Amount............ $ (2,566) $ (1,773)
Class M Shares........... (59) 2
Amount............ $ (575) $ 226
Class N Shares........... (25) (31)
Amount............ $ (225) $ (301)
Class Y Shares........... -- @@
Amount............ $ -- $ 1
</Table>
@@ Due to the presentation of the financial statements in thousands, the number
or shares and/or dollars round to zero.
187
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUND II, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 2003
(000'S OMITTED)
- --------------------------------------------------------------------------------
7. RECLASSIFICATION OF CAPITAL ACCOUNTS: In accordance with American Institute
of Certified Public Accountants Statement of Position 93-2, Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies, the Funds have
recorded several reclassifications in their capital accounts. These
reclassifications had no impact on the net asset value of the Funds and are
designed generally to present accumulated undistributed (distribution in
excess of) net investment income and realized gain on investments on a tax
basis which is considered to be more informative to the shareholder. The
reclassifications are a result of permanent differences between GAAP and tax
accounting for such items as foreign currency and passive foreign investment
company (PFIC) income classifications, and net operating losses that reduce
capital gain distribution requirements. 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 net investment
income, from net realized gains on investments or from capital depending on
the type of book and tax differences that exist. For the period ended
October 31, 2003, the Funds recorded the following reclassifications to
increase (decrease) the accounts listed below.
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED
NET INVESTMENT NET REALIZED PAID-IN-
INCOME GAIN (LOSS) CAPITAL
-------------- ------------ --------
Advisers Fund........................... $ 123 $ (123) $ --
Capital Appreciation Fund............... 15,762 1,449 (17,211)
Dividend and Growth Fund................ 280 12 (292)
Equity Income Fund...................... 7 -- (7)
Focus Fund.............................. 638 -- (638)
Global Communications Fund.............. 17 6 (23)
Global Financial Services Fund.......... 2 (2) --
Global Health Fund...................... 1,913 (1,081) (832)
Global Leaders Fund..................... 2,379 (88) (2,291)
Global Technology Fund.................. 739 -- (739)
Growth Fund............................. 1,780 -- (1,780)
Growth Opportunities Fund............... 3,535 -- (3,535)
High Yield Fund......................... 1,778 (15,403) 13,625
Income Fund............................. 53 (20) (33)
Inflation Plus Fund..................... 42 -- (42)
International Capital Appreciation
Fund.................................. 49 (49) --
International Opportunities Fund........ 12 (5) (7)
International Small Company Fund........ 3 (3) --
MidCap Fund............................. 14,260 (19) (14,241)
MidCap Value Fund....................... 1,112 77 (1,189)
Money Market Fund....................... 8 (8) --
Short Duration Fund..................... 35 -- (35)
Small Company Fund...................... 2,963 12 (2,975)
SmallCap Growth Fund.................... 1,410 16 (1,426)
Stock Fund.............................. 154 -- (154)
Tax-Free California Fund................ 37 -- (37)
Tax-Free New York Fund.................. 38 -- (38)
Total Return Bond Fund.................. 7,241 (7,241) --
U.S. Government Securities Fund......... 354 17,873 (18,227)
Value Opportunities Fund................ 159 -- (159)
</Table>
8. CAPITAL LOSS CARRYFORWARDS: As of October 31, 2003 (tax year-end), the
following Funds had capital loss carryforwards for U.S. federal income tax
purposes of approximately:
<Table>
<Caption>
YEAR OF
FUND AMOUNT EXPIRATION
---- -------- ----------
Advisers Fund................................ $357,815 2009-2011
Capital Appreciation Fund.................... 791,427 2009-2011
Disciplined Equity Fund...................... 129,537 2009-2011
Dividend and Growth Fund..................... 51,709 2010-2011
Focus Fund................................... 30,183 2009-2011
Global Communications Fund................... 7,672 2009-2011
Global Financial Services Fund............... 2,480 2009-2011
Global Leaders Fund.......................... 161,940 2009-2010
Global Technology Fund....................... 65,114 2009-2010
Growth Fund.................................. 87,248 2009-2011
Growth Opportunities Fund.................... 151,238 2009-2010
High Yield Fund.............................. 86,634 2007-2011
Income Fund.................................. 20 2011
International Opportunities Fund............. 57,670 2009-2011
MidCap Fund.................................. 122,776 2009-2010
MidCap Value Fund............................ 474 2009-2010
Short Duration Fund.......................... 221 2011
Small Company Fund........................... 108,923 2009-2010
SmallCap Growth Fund......................... 84,008 2009-2011
Stock Fund................................... 570,537 2009-2011
Tax-Free California Fund..................... 80 2011
U.S. Government Securities Fund.............. 10,866 2004-2011
Value........................................ 7,069 2010-2011
Value Opportunities Fund..................... 9,273 2009-2011
</Table>
In accordance with Section 382 of the Internal Revenue Code, utilization of
all or a portion of the above capital loss carryforwards (acquired via
merger) is limited on an annual basis in the amounts as follows:
<Table>
<Caption>
ANNUAL
ACQUIRING FUND LIMITATION
-------------- ----------
High Yield Fund................................. $3,813
International Opportunities Fund................ 960
</Table>
9. LINE OF CREDIT: The Funds participate in a $550,000 committed revolving line
of credit facility. The facility is to be used for temporary or emergency
purposes. Under the arrangement, the Funds are required to own securities
having a market value in excess of 300% of the total bank borrowings. The
interest rate on borrowings varies depending on the nature of the loan. The
facility also requires a fee to be paid based on the amount of the
commitment, which has not been utilized. For the period ended October 31,
2003, the Funds did not have any borrowings under this facility.
10. FUND MERGERS:
Effective with the close of business on February 15, 2002, the shareholders
approved the following fund mergers:
Fortis Asset Allocation Portfolio merged into The Hartford Advisers Fund
Fortis Global Growth Portfolio merged into The Hartford Global Leaders Fund
Fortis Growth & Income Fund merged into The Hartford Growth and Income Fund
(subsequently renamed The Hartford Disciplined Equity Fund)
Fortis High Yield Portfolio merged into The Hartford High Yield Fund
188
- --------------------------------------------------------------------------------
Fortis International Equity Portfolio merged into The Hartford International
Opportunities Fund
Fortis Money Fund merged into The Hartford Money Market Fund
Fortis Class A and Z were merged into Hartford Class A, Fortis Classes B and
H were merged into Hartford Class B and Fortis Class C was merged into
Hartford Class C.
The mergers were accomplished by tax-free exchanges as detailed below:
<Table>
<Caption>
ADVISERS FUND CLASS A/Z CLASS B/H CLASS C CLASS Y
------------- ---------- --------- -------- -------
Fortis Asset Allocation shares
exchanged................... 10,445 4,097 747
Hartford Advisers shares
issued...................... 10,210 4,011 721
Net assets of Fortis Asset
Allocation on February 15,
2002........................ $ 149,372 $ 58,085 $ 10,535
Net assets of Hartford
Advisers immediately before
the merger.................. $1,193,698 $654,672 $508,986 $1,445
Combined net assets........... $1,343,070 $712,757 $519,521 $1,445
</Table>
<Table>
<Caption>
GLOBAL LEADERS FUND CLASS A CLASS B CLASS C CLASS Y
------------------- -------- ------- -------- -------
Fortis Global Growth Fund shares
exchanged........................ 4,773 1,659 215
Hartford Global Leaders shares
issued........................... 6,063 2,012 262
Net assets of Fortis Global Growth
Fund on February 15, 2002........ $ 81,253 $26,325 $ 3,427
Net assets of Hartford Global
Leaders immediately before the
merger........................... $261,919 $65,618 $104,332 $1
Combined net assets................ $343,172 $91,943 $107,759 $1
</Table>
<Table>
<Caption>
DISCIPLINED EQUITY FUND CLASS A CLASS B CLASS C CLASS Y
----------------------- -------- ------- ------- -------
Fortis Growth & Income shares
exchanged................... 1,696 1,043 155
Hartford Disciplined Equity
shares issued............... 1,945 1,206 179
Net assets of Fortis Growth &
Income on February 15,
2002........................ $ 20,626 $12,446 $ 1,856
Net assets of Hartford
Disciplined Equity
immediately before the
merger...................... $267,115 $46,629 $63,400 $528
Combined net assets........... $287,741 $59,075 $65,256 $528
</Table>
<Table>
<Caption>
HIGH YIELD FUND CLASS A CLASS B CLASS C CLASS Y
--------------- ------- ------- ------- -------
Fortis High Yield shares
exchanged................... 8,797 6,779 581
Hartford High Yield shares
issued...................... 5,090 3,935 337
Net assets of Fortis High
Yield on February 15, 2002.. $41,430 $31,948 $ 2,737
Net assets of Hartford High
Yield immediately before the
merger...................... $56,149 $18,466 $33,142 $1
Combined net assets........... $97,579 $50,414 $35,879 $1
</Table>
<Table>
<Caption>
INTERNATIONAL OPPORTUNITIES FUND CLASS A CLASS B CLASS C CLASS Y
-------------------------------- ------- ------- ------- -------
Fortis International Equity
shares exchanged............. 912 439 53
Hartford International
Opportunities shares issued.. 1,418 636 77
Net assets of Fortis
International Equity on
February 15, 2002............ $12,538 $ 5,906 $ 711
Net assets of Hartford
International Opportunities
immediately before the
merger....................... $77,338 $18,688 $17,707 $5,426
Combined net assets............ $90,952 $24,593 $18,416 $5,501
</Table>
<Table>
<Caption>
MONEY MARKET FUND CLASS A CLASS B/H CLASS C CLASS Y
----------------- -------- --------- ------- -------
Fortis Money Fund shares
exchanged................... 194,078 5,247 624
Hartford Money Market shares
issued...................... 194,078 5,247 624
Net assets of Fortis Money
Fund on February 15, 2002... $194,078 $ 5,247 $ 624
Net assets of Hartford Money
Market immediately before
the merger.................. $ 93,806 $44,287 $50,627 $804
Combined net assets........... $287,884 $49,534 $51,251 $804
</Table>
The Fortis Asset Allocation Portfolio, Fortis Global Growth Fund, Fortis
Growth & Income Fund, Fortis High Yield Fund, Fortis International Equity
Fund and Fortis Money Fund had unrealized appreciation (depreciation),
accumulated net realized gains (losses) and capital stock as follows:
<Table>
<Caption>
UNREALIZED ACCUMULATED
APPRECIATION NET REALIZED CAPITAL
FUND (DEPRECATION) GAINS (LOSSES) STOCK
---- ------------- -------------- --------
Fortis Asset Allocation
Fund.................. $ (8,150) $ (2,713) $228,855
Fortis Global Growth
Fund.................. 3,855 (616) 107,766
Fortis Growth & Income
Fund.................. (670) (1,119) 36,717
Fortis High Yield
Fund.................. (25,192) (60,942) 162,249
Fortis International
Equity Fund........... (570) (7,152) 26,877
Fortis Money Fund....... -- -- 199,949
</Table>
189
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD ADVISERS FUND
For the Year Ended October
31, 2003(g)
Class A...................... $12.67 $ 0.19 $ 1.52 $(0.19) $ -- $ --
Class B...................... 12.54 0.09 1.51 (0.09) -- --
Class C...................... 12.66 0.11 1.52 (0.11) -- --
Class Y...................... 12.82 0.27 1.54 (0.26) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 14.38 0.21 (1.69) (0.23) -- --
Class B...................... 14.24 0.11 (1.68) (0.13) -- --
Class C...................... 14.37 0.12 (1.69) (0.14) --
Class Y...................... 14.54 0.13 (1.55) (0.30) -- --
For the Year Ended October
31, 2001
Class A...................... 17.07 0.30 (2.04) (0.31) (0.64) --
Class B...................... 16.90 0.20 (2.03) (0.19) (0.64) --
Class C...................... 17.05 0.20 (2.04) (0.20) (0.64) --
Class Y...................... 17.24 0.38 (2.06) (0.38) (0.64) --
For the Ten Months Ended
October 31, 2000
Class A...................... 17.02 0.24 0.19 (0.22) (0.16) --
Class B...................... 16.87 0.15 0.17 (0.13) (0.16) --
Class C...................... 17.02 0.15 0.17 (0.13) (0.16) --
Class Y...................... 17.16 0.33 0.16 (0.25) (0.16) --
For the Year Ended December
31, 1999
Class A...................... 15.71 0.27 1.60 (0.25) (0.31) --
Class B...................... 15.59 0.16 1.58 (0.15) (0.31) --
Class C...................... 15.73(f) 0.17(f) 1.58(f) (0.15)(f) (0.31)(f) --
Class Y...................... 15.80 0.35 1.61 (0.29) (0.31) --
For the Year Ended December
31, 1998
Class A...................... 13.41 0.23 2.58 (0.25) (0.26) --
Class B...................... 13.33 0.15 2.54 (0.17) (0.26) --
Class Y...................... 13.46 0.29 2.59 (0.28) (0.26) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 15.56(f) 0.16(f) 0.63(f) (0.22)(f) (0.40)(f) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD ADVISERS FUND
For the Year Ended October
31, 2003(g)
Class A...................... $14.19 13.62% $1,470,569 1.40% 1.39% 1.44% 46%
Class B...................... 14.05 12.86 593,179 2.13 2.12 0.72 --
Class C...................... 14.18 12.92 421,814 2.00 2.00 0.84 --
Class Y...................... 14.37 14.28 8,714 0.81 0.81 1.98 --
For the Year Ended October
31, 2002(g)
Class A...................... 12.67 (10.42) 1,245,331 1.41 1.36 1.56 44
Class B...................... 12.54 (11.11) 567,953 2.08 2.08 0.84 --
Class C...................... 12.66 (10.99) 422,520 1.97 1.97 0.95 --
Class Y...................... 12.82 (9.89) 3,997 0.78 0.78 2.15 --
For the Year Ended October
31, 2001
Class A...................... 14.38 (10.67) 1,088,858 1.27 1.22 1.99 37
Class B...................... 14.24 (11.27) 622,519 1.93 1.93 1.28 --
Class C...................... 14.37 (11.26) 478,194 1.93 1.93 1.28 --
Class Y...................... 14.54 (10.20) 56,320 0.74 0.74 2.48 --
For the Ten Months Ended
October 31, 2000
Class A...................... 17.07 2.52(d) 893,954 1.26(b) 1.21(b) 1.76(b) 38
Class B...................... 16.90 1.89(d) 631,930 1.92(b) 1.92(b) 1.05(b) --
Class C...................... 17.05 1.89(d) 432,171 1.92(b) 1.92(b) 1.05(b) --
Class Y...................... 17.24 2.90(d) 64,889 0.75(b) 0.75(b) 2.22(b) --
For the Year Ended December
31, 1999
Class A...................... 17.02 12.08 693,136 1.31 1.26 1.72 35
Class B...................... 16.87 11.29 555,338 1.97 1.97 1.00 --
Class C...................... 17.02(f) 11.29 323,631 1.99 1.99 0.99 --
Class Y...................... 17.16 12.62 68,133 0.79 0.79 2.18 --
For the Year Ended December
31, 1998
Class A...................... 15.71 21.09 316,435 1.43 1.38 1.67 40
Class B...................... 15.59 20.27 237,959 2.11 2.10 0.98 --
Class Y...................... 15.80 21.62 57,891 0.90 0.90 2.09 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 15.73(f) 5.25(d) 54,907 2.18(b) 2.10(b) 1.06(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
190
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Year Ended October
31, 2003
Class A...................... $20.47 $(0.04) $ 6.07 $ -- $ -- $ --
Class B...................... 19.44 (0.19) 5.72 -- -- --
Class C...................... 19.44 (0.16) 5.72 -- -- --
Class Y...................... 21.23 0.08 6.33 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 24.12 (0.06) (3.59) -- -- --
Class B...................... 23.06 (0.25) (3.37) -- -- --
Class C...................... 23.04 (0.22) (3.38) -- -- --
Class Y...................... 24.85 0.04 (3.66) -- -- --
For the Year Ended October
31, 2001
Class A...................... 33.20 0.05 (5.12) -- (4.01) --
Class B...................... 32.14 (0.02) (5.05) -- (4.01) --
Class C...................... 32.10 (0.06) (4.99) -- (4.01) --
Class Y...................... 33.94 0.08 (5.16) -- (4.01) --
For the Ten Months Ended
October 31, 2000
Class A...................... 31.72 (0.01) 3.15 -- (1.66) --
Class B...................... 30.92 (0.12) 3.00 -- (1.66) --
Class C...................... 30.89 (0.15) 3.02 -- (1.66) --
Class Y...................... 32.27 0.03 3.30 -- (1.66) --
For the Year Ended December
31, 1999
Class A...................... 20.42 (0.07) 13.28 -- (1.91) --
Class B...................... 20.08 (0.19) 12.94 -- (1.91) --
Class C...................... 20.08(f) (0.12)(f) 12.84(f) -- (1.91)(f) --
Class Y...................... 20.66 -- 13.52 -- (1.91) --
For the Year Ended December
31, 1998
Class A...................... 19.90 (0.10) 0.75 -- (0.13) --
Class B...................... 19.71 (0.21) 0.71 -- (0.13) --
Class Y...................... 20.05 (0.06) 0.80 -- (0.13) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 19.67(f) (0.06)(f) 0.47(f) -- --(f) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD CAPITAL
APPRECIATION FUND
For the Year Ended October
31, 2003
Class A...................... $26.50 29.46% $2,357,913 1.45% 1.43% (0.13)% 113%
Class B...................... 24.97 28.45 1,140,154 2.17 2.17 (0.87) --
Class C...................... 25.00 28.60 981,246 2.05 2.05 (0.75) --
Class Y...................... 27.64 30.19 48,372 0.85 0.85 0.46 --
For the Year Ended October
31, 2002(g)
Class A...................... 20.47 (15.13) 1,700,765 1.45 1.40 (0.28) 112
Class B...................... 19.44 (15.70) 884,553 2.14 2.14 (1.04) --
Class C...................... 19.44 (15.62) 738,988 2.02 2.02 (0.92) --
Class Y...................... 21.23 (14.57) 25,378 0.80 0.80 0.27 --
For the Year Ended October
31, 2001
Class A...................... 24.12 (17.24) 1,585,508 1.33 1.28 (0.22) 132
Class B...................... 23.06 (17.88) 876,826 1.99 1.99 (0.93) --
Class C...................... 23.04 (17.84) 666,372 1.99 1.99 (0.93) --
Class Y...................... 24.85 (16.85) 76,592 0.78 0.78 0.28 --
For the Ten Months Ended
October 31, 2000
Class A...................... 33.20 10.18(d) 1,309,836 1.32(b) 1.27(b) (0.42)(b) 130
Class B...................... 32.14 9.59(d) 826,495 1.97(b) 1.97(b) (1.12)(b) --
Class C...................... 32.10 9.56(d) 494,391 1.99(b) 1.99(b) (1.14)(b) --
Class Y...................... 33.94 10.60(d) 89,477 0.80(b) 0.80(b) 0.05(b) --
For the Year Ended December
31, 1999
Class A...................... 31.72 66.76 797,656 1.38 1.33 (0.61) 169
Class B...................... 30.92 65.58 569,201 2.02 2.02 (1.31) --
Class C...................... 30.89(f) 65.44 191,466 2.09 2.09 (1.37) --
Class Y...................... 32.27 67.49 64,688 0.87 0.87 (0.16) --
For the Year Ended December
31, 1998
Class A...................... 20.42 3.26 364,951 1.49 1.44 (0.70) 123
Class B...................... 20.08 2.52 290,756 2.15 2.15 (1.39) --
Class Y...................... 20.66 3.68 27,700 0.96 0.96 (0.27) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 20.08(f) 2.10(d) 15,231 2.29(b) 2.15(b) (1.34)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
191
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD DISCIPLINED
EQUITY FUND
For the Year Ended October
31, 2003
Class A...................... $ 8.43 $ 0.02 $ 1.63 $ -- $ -- $ --
Class B...................... 8.17 (0.04) 1.57 -- -- --
Class C...................... 8.18 (0.04) 1.57 -- -- --
Class Y...................... 8.63 0.08 1.65 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 10.36 -- (1.93) -- -- --
Class B...................... 10.10 (0.11) (1.82) -- -- --
Class C...................... 10.11 (0.06) (1.87) -- -- --
Class Y...................... 10.52 0.05 (1.94) -- -- --
For the Year Ended October
31, 2001
Class A...................... 13.63 -- (2.75) -- (0.52) --
Class B...................... 13.40 (0.05) (2.73) -- (0.52) --
Class C...................... 13.41 (0.06) (2.72) -- (0.52) --
Class Y...................... 13.78 0.03 (2.77) -- (0.52) --
For the Ten Months Ended
October 31, 2000
Class A...................... 13.72 (0.02) 0.04 -- (0.11) --
Class B...................... 13.58 (0.06) (0.01) -- (0.11) --
Class C...................... 13.58 (0.06) -- -- (0.11) --
Class Y...................... 13.83 0.02 0.04 -- (0.11) --
For the Year Ended December
31, 1999
Class A...................... 11.45 0.01 2.36 -- (0.10) --
Class B...................... 11.41 (0.02) 2.29 -- (0.10) --
Class C...................... 11.41(f) (0.03)(f) 2.30(f) -- (0.10)(f) --
Class Y...................... 11.48 0.06 2.39 -- (0.10) --
From inception April 30,
1998, through December 31,
1998
Class A...................... 10.00 0.02 1.45 -- -- (0.02)
Class B...................... 10.00 (0.01) 1.43 -- -- (0.01)
Class Y...................... 10.00 0.05 1.46 -- -- (0.03)
From inception August 1,
1998, through December 31,
1998
Class C...................... 10.14(f) 0.01(f) 1.29(f) -- -- (0.03)(f)
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD DISCIPLINED
EQUITY FUND
For the Year Ended October
31, 2003
Class A...................... $10.08 19.57% $ 243,842 1.56% 1.45% 0.24% 76%
Class B...................... 9.70 18.73 47,888 2.30 2.15 (0.46) --
Class C...................... 9.71 18.70 46,162 2.17 2.15 (0.46) --
Class Y...................... 10.36 20.05 622 0.98 0.98 0.70 --
For the Year Ended October
31, 2002(g)
Class A...................... 8.43 (18.63) 230,545 1.57 1.45 (0.03) 89
Class B...................... 8.17 (19.11) 43,431 2.26 2.15 (1.03) --
Class C...................... 8.18 (19.09) 44,054 2.13 2.13 (0.80) --
Class Y...................... 8.63 (17.97) 661 0.93 0.93 0.46 --
For the Year Ended October
31, 2001
Class A...................... 10.36 (20.90) 239,698 1.43 1.38 (0.07) 80
Class B...................... 10.10 (21.51) 43,210 2.11 2.11 (0.80) --
Class C...................... 10.11 (21.50) 60,409 2.09 2.09 (0.78) --
Class Y...................... 10.52 (20.60) 440 0.96 0.96 0.34 --
For the Ten Months Ended
October 31, 2000
Class A...................... 13.63 0.15(d) 197,176 1.43(b) 1.38(b) (0.17)(b) 63
Class B...................... 13.40 (0.51)(d) 41,126 2.11(b) 2.11(b) (0.90)(b) --
Class C...................... 13.41 (0.44)(d) 63,650 2.09(b) 2.09(b) (0.88)(b) --
Class Y...................... 13.78 0.44(d) 490 0.95(b) 0.95(b) 0.26(b) --
For the Year Ended December
31, 1999
Class A...................... 13.72 20.80 74,764 1.49 1.44 0.01 53
Class B...................... 13.58 20.00 20,375 2.13 2.13 (0.68) --
Class C...................... 13.58(f) 19.98 29,265 2.16 2.15 (0.69) --
Class Y...................... 13.83 21.45 480 0.93 0.93 0.51 --
From inception April 30,
1998, through December 31,
1998
Class A...................... 11.45 14.78(d) 11,120 1.63(b) 1.45(b) 0.23(b) 35
Class B...................... 11.41 14.21(d) 3,538 2.32(b) 2.15(b) (0.47)(b) --
Class Y...................... 11.48 15.18(d) 386 1.20(b) 1.00(b) 0.76(b) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 11.41(f) 12.80(d) 3,726 2.38(b) 2.15(b) (0.53)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
192
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD DIVIDEND AND
GROWTH FUND
For the Year Ended October
31, 2003
Class A...................... $13.58 $ 0.12 $ 2.37 $(0.13)(i) $ -- $ --
Class B...................... 13.43 0.03 2.32 (0.03)(i) -- --
Class C...................... 13.40 0.04 2.32 (0.04)(i) -- --
Class Y...................... 13.73 0.19 2.40 (0.21)(i) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 15.53 0.12 (1.71) (0.12) (0.24) --
Class B...................... 15.37 0.02 (1.70) (0.02) (0.24) --
Class C...................... 15.33 0.03 (1.69) (0.03) (0.24) --
Class Y...................... 15.71 0.12 (1.65) (0.21) (0.24) --
For the Year Ended October
31, 2001
Class A...................... 17.78 0.18 (1.49) (0.17) (0.77) --
Class B...................... 17.60 0.07 (1.48) (0.05) (0.77) --
Class C...................... 17.57 0.08 (1.48) (0.07) (0.77) --
Class Y...................... 17.96 0.25 (1.48) (0.25) (0.77) --
For the Ten Months Ended
October 31, 2000
Class A...................... 16.85 0.15 0.98 (0.12) (0.08) --
Class B...................... 16.69 0.04 0.99 (0.04) (0.08) --
Class C...................... 16.67 0.07 0.95 (0.04) (0.08) --
Class Y...................... 16.96 0.22 1.02 (0.16) (0.08) --
For the Year Ended December
31, 1999
Class A...................... 16.62 0.15 0.60 (0.17) (0.35) --
Class B...................... 16.47 0.04 0.58 (0.05) (0.35) --
Class C...................... 16.48(f) 0.04(f) 0.58(f) (0.08)(f) (0.35)(f) --
Class Y...................... 16.69 0.21 0.63 (0.22) (0.35) --
For the Year Ended December
31, 1998
Class A...................... 14.72 0.15 1.97 (0.15) (0.07) --
Class B...................... 14.61 0.06 1.92 (0.05) (0.07) --
Class Y...................... 14.77 0.24 1.94 (0.19) (0.07) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 15.94(f) 0.05(f) 0.70(f) (0.10)(f) (0.11)(f) --
THE HARTFORD EQUITY INCOME
FUND
From inception August 28,
2003, through October 31,
2003
Class A...................... 10.00 0.02 0.35 -- -- --
Class B...................... 10.00 0.01 0.35 -- -- --
Class C...................... 10.00 0.01 0.35 -- -- --
Class Y...................... 10.00 0.04 0.35 -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD DIVIDEND AND
GROWTH FUND
For the Year Ended October
31, 2003
Class A...................... $15.94 18.42% $1,296,982 1.41% 1.40% 0.88% 31%
Class B...................... 15.75 17.52 257,856 2.14 2.13 0.16 --
Class C...................... 15.72 17.67 230,348 2.02 2.02 0.27 --
Class Y...................... 16.11 19.03 42,107 0.81 0.81 1.44 --
For the Year Ended October
31, 2002(g)
Class A...................... 13.58 (10.64) 808,633 1.46 1.40 0.78 33
Class B...................... 13.43 (11.15) 185,731 2.13 2.10 0.08 --
Class C...................... 13.40 (11.08) 164,260 2.02 2.02 0.15 --
Class Y...................... 13.73 (10.00) 14,790 0.82 0.82 1.36 --
For the Year Ended October
31, 2001
Class A...................... 15.53 (7.67) 521,543 1.36 1.31 1.06 55
Class B...................... 15.37 (8.34) 150,592 2.03 2.03 0.34 --
Class C...................... 15.33 (8.33) 117,108 2.03 2.03 0.35 --
Class Y...................... 15.71 (7.20) 26,326 0.82 0.82 1.55 --
For the Ten Months Ended
October 31, 2000
Class A...................... 17.78 6.77(d) 294,903 1.36(b) 1.31(b) 0.99(b) 56
Class B...................... 17.60 6.17(d) 118,936 2.03(b) 2.03(b) 0.27(b) --
Class C...................... 17.57 6.17(d) 63,503 2.03(b) 2.03(b) 0.27(b) --
Class Y...................... 17.96 7.37(d) 22,441 0.85(b) 0.85(b) 1.45(b) --
For the Year Ended December
31, 1999
Class A...................... 16.85 4.57 242,054 1.38 1.33 0.94 50
Class B...................... 16.69 3.82 121,977 2.02 2.02 0.25 --
Class C...................... 16.67(f) 3.76 42,869 2.07 2.07 0.21 --
Class Y...................... 16.96 5.10 23,616 0.87 0.87 1.42 --
For the Year Ended December
31, 1998
Class A...................... 16.62 14.47 182,495 1.43 1.38 1.08 46
Class B...................... 16.47 13.62 108,344 2.10 2.10 0.39 --
Class Y...................... 16.69 14.86 17,098 0.91 0.91 1.53 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 16.48(f) 4.82(d) 9,682 2.20(b) 2.10(b) 0.23(b) --
THE HARTFORD EQUITY INCOME
FUND
From inception August 28,
2003, through October 31,
2003
Class A...................... 10.37 3.70(d) 26,649 1.53(b) 0.73(b) 1.81(b) 1
Class B...................... 10.36 3.60(d) 2,421 2.27(b) 1.47(b) 1.10(b) --
Class C...................... 10.36 3.60(d) 7,639 2.15(b) 1.35(b) 1.23(b) --
Class Y...................... 10.39 3.90(d) 104 0.93(b) 0.13(b) 2.17(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
(i) This includes a tax return of capital of less than $0.01.
193
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD FOCUS FUND
For the Year Ended October
31, 2003
Class A...................... $ 7.32 $(0.02) $ 1.64 $ -- $ -- $ --
Class B...................... 7.25 (0.08) 1.62 -- -- --
Class C...................... 7.24 (0.08) 1.62 -- -- --
Class Y...................... 7.37 0.01 1.66 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 8.82 (0.05) (1.45) -- -- --
Class B...................... 8.79 (0.12) (1.42) -- -- --
Class C...................... 8.79 (0.12) (1.43) -- -- --
Class Y...................... 8.83 -- (1.46) -- -- --
From inception May 24, 2001,
through October 31, 2001
Class A...................... 10.00 (0.01) (1.17) -- -- --
Class B...................... 10.00 (0.03) (1.18) -- -- --
Class C...................... 10.00 (0.04) (1.17) -- -- --
Class Y...................... 10.00 0.01 (1.18) -- -- --
THE HARTFORD GLOBAL
COMMUNICATIONS FUND
For the Year Ended October
31, 2003
Class A...................... 3.24 (0.01) 1.44 -- -- --
Class B...................... 3.19 (0.03) 1.42 -- -- --
Class C...................... 3.19 (0.03) 1.41 -- -- --
Class Y...................... 3.26 0.01 1.47 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 4.57 -- (1.33) -- -- --
Class B...................... 4.54 (0.04) (1.31) -- -- --
Class C...................... 4.54 (0.04) (1.31) -- -- --
Class Y...................... 4.60 -- (1.34) -- -- --
For the Year Ended October
31, 2001
Class A...................... 10.00 (0.02) (5.41) -- -- --
Class B...................... 10.00 (0.05) (5.41) -- -- --
Class C...................... 10.00 (0.05) (5.41) -- -- --
Class Y...................... 10.00 -- (5.40) -- -- --
THE HARTFORD GLOBAL FINANCIAL
SERVICES FUND
For the Year Ended October
31, 2003
Class A...................... 8.03 0.07 1.65 (0.04) -- --
Class B...................... 7.92 0.02 1.61 -- -- --
Class C...................... 7.92 0.02 1.61 -- -- --
Class Y...................... 8.10 0.13 1.64 (0.08) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 9.37 0.04 (1.38) -- -- --
Class B...................... 9.30 (0.02) (1.36) -- -- --
Class C...................... 9.30 (0.02) (1.36) -- -- --
Class Y...................... 9.41 0.08 (1.39) -- -- --
For the Year Ended October
31, 2001
Class A...................... 10.00 0.02 (0.65) -- -- --
Class B...................... 10.00 (0.03) (0.67) -- -- --
Class C...................... 10.00 (0.03) (0.67) -- -- --
Class Y...................... 10.00 0.07 (0.66) -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD FOCUS FUND
For the Year Ended October
31, 2003
Class A...................... $ 8.94 22.13% $ 70,002 1.76% 1.65% (0.29)% 138%
Class B...................... 8.79 21.24 21,058 2.49 2.35 (1.00) --
Class C...................... 8.78 21.27 27,158 2.36 2.35 (0.99) --
Class Y...................... 9.04 22.66 719 1.17 1.17 0.17 --
For the Year Ended October
31, 2002(g)
Class A...................... 7.32 (17.01) 66,432 1.76 1.65 (0.53) 215
Class B...................... 7.25 (17.52) 18,862 2.43 2.35 (1.23) --
Class C...................... 7.24 (17.63) 25,847 2.34 2.34 (1.22) --
Class Y...................... 7.37 (16.54) 509 1.14 1.14 0.09 --
From inception May 24, 2001,
through October 31, 2001
Class A...................... 8.82 (11.80)(d) 66,970 1.68(b) 1.63(b) (0.18)(b) 109
Class B...................... 8.79 (12.10)(d) 18,524 2.35(b) 2.35(b) (0.89)(b) --
Class C...................... 8.79 (12.10)(d) 24,142 2.35(b) 2.35(b) (0.89)(b) --
Class Y...................... 8.83 (11.70)(d) 9 1.20(b) 1.20(b) 0.25(b) --
THE HARTFORD GLOBAL
COMMUNICATIONS FUND
For the Year Ended October
31, 2003
Class A...................... 4.67 44.14 6,419 1.95 1.65 (0.08) 100
Class B...................... 4.58 43.57 1,555 2.68 2.35 (0.79) --
Class C...................... 4.57 43.26 1,305 2.55 2.35 (0.77) --
Class Y...................... 4.74 45.40 724 1.35 1.20 0.38 --
For the Year Ended October
31, 2002(g)
Class A...................... 3.24 (29.10) 3,506 2.03 1.65 (0.10) 84
Class B...................... 3.19 (29.74) 846 2.70 2.35 (0.80) --
Class C...................... 3.19 (29.74) 736 2.57 2.35 (0.78) --
Class Y...................... 3.26 (29.13) 481 1.27 1.20 0.40 --
For the Year Ended October
31, 2001
Class A...................... 4.57 (54.30) 4,050 1.73 1.66 (0.42) 84
Class B...................... 4.54 (54.60) 832 2.46 2.36 (1.12) --
Class C...................... 4.54 (54.60) 875 2.44 2.36 (1.12) --
Class Y...................... 4.60 (54.00) 460 1.20 1.20 0.03 --
THE HARTFORD GLOBAL FINANCIAL
SERVICES FUND
For the Year Ended October
31, 2003
Class A...................... 9.71 21.48 12,652 1.90 1.65 0.93 93
Class B...................... 9.55 20.58 3,681 2.62 2.35 0.22 --
Class C...................... 9.55 20.58 3,197 2.50 2.35 0.23 --
Class Y...................... 9.79 22.01 1,580 1.31 1.20 1.38 --
For the Year Ended October
31, 2002(g)
Class A...................... 8.03 (14.30) 9,739 1.98 1.65 0.51 76
Class B...................... 7.92 (14.84) 2,755 2.68 2.35 (0.20) --
Class C...................... 7.92 (14.84) 2,548 2.54 2.35 (0.20) --
Class Y...................... 8.10 (13.92) 1,435 1.25 1.20 0.96 --
For the Year Ended October
31, 2001
Class A...................... 9.37 (6.30) 9,946 1.89 1.70 0.25 115
Class B...................... 9.30 (7.00) 2,052 2.61 2.40 (0.45) --
Class C...................... 9.30 (7.00) 2,053 2.60 2.40 (0.45) --
Class Y...................... 9.41 (5.90) 941 1.35 1.24 0.70 --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
194
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD GLOBAL HEALTH
FUND
For the Year Ended October
31, 2003
Class A...................... $11.42 $(0.07) $ 2.75 $ -- $(0.30) $ --
Class B...................... 11.20 (0.15) 2.68 -- (0.30) --
Class C...................... 11.21 (0.15) 2.68 -- (0.30) --
Class Y...................... 11.61 (0.02) 2.80 -- (0.30) --
For the Year Ended October
31, 2002(g)
Class A...................... 13.47 (0.09) (1.68) -- (0.28) --
Class B...................... 13.31 (0.18) (1.65) -- (0.28) --
Class C...................... 13.32 (0.18) (1.65) -- (0.28) --
Class Y...................... 13.58 (0.02) (1.67) -- (0.28) --
For the Year Ended October
31, 2001
Class A...................... 13.86 (0.06) 0.23 -- (0.56) --
Class B...................... 13.81 (0.12) 0.18 -- (0.56) --
Class C...................... 13.81 (0.13) 0.20 -- (0.56) --
Class Y...................... 13.89 (0.01) 0.26 -- (0.56) --
From inception May 1, 2000,
through October 31, 2000
Class A...................... 10.00 (0.01) 3.87 -- -- --
Class B...................... 10.00 (0.04) 3.85 -- -- --
Class C...................... 10.00 (0.04) 3.85 -- -- --
Class Y...................... 10.00 0.01 3.88 -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL HEALTH
FUND
For the Year Ended October
31, 2003
Class A...................... $13.80 24.02% $ 126,630 1.76% 1.65% (0.62)% 37%
Class B...................... 13.43 23.13 56,378 2.49 2.35 (1.31) --
Class C...................... 13.44 23.11 51,606 2.36 2.35 (1.31) --
Class Y...................... 14.09 24.50 1,095 1.19 1.19 (0.15) --
For the Year Ended October
31, 2002(g)
Class A...................... 11.42 (13.43) 101,881 1.79 1.65 (0.70) 63
Class B...................... 11.20 (14.05) 45,659 2.48 2.35 (1.40) --
Class C...................... 11.21 (14.08) 43,042 2.35 2.35 (1.40) --
Class Y...................... 11.61 (12.68) 881 1.17 1.17 (0.22) --
For the Year Ended October
31, 2001
Class A...................... 13.47 1.18 98,971 1.67 1.62 (0.61) 58
Class B...................... 13.31 0.36 42,578 2.36 2.35 (1.33) --
Class C...................... 13.32 0.43 44,306 2.33 2.33 (1.31) --
Class Y...................... 13.58 1.78 4,340 1.12 1.12 (0.11) --
From inception May 1, 2000,
through October 31, 2000
Class A...................... 13.86 38.74(d) 44,917 1.72(b) 1.65(b) (0.33)(b) 92
Class B...................... 13.81 38.24(d) 20,574 2.43(b) 2.35(b) (1.03)(b) --
Class C...................... 13.81 38.24(d) 26,830 2.40(b) 2.35(b) (1.03)(b) --
Class Y...................... 13.89 39.04(d) 2,507 1.20(b) 1.20(b) 0.12(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
195
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD GLOBAL LEADERS
FUND
For the Year Ended October
31, 2003
Class A...................... $11.21 $(0.03) $ 2.78 $ -- $ -- $ --
Class B...................... 10.88 (0.12) 2.69 -- -- --
Class C...................... 10.90 (0.11) 2.70 -- -- --
Class Y...................... 11.45 0.03 2.86 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 12.83 0.02 (1.64) -- -- --
Class B...................... 12.54 (0.07) (1.59) -- -- --
Class C...................... 12.55 (0.06) (1.59) -- -- --
Class Y...................... 13.03 0.05 (1.63) -- -- --
For the Year Ended October
31, 2001
Class A...................... 17.55 0.01 (4.54) (0.18) (0.01)
Class B...................... 17.29 (0.08) (4.48) -- (0.18) (0.01)
Class C...................... 17.30 (0.10) (4.46) -- (0.18) (0.01)
Class Y...................... 17.73 0.08 (4.59) -- (0.18) (0.01)
For the Ten Months Ended
October 31, 2000
Class A...................... 18.56 -- (0.92) -- (0.09) --
Class B...................... 18.40 (0.06) (0.96) -- (0.09) --
Class C...................... 18.40 (0.06) (0.95) -- (0.09) --
Class Y...................... 18.68 0.03 (0.89) -- (0.09) --
For the Year Ended December
31, 1999
Class A...................... 12.67 -- 6.01 -- (0.12) --
Class B...................... 12.65 (0.02) 5.89 -- (0.12) --
Class C...................... 12.65 (0.02) 5.89 -- (0.12) --
Class Y...................... 12.69 0.03 6.08 -- (0.12) --
From inception September 30,
1998, through December 31,
1998
Class A...................... 10.00 (0.01) 3.03 -- (0.35) --
Class B...................... 10.00 (0.02) 3.02 -- (0.35) --
Class C...................... 10.00 (0.02) 3.02 -- (0.35) --
Class Y...................... 10.00 0.01 3.03 -- (0.35) --
THE HARTFORD GLOBAL TECHNOLOGY
FUND
For the Year Ended October
31, 2003
Class A...................... 2.98 (0.04) 1.74 -- -- --
Class B...................... 2.92 (0.06) 1.70 -- -- --
Class C...................... 2.92 (0.06) 1.70 -- -- --
Class Y...................... 3.01 (0.03) 1.77 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 4.01 (0.12) (0.91) -- -- --
Class B...................... 3.96 (0.18) (0.86) -- -- --
Class C...................... 3.97 (0.19) (0.86) -- -- --
Class Y...................... 4.04 (0.14) (0.89) -- -- --
For the Year Ended October
31, 2001
Class A...................... 8.72 (0.08) (4.55) -- (0.08) --
Class B...................... 8.68 (0.11) (4.53) -- (0.08) --
Class C...................... 8.68 (0.11) (4.52) -- (0.08) --
Class Y...................... 8.73 (0.04) (4.57) -- (0.08) --
From inception May 1, 2000,
through October 31, 2000
Class A...................... 10.00 (0.05) (1.23) -- -- --
Class B...................... 10.00 (0.07) (1.25) -- -- --
Class C...................... 10.00 (0.06) (1.26) -- -- --
Class Y...................... 10.00 (0.02) (1.25) -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GLOBAL LEADERS
FUND
For the Year Ended October
31, 2003
Class A...................... $13.96 24.53% $ 464,610 1.62% 1.61% (0.29)% 320%
Class B...................... 13.45 23.62 78,923 2.36 2.35 (1.01) --
Class C...................... 13.49 23.76 78,303 2.23 2.23 (0.89) --
Class Y...................... 14.34 25.24 19,043 1.00 1.00 0.28 --
For the Year Ended October
31, 2002(g)
Class A...................... 11.21 (12.63) 354,407 1.66 1.61 0.24 323
Class B...................... 10.88 (13.24) 70,280 2.33 2.33 (0.48) --
Class C...................... 10.90 (13.15) 75,174 2.21 2.21 (0.36) --
Class Y...................... 11.45 (12.13) 6,167 1.00 1.00 0.84 --
For the Year Ended October
31, 2001
Class A...................... 12.83 (26.07) 247,094 1.53 1.48 0.08 382
Class B...................... 12.54 (26.64) 62,973 2.23 2.23 (0.66) --
Class C...................... 12.55 (26.62) 103,574 2.19 2.19 (0.63) --
Class Y...................... 13.03 (25.68) 7,908 0.98 0.98 0.58 --
For the Ten Months Ended
October 31, 2000
Class A...................... 17.55 (4.98)(d) 255,959 1.53(b) 1.48(b) (0.06)(b) 290
Class B...................... 17.29 (5.56)(d) 75,702 2.22(b) 2.22(b) (0.80)(b) --
Class C...................... 17.30 (5.51)(d) 142,549 2.19(b) 2.19(b) (0.77)(b) --
Class Y...................... 17.73 (4.62)(d) 10,001 1.01(b) 1.01(b) 0.41(b) --
For the Year Ended December
31, 1999
Class A...................... 18.56 47.68 84,632 1.62 1.57 (0.15) 204
Class B...................... 18.40 46.64 24,588 2.29 2.29 (0.86) --
Class C...................... 18.40 46.64 43,012 2.33 2.33 (0.89) --
Class Y...................... 18.68 48.39 4,423 1.10 1.10 0.32 --
From inception September 30,
1998, through December 31,
1998
Class A...................... 12.67 30.36(d) 3,771 2.71(b) 1.65(b) (0.19)(b) 49
Class B...................... 12.65 30.16(d) 486 3.55(b) 2.35(b) (0.92)(b) --
Class C...................... 12.65 30.16(d) 517 3.57(b) 2.35(b) (0.90)(b) --
Class Y...................... 12.69 30.57(d) 392 2.46(b) 1.20(b) 0.31(b) --
THE HARTFORD GLOBAL TECHNOLOGY
FUND
For the Year Ended October
31, 2003
Class A...................... 4.68 57.05 32,388 1.77 1.65 (1.28) 163
Class B...................... 4.56 56.16 13,991 2.50 2.35 (1.98) --
Class C...................... 4.56 56.16 16,513 2.37 2.35 (1.99) --
Class Y...................... 4.75 57.81 886 1.18 1.18 (0.82) --
For the Year Ended October
31, 2002(g)
Class A...................... 2.98 (25.69) 18,321 1.86 1.65 (1.44) 174
Class B...................... 2.92 (26.26) 8,170 2.54 2.35 (2.14) --
Class C...................... 2.92 (26.45) 9,560 2.39 2.35 (2.15) --
Class Y...................... 3.01 (25.50) 512 1.15 1.15 (0.97) --
For the Year Ended October
31, 2001
Class A...................... 4.01 (53.56) 24,824 1.71 1.66 (1.24) 253
Class B...................... 3.96 (53.93) 10,962 2.43 2.36 (1.94) --
Class C...................... 3.97 (53.81) 15,581 2.37 2.36 (1.94) --
Class Y...................... 4.04 (53.27) 4,602 1.13 1.13 (0.71) --
From inception May 1, 2000,
through October 31, 2000
Class A...................... 8.72 (14.26)(d) 33,221 1.77(b) 1.66(b) (1.37)(b) 104
Class B...................... 8.68 (14.65)(d) 15,676 2.46(b) 2.35(b) (2.07)(b) --
Class C...................... 8.68 (14.65)(d) 21,615 2.43(b) 2.35(b) (2.07)(b) --
Class Y...................... 8.73 (14.16)(d) 4,677 1.32(b) 1.20(b) (0.92)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
196
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD GROWTH FUND
For the Year Ended October
31, 2003
Class A...................... $11.90 $(0.03) $ 3.32 $ -- $ -- $ --
Class B...................... 10.80 (0.07) 2.97 -- -- --
Class C...................... 10.80 (0.07) 2.97 -- -- --
Class H...................... 10.81 (0.14) 3.07 -- -- --
Class L...................... 11.91 (0.05) 3.40 -- -- --
Class M...................... 10.80 (0.14) 3.06 -- -- --
Class N...................... 10.80 (0.14) 3.06 -- -- --
Class Y...................... 11.94 (0.03) 3.40 -- -- --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 14.57 (0.02) (2.65) -- -- --
Class B...................... 13.28 (0.04) (2.44) -- -- --
Class C...................... 13.28 (0.04) (2.44) -- -- --
Class Y...................... 14.57 -- (2.63) -- -- --
For the Year Ended October
31, 2002
Class H...................... 13.02 (0.23) (1.98) -- -- --
Class L...................... 14.23 (0.03) (2.29) -- -- --
Class M...................... 13.00 (0.16) (2.04) -- -- --
Class N...................... 13.00 (0.26) (1.94) -- -- --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 13.83 (0.03) (0.78) -- -- --
Class L...................... 15.09 (0.01) (0.85) -- -- --
Class M...................... 13.81 (0.03) (0.78) -- -- --
Class N...................... 13.81 (0.03) (0.78) -- -- --
For the Year Ended August 31,
2001
Class H...................... 22.30 (0.21) (4.94) -- (3.32) --
Class L...................... 23.85 (0.05) (5.39) -- (3.32) --
Class M...................... 22.27 (0.21) (4.93) -- (3.32) --
Class N...................... 22.27 (0.21) (4.93) -- (3.32) --
For the Year Ended August 31,
2000
Class H...................... 21.78 (0.62) 6.49 -- (5.35) --
Class L...................... 22.81 (0.08) 6.47 -- (5.35) --
Class M...................... 21.77 (0.62) 6.47 -- (5.35) --
Class N...................... 21.76 (0.62) 6.48 -- (5.35) --
For the Year Ended August 31,
1999
Class H...................... 21.74 (0.43) 6.73 -- (6.26) --
Class L...................... 22.37 (0.03) 6.73 -- (6.26) --
Class M...................... 21.73 (0.43) 6.73 -- (6.26) --
Class N...................... 21.73 (0.44) 6.73 -- (6.26) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GROWTH FUND
For the Year Ended October
31, 2003
Class A...................... $15.19 27.65% $ 72,186 1.52% 1.45% (0.65)% 129%
Class B...................... 13.70 26.85 11,552 2.26 2.12 (1.35) --
Class C...................... 13.70 26.85 11,896 2.15 2.15 (1.36) --
Class H...................... 13.74 27.10 27,032 1.90 1.90 (1.09) --
Class L...................... 15.26 28.13 316,451 1.15 1.15 (0.34) --
Class M...................... 13.72 27.04 23,523 1.90 1.90 (1.09) --
Class N...................... 13.72 27.04 4,499 1.90 1.90 (1.09) --
Class Y...................... 15.31 28.22 1 0.96 0.96 (0.17) --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 11.90 (18.33)(d) 5,970 1.65(b) 1.45(b) (0.44)(b) 107
Class B...................... 10.80 (18.67)(d) 1,698 2.32(b) 2.15(b) (1.10)(b) --
Class C...................... 10.80 (18.68)(d) 1,480 2.18(b) 2.15(b) (1.13)(b) --
Class Y...................... 11.94 (18.05)(d) 1 0.90(b) 0.90(b) (0.01)(b) --
For the Year Ended October
31, 2002
Class H...................... 10.81 (16.95) 26,002 1.89 1.89 (1.03) 107
Class L...................... 11.91 (16.28) 274,683 1.14 1.14 (0.28) --
Class M...................... 10.80 (16.90) 21,478 1.89 1.89 (1.03) --
Class N...................... 10.80 (16.90) 4,340 1.89 1.89 (1.03) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 13.02 (5.86)(d) 37,750 1.86(b) 1.86(b) (1.09)(b) 13
Class L...................... 14.23 (5.70)(d) 385,620 1.11(b) 1.11(b) (0.34)(b) --
Class M...................... 13.00 (5.87)(d) 28,112 1.86(b) 1.86(b) (1.09)(b) --
Class N...................... 13.00 (5.87)(d) 6,911 1.86(b) 1.86(b) (1.09)(b) --
For the Year Ended August 31,
2001
Class H...................... 13.83 (25.59) 40,645 1.83 1.83 (0.91) 161
Class L...................... 15.09 (25.08) 416,544 1.08 1.08 (0.16) --
Class M...................... 13.81 (25.58) 29,777 1.83 1.83 (0.91) --
Class N...................... 13.81 (25.58) 7,557 1.83 1.83 (0.91) --
For the Year Ended August 31,
2000
Class H...................... 22.30 31.68 56,771 1.82 1.82 (1.04) 165
Class L...................... 23.85 32.70 615,473 1.07 1.07 (0.29) --
Class M...................... 22.27 31.59 38,264 1.82 1.82 (1.04) --
Class N...................... 22.27 31.66 10,932 1.82 1.82 (1.04) --
For the Year Ended August 31,
1999
Class H...................... 21.78 36.91 40,760 1.85 1.85 (0.83) 177
Class L...................... 22.81 37.88 551,551 1.10 1.10 (0.08) --
Class M...................... 21.77 36.94 24,847 1.85 1.85 (0.83) --
Class N...................... 21.76 36.87 5,715 1.85 1.85 (0.83) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
197
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD GROWTH
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... $15.31 $(0.07) $ 6.01 $ -- $ -- $ --
Class B...................... 13.71 (0.12) 5.32 -- -- --
Class C...................... 13.70 (0.09) 5.30 -- -- --
Class H...................... 13.73 (0.22) 5.48 -- -- --
Class L...................... 15.33 (0.10) 6.13 -- -- --
Class M...................... 13.71 (0.22) 5.48 -- -- --
Class N...................... 13.71 (0.22) 5.48 -- -- --
Class Y...................... 15.35 (0.07) 6.14 -- -- --
Class Z...................... 15.87 (0.06) 6.36 -- -- --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 19.80 (0.06) (4.43) -- -- --
Class B...................... 17.80 (0.10) (3.99) -- -- --
Class C...................... 17.80 (0.09) (4.01) -- -- --
Class Y...................... 19.80 (0.06) (4.39) -- -- --
For the Year Ended October
31, 2002
Class H...................... 17.36 (0.32) (3.10) -- (0.21) --
Class L...................... 19.21 (0.13) (3.54) -- (0.21) --
Class M...................... 17.33 (0.28) (3.13) -- (0.21) --
Class N...................... 17.34 (0.34) (3.08) -- (0.21) --
Class Z...................... 19.77 0.72 (4.41) -- (0.21) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 19.55 (0.11) (2.08) -- -- --
Class L...................... 21.62 (0.11) (2.30) -- -- --
Class M...................... 19.53 (0.12) (2.08) -- -- --
Class N...................... 19.53 (0.11) (2.08) -- -- --
Class Z...................... 22.24 (0.10) (2.37) -- -- --
For the Year Ended August 31,
2001
Class H...................... 42.35 (0.70) (13.55) -- (8.55) --
Class L...................... 45.45 (0.30) (14.98) -- (8.55) --
Class M...................... 42.31 (0.70) (13.53) -- (8.55) --
Class N...................... 42.32 (0.71) (13.53) -- (8.55) --
Class Z...................... 46.35 (0.15) (15.41) -- (8.55) --
For the Year Ended August 31,
2000
Class H...................... 29.28 (0.30) 20.22 -- (6.85) --
Class L...................... 30.80 (0.20) 21.70 -- (6.85) --
Class M...................... 29.26 (0.30) 20.20 -- (6.85) --
Class N...................... 29.26 (0.30) 20.21 -- (6.85) --
Class Z...................... 31.23 (0.16) 22.13 -- (6.85) --
For the Year Ended August 31,
1999
Class H...................... 28.86 (0.73) 10.72 -- (9.57) --
Class L...................... 29.78 (0.13) 10.72 -- (9.57) --
Class M...................... 28.85 (0.74) 10.72 -- (9.57) --
Class N...................... 28.85 (0.74) 10.72 -- (9.57) --
Class Z...................... 30.00 (0.06) 10.86 -- (9.57) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD GROWTH
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... $21.25 38.80% $ 17,149 1.49% 1.45% (0.88)% 158%
Class B...................... 18.91 37.93 4,470 2.22 2.15 (1.58) --
Class C...................... 18.91 38.03 5,238 2.10 2.10 (1.54) --
Class H...................... 18.99 38.31 45,121 1.85 1.85 (1.31) --
Class L...................... 21.36 39.34 517,892 1.10 1.10 (0.56) --
Class M...................... 18.97 38.36 24,361 1.85 1.85 (1.31) --
Class N...................... 18.97 38.36 4,773 1.85 1.85 (1.31) --
Class Y...................... 21.42 39.54 1 0.91 0.91 (0.38) --
Class Z...................... 22.17 39.70 32,485 0.85 0.85 (0.31) --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 15.31 (22.68)(d) 3,338 1.62(b) 1.45(b) (0.92)(b) 182
Class B...................... 13.71 (22.99)(d) 777 2.30(b) 2.15(b) (1.60)(b) --
Class C...................... 13.70 (23.05)(d) 892 2.09(b) 2.09(b) (1.56)(b) --
Class Y...................... 15.35 (22.47)(d) 1 0.89(b) 0.89(b) (0.44)(b) --
For the Year Ended October
31, 2002
Class H...................... 13.73 (19.99) 39,151 1.85 1.85 (1.42) 182
Class L...................... 15.33 (19.36) 412,454 1.10 1.10 (0.67) --
Class M...................... 13.71 (19.97) 20,163 1.85 1.85 (1.42) --
Class N...................... 13.71 (20.01) 4,172 1.85 1.85 (1.42) --
Class Z...................... 15.87 (18.90) 26,842 0.84 0.84 (0.43) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 17.36 (11.20)(d) 54,539 1.83(b) 1.83(b) (1.27)(b) 28
Class L...................... 19.21 (11.15)(d) 593,267 1.08(b) 1.08(b) (0.52)(b) --
Class M...................... 17.33 (11.26)(d) 27,013 1.83(b) 1.83(b) (1.27)(b) --
Class N...................... 17.34 (11.21)(d) 6,131 1.83(b) 1.83(b) (1.27)(b) --
Class Z...................... 19.77 (11.11)(d) 94,961 0.83(b) 0.83(b) (0.27)(b) --
For the Year Ended August 31,
2001
Class H...................... 19.55 (38.91) 61,764 1.79 1.79 (1.15) 198
Class L...................... 21.62 (38.44) 681,941 1.04 1.04 (0.40) --
Class M...................... 19.53 (38.90) 30,268 1.79 1.79 (1.15) --
Class N...................... 19.53 (38.92) 6,866 1.79 1.79 (1.15) --
Class Z...................... 22.24 (38.26) 110,221 0.79 0.79 (0.15) --
For the Year Ended August 31,
2000
Class H...................... 42.35 80.72 97,410 1.79 1.79 (1.29) 140
Class L...................... 45.45 82.06 1,203,376 1.04 1.04 (0.54) --
Class M...................... 42.31 80.70 43,250 1.79 1.79 (1.29) --
Class N...................... 42.32 80.74 10,352 1.79 1.79 (1.29) --
Class Z...................... 46.35 82.51 231,410 0.79 0.79 (0.29) --
For the Year Ended August 31,
1999
Class H...................... 29.28 39.00 50,547 1.81 1.81 (1.19) 166
Class L...................... 30.80 40.00 734,282 1.06 1.06 (0.44) --
Class M...................... 29.26 38.98 20,236 1.81 1.81 (1.19) --
Class N...................... 29.26 38.98 4,629 1.81 1.81 (1.19) --
Class Z...................... 31.23 40.49 119,548 0.81 0.81 (0.19) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
198
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 6.73 $ 0.60 $ 1.26 $(0.65) $ -- $ --
Class B...................... 6.72 0.57 1.24 (0.60) -- --
Class C...................... 6.72 0.55 1.26 (0.60) -- --
Class Y...................... 6.73 0.65 1.24 (0.68) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 8.45 0.82 (1.78) (0.76) -- --
Class B...................... 8.43 0.80 (1.81) (0.70) -- --
Class C...................... 8.43 0.72 (1.73) (0.70) -- --
Class Y...................... 8.48 0.34 (1.30) (0.79) -- --
For the Year Ended October
31, 2001
Class A...................... 9.06 0.78 (0.61) (0.78) -- --
Class B...................... 9.05 0.72 (0.62) (0.72) -- --
Class C...................... 9.05 0.72 (0.62) (0.72) -- --
Class Y...................... 9.10 0.83 (0.63) (0.82) -- --
For the Ten Months Ended
October 31, 2000
Class A...................... 9.75 0.66 (0.69) (0.66) -- --
Class B...................... 9.74 0.62 (0.71) (0.60) -- --
Class C...................... 9.74 0.61 (0.70) (0.60) -- --
Class Y...................... 9.78 0.69 (0.69) (0.68) -- --
For the Year Ended December
31, 1999
Class A...................... 10.15 0.75 (0.40) (0.75) -- --
Class B...................... 10.14 0.68 (0.40) (0.68) -- --
Class C...................... 10.14 0.68 (0.40) (0.68) -- --
Class Y...................... 10.16 0.78 (0.39) (0.77) -- --
From inception September 30,
1998, through December 31,
1998
Class A...................... 10.00 0.19 0.13 (0.17) -- --
Class B...................... 10.00 0.16 0.14 (0.16) -- --
Class C...................... 10.00 0.16 0.14 (0.16) -- --
Class Y...................... 10.00 0.21 0.13 (0.18) -- --
THE HARTFORD INCOME FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.00 0.52 0.54 (0.53) -- --
Class B...................... 10.00 0.44 0.54 (0.45) -- --
Class C...................... 10.00 0.44 0.56 (0.45) -- --
THE HARTFORD INFLATION PLUS
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.00 0.27 0.62 (0.26) -- --
Class B...................... 10.00 0.21 0.63 (0.20) -- --
Class C...................... 10.00 0.20 0.63 (0.20) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD HIGH YIELD FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 7.94 28.69% $ 213,377 1.49% 1.40% 7.98% 54%
Class B...................... 7.93 27.83 72,293 2.23 2.10 7.39 --
Class C...................... 7.93 27.84 77,968 2.10 2.10 7.31 --
Class Y...................... 7.94 29.27 1 1.69 0.95 8.70 --
For the Year Ended October
31, 2002(g)
Class A...................... 6.73 (12.16) 95,760 1.55 1.40 9.48 22
Class B...................... 6.72 (12.70) 44,359 2.24 2.10 8.78 --
Class C...................... 6.72 (12.65) 40,611 2.10 2.10 8.78 --
Class Y...................... 6.73 (12.01) 1 0.84 0.84 10.04 --
For the Year Ended October
31, 2001
Class A...................... 8.45 1.80 45,753 1.40 1.35 9.00 63
Class B...................... 8.43 0.99 16,922 2.08 2.08 8.28 --
Class C...................... 8.43 1.01 27,605 2.08 2.08 8.28 --
Class Y...................... 8.48 2.15 4,223 0.88 0.88 9.48 --
For the Ten Months Ended
October 31, 2000
Class A...................... 9.06 (0.35)(d) 23,214 1.38(b) 1.33(b) 8.55(b) 57
Class B...................... 9.05 (0.92)(d) 7,929 2.04(b) 2.04(b) 7.84(b) --
Class C...................... 9.05 (0.90)(d) 9,534 2.04(b) 2.04(b) 7.83(b) --
Class Y...................... 9.10 0.02(d) 2,955 0.89(b) 0.89(b) 8.99(b) --
For the Year Ended December
31, 1999
Class A...................... 9.75 3.47 17,465 1.41 1.36 7.74 53
Class B...................... 9.74 2.80 7,436 2.08 2.08 7.03 --
Class C...................... 9.74 2.81 8,573 2.09 2.09 7.01 --
Class Y...................... 9.78 3.98 2,314 0.90 0.90 8.20 --
From inception September 30,
1998, through December 31,
1998
Class A...................... 10.15 3.33(d) 8,507 1.58(b) 1.40(b) 7.06(b) 11
Class B...................... 10.14 3.09(d) 2,322 2.31(b) 2.10(b) 6.50(b) --
Class C...................... 10.14 3.08(d) 2,278 2.31(b) 2.10(b) 6.49(b) --
Class Y...................... 10.16 3.51(d) 1,034 1.17(b) 0.95(b) 7.48(b) --
THE HARTFORD INCOME FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.53 10.79 15,836 1.54(b) 1.00(b) 5.06(b) 124
Class B...................... 10.53 10.01 4,705 2.31(b) 1.70(b) 4.31(b) --
Class C...................... 10.55 10.22 5,050 2.17(b) 1.70(b) 4.28(b) --
THE HARTFORD INFLATION PLUS
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.63 9.02 142,992 1.34(b) 1.00(b) 2.63(b) 23
Class B...................... 10.64 8.41 67,986 2.09(b) 1.70(b) 1.98(b) --
Class C...................... 10.63 8.31 160,253 1.95(b) 1.70(b) 1.97(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
199
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD INTERNATIONAL
CAPITAL APPRECIATION FUND
For the Year Ended October
31, 2003
Class A...................... $ 6.93 $(0.02) $ 2.72 $(0.01) $ -- $ --
Class B...................... 6.86 (0.04) 2.64 -- -- --
Class C...................... 6.86 (0.04) 2.64 -- -- --
Class Y...................... 6.98 0.01 2.74 (0.04) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 7.62 0.02 (0.71) -- -- --
Class B...................... 7.59 (0.03) (0.70) -- -- --
Class C...................... 7.59 (0.03) (0.70) -- -- --
Class Y...................... 7.63 0.07 (0.72) -- -- --
From inception April 30,
2001, through October 31,
2001
Class A...................... 10.00 -- (2.38) -- -- --
Class B...................... 10.00 (0.03) (2.38) -- -- --
Class C...................... 10.00 (0.02) (2.39) -- -- --
Class Y...................... 10.00 0.02 (2.39) -- -- --
THE HARTFORD INTERNATIONAL
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... 8.03 0.02 1.61 -- -- --
Class B...................... 7.71 (0.04) 1.55 -- -- --
Class C...................... 7.67 (0.04) 1.53 -- -- --
Class Y...................... 8.19 0.06 1.66 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 9.33 0.03 (1.33) -- -- --
Class B...................... 9.04 (0.08) (1.25) -- -- --
Class C...................... 8.99 (0.05) (1.27) -- -- --
Class Y...................... 9.49 0.02 (1.32) -- -- --
For the Year Ended October
31, 2001
Class A...................... 13.03 0.05 (3.14) -- (0.61) --
Class B...................... 12.74 (0.04) (3.05) -- (0.61) --
Class C...................... 12.68 (0.03) (3.05) -- (0.61) --
Class Y...................... 13.19 0.09 (3.18) -- (0.61) --
For the Ten Months Ended
October 31, 2000
Class A...................... 15.43 0.08 (2.42) (0.01) (0.05) --
Class B...................... 15.17 0.01 (2.39) -- (0.05) --
Class C...................... 15.10 0.07 (2.44) -- (0.05) --
Class Y...................... 15.56 0.12 (2.43) (0.01) (0.05) --
For the Year Ended December
31, 1999
Class A...................... 11.89 0.06 4.46 (0.15) (0.83) --
Class B...................... 11.73 0.01 4.32 (0.06) (0.83) --
Class C...................... 11.74(f) (0.02)(f) 4.33(f) (0.12)(f) (0.83)(f) --
Class Y...................... 11.97 0.09 4.51 (0.18) (0.83) --
For the Year Ended December
31, 1998
Class A...................... 10.58 0.07 1.26 (0.02) -- --
Class B...................... 10.49 0.01 1.23 -- -- --
Class Y...................... 10.62 0.12 1.27 (0.04) -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 12.26(f) (0.01)(f) (0.48)(f) (0.03)(f) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD INTERNATIONAL
CAPITAL APPRECIATION FUND
For the Year Ended October
31, 2003
Class A...................... $ 9.62 38.95% $ 11,362 2.36% 1.65% (0.35)% 281%
Class B...................... 9.46 37.90 2,148 3.08 2.35 (1.04) --
Class C...................... 9.46 37.90 2,285 2.95 2.35 (1.01) --
Class Y...................... 9.69 39.57 292 1.80 1.20 0.16 --
For the Year Ended October
31, 2002(g)
Class A...................... 6.93 (9.06) 4,666 2.98 1.65 0.34 330
Class B...................... 6.86 (9.62) 813 3.69 2.35 (0.42) --
Class C...................... 6.86 (9.62) 826 3.55 2.35 (0.34) --
Class Y...................... 6.98 (8.52) 209 2.19 1.20 0.79 --
From inception April 30,
2001, through October 31,
2001
Class A...................... 7.62 (23.80)(d) 2,579 2.64(b) 1.65(b) (0.09)(b) 135
Class B...................... 7.59 (24.10)(d) 327 3.35(b) 2.35(b) (0.79)(b) --
Class C...................... 7.59 (24.10)(d) 316 3.32(b) 2.35(b) (0.79)(b) --
Class Y...................... 7.63 (23.70)(d) 229 2.10(b) 1.20(b) 0.36(b) --
THE HARTFORD INTERNATIONAL
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... 9.66 20.30 69,153 1.72 1.65 0.25 138
Class B...................... 9.22 19.58 20,459 2.45 2.35 (0.46) --
Class C...................... 9.16 19.43 14,790 2.35 2.35 (0.45) --
Class Y...................... 9.91 21.00 6,058 1.13 1.13 0.77 --
For the Year Ended October
31, 2002(g)
Class A...................... 8.03 (13.93) 66,775 1.82 1.65 0.34 175
Class B...................... 7.71 (14.71) 18,668 2.50 2.35 (0.79) --
Class C...................... 7.67 (14.68) 13,438 2.40 2.35 (0.64) --
Class Y...................... 8.19 (13.70) 4,543 1.13 1.13 0.31 --
For the Year Ended October
31, 2001
Class A...................... 9.33 (24.87) 72,326 1.61 1.56 0.47 158
Class B...................... 9.04 (25.46) 18,798 2.30 2.30 (0.28) --
Class C...................... 8.99 (25.51) 18,523 2.28 2.28 (0.25) --
Class Y...................... 9.49 (24.56) 17,092 1.06 1.06 0.97 --
For the Ten Months Ended
October 31, 2000
Class A...................... 13.03 (15.18)(d) 89,309 1.60(b) 1.55(b) 0.64(b) 121
Class B...................... 12.74 (15.70)(d) 25,872 2.29(b) 2.29(b) (0.09)(b) --
Class C...................... 12.68 (15.70)(d) 26,912 2.27(b) 2.27(b) (0.07)(b) --
Class Y...................... 13.19 (14.91)(d) 22,454 1.06(b) 1.06(b) 1.13(b) --
For the Year Ended December
31, 1999
Class A...................... 15.43 39.13 63,281 1.61 1.56 0.61 128
Class B...................... 15.17 38.11 22,835 2.26 2.26 (0.09) --
Class C...................... 15.10(f) 37.98 13,514 2.31 2.31 (0.13) --
Class Y...................... 15.56 39.63 25,403 1.11 1.11 1.07 --
For the Year Ended December
31, 1998
Class A...................... 11.89 12.53 32,014 1.89 1.65 0.69 149
Class B...................... 11.73 11.82 11,767 2.56 2.35 0.01 --
Class Y...................... 11.97 13.11 10,860 1.36 1.20 1.17 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 11.74(f) (4.05)(d) 1,379 2.83(b) 2.35(b) (0.71)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
200
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD INTERNATIONAL
SMALL COMPANY FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 8.37 $ 0.07 $ 4.51 $(0.02) $ -- $ --
Class B...................... 8.34 0.01 4.47 -- -- --
Class C...................... 8.28 0.01 4.43 -- -- --
Class Y...................... 8.43 0.09 4.56 (0.06) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 8.82 0.03 (0.48) -- -- --
Class B...................... 8.81 (0.02) (0.45) -- -- --
Class C...................... 8.78 (0.03) (0.47) -- -- --
Class Y...................... 8.84 0.09 (0.50) -- -- --
From inception April 30,
2001, through October 31,
2001
Class A...................... 10.00 0.04 (1.22) -- -- --
Class B...................... 10.00 -- (1.19) -- -- --
Class C...................... 10.00 0.01 (1.23) -- -- --
Class Y...................... 10.00 0.06 (1.22) -- -- --
THE HARTFORD MIDCAP FUND
For the Year Ended October
31, 2003
Class A...................... 15.50 (0.08) 5.16 -- -- --
Class B...................... 14.93 (0.20) 4.95 -- -- --
Class C...................... 14.94 (0.18) 4.95 -- -- --
Class Y...................... 15.88 -- 5.33 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 16.57 (0.10) (0.97) -- -- --
Class B...................... 16.07 (0.21) (0.93) -- -- --
Class C...................... 16.08 (0.21) (0.93) -- -- --
Class Y...................... 16.89 (0.02) (0.99) -- -- --
For the Year Ended October
31, 2001
Class A...................... 22.42 (0.03) (3.89) -- (1.93) --
Class B...................... 21.96 (0.09) (3.87) -- (1.93) --
Class C...................... 21.96 (0.12) (3.83) -- (1.93) --
Class Y...................... 22.72 -- (3.90) -- (1.93) --
For the Ten Months Ended
October 31, 2000
Class A...................... 17.78 (0.03) 5.37 -- (0.70) --
Class B...................... 17.54 (0.07) 5.19 -- (0.70) --
Class C...................... 17.53 (0.10) 5.23 -- (0.70) --
Class Y...................... 17.94 (0.01) 5.49 -- (0.70) --
For the Year Ended December
31, 1999
Class A...................... 12.30 (0.03) 6.08 -- (0.57) --
Class B...................... 12.22 (0.03) 5.92 -- (0.57) --
Class C...................... 12.21(f) (0.04)(f) 5.93(f) -- (0.57)(f) --
Class Y...................... 12.35 (0.02) 6.18 -- (0.57) --
For the Year Ended December
31, 1998
Class A...................... 10.00 (0.05) 2.35 -- -- --
Class B...................... 10.00 (0.10) 2.32 -- -- --
Class Y...................... 10.00 (0.02) 2.37 -- -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 11.23(f) (0.03)(f) 1.01(f) -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD INTERNATIONAL
SMALL COMPANY FUND
For the Year Ended October
31, 2003(g)
Class A...................... $12.93 54.76% $ 12,320 2.36% 1.65% 0.72% 166%
Class B...................... 12.82 53.72 2,237 3.09 2.35 0.03 --
Class C...................... 12.72 53.62 3,004 2.96 2.35 (0.03) --
Class Y...................... 13.02 55.47 25,154 1.64 1.20 0.93 --
For the Year Ended October
31, 2002(g)
Class A...................... 8.37 (5.10) 4,598 3.09 1.65 0.44 194
Class B...................... 8.34 (5.34) 926 3.81 2.35 (0.26) --
Class C...................... 8.28 (5.70) 859 3.53 2.35 (0.26) --
Class Y...................... 8.43 (4.64) 969 1.91 1.20 0.89 --
From inception April 30,
2001, through October 31,
2001
Class A...................... 8.82 (11.80)(d) 2,156 3.46(b) 1.65(b) 0.86(b) 128
Class B...................... 8.81 (11.90)(d) 275 4.12(b) 2.35(b) 0.16(b) --
Class C...................... 8.78 (12.20)(d) 425 4.12(b) 2.35(b) 0.16(b) --
Class Y...................... 8.84 (11.60)(d) 265 2.92(b) 1.20(b) 1.31(b) --
THE HARTFORD MIDCAP FUND
For the Year Ended October
31, 2003
Class A...................... 20.58 32.77 1,413,021 1.50 1.48 (0.58) 70
Class B...................... 19.68 31.82 424,959 2.23 2.20 (1.30) --
Class C...................... 19.71 31.93 477,891 2.10 2.10 (1.21) --
Class Y...................... 21.21 33.56 83,996 0.90 0.90 (0.01) --
For the Year Ended October
31, 2002(g)
Class A...................... 15.50 (6.46) 704,238 1.56 1.45 (0.65) 109
Class B...................... 14.93 (7.09) 266,650 2.24 2.15 (1.35) --
Class C...................... 14.94 (7.09) 275,305 2.12 2.12 (1.31) --
Class Y...................... 15.88 (5.98) 27,319 0.92 0.92 (0.08) --
For the Year Ended October
31, 2001
Class A...................... 16.57 (18.94) 612,750 1.43 1.38 (0.53) 116
Class B...................... 16.07 (19.58) 265,683 2.11 2.11 (1.28) --
Class C...................... 16.08 (19.53) 285,908 2.09 2.09 (1.24) --
Class Y...................... 16.89 (18.58) 52,576 0.88 0.88 (0.03) --
For the Ten Months Ended
October 31, 2000
Class A...................... 22.42 30.50(d) 425,686 1.48(b) 1.43(b) (0.80)(b) 110
Class B...................... 21.96 29.72(d) 185,830 2.15(b) 2.15(b) (1.52)(b) --
Class C...................... 21.96 29.72(d) 217,965 2.14(b) 2.14(b) (1.51)(b) --
Class Y...................... 22.72 31.01(d) 62,343 0.96(b) 0.96(b) (0.33)(b) --
For the Year Ended December
31, 1999
Class A...................... 17.78 50.17 118,194 1.51 1.45 (0.79) 123
Class B...................... 17.54 49.10 50,301 2.17 2.15 (1.48) --
Class C...................... 17.53(f) 49.22 48,310 2.22 2.15 (1.48) --
Class Y...................... 17.94 50.87 17,997 0.97 0.97 (0.31) --
For the Year Ended December
31, 1998
Class A...................... 12.30 23.12 24,294 1.62 1.45 (0.78) 139
Class B...................... 12.22 22.32 8,403 2.31 2.15 (1.48) --
Class Y...................... 12.35 23.62 3,750 1.12 1.00 (0.33) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 12.21(f) 8.70(d) 1,077 2.57(b) 2.15(b) (1.45)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
201
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 8.34 $(0.03) $ 3.01 $ -- $ -- $ --
Class B...................... 8.25 (0.09) 2.96 -- -- --
Class C...................... 8.25 (0.09) 2.97 -- -- --
Class Y...................... 8.39 0.02 3.05 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 8.48 (0.02) (0.12) -- -- --
Class B...................... 8.46 (0.09) (0.12) -- -- --
Class C...................... 8.46 (0.09) (0.12) -- -- --
Class Y...................... 8.50 0.01 (0.12) -- -- --
From inception April 30,
2001, through October 31,
2001
Class A...................... 10.00 (0.01) (1.51) -- -- --
Class B...................... 10.00 (0.02) (1.52) -- -- --
Class C...................... 10.00 (0.02) (1.52) -- -- --
Class Y...................... 10.00 (0.01) (1.49) -- -- --
THE HARTFORD MONEY MARKET FUND
For the Year Ended October
31, 2003
Class A...................... 1.00 0.003 -- (0.003) -- --
Class B...................... 1.00 -- -- -- -- --
Class C...................... 1.00 -- -- -- -- --
Class Y...................... 1.00 0.008 -- (0.008) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 1.00 0.011 -- (0.011) -- --
Class B...................... 1.00 0.004 -- (0.004) -- --
Class C...................... 1.00 0.004 -- (0.004) -- --
Class Y...................... 1.00 0.017 -- (0.017) -- --
For the Year Ended October
31, 2001
Class A...................... 1.00 0.04 -- (0.04) -- --
Class B...................... 1.00 0.03 -- (0.03) -- --
Class C...................... 1.00 0.03 -- (0.03) -- --
Class Y...................... 1.00 0.04 -- (0.04) -- --
For the Ten Months Ended
October 31, 2000
Class A...................... 1.00 0.04 -- (0.04) -- --
Class B...................... 1.00 0.04 -- (0.04) -- --
Class C...................... 1.00 0.04 -- (0.04) -- --
Class Y...................... 1.00 0.05 -- (0.05) -- --
For the Year Ended December
31, 1999
Class A...................... 1.00 0.04 -- (0.04) -- --
Class B...................... 1.00 0.04 -- (0.04) -- --
Class C...................... 1.00 0.04 -- (0.04) -- --
Class Y...................... 1.00 0.05 -- (0.05) -- --
For the Year Ended December
31, 1998
Class A...................... 1.00 0.05 -- (0.05) -- --
Class B...................... 1.00 0.04 -- (0.04) -- --
Class Y...................... 1.00 0.05 -- (0.05) -- --
From inception August 1,
1998, through December 31,
1998
Class C...................... 1.00 0.02 -- (0.02) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD MIDCAP VALUE FUND
For the Year Ended October
31, 2003(g)
Class A...................... $11.32 35.73% $ 155,614 1.60% 1.45% (0.35)% 56%
Class B...................... 11.12 34.79 42,407 2.33 2.15 (1.05) --
Class C...................... 11.13 34.91 49,566 2.20 2.15 (1.05) --
Class Y...................... 11.46 36.59 29 1.03 1.00 0.16 --
For the Year Ended October
31, 2002(g)
Class A...................... 8.34 (1.65) 94,532 1.68 1.45 (0.23) 40
Class B...................... 8.25 (2.48) 26,556 2.38 2.15 (0.95) --
Class C...................... 8.25 (2.48) 32,274 2.27 2.15 (0.96) --
Class Y...................... 8.39 (1.29) 252 1.02 1.00 0.23 --
From inception April 30,
2001, through October 31,
2001
Class A...................... 8.48 (15.20)(d) 26,812 1.69(b) 1.40(b) (0.20)(b) 28
Class B...................... 8.46 (15.40)(d) 7,158 2.38(b) 2.10(b) (0.90)(b) --
Class C...................... 8.46 (15.40)(d) 8,975 2.37(b) 2.10(b) (0.90)(b) --
Class Y...................... 8.50 (15.00)(d) 255 1.11(b) 0.95(b) 0.25(b) --
THE HARTFORD MONEY MARKET FUND
For the Year Ended October
31, 2003
Class A...................... 1.00 0.32 246,199 1.28 1.00 0.33 N/A
Class B...................... 1.00 0.00 67,732 2.01 1.33(h) 0.01 --
Class C...................... 1.00 0.00 29,955 1.89 1.36(h) 0.01 --
Class Y...................... 1.00 0.78 1,162 0.68 0.55 0.84 --
For the Year Ended October
31, 2002(g)
Class A...................... 1.00 1.09 302,862 1.30 1.00 1.06 N/A
Class B...................... 1.00 0.43 99,048 1.96 1.70 0.37 --
Class C...................... 1.00 0.42 65,894 1.82 1.70 0.37 --
Class Y...................... 1.00 1.72 2,815 0.62 0.55 1.51 --
For the Year Ended October
31, 2001
Class A...................... 1.00 4.02 86,748 1.19 1.00 3.63 N/A
Class B...................... 1.00 3.31 48,998 1.85 1.70 2.93 --
Class C...................... 1.00 3.31 53,873 1.82 1.70 2.93 --
Class Y...................... 1.00 4.49 33,309 0.61 0.55 4.08 --
For the Ten Months Ended
October 31, 2000
Class A...................... 1.00 4.54(d) 43,897 1.20(b) 1.00(b) 5.35(b) N/A
Class B...................... 1.00 3.94(d) 14,974 1.85(b) 1.70(b) 4.65(b) --
Class C...................... 1.00 3.93(d) 6,842 1.85(b) 1.70(b) 4.65(b) --
Class Y...................... 1.00 4.94(d) 18,325 0.65(b) 0.55(b) 5.80(b) --
For the Year Ended December
31, 1999
Class A...................... 1.00 4.32 44,663 1.15 1.00 4.25 N/A
Class B...................... 1.00 3.59 25,762 1.81 1.70 3.55 --
Class C...................... 1.00 3.59 9,904 1.84 1.70 3.56 --
Class Y...................... 1.00 4.80 8,953 0.64 0.55 4.70 --
For the Year Ended December
31, 1998
Class A...................... 1.00 4.69 29,424 1.25 1.00 4.57 N/A
Class B...................... 1.00 3.97 11,936 1.86 1.70 3.83 --
Class Y...................... 1.00 5.16 5,320 0.71 0.55 4.99 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 1.00 1.58(d) 1,203 2.02(b) 1.70(b) 3.57(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
202
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD SHORT DURATION
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... $10.00 $ 0.30 $ 0.14 $(0.30) $ -- $ --
Class B...................... 10.00 0.23 0.14 (0.23) -- --
Class C...................... 10.00 0.23 0.14 (0.23) -- --
THE HARTFORD SMALL COMPANY
FUND
For the Year Ended October
31, 2003
Class A...................... 9.93 (0.13) 4.48 -- -- --
Class B...................... 9.46 (0.20) 4.25 -- -- --
Class C...................... 9.47 (0.20) 4.25 -- -- --
Class Y...................... 10.27 (0.09) 4.65 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 12.00 (0.12) (1.95) -- -- --
Class B...................... 11.52 (0.20) (1.86) -- -- --
Class C...................... 11.53 (0.20) (1.86) -- -- --
Class Y...................... 12.35 (0.06) (2.02) -- -- --
For the Year Ended October
31, 2001
Class A...................... 18.08 (0.08) (5.41) -- (0.59) --
Class B...................... 17.49 (0.16) (5.22) -- (0.59) --
Class C...................... 17.51 (0.19) (5.20) -- (0.59) --
Class Y...................... 18.50 (0.02) (5.54) -- (0.59) --
For the Ten Months Ended
October 31, 2000
Class A...................... 20.48 (0.04) (1.47) -- (0.89) --
Class B...................... 19.96 (0.11) (1.47) -- (0.89) --
Class C...................... 19.97 (0.12) (1.45) -- (0.89) --
Class Y...................... 20.84 (0.02) (1.43) -- (0.89) --
For the Year Ended December
31, 1999
Class A...................... 13.31 (0.05) 8.52 -- (1.30) --
Class B...................... 13.09 (0.09) 8.26 -- (1.30) --
Class C...................... 13.09(f) (0.08)(f) 8.26(f) -- (1.30)(f) --
Class Y...................... 13.47 (0.03) 8.70 -- (1.30) --
For the Year Ended December
31, 1998
Class A...................... 12.16 (0.06) 1.33 -- (0.12) --
Class B...................... 12.04 (0.12) 1.29 -- (0.12) --
Class Y...................... 12.24 (0.03) 1.38 -- (0.12) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 12.49(f) (0.02)(f) 0.62(f) -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD SHORT DURATION
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... $10.14 4.48% $ 32,753 1.34(b)% 0.95(b)% 3.14(b)% 113%
Class B...................... 10.14 3.77 10,206 2.09(b) 1.65(b) 2.46(b) --
Class C...................... 10.14 3.77 30,660 1.96(b) 1.65(b) 2.44(b) --
THE HARTFORD SMALL COMPANY
FUND
For the Year Ended October
31, 2003
Class A...................... 14.28 43.81 141,327 1.63 1.45 (1.19) 179
Class B...................... 13.51 42.81 58,286 2.36 2.15 (1.89) --
Class C...................... 13.52 42.77 52,010 2.23 2.15 (1.88) --
Class Y...................... 14.83 44.40 14,472 1.05 1.00 (0.73) --
For the Year Ended October
31, 2002(g)
Class A...................... 9.93 (17.25) 96,302 1.64 1.45 (0.97) 226
Class B...................... 9.46 (17.88) 41,439 2.31 2.15 (1.67) --
Class C...................... 9.47 (17.87) 38,938 2.20 2.15 (1.65) --
Class Y...................... 10.27 (16.84) 10,834 1.00 1.00 (0.53) --
For the Year Ended October
31, 2001
Class A...................... 12.00 (31.36) 116,398 1.51 1.45 (0.64) 224
Class B...................... 11.52 (31.80) 49,738 2.19 2.15 (1.34) --
Class C...................... 11.53 (31.82) 51,234 2.17 2.15 (1.34) --
Class Y...................... 12.35 (31.02) 33,473 0.95 0.95 (0.14) --
For the Ten Months Ended
October 31, 2000
Class A...................... 18.08 (7.70)(d) 164,280 1.50(b) 1.45(b) (0.72)(b) 158
Class B...................... 17.49 (8.26)(d) 71,323 2.16(b) 2.15(b) (1.42)(b) --
Class C...................... 17.51 (8.21)(d) 77,337 2.16(b) 2.15(b) (1.42)(b) --
Class Y...................... 18.50 (7.27)(d) 46,205 0.96(b) 0.96(b) (0.23)(b) --
For the Year Ended December
31, 1999
Class A...................... 20.48 65.66 109,559 1.51 1.45 (0.92) 177
Class B...................... 19.96 64.46 53,358 2.15 2.15 (1.62) --
Class C...................... 19.97(f) 64.58 37,672 2.20 2.15 (1.61) --
Class Y...................... 20.84 66.37 39,536 0.99 0.99 (0.46) --
For the Year Ended December
31, 1998
Class A...................... 13.31 10.46 37,623 1.57 1.45 (0.79) 267
Class B...................... 13.09 9.73 18,345 2.22 2.15 (1.49) --
Class Y...................... 13.47 11.05 13,004 1.02 1.00 (0.33) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 13.09(f) 4.80(d) 2,765 2.46(b) 2.15(b) (1.49)(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
203
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD SMALLCAP GROWTH
FUND
For the Year Ended October
31, 2003
Class A...................... $15.57 $(0.09) $ 7.43 $ -- $ -- $ --
Class B...................... 14.36 (0.15) 6.78 -- -- --
Class C...................... 14.35 (0.16) 6.80 -- -- --
Class H...................... 14.37 (0.25) 6.90 -- -- --
Class L...................... 15.56 (0.15) 7.49 -- -- --
Class M...................... 14.36 (0.24) 6.88 -- -- --
Class N...................... 14.37 (0.24) 6.89 -- -- --
Class Y...................... 15.61 (0.08) 7.53 -- -- --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 20.21 (0.06) (4.58) -- -- --
Class B...................... 18.73 (0.08) (4.29) -- -- --
Class C...................... 18.73 (0.09) (4.29) -- -- --
Class Y...................... 20.21 (0.08) (4.52) -- -- --
For the Year Ended October
31, 2002
Class H...................... 17.71 (0.36) (2.65) -- (0.33) --
Class L...................... 19.04 (0.20) (2.95) -- (0.33) --
Class M...................... 17.70 (0.33) (2.68) -- (0.33) --
Class N...................... 17.71 (0.34) (2.67) -- (0.33) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 19.77 (0.04) (2.02) -- -- --
Class L...................... 21.24 (0.03) (2.17) -- -- --
Class M...................... 19.76 (0.04) (2.02) -- -- --
Class N...................... 19.77 (0.04) (2.02) -- -- --
For the Year Ended August 31,
2001
Class H...................... 57.72 (0.72) (24.24) -- (12.99) --
Class L...................... 60.44 (0.17) (26.04) -- (12.99) --
Class M...................... 57.66 (0.68) (24.23) -- (12.99) --
Class N...................... 57.71 (0.71) (24.24) -- (12.99) --
For the Year Ended August 31,
2000
Class H...................... 34.94 (0.47) 33.83 -- (10.58) --
Class L...................... 36.04 (0.44) 35.42 -- (10.58) --
Class M...................... 34.91 (0.47) 33.80 -- (10.58) --
Class N...................... 34.94 (0.47) 33.82 -- (10.58) --
For the Year Ended August 31,
1999
Class H...................... 25.92 (0.90) 18.42 -- (8.50) --
Class L...................... 26.42 (0.30) 18.42 -- (8.50) --
Class M...................... 25.90 (0.91) 18.42 -- (8.50) --
Class N...................... 25.92 (0.90) 18.42 -- (8.50) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD SMALLCAP GROWTH
FUND
For the Year Ended October
31, 2003
Class A...................... $22.91 47.14% $ 17,544 1.61% 1.45% (0.83)% 122%
Class B...................... 20.99 46.17 6,571 2.31 2.15 (1.53) --
Class C...................... 20.99 46.27 5,076 2.22 2.15 (1.53) --
Class H...................... 21.02 46.28 20,767 2.05 2.05 (1.40) --
Class L...................... 22.90 47.17 112,621 1.50 1.45 (0.80) --
Class M...................... 21.00 46.24 17,992 2.05 2.05 (1.40) --
Class N...................... 21.02 46.28 6,110 2.05 2.05 (1.40) --
Class Y...................... 23.06 47.72 1 1.11 1.10 (0.46) --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 15.57 (22.97)(d) 3,457 1.82(b) 1.45(b) (0.93)(b) 93
Class B...................... 14.36 (23.31)(d) 1,756 2.52(b) 2.15(b) (1.60)(b) --
Class C...................... 14.35 (23.37)(d) 1,432 2.38(b) 2.15(b) (1.60)(b) --
Class Y...................... 15.61 (22.77)(d) 1 1.06(b) 1.00(b) (0.60)(b) --
For the Year Ended October
31, 2002
Class H...................... 14.37 (17.41) 16,675 2.05 2.05 (1.65) 93
Class L...................... 15.56 (16.92) 86,414 1.50 1.45 (1.06) --
Class M...................... 14.36 (17.42) 13,714 2.05 2.05 (1.65) --
Class N...................... 14.37 (17.41) 4,757 2.05 2.05 (1.65) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 17.71 (10.42)(d) 23,059 2.05(b) 2.05(b) (1.57)(b) 17
Class L...................... 19.04 (10.36)(d) 121,440 1.50(b) 1.50(b) (1.02)(b) --
Class M...................... 17.70 (10.43)(d) 18,115 2.05(b) 2.05(b) (1.57)(b) --
Class N...................... 17.71 (10.42)(d) 6,495 2.05(b) 2.05(b) (1.57)(b) --
For the Year Ended August 31,
2001
Class H...................... 19.77 (50.88) 26,051 1.94 1.94 (1.12) 151
Class L...................... 21.24 (50.60) 138,175 1.39 1.39 (0.57) --
Class M...................... 19.76 (50.84) 20,522 1.94 1.94 (1.12) --
Class N...................... 19.77 (50.87) 7,278 1.94 1.94 (1.12) --
For the Year Ended August 31,
2000
Class H...................... 57.72 114.64 50,558 1.90 1.90 (1.49) 212
Class L...................... 60.44 115.84 314,326 1.35 1.35 (0.94) --
Class M...................... 57.66 114.66 38,246 1.90 1.90 (1.49) --
Class N...................... 57.71 114.60 14,300 1.90 1.90 (1.49) --
For the Year Ended August 31,
1999
Class H...................... 34.94 79.33 20,755 2.05 2.05 (1.63) 271
Class L...................... 36.04 80.27 147,346 1.50 1.50 (1.08) --
Class M...................... 34.91 79.35 11,426 2.05 2.05 (1.63) --
Class N...................... 34.94 79.33 3,612 2.05 2.05 (1.63) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
204
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD STOCK FUND
For the Year Ended October
31, 2003
Class A...................... $13.73 $ 0.04 $ 2.44 $ -- $ -- $ --
Class B...................... 13.10 (0.07) 2.32 -- -- --
Class C...................... 13.13 (0.05) 2.33 -- -- --
Class Y...................... 14.15 0.12 2.54 -- -- --
For the Year Ended October
31, 2002(g)
Class A...................... 16.89 -- (3.16) -- -- --
Class B...................... 16.24 (0.12) (3.02) -- -- --
Class C...................... 16.23 (0.08) (3.02) -- -- --
Class Y...................... 17.31 0.10 (3.26) -- -- --
For the Year Ended October
31, 2001
Class A...................... 23.40 0.02 (5.45) -- (1.08) --
Class B...................... 22.69 (0.09) (5.28) -- (1.08) --
Class C...................... 22.68 (0.08) (5.29) -- (1.08) --
Class Y...................... 23.85 0.09 (5.55) -- (1.08) --
For the Ten Months Ended
October 31, 2000
Class A...................... 23.64 (0.03) -- -- (0.21) --
Class B...................... 23.06 (0.12) (0.04) -- (0.21) --
Class C...................... 23.05 (0.11) (0.05) -- (0.21) --
Class Y...................... 23.99 0.05 0.02 -- (0.21) --
For the Year Ended December
31, 1999
Class A...................... 19.70 -- 4.36 -- (0.42) --
Class B...................... 19.36 (0.07) 4.19 -- (0.42) --
Class C...................... 19.36(f) (0.08)(f) 4.19(f) -- (0.42)(f) --
Class Y...................... 19.89 (0.01) 4.53 -- (0.42) --
For the Year Ended December
31, 1998
Class A...................... 15.16 (0.01) 4.75 -- (0.19) (0.01)
Class B...................... 15.01 (0.05) 4.60 -- (0.19) (0.01)
Class Y...................... 15.25 0.06 4.78 -- (0.19) (0.01)
From inception August 1,
1998, through December 31,
1998
Class C...................... 18.53(f) (0.02)(f) 1.22(f) -- (0.35)(f) (0.02)(f)
THE HARTFORD TAX-FREE
CALIFORNIA FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.00 0.37 (0.07) (0.37) -- --
Class B...................... 10.00 0.30 (0.08) (0.30) -- --
Class C...................... 10.00 0.30 (0.07) (0.30) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD STOCK FUND
For the Year Ended October
31, 2003
Class A...................... $16.21 18.06% $ 976,663 1.47% 1.45% 0.26% 37%
Class B...................... 15.35 17.18 376,437 2.20 2.18 (0.47) --
Class C...................... 15.41 17.36 311,874 2.07 2.07 (0.36) --
Class Y...................... 16.81 18.80 42,894 0.88 0.88 0.84 --
For the Year Ended October
31, 2002(g)
Class A...................... 13.73 (18.71) 880,371 1.47 1.42 (0.01) 48
Class B...................... 13.10 (19.34) 351,382 2.15 2.15 (0.74) --
Class C...................... 13.13 (19.10) 313,173 2.03 2.03 (0.62) --
Class Y...................... 14.15 (18.26) 34,116 0.85 0.85 0.58 --
For the Year Ended October
31, 2001
Class A...................... 16.89 (24.28) 1,031,549 1.33 1.28 0.05 38
Class B...................... 16.24 (24.80) 470,035 2.00 2.00 (0.67) --
Class C...................... 16.23 (24.81) 430,238 1.99 1.99 (0.66) --
Class Y...................... 17.31 (23.93) 27,004 0.79 0.79 0.54 --
For the Ten Months Ended
October 31, 2000
Class A...................... 23.40 (0.14)(d) 1,067,970 1.32(b) 1.27(b) (0.19)(b) 38
Class B...................... 22.69 (0.71)(d) 578,402 1.99(b) 1.99(b) (0.90)(b) --
Class C...................... 22.68 (0.71)(d) 492,996 1.98(b) 1.98(b) (0.90)(b) --
Class Y...................... 23.85 0.28(d) 32,123 0.80(b) 0.80(b) 0.28(b) --
For the Year Ended December
31, 1999
Class A...................... 23.64 22.31 752,763 1.38 1.33 (0.06) 34
Class B...................... 23.06 21.46 462,318 2.03 2.03 (0.75) --
Class C...................... 23.05(f) 21.40 305,566 2.07 2.07 (0.78) --
Class Y...................... 23.99 22.91 31,129 0.91 0.91 0.36 --
For the Year Ended December
31, 1998
Class A...................... 19.70 31.33 268,226 1.49 1.44 (0.07) 37
Class B...................... 19.36 30.38 185,205 2.16 2.15 (0.77) --
Class Y...................... 19.89 31.80 7,919 0.96 0.96 0.36 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 19.36(f) 6.60(d) 36,039 2.24(b) 2.15(b) (0.76)(b) --
THE HARTFORD TAX-FREE
CALIFORNIA FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 9.93 3.06 10,799 1.57(b) 0.95(b) 3.73(b) 64
Class B...................... 9.92 2.23 1,827 2.32(b) 1.65(b) 3.07(b) --
Class C...................... 9.93 2.34 1,230 2.18(b) 1.65(b) 3.02(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
205
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE TAX-FREE MINNESOTA FUND
For the Year Ended October
31, 2003(g)
Class A...................... $10.46 $ 0.38 $ 0.05 $(0.38) $(0.05) $ --
Class B...................... 10.47 0.31 0.04 (0.31) (0.05) --
Class C...................... 10.48 0.31 0.05 (0.31) (0.05) --
Class E...................... 10.53 0.41 0.05 (0.42) (0.05) --
Class H...................... 10.52 0.30 0.06 (0.32) (0.05) --
Class L...................... 10.49 0.39 0.05 (0.39) (0.05) --
Class M...................... 10.49 0.31 0.07 (0.32) (0.05) --
Class N...................... 10.51 0.31 0.05 (0.32) (0.05) --
Class Y...................... 10.49 0.40 0.06 (0.43) (0.05) --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 10.29 0.26 0.16 (0.25) -- --
Class B...................... 10.27 0.20 0.20 (0.20) -- --
Class C...................... 10.27 0.20 0.21 (0.20) -- --
Class Y...................... 10.29 0.29 0.20 (0.29) -- --
For the Year Ended October
31, 2002
Class E...................... 10.45 0.40 0.07 (0.39) -- --
Class H...................... 10.44 0.29 0.07 (0.28) -- --
Class L...................... 10.42 0.37 0.06 (0.36) -- --
Class M...................... 10.42 0.29 0.06 (0.28) -- --
Class N...................... 10.44 0.29 0.06 (0.28) -- --
For the One-Month Period
Ended October 31, 2001
Class E...................... 10.35 0.04 0.10 (0.04) -- --
Class H...................... 10.34 0.03 0.10 (0.03) -- --
Class L...................... 10.31 0.04 0.11 (0.04) -- --
Class M...................... 10.31 0.03 0.11 (0.03) -- --
Class N...................... 10.34 0.03 0.10 (0.03) -- --
For the Year Ended September
30, 2001
Class E...................... 9.91 0.48 0.45 (0.49) -- --
Class H...................... 9.91 0.38 0.44 (0.39) -- --
Class L...................... 9.88 0.45 0.45 (0.47) -- --
Class M...................... 9.88 0.38 0.44 (0.39) -- --
Class N...................... 9.90 0.38 0.45 (0.39) -- --
For the Year Ended September
30, 2000
Class E...................... 9.94 0.51 (0.04) (0.50) -- --
Class H...................... 9.93 0.42 (0.04) (0.40) -- --
Class L...................... 9.91 0.48 (0.04) (0.47) -- --
Class M...................... 9.90 0.42 (0.04) (0.40) -- --
Class N...................... 9.93 0.41 (0.04) (0.40) -- --
For the Year Ended September
30, 1999
Class E...................... 10.77 0.50 (0.67) (0.49) (0.17) --
Class H...................... 10.76 0.39 (0.67) (0.38) (0.17) --
Class L...................... 10.74 0.47 (0.67) (0.46) (0.17) --
Class M...................... 10.73 0.39 (0.67) (0.38) (0.17) --
Class N...................... 10.73 0.42 (0.67) (0.38) (0.17) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE TAX-FREE MINNESOTA FUND
For the Year Ended October
31, 2003(g)
Class A...................... $10.46 4.23% $ 3,242 1.50% 1.15% 3.58% 17%
Class B...................... 10.46 3.42 532 2.21 1.85 2.88 --
Class C...................... 10.48 3.51 414 2.09 1.85 2.88 --
Class E...................... 10.52 4.50 29,784 0.83 0.80 3.92 --
Class H...................... 10.51 3.46 155 1.81 1.78 2.89 --
Class L...................... 10.49 4.34 2,922 1.07 1.05 3.67 --
Class M...................... 10.50 3.67 454 1.82 1.80 2.92 --
Class N...................... 10.50 3.47 212 1.83 1.80 2.92 --
Class Y...................... 10.47 4.50 1 0.91 0.80 3.82 --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 10.46 4.16(d) 2,073 1.37(b) 1.15(b) 3.57(b) 36
Class B...................... 10.47 3.93(d) 238 2.09(b) 1.85(b) 2.73(b) --
Class C...................... 10.48 4.03(d) 304 1.92(b) 1.85(b) 2.79(b) --
Class Y...................... 10.49 4.92(d) 1 0.65(b) 0.65(b) 3.83(b) --
For the Year Ended October
31, 2002
Class E...................... 10.53 4.58 31,414 0.79 0.79 3.81 36
Class H...................... 10.52 3.56 577 1.81 1.81 2.81 --
Class L...................... 10.49 4.22 3,344 1.04 1.04 3.56 --
Class M...................... 10.49 3.46 562 1.79 1.79 2.81 --
Class N...................... 10.51 3.46 203 1.79 1.79 2.81 --
For the One-Month Period
Ended October 31, 2001
Class E...................... 10.45 1.33(d) 32,533 0.84(b) 0.84(b) 4.28(b) --
Class H...................... 10.44 1.25(d) 1,094 1.84(b) 1.84(b) 3.28(b) --
Class L...................... 10.42 1.41(d) 3,543 1.09(b) 1.09(b) 4.03(b) --
Class M...................... 10.42 1.35(d) 772 1.84(b) 1.84(b) 3.28(b) --
Class N...................... 10.44 1.25(d) 203 1.84(b) 1.84(b) 3.28(b) --
For the Year Ended September
30, 2001
Class E...................... 10.35 9.58 32,259 0.85 0.85 4.70 18
Class H...................... 10.34 8.43 1,086 1.85 1.85 3.70 --
Class L...................... 10.31 9.24 3,570 1.10 1.10 4.45 --
Class M...................... 10.31 8.45 789 1.85 1.85 3.70 --
Class N...................... 10.34 8.55 200 1.85 1.85 3.70 --
For the Year Ended September
30, 2000
Class E...................... 9.91 4.87 33,088 0.86 0.86 5.12 56
Class H...................... 9.91 3.95 1,076 1.86 1.86 4.12 --
Class L...................... 9.88 4.63 3,454 1.11 1.11 4.87 --
Class M...................... 9.88 3.96 829 1.86 1.86 4.12 --
Class N...................... 9.90 3.84 255 1.86 1.86 4.12 --
For the Year Ended September
30, 1999
Class E...................... 9.94 (1.71) 37,396 0.86 0.86 4.73 55
Class H...................... 9.93 (2.73) 1,401 1.86 1.86 3.73 --
Class L...................... 9.91 (1.94) 3,240 1.11 1.11 4.48 --
Class M...................... 9.90 (2.73) 860 1.86 1.86 3.73 --
Class N...................... 9.93 (2.45) 247 1.86 1.86 3.73 --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
206
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD TAX-FREE NATIONAL
FUND
For the Year Ended October
31, 2003
Class A...................... $11.28 $ 0.41 $ 0.04 $(0.41) $(0.25) $ --
Class B...................... 11.21 0.33 0.04 (0.33) (0.25) --
Class C...................... 11.23 0.33 0.04 (0.33) (0.25) --
Class E...................... 11.27 0.45 0.03 (0.45) (0.25) --
Class H...................... 11.24 0.36 0.02 (0.34) (0.25) --
Class L...................... 11.25 0.42 0.04 (0.42) (0.25) --
Class M...................... 11.24 0.34 0.04 (0.34) (0.25) --
Class N...................... 11.22 0.33 0.05 (0.34) (0.25) --
Class Y...................... 11.28 0.45 0.04 (0.46) (0.25) --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 10.99 0.26 0.30 (0.27) -- --
Class B...................... 10.97 0.20 0.25 (0.21) -- --
Class C...................... 10.97 0.20 0.27 (0.21) -- --
Class Y...................... 10.99 0.33 0.27 (0.31) -- --
For the Year Ended October
31, 2002
Class E...................... 11.18 0.41 0.12 (0.40) (0.04) --
Class H...................... 11.15 0.32 0.11 (0.30) (0.04) --
Class L...................... 11.16 0.39 0.12 (0.38) (0.04) --
Class M...................... 11.15 0.31 0.12 (0.30) (0.04) --
Class N...................... 11.13 0.31 0.12 (0.30) (0.04) --
For the One-Month Period
Ended October 31, 2001
Class E...................... 11.07 0.04 0.11 (0.04) -- --
Class H...................... 11.03 0.03 0.12 (0.03) -- --
Class L...................... 11.05 0.04 0.11 (0.04) -- --
Class M...................... 11.04 0.03 0.11 (0.03) -- --
Class N...................... 11.02 0.03 0.11 (0.03) -- --
For the Year Ended September
30, 2001
Class E...................... 10.52 0.49 0.56 (0.50) -- --
Class H...................... 10.49 0.37 0.56 (0.39) -- --
Class L...................... 10.50 0.46 0.56 (0.47) -- --
Class M...................... 10.49 0.38 0.56 (0.39) -- --
Class N...................... 10.48 0.38 0.56 (0.40) -- --
For the Year Ended September
30, 2000
Class E...................... 10.49 0.52 0.02 (0.51) -- --
Class H...................... 10.46 0.42 0.02 (0.41) -- --
Class L...................... 10.47 0.50 0.02 (0.49) -- --
Class M...................... 10.46 0.42 0.02 (0.41) -- --
Class N...................... 10.45 0.42 0.02 (0.41) -- --
For the Year Ended September
30, 1999
Class E...................... 11.38 0.50 (0.78) (0.49) (0.12) --
Class H...................... 11.35 0.39 (0.78) (0.38) (0.12) --
Class L...................... 11.37 0.47 (0.78) (0.47) (0.12) --
Class M...................... 11.36 0.38 (0.78) (0.38) (0.12) --
Class N...................... 11.34 0.39 (0.78) (0.38) (0.12) --
THE HARTFORD TAX-FREE NEW YORK
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.00 0.34 0.16 (0.35) -- --
Class B...................... 10.00 0.27 0.16 (0.28) -- --
Class C...................... 10.00 0.27 0.16 (0.28) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD TAX-FREE NATIONAL
FUND
For the Year Ended October
31, 2003
Class A...................... $11.07 4.18% $ 21,457 1.61% 1.15% 3.75% 35%
Class B...................... 11.00 3.43 6,598 2.33 1.85 3.05 --
Class C...................... 11.02 3.42 7,588 2.21 1.85 3.06 --
Class E...................... 11.05 4.39 33,998 0.92 0.85 4.00 --
Class H...................... 11.03 3.47 1,747 1.92 1.84 2.99 --
Class L...................... 11.04 4.24 7,454 1.18 1.10 3.76 --
Class M...................... 11.03 3.47 1,235 1.92 1.84 3.01 --
Class N...................... 11.01 3.48 607 1.93 1.85 3.01 --
Class Y...................... 11.06 4.53 1 1.17 0.85 4.06 --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 11.28 5.17(d) 12,192 1.63(b) 1.15(b) 3.31(b) 47
Class B...................... 11.21 4.18(d) 3,764 2.33(b) 1.85(b) 2.54(b) --
Class C...................... 11.23 4.37(d) 3,121 2.18(b) 1.85(b) 2.57(b) --
Class Y...................... 11.28 5.52(d) 1 0.63(b) 0.63(b) 4.15(b) --
For the Year Ended October
31, 2002
Class E...................... 11.27 4.93 39,423 0.94 0.94 3.70 47
Class H...................... 11.24 3.99 2,895 1.95 1.85 2.83 --
Class L...................... 11.25 4.72 7,360 1.19 1.15 3.50 --
Class M...................... 11.24 3.99 1,552 1.95 1.85 2.80 --
Class N...................... 11.22 3.99 600 1.95 1.85 2.80 --
For the One-Month Period
Ended October 31, 2001
Class E...................... 11.18 1.35(d) 42,441 0.95(b) 0.95(b) 4.21(b) --
Class H...................... 11.15 1.36(d) 4,679 1.95(b) 1.95(b) 3.21(b) --
Class L...................... 11.16 1.33(d) 8,029 1.20(b) 1.20(b) 3.96(b) --
Class M...................... 11.15 1.27(d) 1,723 1.95(b) 1.95(b) 3.21(b) --
Class N...................... 11.13 1.27(d) 538 1.95(b) 1.95(b) 3.21(b) --
For the Year Ended September
30, 2001
Class E...................... 11.07 10.18 42,331 0.97 0.97 4.49 28
Class H...................... 11.03 9.03 4,853 1.97 1.97 3.49 --
Class L...................... 11.05 9.91 7,892 1.22 1.22 4.24 --
Class M...................... 11.04 9.14 1,701 1.97 1.97 3.49 --
Class N...................... 11.02 9.06 469 1.97 1.97 3.49 --
For the Year Ended September
30, 2000
Class E...................... 10.52 5.33 42,212 0.96 0.96 4.96 64
Class H...................... 10.49 4.29 5,021 1.96 1.96 3.96 --
Class L...................... 10.50 5.09 6,509 1.21 1.21 4.71 --
Class M...................... 10.49 4.29 1,540 1.96 1.96 3.96 --
Class N...................... 10.48 4.30 289 1.96 1.96 3.96 --
For the Year Ended September
30, 1999
Class E...................... 10.49 (2.56) 47,140 0.94 0.94 4.56 89
Class H...................... 10.46 (3.52) 6,019 1.94 1.94 3.56 --
Class L...................... 10.47 (2.87) 8,247 1.19 1.19 4.31 --
Class M...................... 10.46 (3.61) 1,752 1.94 1.94 3.56 --
Class N...................... 10.45 (3.53) 548 1.94 1.94 3.56 --
THE HARTFORD TAX-FREE NEW YORK
FUND
From inception October 31,
2002, through October 31,
2003
Class A...................... 10.15 5.03 8,602 1.63(b) 0.95(b) 3.34(b) 54
Class B...................... 10.15 4.30 1,051 2.38(b) 1.65(b) 2.64(b) --
Class C...................... 10.15 4.30 1,393 2.26(b) 1.65(b) 2.67(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
207
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD TOTAL RETURN BOND
FUND
For the Year Ended October
31, 2003
Class A...................... $10.78 $ 0.49 $ 0.48 $(0.50) $(0.11) $ --
Class B...................... 10.73 0.42 0.47 (0.42) (0.11) --
Class C...................... 10.77 0.42 0.46 (0.42) (0.11) --
Class Y...................... 10.87 0.53 0.50 (0.55) (0.11) --
For the Year Ended October
31, 2002(g)
Class A...................... 10.90 0.47 -- (0.52) (0.07) --
Class B...................... 10.85 0.40 -- (0.45) (0.07) --
Class C...................... 10.89 0.40 -- (0.45) (0.07) --
Class Y...................... 10.99 0.45 0.08 (0.58) (0.07) --
For the Year Ended October
31, 2001
Class A...................... 10.14 0.55 0.73 (0.52) -- --
Class B...................... 10.10 0.48 0.72 (0.45) -- --
Class C...................... 10.14 0.49 0.71 (0.45) -- --
Class Y...................... 10.22 0.61 0.73 (0.57) -- --
For the Ten Months Ended
October 31, 2000
Class A...................... 9.93 0.50 0.19 (0.48) -- --
Class B...................... 9.90 0.43 0.20 (0.43) -- --
Class C...................... 9.93 0.44 0.20 (0.43) -- --
Class Y...................... 9.99 0.54 0.20 (0.51) -- --
For the Year Ended December
31, 1999
Class A...................... 10.76 0.54 (0.83) (0.52) (0.02) --
Class B...................... 10.72 0.47 (0.82) (0.45) (0.02) --
Class C...................... 10.76(f) 0.47(f) (0.82)(f) (0.46)(f) (0.02)(f) --
Class Y...................... 10.81 0.55 (0.80) (0.55) (0.02) --
For the Year Ended December
31, 1998
Class A...................... 10.61 0.54 0.23 (0.54) (0.08) --
Class B...................... 10.58 0.47 0.22 (0.47) (0.08) --
Class Y...................... 10.64 0.58 0.24 (0.57) (0.08) --
From inception August 1,
1998, through December 31,
1998
Class C...................... 10.70(f) 0.19(f) 0.15(f) (0.21)(f) (0.07)(f) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD TOTAL RETURN BOND
FUND
For the Year Ended October
31, 2003
Class A...................... $11.14 9.16% $ 268,655 1.40% 1.25% 3.39% 199%
Class B...................... 11.09 8.44 106,077 2.13 1.95 2.70 --
Class C...................... 11.12 8.31 110,214 2.01 1.95 2.71 --
Class Y...................... 11.24 9.68 60,125 0.81 0.80 3.82 --
For the Year Ended October
31, 2002(g)
Class A...................... 10.78 4.50 215,083 1.42 1.25 4.65 149
Class B...................... 10.73 3.77 98,028 2.10 1.95 3.92 --
Class C...................... 10.77 3.80 107,479 1.98 1.95 3.92 --
Class Y...................... 10.87 5.01 39,778 0.78 0.78 5.16 --
For the Year Ended October
31, 2001
Class A...................... 10.90 12.96 122,423 1.30 1.25 5.00 196
Class B...................... 10.85 12.12 55,999 1.96 1.95 4.30 --
Class C...................... 10.89 12.12 62,222 1.97 1.95 4.30 --
Class Y...................... 10.99 13.46 43,635 0.75 0.75 5.50 --
For the Ten Months Ended
October 31, 2000
Class A...................... 10.14 7.17(d) 37,290 1.29(b) 1.24(b) 5.88(b) 140
Class B...................... 10.10 6.48(d) 22,197 1.95(b) 1.95(b) 5.17(b) --
Class C...................... 10.14 6.55(d) 16,886 1.94(b) 1.94(b) 5.18(b) --
Class Y...................... 10.22 7.60(d) 30,334 0.77(b) 0.77(b) 6.34(b) --
For the Year Ended December
31, 1999
Class A...................... 9.93 (2.71) 57,320 1.29 1.24 5.32 113
Class B...................... 9.90 (3.30) 21,442 1.94 1.94 4.62 --
Class C...................... 9.93(f) (3.36) 18,136 1.97 1.95 4.62 --
Class Y...................... 9.99 (2.31) 28,052 0.80 0.80 5.77 --
For the Year Ended December
31, 1998
Class A...................... 10.76 7.48 47,143 1.32 1.25 5.04 135
Class B...................... 10.72 6.70 16,772 2.01 1.95 4.32 --
Class Y...................... 10.81 7.98 10,766 0.84 0.80 5.48 --
From inception August 1,
1998, through December 31,
1998
Class C...................... 10.76(f) 3.19(d) 5,420 2.13(b) 1.95(b) 4.13(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
208
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD U.S. GOVERNMENT
SECURITIES FUND
For the Year Ended October
31, 2003
Class A...................... $ 9.88 $ 0.41 $(0.21) $(0.41) $ -- $ --
Class B...................... 9.84 0.33 (0.19) (0.34) -- --
Class C...................... 9.84 0.33 (0.20) (0.34) -- --
Class E...................... 9.87 0.45 (0.20) (0.46) -- --
Class H...................... 9.83 0.35 (0.19) (0.36) -- --
Class L...................... 9.87 0.42 (0.19) (0.43) -- --
Class M...................... 9.84 0.35 (0.20) (0.36) -- --
Class N...................... 9.84 0.35 (0.20) (0.36) -- --
Class Y...................... 9.89 0.45 (0.20) (0.46) -- --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 9.50 0.26 0.38 (0.26) -- --
Class B...................... 9.46 0.21 0.38 (0.21) -- --
Class C...................... 9.46 0.21 0.38 (0.21) -- --
Class Y...................... 9.50 0.32 0.36 (0.29) -- --
For the Year Ended October
31, 2002
Class E...................... 9.67 0.42 0.19 (0.41) -- --
Class H...................... 9.64 0.32 0.19 (0.32) -- --
Class L...................... 9.67 0.39 0.20 (0.39) -- --
Class M...................... 9.64 0.32 0.20 (0.32) -- --
Class N...................... 9.64 0.32 0.20 (0.32) -- --
For the Three-Month Period
Ended October 31, 2001
Class E...................... 9.37 0.13 0.30 (0.13) -- --
Class H...................... 9.34 0.10 0.30 (0.10) -- --
Class L...................... 9.37 0.12 0.30 (0.12) -- --
Class M...................... 9.34 0.10 0.30 (0.10) -- --
Class N...................... 9.34 0.10 0.30 (0.10) -- --
For the Year Ended July 31,
2001
Class E...................... 8.86 0.54 0.52 (0.55) -- --
Class H...................... 8.83 0.45 0.52 (0.46) -- --
Class L...................... 8.86 0.52 0.52 (0.53) -- --
Class M...................... 8.83 0.45 0.52 (0.46) -- --
Class N...................... 8.83 0.45 0.52 (0.46) -- --
For the Year Ended July 31,
2000
Class E...................... 8.96 0.52 (0.10) (0.52) -- --
Class H...................... 8.94 0.43 (0.10) (0.44) -- --
Class L...................... 8.96 0.50 (0.10) (0.50) -- --
Class M...................... 8.94 0.43 (0.10) (0.44) -- --
Class N...................... 8.93 0.44 (0.10) (0.44) -- --
For the Year Ended July 31,
1999
Class E...................... 9.30 0.49 (0.34) (0.49) -- --
Class H...................... 9.28 0.40 (0.34) (0.40) -- --
Class L...................... 9.30 0.47 (0.34) (0.47) -- --
Class M...................... 9.28 0.40 (0.34) (0.40) -- --
Class N...................... 9.27 0.40 (0.34) (0.40) -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD U.S. GOVERNMENT
SECURITIES FUND
For the Year Ended October
31, 2003
Class A...................... $ 9.67 2.06% $ 65,337 1.48% 1.20% 4.11% 108%
Class B...................... 9.64 1.45 38,210 2.21 1.90 3.41 --
Class C...................... 9.63 1.34 26,626 2.07 1.90 3.43 --
Class E...................... 9.66 2.49 135,954 0.81 0.81 4.49 --
Class H...................... 9.63 1.57 6,283 1.80 1.80 3.50 --
Class L...................... 9.67 2.32 43,202 1.06 1.06 4.24 --
Class M...................... 9.63 1.47 4,588 1.80 1.80 3.50 --
Class N...................... 9.63 1.47 1,388 1.80 1.80 3.49 --
Class Y...................... 9.68 2.51 1 0.87 0.80 4.50 --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 9.88 6.87(d) 75,245 1.59(b) 1.20(b) 3.58(b) 218
Class B...................... 9.84 6.36(d) 39,276 2.28(b) 1.90(b) 2.87(b) --
Class C...................... 9.84 6.36(d) 40,708 2.11(b) 1.90(b) 2.86(b) --
Class Y...................... 9.89 7.32(d) 1 0.74(b) 0.74(b) 4.36(b) --
For the Year Ended October
31, 2002
Class E...................... 9.87 6.55 156,085 0.81 0.81 4.45 218
Class H...................... 9.83 5.41 9,319 1.81 1.81 3.45 --
Class L...................... 9.87 6.29 49,048 1.06 1.06 4.20 --
Class M...................... 9.84 5.51 6,660 1.81 1.81 3.44 --
Class N...................... 9.84 5.52 1,717 1.81 1.81 3.47 --
For the Three-Month Period
Ended October 31, 2001
Class E...................... 9.67 4.57(d) 187,712 0.79(b) 0.79(b) 5.25(b) 32
Class H...................... 9.64 4.31(d) 10,770 1.79(b) 1.79(b) 4.25(b) --
Class L...................... 9.67 4.50(d) 52,579 1.04(b) 1.04(b) 5.01(b) --
Class M...................... 9.64 4.32(d) 6,582 1.79(b) 1.79(b) 4.25(b) --
Class N...................... 9.64 4.31(d) 2,275 1.79(b) 1.79(b) 4.25(b) --
For the Year Ended July 31,
2001
Class E...................... 9.37 12.30 182,170 0.79 0.79 5.93 136
Class H...................... 9.34 11.24 10,078 1.79 1.79 4.92 --
Class L...................... 9.37 12.02 47,798 1.04 1.04 5.67 --
Class M...................... 9.34 11.24 5,284 1.79 1.79 4.92 --
Class N...................... 9.34 11.24 1,603 1.79 1.79 4.92 --
For the Year Ended July 31,
2000
Class E...................... 8.86 4.91 184,520 0.79 0.79 5.96 181
Class H...................... 8.83 3.79 8,345 1.79 1.79 4.96 --
Class L...................... 8.86 4.62 43,620 1.04 1.04 5.71 --
Class M...................... 8.83 3.79 4,264 1.79 1.79 4.96 --
Class N...................... 8.83 3.91 1,606 1.79 1.79 4.93 --
For the Year Ended July 31,
1999
Class E...................... 8.96 1.56 254,096 0.78 0.78 5.32 75
Class H...................... 8.94 0.53 10,262 1.78 1.78 4.32 --
Class L...................... 8.96 1.30 49,274 1.03 1.03 5.07 --
Class M...................... 8.94 0.53 4,703 1.78 1.78 4.32 --
Class N...................... 8.93 0.52 3,071 1.78 1.78 4.32 --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
209
HARTFORD MUTUAL FUNDS, INC. AND HARTFORD MUTUAL FUNDS II, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD VALUE FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 7.59 $ 0.08 $ 1.31 $(0.06) $ -- $ --
Class B...................... 7.51 0.03 1.29 -- -- --
Class C...................... 7.51 0.03 1.29 -- -- --
Class Y...................... 7.64 0.16 1.25 (0.10) -- --
For the Year Ended October
31, 2002(g)
Class A...................... 9.02 0.05 (1.43) -- (0.05) --
Class B...................... 8.99 (0.02) (1.41) -- (0.05) --
Class C...................... 8.99 (0.02) (1.41) -- (0.05) --
Class Y...................... 9.04 0.09 (1.44) -- (0.05) --
From inception April 30,
2001, through October 31,
2001
Class A...................... 10.00 0.01 (0.99) -- -- --
Class B...................... 10.00 -- (1.01) -- -- --
Class C...................... 10.00 -- (1.01) -- -- --
Class Y...................... 10.00 0.05 (1.01) -- -- --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD VALUE FUND
For the Year Ended October
31, 2003(g)
Class A...................... $ 8.92 18.43% $ 42,101 1.57% 1.45% 1.02% 35%
Class B...................... 8.83 17.58 7,305 2.30 2.15 0.32 --
Class C...................... 8.83 17.58 10,231 2.18 2.15 0.32 --
Class Y...................... 8.95 18.66 27 1.00 1.00 1.46 --
For the Year Ended October
31, 2002(g)
Class A...................... 7.59 (15.42) 30,010 1.63 1.45 0.69 35
Class B...................... 7.51 (16.03) 5,222 2.31 2.15 (0.02) --
Class C...................... 7.51 (16.03) 9,110 2.21 2.15 (0.04) --
Class Y...................... 7.64 (15.05) 230 0.98 0.98 1.09 --
From inception April 30,
2001, through October 31,
2001
Class A...................... 9.02 (9.80)(d) 13,728 1.66(b) 1.45(b) 0.53(b) 12
Class B...................... 8.99 (10.10)(d) 2,029 2.36(b) 2.15(b) (0.17)(b) --
Class C...................... 8.99 (10.10)(d) 4,769 2.34(b) 2.15(b) (0.17)(b) --
Class Y...................... 9.04 (9.60)(d) 271 1.09(b) 1.00(b) 0.98(b) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
See Notes to Financial Statements.
210
- --------------------------------------------------------------------------------
<Table>
<Caption>
SELECTED PER-SHARE DATA(A)
----------------------------------------------------------------------------------
NET REALIZED
AND DISTRIBUTIONS
NET ASSET NET UNREALIZED DIVIDENDS FROM
VALUE AT INVESTMENT GAIN FROM NET REALIZED DISTRIBUTIONS
BEGINNING INCOME (LOSS) ON INVESTMENT CAPITAL FROM
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS CAPITAL
--------- ---------- ------------ ---------- ------------- -------------
THE HARTFORD VALUE
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... $ 9.26 $(0.01) $ 2.90 $ -- $ -- $ --
Class B...................... 8.84 (0.04) 2.73 -- -- --
Class C...................... 8.85 (0.04) 2.72 -- -- --
Class H...................... 8.85 (0.08) 2.77 -- -- --
Class L...................... 9.26 (0.01) 2.90 -- -- --
Class M...................... 8.85 (0.08) 2.76 -- -- --
Class N...................... 8.85 (0.08) 2.77 -- -- --
Class Y...................... 9.30 0.01 2.91 -- -- --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 11.73 -- (2.47) -- -- --
Class B...................... 11.26 (0.02) (2.40) -- -- --
Class C...................... 11.26 (0.02) (2.39) -- -- --
Class Y...................... 11.73 0.05 (2.48) -- -- --
For the Year Ended October
31, 2002
Class H...................... 11.58 (0.11) (1.81) -- (0.81) --
Class L...................... 11.99 -- (1.92) -- (0.81) --
Class M...................... 11.57 (0.08) (1.83) -- (0.81) --
Class N...................... 11.57 (0.13) (1.78) -- (0.81) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 12.86 (0.02) (1.26) -- -- --
Class L...................... 13.30 -- (1.31) -- -- --
Class M...................... 12.85 (0.02) (1.26) -- -- --
Class N...................... 12.86 (0.03) (1.26) -- -- --
For the Year Ended August 31,
2001
Class H...................... 13.95 (0.07) 0.30 -- (1.32) --
Class L...................... 14.30 0.03 0.31 (0.02) (1.32) --
Class M...................... 13.94 (0.07) 0.30 -- (1.32) --
Class N...................... 13.95 (0.07) 0.30 -- (1.32) --
For the Year Ended August 31,
2000
Class H...................... 13.07 (0.08) 1.89 -- (0.93) --
Class L...................... 13.28 0.01 1.94 -- (0.93) --
Class M...................... 13.06 (0.08) 1.89 -- (0.93) --
Class N...................... 13.07 (0.08) 1.89 -- (0.93) --
For the Year Ended August 31,
1999
Class H...................... 11.72 (0.08) 2.73 -- (1.30) --
Class L...................... 11.85 0.05 2.73 (0.05) (1.30) --
Class M...................... 11.71 (0.08) 2.73 -- (1.30) --
Class N...................... 11.72 (0.08) 2.73 -- (1.30) --
For the Year Ended August 31,
1998
Class H...................... 13.39 (0.01) (0.30) -- (1.36) --
Class L...................... 13.51 0.09 (0.30) (0.09) (1.36) --
Class M...................... 13.39 (0.02) (0.30) -- (1.36) --
Class N...................... 13.39 (0.01) (0.30) -- (1.36) --
<Caption>
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF
EXPENSES EXPENSES NET
NET ASSET NET ASSETS TO AVERAGE TO AVERAGE INVESTMENT
VALUE AT AT END OF NET ASSETS NET ASSETS INCOME PORTFOLIO
END OF TOTAL PERIOD BEFORE AFTER TO AVERAGE TURNOVER
PERIOD RETURN(C) (000'S) WAIVERS WAIVERS NET ASSETS RATE(E)
--------- --------- ---------- ---------- ---------- ---------- ---------
THE HARTFORD VALUE
OPPORTUNITIES FUND
For the Year Ended October
31, 2003
Class A...................... $12.15 31.21% $ 5,917 1.92% 1.45% (0.10)% 57%
Class B...................... 11.53 30.43 1,932 2.63 2.15 (0.80) --
Class C...................... 11.53 30.28 1,613 2.51 2.15 (0.81) --
Class H...................... 11.54 30.40 6,526 2.26 2.15 (0.82) --
Class L...................... 12.15 31.21 22,701 1.51 1.45 (0.11) --
Class M...................... 11.53 30.28 8,015 2.26 2.15 (0.82) --
Class N...................... 11.54 30.40 1,989 2.26 2.15 (0.82) --
Class Y...................... 12.22 31.40 1 1.33 1.25 0.08 --
For the Period February 19,
2002 through October 31,
2002
Class A...................... 9.26 (21.06)(d) 2,600 1.92(b) 1.45(b) 0.04(b) 70
Class B...................... 8.84 (21.45)(d) 481 2.61(b) 2.15(b) (0.71)(b) --
Class C...................... 8.85 (21.41)(d) 430 2.48(b) 2.15(b) (0.75)(b) --
Class Y...................... 9.30 (20.75)(d) 1 1.13(b) 1.00(b) 0.49(b) --
For the Year Ended October
31, 2002
Class H...................... 8.85 (17.99) 5,634 2.17 2.15 (0.82) 70
Class L...................... 9.26 (17.34) 19,684 1.43 1.43 (0.11) --
Class M...................... 8.85 (17.92) 6,669 2.18 2.15 (0.82) --
Class N...................... 8.85 (17.92) 1,749 2.18 2.15 (0.83) --
For the Two-Month Period
Ended October 31, 2001
Class H...................... 11.58 (9.95)(d) 7,914 2.18(b) 2.18(b) (0.89)(b) 12
Class L...................... 11.99 (9.85)(d) 27,982 1.43(b) 1.43(b) (0.14)(b) --
Class M...................... 11.57 (9.96)(d) 8,700 2.18(b) 2.18(b) (0.89)(b) --
Class N...................... 11.57 (10.03)(d) 2,636 2.18(b) 2.18(b) (0.89)(b) --
For the Year Ended August 31,
2001
Class H...................... 12.86 1.53 8,967 2.16 2.16 (0.70) 177
Class L...................... 13.30 2.29 30,480 1.41 1.41 0.05 --
Class M...................... 12.85 1.53 9,668 2.16 2.16 (0.70) --
Class N...................... 12.86 1.53 2,935 2.16 2.16 (0.70) --
For the Year Ended August 31,
2000
Class H...................... 13.95 14.90 8,796 2.17 2.17 (0.61) 228
Class L...................... 14.30 15.76 39,975 1.42 1.42 0.14 --
Class M...................... 13.94 14.90 7,633 2.17 2.17 (0.61) --
Class N...................... 13.95 14.90 2,662 2.17 2.17 (0.61) --
For the Year Ended August 31,
1999
Class H...................... 13.07 23.18 8,045 2.23 2.23 (0.43) 266
Class L...................... 13.28 24.10 34,302 1.48 1.48 0.32 --
Class M...................... 13.06 23.20 6,662 2.23 2.23 (0.43) --
Class N...................... 13.07 23.18 2,486 2.23 2.23 (0.43) --
For the Year Ended August 31,
1998
Class H...................... 11.72 (3.24) 7,016 2.27 2.27 (0.20) 260
Class L...................... 11.85 (2.52) 22,449 1.52 1.52 0.55 --
Class M...................... 11.71 (3.33) 4,794 2.27 2.27 (0.20) --
Class N...................... 11.72 (3.24) 1,991 2.27 2.27 (0.20) --
</Table>
- ---------------
(a) Information presented relates to a share of capital share outstanding
throughout the indicated period.
(b) Annualized.
(c) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charge. Total return would be reduced if sales charges were taken into
account.
(d) Not annualized.
(e) Portfolio turnover rate is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(f) Per share amounts have been restated to reflect a reverse stock split for
Class C shares effective February 11, 1999.
(g) Per share amounts have been calculated using average shares outstanding
method.
(h) Expense ratio includes a practical waiver of 12b-1 fees.
211
REPORT OF INDEPENDENT AUDITORS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
- --------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of The Hartford Advisers Fund, The Hartford Capital
Appreciation Fund, The Hartford Disciplined Equity Fund, The Hartford Dividend
and Growth Fund, The Hartford Equity Income Fund, The Hartford Focus Fund, The
Hartford Global Communications Fund, The Hartford Global Financial Services
Fund, The Hartford Global Health Fund, The Hartford Global Leaders Fund, The
Hartford Global Technology Fund, The Hartford Growth Fund, The Hartford Growth
Opportunities Fund, The Hartford High Yield Fund, The Hartford Income Fund, The
Hartford Inflation Plus Fund, The Hartford International Capital Appreciation
Fund, The Hartford International Opportunities Fund, The Hartford International
Small Company Fund, The Hartford MidCap Fund, The Hartford MidCap Value Fund,
The Hartford Money Market Fund, The Hartford Short Duration Fund, The Hartford
Small Company Fund, The Hartford SmallCap Growth Fund, The Hartford Stock Fund,
The Hartford Tax-Free California Fund, The Hartford Tax-Free Minnesota Fund, The
Hartford Tax-Free National Fund, The Hartford Tax-Free New York Fund, The
Hartford Total Return Bond Fund, The Hartford U.S. Government Securities Fund,
The Hartford Value Fund and The Hartford Value Opportunities Fund (certain funds
within The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc.)
(the "Funds") as of October 31, 2003, and the related statements of operations,
statements of changes in net assets and financial highlights for each of the
periods indicated therein, except as noted below. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the
periods presented through October 31, 2001, were audited by other auditors whose
reports dated December 6, 2001 and December 7, 2001, expressed unqualified
opinions on those financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free from material misstatement. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights audited by us
as referred to above present fairly, in all material respects, the financial
position of the Funds listed above constituting The Hartford Mutual Funds, Inc.
and The Hartford Mutual Funds II, Inc. at October 31, 2003, the results of their
operations, the changes in their net assets and their financial highlights for
each of the periods indicated herein, in conformity with accounting principles
generally accepted in the United States.
/s/ ERNST & YOUNG LLP
Minneapolis, Minnesota
December 5, 2003
212
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The Boards of Directors ("Boards") are responsible for overall management of the
Funds. The Boards may exercise all of the Funds' powers, except those conferred
solely upon or reserved to the shareholders. The following table provides
information about the Funds' directors and officers. The business address for
all directors and officers is c/o Hartford Mutual Funds, P.O. Box 2999,
Hartford, CT 06104-2999, except for Tamara L. Fagely and Robert W. Beltz, Jr.,
whose business address is 500 Bielenberg Dr., Woodbury, MN 55125.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED DIRECTORS
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
LYNN S. BIRDSONG(4) Director 2003 2003 From 1979 to 2002, Mr. Birdsong was a 72 N/A
(age 57) managing director of Zurich Scudder
Investments, an investment management
firm. In 2003, Mr. Birdsong became an
independent director of the Atlantic
Whitehall Funds and The Japan Fund;
during his employment with Scudder, he
was an interested director of The Japan
Fund. Since 1981, Mr. Birdsong has been
a partner in Birdsong Company, an
advertising specialty firm. He is also a
Director of The Hartford Income Shares
Fund, Inc., Hartford Series Fund, Inc.
and Hartford HLS Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
WINIFRED E. COLEMAN Director 1996 2002 Ms. Coleman has served as President of 72 N/A
(age 71) Saint Joseph College since 1991 and
President of Cashel House, Ltd. (retail)
since 1985. She is also a Director of
The Hartford Income Shares Fund, Inc.,
Hartford Series Fund, Inc. and Hartford
HLS Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
DR. ROBERT M. GAVIN Director 2002 1986 Dr. Gavin is an educational consultant. 72 Dr. Gavin is a
(age 63) Prior to September 1, 2001, he was Director of Systems
President of Cranbrook Education & Computer
Community; and prior to July 1996, he Technology
was President of Macalester College, St. Corporation.
Paul, Minnesota. He is also a Director
of The Hartford Income Shares Fund,
Inc., Hartford Series Fund, Inc. and
Hartford HLS Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
DUANE E. HILL Director 2001 2002 Mr. Hill is Partner Emeritus and a 72 N/A
(age 58) founding partner of TSG Capital Group, a
private equity investment firm that
serves as sponsor and lead investor in
leveraged buyouts of middle market
companies. Mr. Hill is also a Partner of
TSG Ventures L.P., a private equity
investment company that invests
primarily in minority-owned small
businesses. He is also a Director of The
Hartford Income Shares Fund, Inc.,
Hartford Series Fund, Inc. and Hartford
HLS Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
PHILLIP O. PETERSON Director 2002 2000 Mr. Peterson is a mutual fund industry 72 N/A
(age 58) consultant. He was a partner of KPMG LLP
until July 1999. He is also a Director
of The Hartford Income Shares Fund,
Inc., Hartford Series Fund, Inc. and
Hartford HLS Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
213
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NON-INTERESTED DIRECTORS
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
MILLARD H. PRYOR, JR. Director 1996 2002 Mr. Pryor has served as Managing 72 Mr. Pryor is a
(age 70) Director of Pryor & Clark Company (real Director of Infodata
estate investment), Hartford, Systems, Inc.
Connecticut, since June 1992. He is also (software company)
a Director of The Hartford Income Shares and CompuDyne
Fund, Inc., Hartford Series Fund, Inc. Corporation
and Hartford HLS Series Fund II, Inc. (security products
and services) and
August Financial
Holding Company
(advisory services).
- ------------------------------------------------------------------------------------------------------------------------------------
JOHN K. SPRINGER(5) Director 1996 2002 Mr. Springer served as Chairman of N/A N/A
(age 72) Medspan, Inc. (health maintenance
organization) until March 2002. Until
his retirement in May 2003, Mr. Springer
served as a Director of The Hartford
Income Shares Fund, Inc., Hartford
Series Fund, Inc. and Hartford HLS
Series Fund II, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Term of Office: Each director and officer may serve until his or her
successor is elected and qualifies.
(2) The Hartford Mutual Funds, Inc.
(3) The Hartford Mutual Funds II, Inc.
(4) Elected May 13, 2003.
(5) Retired May 13, 2003.
214
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERESTED DIRECTORS AND OFFICERS
- ---------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ---------------------------------------------------------------------------------------------------------------------------------
THOMAS M. MARRA(4) Director and 2002 2002 Mr. Marra is President and Chief 72 Mr. Marra is a
(age 45) Chairman of Operating Officer of Hartford member of the Board
the Board Life, Inc. He is also a member of of Directors of The
the Board of Directors and a Hartford.
member of the Office of the
Chairman for The Hartford
Financial Services Group, Inc.
("The Hartford"), the parent
company of Hartford Life. Mr.
Marra was named President of
Hartford Life in 2001 and COO in
2000, and served as Director of
Hartford Life's Investment
Products Division from 1998 to
2000. He was head of the company's
Individual Life and Annuities
Division from 1994 to 1998 after
being promoted to Senior Vice
President in 1994 and to Executive
Vice President in 1996. Mr. Marra
is also a Managing Member and
President of Hartford Investment
Financial Services, LLC ("HIFSCO")
and HL Investment Advisors, LLC
("HL Advisors"). He is also a
Director and Chairman of the Board
of The Hartford Income Shares
Fund, Inc., Hartford Series Fund,
Inc. and Hartford HLS Series Fund
II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
LOWNDES A. SMITH(4) Director 1996 2002 Mr. Smith served as Vice Chairman 72 N/A
(age 64) of The Hartford from February 1997
to January 2002, as President and
Chief Executive Officer of
Hartford Life, Inc. from February
1997 to January 2002, and as
President and Chief Operating
Officer of The Hartford Life
Insurance Companies from January
1989 to January 2002. Mr. Smith is
also a Director of The Hartford
Income Shares Fund, Inc., Hartford
Series Fund, Inc. and Hartford HLS
Series Fund II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
215
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERESTED DIRECTORS AND OFFICERS
- ---------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ---------------------------------------------------------------------------------------------------------------------------------
DAVID M. ZNAMIEROWSKI(4) President and 1999 2001 Mr. Znamierowski currently serves 53 N/A
(age 43) Director(5) as President of Hartford
Investment Management Company
("Hartford Investment"), Senior
Vice President for Hartford Life,
Inc., and Senior Vice President
and Chief Investment Officer for
Hartford Life Insurance Company.
Mr. Znamierowski is also a
Managing Member and Senior Vice
President of HIFSCO and HL
Advisors. Mr. Znamierowski is
Group Senior Vice President and
Chief Investment Officer for The
Hartford. In addition, he serves
as President and Director of
Hartford Series Fund, Inc. and
President of The Hartford Income
Shares Fund, Inc. and Hartford HLS
Series Fund II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT W. BELTZ, JR. Vice President 2002 1993 Mr. Beltz currently serves as Vice N/A N/A
(age 54) President Securities Operations of
Hartford Administrative Services
Company ("HASCO"). Since December
2001, he has served as Assistant
Vice President of Hartford Life
Insurance Company. In addition, he
is a Vice President of The
Hartford Income Shares Fund, Inc.,
Hartford Series Fund, Inc. and
Hartford HLS Series Fund II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
KEVIN J. CARR Vice President 1996 2001 Mr. Carr has served as The N/A N/A
(age 49) and Secretary Hartford's Assistant General
Counsel since 1999, Counsel since
November 1996 and Associate
Counsel since November 1995. Mr.
Carr is also Vice President and
Assistant Secretary of HL Advisors
and HIFSCO and Assistant Secretary
of Hartford Investment. He is also
Vice President and Secretary of
The Hartford Income Shares Fund,
Inc., Hartford Series Fund, Inc.
and Hartford HLS Series Fund II,
Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
WILLIAM H. DAVISON, JR. Vice President 2002 2002 Mr. Davison is a Managing Director N/A N/A
(age 46) and Director of the Funds
Management Group of Hartford
Investment. Mr. Davison is also a
Senior Vice President of HIFSCO
and HL Advisors. In addition, he
serves as a Vice President of The
Hartford Income Shares Fund, Inc.,
Hartford Series Fund, Inc. and
Hartford HLS Series Fund II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
216
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERESTED DIRECTORS AND OFFICERS
- ---------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ---------------------------------------------------------------------------------------------------------------------------------
TAMARA L. FAGELY Vice 2002 1993 Ms. Fagely has been Vice President N/A N/A
(age 45) President, of HASCO since 1998. Prior to
Controller and 1998, she was Second Vice
Treasurer President of HASCO. Since December
2001, she has served as Assistant
Vice President of Hartford Life
Insurance Company. In addition,
she is Controller of HIFSCO and
Vice President, Controller and
Treasurer of The Hartford Income
Shares Fund, Inc. and Vice
President of Hartford Series Fund,
Inc. and Hartford HLS Series Fund
II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
BRUCE FERRIS Vice President 2002 2002 Mr. Ferris serves as Senior Vice N/A N/A
(age 48) President and a Director of Sales
and Marketing in the Investment
Products Division of Hartford Life
Insurance Company. He is also a
Managing Member of HL Advisors. In
addition, Mr. Ferris is Vice
President of The Hartford Income
Shares Fund, Inc., Hartford Series
Fund, Inc. and Hartford HLS Series
Fund II, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
MARY JANE FORTIN Vice President 2003 2003 Ms. Fortin is Senior Vice N/A N/A
(age 39)(6) President and Director of Mutual
Funds and 529 Programs for
Hartford Life. In addition, she is
a Vice President of The Hartford
Income Shares Fund, Inc., Hartford
Series Fund, Inc. and Hartford HLS
Series Fund II, Inc. Previously,
Ms. Fortin served as Senior Vice
President and Chief Accounting
Officer of Hartford Life. She
joined Hartford Life in 1997.
- ---------------------------------------------------------------------------------------------------------------------------------
GEORGE R. JAY Vice President 1996 2001 Mr. Jay serves as Assistant Vice N/A N/A
(age 51) President of Hartford Life
Insurance Company's Equity
Products Department. He is also
Controller of HL Advisors and Vice
President, Controller and
Treasurer of Hartford Series Fund,
Inc. and Hartford HLS Series Fund
II, Inc. In addition, he is Vice
President of The Hartford Income
Shares Fund, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
217
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INTERESTED DIRECTORS AND OFFICERS
- ---------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE(1) AND PORTFOLIOS IN
POSITION HELD LENGTH OF FUND COMPLEX OTHER
WITH THE TIME SERVED: PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME AND AGE COMPANIES MF(2) MFII(3) DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR
- ---------------------------------------------------------------------------------------------------------------------------------
RYAN JOHNSON(7) Vice President 2002 2002 Until October 2003 Mr. Johnson N/A N/A
(age 43) served as Senior Vice President
and a Director of Sales and
Marketing in the Investment
Products Division of Hartford Life
Insurance Company. He was also a
Managing Member of HL Advisors. In
addition, Mr. Johnson served as a
Vice President of The Hartford
Income Shares Fund, Inc., Hartford
Series Fund, Inc. and Hartford HLS
Series Fund II, Inc. He was
previously with Guardian Insurance
Company.
- ---------------------------------------------------------------------------------------------------------------------------------
STEPHEN T. JOYCE Vice President 2000 2001 Mr. Joyce currently serves as N/A N/A
(age 44) Senior Vice President and Director
of the Institutional Products
Group for Hartford Life Insurance
Company. Mr. Joyce is also a
Senior Vice President of HL
Advisors and a Vice President of
The Hartford Income Shares Fund,
Inc., Hartford Series Fund, Inc.
and Hartford HLS Series Fund II,
Inc. Previously he served as Vice
President (1997-1999) and
Assistant Vice President
(1994-1997) of Hartford Life
Insurance Company.
- ---------------------------------------------------------------------------------------------------------------------------------
DAVID N. LEVENSON Vice President 2000 2001 Mr. Levenson serves as Senior Vice N/A N/A
(age 37) President of Hartford Life
Insurance Company's Retail Product
Management Group and is
responsible for all retail product
management and profitability. Mr.
Levenson is also a Senior Vice
President of HIFSCO. In addition,
he serves as Vice President of The
Hartford Income Shares Fund, Inc.,
Hartford Series Fund, Inc. and
Hartford HLS Series Fund II, Inc.
Mr. Levenson joined The Hartford
in 1995.
- ---------------------------------------------------------------------------------------------------------------------------------
JOHN C. WALTERS Vice President 2000 2001 Mr. Walters serves as Executive N/A N/A
(age 41) Vice President and Director of the
Investment Products Division of
Hartford Life Insurance Company.
Mr. Walters is also a Managing
Member and Executive Vice
President of HIFSCO and HL
Advisors. In addition, he is a
Vice President of The Hartford
Income Shares Fund, Inc., Hartford
Series Fund, Inc. and Hartford HLS
Series Fund II, Inc. Previously,
Mr. Walters was with First Union
Securities.
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Term of Office: Each director and officer may serve until his or her
successor is elected and qualifies.
(2) The Hartford Mutual Funds, Inc.
218
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
DIRECTOR AND OFFICER INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
(3) The Hartford Mutual Funds II, Inc.
(4) "Interested person" of each Company as defined in the 1940 Act because of
the person's affiliation with or equity ownership of Hartford Investment
Financial Services, LLC or affiliated companies.
(5) Director of The Hartford Mutual Funds, Inc.
(6) Elected May 13, 2003.
(7) Resigned October 9, 2003.
The Statement of Additional Information (SAI) includes additional information
about fund directors and is available upon request without charge by calling
1-888-843-7824 or writing:
The Hartford Mutual Funds
P.O. Box 64387
St. Paul, MN 55164-0387
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling 888-843-7824 and (2) on the Securities and
Exchange Commission's website at http:www.sec.gov.
219
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The information set forth below is for the fund's fiscal year as required by
federal tax law. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes which may include distributions of two fiscal
years of the fund. Accordingly, the information needed by shareholders for
income tax purposes will be sent to them in early 2004. Shareholders may wish to
consult a tax advisor on how to report distributions for state and local
purposes.
Advisers Fund, Dividend and Growth Fund, Global Financial Services Fund and
Value Fund paid income distributions, taxable as dividend income, of which
88.49%, 100.00%, 100.00% and 100.00%, respectively, qualified for deduction by
corporations.
The income received from federal obligations is as follows:
<Table>
<Caption>
ADVISERS INCOME INFLATION SHORT TOTAL RETURN U.S. GOVERNMENT
FUND FUND PLUS FUND DURATION FUND BOND FUND SECURITIES FUND
-------- ------- --------- ------------- ------------ ---------------
U.S. Treasury............... 12.53% 10.47% 97.26% 10.06% 0.23% 10.78%
Other Direct Federal
Obligations............... 0.00% 0.00% 0.00% 0.27% 0.00% 3.62%
------- ------- ------- ------- ------- -------
Total Direct Federal
Obligations............. 12.53% 10.47% 97.26% 10.33% 0.23% 14.40%
Other Securities.......... 87.47% 89.53% 2.74% 89.67% 99.77% 85.60%
------- ------- ------- ------- ------- -------
Total....................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
------- ------- ------- ------- ------- -------
</Table>
For the fiscal year ended October 31, 2003, certain dividends paid by the Funds
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate
ordinary distributions declared as taxed at a maximum rate of 15%, up to a
maximum amount as follows:
<Table>
Advisers Fund............................................... $19,406
Dividend and Growth Fund.................................... 8,698
</Table>
Complete information will be computed and reported in conjunction with your 2003
Form 1099-DIV. Detailed below are the per share distributions made for the
fiscal year ended October 31, 2003.
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
ADVISERS FUND
Income.............. 12/23/2002 0.049 0.028 0.032 0.069
Income.............. 3/26/2003 0.052 0.030 0.031 0.064
Income.............. 6/25/2003 0.045 0.020 0.024 0.062
Income.............. 9/25/2003 0.043 0.017 0.020 0.063
----- ----- ----- -----
Total Income
Distributions... 0.189 0.095 0.107 0.258
----- ----- ----- -----
DIVIDEND AND GROWTH
FUND
Income.............. 12/23/2002 0.025 0.008 0.009 0.037
Income.............. 3/26/2003 0.033 0.008 0.010 0.053
Income.............. 6/25/2003 0.036 0.008 0.013 0.062
Income.............. 9/25/2003 0.034 0.005 0.011 0.058
----- ----- ----- -----
Total Income
Distributions... 0.128 0.029 0.043 0.210
----- ----- ----- -----
GLOBAL FINANCIAL
SERVICES FUND
Income.............. 12/23/2002 0.037 0.076
----- -----
GLOBAL HEALTH FUND
Short-Term Capital
Gain.............. 11/11/2002 0.111 0.111 0.111 0.111
Long-Term Capital
Gain.............. 11/11/2002 0.188 0.188 0.188 0.188
----- ----- ----- -----
Total
Distributions... 0.299 0.299 0.299 0.299
----- ----- ----- -----
</Table>
220
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
HIGH YIELD FUND
Income.............. 11/25/2002 0.067 0.063 0.063 0.070
Income.............. 12/23/2002 0.072 0.068 0.068 0.075
Income.............. 1/28/2003 0.059 0.055 0.055 0.062
Income.............. 2/25/2003 0.057 0.053 0.053 0.060
Income.............. 3/26/2003 0.058 0.054 0.054 0.061
Income.............. 4/25/2003 0.054 0.050 0.050 0.057
Income.............. 5/27/2003 0.048 0.043 0.043 0.051
Income.............. 6/25/2003 0.051 0.046 0.046 0.053
Income.............. 7/28/2003 0.048 0.043 0.043 0.051
Income.............. 8/26/2003 0.049 0.044 0.044 0.051
Income.............. 9/25/2003 0.047 0.042 0.042 0.050
Income.............. 10/28/2003 0.040 0.035 0.036 0.043
----- ----- ----- -----
Total Income
Distributions... 0.650 0.596 0.597 0.684
----- ----- ----- -----
INCOME FUND
Income.............. 11/25/2002 0.027 0.022 0.022
Income.............. 12/23/2002 0.055 0.048 0.048
Income.............. 1/28/2003 0.046 0.040 0.040
Income.............. 2/25/2003 0.046 0.040 0.040
Income.............. 3/26/2003 0.046 0.040 0.040
Income.............. 4/25/2003 0.050 0.044 0.044
Income.............. 5/27/2003 0.048 0.042 0.042
Income.............. 6/25/2003 0.042 0.036 0.036
Income.............. 7/28/2003 0.040 0.033 0.033
Income.............. 8/26/2003 0.040 0.034 0.034
Income.............. 9/25/2003 0.041 0.035 0.035
Income.............. 10/28/2003 0.047 0.041 0.041
----- ----- -----
Total Income
Distributions... 0.528 0.455 0.455
----- ----- -----
INFLATION PLUS FUND
Income.............. 11/25/2002 0.017 0.012 0.012
Income.............. 12/23/2002 0.018 0.015 0.015
Income.............. 1/28/2003 0.019 0.013 0.013
Income.............. 2/25/2003 0.020 0.014 0.014
Income.............. 3/26/2003 0.041 0.035 0.035
Income.............. 4/25/2003 0.043 0.037 0.037
Income.............. 5/27/2003 0.025 0.018 0.018
Income.............. 6/25/2003 0.007 0.001 0.001
Income.............. 7/28/2003 0.011 0.005 0.005
Income.............. 8/26/2003 0.015 0.009 0.009
Income.............. 9/25/2003 0.026 0.020 0.020
Income.............. 10/28/2003 0.022 0.016 0.016
----- ----- -----
Total Income
Distributions... 0.264 0.195 0.195
----- ----- -----
INTERNATIONAL CAPITAL
APPRECIATION FUND
Income.............. 12/23/2002 0.007 0.037
----- -----
INTERNATIONAL SMALL COMPANY FUND
Income.............. 12/23/2002 0.016 0.057
----- -----
</Table>
221
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
SHORT DURATION FUND
Income.............. 11/25/2002 0.015 0.011 0.011
Income.............. 12/23/2002 0.027 0.021 0.021
Income.............. 1/28/2003 0.024 0.018 0.018
Income.............. 2/25/2003 0.025 0.019 0.019
Income.............. 3/26/2003 0.028 0.023 0.023
Income.............. 4/25/2003 0.032 0.026 0.026
Income.............. 5/27/2003 0.029 0.023 0.023
Income.............. 6/25/2003 0.023 0.017 0.017
Income.............. 7/28/2003 0.024 0.018 0.018
Income.............. 8/26/2003 0.024 0.019 0.019
Income.............. 9/25/2003 0.024 0.018 0.018
Income.............. 10/28/2003 0.028 0.022 0.022
----- ----- -----
Total Income
Distributions... 0.303 0.235 0.235
----- ----- -----
TAX-FREE CALIFORNIA
FUND*
Income.............. 11/25/2002 0.013 0.008 0.008
Income.............. 12/23/2002 0.032 0.025 0.025
Income.............. 1/28/2003 0.027 0.021 0.021
Income.............. 2/25/2003 0.032 0.026 0.026
Income.............. 3/26/2003 0.031 0.025 0.025
Income.............. 4/25/2003 0.030 0.024 0.024
Income.............. 5/27/2003 0.030 0.024 0.024
Income.............. 6/25/2003 0.032 0.026 0.026
Income.............. 7/28/2003 0.034 0.029 0.029
Income.............. 8/26/2003 0.035 0.029 0.029
Income.............. 9/25/2003 0.033 0.028 0.028
Income.............. 10/28/2003 0.043 0.037 0.037
----- ----- -----
Total Income
Distributions... 0.372 0.302 0.302
----- ----- -----
TAX-FREE MINNESOTA
FUND*
Long-Term Capital
Gain.............. 11/11/2002 0.053 0.053 0.053 0.053 0.053 0.053 0.053 0.053 0.053
----- ----- ----- ----- ----- ----- ----- ----- -----
Income.............. 11/25/2002 0.033 0.028 0.028 0.037 0.028 0.034 0.028 0.028 0.038
Income.............. 12/23/2002 0.032 0.026 0.026 0.035 0.026 0.033 0.026 0.026 0.036
Income.............. 1/28/2003 0.031 0.025 0.025 0.034 0.025 0.032 0.025 0.025 0.035
Income.............. 2/25/2003 0.029 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.033
Income.............. 3/26/2003 0.031 0.025 0.025 0.034 0.026 0.032 0.026 0.026 0.035
Income.............. 4/25/2003 0.033 0.027 0.027 0.036 0.028 0.034 0.028 0.028 0.037
Income.............. 5/27/2003 0.031 0.024 0.024 0.035 0.025 0.032 0.025 0.025 0.035
Income.............. 6/25/2003 0.031 0.025 0.025 0.035 0.026 0.033 0.026 0.026 0.035
Income.............. 7/28/2003 0.032 0.026 0.026 0.036 0.027 0.033 0.027 0.027 0.036
Income.............. 8/26/2003 0.034 0.028 0.028 0.037 0.028 0.035 0.028 0.028 0.038
Income.............. 9/25/2003 0.033 0.027 0.027 0.036 0.027 0.034 0.027 0.027 0.036
Income.............. 10/28/2003 0.032 0.026 0.026 0.035 0.026 0.033 0.026 0.026 0.036
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions... 0.382 0.310 0.310 0.422 0.316 0.395 0.316 0.316 0.430
----- ----- ----- ----- ----- ----- ----- ----- -----
* Ordinary distributions from the Tax-Free California and Tax-Free Minnesota were exempt from federal income taxation for
non-corporate shareholders.
</Table>
222
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y CLASS Z
- ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TAX-FREE NATIONAL
FUND*
Long-Term Capital
Gain.............. 11/11/2002 0.253 0.253 0.253 0.253 0.253 0.253 0.253 0.253 0.253
----- ----- ----- ----- ----- ----- ----- ----- -----
Income.............. 11/25/2002 0.030 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.034
Income.............. 12/23/2002 0.034 0.027 0.027 0.036 0.027 0.034 0.027 0.027 0.038
Income.............. 1/28/2003 0.033 0.026 0.026 0.036 0.027 0.034 0.027 0.027 0.037
Income.............. 2/25/2003 0.032 0.025 0.025 0.034 0.025 0.032 0.025 0.025 0.036
Income.............. 3/26/2003 0.034 0.027 0.027 0.037 0.028 0.034 0.028 0.028 0.038
Income.............. 4/25/2003 0.036 0.029 0.029 0.039 0.030 0.037 0.030 0.030 0.040
Income.............. 5/27/2003 0.034 0.028 0.028 0.038 0.028 0.035 0.028 0.028 0.040
Income.............. 6/25/2003 0.034 0.027 0.027 0.037 0.027 0.035 0.027 0.027 0.038
Income.............. 7/28/2003 0.037 0.029 0.029 0.039 0.030 0.037 0.030 0.030 0.040
Income.............. 8/26/2003 0.037 0.030 0.030 0.040 0.031 0.037 0.031 0.031 0.041
Income.............. 9/25/2003 0.036 0.030 0.030 0.039 0.030 0.037 0.030 0.030 0.040
Income.............. 10/28/2003 0.037 0.030 0.030 0.040 0.030 0.037 0.030 0.030 0.040
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions... 0.414 0.331 0.331 0.447 0.337 0.419 0.337 0.337 0.462
----- ----- ----- ----- ----- ----- ----- ----- -----
TAX-FREE NEW YORK
FUND*
Income.............. 11/25/2002 0.010 0.005 0.005
Income.............. 12/23/2002 0.031 0.024 0.024
Income.............. 1/28/2003 0.024 0.019 0.019
Income.............. 2/25/2003 0.028 0.022 0.022
Income.............. 3/26/2003 0.029 0.023 0.023
Income.............. 4/25/2003 0.030 0.024 0.024
Income.............. 5/27/2003 0.030 0.024 0.024
Income.............. 6/25/2003 0.030 0.024 0.024
Income.............. 7/28/2003 0.031 0.025 0.025
Income.............. 8/26/2003 0.032 0.026 0.026
Income.............. 9/25/2003 0.031 0.025 0.025
Income.............. 10/28/2003 0.042 0.036 0.036
----- ----- -----
Total Income
Distributions... 0.348 0.277 0.277
----- ----- -----
TOTAL RETURN BOND
FUND
Short-Term Capital
Gain.............. 11/11/2002 0.083 0.083 0.083 0.083
Long-Term Capital
Gain.............. 11/11/2002 0.025 0.025 0.025 0.025
----- ----- ----- -----
Total Capital Gain
Distributions..... 0.108 0.108 0.108 0.108
----- ----- ----- -----
Income.............. 11/25/2002 0.038 0.032 0.032 0.038
Income.............. 12/23/2002 0.052 0.045 0.045 0.056
Income.............. 1/28/2003 0.051 0.044 0.044 0.056
Income.............. 2/25/2003 0.047 0.040 0.040 0.051
Income.............. 3/26/2003 0.045 0.038 0.038 0.049
Income.............. 4/25/2003 0.041 0.034 0.034 0.045
Income.............. 5/27/2003 0.038 0.032 0.032 0.043
Income.............. 6/25/2003 0.040 0.034 0.034 0.045
Income.............. 7/28/2003 0.038 0.032 0.032 0.043
Income.............. 8/26/2003 0.036 0.030 0.030 0.041
Income.............. 9/25/2003 0.035 0.029 0.029 0.040
Income.............. 10/28/2003 0.037 0.030 0.030 0.042
----- ----- ----- -----
Total Income
Distributions... 0.498 0.420 0.420 0.549
----- ----- ----- -----
* Ordinary distributions from the Tax-Free National and Tax-Free New York were exempt from federal income taxation for
non-corporate shareholders.
</Table>
223
THE HARTFORD MUTUAL FUNDS, INC. AND THE HARTFORD MUTUAL FUNDS II, INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FUND EX-DATE CLASS A CLASS B CLASS C CLASS E CLASS H CLASS L CLASS M CLASS N CLASS Y
- ---- ---------- ------- ------- ------- ------- ------- ------- ------- ------- -------
U.S. GOVERNMENT
SECURITIES FUND
Income................... 11/25/2002 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.038
Income................... 12/23/2002 0.028 0.023 0.023 0.032 0.024 0.030 0.024 0.024 0.033
Income................... 1/28/2003 0.034 0.028 0.028 0.037 0.028 0.035 0.028 0.028 0.037
Income................... 2/25/2003 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.037
Income................... 3/26/2003 0.034 0.028 0.028 0.038 0.029 0.035 0.029 0.029 0.038
Income................... 4/25/2003 0.040 0.034 0.034 0.043 0.035 0.041 0.035 0.035 0.043
Income................... 5/27/2003 0.038 0.032 0.032 0.042 0.033 0.040 0.033 0.033 0.042
Income................... 6/25/2003 0.037 0.031 0.031 0.041 0.033 0.039 0.033 0.033 0.041
Income................... 7/28/2003 0.034 0.028 0.028 0.038 0.029 0.036 0.029 0.029 0.038
Income................... 8/26/2003 0.034 0.029 0.029 0.038 0.030 0.036 0.030 0.030 0.038
Income................... 9/25/2003 0.034 0.028 0.028 0.037 0.029 0.035 0.029 0.029 0.037
Income................... 10/28/2003 0.033 0.027 0.027 0.036 0.028 0.034 0.028 0.028 0.037
----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income
Distributions........ 0.414 0.344 0.344 0.456 0.356 0.431 0.356 0.356 0.459
----- ----- ----- ----- ----- ----- ----- ----- -----
VALUE FUND
Income................... 12/23/2002 0.059 0.000 0.000 0.098
----- ----- ----- -----
<Caption>
FUND CLASS Z
- ---- -------
U.S. GOVERNMENT
SECURITIES FUND
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Income...................
Total Income
Distributions........
VALUE FUND
Income...................
</Table>
224
PRIVACY POLICY AND PRACTICES OF
THE HARTFORD FINANCIAL SERVICES GROUP, INC. AND ITS AFFILIATES
(HEREIN CALLED "WE, OUR, AND US")
This Privacy Policy applies to our United States Operations
We value your trust. We are committed to the responsible:
a) management;
b) use; and
c) protection;
of PERSONAL INFORMATION.
This notice describes how we collect, disclose, and protect PERSONAL
INFORMATION.
We collect PERSONAL INFORMATION to:
a) service your TRANSACTIONS with us; and
b) support our business functions.
We may obtain PERSONAL INFORMATION from:
a) YOU;
b) your TRANSACTIONS with us; and
c) third parties such as a consumer-reporting agency.
Based on the type of product or service YOU apply for or get from us, PERSONAL
INFORMATION such as:
a) your name;
b) your address;
c) your income;
d) your payment; or
e) your credit history;
may be gathered from sources such as applications, TRANSACTIONS, and consumer
reports.
To serve YOU and service our business, we may share certain PERSONAL
INFORMATION. We will share PERSONAL INFORMATION, only as allowed by law, with
affiliates such as:
a) our insurance companies;
b) our employee agents;
c) our brokerage firms; and
d) our administrators.
As allowed by law, we may share PERSONAL FINANCIAL INFORMATION with our
affiliates to:
a) market our products; or
b) market our services;
to YOU without providing YOU with an option to prevent these disclosures.
We may also share PERSONAL INFORMATION, only as allowed by law, with
unaffiliated third parties including:
a) independent agents;
b) brokerage firms;
c) insurance companies;
d) administrators; and
e) service providers;
who help us serve YOU and service our business.
When allowed by law, we may share certain PERSONAL FINANCIAL INFORMATION with
other unaffiliated third parties who assist us by performing services or
functions such as:
a) taking surveys;
b) marketing our products or services; or
c) offering financial products or services under a joint agreement between us
and one or more financial institutions.
We will not sell or share your PERSONAL FINANCIAL INFORMATION with anyone for
purposes unrelated to our business functions without offering YOU the
opportunity to:
a) "opt-out;" or
b) "opt-in;"
as required by law.
We only disclose PERSONAL HEALTH INFORMATION with:
a) your proper written authorization; or
b) as otherwise allowed or required by law.
Our employees have access to PERSONAL INFORMATION in the course of doing their
jobs, such as:
a) underwriting policies;
b) paying claims;
c) developing new products; or
d) advising customers of our products and services.
We use manual and electronic security procedures to maintain:
a) the confidentiality; and
b) the integrity of;
PERSONAL INFORMATION that we have. We use these procedures to guard against
unauthorized access.
225
Some techniques we use to protect PERSONAL INFORMATION include:
a) secured files;
b) user authentication;
c) encryption;
d) firewall technology; and
e) the use of detection software.
We are responsible for and must:
a) identify information to be protected;
b) provide an adequate level of protection for that data;
c) grant access to protected data only to those people who must use it in the
performance of their job-related duties.
Employees who violate our Privacy Policy will be subject to discipline, which
may include ending their employment with us.
At the start of our business relationship, we will give YOU a copy of our
current Privacy Policy.
We will also give YOU a copy of our current Privacy Policy once a year if YOU
maintain a continuing business relationship with us.
We will continue to follow our Privacy Policy regarding PERSONAL INFORMATION
even when a business relationship no longer exists between us.
As used in this Privacy Notice:
APPLICATION means your request for our product or service.
PERSONAL FINANCIAL INFORMATION means financial information such as:
a) credit history;
b) income;
c) financial benefits; or
d) policy or claim information.
PERSONAL HEALTH INFORMATION means health information such as:
a) your medical records; or
b) information about your illness, disability or injury.
PERSONAL INFORMATION means information that identifies YOU personally and is not
otherwise available to the public. It includes:
a) PERSONAL FINANCIAL INFORMATION; and
b) PERSONAL HEALTH INFORMATION.
TRANSACTION means your business dealings with us, such as:
a) your APPLICATION;
b) your request for us to pay a claim; and
c) your request for us to take an action on your account.
YOU means an individual who has given us PERSONAL INFORMATION in conjunction
with:
a) asking about;
b) applying for; or
c) obtaining;
a financial product or service from us if the product or service is used mainly
for personal, family, or household purposes.
This Privacy Policy is being provided on behalf of the following affiliates of
The Hartford Financial Services Group, Inc.:
American Maturity Life Insurance Company; Capstone Risk Management, LLC; First
State Insurance Company; Hart Life Insurance Company; Hartford Accident &
Indemnity Company; Hartford Administrative Services Company; Hartford Casualty
Insurance Company; Hartford Equity Sales Company, Inc.; Hartford Fire Insurance
Company; Hartford HLS Series Fund II, Inc.; Hartford Insurance Company of
Illinois; Hartford Insurance Company of the Midwest; Hartford Insurance Company
of the Southeast; Hartford International Life Reassurance Corporation; Hartford
Investment Financial Services, LLC; Hartford Investment Management Company;
Hartford Life & Accident Insurance Company; Hartford Life and Annuity Insurance
Company; Hartford Life Insurance Company; Hartford Lloyd's Insurance Company;
Hartford Securities Distribution Company, Inc.; Hartford Series Fund, Inc.;
Hartford Specialty Company; Hartford Underwriters Insurance Company;
Hartford-Comprehensive Employee Benefit Service Company; International Corporate
Marketing Group, LLC; New England Insurance Company; Nutmeg Insurance Agency,
Inc.; Nutmeg Insurance Company; Nutmeg Life Insurance Company; Omni General
Agency, Inc.; Omni Indemnity Company; Omni Insurance Company; P2P Link, LLC;
Pacific Insurance Company, Limited; Planco Financial Services, Inc.; Property
and Casualty Insurance Company of Hartford; Sentinel Insurance Company, Ltd.;
Servus Life Insurance Company; Specialty Risk Services, Inc.; The Hartford
Income Shares Fund, Inc.; The Hartford Mutual Funds II, Inc.; The Hartford
Mutual Funds, Inc.; Trumbull Insurance Company; Trumbull Services, L.L.C.; Twin
City Fire Insurance Company; Woodbury Financial Services, Inc.
226
ITEM 2. CODE OF ETHICS.
Registrant has adopted a code of ethics, which is attached as Exhibit
10(a).
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Directors of the Registrant has designated Phillip O.
Peterson as an Audit Committee Financial Expert. Mr. Peterson is considered by
the Board to be an independent director.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. RESERVED.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the Registrant's Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this report,
the Disclosure Controls and Procedures are effectively designed to ensure
that information required to be disclosed by the Registrant is recorded,
processed, summarized and reported by the date of this report, including
ensuring that information required to be disclosed in the report is
accumulated and communicated to the Registrant's management, including the
Registrant's officers, as appropriate, to allow timely decisions regarding
required disclosure.
(b) There were no significant changes in the Registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
ITEM 10. EXHIBITS.
(a) Registrant's Code of Ethics in response to Item 2.
(b) Section 302 certifications of the principal executive officer and
principal financial officer of Registrant.
99 Section 906 certification.
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.
THE HARTFORD MUTUAL FUNDS, INC.
/s/ David M. Znamierowski
Date: December 15, 2003 By:
David M. Znamierowski
Its: President
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.
/s/ David M. Znamierowski
Date: December 15, 2003 By:
David M. Znamierowski
Its: President
/s/ Tamara L. Fagely
Date: December 15, 2003 By: Tamara L. Fagely
Its: Vice President, Controller
and Treasurer
EXHIBIT LIST
10(a) Code of Ethics
99.CERT 10(b) Certifications
(i) Section 302 certification of principal executive officer
(ii) Section 302 certification of principal financial officer
99.906CERT 99 Section 906 certification of principal executive officer and
principal financial officer